In a small village in the Himalayan foothills, a family gathers around a smartphone. On the screen are the faces of their son and brother, who works on a construction site in Malaysia. Moments later, another remittance hits their bank account – a lifeline that puts food on the table, pays for school, and maintains a decent standard of living. The scene, repeated in thousands of Nepalese homes, captures the essence of the country’s central economic paradox. Nepal has achieved remarkable success in virtually eradicating extreme poverty – an achievement made possible in large part by money sent home from abroad.

But behind these impressive statistics lies a disturbing reality. This success has been achieved without transformative domestic growth, significant investment, or the creation of quality jobs. For nearly three decades, the country's economy has grown at an average rate of just 4.2% a year, lagging behind most of its South Asian neighbors. Dependence on remittances, which account for about 25% of GDP3, has created a "Dutch disease"-like effect: it has undermined the competitiveness of domestic exports and perpetuated a cycle of migration in which the country exports its most valuable asset - its youth.

Now, with remittance growth expected to slow and the limitations of the current model becoming increasingly apparent, the big question arises: Where will Nepal's next, more sustainable economic engine come from?

The answer lies not in one silver bullet, but in a strategic and synergistic pivot to a portfolio of undervalued but high-potential industries. Nepal’s future prosperity depends on its ability to leverage its unique strengths—rich culture, young and dynamic workforce, and unique geography—to develop four key sectors: creative ("orange") economy, high-tech agriculture, a rapidly developing sector digital services and highly profitable health tourism It is these areas that are capable of building a sustainable, inclusive and modern economy.