Kathmandu, June 22: Nepal Rastra Bank (NRB) has identified several economic challenges facing Madhesh Province and also proposed reforms aimed at addressing these issues. Unveiling a study report focused on the region, the central bank emphasized the need to formalize economic activities in Madhesh and enhance revenue collection mechanisms.
One of the key findings of the report highlighted that Province citizens along the Nepal-India border are compelled to cross into India to access healthcare services due to the lack of quality health facilities locally. 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, prioritize vocational and technical education, and strengthen rural health centers by providing adequate resources.
The report further recommended developing cities like Janakpur and Birgunj into educational hubs, with a strong focus on improving the quality of education. Additionally, it has stressed need of effective waste management and maintaining 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 ensure 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 modernize and commercialize the traditional subsistence agriculture, provide easy access to fertilizers to make the agricultural sector competitive, ensure fair pricing and management of produced crops, as well as 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 in foreign employment into the productive sector in coordination with the local authorities. The central bank has emphasized the need to enhance economic activities by properly conserving and promoting geographical and religious heritages, biological diversity, and developing areas such as Janaki Temple, Parsa Wildlife Reserve, the nearby Koshi Tappu Wildlife Reserve, the Sindhuli War Museum, and Bharat Tal (Lake).
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 the Madhes 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 marginalized groups, and encourage the formalization of economic activities to expand the revenue base.
