Priority For Reforms

Every country aspires to achieve sustainable growth no matter which economic and political system it has adopted. And there is always room for economic reform to enhance public sector performance and create employment opportunities. Nepal has embraced neoliberal economic order characterised by free trade, privatisation and flow of foreign direct investment. However, privatisation of public enterprises remained disastrous. The unemployment problem continues to be acute. Annually, around half a million people enter the labour market but it is unable to absorb most of them owing to the weak manufacturing base. There has always been a challenge to achieve the objectives announced by the annual budgets. This is a reason why the economists and policy makers stress economic reforms to energise the sluggish fiscal sector.