2

Issue 52: March 2023 Executive Board Members:

Publisher: Nepal Economic Forum Alpa B. Shakya
Website: www.nepaleconomicforum.org Chandni Singh
Shayasta Tuladhar
P.O Box 7025, Krishna Galli, Lalitpur – 3 Sudip Bhaju
Nepal Phone: +977 1 554-8400 Sujeev Shakya
Email: info@nepaleconomicforum.org
Advisory Board:
Contributors: Arnico Panday
Kaatya Mishra Kul Chandra Gautam
Karun Dhakal Mahendra Krishna Shrestha
Krisha Shakya Prativa Pandey
Nasala Maharjan Shraddha Gautam
Sadichchha Sanjel Sneh Rajbhandari
Sakshee Singh
Sugam Nanda Bajracharya Senior Distinguished Fellows:
Sukeerti Shrestha Bibhakar Shakya
Giuseppe Savino
Special Section Authors: Suman Basnet
Neha Thapa, Sr. Area Coordinator, KISAN II Project, CEAPRED
Sagar GC, Team Leader, Green Karnali Project, LI-BIRD Senior Fellows:
Interview of Yuvaraj Gurung, Managing Director of Agro Manang Amish Raj Mulmi
Apekshya Shah
Design & Layout: Ashraya Dixit
Thuprai Solutions support@thuprai.com Bibek Raj Kandel
Diva Shrestha
Cover Design: Himal Neupane
Sakshee Singh Mark Perrin

The issue of Nefport takes into account news updates from

1 December 2022 to 28 February 2023.

The USD conversion rate for this issue is NPR 131.32 to a dollar, the
quarterly average of the review period for this issue.

Reproduction is authorised provided the source is acknowledged.

The views and opinions expressed in the article/publication are
those of the author(s) and do not necessarily reflect the official
opinion of Nepal Economic Forum. Neither the organisation nor any
person acting on their behalf may be held responsible for the use
which may be made of the information contained therein.
 Contents

NEPAL FACTSHEET 2
EDITORIAL 5

1 GENERAL OVERVIEW 6
Political Overview 7

International Economy 14

2 MACROECONOMIC OVERVIEW 20

3 SECTORAL REVIEW 42
Agriculture and Livestock 43
Energy and Environment 47
Infrastructure and Real Estate 53
Information and Communication Technology 56
Education 60
Health 65
Tourism 69

4 MARKET REVIEW 76
Financial Market 77
Capital Market 84

5 SPECIAL SECTION: AGRICULTURE - PERSPECTIVES FROM THE GROUND 87

ENDNOTES 97
 Nepal Factsheet

1 Koshi Province
2 Madhesh Province
3 Bagmati Province
4 Gandaki Province

7 6 5 Lumbini Province
6 Karnali Province
7 Sudurpashchim Province

4
5
3
1
2

KEY ECONOMIC INDICATORS

GDP (estimated 2022/23)* USD 39 billion GDP growth rate** 5.10%

GNI (PPP)**** USD 13.5 Inflation (y-o-y)**** 7.26%

Gross Capital Formulation

37.30% Agriculture Sector (% of GDP)***** 23.95%
(% of GDP)****

HDI value*** * 0.602 Industry Sector ***** 14.29%

HDI rank*** 143 Service Sector (% of GDP)***** 61.76%

*Preliminary estimate of FY 2022/23 (y-o-y mid-July to mid-July)

**World Bank, Global Economic Prospects January 2023 update
***HDI figure from Human Development Report of the UNDP 2021/22
**** Current Macroeconomic and Financial Situation of Nepal (Based on three months' data ending mid-Janaury 2022/23)
***** Current Macroeconomic and Financial Situation of Nepal (Based on annual data of FY 2021/22)
 NEFPORT ISSUE 52 – MARCH 2023 5

Editorial
The year 2023 for Nepal began with a focus on the new government, the second administration after
the new constitution was promulgated in 2022. The coalition that came to power could not sustain
itself and a new coalition went ahead to lead the government. While these adjustment went on, Nepal
elected its new President. Every now and then, the country reaches a moment of steadiness, however,
political uncertainty returns to disrupt. The political quagmire continues to impact the next wave
of reforms critical to economic growth and development. Laws and reforms stalled since July 2019
have finally been picked to be amended and passed but with the current parliament has completed
only 4 out of 60-month tenure with any major business being conducted. Evidently, this impacts the
smooth functioning of bureaucracy in the country as people delay and look forward to a reshuffle to
take place – further delaying processes and systems to follow.

The economic activities have been impacted by high interest rates and liquidity squeeze. Definitely
this has put discussion on economic challenges and opportunities to the forefront. The fundamentals
of Nepali economic growth and development still lies in agricultural activities and Nefport 52nd’s
theme has been chosen keeping it in mind. In this special issue, the focus is to explore Agriculture
with Perspectives from the Ground bringing in voices that echo the lived experiences and realities
of individuals and communities who influence the policy and/or decision-making processes from an
agri-business and private sector perspective. This issue focuses on the policy gaps and potentials
that cultivate conversations around agriculture in Nepal. Time and again, these conversations prove
to be essential for promoting food security, mitigating climate change impacts, promoting rural
development, and empowering gender responsiveness. Agri-businesses are essential for ensuring
food security, creating employment opportunities, promoting innovation, and supporting sustainable
agriculture practices. Agri-businesses and the private sector help to recognize and fill in the gaps
in farming practices, policies, and programs in Nepal that are both sustainable and resilient to the
impacts of a changing climate.

Nefport 52, in its special section, Agriculture - Perspectives from the Ground, will examine the
prospects of effectively integrating climate responsiveness and agricultural growth from the voices
of those who have had first-hand experience with the agri-business and private sector landscape.
The section includes multiple perspectives and outlooks to ensure a sustainable and resilient future
for farmers and communities. It will also explore the ways Nepal can determine the most efficient,
effective, and equitable food systems that address various issues across productive landscapes.

In the next quarter, we are looking forward to launching the – NEF Economic Dashboard and a
publication titled “Introspecting Change: Nepal’s Economic Awakening”. The dashboard will be a one
stop portal to access key economic data of Nepal and would help us integrate better with global
platforms The publication will be retracing Nepal’s journey across different sectors - agriculture,
energy, finance, manufacturing, information and communication technology, and tourism.

We are incredibly appreciative of all the voluntary contributions from many individuals who have
enhanced the content of each issue. We would like to thank our readers, patrons, and everyone else
who for their continued support and engagement. We’d like to acknowledge the contributions made
by Neha Thapa, Sagar GC, and Yuvaraj Gurung this edition of Nefport.

We are working continuously on recalibrating our Nefports to make them more useful to our readers.
Please feel free to write to us at info@nepaleconomicforum.org for any further comments or feedback.

Sujeev Shakya
Chair, Nepal Economic Forum
 1
6 DOCKING NEPAL’S ECONOMIC ANALYSIS

General
Overview
 NEFPORT ISSUE 52 – MARCH 2023 7

Political
Overview FACTSHEET

Nepali politics witnessed several ups and downs during

the review period. Pushpa Kamal Dahal, the Chair of the Nepal's
Particulars Score
Communist Party of Nepal-Maoist Center (CPN-Maoist Rank

Center), was elected as the Prime Minister of Nepal on

December 25, 2022, with the support of 169 lawmakers.
However, after only 64 days, Prime Minister Dahal-led
Press Freedom
government fell into the minority. With the withdrawal of the 76th 62.67
Index 20221
Communist Party of Nepal – United Marxists Leninists (CPN-
UML) and Rastriya Prajatantra Party (RPP), the government
is now in the minority with only 77 members of parliament
Democracy
on board. Similarly, Nepali Congress leader Ramchandra Index 2021
101st 4.41

Poudel was elected as Nepal’s third President with the

CPN-Maoist Center’s support. During the review period, the
Federal Budget's midterm review was also presented. The
government decided to reduce the size of the budget as well Freedom in the
123rd 56
World Index 2021
as the anticipated revenue because it was unable to spend
its allotted funds or adequately collect the targeted revenue.

EXECUTIVE UPDATES Party (RPP), the Janamat Party,

the Janata Samajbadi Party
Index Rank Score
Coalition Government Led (JSP), the Nagarik Unmukti Party
by CPN-Maoist Leader (NUP) and three independent
Pushpa Kamal Dahal Formed MPs in his bid to serve as prime Economic
minister for the first two years Freedom Index
142 51.4
CPN - Maoist Center Chairperson of the new parliament's five- 20232 (Out of 176
year mandate.5 The members countries)
Pushpa Kamal Dahal was sworn in
as the new Prime Minister of Nepal of the former coalition, which
on December 26, 2022, as per included the Nepali Congress Fragile State
Index 20223 (Out 49 80.6
Article 76 (2) of the Constitution (NC), CPN – Maoist Center,
of 179 countries)
of Nepal (2015). Dahal was given CPN – United Socialists (CPN -
support by 169 Members of US), Loktantrik Samajbadi Party
Parliament (MPs) from the CPN- (LSP), and Rastriya Janamorcha Corruption
Perception Index
Maoist Center, the CNP - UML, Party (RJP) had an agreement to 110 34
20224 (Out of
the Rastriya Swatantra Party maintain the coalition to form the 180 countries)
(RSP), the Rastriya Prajatantra new government. Nevertheless,
8 DOCKING NEPAL’S ECONOMIC ANALYSIS
Pushpa Kamal Dahal, and Sher
Bahadur Deuba, the President of
the NC, were unable to agree on
who would take office as a prime
minister first. Deuba reportedly
insisted on becoming the prime
minister for the sixth time.
Meanwhile, CPN-UML chair, KP
Sharma Oli, was willing to offer
Dahal two and a half years as
Prime Minister if Dahal renounced
his coalition with the NC, which
Dahal accepted.6
Prime Minister Pushpa Kamal
Dahal Wins Vote of Confidence
Prime Minister, Pushpa Kamal
Dahal, received a vote of
confidence from the House of
Representatives on January 10,
2023, per the provisions of Article
76(4) of the Constitution of Nepal
(2015). Prime Minister Dahal
received a vote of confidence
from 268 MPs out of 270 MPs who
took part in the vote. He received
the support of all political parties
and independent lawmakers,
except for Prem Suwal of the
Nepal Majdoor Kisan Party and
Chitra Bahadur KC of the Rastriya
Janamorcha.7 According to Sher
Bahadur Deuba, Chairperson of
the Nepali Congress, the party
supported Prime Minister Dahal
during the vote of confidence
motion because they believed
he would defend the constitution
and work for the good of the
nation as well as its citizens in
light of the challenges facing it.
Parliamentary experts contend
that the Nepali Congress has
joined the ruling coalition by
voting to support the prime
minister, despite the party's
assertion that it will continue
to serve as the main opposition
party in the legislature.8 It has
been clear that Deuba backed
Dahal in the hopes of securing
a favorable outcome for the
upcoming presidential election
from the Maoist side.
Rabi Lamichhane Loses Member
of Parliament Status
RSP Chair, Rabi Lamichhane,
lost his position as the Member
of Parliament, Deputy Prime
Minister, and Home Minister
on January 27, 2023, after
the Supreme Court ruled that
Lamichhane had failed to reclaim
his Nepali citizenship following
the law.9 The Constitutional
Bench concluded that after
renouncing his American
citizenship, all of Lamichhane’s
actions as a Nepali citizen would
be unlawful because he had used
the citizenship that had been
revoked without obtaining his new
Nepali citizenship. Consequently,
Lamichhane also lost the position
of RSP Chairperson. In the midst
of all of this, he received his
citizenship certificate from the
District Administration Office in
Kathmandu days after and was
re-appointed to the position
of RSP Chair. Questions and
interest are still being raised
by the Lamichhane citizenship
case. While he gave up his US
citizenship in 2018, he utilized
his void citizenship certificate
to acquire a Nepali passport in
2015. According to Section 21
(A) of Nepal's Passport Act 2019,
getting a passport using false
information is a crime subject to
a fine of up to NPR 500,000 (USD
3807.23), a sentence of one to
three years in jail, or both.10
Rastriya Swatantra Party Quits
the Dahal-led Government
RSP currently holds 19 seats in the
lower house after the Supreme
Court’s verdict that stripped RSP
Chairperson Rabi Lamichhane’s
status as one of the Members of
Parliament (MP) and the Home
Minister. However, on February
5, 2023, the RSP decided to quit
the government as Prime Minister
Pushpa Kamal Dahal refused
to return the home portfolio to
the party. A joint meeting of the
RSP’s central and parliamentary
committee decided to recall its
ministers. Three ministers from
the RSP, namely - Shishir Khanal
(Minister of Education, Science,
and Technology), Dol Prasad Aryal
(Minster for Labour, Employment
and Social Security), and Toshima
Karki (Minister of State for
Health and Population) tendered
their resignations. However,
Lamichhane stated that his party
would not withdraw support from
the government to avoid political
instability.11
Rastra Prajatantra Party Quits
the Dahal-led Government
On February 25, 2023, the
Rastriya Prajatantra Party (RPP)
announced that it was leaving
the government due to changes
in the political climate. A joint
meeting of the Central Executive
Committee of the party and
MPs decided to terminate the
coalition and recall every RPP
minister from the Cabinet.12 Four
ministers from the RPP handed in
their resignation letters to Prime
Minister Pushpa Kamal Dahal.
The ministers included Rajendra
Lingden (Deputy Prime Minister
and Minister for Energy, Water
Resources, and Irrigation) along
with Bikram Pande (Minister for
Urban Development), Dhruba
Bahadur Pradhan (Minister for
Law, Justice, and Parliamentary

Affairs,) and Dipak Bahadur Singh
(Minister of State for Energy).13 The
RPP also decided to discontinue
supporting the federal and
provincial governments.
CPN-UML Pulls Out of
Government
The CPN-UML decided to leave
the Pushpa Kamal Dahal-led
government and withdraw its
support to the government on
February 27, 2023, in light of an
altered political landscape in
the lead-up to the presidential
election. The party had earlier
decided to hold off on making a
definitive decision over leaving
the government until after the
March 9 presidential election.
However, following Prime Minister
Dahal's decision to prevent
Foreign Minister, Bimala Rai
Paudyal, from traveling to Geneva
to attend a high-level UN Human
Rights Council session, the party
decided to pull out.14
Seven ministers from the UML
party handed in their resignations.
The ministers included Bishnu
Paudel (Deputy Prime Minister
and Finance Minister), Jwala
Kumari Shah (Minister for
Agriculture and Cooperatives),
2000
1500
1000
500
0
Figure 1: Revised
lB
ta
Federal Budget
To
2022/23 (in NPR
Billion)
Source: The Kathmandu Post17
Bimala Rai Paudyal (Minister
for Foreign Affairs), Damodar
Bhandari (Minister for Industry,
Commerce, and Supply),
Padam Giri (Minister for Health
and Population), Hari Upreti
(Minister for Defense), Bhagwati
Chaudhary (Minister for Women,
Children, and Senior Citizens),
and Rajendra Kumar (Minister for
Land Reforms).
With both CPN-UML and RPP
withdrawing support to the
government, the Dahal-led
government has fallen in minority
with the support of only 77
lawmakers.
Size of the Federal Budget
Reduced
In its half-yearly budget review,
the Finance Ministry decided to
reduce the federal government's
budget by 13.59% for FY
2022/23. The original budget of
NPR 1,793.83 billion (USD 13.65
billion) has been reduced to
NPR 1,549.99 billion (USD 11.80
billion) in the amended budget,
a reduction of NPR 243.83
billion (USD 1.85 billion).15 The
recurrent expenditure budget
was decreased from NPR 1,183.23
Revised Federal Budget 2022/23 (in NPR
Billion)
…
t
l…
ge
nt
ta
ud
re
pi
Ca
cu
Re
Original Budget
NEFPORT ISSUE 52 – MARCH 2023 9
billion (USD 9 billion) to NPR
1,021.92 billion (USD 7.78 billion).
In the first six months, the
government's recurrent expenses
totaled NPR 455.12 billion (USD
3.46 billion). Based on the capital
spending for the first half of the
FY 2022/23, which totaled a
mere NPR 53.45 billion (USD 407
million), the government's capital
expenditure budget was also cut
from NPR 380.38 billion (USD
2.89 billion) to NPR 313.85 billion
(USD 2.38 billion). Likewise, the
financing budget was reduced
from NPR 230.21 billion (USD
1.75 billion) to NPR 214.21 billion
(USD 1.63 billion). The revenue
collection target for the current
fiscal year has also been reduced
from NPR 1,403.14 billion (USD
10.68 billion) to NPR 1,244.75 billion
(USD 9.47 billion).16 Economic
activity shrank as a result of the
COVID-19 pandemic's negative
effects on the world supply chain,
the Russia-Ukraine war, and the
government's import embargo
to protect the dwindling foreign
exchange reserves. Because of all
of these, the revenue collection in
the first half of the current fiscal
year fell short of expectations,
forcing the government to reduce
the budget.
…
g
cin
an
…
Fin
ue
n
ve
Re
Revised Budget
10 DOCKING NEPAL’S ECONOMIC ANALYSIS
Rupak Sapkota appointed
Foreign Affairs Advisor to
Prime Minister
Dr. Rupak Sapkota has been
appointed as Prime Minister
Pushpa Kamal Dahal's Foreign
affairs advisor Following
the decision of the cabinet
meeting held on February 21,
2023, Sapkota, who possesses
a doctorate in international
relations from Renmin University
of China, was appointed to the
position. Dr. Rupak Sapkota is
the son of Agni Prasad Sapkota,
the former speaker of the Upper
House and a member of the
CPN-Maoist Center’s central
committee. Sapkota is a former
deputy executive director at
the Institute of Foreign Affairs
and has been working as a
professor of international affairs
and diplomacy at Tribhuvan
University. He is also a member
of the university’s international
affairs and diplomacy
committee.18
LEGISLATIVE UPDATES
House Regulation Drafting
Committee Agrees to not
Suspend Accused Lawmakers
until Found Guilty
Members of the House of
Representatives regulations
drafting committee have agreed
to add a clause in the proposed
“House of Representatives
Regulation” bill preventing the
suspension of lawmakers who
have been detained or placed
in custody for criminal charges.
The committee decided during
its meeting on February 10,
2023 that no lawmaker should
be suspended until the member
of the legislature has been
convicted by a court of law.
Nonetheless, MPs from the
Nepali Congress, CPN (Maoist
Centre), and CPN (Unified
Socialist) supported suspending
such lawmakers. They believed
that the ruling would convey the
wrong message that only the
general people were subject to
the laws, while lawmakers were
exempt. However, the Rastriya
Prajatantra Party (RPP), Janata
Samajbadi Party (JSP), and
other Madhesh-based parties
opposed suspending MPs before
their conviction. The committee
came to an agreement that the
accused lawmakers would not
be suspended, but they would
not be eligible for perks and
benefits from the parliament
secretariat.19 If the draft provision
is passed by the parliament,
MPs serving jail time would be
allowed to continue serving as
parliamentarians.
ELECTION UPDATES
Election Commission
announces Chitwan-2 By-
Election on April 23
The Election Commission (EC) has
decided to hold the by-election
for Chitwan Constituency-2 for
the House of Representatives on
April 23, 2023. Rabi Lamichhane,
Chair of Rastra Swatantra Party
(RSP) won the constituency with
49,261 votes, defeating Umesh
Shrestha who garnered just
15,0191 votes in the elections
held on November 20, 2022.
However, Lamichhane lost his
position as a lawmaker after the
Supreme Court's Constitutional
Bench invalidated his Nepalese
citizenship on January 27, 2023. 20
The election is being held under
Article 84(7) of the Nepalese
Constitution, which states that
if a House of Representatives
member's seat becomes vacant
while their term is still in effect
for more than six months, a new
election must be held to fill the
vacancy.21 The commission's voter
list update program will run from
February 13 to March 30, and the
date for nominations registration
has been set for April 3.22
Lamichhane will likely be fielded
by the RSP in the constituency
once more. Although the RSP
Chair is the subject of an inquiry
by the police into charges of
possible passport fraud, the
law does not prevent him from
running for office because he has
not yet been found guilty.
Election Code of Conduct for
Presidential Election Comes
into Effect
The Election Commission
(EC) has enforced the code of
conduct for the election of the
President and Vice President
from March 1 until March 19,
2023.23 The new President will
be elected on March 9 and the
Vice President on March 17, by
the decision announced by the
EC on February 28. According to
the constitution, an electorate
will be constituted for both
elections that consist of 332
voters for the federal parliament
and 550 for the provincial
legislature. The EC's decision
states that the code of conduct
applies to the Government
of Nepal and its ministers,
provincial governments and their
ministers, unions, provincial and
local level employees, security
organizations, security personnel,
and employees, as well as
government, semi-government,

and public organizations and
their employees, political parties,
and the fraternal organizations
of those parties, as well as
candidates and candidates'
representatives.24
Ram Chandra Poudel Elected
President of Nepal
Ram Chandra Poudel, a availability, provide up to USD
prominent leader of the Nepali
Congress, was elected as Nepal's
third President on March 9,
2023.25 With President Bidya
Devi Bhandari’s tenure ending
on March 12, the election for the
new President took place on
March 9, 2023. There are 884
members of the electoral college
for the Presidential Election,
including 275 from the House
of Representatives, 59 from the
National Assembly, and 550 from
the seven provincial assemblies.
The vote cast by a member
of the federal Parliament,
including both upper and lower
Houses, has a weightage of 79
votes, whereas the vote cast
by a member of the provincial
assembly has a weightage of 48
votes. This means that a total of
52,786 electoral votes are cast
to elect Nepal’s new president.
Poudel received 33,802 of the
weighted total of 52,628 votes1,
while CPN-UML candidate
Subas Nembang received 15,518.
214 members of the federal
parliament and 352 members
of the provincial assembly cast
votes for Poudel, according to
the Electoral Commission. RPP
and Nepal Majdoor Kishaan
Party lawmakers abstained from
voting. The Nepali Congress,
the CPN (Maoist Centre), the
Janata (Unified
CPN Samajbadi Party Nepal,
Socialist), the
Janata Samajbadi Party Nepal,
the Loktantrik Samajbadi Party
Nepal, the Janamat Party,
and Nagarik Unmukti Party,
Rastriya Janamorcha and Nepal
Samajbadi Party supported
Poudel as their joint candidate.26
BILATERAL AND
MULTILATERAL UPDATES
India Increases Annual Grant to
Nepal through its Budget
India has upped its pledged
annual grant to Nepal by a
significant 29.41%. The grant
amount to Nepal has increased
to NPR 8.8 billion (USD 67 million),
according to Indian Finance
Minister, Nirmala Sitharaman,
who announced on February
1 when announcing the Indian
government's union budget for
the fiscal year 2023/24. India
initially committed NPR 12 billion
(USD 91.37 million) in grants
for 2022/2023, however, that
amount was later reduced to NPR
6.8 billion (USD 51.77 million). India
provided Nepal grants totaling
NPR 7.13 billion (USD 54.29
million) in the year 2021/22. Nepal
received the second-highest
grant pledge among the South
Asian nations following Bhutan.
A pledge of NPR 38.4 billion (USD
292.39 million) has been made
to Bhutan (NPR 26.11 billion (USD
198.81 million) in grants and NPR
12.28 billion (USD 93.5 million)
in loans. India has increased the
amount it had pledged to Sri
Lanka, increasing it to NPR 2.4
billion (USD 18.27 million), citing
the nation's current financial
situation. While Bangladesh's
pledge amount has increased
Afghanistan's annual grant pledge
NEFPORT ISSUE 52 – MARCH 2023 11
has decreased.27
USAID Announces Nearly USD
60 Million in Assistance for
Nepal
On February 7, 2023, USAID
Administrator, Samantha
Power, announced that USAID
would, subject to funding
58.5 million (NPR 7.68 billion)
to support Nepal's democratic
advancement. USD 40.2 million
(NPR 5.28 billion) of this amount
is part of an agreement for USD
659 million (NPR 86.55 billion)
in development objectives that
were announced in 2022.28 Up to
USD 20 million (NPR 2.63 billion) in
investments have been pledged
to support Nepal's municipal and
provincial governments in their
efforts to provide public services
in a more fiscally transparent and
responsible manner. This aims
to improve inclusive democracy
and prosperity in the country.
Additionally, up to USD 18.5 million
(NPR 2.43 billion) is to be invested
to assist independent civil
society groups and media that
are led by and for marginalized
communities like women, young
people, and minorities to advance
their needs, fundamental rights,
and accountability. To further
support free and fair elections,
enhance the rule of law, and
combat human trafficking, USAID
plans to collaborate closely with
and support regional Nepali
organizations and governmental
institutions.29
Budgetary Support Expected
from Development Partners
According to the mid-term
12 DOCKING NEPAL’S ECONOMIC ANALYSIS
review of the Federal Budget,
the government has set a goal
to receive NPR 65.65 billion (USD
499 million) in budgetary support
from major development partners
including the World Bank, Asian
Development Bank, International
Monetary Fund, and European
Union in FY2022/23, to use in the
priority sectors. This represents
around 31% of the overall foreign
Table 1. Budgetary Support by Donors in FY 2022/23
Project
GRID, DPC
Finance for Growth, DPC
Fiscal DPC
Assistance for Higher Education
Strengthening Public Management and
Devolved Service Delivery
SASEC Customs and Logistic Reform
Program
PBL-FSACP
Extended Credit Facility
Contribution to Agriculture and Rural
Development
PROVINCIAL UPDATES
Province 1 Named Koshi
Province
Province 1 has officially been
named “Koshi Province”.32
aid anticipated for the current
fiscal year. The government has
reduced the target for foreign
grants and loans from the initial
target of NPR 297.71 billion (USD
2.26 billion) to NPR 209 billion
(USD 1.59 billion) in the midterm
review of the budget. According
to the finance ministry, the
government has already received
budgetary support of NPR 15
Donor
World Bank
World Bank
World Bank
World Bank
Asian Development Bank
Asian Development Bank
Asian Development Bank
International Monetary
Fund
EU
Despite objections from some
political parties who were
seeking an ethnicity-based
name, the provincial assembly,
on March 1, 2023, accepted the
new name through a resounding
majority. Assembly members
billion (USD 114.217 million);
the remaining funds would be
received in due time for projects
that are nearing completion.
According to the government,
the World Bank has provided NPR
12 billion (USD 91.37 million) in
development policy credit (DPC)
for the Green, Resilient, and
Inclusive Development (GRID)
framework.30
Amount
NPR 12 billion (USD 91.37 million)
(Already received)
NPR 12 billion (USD 91.37 million)
NPR 12 billion (USD 91.37 million)
NPR 1.49 billion (USD 11.35 million)
NPR 13 billion (USD 98.99 million)
NPR 6.50 billion (USD 49.49 million)
NPR 3 billion (USD 22.84 million)
NPR 6.6 billion (USD 50.25 million)
NPR 1.56 billion (USD 11.88 million)
Source: The Annapurna express31
from the Nepali Congress, the
CPN-Maoist Centre, and the
Rastriya Prajatantra Party (RPP)
supported the CPN-UML’s
proposal for the new name.
Koshi is the seventh and final
province of Nepal to receive a

name. Due to disagreements
between the parties over the
suggested names, the provincial
assembly was unable to name
the province during its previous
five-year mandate.33 Biratnagar,
the provincial capital, saw
demonstrations all day long in
protest to the province being
called Koshi. Many ethnic-based
organizations, such as Limbuwan
and Kirant Joint Struggle
Committee, organized protests
at Devkota Chowk to call for the
province's new name to represent
the region's ethnic identity.34
Provinces Spending in the First
Half of the Current FY Remains
Disappointing
The provincial governments
Table 2. State of Provincial Governments' Expenditure (First Six Months)
Province
Koshi Province
Madhesh Province
Bagmati Province
Gandaki Province
Lumbini Province
Karnali Province
Sudurpaschim Province
continue to perform worse
than the federal government in
terms of spending the allocated
budget. For the first half of
the FY2022/23, the provincial
government spent 16.21% of its
total budget, compared to 32%
spent by the federal government.
The midterm evaluation of the
budget for 2022–2023 shows
that provincial governments
spent NPR 49.53 billion (USD
377.14 million) out of the total
NPR 305.5 billion (USD 2.33
billion) that was allotted to them.
The average capital spending for
seven provincial governments
over the first half of the current
fiscal year was 12.45%, according
to the mid-term review.
When it comes to spending
among the provinces, Koshi
Total Expenditure
24.88%
10.90%
15.75%
16.33%
18.44%
13.04%
14.28%
NEFPORT ISSUE 52 – MARCH 2023 13
Province comes out on top. The
Koshi Provincial government
spent 24.88% of its overall
budget and 19.27% of its capital
budget. Madhesh Province had
the least overall expenditure,
i.e. 10.9%. Nevertheless, Karnali
Province had the least capital
expenditure – a mere 9% of the
budgeted capital expenditure.35
Capital Expenditure
19.27%
10.24%
10.46%
13.82%
14.75%
9.08%
10.91%
Source: The Annapurna express36
14 DOCKING NEPAL’S ECONOMIC ANALYSIS

International FACTSHEET

Economy Global inflation in 2023 (expected)

2.9%37

In the review period, the battle against inflation and Global inflation in 2023 (expected)
6.538
Russia's war in Ukraine has weighed on economic activities
globally, keeping growth low and sluggish. Some of the
Global Multidimensional Poverty
negative incidents, such as rising inflation, abrupt hikes Index
19.1%39
in interest rates, and growing geopolitical tensions, could
trigger a global recession given the precarious economic
World Population
conditions. Two worldwide recessions occurring within 8.04 billion40 (as of February
the same decade would be the first in more than 80 2023)

years.47 Due to the high inflation, which averaged over 9%

Food Price Index
in late 2022, monetary expenditure has been constricted 131.241
in several developed and developing countries. High levels
of private and governmental debt have resulted in tighter Total Global Debt
financial conditions, which have raised debt servicing USD 300 trillion42 (as of June
2022)
costs, reduced budgetary space, and raised sovereign
credit risks. Fast increases in interest rates by the US Food Price Inflation
Federal Reserve have led to capital flight and currency +28%43 (since January 2020)
devaluation in developing nations, escalating balance-
of-payment pressures and heightening problems Energy Price Inflation
23%44 (since January 2020)
associated with debt sustainability. The review period
was, thus, marked by high inflation, declining purchasing Shipping Price Inflation
power, appreciation of the US dollar, continuing energy -26%45 (since January 2022)
crisis, and annual international meetings of international
organizations. However, the global economy is experiencing Coronavirus vaccination (at least
one dose vaccinated)
unexpectedly strong household consumption, business 72.3%46
investment, and economic growth due to the European
energy crisis’s greater resilience than anticipated,48 but it needs more strengthening
and consistency.

ECONOMIC CRISIS
UPDATES
Subpar Global Growth
According to the World Bank’s
latest Global Economic Prospects
report released in January 2023,
the global economy is predicted
to grow by 1.7% in 2023 and 2.7%
in 2024.49 The forecasts for 2023
have been revised downward for
95% of advanced economies and
roughly 70% of emerging market
and developing economies,
indicating that the significant
slowdown in growth is projected
to be rife. The 2023 projection is
0.2 % points higher in comparison
to the forecasts of the World
Economic Outlook (WEO) for
October 2022, although it is
still below the historical (2000-

2019) average of 3.8%.50 Likewise,
global inflation is predicted to
decline from 8.8% in 2022 to
6.60% in 2023 and 4.30% in 2024,
remaining above pre-pandemic
levels of roughly 3.50% (2017-
2019).51
In emerging markets and
developing economies, per-
capita income (PCI) growth is
anticipated to average 2.8%
during the next two years, which
is a full percentage point less
than the average for the period
2010–2019. It is predicted that
growth in advanced economies
will decrease from 2.5% in 2022 to
0.5% in 2023.52 Slowdowns of this
size have predicted a worldwide
recession over the next 20 years.
At this rate, poverty rates may
increase rather than decline.
Impact of the US Dollar
In 2022, the US central bank
raised its interest rate to its
highest level in the last 15 years.
The overnight borrowing rate was
increased by half a percentage
point by the Federal Open
Market Committee, bringing it
to the range of 4.25% to 4.5%.53
For the first time in decades, the
US dollar skyrocketed nearly 10%
and almost reached the same
level as the Euro.54 However, in
February 2023, the US central
bank announced that it would
stop increasing interest rates
to avoid a potential economic
downturn, providing relief to the
rest of the world.
When the US Federal Reserve
relaxes its rate policies, it will
also be flexible to other forms of
financial strain. This will be a big
boon to developing countries as
it will make it easier for them to
attract international investment
and opportunities. Especially,
Africa, Latin America, and Asia
have the opportunity to increase
their per capita growth and
stabilize their exchange rates as
a result of the low-interest rates
of the US dollar.
Global Prosperity Gamble
A year of conflict in Ukraine
resulted in a severe negative
impact on the global economy.
The Russia-Ukraine war added
fresh uncertainties to the
COVID-19 pandemic's economic
distress, which had already
resulted in record-high public
debt increases, cost-of-living
difficulties fueled by inflation,
and labor shortages in crucial
industries.55 As a result of the war's
effects on demand and pricing,
as well as other policy initiatives,
these growth-restraining factors
were observed throughout the
world.
According to the International
Monetary Fund (IMF), the global
economy expanded by 3.4% in
2022, which was only 0.1% less
than what had been predicted
before the conflict. The global
economy must wait and see if
global growth can now equal IMF's
2.9% projection for 2023.56 This
revised estimate is significantly
greater than the 2.1% consensus
forecast of private economists
surveyed by Reuters, which was
much more pessimistic.57 The
World Trade Organization (WTO)
estimates that if the Western
countries keep sanctions against
Russia, the global output could
decrease by up to 7% and trade
could fragment into adversarial
trading blocs.58 This could prove
to be a slippery predicament as
NEFPORT ISSUE 52 – MARCH 2023 15
long-term economic prosperity
and goodwill will be shaken to its
core.
INTERNATIONAL
FINANCIAL UPDATES
IFC releases its Economic
Resilience Action Program
to aid Ukraine
The World Bank Group launched
a new USD 2 billion (NPR 262.658
billion) package of help for the
Ukrainian private sector, led
by the International Finance
Corporation (IFC),59 as a result of
Russia's invasion of Ukraine.
The Economic Resilience Action
(ERA) program of the IFC serves
as the operational foundation
for its short-term advisory and
investment activities. The USD
2 billion (NPR 262.658 billion)
response package combines
financial support from IFC's
account with government-
donor-backed guarantees. The
ERA gives IFC a framework to
meet the financial needs of
the private sector throughout
the war and get ready for the
reconstruction phase.
The ERA concentrates on ensuring
access to essential products and
services throughout the war and
the early stages of reconstruction.
It provides emergency liquidity
support for trade financing
and agriculture, including fuel
imports. Maintaining economic
activity, assisting critical
economic infrastructure, such
as agricultural trade routes and
logistics, and meeting the needs
of displaced individuals and
affected towns are additional
key areas for the program at
this point. The IFC will also start
16 DOCKING NEPAL’S ECONOMIC ANALYSIS
laying the groundwork for private
investment in reconstruction
along with the World Bank and
the Government of Ukraine.60
INTERNATIONAL TRADE
UPDATES
A Decade of Stagnation in
Global Trade
According to a 2023 analysis by
the Business Standard, the war
in Ukraine will change strategic
alliances and the flow of cross-
border trade. This will result in
slower growth in international
trade compared to the global
economy for the majority of the
next decade. It is predicted that
through 2031, the annual growth
rate of global commerce will be
2.3%, while the average annual
growth rate of the global Gross
Domestic Product (GDP) will be
2.5%.61
Currently, the world is
experiencing a new East vs.
West dynamic, with a US and
EU-led community and a China-
Russia counterpart, as well as
the potential appearance of a
third grouping of non-aligned
countries, after nearly 30 years
of relatively peaceful trading
climate.62 Forecasts from the
Boston Consulting Group (BCG)
predict that the next 9 years of
trade upheaval will cause Russia’s
trade with China and India to
grow by USD 110 billion (NPR 14.44
trillion), including USD 90 billion
(NPR 11.81 trillion) with China alone.
In addition, with an anticipated
USD 1 trillion (NPR 131.3 trillion)
in new trade, Southeast Asia will
mostly benefit from expanded
trade with China, Japan, the US,
and the EU.63
India-China Trade Deficit
Crosses a New High
In December 2022, the trade
between India and China
touched an all-time high of
USD 135.98 billion (NPR 178.59
trillion).64 Nevertheless, New
Delhi's trade deficit with Beijing
also surpassed USD 100 billion
(NPR 131.32 trillion). The total
India-China trade for 2022 was
8.4% higher than the USD 125
billion (NPR 164.16 trillion) mark
in 2021.65 China's exports to India
increased by 21.7% year over year
(YoY) to USD 118.5 billion (NPR
155.62 trillion). India's exports to
China decreased to USD 17.48
billion (NPR 229.56 trillion) during
the same time which represented
a decrease of 37.9% YoY.66
India's trade deficit increased
from USD 69.38 billion (NPR 911.16
billion) in 2021 to USD 101.02 billion
(NPR 132.66 billion) in 2018.67 With
this growth of approximately 46%
YoY, India's trade imbalance with
China has officially surpassed the
USD 100 billion (NPR 131.32 billion)
threshold.68 Similarly, trade with
China as a whole reached USD
125.62 billion (NPR 164.42 billion)
in 2021, up 43.32% YoY and
surpassing the USD 100 billion
(NPR 131.32 billion) threshold
for the first time.69 This could
lead to significant economic
and social effects, including
current account imbalances,
job losses, hindering economic
growth, dependence on foreign
countries, trade tensions, and
exchange rate pressures.
KEY HIGHLIGHTS OF
INTERNATIONAL REPORTS
Global Risks Delay Economic
Development
The World Economic Forum
(WEF) released its 18th edition
of the Global Risks Report, titled
Global Risks Report 2023. The
study is supported by the WEF’s
annual Global Risks Perception
Survey, which compiles the best
advice from more than 1,200
experts throughout the diverse
network of the WEF. It highlights
several sectors suggesting how
the world is at a crucial turning
point. It is a call to action to
prepare for the next potential
global disaster and pave the way
for a more peaceful, resilient
future.70
According to the report, the
global economy is heading
towards a wide spectrum of risks
that are both entirely new and
uncannily familiar to the Great
Depression (1929–1939). The
combination of old risks, such
as inflation, cost-of-living crises,
and trade wars, and new risks,
such as unsustainable levels of
debt and growing pressure of
climate change impacts, could
spell irreversible disaster if not
treated strategically and on
time.71
The 18th edition of the Global
Risks Report highlights the
perceived dangers to economies
and society that could spell
irreparable disaster if the brewing
geopolitical tensions and the
convergence of socioeconomic
threats are not resolved soon.72

Managing Cross-border
Mobility Ensures Sustainable
Growth
‘The World Development Report
2023: Migrants, Refugees, and
Societies’ released by the World
Bank Group predicts that global
dynamics influencing migration
and forced displacement can be
mitigated and controlled through
various techniques, regulations,
and initiatives. People from
developing nations, comprising
the vast majority of the 295
million individuals who live
outside of their country of birth,
are predominantly involved in the
cross-border movement.73
The report states that more than a
third of the 260 million economic
migrants and more than 85%
of the 35 million refugees and
asylum seekers globally choose
to settle in developing nations.74
Although refugees—those who
have been forcefully displaced
abroad—make up 40% of the
total number of displaced people,
they only account for roughly
0.5% of the global population.75
Voluntary migration makes up
only about 3% of the world's
population, significantly less than
what actual welfare disparities
between nations have implied.76
Cross-border mobility can help
to ensure sustainable growth
by facilitating trade, knowledge
exchange, investment, human
development, and cultural
exchange.77 By promoting
international cooperation and
collaboration, cross-border
mobility can help to address
global challenges and create a
more sustainable future.
Rising Inflation Causing
Worldwide Wage Decline
The Global Wage Report 2022-
23 released by the International
Labour Organization (ILO) reveals
that the COVID-19 pandemic
initially had a significant negative
impact on wages and household
purchasing power, followed by a
global increase in inflation as the
global economy began to recover
from that crisis.78 The ILO report
indicates that rising inflation
is driving real wage growth to
drop into negative numbers in
several nations, decreasing the
purchasing power of the middle
class and particularly affecting
low-income individuals.
The report states that the
COVID-19 outbreak which
had the greatest impact on
low-income groups in many
countries, resulted in significant
wage bill reductions for workers
and their families, in addition to
the current cost-of-living crisis.
Without appropriate policy
responses, real earnings for
workers and their families might
sharply decline shortly, leading to
greater inequality and possibly
jeopardizing the global economic
recovery. According to the
research, global monthly earnings
decreased in real terms by 0.9%
in the first half of 2022.79
KEY DEVELOPMENTS
Highs and Lows of Global Trade
The latest United Nations
Conference on Trade and
Development (UNCTAD)’s Global
Trade Update highlights raising
NEFPORT ISSUE 52 – MARCH 2023 17
concerns about the value of
global trade decreasing in the
first quarter of 2023 both for
goods and for services. In 2022,
the UNCTAD updates anticipated
that global trade would hit a
record high of roughly USD 32
trillion (NPR 4202.53 trillion).
The updates further estimated
the value of goods traded to
be close to USD 25 trillion (NPR
3283.23 trillion), an increase of
about 10% from 2021.80 During
the third quarter of 2022, trade
in goods declined by about 1%
relative to the second quarter of
2022. However, trade in services
increased by about 1.3% during
the same period.81
The update also shines some
positive prospects. Global
ports and shipping companies
have been accustomed to the
challenges presented by the
COVID-19 pandemic. More
ships are already entering
service, as a result, clearing up
port congestion. Additionally,
new trade agreements such as
the Regional Comprehensive
Economic Partnership and the
African Continental Free Trade
Area can materialize and provide
international trade some pace.
Recalibration of the Aid System
The Organization for Economic
Co-operation and Development
(OECD) released a report on
strategies and programs to
keep international development
cooperation impactful during
challenges. The 60th-anniversary
edition of the Development
Cooperation Report examines the
issues of international aid systems
18 DOCKING NEPAL’S ECONOMIC ANALYSIS
and makes recommendations
along four action axes:
modernize business models
and financial management
procedures; support locally
led transformation in partner
countries; unlock progress to
deliver existing commitments;
and rebalance power dynamics
in global decision-making and
partnerships.82 According to
the report, more transparency
about aid distribution and its
connection to development
finance is requested by the
Global South, further igniting
the discussion about how to
assess and track such monetary
efforts. Developing nations are
working to partner with all OECD
providers and Group of Twenty
(G20) nations to meet their
requirements, eligibilities, and
priorities for international aid.
High Electricity Prices and
Economic Uncertainty
The International Energy Agency
(IEA) states that despite the
economic slowdowns and energy
crises, the global electricity
demand may remain resilient in
2023. For the years 2023-2025,
the world's electricity demand
is anticipated to increase at
a rate of 3% annually, which
is significantly faster than the
growth rate of 2022.83 In 2022, the
European Union's (EU) electricity
consumption fell sharply by 3.5%
YoY, as the region was severely
hit by high energy prices that
substantially reduced demand
from industrial consumers.84
Electricity security needs
more focus in a world where
both supply and demand
for electricity are becoming
increasingly climate-dependent.
While COVID-19 limitations had
an impact on China's growth, the
electricity demand increased
in both India and the US, two of
the leading giants of the world.
Between 2023 and 2025, it is
predicted that China will account
for about 45% of the growth in
renewable generation, with the
EU coming in second place with
15%. It is anticipated that by
2025, renewable energy sources
would account for 35% of the
world's electricity generation, up
from 29% in 2022.85
GLOBAL EVENTS UPDATE
World Economic Forum (WEF)
Annual Meeting 2023
From January 16-20, 2023,
global leaders gathered in Davos
Klosters, Switzerland for the
WEF’s annual meeting. With an
overall theme of “Cooperation in
a Fragmented World”, pressing
topics like inflation and rising
debt were among several that
gained the spotlight.86 The
meeting constituted five sub-
themes: resilience, sustainability,
reimaging globalization, inclusion,
and space economy. Participants
noted that geopolitical
competition, technology
decoupling, and protectionism
have all altered the corporate
and political environment of the
world, posing both challenges
and opportunities.87
The annual meeting stressed
doubling down on improved
weaponry and financial help
for Kyiv to protect itself against
Russia’s attack, according to the
country's allies. Nonetheless,
concerns about an economic
slowdown outside of the West
showed global tensions, and
several delegates urged a hasty
return to the bargaining table.88
Despite facing external variables
like cybersecurity threats, there
was more pressure on leaders
to finance the global shift to
a greener future much more
quickly than they have been
doing thus far.
India's Budget 2023/24
On February 1, 2023, the Indian
Minister of Finance delivered
India's 2023 Union Budget. This is
the fourth budget in the second
term of the Narendra Modi-led
National Democratic Alliance
NDA administration, which began
in 2020.89 Before the budget, the
Economic Report for 2022–2023
was published on January 31,
2023.
The Indian government released
its spending plan for the
upcoming fiscal year, which
will begin in April 2023. To spur
economic growth while reducing
the fiscal deficit ahead of the
country's 2024 elections, the
budget is worth INR 45 trillion
(USD 544.96 billion) of which
total capital expenditure is INR 10
trillion (USD 121.10 billion).90 The
new budget is higher compared
to the third budget which was
INR 39.45 trillion (USD 477.90
billion).91
Turkey-Syria earthquakes
On February 6, 2023, earthquakes
with magnitudes 7.8 and 7.6
shook Southeast Turkey and
neighboring Syria, killing about
48,000 people and displacing
one million.92 Nearly 140,000
buildings collapsed and more than
115,000 people were injured.93
The calamity is likely to cost
 NEFPORT ISSUE 52 – MARCH 2023 19

the economy tens of billions of
dollars in reconstruction efforts.94
Two weeks after the region
was devastated by quakes and
tremors, two earthquakes with
magnitudes 6.4 and 5.8 hit the
Turkey-Syria border additionally.
The initial earthquakes triggered
widespread destruction in
Southern Turkey and Northern
Syria.
Turkey frequently experiences Development (EBRD), as Turkey
powerful earthquakes due to has the 19th largest economy in
its location near tectonic plate the world, global repercussions
borders. In the past 25 years, the of the earthquake in Turkey could
nation has had seven earthquakes cause a loss of up to 1% of the
with a magnitude of 7.0 or nation's GDP this year.96
higher, but the one on February
6 was the most devastating
and powerful so far.95 According
to a report by the European
Bank for Reconstruction and

Outlook
Due to tighter financial conditions, geopolitical risks, and inflation, global economies will continue
to experience a variety of macroeconomic challenges. It is anticipated that the rate of global
economic development will continue to decelerate, while cities will experience modest increases
in consumer spending. Global supply chains will likely recover and commodity prices will likely
decline, but inflation risks on the upside will persist. Pharmaceuticals, food and beverage, and
other sectors are also anticipated to be resilient, while the forecast for energy-intensive industries
remains challenging.

The existing multilateral institutions are being put to the test by the pandemic, energy crisis,
climate dangers, and the impending debt crisis in many developing nations. There is a need for
international cooperation to address the numerous crises facing the globe and get it back on track
for accelerating the Sustainable Development Goals (SDGs) as well as each country’s respective
growth agendas. Business leaders must equip for rising inflation, increasing interest rates, and
shrinking GDP, all of which are combined with low unemployment rates and high demand for skills.
 2
20 DOCKING NEPAL’S ECONOMIC ANALYSIS

Macroeconomic
Overview
 NEFPORT ISSUE 52 – MARCH 2023 21

Macroeconomic FACTSHEET97

Overview Particulars

GDP at current
prices*
Amount/
Percentage

NPR 4.85
trillion

During the review period, the macroeconomic indicators Year-on-year CPI 7.26%
indicated a rise in the cost of goods and services, which was
Food and
5.62%
reflected in an increase in inflation, with further increments beverage CPI
anticipated over the next three months. In addition, while Non-food and
8.57%
foreign aid commitments to Nepal increased, net foreign service

direct investments decreased by more than 90%, indicating Net Foreign Direct
Investment NPR 2.55 billion
a mismatch between actual investments received by the
country and commitments made. In addition to a widening Remittance NPR 585.07
inflows billion
trade deficit and a negative balance of payments, the gross
foreign exchange reserves were seen to be shrinking. The Gross foreign
exchange reserves NPR 1.33 trillion
high government expenditures relative to revenues are also
indicative of the country's dire situation. Similarly, the review Total Domestic NPR 964.18
Debt million
period highlighted the mid-term review of the budget for
the current FY 2022/23, which lowered the revenue and Total External Debt NPR 1.02 trillion
expenditure targets from the previously stated amounts Government NPR 576.35
due to political instability, policy inefficiencies, and expenditure billion
project extensions, among other factors. In this situation, Government NPR 458.99
contractionary monetary policy has been continued by the revenue billion

central bank for the upcoming months; however, enhanced NPR 80.81
Total exports
domestic production, domestic demand, and good billion

governance are urgently required to reach the estimated Total imports NPR 792.67
billion
growth target of 8% by the end of FY 2022/23.
Total trade (NPR 711.86
balance billion)
Gross Domestic Product (GDP) FY 2020/21.98 This indicates an
encouraging 13.42% increase Current Account (NPR 29.5
billion)
According to the ‘Current despite bleak macroeconomic
Macroeconomic and Financial indicators in the FY. Balance of NPR 97.09
Situation’ released by the central In addition to this, NRB released Payment billion
bank of Nepal, Nepal Rastra the national quarterly GDP by *Annual data of FY 2021/22 ending mid-July
Bank (NRB), on 16 August 2022, economic activities (at the 2022

the Gross Domestic Product
(GDP) at current prices stood
at NPR 4.85 trillion (USD 36.93
billion) in the twelfth month of
FY 2021/22 in comparison to NPR
4.27 trillion (USD 32.51 billion)
in the corresponding period of
basic price of FY 2010/11) for its economic activities such as
first quarter (mid-July to mid- agriculture, manufacturing,
October 2022)99 in January accommodation and food
2023. The report gives insights service, mining, construction, and
into the seasonally adjusted others. Figure 1 below shows the
and unadjusted growth rate trend of the growth rate over the
of national quarterly GDP by last decade.
22 DOCKING NEPAL’S ECONOMIC ANALYSIS

18.55
12.9

10.4
9.6
7.5

7.4
Figure 2. Seasonally

6.78
(IN PERCENTAGE)
adjusted and

3.71
unadjusted growth

3.1

3.0
2.7

-1.21
2.27
2.12

1.48
-1.35
1.31

-1.55
1.18
rate of national

-0.86

0.9

0.8
0.7
quarterly GDP by
2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

2022/23
economic activities
(at basic prices
of FY 2010/11) in
percentage

-7.4
Source: Current Macroeconomic FISCAL YEAR
and Financial Situation of Nepal
(ending mid-Jan 2023) Seasonally Adjusted Seasonally Unadjusted

Seasonally adjusted data allows there has been a significant prioritizing agriculture, industrial
for more meaningful comparisons decrease in the growth rate in development, hydroelectricity,
of economic conditions across FY 2022/23 due to a reduction and transmission line expansion,
different industries in various in economic activities related and boosting foreign investment
periods than unadjusted data. to manufacturing (-20/30%), and tourism.
As per the figure above, the construction (-18.02%), and
seasonally adjusted growth (-6.65%) among many others.101 In light of this, the government of
rate was significantly high in FY The reduction in the earlier Nepal should place its immediate
2020/21 owing to an increase increasing economic activities focus on targeting the most
in wholesale and retail trade was majorly due to a rise in affected economic activities
(93.08%), accommodation inflation, election-induced mentioned above to restore
and food service (88.41%), and spending, and surging political the path to steady growth
construction (33.03%), whereas as well as geopolitical pressures. and achieve the World Bank-
agriculture and manufacturing It is also in strong contrast to forecasted GDP growth rate of
grew by only 3.97% and 16.40% this FY’s budget objective of 5.8% in FY 2022, 5.1% in 2023 and
respectively.100 After FY 2020/21, making Nepal self-reliant by 4.1% in 2024.102

8.00 7.26
6.82
7.00
5.65
6.00
Y-O-Y CPI (IN PERCENTAGE)

5.00 4.58
4.00
4.00 3.56

3.00
Figure 3. Year-on-
year CPI as of mid- 2.00

January of the last 1.00

six FYs (in %)
0.00
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Source: Current Macroeconomic
and Financial Situation of Nepal UNTIL MID-JAN OF FISCAL YEAR
(ending mid-Jan 2023)

Inflation
The average inflation rate is
measured by Consumer Price
Inflation (CPI). As per the data
released by the NRB, the year-
on-year CPI stood at 7.26% in
the sixth month of the current
FY 2022/23 ending mid-January
2023 compared to 5.62% in the
corresponding period of the
previous FY 2021/22.103 While
there has been a notable 29.18%
decrease in the inflation rate, it
is worth noting that inflation has
increased by multi-folds since
the past FYs as shown in Figure
2 below.
During the last quarter of FY
2021/22 and the second quarter
of FY 2022/23, the political
Table 3. Food and
Non-food Consumer
Price Index over two
consecutive periods
(in percentage)
Source: Current Macroeconomic
and Financial Situation of Nepal
(ending mid-Jan 2023)
The changes in the consumer
price index during the review
period have been attributed to
the rise in food and beverage
inflation from 4.92% in 2021/22
to 5.62% in 2022/23. Within
food and beverage, the price of
restaurant and hotel, tobacco,
milk products and eggs, cereal
grains and products, and
alcoholic drinks sub-groups rose
15.56%, 11.81%, 9.70%, 9.56%, and
8.84% respectively on a year-on-
year basis.
Likewise, the review
parties had injected billions of
rupees into the economy and
spent excessively on marketing
campaigns to woo and lure voters
for the local and general elections
conducted on 13 May 2022 and
20 November 2022 respectively.
This had led to an increase in
inflation majorly, among many
other reasons.104 With the effects
of the election cooling down in
this review period, inflation has
shrunk to 7.26%. If this trend
continues, the government may
be successful in achieving its
inflation target of 7% laid out
in the budget statement of the
current FY.
However, contrary to this
anticipation, the Inflation
Expectations Survey conducted
Nov/Dec Dec/Jan
Headings
2021 2021/22
Consumer Price Inflation 3.56
Food and beverage 4.27
Non-food and service 2.99
also witnessed an increase in
non-food and service inflation,
represented by a rise from 6.23%
in 2021/22 to a significant 8.57% in
2022/23. Under this, the prices of
transportation, health, recreating
& culture, miscellaneous goods
& services, and furnishing &
household equipment rose by
16.43%, 11.22%, 8.76%, 8.68%, and
8.33% respectively on a year-on-
year basis.108
While the limited domestic
production capacity of Nepal,
period fueled by high petroleum prices,
NEFPORT ISSUE 52 – MARCH 2023 23
by NRB among 2010 respondents
from 60 market areas through
field interviews, and published
on February 15, 2023, revealed
that 84.6% of individuals expect
inflation to increase in the coming
three months.105
Consumption of Goods and
Services
The Consumer Price Index is a
measurement to calculate the
weighted average price of a
basket of consumer goods and
services.106 The basket of goods
refers to a fixed set of consumer
products and services whose
prices are evaluated regularly.107
Table 1 shows the pattern of
consumption over a series of two
consecutive periods.
Nov/Dec Dec/Jan
2022 2022/23
5.65 7.38 7.26
4.92 5.85 5.62
6.23 8.59 8.87
high cost of doing business,
and high-interest rates of banks
majorly have led to an increase
in consumer prices109, there are
several other inconsistencies
as well. For instance, there are
also notable cases of policy
inefficiencies in the food market
of the country. For instance,
although the National Dairy
Development Act and Policy
allows a hike in the market prices
of milk once every two years,
the Ministry of Agriculture and
Livestock Department (MoALD)
has proposed the National Dairy
24 DOCKING NEPAL’S ECONOMIC ANALYSIS

Development Board increase the current FY 2022/23 amounting on February 15, 2023, revealed
prices of milk by NPR 14 (USD to NPR 1.793 trillion (USD 13.65 that the Ministry has only spent
0.106) per liter from NPR 10 (USD billion) on May 29, 2022.111 The 32.13% of the total budget, i.e.,
0.076) per liter.110 As a result, the budget targeted achieving NPR 506.78 billion (USD 3.85
prices are set to increase from economic growth of 8% by billion), until six months of the FY
doubling exports and reducing (mid-January 2023).112 The table
March 2023. Due to some of
imports by 20%. Likewise, it also below shows a breakdown of the
these reasons, consumer prices
aimed at curbing inflation to 7% amounts envisaged in the budget
for goods and services have risen
while also generating meaningful initially and the spending till the
in the review period.
implementation by enhancing six months.
domestic production in the
Mid-term Review of Budget for economy.
Current FY 2022/23
In this regard, the mid-term
The Ministry of Finance (MoF) budget review of the current FY
released the budget for the 2022/23 released by the MoF

Table 4. Comparison of budget from targets till mid-term spending

Spending till six Percentage change in

Targets
months (mid-Jan) comparison to the target
(in NPR billion)
(in NPR billion) (in %)
Particulars

FY FY FY FY FY FY
2021/22 2022/23 2021/22 2022/23 2021/22 2022/23

Recurrent expenditure 1065.29 1183.23 4065.47 4551.27 38.16% 38.46%

Capital expenditure 378.09 380.38 507.59 534.55 13.43% 14.05%

Financing 189.43 230.21 494.74 677.65 26.12% 29.44%

Total budget 1632.82 1793.83 5067.82 5763.47 31.04% 32.13%

Source: Mid-term review of budget FY 2022/23, Ministry of Finance

SIX MONTHS OF FY

FY 2022/23 38.46% 14.05% 29.44% 32.13%

Figure 4.
Comparison of
budget from FY 2021/22 38.16% 13.43% 26.12% 31.04%
targets till mid-
term spending
PERCENTAGE SPENDING TILL SIX MONTHS OF FY (OUT OF TOTAL BUDGET ALLOCATED)
Source: Mid-term review
of budget FY 2022/23,
Ministry of Finance Recurrent expenditure Capital expenditure Financing Total budget
 NEFPORT ISSUE 52 – MARCH 2023 25

Citing reasons that the new and economic growth but to stand at NPR 1.549 trillion
government formed after have been unable to do so, (USD 11.79 billion).113 It has been
elections were supposed to Finance Minister Bishnu Poudel illustrated in Table 3.
mobilize more resources to meet announced that the MoF will
people’s desire for development reduce the budget size by 13.59%

Table 5. Revised estimates of the budget for the current FY 2022/23

(In NPR billion)

Particulars Percentage change
Initial target Revised target

Recurrent expenditure 1183.23 1021.92 -13.63%

Capital expenditure 380.38 313.5 -17.58%

Financing 230.21 214.21 -6.95%

Total budget 1793.83 1549.99 -13.59%

Source: Mid-term review of budget FY 2022/23, Ministry of Finance

In addition, the revenue • Reprioritizing expenses as well as operating methods

collection target envisaged in by maintaining frugality in have not yet been enacted.
the budget has also been revised current expenses,
and reduced to NPR 1.244 trillion Finance Status
(USD 9.472 billion) from earlier • Suspending (whole or in
NPR 1.403 trillion (USD 10.63 parts) projects or programs Investments
billion).114 Further, although the where standards, procedures,
government did not revise the and guidelines as well as In the review period, the net
economic growth rate of 8%, operating methods have not Foreign Direct Investment
Finance Minister acknowledged been approved so far, and
(FDI) reached NPR 79.6 million
that the growth target seems (USD 0.606 million) in the mid-
unachievable. Since this poses • Restricting the
month ending January 2023
a grave concern regarding the implementation (fully or
in FY 2022/23 from NPR 11.34
sustainability of economic partially) of projects or
programs where standards, billion (USD 86.34 million) in
growth and targets set by the
government, there is a need for115 procedures, and guidelines the corresponding period of

2022/23 749.4

2021/22 11,344.2
Figure 5. Net
UNTIL MID-JAN OF FY

foreign direct 2020/21 7,659.2

investments in
2019/20 12,203.8
Nepal until mid-
Jan for seven 2018/19 4,358.9
consecutive FYs (in
2017/18 14,334.9
NPR million)
2016/17 7,393.1
Source: Current
Macroeconomic and
Financial Situation of Nepal NET FDI (IN NPR MILLION)
(ending mid-Jan 2023)
26 DOCKING NEPAL’S ECONOMIC ANALYSIS
the previous FY 2021/22.116 This
indicates a decrease of 93.4%
compared to an increase of 48.1%
respectively. Figure 3 depicts the
change in net FDI in Nepal until
mid-Jan of seven consecutive
FYs.
With Nepal’s graduation from the
Least Developed Country (LDC)
category to a developing country
by 2026 as per the decision
of the United Nations General
Assembly (UNGA) in November
2021, the country must formulate
a transition strategy to ensure
that the graduation is smooth and
sustainable, and the remaining
criteria of the three criteria of
graduation (i.e., achieving per
capita income threshold of USD
1,222 (NPR 160,484) from its
Figure 6. Aid
disbursement of
donor agencies
from December 1,
2022, to February
28, 2023 (in %)
Source: Ministry of
Finance, 2023
German Development
Cooperation (GIZ), and others.119
While USAID remains the largest
donor agency for Nepal, there
seems to be no report of aid
disbursement from the Swiss
current USD 1,027 (NPR 134,875).117
For this, experts state that FDI
plays a crucial role in fostering
growth, level of domestic wages,
distribution of income, and
many more.118 However, the state
of the net FDI that has been
depicted in Figure 3 looks bleak
due to a significant decrease in
investment.
Some of the possible reasons
behind such a significant
decrease could be the long
gestation period between
actual FDIs and approvals, lag
in implementing encouraging
policies (such as lowering the
minimum threshold for FDI took
five months for implementation),
and others. Hence, to tackle this,
the Government of Nepal should
5.70%
9.60%
16.30%
21.70%
Others USAID
Agency for Development and
Cooperation (SDC) in this review
period, which was the second-
largest donor accounting for 14%
in the last review period.120 As
per the Ministry of Finance, the
place its immediate focus on
decreasing the gap between
actual FDIs and approved
FDIs, shortening the gestation
period of approvals and actual
investments, and implementing
more investor-friendly FDI
policies.
FOREIGN AID
Bilateral and Multilateral Aid
Aid Disbursement from Donor
Agencies
During the review period, Nepal
received aid from a multitude
of donor agencies such as the
U.S. Agency for International
Development (USAID), the
United Nations Development
Programme (UNDP), Norway,
23.40%
23.30%
Norway WVI UNDP GIZ
breakdown of the disbursements
of the donor agency support
has been presented in the chart
below:

European Union to Provide
Humanitarian Funding
Assistance
The European Union (EU)
provided approximately NPR
27 million (USD 0.205 million)
as humanitarian assistance
to Nepal. The funding by the
121
EU targeted 11,000 families in
the Sudurpashchim Province
which faced the most damage
to their houses as a result of
the earthquake that occurred
in November. The amount is
anticipated to be used in the
provision of shelter materials
(tarpaulins, blankets, and
mattresses), and the construction
of latrines as well as water supply
facilities. In addition, the affected
families will also be provided with
cash grants to cope with the
damages and meet their basic
needs. The funding comes as a
part of the larger contribution
by the EU under ‘The Disaster
Response Emergency Fund
(DREF)’, of the International
Federation of Red Cross and Red
Crescent Societies (IFRC).122
South Korea to Increase its Aid
to Nepal
With the bilateral relations
between Nepal and South Korea
approaching its golden jubilee
in the coming year 2024, the
Government of South Korea is keen
on increasing its development
assistance to Nepal. From FY
2016/17 to FY 2020/21, South
Korea disbursed USD 38 million
(NPR 4.990 billion) to Nepal.123
An increment in this aid provides
more areas of opportunities for
Nepal in five specific sectors in
which South Korea is particularly
interested, namely, education,
health, planning and statistics,
agriculture, and earthquake
reconstruction. In addition, South
Korea also aims to explore further
areas of improving the bilateral
relations such as through policy
engagement, specific events,
increasing migrant workers to
South Korea, technology transfer,
and others.124
UNDP Partners with Chinese
NGO to Implement Programs in
Nepal
For the first time, the United
Nations Development
Programme (UNDP) has
partnered with a Chinese NGO,
named China Foundation for
Rural Development (CFRD), to
implement a Chinese-funded
program in Nepal.125 CFRD is
affiliated with the Social Welfare
Council in Nepal.
The program titled ‘Support
for Schools and Communities
in Remote Areas for Pandemic
Prevention and Green Recovery’
is set to be implemented in
Madhesh Province in 2023. The
objective is to improve the quality
of education in the province.126
The program will receive funding
from the Global Development
and South-South Cooperation
Fund Project, established under
China’s Global Development
Initiative (GDI) Programme in
September 2021. Likewise, the
UNDP, having been selected as a
partner, will receive around USD
1.5 million (NPR 196.994 million)
to support the implementation
of the program, while the CFRD
will make certain additional
contributions depending on the
total funding.127
NEFPORT ISSUE 52 – MARCH 2023 27
PROJECT/PROGRAM-
SPECIFIC AID
International Monetary Fund
(IMF) to Provide Second Tranche
of Extended Credit Facility
(ECF)
An Extended Credit Facility
(ECF) is a facility provided as
financial assistance to countries
that are facing a protracted
balance of payments to assist
them in achieving a sustainable
macroeconomic position.128 In this
regard, the International Monetary
Fund (IMF) approved the ECF
arrangement of USD 395.9 million
(NPR 51.993 billion) for Nepal,
with the first or the immediate
disbursement amounting to USD
110 million (NPR 14.446 billion) in
January 2022.129 The objective
of the first installment was to
help mitigate the effects of
COVID-19 on health and major
economic activities aimed at
vulnerable groups, preserve
macroeconomic and financial
stability, and support a reform
agenda leading to sustained
growth and poverty reduction.
Some of the key policy actions
for the Government of Nepal
(GoN) were to increase revenues,
public spending, financial sector
regulation, fiscal transparency,
and enhance governance while
reducing corruption.
Following this, the second
installment of USD 52 million (NPR
6.829 billion) was scheduled to be
disbursed in May 2022, but it was
delayed due to Nepal's failure to
meet its first tranche obligations
in full.130 As a result, a staff-level
agreement was reached between
the GoN and the IMF, resulting
28 DOCKING NEPAL’S ECONOMIC ANALYSIS
in several policies and reforms
that need to be completed for
Nepal to receive the second
tranche of ECF. It has been
agreed that Nepal will receive
the amount in February 2023
after approval from the Executive
Board of IMF. Among the
policies and reforms envisioned
for this installment are the
formulation of a comprehensive
revenue mobilization strategy,
the improvement of public
investment spending, the
advancement of reforms on
banking regulations and assets,
and the strengthening of NRB
governance.131
Asian Development Bank
(ADB) to Support Rural Roads
Improvement Program
The Asian Development Bank
(ADB) will provide foreign
assistance, in the form of loans,
of approximately NPR 1.19 billion
(USD 9.061 million) for the Rural
Roads Improvement program in
Nepal.132 As per the half-yearly
budget review of the current
FY 2022/23, the loan by ADB
constitutes a share of around
4.49% out of the total external
loans (NPR 26.46 billion, i.e. USD
201.479 million) until January
14, 2023.133 In addition to this,
the GoN has also urged other
donor agencies to support
rural development endeavors.
For instance, the European
Union (EU) has been urged to
provide around NPR 15.06 million
(USD 0.146 million) in grants to
support agriculture and rural
development projects.134
World Bank to Provide Aid for
Water Sector Governance and
Infrastructure Support Project
The World Bank and the
Government of Nepal (GoN)
signed an agreement amounting
to USD 100 million (NPR 13.132
billion) for the water sector
governance and infrastructure
support project in July 2022.
It was officially launched on
February 10, 2023, wherein USD
80 million is financed by the
World Bank while the rest USD 20
million (NPR 2.626 billion) is from
the government counterpart from
Nepal.135 The major objective of
this project is to help enhance the
delivery of water and sanitation
services, promote integrated
water resources management,
assist municipalities in project
planning and implementation,
and strengthen the sector
governance capacity of all three
tiers of the government. It also
aims to promote green, resilient,
and inclusive water supply and
sanitation services to more than
400,000 people in addition
to creating job opportunities
and receiving skills training for
women.
European Union Extends
Support for Food Security
The Agriculture Development
Strategy (ADS) stands as the
national strategy of Nepal for the
agriculture sector for the period
of 2015 to 2030.136 It includes
five dimensions, namely, food
and nutrition security, poverty
reduction, competitiveness,
the higher and more equitable
income of rural households, and
strengthened farmers’ rights. In
this regard, the European Union
(EU) has been an active partner
of Nepal to support its food
security agenda as laid out in the
ADS. It has contributed to the
establishment of the Nepal Food
Security Monitoring and Analysis
System (NeKSAP) and currently
stands as the only development
partner that is directly engaged
in supporting the GoN’s Multi-
Sector Nutrition Plan.137 As a result
of this support from the EU, Nepal
has been successful in adopting
a multi-sectoral approach to
tackle malnutrition and even
establishing the country’s first
Human Milk Bank.138 Overall, the
support provided by the EU has
helped strengthen food security
in Nepal and move ahead in
achieving other dimensions of
the ADS.
USAID to Provide Support to
Advance Democratic Progress
in Nepal
According to the U.S. Agency
for International Development
(USAID) Administrator, Samatha
Power, USAID is committed to
supporting Nepal to advance
its democratic progress and
will provide funds up to USD
58.5 million (NPR 7.682 billion)
(subject to availability of funds).139
Samatha vouched that Nepal had
completed its second federal
elections in 2022 and has also
improved in its status of inclusion
of women as well as marginalized
communities. Owing to this
reason, USAID strongly believes
that investments can help Nepal
further cement its democratic
gains and is willing to help the
country in achieving prosperity.
From the USD 58.5 million (NPR
7.682 billion), USD 20 million
(NPR 2.626 billion) is segregated
for strengthening inclusive
democracy by supporting
provincial and local governments;
USD 18.5 million (NPR 2.429
 NEFPORT ISSUE 52 – MARCH 2023 29

billion) (approximately) is losing out on the opportunity education planning, monitoring,

targeted for supporting civil of gaining profit. Hence, the and reporting.144
society and media led by and for financial support is expected to Likewise, the grant, amounting
women, youth and marginalized help farmers in commercializing to USD 12 million (NPR 1.575
communities; and the rest will turmeric and generate income. billion), intends to strengthen
be spent towards bolstering rule systems to protect and uplift
of law and countering human women's projects. The projects
trafficking.140
GRANTS AND which the grant amount will
CONCESSIONAL LOANS cover are targeted toward
Japan to Support Construction survivors of gender-based
of New Turmeric Processing Asian Development Bank (ADB) violence (GBV) across Madhesh,
Center in Pyuthan to Provide Concessional Loan Lumbini, and Sudurpashchim
The Government of Japan has and Grant to Nepal Provinces by establishing long-
provided financial support to term rehabilitation centers,
the Pyuthan district of Nepal, The Government of Nepal (GoN) development of survivor-friendly
amounting to USD 10 million (NPR and the Asian Development Bank facilities and others within
1.313 billion), for the construction (ADB) signed an agreement for the selected districts of the
of a new turmeric processing a concessional loan and grant provinces.145
center and the provision of on December 27, 2023.143 The
agricultural equipment.141 The concessional amount amounts Increasing Internal and External
Ambassador of Japan to Nepal to USD 200 million (NPR 26.265 Loans for the Government of
signed the agreement with the billion) to support the first five Nepal
President of the Volunteer Nepal years of the School Education
National Group under ‘Grant Sector Plan (2022-2030). The According to the ‘Current
Assistance for Grassroots Human loan is expected to be used in Macroeconomic and Financial
Security Projects’ rolled by the the education sector to enhance Situation’ covering six months
Government of Japan.142 The learning provisions for basic and (ending mid-January) of the FY
financial support will be useful secondary schools, strengthen 2022/23, the share of foreign
in increasing the production of teaching and learning skills in grants has been decreasing in
turmeric (domestic production) schools, accelerate recovery the country and stands at NPR
as opposed to the current state from learning losses caused by 34.5 billion (USD 262.699 million)
where turmeric is imported, the pandemic, and improve the currently. Figure 6 shows the
resulting in local turmeric farmers capacity of local governments in trend of the last three FYs below.

2022/23P 3.6 34.5

SIX MONTHS OF FY

Figure 7. Foreign
grants and loans 2021/22R 9.2 25.9

for six months of

the last three FYs 2020/21 9.9 50.8

(in NPR billion)

(IN NPR BILLION)
Source: Current
Macroeconomic and
Financial Situation of Nepal Foreign Grants Foreign Loans
(ending mid-Jan 2023)
30 DOCKING NEPAL’S ECONOMIC ANALYSIS

As the country prepares to performed till six months of the (USD 4.455 billion) in the first
graduate to a developing country current FY 2022/23.147 Likewise, six months of FY 2022/23
status by 2026, it is anticipated oftentimes, the donor agencies compared to a decrease of 5.0%
that the share of foreign grants, also take a longer-than- in the same period previous
which has been one of the major anticipated time to complete FY 2021/22.149 The increase in
sources of revenue for Nepal, the approval process for the remittances is significant to the
will further decrease. On the funded projects, hardly abide by amount sent home by migrant
contrary, the share of foreign the procurement process, and workers as well as the gradual
loans was anticipated to increase revert after a long time on the revival of the country’s tourism
in Nepal’s foreign aid portfolio. study reports submitted to them sector. This has the potential to
However, the share of foreign before reimbursing expenses.148 ease the pressure of depleting
loans has also been decreasing foreign exchange reserves as
along with grants. REMITTANCE well. Moreover, it has been stated
that about 2% of the remittance
One of the major reasons behind Remittance inflows and Migrant inflows to Nepal are spent on
this is the country’s lack of workers capital formation150, indicating
reliable targets, poor spending the potential that the remittance
patterns, low utilization, and delay Increase in the Inflow of income holds for Nepal at this
in seeking reimbursements.146 Remittances by 24.3%, stage where there has been sub-
Moreover, the inability of the Amounting to NPR 585.08 standard capital spending. Figure
government to spend on capital billion 8 depicts the trend of remittance
expenditure also affects its inflows to Nepal until six months
status of receiving foreign loans The inflow of remittances to (ending mid-January) of the last
and grants, as evidenced by Nepal increased by 24.3% seven FYs.
only 14.05% of capital spending to reach NPR 585.08 billion

600.0 585.1 35.0

30.2 495.5 30.0

REMITTANCE INFLOWS (IN NPR BILLION)

500.0 470.7
443.4 446.0
24.3 25.0
400.0 20.0

% CHANGE Y-O-Y
342.2 340.5
15.0
300.0
11.1
10.0
Figure 8. Remittance
inflows to Nepal until 200.0 5.7 5.0
six months (ending -0.5 0.6 0.0
mid-Jan) of the last 100.0
-5.0 -5.0
seven consecutive
FYs (in NPR billion) 0.0 -10.0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

Source: Current SIX MONTHS OF FY

Macroeconomic and
Financial Situation of Nepal Remittance % Change Y-O-Y
(ending mid-Jan 2023)

The increase in the daily limit migrant workers, and others surpassed the amount that was
of remittance (as stated in the have majorly been attributed received before COVID-19 in FY
last review period), provisions as reasons behind a strong 2018/19 by 31.9%, resulting in an
for opening foreign currency increase in remittances in this encouraging figure that holds the
saving accounts, strong market review period. The remittance potential to revive the country’s
support policies, increase in inflow in this review period has economy.151 This also aligns with
 NEFPORT ISSUE 52 – MARCH 2023 31

the central bank’s claims that the second quarter (mid-October lockdowns and COVID-19
country’s economy has been in 2022 to mid-January 2023) of restrictions, extending bilateral
the recovery phase in this review the current FY 2022/23.152 relations, encouraging formal
period, which holds extreme labor processes, and opening
significance for the development Increase in the Number of employment opportunities.
of other sectors of the economy Migrant Workers Seeking Labor
as well. Approval Likewise, the number of Nepali
workers seeking renewed entry
It is, now, important for the growth The number of Nepali workers, approvals increased only by 9.5%
rate of the remittance flowing including institutional and to reach 142,548 in mid-Jan 2023,
into Nepal to be resilient as the individual (new and legalized) against an increase of 298.1%
surging prices due to inflation workers, taking approval for in the previous corresponding
can affect migrants’ real income. foreign employment stood at period.154 Figure 8 shows the data
Moreover, multilateral funding 275,643 in the first six months on the same.
agencies also state that the of FY 2022/23 (ending mid-
cost of sending USD 200 (NPR Jan 2023).153 The increase
26,265.8) across the international signifies a whopping 64.6%
border to countries in the LDC jump in the number of workers
category such as Nepal remains seeking employment abroad
as high as 6% (average) in the as most countries have relaxed

275643
NUMBER OF LABOR APPROVALS

186053

167513

142548
137400

133473
132788

130212
127024

Figure 9. Number
116745

of labor approvals
within the first six
months of the last
32706

six FYs (ending

15049

mid-January)

2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

SIX MONTHS OF FY

Source: Department of Institutional and Individual (New) Renew entry

Foreign Employment

DESTINATION COUNTRIES workers have been the Gulf of Nepali workers sought labor
Cooperation Council (GCC) approvals for Malaysia, United
Malaysia, UAE, and Qatar are countries. It is reported that one Arab Emirates (UAE), and Qatar,
Among the Top Destination in every four Nepalis has been among many others.
Countries leaving for Qatar since 2010.155
In light of this, as per the six
For decades, the major labor months of data ending mid-
destinations for Nepali migrant Jan 2023, an increasing number
32 DOCKING NEPAL’S ECONOMIC ANALYSIS

Six months (ending mid-Jan)

Country
2020/21 2021/22R 2022/23P

Institutional and Individual (New and legalized)

1 Malaysia 6 151 142425

2 UAE 4768 25537 24024

3 Qatar 1177 45293 24023

4 Saudi Arabia 4934 76906 22968

5 Kuwait 0 2807 18447

Table 6. Top 10
labor destinations
of Nepali migrant 6 Romania 249 2159 6831
workers in the first
three months of the 7 South Korea* 14 750 5715
last three FY
8 Malta 46 516 4178

9 Japan 498 64 2214

Source: *Including Government- 10 Bahrain 432 3300 2124

to-Government (G2G)

United Kingdom Invites Migrant
Workers for Horticulture Sector
The United Kingdom (UK)
Government initiated a pilot
program intending to provide
temporary visas for seasonal
work to migrant workers in the
country’s horticulture sector
from 2019 to 2021 as per the
Nepal Labor Migration report
2022 published by the Ministry
of Labor.156 Later, a seasonal
work visa scheme was officially
introduced in 2022, allowing
entry for migrant workers into
the UK for a maximum of six
months. The UK’s Home Office
immigration statistics even
reported that 2,072 Nepali
migrant workers had received
the seasonal work visa in the
first half of 2022 in comparison
to only 456 in the corresponding
period of 2021.157 The scheme
has been extended till 2024 and
is a welcome policy for laborers
who move in search of better
employment opportunities.
However, the farms in the UK
have decided against hiring
Nepali workers owing to reasons
such as exorbitant recruitment
fees borne by workers to secure
the jobs, high absconding rates,
involvement of unlicensed
agents, circulation of fake
news, and unauthorized use of
the Embassy’s letterhead as
well as signature, leading to an
unfavorable working condition
in the horticulture sector.158 For
instance, migrant workers have to
pay NPR 41,843 (USD 318.612) as
an application fee apart from visa
and two-way ticket fees.159
The reasons cited by the UK farms
are serious and demand flaws in
monitoring and implementation
issues from Nepal. The GoN
needs to educate the migrant
workers about the procedure of
securing visas, travel guidelines,
farm guidelines, and many
more related to the specific
work. It is further required that
such information be delivered
in the local language for every
migrant worker to fully grasp the
information and prevent being
cheated by illegal agencies.

PLANS AND PROGRAMS
TARGETED TOWARD
MIGRANT WORKERS
Nepal Requests Malaysia to
Apply ‘Zero-Cost’ Migration
Policy
On February 3, 2023, the Labor
Minister of Nepal, Dol Prasad
Aryal, requested the Malaysian
Home Minister, Saifuddin
Nasution Ismail, to effective
implementation of the ‘zero-cost’
migration policy for the safe and
secure employment of migrant
workers in Malaysia.160 The
Labor Minister of Nepal opines
that applying such a policy will
help ensure that workers are
prevented from paying exorbitant
recruitment fees (during or
even after the employment
duration) and creating a secure
employment condition. Likewise,
Malaysia also assured that Nepal
was one of the top priorities in its
labor recruitment plans such as
the Foreign Workers Employment
Relaxation Plan and the Illegal
and Undocumented Foreign
Workers Recalibration Plan.161 The
proposed policy would exempt
Nepali workers from paying
fees related to recruitment
service charges, visa fees,
medical check-ups, and security
screening costs.162
Considering Malaysia was the top
destination for Nepali migrant
workers in this review period
and has been on the top 10 labor
destination list for decades, the
GoN should prioritize ensuring
the law is enforceable first, and
then planning the monitoring and
evaluation of the policy as well.
Basic Salary Hike to Benefit
Nepali Migrant Workers in South
Korea
According to the Director of
the Employment Permit System
(EPS) of the Korea Section under
the Department of Foreign
Employment in Nepal, Nepali
migrant workers working in
South Korea are paid differently
based on their work and the
company.163 The minimum basic
salary, however, stood at around
KRW 1.9 (NPR 189469.44, i.e.
USD 1442,71) in 2022, which has
been revised and increased by
NPR 10,000 (USD 76.144) per
month from January 2023.164 The
salary increase applies across
all industries and is expected to
benefit the workers.
Recruitment Cost Survey to be
Held
Recruitment Advisor, a global
recruitment and employment
review platform, works
toward raising awareness
of workers’ rights based on
ILO General Principles and
Operational Guidelines for Fair
Recruitment and encouraging
workers to share and learn
about fair recruitment through
Recruitment Advisor.165 As per
the platform, Nepal has only
been able to champion migrant
worker-related reform agendas
on paper and not in action. The
average fees paid by workers
remain around NPR 100,000
(USD 761.446) on average despite
several policies and programs
being launched targeting this
sector. 166
In this regard and acknowledging
NEFPORT ISSUE 52 – MARCH 2023 33
the constraints that remain in fair
recruitment, the National Project
Coordinator, Neha Choudhary,
of Migrant Rights and Decent
Work, International Labour
Organization (ILO) confirmed
that a recruitment cost survey is
being designed to be conducted
on a national level.167 Moreover,
ILO is working with the Central
Bureau of Statistics (CBS) to
carry out the survey.168 The survey
is expected to depict the true
conditions that migrant workers
face and to devise policy actions
based on the results.
Nepali Migrant Workers Facing
Dreadful Working Conditions in
Qatar’s World Cup 2022 Projects
The last review period covered
the dreadful working conditions
that migrant workers faced during
the Fédération Internationale de
Football Association (FIFA) World
Cup 2022 held from November 20
to December 18, 2022, in Qatar.169
Among the many migrant workers,
Nepali migrant workers were also
cheated as they were paid less,
underwent verbal abuse, contract
breaches, forced labor in unsafe
working conditions, wage theft,
discrimination, and many more.170
As a result, a report has revealed
that a total of 1,641 Nepali migrant
workers had died in Qatar.171
Since then, there has been no
progress in any compensation to
be provided to those affected.
In other words, FIFA refused to
commit to compensating the
migrant workers and their families
for abuses while preparing for and
delivering the World Cup 2022.172
Although several human rights
34 DOCKING NEPAL’S ECONOMIC ANALYSIS
and migrant rights organizations
have written an open letter to
Gianni Infantino, the President of
FIFA, requesting him to establish
a fund amounting to USD 440
million (NPR 57.784 billion) (equal
to the prize money for the World
Cup), it has not resulted in any
remedies.173
Increase in the Uptake of
the Youth-Migrant Returnee
Table 7. Project loan
for youth-returnee
migrant workers
Source: Current Macroeconomic
and Financial Situation of Nepal
(ending mid-Jan 2023)
Government Reserves
According to the Current
Macroeconomic and Financial
Situation ending mid-January
2023, the gross foreign exchange
reserves stood at NPR 1.337 trillion
(USD 10.180 billion). This depicts
a 10% increase from NPR 1.215
trillion (USD 9.251 billion) in mid-
January 2022.174 Out of the total
reserves, the reserves held by the
central bank, NRB, increased 12%
to NPR 1.183 trillion (USD 9.007
billion), whereas reserves held by
banks and financial institutions
(BFIs) decreased 3.4% to NPR
153.91 billion (USD 1.171 billion) in
mid-January 2023.175
According to the central bank,
existing foreign exchange
reserves are sufficient to
support merchandise and
Workers’ Loan
The GoN disperses project loans
for youth-returnee migrant
workers. In the review period,
the number of borrowers stood
at 929 which is a decrease from
952 borrowers in mid-January
2023 (2.14% decrease). Likewise,
the outstanding loan amount
stood at NPR 496 million (USD
3.776 million) in mid-January
Number of Borrowers
Type of loan
2022 2023
Mid-Jan Mid-Jan
Project Loan for
Youth-Returnee 952.0 929.0
Migrant Workers
services imports for 9.1 months
and prospective merchandise
imports for 10.4 months, which
suggests an improving status
from the last review period where
the reserves were insufficient
to fund imports of goods and
services for even eight months.176
This shows that the reserves'
ability to sustain imports is
undergoing fluctuations. As
a result, the central bank
continued implementing the
contractionary monetary policy
to control the credit expansion
which could increase import-
based consumption and deplete
foreign exchange reserves even
further.177
Furthermore, studies and
research being conducted in
this arena suggest that while
import costs are one of the major
2023 which is a decrease of
21.46% from NPR 631.49 million
(USD 4.808 million), indicating a
positive signal for the government
on the loans disbursed. The same
data have been presented in
Table 7.
Outstanding Loan Amount (in
NPR million)
2022 2023
Mid-Jan Mid-Jan
631.5 496.0
reasons for this,178 the data on the
available reserves is questionable
since a large number of loans are
still being disbursed by many BFIs
and have undergone changes
through the mid-term review
of the budget. Nevertheless,
although the level of decline is
not as severe as it was during the
2015 earthquake, the situation at
this moment necessitates policy
interventions and scrutiny.
Overall, the reserves to GDP ratio
stood at 27.6% in mid-January
2023 in comparison to 24% in
the corresponding period of the
previous fiscal year as shown in
Table 8:
 NEFPORT ISSUE 52 – MARCH 2023 35

Table 8. Mid-
months’ reserve 2021 2022 2022 2023
to GDP ratio of the Particulars
last three FY (in %) Mid-Jul Mid-Jan Mid-Jul Mid-Jan
Source: Current
Macroeconomic and
Financial Situation Reserves/GDP(in%) 32.7 24.0 25.1 27.6
Update of Nepal (ending
mid-Jan 2023)

The trend of the reserves of the last seven fiscal years has been depicted in Figure 10.

1.494
GROSS FOREIGN EXCHANGE RESERVES

1.337
1.166
Figure 10. Gross

1.096
1.089

1.067

1.058
Foreign Exchange
(IN NPR TRILLION)

Reserves of mid-
January of the last
seven consecutive
years (in NPR trillion)

Source: Current Macroeconomic 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
and Financial Situation Update
MID-JAN OF FY
of Nepal (ending mid-Jan 2023)

Government Debt banks, finance companies, and situation of the country due
others. In total, the total domestic to political instability, poor
The total outstanding domestic debt stands at NPR 964.2 billion governance, lack of capacity in the
debt accumulated by the GoN (USD 7.341 billion) in mid-January local and provincial governments,
can be divided into treasury 2023 in comparison to NPR liquidity crunch, increasing trade
bills, development bonds, 777.3 billion (USD 5.918 billion) imbalance, and depleting foreign
citizen saving bonds, foreign in mid-January 2022.179 This exchange reserves. Table 7 shows
employment bonds, and others the trend of domestic debt in the
indicates a surge of 24.03% in
last three years.
through Nepal Rastra Bank (NRB), the government debt in a year,
commercial banks, development indicating the dismal economic

mid-January
Particulars
2020/21 2021/22 2022/23

Table 9. Domestic
Total Domestic Debt 664.212 777.320 964.185
government debt of
mid-January in the
a. Nepal Rastra Bank 63.869 78.833 130.404
last three years (in
NPR billion) b. Commercial Banks 544.486 618.606 727.496

c. Development Banks 32.401 52.975 71.530

Source: Current Macroeconomic

and Financial Situation of Nepal
d. Finance Companies 11.828 14.593 21.018
(ending mid-Jan 2023)
e. Others 11.626 12.311 13.735
36 DOCKING NEPAL’S ECONOMIC ANALYSIS

Likewise, the total external debt The expenditure and revenue decline has been under financial
reached NPR 1.027 trillion (USD witnessed an increase from management, owing to the
7.99 billion) (as of mid-July NPR 506.99 billion (USD 3.860 political instability and its effect
2023), indicating an increase of billion) and NPR 542.05 billion on the local, provincial, and
9.97% from the previous FY.180 (USD 4.127 billion), respectively in federal governments.
comparison to the corresponding
Government Spending period of the previous FY. In addition to this, revenue
(Expenditure and Revenue) generation has not been strong
The surge in the expenditure of compared to last year’s 28.4%
According to the Financial 13.7% is lesser compared to the increase. Instead, it decreased by
Comptroller General Office previous year’s 21.9%. Admittedly, 15.3% during this review period.
(FCGO), the total government the capital, recurrent and financial The tax collections weakened
expenditure and revenue for six expenditures of the country have notably by 18% whereas the non-
months of FY 2022/23 amounted all surged at a decreasing rate by tax revenue collection climbed
to NPR 576.35 billion (USD 4.388 12%, 5.2%, and 37%, respectively. by 11%.
billion) and NPR 458.99 billion While capital expenditure has
(USD 3.494 billion), respectively.181 increased notably, the major

Particulars 2021/22 2022/23

Total expenditure 506.99 576.35

Recurrent expenditure 406.41 455.13

Table 10. Government
Spending (expenditures Capital expenditure 50.81 53.46
and revenue) in the first
Financial Management 49.47 67.77
three months of FY (in
NPR billion) Total revenue 542.05 458.99

Tax revenue 493.99 405.27

Source: Current Macroeconomic
and Financial Situation of Nepal Non-tax revenue 48.06 53.72
(ending mid-Jan 2023)

600.0
GOVERNMENT SPENDING (IN NPR TRILLION)

500.0

400.0

300.0

Figure 11. Government

200.0
spending (expenditures
and revenue) as of mid- 100.0
January in the last seven
FYs (in NPR billion) 0.0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
MID-JAN OF FY
Source: Current Macroeconomic
and Financial Situation of Nepal Expenditure Revenue Treasury Position/ Cash balance
(ending mid-Jan 2023)
 NEFPORT ISSUE 52 – MARCH 2023 37

billion (USD 5.420 billion) during to 10.6% and 89.4%, respectively.

TRADE STATUS
six months of FY 2022/23, This indicates a slight decrease
indicating an increase in trade in exports and an increase in
Foreign Trade Scenario
deficit by 19.2% against 46.6% in imports. Figure 12 shows the
trend of total foreign trade in the
In terms of the foreign trade the previous year. The share of
last three fiscal years.
scenario, the total foreign trade export and import in total trade
deficit reached NPR 711.86 is 9.3% and 90.7% in comparison

FIST SIX MONTHS OF FY

2022/23 873.47
Figure 12. Total foreign
2021/22 1118.19
trade during the first six
months of the last three 2020/21 722.04
FY (in NPR billion)
0.00 200.00 400.00 600.00 800.00 1000.00 1200.00
FOREIGN TRADE (IN NPR BILLION)
Source: Current Macroeconomic
and Financial Situation of Nepal
Foreign Trade
(ending mid-Oct 2022)

Top Imports and Exports 40.1% and 25.2%, respectively. woolen carpets and readymade
Contrastingly, exports to other garments are the top exported
According to the Current countries increased by 3.6%. products to China.183
Macroeconomic and Financial With this, the ratio of exports to
Situation ending mid-January India, China, and other countries Likewise, according to the same
2023 of FY 2022/23, the stands at 71.6, 0.4, and 28 report, the merchandise imports
merchandise exports decreased respectively. Overall, the top five decreased by 20.7% to reach
by 32.0% to reach NPR 80.81 export commodities were palm NPR 792.67 billion (USD 6.035
billion (USD 615.325 million) in oil (16.2%), soyabean oil (9.9%), billion) against an increase of
comparison to an increase of woolen carpet (6.8%), polyester 51.1% in FY 2021/22.184 In the case
95.5% in the corresponding yarn and threads (6.5%), and jute of imports, the imports from
period of FY 2021/22.182 goods (4.7%). Soyabean oil and India, China, and other countries
Elaborating on this, the exports palm oil are the top exported decreased marginally by 19.4%,
to India and China decreased by products to India whereas 24.6%, and 21.4% respectively.

-
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
(100.00)
(200.00)
AMOUNT (IN NPR BILLION)

(300.00)
Figure 13. Total imports, (428.33)
(400.00)
exports, and trade (514.00)
(500.00)
balance during the first (637.41)
(600.45)
(600.00) (678.53)
six months of the last (711.86)
(700.00)
seven FY (in NPR billion)
(800.00) (880.49)
(900.00)
Source: Current Macroeconomic (1,000.00)
and Financial Situation of Nepal MID-JAN OF FY
(ending mid-Jan 2023)
38 DOCKING NEPAL’S ECONOMIC ANALYSIS

With this, India’s share in total ban on luxury or non-essential
imports reached 61.4% of the products was imposed by the
total imports in the review period, GoN.186 In this review period, the
which is the highest, against GoN lifted the import ban along
60.4% in the previous period. with the removal of a provision
Overall, the top five imports that forced importers to deposit
were petroleum products (18,7%), certain cash margins (up to
machinery parts (4.5%), transport 100%) to open letters of credit
equipment and parts (4.1%), gold (LC) to import certain goods.187
(3.7%), and crude soyabean oil The policies that have been
(3.0%). Petroleum products and adopted are aimed at boosting
vehicle parts are the top imported the economic state of Nepal and
products from India whereas relaxing the trade balance.
telecommunication equipment
and machinery parts are mostly Balance of Trade
imported from China.185
Based on the Current
In the previous review periods, Macroeconomic and Financial
it was reported that the import Situation of FY 2022/23, the total
trade balance deficit witnessed
a 19.2% increase until mid-
January 2023 of FY 2022/22
in comparison to a decrease
of 46.6% in the corresponding
period of the previous fiscal
year, suggesting a widening trade
deficit. The total trade balance
figure stands at a negative NPR
711.86 billion (USD 5.420 billion)
owing to higher imports than
exports. The trade balance for
the last seven years is presented
in Figure 14.

-
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
(100.00)

Figure 14. Total trade (200.00)

AMOUNT (IN NPR BILLION)

balance during mid- (300.00)

(428.33)
Jan of the last seven (400.00)
(514.00)
years (in NPR billion) (500.00) (600.45)
(637.41)
(600.00) (678.53)
(711.86)
(700.00)
(800.00) (880.49)
Source: Current (900.00)
Macroeconomic and
Financial Situation of Nepal (1,000.00)
(ending mid-Jan 2023) MID-JAN OF FY

Balance of Payment the contrary, the Balance of
Payments (BoP) registered a
As of the six month’s data of FY surplus of NPR 97.095 billion
2022/23 (ending mid-January (USD 739.326 million) in the
2023), the current account review period, whereas there was
remained at a deficit of NPR a surplus of NPR 241.230 billion
29.469 billion (USD 224.391 (USD 1.836 billion) in the same
million) compared to a deficit period of last year.189
of NPR 352.158 billion (USD 2.681 The increase in remittances,
billion) in the FY 2021/22.188 On nominal increase in exports,
curbing imports during the
import ban, and increase in
Foreign Direct Investment (FDI)
have resulted in a surplus of BoP
in the review period. The BoP was
in deficit for the last four months.
Figure 15 suggests that the BoP
is in a weakening condition in
comparison to the previous year
despite a surplus.
 NEFPORT ISSUE 52 – MARCH 2023 39

124.92

97.10
45.00

26.65
Figure 15. Balance of
payment trend of mid-

(IN NPR BILLION)

Jan over the last seven FY

-6.66
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

(in NPR billion)

-63.68
Source: Current Macroeconomic

-241.23
and Financial Situation of Nepal
(ending mid-Jan 2023)
MID-JAN OF FY

Exchange Rate Fluctuations the Nepali currency to the US It has also played a significant
dollar has caused the imports role in exacerbating the inflation
Nepali currency visa-a-vis of the country to be expensive surge in the country. The figure
the USD depreciated 1.79% as the buying exchange rate per below shows the exchange rate
fluctuations that have occurred
in mid-Jan 2023, against an USD has reached NPR 129.83
in the last six FY.
appreciation of 0.95% in mid-Jan (USD 0.988) in mid-Jan 2023 (a
2022.190 Amid such fluctuations nominal increase from NPR 127.51
with the USD, the devaluation of (USD 0.970) in mid-Jan 2022).

300

250
SELLING RATE (MID-JAN AVERAGE)

200

150 132.47
117.75 120.1
Figure 16. Exchange rate 102.43
112.72 114.37

fluctuations in mid-Jan 100

(average) of the last six FYs
50

0
Source: Current Macroeconomic 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
and Financial Situation of Nepal
MID-JAN AVERAGE OF FY
(ending mid-Jan 2023)

Gold/silver Updates same period of FY 2022/23, market as it only accounted for

indicating a surge in imports by 2.3% in the last review period.191
25.5%. Figure 17 below shows the It also falls under the top 10
The import of gold increased
commodities that Nepal imports.
from NPR 23.257 billion (USD growing trend of imports of gold.
177.09 million) in mid-January The share of gold imports in total
FY 2021/22 to NPR 29.193 billion imports is 3.7% which signifies its
(USD 222.289 million) in the growing significance in the Nepali
40 DOCKING NEPAL’S ECONOMIC ANALYSIS

35.0
29.2
30.0

23.3
25.0

IN NPR BILLION
20.0
Figure 17. Import trend
15.0 12.2
of gold since last four
FYs (in NPR billion) 10.0 8.0

5.0

0.0
2019/20 2020/21R 2021/22R 2022/23P
Source: Current Macroeconomic
and Financial Situation of Nepal FIRST SIX MONTHS OF FY
(ending mid-Jan 2023)

On the contrary, the import of
silver, which fell under the top 10
commodities of Nepal’s imports
as well, was not a major importing
commodity in this review period.
Yet, it stands as one of the most
imported commodities from
China. Its import volume, however,
decreased from NPR 2.02 billion
(USD 15.381 million) to NPR 85
million (USD 0.647 million) in the
same period, indicating a decline
of 95.8%. Besides, silverware
and pieces of jewelry also come
under the top 15 commodities
that Nepal exports and the
exports for these decreased
by 53.3% in mid-January 2023
against an increase of 101.2% in
mid-January 2022.192

Outlook
Macroeconomic indicators of a country are essential in analyzing the current and future trends of
a country to evaluate its economic position.

In this regard, the review period revealed a dismal macroeconomic condition, with the majority of
indicators, including trade balance and balance of payments, exhibiting a decline. This indicates that
the import ban strategy implemented in previous review periods and extended to reach its revenue
goal had a disastrous outcome. Owing to this reason, experts determined that the risks associated
with the import ban strategy outweighed the benefits in this review period. Consequently, the
government must take consistent effective policy actions, such as increasing taxes on foreign
goods, conserving foreign exchange reserves, and fostering the domestic production of competitive
goods by identifying pocket areas of competitiveness.

Similarly, for the first time since FY 1967/68, the government's revenue collection in the first half of the
fiscal year experienced a decline. It is indicative of the political instability, the shifting of government
priorities with changes in government, the government's weak strategy and implementation, and
the populist bloated budget that was initially proposed for the current fiscal year 2022/23.
 NEFPORT ISSUE 52 – MARCH 2023 41

In contrast, the increase in remittances to Nepal during the review period is significant for the
nation. The demand for employment among Nepalese migrant workers will continue to rise with
cases of inadequate employment opportunities in Nepal, improved bilateral relations with labor
destinations, encouraging seasonal work policies introduced by labor destinations, and other
factors. More such strategic planning coupled with investing in educating migrant workers on the
efficient use and investment of remittance income, as well as acquainting them with fair recruitment
procedures are required.

In light of the current state of affairs, the budgeted growth target of 8% appears unattainable.
There is a need for the government to stimulate the economy by strategizing on sectoral growth,
which will then propel overall economic growth.
 3
42 DOCKING NEPAL’S ECONOMIC ANALYSIS

Sectoral
Review
 NEFPORT ISSUE 52 – MARCH 2023 43

Agriculture FACTSHEET

and Livestock Particulars

Amount/
Percentage

Agriculture sector's 23.9%193

contribution to GDP
Nepal's agricultural sector has been a crucial contributor
to the country's economy, with paddy being one of the The growth rate for 2.3%194
agriculture
primary crops. Nepal witnessed a 6.94% increase in
GDP of the NPR 98.32
paddy production in the current fiscal year. However, this agriculture sector trillion195
quantity falls short of the country's annual demand for
Food and Beverage
rice, and the recent shortage of chemical fertilizers has CPI (Six months of 5.62 %196
further hampered production. Amid these challenges, the FY 2022/23)

Government of Nepal has implemented new food safety Price increase of 6.59%197
ghee and oil
standards for various foods and nutritional ingredients to
Price increase of
prevent contamination and adulteration. Meanwhile, the milk products and 9.70%198
eight-month-long ban on wheat exports by the Indian eggs

government caused a shortage of refined flour and wheat Price increase of 4.36%199
Pulses and Legumes
flour in the Nepali market. Despite the ban being lifted,
Price increase in
Nepali traders have been facing challenges in importing tobacco products
11.81%200

wheat flour in bulk. Regardless of all the hurdles, Nepal has

Price increase of
managed to export various agricultural products, such Cereal grains and 9.56%201
their products
as oranges, tea, and other products worth NPR 1 billion
Outstanding credit NPR 402.69
(USD 7.614 Million). The government has also taken steps outflow for FY Billion202
2022/23
to improve milk production by importing purebred cows
Crude Soybean
from South Korea. These developments have significant oil
implications for Nepal's food security and the agricultural (23.84
billion)203
sector's growth.
Top 4 agricultural Rice/paddy
commodities (18.46 billion)204
2020/21.212 As per the Ministry of imports (in NPR)
PRODUCTION UPDATES Based on Six Crude Palm oil
Agriculture and Livestock, Nepal Months’ Data
(16.71
requires 4 million tons of rice Ending Mid-January
billion)205
Nepal Faces Deficit of Paddy
annually to feed its population.
Production by 480,000 tons
The milling of this year's paddy Vegetables
harvest is expected to yield (9.6 billion)206
Nepal has produced 5.48 million
approximately 3.52 million tons
tons of paddy in the current FY Soybean Oil
of rice, leaving a potential deficit (13.08 billion)207
2022/23, an increase of 6.94% of 480,000 tons.213 To address
compared to 5.15 million tons Top 4 agricultural
this deficit, the country has spent commodities Palm Oil
produced in FY 2021/22.211 This exports (in NPR) (8.0 billion)208
NPR 12.65 billion (USD 96.3 Million)
Based on Six
quantity falls short by 200,000 on rice imports in the current FY. Months’ Data Cardamom
tons when compared to 5.62 Even though the production of Ending Mid-January (3.7 billion)209
million tons produced in FY paddy has improved compared Tea (2.5
billion)210
44 DOCKING NEPAL’S ECONOMIC ANALYSIS
to the previous year, this year’s
production is still not enough to
feed the country’s population.
The deficit in production is
due to a constant shortage
of chemical fertilizers214 in the
plantation months i.e., June –
August which is further escalated
by several challenges, including
declining per capita arable land,
limited access to and use of new
technologies, and inadequate
input supply chains.
INPUT UPDATES
New Food Safety Standards
Implemented
The Government of Nepal has
approved new safety standards
for various foods and nutritional
ingredients to prevent food
contamination and adulteration.
The permissible limits for heavy
metals in various foods have
been revised as per international
standards, and the government
has set a maximum limit for nine
types of heavy metals in food
items. As per the new standards,
the maximum limit for lead in
fruits is 0.1 mg per kg, and for
vegetables and cereals is 0.2 mg
per kg. In 2019, lead exposure
accounted for 900,000 deaths
globally as per the Institute for
Health Metrics and Evaluation.
Nepal’s Food Act 1967, states that
if the food does not meet the
stated standards, action will be
taken against the manufacturer,
which includes a fine of NPR
50,000 (USD 380.72) or
imprisonment for up to 5 years, or
both. The new standards require
cereal-based infant food to have
specific levels of nutrients and
additives and a maximum count
of bacteria per gram. As per the
new standards, the permissible
moisture content in baby food
should not exceed 8%, with fat
content not exceeding 13% and
protein content not less than
15%. Similarly, the packaging must
meet strict standards. 215
MARKET UPDATES
Ban on Wheat Export by India
Hampers the Flour Mills
The Indian Government’s eight-
month-long ban on wheat
exports that was implemented
in May 2022 was finally uplifted
in December 2022. The ban
resulted in the closure of 80-
85% of flour mills in Nepal, which
depended on wheat imports for
raw materials, creating a shortage
of refined flour and wheat flour
in the Nepali market. As per the
Nepal Flour Mills Association,
domestically produced wheat
is sufficient to operate a flour
mill for only five months, and
producers are dependent on
imported wheat for the remaining
months.216 Before the ban, a 50-kg
bag of refined flour used to cost
NPR 3,200 (USD 24.36) to NPR
3,300 (USD 25.12), which jumped
to NPR 4,800 (USD 36.54) to
NPR 5,000 (USD 38.07) after the
ban. Traders were forced to buy
wheat from the black markets
at 30-40% higher prices. After
lifting the ban, the Foreign Trade
General Directorate of India
permitted to export of 50,000
tons of wheat to Nepal till March
31, 2023. 217
EXPORT AND IMPORT OF
AGRO-COMMODITIES
Parbat District Exports Oranges
Worth NPR 300 Million (USD 2.2
Million)
The production of oranges in
the Parbat district saw a 25%
increase in the current fiscal year
2022/23. Orange plantations
in 830 hectares of land in the
district produced 5,000 metric
tons of orange. Out of this,
4,250 metric tons of orange
were exported to other districts,
generating an income of NPR
297 million (USD 2.261 Million).
In contrast, the district only
produced 4,000 metric tons of
orange from 450 hectares of land
in the last fiscal year 2021/22.218
Suitable weather patterns
and the timely availability of
supplements and fertilizers
contributed to the increased
production of oranges. After the
orange zone was established in
2017 under the Prime Minister
Modern Agriculture Program, the
orange crop's catchment area
in the district started growing.
The district's orange production
is concentrated in the Baglung
Municipality, Bihun, Tityang,
Bhakunde, Lekhani, Jaimini,
Damek, and Sarkuwa pockets.
Tea Worth NPR 38 Million (USD
0.28 Million) Exported
Tea worth NPR 2.58 billion (USD
19.67 Million) has been exported
from Nepal in the first seven
months of FY 2022/23.219 Out of
the total 28 million kilograms of
tea produced in Nepal, annually,
Jhapa produced the highest
amount i.e., 18 million kilograms.
The districts of Koshi Province
produce 99% of Nepal’s total tea.
The province houses 68 large-
scale tea industries and 150 small
companies processing orthodox

tea.220 More than 70,000 people
have got direct employment from
tea production and over 15,000
small farmers are engaged in tea
farming. Nepali Tea Quality from
the Himalaya, a trademark of
Nepali orthodox tea produced in
the hilly region of Nepal, is issued
by the government of Nepal. The
trademark is expected to help
Nepal brand and market its tea
in the international market. The
trademark serves as a defense
mechanism to protect a brand
from loss of reputation and has
the potential to increase in value
as an intangible asset.221
Lalbandi Exports Agricultural
Products Worth NPR 1 billion
(USD 7.6 Million)
The Agriculture Wholesale
Bazaar Management Committee
(AWBMC) in Sarlahi has exported
agricultural products worth over
NPR 1 billion (USD 7.6 Million) in
the first seven months of the
current fiscal year 2022/23. The
agricultural products include
tomato, eggplant, black-eyed
bean, bottle gourd, bitter gourd,
and cucumber. The products
have been exported to places
outside the district, including
Sindhuli, Ramechhap, Kathmandu,
Pokhara, Butwal, Bhairahawa,
Narayangadh, Nepalgunj,
Hetauda, Birgunj, Gaur, Janakpur,
Siraha, Biratnagar and Ithari.222
Pure Breeds cow imported from
South Korea
The Government of Nepal has
distributed 100% purebred
Holstein cows received from
Heifer International Korea to
farmers in Nepal. The cows were
not brought to replace the local
Nepali cows, but to improve
the cow breeds and foster the
dairy industry. The Department
of Animal Services is working to
protect the local cows of Nepal.
Only 20% of the 7.3 million cows
in Nepal are of advanced breed,
and these cows can produce
8-16 thousand liters of milk
per lactate.223 According to
estimates, a Holstein cow may
produce 10,000 liters of milk
yearly, compared to 800 liters
from local varieties. In Nepal, the
enhanced breeds produce 2,800
liters of milk, yearly. A Holstein
cow typically produces milk for
ten months before receiving
a rest period of around two
months before the birth of the
subsequent calf. The main aim of
this initiative is to modernize the
dairy business by establishing a
high-quality nucleus herd.224
Food and Beverage Prices (CPI
and WPI)
The year-on-year Consumer
Price Index (CPI) for Food and
Beverage as of mid- January
2023 stood at 5.62%. The CPI for
cereal grains and their products
increased to 9.56%, alcoholic
drinks to 8.84%, milk products,
and eggs to 9.70%, and tobacco
products to 11.81%.225 Whereas,
the year-on-year wholesale
price inflation increased to 9.82%
as of mid- January 2023, from
8.08% in the previous year.226
The increase in the price of
necessary commodities is due
to the depreciation of the Nepali
Rupee against the convertible
currencies combined with
low export and moderation in
remittance growth for the Fiscal
NEFPORT ISSUE 52 – MARCH 2023 45
year 2022/23.
LIVESTOCK UPDATES
The H5N1 Bird Flu Detected in
Nepal
According to the Ministry
of Agriculture and Livestock
Development (MoALD), three
locations in the Kathmandu Valley
have been verified to have bird flu
infections. On January 30, 2023,
the Nepal Agricultural Research
Council (NARC), based in Lalitpur,
verified the first infection of
A(H5N1), also known as bird flu or
avian influenza virus. As part of the
containment strategy, a limited
number of birds were killed, and
the farm's 4,500 hens and 2,255
eggs were destroyed. Since it
was first discovered in poultry
birds, the highly pathogenic H5N1
virus outbreak has spread to
migratory birds as well as other
mammals, raising the possibility
of new versions spreading among
people and allowing it to infect
more species.227
GOVERNMENT PLANS
UPDATES
Hupsekot Rural Municipality
Provides Grants for Milk
Production
The Hupsekot Rural Municipality
has decided to provide a subsidy
of NPR 5 (USD 0.038) per liter
of milk to dairy farmers through
cooperatives. In the last fiscal
year 2021/22, a total subsidy
of NPR 254,235 (USD 1935.86)
was provided to framers. This
scheme has been coined to make
Hupsekot Rural Municipality
self-reliant on milk production.
46 DOCKING NEPAL’S ECONOMIC ANALYSIS

The rural municipality has also
been giving a subsidy of 50%
to the farmers for the payment
of insurance premiums under
livestock Insurance. The rural
municipality is taking constructive
steps to make the municipality
self-reliant in its production by
encouraging farmers and helping
them financially.228
IFAD Extends Loan for
Sustainable Agriculture Growth
The Government of Nepal has
received a loan and grant from the
International Fund for Agricultural
Development (IFAD) totaling USD
39 million (NPR 5121 Million) to
support the “Improved Seeds
for Farmers” Initiative. Through
collaborations between small
farmer organizations and the
private sector, the program—a
collaborative effort between
the government of Nepal and
IFAD—aims to promote improved
seed and smallholder livestock
production and distribution.
The aim is to increase the
incomes of 150,000 poor rural
households in six districts: Rolpa,
Rukum, Salyan, Pyuthan, Gulmi,
and Arghakhanchi. With the
implementation of this program,
IFAD will have financed a total
of 14 programs since 1978 with
a total investment of USD 198.2
Million (NPR 26 Billion) in Nepal,
benefiting 561,600 households.
Poor women, indigenous peoples,
and other vulnerable groups
are expected to benefit from
the program, with rural women
making up more than half of all
beneficiaries.229
Agriculture Census Reaches
Final Stage
The Central Bureau of Statistics
(CBS) is preparing to publish the
results of the seventh National
Agriculture Census, which has
reached the final stage. The
census, which was conducted
during the months of March to
May in the fiscal year 2021/22
included all 753 local levels of
the nation. A sample of 350,000
farmers representing 753 local
levels was counted as part of
data collection on agricultural
operations carried out for
institutional, commercial, and
subsistence purposes. This
census is expected to assess
the situation of crops produced,
irrigation, land use data, raw
material use, and many livestock
and fowls. The report will help
carry out a study on the impact
and contribution of agriculture
to national production and
formulate plans, monitor, and
evaluation of agricultural produce
at all three levels.230

Outlook
Nepal's increased paddy production this year is promising, but the shortage of chemical fertilizers
year after year, and limited access to new technologies have hampered the agricultural sector's
growth. Moreover, while the demand for milk has been rising, production has been decreasing
subsequently. The Government of Nepal has already taken steps like distributing pure-breed
Holstein cows to Nepali farmers, to improvise and modernize the dairy industry of Nepal. Such
initiatives to increase production would motivate farmers and help in the growth of the dairy
industry.

It is important to address the challenges faced by the agricultural sector and continue investing in
technological advancements and input supply chains to sustainably improve food production in
Nepal. Priority should be given to investments in infrastructure such as irrigation, transportation,
and storage facilities. Similarly, promoting modern farming techniques, providing access to credit
and market information to farmers, and strengthening agricultural research and extension services
must be also focused on.
 NEFPORT ISSUE 52 – MARCH 2023 47

Energy and
FACTSHEET

Total Petroleum product imports

Environment
(six months of FY 2022/23)
NPR 148 billion
(USD 1.12 billion)231

Peak energy demand

1,626 MW232

Total installed capacity

The total installed capacity of energy production in Nepal 2451 MW233
stood at 2,451 MW in the review period, up from 2,190 MW
during the previous review period. Meanwhile, the peak Peak Energy Generation
1,140 MW234
demand dropped to 1,626 MW in the review period from 1747
MW during the previous review period. With the onset of the Energy Import from India
516 MW235
dry season, electricity output from run-of-river hydropower
projects has drastically fallen; peak electricity generation as Transmission line construction
of mid-February 2023 was only 1,140 MW. Electricity is being 5,683.6 km236

imported from India to fill the remaining power shortfall. The

Total domestic energy
Nepal Electricity Authority (NEA) has also decided to sign consumption
8,637 GWh237
Power Purchase Agreements (PPA) for up to 1,500 MW with
run-of-river hydropower projects that are currently under construction. After receiving an
increased price list from the Indian Oil Corporation (IOC), the Nepal Oil Corporation (NOC) has
increased the cost of petroleum products in Nepal. Meanwhile, the import of electric vehicles
(EVs) increased during the review period as the government restricted the import of petrol and
diesel vehicles to prevent the country’s foreign exchange reserves from shrinking.

Act stipulates that up to NPR are still visible on the roads.

POLLUTION AND
EMISSIONS
Vehicular Emission Deemed
Primary Cause of Air Pollution in
Kathmandu Valley
As per the Department of
Forests and Environment (DoFE),
vehicular emission is the primary
cause of Kathmandu Valley's air
pollution. Considering this, the
department started stringent fuel
emission tests on automobiles
in different parts of Kathmandu
valley in December 2022 and
is gearing up to gradually
spread the emission testing
to other major cities of Nepal.
The Environment Conservation
100,000 (USD 761.446) in fines
may be imposed on vehicles
that fail emission tests. Each
vehicle that failed the test has
been fined NPR 5,000 (USD 38)
and instructed to retake it three
days following maintenance.
The testing also revealed that
the Kathmandu Valley's public
transportation fleet operates on
exhausted engines.238 Between
December 2 and December 23,
2022, the Department checked
the emissions of 341 public
vehicles; 41% of those vehicles
failed to meet the emission
standard.239 To reduce pollution,
the government has outlawed the
usage of automobiles older than
20 years, however, these vehicles
Electric Vehicle Imports Surge
by 61%
According to statistics from the
customs department, Nepal
imported 2,009 Electric Vehicles
(EVs) worth NPR 5.62 billion
(USD 42.8 million) in the first
seven months of FY 2022/23.
During the same period in the
previous fiscal year, 1,191 EVs were
imported for a total of NPR 3.49
billion (USD 26.6 million).240 This
implies that the import of Electric
Vehicles (EVs) grew by 60.95%
in the first seven months of FY
2022/23. EV imports surged to a
massive 1,807 units in FY 2021/22
compared to just 249 units in
FY 2020/21, largely as a result of
48 DOCKING NEPAL’S ECONOMIC ANALYSIS
COVID-19-induced lockdowns
being lifted.241 As per car
dealerships, the easy financing
options provided by the banks
for EVs are the main reasons for
the increase in EV imports. Banks
have been providing financing
options of up to 90% of the
cost of the vehicle. The demand
for EVs also skyrocketed due
to the government’s decision
to ban the import of petrol and
diesel vehicles to retain the
country’s dwindling foreign
currency reserves. For Nepal,
which intends to implement the
GRID strategy and reach zero
emissions by 2045, the rise in
EV demand is encouraging. In
addition, as Nepal's capacity to
produce electricity increases,
growth in EV use will increase
domestic energy consumption
and help reduce the amount of
energy leakage.
Illegal Crusher Plants Allowed to
Temporarily Operate
On January 25, 2023, the
government decided to permit
"illegal" crusher plants to operate
for a limited period, with the
requirement that they register
with the government and begin
paying taxes by mid-July 2023.
Following the government's
closure of illicit crusher
operations, construction projects
throughout the nation were
halted due to a lack of sand and
gravel. A directive from the Home
Ministry ordering the District
Administration Offices (DAOs) to
immediately close crusher plants
engaged in the quarrying and
processing of stone, gravel, and
sand that were operating without
registration or updated permits
led to the closure of nearly
75% of the crusher industries
throughout the nation as of the
beginning of January 2023.242
PROJECTS AND PROGRAM
IBN Recalls EoI for Feasibility
Study of eBRT in Kathmandu
Ring Road
The Investment Board Nepal (IBN)
has, for a second time, requested
Expressions of Interest (EoI) from
companies that are interested in
conducting a feasibility study for
the construction, management,
and operation of an Electric Bus
Rapid Transit (eBRT) system along
the Ring Road in the Kathmandu
Valley. The EoI was initially issued
on November 6, 2022, with a
deadline of December 12, 2022.
There were submissions from
13 companies, both domestic
and foreign. However, it was
scrapped when the procurement
procedure was discovered to be
inconsistent during the evaluation
stage.243 The new deadline for the
submission of the EoI has been
set to March 12, 2023. According
to IBN, the feasibility study
would evaluate the proposed
eBRT system's technological,
economic, financial, social, and
environmental viability. Any
individual firm or joint-venture
company that is selected for
the study must complete the
feasibility study within 18 months
of the contract's signature.
The selected company would be
required to also deliver a plan
for service and operations, the
physical and operational design
of the BRT system, improvements
to traffic engineering, the use
of ITS technologies, and fare
collection methods. Similarly, it
would need to determine the
scope of environmental benefits
associated with adopting an
electric BRT system as well
as assess the PPP investment
modality about the viability of
the BRT system and recommend
the best modality for attracting
investors.244
EIB Expresses Interest in the
635 MW Dudhkoshi Reservoir
Project
The European Union (EU)
has expressed interest in
making investments in Nepal's
hydropower industry through the
European Investment Bank (EIB),
the EU's financing arm. According
to the Nepal Electricity Authority
(NEA), the EU has expressed a
desire to contribute to the 635
MW Dudhkoshi Reservoir Project
via a consortium financing
of international financial
institutions after a high-level EU
delegation conducted an on-
site assessment of the 220 KV
Chilime-Trishuli Transmission
Line Project. The Dudhkoshi
Project is one of NEA’s largest
hydropower projects for which
the government has committed
NPR 940 million (USD 7.15 million)
through the federal budget for
FY 2022/23. The construction of
the dam and other infrastructure
will take six years, costing an
estimated USD 1.523 billion (NPR
200 billion).245
HYDROPOWER
Sharp fall in Power Generation
from Hydropower
Nepal’s electricity generation
has decreased by more than
40% as a result of the country's
lack of rainfall over the past five
months causing a decline in river
water levels. NEA reports that

the prolonged drought scenario
has caused power generation
to decline more this winter than
it did the previous winter. In the
winter of last year, 1,200 MW
of electricity was produced.246
NEA is currently balancing the
supply of electricity by importing
additional electricity from India.
Even though hydroelectric
facilities like Kulekhani, Upper
Tamakoshi, and Kaligandaki were
brought into operation during
peak hours, the NEA reports that
the nation's electricity production
this winter has decreased to
about 926 MW. The 456 MW
Upper Tamakoshi Hydropower
Project, the country’s largest
power project is currently only
producing around 77MW.247
Tanahun Hydropower Project
Makes Breakthrough in its
Access Tunnel
The 140 MW Tanahun Hydropower
Project is one of Nepal’s largest
reservoir-type projects, which
is expected to generate 587.7
GWh of electricity in the first
10 years of operation with the
capacity to generate energy
for six hours daily during the
dry season. On February 2, the
project made a breakthrough by
completing its access tunnel as
part of the project's first phase
of infrastructure construction.
The 436-meter-long tunnel
with a 7-meter diameter will
facilitate the transportation of
equipment and construction
material to the upper side of
the planned dam construction
site.248 A 140-meter-tall dam is
being built under package one of
construction by a joint venture
between Song Da Corporation of
Vietnam and Kalika Construction
Pvt Ltd of Nepal. The project has
already completed construction
of the upper side of the dam,
and the diversion tunnels, and
has improved the access road.
Package one of the project is
targeted to be completed by
May 2027, with the current
progress being 12.68%. NPR 2.23
billion (USD 16.98 million) has
been spent on the first package
so far. The second package,
which has been awarded to
Sinohydro of China, includes
the construction of the tunnel
and powerhouse along with
the installation and operation
of hydromechanical and
electromechanical equipment.
As per project officials, 55% of
work under package two has
been completed for NPR 6.39
billion (USD 48.65 million), which
is expected to be completed by
June 2026. The third package
involved the construction of the
220 kV double circuit Damauli--
Bharatpur Transmission line.249
NEA to Sign PPAs with
Developers of Run-of-the-
river Hydropower Projects
The NEA decided to sign power
purchase agreements with the
developers of run-of-the-river
type hydropower projects under
the "take or pay" modalities for
up to 1,500MW on February 9
during its 930th board meeting
in response to persistent
pressure from the private sector.
The NEA has inked connection
agreements with 136 projects
totaling 3,192MW as of February
1.250 the NEA board stated that
developers would receive NPR
8.40 (USD 0.06) per unit during
the dry season and NPR 4.80
(USD 0.03) per unit during the
wet season as per the current
policy. For the past three years,
NEFPORT ISSUE 52 – MARCH 2023 49
the NEA has refrained from
signing PPAs with the developers
of run-of-the-river projects due
to the financial risks involved in
increasing its power purchases
during the rainy season when
there isn't a market for it. Due to
a lack of domestic consumption
and insufficient market access
to the Indian market, the power
utility body experienced power
leakage during the previous
wet season (June to November
2022).251
Indian Officials Raise Concern
over Upper Karnali Project
Nepal’s Supreme Court issued an
interim order in November 2022
instructing the government of
Nepal not to extend the contract
of India's power giant GMR, which
was building the 900 MW Upper
Karnali Hydropower Project.252
The Supreme Court's decision
has raised concern among Indian
government officials. During his
recent visit to Nepal on February
14, Indian Foreign Secretary Vinay
Mohan Kwatra inquired about
the status of the Upper Karnali
case. The issue of the investment
climate for the India-invested
projects particularly the Upper
Karnali Hydropower Project was
brought up by Indian government
officials during the 10th joint
secretary-level Joint Working
Group and the secretary-level
Joint Steering Committee held
in Jaipur, India on February 17–
18.253 The Project Development
Agreement between the
Investment Board Nepal and
GMR Energy was signed in
September 2014, giving the Indian
company two years to complete
financial closure. The deadlines
were extended by one year in
January 2017 and November 2017
50 DOCKING NEPAL’S ECONOMIC ANALYSIS
respectively. Due to the project's
inability to proceed as planned
under the terms of the contract,
the Cabinet opted to extend
the period until 2024. The apex
court found no reason to justify
extending the date until 2024
since the agreement was signed
for two years in 2014.254
TRADITIONAL ENERGY
Petroleum Product Prices Hiked
After an increase in pricing from
India, Nepal Oil Corporation
raised the price of petroleum
goods starting at midnight
on February 6, 2023. Diesel/
kerosene has increased by NPR
3 (USD 0.022) to NPR 175 (USD
1.332) and petrol by NPR 3 (USD
0.02) to NPR 178 (USD 1.35) per
liter, according to the corporation.
LPG and jet fuel remain at their
current prices. On February 1, the
Indian Oil Corporation (IOC) sent
a new pricing list that increased
the price of petrol by NPR 1 (USD
0.001), diesel by NPR 7.98 (USD
0.06), kerosene by NPR 4.61 (USD
0.03), and jet fuel by NPR 7.80
(USD 0.05) per liter. The cost
of LPG has dropped by NPR 75
(USD 0.57) per cylinder. As of
February 2022, NOC needs to
pay around NPR 16.30 billion
(USD 12.41 million) in debt to the
Government of Nepal and IOC.255
RENEWABLE ENERGY
Solar Power Developers Demand
NEA to Return to Old PPA Rate
Developers of solar power
projects have pleaded with the
NEA to reinstate the previous
power purchase agreement
(PPA) tariff of NPR 7.30 (USD
0.05) per unit for electricity
produced by solar projects. They
claim that it is impractical for
them to produce power at a PPA
lower than this rate.256 According
to the "Working Process on Grid
Connected Alternative Electric
Energy Development-2017," the
NEA had been signing PPAs with
developers at a fixed price of NPR
7.30 (USD 0.05) per unit. However,
in March 2022, the state-owned
power utility opted to establish
a maximum tariff of NPR 5.96
(USD 0.04) per unit to be paid
to solar energy producers.257 On
November 28, 2022, NEA released
a request for proposals (RFP) from
developers for the construction
of grid-connected solar systems
to purchase up to 100MW of
solar-generated electricity. The
Solar Electric Manufacturers'
Association of Nepal opposed
the NEA's price cap, claiming that
power producers could not make
a profit at prices below NPR 7.30
(USD 0.05) per unit. According
to the association, if the NEA's
maximum price cap is put into
effect, developers will have to
wait 12–15 years to recoup their
initial investment. The investors
would not have much time left
to profit from the investment
because the solar farms and the
land must be handed over to the
government after 25 years.258
NEW DEVELOPMENTS
Nepal Plans to Export Electricity
from Likhu-4 to Bangladesh
Nepal plans to export the
electricity produced by the
Likhu-4 Hydropower Project
to Bangladesh after receiving
assurance from India that it
would be authorized. The project
was chosen after the Indian
government's approval of Nepal's
request to export 40–50 MW of
electricity to Bangladesh using
Indian transmission infrastructure
at the 10th joint secretary–level
Joint Working Group and the
secretary–level Joint Steering
Committee meeting, held in
Jaipur, India, on February 17–
18.259 Indian officials reportedly
stated that if a proposal is made
with a specific project, India will
approve it following the Indian
Government’s Power Import-
Export Directive. Considering the
Likhu-4 project is a joint venture
between Indian and Nepali
companies, India might grant the
project the go-ahead to export
power.260
Six Hours Daily Power Cuts in
Industrial Areas
Industrial corridors throughout
the nation are currently
experiencing daily power
outages of six hours due to
Nepal Electricity Authority's
(NEA) struggles to import enough
electricity from India. To reduce
load during the country's busiest
morning and evening hours, NEA
has enforced load shedding for
periods of three hours each.
According to businesses, these
power outages currently take
place between the hours of 6
and 9 am and 5 to 8 pm. The
most recent power outage has
severely hurt the economies of
major industrial cities including
Biratnagar, Birgunj, Hetauda,
and Bhairahawa. 261
Despite
importing power from India
via the Dhalkebar-Muzaffarpur
transmission line, the NEA has
not been able to transmit power
to Birgunj and Bhairahawa areas
due to a lack of high-capacity
transmission lines in the nation.
The NEA currently imports 90

MW from Bihar via the Raxaul
and Ramnagar regions, and
supplies the imported power to
consumers, including factories
in and near Birgunj. The NEA
has requested the Bihar state
government to provide additional
power through the Raxaul and
Ramnagar areas in response to
complaints about a shortage.262
Nepal and India Agree to
Increase Energy Trade
During a meeting of the Energy
Secretary-level Joint Steering
Committee held in Mount Abu,
Rajasthan, India, on February
18, 2023, an agreement was
reached between Nepal and
India to increase the power
import and export capacity from
the current 600 to 800 MW
through the first international
Dhalkebar-Muzaffarpur 400
KV transmission line. A joint
technical team will examine the
various options for exporting the
additional 200 MW of power. The
two parties have also agreed to
share 70 to 80 MW of electricity
generated through the Tanakpur-
Mahendranagar 132 KV power
transmission line for import and
export. Likewise, the two sides
agreed to set up the appropriate
frameworks for Nepal to export
power to the Indian state of Bihar
throughout the rainy season.
Both nations also agreed that the
400 KV new Butwal-Gorakhpur
transmission line, which would
serve as the second international
transmission line, should be
finished by March 2025.263
China Officially Proposes to Buy
Electricity from Nepal
For the first time, China has
proposed to buy electricity
from Nepal for Tibet during the
winter season. At the inaugural
meeting of the Joint Working
Group established for energy
cooperation between Nepal
and China, which was held in
Kathmandu on February 21, the
Chinese side formally proposed
Nepal.264 However, no formal
agreement has yet been reached
in this regard by the two nations.
Although China has requested
electricity for the winter, Nepal
is currently unable to provide it
for two reasons. First, there is no
cross-border transmission line
between the two nations. Second,
Nepal itself imports power from
India during winter. According
to the NEA, both nations have
agreed to study how much
electricity Nepal can export to
Tibet before proceeding with the
proposal.
Electricity Leakage Plugged at
12%
The NEA was successful in
reducing the combined electrical
leakages from the distribution
network and transmission lines
to 12.05% in the first five months
NEFPORT ISSUE 52 – MARCH 2023 51
of FY2022/23. The electricity
leakage from these systems
was 15.38% as of mid-July 2022.
The leakage in the distribution
network reaching households
has been incurring huge financial
losses to the authority.
According to the NEA, losses
from the distribution network
were lowered to 7.49% while
transmission line losses stood
at 4.56%. As per NEA, 4.14 billion
units of power were supplied
in the distribution system as
of mid-December 2022, out of
which 3.83 billion units were sold
and 310 million units were wasted.
The improvement of feeder
lines and substations, which
were previously overburdened,
as well as the replacement of
conductors and transformers
significantly reduced leakage.
The authority said it aims to lower
the overall leakage to 14% by end
of this FY. According to the NEA,
distribution centers in Janakpur
had the highest leakage rates,
while Nepalgunj had the lowest
leak rates. The NEA promised
that after a few additional
substations are built, electricity
consumption in industrial regions
would rise and meter readings
would become more effective.
Similarly, regular monitoring
and preventative measures
are also being implemented to
stop electricity theft through
hooking.265
52 DOCKING NEPAL’S ECONOMIC ANALYSIS

Outlook
Run-of-the-river hydropower plants with little to no storage capacity make up the majority of energy
projects in Nepal. As a result, Nepal must import electricity from India during the winter months, when
the demand is at its peak, making the country's energy industry seasonally dependent. Nevertheless,
it is anticipated that power generation will increase in the next quarter as the melting of snow will
lead to a rise in the water level in rivers.

The quantity of electricity lost during transmission and distribution is a key indicator of how
effectively the energy sector is operating. While the nation's capacity to produce hydropower
has been continuously increasing, attention should also be devoted to lowering the reliance on
hydropower and focusing on new renewables and regional trade as part of policy interventions.
In addition to hydropower, Nepal also has considerable solar potential, as it enjoys a considerable
amount of sunny days every year due to its geographic location, which can thus be a major area of
focus for the government.
 NEFPORT ISSUE 52 – MARCH 2023 53

Infrastructure
and Real Estate FACTSHEET

FY 2022/23 up to mid-January
2023
Nepal has made plans for future infrastructure
developments but also suffered from significant delays Total Length of Road
34075.17 km266
in many existing projects during the review period.
Several notable achievements include the construction New road constructed
of a petroleum pipeline between India and Nepal and the 303.5 km267

commencement of construction of an integrated check Total number of bridges

Constructed (in numbers)
post at the Sunauli-Bhairahawa border. Furthermore, 39268
discussions are underway for the construction of dry
Construction of Railway
ports and road widening plans to improve transportation 0.7 km269
infrastructure aimed at boosting economic growth.
Some construction projects have stalled in Karnali and mega projects in Myagdi require
prompt action from the government. Despite the strides made towards improving the
infrastructure of Nepal, the delay in these projects could impede progress and the
overall goals of the initiative.

Motihari-Amlekhganj
Petroleum Pipeline nears
Completion
The construction of infrastructure
required for importing petrol and
kerosene through the Motihari-
Amlekhganj petroleum pipeline
has reached its final stage.
Additionally, the infrastructure
required to supply petrol and
kerosene through pipelines in the
Amlekhganj depot has also been
started with the joint venture
of Nepal Oil Corporation (NOC)
and Indian Oil Corporation (IOC).
Due to a lack of storage capacity,
only diesel is currently being
supplied through the Nepal-India
inter-country petroleum pipeline
from Motihari in Bihar, India to
Amlekhganj in Nepal. The goal is
to supply gasoline and kerosene
through the Amlekhganj depot by
February 2024 after the growth
of storage capacity, the building
of labs, upgrading firefighting
systems, constructing WS
systems for separating water and
oil, and operation of automated
machines. The project costs a
total of NPR 4 billion (USD 30.46
million), with IOC funding NPR
1 billion (USD 7.62 million) and
NOC spending NPR 3 billion (USD
22.84 million). As gasoline, diesel,
and kerosene will be imported
through the pipeline, the number
of tankers used to import
petroleum products will drop,
which also means the technical
loss will be zero.270
Sunauli-Bhairahawa Integrated
Check Post Construction
Commenced
The construction of an integrated
check post at the Sunauli-
Bhairahawa border has been
initiated after being stalled for
years with the financial and
technological assistance of the
Government of India. Nepal and
India have signed agreements
to build the integrated border
checkpoint in Biratnagar, Birgunj,
Bhairahawa, and Nepalgunj. The
35 hectares of land acquired
in Nepal are owned by the
Ministry of Urban Development
(MoUD). The Indian government
has contracted with Rail India
Technical and Economic Service
(RITES) for the construction
of the integrated check
post. Nepal will assist in the
acquisition of building supplies
and offer a customs rebate on
the supplies and machinery
needed for the construction.
The new infrastructure includes
54 DOCKING NEPAL’S ECONOMIC ANALYSIS
the facilities of customs,
immigration, animal and plant
quarantine, parking, laboratory,
barracks, electricity substation,
petrol pump, fire truck, seed
house, warehouse, and banking
services.271
Dodhara-Chandani Dry Port
Boosts Economic Activity
The proposed Dodhara-Chandani
dry port in the Kanchanpur district
which included blacktopping of
900 meters of six-lane roads
and the construction of a bridge
over the Mahakali River has been
completed. As a result, the price
of land plots has increased.
Before this project, the locals
had to detour using the Indian
road to Nepali territory but
the construction of the bridge
has facilitated travel for the
locals. To prepare the site for
the construction of a customs
office, bank, godowns, and
railroad platform, the Mayapuri
and Gaurishankar community
forest’s trees are being cut
down. This is part of the proposal
to make Dodhara Chandani
a transit of Nepal, India, and
China. The project is expected
to create multiple employment
opportunities for the locals who
have been migrating to India in
search of jobs.272
Jorpati-Sundarijal Road
Widening Nears Completion
Despite Setbacks
After being delayed for years
due to obstructions from
different fronts, the Jorpati-
Sundarijal road expansion plan
is close to completion. Due to
the disagreements between
the construction workers and
locals, blacktopping work on a
50–60-meter section of the
road close to Nayapati remains
incomplete. Additionally, the
project has requested funding
from the government for building
bridges in at least three locations
along the road section. The
contract for road expansion
was signed in 2015, but it took a
long time due to obstruction in
removing electric poles and trees
on the way. The locals have been
having commute issues for a very
long time because the effort to
widen the route has not gone as
planned.273
Melamchi Water Distribution
Costly in Locations Outside
the Ring Road
The Project Implementation
Directorate (PID) has estimated
that it will cost more than NPR
23 billion (USD 175.13 million)
to distribute the water of the
Melamchi River to the locations
outside the ring road area of the
Kathmandu Valley. Intending to
deliver water to 17,000 outlets,
the PID has already constructed
a distribution network of 1,010
km, of which 830 km have been
tested. It is constructing a 796 km
distribution network under the
second phase, of which 430 km
has been completed. Currently,
the project is distributing 170
million liters of water throughout
the valley.274
Progress of 19 Mega Projects in
Myagdi uncertain
The construction of 19 mega
projects related to roads,
drinking water, transmission
lines, and hospital buildings
being operated through federal
and provincial governments in
the Myagdi district has been
in limbo. The projects have
been unattended with the
expired contract periods and
discontinuation of the projects
half way. Further issues regarding
the administrative, political, and
commercial access, apathy of
Project and Office Coordinators,
deficit budgetary arrangement,
and lack of adequate technical
human resources for monitoring
and evaluation have affected the
smooth run of the project cycles.
The Rahughat Hydropower Project
has an estimated investment
of NPR 7 billion (USD 53.30
million), while other unattended
and incomplete projects have
an investment of over NPR 4.5
billion (USD 34.26 million). The
Ratodhunga Substation, Beni-
Jomsom-Korala, Lampata-
Darwang-Ratnechaur-Beni,
Pokharebagar-Chitre, Galeswor-
Rakhu, Maldhunga-Beni road and
bridges over the Chhyarchhyare,
Argala, Bharwang, and Tukhu
rivulet are yet to be completed.275
Bheri Babai Project Reports 59%
Progress in 11 Years
It has been 11 years since the
Bheri Babai Multi-Purpose
Irrigation Project was launched
to provide irrigation services
to 51,000 hectares of land in
Banke and Bardiya. According
to the government target, it
should have been completed by
2022/23, but by mid-January
of the current financial year,
the overall physical progress
of this project has only been
59.10%. The National Planning
Commission has highlighted that
due to a lack of timely resource
management, there is no
consistency between the plans
and schedule of the builders.
Additionally, there are problems
 NEFPORT ISSUE 52 – MARCH 2023 55

and procedural complications
and the lack of clear policies and
procedures regarding Ailani land
that is adding to the complexity.
The government has allocated a
budget of NPR 1.94 billion (USD budget. The contractor
14.77 million) for the project, but company is unlikely to complete
the project has spent only NPR the construction within the
271.9 million (USD 2.07 million) stipulated time. 276
i.e. 13.95% of the allocated

Outlook
Nepal is making significant strides towards infrastructure development with several key projects
underway, such as the joint venture between India and Nepal to construct a petroleum pipeline,
and the construction of integrated checkpoints and dry ports. These projects help in minimizing
the cost of transit and transport whiling boosting cross-border trade. Although the inter-
country projects are moving ahead, the common infrastructure bottlenecks such as delayed
decision-making from the government, lack of monitoring, and lack of prompt action towards
contract breaching have been observed in the construction projects that have been going on for
years. The setbacks in the road widening and construction projects in Karnali, stalling of mega-
construction projects in Myagdi, and slow progress in the projects in Banke and Bardiya are the
common challenges faced by numerous other development projects throughout the country. The
slow pace of progress is largely accredited to the delay in payment by the government and the
limited capacity of contractors. These challenges not only have huge monetary costs but also
cost the quality of livelihood for the locals which needs to be resolved to accelerate the pace of
infrastructural development. On a positive note, the construction of a water distribution network
through the Melamchi project is in the second phase to provide accessible clean drinking water
throughout the valley. With persistent efforts to overcome the current challenges, Nepal is in a
favorable position to further improve and advance toward its infrastructure development goals in
the coming months.
56 DOCKING NEPAL’S ECONOMIC ANALYSIS

Information and FACTSHEET

Communication Tele density

127.23%277

Technology Internet data subscribers

38.25 million278

Number of smartphone users

37.15 million279
One of Nepal's fastest-growing industries is the information Internet Penetration
and communications technology (ICT) sector, which 31.06%280
has enormous potential for future growth. Foreign Direct ICT goods import as a % of total
import
Investment (FDI) is permitted in ICT-related services. In 1.026 billion281
enterprises related to telecommunications, up to 80% equity
holdings are permissible; however, 100% FDI is now allowed Total Digital Payment Transaction
4.145 trillion282
in businesses providing IT and IT-enabled services. Due to
their significant export potential, IT and (Business Process
Outsourcing (BPO) services have received special consideration from the Government of
Nepal (GoN). Information Technology Enabled Services (ITES) and BPO are two of the five top
potential services for export, according to the Nepal Trade Integration Strategy (NTIS). Nepal
has a significant potential for BPO because of its sizable, young, skilled, and low-paying English-
speaking work force. The ongoing development of the internet and telecommunications
infrastructures has been a key driver for the growth of ITES. Nepal is also becoming a desirable
IT destination as India's labor costs rise.

Smart Telecom Pvt. Others

Ltd. 0%
7%

Figure 18. Market Share of Ncell Axiata Ltd

36% Nepal
Telephone Operators Doorsanchar
Company Ltd.
57%

Source: NTA MIS Report Kartik

2079 (Mid-Nov to Mid-Dec
2022)
 NEFPORT ISSUE 52 – MARCH 2023 57

Others WorldLink
TechMinds 12% Communications
Network Pvt.Ltd. Ltd.
4% 29%
Web Surfer Nepal
Communication.
System Pvt. Ltd.
5%

Nepal
Dish Media
Figure 19. Market Network Ltd.
Doorsanchar
Company Limited
share of Internet 8% 12%
Service Providers in
Subisu Cablenet
Nepal Ltd.
10%
Classic Tech Pvt.
Vianet
Source: NTA MIS Report Ltd.
Kartik 2079 (Mid- Nov to communications
10%
Mid- Dec 2022) Pvt. Ltd.
10%

160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00

Figure 20. Growth 0.00

Trend of Voice and

22

22

2
22

22

22
22

22
02

02
02

02
20

20

20
20

20
20

20
il 2

r2
t2

r2
Data Services
ay
y

ry

ch

ly
e

er
us

be
be
ar

Ju
ua

Ap

b
M
ar

Ju

g
nu

m
em

to
Au
id
M
br

id

id
id

ve
Oc
Ja

pt
Fe

M
id

id

No
id

Se

id
M

M
id
M

id
M

id

M
M

Source: NTA MIS Report

Kartik 2079 (Mid- Nov to Fixed Mobile Other Total Total Broadband
Mid- Dec 2022)

Nepal ranks low in Digital
Entrepreneurship and
Innovation
Nepal fared poorly in two
international rankings for
digital entrepreneurship and
innovation, finishing last. Both the
International Intellectual Property
Organization and the Asian
Development Bank (ABD) gave
Nepal poor grades in these areas.
In the list of 113 economies in
terms of digital environments and
entrepreneur support systems,
Nepal is rated 104th. Nepal is
placed 111th out of 132 countries
in the Global Innovation Index the Regulation on Quality of
2022. Nepali business owners Telecommunication Service,
claim that for their country to 2023, which will come into
compete on the world market, effect from April 14, 2023. The
robust rules regarding intellectual regulation requires internet
property rights, trademarks, service providers to compensate
and copyrights are needed. their customers in case of
They claim that the government service disruption at specified
has not been able to foster periods. Mobile network
an atmosphere for innovative providers are required to
firms.283 compensate mobile data users
if their service is interrupted
New Regulation on Quality of during the package's duration,
Telecommunication Service whereas ISPs are required to
offer fair compensation to
The Nepal Telecommunications affected customers for fixed
Authority (NTA) has issued broadband internet users if
58 DOCKING NEPAL’S ECONOMIC ANALYSIS
their service is interrupted for
a longer time. Consumers can
seek compensation and service
providers will have to offer either
a free extension of the service or
a reduction in charge during the
compensation period.284
Fiber Internet Users Crosses 2.3
Million
Nepal Telecom (NTC) added the
highest number of customers in a
single month. In Nepal, more than
2.3 million people are using fiber-
optic internet. The expansion
of fiber internet services, and
affordable packages have
contributed to the consistent
growth of fixed-line connectivity
throughout the country. The
regulator’s latest Management
Information System (MIS) report
for mid-September shows that
there are currently 23 lakhs, 9
thousand, 1 hundred, and 47 users.
The internet service providers
added a total of 56 thousand,
and 32 users from Ashwin.285
ISPs to be consistent in
providing service
The quality regulation 2079
recently passed by the regulatory
authority will revoke the licenses
of service providers who cannot
provide quality mobile and
telecommunication services at
the specified level. To maintain
the quality of service, service
providers must test and measure
the quality of services they
provide at different locations and
submit the report to the authority
every three months. The authority
can monitor, inspect, examine, or
conduct any special type of test
or measurement on the matter of
whether the quality is maintained
according to the regulations
and the reliability of the quality
measurement report submitted
by the service provider.286
MDMS system in chaos
The Nepal Mobile Distributors
Association (NMDA) pledged the
immediate implementation of
the Mobile Device Management
System (MDMS) to address the
illegal mobile phone trade, which
deprives the government of
revenue and puts consumers at
risk. Despite efforts to implement
the MDMS, its implementation
has been postponed due to
rumors about potential issues
with phones brought in by
citizens from abroad.287 The Nepal
Telecommunications Authority
(NTA) had to postpone the
implementation of the MDMS due
to PM Dahal's directive but will
move ahead after receiving clear
guidelines and instructions. The
NMDA requested the government
to quickly implement the system
and provide tax exemptions
and free registration for Nepali
citizens residing overseas so
that the government can support
legitimate mobile businesses and
counteract illegal trade, while
also serving the best interests of
Nepali citizens.
New Directive Regarding In-
flight Communication (IFC)
The Nepal Telecommunication
Authority (NTA) has issued
an interim directive regarding
'Inflight Communication' (IFC)
i.e., the communication service
provided inside the airplane,
and has opened permission for
such service. IFC services are
prohibited within 10,000 feet
above the ground, while moving
on the ground, during take-off
or landing. Airplanes registered
in Nepal have to follow the
rules of the foreign land and
sky, and Nepal has agreed to
the International Civil Aviation
(Chicago Convention).288
Nepal Telecom fiber internet
expanded to 68 Districts
Nepal Telecom's fiber internet
service has expanded to 68
districts in a short period. NTC
has plans of expanding the (Fiber
To The Home) FTTH service to
provide phone, internet, and
television services through a
single fiber nationwide. The
plan to extend the FTTH service
has extended to 68 districts
already and the process for the
remaining districts has also been
advanced.289
 NEFPORT ISSUE 52 – MARCH 2023 59

Outlook
Nepal has taken steps to improve its digital infrastructure and services despite poor performance
in digital entrepreneurship and innovation. The government of Nepal (GoN) has implemented
a quality regulation to ensure quality services from providers which will further ensure the
uninterrupted delivery of the service. The number of customers utilizing the internet has increased
along with the fiber internet's expansion, which will further improve internet penetration. However,
the implementation of the MDMS will deny access to the unregistered phones brought illegally into
Nepal, which means that users of such phones would not be able to use any services provided by
Nepali telecom service providers, including mobile data.

Despite the positive developments, Nepal still has a long way to go in terms of improving its digital
entrepreneurship and innovation performance. The government needs to create a more conducive
environment for innovative businesses, and there is a need to strengthen laws for intellectual
property rights.
60 DOCKING NEPAL’S ECONOMIC ANALYSIS

Education
Nepal's education sector has undergone significant
advancements, particularly concerning its educational FACTSHEET
infrastructure. During the review period, recent
improvements were made to libraries and schools, and a
bill proposing the establishment of a University of Nepal Education indicators estimated
FY 2021/22
that offers multi-disciplinary liberal arts education has
progressed to the House of Parliament for discussion.
Despite these achievements, remote regions in the Basic level class completion rate
from 1 – 8 290
country continue to encounter persistent challenges such 76.2%
as inadequate access to higher education and textbooks.
The Pushpa Kamal Dahal-led government has committed Net enrolment rate at the
secondary level (class 9–12)291
to achieving complete literacy within two years through 54.3%
its Common Minimum Program. Additionally, the School
Sector Education Plan has garnered support from Retention rate up to grades 9–12292
33.1%
international donors, providing it with the resources
needed to enhance its initiatives. Literacy rate (age group 15-24
years)293
88.6%

KEY DEVELOPMENTS 17, 2023, resigned on February 6,

Bill to form University of
Nepal Progressed to House
Proceedings
The University of Nepal Bill 2079
has progressed to the House
of Parliament proceedings and
is being considered by the
Legislative Affairs Committee. The
University of Nepal Infrastructure
Development Board has been
working towards developing the
academic programs, acquiring
land, generating funds, and
planning the infrastructure for
the proposed university, which
will be located in Nawalparasi as
per its current plan.296 However,
the approval of the bill could be
delayed by the absence of an
Education Minister. The former
Education Minister Shishir Khanal,
who was appointed on January
along with the rest of the Rastriya
Swatantra Party, suggesting how
political instability has spilled
over the education sector’s
inability to grow. Seven groups of
lawmakers have registered their
amendments to the bill, which will
be discussed during the clause-
wise deliberation. The field report
from the lawmakers’ visit to the
proposed site of the university’s
central office and its campuses
will be discussed after the House
starts detailed deliberations on
the bill as well.297
Matribhumi Community Library
Opened in Syangja
An earthquake-resistant library
has been constructed in the
Birghakatti village in Kaligandaki
Rural Municipality-4, Syangja.298
It was part of a project
supported by the Government
Gender equality indicator (based
on the secondary level net
enrolment rate)294
1.01
Access to technical education
(number of local levels)295
655
of Japan under the Grant
Assistance for Japanese NGO
Projects schemes. The project
is being implemented by the
Japanese NGO, Shanti Volunteer
Association.299 Under the same
program, the Government of
Japan has further assisted in the
construction of the earthquake-
resistant Sunaulo Library in
Sunsari, which was inaugurated
on December 24, 2022. The
library is also equipped with a
computer room and a meeting
room for promoting activities to
empower and improve the lives
of the local people.300

Physical Infrastructures to be
Constructed in 143 Baglung
Schools
Physical structures and ICT labs
are planned to be constructed
in 143 schools in the Baglung
district in the current fiscal year.
The local governments in Baglung
district have forwarded the
process for signing the contract
for constructing a four-room
block at 46 schools and a two-
room block at 62 schools. Various
structures would be constructed
at 108 schools and ICT labs built
at 35 schools in the current
fiscal year under the President
Education Reform Program run
by the federal government. The
cost of development of the
physical infrastructures and ICT
labs have been earmarked to be
a total of NPR 407.7 million (USD
3.1 million)—NPR 230 million (USD
1.75 million) for four-room blocks,
NPR 155 million (USD 1.18 million)
for two-room blocks, and NPR
22.7 million (USD 172,848.34) for
ICT labs. NPR 407.75 million (USD
3.1 million) has been allocated
under the program in Baglung for
FY 2022/23. 301
Lack of Secondary Schools
Hampers Education Completion
Due to the lack of a secondary
school, the students of Manthali
Municipality's Ward No. 6 in
Ramechhap have been unable
to complete their education.
The local Hulakdanda Basic Level
School only offers classes from
Early Childhood Development
grades to the eighth grade. It was
unable to upgrade to a higher
level of education because it
lacked the necessary buildings
and infrastructure required for
obtaining approval from the local
unit. To continue their studies,
students would need to walk for
three hours to reach the nearest
secondary school in Ramechhap
or rent a room near a secondary
school. For many rural families,
the opportunity to travel to
pursue their education is not a
readily available privilege. The
cost of rent and other necessities
in a different district is often
too high, causing students to
abandon their studies due to
financial constraints.302
Textbook Shortage Continues in
Karnali Province
The new academic session
for Karnali Province started in
the second week of February
2023, but students from the
mountainous districts of the
province are yet to receive their
textbooks. This is a recurring
issue that constantly forces
students to attend schools,
and give examinations, without
having access to textbooks.303
The extent to which this situation
has worsened can be attributed
to the absence of accountability
and timely decision-making by
multiple stakeholders. Janak
Education Material Centre Limited
(JEMC), the country’s largest
printing press, has been given
the right to print 15 million books
for classes 6 to 10, of which 7.5
million books have been printed
so far. JEMC has expressed
concerns about the shortage
of paper, which has been
decreasing its printing speed.
However, a spokesperson has
claimed that JEMC could print
the required books and stated
that the shortage of books in rural
areas is caused by a distribution
issue. Additionally, there have
been complaints of depot heads
NEFPORT ISSUE 52 – MARCH 2023 61
creating an artificial shortage of
books by not distributing them
in the first place. Further, the
Curriculum Development Centre
did not release a notice regarding
the syllabus and distribution on
time, creating confusion among
private publishers as well.304 The
lack of study materials, as vital
as textbooks, directly affects the
quality of education students
receive and negatively affects
their motivation of students to
learn.305 It acts as the biggest
challenge in uniformly achieving
educational goals.
EXAMINATION
Entrance Exam for Grade
One Admission Prohibited
The Early Development Branch
of the Centre for Education and
Human Resource Development
(CEHRD) has directed schools
across the country to not
conduct entrance exams for
students seeking admission into
grade one. Various stakeholders
and experts have raised concerns
about the undesirable long-term
effects of holding competitive
entrance exams for children,
especially exams that are focused
on memorization.306 CEHRD
has further asked stakeholders
not to run entrance exam
preparations for the same and
has directed the local level and
district coordination committee
to monitor such activities. It
has instructed Montessori and
private schools to focus on
the holistic development of
children in pre-primary classes.
The center has instructed
educational institutions to only
organize activities that will aid
in the overall development of
pre-primary and Montessori-
62 DOCKING NEPAL’S ECONOMIC ANALYSIS
level students. This directive,
which garnered complaints
from concerned stakeholders
and education experts, is seen
as a proactive measure toward
transforming the education
system for young learners. It aids
in moving away from traditional
pedagogical practices that rely
heavily on rote learning and
memorization as well.307
Students Protest Tribhuvan
University’s Failure to Publish
Timely Results
Tribhuvan University, Nepal’s
oldest and largest university,
has been unable to follow the
academic calendar, leading
to delays in publishing exam
results for a year, especially with
results of the third and fourth
years of the Bachelor's program.
Due to the delay in releasing
results and subsequently
opening admissions, numerous
students have been unable
to meet deadlines and have
missed opportunities for
pursuing further studies.308
Students are concerned about
falling behind their peers and
losing further opportunities
due to the mismanagement
and lack of dependability
shown by the administration.
Many have expressed that
the administration’s failure
to address the low-quality
instruction and outdated
curriculum have additionally
fuelled their decision to study in
foreign universities, where they
receive better education and
more opportunities.309
The All-Nepal National Free
Students Union (ANNFSU)
affiliated with the CPN-UML
padlocked the Office of the
Controller of Examinations of
Tribhuvan University in protest
after repeatedly submitting
demands to the university
administration, holding
discussions, and protests. The
Central Committee of ANNFSU,
Kathmandu District Committee,
Lalitpur District Committee,
and other student leaders of
the union have demanded the
resignation of the controller
following an incident where
students were made to retake
the examination after the
university administration had
lost the answer books from an
examination centre.310
PROGRAMS AND PLANS
Goal to Achieve Total Literacy
by FY 2023–24
The government has pledged
to achieve total literacy by the
fiscal year 2023–24 through its
Common Minimum Program,
making it the fourth time the
government has set a two-year’s
deadline to achieve the goal.311
The government has prepared
a 12-point checklist that
incorporates various abilities
including reading letters, writing
names, operating mobile phones,
and reading a calendar to qualify
as literate. Further, total literacy
can only be achieved when a
district as a whole achieves at
least 95% literacy. Currently, 62
out of 77 districts have been
considered to be literate, and as
many as 175 local units out of 753
have not been able to achieve
total literacy. Local governments
have deployed secondary-
level students to gather data on
the exact number of illiterate
people through door-to-door
campaigns. 312
Finland Contributes to UNICEF’s
Efforts in Nepal
The Government of Finland has
committed to providing EUR 4.2
million (NPR 589 million or USD
4.49 million) to United Nations
Children's Fund’s (UNICEF) efforts
in Nepal to strengthen school
readiness, foundational learning,
and inclusive education models.
The partnership agreement
between Finland and UNICEF
for 2023–2027 supports the
government’s School Sector
Education Plan (SESP). The
program will also seek to provide
access to education participation
and learning outcomes to
children highly affected due to
COVID-19 or natural disasters.313
ADB Approves Loan to Nepal for
Education
The Asian Development Bank
(ADB), on December 6, 2022,
approved a USD 200 million (NPR
26.26 billion) concessional loan
to help the Government of Nepal
strengthen the education system.
It is intended to assist in the
implementation of the first five
years of the SESP. The program
will be upgrading selected
secondary schools to increase
opportunities to study science in
grades 11–12, especially for female
students, and will be expanding
the pro-poor scholarship
program to grades 6–12. ADB
will further provide an additional
USD 1 million (NPR 131.33 million)
technical assistance grant and
administer the equivalent of a USD
600,000 (NPR 78.8 million) grant
from the Government of Norway
to support capacity-building

activities, strengthen program
management and coordination,
and improve the monitoring
and reporting capability of the
Ministry of Education, Science,
and Technology. 314
Mid-day Meal Scheme Failed to
be Implemented in Ramechhap
According to the District
Education Office, the
government has not been able
to effectively implement the
mid-day meal scheme in any
of the 396 community schools
in Ramechhap. Under the mid-
day meal program, the federal
government provides NPR 15
(USD 0.11) per day to each
student up to grade 6 in the
community schools through
the local units. The Centre for
Education and Human Resource
Development of the Ministry
of Education, Science, and
Technology had prepared a set
of rules for community schools
to adopt in their midday meal
program to ensure that children
get a healthy and nutritious diet,
which included ceasing junk food
consumption. However, many
children in community schools
in Ramechhap rely on junk food
to curb hunger. Further, schools
provide lunch money to students
instead of prepared meals as the
money received from the local
government is budgeted only
for food without provisions for a
cook, utensils, and appliances. 315
India Invests in Updating
Education Infrastructure
The latest Indian budget has
allocated INR 1.13 trillion (NPR
1.79 trillion or USD 13.69 billion)
for national-level education
spending, making it the highest-
ever amount for the sector.
One of the key focus areas was
developing technology and
infrastructure for more accessible
and resilient education.316 The
budget laid out plans to include
information and communications
technology implementation in
its program for teacher training
and to create a National Digital
Library along with supporting
infrastructure to overcome the
pandemic learning loss. India will
also be forming multiple Artificial
Intelligence Centres of Excellence
to strengthen its research and
development in technology. 317
Nepal’s budget for the current
fiscal year has included
technological development in
education as well by allocating
NPR 8.88 billion (USD 67.62 million)
for the construction of 1,200
community school buildings with
technical infrastructure, and the
allocation of NPR 100 million (USD
761,446.44) to purchase digital
learning materials to enhance
the learning ability of students.
To increase the coordination and
NEFPORT ISSUE 52 – MARCH 2023 63
effectiveness of research, it has
provisioned Tribhuvan University
to be developed as a Centre of
Excellence, and for the formation
of a Research and Development
Committee consisting of
executive heads of research
councils and educational
institutions.318 However, Nepal
still falls behind in terms of
specialized research, especially
concerning technology and
artificial intelligence—a fast-
growing sector that many youths
are showing an interest in to be
able to compete in the global
workforce.
There have been no provisions for
establishing a structure similar
to the National Digital Library
or physical libraries to increase
access to educational materials
crucial for skill development. India
has taken another step to further
inclusivity in education with
740 Eklavya Model Residential
Schools, which will recruit 38,800
teachers and support staff, and
serve 350,000 tribal students in
the next three years.319 While the
Nepali budget has mentioned
the implementation of programs
to increase access to quality
education for marginalized
communities, no concrete
measures have been taken with
students of community schools
from remote areas continuing to
be the victim of mismanagement
and education of poor quality.320
64 DOCKING NEPAL’S ECONOMIC ANALYSIS

Outlook
The persistent lack of infrastructure and textbooks in the education sector of Nepal has impeded
rural students' access to quality education and contributed to a high dropout rate. To address
these challenges, the government has committed to improving the sector through infrastructure
development projects. International partners have expressed interest in strengthening education
in the country. The government's aim to achieve total literacy in two years, along with the SESP,
could have a positive impact on the education sector. Along with infrastructural challenges, the
government must also address the issue of mismanagement within educational institutions
and government bodies to ensure the effective implementation of its plans and strategies.
Mismanagement within Tribhuvan University has resulted in delayed publishing of results,
discouraging students from pursuing further studies domestically and contributing to the issue
of brain drain. Furthermore, it is imperative to resolve the issue to be able to effectively establish
Tribhuvan University as a Centre of Excellence. The proposed University of Nepal aims to address
this issue through a liberal arts approach and autonomous management, but strong coordination
and management will be crucial for achieving its objectives. Further, the university will need to
provide a wide range of degree courses with a robust research program and modern curriculum
to be able to compete with foreign universities. Nepal’s investment towards developing research
and development within its educational institutions this fiscal year would be of encouragement to
researchers and professionals in the coming quarter if successfully implemented.
 NEFPORT ISSUE 52 – MARCH 2023 65

Health FACTSHEET
(Health indicators)

Fertility rate (per woman)321

During the review period, there was a surge in demand 2.1
for COVID-19 booster vaccines, necessitating the
government to request additional doses and give priority Infant mortality rate (per 1,000 live
births)322
to specific vulnerable populations. The significance of 28
vaccination became more apparent as the risk of measles
increased. Health authorities faced the challenge of Neonatal mortality rate (per 1,000
live births)323
managing various diseases within a constrained budget 21
and inadequate resources. Moreover, the government
worked towards enhancing healthcare access in rural Fully vaccinated with basic
antigens (12–23 months)324
regions, particularly for pregnant women and children, by 80%
improving health infrastructure.
Fully received COVID vaccination325
76.5%

COVID-19 UPDATES AND Government Urges People to Public Health Facilities326

HEALTH RISKS Get Booster Shots 6,214

Nepal Receives Pfizer-BioNTech
Vaccines
Nepal has received around 1.3
million doses of Pfizer-BioNTech’s
bivalent COVID-19 vaccine from
COVAX, as of February 27, 2023.327
It is part of the 1.5 million booster
and second booster doses
that the Ministry of Health and
Population (MoHP) requested
after the demand for shots grew
in the country with new cases
surging in India and China. Health
Ministry officials stated that the
bivalent vaccines are part of
the 9.2 million doses promised
to Nepal by COVAX of which 3
million doses have been supplied
so far.328 The Drug Advisory
Committee granted emergency
use approval to Pfizer-BioNtech’s
bivalent vaccine on December
27, 2022.329 As of February 21,
2023, Nepal had received a total
of 61,776,770 vaccine doses.330
With at least 17 sub-variants
of the Omicron variant of
COVID-19 circulating in Nepal,
the government had urged
people to get booster shots to
subdue the risk of another surge
in infections. The MoHP expects
a new surge in cases after the
early-January spike in China and
a marginal rise in India.331 Officials
have started administering
second booster shots to certain
priority groups, including
pregnant women, people with
compromised immunity, people
suffering from chronic diseases,
and those above 55 years of age,
after receiving additional Pfizer-
BioNTech bivalent vaccines via
the COVAX facility.332 However,
the booster shots have not been
made available to people outside
the priority list, including a large
number of youths planning to go
abroad. Ministry officials have
ensured that all citizens above
12 years of age will be given the
bivalent vaccine once sufficient
doses arrive.333
Measles Outbreak in Five out of
Seven Provinces
The measles outbreak, first
reported in Banke district at the
start of 2023, has now spread
to several local units in five
provinces, including Surkhet,
Mugu, and Rukum West districts
of Karnali; Bardiya and Dang
districts of Lumbini; and Kailali
and Kanchanpur districts of
Sudurpaschim. Many cases have
also been identified in Madhesh
and Koshi Province. Banke district
alone recorded 322 positive cases
and one death as of February 9,
2023. The MoHP is not planning
to launch a nationwide measles
vaccination drive, instead, they
are opting to launch vaccination
drives in disease-hot areas
66 DOCKING NEPAL’S ECONOMIC ANALYSIS
only.334 The measles vaccine has
already been administered to
168,000 children in Banke. Health
officials have been seeking help
from religious leaders to increase
vaccine coverage as locals of
certain religious groups have
greater trust in them than in health
officials. Religious populations
in affected areas must be
immunized as most measles
outbreaks have been reported
among marginalized and minority
religious communities.335 Experts
have attributed the outbreak to
low vaccination coverage, and
have raised concerns about
the increase in the number of
unvaccinated children from 1% in
2016 to 4% in 2022.336
Budget Cuts Impede Campaign
Against Malaria
The MoHP has reported at least
21 new cases of malaria since
the start of 2023. It has even
been reported in mountainous
districts that were previously
considered non-endemic.
Initially, the government had
planned to purchase 180,000
lasting insecticide-treated
beds, of which only 120,000
were purchased due to budget
crunches. The Epidemiology and
Disease Control Division (EDCD)
was also able to purchase only
315,000 pieces of malaria testing
rapid diagnostic kits out of the
planned 500,000. Officials
stated that despite investments
from the government and the
Global Fund (a program that
aids low and middle-income
countries raise funds to deal
with HIV/AIDS, tuberculosis, and
malaria), the allocated funds
are insufficient. This has raised
concerns about whether malaria
programs could be run in a full-
fledged manner or not. Ministry
officials stressed the importance
of continuing the distribution of
insecticide-treated bed nets to
the residents of affected areas to
control the spread of the disease.
337
The EDCD also had been
carrying out malaria screening
at border points to reduce the
risk of local transmission from
imported cases of malaria,
which made up 473 of the 517
cases of malaria detected in
2022. The open border between
Nepal and India and the frequent
movement of people between
the two countries have impeded
the efforts to identify cases at
the border.338
Nepal at Risk of Surge of Dengue
In 2022, at least 62 people died of
dengue and around 54,784 others
were infected with the dengue
virus, which had spread to all 77
districts, according to the MoHP.
However, data from the EDCD
show that the death toll from the
disease has reached at least 88
people.339 Experts believe that
the actual number of cases could
be much higher as many dengue
patients are asymptomatic
and do not seek hospital care.
While the number of reported
cases decreased in the colder
months, they are expected to
surge again as the weather gets
warmer. Further, experts warn
that it may be more widespread
due to the rising temperatures
linked to climate change, calling
for the government to take more
proactive measures to control the
spread. The government has been
focusing its efforts on spraying
insecticides and on conducting
awareness campaigns.340
Officials in Nepal have stated
that the dengue virus has
become endemic in the country
because dengue outbreaks are
occurring throughout the year,
as opposed to only during the
post-monsoon season. Experts
have raised concerns about the
lack of preventative measures,
public awareness, and delays in
healthcare delivery as possible
reasons for the high death rate.341
KEY DEVELOPMENTS
Government Administers HPV
Vaccine to Adolescent Girls in
Chitwan
Cervical cancer, caused by the
Human Papillomavirus (HPV),
is a major cause of death
among young Nepali women
with over 700 patients seeking
treatment annually at the
BP Koirala Memorial Cancer
Hospital (BPKMCH), Bharatpur
alone. To combat this, the MoHP
has completed the process to
purchase 6,250 HPV vaccines.
Girls between the ages of 11–
13 years in Chitwan are being
administered the vaccine by the
BPKMCH in schools and local
health facilities free of cost.
5,000 girls have already been
administered the HPV vaccine.
Nepal has also requested the
Global Alliance for Vaccine and
Immunisation (GAVI) to provide
the HPV vaccine for free so
that it could be included on the
regular immunization list in a bid
to improve the administration
process of the vaccine. However,
Nepal receiving the vaccine from
GAVI in 2023 is unlikely due to
growing global demand.342

Imports from 16 Indian Maternal and Neonatal
Pharmaceutical Companies Healthcare Significant
Banned Number of Women Deprived
of Maternity Services
The Department of Drug
Administration (DDA) has barred According to the Nepal
the import of pharmaceutical Demographic and Health Survey
products from 16 Indian (NDHS) 2022, around 30% of
pharmaceutical companies women in Nepal do not receive
that failed to comply with the postnatal check-ups within the
World Health Organisation first two days after birth; 20% of
(WHO)’s good manufacturing the women give birth at home
practices. The list includes Divya and 6% of women do not receive
Pharmacy, Radiant Parenterals antenatal care visits.345 Maternity
Ltd., Mercury Laboratories care visits, including antenatal
Ltd., Alliance Biotech, Captab care visits, postnatal care visits,
Biotec, Aglowmed Limited, and institutional delivery, are
Zee Laboratories Ltd, Daffodils provided by the government
Pharmaceuticals Ltd, GLS pharma free-of-cost at state-run health
Limited, Unijules Life Science facilities throughout the country
Ltd, Concept Pharmaceuticals to lower the maternal death rate.
Pvt, Shree Anand Life Sciences While many of the indicators
Ltd, IPCA laboratories Ltd, have improved from NDHS 2016,
Cadila Healthcare Ltd, Dial there is still a large number of
Pharmaceuticals, Aglowmed women who are deprived of
Limited, and Mackur laboratories basic services offered by the
Ltd. According to the DDA, government. Experts state that
the products of some of the access to quality healthcare
companies on the list failed facilities and the availability of
to comply with regulatory trained human resources are
requirements while others the major challenges to reducing
did not comply with good maternal mortality.346 Nepal
manufacturing practices. 343 recorded 90 maternal deaths
“Good manufacturing practices” in the first seven months of the
ensures that products are current FY 2022-23 (July 17
produced and controlled 2022 to February 12, 2023). In
according to set quality standards FY 2021-22, 180 maternal deaths
to minimize risks involved in were recorded throughout the
pharmaceutical production. It country, an increase from the
encompasses everything from 118 recorded in FY 2020–21.
the raw materials, facilities, and Further, Excessive bleeding
equipment, to staff training and after childbirth, also known as
personal hygiene. It is imperative postpartum hemorrhage, and
to have thorough written pregnancy-related high blood
protocols for every step that pressure disorders have been
could impact the final product's identified as some of the major
quality.344 causes of maternal deaths in
NEFPORT ISSUE 52 – MARCH 2023 67
Nepal, only exacerbated by
a delay in required medical
intervention.347
Kanti Children’s Hospital
Expands Neonatal Care Units
Kanti Children’s Hospital, the
primary center for pediatric
care in the country, has started
expanding neonatal intensive
care unit beds and pediatric
intensive care unit beds. The
hospital will have 20 neonatal
intensive care unit beds and
15 pediatric intensive care unit
beds. It is also setting up a five-
bed kangaroo mother care unit
at the hospital. Starting kangaroo
mother care, which involves skin-
to-skin contact and exclusive
breastfeeding, immediately after
birth could potentially save
up to 150,000 lives annually.
The decision aims to provide a
wider range of services to ailing
children within the hospital itself
rather than needing to refer the
children to private hospitals.
Parents who are not able to afford
private care did not have the
option of treatment, contributing
to Nepal’s neonatal death rate.348
The National Demographic and
Health Survey 2022 showed that
Nepal’s neonatal death rate was
21 per 1,000 live births, which is
the same rate as the National
Demographic and Health Survey
2016.349 Kanti Children’s Hospital’s
recent development in neonatal
care aims to make specialized
services more accessible to
reduce the neonatal death rate.
68 DOCKING NEPAL’S ECONOMIC ANALYSIS

Kolti Primary Health Centre
Initiates Specialist Services for
Pregnant Women
Kolti Primary Health Centre
of Bajura, a remote district in
Sudurpaschim province, has
initiated specialist services
in gynecology and obstetrics
including cesarean surgery. It
benefits the populations residing
in Khatyad Rural Municipality of
Mugu, Palata, and Pachal Jharana
rural municipalities of Kalikot,
Tajakot, Adanchuli, and Sarkegad
rural municipalities of Humla.
The health center commenced
the services at the initiation
of the Karnali Academy of
Health Science and Budhinanda
Municipality to reduce the
maternal mortality rate and have
accessible quality health services
for which patients would have
previously needed to travel to
Martadi, Dhangadi, or Nepalgunj.
Budhinanda Municipality has
made provisions for air rescue
services in case treatment is
not possible locally. However,
such services have not been
effective due to the local airport
not having regular air services.
350
The Government of Nepal
provides air rescue services in
case of medical emergencies in
an attempt to increase access
to specialized medical treatment
in remote areas. As many villages
are not connected by roads,
people residing in remote areas
have no alternative but to charter
a helicopter to reach hospitals for
emergency medical treatments.
However, helicopters are also not
efficient solutions for restricted
rural areas like Upper Mustang,
Upper Dolpo, Manaslu, Lower
Dolpo, Upper Gorkha, Rasuwa,
Manang, Humla, Mugu, Makalu,
Kanchenjunga and Gunsha
in Taplejung, as the process
for acquiring the permits for
helicopters is quite lengthy. Not
having readily available access
to specialist health services in
these areas puts the health of
patients, particularly pregnant
women, at risk. 351 Delays in
medical intervention can be
quite fatal, which brings the need
of providing such services to
people locally.

Outlook
The COVID-19 vaccination drives to administer second booster shots is expected to expand
beyond the priority list as the government receives more doses. However, outbreaks of various
diseases like dengue, malaria, and measles could strain the resources of the MoHP as they work to
control the spread of these diseases. The Health Ministry needs to update prevention measures
against the spread of such diseases. Fast proactive action, including destroying mosquito nests,
eggs, and stagnant bodies of water, is crucial as the summer and monsoon seasons approach,
which could result in surging cases of malaria and dengue.

The government has made efforts to improve access to healthcare, especially maternal healthcare
in the past few quarters. While emergency air rescue services have been helpful for rural patients,
they are not sustainable in the long-run due to high costs and low efficiency. To increase access to
healthcare among rural populations, healthcare infrastructures with skilled human resources need
to be available locally. Hospitals and health centers establishing better infrastructure for neonatal
and pregnancy care is a step towards better accessibility to quality healthcare. The momentum
should be continued with more investments to make specialized health services readily available
at an affordable rate to rural populations.
 NEFPORT ISSUE 52 – MARCH 2023 69

FACTSHEET

Tourism No. of tourist arrivals (as of

January 2023)
55,704352

Outstanding Credit to the

The Nepali tourism industry has gradually recovered from the tourism industry
NPR 23.49 billion
adverse impacts of the COVID-19 pandemic. As the influx (USD 178.92 million)353
of tourists increased during the review period, monetary
Number of hotels listed in NEPSE
transactions in the tourism industry also witnessed a recovery,
5354
with an increase in travel income and travel spending in 2022,
as compared to 2021. Despite the recovery, both remain below Security market turnover (mid-
July to mid-January 2022)
their pre-pandemic levels. Nepal's stock exchange platform, NPR 2.05 billion
Nepal Stock Exchange (NEPSE), has reported a net profit for (USD 15.67 million)355
all the listed five-star hotels. Additionally, the reopening of
luxury resorts inside Chitwan National Park and Mustang is Security market capitalization
NPR 55.39 billion
anticipated to attract luxury tourism in Nepal. However, due to (USD 421.78 million)356
the recent Yeti Airlines plane crash in January, Nepal has dealt a
significant blow to the tourism industry, which was attempting
Consumer Price Inflation
to revive from the effects of the COVID-19 pandemic. The (Restaurant and Hotel)
15.56% (as of January 2023)357
incident highlights the importance of ensuring the safety of
the aviation and tourism sectors, which are crucial to Nepal's
FDI commitment in tourism
tourism economy. sector
(as % of total FDI)
20.5%358

TOURIST ARRIVALS period, the number of tourist The Average stay of tourist
arrivals in Nepal has increased in 15.5 days359

Increasing influx of tourists this review period as well. Around

Having been adversely affected
by the COVID-19 pandemic and
its subsequent travel restrictions
along with the lockdowns, majorly
in FY 2020/21, the tourism
sector in Nepal faced significant
downturns since then. With
the gradual relaxation of the
pandemic-induced restrictions
since FY 2021/22, the tourism
sector witnessed a gradual
recovery.
Continuing from the past review
614,148 foreign visitors came to Average spending per tourist per
day
Nepal up until December 2022 USD 84 (NPR 11,031)360
of FY 2021/22, representing
a significant increase of Number of hotels registered
(with star rating)
306.82% when compared to
162361
the corresponding period of
FY 2020/21.365 Additionally, Number of casinos registered
55,074 tourists have arrived 24362
as of January 2023, which is a
224.44% increase from January Number of travel agencies
2022, indicating a promising start registered
3,801363
to the Visit Nepal Decade 2023-
2032, declared by the Ministry of
Number of registered tour guides
Tourism.366 4,557364
70 DOCKING NEPAL’S ECONOMIC ANALYSIS

Figure 21. Tourist

Influx in January
from FY 2008/09
to FY 2022/23

Source: Current
Macroeconomic and
Financial Situation Table
(Based on Six Months of
Data), Nepal Rastra Bank

Nepal. However, often many of shown in the figure below, the

Highest Number of Tourist
Arrivals in Nepal from India
Nepal has been welcoming
tourists from all around the world
for decades. Among the many
countries, India, its neighboring
country, has traditionally been
the largest source of tourists for
highest number of tourist arrivals
the tourists that enter through
in Nepal have been from India for
the land border are unaccounted
this review period as well. Aside
for. This is because of the open
from India, the United States, the
border that the two countries
United Kingdom, Australia, and
share and the Indo-Nepal Treaty
Bangladesh have recorded the
of Peace and Friendship of
highest number of tourist arrivals
1950, which allows citizens of
in Nepal.368
either country to enter the other
without a visa.367 Accordingly, as

Year
Tourist Arrival by Nationality
2021 2022

India 64672 209105

United States (US) 22854 77000

Table 11. Tourist
Arrival in Nepal
United Kingdom (UK) 8680 44700
by Nationality in
January of the year
2021 and 2022 Australia 2477 26800

Bangladesh 5044 25300

Source: Current
Macroeconomic and
Financial Situation Table Others 47235 231243
(Based on Six Months of
Data), Nepal Rastra Bank
Total 150962 614148

It is crucial to note that since
Nepal also shares its border with
China, a leading giant in the world,
and given that Chinese tourists
are one of the largest groups of
foreign tourists to visit Nepal in
the past, their absence as tourists
has negatively impacted the
growth of the tourism industry.369
Alongside, domestic tourism has
also been prospering in Nepal,
contributing substantially to the
tourism sector. Despite these
positive developments, the total
number of tourists arriving in
Nepal in 2022 is still below the
pre-pandemic level where a
total of 1,197,191 tourists arrived in
2019.370
MOUNTAINEERING
UPDATES
Nepal Set to Ban Solo Trekking
The Government of Nepal has
established new rules to govern
the great Himalayan trails. The
new rule, proposed by Nepal
Tourism Board (NTB), requires
tourists to hire a licensed guide
or porter before trekking through
the country's wilderness. The
move, to be effective from April
1, 2023, prevents foreign travelers
from hiking alone in Nepal to
Table 12. Tourist
Arrival in Nepal
by Nationality in
January of the year
2021 and 2022
Source: Current
Macroeconomic and
Financial Situation Table
Based on Six Months of
Data, Nepal Rastra Bank
ensure their safety and to prevent
them from getting lost in the
trails.371 On the contrary, Nepali
trekkers are exempt from the
new rule due to their familiarity
with the local terrain and culture,
their ability to communicate with
locals, and the fact that they are
not subject to the same travel
restrictions as foreigners.
Alongside, the cost of the
NTB's Trekkers Information
Management System (TIMS) card,
a permit compulsory for all hikers,
will also rise significantly in the
coming days. SAARC nationals will
now have to pay NPR 1,000 (USD
7.61) per solo hiker, an increase
from NPR 600 (USD 4.56), as of
April. Other foreign hikers must
pay NPR 2,000 (USD 15.22) per
solo hiker, double the prior price
of NPR 1,000 (USD 7.61).372
Experts from the tourism
industry anticipate that this rule
could have a significant impact
on adventure tourism. However,
some associations vouch for
the rule to be implemented. For
instance, the Trekking Agencies
Association of Nepal (TAAN),
one of the most active agencies
associated with more than 2,000
trekking agencies associated
with it, had been lobbying for a
NEFPORT ISSUE 52 – MARCH 2023 71
"one-trekker, one-guide" system
since 2012 citing that a rule
such as this could bring jobs to
approximately 40,000 Nepalis.373
FINANCIAL SITUATION
Revival of Cashflow in the
Tourism Sector
Travel income refers to the
income of enterprises in the
tourism industry while travel
spending refers to money spent
by tourists for the purchase of
goods and services. Given this,
as a result of the increase in the
influx of tourists, the monetary
transactions in the tourism
sector also witnessed a positive
recovery. In 2022, travel income
increased to NPR 50.5 billion (USD
384.53 million) as compared to
NPR 14.5 billion (USD 11.04 million)
in 2021, indicating an increase of
248%. Similarly, in 2022, travel
spending increased to NPR 119
billion (USD 906.12 million) from
NPR 47.5 billion (USD 361.68
million) in 2021, suggesting an
increase of 148%.374 A month-
wise travel income and travel
spending have been shown in the
figures below.
72 DOCKING NEPAL’S ECONOMIC ANALYSIS
Figure 22. Month-
wise travel
spending in Nepal
for 2021 and 2022
Source: Current
Macroeconomic and
Financial Situation Table
Based on Six Months of
Data, Nepal Rastra Bank
Security Market Performance
The Nepal Stock Exchange
(NEPSE), the sole stock-exchange
platform for Nepal's secondary
market, allows listed companies
from the tourism industry to raise
capital through the secondary
market. A total of five hotels
are listed under NEPSE, namely,
Chandragiri Hills Ltd., Oriental
Hotels Ltd., Soaltee Hotel Ltd.,
Yak And Yeti Hotel, and Taragaon
Regency Hotel Ltd. However,
Yak and Yeti’s license has been
revoked by NEPSE, following its
inability to pay renewal fees on
time.375
All five-star hotels listed on
NEPSE reported net profits in
the first quarter of FY 2022/23.
Table 12. Sectoral
outstanding credit by
banks and financial
institutions (in NPR Tourism (Trekking,
millions)
Mountaineering, Resort,
Rafting, Camping, etc.)
Source: Current
Macroeconomic and
Financial Situation Table Hotel
Based on Six Months of
Data, Nepal Rastra Bank
Note: P = Preliminary, R = Revised
Soaltee Hotel Limited reported
a profit of NPR 112 million (USD
0.852 million) in the first quarter,
compared to a loss of NPR 21.16
million (USD 0.161 million) in the
same quarter of the previous
FY 2020/21.376 On the contrary,
the total market capitalization
of hotels decreased by 17.4%
to reach NPR 55.39 billion (USD
421.78 million) as of mid-January
2023. This accounts for 1.8% of
the total market capitalization of
NEPSE.377 A decrease in market
capitalization highlights the lack
of confidence among investors
in the tourism sector which is still
gaining momentum.
Credit to the Tourism Industry
Tourism in Nepal is a capital-
January(R)
Headings
2022
23.7
153.05
intensive industry that requires
a significant amount of credit
from the government. The
Government of Nepal provides
this credit through sector-
wise outstanding credit to the
tourism sector under headings
such as trekking, mountaineering,
resorts, rafting, camping, and
others. As of mid-January 2023,
the total outstanding credit
to tourism activities (trekking,
mountaineering, resort, rafting,
and camping) decreased by 5.2%
to reach NPR 23.4 billion (USD
178.92 million).378 Similarly, total
outstanding credit by banks to
hotels increased by 4.3% to NPR
156.25 billion (USD 1.273 billion)
by mid-October 2022.379 This
data is further explained in the
table below.
January(P) Year-on-year change
2023 (in percentage)
-5.2%
23.4
156.25 4.3%

Yeti Airlines Crash Denotes a
Setback to Recovering Tourism
Yeti Airlines, also known as Yeti
Airways, is one of the leading
Nepali airlines that operates
domestic flights around the
country in nine destinations.380
On January 15, 2023, a Yeti Airlines
plane, carrying 68 passengers
and four crew members, from
Tribhuwan International Airport
(Kathmandu) to Pokhara – one
of the most popular tourist
destinations of Nepal, situated
only 204 km far from its capital,
met with a devastating crash,
killing all of the people on board.381
The plane was set to land at the
newly built Pokhara International
Airport. The cause of the crash
is still under investigation, but
initial reports by the Aircraft
Investigation Commission (AAIC)
2079, formed by the Government
of Nepal to investigate the
accident, suggest that the pilot’s
error may have contributed to
the incident.382
The recent air crash in Nepal
is not only a tragedy for the
families and close ones of the
victims but also a harsh blow to
Nepal's tourism industry. This
accident is the third biggest
in terms of casualties and the
104th crash in Nepali skies.383
As the country was gaining
momentum in the aftermath of
the COVID-19 pandemic, this
accident had a severe impact on
both domestic and international
tourism in Nepal. There are
reports that the number of flights
and passengers took a nosedive
after the crash. This incident
also raises concerns about the
safety standards and regulations
of the Pokhara International
Airport. The recent air crash has
further exacerbated the negative
perception of the Nepali airline
industry internationally, which
continues to be prohibited from
operating flights in the European
Union. 384
Trekking Agencies Association of
Nepal (TAAN), Hotel Association
of Nepal (HAN), and several
activists have demanded
significant measures and
reforms from the government to
ensure Nepal's sky and aviation
services are safe and prevent
future incidents. 385 The Nepali
airline industry must undertake
reforms and adhere to the
highest safety standards to
improve its image and regain the
trust of tourists. The government
should work closely with industry
leaders to identify areas of
improvement and take proactive
measures to address safety
concerns. Additionally, Nepal
should explore partnerships
with international aviation and
tourism regulatory bodies to gain
valuable insights and expertise
for best practices in the industry.
This will enable Nepal to adopt
world-class safety standards
and enhance its aviation and
tourism infrastructure, which will
not only boost the economy but
also provide a safe and enjoyable
experience for visitors.
NEW DEVELOPMENT
Emerging Luxury Tourism
Nepal's tourism industry has
been predominantly associated
with adventure and cultural
tourism, but recently, there
NEFPORT ISSUE 52 – MARCH 2023 73
has been an emerging trend
toward luxury tourism. In the
past, several resorts inside the
Chitwan National Park offered
jungle safaris and other services.
However, these resorts were
forced to move outside the park in
2012 due to government concerns
about the environmental impact
of luxury jungle safaris. Luxury
resorts like Tiger Tops, regarded
as the ambassadors of Nepal’s
luxury tourism, were left to decay
inside the park. However, Nepal's
Supreme Court has issued a new
directive to reopen luxury resorts
inside the country's Chitwan
National Park. Re-emergence of
luxury destinations in Chitwan
coupled with the development
of Shinta Mani Mustang is set to
build a new culture of high-end
tourism in Nepal.386
The emergence of luxury
tourism in Nepal is a significant
development that not only
diversifies the tourism products
offered but also attracts a
different segment of the market,
with a growing number of affluent
travelers seeking exclusive
experiences. This development
can be a game-changer for
the country's tourism industry.
Additionally, the positive impact
of luxury tourism on the local
economy cannot be overstated,
with the potential to create job
opportunities and boost local
businesses. Furthermore, the
revenue generated from luxury
tourism can be utilized for the
conservation and preservation
of National Parks and the local
ecology. It is, therefore, imperative
that the government takes
proactive measures to ensure
that the operation of such luxury
74 DOCKING NEPAL’S ECONOMIC ANALYSIS
resorts does not compromise the
delicate ecology of the region.
PROGRAMS, EVENTS, AND
CAMPAIGNS
Tourism Decade FY 2023-2032
The Visit Nepal initiative is
an initiative launched by the
Government of Nepal and the
Ministry of Tourism to increase
the number of tourists to
Nepal and boost the country's
economy. First launched in the
year 1998, followed by 2011 and
2020, the Visit Nepal initiative
has had varying degrees of
success.387 However, the latest
Visit Nepal initiative, Visit Nepal
2020, faced unprecedented
challenges due to the COVID-19
pandemic. The suspension of
the initiative was a significant
setback for Nepal's tourism
industry, but the government
is determined to bounce back
and has launched the Visit Nepal
Decade (VND) in 2023, aiming
to establish Nepal as a leading
destination in the global tourism
market. The action plan prepared
by the government has goals like
increasing tourist arrivals to 3.5
million, creating 1 million jobs, and
increasing per-tourist spending
to USD 125 (NPR 16,416) from the
current USD 45 (NPR 5,909).388
The plan prioritizes Nepal's
diversity and declares special
tourist sites around the country
to increase the tourist influx in
various regions.389
The success of the Visit Nepal
Decade 2023-33 initiative in
promoting Nepal as a tourist
destination will depend on active
participation and cooperation
between the private and public
sectors. Since the country
suffered a large deal of revenue
decline and job losses during
the pandemic, VND should aim
at putting the country on a
sustainable growth trajectory.
Infrastructure development,
involvement of Non-Resident
Nepalis (NRNs), and innovative
marketing strategies will be
crucial to achieving the initiative's
ambitious goals and taking the
country's tourism industry to
new heights while creating job
opportunities and boosting the
economy.
POLICIES AND
REGULATION
New Policy Introduced to
Promote Nightlife Business
Even though late-night
businesses relating to tourism
are a significant source of
tourist expenditure worldwide,
Nepal has not given much
consideration to this sub-sector
in the past.390 Safety has always
been a persistent issue during
the operation of conducting
businesses during the late hour.
However, the Ministry of Home
Affairs has adopted a liberal
policy for nighttime businesses
across the country including
liquor shops, restaurants, and
nightclubs which allows them
to open their operations during
the night. 391 According to the
new policy, liquor shops are
now allowed to stay open until
10 pm, restaurants can open
until midnight, and dance bars
and clubs can operate until
4 am.392 The move is set to
promote tourism, increase job
opportunities, and generate
higher revenue. The extended
opening hours are also set to
attract more tourists, thereby
promoting vibrant nightlife and
benefitting the local economy.
However, it is equally important
for the government to address
the connectivity issues by
enhancing the road infrastructure
development and safety issues to
facilitate the smooth functioning
of the business at night.
Supreme Court Rules Out
Service Charge from
Consumer Bills
The Supreme Court of Nepal has
declared 10% service charges
that are added to consumer
bills as illegal and banned their
imposition with immediate
effect.393 The constitutional
bench ruled that since Section
87 (3) of the Labour Act,
2017 had been declared void,
service charges were no longer
legal. Service providers such
as airports, banks, drinking
water suppliers, educational
institutions, electric utilities,
hospitals, hotels, restaurants, and
telecom companies are covered
by the ruling.394 The decision
comes as a relief for consumers
who have been disputing bills
for being charged more than the
menu prices.
 NEFPORT ISSUE 52 – MARCH 2023 75

Outlook
TThe tourism sector in Nepal is showing signs of recovery, but it still faces several challenges. With
the gradual lifting of restrictions and increased confidence in travel, there is optimism that the
sector will experience a recovery in the coming months.

The Visit Nepal Decade 2023-33 initiative will require the active participation of both the private
and public sectors to promote Nepal as a tourist destination. Public-private cooperation will
be key to generating innovative ideas and effective marketing strategies. Non-resident Nepalis
(NRNs) can also play a significant role in promoting Nepal's unique culture, history, and natural
beauty. Infrastructure development will be key to enhancing the visitor experience, creating job
opportunities, boosting the economy, and generating revenue for the government. In the digital
age, digital marketing will play a crucial role in achieving the goal of the Visit Nepal Decade, which
aims to attract an unprecedented number of tourists to the country by leveraging various online
platforms and technologies. By focusing on these key areas, the initiative can achieve its ambitious
goals and take Nepali tourism to new heights.

In addition to the aforementioned measures, improving flight safety is a critical component of

Nepal's efforts to reverse its abysmal tourism figures. Airlines operating in the country must be
held responsible for frequent monitoring of their airplanes, discarding them when they become
old, increasing their capital to improve services, and implementing strict safety protocols. The
government should take necessary measures to ensure the safety of flights and create a conducive
environment for the aviation industry to thrive. Boosting flight safety will go a long way in improving
tourists' confidence and attracting more visitors to Nepal. Additionally, Nepal needs to prioritize
removing itself from the European Commission's air safety list. This will require addressing the
country's aviation safety concerns and meeting international standards. Doing so will not only
improve flight safety but also increase the number of European tourists visiting Nepal, boosting its
tourism sector.
 4
76 DOCKING NEPAL’S ECONOMIC ANALYSIS

Market
Review
 NEFPORT ISSUE 52 – MARCH 2023 77

Financial Market Factsheet395

Consumer Price Index

During the review period, the Nepal Rastra Bank (NRB) (mid- January)
introduced new directives to streamline the financial 7.26 %

sector. NRB has directed the Banks and Financial

Gross foreign exchange reserves
Institutions (BFIs) to not take penal interest from (mid-January)
NPR 1337.29 billion
borrowers for outstanding loans that are due until
mid-June 2023. Likewise, NRB has instructed BFIs to Buying Exchange Rate per USD
(mid-January)
restructure and reschedule outstanding loans for small NPR 129.83
and medium-sized enterprises (SMEs). In addition to this,
NRB has also introduced regulations for microfinance Weighted Average 91-day
Treasury Bills Rate (mid-January)
institutions to prevent predatory lending practices. A 10.89%
mid-term review of the Monetary Policy was carried out
Weighted average inter-bank
by the NRB wherein the position of the Foreign Exchange transaction rate (mid-January)
7.48%
Reserve, Standing Liquidity Facility (SLF), and the inflow
of remittances has increased while the inflation has Weighted average deposit rate
(mid-January)
exceeded target levels, which is putting pressure on
8.51%
consumer prices.
Weighted average lending rate
(mid-January)
12.79%
Second Quarter Performance 61.36% in their net profits. When
Analysis of Commercial Banks we look at reserves and surplus,
Average base rate of commercial
Nabil Bank held the highest banks (mid-January)
As per the unaudited second reserves of NPR 25.57 billion 10.91%
quarterly results of Commercial (USD 194.73 million) followed by
Banks of the FY 2022/23, as Nepal Investment Mega Bank
shown in Table x the operating and Mega Bank. Seven banks portfolio of NPR 363.23 billion
profit of commercial banks fared more than the reserves and (USD 2.76 billion) followed by
increased by 27.95%, while the surplus industry average of NPR Nepal Investment Mega Bank and
net profit grew by 25.70%. 11.19 billion (USD 85.26 million). Nabil Bank. Standard Chartered
Additionally, the deposits from Bank had the lowest credit
In the first quarter of the FY customers saw a 41.38% rise disbursement of NPR 81.03 billion
2022/23, Nabil Bank bagged the compared to the corresponding (USD 656.99 million).
highest net profit of NPR 3417.69 period last year with the highest
million (USD 23.02 million), deposits being made at Global Additionally, during the review
followed by NIC Asia Bank and IME BoK, Nepal Investment Mega period, average Non-Performing
Global IME BOK. Agriculture Bank, and Nabil Bank. Loans (NPL) increased standing
Development Bank Limited at 2.41%, as compared to 1.11% in
(ADBL) registered a negative net Civil Bank recorded the lowest the same period of the previous
profit of NPR 108.74 million (USD deposits from customers with year. Furthermore, the cost of
0.82 million). Everest Bank and NPR 94.7 billion (USD 721.08 funds increased by 8.54% against
Standard Chartered Bank had a million). Global IME BOK holds 6.12% in the corresponding
whopping increase of 89.28% and the highest loan and advances period of the previous year.
 Table 13. Second Quarter Performance Analysis of Commercial Banks- unaudited as of FY 2022/23 (in NPR Thousands)
(in 000)

Loans and Operating Net Base

Deposit NPL (%) Cost of Fund (LCY)
Advances Profit Profit Rate (%)

Paid-up Reserve & FY FY % FY % FY FY % FY 2 FY % FY FY FY FY % FY

Bank Change FY 21/22 Change Change Change
Capital Surplus 22/23 21/22 22/23 22/23 21/22 2/23 21/22 22/23 21/22 22/23 21/22 Change 22/23

2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd QTR 2nd 2nd QTR
QTR

Nabil Bank 27,056,997.00 25,574,140.00 347,461,662.00 232,554,739.00 49.41 05,696,739.00 207,437,283.00 47.37 4861,794.00 3,115,389.00 56.06 3,417,698.00 2,181,420.00 56.67 2.98 1.11 8.42 6.03 2.39 10.10

Nepal Investment Mega

34,128,595.00 23,550,126.00 355,236,207.00 317,893,055.00 2,982,447.00 2,086,307.00 3.71 8.22 10.5
Bank*
Standard Chartered
9,429,454.00 5,825,886.00 102,717,806.00 86,288,283.00 19.04 81,036,724.00 76,104,669.00 6.48 2,513,638.00 1,552,529.00 61.91 1,753,635.00 1,086,770.00 61.36 0.72 0.44 7.5 4.3 3.20 9.67
Bank

Himalayan Bank 14,006,223.78 7,423,439.96 176,250,073.04 165,512,621.65 6.49 153,364,935.73 150,678,016.95 1.78 1,389,259.21 1,062,089.74 30.80 954,704.99 743,450.90 28.42 3.77 0.72 8.82 6.98 1.84 10.86

Nepal SBI Bank 9,825,853.11 6,419,903.83 133,956,477.96 112,897,058.18 18.65 120,897,281.84 108,713,752.85 11.21 1,665,365.43 1,111,108.51 49.88 1,177,194.32 782,781.12 50.39 0.47 0.14 7.95 5.54 2.41 10.75

Everest Bank 10,698,094.00 9,900,985.00 180,792,914.00 165,217,641.00 9.43 157,927,362.00 142,646,031.00 10.71 2,268,477.00 1,198,980.00 89.20 1,588,002.00 838,920.00 89.29 0.55 0.26 8.15 5.98 2.17 9.97

Global IME BOK 35,771,060.00 18,319,390.00 403,683,639.00 271,901,611.00 48.47 363,239,472.00 256,425,466.00 41.65 3,794,568.00 3,676,914.00 3.20 2,782,379.00 2,663,384.00 4.47 2.92 1.13 8.72 6.16 2.56 10.8

Kumari Bank 26,225,861.34 12,057,767.75 299,691,753.46 159,821,637.18 87.52 275,761,355.55 155,962,076.52 76.81 1,573,392.62 1,368,850.67 14.94 1,530,707.07 951,738.18 60.83 3.15 1.06 9.05 5.98 3.07 11.73

NIC Asia Bank 11,564,005.37 12,896,750.44 305,857,732.75 294,940,872.91 3.70 256,860,843.07 261,923,033.78 (1.93) 4,693,463.94 3,420,555.02 37.21 3,273,330.26 2,402,066.31 36.27 0.61 0.47 8.38 7.06 1.32 11.02

Machhapuchchhre
10,257,155.58 4,138,971.29 150,542,157.10 137,495,624.97 9.49 135,577,148.54 131,990,726.60 2.72 1,473,578.85 1,451,260.49 1.54 1,025,262.14 1,010,830.47 1.43 1.41 0.57 8.84 6.78 2.06 11.23
Bank

Laxmi Bank 11,551,345.00 5,057,583.00 145,718,212.00 130,814,652.00 11.39 130,197,173.00 126,184,824.00 3.18 1,493,120.00 1,131,908.00 31.91 1,077,115.00 817,398.00 31.77 1.56 0.83 8.91 6.54 2.37 11.37

Siddhartha Bank 14,089,980.19 8,821,572.45 205,129,144.74 188,798,429.61 177,601,676.74 176,881,957.04 0.41 1,657,267.44 2,280,851.82 (27.34) 1,161,199.79 1,577,313.80 (26.38) 2.87 0.37 8.7 6.59 2.11 10.91
8.65
Citizens Bank
14,200,974.01 5,647,230.14 159,481,735.05 141,086,005.18 13.04 138,579,436.31 127,571,106.98 8.63 1,191,972.62 1,695,875.78 (29.71) 841,333.05 1,239,349.55 (32.11) 2.99 1.87 9.22 7.05 2.17 11.19
International
Prime Commercial
19,402,575.72 8,359,026.21 164,464,758.29 158,930,952.53 3.48 150,313,341.43 154,394,296.40 (2.64) 2,362,365.26 2,409,747.34 (1.97) 1,652,044.75 1,678,589.95 (1.58) 2.81 0.78 9.25 7.29 1.96 11.34
Bank

Sunrise Bank 10,118,892.81 7,122,721.08 131,662,831.25 129,242,988.45 1.87 118,875,301.01 120,390,362.43 (1.26) 926,046.28 1,063,497.05 (12.92) 653,957.25 745,544.61 (12.28) 3.36 1.41 9.07 6.76 2.31 11.62

NMB Bank 18,366,706.00 7,604,479.00 192,638,001.00 181,700,648.00 6.02 183,430,287.00 172,145,113.00 6.56 2,718,667.00 2,422,987.00 12.20 1,901,153.00 1,711,519.00 11.08 2.24 1.49 8.16 5.78 2.38 10.68

Prabhu Bank 23,542,490.00 9,081,138.00 270,923,379.00 163,598,778.00 65.60 245,385,577.00 142,332,648.00 72.40 1,634,196.00 1,868,118.00 (12.52) 1,199,963.00 1,262,010.00 (4.92) 1.98 1.23 8.6 6.16 2.44 11.44

Nepal Investment Mega

34,128,595.00 23,550,126.00 355,236,207.00 317,893,055.00 2,982,447.00 2,086,307.00 3.71 8.22 10.5
Bank*

Civil Bank 9,075,844.00 2,823,974.00 94,710,053.00 91,698,217.00 3.28 84,081,763.00 83,427,478.00 0.78 904,998.00 732,292.00 23.58 637,023.00 504,001.00 26.39 2.41 0.94 9.49 6.8 2.69 11.73

Sanima Bank 12,460,115.06 4,620,689.73 159,208,052.14 144,534,360.66 10.15 143,733,932.37 135,893,214.88 5.77 1,822,027.72 1,500,577.32 21.42 1,285,388.52 1,077,068.52 19.34 0.77 0.31 8.92 6.41 2.51 10.86

Public Sector Banks

Nepal Bank 14,694,022.93 19,983,670.70 212,837,603.44 182,840,958.51 16.41 168,936,081.78 163,109,490.82 3.57 1,514,585.29 1,635,336.67 (7.38) 1,170,655.43 1,417,058.84 (17.39) 3.11 1.91 8.31 5.52 2.79 9.9

Rastriya Banijya Bank 15,637,377.05 16,828,886.89 282,119,052.27 241,496,841.49 16.82 218,069,002.39 162,687,518.14 34.04 3,839,543.71 2,415,595.64 58.95 2,711,851.61 1,748,859.99 55.06 2.79 4.23 7.05 3.29 3.76 9.73

Agriculture Dev. Bank 18,620,627.76 11,953,410.17 172,847,928.09 157,491,860.51 9.75 175,857,594.20 174,288,784.64 0.90 -111,541.69 2,081,872.53 (105.36) -108,741.63 2,087,111.60 (105.21) 4.52 2.08 8.53 5.51 3.02 11.06

Total 404,852,844.71 257,561,867.64 5,003,167,379.58 3,538,864,780.83 41.38 4,421,209,137.96 3,231,187,850.03 36.83 50,151,678.68 39,196,335.58 27.95 35,858,469.55 28,527,185.84 25.70 2.41 1.11 8.54 6.12 2.42 10.82
 NEFPORT ISSUE 52 – MARCH 2023 79

Similarly, the average base rate situation report based on the six Of total deposits, the (share
stood at 10.82% during the review months’ data ending mid-January of demand, saving, and fixed
period, the highest being 11.73% of the FY 2022/23 published by deposits stood at 7.8%, 25.6%,
for Kumari Bank followed by Civil the NRB are highlighted below:396 and 60.4%, respectively.) As of
Bank at 11.73% mid-January 2023, the share of
Deposit and Credit Mobilization institutional deposits in the total
KEY INDICATORS deposit of BFIs stood at 36.6%,
The deposits at BFIs increased by whereas last year it was 39.2% in
Some of the key macroeconomic 4.2%, as compared to an increase the same period.
indicators as per the of 3.8% in the corresponding
macroeconomic and financial period of the previous year.

2021 (Mid-July) 2022 (Mid-July) 2022 (Mid-January) 2023 (Mid-January)

60.4
55.8
54.4
47
Figure 23. Deposit

34.2
mix at Banks and

30.3
27.6

25.6
Financial Institutions
(Percentage Share)
10.4
8.9
8.5

8.4
7.8

7.7
6.8
6.2
Demand Saving Fixed Other
Source: Current 2021 (Mid-July) 10.4 34.2 47 8.4
Macroeconomic and
2022 (Mid-July) 8.9 27.6 55.8 7.7
Financial Situation based
on 6 months, Nepal 2022 (Mid-January) 8.5 30.3 54.4 6.8
Rastra Bank, 2022/23 2023 (Mid-January) 7.8 25.6 60.4 6.2

Similarly, private sector credit
from BFIs increased by 64.9%
compared to a growth of 64% in
the previous year. Private sector
credit from commercial banks,
development banks, and finance
companies increased by 2.8%,
4.9%, and 1.6%. sectors by 8.2%, the wholesale
and retail sector by 3.9%, and the
Loans of BFIs to the agriculture service industry sector by 4.6%,
sector increased by 3.7%, the respectively.
industrial production sector
by 8.4%, the transportation,
communication, and public

2022 January 2023 January

984.85
942.71
753.34
719.87

Figure 24. Sector-

wise Outstanding
411.57
380.46
402.7
366.35

Credit of Banks and

316.05
274.04

Financial Institutions
(Amount NPR in
billion)
,…
N
RE

ES
O
IO

RI
U

CT
CT

O
LT

ST
SE
TI
U
CU

U
A
D

D
IL
RT
RI

IN
TA
PR
G

O
A

E
SP

RE

Source: Current
IC
L
A

RV
D
RI

Macroeconomic and
N
TR
ST

SE
A

Financial Situation based

U

LE
D

SA
IN

on 6 months data, Nepal

LE

Rastra Bank, 2022/23

O
H
W
80 DOCKING NEPAL’S ECONOMIC ANALYSIS
In terms of credit exposure, the
term loan extended by BFIs
increased by 10.7%, overdraft
loan increased by 8.3% and
demand and working capital loan
increased by 4.0%. Additionally,
real estate loans, which include
residential personal loans,
increased by 1.4%, while the trust
receipt (import) loan decreased
by 8.6% and margin nature loans
decreased by 7.0%.
Liquidity Management
In the review year, NRB injected
NPR 3094.76 billion (USD 23.56
billion) liquidity of which NPR
318.09 billion (USD 2.42 billion)
was through a repo, NPR 83.85
billion (USD 638.47 million)
through outright purchase
Table 13. Foreign
Exchange Adequacy
Indicators
Source: Current
Macroeconomic and
Financial Situation based
on 6 months, Nepal
Rastra Bank, 2022/23
Based on imports of FY 2022/23,
the foreign exchange holdings
of the banking sector are
sufficient to cover the imports
of prospective merchandise for
10.4 months, and merchandise
and service imports for 9.1
months. The ratio of reserves-
to-GDP, reserve-to-imports, and
reserve-to-M2 stood at 27.6%,
75.5%, and 23.4%, respectively in
mid-January 2023.
auction, and NPR 2,692.83 billion
(USD 20.50 billion) through SLF.
In the previous year, it was NPR
3306.96 billion (USD 25.18 billion)
liquidity.
Additionally, NRB injected
liquidity of NPR 358.90 billion
(USD 2.73 billion) through the net
purchase of USD 2.76 million (NPR
362.47 million) from the foreign
exchange market. Liquidity of NPR
80.26 billion (USD 611.13 million)
was injected through the net sale
of USD 667.4 million (USD 87.65
million) in the previous year.
Foreign Exchange Reserves and
Adequacy
In the review period, gross foreign
exchange reserve stood at NPR
FY 22/23
(mid-January)
Total Foreign Reserv
In NPR 1,337.29 billion
In USD 10.30 billion
Reserve-to-GDP (ratio)
Reserve-to-Imports (ratio)
Reserve-to-M2 (ratio)
Federal Government
Expenditure and Revenue
In the review period, the total
expenditure of the provincial
government was NPR 47.53
billion (USD 361.92 million) while
the total resource mobilization of
provincial governments remained
at NPR 75.53 billion (USD 575.12
billion).
1,337.29 billion (USD 10.18 billion),
increasing by 10.0% in mid-
January 2023 from NPR 1,215.80
billion (USD 9.25 billion) in mid-
July 2022. Of the total foreign
exchange reserves, reserves held
by NRB increased by 8.0% to NPR
10.30 billion (USD 78.43 million)
in mid-January 2023 from NPR
9.54 billion (USD 72.64 million) in
mid-July 2022. Reserves held by
BFIs other than NRB decreased
by 3.4% to NPR 153.91 billion (USD
1.17 billion) in mid-January 2023
from NPR 1056.39 billion (USD
8.04 billion) in mid-July 2022.
The Indian currency’s share in
total reserves stood at 23.6% in
mid-January 2023.
FY 21/22
(mid-July)
1,215.18 billion
9.54 billion
27.6 % 25.1%
75.5% 57.8%
23.4% 22.1%
Interest Rates
The weighted average 91-day
treasury bill rate remained at
10.89% in the six months of
2022/23, as against 5.07% a
year ago. Furthermore, in mid-
January 2023, the weighted
average inter-bank transaction
rate among commercial banks
stood at 7.48% as against
4.76% a year ago. The average
 NEFPORT ISSUE 52 – MARCH 2023 81

inter-bank rate of BFIs, which is
considered an operating target
of the monetary policy, stood at
7.53% in the review month.
Furthermore, the average base
rate of commercial banks stood
at 10.91% in the review period
from 8.42% a year ago. The
weighted average deposit rate
and lending rate of commercial
banks stood at 8.51% and 12.79%,
respectively in the review period,
as compared to 6.37% and 9.44%,
respectively a year ago in the
same review period.
Balance of Payments (BoP)
The current account registered
a deficit of NPR 29.47 billion
(USD 224.44 million) in the
review period, compared to
a deficit of NPR 352.16 billion
(USD 2.68 billion) last year in the
corresponding period. The overall
BoP remained at a surplus of NPR
97.10 billion (USD 739.36 million),
as compared to a deficit of NPR
241.23 billion (USD 1.84 billion) in
the previous year.
KEY DEVELOPMENTS
Some of the key developments
that transpired in the financial
market are as follows:
NRB directs waiver of penal
interest on overdue loan
payments
The NRB has issued a directive
asking the BFIs not to take penal
interest from borrowers for the
next month from the date that
the outstanding loans have been
pending. This provision will be
in effect only for loans in which
the due date will be mid-June
2023 at the latest. The NRB has
also asked the BFIs to restructure
and reschedule the outstanding
loans up to NPR 20 million (USD
152.29 thousand) given to small
and medium enterprises (SMEs)
by mid-July 2024 and provide
essential banking services from
10 am till 1:30 pm even public
holidays.397
New regulations for
Microfinance Companies (MFIs)
NRB has tightened the provisions
for MFIs after several MFIs were
found exploiting their customers
by charging exorbitant interest
rates.398 The central bank has
streamlined commercial banks,
development banks, and finance
companies, but the microfinance
firms that fall under the 'D' class
financial institutions have largely
remained unchecked. The new
provisions include:

Table 14. Revised provisions for MFIs

Revised provisions for MFIs

Borrowers who have taken loans from any bank will not get loans from microfinance companies, borrowers cannot
take loans from more than one MFI at a time, and only one financial institution shall disburse a loan to one borrower
without exceeding the credit limit.

Borrowers must self-declare that they have not taken loans from other banks and financial institutions.

The minimum interest rate of deposit savings should be fixed at least 50% of the maximum interest rate of loans
provided by MFIs.

MFIs should deposit 50% of their annual dividend distributions in the general reserve fund, 25% in the Client
Protection Fund, and 35% in the bank customer protection fund.

Social responsibility regulations have also been amended, with companies proposing to distribute dividends of
more than 15% annually setting aside an amount equal to 10% of the proposed dividend above 15% for corporate
social responsibility.

NPR 26.46 billion (USD 201.4 million) in external loans for Nepal in the last six months
82 DOCKING NEPAL’S ECONOMIC ANALYSIS

The half-yearly review of the
budget for the fiscal year
2022/23 unveiled by the
Ministry of Finance (MoF)
showed that Nepal received
foreign loans worth NPR 26.46
billion (USD 201.48 million) while
mobilizing internal loans of NPR
30 billion (USD 228.43) in the
first six months of the current
fiscal year. The government
has accelerated efforts to take
concessional loans from the
Asian Development Bank (ADB)
to construct the Kakadbhitta-
Laukahi road section and is
preparing to take NPR 13 billion
(98.99 million) subsidized loans
each for the School Sector
Reform Programme and Quality
Health System Project from
the World Bank. Additionally, a
subsidized loan for budgetary
assistance of NPR 13 billion (USD
98.99 million) will be taken from
the World Bank under the Nepal
Fiscal Reforms DPC-2 Programme,
and preparation is underway to
take budgetary assistance worth
around NPR 13 billion (USD 98.99
million) also for the government's
'Finance for Growth' program.
The government is also receiving
a soft loan of NPR 6.50 billion
(USD 49.49 million) from the
ADB for the Customs Reform and
Modernization Strategies and
Action Plan, and NPR 13 billion
(USD 98.99 million) for the public
finance management and service
delivery reform program.399
Mid-year Monetary Policy
Review
The NRB has published a half-
yearly review of the monetary
policy of the current fiscal year
2022/23. 400 The review exhibits
the main macroeconomic
indicators that have shown a
steady improvement as a result
of the relatively contractionary
policy measures implemented
by the central bank. The major
highlights from the mid-term
review of the monetary policy by
NRB are discussed henceforth:

Table 15. Highlights from the mid-term review of the monetary policy

Highlights from the mid-term review of the monetary policy

The average Consumer Price Inflation (CPI) up to mid-January is at 7.26 %. The objective of NRB was to keep the
average CPI within the threshold of 7 % in the current fiscal year.

On a year-on-year basis, the import price index has increased by 8.7 %, the wage index by 12.39 %, and the wage
rate index by 9.64 %. This is due to the increase in the price of petroleum products and the devaluation of the Nepali
currency, which has put pressure on consumer prices.

The inflow of remittance increased by 24.3% compared to the first six months of the last Fiscal Year 2021/22.

The Current Account is at NPR 29.47 billion (USD 224.40 million) deficit compared to the NPR 352.16 billion (USD 2.68
billion) deficit in the same period of the previous fiscal year.

The BoP has remained positive compared to the massive deficit of NPR 241.23 billion (USD 1.84 billion) in the same
period last fiscal year. Owing to the increased inflow of remittances and the decline in imports, an improvement in the
Current Account and BoP has been observed.

The loans of up to NPR 20 million (USD 0.15 million) in the performing loan category at the end of mid-January will be
restructured and rescheduled by mid-July after analyzing the cash flow and income of the industries and businesses.
This will help small and medium-sized industries and businesses to operate more easily.

Source: NRB, Mid-Term Review of Monetary Policy FY 2079-80

 NEFPORT ISSUE 52 – MARCH 2023 83

Multinational Companies
Increase Earnings in Nepal
Multinational companies
repatriated total earnings of NPR
22.55 billion (USD 171.71 million)
to their home countries from
Nepal in the fiscal year 2021/22,
13 % more than the amount they
earned in FY 2020/21. The NRB's
statistics show that the dividend
earned by the FDI-based
companies from Nepal increased
over three-fold in the past seven
years, with a cash dividend of NPR
15.75 billion (USD 119.93 million)
and technology transfer of NPR
3.58 billion (USD 27.26 million).
Surya Nepal, Butwal Power
Company, Ncell Pvt Ltd, Gorkha
Brewery, Power Transmission
Company Nepal, Unilever Nepal,
and Bottlers Nepal are among
the multinational companies that
have been making good earnings
from investments in Nepal.402
NRB Flexible on e-Transactions
and Interbank ATM Usage
The NRB has reduced the
transaction fee for ATM users
who use cards to carry out
interbank service but has
increased the ceiling of money
transfers carried out by using the
electronic wallet. The limit of the
wallet-to-wallet transaction has
also been increased from NPR
25 thousand (USD 1.90 hundred)
to NPR 50 thousand (USD 3.81
hundred) a day, and the threshold
for mobile banking and internet-
based payment has also been
increased to NPR 300 thousand
(USD 2.28 thousand) per day. The
NRB has also permitted receiving
remittance amounts in the
wallet, and the payment service
providers have officially agreed
with the remittance company.403

Outlook
NRB has taken various initiatives to regulate the finance sector by introducing new regulations and
streamlining the sector and making it more transparent. The directive to not take penal interest from
borrowers for outstanding loans and restructuring of loans for small and medium-sized enterprises
by BFIs has been supported substantially. Additionally, the mid-term monetary policy review by
NRB has maintained the contractionary monetary policy at the start of the fiscal year 2021/22
to prevent any potential economic disruptions in the future. There have been no modifications
made to the regulations regarding real estate and the stock market which has been a let-down to
the investors who were hoping for some positive changes in the mid-term review. Although the
Nepal Bankers Association reduced the interest rate by one percent on fixed deposits, no changes
have been made in the lending rates.401 Inflation has surpassed target levels, putting pressure on
consumer prices. As this remains a challenge, moving forward, NRB needs to continue to introduce
measures to manage inflation and support businesses, particularly SMEs, to ensure the continued
growth of the finance sector.
84 DOCKING NEPAL’S ECONOMIC ANALYSIS

Capital Market
Factsheet404
The stock market performance during the review period
was highly volatile, the market went up to as high as 2019.93
NEPSE Index (mid-October, in
points on February 28, 2023. The half-yearly review of the points)
Monetary Policy of the current fiscal year by the Nepal Rastra 2149.4
Bank (NRB) has also disappointed investors, as their demands
were not met. Further, with the movements in politics through Stock market capitalization (end
of the review period)
the reformation of the cabinet and changing alliances of the NPR 3103.16 billion
ruling party, investor confidence in the capital market has
dampened. As a result, the Capital Gain Tax (CGT) collected Number of companies listed at
from share transactions has plummeted in the first half of NEPSE (mid-January)
249
the current fiscal year, leaving the government's revenue
collection short.

Secondary Market
1 Dec 2022 28 Feb 2023 % Change
During the review period
(December 2022 to February NEPSE Index 1961.07 2019.93 3.00%
2023), the NEPSE index
increased by 3.00%, closing at Sub-Indices
2019.93 points. The total market
capitalization at the end of the Commercial Bank 1379.74 1317.15 (4.54%)
review period amounted to NPR
Development Bank 1463.37 1467.99 0.32%
3103.16 billion (USD 23.63 billion).
The most significant decrease
Hydropower 2036.52 2591.86 27.27%
was seen by the Microfinance
sub-index (10.46%), followed
Finance 1620.45 1690.26 4.31%
by the Manufacturing and
Processing sub-index (6.30%)
Non-Life Insurance 7649.37 8868.88 15.94%
and Commercial Bank sub-index
(4.54%).
Others 1,463.37 1467.99 0.32%

Hotels & Tourism 2,706.52 3176.83 17.38%

Microfinance 4406 3944.97 (10.46%)

Table 16. Key Mutual Fund 13.43 14.23 5.96%

Indicators
Life Insurance 9246.84 10159.23 9.87%

Source: Nepal Stock Manufacturing &

Exchange (NEPSE) 5213.58 4885.09 (6.30%)
Processing
 NEFPORT ISSUE 52 – MARCH 2023 85

Figure 25. NEPSE

Movement Index

Source: Nepal
Stock Exchange
(NEPSE)

Primary Market:
Market: During the
review period, the Initial Public
Offerings (IPOs) of multiple
companies were approved.405
IPO of Molung Hydropower
Company Ltd, Makar Jitumaya
Suri Hydropower Ltd, Sanima
Middle Tamor Hydropower Ltd,
BPW Laghubitta Bittiya Sanstha
Ltd, Sagarmatha Jalbidhyut
Company Ltd, Aatmanirbhar
Laghubitta Bittiya Sanstha, Dolti
Power Company Ltd, Bhugol
Energy Development Co. Ltd,
Menchhiyam Hydro Power Ltd,
Ingwa Hydropower Ltd, Mai Khola
Hydropower Ltd, and Modi Energy
Ltd was approved by Securities
Board of Nepal (SEBON).

Name of Company Public Issue Size

Molung Hydropower Company Ltd 3,531,000

Makar Jitumaya Suri Hydropower Ltd 2,280,000

Sanima Middle Tamor Hydropower Ltd 8,331,250

BPW Laghubitta Bittiya Sanstha Ltd 97,000

Sagarmatha Jalbidhyut Company Ltd 5,488,000

Aatmanirbhar Laghubitta Bittiya Sanstha 203,380

Dolti Power Company Ltd 1,609,458

Bhugol Energy Development Co. Ltd 1,632,160

Menchhiyam Hydro Power Ltd 1,627,750

Table 17. Public Issue
Ingwa Hydropower Ltd 1,800,000
Size of IPO-Approved
Companies Mai Khola Hydropower Ltd 1,921,568

Modi Energy Ltd 7,250,000

Source: SEBON, Initial
Public Offerings Total 56,747,896
Approved
86 DOCKING NEPAL’S ECONOMIC ANALYSIS

KEY DEVELOPMENTS
Some of the key developments
that transpired in the capital
market during the review period
are as follows –
New Guidelines for Brokerage
Companies
The Securities Board of Nepal
(SEBON) has introduced
new guidelines regarding the
opening of branch offices
by security brokerage firms.
Broker companies will only get
permission to open branches
within the Kathmandu valley
after operating at least three
branches outside the valley.
They must inform SEBON at least
seven days before opening the
branch office and should apply
for opening only one branch at
a time along with the necessary
documents. The companies
have 15 days to prepare the
required infrastructure and the
permission to open the branch
will be revoked if the criteria are
not met. The paid-up capital of
the company seeking to open a
branch has to be maintained at
NPR 15 million (USD 0.014 million)
and its net worth should be more
than the paid-up.406
Monetary Policy Review
Disappoints Capital Market
Investors
The half-yearly review of the
monetary policy of the current
fiscal year by the NRB has not
met the expectations of capital
market investors. Although the
investors had demanded that
the limit of 40/120 million applied
to share margin securities in
the last fiscal year's monetary
policy be abolished, the limit of
NPR 120 million (USD 0.91 million)
remained. Investors have also
demanded that the risk-weighted
average of 150% applied to share
loans should be maintained at
100% and that the interest rate
should be reviewed and brought
to a single-digit figure soon.407
CGT Collection from Share
Transaction Plummets
The government collected NPR
1.23 billion (USD 9.37 million) in
Capital Gains Tax (CGT) out of-
stock transactions in the first half
of the current fiscal year, which
was almost one-seventh of the
amount generated under the
heading during the same period
in the last fiscal year. The CGT
collection was hit by a heavy
fall in share transactions after
the secondary market went to
a bearish trend for a long time.
The government levies 5% CGT
on long-term investors and 7.5%
on short-term investors. Of the
settled tax of NPR 1.23 billion (USD
9.37 million), short-term Investors
paid NPR 744.15 million (USD 5.67
million) (60.5%) and long-term
Investors contributed NPR 491.55
million (USD 3.74 million) (39.5%).
The government's revenue
collection fell short of the total
expenses by NPR 81.50 billion
(USD 0.62 million).408

Outlook
During the review period, the stock market witnessed a fluctuating trend, with an overall decline in
share transactions due to numerous contributing factors including the current liquidity crisis of the
market, the absence of fundamental investors, and recent political developments and insecurity.
The dwindling investor confidence, accompanied by increased selling pressure at the market and
rising long-term interest rates has further affected the market’s performance. There is a need for
better amendments to address the soaring interest rates to attract more investors to the capital
market and boost the market’s performance. It remains to be seen how regulatory bodies and
market participants will address these challenges and steer the market toward a positive and
stable profitable future.
 5
NEFPORT ISSUE 52 – MARCH 2023 87

Special Section
Agriculture - Perspective from
the Ground
 Agriculture - Perspectives
from the Ground
Agriculture is the primary sector of the Nepali economy, providing a source of income, food, and employment
to the majority of the Nepali population.
The agriculture sector currently contributes approximately 23.95% to the country's overall Gross Domestic
Product (GDP) and employs around 60.4% of the entire population as of FY 2021/22.409 However, since
employment in the sector ranges from subsistence to small-scale enterprise farming to seasonal wage
work,410 only a fraction of those employed are included in the official labor force. As of FY 2021/22, 81% of
employment in agriculture is informal.411 Even within the formal and informal employment sectors, there is
a clear gender divide as women have been more engaged in agriculture (mostly unpaid labor work) since
decades, mainly attributed to the growing migration of men.412

Likewise, whilst Nepal has a natural comparative advantage because of its distinct agro-climatic zones,
rich plains, potential for high-value crop production, and expanding processing industries, the sector is
still struggling to position itself as a competitive sector.413 Despite being an agrarian country, the sector
is still characterized by subsistence farming, fragmented land holdings, reliance on monsoon rains, and a
lack of commercialization. 414 Due to these challenges, the sector has not been able to grow. As a result,
food crop yield in Nepal has been declining while imports have been increasing year on year as per the
Economic Survey of FY 2021/22. 415 Likewise, agricultural and livestock products worth NPR 288.67 billion
were imported, indicating a significant 35% increase over the previous equivalent FY 2020/21, and NPR
44.43 billion in FY 2009/10.416 While the three tiers of the government under the federal structure may
benefit the sector in the long term, there are many short term challenges that require immediate attention.
Owing to these reasons, the growth of the agriculture sector necessitates interventions in different
components and areas that are directly and indirectly related to the sector. Government support and foreign
aid continue to provide a wide range of services such as access to finance, insurance, credit, fertilizers,
inputs, training, and others. At the same time, private investment in agriculture has also expanded in recent
years, with corporations investing in agricultural production, livestock, and food processing. Private firms
have, particularly, contributed to the development of value chains, which connect farmers with markets
and increases income prospects for rural communities. Similarly, with the gradual adoption of modernized
tools, improved seeds, increased access to irrigation, finance and insurance, climate-smart agricultural
practices, high-value agricultural product production, and other reforms, the sector has witnessed the
growth of agro-processing industries, enterprises, commodity centers, seed banks, gender-responsive
budgeting practices and others. Altogether, with more of such effective and timely interventions in place,
the agriculture sector has the potential to grow and become resilient in the near future, resulting in
developmental outcomes.417

Against this backdrop, NEFPort 52’s special section ‘Agriculture: Perspectives from the Ground’ seeks
to provide perspectives on three areas that are interlinked with the sector and can enable sectoral
growth. The three areas include private sector’s contribution in the agriculture sector, gender-inclusive
agricultural practices, and commercial agriculture enterprise. The intent is not to limit the need for deeper
understanding of these three areas only, but rather to assess the strengths, weaknesses, opportunities and
inter-connection of these areas to the agriculture sector. Thus, the following sections covering the three
areas feature insights, case studies, and broader lessons to be learned from practitioners and experts on
the ground.
 NEFPORT ISSUE 52 – MARCH 2023 89

The role of the private sector in

strengthening agriculture
By Neha Thapa,
Sr. Area Coordinator, KISAN II Project, CEAPRED

Given the diverse scope of
Nepal’s economic system, the
private sector plays a critical
role in ensuring the agriculture
sector’s availability and
accessibility. It can support the
agriculture industry by providing
funding, technology, supply
chain management, marketing
and branding, and training and
education. By working together,
the private sector and the
agriculture industry can help to
improve agricultural practices,
increase productivity, and
create more sustainable and
profitable farming systems. As
a result, the agriculture industry
has substantially benefited and
improved in various ways as a
result of its partnerships with
various private-sector firms.
The private sector and the
agriculture industry are
interconnected in various ways.
The private sector supports the
agriculture industry through input
supply, processing and packaging,
marketing and distribution,
financing, research and
development, and employment.
Whereas the agriculture industry
provides opportunities for
private companies to develop
and grow their businesses, while
also contributing to sustainable
and profitable farming systems.
A deeper understanding of this
relationship's dynamics can only
serve to strengthen it and enable
sectoral growth.
Private sector groups have been
actively involved in the agriculture
industry in several
ways. One such way is by creating
opportunities and prospects to
increase farming productivity.
Laxmi Argo Vet Center, a private
sector-led shop for various
agro-products in Surkhet, has
been providing consultations
and advice for several farmers
in Thagleni village located in
Gurvakot Municipality, Surkhet.
By establishing a local farmer’s
group called "Hariyali Taja Tarkari
Utpadan Krishak Samuha" (Green
Fresh Vegetables Producing
Farmer's Group) in 2018, the
center has been providing
training and workshops on small-
scale farming and livelihood
improvement such as Integrated
Pest Management (IPM).
A success story of the Integrated
Pest Management (IPM) training
is that of 32-year-old Bhumisara
Khadka, explained in the box
story below.

Betrothed at the tender age of 15 to escape the Maoist conflict, Bhumisara Khadka, now a mother
of three, works as an IPM training facilitator for community farming of rice and vegetables.
Additionally, she also promotes technology in agriculture techniques like making and using organic
pesticides and manure, and IPM instruments usage, while combining cultural practices with the
skills and knowledge that she gained from Laxmi Agro Vet Center. Due to her improved knowledge
and capabilities, her 2 ropanis of land which she used to cultivate vegetables have expanded
to 8 ropanis. She has borrowed money through Community Agriculture Cooperative and the
Agricultural Development Bank Limited (ADBL). She also saves a little portion of her monthly
income in cooperatives and neighborhood saving organizations to cover her future expenses.
With better social, economic, and technical standing, Khadka serves as a beacon of hope and
inspiration in her community.
90 DOCKING NEPAL’S ECONOMIC ANALYSIS
Devkota Mandi, a vegetable trader
from Birendranagar, Surkhet,
enters the picture after Laxmi Agro
Vet, Agriculture Development
Bank, and Community Agricultural
Cooperative. This trader, among
others, travels to Thagleni to
collect fresh vegetables for the
market.
This is how the beautiful interplay
between different private sector
entities like banks, cooperatives,
Agro vets, vegetable traders,
and farmers takes place, finally
producing a reliable and powerful
supply chain. Farmers are aware
of where to obtain financing, from
whom to purchase agricultural
inputs, and to whom to sell.
Likewise, financial institutions
are aware of the locations and
purposes for which they have
granted financing. Also, traders
are aware of where to get
vegetables from and what to
expect in terms of their quality.
This relationship between
multiple entities gives a lot to
ponder for other stakeholders, like
municipal, provincial, and federal
governments, their agencies, and
various development partners,
as they try to understand the
intricacies and apply them to
other regions of the country.
Alternatively, perhaps include
knowledge derived from this kind
of relationship in the formulation
of policy. Or, if necessary, make an
effort to facilitate this interaction.

Promoting Gender-responsive
Agriculture System in Nepal
By Sagar GC,
Team Leader, Green Karnali Project, LI-BIRD
Gender responsive agriculture
system refers to the system
where agriculture communities
are free of inequalities and
agricultural policies, plans and
programs, that are designed
and formulated, treat men
and women equally in terms
of decision making, practices,
innovation and work benefits.
Gender responsive agriculture
is an approach to farming that
recognizes and addresses the
different needs, preferences, and
constraints faced by men and
women in agricultural production.
It takes into account gender-
based differences and promote
gender equality as well as
women’s empowerment.
Traditional agriculture system in
Nepal
Traditional agriculture in
Nepal integrates both men
and women with defined roles
and responsibilities and, thus,
reinforces traditional gender
roles. Men are accountable for
heavy work such as ploughing
in the fields, whereas women
are confined to smaller but
tedious tasks that require more
concentration and greater
engagement like post-harvest
management and agronomic
practices like weeding and
sowing.
Likewise, although women play a
critical role in agriculture in Nepal,
accounting for a significant
portion of the agricultural labor
force and contributing to food
security and rural development,
women farmers frequently face
numerous challenges, including
limited access to land, credit, and
inputs and lack of training and
education. In addition, more than
90% of male workers migrate
within or to other countries
in search of employment due
to the dearth of respectable
non-agricultural jobs in rural
areas and to rising household
demands, leaving agriculture
to women.418 66% of women in
the labor force are employed in
agriculture compared to 53% of
men.419 This trend of departure of
men has attributed to increased
opportunities for women by
redistributing power and allowing
them to participate in decisions
and behaviors,420 but their low
literacy rate has confined their
learning capacities. According
to countryeconomy.com, 78.59%
of men and 59.72% of women
are literate out of the total adult
NEFPORT ISSUE 52 – MARCH 2023 91
literacy rate of 67.91%.
Collectively, this suggests that
“gender-responsiveness” was
excluded from policies in the
past, resulting in men and women
being treated differently, unlike
the current state.
Gender-responsive agriculture
system in Nepal
Gender-responsive agriculture
is crucial for the growth of the
agriculture sector in Nepal
because it can help increase
agricultural productivity, reduce
poverty, and improve food
security. Recent issues like
outmigration, adoption of modern
technologies and climate change
have cut in the traditional farming
system.421 Various agricultural
policies, such as the Agricultural
Development Strategy (ADS),
have made gender-responsive
agriculture a priority by fostering
the expansion of micro, small,
and medium agro-enterprises,
especially those run by women
and disadvantaged groups. The
framework for gender responsive
agriculture system adopted in
Nepal has been shown in the
figure below.
92 DOCKING NEPAL’S ECONOMIC ANALYSIS

Figure 26. Framework for Gender Responsive Agriculture system in Nepal

Equality in
work
beneft

Equality in
Equality in
Policy
Practices
formulation

Gender
Responsive
Agriculture

Equality in
Equality in Decision
Innovation making

Equality in
Participation

Graph prepared by the Author

However, there are certain
challenges associated with the
implementation of gender-
responsive agriculture system.
With the goal of empowering men
and women, mechanization in
agriculture has begun along with
the development of organizations
and cooperatives with gender-
sensitive agriculture projects.
Mechanization of agriculture,
the adoption of machines and
technology to increase efficiency
and productivity in farming
activities, can significantly lessen
the toil of women if gender-
friendly tools and technologies
are promoted. This can increase
the efficiency and productivity
of farming activities, leading to
higher crop yields and a more
effective use of resources. On
the contrary, the introduced
agriculture mechanization is
incapable of reducing women's
workloads because it does not
meet the needs of the community
and women farmers cannot reap
its benefits. The groups formed
for empowering farmers are not
meeting its objectives. A single
individual is involved in more
than one group, groups are
disorganized and focused only
on getting subsidies and support
from the government and other
stakeholders. They are more
engaged in saving and credit
than developing it as a learning-
sharing platform.
If effective implementation of
gender-responsive agriculture is
carried out, it can help empower
women by increasing their
access to resources, improving
their decision-making power,
and enhancing their status in
their communities.
There is also a crucial need to
attract young people into the
agriculture industry as they
are being compelled to leave
Nepal for better opportunities.
To prevent youth emigration,
opportunities for job creation
and revenue generation
through agricultural enterprise
development must be created.
The government, development
organizations, and other
stakeholders working with the
groups should have a monitoring
and management system in
place to prevent duplication
of members and reduce
mismanagement of resources.
Efforts should be made to target
 NEFPORT ISSUE 52 – MARCH 2023 93

women's groups, young women,
and institutions led by women
with capacity-building initiatives
that emphasize empowerment,
institutional development,
entrepreneurship, access to
finance, and leveraging resources
from the various stakeholders.
Consideration must be given
to climate change adaptation,
mitigation technologies and
practices. It is essential to
have an effective policy and
implementation in this regard.
There should be policy alignment
between the three levels of
government and other interested
parties. With proper research,
planning, and budget allocation,
appealing policy should be
formulated.
One such example of an
organization that is working
continuously on gender-
responsive agriculture while
promoting equality in innovation,
practices, participation, work
benefit, decision making and
policy support is Local Initiatives
for Biodiversity, Research and
Development (LI-BIRD).

Established in 1995, LI-BIRD is dedicated to improving the lives of smallholder farmers by utilizing
local resources, technologies, and institutions for sustainable management of natural resources.
Tools and techniques like corn shellers, jab planters, brush cutters, millet threshers, hand sprayers,
farm rakes, livestock shed cleaning rakes, sack farming, and drip irrigation have been introduced
to both terai and hill farming communities with the goal of reducing the drudgery that falls on
women. The organization’s Home Garden concept has saved women's time and eased the burden
of providing year-round vegetables for the kitchen as the time they saved was put to good use
caring for and bringing their kids to school.

The organization is concentrating on developing the institutional, entrepreneurial, and capacity

building of women organizations, young women, and institutions led by women. One example
of this is by paying project participants equally for comparable work such as compensating a
facilitator for the Farmers Field School (FFS) where both male and female farmers make equal
decisions on sowing time and harvesting.

LI-BIRD is considering the gender responsive programs and activities in different strategy and
guideline developed at all three tires of government.

Overall, a gender-responsive in efforts to promote agricultural opportunities for women and

agriculture system is important growth and food security. It men in agriculture.
for achieving sustainable and seeks to address the gender-
inclusive development and related constraints within the
ensuring that no one is left behind sector and create more equitable
94 DOCKING NEPAL’S ECONOMIC ANALYSIS
A Conversation with Yuvraj
Gurung about Agri-business
in Nepal
The Nepal Economic Forum team
conducted an interview with
Yuvraj Gurung, the Managing
Director of Agro Manang, to gain
a deeper understanding of the
perspectives of doing business
based in agriculture sector in
Nepal. The details of the interview
are presented below:
What sparked the idea of
starting Agro Manang?
Agro Manang is a family business
pioneering in high-density
apple farming in Manang district
of Nepal. Its inception can be
traced back two generations,
where my grandfather who
was the mayor then witnessed
a business opportunity in
commercializing apple farming
in Manang. However, it had not
materialized much back then.
Likewise, despite not having an
agricultural background and
having resided in Kathmandu
since the age of 13 years, my
father, Pholden Chopang Gurung,
was always motivated by the
desire to repay the community
where he came from – Manang.
He has sentimental attachment
to the area where we harvest
apples because it was once a
community-run orchard. When
we investigated what could be
done, the cultivation of saffron,
herbs, and apples came to mind.
After further investigation of
import data, we determined that
apple was the most imported
fruit. Even today, around NPR 3
– 4 billion apples are imported
annually. This led us to the
conclusion that the economics
of the apple-growing method
in Nepal were untenable, as the
world had moved away from
traditional farming and adopted
new methods. In contrast,
our harvests were late and
insufficient. This provided us with
additional motivation. We soon
determined, based on our own
research, that we would be able
to harvest our first crop of apples
in the second year, leading to
a full harvest in six to seven
years, and thus making it viable
for us. In addition, our strategy
for growing apples was based
on economic considerations,
labor distribution, and storage
capacities, as we were aware that
different varieties of apples have
varying needs.
Were there any exemplary
cases you observed in Nepal or
outside in 2013/14 that inspired
you to start Agro Manang?
No, there were no such cases in
Nepal or India. Besides Himachal,
India doesn’t have a big apple
farming community. Compared
to those in India, agro-villages
in Nepal have limited access to
technology and infrastructure.
However, road access improved
in Manang which led us to work
on apple farming and go forth
with the agri-business idea of
apples.
How is the market access for
agro-businesses in Nepal?
How have you been successful
in venturing out into different
agro-processing industries?
Market access involves trading
with low margins and high
volumes. There are six to seven
apple cartels that monopolize
the entire apple industry in Nepal,
resulting in a low likelihood of
apples finding suitable markets.
While we import billions of Nepali
Rupees worth of agricultural
products for Agro Manang, our
annual revenue is only between
NPR 40 to NPR 50 million. The
revenue is mostly generated by
selling between NPR 15 to NPR 20
million worth of apples on the
farm. Likewise, the majority of
foreign and domestic travelers
who visit Manang and Tilicho
purchase between 1.5 and 2
kilograms of apples as souvenirs.
Moreover, because our apple
harvests coincide with the two
largest festivals in Nepal, Dashain
and Tihar, numerous Manang-
native government officials
frequently purchase our goods
while returning from Manang.

In terms of venturing out,
infrastructural development and
enabling factors are crucial for
the growth of agro-businesses.
Since the agro-industry in
Nepal is still in its infancy (in
the case of apples), there are
no industries that can absorb
unmarketable apples. We face
several challenges in the supply
chain, as non-marketable apples
are not recycled to juice or
cider factories, unlike developed
nations. Idealistically, 90% of
my time and effort at Agro
Manang should be devoted to
product development, but I am
only able to devote 50% due
to the fact that I am constantly
occupied with addressing issues
relating to roads, supply chain
issues, fertilizers, electricity,
and government policies. In
order to operate our tea houses
and production facility, we
even had to develop our own
electric power through a micro
hydropower plant. In 2015, I also
self-educated and conducted
research on fertilizers, packaging,
and pesticides. As a result, we
have established a separate
company called Manang
Beverages to address many of
these market issues.
How has the agro-processing
industries contributed to
employment, technology, and
social impact?
Agro Manang has been able to
create socio-economic impacts,
especially through employment
and trainings. We educate the
community about emerging
farming trends, provide them with
inputs, linkages and technical
knowledge, thus leading to a
guaranteed income as long as
they produce apples.
Having said this, a major
challenge has been the scarcity
of skilled labor in Manang,
leading us to employ people
from Lamjung, Gorkha, and
other neighboring districts.
Likewise, another challenge is
that the amount of revenue that
farmers are able to generate
from the same parcel of apples
and grains is vastly different as
government subsidies for grains
are significantly higher. Similarly,
inadequate arable land is also a
significant problem for us.
How was your experience
working with the federalized
government and its policies
back then?
Our experience has shown
that working with federalized
governments is easier than
working with projects. With
projects, one must adhere to
the guidelines and formats, such
as maintaining balance sheets,
cash flows, profits, statements,
and reports. Farmers who
depend on a third party may
face communication issues with
the project consultant/team
because of their inexperience
and unfamiliarity with market
research and technicalities of
report submission. In contrast,
local governments inspect the
area after farmers apply for grants
and then distribute subsidies,
making the process simpler
and more transparent. However,
there are certain challenges
to this as well. For instance,
despite the government's desire
NEFPORT ISSUE 52 – MARCH 2023 95
for commercial entities to take
over agriculture, its plans and
programs are geared toward
small farmers, resulting in
contradictory policies and lack
of understanding about ground
realities.
What roles have subsidy
technology played in your
business? What do you
suggest other farmers to do?
Subsidies have played a pivotal
role for Agro Manang. Over the
years, we have advocated for
increased government subsidies.
My second project received
more subsidies than my first
one in which the subsidies were
granted from the High Mountain
Agribusiness and Livelihood
Improvement (HIMALI) Project,
funded by the Asian Development
Bank (ADB) (ADB). Currently,
local, provincial, and federal
governments are all focused
on agro-farming and provide
subsidies. This year and last, the
province of Gandaki provided a
75% subsidy on cheese, which
was greater than what we had
received from HIMALI. They are
also providing 50% subsidies on
fencing, 50% on trellising, and
50% on irrigation systems. I
advise farmers to utilize these as
opposed to investing solely on
their own due to the excessive
capital expenditures.
Similarly, the old technology
that we utilized could plant
approximately 16 trees, whereas
the new technology can plant
approximately 10 times higher,
thereby increasing the planting
density by a factor of 10. However,
along with this, the investment
96 DOCKING NEPAL’S ECONOMIC ANALYSIS
also increases exponentially and
the quality is not at par with
imports.
Can you give us a comparable
picture of your imports and
exports?
In the case of Agro Manang, all
of the high-density apple trees
are imported, majorly from Italy,
Turkey and other European
countries. Italy holds roughly
over 95% market share in terms
of imports. In contrast, we do
not have any exports due to our
relatively low production and
restrictive policies. For instance,
the wine production laws of Nepal
state that one kilogram of apples
can produce 1.5 liters of wine,
which is unlikely and must be
revised as wine production varies
by fruit. We have future plans to
penetrate in a niche market for
wines priced NPR 5,000 to NPR
10,000 per bottle, but it appears
challenging in absence of apple-
specific laws. This also hinders
our export plans.
Do you see a possibility for
agro-tourism in Nepal?
Agro Manang farm is built in a
way that everything is around the
corner – the winery and resort.
The resort, Bhratang Farmhouse,
is termed as a luxury agro-resort
in the scenic Bhratang of Manang
district, which offers heated
rooms with private bathrooms,
dining room, fireplace, sauna,
dormitory and others. Our focus
is in generating revenue from the
resort, and to be able to create
a small wine-tasting room in
the coming year. We believe
that schools can organize their
excursions around this area as
well as treat it as a recreational
place for breaks from their long
treks in the mountains.
As much as we believe in the
high potential for agro-tourism
in Nepal, the prospects seem
challenging for us since the
proximity from the capital,
Kathmandu, till Manang district is
far.
Has digitization been applied to
any aspect of your business? If
not, can it aid your business?
While technology has made
it easier to plant around 10
trees in 1 anna, which is a 900%
increase from 1 tree per anna,
the practices of digitization
are yet to be observed. We
have an interconnected farm
with a technical system that
can provide information about
the ground conditions and is
accessible via smart phones.
Even so, we need personnel to
monitor the system. Therefore, if
five to six micro weather stations
can be established, it would be
advantageous to provide farmers
with disease and weather alerts
via WhatsApp or any other means.
Similarly, farmers currently
use YouTube to gain access to
training and knowledge, but a
Manang-specific app would be
even more useful.
What are your suggestions for
new farmers who intend to be
involved in agro-processing?
As we have limited human capital
and land to farm, the selection
of a crop should make the most
sense for the farmer. When
selecting apples, I considered
their economic value, import
scenario, and potential for growth.
Understanding the market and
the consumption pattern of fruits
is preferable as well. Avocados
and dragon fruits are only
popular in Kathmandu or major
districts, which is why one should
refrain from investing in it majorly
unless appropriate varieties of
such fruits can reach the market.
Additionally, standardization and
product branding are equally
crucial.

Endnotes
1 “Press Freedom Index”, Reporters without
Borders, March 7, 2023. https://rsf.org/en/country/nepal
2 “2023 Index of Economic Freedom”, Heritage.
org, March 7, 2023. https://www.heritage.org/index/
country/nepal#:~:text=Nepal's%20economic%20
freedom%20score%20is,the%20world%20and%20
regional%20averages.
3 “Global Data”, Fragilestakesindex.org, March 7,
2023. https://fragilestatesindex.org/global-data/
4 “Corruption Perception Index”, Transparency
International, March 7, 2023. https://www.transparency.
org/en/cpi/2022
5 “Poudel, Santosh Sharma. “Pushpa Kamal Dahal
Heads New Government in Nepal”, December 27, 2022.
https://thediplomat.com/2022/12/pushpa-kamal-dahal-
heads-new-government-in-nepal/
6 Mulmi, Amish Raj. “A plot twist makes Pushpa
Kamal Dahal prime minister of Nepal”, Himal Southasian,
December 28, 2023. https://www.himalmag.com/nepal-
election-pushpa-kamal-dahal-prime-minister-2022/
7 “Prime Minister Pushpa Kamal Dahal secures
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8 Ghimire, Binod. “Is Congress the main
opposition? It’s Speaker’s call”, The Kathmandu Post,
January 23, 2023. https://kathmandupost.com/
politics/2023/01/23/is-congress-the-main-opposition-
it-s-speaker-s-call
9 “Rabi Lamichhane found guilty in citizenship
case”, Khabarhub, January 27, 2023. https://english.
khabarhub.com/2023/27/290943/
10 “The Curious Case of Rabi Lamichhane”,
MyRepublica, January 31, 2023. https://myrepublica.
nagariknetwork.com/news/the-curious-case-of-rabi-
lamichhane/
11 “Rastriya Swatantra Party to leave government”,
Online Khabar, February 5, 2023. https://english.
onlinekhabar.com/rastriya-swatantra-party-out-govt.
html
12 “Rastriya Prajatantra Party quits government”,
The Kathmandu Post, February 25, 2023. https://
kathmandupost.com/national/2023/02/25/rastriya-
prajatantra-party-exits-government
13 “RPP ministers quit government”, Nepal News,
February 25, 2023. https://nepalnews.com/s/nation/rpp-
NEFPORT ISSUE 52 – MARCH 2023 97
ministers-quit-government
14 https://thehimalayantimes.com/nepal/uml-
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15 Prasain, Sangam. “Nepal downsizes budget
as revenue collection plunges”, The Kathmandu Post,
February 12, 2023. https://kathmandupost.com/
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revenue-collection-plunges
16 Ibid.
17 Ibid.
18 “Ex-speaker Agni Sapkota's son appointed
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com/news/agni-sapkota-s-son-appointed-as-foreign-
affairs-advisor-to-the-prime-minister/
19 “House regulation drafting committee agrees
to not suspend accused lawmakers until found guilty”,
The Kathmandu Post, February 10, 2023. https://
kathmandupost.com/national/2023/02/10/house-
regulation-drafting-committee-agrees-to-not-
suspend-accused-lawmakers-until-found-guilty
20 “By-election in Chitwan-2 scheduled for April
23”, The Kathmandu Post, February 12, 2023. https://
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april-23
21 Ibid.
22 “Chitwan-2 By-Election on April 23”, Online
Khabar, February 12, 2023. https://english.onlinekhabar.
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23 “Code of Conduct for President, Vice President
elections comes into effect from today”, MyRepublica,
March 1,2023. https://myrepublica.nagariknetwork.com/
news/code-of-conduct-for-president-vice-president-
elections-comes-into-effect-from-today/
24 Ibid.
25 “Paudel elected as Nepal’s third president”,
MyRepublica, March 10, 2023. https://myrepublica.
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third-president/
26 Khatiwada, Nishan. “Paudel caps his career
with presidency”, The Kathmandu Post, March 10, 2023.
https://kathmandupost.com/national/2023/03/10/
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27 “India pledges grant amount of Rs 8.8 billion
98 DOCKING NEPAL’S ECONOMIC ANALYSIS
to Nepal for FY 2023/24, an increase of 29.41 percent”,
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nagariknetwork.com/news/india-pledges-grant-
amount-of-rs-8-8-billion-to-nepal-for-fy-2023-24-
an-increase-of-29-41-percent/
28 “USAID announces assistance of nearly $60
million to Nepal”, The Rising Nepal, February 7, 2023.
https://risingnepaldaily.com/news/22467
29 “USAID Deepens Democratic Partnership with
the Government and People of Nepal”, USAID, February
7, 2023. https://www.usaid.gov/news-information/press-
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30 “Govt expects to receive Rs 66bn in budgetary
support from development partners”, The Annapurna
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31 https://theannapurnaexpress.com/news/govt-
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from-development-partners-38478
32 “Province 1 officially named as Koshi Province
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officially-named-as-koshi-province/
33 Ibid.
34 Sah, Deo Narayan. “It’s Koshi. Province 1 gets
its name, finally”, The Kathmandu Post, March 1, 2023.
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35 “Provinces spending in the first half of current
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36 https://theannapurnaexpress.com/news/govt-
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from-development-partners-38478
37 “Global inflation will fall in 2023 and 2024 amid
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38 “Global Inflation Tracker Q1 2023: Inflationary
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39 “Global MPI 2022”, OPHI. https://ophi.org.uk/
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42 Chan, Terry. “Global Debt Leverage: Is a Great
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44 Ibid
45 Ibid
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48 Gourinchas, Pierre-Olivier. “Global Economy
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49 “Global Economic Prospects: Sharp, Long-
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50 “Global inflation will fall in 2023 and 2024 amid
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51 “IMF: World economic outlook is starting to
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52 Shine, Ian. “IMF raises global growth forecasts
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53 Cox, Jeff. “Fed raises interest rates half a
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55 Bloomberg, William. “World economy faces
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56 Linna, Lydia. “IMF projects higher-than-
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57 Kok, Xinghui. “IMF lifts 2023 growth forecast
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58 “Trade growth to slow sharply in 2023 as global
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wto.org/english/news_e/pres22_e/pr909_e.htm.
59 “IFC Launches $2 Billion Response Package to
Support Ukrainian Private Sector,” IFC. https://pressroom.
ifc.org/all/pages/PressDetail.aspx?ID=27338.
60 “IFC’s Economic Resilience Action Program for
Ukraine,” IFC. https://www.ifc.org/wps/wcm/connect/
region__ext_content/ifc_external_corporate_site/
europe+and+central+asia/priorities/strategic-
framework-ukraine.
61 “International trade faces a stagnant decade
lagging the world economy,” Business Standard. https://
www.business-standard.com/article/international/
international-trade-faces-a-stagnant-decade-lagging-
the-world-economy-123011700320_1.html.
62 Wintour, Patrick. “The sanctions war against
Russia: a year of playing cat and mouse”, The Guardian,
https://www.theguardian.com/world/2023/feb/20/
sanctions-war-russia-ukraine-year-on-vladimir-putin
63 Velloor, Ravi. “BCG’s consultants are on a roll
in AI, sustainability”, The Straits Times, https://www.
straitstimes.com/business/invest/bcg-s-consultants-
are-on-a-roll-in-ai-sustainability
64 “India-China trade at $135.98 bn in 2022.
Trade deficit crosses $100 bn mark,” Business Standard.
https://www.business-standard.com/article/economy-
policy/india-china-trade-at-all-time-high-but-deficit-
over-100-billion-mark-123011300551_1.html
65 “Despite Frosty Relations, India's Trade With
China Reaches Record Levels,” The Wire. https://thewire.
in/trade/india-china-trade-deficit-2022-imports-
exports
66 Annath, Krishnan. “India’s imports from China
reach record high in 2022, trade deficit surges beyond
$100 billion”, The Hindu, https://www.thehindu.com/
news/international/indias-imports-from-china-reach-
record-high-in-2022-trade-deficit-surges-beyond-
100-billion/article66372861.ece
NEFPORT ISSUE 52 – MARCH 2023 99
67 “Trade Deficit Between India, China Falls To
$51.5 Billion This Fiscal,” NDTV. https://www.ndtv.com/
business/trade-deficit-between-india-china-falls-to-
51-5-billion-this-fiscal-3592924
68 “Trade and Economic Relations: Bilateral
Commercial Brief,” Embassy of India in China. https://
www.eoibeijing.gov.in/eoibejing_pages/MjQ,
69 “India-China Trade Touches All-Time High Of
$135.98 Billion In 2022,” BQ Prime. https://www.bqprime.
com/business/india-china-trade-climbs-to-13598-
billion-in-2022-trade-deficit-crosses-100-billion-for-
first-time
70 Ibid
71 “The Global Risks Report 2023 18th Edition,”
World Economic Forum. https://www3.weforum.org/
docs/WEF_Global_Risks_Report_2023.pdf
72 Ibid
73 “The World Development Report 2023:
Migrants, Refugees, and Societies,” World Bank Group.
https://www.worldbank.org/en/publication/wdr2023
74 Ibid
75 Ibid
76 Ibid
77 Mikhaylova, Anna. “Impact of Cross-Border
Tourism on the Sustainable Development of Rural Areas
in the Russian–Polish and Russian–Kazakh Borderlands”,
The MDPI, https://www.mdpi.com/2071-1050/14/4/2409
78 “The Global Wage Report 2022-23,” ILO.
https://www.ilo.org/digitalguides/en-gb/story/
globalwagereport2022-23#intro
79 Ibid
80 “Global Trade Update (December 2022),” The
United Nations Conference on Trade and Development.
https://unctad.org/publication/global-trade-update-
december-2022
81 Ibid
82 “Development Co-operation Report 2023:
Debating the Aid System,” OECD. https://www.oecd.org/
dac/development-co-operation-report-20747721.htm
83 “Electricity Market Report 2023,” IEA. https://
www.iea.org/reports/electricity-market-report-2023
84 Evans, Simon. “Renewables will be world’s top
electricity source within three years, IEA data reveals”,
World Economic Forum, https://www.weforum.org/
agenda/2023/02/renewables-world-top-electricity-
source-data/
85 “Renewables to dominate growth of global
electricity supply: IEA report,” ANI. https://www.
100 DOCKING NEPAL’S ECONOMIC ANALYSIS
aninews.in/news/business/business/renewables-to-
dominate-growth-of-global-electricity-supply-iea-
report20230220112802/
86 “Davos 2023: Key takeaways from the World
Economic Forum,” Reuters. https://www.reuters.com/
business/davos-2023-key-takeaways-world-economic-
forum-2023-01-20/
87 Francis, Tracy. “Why Davos matters more than
ever”, Mckinsey & Company, https://www.mckinsey.com/
featured-insights/world-economic-forum/why-davos-
matters-more-than-ever
88 Mark, John. “Davos 2023: Outlook brighter than
feared, fraught with risks”, Reuters, https://www.reuters.
com/world/davos-2023-outlook-brighter-than-feared-
fraught-with-risks-2023-01-20/
89 Kumar, Manoj. “India's Budget 2023 highlights”,
Reuters, https://www.reuters.com/world/india/india-
unveils-202324-budget-support-growth-amid-fiscal-
constraints-2023-02-01/
90 “Union Budget,” Government of India. https://
www.indiabudget.gov.in/
91 Ibid
92 Michaelson, Ruth. “Earthquake in Turkey
and Syria kills thousands and devastates cities”, The
Guardian, https://www.theguardian.com/world/2023/
feb/06/turkey-earthquake-2023-gaziantep
93 Hallam, Jonny. “Magnitude 6.3 aftershock
strikes southern Turkey, killing 6 and injuring hundreds
2 weeks after massive quake killed thousands”, CNN
Global, https://edition.cnn.com/2023/02/20/middleeast/
turkey-quake-aftershock-intl/index.html
94 Iordache, Ruxandra. “Turkey-Syria
reconstruction costs to come to ‘billions of dollars”,
CNBC News, https://www.cnbc.com/2023/02/13/turkey-
syria-reconstruction-costs-to-come-to-billions-of-
dollars-world-bank-says.html
95 Barber, Regina. “After another earthquake in
Turkey, what scientists know about aftershocks”, NPR,
https://www.npr.org/2023/02/20/1158432074/after-
another-earthquake-in-turkey-what-scientists-know-
about-aftershocks
96 Rosario, Regina Do. “Turkey earthquake could
result in loss of up to 1% of country's GDP in 2023”,
Reuters, https://www.reuters.com/world/middle-east/
turkey-earthquake-could-result-loss-up-1-countrys-
gdp-2023-2023-02-16/
97 ‘Current Macroeconomic and Financial
Situation (based on eleven months’ data ending mid-
October 2022/23)’, Nepal Rastra Bank, November
16, 2022, https://www.nrb.org.np/red/current-
macroeconomic-and-financial-situation-tables-based-
on-three-months-data-of-2022-23/
98 ‘Current Macroeconomic and Financial
Situation (based on eleven months’ data ending mid-
June 2021/22)’, Nepal Rastra Bank, August 16, 2022,
https://www.nrb.org.np/contents/uploads/2022/08/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Annual-data-of-2021.22-1.pdf
99 There are four quarters in one fiscal year in
Nepal. Namely, first quarter (Q1) covers mid-July to mid-
October, second quarter (Q2) covers mid-October to
mid-January, third quarter (Q3) covers mid-January to
mid-April and fourth quarter (Q4) covers mid-April to
mid-July. According to Nepal Rastra Bank, the growth
rate shows growth from previous quarter i.e., growth in
Q2 is based on Q1, growth in Q3 is based on Q2, growth
in Q3 is based on Q4 and growth in Q4 is based on Q1.
100 ‘Quarterly GDP’, Nepal Rastra Bank, January
2023, https://www.nrb.org.np/database-on-nepalese-
economy/real-sector/
101 Ibid
102 ‘Nepal Development Update’, The World Bank,
October 6, 2022, https://thedocs.worldbank.org/en/doc/
a27ca3a08e77befb785fc6742708a56c-0310012022/
original/Nepal-Development-Update-October-2022.pdf
103 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
104 Prasain, Sangam. ‘Nepal’s inflation hit 74-month
high in September’, The Kathmandu Post, October 21,
2022, https://tkpo.st/3TBHgpI
105 ‘Inflation Expectations Survey’, Nepal Rastra
Bank, February 15, 2023, https://www.nrb.org.np/
contents/uploads/2023/02/IESN-Report-2079-80Q2.
pdf
106 ‘Consumer Price Index (CPI) Definition and
Formula’, Investopedia, accessed on August 19, 2021.
Retrieved from- https://www.investopedia.com/terms/c/
consumerpriceindex.asp#:~:text=The%20Consumer%20
Price%20Index%20(CPI,of%20goods%20and%20
averaging%20them.
107 Banton, Caroline. ‘Basket of Goods’,
Investopedia, accessed on November 26, 2021.
Retrieved from- https://www.investopedia.com/terms/b/
basket_of_goods.asp#:~:text=What%20Is%20a%20
Basket%20of,basis%2C%20often%20monthly%20
or%20annually.&text=A%20basket%20of%20goods%20
is,consumer%20price%20index%20(CPI).
108 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-

English-Based-on-Six-Months-data-of-2022.23.pdf
109 ‘IMF projects Nepal’s economy to grow at
4.2’, Nepal live today, October 24, 2022, https://www.
nepallivetoday.com/2022/10/24/imf-projects-nepals-
economy-to-grow-at-4-2/
110 Lama, Kiran. ‘Govt preparing to hike milk price
by Rs 10 per litre’, The Himalayan Times, February 20,
2023, https://thehimalayantimes.com/nepal/govt-
preparing-to-hike-milk-price-by-rs-10-per-litre
111 Gupta, Ashish. ‘Key highlights of Budget
2022/23’, Nepal Economic Forum, June 1, 2022, https://
nepaleconomicforum.org/key-highlights-of-budget-
2022-23/#:~:text=The%20Government%20of%20
Nepal%20(GoN,upcoming%20fiscal%20year%20
2022%2D23.
112 ‘Half-yearly budget review of FY 2022/23’,
Ministry of Finance, February 2023.
113 Ibid
114 Ibid
115 ‘Half-yearly budget review of FY 2022/23’,
Ministry of Finance, February 2023.
116 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
117 ‘Nefport 50: LDC Graduation and Beyond’,
Nepal Economic Forum, Issue 50, Pg: 78 – 83, September
2022, https://media.thuprai.com/book/pdfs/NEF-
Journal_Issue50_Web_compressed_FINAL.pdf
118 Purbey, Anmol. ‘Looking for a better and
sustainable alternative to grants and loans? Go for
FDI’, Nepal Live Today, December 1, 2022, https://www.
nepallivetoday.com/2022/12/01/looking-for-a-better-
and-sustainable-alternative-to-grants-and-loans-go-
for-fdi/
119 ‘Aid management information system for
Nepal’, Ministry of Finance, accessed on March 7, 2023,
https://amis.mof.gov.np/AMP-portlet/api/dashboard
120 ‘Aid management information system for
Nepal’, Ministry of Finance, 2022, https://amis.mof.gov.
np/AMP-portlet/api/dashboard
121 ‘European Union provides Rs 27 million as
humanitarian funding assistance’, The Kathmandu Post,
December 6, 2022, https://tkpo.st/3F9EFh0
122 Ibid
123 Shrestha, Prithvi Man. ‘South Korea plans to
increase aid to Nepal’, The Kathmandu Post, February 14,
2023, https://kathmandupost.com/money/2023/02/14/
NEFPORT ISSUE 52 – MARCH 2023 101
south-korea-plans-to-increase-aid-to-nepal
124 Ibid
125 ‘UNDP partners with Chinese NGO for the first
time in Nepal’, The Kathmandu Post, December 17, 2021,
https://kathmandupost.com/national/2022/12/17/undp-
partners-with-chinese-ngo-for-the-first-time-in-nepal
126 Ibid
127 Ibid
128 Shrestha, Pemba. ‘Nepal: IMF Reaches Staff-
Level Agreement on the First and Second Reviews under
the Extended Credit Facility and Concludes the 2023
Article IV Consultation’, International Monetary Fund,
Press Release, February 28, 2023, https://www.imf.org/
en/News/Articles/2023/02/28/mcs-022823-nepal-
imf-reaches-sla-first-second-reviews-under-ecf-
concludes-2023-art-iv-consultation#:~:text=IMF%20
staff%20and%20the%20Nepal,approved%20by%20
the%20Executive%20Board.
129 ‘IMF Executive Board Approves US$395.9
Million ECF Arrangement for Nepal’, International
Monetary Fund, Press Release, January 13, 2022, https://
www.imf.org/en/News/Articles/2022/01/13/pr2206-
nepal-imf-executive-board-approves-us-million-ecf-
arrangement
130 Shrestha, Pemba. ‘Nepal: IMF Reaches Staff-
Level Agreement on the First and Second Reviews under
the Extended Credit Facility and Concludes the 2023
Article IV Consultation’, International Monetary Fund,
Press Release, February 28, 2023, https://www.imf.org/
en/News/Articles/2023/02/28/mcs-022823-nepal-
imf-reaches-sla-first-second-reviews-under-ecf-
concludes-2023-art-iv-consultation#:~:text=IMF%20
staff%20and%20the%20Nepal,approved%20by%20
the%20Executive%20Board
131 Ibid
132 ‘Nepal to take loan worth Rs 1.19 billion
from ADB for Rural Roads Improvement Program’,
Khabarhub, February 15, 2023, https://english.khabarhub.
com/2023/15/293279/
133 Ibid
134 Ibid
135 ‘Nepal, World Bank launch USD 100m water
sector governance and infrastructure support project’,
Nepal Live Today, February 10, 2023, https://www.
nepallivetoday.com/2023/02/10/nepal-world-bank-
launch-usd-100m-water-sector-governance-and-
infrastructure-support-project/
136 ‘Agricultural Development Strategy
(2015-2035), Ministry of Agricultural Development,
Government of Nepal, https://faolex.fao.org/docs/pdf/
nep171433.pdf
102 DOCKING NEPAL’S ECONOMIC ANALYSIS
137 Urpilainen, Jutta. ‘Nepal and EU fight food
insecurity together’, Nepal Live Today, February 8, 2023,
https://www.nepallivetoday.com/2023/02/08/nepal-
and-eu-fight-food-insecurity-together/
138 Ibid
139 ‘USAID deepens democratic partnership
with the government and people of Nepal’, Nepal Live
Today, February 7, 2023, https://www.nepallivetoday.
com/2023/02/07/usaid-deepens-democratic-
partnership-with-the-government-and-people-of-
nepal/
140 Ibid
141 ‘Japan provides financial assistance for new
turmeric processing center in Pyuthan’, Khabarhub,
December 9, 2022, https://myrepublica.nagariknetwork.
com/news/japan-provides-financial-assistance-for-
new-turmeric-processing-center-in-pyuthan/
142 Ibid
143 ‘Nepal to receive USD 200 million concessional
loan from ADB’, Khabarhub, December 27, 2022, https://
english.khabarhub.com/2022/27/286680/
144 Ibid
145 Ibid
146 Shrestha, Prithvi Man. ‘Nepal receives just
around half of the committed foreign loans’, The
Kathmandu Post, November 10, 2021, https://bit.
ly/30gt6V5
147 ‘Half-yearly budget review of FY 2022/23’,
Ministry of Finance, February 2023.
148 Ibid
149 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
150 Mainali, Shyam Prasad. ‘Utilising Remittances
For Development’, The Rising Nepal, February 4, 2023,
https://risingnepaldaily.com/news/22306
151 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
152 ‘Remittance inflows to Nepal up by record
20 percent’, The Kathmandu Post, December 15, 2022,
https://tkpo.st/3FWgcOb
153 Ibid
154 Ibid
155 ‘Remittances Brave Global Headwinds – Special
Focus: Climate Migration’, Migration and Remittances
Team, Migration and Development Brief 37, World Bank,
November 2022, https://www.knomad.org/sites/default/
files/2022-11/migration_and_development_brief_37_
nov_2022.pdf
156 Pandey, Pawan. ‘Nepal squanders overseas
seasonal work opportunities’, The Kathmandu
Post, March 2, 2023, https://kathmandupost.com/
money/2023/03/02/nepal-fails-to-capitalise-on-
overseas-seasonal-work-opportunities
157 Ibid
158 Pandey, Pawan. ’UK may not hire Nepali
seasonal workers this year’, The Kathmandu Post,
January 29, 2023, https://kathmandupost.com/
money/2023/01/29/uk-may-not-hire-nepali-seasonal-
workers-this-year
159 Ibid
160 Pandey, Pawan. ‘Nepal asks Malaysia to apply
‘zero-cost’ migration policy’, The Kathmandu Post,
February 3, 2023, https://tkpo.st/3WWAdJH
161 Ibid
162 Ibid
163 ‘Nepali migrant workers to benefit from basic
salary hike in South Korea’, The Kathmandu Post, January
3, 2023, https://tkpo.st/3WZnPZB
164 Ibid
165 Recruitment Advisor, ‘Who we are’, accessed
on March 2023, https://www.recruitmentadvisor.org/
about-us
166 ‘Nepal is a champion country for fair
recruitment, but on paper only, observers say’,
The Kathmandu Post, January 30, 2023, https://
kathmandupost.com/money/2023/01/30/nepal-is-a-
champion-country-for-fair-recruitment-but-on-paper-
only-observers-say
167 Ibid
168 Ibid
169 ‘Nefport 51: Fostering Entrepreneurial
Ecosystem in Nepal’, Nepal Economic Forum, Issue 51,
Pg: 28 – 29, December 2022, https://media.thuprai.com/
book/pdfs/Nefport_51_-_Fostering_Entrepreneurial_
Ecosystem_in_Nepal.pdf
170 Pandey, Pawan. ‘World Cup behind the scenes:
Workers get raw deal’, The Kathmandu Post, November
12, 2022, https://tkpo.st/3Tw2eWw
171 Ibid
 NEFPORT ISSUE 52 – MARCH 2023 103

172 ‘FIFA misleading the world on compensation Situation (based on six months’ data ending mid-
to migrant workers, say four global rights organisations’, January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
The Kathmandu Post, December 12, 2022, https://tkpo. https://www.nrb.org.np/contents/uploads/2023/02/
st/3Pzj5Yt Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
173 Ibid
189 Ibid
174 ‘Current Macroeconomic and Financial
Situation (based on six months’ data ending mid- 190 Ibid
January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/ 191 ‘Current Macroeconomic and Financial
Current-Macroeconomic-and-Financial-Situation- Situation (based on six months’ data ending mid-
English-Based-on-Six-Months-data-of-2022.23.pdf January 2022/23)’, Nepal Rastra Bank, February 6, 2023,
https://www.nrb.org.np/contents/uploads/2023/02/
175 Ibid Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.pdf
176 ‘Remittance inflows jump 24 percent to
Rs585.08 billion’, The Kathmandu Post, February 6, 2023, 192 Ibid
https://tkpo.st/3JF9iit
193 Nepal Rastra Bank. 2023. Current
177 Prasain, Krishana. ‘Nepal's central bank Macroeconomic and Financial Situation of Nepal.
continues policy of controlling credit expansion’, Nepal Rastra Bank. Accessed March 7, 2023. https://
The Kathmandu Post, February 10, 2023, https:// www.nrb.org.np/contents/uploads/2023/02/
kathmandupost.com/money/2023/02/10/nepal-s- Current-Macroeconomic-and-Financial-Situation-
central-bank-continues-policy-of-controlling-credit- English-Based-on-Six-Months-data-of-2022.23.
expansion pdf#:~:text=Reserves%20held%20by%20banks%20
and,percent%20in%20mid%2D%20January%202023.
178 Adhikari, Dadhi. ‘Unravelling the current
economic situation in Nepal’, Observer Research 194 lbid.
Foundation, June 15, 2022, https://www.orfonline.org/
expert-speak/unravelling-the-current-economic- 195 lbid.
situation-in-nepal/
196 lbid.
179 ‘Current Macroeconomic and Financial
197 lbid.
Situation (based on six months’ data ending mid-
January 2022/23)’, Nepal Rastra Bank, February 6, 2023, 198 lbid.
https://www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation- 199 lbid.
English-Based-on-Six-Months-data-of-2022.23.pdf
200 lbid.
180 Ibid
201 lbid.
181 Ibid
202 lbid.
182 Ibid
203 Department of Customs. 2023. Foreign Trade
183 Ibid Data. Department of Customs. Accessed March 7, 2023.
https://www.customs.gov.np/page/fts-fy-207980.
184 Ibid
204 lbid.
185 Ibid
205 lbid.
186 ‘Nepal Gazette’, Department of Printing,
Ministry of Information and Communication Technology, 206 lbid.
April 26, 2022, http://rajpatra.dop.gov.np/welcome/
book/?ref=24936 207 lbid.

187 Prasain, Krishana. ‘Nepal's central bank 208 lbid.

continues policy of controlling credit expansion’,
209 lbid.
The Kathmandu Post, February 10, 2023, https://
kathmandupost.com/money/2023/02/10/nepal-s- 210 lbid.
central-bank-continues-policy-of-controlling-credit-
expansion 211 My Republica. 2022. Nepal grows 6.94 percent
more paddy, still faces shortfall of 480,000 tons this
188 ‘Current Macroeconomic and Financial year. December 30. Accessed March 7, 2023. https://
104 DOCKING NEPAL’S ECONOMIC ANALYSIS
myrepublica.nagariknetwork.com/news/nepal-grows-6-
94-percent-more-paddy-still-faces-shortfall-of-480-
000-tons-this-year/.
212 lbid.
213 The Kathmandu Post. 2022. Farmers likely to
harvest 5.48 million tonnes of paddy. December 29.
Accessed March 7, 2023. https://kathmandupost.com/
money/2022/12/29/nepali-farmers-likely-to-harvest-5-
48-million-tonnes-of-paddy.
214 My Republica. 2022. Farmers still waiting for
chemical fertilizers. November 29. Accessed March 7,
2023. https://myrepublica.nagariknetwork.com/news/
farmers-still-waiting-for-chemical-fertilizers/.
215 The Kathmandu Post. 2023. Nepal implements
new safety standards for various foods. January 4.
Accessed March 7, 2023. https://kathmandupost.com/
money/2023/01/04/nepal-implements-new-safety-
standards-for-various-foods.
216 The Kathmandu post. 2023. 85 percent of flour
mills shut after India restricted wheat export. January 27.
Accessed March 7, 2023. https://kathmandupost.com/
money/2023/01/27/85-percent-of-flour-mills-shut-
after-india-restricted-wheat-export.
217 The Himalayan Times. 2022. India's wheat
export ban weighs on Nepali industries. November 29.
Accessed March 7, 2023. https://thehimalayantimes.
com/business/indias-wheat-export-ban-weighs-on-
nepali-industries.
218 Khabarhub. 2023. Parbat exports orange worth
around Rs 300 million. February 20. Accessed March 7,
2023. https://english.khabarhub.com/2023/20/293993/.
219 “Exports by Commodity Based on First
Seven(Shrawan-Magh) of FY 2079/80 (Mid July 2022 to
Mid February 2023)”, Department of Customs, March 1,
2023. https://customs.gov.np/page/fts-fy-207980
220 The Himalayan Times. 2023. Tea worth Rs 38
million exported. February 7. Accessed March 7, 2023.
https://thehimalayantimes.com/business/tea-worth-rs-
38-million-exported.
221 lbid.
222 Khabarhub. 2023. Lalbandi exports agricultural
produce worth over Rs 1 billion in seven months.
February 23. Accessed March 7, 2023. https://english.
khabarhub.com/2023/23/294409/.
223 The Rising Nepal. 27. Cows imported from
South Korea distributed to farmers. December 2022.
Accessed March 7, 2023. https://www.risingnepaldaily.
com/news/20627#:~:text=The%20cows%20
obtained%20from%20Heifer,the%20breed%20and%20
protect%20them.
224 The Kathmandu Post. 2022. With Holstein
cows, Sindhuli looks to boost dairy sector. December 31.
Accessed March 7, 2023. https://kathmandupost.com/
money/2022/12/30/sindhuli-expects-to-transform-
dairy-industry-with-high-quality-cows.
225 Nepal Rastra Bank. 2023. Current
Macroeconomic and Financial Situation of Nepal.
Nepal Rastra Bank. Accessed March 7, 2023. https://
www.nrb.org.np/contents/uploads/2023/02/
Current-Macroeconomic-and-Financial-Situation-
English-Based-on-Six-Months-data-of-2022.23.
pdf#:~:text=Reserves%20held%20by%20banks%20
and,percent%20in%20mid%2D%20January%202023.
226 lbid.
227 Reuters. 2023. Nepal detects H5N1 bird flu on
farm, WOAH says. February 6. Accessed March 7, 2023.
https://www.reuters.com/world/asia-pacific/nepal-
detects-h5n1-bird-flu-farm-woah-says-2023-02-06/.
228 Annapurna Express. 2023. Farmers get grant for
milk production. February 21. Accessed March 7, 2023.
https://theannapurnaexpress.com/news/farmers-get-
grant-for-milk-production-38627.
229 IFAD. 2023. IFAD to support loan and grant
to enhance sustainable agricultural growth in Nepal.
February 25. Accessed March 7, 2023. https://www.ifad.
org/en/web/latest/-/news/ifad-to-support-loan-and-
grant-to-enhance-sustainable-agricultural-growth-in-
nepal.
230 Khabarhub. 2023. National agriculture census
reaches final stage. January 7. Accessed March 7, 2023.
https://english.khabarhub.com/2023/07/288100/.
231 “Nepal Foreign Trade Statistics Based on First
Four(Shrawan-Kartik) of FY 2079/80 (Mid July 2022 to
Mid November 2022)”. Department of Customs.
232 “Monthly Operational Report for the Month of
Magh 2079”, Nepal Electricity Authority, March 1, 2023
233 “Half Yearly Budget Review Report 2079/80”,
Ministry of Finance.
234 “Monthly Operational Report for the Month of
Magh 2079”, Nepal Electricity Authority, March 1, 2023
235 ibid
236 ibid
237 “Energy Details”, Nepal Electricity Authority,
March 1, 2023. https://nea.org.np/
238 “Automobiles major contributor to Valley’s
air pollution: Dept of Environment”, Khabarhub,
December 27, 2022. https://english.khabarhub.
com/2022/27/286635/
239 “41 percent of vehicles fail pollution test”,
MyRepublica, December 27, 2022. https://myrepublica.
nagariknetwork.com/news/41-percent-of-vehicles-fail-
pollution-test/

240 Department of Customs, March 1, 2023. https://
customs.gov.np/page/fts-fy-207980
241 Prasain, Krishna. “Electric vehicle imports see-
saw as government policy fluctuates”, The Kathmandu
Post, August 8, 2022. https://kathmandupost.com/
money/2022/08/08/electric-vehicle-imports-see-saw-
as-government-policy-fluctuates
242 Pandey, Pawan. “Illegal crushers allowed to
run temporarily as construction projects come to
halt”, The Kathmandu Post, January 25, 2023. https://
kathmandupost.com/money/2023/01/25/illegal-
crusher-plants-allowed-to-operate-temporarily-as-
construction-projects-come-to-halt
243 “IBN Again calls EOI for Feasibility study of
eBRT in Kathmandu Ring Road”, The Annapurna Express,
February 6, 2023. https://theannapurnaexpress.com/
news/ibn-again-calls-eoi-for-feasibility-study-of-ebrt-
in-kathmandu-ring-road-38006
244 “Request for EOI (REOI) of Feasibility Study
for the Development, Operation and Management of
Electric Bus Rapid Transit (eBRT) in Ring Road(NH39)”,
Investment Board of Nepal, February 5, 2023. https://
ibn.gov.np/ibn-notices/details/request-for-eoi-reoi-of-
feasibility-study-for-the-development-operation-and-
management-of-electric-bus-rapid-transit-ebrt-in-
ring-roadnh39-9052
245 “EIC expresses interest in 635 MW
Dudhkoshi Reservoir Project”, February 8, 2023.
https://theannapurnaexpress.com/news/eib-
expresses-interest-in-635-mw-dudhkoshi-reservoir-
project-38086
246 “Sharp Fall in Power Generation Forces NEA
to Import over 500 MW of Electricity from India”,
THe Annapurna Express, February 16, 2023. https://
theannapurnaexpress.com/news/sharp-fall-in-power-
generation-forces-nea-to-import-over-500-mw-of-
electricity-from-india-38415
247 Shrestha, Prithvi Man. “Amid slump in power
generation, NEA reduces supply to industrial sector”,
The Kathmandu Post, February 7, 2023. https://
kathmandupost.com/national/2023/02/07/amid-
slump-in-power-generation-nea-reduces-supply-to-
industrial-sector
248 Rasaili, Samjhana & Singh, Basanta Pratap.
“Access tunner of 140 MW Tanahun hydro project
built”, The Kathmandu Post, February 20, 2023. https://
kathmandupost.com/money/2023/02/20/access-
tunnel-of-140-mw-tanahu-hydro-project-built
249 “140 MW anahun Hydropower project makes
breakthrough in its access tunnel”, February 3, 2023.
https://myrepublica.nagariknetwork.com/news/140-mw-
tanahun-hydropower-project-makes-breakthrough-
in-its-access-tunnel/#:~:text=KATHMANDU%2C%20
Feb%203%3A%20The%20140,its%20diameter%20is%20
seven%20meters.
NEFPORT ISSUE 52 – MARCH 2023 105
250 “NEA to reopen PPA with RoR hydel projects”,
The Himalayan Times, February 11, 2023. https://
thehimalayantimes.com/nepal/nea-to-reopen-ppa-
with-ror-hydel-projects
251 “NEA decides to sign PPAs for 1500MW
non-storage projects”, The Kathmandu Post,
February 10, 2023. https://kathmandupost.com/
national/2023/02/10/nea-decides-to-sign-ppas-
with-developers-of-1500mw-run-of-the-river-hydel-
projects#:~:text=The%20Nepal%20Electricity%20
Authority%20has,power%20monopoly%20to%20do%20
so.
252 “SC order against extending term of GMR
Upper Karnali hydropower in Nepal”, Business Standard,
November 4, 2022. https://www.business-standard.
com/article/companies/sc-order-against-extending-
term-of-gmr-upper-karnali-hydropower-in-
nepal-122110301992_1.html
253 “Indian officials raise concern over Upper
Karnali project”, The Annapurna Express, February
22, 2023, https://theannapurnaexpress.com/news/
indian-officials-raise-concern-over-upper-karnali-
project-38690
254 Shrestha, Prithvi Man. “Government wants
top court to vacate its interim order on Upper Karnali
Hydropower Project”, The Kathmandu Post, December 12,
2022. https://kathmandupost.com/national/2022/12/12/
government-wants-top-court-to-vacate-its-interim-
order-on-upper-karnali-hydropower-project
255 urjakhabar.
256 “Solar Power Producer’s demand Rs 7.30 per
unit rate”, Nepal Infrastructure, December 20, 2022.
https://nepalinfrastructure.com/9298/
257 “NEA Lowers PPA Rate of Energy Produced by
Solar Plants”, New Business Age, March 15, 2022. https://
www.newbusinessage.com/Articles/view/14933
258 “Solar power developers demand NEA to return
to old PPA rate”, The Annapurna Express, December 20,
2022. https://theannapurnaexpress.com/news/solar-
power-developers-demand-nea-to-return-to-old-ppa-
rate-35800
259 “Nepal plans to export electricity from Likhu-4
to Bangladesh”, The Annapurna Express, February
22, 2023. https://theannapurnaexpress.com/news/
nepal-plans-to-export-electricity-from-likhu-4-to-
bangladesh-38695
260 “Proposal to sell electricity from Likhu-4 to
Bangladesh”, Himal Sanchar, February 21, 2023. https://
himalsanchar.com/proposal-to-sell-electricity-from-
likhu-4-to-bangladesh/
261 https://theannapurnaexpress.com/news/six-
hours-daily-power-cut-in-industrial-areas-37529
106 DOCKING NEPAL’S ECONOMIC ANALYSIS
262 Shrestha, Prithvi Man. “Amid slump in power
generation, NEA reduces supply to industrial sector”,
The Kathmandu Post, February 7, 2023. https://
kathmandupost.com/national/2023/02/07/amid-
slump-in-power-generation-nea-reduces-supply-to-
industrial-sector
263 “Nepal-India agrees to import-export more
electricity”, Nepal News, February 19, 2023. https://
nepalnews.com/index.php/s/nation/nepal-india-agrees-
to-import-export-more-electricity
264 Shrestha, Prithvi Man. “Nepali and Chinese
officials discuss power trade”, The Kathmandu Post,
February 24, 2023. https://kathmandupost.com/
national/2023/02/24/nepali-and-chinese-officials-
discuss-power-trade
265 “Electricity leakage plugged to 12 percent”,
The Kathmandu Post, January 19 2023. https://
kathmandupost.com/money/2023/01/19/hed-
electricity-leakage-plugged-to-12-percent
266 Ministry of Physical Infrastructure and
Transport. 2023. "Annual Report." February 15. http://
www.mopit.gov.np/actsdetail/9/2018/93442849/.
267 lbid.
268 lbid.
269 lbid.
270 Yadav, Upendra. 2023. Construction of
Motihari-Amlekhganj petroleum pipeline reaches final
stage. February 26. https://myrepublica.nagariknetwork.
com/news/construction-of-motihari-amlekhganj-
petroleum-pipeline-reaches-final-stage/.
271 Dhungana, Madhav. 2023. Construction of
integrated check post at the Sunauli-Bhairahawa border
begins. February 9. doi:https://kathmandupost.com/
money/2023/02/09/construction-of-integrated-check-
post-at-the-sunauli-bhairahawa-border-begins.
272 The Nepalese Voice. 2022. Proposed Dodhara-
Chandani dry port contributes to increased economic
activities. December 11. https://nepalesevoice.com/
nepal/proposed-dodhara-chandani-dry-port-
contributes-to-increased-economic-activities/.
273 myRepublica. 2023. Jorpati-Sundarijal road
expansion drive comes closer to completion. February
27. https://myrepublica.nagariknetwork.com/news/
jorpati-sundarijal-road-expansion-drive-coming-
closer-to-completion/.
274 myRepublica. 2023. Melamchi water
distribution in locations outside the ring road of
the Valley will cost Rs 23 billion. February 21. https://
myrepublica.nagariknetwork.com/news/melamchi-
water-distribution-in-locations-outside-the-ring-road-
of-the-valley-will-cost-rs-23-billion/.
275 myRepublica. 2023. Construction of 19
mega projects in limbo in Myagdi. February 5. https://
myrepublica.nagariknetwork.com/news/construction-of-
19-mega-projects-in-limbo-in-myagdi/.
276 Lamsal, Himal. 2023. Bheri Babai sees only
59 percent progress in 11 years. February 7. doi:https://
myrepublica.nagariknetwork.com/news/bheri-babai-
sees-only-59-percent-of-construction-in-11-years/.
277 Nepal Telecommunications Authority.
November 2022– December 2022. MIS Report. Nepal
Telecommunications Authority. Accessed March 3, 2023.
https://nta.gov.np/wp-content/uploads/2023/03/MIS-
Mangsir-2079.pdf.
278 lbid.
279 lbid.
280 lbid.
281 Nepal Rastra Bank. 2023. Current
Macroeconomic and Financial Situation of Nepal.
Nepal Rastra Bank. Accessed March 3, 2023. https://
www.nrb.org.np/contents/uploads/2023/02/Current-
Macroeconomic-and-Financial-Situation-English-
Based-on-Six-Months-data-of-2022.23.pdf.
282 Nepal Rastra Bank. 2023. Payment
Oversight Report. Nepal Rastra Bank. Accessed
March 3, 2023. https://www.nrb.org.np/contents/
uploads/2023/02/2079_09_P-S-Indicators-of-Poush-.
pdf.
283 The Kathmandu Post. 2022. Nepal ranks
way down in digital entrepreneurship and innovation.
December 21. Accessed March 3, 2023. https://
kathmandupost.com/money/2022/12/21/nepal-ranks-
way-down-in-digital-entrepreneurship-and-innovation.
284 The Himalayan Times. 2023. Provision of
compensation for internet users. February 28. Accessed
March 3, 2023. https://thehimalayantimes.com/nepal/
provision-of-compensation-for-internet-users.
285 Nepali Telecom. 2023. Number of Fiber Internet
Users Crosses 2.3 Million. January 15. Accessed March 3,
2023. https://www.nepalitelecom.com/internet-users-
isp-in-nepal.
286 Nepal Telecom Authority. 2023. "Notification
regarding the issuance of Telecommunication Service
Quality Regulations, 2079." Nepal Telecom Authority,
February 27. Accessed March 3, 2023. https://nta.gov.np/
en/notice-nta-qos-bylaw-2079/.
287 Nepali telecom. 2023. Nepal Mobile Distributors
Association Urges Swift MDMS Implementation in
Nepal. February 8. Accessed March 3, 2023. https://
www.nepalitelecom.com/nepal-mobile-distributors-
association-requests-mdms-implementation.

288 Nepal Telecom Authority. 2023. "Interim
Directives related to Inflight Communication (IFC)
Services." February 23. Accessed March 3, 2023. https://
nta.gov.np/wp-content/uploads/2023/02/Interim-
Directives-related-to-IFC-Services.pdf.
289 Nepali Telecom. 2023. Ntc Fiber connects
more remote districts in Karnali province. February 13.
Accessed March 3, 2023. https://www.nepalitelecom.
com/2023/02/ntc-fiber-in-karnali-province.html.
290 Ministry of Finance. “Budget Speech of Fiscal
Year 2022/23,” Government of Nepal, 2022. https://mof.
gov.np/site/publication-detail/3185
291 Ibid
292 Ibid
293 Ibid
294 Ibid
295 Ibid
296 “University of Nepal taking shape,” The
Annapurna Express. February 16, 2023. https://
theannapurnaexpress.com/news/university-of-nepal-
taking-shape-38453
297 “Bill to form Nepal University lands in House
committee,” The Kathmandu Post. February 25, 2023.
https://kathmandupost.com/national/2023/02/25/bill-
to-form-nepal-university-lands-in-house-committee
298 “Matribhumi Library comes into operation in
Syangja village,” Online Khabar. January 29, 2023. https://
english.onlinekhabar.com/matribhumi-library-syangja-
opens.html
299 “Nepal: Japan Assists Construction of
Matribhumi Community Library,” Telegraphnepal.
January 30, 2023. https://www.telegraphnepal.com/
nepal-japan-assists-construction-of-matribhumi-
community-library/
300 “Japanese extends support to construct library
in Sunsari district,” My Republica. December 24, 2023.
https://myrepublica.nagariknetwork.com/news/
japanese-extends-support-to-construct-library-in-
sunsari-district/
301 “Physical infrastructures, labs being
constructed in 143 schools in Baglung,” Khabarhub.
December 10, 2022. https://english.khabarhub.
com/2022/10/284440/
302 Bhatta, Tika Prasad. “Students of Hulakdanda
see no recourse but to quit studies after Grade
8,” The Kathmandu Post. January 21, 2023. https://
kathmandupost.com/national/2023/01/21/students-of-
hulakdanda-see-no-recourse-but-to-quit-studies-
after-grade-8; “Students deprived of secondary
education,” The Himalayan Times. January 30, 2023.
NEFPORT ISSUE 52 – MARCH 2023 107
https://thehimalayantimes.com/nepal/students-
deprived-of-secondary-education
303 “Why There Is Always A Shortage of Books At
Schools In Karnali?” The Nepali Post. January 12, 2023.
https://thenepalipost.com/details/29211
304 “Textbook Shortage Causes Challenges
for Students in Himali Districts of Karnali Province,”
Collegenp. February 15, 2023. https://www.collegenp.
com/news/textbook-shortage-causes-challenges-for-
students-in-himali-districts-of-karnali-province/
305 Maharjan, Uttam. “Tackle Textbook Shortage
Effectively,” The Rising Nepal. January 24, 2023. https://
www.risingnepaldaily.com/news/21809
306 “Govt tells schools to not give entrance exams
for class 1 admission,” Online Khabar. January 13, 2023.
https://english.onlinekhabar.com/dont-give-entrance-
exams-class-1.html
307 “CEHRD Prohibited Entrance Exam for
Admission to Class 1,” Collegenp. January 19, 2023.
https://www.collegenp.com/news/cehrd-prohibited-
entrance-exam-for-admission-to-class-1/
308 Rauniyar, Rubi. “Eight months on, TU shows no
sign of publishing results,” My Republica. December 20,
2022. https://myrepublica.nagariknetwork.com/news/
eight-months-on-tu-shows-no-sign-of-publishing-
results/
309 Awale, Sonia. “Nepal’s hard working students
overseas,” December 17, 2022. https://www.nepalitimes.
com/banner/nepals-hard-working-students-overseas/
310 “ANNFSU padlocks TU’s Examination
Controller’s Office,” My Republica. January 10, 2023.
https://myrepublica.nagariknetwork.com/news/annfsu-
padlocks-tu-s-examination-controller-s-office/
311 “Policy-level Priority and Common Minimum
Program of Government of Nepal,” Government of Nepal.
January 10, 2023. https://www.opmcm.gov.np/
312 Ghimire, Binod. “Nepal fails yet again to achieve
total literacy target,” The Kathmandu Post. January 14,
2023. https://tkpo.st/3CLF5tP
313 Himalayan News Service. “UNICEF and the
Government of Finland continue their partnership
to support the education sector of Nepal,” UNICEF.
December 22, 2022. https://www.unicef.org/nepal/
press-releases/unicef-and-government-finland-
continue-their-partnership-support-education-
sector#:~:text=Finland%20is%20committing%204.2%20
million,enhance%20quality%20services%20for%20
children.
314 “ADB Approves $200 Million Loan to
Strengthen Education System in Nepal,” Asian
Development Bank. December 6, 2022. https://www.adb.
org/news/adb-approves-200-million-loan-strengthen-
108 DOCKING NEPAL’S ECONOMIC ANALYSIS
education-system-nepal
315 Bhatta, Tika Prasad. “Midday meal scheme
fails to dissuade Ramechhap students from junk food,”
The Kathmandu Post. December 12, 2022. https://tkpo.
st/3UN5CNl
316 Strategic Investment Research Unit. “Budget
2023: Major Impetus to India’s Education Sector,” Invest
India. February 1, 2023. https://www.investindia.gov.
in/team-india-blogs/budget-2023-major-impetus-
indias-education-sector#:~:text=The%20education%20
sector%20has%20received,)%20crore%20in%20
2023%2D24.
317 Minister of Finance, “Budget Speech 2023–24
of Nirmala Sitharaman,” Government of India. February
1, 2023. https://www.indiabudget.gov.in/doc/budget_
speech.pdf
318 Ministry of Finance, “Budget Speech of Fiscal
Year 2022/23,” Government of Nepal. 2022. https://
www.mof.gov.np/uploads/document/file/1656476715_
Budget%20Translation%20031379%20cv.pdf
319 Minister of Finance, “Budget Speech 2023–24
of Nirmala Sitharaman,” Government of India. February
1, 2023. https://www.indiabudget.gov.in/doc/budget_
speech.pdf
320 Himalayan New Service, “Irregularities rampant
in community schools,” The Himalayan Times. December
31, 2022. https://thehimalayantimes.com/nepal/
irregularities-rampant-in-community-schools
321 Ministry of Health and Population. “Nepal
Demographic and Health Survey 2022 Key Indicators
Report,” Government of Nepal. November 24, 2022.
https://mohp.gov.np/uploads/Resources/Nepal%20
Demographic%20and%20Health%20Survey%20
2022%20Key%20Indicators%20Report.pdf
322 Ibid
323 Ibid
324 Ibid
325 Ministry of Health and Population. “Situation
Report.” COVID-19 Dashboard. Government of Nepal,
February 21, 2023. https://covid19.mohp.gov.np/covid/
englishSituationReport/63f4a4d08137d_SitRep1108_
COVID-19_21-02-2023_EN.pdf
326 Ministry of Health and Population. “Public
Health Facilities.” Department of Health Services (Public
Health Facilities). Accessed March 1, 2023. https://dohs.
gov.np/hospitals/public-hospitals/.
327 Poudel, Arjun. “Government doesn’t have Covid
boosters for people going abroad,” The Kathmandu
Post. February 27, 2023. https://kathmandupost.com/
health/2023/02/27/government-doesn-t-have-covid-
boosters-for-people-going-abroad
328 “Nepal receives 345,600 doses of Pfizer-
BioNTech’s bivalent Covid-19 vaccine,” The Kathmandu
Post. February 10, 2023. https://kathmandupost.com/
health/2023/02/13/nepal-receives-345-600-doses-of-
pfizer-biontech-s-bivalent-covid-19-vaccine
329 Poudel, Arjun. “Nepal grants emergency
use approval to Pfizer-BioNTech’s bivalent vaccine,”
The Kathmandu Post. December 28, 2022. https://
kathmandupost.com/health/2022/12/28/nepal-grants-
emergency-use-approval-to-pfizer-biontech-s-
bivalent-vaccine
330 Ministry of Health and Population. “Situation
Report.” COVID-19 Dashboard. Government of Nepal,
February 21, 2023. https://covid19.mohp.gov.np/covid/
englishSituationReport/63f4a4d08137d_SitRep1108_
COVID-19_21-02-2023_EN.pdf
331 Poudel, Arjun. “No Covid vaccines in stock, but
officials urge all to get boosters,” The Kathmandu Post.
January 2, 2023. https://tkpo.st/3Z0ZHHY
332 Poudel, Arjun. “People over 55, other priority
groups to get Covid booster shots,” The Kathmandu
Post. February 20, 2023. https://kathmandupost.com/
health/2023/02/20/people-over-55-other-priority-
groups-to-get-covid-booster-shots
333 Poudel, Arjun. “Government doesn’t have Covid
boosters for people going abroad,” The Kathmandu
Post. February 27, 2023. https://kathmandupost.com/
health/2023/02/27/government-doesn-t-have-covid-
boosters-for-people-going-abroad
334 Poudel, Arjun. “Measles cases reported
in provinces east to west,” The Kathmandu Post.
February 10, 2023. https://kathmandupost.com/
health/2023/02/10/measles-cases-reported-in-
provinces-east-to-west
335 Poudel, Arjun. “Health officials seek religious
leaders’ help in Banke measles vaccination drive,”
The Kathmandu Post. January 22, 2023. https://
kathmandupost.com/health/2023/01/22/health-
officials-seek-religious-leaders-help-in-banke-
measles-vaccination-drive
336 Poudel, Arjun. “Thousands of 12-23 month olds
deprived of vaccines,” The Kathmandu Post. December
12, 2022. https://tkpo.st/3HtmmX5
337 Poudel, Arjun. “Budget cuts for mosquito nets
and testing kits stymie Nepal’s fight against malaria,”
The Kathmandu Post. February 13, 2023. https://
kathmandupost.com/health/2023/02/13/budget-cuts-
for-mosquito-nets-and-testing-kits-stymie-nepal-s-
fight-against-malaria
338 Poudel, Arjun. “Open border with India
big challenge in meeting malaria elimination goal,”
The Kathmandu Post. January 25, 2023. https://
kathmandupost.com/health/2023/01/25/open-
border-with-india-big-challenge-in-meeting-malaria-
 NEFPORT ISSUE 52 – MARCH 2023 109

elimination-goal
339 Poudel, Arjun. “Ministry, division give varying
data on dengue toll,” The Kathmandu Post. January 9,
2023. https://tkpo.st/3QmjLAI
340 “Nepal’s dengue outbreak exposes climate
risk,” Nepali Times, November 29, 2022. https://www.
nepalitimes.com/latest/nepals-dengue-outbreak-
exposes-climate-risk/
341 Poudel, Arjun. “Nepal disease control body
to study high dengue mortality,” The Kathmandu Post.
December 2, 2022. https://tkpo.st/3VsbRrh
342 Poudel, Arjun. “Over 5,000 girls of 11-13 years
in Chitwan receive HPV vaccine,” The Kathmandu Post.
March 1, 2023. https://tkpo.st/3miIsmM
343 “Drug regulatory body bans import of
medicines from 16 Indian companies,” The Kathmandu
Post. December 20, 2022. https://kathmandupost.com/
health/2022/12/20/drug-regulatory-body-bans-import-
of-medicines-from-16-indian-companies
Demographic%20and%20Health%20Survey%20
2022%20Key%20Indicators%20Report.pdf
350 Singh, Basanta Pratap. “Specialist services for
pregnant women begins at Kolti Primary Health Centre,”
The Kathmandu Post. December 21, 2022. https://
kathmandupost.com/health/2022/12/21/specialist-
services-for-pregnant-women-begins-at-kolti-primary-
health-centre
351 Poudel, Arjun. “Chopper permit hassles costing
lives in Gorkha,” The Kathmandu Post. December 30,
2022.
https://kathmandupost.com/health/2022/12/30/
chopper-permit-hassles-costing-lives-in-gorkha
352 Current Macroeconomic and Financial Situation
Table Based on 6 Months of Data, Nepal Rastra Bank, Feb
06, 2023. https://www.nrb.org.np/
353 Ibid
354 Ibid

344 “Medicines: Good manufacturing practices,” 355 Ibid

World Health Organization. Accessed on March 3,
356 Ibid
2023. https://www.who.int/news-room/questions-
and-answers/item/medicines-good-manufacturing- 357 Ibid
processes#:~:text=What%20is%20GMP%3F-,Good%20
manufacturing%20practice%20(GMP)%20is%20a%20 358 Economic Survey – 2021/22, Ministry of
system%20for%20ensuring%20that,through%20 Finance, Government of Nepal, 2022. https://mof.gov.np/
testing%20the%20final%20product.
359 Ibid
345 Ministry of Health and Population. “Nepal
Demographic and Health Survey 2022 Key Indicators 360 Ibid
Report,” Government of Nepal. November 24, 2022.
361 Ibid
https://mohp.gov.np/uploads/Resources/Nepal%20
Demographic%20and%20Health%20Survey%20 362 Ibid
2022%20Key%20Indicators%20Report.pdf
363 Ibid
346 Poudel, Arjun. “Thousands of women skip
routine maternity services,” The Kathmandu Post. 364 Ibid
February 22, 2023. https://kathmandupost.com/
health/2023/02/22/thousands-of-women-skip-routine- 365 Current Macroeconomic and Financial Situation
maternity-services Table Based on 6 Months of Data, Nepal Rastra Bank,
November 15, 2022. https://www.nrb.org.np/
347 Poudel, Arjun. “Call for better surveillance
amid rising maternal deaths,” The Kathmandu Post. 366 Ibid
February 28, 2023. https://kathmandupost.com/ 367 "Nepal Country Profile." Government of
health/2023/02/28/call-for-better-surveillance-amid- India, July 2014,”https://www.mea.gov.in/Portal/
rising-maternal-deaths ForeignRelation/Nepal_July_2014_.pdf”
348 Poudel, Arjun. “Kanti Hospital adds intensive 368 “Over 600,000 foreigners visit Nepal in 2022
care units, sets up kangaroo mother care beds,” as tourism industry rebounds”, my República, January
The Kathmandu Post. December 22, 2022. https:// 4, 2023, https://myrepublica.nagariknetwork.com/news/
kathmandupost.com/health/2022/12/22/kanti-hospital- over-600-000-foreigners-visit-nepal-in-2022-as-
adds-intensive-care-units-sets-up-kangaroo-mother- tourism-industry-rebounds/
care-beds
369 "Welcoming Chinese Tourists." The Kathmandu
349 Ministry of Health and Population. “Nepal Post, January 8, 2023, https://kathmandupost.com/
Demographic and Health Survey 2022 Key Indicators columns/2023/01/08/welcoming-chinese-tourists
Report,” Government of Nepal. November 24, 2022.
https://mohp.gov.np/uploads/Resources/Nepal%20 370 Ibid
110 DOCKING NEPAL’S ECONOMIC ANALYSIS
371 “Nepals new law requires all foreign trekkers
to hire a guide”, Outside Online, March 6, 2023, https://
www.outsideonline.com/adventure-travel/news-
analysis/nepal-backpacking-hiking-trekking-tourism/
372 Ibid
373 Ibid
374 Ibid
375 “Hotel Yak and Yeti instructed to halt
operations”, English Khabarhub (website), February 9,
2022, https://english.khabarhub.com/2022/09/236523/
376 "Kathmandu's Posh Hotels Are Once Again
Making Money," The Kathmandu Post (website),
December 24, 2022, https://kathmandupost.com/
money/2022/12/24/kathmandu-s-posh-hotels-are-
once-again-making-money.
377 Ibid
378 Ibid
379 Ibid
380 “About Us” Yeti Airlines, https://www.yetiairlines.
com/content/
381 "At least 50 dead after Nepal's Yeti Airlines
plane crashes." CNN, 15 Jan. 2023, https://edition.cnn.
com/2023/01/15/asia/nepal-yeti-airlines-crash-intl-hnk/
index.html.
382 "Pilot Error in Yeti Airlines Tragedy in Nepal."
Airline Ratings, 26 Sept. 2020, https://www.airlineratings.
com/news/pilot-error-in-yeti-airlines-tragedy-in-nepal/
383 “French expert team begins probe into
Yeti Airlines’ plane crash in Pokhara” The Hindu,
2022, February 8, https://www.thehindu.com/news/
international/french-expert-team-begins-probe-into-
yeti-airlines-plane-crash-in-pokhara/article66404131.
ece
384 “Number of air passengers and flights take
a nosedive after air crash”, My Republica, January
26, 2023, https://myrepublica.nagariknetwork.com/
news/number-of-air-passengers-and-flights-take-a-
nosedive-after-air-crash/?categoryId=81.
385 “Yeti Air plane crash major blow to tourism
industry: TAAN”, Khabarhub, 16 January 2023, https://
english.khabarhub.com/2023/16/289401/
386 "Bensley and Shinta Mani team up for new
luxury hotel in Nepal." Globetrender, February 23, 2023,
https://globetrender-com.cdn.ampproject.org/c/s/
globetrender.com/2023/02/23/bensley-shinta-mani-
mustang-hotel-nepal/amp/?fbclid=IwAR0Osl35-
4EuwcKLzqR-Imychf7rtFqt5KdpTjVMHUoRDoLQ1jWuRo
AF-jU
387 “Tourism History in Nepal”, Explore Himalaya,
November 21, 2017, https://www.explorehimalaya.com/
tourism-history-nepal/
388 “Govt Prepares stratergic action plan for Visit
Nepal Decade”, Onlinekhabar, 23 December, 2023,
https://english.onlinekhabar.com/action-plan-visit-
nepal-decade.html
389 "Visit Nepal Decade 2023-33." My Republica,
2 Dec. 2021, https://myrepublica.nagariknetwork.com/
news/visit-nepal-decade-2023-33/.
390 “Exploration of National Tourism Development,
Innovation and Marketing Policies: A Case Study of Nepal
Tourism Constraints”, Lochan Kumar Batala, Kalpana
Regmi, GiriRaj Sharma, Azmat Ullah, February , 2019,
https://www.scirp.org/journal/paperinformation.
aspx?paperid=90864
391 "Nepal opens nighttime business to boost
its ailing economy, tourism income.", the Kathmandu
Post, December 6, 2022, https://kathmandupost.com/
money/2022/12/06/nepal-opens-nighttime-business-
to-boost-its-ailing-economy-tourism-income.
392 Ibid
393 "No more service charge anywhere, top court
says." The Kathmandu Post, January 27, 2023, https://
kathmandupost.com/money/2023/01/27/no-more-
service-charge-anywhere-top-court-says
394 Ibid
395 Nepal Rastra Bank. 2022/23. Current
Macroeconomic and Financial Situation of Nepal.
Ministry of Finance. Accessed February 27, 2023. https://
www.nrb.org.np/category/current-macroeconomic-situ
ation/?department=red&fy=2079-80&subcategory=six-
months.
396 Ibid
397 myRepublica. 2023. NRB asks BFIs to waive
penal interest on loans that cross the due date
for payments. February 25. https://myrepublica.
nagariknetwork.com/news/nrb-asks-bfis-to-waive-
penal-interest-on-loans-that-cross-the-due-date-for-
payments/.
398 myRepublica. 2023. NRB tightens the noose
around microfinance companies exploiting customers.
February 24. https://myrepublica.nagariknetwork.com/
news/nrb-tightens-the-noose-around-microfinance-
companies-exploiting-customers/.
399 myRepublica. 2023. Nepal raises Rs 26.46
billion external loans in six months. February 15. https://
myrepublica.nagariknetwork.com/news/nepal-raises-rs-
26-46-billion-external-loans-in-six-months/.
400 Nepal Rastra Bank. 2023. Mid-Term Review
of Monetary Policy FY 2079-80. February 10. https://
www.nrb.org.np/contents/uploads/2023/02/Mid-Term-
Review-of-Monetary-Policy_FY-2079-80.pdf.

401 Prasain, Krishna. 2023. Nepal stares at
recession amid depressing market conditions. March
6. https://kathmandupost.com/money/2023/03/06/
nepal-stares-at-recession-amid-depressing-market-
conditions.
402 myRepublica. 2023. Foreign investors
repatriated earnings of Rs 22.55 billion in FY 2021/22.
February 10. https://myrepublica.nagariknetwork.com/
news/foreign-investors-repatriated-earnings-of-rs-22-
55-billion-in-fy-2021-22/.
403 myrepublica. 2023. NRB flexible on transaction
via electronic wallet, while being stern on fee of
interbank ATMs uses. February 1. https://myrepublica.
nagariknetwork.com/news/nrb-flexible-on-transaction-
via-electronic-wallet-while-being-stern-on-fee-of-
interbank-atms-uses/.
404 Nepal Rastra Bank. 2023. Current
Macroeconomic and Financial Situation. Ministry of
Finance. Accessed February 28, 2023. https://www.nrb.
org.np/category/current-macroeconomic-situation/.
405 SEBON. 2023. "Initial Public Offering
(IPO) Approved." Regulation and Management
Department. Accessed February 28, 2023.
https://sebon.gov.np/uploads/2023/02/26/
vg90Lq77oGJvsJ0AM1x5LQe1T8KxXmXcG1o4jodx.pdf.
406 SEBON. 2023. "Initial Public Offering
(IPO) Approved." Regulation and Management
Department. Accessed February 28, 2023.
https://sebon.gov.np/uploads/2023/02/26/
vg90Lq77oGJvsJ0AM1x5LQe1T8KxXmXcG1o4jodx.pdf.
407 myRepublica. 2023. Half-yearly review
of monetary policy not as expected by capital
market investors: Share investors. February 13.
https://myrepublica.nagariknetwork.com/news/
half-yearly-review-of-monetary-policy-not-as-
expected-by-capital-market-investors-share-
investors/?categoryId=opinion.
408 myRepublica. 2023. CGT collection from
share transactions fell to as low as 15 percent in first
half of current FY. January 19. https://myrepublica.
nagariknetwork.com/news/cgt-collection-from-share-
transactions-fell-to-as-low-as-15-percent-in-first-half-
of-current-fy/.
409 ‘Current Macroeconomic and Financial
Situation of Nepal: Based on Annual Data of FY 2021/22’,
Nepal Rastra Bank, August 16, 2022; https://www.nrb.org.
np/category/current-macroeconomic-situation/?depart
ment=red&fy=2078-79&subcategory=annual
410 ILO, 2019
411 Economic Survey 2078/29, Ministry of Finance,
May 28, 2022; https://www.mof.gov.np/site/publication-
detail/3170
412 World Bank Indicators, https://data.worldbank.
NEFPORT ISSUE 52 – MARCH 2023 111
org/indicator/SL.AGR.EMPL.MA.ZS?locations=NP;
https://data.worldbank.org/indicator/SL.AGR.EMPL.
FE.ZS?locations=NP, accessed on February 15, 2023
413 ‘Creating markets in Nepal: Country
Private Sector Diagnostic’, The World Bank &
International Finance Corporation, November
2018; https://documents1.worldbank.org/curated/
en/469051542745200461/pdf/Creating-Markets-in-
Nepal.pdf
414 Dahal, H.; Karki, M.; Jackson, T.; Panday, D. New
State Structure and Agriculture Governance: A Case
of Service Delivery to Local Farmers in the Eastern
Gangetic Plains of Nepal. Agronomy 2020, 10, 1874.
https://doi.org/10.3390/agronomy10121874
415 Economic Survey 2078/29, Ministry of Finance,
May 28, 2022; https://www.mof.gov.np/site/publication-
detail/3170
416 Prasain, Sangam. ‘Nepal's agricultural goods
imports soar to Rs325 billion despite Covid disruption’,
The Kathmandu Post, July 28, 2021; https://tkpo.
st/3i8YFWO
417 ‘Creating markets in Nepal: Country
Private Sector Diagnostic’, The World Bank &
International Finance Corporation, November
2018; https://documents1.worldbank.org/curated/
en/469051542745200461/pdf/Creating-Markets-in-
Nepal.pdf
418 Maharjan, Nasala. “An overview of female labor
migration in Nepal: Trends, patterns, and reasons,” Nepal
Economic Forum, https://nepaleconomicforum.org/an-
overview-of-female-labor-migration-in-nepal-trends-
patterns-and-reasons/
419 Sah, Krishna. “Women take over farming,”
Kathmandu Post, https://kathmandupost.com/
opinion/2018/08/16/women-take-over-farming
420 Mishra, Manamaya. “Female Labor Migration:
Gender Prospective,” Nepal Journals Online, https://www.
nepjol.info/index.php/jpd/article/view/48807
421 Pudasaini, Niranjan. “The Fate of Mountain
Farming System Relies on Women Farmers: A Case
of Dolakha, Nepal,” Research Gate, https://www.
researchgate.net/publication/342122507_The_Fate_
of_Mountain_Farming_System_Relies_on_Women_
Farmers_A_Case_of_Dolakha_Nepal
112 DOCKING NEPAL’S ECONOMIC ANALYSIS

NEF Profile
Nepal Economic Forum (NEF) is a premier private sector-led economic policy and
research organization that seeks to redefine the economic development discourse
in Nepal. Founded in 2009 as a not-for-profit organization under the beed (www.
beed.global) umbrella, NEF is a thought center that strives to positively transform
Nepal’s economic and development policies by strengthening the Nepali economy
through various activities to promote an efficient and inclusive private sector. NEF
has been featured in the list of Top Think Tanks in Southeast Asia and the Pacific in
the Global Go-To Think Tank Index Reports 2016 through 2021.

NEF BROADLY WORKS UNDER THE FOLLOWING AREAS:

Business Policy Research Center (BPRC) consolidates NEF’s activities into a hub that takes a holistic approach
to the issues; generates dialogue between the public and private sectors on economic growth concerns, and
acts as a platform for information dissemination.

NEF produced the following products as part of BPRC in 2021:

Himalayan Circular Center for Digital Transformation Global Nepali Network

Economy Forum (HICEF)
HiCEF is a platform to ideate
research, initiate policy dialogues
and disseminate information
relating to the circular economy
and the Himalayas.
Center for Digital Transformation
is an incubation program that
addresses cross-cutting themes
related to digital adoption and
revolution in emerging and frontier
markets of Asia and Africa.
Global Nepali Network is a
platform to connect Nepalis
around the world regardless of
their citizenship.

Renewable Energy Center
Renewable Energy Center is an
incubation program that engages
multiple stakeholders to articulate
discourse that will shape national-
level energy policies.
Nepal and the World
Nepal and the World (NAW)
will study Nepal's foreign policy
and diplomacy.
Center for Private Sector
Development
The Center for Private Sector
Development (CPSD) will focus on
private sector-led development
by supporting the growth of small
and medium enterprises.
 NEFPORT ISSUE 52 – MARCH 2023 113

Nepal Economic Forum has been engaged in the discourse of federalism in Nepal since 2009. NEF has engaged in
multiple policy discourses, conducted assessments and produced publications on Doing Business in Nepal against
the backdrop of federalism. Hence, through the Doing Business in Federated Nepal (DBFN) vertical, NEF shall continue
to engage itself in fostering a conducive business environment in the federated structure, supporting local businesses
and empowering local bodies in governance. For this, NEF intends to open national chapters in each of the seven
provinces of Nepal to promote localized efforts.

NEF operates in domain of Development Consulting (devCon) in conjunction with beed

management. It works with a variety of bilateral, multilateral, national and international
institutions in the areas of policy research, economic analysis, value chain analysis,
enterprise development, sectorial studies and public private dialogue.

We are striving to ensure financial sustainability for NEF to complement the support it currently receives from
beed management and the Open Society Foundations. If you are interested to support NEF, please do get in
touch with info@nepaleconomicforum.org

www.linkedin.com/company/nepal-economic-forum

@NEFNepal

https://www.youtube.com/channel/UCP5RNfvnTKSuSrZO4gqGpJw

@nepaleconomicforum

@nepaleconomicforum

https://medium.com/@nepal-economic-forum