In the face of a global economic downturn, most countries of the world will inevitably experience the repercussions of this phenomenon. As the economy transitions from the normalization observed at the end of last year to a state of turbulent ‘new-normality’ this year, the global economy is poised to decelerate amid the lingering impacts of tight monetary policy, restrictive financial conditions and sluggish global trade and investment.
KATHMANDU, Jan 25: Finance Minister Dr Prakash Sharan Mahat has said that more investment in unproductive sectors including the real estate and share market created challenges in the country's economy.
KATHMANDU, Jan 2: The private sector has criticized the government for bragging about the improvement in external sector indicators to cast a shadow to the existing problems of the domestic economy, stating that the economy is rather grappling with recession.
SURKHET, Dec 14: Only 30 percent of families in Karnali Province are self-reliant in agricultural production, according to the national agriculture census, 2078. A large 70 percent cannot feed themselves with the productions throughout the year.
According to world bank data, the world’s urban population has grown from 34% in 1960 to 57% in 2022. At the same time, per capita income has grown from USD 456 to USD 12,647. However, the economic performance of South Asia has been below par in comparison to average global economic performance.
MARRAKESH, Morocco, Oct 11: The IMF kept its 2023 global growth forecast unchanged on Tuesday but warned that the economy is "limping along" as inflation remains high and the outlooks for China and Germany were downgraded.
KATHMANDU, Sept 26: The government's aspirations for the fiscal year 2023/24 that hinge on boosting economic activity and fostering business growth, face formidable challenges, as recent statistics from the months of Shrawan to Bhadra (mid-July to mid-September) do not bode well for their realization.
KATHMANDU, Sept 21: Newly appointed Finance Secretary Dr Krishna Hari Pushkar has stressed the need for the bureaucracy to put in optimal efforts to resolve problems in the country's economy at present.
KATHMANDU, Sept 20: Nepal's economy is poised for a significant resurgence in the current fiscal year, with an anticipated growth of 4.3 percent at market prices, according to the latest Asian Development Outlook, a flagship publication of the Asian Development Bank (ADB).
Kathmandu, Aug 15: Finance Minister Dr Prakash Sharan Mahat has said that the country's economy is improving in recent days but a positive outlook has not been developed among the general people and the private sector.
KATHMANDU, Aug 15: The government has started holding discussions with stakeholders including the private sector, donor agencies, development partners and regulatory bodies after expected improvement was not seen in the economy despite the government's positive interventions.
Nepal, a buffer state between the two economic giants, India and China, struggles to maintain financial stability. Its strategic location between these two global powerhouses has positioned it at the crossroads of economic activity. Still, it has also exposed the nation to unique challenges that have impacted its macroeconomic landscape.
In the midst of various challenges faced by Nepal in narrowing down its widening trade deficit, one significant ray of hope emerges in the form of the surging momentum seen in the export of cement. The FY 2022/23 witnessed Nepal earning around Rs 780 million from cement exports, a feat not to be underestimated.
In a welcome development for Nepal's economy, the trade deficit has declined by 15.45 percent, reaching Rs 1.454 trillion in the fiscal year 2022/23. This significant drop is largely attributed to the government's measures to check imports, responding to concerns over depleting foreign currency reserves and a fall in people's income due to the recession. While this reduction in the trade deficit is undoubtedly a positive step, it is essential to recognize that there is still a long way to go before achieving a sustainable balance in trade.
KATHMANDU, July 25: Nepal suffered a trade deficit of Rs 1.454 trillion, a decline of 15.45 percent, in the last fiscal year, thanks to the government adopting measures to check imports citing the depleting foreign currency reserves along with a fall in the income of people due to recession.
As Nepal's economy grapples with the challenges of a deep recession, it is imperative for Nepal Rastra Bank (NRB) to adopt a proactive approach and leave no stone unturned in revitalizing the nation's financial landscape.
POKHARA, July 2: Finance Minister Prakash Saran Mahat recently visited the Inland Revenue Office in Pokhara to oversee its operations. During his visit, Minister Mahat addressed the issue of Value Added Tax (VAT) and expressed the sentiment of those affected by this tax.
The agricultural sector is the backbone of Nepal's economy, employing a significant portion of the population and contributing to food security and economic growth. However, farmers in the country have long faced a perennial challenge – the unavailability of chemical fertilizers when they need them the most, leading to suboptimal harvests and hampering their livelihoods.
KATHMANDU, May 19: Nepal’s private sector has been contributing around 81.55 percent to the Nepali economy, shows a study report unveiled jointly by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and International Finance Corporation (IFC).
Whether a person is seeking an adrenaline-rushing adventure or finding peace through tranquil nature, Nepal is the perfect destination. Home to breathtaking mountain ranges, including Mt. Everest, the country offers diverse cultures among various ethnic groups and religions coexisting harmoniously. Nepali people are also renowned for their warm hospitality and friendly nature. The country leaves a lasting impression on any visitor since opening its borders to foreigners in the 1950s.
As the preparation for the federal budget for the next fiscal year is under full swing, the Ministry of Finance has concluded deliberations with the line ministries, business and industrial organizations, corporate houses and other concerned stakeholders to include appropriate suggestions to give final shape to the budget. The pre- budget discussion is underway in the parliament and thereafter the budget will be presented in the parliament on 29th May 2023 as per the constitutional provision.
The newly appointed Finance Minister, Dr. Prakash Sharan Mahat, is currently occupied with the process of formulating the budget for the upcoming fiscal year 2023/24. He has assembled a team of experts with diverse expertise in the domestic and internal aspects of the economy and public finance to assist him in this endeavor.
KATHMANDU, May 7: Prime Minister Pushpa Kamal Dahal has said the present economic situation of the country is not worrisome and efforts were underway to bring improvements in the country's economy by addressing the problems.
Despite the recent growth seen in the number of arrivals of tourists, it is important to acknowledge the challenges that remain for Nepal's tourism industry. The COVID-19 pandemic is still ongoing, and there is always the risk of new outbreaks and restrictions. Additionally, Nepal's poor record of aviation safety has been a concern for potential tourists.
Remittance has been an integral part of Nepal's economy for years, with hundreds of thousands of Nepali migrant workers traveling to various parts of the world in search of better job opportunities every year. However, as much as remittance has been a lifeline for many Nepali households, it may not be the best option to depend on for the country's economy.
The news report of the government failing to meet the revenue collection target for the first eight months of the current fiscal year is alarming. The government's inability to generate enough revenue indicates that it may not be able to fund its development projects and maintain its regular operations.
KATHMANDU, March 7 :The country's public debt is increasing every year. By mid-February of the current fiscal year (FY 2022/23), the debt liability of the government has reached about Rs 2 trillion. Experts have said that the country's economy has become more challenging due to the increasing debt obligations.
The economic outlook for the country appears grim, with a forecast that is anything but optimistic. However, despite political instability and a sluggish economy, the government reports that Nepali citizens are experiencing an increase in annual income!
During the 1980s, the economy of China and India were almost at the same level in terms of GDP, per capita GDP and growth rates with coequal population. However, within a 30-year period, China dramatically surpassed India in the growth rate by a huge margin and per capita GDP five times that of India. The reason behind China’s high performance was its willingness to let foreign investors access its assets, labor and non-traded infrastructure at a significantly lower cost than its Indian competitor. Moreover, the decision-making process to approve foreign investment in China was simple and fast compared to the lengthy process and long deliberations in India.
ROLPA, Feb 9: A company that has not completed any work for 25 months after being awarded a contract in Rolpa has gone missing after receiving an advance of Rs 66.6326. Tripureshwari-Vibhanshu JV, based in Kathmandu, had signed a contract on December 15, 2020 to electrify various locations in the district for a total cost of Rs 376.447 million, to be completed within 18 months. Despite this, the contractor reportedly asked locals to donate labor, which was not part of the original contract.
KATHMANDU, Feb 8: Shekhar Golchha, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has claimed that there is a problem in the economy due to lack of capable leadership to drive the economy.
KATHMANDU, Jan 29: The cement industry has cut its production by up to 70 percent due to the drop in demand in the market. Due to the heavy decline in the demand for cement due to stagnation of development projects resulting from liquidity crisis in banks, reduction in capital expenditure, lack of construction materials, the production has been affected.
The Debt to GDP ratio has reached 41.5% and the debt figure amounted to NRs 2 trillion this year. So, the amortization schedule shows that we are required to pay almost 10 percent of our total revenue for debt repayment. If the creditors hesitate to fund sufficient loans, once we reach an unsustainable level of the debt to GDP ratio, only Lord Pashupatinath knows what’s going to run our state!