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.

KATHMANDU, May 2: Financial transactions through Quick Response Based Payments (QR Codes) have tripled in a single year.

KATHMANDU, April 5: Economists and the private sector on Wednesday blame the political leaders for being apathetic about the serious economic problems that the country is facing at present.

KATHMANDU, April 5: The Asian Development Bank (ADB) has estimated Nepali economy to grow by 4.1 percent in the current fiscal year, lower than earlier estimation of 5.8 percent.

Hopes for a Revival

April 4, 2023 07:45 am

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.

Mayday call for economy

March 15, 2023 07:30 am

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 8: Nepali Congress General Secretary Gagan Kumar Thapa has said that the government should take a tough decision to solve the problems seen in the country’s economy immediately.

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!

Trade and Investment Policy in South Asia

February 28, 2023 08:00 am

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.

KATHMANDU, Jan 19: Economists have cautioned that Nepal could face higher pressure on price inflation in the near future due to the possibility of a global recession.

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!

Economy in the doldrums

December 22, 2022 07:53 am

The current situation paints a bleak picture of the Nepali economy although its external sector has recovered marginally in recent times. An improvement in the remittance inflow, trade balance and foreign currency reserves are something to cheer about. However, other crucial macroeconomic indicators like the inflation rate, government expenditure, government revenue mobilization, interest rates of banks, foreign direct investment (FDI) and aggregate demand haven’t been healthy in recent months.

Control Price Rise

December 19, 2022 08:00 am

These are perhaps the times when we feel the tightest squeeze on our wallets in years, with the price of everything rising very quickly, especially over the past few months. Perhaps, over the past few months, prices have risen at their fastest pace in years.

Can Nepal Avoid the Debt Trap?

December 17, 2022 08:00 am

Many of the so-called ‘projects of national pride’ are being executed through foreign assistance with considerable loan amounts. All these projects are important, however, there are abnormal cost increases in most projects due to unending deadline extensions and low rates of return have increased Nepal’s debt burden. The Melamchi Drinking Water Project, Pokhara Regional International Airport, and Sikta and Babai irrigation projects are some examples of high-debt burdens.

Taming High Interest Rates

December 16, 2022 07:30 am

The survey reports of the private sector unveil a bleak picture of the economy. Manufacturers of construction materials are operating at 30 percent of their capacity, consumption of essentials has gone down by 18 percent and restaurants’ business by 20 percent, among others. These provide some evidence of how the economy is affected.

Economy is on the mend: NRB

December 1, 2022 15:00 pm

KATHMANDU, Dec 1:  Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has said that the economy is improving.

Bitcoin is banned in many fascist countries even though it is a radical idea based on a sound economic theory. Many economists from the Austrian School had imagined money that is independent of the State long before Bitcoin came into existence.

Nepal and the UAE established diplomatic relations in 1977. The bilateral cooperation between the two countries has since increased manifolds. While the UAE is the fourth largest trading partner of Nepal, this Middle Eastern nation is also one of the popular destinations of Nepali migrant workers. The two countries also share common views on significant global issues ranging from renewable energy, climate change to world peace and fight against terrorism both as a member of the United Nations and the Non-Aligned Movement at the multilateral level. Against this context, Republica's Kosh Raj Koirala talked to UAE Ambassador to Nepal, Saeed Hamdan Al Naqbi, to understand the current state of bilateral relations between Nepal and the UAE, potential areas of cooperation and ways to further promote bilateral relations between the two countries. Excerpts:

Nepalis longing to return home must not waste time waiting for a better time, better economy, or better government. They must accept their native country as it is now and bet on the potential of the country. If we do not believe in the future of our own country, then why would any foreign investor do so?

KATHMANDU, Sept 11: Chairman of the CPN (Maoist Center), Pushpa Kamal Dahal has said that agriculture-based industries should be developed to strengthen the country’s economy.

KATHMANDU, Sept 4: Vice-Chairman of the National Planning Commission (NPC) Dr Bishwonath Paudel has stressed the need for increasing investments in the production and service sector to boost the country's economy.

KATHMANDU, July 29: The Confederation of Nepalese Industries (CNI) has said that the provisions made by the Monetary Policy are likely to put pressure on the external sector and decrease foreign exchange situation.

KATHMANDU, July 23: In 11 months of the fiscal year 2021/22, import of goods and services increased to Rs 185 billion 840 million with a whopping rise by 53.3 percent.

Remittances from overseas migrants have been a crucial component in keeping Nepal's economy afloat. With a contribution of 24.1 percent to the national economy in 2020, remittances have had a Dutch disease effect on the national economy.

KATHMANDU, July 22: Minister for Communications and Information Technology and Nepali Congress leader Gyanendra Bahadur Karki has claimed that Nepal will soon become a country with a strong economy in South Asia.

KATHMANDU, July 20: The Nepal Chamber of Commerce (NCC) has urged Speaker of House of Representatives Agni Prasad Sapkota to take forward the Bills related to economy/finance under consideration or deliberation in the parliament.

KATHMANDU, July 17: It has been a year since the problem began to appear in the country’s external sector. The problems seen since mid-July 2021, the first month of the last financial year, have not been resolved until the beginning of July this year. The problems in some areas are going deeper.

Nepal is also experiencing most signs of recession. Some economists say that a recession is almost sure to happen here, although we are not yet in a complete recession. The signs of an economic downturn are cropping up all over, in some sectors like fuel, food items, edible oils and other necessary commodities.

BUTWAL, July 3: Home Minister Bal Krishan Khand has said that emphasis should be laid on the use of indigenous products to boost the economy hit hard by Covid-19. Addressing a convention of the Chamber of Commerce and Industry at Tilottama in Rupandehi on Saturday, Home Minister Khand urged the industrialists to use indegenous products.

KATHMANDU, July 2: Former Governor of Nepal Rastra Bank (NRB) Dipendra Bahadur Chhetri has said that the situation in Nepal's economy was not like that of Sri Lanka. However, according to him, if the political rights are given to the wrong person like in Sri Lanka, then there is a possibility of Nepal becoming the next Sri Lanka

KATHMANDU, June 20: Minister for Finance Janardan Sharma has said that Nepal being an agriculture-oriented country cannot head towards development while continuing to import Rs 350 billion worth of food items from outside the country.

We are not sacrosanct to global events and sustain some forms of impact because Nepal heavily depends on imports of basic food items. It is difficult to foresee how Nepal will navigate through this at the end of the economic tunnel of the projected high growth and join the club with other middle-income countries like China, Bangladesh and Vietnam, for example.

KATHMANDU, June 15: All the seven provinces in the country are announcing their budgets for fiscal year 2022/23 on Wednesday.

LAMJUNG, June 13: The Annapurna Circuit, a trek within the mountain ranges of Nepal, has received a decreasing number of tourists lately, thanks to various factors like the onset of monsoon, road problems and off season for tourists.

KATHMANDU, June 10: Nepal's trade deficit has increased by 30.5 percent in the first 10 months of current fiscal year 2021/22 as compared to corresponding period of the previous fiscal year.

As the Russia-Ukraine war drags on and sanctions tighten, prices are projected to climb, causing a domino effect that would affect economies all across the world, including Nepal.

The fact that politically unaffiliated dynamic young candidates like Balen Shah and Harkaraj Sampang Rai were elected as the mayors of two big cities of Nepal shows a new local political movement has arrived in Nepal as well. This type of political movement is known as Flatpack Democracy - a small-scale revolution that is bringing real change to local politics. Citizens are reclaiming their respective cities from political parties.

KATHMANDU, June 1: On May 29, the government introduced a budget of Rs 1.793 trillion for the fiscal year 2022/23, an increase of around Rs 146 billion from that allocated for the current fiscal year (2021/22).

KATHMANDU, May 31: Metmani Chaudhary, a member of parliament (MP) from the ruling CPN (Unified Socialist), has said that the new budget unveiled by the government is satisfactory.

KATHMANDU, May 29: The government has allocated a budget of Rs 69.38 billion for the health sector in the upcoming fiscal year 2022/23. Minister for Finance, Janardan Sharma Janardan Sharma made this announcement during his budget speech in the federal parliament on Sunday afternoon .