NRB identifies economic challenges in Madhesh Province, proposes reforms
KATHMANDU: Nepal Rastra Bank (NRB) has identified several economic challenges faced by Madhesh Province and has proposed reforms aimed at addressing these issues.
Unveiling a study report focused on the region, the central bank emphasised the need to formalise economic activities in Madhesh and enhance revenue collection mechanisms.
One of the key findings of the report is that citizens of the province along Nepal-India border are compelled to cross into India to access healthcare services due to lack of quality local health facilities. This situation has significantly increased the demand for Indian currency in the province, presenting a notable economic challenge.
Other critical issues identified include the need to improve government and community-run schools, prioritise vocational and technical education, and strengthen rural health centres by providing adequate resources.
The report further recommended developing cities such as Janakpur and Birgunj into educational hubs, with a strong focus on improving the quality of education. Additionally, it stressed the need for effective waste management and the maintenance of clean streets to enhance the overall appeal of the province as a beautiful and pleasant region.
Agriculture-related concerns were also highlighted. Due to limited market access, many farmers are forced to rely on intermediaries to sell their produce. The report stressed the urgent need to connect farmers directly to fair agricultural markets and to ensure that they receive just prices for their products. Similarly, a study by the central bank has shown that it is necessary to enhance fish production capacity in areas such as Janakpur and Parwanipur, which are known for fish farming.
It is essential to modernise and commercialise traditional subsistence agriculture, provide easy access to fertilisers to make the agricultural sector competitive, ensure fair pricing and management of produced crops, and manage the market to attract youth to agricultural activities.
As the trend of skilled human resources from the province migrating abroad has increased, creating an environment for employment by arranging for technicians, health workers, teachers and IT experts for the operation of the service sector also appears to be challenging, the NRB report stated. It is essential to invest the remittances received from youths working abroad into the productive sector in coordination with local authorities.
The central bank has emphasised the need to enhance economic activities by properly conserving and promoting geographical and religious heritage, biological diversity, and by developing areas such as Janaki Temple, Parsa Wildlife Reserve, the nearby Koshi Tappu Wildlife Reserve, the Sindhuli War Museum and Bharat Tal.
The study concludes that it is challenging to complete nationally significant projects such as the Postal Highway, the Kathmandu–Nijgadh Fast-track, the President Chure Terai Madhes Conservation Programme and Nijgadh International Airport, which have been started in Madhesh Province, within the determined cost and schedule while maintaining coordination among various stakeholders and sectors.
The study has shown that it is essential to enhance financial literacy in the region, increase financial access for marginalised groups and encourage the formalisation of economic activities to expand the revenue base.
By RSS
