'Not monetary but fiscal policy has problems'
Summary
Experts highlight that Nepal's economic challenges stem more from fiscal policy issues and weak institutional capacity than monetary policy, urging concrete reforms and effective government spending.
Key Points
- Monetary policy alone is insufficient to address Nepal's economic challenges like low capital spending and rising trade deficit.
- Fiscal policy has more problems than monetary policy, with no improvement in capital flight control or foreign direct investment.
- Weak institutional capacity and structural fragility hinder Nepal's development trajectory from agriculture to industry and service sectors.
- Stable exchange rate with India encourages trading over production, negatively impacting industrial growth and economic expansion.
