If Nepal is to meet its goal of graduating from a least developed country status, it will have to find new sources of growth to pull itself out of a protracted economic crisis.

The government claimed that the devastating earthquakes, low agricultural growth and obstruction at the southern border hit the economy hard, resulting in the lowest economic growth rate in 14 years. This is not true.

Agriculture production went down during the current fiscal owing to decrease in production of major crops caused by long drought.

The agriculture sector, which accounts for one third share of the national economy, has suffered from very low rainfall, shortage of fertilizers, pesticides and lack of market access. Two thirds of the population still depend on conventional agriculture. The government should commercialize, diversify and industrialize it.

The production of paddy decreased by 10.2 per cent and wheat by 8.5 per cent due to the unfavorable monsoon.

The contribution of agriculture in Gross Domestic Products (GDP) will be 31.69 per cent in the current fiscal. The new economic survey stresses the need to commercialize and modernize agriculture. Road expansion, power generation, expansion of health institutions, industry registration, FDI commitment and tourist arrivals all slowed down.

The country needs an exogenous shot in the arm. In order to revive the moribund economy, the current state of political instability must come to an end whereupon we can embark on economic development. Tourism and remittance, listed as high value services in Nepal Trade Integration Strategy (NTIS) 2016, have contributed to long term stability of the Nepali economy.

It is a matter of delight that Nepal ranks among the most favored destinations for adventure sports. Tourism can promote non trade sectors and generate employment opportunities.

Similarly, remittance has greatly contributed to our national economy. It has raised the living standard of Nepalis by increasing their purchasing power and also helped with human capital formation by financing education.

Deprived people like rural women, farmers and other marginalized groups are undoubtedly benefiting from cooperatives and micro finance organizations. Small entrepreneurs have been thriving after the 1990 changes, contributing to the well being of rural people.

Competitive market in agriculture has enhanced the rural people’s quality of life.