April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY…
April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY…
April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant…
April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the…
April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the…
April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian…
April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance.…
April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis.…
April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical…
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According to the central bank, the y-o-y consumer price inflation was 3.03 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by NRB on Wednesday states that food and beverage inflation stood at 7.51 percent whereas non-food and service inflation stood at 6.84 percent in the review month. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Under the food and beverage category, the prices of ghee and oil, vegetable, milk products and eggs, and pulses and legumes sub-categories rose by 26.34 percent, 13.96 percent, 11.30 and 10.30 percent respectively on y-o-y basis. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Likewise, under the non-food and services category, the prices of transportation, miscellaneous goods and services and education sub-categories rose by 16.27 percent, 9.01 percent and 8.79 percent respectively on y-o-y basis.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14839', 'image' => '20220413040620_Inflation.jpg', 'article_date' => '2022-04-13 16:05:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '15088', 'article_category_id' => '274', 'title' => 'Speaker Sapkota Pitches for Self-Reliant Economy ', 'sub_title' => '', 'summary' => 'April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. ', 'content' => '<p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"Several problems have arised as the economy is not self-reliant," he said and stressed on the need of meaningful cooperation and partnership between the government and the private sector for building a self-sufficient and robust economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Speaker Sapkota made such remarks while addressing the 56th annual general meeting and 'Industry and Commerce Day' of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Monday. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the private sector has knowledge, skills, talent and capacity, everything, he urged the private sector to play a role to bail out the economy from the current state of crisis.</span></span></span></p> <p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">He added that he was ready to fulfill his responsibility as the Speaker in building an environment conducive for business and investment in the country. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The government and the private sector should have common views on matters relating to the economy. We should work with long-term vision and not get bogged down in short-term agendas," he suggested. The Speaker also underscored on steering the country ahead on the path of prosperity by utilizing the private sector's capabilities. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">FNCCI president Shekhar Golchha blamed lack of transparency and the confusion around the short-term policies for the crisis faced by the economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Referring to the economic crisis Sri Lanka is passing through at present and the concerns being expressed by economists and the business community in the country that whether Nepal is also heading to a similar situation, the FNCCI president said, "We are not going to be like Sri Lanka, but if we are not cautious at present then we will certainly reach to that situation." </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">As ways to avert such crisis, he suggested strengthening the mechanism for bringing in money, creating investment opportunities within the country and increasing exports to create wealth. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that it was regrettable that the private sector which occupies 77 per cent of the economy and creates over 75 per cent employment in the country is in the dark about the discussions and decisions taking place in Singha Durbar (the administrative centre of the government) and Nepal Rastra Bank (the central bank of Nepal), Golchha stressed that it would be far better if the industrialists and businessmen were consulted regarding identification of the problems in the economy and finding out solution to these pressing problems. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Chief Secretary Shanker Das Bairagi refuted Golchha’s claim saying, "The government has never ignored the private sector, rather it considers the private sector as its partner." He described the private sector as the integral development partner of the government and the government was always for a meaningful partnership with the private sector. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The economic situation is not as bad as it is said to be. There are some signs of risk. We should all, together, address this problem," he added. The chief secretary said the government is doing homework for creating investment-friendly environment. --RSS</span></span></span><br /> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14830', 'image' => '20220412015715_1649681723.jpg', 'article_date' => '2022-04-12 13:56:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15087', 'article_category_id' => '274', 'title' => 'Do not Politicize Economy: Finance Minister', 'sub_title' => '', 'summary' => 'April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Bijay Damase</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Following criticism for the deteriorating economy of the country, Finance Minister Sharma organized a press conference on Monday and claimed that the economy was heading on the right track. He added that the issue was being politicized unnecessarily.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The country’s economy is not under crisis but attempts are being made to politicize the issue,” said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He also said comparing Nepal’s economy to Sri Lanka was tantamount to treason. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“There are rumors that the government does not have budget to hold election and to provide elderly allowance. In fact, there isn’t any such problem,” Minister Sharma assured.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“People are spreading fake news that Nepal will become like Sri Lanka. Such a situation will not arrive as we still have Rs 67 billion in state coffers,” he added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to Minister Sharma, Nepal’s foreign exchange reserves stood at Rs 1171 billion as of mid-March 2022 and is enough to support imports for 6.7 months. He further said that Nepal’s total foreign debt amounted to Rs 1800 billion. According to the minister, the government has to pay only Rs 40 billion as installment and interest and therefore Nepal’s situation cannot be compared with Sri Lanka from any angle. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The minister further said that although the inflow of remittance has declined to some extent compared to last year, it is expected to grow in the coming days. According to the figures of the finance ministry, the inflow of remittance as of mid-March in the current fiscal year was Rs 631 billion, which is 4.9 percent less compared to that of last year. The inflow of remittance in the month of Falgun (mid-February to mid-March) was Rs 91 billion. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Investigation against NRB Governor</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma clarified that the investigation against NRB Governor Maha Prasad Adhikari is being done in compliance with the laws and the Rastra Bank Act. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A probe committee was formed to look into the matter and further decisions would be taken upon the recommendation of the report prepared by the probe committee, said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A meeting of the Council of Ministers on Thursday (April 7) had decided to investigative into the alleged role of Governor Adhikari in leaking sensitive information of NRB. The Cabinet meeting has formed a committee under the coordination of former Supreme Court Justice Purushottam Bhandari to investigate the matter. The committee has been asked to submit its report within a month.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>NRB policy to blame for current crisis</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the current crisis was a result of the credit flow policy adopted by the central bank. He claimed that the problem has surfaced due to the excessive flow of loan. The finance minister added that he had instructed the governor to limit the flow of credit but to no avail.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The target of credit flow was 19 percent but the actual credit flow was 32 percent,” said Minister Sharma, adding, “Shouldn’t it have been resolved on time? It is the responsibility of the central bank not the finance ministry.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He said that the excessive flow of loan should have helped the productive sector but that did not happen due to lack of coordination. The minister said that he had time and again inquired with the central bank about the details of the credit flow but he did not get any response.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“Concessional loans were disbursed, but it was found to have been disbursed haphazardly. The probe committee will investigate this matter,” said Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Efforts being made to bring economy back on track</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the revenue collection was also exceeding the expectations. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In a bid to increase remittance inflow, Minister Sharma informed that a proposal seeking approval for setting up reserve fund for Nepali migrant workers abroad to invest has been forwarded. The draft of the proposal also has provisions to set aside quotas for IPO and FPO for people sending remittance through formal channels, allowing the remittance companies to use wallet and to reduce the cost of fuel used by government agencies. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Furthermore, he shared that a proposal had been made to temporarily ban the import of expensive and luxurious vehicles and not to allow the government vehicles to be used on public holidays. </span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14829', 'image' => '20220412010021_1649714045.jpg', 'article_date' => '2022-04-12 12:59:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15086', 'article_category_id' => '274', 'title' => 'Liquidity Crisis is the Result of Central Bank’s Policy: Former NRB Governor', 'sub_title' => '', 'summary' => 'April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Speaking at the annual general meeting (AGM) of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) on Monday, the former governor said that the problem surfaced after the Covid-19 pandemic as the NRB was the only institution to provide support for post-Covid recovery when the government should also have done something.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Liquidity crisis has become a long-term problem in Nepal,” said the former governor, adding, “There was excessive flow of credit after the pandemic subsided, causing the crisis. We identified exportable products but couldn’t export them. On the other hand, import of food items has increased excessively.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also accused the government of failing to spend capital budget and urged the concerned authorities to send the money to the banking system.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Former Governor Nepal was of the view that remittance cannot be a source for sustainable economic development and therefore the time has come for the government to explore other alternatives.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also clarified that Nepal’s situation cannot be compared to Sri Lanka. According to him, Nepal hasn’t taken loan at exorbitant rate like Sri Lanka.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14828', 'image' => '20220412120246_1649684023.jpg', 'article_date' => '2022-04-12 12:01:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15085', 'article_category_id' => '274', 'title' => 'Nepal’s Public Debt Lowest in South Asia: Finance Secretary', 'sub_title' => '', 'summary' => 'April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The finance secretary made such revelation during a press conference organized at the Ministry of Finance on Monday.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Marasini said that there is widespread concern regarding the country’s public debt but the situation is not so serious and there is no need to worry about this issue. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Lately, people have expressed a lot of concern regarding Nepal’s public debt, but our public debt is one of the lowest in South Asia,” said Marasini. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the finance ministry, Nepal’s public debt as of April 11, 2022 is Rs 1854 billion, including internal loans of Rs 873.19 billion and external loan of Rs 980.80 billion.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal’s public debt is 43.74 percent of the country’s Gross Domestic Product (GDP).</span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14827', 'image' => '20220412112511_economictrends_3_0.jpg', 'article_date' => '2022-04-12 11:24:22', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15081', 'article_category_id' => '274', 'title' => 'Former Finance Ministers Draw Government's Attention to Economic Crisis ', 'sub_title' => '', 'summary' => 'April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Former Finance Ministers Bishnu Prasad Poudel, Surendra Pandey and Dr Yuba Raj Khatiwada drew the attention of the government by organizing a press conference on Sunday (April 10). On the occasion, they urged the government not to allow the country's economy to deteriorate. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">In a statement distributed to the media on the occasion, they stated that the external sector is facing crisis. Stating that imports have increased uncontrollably in the current fiscal year and reached around Rs 1500 billion in eight months, the former finance ministers warned that imports will reach Rs 2200 billion if the present situation continues.</span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">The former finance ministers opined that the growing import has not contributed to production except leading to increased consumption. In this backdrop, they urged the government to think about the economic health of the country before it is too late. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Noting that trade deficit has increased at present, the former finance ministers projected it to exceed Rs 2000 billion by the close of the current fiscal year if the present situation continues. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">They also objected to the government's decision to suspend Nepal Rastra Bank’s Governor Maha Prasad Adhikari. -- RSS </span></span></span></p> ', 'published' => true, 'created' => '2022-04-11', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14823', 'image' => '20220411110007_pro_ktm_umla.jpg', 'article_date' => '2022-04-11 10:59:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15070', 'article_category_id' => '274', 'title' => 'Nepal’s Economy Heading Towards Red Zone: Expert', 'sub_title' => 'Experts say Delayed Action of Government caused Current Economic Crisis', 'summary' => 'April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Milan Bishwakarma</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. The situation has worsened when the economy battered by the impact of Covid-19 for 2 years was gradually clawing back to normalcy.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The economy has been pushed to the brink due to various factors including liquidity crunch in the banking system, inflation, energy scarcity, declining foreign exchange reserves among others.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">There were ominous signs since the beginning of the current fiscal year that the economy would undergo stress. The Current Macroeconomic and Financial Situation Report published by Nepal Rastra Bank every month had indicated that the economy was on the verge of crisis. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The Balance of Payments (BoP) was in deficit while the foreign exchange reserves were declining since mid-July. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Besides, trade deficit was increasing and remittance inflow was declining. Banks were struggling to manage investible capital since the start of the current fiscal year. Experts say that the economy is already in crisis because the concerned authorities did not take proper measures to address those problems in time. They argue that the economy has been further troubled by the energy crisis and hike in fuel prices of late. They suggested that the government must take measures to ensure that the foreign exchange reserves get replenished. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Foreign exchange reserves are vital indicator of the economy. The economic situation depends on the volume of foreign exchange reserves. Foreign currency is needed for importing goods and services. It is not possible to import goods and services in lack of foreign exchange reserves. Lately, the economy is in crisis mainly because of the decline in foreign exchange reserves.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Economist Dr Chandra Mani Adhikari suggests that the government must take immediate steps to effectively mobilize the foreign exchange reserves to resolve the current crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The main crisis faced by the economy at present is the declining foreign exchange reserves,” says Adhikari, adding, “It affects the overall economy. But the government has done nothing to attract foreign currency but has only kept a stock of the currency.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He suggested the government adopt a policy to attract foreign investment and promote exports and tourism as well as encourage remittance inflow that in turn will earn foreign currency.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">According to Adhikari, the government must immediately announce a promotional package to bring the remittance into the country through formal channels.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Remittance is a good source of earning foreign currency. However, inflow of remittance has declined in recent period. It is said that the remittance is sent through informal channels. Therefore, the government must encourage to bring remittance through formal channels,” he added.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He is of the view that foreign currency can be earned if the expenditure of the projects run with foreign aid is increased.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Nepal’s economy was in grey zone but it has already entered the yellow zone now and will drift towards the red zone if immediate measures are not taken,” said Adhikari.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Stakeholders of the private sector have expressed their willingness to help resolve the current crisis. They say that they are ready to seek a solution in collaboration with the government.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">President of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Shekhar Golchha says that the private sector is ready to go for any extent to help the government resolve this crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“This is the time of crisis. We won’t consider profit and loss during such times. We are ready to rise above our business and cooperate with the government,” said Golchha, adding, “But the government must take the private sector in confidence, which is yet to happen.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the government has held discussion with the private sector in this regard but hasn’t taken any policy-level decision.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the latest move of the government is not helpful in solving the crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The government has not taken adequate measures to resolve the problem. It has just warded off immediate crisis. It is necessary to involve the private sector to seek a solution to the problem,” added Golchha.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He said that problems have surfaced due to the measures taken by the government to discourage imports all of a sudden.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“It was necessary to take such steps considering the current situation. But it has created additional problems. It is time to rethink if this is a long-term solution or not.”</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-08', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14812', 'image' => '20220408055208_economic crisis.jpg', 'article_date' => '2022-04-08 17:51:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15061', 'article_category_id' => '274', 'title' => 'Nepal’s Economy in Critical Situation: ADB Report', 'sub_title' => '', 'summary' => 'April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation. The Asian Development Outlook 2022, released by the ADB on Wednesday, states that the economy is becoming problematic due to the fluctuations in the world market and the failure of the state to adopt the right policy in time. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the ADB, the global economic recession caused by the Ukraine-Russia tensions, stagnant trade, rise in prices of crude oil and other commodities have put pressure on inflation. It also warned that the country would face challenge in maintaining the balance of payments and foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“The slow expansion of developed economies due to Russia-Ukraine tensions, stagnant trade flows and rising prices of oil and other commodities could put further pressure on Nepal's balance of payments and foreign exchange reserves,” said Arnaud Cauchois, ADB's Country Director for Nepal. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In 2021, Nepal's economic growth rate was 3.2 percent. The ADB has projected 3.9 percent growth for 2022. The government had expected the Gross Domestic Product (GDP) growth rate to be 7 percent in the current fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB views the growing trade deficit as a long-term challenge to Nepal’s economy. The ADB report expressed concern that rising imports but lower exports could lead to structural problems. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the report, the problem seems to be rising as Nepal's trade deficit is increasing but the resources to cover such deficit are not expanding in the same proportion. As per the ADB, the government's efforts to reduce costs and increase competition through trade policies and various laws to address this problem have had little effect. The ADB states that despite various multilateral and bilateral initiatives to increase exports, the results have not been encouraging. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Even though Nepal's production is good, it has not been able to export due to lack of capital, technology and skills required for it. Nepali products have not been able to enter the world market as the country does not even have a simple laboratory,” said the report. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB report also pointed out that Nepal has also been unable to utilize the concessions offered by some rich countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">After the 2015 earthquake, the United States decided to give concessional access to Nepal's products such as carpets and pashmina. However, the ADB report says that Nepali products have not yet been able to reap the benefits due to the failure to meet the required quality standards for entry into the US market. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB states that although Nepal can benefit by doing significant work in the field of information technology and tourism, this is not the case. Despite the policy formulation, the result is not seen due to the lack of implementation and continuity.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Paddy production was expected to be good due to favorable rains. However, unseasonal rains and floods in October damaged crops. This has reduced paddy production by 9 percent, according to ADB. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Based on consumer and investment demand, the industry is expected to grow by 4.1 percent this year. Wholesale and retail trade, transportation and financial services are expected to grow by 5.2 percent due to normal conditions. ADB expects the tourism sector, which had a negative impact in 2021, to improve from this year. Furthermore, the ADB considers the continuation of the vaccination campaign against the pandemic and the gradual normalization of economic activity to be positive. </span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-07', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14803', 'image' => '20220407021459_ADB.jpeg', 'article_date' => '2022-04-07 14:12:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ) ) $current_user = null $logged_in = falseinclude - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity "" [APP/View/Elements/side_bar.ctp, line 60]file not found!Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/indexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ), (int) 2 => array( 'Article' => array( [maximum depth reached] ) ), (int) 3 => array( 'Article' => array( [maximum depth reached] ) ), (int) 4 => array( 'Article' => array( [maximum depth reached] ) ), (int) 5 => array( 'Article' => array( [maximum depth reached] ) ), (int) 6 => array( 'Article' => array( [maximum depth reached] ) ), (int) 7 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '15097', 'article_category_id' => '274', 'title' => 'Consumer Price Inflation Rises to 7.14 Percent against 3.03 Percent a Year Ago', 'sub_title' => '', 'summary' => 'April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY 2021/22).', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY 2021/22), according the latest report of Nepal Rastra Bank (NRB). According to the central bank, the y-o-y consumer price inflation was 3.03 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by NRB on Wednesday states that food and beverage inflation stood at 7.51 percent whereas non-food and service inflation stood at 6.84 percent in the review month. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Under the food and beverage category, the prices of ghee and oil, vegetable, milk products and eggs, and pulses and legumes sub-categories rose by 26.34 percent, 13.96 percent, 11.30 and 10.30 percent respectively on y-o-y basis. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Likewise, under the non-food and services category, the prices of transportation, miscellaneous goods and services and education sub-categories rose by 16.27 percent, 9.01 percent and 8.79 percent respectively on y-o-y basis.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14839', 'image' => '20220413040620_Inflation.jpg', 'article_date' => '2022-04-13 16:05:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '15088', 'article_category_id' => '274', 'title' => 'Speaker Sapkota Pitches for Self-Reliant Economy ', 'sub_title' => '', 'summary' => 'April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. ', 'content' => '<p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"Several problems have arised as the economy is not self-reliant," he said and stressed on the need of meaningful cooperation and partnership between the government and the private sector for building a self-sufficient and robust economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Speaker Sapkota made such remarks while addressing the 56th annual general meeting and 'Industry and Commerce Day' of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Monday. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the private sector has knowledge, skills, talent and capacity, everything, he urged the private sector to play a role to bail out the economy from the current state of crisis.</span></span></span></p> <p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">He added that he was ready to fulfill his responsibility as the Speaker in building an environment conducive for business and investment in the country. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The government and the private sector should have common views on matters relating to the economy. We should work with long-term vision and not get bogged down in short-term agendas," he suggested. The Speaker also underscored on steering the country ahead on the path of prosperity by utilizing the private sector's capabilities. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">FNCCI president Shekhar Golchha blamed lack of transparency and the confusion around the short-term policies for the crisis faced by the economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Referring to the economic crisis Sri Lanka is passing through at present and the concerns being expressed by economists and the business community in the country that whether Nepal is also heading to a similar situation, the FNCCI president said, "We are not going to be like Sri Lanka, but if we are not cautious at present then we will certainly reach to that situation." </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">As ways to avert such crisis, he suggested strengthening the mechanism for bringing in money, creating investment opportunities within the country and increasing exports to create wealth. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that it was regrettable that the private sector which occupies 77 per cent of the economy and creates over 75 per cent employment in the country is in the dark about the discussions and decisions taking place in Singha Durbar (the administrative centre of the government) and Nepal Rastra Bank (the central bank of Nepal), Golchha stressed that it would be far better if the industrialists and businessmen were consulted regarding identification of the problems in the economy and finding out solution to these pressing problems. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Chief Secretary Shanker Das Bairagi refuted Golchha’s claim saying, "The government has never ignored the private sector, rather it considers the private sector as its partner." He described the private sector as the integral development partner of the government and the government was always for a meaningful partnership with the private sector. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The economic situation is not as bad as it is said to be. There are some signs of risk. We should all, together, address this problem," he added. The chief secretary said the government is doing homework for creating investment-friendly environment. --RSS</span></span></span><br /> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14830', 'image' => '20220412015715_1649681723.jpg', 'article_date' => '2022-04-12 13:56:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15087', 'article_category_id' => '274', 'title' => 'Do not Politicize Economy: Finance Minister', 'sub_title' => '', 'summary' => 'April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Bijay Damase</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Following criticism for the deteriorating economy of the country, Finance Minister Sharma organized a press conference on Monday and claimed that the economy was heading on the right track. He added that the issue was being politicized unnecessarily.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The country’s economy is not under crisis but attempts are being made to politicize the issue,” said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He also said comparing Nepal’s economy to Sri Lanka was tantamount to treason. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“There are rumors that the government does not have budget to hold election and to provide elderly allowance. In fact, there isn’t any such problem,” Minister Sharma assured.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“People are spreading fake news that Nepal will become like Sri Lanka. Such a situation will not arrive as we still have Rs 67 billion in state coffers,” he added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to Minister Sharma, Nepal’s foreign exchange reserves stood at Rs 1171 billion as of mid-March 2022 and is enough to support imports for 6.7 months. He further said that Nepal’s total foreign debt amounted to Rs 1800 billion. According to the minister, the government has to pay only Rs 40 billion as installment and interest and therefore Nepal’s situation cannot be compared with Sri Lanka from any angle. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The minister further said that although the inflow of remittance has declined to some extent compared to last year, it is expected to grow in the coming days. According to the figures of the finance ministry, the inflow of remittance as of mid-March in the current fiscal year was Rs 631 billion, which is 4.9 percent less compared to that of last year. The inflow of remittance in the month of Falgun (mid-February to mid-March) was Rs 91 billion. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Investigation against NRB Governor</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma clarified that the investigation against NRB Governor Maha Prasad Adhikari is being done in compliance with the laws and the Rastra Bank Act. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A probe committee was formed to look into the matter and further decisions would be taken upon the recommendation of the report prepared by the probe committee, said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A meeting of the Council of Ministers on Thursday (April 7) had decided to investigative into the alleged role of Governor Adhikari in leaking sensitive information of NRB. The Cabinet meeting has formed a committee under the coordination of former Supreme Court Justice Purushottam Bhandari to investigate the matter. The committee has been asked to submit its report within a month.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>NRB policy to blame for current crisis</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the current crisis was a result of the credit flow policy adopted by the central bank. He claimed that the problem has surfaced due to the excessive flow of loan. The finance minister added that he had instructed the governor to limit the flow of credit but to no avail.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The target of credit flow was 19 percent but the actual credit flow was 32 percent,” said Minister Sharma, adding, “Shouldn’t it have been resolved on time? It is the responsibility of the central bank not the finance ministry.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He said that the excessive flow of loan should have helped the productive sector but that did not happen due to lack of coordination. The minister said that he had time and again inquired with the central bank about the details of the credit flow but he did not get any response.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“Concessional loans were disbursed, but it was found to have been disbursed haphazardly. The probe committee will investigate this matter,” said Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Efforts being made to bring economy back on track</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the revenue collection was also exceeding the expectations. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In a bid to increase remittance inflow, Minister Sharma informed that a proposal seeking approval for setting up reserve fund for Nepali migrant workers abroad to invest has been forwarded. The draft of the proposal also has provisions to set aside quotas for IPO and FPO for people sending remittance through formal channels, allowing the remittance companies to use wallet and to reduce the cost of fuel used by government agencies. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Furthermore, he shared that a proposal had been made to temporarily ban the import of expensive and luxurious vehicles and not to allow the government vehicles to be used on public holidays. </span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14829', 'image' => '20220412010021_1649714045.jpg', 'article_date' => '2022-04-12 12:59:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15086', 'article_category_id' => '274', 'title' => 'Liquidity Crisis is the Result of Central Bank’s Policy: Former NRB Governor', 'sub_title' => '', 'summary' => 'April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Speaking at the annual general meeting (AGM) of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) on Monday, the former governor said that the problem surfaced after the Covid-19 pandemic as the NRB was the only institution to provide support for post-Covid recovery when the government should also have done something.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Liquidity crisis has become a long-term problem in Nepal,” said the former governor, adding, “There was excessive flow of credit after the pandemic subsided, causing the crisis. We identified exportable products but couldn’t export them. On the other hand, import of food items has increased excessively.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also accused the government of failing to spend capital budget and urged the concerned authorities to send the money to the banking system.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Former Governor Nepal was of the view that remittance cannot be a source for sustainable economic development and therefore the time has come for the government to explore other alternatives.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also clarified that Nepal’s situation cannot be compared to Sri Lanka. According to him, Nepal hasn’t taken loan at exorbitant rate like Sri Lanka.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14828', 'image' => '20220412120246_1649684023.jpg', 'article_date' => '2022-04-12 12:01:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15085', 'article_category_id' => '274', 'title' => 'Nepal’s Public Debt Lowest in South Asia: Finance Secretary', 'sub_title' => '', 'summary' => 'April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The finance secretary made such revelation during a press conference organized at the Ministry of Finance on Monday.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Marasini said that there is widespread concern regarding the country’s public debt but the situation is not so serious and there is no need to worry about this issue. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Lately, people have expressed a lot of concern regarding Nepal’s public debt, but our public debt is one of the lowest in South Asia,” said Marasini. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the finance ministry, Nepal’s public debt as of April 11, 2022 is Rs 1854 billion, including internal loans of Rs 873.19 billion and external loan of Rs 980.80 billion.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal’s public debt is 43.74 percent of the country’s Gross Domestic Product (GDP).</span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14827', 'image' => '20220412112511_economictrends_3_0.jpg', 'article_date' => '2022-04-12 11:24:22', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15081', 'article_category_id' => '274', 'title' => 'Former Finance Ministers Draw Government's Attention to Economic Crisis ', 'sub_title' => '', 'summary' => 'April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Former Finance Ministers Bishnu Prasad Poudel, Surendra Pandey and Dr Yuba Raj Khatiwada drew the attention of the government by organizing a press conference on Sunday (April 10). On the occasion, they urged the government not to allow the country's economy to deteriorate. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">In a statement distributed to the media on the occasion, they stated that the external sector is facing crisis. Stating that imports have increased uncontrollably in the current fiscal year and reached around Rs 1500 billion in eight months, the former finance ministers warned that imports will reach Rs 2200 billion if the present situation continues.</span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">The former finance ministers opined that the growing import has not contributed to production except leading to increased consumption. In this backdrop, they urged the government to think about the economic health of the country before it is too late. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Noting that trade deficit has increased at present, the former finance ministers projected it to exceed Rs 2000 billion by the close of the current fiscal year if the present situation continues. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">They also objected to the government's decision to suspend Nepal Rastra Bank’s Governor Maha Prasad Adhikari. -- RSS </span></span></span></p> ', 'published' => true, 'created' => '2022-04-11', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14823', 'image' => '20220411110007_pro_ktm_umla.jpg', 'article_date' => '2022-04-11 10:59:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15070', 'article_category_id' => '274', 'title' => 'Nepal’s Economy Heading Towards Red Zone: Expert', 'sub_title' => 'Experts say Delayed Action of Government caused Current Economic Crisis', 'summary' => 'April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Milan Bishwakarma</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. The situation has worsened when the economy battered by the impact of Covid-19 for 2 years was gradually clawing back to normalcy.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The economy has been pushed to the brink due to various factors including liquidity crunch in the banking system, inflation, energy scarcity, declining foreign exchange reserves among others.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">There were ominous signs since the beginning of the current fiscal year that the economy would undergo stress. The Current Macroeconomic and Financial Situation Report published by Nepal Rastra Bank every month had indicated that the economy was on the verge of crisis. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The Balance of Payments (BoP) was in deficit while the foreign exchange reserves were declining since mid-July. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Besides, trade deficit was increasing and remittance inflow was declining. Banks were struggling to manage investible capital since the start of the current fiscal year. Experts say that the economy is already in crisis because the concerned authorities did not take proper measures to address those problems in time. They argue that the economy has been further troubled by the energy crisis and hike in fuel prices of late. They suggested that the government must take measures to ensure that the foreign exchange reserves get replenished. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Foreign exchange reserves are vital indicator of the economy. The economic situation depends on the volume of foreign exchange reserves. Foreign currency is needed for importing goods and services. It is not possible to import goods and services in lack of foreign exchange reserves. Lately, the economy is in crisis mainly because of the decline in foreign exchange reserves.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Economist Dr Chandra Mani Adhikari suggests that the government must take immediate steps to effectively mobilize the foreign exchange reserves to resolve the current crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The main crisis faced by the economy at present is the declining foreign exchange reserves,” says Adhikari, adding, “It affects the overall economy. But the government has done nothing to attract foreign currency but has only kept a stock of the currency.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He suggested the government adopt a policy to attract foreign investment and promote exports and tourism as well as encourage remittance inflow that in turn will earn foreign currency.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">According to Adhikari, the government must immediately announce a promotional package to bring the remittance into the country through formal channels.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Remittance is a good source of earning foreign currency. However, inflow of remittance has declined in recent period. It is said that the remittance is sent through informal channels. Therefore, the government must encourage to bring remittance through formal channels,” he added.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He is of the view that foreign currency can be earned if the expenditure of the projects run with foreign aid is increased.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Nepal’s economy was in grey zone but it has already entered the yellow zone now and will drift towards the red zone if immediate measures are not taken,” said Adhikari.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Stakeholders of the private sector have expressed their willingness to help resolve the current crisis. They say that they are ready to seek a solution in collaboration with the government.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">President of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Shekhar Golchha says that the private sector is ready to go for any extent to help the government resolve this crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“This is the time of crisis. We won’t consider profit and loss during such times. We are ready to rise above our business and cooperate with the government,” said Golchha, adding, “But the government must take the private sector in confidence, which is yet to happen.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the government has held discussion with the private sector in this regard but hasn’t taken any policy-level decision.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the latest move of the government is not helpful in solving the crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The government has not taken adequate measures to resolve the problem. It has just warded off immediate crisis. It is necessary to involve the private sector to seek a solution to the problem,” added Golchha.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He said that problems have surfaced due to the measures taken by the government to discourage imports all of a sudden.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“It was necessary to take such steps considering the current situation. But it has created additional problems. It is time to rethink if this is a long-term solution or not.”</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-08', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14812', 'image' => '20220408055208_economic crisis.jpg', 'article_date' => '2022-04-08 17:51:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15061', 'article_category_id' => '274', 'title' => 'Nepal’s Economy in Critical Situation: ADB Report', 'sub_title' => '', 'summary' => 'April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation. The Asian Development Outlook 2022, released by the ADB on Wednesday, states that the economy is becoming problematic due to the fluctuations in the world market and the failure of the state to adopt the right policy in time. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the ADB, the global economic recession caused by the Ukraine-Russia tensions, stagnant trade, rise in prices of crude oil and other commodities have put pressure on inflation. It also warned that the country would face challenge in maintaining the balance of payments and foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“The slow expansion of developed economies due to Russia-Ukraine tensions, stagnant trade flows and rising prices of oil and other commodities could put further pressure on Nepal's balance of payments and foreign exchange reserves,” said Arnaud Cauchois, ADB's Country Director for Nepal. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In 2021, Nepal's economic growth rate was 3.2 percent. The ADB has projected 3.9 percent growth for 2022. The government had expected the Gross Domestic Product (GDP) growth rate to be 7 percent in the current fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB views the growing trade deficit as a long-term challenge to Nepal’s economy. The ADB report expressed concern that rising imports but lower exports could lead to structural problems. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the report, the problem seems to be rising as Nepal's trade deficit is increasing but the resources to cover such deficit are not expanding in the same proportion. As per the ADB, the government's efforts to reduce costs and increase competition through trade policies and various laws to address this problem have had little effect. The ADB states that despite various multilateral and bilateral initiatives to increase exports, the results have not been encouraging. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Even though Nepal's production is good, it has not been able to export due to lack of capital, technology and skills required for it. Nepali products have not been able to enter the world market as the country does not even have a simple laboratory,” said the report. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB report also pointed out that Nepal has also been unable to utilize the concessions offered by some rich countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">After the 2015 earthquake, the United States decided to give concessional access to Nepal's products such as carpets and pashmina. However, the ADB report says that Nepali products have not yet been able to reap the benefits due to the failure to meet the required quality standards for entry into the US market. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB states that although Nepal can benefit by doing significant work in the field of information technology and tourism, this is not the case. Despite the policy formulation, the result is not seen due to the lack of implementation and continuity.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Paddy production was expected to be good due to favorable rains. However, unseasonal rains and floods in October damaged crops. This has reduced paddy production by 9 percent, according to ADB. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Based on consumer and investment demand, the industry is expected to grow by 4.1 percent this year. Wholesale and retail trade, transportation and financial services are expected to grow by 5.2 percent due to normal conditions. ADB expects the tourism sector, which had a negative impact in 2021, to improve from this year. Furthermore, the ADB considers the continuation of the vaccination campaign against the pandemic and the gradual normalization of economic activity to be positive. </span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-07', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14803', 'image' => '20220407021459_ADB.jpeg', 'article_date' => '2022-04-07 14:12:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ) ) $current_user = null $logged_in = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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According to the central bank, the y-o-y consumer price inflation was 3.03 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by NRB on Wednesday states that food and beverage inflation stood at 7.51 percent whereas non-food and service inflation stood at 6.84 percent in the review month. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Under the food and beverage category, the prices of ghee and oil, vegetable, milk products and eggs, and pulses and legumes sub-categories rose by 26.34 percent, 13.96 percent, 11.30 and 10.30 percent respectively on y-o-y basis. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Likewise, under the non-food and services category, the prices of transportation, miscellaneous goods and services and education sub-categories rose by 16.27 percent, 9.01 percent and 8.79 percent respectively on y-o-y basis.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14839', 'image' => '20220413040620_Inflation.jpg', 'article_date' => '2022-04-13 16:05:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '15088', 'article_category_id' => '274', 'title' => 'Speaker Sapkota Pitches for Self-Reliant Economy ', 'sub_title' => '', 'summary' => 'April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. ', 'content' => '<p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"Several problems have arised as the economy is not self-reliant," he said and stressed on the need of meaningful cooperation and partnership between the government and the private sector for building a self-sufficient and robust economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Speaker Sapkota made such remarks while addressing the 56th annual general meeting and 'Industry and Commerce Day' of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Monday. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the private sector has knowledge, skills, talent and capacity, everything, he urged the private sector to play a role to bail out the economy from the current state of crisis.</span></span></span></p> <p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">He added that he was ready to fulfill his responsibility as the Speaker in building an environment conducive for business and investment in the country. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The government and the private sector should have common views on matters relating to the economy. We should work with long-term vision and not get bogged down in short-term agendas," he suggested. The Speaker also underscored on steering the country ahead on the path of prosperity by utilizing the private sector's capabilities. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">FNCCI president Shekhar Golchha blamed lack of transparency and the confusion around the short-term policies for the crisis faced by the economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Referring to the economic crisis Sri Lanka is passing through at present and the concerns being expressed by economists and the business community in the country that whether Nepal is also heading to a similar situation, the FNCCI president said, "We are not going to be like Sri Lanka, but if we are not cautious at present then we will certainly reach to that situation." </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">As ways to avert such crisis, he suggested strengthening the mechanism for bringing in money, creating investment opportunities within the country and increasing exports to create wealth. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that it was regrettable that the private sector which occupies 77 per cent of the economy and creates over 75 per cent employment in the country is in the dark about the discussions and decisions taking place in Singha Durbar (the administrative centre of the government) and Nepal Rastra Bank (the central bank of Nepal), Golchha stressed that it would be far better if the industrialists and businessmen were consulted regarding identification of the problems in the economy and finding out solution to these pressing problems. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Chief Secretary Shanker Das Bairagi refuted Golchha’s claim saying, "The government has never ignored the private sector, rather it considers the private sector as its partner." He described the private sector as the integral development partner of the government and the government was always for a meaningful partnership with the private sector. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The economic situation is not as bad as it is said to be. There are some signs of risk. We should all, together, address this problem," he added. The chief secretary said the government is doing homework for creating investment-friendly environment. --RSS</span></span></span><br /> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14830', 'image' => '20220412015715_1649681723.jpg', 'article_date' => '2022-04-12 13:56:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15087', 'article_category_id' => '274', 'title' => 'Do not Politicize Economy: Finance Minister', 'sub_title' => '', 'summary' => 'April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Bijay Damase</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Following criticism for the deteriorating economy of the country, Finance Minister Sharma organized a press conference on Monday and claimed that the economy was heading on the right track. He added that the issue was being politicized unnecessarily.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The country’s economy is not under crisis but attempts are being made to politicize the issue,” said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He also said comparing Nepal’s economy to Sri Lanka was tantamount to treason. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“There are rumors that the government does not have budget to hold election and to provide elderly allowance. In fact, there isn’t any such problem,” Minister Sharma assured.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“People are spreading fake news that Nepal will become like Sri Lanka. Such a situation will not arrive as we still have Rs 67 billion in state coffers,” he added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to Minister Sharma, Nepal’s foreign exchange reserves stood at Rs 1171 billion as of mid-March 2022 and is enough to support imports for 6.7 months. He further said that Nepal’s total foreign debt amounted to Rs 1800 billion. According to the minister, the government has to pay only Rs 40 billion as installment and interest and therefore Nepal’s situation cannot be compared with Sri Lanka from any angle. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The minister further said that although the inflow of remittance has declined to some extent compared to last year, it is expected to grow in the coming days. According to the figures of the finance ministry, the inflow of remittance as of mid-March in the current fiscal year was Rs 631 billion, which is 4.9 percent less compared to that of last year. The inflow of remittance in the month of Falgun (mid-February to mid-March) was Rs 91 billion. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Investigation against NRB Governor</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma clarified that the investigation against NRB Governor Maha Prasad Adhikari is being done in compliance with the laws and the Rastra Bank Act. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A probe committee was formed to look into the matter and further decisions would be taken upon the recommendation of the report prepared by the probe committee, said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A meeting of the Council of Ministers on Thursday (April 7) had decided to investigative into the alleged role of Governor Adhikari in leaking sensitive information of NRB. The Cabinet meeting has formed a committee under the coordination of former Supreme Court Justice Purushottam Bhandari to investigate the matter. The committee has been asked to submit its report within a month.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>NRB policy to blame for current crisis</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the current crisis was a result of the credit flow policy adopted by the central bank. He claimed that the problem has surfaced due to the excessive flow of loan. The finance minister added that he had instructed the governor to limit the flow of credit but to no avail.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The target of credit flow was 19 percent but the actual credit flow was 32 percent,” said Minister Sharma, adding, “Shouldn’t it have been resolved on time? It is the responsibility of the central bank not the finance ministry.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He said that the excessive flow of loan should have helped the productive sector but that did not happen due to lack of coordination. The minister said that he had time and again inquired with the central bank about the details of the credit flow but he did not get any response.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“Concessional loans were disbursed, but it was found to have been disbursed haphazardly. The probe committee will investigate this matter,” said Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Efforts being made to bring economy back on track</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the revenue collection was also exceeding the expectations. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In a bid to increase remittance inflow, Minister Sharma informed that a proposal seeking approval for setting up reserve fund for Nepali migrant workers abroad to invest has been forwarded. The draft of the proposal also has provisions to set aside quotas for IPO and FPO for people sending remittance through formal channels, allowing the remittance companies to use wallet and to reduce the cost of fuel used by government agencies. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Furthermore, he shared that a proposal had been made to temporarily ban the import of expensive and luxurious vehicles and not to allow the government vehicles to be used on public holidays. </span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14829', 'image' => '20220412010021_1649714045.jpg', 'article_date' => '2022-04-12 12:59:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15086', 'article_category_id' => '274', 'title' => 'Liquidity Crisis is the Result of Central Bank’s Policy: Former NRB Governor', 'sub_title' => '', 'summary' => 'April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Speaking at the annual general meeting (AGM) of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) on Monday, the former governor said that the problem surfaced after the Covid-19 pandemic as the NRB was the only institution to provide support for post-Covid recovery when the government should also have done something.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Liquidity crisis has become a long-term problem in Nepal,” said the former governor, adding, “There was excessive flow of credit after the pandemic subsided, causing the crisis. We identified exportable products but couldn’t export them. On the other hand, import of food items has increased excessively.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also accused the government of failing to spend capital budget and urged the concerned authorities to send the money to the banking system.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Former Governor Nepal was of the view that remittance cannot be a source for sustainable economic development and therefore the time has come for the government to explore other alternatives.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also clarified that Nepal’s situation cannot be compared to Sri Lanka. According to him, Nepal hasn’t taken loan at exorbitant rate like Sri Lanka.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14828', 'image' => '20220412120246_1649684023.jpg', 'article_date' => '2022-04-12 12:01:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15085', 'article_category_id' => '274', 'title' => 'Nepal’s Public Debt Lowest in South Asia: Finance Secretary', 'sub_title' => '', 'summary' => 'April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The finance secretary made such revelation during a press conference organized at the Ministry of Finance on Monday.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Marasini said that there is widespread concern regarding the country’s public debt but the situation is not so serious and there is no need to worry about this issue. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Lately, people have expressed a lot of concern regarding Nepal’s public debt, but our public debt is one of the lowest in South Asia,” said Marasini. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the finance ministry, Nepal’s public debt as of April 11, 2022 is Rs 1854 billion, including internal loans of Rs 873.19 billion and external loan of Rs 980.80 billion.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal’s public debt is 43.74 percent of the country’s Gross Domestic Product (GDP).</span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14827', 'image' => '20220412112511_economictrends_3_0.jpg', 'article_date' => '2022-04-12 11:24:22', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15081', 'article_category_id' => '274', 'title' => 'Former Finance Ministers Draw Government's Attention to Economic Crisis ', 'sub_title' => '', 'summary' => 'April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Former Finance Ministers Bishnu Prasad Poudel, Surendra Pandey and Dr Yuba Raj Khatiwada drew the attention of the government by organizing a press conference on Sunday (April 10). On the occasion, they urged the government not to allow the country's economy to deteriorate. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">In a statement distributed to the media on the occasion, they stated that the external sector is facing crisis. Stating that imports have increased uncontrollably in the current fiscal year and reached around Rs 1500 billion in eight months, the former finance ministers warned that imports will reach Rs 2200 billion if the present situation continues.</span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">The former finance ministers opined that the growing import has not contributed to production except leading to increased consumption. In this backdrop, they urged the government to think about the economic health of the country before it is too late. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Noting that trade deficit has increased at present, the former finance ministers projected it to exceed Rs 2000 billion by the close of the current fiscal year if the present situation continues. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">They also objected to the government's decision to suspend Nepal Rastra Bank’s Governor Maha Prasad Adhikari. -- RSS </span></span></span></p> ', 'published' => true, 'created' => '2022-04-11', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14823', 'image' => '20220411110007_pro_ktm_umla.jpg', 'article_date' => '2022-04-11 10:59:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15070', 'article_category_id' => '274', 'title' => 'Nepal’s Economy Heading Towards Red Zone: Expert', 'sub_title' => 'Experts say Delayed Action of Government caused Current Economic Crisis', 'summary' => 'April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Milan Bishwakarma</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. The situation has worsened when the economy battered by the impact of Covid-19 for 2 years was gradually clawing back to normalcy.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The economy has been pushed to the brink due to various factors including liquidity crunch in the banking system, inflation, energy scarcity, declining foreign exchange reserves among others.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">There were ominous signs since the beginning of the current fiscal year that the economy would undergo stress. The Current Macroeconomic and Financial Situation Report published by Nepal Rastra Bank every month had indicated that the economy was on the verge of crisis. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The Balance of Payments (BoP) was in deficit while the foreign exchange reserves were declining since mid-July. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Besides, trade deficit was increasing and remittance inflow was declining. Banks were struggling to manage investible capital since the start of the current fiscal year. Experts say that the economy is already in crisis because the concerned authorities did not take proper measures to address those problems in time. They argue that the economy has been further troubled by the energy crisis and hike in fuel prices of late. They suggested that the government must take measures to ensure that the foreign exchange reserves get replenished. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Foreign exchange reserves are vital indicator of the economy. The economic situation depends on the volume of foreign exchange reserves. Foreign currency is needed for importing goods and services. It is not possible to import goods and services in lack of foreign exchange reserves. Lately, the economy is in crisis mainly because of the decline in foreign exchange reserves.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Economist Dr Chandra Mani Adhikari suggests that the government must take immediate steps to effectively mobilize the foreign exchange reserves to resolve the current crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The main crisis faced by the economy at present is the declining foreign exchange reserves,” says Adhikari, adding, “It affects the overall economy. But the government has done nothing to attract foreign currency but has only kept a stock of the currency.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He suggested the government adopt a policy to attract foreign investment and promote exports and tourism as well as encourage remittance inflow that in turn will earn foreign currency.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">According to Adhikari, the government must immediately announce a promotional package to bring the remittance into the country through formal channels.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Remittance is a good source of earning foreign currency. However, inflow of remittance has declined in recent period. It is said that the remittance is sent through informal channels. Therefore, the government must encourage to bring remittance through formal channels,” he added.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He is of the view that foreign currency can be earned if the expenditure of the projects run with foreign aid is increased.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Nepal’s economy was in grey zone but it has already entered the yellow zone now and will drift towards the red zone if immediate measures are not taken,” said Adhikari.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Stakeholders of the private sector have expressed their willingness to help resolve the current crisis. They say that they are ready to seek a solution in collaboration with the government.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">President of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Shekhar Golchha says that the private sector is ready to go for any extent to help the government resolve this crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“This is the time of crisis. We won’t consider profit and loss during such times. We are ready to rise above our business and cooperate with the government,” said Golchha, adding, “But the government must take the private sector in confidence, which is yet to happen.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the government has held discussion with the private sector in this regard but hasn’t taken any policy-level decision.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the latest move of the government is not helpful in solving the crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The government has not taken adequate measures to resolve the problem. It has just warded off immediate crisis. It is necessary to involve the private sector to seek a solution to the problem,” added Golchha.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He said that problems have surfaced due to the measures taken by the government to discourage imports all of a sudden.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“It was necessary to take such steps considering the current situation. But it has created additional problems. It is time to rethink if this is a long-term solution or not.”</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-08', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14812', 'image' => '20220408055208_economic crisis.jpg', 'article_date' => '2022-04-08 17:51:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15061', 'article_category_id' => '274', 'title' => 'Nepal’s Economy in Critical Situation: ADB Report', 'sub_title' => '', 'summary' => 'April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation. The Asian Development Outlook 2022, released by the ADB on Wednesday, states that the economy is becoming problematic due to the fluctuations in the world market and the failure of the state to adopt the right policy in time. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the ADB, the global economic recession caused by the Ukraine-Russia tensions, stagnant trade, rise in prices of crude oil and other commodities have put pressure on inflation. It also warned that the country would face challenge in maintaining the balance of payments and foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“The slow expansion of developed economies due to Russia-Ukraine tensions, stagnant trade flows and rising prices of oil and other commodities could put further pressure on Nepal's balance of payments and foreign exchange reserves,” said Arnaud Cauchois, ADB's Country Director for Nepal. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In 2021, Nepal's economic growth rate was 3.2 percent. The ADB has projected 3.9 percent growth for 2022. The government had expected the Gross Domestic Product (GDP) growth rate to be 7 percent in the current fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB views the growing trade deficit as a long-term challenge to Nepal’s economy. The ADB report expressed concern that rising imports but lower exports could lead to structural problems. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the report, the problem seems to be rising as Nepal's trade deficit is increasing but the resources to cover such deficit are not expanding in the same proportion. As per the ADB, the government's efforts to reduce costs and increase competition through trade policies and various laws to address this problem have had little effect. The ADB states that despite various multilateral and bilateral initiatives to increase exports, the results have not been encouraging. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Even though Nepal's production is good, it has not been able to export due to lack of capital, technology and skills required for it. Nepali products have not been able to enter the world market as the country does not even have a simple laboratory,” said the report. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB report also pointed out that Nepal has also been unable to utilize the concessions offered by some rich countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">After the 2015 earthquake, the United States decided to give concessional access to Nepal's products such as carpets and pashmina. However, the ADB report says that Nepali products have not yet been able to reap the benefits due to the failure to meet the required quality standards for entry into the US market. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB states that although Nepal can benefit by doing significant work in the field of information technology and tourism, this is not the case. Despite the policy formulation, the result is not seen due to the lack of implementation and continuity.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Paddy production was expected to be good due to favorable rains. However, unseasonal rains and floods in October damaged crops. This has reduced paddy production by 9 percent, according to ADB. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Based on consumer and investment demand, the industry is expected to grow by 4.1 percent this year. Wholesale and retail trade, transportation and financial services are expected to grow by 5.2 percent due to normal conditions. ADB expects the tourism sector, which had a negative impact in 2021, to improve from this year. Furthermore, the ADB considers the continuation of the vaccination campaign against the pandemic and the gradual normalization of economic activity to be positive. </span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-07', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14803', 'image' => '20220407021459_ADB.jpeg', 'article_date' => '2022-04-07 14:12:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ) ) $current_user = null $logged_in = false $xml = falseinclude - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity "" [APP/View/Elements/side_bar.ctp, line 133]file not found!Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/subindexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ), (int) 2 => array( 'Article' => array( [maximum depth reached] ) ), (int) 3 => array( 'Article' => array( [maximum depth reached] ) ), (int) 4 => array( 'Article' => array( [maximum depth reached] ) ), (int) 5 => array( 'Article' => array( [maximum depth reached] ) ), (int) 6 => array( 'Article' => array( [maximum depth reached] ) ), (int) 7 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '15097', 'article_category_id' => '274', 'title' => 'Consumer Price Inflation Rises to 7.14 Percent against 3.03 Percent a Year Ago', 'sub_title' => '', 'summary' => 'April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY 2021/22).', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: The year-on-year consumer price inflation in Nepal stood at 7.14 percent in the eighth month of the current fiscal year (FY 2021/22), according the latest report of Nepal Rastra Bank (NRB). According to the central bank, the y-o-y consumer price inflation was 3.03 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by NRB on Wednesday states that food and beverage inflation stood at 7.51 percent whereas non-food and service inflation stood at 6.84 percent in the review month. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Under the food and beverage category, the prices of ghee and oil, vegetable, milk products and eggs, and pulses and legumes sub-categories rose by 26.34 percent, 13.96 percent, 11.30 and 10.30 percent respectively on y-o-y basis. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Likewise, under the non-food and services category, the prices of transportation, miscellaneous goods and services and education sub-categories rose by 16.27 percent, 9.01 percent and 8.79 percent respectively on y-o-y basis.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14839', 'image' => '20220413040620_Inflation.jpg', 'article_date' => '2022-04-13 16:05:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '15088', 'article_category_id' => '274', 'title' => 'Speaker Sapkota Pitches for Self-Reliant Economy ', 'sub_title' => '', 'summary' => 'April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. ', 'content' => '<p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 12: Speaker of the House of Representatives, Agni Prasad Sapkota, has called upon the private sector to focus on development and expansion of a self-reliant economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"Several problems have arised as the economy is not self-reliant," he said and stressed on the need of meaningful cooperation and partnership between the government and the private sector for building a self-sufficient and robust economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Speaker Sapkota made such remarks while addressing the 56th annual general meeting and 'Industry and Commerce Day' of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Monday. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the private sector has knowledge, skills, talent and capacity, everything, he urged the private sector to play a role to bail out the economy from the current state of crisis.</span></span></span></p> <p><span style="font-size:16px"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">He added that he was ready to fulfill his responsibility as the Speaker in building an environment conducive for business and investment in the country. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The government and the private sector should have common views on matters relating to the economy. We should work with long-term vision and not get bogged down in short-term agendas," he suggested. The Speaker also underscored on steering the country ahead on the path of prosperity by utilizing the private sector's capabilities. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">FNCCI president Shekhar Golchha blamed lack of transparency and the confusion around the short-term policies for the crisis faced by the economy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Referring to the economic crisis Sri Lanka is passing through at present and the concerns being expressed by economists and the business community in the country that whether Nepal is also heading to a similar situation, the FNCCI president said, "We are not going to be like Sri Lanka, but if we are not cautious at present then we will certainly reach to that situation." </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">As ways to avert such crisis, he suggested strengthening the mechanism for bringing in money, creating investment opportunities within the country and increasing exports to create wealth. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that it was regrettable that the private sector which occupies 77 per cent of the economy and creates over 75 per cent employment in the country is in the dark about the discussions and decisions taking place in Singha Durbar (the administrative centre of the government) and Nepal Rastra Bank (the central bank of Nepal), Golchha stressed that it would be far better if the industrialists and businessmen were consulted regarding identification of the problems in the economy and finding out solution to these pressing problems. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Chief Secretary Shanker Das Bairagi refuted Golchha’s claim saying, "The government has never ignored the private sector, rather it considers the private sector as its partner." He described the private sector as the integral development partner of the government and the government was always for a meaningful partnership with the private sector. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">"The economic situation is not as bad as it is said to be. There are some signs of risk. We should all, together, address this problem," he added. The chief secretary said the government is doing homework for creating investment-friendly environment. --RSS</span></span></span><br /> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14830', 'image' => '20220412015715_1649681723.jpg', 'article_date' => '2022-04-12 13:56:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15087', 'article_category_id' => '274', 'title' => 'Do not Politicize Economy: Finance Minister', 'sub_title' => '', 'summary' => 'April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Bijay Damase</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 12: Finance Minister Janardan Sharma has dismissed claims that the country’s economy was in crisis and urged one and all not to politicize the issue.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Following criticism for the deteriorating economy of the country, Finance Minister Sharma organized a press conference on Monday and claimed that the economy was heading on the right track. He added that the issue was being politicized unnecessarily.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The country’s economy is not under crisis but attempts are being made to politicize the issue,” said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He also said comparing Nepal’s economy to Sri Lanka was tantamount to treason. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“There are rumors that the government does not have budget to hold election and to provide elderly allowance. In fact, there isn’t any such problem,” Minister Sharma assured.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“People are spreading fake news that Nepal will become like Sri Lanka. Such a situation will not arrive as we still have Rs 67 billion in state coffers,” he added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to Minister Sharma, Nepal’s foreign exchange reserves stood at Rs 1171 billion as of mid-March 2022 and is enough to support imports for 6.7 months. He further said that Nepal’s total foreign debt amounted to Rs 1800 billion. According to the minister, the government has to pay only Rs 40 billion as installment and interest and therefore Nepal’s situation cannot be compared with Sri Lanka from any angle. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The minister further said that although the inflow of remittance has declined to some extent compared to last year, it is expected to grow in the coming days. According to the figures of the finance ministry, the inflow of remittance as of mid-March in the current fiscal year was Rs 631 billion, which is 4.9 percent less compared to that of last year. The inflow of remittance in the month of Falgun (mid-February to mid-March) was Rs 91 billion. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Investigation against NRB Governor</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma clarified that the investigation against NRB Governor Maha Prasad Adhikari is being done in compliance with the laws and the Rastra Bank Act. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A probe committee was formed to look into the matter and further decisions would be taken upon the recommendation of the report prepared by the probe committee, said Minister Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">A meeting of the Council of Ministers on Thursday (April 7) had decided to investigative into the alleged role of Governor Adhikari in leaking sensitive information of NRB. The Cabinet meeting has formed a committee under the coordination of former Supreme Court Justice Purushottam Bhandari to investigate the matter. The committee has been asked to submit its report within a month.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>NRB policy to blame for current crisis</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the current crisis was a result of the credit flow policy adopted by the central bank. He claimed that the problem has surfaced due to the excessive flow of loan. The finance minister added that he had instructed the governor to limit the flow of credit but to no avail.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The target of credit flow was 19 percent but the actual credit flow was 32 percent,” said Minister Sharma, adding, “Shouldn’t it have been resolved on time? It is the responsibility of the central bank not the finance ministry.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">He said that the excessive flow of loan should have helped the productive sector but that did not happen due to lack of coordination. The minister said that he had time and again inquired with the central bank about the details of the credit flow but he did not get any response.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“Concessional loans were disbursed, but it was found to have been disbursed haphazardly. The probe committee will investigate this matter,” said Sharma.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif""><strong>Efforts being made to bring economy back on track</strong></span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Finance Minister Sharma claimed that the revenue collection was also exceeding the expectations. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In a bid to increase remittance inflow, Minister Sharma informed that a proposal seeking approval for setting up reserve fund for Nepali migrant workers abroad to invest has been forwarded. The draft of the proposal also has provisions to set aside quotas for IPO and FPO for people sending remittance through formal channels, allowing the remittance companies to use wallet and to reduce the cost of fuel used by government agencies. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Furthermore, he shared that a proposal had been made to temporarily ban the import of expensive and luxurious vehicles and not to allow the government vehicles to be used on public holidays. </span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14829', 'image' => '20220412010021_1649714045.jpg', 'article_date' => '2022-04-12 12:59:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15086', 'article_category_id' => '274', 'title' => 'Liquidity Crisis is the Result of Central Bank’s Policy: Former NRB Governor', 'sub_title' => '', 'summary' => 'April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Former governor of Nepal Rastra Bank (NRB) Dr Chiranjivi Nepal has pointed to the policy adopted by the central bank as the main reason for liquidity crisis in the country.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Speaking at the annual general meeting (AGM) of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) on Monday, the former governor said that the problem surfaced after the Covid-19 pandemic as the NRB was the only institution to provide support for post-Covid recovery when the government should also have done something.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Liquidity crisis has become a long-term problem in Nepal,” said the former governor, adding, “There was excessive flow of credit after the pandemic subsided, causing the crisis. We identified exportable products but couldn’t export them. On the other hand, import of food items has increased excessively.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also accused the government of failing to spend capital budget and urged the concerned authorities to send the money to the banking system.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Former Governor Nepal was of the view that remittance cannot be a source for sustainable economic development and therefore the time has come for the government to explore other alternatives.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">He also clarified that Nepal’s situation cannot be compared to Sri Lanka. According to him, Nepal hasn’t taken loan at exorbitant rate like Sri Lanka.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14828', 'image' => '20220412120246_1649684023.jpg', 'article_date' => '2022-04-12 12:01:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15085', 'article_category_id' => '274', 'title' => 'Nepal’s Public Debt Lowest in South Asia: Finance Secretary', 'sub_title' => '', 'summary' => 'April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">April 12: Finance Secretary Madhu Kumar Marasini claims that Nepal’s public debt is one of the lowest among South Asian countries.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The finance secretary made such revelation during a press conference organized at the Ministry of Finance on Monday.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Marasini said that there is widespread concern regarding the country’s public debt but the situation is not so serious and there is no need to worry about this issue. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">“Lately, people have expressed a lot of concern regarding Nepal’s public debt, but our public debt is one of the lowest in South Asia,” said Marasini. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the finance ministry, Nepal’s public debt as of April 11, 2022 is Rs 1854 billion, including internal loans of Rs 873.19 billion and external loan of Rs 980.80 billion.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal’s public debt is 43.74 percent of the country’s Gross Domestic Product (GDP).</span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-12', 'modified' => '2022-04-12', 'keywords' => '', 'description' => '', 'sortorder' => '14827', 'image' => '20220412112511_economictrends_3_0.jpg', 'article_date' => '2022-04-12 11:24:22', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15081', 'article_category_id' => '274', 'title' => 'Former Finance Ministers Draw Government's Attention to Economic Crisis ', 'sub_title' => '', 'summary' => 'April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 11: Three former Finance Ministers have drawn the attention of the government to focus to economic stability, development and good governance. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Former Finance Ministers Bishnu Prasad Poudel, Surendra Pandey and Dr Yuba Raj Khatiwada drew the attention of the government by organizing a press conference on Sunday (April 10). On the occasion, they urged the government not to allow the country's economy to deteriorate. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">In a statement distributed to the media on the occasion, they stated that the external sector is facing crisis. Stating that imports have increased uncontrollably in the current fiscal year and reached around Rs 1500 billion in eight months, the former finance ministers warned that imports will reach Rs 2200 billion if the present situation continues.</span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">The former finance ministers opined that the growing import has not contributed to production except leading to increased consumption. In this backdrop, they urged the government to think about the economic health of the country before it is too late. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Noting that trade deficit has increased at present, the former finance ministers projected it to exceed Rs 2000 billion by the close of the current fiscal year if the present situation continues. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">They also objected to the government's decision to suspend Nepal Rastra Bank’s Governor Maha Prasad Adhikari. -- RSS </span></span></span></p> ', 'published' => true, 'created' => '2022-04-11', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14823', 'image' => '20220411110007_pro_ktm_umla.jpg', 'article_date' => '2022-04-11 10:59:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15070', 'article_category_id' => '274', 'title' => 'Nepal’s Economy Heading Towards Red Zone: Expert', 'sub_title' => 'Experts say Delayed Action of Government caused Current Economic Crisis', 'summary' => 'April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Milan Bishwakarma</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">April 8: The country’s economy, which was recovering after the Covid-19 pandemic, has once again plunged into crisis. The situation has worsened when the economy battered by the impact of Covid-19 for 2 years was gradually clawing back to normalcy.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The economy has been pushed to the brink due to various factors including liquidity crunch in the banking system, inflation, energy scarcity, declining foreign exchange reserves among others.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">There were ominous signs since the beginning of the current fiscal year that the economy would undergo stress. The Current Macroeconomic and Financial Situation Report published by Nepal Rastra Bank every month had indicated that the economy was on the verge of crisis. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">The Balance of Payments (BoP) was in deficit while the foreign exchange reserves were declining since mid-July. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Besides, trade deficit was increasing and remittance inflow was declining. Banks were struggling to manage investible capital since the start of the current fiscal year. Experts say that the economy is already in crisis because the concerned authorities did not take proper measures to address those problems in time. They argue that the economy has been further troubled by the energy crisis and hike in fuel prices of late. They suggested that the government must take measures to ensure that the foreign exchange reserves get replenished. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Foreign exchange reserves are vital indicator of the economy. The economic situation depends on the volume of foreign exchange reserves. Foreign currency is needed for importing goods and services. It is not possible to import goods and services in lack of foreign exchange reserves. Lately, the economy is in crisis mainly because of the decline in foreign exchange reserves.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Economist Dr Chandra Mani Adhikari suggests that the government must take immediate steps to effectively mobilize the foreign exchange reserves to resolve the current crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The main crisis faced by the economy at present is the declining foreign exchange reserves,” says Adhikari, adding, “It affects the overall economy. But the government has done nothing to attract foreign currency but has only kept a stock of the currency.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He suggested the government adopt a policy to attract foreign investment and promote exports and tourism as well as encourage remittance inflow that in turn will earn foreign currency.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">According to Adhikari, the government must immediately announce a promotional package to bring the remittance into the country through formal channels.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Remittance is a good source of earning foreign currency. However, inflow of remittance has declined in recent period. It is said that the remittance is sent through informal channels. Therefore, the government must encourage to bring remittance through formal channels,” he added.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He is of the view that foreign currency can be earned if the expenditure of the projects run with foreign aid is increased.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“Nepal’s economy was in grey zone but it has already entered the yellow zone now and will drift towards the red zone if immediate measures are not taken,” said Adhikari.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Stakeholders of the private sector have expressed their willingness to help resolve the current crisis. They say that they are ready to seek a solution in collaboration with the government.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">President of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Shekhar Golchha says that the private sector is ready to go for any extent to help the government resolve this crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“This is the time of crisis. We won’t consider profit and loss during such times. We are ready to rise above our business and cooperate with the government,” said Golchha, adding, “But the government must take the private sector in confidence, which is yet to happen.”</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the government has held discussion with the private sector in this regard but hasn’t taken any policy-level decision.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">Golchha says that the latest move of the government is not helpful in solving the crisis.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“The government has not taken adequate measures to resolve the problem. It has just warded off immediate crisis. It is necessary to involve the private sector to seek a solution to the problem,” added Golchha.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">He said that problems have surfaced due to the measures taken by the government to discourage imports all of a sudden.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,"sans-serif"">“It was necessary to take such steps considering the current situation. But it has created additional problems. It is time to rethink if this is a long-term solution or not.”</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-08', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14812', 'image' => '20220408055208_economic crisis.jpg', 'article_date' => '2022-04-08 17:51:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15061', 'article_category_id' => '274', 'title' => 'Nepal’s Economy in Critical Situation: ADB Report', 'sub_title' => '', 'summary' => 'April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 7: The Asian Development Bank (ADB) has stated that Nepal's economy is in a critical situation. The Asian Development Outlook 2022, released by the ADB on Wednesday, states that the economy is becoming problematic due to the fluctuations in the world market and the failure of the state to adopt the right policy in time. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the ADB, the global economic recession caused by the Ukraine-Russia tensions, stagnant trade, rise in prices of crude oil and other commodities have put pressure on inflation. It also warned that the country would face challenge in maintaining the balance of payments and foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“The slow expansion of developed economies due to Russia-Ukraine tensions, stagnant trade flows and rising prices of oil and other commodities could put further pressure on Nepal's balance of payments and foreign exchange reserves,” said Arnaud Cauchois, ADB's Country Director for Nepal. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In 2021, Nepal's economic growth rate was 3.2 percent. The ADB has projected 3.9 percent growth for 2022. The government had expected the Gross Domestic Product (GDP) growth rate to be 7 percent in the current fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB views the growing trade deficit as a long-term challenge to Nepal’s economy. The ADB report expressed concern that rising imports but lower exports could lead to structural problems. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to the report, the problem seems to be rising as Nepal's trade deficit is increasing but the resources to cover such deficit are not expanding in the same proportion. As per the ADB, the government's efforts to reduce costs and increase competition through trade policies and various laws to address this problem have had little effect. The ADB states that despite various multilateral and bilateral initiatives to increase exports, the results have not been encouraging. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Even though Nepal's production is good, it has not been able to export due to lack of capital, technology and skills required for it. Nepali products have not been able to enter the world market as the country does not even have a simple laboratory,” said the report. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB report also pointed out that Nepal has also been unable to utilize the concessions offered by some rich countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">After the 2015 earthquake, the United States decided to give concessional access to Nepal's products such as carpets and pashmina. However, the ADB report says that Nepali products have not yet been able to reap the benefits due to the failure to meet the required quality standards for entry into the US market. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">ADB states that although Nepal can benefit by doing significant work in the field of information technology and tourism, this is not the case. Despite the policy formulation, the result is not seen due to the lack of implementation and continuity.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Paddy production was expected to be good due to favorable rains. However, unseasonal rains and floods in October damaged crops. This has reduced paddy production by 9 percent, according to ADB. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Based on consumer and investment demand, the industry is expected to grow by 4.1 percent this year. Wholesale and retail trade, transportation and financial services are expected to grow by 5.2 percent due to normal conditions. ADB expects the tourism sector, which had a negative impact in 2021, to improve from this year. Furthermore, the ADB considers the continuation of the vaccination campaign against the pandemic and the gradual normalization of economic activity to be positive. </span></span></span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-07', 'modified' => '2022-04-11', 'keywords' => '', 'description' => '', 'sortorder' => '14803', 'image' => '20220407021459_ADB.jpeg', 'article_date' => '2022-04-07 14:12:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ) ) $current_user = null $logged_in = false $xml = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
| Currency | Unit |
Buy | Sell |
| U.S. Dollar | 1 | 121.23 | 121.83 |
| European Euro | 1 | 131.65 | 132.31 |
| UK Pound Sterling | 1 | 142.47 | 143.18 |
| Swiss Franc | 1 | 124.29 | 124.90 |
| Australian Dollar | 1 | 71.69 | 72.05 |
| Canadian Dollar | 1 | 83.90 | 84.32 |
| Japanese Yen | 10 | 10.94 | 11.00 |
| Chinese Yuan | 1 | 17.17 | 17.26 |
| Saudi Arabian Riyal | 1 | 32.27 | 32.43 |
| UAE Dirham | 1 | 33.01 | 33.17 |
| Malaysian Ringgit | 1 | 27.36 | 27.50 |
| South Korean Won | 100 | 9.77 | 9.82 |
Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)
| Fine Gold | 1 tola | 77000.00 |
| Tejabi Gold | 1 tola | 76700.00 |
| Silver | 1 tola | 720.00 |
Update : 2020-03-25
Source: Federation of Nepal Gold and Silver Dealers' Association
| Petrol | 1 Liter | 106.00 |
| Diesel | 1 Liter | 95.00 |
| Kerosene | 1 Liter | 95.00 |
| LP Gas | 1 Cylinder | 1375.00 |
Update : 2020-03-25
