Can Nepal Avoid the Debt Trap?

December 17, 2022 08:00 am

Many of the so-called ‘projects of national pride’ are being executed through foreign assistance with considerable loan amounts. All these projects are important, however, there are abnormal cost increases in most projects due to unending deadline extensions and low rates of return have increased Nepal’s debt burden. The Melamchi Drinking Water Project, Pokhara Regional International Airport, and Sikta and Babai irrigation projects are some examples of high-debt burdens.