The Strait of Hormuz crisis is another warning of how exposed Nepal is to imported oil and Gulf remittances. Nepal should use it as the push to finally turn its hydropower potential into the engine of its own industrialization instead of just another export commodity.
Despite predictions of collapse, South Asia’s remittances and migration flows proved remarkably resilient through COVID-19, though the pandemic exposed deeper, unresolved risks in the region’s heavy reliance on Gulf labor markets.
As Nepal pushes toward lower middle-income status and a new middle class emerges, a fundamental policy challenge remains unresolved: how to expand economic opportunity while ensuring a robust and inclusive system of social protection.
A common image of the South Asian Subcontinent is that it is the least integrated part of the world.
Nepal’s digital transformation, accelerated by the COVID-19 pandemic, has created significant opportunities for an inclusive digital economy, but realizing its full potential requires stronger implementation, innovation, regulation, and digital literacy to ensure that no one is left behind.
Kathmandu’s future depends not only on adopting electric vehicles, but on reclaiming its streets for walking, cycling, and reliable public transport to build a cleaner and more livable city.