The short-term growth for FY 2024/25 is expected to remain modest at around 3-4%, contingent on a good agricultural harvest, sustained tourism growth, stable remittances, and the effectiveness of monetary easing. Inflation is projected to gradually ease but remain elevated. External sector risks persist. In the medium term, Nepal faces significant challenges in accelerating growth to 6-7%+ needed for meaningful development. This requires deep structural reforms: 1. Improving the Investment Climate: Ensuring political stability, policy predictability, reducing red tape, and strengthening contract enforcement. 2. Boosting Exports & Diversification: Enhancing competitiveness, exploring new markets, and promoting value addition. 3. Strengthening Public Financial Management: Improving revenue mobilization, prioritizing efficient capital spending, and managing debt sustainably. 4. Accelerating Hydropower & Infrastructure Development: Unlocking this potential is critical for energy se...