WORLD ECONOMIC OUTLOOK

As per the Price Waterhouse Coopers (PWC) long-term economic growth projections related to GDP to
2050 for 32 of the largest economies in the world in February 2017, the global Real GDP growth (at PPP
rates) was projected to be about 3.4% in 2019 followed by 3.5% in 2020 and average of 3.5% from 2021
to 2025. By 2050, PWC indicates the world economy doubling in size, outstripping population growth,
due to continued technology-driven productivity improvements. The Emerging Markets were likely to
grow twice as fast as advanced economies (G7) on average. As a result, six of the seven largest
economies of the world are projected to be emerging economies in 2050 led by China, India and
Indonesia. The United States is projected to be down to third place in the global GDP rankings. UK could
be down to the tenth place, France out of the top ten and Italy out of the top twenty as they are likely to be
overtaken by faster growing emerging economies like Mexico, Turkey and Vietnam respectively. In order
for this to occur, emerging economies are required to enhance their institutions and their infrastructure
significantly. Vietnam, the Philippines, and Nigeria could very well make the greatest moves up the
rankings.
The World Economic Outlook growth projections before the outbreak of COVID 19 as per IMF was 3.3
% growth in 2020 and 3.4 % growth in 2021.

Source: World Economic Outlook published by IMF on January 2020

But as the pandemic Covid-19 has hit the whole world very hard, the prediction of World Economic
Outlook has been changing repeatedly. Lately, in April 2020, as per IMF global economy is projected to
contract sharply by -3 percent in 2020, much worse than during the 2008–09 financial crisis. In a baseline
scenario, which assumes that the pandemic fades in the second half of 2020 and containment efforts can
be gradually unwound, the global economy is projected to grow by 5.8 percent in 2021 as economic
activity normalizes, helped by policy support.
Source: World Economic Outlook Published by IMF on April 2020
The growth forecast is marked down by more than 6 percentage points relative to the January 2020 WEO
Update projections.

  Difference from January 2020

Projections WEO update

2019 2020 2021 2020 2021

World Output  2.9 -3.0 5.8 -6.3 2.4
Advanced Economies 1.7 -6.1 4.5 -7.7 2.9
Emerging Market and Developing 3.7 -1.0 6.6 -5.4 2.0
Economies
Emerging and Developing Asia 5.5 1 8.5 -4.8 2.6

4. SOUTH ASIAN REGION OUTLOOK

As per the latest World Bank reports dated 5th April 2019, South Asia was holding on to its top spot as
the World’s fastest growing region, with growth set to step up to 7 % in 2019, then 7.1% In 2020 and
2021, but the region needs to increase its exports to sustain its high growth and reach its full economic
potential.

1. As per World Bank, Real GDP growth in South Asia before COVID-19
2019
 Country/Year   2018      2020 (f)   2021 (f)  
(e)
Afghanistan (CY) 1.0 2.5 3.2 3.5
Bangladesh (FY) 7.9 7.3 7.4 7.3
Bhutan (FY) 5.7 5.4 5.4 5.2
India (FY) 7.2 7.5 7.5 7.5
Maldives (CY) 7.9 5.7 5.2 5.3
Nepal (FY) 6.3 6.0 6.1 6.2
Pakistan (FY, factor
5.8 3.4 2.7 4.0
prices)
Sri Lanka (CY) 3.2 3.5 3.6 3.7
Source: World Bank CY: Calendar Year, FY: Fiscal Year, e: Estimate, f: Forecast
Since the outbreak of Covid-19 in the world, and the countries being in lockdown state, the growth of
South Asian countries seems plummeting in 2020, but will eventually uplift in 2021 after the effect of
Covid-19 is faded away, as per the IMF.

2. Real GDP growth in South Asia after Covid-19

Country/Year 201 202 2021
9 0 (f) (f)
Afghanistan (CY) 3 -3 4.5
Bangladesh (FY) 7.9 2 9.5
Bhutan (FY) 5.3 2.7 2.9
India (FY) 4.2 1.9 7.4
Maldives (CY) 5.7 -8.1 13.2
Nepal (FY) 7.1 1.0 3.5
(Pakistan (FY, factor 3.3 -1.5 2
prices)
Sri Lanka (CY) 2.3 -0.5 4.2
Source: IMF, World Economic Outlook, April 2020, Nepal’s data as per IMF report Dated 6 May, 2020: CY: Calendar Year,
FY: Fiscal Year, e: Estimate, f: Forecast

As per the IMF projections as of April 2020 for South Asian Region, projections of 2021 is in increasing
trend but this scenario can only occur if the situation gets normal. Since the cases of Covid -19 is in
increasing trend and the countries been in the lockdown state, there is very slim chance to achieve the
economic growth in 2021 as per projections of IMF.

5. NEPAL – ECONOMIC OUTLOOK

In FY 2015/16, the double impact of the great earthquake and the border blockade by India led to the
GDP growth plummeting to 0.60% which recovered to a staggering 8.2% in FY 2073/74 as reconstruction
took place and the borders with India opened. The momentum was sustained in FY 2074/75 also, with
6.70% growth. In the recent times, as economic agenda increasingly take center stage after the
establishment of the federal structure and continuing political stability, growth was stabilizing above 6%,
with fairly positive future outlook. However, sustaining the current economic growth over the next few
years is contingent upon post COVID 19 economic reform activities, the acceleration in reconstruction
works, expediting national priority and other mega infrastructure projects and maintaining the recent
improvements in power supply. Improvements in infrastructure spending patterns and capacity on the
road transport, power (transmission lines and generation), irrigation, agriculture support, tourism, etc. are
vital to increased economic activities. The historical GDP movement is as below:
Source: Central Bureau of Statistics (CBS), 2019

Source: IMF Predictions as of May 6, 2020

Disclaimer: The above estimation of GDP growth is based on the basis of economic growth projection of
Nepal by IMF on May 2020. However, the expected GDP growth in next year may not bounce back up to
3.5% due to following reasons:
 For FY 2076/77, the estimated GDP is 1% due to last 4 months of economic impact of COVID
19. Thus in next FY 2077/78, the effect is likely to last more than 4 months as the number of
 infected are increasing and the alternative of lockdown is not still found. Thus, it is estimated that
the growth of real GDP would be around 1.5%.
 The situation of Nepal in providing treatment to COVID 19 infected patient with advance and
abundant health care facility is comparatively poor with that compared to development countries.
Thus the country would face difficulty in handling patients if the numbers increase significantly.
That’s why the economic activities are not likely to bounce back in next FY as well.
 Further vaccine to prevent COVID 19 is not developed so far. Even it is approved by concerned
authority, it will take time to get sufficient supply of that vaccine worldwide and Nepal as well.
 However, from FY 2078/79, the alternative means to operate the economy back to life despite the
lockdown or social distancing may also come. Thus, the GDP is estimated to remain at or above
6% thereafter.
On the basis of above disclaimer, the projection of GDP till FY 2081/82 is shown below:
Source: CBS and NRB, 2019

6. IMPACT OF COVID-19, CURRENT MACROECONOMIC

INDICATORS AND GEOPOLITICAL ISSUES IN NEPALESE ECONOMY
The COVID-19 pandemic is having a severe impact on Nepal’s economy. During recent months,
remittances have fallen considerably, tourist arrival collapsed, and domestic economic activity also has
taken a hit amid social distancing measures. These have given rise to an urgent balance of payments need
and a fiscal financing gap, as per IMF. There are signs of moderation in economic activity in FY2019/20.
Remittance inflows have recently decelerated because of a slowdown in major remittance-sending
economies, including India.
The economy was already weak before the lockdown and implementation of social distancing measures.
For instance, a delayed monsoon, shortage of fertilizers, use of substandard seeds and an armyworm
invasion dented agricultural output before the Covid-19 pandemic. The pandemic exacerbated the
situation through agricultural inputs crunch (such as workers and fertilizers), especially to harvest winter
crops, connect to agricultural markets, and prepare for summer crops.
The Covid-19 outbreak in Nepal happened to exacerbate the situation as it hit in the second half of the
fiscal year - the period when a majority of economic activities occur. No wonder, mining and quarrying,
manufacturing and construction activities are expected to contract in the current fiscal year. Work from
home norms do not apply to these activities and productivity losses will continue to linger for some
quarters.
Within the services sector, a deceleration of remittance income and decline in imports were already
affecting retail and wholesale trade, which has the second-largest share in the GDP. After the pandemic,
this sub-sector is expected to grow by just 2.1 percent, down from 11.1 percent last fiscal. Travel and
tourism-related activities such as hotels and restaurants, and transport, storage and communications are
expected to flatten. Other services activities that are badly hit are financial intermediation, real estate and
business activities, and education. Note that casual workers and informal sector firms, mostly MSMEs,
are concentrated in the services sector.
Importantly, since a large proportion of the households are clustered just above the absolute poverty line,
an income shock due to the Covid-19 will push many of them below the poverty line. It will also
potentially widen inequality because the poorest households are disproportionately affected. Social
protection problems, as well as unemployment, are going to exacerbate as mass internal layoffs and
returning migrant workers increase till mid of FY2020/21.
Nepal has long faced many diplomatic challenges, from striking a balance among major powers to
securing international assistance — whether grants, loan, or Foreign Direct Investment (FDI) — to meet
its domestic development aspirations. But the country will face an even tougher foreign policy
environment after COVID-19.
As per Nepal Rastra Bank (NRB) the current macro-economic indicators of nine months of FY
2019/20 are:
 Agriculture, industry and service sectors estimated to grow 2.6 percent, 3.2 percent and 2.0
percent respectively. The share of agriculture, industry and service sectors in GDP stands 27.6
percent, 14.3 percent and 58.1 percent respectively in 2019/20 
 The y-o-y consumer price inflation stood at 6.74 percent in mid-April 2020 compared to 4.44
percent a year ago.
 In nine months of 2019/20, merchandise exports increased 12.9 percent to Rs.78.82 billion
compared to an increase of 17.7 percent a year ago. Destination-wise, exports to India increased
25.4 percent whereas exports to China and other country decreased 28.1 percent and 7.5 percent,
respectively. 
 Exports of palm oil, cardamom, medicine (ayurvedic), herbs, toothpaste, among others, increased
whereas exports of zinc sheet, wire, readymade garment, juice, woolen carpet, among others
decreased in the same period.
 In nine months of 2019/20, merchandise imports decreased 7.5 percent to Rs.982.53 billion
against an increase of 21.3 percent in the same period of the previous year. Destination-wise,
imports from other countries increased 3.1 percent whereas imports from India and China
decreased 12.3 percent and 1.0 percent, respectively. 
 Imports of crude palm oil, chemical fertilizer, and hot rolled sheet in coil, crude soya bean oil,
computer and parts, among others increased whereas imports of petroleum products, M.S. billet,
transport equipment and parts, gold, cement, among others decreased in the review period. 
 Total trade deficit narrowed down 8.9 percent to Rs.903.72 billion in the nine months of 2019/20.
Such deficit had expanded 21.5 percent in the same period of the previous year. The export-
import ratio increased to 8.0 percent in the review period from 6.6 percent in the corresponding
period of the previous year. 
 Remittance inflows decreased 4 percent to Rs.626.90 billion in the review period against an
increase of 20.9 percent in the same period of the previous year. 
 Balance of Payments (BOP) remained at a surplus of Rs.36.61 billion in the review period against
a deficit of Rs.64.68 billion in the same period of the previous year.
 Nepalese currency vis-à-vis US Dollar depreciated 10.18 percent in mid-April 2020 from mid-
July 2019.
 Deposits at Banks and Financial Institutions (BFIs) increased 9.7 percent in the review period
compared to an increase of 10.6 percent in the corresponding period of the previous year. On y-o-
y basis, deposits at BFIs expanded 16.9 percent in mid-April 2020. 
 Credit to the private sector from BFIs increased 11.5 percent in the review period compared to a
growth of 16.5 percent in the corresponding period of the previous year. On y-o-y basis, credit to
the private sector from BFIs increased 14.3 percent in mid-April 2020. 
  Of the total outstanding credit of the BFIs, 65.1 percent is against the collateral of land and
building and 13.3 percent against the collateral of current assets (agricultural and non-agricultural
products). Such ratios were 64 percent and 14.1 percent respectively a year ago. 
India
 Nepal’s relationship with India is unlikely to see any major changes even after the pandemic.
After all, the Peace and Friendship Treaty of 1950 has set out a basic framework for bilateral
relations so the countries cannot make drastic changes even after COVID-19. Due to the open
border, once travel is permitted again there will be smooth movement of migrant workers from
one country to another. Those who returned to their home country due to COVID-19 are likely to
migrate back once restrictions are lifted. Nepal will continue to be dependent on India when it
comes to the supply of daily essentials.
 India is likely to continue its already-pledged development assistance to Nepal even after
COVID-19, but India is likely to face some resource constraints when it comes to providing
additional assistance in the development sector to compete with other powers in Nepal.
China 
 Concerning Nepal’s relationship with China, some advances might be delayed due to the impact
of COVID-19. For instance, Nepal is in the final stage of selecting projects under the Belt and
Road Initiative (BRI), which could be delayed further. Due to COVID 19, Nepal’s economy has
been badly hit so it is unlikely to rush to take loans from China to implement projects under the
BRI, for fear of defaulting. China itself will not be in a position to offer grants for development
projects as its economy will also be battered by the virus. Nepal and China are discussing several
connectivity projects, but the investment modality remains to be settled.
 But that does not mean China’s influence in Nepal will decrease; on the contrary, it is likely to
increase further. During the pandemic, Nepal has been overly dependent on China to arrange
necessary medical logistics. Nepal is purchasing a large amount of medical supplies from China
and has also received a large amount of assistance. Nepal is not unique in this; even developed
countries are relying on China. Due to the economic crisis, the United States and other Western
countries may not be in a position to provide economic assistance at the same level Nepal
expects. In this scenario, China is likely to fill the void.  
In the post-COVID-19 era, another major challenge for Nepal will be to seek out new destinations for
unemployed youths. After the economic crisis in India, Gulf countries, and Malaysia — which combined
host millions of Nepali migrant workers — thousands of Nepali workers have already lost their jobs.
They are asking the Nepali government to arrange flights to bring them home. As Nepal cannot provide
enough jobs for all its unemployed youths, Nepal should explore new destinations where it can send its
workers. This is also necessary to rebuild Nepal’s economy, because remittances contribute between 24
and 27 percent of the country’s GDP. Nepal now will have to find out other countries where both skilled
and unskilled manpower can get employment.
Similarly, Nepal needs robust economic diplomacy to bring in big economic assistance packages from
developed countries. Due to the effects of COVID-19, developed countries may not be in a comfortable
position to provide major assistance but Nepal needs to make an effort to draw such support. Similarly,
extra measures should be taken to bring more FDI from other countries. Since last year, the government
has been taking a series of steps to ease the process of attracting FDI, but still there are legal hassles.
Another challenge before the government is to revive Nepal’s tourism sector as soon as possible.
Tourism, which provides employment to half-a-million people, is a vital part of the country’s economy.
Once the COVID-19 crisis is over, Nepal needs to assure international tourists that the country is safe. At
the same time, it has a responsibility to create necessary infrastructure to keep international tourists safe
during their stay in Nepal.
IMF approves USD 214 million to Nepal for COVID-19
IMF approves USD 214 million to Nepal to address COVID-19 pandemic as on 7 May, 2020. The
International Monetary Fund (IMF) said COVID-19 is having a severe impact on Nepal's remittances,
tourism, and domestic activity. As such, it will substantially weaken the country's GDP growth, balance
of payments and fiscal position. The measures are being implemented to ensure adequate liquidity in the
financial system and support a continued access to credit. As such, the IMF financial support will make a
substantial contribution to filling the immediate external and fiscal financing needs that have emerged due
to COVID-19. It is also expected to catalyze additional support from development partners.

7. STRATEGIC DIRECTION OF THE COUNTRY

The various departments of the government have formulated strategic plans in order for the country to
move ahead and ensure development of the country. As per IMF Nepal has plans to graduate from being a
Least Developed Country (LDC) status by 2079 BS, which is a medium term goal and has framed a
vision to become a lower middle-income country by 2087 BS. The government, in its Policies and
Programs for FY 2077/78, has targeted to transform the country to a developed nation by 2099 BS
through economic and social development. While the budget of the country year after year has targeted
towards construction of roads, schools, bridges and other infrastructure, it has for the most part fallen
short of its targets. However, due to COVID 19, the priority of the government is health, education,
employment and revival of the economy.
 In the arena of development of roads, a five-year strategy formulated by the government incorporates a
total of 4,600 kilometers of roads that are set to be constructed, expanded or upgraded. About 400
kilometers of roads and 87 bridges affected by the earthquake are also set for reconstruction. The goal of
the strategy states that all 77 districts will be connected to the national road network by the year 2021. A
total of 2,554 bridges are set to be constructed leading up to 2021. Besides the road network, the
government has also formulated plans for construction and expanding the railway network which will
cover a total area of 85 kilometers. In order to successfully accomplish the plans as above, the
government will be investing around NPR 620 billion for the roads, NPR 180 billion for the rail and other
infrastructure, as well as NPR 16 billion for the transportation management. Thus, it shall invest a total of
NPR 816 billion for the implementation of its plans by 2021.
In terms of agriculture, as per the Agriculture Development Strategy (ADS), from 2015 to 2035, Nepal is
expected to go through the process of agricultural transformation, a process whereby the economic
structure of a society changes from one based on agriculture to one based on industry and services.
During this period, plans have been formulated to increase the average annual growth from 3% to 5%,
increase the land productivity from USD 1,804 per hectare to USD 4,787 per hectare, increase labor
productivity from USD 794 per agricultural labor to USD 1,833 per agricultural labor, have 80% of
agricultural production (from 50%) for commercialization, increase agri-business GDP to 20% from 10%
and increase the agro-food exports from USD 248 million to around USD 2 billion by the year 2035.
While the last few years’ agricultural growth has been primarily due to a favorable monsoon, it would be
abnormally optimistic to say this pattern will be consistent every year for the next few years. Weather
patterns are subject to change every year and a delayed monsoon and inadequate rainfall is sure to
adversely affect agricultural output. 
The government, in its Policies and Programs for FY 2077/78, has envisioned to increase the agricultural
productivity by twice in 10 years by investing a large amount in agriculture modernization and
commercialization.
Similarly, in trade, the Ministry of Commerce’s has targeted to increase the export of goods under Nepal
Traded Integrated Strategy (NTIS) which are lentils, honey, noodles, handmade paper, silver jewelry,
iron/ steel products, fabrics, textile/ yarn, leather and footwear to around 4% of the GDP by 2020. This
figure is around 2% currently. In terms of export/ import as per IMF projections, the exports value growth
is forecasted to be 4% for FY 2018/19, 4.1% for FY 2019/20, and 4.2% for FY 2020/21 and FY 2021/22
respectively. Furthermore, the imports value growth is forecasted to be 6.8% for FY 2018/19, 6.9% for
FY 2019/20 and FY 2020/21, and 6.8% for FY 2021/22 respectively. Carrying out trade is expected to be
digitized in the future for the country. The government has always put export-oriented industries as
priority, in order to improve export, government will ensure improvement in infrastructure, create a
conducive environment and provided various incentives as well as ensuring policy changes. The present
scenario and past track records indicate that there is minimal chance for achieving growth targets through
export-oriented industries.
In the hydropower sector, in 2016, the Government of Nepal (GoN) endorsed the ‘Action Plan on
National Energy Crisis Alleviation and Electricity Development Decade’ which targets to generate 10,000
MW by 2025 through a roadmap for policy reforms and initiatives to spur private sector investment. To
help investors develop their projects more swiftly, the government is simplifying administrative
procedures. It is also revising electricity tariffs in line with Power Purchase Agreement rate, providing an
incentive of NPR 5 million per MW for hydropower projects that intend to supply electricity for domestic
use, and tax exemption for the projects that are completed in 10 years. Currently, the nation’s major focus
lies in the hydropower sector where the GoN intends to install 26 GW (42 GW considered to be
financially viable) of hydropower capacity by 2035. The GoN’s current plans are to develop 6,000 MW
of storage and run-of-river projects on its own, which will collectively produce 10,000 MW by 2026.
Also the government plan to generate 15,000 megawatt of electricity in next 10 years and also increase its
internal consumption and expand transmission lines.
Various initiatives have been taken to stimulate the manufacturing sector, which the government believes
is crucial to the country’s economic development. Nepal Investment Summit 2019 witnessed 15 deals for
various investments. 10 projects under transport, hydropower, hospital, airport, convention center,
agriculture infra received various investment proposals. One of the biggest solar development company
(SkyPower) also announced a 600MW solar energy project jointly with Chaudhary Group. The
government has been providing access road and electricity grid connectivity facility to the cement
factories to encourage domestic manufacturers and lure investment in the sector. With regular supply in
electricity and continued support from the government the manufacturing sector is also expected to fare
well in the next five years and beyond.
Healthy growth is expected especially in the agriculture, construction and manufacturing (industry) sector
provided the government implements its plans.
The recently formed Millennium Challenge Account –Nepal chapter, which is being funded by the
Millennium Challenge Compact (MCC), USA, has a corpus of US$ 630 Mil, with US$ 500 Million grant
contribution from the MCC and US$ 130 Million coming from the Government of Nepal. The project
period is for five years and it is mandated to work in the areas of improvements in Electricity
Transmission and Road Maintenance – two key areas needing focus for the economy. This sizeable grant
fund is also expected to contribute to infrastructure development to some extent.
Against the back drop of the country’s strategic direction focused on infrastructure, tourism, energy and
agriculture, the Bank shall also focus on these key areas for growth.
Figure Sustainable Development Goals
The Sustainable Development Goals of the United Nations are the blueprint to achieve a better and more
sustainable future for all. They address the global challenges we face, including those related to poverty,
inequality, climate, environmental degradation, prosperity, and peace and justice. The Goals are
interconnected and in order to leave no one behind, it’s important that we achieve each Goal and target by
2030, as per UN. Nepal aims to achieve these and has made significant progress on several of these goals.

8. DOMESTIC CREDIT BY BANKING SECTOR TO GDP

Analysis between Credit to GDP of Top 10 Countries and SAARC countries is given below:

Source: https://data.worldbank.org/indicator/FS.AST.PRVT.GD.ZS
Credit to GDP Projections for next 6 years as given below, give us an indication of the market growth that
will be there till 2025, in order to find out the size of the market opportunity that will be there. Based
upon these projections, the GDP size is projected to cross around NPR 6.3 Trillion, and domestic credit
by banking sector is also projected to almost reach around NPR 6.2 Trillion.
Even at realistic and fairly modest GDP Growth projection of 6% p.a. till 2025, the domestic credit by
BFIs in the country is projected to rise to NPR 6,284 Billion by 2025, which is expected to be 99% of the
projected GDP at nominal prices by then.

9. DEPOSITS OF BANKING SECTOR TO GDP

Based upon historical figures given above, the deposits to GDP figures are also expected climb higher as
below, with deposits expected to be higher than GDP size from FY 2075/76.
10. MARKET OPPORTUNITIES
Based upon various projections of real GDP (at base prices), related growth at current prices, domestic
credit by Banks and Financial Institutions (BFIs) to GDP at nominal prices, the market size of the BFIs in
relation to the projected GDP size by 2025 is expected to witness a significant growth. The projected
growth of the market size looks inevitable now that country is poised to focus more on economic agenda
and things are slowly falling into place, despite of perceive slow progress.
The table below highlights the market size growth in the last five years and next six years till FY 2081/82
end.

FY  FY Growth in last FY 2081/82 Growth by FY

Items
2069/70 2075/76 6 years Projection 2081/82 end

Amount in Rs Billions
Real GDP 698 950 252 1,235 285
Nominal GDP 1,695 3,459 1,764 6,347 2,888
Domestic Cr. by
956 2,914 1,958 6,284 3,370
BFIs
Domestic Credit to
56% 84% 28% 99% 15%
GDP (in %)
Deposits 1,250 3,354 2,104 7,216 3,862
Deposit to GDP (in
74% 97% 23% 114% 17%
%)
The following learnings are there for us from the above table:
 The risk assets market is projected to increase by 15% over 6 years, including the current fiscal
year.
 The market growth in credit for next 6 years till 2025 is expected to be NPR 3,370 Billion
 The projected increment in market size as above is around 1.15 times of what the size is currently
(NPR 2,914 Billion)
 Although the projected figures look fairly bigger than compared to the last five years’ average
data, the trend of growth in the last several years point to a realistic projection.
 The opportunity for market shares growth is thus tremendous and a focused approach along with
a strategy to disrupt the market will be required to grab reasonable market shares in the
incremental growth projection of the market.
National Pride Location Remarks
Project of Nepal
Sikta Irrigation Banke District of the
Project Mid-Western The Project area comprises 34 Village Development Committees
Development Region. (VDCs) and the municipality of Nepalgunj, which is the District
Province – 5 headquarter
Rani-Jamariya- Tikapur,  Kailali
Kularia Irrigation District of Far-Western Eastern sector of Kailali district
Project Development Region
Province – 7
Upper Tamakoshi Lamabagar VDC of
Hydropower Dolakha District, The intake for the hydropower plant is located at Lamabagar
Project Janakpur Zone, Central Village, which lies at direct distances of about 6 km south of the
Development Region border with China (Tibet) and 32 km north to northeast of the
Province – 3 Dolakha District centre, Charikot.
West Seti Seti River in the Far
Hydropower Western Development The project is located in parts of 20 VDCs: 4 in Baitadi District, 5
Project Region in Bajhang District: 1 in Dadeldhura District and 10 in Doti
Province – 7 District. 
Pokhara Regional Chhinne Danda in the
International city of Pokhara, Kaski The new airport will serve as the aerial gateway to the Himalayan
Airport District, Gandaki zone, and Annapurna regions in Nepal. It is anticipated to handle one
Western Nepal million passengers a year
Province – Gandaki
Pashupati Area Pashupatinath Temple The trust established to conserve and operate the Pashupatinath
Development Province – 3 Temple and other charitable institution in the Pashupatinath
Project UNESCO World Heritage Sites area.
Mid-Hills 1776 km. of road from Chiyabhanjyang of Panchathar in the East to Jhulaghat of Baitadi
Pushpalal Highway East to West in the Far-west – a distance of 1776 km. – through a total of 24
districts and 225 VDCs.
Terai Hulaki Marg Highway begins from 20 to 30 kilometres south, parallel to the East-West highway. The
Bhadrapur, Jhapa Hulaki highway begins from Bhadrapur, Jhapa district in the east
and stretches all the way to the far-western border with India in
Kanchanpur district. This highway connects all the 20 districts of
the Terai. 
North-South Province – 4 & 5 The total length of this North-South Kaligandaki Corridor
Kaligandaki highway is 435 kilometers, its 42 kilometers falls in Gulmi district,
Corridor and 38 kilometers fall in Baglung district.
Kathmandu-Terai Province – 3 The 72.5 km long Fast Track runs along the Bagmati River
Expressway corridor and is expected to cut the travel distance from the capital
Kathmandu to the south of the country by 159 km as per existing
roads. The Fast Track originates at Sano Khokana of Lalitpur
Metropolitan City (south of Kathmandu) and stretches to Nijghad
in Bara district in Nepal’s southern plains (known as
Terai/Madhes). There it will meet with the East-West (Mahendra)
Highway of the country. 
President Chure-   31 Ditricts - Ilam, Jhapa, Morang, Sunsari, Saptari, Sirah,
Terai Madhesh Udaypur, Dhanusa, Mahotari, Sindhuli, Sarlahi, Rautahat, Bara,
Conservation Area Parsa, Chitwan, Nawalparasi, Rupandehi, Kapilvastu, Dang,
Program Banke, Bardia, Kailali, Kanchanpur, Makawanpur, Arghakhanchi,
Palpa, Surkhet, Dadeldhura, Doti, Salyan, Pyutha
Bheri-Babai Banke and Bardiya To achieve round the year irrigation for 51,000 ha agricultural land
Diversion Province – 5 of Banke and Bardiya districts and generate 46 MW electricity by
Multipurpose transfering 40 m3/sec of water from Bheri River to Babai River
Project (water surplus basin to water deficit basin) by completing the
project 
Budhigandaki Central/ Western The project lies in Gorkha and Dhading districts in Western/
Hydropower Development region on Central Development region of Nepal. The project site is
Project the Budhi Gandaki accessible through Benighat (At about a distance of 80 km from
River Kathmandu) on Prithvi Highway (Kathmandu - Pokhara). From
Province – 3 Benighat, a motorable composite bridge can be used to cross the
Trishuli River and access the Dam and Powerhouse site both of
which are at a distance of about 1.5 km from the road head
Gautam Buddha Siddharthanagar  
Regional Municipality in The project will open enormous economic opportunities to the
International Rupandehi District tourism and other sectors of the region.
Airport Province – 5
Second Bara, Terai district,  The new airport will facilitate India’s heavily populated states of
International Southeastern Nepal Uttar Pradesh and Bihar. It will give rise to a new economic boom
Airport, Nijgarh, Province – 2 in the region.
Bara
Lumbini Area Lumbini  The main objective of the plan is to develop Lumbini as an
Development Province – 5 international centre for world peace, prosperity and harmony.
Project
East-West Railway   Location – 21 Terai districts.
Total Length 943km (including links Kohalpur-Nepalgunj,
Butwal-Bhiraha-Lumbini, Itahari-Biratnagar 1056km)
Passes through major towns along East West Highway like
Birtamod, Damak, Itahari,Inaruwa,Lahan, Rajbiraj, Bardibas,
Chapur, Hetauda, Narayanghat, Butwal, Lamahi, Kohalpur,
Attariya, Mahendranagar
North-South Koshi Panchthar to Sunsari is The Koshi Corridor Highway is the shortest route connecting
Corridor 148 kilometres. people of Panchthar, Taplejung, Terhathum and Dhankuta to cities
like Biratnagar and to other parts of the country.
Melamchi Melamchi valley The project's zone of impact in Melamchi Valley includes 14
Drinking Water Province – 3 VDCs out of 79 VDCs of Sindhupalchowk district. 11 VDCs are
Project directly affected and 3 are taken as indirectly affected VDCs. It is
predicted that the project will have significant effect on the
environmental and socio-economic aspects of the Melamchi
valley.

Mid Hill Highway – 1776 KM from Eastern Middle Hills to Wester Middle Hills with 24 districts
and 225 VDCs. 10 Big Cities planned are:
Phidim, Panchthar Basantpur, Terhathum Khurkot, Sindhuli Baireni, Dhading
Dumre Bhansar, Chaurjahari, Rukum Burtibang, Rakam Karnali, Dailekh
Tanahu Baglung
Sanfebagar, Accham Patan, Baitadi    

Proposed satellite cities of KTM Valley

Kathmandu  Manohara, Sundarijal
Lalitpur Bhaisepati, Khokana, Bungmati, Chhampi
Bhaktapur Kharipati, Gundu, Balkot
Outer Ring road, Kathmandu Valley

Hulaki Highway & Ten new cities along Hulaki highway: (Length 1,792.42 Km)
Gaurigunj, Jhapa Rangeli, Morang
Mahagadhimai, Bara Ishwarpur, Sarlahi
Shambhunath, Balwa & Sarpallo, Mahottari
Saptari
Rajapur, Bardiya Bardaghat, Nawalparasi
Belauri, Kanchanpur Bhajani Trishakti, Kailali

REMITTANCE
The onslaught of the Covid-19 pandemic continues around the world, and has impacted many industries
like Oil, Travel, Tourism, Hospitality, Airlines, and Remittance. The number of Nepalese citizens
immigrating to foreign countries for employment has seen an increasing trend year after year. The
primary destinations of Nepali migrants are Malaysia, Qatar, Saudi Arabia, and United Arab Emirates. As
of the March 2020, Nepal ranks at the 19th position in highest remittance-receiving countries in terms of
volume, and in the 4th position in terms of ratio of remittance-to-GDP. Remittance plays several positive
roles in Nepalese economy, contributing to the reduction of poverty and unemployment while
maintaining foreign exchange reserve and correcting the balance of payments. In the fiscal year
2018/2019, the share of Agriculture Forestry Fishing to GDP was found to be diminishing but the
proportion of Remittance to GDP was increasing. Labor shortage problems in agriculture as well as non-
agricultural sectors are increasing as youths seek out foreign employment. Thus, the Nepalese economy is
transforming from an agriculture-based economy to a remittance-based economy.
Remittance flows are expected to fall across globe, most notably in Europe and Central Asia  (27.5
percent), followed by Sub-Saharan Africa (23.1 percent), South Asia (22.1 percent), the Middle East and
North Africa (19.6 percent), Latin America and the Caribbean (19.3 percent), and East Asia and the
Pacific (13 percent). Remittances to South Asia are projected to decline by 22 percent to $109 billion in
2020, following the growth of 6.1 percent in 2019. The deceleration in remittances to the South Asian
region in 2020 is driven by the global economic slowdown due to the coronavirus outbreak as well as oil
price declines.
The International Monetary Fund has projected Nepal's five years remittance with slight decrease in this
and upcoming fiscal year. With the growth in the flow of Nepal's remittance to Rs. 977 Billion,
In the last 10 years 3,956,701 workers have migrated for foreign employment. Among them, 1.5 percent
were skilled workers, 24 percent were semi-skilled, and 74.5 percent were non-skilled. 167 countries have
opened up foreign employment, with the latest being Jordan and Oman. Overall national saving has been
increased due to high growth rate of remittance income, which accounted for 25.4% of GDP in 2019.

1. Number of Migrant Workers Employed in Foreign Countries

Nations 2071/72 2072/73 2073/74 2074/75 2075/76

Malaysia  202828 60979 98437 104207 9999

Qatar 124368 129038 125892 103174 75024

Saudi Arabia 98246 138529 76884 40963 46080

Europe  53699 52793 56526 60243 62776

Kuwait 9668 10049 13576 17555 15995

South Korea 5158 7432 5808 8040 7741

Bahrain 4165 3146 4007 4862 4633

Japan 2836 3844 2251 761 959

Oman 2300 3059 3186 3059 2722

Afghanistan 1501 1419 1381 1442 1830

Others 8118 8425 11030 17717 16109

Total 512,887 418,713 398,978 362,023 243,868

Top and Bottom 4 nations contributing are as follows:

YTD (76/77)
2072/73 2073/74 2074/75 2075/76
Chaitra 
  Amount in Millions
Nation Amt Nation Amt Nation Amt Nation Amt Nation Amt
12,41 13,77 33,91
India   11,799 India   India   India   India   24,422
9 1 1
12,38
Top 4 Qatar  7,462 Qatar  6,880 UAE  9,035 UAE  UAE  8,422
5
Nations
UAE  2,461 UAE  4,398 S.Korea  8,249 Qatar  6,012 Qatar  6,396
Saudi Saudi
Malaysia  1,728 771 Qatar  6,054 S.Korea  3,231 2,998
Arabia  Arabia 
S.Korea 365 S.Korea 752 Malaysia 2494 Japan 351 Bahrain 340
Malaysi Saudi
Bottom Bahrain 211 279 1668 Bahrain 349 UK 34
a Arabia
4
Saudi
Nations 62 Bahrain 245 Bahrain 148 Jordan 58 Jordan 16
Arabia
        UK 3 UK 28 Kuwait 4

WORK FROM HOME 

Working from home means engagement of employee performing assigned roles and responsibilities of the
business with adoption of appropriate technology as prescribed by the company, while staff remaining
safe at home. Based on the nature of business, it is one of the essential services that humans need in cases
of emergency.
The advantages of Work from Home are:
 There will be less space required for the employees, as many of employees will be working from
home.
 The guard and cleaning expenses can also be reduced as there will be lower space.
 Fuel expenses can be reduced.
 More personal time, which can maintain better quality time.
 Employee can be more focused on their personal saving too.
While Working from Home, the responsibility of every staff to maintain security of every flowing
information within the organization while dealing with information. Employees are responsible for
ensuring the security of company's information, files, documents, data etc. within their possession,
including both paper and electronic material. Staff should discuss the security implications of working
from home with the line managers and IT department in case of necessity. The communication channel
shall be formal using the prescribed apps only.
Whether one is working from home either partially or fully during any pandemic situation, it’s important
to ensure that they have appropriately set up to be productive. This includes having a designated
workspace with the right technology; ways of dealing with kids, pets, and other potential disruptions; and
a schedule that allows for the social contact and stimulation that ordinarily comes from being in a
workplace with others. Here are strategies and tips to maintain effective work from home:
 Know the ground rules: All the staff needs to know the ground rules for working from home.
The basic knowledge about the health and safety and the circumstances created due to any
disaster. The need and importance of work that you are doing for the organization and public
being one of the required service during emergency situations.
 Set up a functional workspace: A separate workspace for the office is to be maintained with
minimum level of required functions like proper table and chair, internet access, emails, and other
required technologies with support from IT department in case of necessity.
 Use of right technology: The minimum internet speed for emails, downloading the documents,
and other required systems/software as needed. It is suggested not to use the public Wi-Fi for the
office work. Similarly, the use of right mobile apps for group chats, meeting and sharing of
documents etc. is suggested.
 Minimize distractions: Working from home is not that easy to manage at home. The overall
environment of the home and family members, pets, neighbor etc. are to be managed so that
everything are supportive enough to minimize any kind of possible distractions.
 Plan extra social interactions: Employees may start feeling a little claustrophobic after a few
weeks at home, staying alone staring at the same project for long hours which can make you feel
bore & lonely. So, try to schedule some connect-with-the-outside-world via video chat with a
colleague from your Department/Branch, friend, family and relatives. 
 Balanced life style: Working from home doesn't mean that everything is unmonitored. The
normal life at home needs to be disciplined like; maintaining morning routine, focus on balanced
nutrition, regular exercise, setting regular hours for work, conducting video conferencing
regularly etc. so that it would be normal and easy life to work remaining at home.