A coherent policy moment, but will it deliver?

The problem lies with frequent policy reversals, tax disputes and ambiguous investment rules.

Nepal’s economic fundamentals reflect a more stable and coordinated outlook compared to the previous years. Inflation remains moderate, averaging around 4.24 percent. At the same time, foreign exchange reserves are sufficient to cover imports for 14.7 months and the country has a surplus in its balance of payments accounts of Rs. 491.44 billion. Remittance inflows are substantial, exceeding Rs. 1532.9 billion and there is more than enough liquidity in the financial system. At first glance, the conditions for economic recovery seem well-established.