'High remittance, low export are core problems'
Summary
EU Ambassador Véronique Lorenzo says Nepal’s heavy dependence on remittances and very low exports to the European Union are major structural weaknesses as the country prepares to graduate from LDC status in 2026. She also warns that water scarcity, inefficient irrigation, and weak migration management need urgent policy reforms.
Key Points
- EU Ambassador Véronique Lorenzo said Nepal’s overreliance on remittances is a fundamental economic problem and that exports to the EU remain extremely low.
- She said the impact of losing LDC trade preferences will be limited unless Nepal expands production and improves its economic mindset.
- Lorenzo described the EU’s GSP+ scheme as an opportunity, but said Nepal must meet labour, environmental, social and human rights standards.
- She also warned that traditional flood irrigation, poor water management, and weak migration regulation require urgent reforms.
