Economic Development of Nepal
18 views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Scooped by Emma Tsai
Scoop.it!

Promoters of 5 projects want PPA in US dollar

Promoters of 5 projects want PPA in US dollar | Economic Development of Nepal | Scoop.it
Promoters of five projects, that have submitted proposals to sell electricity to the Nepal Electricity Authority (NEA) only during the dry season, have demanded that the Power Purchase Agreement (PPA) be signed in US dollar.
Emma Tsai's insight:

Several promoters of projects that are planning to sell electricity to the Nepal Electricity Authority have demanded for the Power Purchase Agreement to be signed in US dollars. They believe domestic investment is not large enough to carry out these projects and that as long as foreign investment is needed, the US dollar is needed. The NEA has refused because the bid documents did not mention the US dollar, as well as other controversy of the  PPA.

 

This high demand for US dollars demonstrates the  people's distrust and instability of the Nepalese currency. This is bad news because an unstable currency will deter foreign investors and depreciate the Nepalese rupee.

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

World Bank's Nepal Economic Update launched - Himalayan Times

World Bank's Nepal Economic Update launched Himalayan Times "Additionally, in this fiscal year, public debt is expected to fall below the 30% of GDP mark and Nepal's Debt Sustainability rating may move from moderate to low risk of debt distress,"...
Emma Tsai's insight:

The recent  Nepal Economic Update included information about current excess liquidity in the banking sector and a surplus in the current account as a result of remittance, and higher expected GDP growth.

 

These look like good news for Nepal's economy with higher growth levels and surplus in the current account.

 

 

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Nepal's performance in foreign aid utilisation still below par - Himalayan Times

Nepal's performance in foreign aid utilisation still below par Himalayan Times However, to further broaden the scope of the study, NPPR meeting held last year added four more areas — local governance, roads and transport management, agriculture and...
Emma Tsai's insight:

Nepal's utilization of foreign aid is still measuring below ideal levels as a result of failure to effectively implement certain projects and inefficiency or difficulty in establishing budgets and contracts. Development partners and donor agencies pledge to funnel millions of dollars each year, but Nepal is unable to effectively absorb them. 

 

While Nepal remains at an unsatisfactory level of foreign aid utilization, their economy will not benefit as much as they could from the aid that they are receiving. If they can figure out a way to streamline processes and absorb foreign aid more efficiently, it will greatly help their development.

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Lords Hotels and Resorts enters Nepal

Lords Hotels and Resorts enters Nepal | Economic Development of Nepal | Scoop.it
Lords Hotels and Resorts enters Nepal Breaking News from Nepal, MYREPUBLICA.com - News in Nepal: Fast, Full & Factual News from Nepal
Emma Tsai's insight:
An Indian hotel and resort company has stated it's Rs 200 million investment in a Nepalese hotel. It's goal is to stimulate Nepal's company through both domestic and foreign tourism. The company is more comfortable with this investment because of Nepal's recent improvement in political stability. As Nepal figures out its political problems, it will attract more businesses and foreign investors like the hotel mentioned in this article. This is good news for Nepal's economy.
more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Nepal ranks least open to int'l trade in South Asia - Himalayan Times

Nepal ranks least open to int'l trade in South Asia Himalayan Times KATHMANDU: Nepal is least open to international trade in South Asia, as it does not have adequate policies, infrastructure and services to facilitate free flow of goods into the...
Emma Tsai's insight:
The World Economic Forum recently released a report ranking Nepal 116th out of 138 economies on the Enabling Trade Index with a score of 3.3. This makes Nepal the least open to international trade in South Asia. This is a result of inefficient border processes, high import and export costs, high tariffs, corruption, and inadequate worker skills and production. However, tariffs on Nepali goods abroad are extremely low and Nepal ranked third in the Foreign Market Access sub-index. Nepal needs to improve property rights, crime rate, and access to loans among others to improve its potential to become more open to trade. Focusing on domestic problems such as worker skills, technology, and crime is crucial to becoming more prominent in international trade, as well as easing the ability to import and export goods. Right now, Nepal is severely hindering its own economic potential in the international trade market. If tariffs were lowered and the process for importing and exporting goods was more efficient and not so costly, Nepal would be able to trade fluently.
more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Govt unlikely to meet tax revenue target

Govt unlikely to meet tax revenue target | Economic Development of Nepal | Scoop.it
Govt unlikely to meet tax revenue target Breaking News from Nepal, MYREPUBLICA.com - News in Nepal: Fast, Full & Factual News from Nepal
Emma Tsai's insight:

The Nepali government has not had the amount of turnout for its voluntary tax participation scheme it wanted, even though it has offered discounts. It has set a target tax revenue growth rate of about twenty percent.

 

Nepal is looking for more tax revenue, which will decrease the real income of its population and potentially hurt them.

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

The subtle wounds of Nepal’s remittance boom

The subtle wounds of Nepal’s remittance boom | Economic Development of Nepal | Scoop.it
Remittances have been responsible for poverty reduction, increase in foreign exchange reserves, and dependency.
Emma Tsai's insight:

In recent years, millions of Nepalis have been finding high-paying, although harsh work abroad. This has significantly improved the welfare of those benefitting from the remittances. However, this increased foreign dependency could potentially hurt Nepal in the future. Nepali leaders hope that having so many migrant workers will lead to a more informed and innovative population that will encourage new economic ideas.

 

Hopefully this will lead to growth in Nepal's investment creativity and GDP. However, there could come a turning point where Nepal's dependency on migrant labor could backfire and severely damage Nepal's production rates.

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Everest avalanche: How a Sherpa strike will affect Nepal's tourist industry - CBC.ca

Everest avalanche: How a Sherpa strike will affect Nepal's tourist industry - CBC.ca | Economic Development of Nepal | Scoop.it
NPR (blog) Everest avalanche: How a Sherpa strike will affect Nepal's tourist industry CBC.ca A walkout by Sherpa mountain climbers following the tragic deaths of 16 guides on Mount Everest will certainly have an impact on the Nepalese economy.
Emma Tsai's insight:
After several Sherpas were killed in an avalanche in the Mt. Everest area, many of their coworkers walked out with complaints about their pay, and obvious safety concerns. This is expected to affect Nepal's tourism industry as a lot of revenue is gathered from the Everest climbing fees and surrounding businesses. This will damage Nepal's tourism to the Himalayas and may have severe long term implications for the income generated in that area.
more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Commercial Farming Successes Break Poverty Cycle in Nepal | FrontLines March/April 2014 | U.S. Agency for International Development

Commercial Farming Successes Break Poverty Cycle in Nepal | FrontLines March/April 2014 | U.S. Agency for International Development | Economic Development of Nepal | Scoop.it
Training in best practices and access to credit bring higher incomes to marginalized and disadvantaged groups.
Emma Tsai's insight:

U.S. programs, Education for Income Generation and Nepal Economic Agriculture and Trade project over the past seven years have aided Nepalese subsistence farmers by educating and providing infrastructure, effectively doubling thousands of incomes.

Foreign aid programs, such as the ones mentioned in this article, provide opportunities for the impoverished population to dig their way out, which will increase production and consumption and help to stimulate the economy.

more...
No comment yet.
Scooped by Emma Tsai
Scoop.it!

Switzerland to aid Rs 2.45b to Nepal

Switzerland to aid Rs 2.45b to Nepal | Economic Development of Nepal | Scoop.it
Switzerland to aid Rs 2.45b to Nepal Breaking News from Nepal, MYREPUBLICA.com - News in Nepal: Fast, Full & Factual News from Nepal
Emma Tsai's insight:
Switzerland has agreed to give Nepal Rs 2.45 billion (about 25.5 million USD) for the Local Roads Improvement Program and Home Garden Projects. The Local Roads Improvement Program plans to improve the standard of living and promote economic growth by maintaining, repairing, and constructing new roads starting in August 2014 and continuing until July of 2018. Foreign aid, such as in this case, will help promote Nepal's economic growth. Focus on roads should be a huge benefit because increased ability for transportation is a key ingredient when trying to increase production and output.
more...
No comment yet.