With the end of every fiscal year, past performance is evaluated and new strategies are developed according.

Few days earlier, fiscal year 2069/70 has been finished and the analysis of annual economys performance started. The performance of the last fiscal year 2069/70 does not seems to be satisfactory. Trade deficit, inflation and low economic growth have seen as the major challenge for the country. The government had expected to have an economic growth of 5.5%, but in actuality, growth has stuck on only 3.6%. The production in agricultural goods has been decreased by 3.7% this year while the expansion on non agriculture increased by 4.98%. The Gross Development Product (GDP) of the country has been increased from 15.36 kharba to 17.01 kharba. It seems that the country is in a way of sluggish improvement. Nepal has achieved the second position from the buttom to attract FDI in the year 2012. Only Bhutan remained back of it. Even Afghanistan, the country with full political instability and uncertainty, remained ahead of Nepal. In the year 2012, $ 92 million FDI came to Nepal, whereas the amount was $95 million in the previous year. The composition of Nepalese economy is changing gradually. The contribution of agriculture and production sector on GDP is decreasing while service is increasing. Agriculture has 35% stake on GDP, while production sector has only 15% and service sector has a major contribution of 50%. The flow of funds has not been properly utilized in the productive sector. The data shows that 90.7% of the GDP comprises of consumption and the rest 9.3% has been made the capital expenditure. The flow of remittance in the country has not been able to implement in the productive sector and wasted it in purchasing the utensils like television, cars and motorbike. As a result of investment in those sectors, money is not created and it is for sure that country falls in the trap of serious double digit inflation. The other serious problem faced by the country is the dependency upon other country. The increase in net export has been increased by 4% while that of import has been increased by 21%. At this scenario, the trade deficit of the country has been increased by 16% to reach the level if 484.05 billion. The highly increase in the value of dollar with respect to rupees and high inflow of petroleum products helped in increasing the gap between import and export. Meanwhile, the balance of payment remained positive in the fiscal year 2069/70. The increase in remittance by 9.75% and inflow of foreign loan lead to maintain the positive balance of payment in the country. At the same time the retention of foreign currency has been increased by 23%. But it doesnt seems to be lasting in this year too because Nepalese currency has been devaluated badly that costs high to make foreign payments. A small improvement has seen in other sectors that help in boosting trade and economy. The supply of electricity has been increased to a level of 746 MW till the end of this fiscal year 2069/70. 128 KM of the road has turned into metallic road that lead to a network of 10,320 KM metallic road across the country. Up to the end of previous fiscal year, more than 1.96 crore population are bonded with telephone service, which consists of more than 85% mobile users. Enrollment in primary education level has reached 95.5% and the poverty level has been decreased to 23.8%. In regard with the Nepalese performance of economy in the last fiscal year 2069/70, it is clear that the hard days are on the way ahead. Its not easy to replace the import based economy as exporting economy. In the light of current scenario, where local investors not being motivated for further investment, it is very hard to attract FDI. But there is no other option apart from attracting FDI in the country. Government has tried some of the initiation in developing the building blocks for the economy. Both monetary and fiscal policy of current fiscal year 2070/71 has been formulated in an expansionary

way and tried to increase capital expenditure. Yet it is not enough to improve the situation. So we have to wait few decades to see the changing face of the country economically and socially.