Baburam Urges Balen to Seek Sustainable Solutions for Nepal’s Historic Economic Challenges

File Photo 1 Asar, Kathmandu: Former Prime Minister Dr. Baburam Bhattarai has highlighted the emergence of a serious structural crisis in Nepal’s economic sector and urged the new generation of leaders to find sustainable solutions. Addressing the youth-dominated parliament and government, Dr. Bhattarai posted a statement on social media Sunday requesting action on this critical issue. He pointed out that the announcement to shut down 83 tea factories following export restrictions by India, coupled with a decline of 120 registered industries compared to last year, signals a severe economic crisis for the country.

“These are clear indicators of deeply troubling structural problems within the economic sector. Nepal’s weak industrial base currently accounts for only 11.4 percent of GDP (Gross Domestic Product) and employs just 13.8 percent of the workforce, according to 2024 data,” he stated. “The most alarming aspect is that while Nepalese are highly sensitive to issues of national identity, our naïve ignorance and silence regarding economic nationalism are very worrisome.” Dr. Bhattarai, who also served as finance minister, recalled his doctoral thesis presented 40 years ago at India’s Jawaharlal Nehru University (JNU), in which he analyzed Nepal’s problems of dependency and underdevelopment.

“Forty years ago, I submitted my PhD dissertation titled ‘The Nature of Underdevelopment and Regional Structure of Nepal’ at JNU, providing an extensive analysis of the internal and external causes behind Nepal’s structural economic underdevelopment and dependency,” he reflected, adding, “But since then, we have been consumed by struggles over political rights.” After reflecting on how much of his generation’s time was devoted to political reform, he stressed that now the responsibility for curing the country’s economic ailments falls on the shoulders of the new generation. “The friends currently holding power with fresh energy and enthusiasm—will they now seek sustainable solutions to this historic economic malady?” he questioned, offering this as a crucial challenge.

Dr. Bhattarai’s remarks come amid worsening conditions in Nepal’s industrial sector, highlighted by disruptions in tea exports to India and a decline in new industry registrations, signaling a deteriorating industrial environment in the country.