Kathmandu, April 29 -- The government has said Nepal's economy is caught in an unproductive cycle due to policy corruption, gains from licensing and contracting through informal channels and influence, and crony capitalism. As a result, state-market relations are shaped more by access and influence than entrepreneurship, competition and innovation, pushing the economy into its current state.

The report on the country's economic situation issued on Monday by Finance Minister Swarnim Wagle states that such practices have discouraged capable entrepreneurs and new entrants, and pushed the economy towards an access-based structure instead of one based on value creation. The document outlines the government's assessment of the economy and its ...