Kathmandu: 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.
According to National News Agency Nepal, one of the key findings of the report highlighted that 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 stressed the need for effective waste management and maintaining clean streets to enhance the overall appeal of the province.
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, known for fish farming.
The study also emphasized the need to modernize and commercialize traditional subsistence agriculture, provide easy access to fertilizers, ensure fair pricing and management of produced crops, and manage the market to attract youth to agricultural activities. As skilled human resources from the province increasingly migrate abroad, creating an environment for employment by arranging for technicians, health workers, teachers, and IT experts for the service sector also appears challenging.
It is essential to invest remittances received from youths working abroad into the productive sector in coordination with 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, Koshi Tappu Wildlife Reserve, Sindhuli War Museum, and Bharat Tal (Lake).
The study concludes that completing nationally significant projects such as the Postal Highway, the Kathmandu-Nijgadh Fast-track, the President Chure Terai Madhes Conservation Programme, and Nijgadh International Airport within the determined cost and schedule is challenging while maintaining coordination among various stakeholders and sectors. The study has shown that it is essential to enhance financial literacy, increase financial access for marginalized groups, and encourage the formalization of economic activities to expand the revenue base.