Radical Shift For Growth

Nepal’s economy has been buffeted by internal and external shocks time and again. The 2015 earthquake and COVID-19 dealt a blow to it that largely relies on foreign aid, grants and loans to spur development. The recurrent natural disasters often add to the woes of fiscal health, slowing down the early recovery. Now the country is struggling to come out of the lingering recession. Its stinging impacts reverberate in the market. Even during the big festival like Dashain, aggregate demands have dropped. This is a period when consumers go on spending spree, buying new clothes and other items needed for celebration of the festival. The market has witnessed low transactions of goods and services. Banks and financial institutions have not performed better when it comes to increasing their loans to different sectors. Their surplus money has been stuck in the banking system, preventing them from mobilising the investable funds as expected.