The financial crisis of 2007-08 had negatively affected several economies around the world. While
some economies were badly affected, others were mildly affected. And while some economies
experienced a direct impact of the crisis, others experienced an indirect impact of the crisis. This
paper subtly analyzes the effect of global financial crisis on Nepalese economy and suggests policy
recommendations to overcome the effects of global financial crisis on Nepalese and regional
economy.