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The contemporary, globalized world is witnessing a great shift of power from males to females, and people have realized how aggressive, risk-seeking behaviour, which enables men to entrench power, has proven ‘destructive and unsustainable'. With this shift, various countries are moving slowly or gradually toward alternative conceptions of sustainable peace by adopting gender-inclusive, gender-balanced approaches in their activities and policies. Nepal is one of the countries in South-Asia that has recognized social and gender inequalities and is progressive, adopting inclusive laws for gender equality and promotion. According to Sapana Pradhan Malla, the Supreme Court judge of Nepal, ‘the  2015 Constitution of Nepal is one of the most progressive in South Asia in terms of gender equality and women’s rights. Furthermore, Nepal leads South Asia in women’s political participation.  

Additionally, Nepal is a signatory to the significant foundational human and women's rights treaties and conventions, namely the Universal Declaration of Human Rights (1948), the International Covenant on Civil and Political Rights in 1991, the Convention against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment in 1991. The country ratified the Convention on the Elimination of All forms of Discrimination against Women (CEDAW) in 1992. Also, Nepal is the first country in South Asia to adopt a National Action Plan to implement UN Security Council 1325 and a prominent contributor of women peacekeepers in UN missions. In this regard, Nepal can be considered well-placed and holds the potential for gender-inclusive foreign policies due to conducive domestic and international factors.

However, Nepal also depicts a bleak picture and shows a considerable gender gap in its foreign policy. The policy abides by the 2015 Constitution of Nepal, and the constitution upholds the GESI framework. However, foreign policy documents and guiding principles do not adequately reflect the same commitments. Updated four years ago, the foreign policy of Nepal considers gender, gender equality and social inclusion as cross-cutting issues for effective aid implementation rather than a priority in foreign policy formulation. It tries to address gender issues through mainstreaming without opening up to intersecting identities that are more vulnerable, marginalized  and in dire need of opportunities. Though the nation has passed through various political struggles, including the democratic struggles,  the Maoist insurgency and the Madhes movement, it is oblivious to multiple intersecting identities and contains homogeneous language about gender categories.

Examining key foreign policy documents, such as the Foreign Aid Policy 2002 and International Development Cooperation Policy 2019 showcases this gender gap. In these policies, individual donors can execute those projects that align with sectoral priorities of Nepal, which include poverty reduction, fostering economic growth and supporting critical social infrastructure needs. In these projects, social needs are not explicitly defined, nor are languages of intersectionality considered. If we try to locate gender in International Development Cooperation Policy 2019,  it comes up only twice, except for aid utilization and project design and implementation, where the policy has considered gender as one of the cross-cutting issues to improve aid effectiveness. The policy has not prioritized gender explicitly as one of the key principles/aspects. It showcases policies that deal with international affairs and external aid lack robust consideration of intersectionality, leading to the homogenization of diverse experiences and marginalization of specific individuals.

Why? There are two primary reasons, among many. First, insecurities shape Nepal's foreign policies. Usually tangled in balancing two neighbors and having survival mode policies as evident in the external policies adopted by Nepal, which include a policy of independence, a policy of isolation, non–alignment, Indo-centric unique relations, and currently, a neutral and balanced approach vis-a-vis neighbours. Nepal's foreign policy debates often revolve around its neighbors, limiting the scope and knowledge of the overall policy framework. Second, Nepal’s aspiration is for economic development rather than social development, and it aims to elevate itself to a middle-income country by 2030. Thus, the understanding of foreign policy has been limited, narrow and state-centric. It has been understood to protect national sovereignty and security against external threats and promote economic interest through its foreign policy. Therefore, considering an intersectional gender-sensitive approach looks challenging within the state-centric foreign policy.

However, Nepal’s foreign policy is critical to its development goals. For realization of the vision of ‘Prosperous Nepal and Happy Nepali’ and Sustainable Development Goals (SDGs), and the elevation to the club of middle-income countries by 2030, development aid should be channelized through citizen-centric aid policies that include the gender dimension. Non-inclusion of gender issues in the nation’s foreign policy can have serious consequences, perpetuating gender-based inequalities and hindering progress toward sustainable development. So, there is a need for Nepal to advance gender perspectives through its foreign policy and prioritize the development of marginalized communities by recognizing the existence of diverse categories of people and ensure that these groups, including women and girls, people with disabilities and senior citizens, get to enjoy their rights. For this, it is important to amend relevant policy documents and make intersectionality integral to its foreign policy.

Overall, it is critical for Nepal to prioritize social development that can contribute to sustainable development and economic prosperity. It is of utmost importance for Nepal to focus on gender aspects not only in gender mainstreaming but also to make gender a top priority area of its foreign policy and partnerships.

The United States supports Nepal in maintaining strong relationships with all its neighbors, including China, provided these ties are based on mutual respect and uphold Nepal’s sovereignty and independence, a senior US official has stated. Donald Lu, Assistant Secretary of State for South and Central Asian Affairs, highlighted this message during his two-day visit to Nepal, which concluded on Monday.

Speaking with a select group of journalists, Lu said, “We support Nepal in making its own independent decisions without external influence.” His remarks underscore the US stance on fostering Nepal’s ability to act as a sovereign state in its foreign and domestic policies.

During his visit, Lu held meetings with key political leaders, including Nepali Congress President Sher Bahadur Deuba, CPN (Maoist Center) Chairperson Pushpa Kamal Dahal, and senior government officials. He assured them that US-Nepal collaboration would continue regardless of changes in Nepal’s political leadership. Lu, who has been actively engaged with Nepal for the past four years, played a pivotal role in securing the endorsement of the Millennium Challenge Corporation (MCC) compact in 2022. Reflecting on its progress, he noted, “There has been real progress in implementing the MCC compact, growing the USAID portfolio, increasing US investments in Nepal, and expanding the presence of US volunteers.”

Lu also praised the recent virtual meeting between Prime Minister KP Sharma Oli and global tech entrepreneur Elon Musk. He described it as a promising development for boosting investment and trade between the two countries, calling it “fantastic.” Additionally, he commended Nepal’s political parties for advancing the transitional justice process, saying, “The passage of transitional justice bills through consensus marks a significant achievement, though challenges and difficult steps remain ahead.”

On the issue of climate change, Lu reaffirmed the United States’ commitment to supporting Nepal in addressing its vulnerabilities. He recognized Nepal’s expectations for increased development assistance and private sector investment from the US, expressing optimism about further collaboration in tackling climate-related challenges.

However, Lu refrained from commenting on Nepal’s recent agreement with China on Framework Cooperation for the Belt and Road Initiative (BRI), citing the lack of public disclosure. “I have many questions about the BRI agreement, but I hope it will be shared transparently so Nepali citizens can understand its contents,” he said. He also declined to comment on provisions in the joint statement issued after Prime Minister Oli’s visit to China, particularly those concerning Taiwan. Nevertheless, he emphasized that transparency in such agreements is essential for ensuring public trust and accountability.

Lu’s visit reaffirmed the US commitment to strengthening ties with Nepal while supporting its sovereignty, sustainable development, and independent decision-making.

Nearly two-thirds of Nepal’s population is involved in agriculture. Yet, the agricultural sector is experiencing economic, social and technological factors. Most farmers depend on food imports, outmoded techniques of cultivation, and poor access to innovative technology to enhance yields. In this regard, only an agricultural revolution in and through the country can make Nepal a ‘developed’, ‘reliant’, ‘competitive’, and ‘progressive’ nation in the world.

That is why it is said that humanity needs an agricultural revolution.

Ultimately, the primary area of the economy of Nepal is in agriculture. All the same, the sector has not shown expected productivity and capacity even in its potential. They have poor structures, rely on culturally based practices, and lack technology advancement to support their agricultural sector and instead became reliant on agricultural inputs and outputs, affecting economic growth and social development in Nepal.

Nepal imported agricultural products worth Rs 250bn in 10 months in 2024. Nepal has to import even food items to the tune of billions of rupees every year. These imports can be replaced by a self-sufficient agricultural base that would keep the money within the boundary. Increasing domestic production would of course save foreign exchange hence helping to reinforce the domestic economy.


Many youths travel abroad for employment. With new techniques and technologies, agriculture can be developed to offer new employment situations, which makes farming a stable form of employment, and greatly reduces the number of young Nepali people going abroad for employment.


An agricultural revolution is, therefore, capable of uplifting the standards of living of a rural society, and even pull such a society out of the jaws of poverty. Effective agriculture can bring about economic independence thereby changing the proportion of education, health and other facilities in the villages.


The ability to expand agricultural production into a commercial business can extend the exportation. There is demand for medicinal herbs, Vetiver oil and cardamom among other products locally meaning that they could greatly attract foreign exchange if embraced.


An agricultural revolution would make Nepal self-sufficient, competitive and socially liberal. To this end, there is a need to combine best practice with current technologies and innovations.

This young generation technology now offers a solution to make Nepali agriculture efficient, transparent, and sustainable. Sophisticated technologies such as IoT (Internet of Things), data science, and the use of the blockchain in reshaping production processes can help eliminate those shortcomings and improve effectiveness.

IoT

IoT has the potential to revolutionize agricultural management:

Smart Irrigation: IoT sensors measure the level of moisture within the soils and regulate watering based on its findings hence the efficient use of water and the associated cost.

Data-driven decisions: It provides real time weather and pest information to assist farmers and make right decisions.

Livestock and storage management: Iot makes it simpler to monitor animal health while at the same time boosting storage logistics.

Data science


Data science revolutionizes agriculture into an agricultural production system that will improve the chain flow process.

Predicting yields: By understanding the market demographics and the extent of supply and demand then efficient crop production can be anticipated.

Supply chain optimization: In turn, data science fosters timely, efficient and visibly effective farm to market value addition channels.

Blockchain technology


The application of blockchain system in the agricultural supply chain provides the solution of enhancing transparency and security.

Traceability: B2C consumers can obtain a degree of information about the origin and quality and prices of the agricultural products.

Digital contracts: This way blockchain helps farmers to reach an agreement with intermediaries or buyers without the risk of being fraud and with less chance of arising delays.

Applying these modern technologies in the agricultural sector can be helpful to raise yield, decrease cost, bring better living standards for farmers and enhance the national economy.

Domestic manufacture and international market

The local products of Nepal have a huge market prospect in the international market. With appropriate branding, certification as well as making these goods more e-commerce friendly they could easily become export worthy.

Vetiver system


One of the most effective plants that can be utilised for environmental management is Vetiver grass (Chrysopogon zizanioides) because it is used in management of erosion and water conservation.

Vetiver oil production: Today, with a global price of about $275 per litre, Vetiver oil is an economically attractive crop for farmers. Its cultivation also creates employment and export.

Herbal and medicinal products: Many herbs found locally include Ashwagandha, Tulsi, and cardamom have a ready market in the international markets for Ayurvedic products and are a huge export prospect.

Leveraging digital platforms

E-commerce: Currently, there are opportunities and many platforms like Daraz, hatiya and many more, for a better market opportunity.

Branding and certification: This cuts the credibility and reliability of products in the market by reducing the number of certified products or services.

As this paper has established, Nepal can reach international markets and accrue huge economic efficiency gains provided that it adopts the right strategies.

Sustainable Energy and Innovation recruitment enables the selection of the best talents for such positions through competitive events that test their creativity, innovation and problem solving skills in tackling sustainable energy issues.

Energy and technology are essential assets for improving agriculture and developing it as an environmentally friendly sector.

Renewable energy sources

Solar pumps: Water supply for un-electrified regions through the provision of affordable gadgets of irrigation.

Biogas: Use of livestock waste in the production of energy as well as organic fertilizers..

Wind energy: Powering the rural farming societies.

Innovative farming techniques

Drones: Applied in crop spraying, pest control, and even crop reviewing, thus leads to extended cycles of time and money legalized.

Hydroponics and aeroponics: Techniques that enable farming without soil while focusing on high productivity in limited space, this is particularly good for the expanding metropolitan centers.

Whenever integrating renewable energy systems to various means, the cost is cut, productivity enhanced, and the effects on environment ameliorated.

Policy support and opportunity

Policy support and opportunity are important for the development of a school health program.

Thus, there is a clear need for going through the process of forecasting for policy makers as well as developing effective policy frameworks and arrangements for public and private partnerships that will take agriculture to greater heights.

Government subsidies:
Availability of cheap credit facilities, subsidies for fertilizers and affordable farm implements can help to shift the cost structure of farmers in the right direction as productivity is affected by expenditure incurred.


Education and training:
Organizations from universities, government, and private sectors must be in a position to teach farmers better ways of farming in current world.


Partnerships between public and private entities (PPE):
Successful application of large scale agriculture transformation involves government incentives and private capital investment. For instance, the use of PPP when promoting Vetiver products in the international market will positively impact both the farming fraternity and the economy.

For the Nepalis as well as the entire nation, an agricultural revolution in Nepal is no longer an option but is imminent and inevitable. Integrating the best of both the old and the new world technology, adopting locally available resources, spurring innovation can and indeed make agriculture sustainable, profitable, and competitive anywhere in the world. To provide the foundation for a global sustainable agriculture system, Nepal can help Vetiver and medicinal herbs with IoT and blockchain services.

This vision can only be attained through collective efforts of the policy makers, industrialization of agriculture and the farming community of the country so as to empower suicidal Agricultural sector leading the economic social and technological progress of Nepal.

The potential of Nepal is in fields—enabling them will enable the country.

Rajesh Kumar Agrawal, the president of the Confederation of Nepalese Industries (CNI), has been involved in Nepal’s manufacturing sector since 1992. As the executive director of RMC Group, he oversees a diverse portfolio of products spanning cement, steel, and food industries. With 30 years of experience in the business, Agrawal has developed a profound understanding of financial management, ensuring the company’s financial stability and consistent profitability over the years. Kamal Dev Bhattarai and Pratik Ghimire of ApEx spoke to Agrawal about the state of the country’s economy and more. Excerpts:

What situation is our economy currently in?

Our economy is still going through a difficult situation. The official data shows improvements in some areas such as foreign exchange reserves, banks are loaded with cash, interest rates are going down among others. However, on the other side, we see that our exports are not increasing, in fact, they are decreasing gradually over the past three years and the government’s revenue is not increasing. Although some data shows an increase in revenue, we still need to conduct analysis to ascertain the actual situation. According to the statistics of the Gross Domestic Product (GDP) of the last three quarters, there is not a visible improvement. Last year’s projected GDP was 3.87 which is mainly due to the contribution of the energy sector. Production and manufacturing sectors are still in the negative growth—they are not doing very well. Due to a low aggregate demand, the economy is not able to take off. 

However, I don’t see low exports as the most alarming economic concern for us because production needs to increase first in order to see a growth in exports. Production itself is low in our economy right now. The sector’s contribution in our GDP is decreasing. In such a situation, how can our exports increase? In some sectors, exports are increasing such as IT. But for production and manufacture based products, exports will only increase following an increase in production. Therefore, the CNI sees a push in production as the main goal rather than an increase in exports. Unless we are self-sufficient in the production of any good, there is no possibility of exports. For example, we used to import cement. After the government’s support, the production of cement within the country increased and we became self-sufficient. Since the last two years, we have been exporting cement as well. Therefore, low exports are not the major issue of concern, the main problems currently at hand are decreased productions and increased imports.

Post covid, countries in Asia and worldwide seem to be improving their aggregate demands. Why is it that Nepal has not seen any improvement whatsoever?

The main reason is policy-induced slowness in the economy. The pandemic was an unimaginable period that no one had anticipated. However, after that, the policies we adopted have caused the situation we are currently in. There is no other reason or any external shock. For example, the policy to reduce demand and increase interest rate was introduced in order to influence currency rate. The rate, however, was influenced entirely by our exports and was out of our control. Our decision to introduce such a strong policy resulted in an increased amount of imports, which put pressure on our foreign currency rates. Then, we moved towards a policy to ban imports. This caused panic in the economy. We had to take a loan from an international organization, which had its own set of terms and conditions. To fulfill those terms, we introduced some new policies. 

Loans in the private sector increased. We introduced policies to reduce these loans. Then, there was a boost in the real estate industry. We focused on controlling the prices. Then the share market boomed, and our focus shifted on controlling that increase. All these controlling policies continue to have effects on our current economy and we still bear consequences. The CNI believes that we are experiencing a policy-induced slowness. And the policies that were adopted due to whatever reasons at the time should have been reversed after a year. Some policies were reversed to some level in the last year but it happened too late. Therefore, its consequences still occur and will remain for quite some time.

The policies that we adopted for our imports out of panic are the biggest blunder that happened in the last five years, is that true?

That is not the only reason. It has not caused a major effect in the internal production sector because the policies were to ban import of luxurious goods. The main effects the policy had was on a sentimental level among the citizens. It generated fear regarding the future of the economy, affected government’s revenue, and gave rise to illegal business. The policy we took to lower demand and increase interest rates and to reduce loans in the private sector made major impacts. All the policies we adopted acted as a brake to our economy. If we slowed down gradually at a slower rate, the economy would absorb better. We could have increased interest rates by 0.25 or 0.5 percent as internationally advised, but we adopted a drastic two percent increase even when the situation did not favor. Policies were changed so fast that the economy was unable to keep up. All these controlling policies had an effect on cooperatives as well. We were unable to revive the cooperative sector—which is so closely connected to the general public and small businesses—even after reversing these policies. 

The restrictions implemented from Nepal Rastra Bank (NRB) at that time on the real estate business should be relaxed. The cap on investments in the share market could be removed to send a positive message. NRB has issued a working capital guideline for the loans in the private sector which has caused major effects in the production sector. NRB’s direct lending is 40 percent which is being misused in agriculture and energy industries. Asset classification guidelines have also been issued which is not efficient for group businesses. 

Apart from that, another need is to increase demand. However, the government does not have sufficient funds for that. Contractors are not being paid. A suggestion is to issue 10-year bonds for these contractors equal to the amount to be paid and 90 percent of the bond can be withdrawn from the bank. The government should immediately form a committee to limit projects and focus the budget on projects of greater importance rather than coming up with plans with insufficient budgets. It will take a great deal of time to improve the economy if we don’t take a focused approach for things.

To what extent does our political situation affect the economy?

The political environment definitely affects the economy. Our major problem is the frequent government change. The government is changing every six months. Many tactical decisions require the government’s initiation to move forward. With frequent government change, policies cannot be implemented in such short time periods. How can ministers make decisions when they are not even sure how long they will be in the position for? 

Political stability is of extreme importance because policies drive everything in an economy. There are still some old laws that need to be rectified. With the rapid change occurring worldwide, laws have to be updated accordingly. For this, a stable government and a stable bureaucracy is of extreme importance. There are three years left till the next election. A lot can be done in these three years. Everyone has now understood that for the economy to be stable, current problems need to be dealt with differently. Without political stability, we cannot escape these issues.

There has been growing concern about corruption and criminal activities within government and law enforcement sectors. This has caused an increasing sense of insecurity among businesspeople and has contributed to capital flight. How do you view this?

There are a lot of reasons for this. Firstly, if someone has committed any crime or misdemeanor, it has to be investigated, even if it is from two years ago or ten years ago. However, the old laws that I talked of before have been creating a big problem. If someone is proven guilty, they have to be punished. But right now, even people that have not been proven guilty are being put in jail. We are not asking to release the guilty. But a respected businessperson is not going to run away and there is no reason to put them in jail to be investigated. This is what we at the CNI feel. For this, we have appealed for the provision of an anticipatory bail. 

Some bankers were also convicted some time ago for signatures while issuing loans. While making so many decisions at once, some might go wrong. We have to analyze whether misdemeanors are done intentionally or not. Maybe some government officials could have made mistakes? Investigations are important. But putting someone in jail first, then moving towards investigations is not the way to go. If you see a possibility of the person running away, then sure, it is right to capture them. But if someone is willing to show up when called upon, it is not right to put them in jail before proven guilty.

The CNI suggests that financial penalties should be issued for financial crimes—jails are not the only solution. For example, if there is a tax evasion of 100m and if the person agrees to negotiate and pay the amount, then it’s done. Using the country’s resources to investigate further for like ten years into the case is useless if the person is willing to accept, negotiate and pay.

The kind of investments and support that we are looking for from the international community seems to be falling. FDI seems to be declining. What seems to be the problem?

Ultimately, when the economy is flourishing, there are opportunities, that is when investments come. Currently, our domestic investors themselves are not willing to invest. How can we expect foreign investment? Currently businesses are only able to operate at 30-40 percent capacity. How can new investments be driven under such circumstances? 

Visa might be causing some trouble at the moment for foreign investors because it is only issued for a year and there are some complications for visa issuance to investors’ families. Apart from that, there is no major issue in terms of our laws in attracting FDI. It is simply that the economy needs improvement and the investors need  to see opportunities. Such as in hydropower, opportunities can be seen, like exporting 10,000 MW. Tourism is also seeing some small investments but no major ones, perhaps because there are two international airports but they are not able to operate. Policies also need to be right.

According to your personal forecast, what is the future outlook for our economy?

We see the future as bright. Because we are in so many problems, there are as many possibilities. Chaos creates opportunities. Therefore, there are a lot of opportunities here. As I said before, political stability, bureaucratic stability, and policies need improvement. After that, there should be no problems. There are so many opportunities in infrastructures, and hydropower. There is so much untapped potential in the tourism sector. We have a big market with our neighboring countries which creates huge possibilities for production and trade. Education sector also has a lot of opportunities. If we can establish good universities and modernize our education system, we can develop the sector. Health tourism also has a lot of potential because healthcare is affordable here. In agriculture as well, there are opportunities. We need to go into commercial farming. If the policies can be fixed, there is a lot of scope in many sectors in Nepal.