From the Editor

Finding Alternatives to Save the Economy

Finding Alternatives to Save the Economy

The spike in coronavirus cases and the prohibitory orders issued by district administration offices in many districts paralysing over half the country has pushed the already crippled Nepali economy . . . Read more »


The Meaningfulness of the Monetary Policy

The Meaningfulness of the Monetary Policy

At a time when the government has failed to add any meaningful momentum to the country’s economy hard hit by the Covid-19 pandemic through the Federal Budget, the central bank has reignited the . . . Read more »


Mishandling of MCC Issues

Mishandling of MCC Issues

July 2020   
After failing to get the Millennium Challenge Compact (MCC) ratified at parliament, the government has informed theUnited States that the agreement has been currently ‘put on hold’. It was, . . . Read more »


Finding A Way Out of the Crisis

Finding A Way Out of the Crisis

June 2020   
Two recent reports, published by the World Bank and International Labour Organization (ILO) separately, have clearly indicated the deepening economic crisis in Nepal due to the Covid-19 pandemic. The . . . Read more »


Budget Priorities and Preferences

Budget Priorities and Preferences

May 2020   
The Federal Budget for the upcoming fiscal year is expected to be different from the past years as the budgetary priorities and programmes will be directed towards addressing the impact of COVID-19 . . . Read more »


Too Late, Too Little

Too Late, Too Little

April 2020   
In response to the economic damage inflicted by the coronavirus (COVID-19) pandemic, governments are announcing gigantic fiscal and monetary stimulus packages with a hope to limit the ongoing . . . Read more »


A LOST OPPORTUNITY

A LOST OPPORTUNITY

March 2020   
While addressing the House of Representatives on February 14, Prime Minister KP Sharma Oli presented a rosy picture of his government’s performance. There was no specific reason or occasion for the . . . Read more »


Making Visit Nepal 2020 a Success

Making Visit Nepal 2020 a Success

Nepal starts the New Year with the launch of the Visit Nepal (VN) 2020 campaign. The government has set an ambitious target of hosting two million tourists during the campaign year. After Visit Nepal . . . Read more »


DEFENDING DEMOCRATIC RIGHTS

DEFENDING DEMOCRATIC RIGHTS

After getting clearance from the Parliamentary Development and Technology Committee, the controversial Information Technology Bill is now in the House of Representatives for deliberation. It is an . . . Read more »


Taking the Credit

Taking the Credit

June 2019   
The Central Bureau of Statistics (CBS) in late April forecasted the country’s economic growth rate at 6.81 percent for the current fiscal year. Though the growth rate falls short of the . . . Read more »


Removing the Bitterness from the Sugar Market

Removing the Bitterness from the Sugar Market

May 2019   
Prime Minister KP Sharma Oli has accused sugar mill owners of tricking him into imposing higher customs tariffs and quantitative restrictions on the import of sugar, and that their activities have . . . Read more »


A Wasted Effort

A Wasted Effort

April 2019   
The National Planning Commission (NPC), the apex advisory body to formulate plans for the country’s development, has unveiled a roadmap to transform Nepal into a high-income economy in the next 25 . . . Read more »


Investment Summit and Doubts

Investment Summit and Doubts

March 2019   
The government has sped up preparations for the forthcoming Nepal Investment Summit 2019 scheduled for March 29-30 in Kathmandu. Of course, summits like this can prove to be helpful for attracting . . . Read more »


Policy of Haste

Policy of Haste

The latest volatility in the financial market prompted the government to form a high-level panel under the coordination of Nepal Rastra Bank’s deputy governor, which submitted its 58-points . . . Read more »


Clarity in Social Security Scheme

Clarity in Social Security Scheme

It is becoming clearer that the objectives of the contribution-based Social Security Scheme, launched by the government amid a fanfare on November 28, will not be met. First, there is big confusion . . . Read more »


A Litmus Test

A Litmus Test

In late October, after the World Bank released the Doing Business 2019 report, Finance Minister Dr Yubaraj Khatiwada publicly asked the multilateral lender to revise its decision to lower Nepal’s . . . Read more »


Climate Change, Technology and Sustainable Development

Climate Change, Technology and Sustainable Development

Two opposing extreme viewpoints emerge when it comes to discourses on climate change and technology. Some people blame economic development and technology for the ongoing environmental degradation. . . . Read more »


Be on the Right Track

Be on the Right Track

Eight months have elapsed since KP Sharma Oli assumed the prime ministerial post for the second time, after the Left Alliance won a two-thirds majority in the legislative elections held in November . . . Read more »


Stay Together

Stay Together

At a time when the private sector needs to unite and protect its space in the free market, differences and political divisions have seeped into the sector's institutional composition, undermining . . . Read more »


Maintain Regulatory Independence

Maintain Regulatory Independence

. . . Read more »


Budgetary Misgivings

Budgetary Misgivings

July 2018   
Ostensibly to drive its agenda of prosperity, the federal government has increased the tax burden. In reality, the taxes have been increased to finance the inflated recurrent expenses, undermining . . . Read more »


BBIN MVA: How to make it Effective

BBIN MVA: How to make it Effective

June 2018   
In recent years, the term “connectivity’’ has become a buzzword, especially in South Asia. This is considered, and rightly so, as a very important means to boost economic transaction as well as . . . Read more »


Still Confused

 Still Confused

May 2018   
More than four months have already passed since the election results were published giving a clear majority to the left coalition led by KP Oli as the future Prime Minister. And two months have . . . Read more »


Banks’ Stress Test

Banks’ Stress Test

April 2018   
Nepal’s banking sector is currently undergoing a stress test of its own kind. The struggle that the banks are facing to pass this test has led to peculiar other problems. Also, the regulator of . . . Read more »


Nepal-India Power Barter

Nepal-India Power Barter

March 2018   
The Nepal India energy secretarial level Joint Steering Committee (JSC) meeting is expected to commence soon once the Nepal’s government takes a full shape. It is understood that one of the focal . . . Read more »


Rethinking Export Incentive Scheme

Rethinking Export Incentive Scheme

Nepal’s trade deficit is ballooning each year due to sluggish exports and galloping imports. A decade and a half earlier, the exports were equivalent roughly to 18 percent of GDP. Now, this ratio . . . Read more »


Wish for Policy Stability

Wish for Policy Stability

The Nepali business community has welcomed the outcome of the general elections. It hopes the clear majority (almost two thirds) garnered by the coalition of the two communist parties, CPN-UML and . . . Read more »


Business Law Reforms

Business Law Reforms

The Nepali private sector has recently started a campaign to reform the entire gamut of business laws. Some laws need to be amalgamated with others, while some must be repealed outright. Some others . . . Read more »


Thaler & Public Policy

Thaler & Public Policy

Nudges are more important than nagging. That perhaps summarises the essence of the nudge theory for which Chicago University’s Professor Richard H Thaler was awarded this year’s Nobel Memorial . . . Read more »


Regulatory Lacunae

Regulatory Lacunae

Business problems in Nepal are mostly related to poor regulations. And better regulations themselves don’t yield results. What matters more is the competence of the regulatory body. From . . . Read more »


Disaster Preparedness

Disaster Preparedness

Lots of discussions are taking place lecturing Nepali industries on disaster preparedness. The lecturing has become even more frequent since the earthquake of 2015. And a lot of improvements have . . . Read more »


Unclear and Inward Looking

Unclear and Inward Looking

It is the responsibility of central banks the world over to give suggestions to the government regarding economic management, management of public debt and financial management. Preparing the . . . Read more »


Productive Sector Confusion

Productive Sector Confusion

July 2017   
Nepal Rastra Bank’s continued focus on controlling bank lending to unproductive sectors has been causing disruptions across various areas of the Nepali economy. Till recently, such disturbances . . . Read more »


Nepal in OBOR

Nepal in OBOR

June 2017   
After Nepal joined the China-sponsored Belt and Road Initiative (BRI) by signing in May 2017 the framework agreement on what is known as One Belt One Road (OBOR), analysts of different shades and . . . Read more »


CSR Tax

CSR Tax

May 2017   
Even as the Ministry of Industry under Minister Nabindra Raj Joshi is gaining praise for the speed of some important policy reforms, one recent event, however, indicates otherwise. In a programme . . . Read more »


Amended Companies Act

Amended Companies Act

April 2017   
After a long wait, the Parliament has passed the First Amendment in the Companies Act 2063 which is a positive development. However, an analysis of what the government had originally proposed as the . . . Read more »


Missing the Real Problem

Missing the Real Problem

March 2017   
Both of the top regulators of the economy - Ministry of Finance and Nepal Rastra Bank – brought out the mid-term review of their respective policies and made some changes in the middle of February. . . . Read more »


Dark Side of Ncell Tax

Dark Side of Ncell Tax

Feb 2017   
Should Ncell (Pvt) Ltd. pay the capital gains tax on the sale of its ownership by its earlier owner Telia Company to present owner Axiata? The answer differs depending on whom you ask. Obviously, the . . . Read more »


Time to Unpeg

Time to Unpeg

Jan 2017   
India’s decision to demonetize high denomination Indian currency notes has created a historic opportunity for Nepal to do away with the practice of pegging Nepali currency with that of India. The . . . Read more »


Taxpayer’s Dignity

Taxpayer’s Dignity

Nepal observed its Fifth National Tax Day on November 16, with the slogan that translates to something like “Let’s Pay Tax and Feel Dignified to Help Achieve Our Aspirations for a Prosperous . . . Read more »


Case against CIAA

Case against CIAA

This is the time to say “Down with the CIAA”. This is not just a demand for the abolition of this anti-graft body. It is also the reason for such a demand. The entire Nepali economy as well as . . . Read more »


Restarting Govt Factories

Restarting Govt Factories

In his work plan concerning industrial sector reform, the newly appointed Minister for Industries Rabindra Raj Joshi announced that the government owned industries that have been shut for several . . . Read more »


Stalled FDI in Hydro

Stalled FDI in Hydro

What will a rational homo Economicus do when spotting a Rs 1000 note lying on the pavement? He will not pick it up! Because, he thinks, that note is a fake. Had it been a real note, somebody else who . . . Read more »


Business under Maoist-Congress

Business under Maoist-Congress

Nepal is getting the second government under the new Constitution. What difference will it make for the business and economy? A lot or not at all? It is tricky to answer the question. Because there . . . Read more »


Brexit Blues in Nepal

Brexit Blues in Nepal

July 2016   
Nepal too is likely to feel the effects of the UK’s decision to get out of the European Union, known as Brexit. But what kinds of effects exactly? Though a lot is being debated, we simply do not . . . Read more »


Let the Dreams Come True

Let the Dreams Come True

June 2016   
Prime Minister KP Oli is criticised and even ridiculed for the myriad dreams he has been spreading about the country’s future. However, some have appreciated it because the leader has to stir . . . Read more »


Legal Hurdles to Investment

Legal Hurdles to Investment

May 2016   
This year is going to be different in Nepal’s government budgeting. The Finance Minister will hopefully present the budget to the parliament on May 28 as stipulated in the new Constitution, instead . . . Read more »


Chinese Connection

Chinese Connection

April 2016   
The recently concluded China visit of Prime Minister KP Oli received a lot of publicity both within Nepal and in India. The Nepali people were told that the visit was a resounding success. Some say . . . Read more »


Too Many Holidays

March 2016   
Since this is the year of implementation of the new constitution promulgated in September last year, a new beginning should also start by revising the list of public holidays. . . . Read more »


Risk of Systemic Failure

Risk of Systemic Failure

The Nepali economy has now entered the danger zone where the risk is not just limited to the financial system. The entire economic system including the underlying assumptions held sacrosanct as . . . Read more »


TeliaSonera’s Exit

TeliaSonera’s Exit

TeliaSonera’s December deal to sell its shares in Ncell to Malaysia’s Axiata cannot be viewed in Nepal simply as a business decision by two companies. Some indications of the gravity of the . . . Read more »


In The Slump

In The Slump

The Nepali economy is already in an economic slump and it may take more than a year to get out of it. There’s no need to explain that, even if the ongoing blockade along the Nepal-India border . . . Read more »


Opportunity to Deregulate Energy Market

Opportunity to Deregulate Energy Market

Whether the prolonged Indian economic blockade against Nepal continues even beyond the Bihar elections and Nepal’s Tihar and Chhath festivals is still uncertain. However, this has given Nepal a . . . Read more »


Welcoming the New Constitution

Welcoming the New Constitution

Nepal has finally got the much awaited New Constitution. And the business community has wholeheartedly welcomed it, as did a vast majority of the Nepali people. Though most of the region known as . . . Read more »


Economics of Funding Political Parties

Economics of Funding Political Parties

The Nepali private sector has missed a very important issue in the list of suggestions they presented recently to the political leadership to incorporate in the new constitution. This missed point is . . . Read more »


100% Doubt on 6% Growth

100% Doubt on 6% Growth

As a famous proverb goes, if wishes were horses, then beggars would ride. . . . Read more »


Clear this Confusion

June 2015   
Nepal as a whole is trying to get back (on track) after getting knocked over by the massive 7.6 M Gorkha Earthquake and its subsequent aftershocks. Though the aftershocks are still continuing and causing problems, a more serious problem is that a lot of confusion still needs to be cleared up. . . . Read more »


Allow Private Sector to Spend Development Budget

May 2015   
The spending capacity of the Government of Nepal is quite poor, to say the least. The government has been routinely allocating capital expenditure, also known as the development budget, every year. But it has routinely failed to spend the money. In the first nine months of the current fiscal year, the government has been able to spend only about 26 percent of the development budget. . . . Read more »


NRB Gets the New Governor

April 2015   
Dr Chiranjibi Nepal, the new Governor of Nepal’s central bank, Nepal Rastra Bank (NRB), for next five years, has the twin responsibilities of clearing the mess created by his predecessor Dr Yubaraj Khatiwada and leading Nepal's financial sector to take it at par with its global . . . Read more »


Congested Cash Traffic

March 2015   
A recent investigative report named 'Swiss Leaks' by a group of international journalists also revealed the names of some Nepali nationals as having supposedly secretive bank accounts in HSBC-Switzerland. Some USD 45 million seems to be routed through some weird location called Virgin Islands, a tax haven and offshore financial hub though quite far away from Nepal. . . . Read more »


A Welcome Initiative in Tourism

The Government of Nepal's recent announcement of a ten-year roadmap for tourism development is indeed a welcome endeavour. The National Tourism Strategic Plan 2015-2024 sets ambitious target of investing some sixty billion rupees from tax-payers money during this period to develop . . . Read more »


Having Trust on Anti-trust

One, supposedly highly learned, member of parliament in a recent public discussion declared, 'The menace of cartels and syndicates in the Nepali market are the result of adopting the free-market economy and giving everything to private ownership.' This sweeping remark exposes the superficiality . . . Read more »


A Matter of De-Materializing It

Nepal's share market index, Nepse is performing reasonably well since the formation of Nepali Congress led government. It is now hovering between 850 and 900 for sometimes now. Among many welcome developments, the plan to dematerialize (demat) the physical share . . . Read more »


Commendable Contract

Nepal has been successful in initiating important economic reforms, ahead at least of her South Asian peers. The process of economic liberalization began in 1984, eight years before India began its first generation of reforms. The financial sector reform too was undertaken . . . Read more »


Auto Dream

Refusing to the demand of the automobile importers to reduce import duties on vehicles, Finance Minister Dr. Ram SharanMahathas promised them government support if they start vehicle manufacturing in the country. Given the increasing demand due to expansion in the road network . . . Read more »