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A concise examination of the Nepalese budget.

Nepal’s current budget (FY 2083/84 / 2026–27) is a sizable and reform-focused budget, with a total expenditure of approximately Rs. 2.124 trillion. Of the overall budget, recurrent expenditure constitutes approximately 59.8%, capital expenditure accounts for 20.3%, and debt servicing/financial management makes up 19.9%. It highlights economic reform, growth of the private sector, infrastructure development, digital transformation, and enhancement of governance. Significant recurring costs, debt responsibilities, and a substantial proportion of non-development expenditures indicate that a major share of resources is allocated to government operations and fulfilling obligations instead of establishing new productive assets. The broader scope and key characteristics of Nepal’s Current Budget can be described as a substantial budget where the government has established ambitious objectives like enhanced economic growth and investment-driven expansion on a modest basis. Nonetheless, the po...
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War Economy and Agriculture

Urea Fact Sheet Global urea production reached more than 200 million metric tons in 2025. The market is rapidly expanding due to agricultural demand, with production capacity projected to reach around 300 million metric tons by 2030. Urea demand is heavily driven by agriculture, with Asia-Pacific accounting for roughly 61% of market share, North America at 10%, Europe at about 7%, and the rest in other regions. The market is projected to grow at a Compound Annual Growth Rate (CAGR) of 3.05%-3.9% through 2029-2034, driven by food demand for a growing global population. Key production centers include China, India, and the Middle East (Qatar, Oman, Saudi Arabia), with significant expansions planned to meet growing demand. More than 80% of urea is used in agriculture, and the rest in the industrial sector. Global Production Giants Saudi Basic Industries Corporation (SABIC), a Saudi Arabian company, is a global chemical and fertilizer powerhouse. Qatar Fertiliser Company (QAFC) is o...
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Why does the price of gold decrease during global unrest?

One of my friends asked me why the gold price is dropping when there is a war in the Gulf. Let me clarify this. When there is a war in the Middle East, w ait, let me use the correct term for "gulf." Actually, the Gulf is not in the Middle East for Nepal; it is in the Middle West as the Gulf lies to the west of Nepal.  it causes the price of gold to fall, ultimately decreasing around the globe and in Nepal as well. The extraction of crude oil decreases, leading to a shortage in the supply which increases the price of crude oil. This, in turn, raises the price of transportation as fuel costs cover the operation of almost all means of transportation. Additionally, the majority of industries use fossil fuels for production, and backup power generators also rely on fossil fuels, causing an increase in the price of goods and services, leading to supply-side inflation. To control inflation, the central bank of most countries increases interest rates, implementing a tight monetary po...
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I advocate for the Nomad Visa Provision in Nepal

Once, I was advised to help two students of Lumbini Buddhist University who were pursuing their Ph.D. regarding data analysis. I helped them to the best of my knowledge. After that, I have not heard from these students. I do not know whether they were successful or not. This is how I got to know about Lumbini Buddhist University. By luck, I got an assignment to prepare a course on tourism economics at Lumbini Buddhist University. During the presentation of the course details, I emphasized to the faculty that they should have knowledge of culture, religion, nature, food, festivals, sports, and most importantly, they should be travel enthusiasts, lovers of travel, and nomads. On one occasion, a close acquaintance of mine was made tourism minister. I congratulated him and wanted to meet to discuss the nomad visa to obtain tourism benefits. However, I was unable to obtain a meeting. I sent a text message to him; no response was received. There was limited work-from-home options prior to ...
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Key notable challenges for the new government

In the early general elections of Nepal, which took place on the 5th of March 2026, the Rastriya Swatantra Party, with its president Rabi Lamichhane and proposed Prime Minister, the former mayor of Kathmandu metropolis Balendra "Balen" Shah, who was also a rapper, won beyond the expectations of all political parties and the people. In the elections for the 275 members of the House of Representatives, the party managed to secure 182 seats, 125 in direct elections and 57 in the proportional electoral side. However, this was not enough to achieve the two-thirds majority, which requires around 184 seats, but it was sufficient to secure a simple majority, which was essential. This victory comes after the fall of the previous government due to violent protests by youths in September 2025 over issues related to unemployment, economic troubles, and corruption. When Shah assumes the role of prime minister, the new government, expected to take over in late March 2026, will have a str...
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The Crossroads of the Nepalese Economy in 2026 AD

Forecast: Nepal's economic outlook for 2026 presents a mix of forecasts from major international institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB). These forecasts reflect a blend of optimism regarding structural resilience and concerns over ongoing political and social instability. The ADB projected a 5.1% GDP growth for 2026 in April 2025, driven by the revival of tourism and improved agricultural productivity. However, the World Bank later forecasted a 2.1% GDP growth for 2026 in November 2025, indicating a significant slowdown due to political unrest and weakened investor confidence. The IMF projected moderate GDP growth continuing the recovery around 4.3 to 4.5%. The economic recovery is stabilizing but faces challenges due to a complex domestic environment and global uncertainty. Underlying Reasons: The divergent predictions stem from various factors. The unexpected youth movement, known as the "Gen Z uprising,...
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Nepalese Journey to Become a Middle-Income Nation

Nepal faces a multitude of challenges in transitioning into a developing nation. These obstacles include political, economic, social, infrastructural, and environmental issues that hinder its graduation from the category of Least Developed Countries (LDCs). Let's discuss a few key vulnerabilities that Nepal needs to address in order to advance towards becoming a middle-income economy. Economic Vulnerabilities and Structural Weaknesses of Nepal 1. Agricultural Dependency: The country's economy is largely dependent on agriculture, which is susceptible to natural disasters such as floods, droughts, and earthquakes. The reliance on subsistence agriculture exposes a large portion of the population to climate risks, low productivity, and limited market access. 2. Remittance Reliance: Nepal heavily relies on remittances from its citizens working abroad, which makes the economy vulnerable to fluctuations in global economic conditions and policies. Remittances from Nepali workers abroad...
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