KATHMANDU: Nepal Rastra Bank (NRB) has identified key economic challenges in Madhes Province and recommended measures for improvement in a newly released study report.
The central bank emphasized the need to broaden the province’s revenue base by encouraging the formalization of economic activities.
One of the major concerns highlighted is the lack of adequate healthcare infrastructure. Due to insufficient quality hospitals, skilled doctors, and medical equipment, many residents—particularly in border areas—are compelled to seek treatment in India, increasing the demand for Indian currency.
Addressing the shortage of medical professionals and resources within local hospitals remains a critical challenge.
In education, the report pointed to poor quality in public schools, a lack of vocational and technical training, and under-resourced rural health centers. It recommended transforming major urban centers like Janakpur and Birgunj into educational hubs to improve standards and access.
The study also raised environmental concerns, urging proper management of unmanaged waste in urban areas to curb pollution and enhance the province’s appeal.
In agriculture, limited market access forces farmers to rely heavily on middlemen, reducing their earnings. Ensuring fair prices and developing direct market access for agricultural produce are essential, according to the report.
It also called for modernizing and commercializing traditional farming methods, improving fertilizer supply, ensuring fair grain pricing, and attracting youth to agriculture through better market infrastructure.
The report further highlighted the need to boost fish farming in areas such as Janakpur and Parwanipur. With a significant portion of the skilled workforce migrating abroad, creating employment opportunities in the service sector—particularly for technicians, health workers, teachers, and IT professionals—was identified as an urgent priority.
To support local development, the NRB emphasized channeling remittances from foreign employment into productive investments through coordination with local governments.
The study also stressed the importance of preserving and promoting natural and cultural assets—including the Janaki Temple, Parsa Wildlife Reserve, Koshi Tappu Wildlife Reserve, Sindhuli War Museum, and Bharat Lake—as part of a broader tourism development strategy to stimulate economic activity.
The report noted that completing major national pride projects—such as the Postal Highway, Kathmandu-Nijgadh Expressway, the President Chure-Terai-Madhes Conservation Program, and the Nijgadh International Airport—within their planned budgets and timelines remains a significant challenge due to coordination gaps among stakeholders.
Likewise, the study has also called for increasing financial literacy, expanding access to financial services for marginalized communities, and formalizing informal economic activities to strengthen the province’s overall economic framework.
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