The economy is expected to grow by 2.7 percent and 3.9 percent in FY 2021 and FY 2022, respectively, under the best-case scenario.
There are multiple institutional bottlenecks that impede Nepal’s capacity to effectively mobilize savings.
The National Planning Commission estimated average growth in agriculture, industry, and services sectors to be 5.4%, 14.6%, and 9.9%, respectively.
Effective and consistent implementation of monetary policy remains pivotal to revive the Nepali economy and to maintain overall economic as well as financial stability.
The Indian budget for FY 2021/22 increased grants to Nepal by 12.72%, increasing its allocation to USD 136 million (INR 9.92 billion).
Innovative employment frameworks suitable to the local economy of respective municipalities have to be planned.