This thesis is an attempt to how governments focus on peace building process has affected economy of the country adversely. I will focus on the domestic challenge of Nepal in relation with economic development. It will explain about historic background of Nepal’s economic since 1950s. Nepal has faced lots of social as well as political changes and hurdle through second half of 90s, this thesis will try to explore how these shifts have driven an impact on the economic development. And at the end I will try to explain how these gaps can be bridged to obtain sustainable development.
