Economists call for stronger fiscal discipline and investment diversification.
Nepal’s economic outlook continues to be shaped by mounting public debt and inflationary pressures. Government borrowing has risen in recent years, driven by infrastructure spending and social programs, while inflation has eroded household purchasing power.
Experts warn that overreliance on remittances and external loans is not sustainable, calling instead for policies that encourage domestic investment and industrial growth. Without decisive reforms, Nepal risks weakening its fiscal stability, making it vulnerable to external shocks.
The Finance Ministry has stated that efforts are underway to strengthen revenue collection, improve spending efficiency, and attract more private sector participation to reduce dependency on borrowing.
