Nepal foreign exchange (forex) reserves have become an important aspect of inflation control since Nepal’s economy is heavily dependent on imports. Due to a large flow of remittances and reduced imports of goods in the first half of FY 2022/23, the current account deficit dropped from 12.8% to 12.03% by 0.5% of the total GDP.
As the macroeconomic indicators deteriorated in the past, it has increased uncertainty regarding the prospect of a full economic recovery.
While the policy and programmes lack prioritization, the budget can do more than needed to fulfil the gap.
The outlined policy agenda is extensive and demanding, requiring consensus-building, persistence, and strong ownership for implementation.
There is a need for comprehensive reforms in the entire budgetary procedure, from planning to execution.
If Nepal has been on your radar, then it is a good time to delve deeper into the opportunities and if not, it is time to look at this country that is land linked with two global economic giants China and India.