The country is currently facing the double menace – on health and economy – wrought by
Covid-19; and has been in a state of complete lockdown since the end of March. As the
economy is put into hibernation, the Central Bureau of Statistic has predicted a sharp
slowdown – from 8.5 percent to 2.3 percent- in the economic growth of Nepal. The
production from agriculture, manufacturing to service has faced the brunt of meltdown,
international flow of goods has halted, remittance has plummeted, transport and construction
have been stalled; coupled with mass layoffs and return of migrant workers, the
unemployment has surged.
While countries around the world have announced a strong dose of stimulus packages to
safeguard their citizens and their economy from the raging pandemic, the Government of
Nepal has not generated much need momentum and support. At a time like this, the budget
allocation and fiscal declaration that is to be announced for the FY 2020/21 on 28 th May is a
great opportunity for the government to introduce substantial reforms. In a bid to do the
same, Samriddhi prepared briefs on major reform areas – agriculture, tourism and cross
cutting issues such as market entry, operation and exit – that takes stock of the current
problems and suggest appropriate remedies to help the economy bounce back.