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Hospitality Industry in Federated Nepal
With the successful completion of local, provincial and federal elections in the country, many positive developments are expected in the hospitality sector in the coming days. Considering the data on the status of hotels since 2012, the rising influx of tourists in the country has resulted in a substantial demand for hotels as shown in the table below: Read more
Infrastructural Challenges and Real Estate Market Under the Federal Structure of Nepal
The constant bickering among the political parties and frequent change in government has led to a weak governance which has ebbed the development of infrastructure in terms of quality and timely execution of infrastructure project. We often hear citizens complaining about the poor road conditions, poor water supply, poor electricity, poor communication system, poor drainage, poor waste management and so forth. Now with the successful completion of the local, provincial and federal election the economy is buoyant on receiving new investments in infrastructure thereby leading to economic growth and improved standard of living. Read more
Revenue Allocation in Federated Nepal
The constitution of Nepal 2015 provided the fiscal federalism model where the responsibilities are shared among three tiers of government including: central, province and local level. Read more
Building Stronger Macroeconomic Policy Frameworks and Institutions
From a macroeconomic perspective, Nepal hit a sweet spot in 2016/17. Real GDP growth rebounded strongly, inflation declined to the lowest level in many years, the current account was roughly in balance, and international reserves rose further. Fiscal spending increased substantially but the overall balance remained within manageable limits. Risks from brisk credit growth were of concern but other economic outcomes were generally encouraging. Read more
Political Risk in Federalism: Implications for Nepal’s Economy
With frequent change in political regime, Nepal has always been in the range of high political risk. Likewise, federalism which is an experiment yet to be tested in Nepal, accompanies several political risks, some of which are briefed below. Read more
New Federal Nepal- A glimpse
With the completion of the Federal and Provincial election Nepal will begin a new political chapter guided by the notion of federalism. As mentioned above there seems to be a multifaceted benefits of federalism, however economic cost of the system is of primary concern. Put differently, under federalism the ability of each state to thrive economically will be a major issue as they have to be self sustainable. Read more

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