Nepal's Economy Faces Challenges: White Paper Highlights Stagnation and Debt
Summary
Nepal's new government, led by Balen Shah and Finance Minister Dr. Swarnim Wagle, released a white paper highlighting economic stagnation, rising public debt, and challenges such as inclusion in FATF's Grey List impacting foreign investment.
Key Points
- Nepal's economy has experienced an average growth rate of only 4.2 percent over the past decade.
- Public debt has surged to 28 kharba 78 arba, constituting 43.8 percent of GDP.
- Inclusion in the FATF Grey List has harmed Nepal's financial credibility and foreign investment prospects.
- The government aims for policy reforms focusing on hydropower, IT, tourism, and entrepreneurship to drive sustainable economic transformation.
