Kathmandu, March 25 -- Low labour productivity, weak competition in logistics and transport, subpar infrastructure, and high tariffs and excise taxes on exports are just a few of the challenges stalling Nepal's growth. An underperforming manufacturing sector, an underdeveloped tourism industry, sluggish hydropower development, limited infrastructure, regulatory challenges, and digital literacy gaps also contribute to the stagnation.

These issues have created an economy that generates few jobs and forces over half a million people to seek jobs abroad annually.

The World Bank flagged these concerns in its report 'Nepal Country Economic Memorandum: Unlocking Nepal's Growth Potential' released on Monday.

As Nepal aims to graduate from the ...