Dutch disease in Nepal: Over-reliance on imports is poisoning the economy

What happens when the country’s revenue generation is dependent on how much the country imports? The answer is simple. The economy takes a major hit. This is what happened in the fiscal year 2022/23, showing symptoms of what economists call the Dutch disease in Nepal.

In the current fiscal year, imports have decreased by about 18 per cent and the trade deficit has decreased by 17 per cent. But its toll has been seen on the government’s revenue as collection has gone down by 12.62 per cent compared to last year.