The National Planning Commission observed that the tourism sector could take two years to welcome tourists as it did before the onset of COVID-19.

From July 2019 to July 2020, 1 million and 197,000 foreigners touristed Nepal. Despite the government announcing the Visit Nepal Year 2020 tourist campaign, the tourism sector didn’t pick up pace due to the tepid tourist response. The campaign was shut down after three months, owing to the pandemic.

With the fiscal year ending next month, the country realized that around 230,000 tourists visited the country. The numbers are unlikely to increase as the second wave has paralyzed most of the world. This happens to be the lowest tourism footfalls recorded in two decades.

The country’s planning division estimated that 500,000 tourists would visit Nepal in the next fiscal year. The numbers will double in the fiscal year of 2022/23, which will be close to the FY 2019/20 level.

The poor performance of tourism has attracted the ire of tourism entrepreneurs. They opined that the government failed to provide a proper strategy on the revival of tourism after the pandemic.

Stay Tuned to NepaliSansar for Latest Nepal News Updates!

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The startups can now avail a loan up to NPR 5 million or 50% of their total capital at a subsidized interest rate of 2%.

The government has announced the program with an aim to promote startups and businesses with innovative knowledge, skills, and capacities.

According to the Working Procedure, a five-member steering committee under the leadership of the National Planning Commission (NPC) will call for proposals from startups who have not been able to mobilize capital to innovate, run or operate their ideas.

The companies, including small and medium-scale enterprises from agriculture, energy, health, tourism, education, and information technology sectors, can submit their proposals.

In their proposals, the applicant should submit details about the innovative idea, associated risks, possible returns, required funds, expected seed capital, and positive impact on the economy, in a prescribed format of the working procedure.

The committee will then assess the proposals within 30 days and select appropriate proposals to offer the subsidy loans. Once the committee approves the proposal, the Finance Ministry will release the fund in three installments.

The first installment will be released to initiate the idea’s implementation, the second installment based on the work progress, and the last installment after the idea is implemented.

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The NPC meeting headed by Prime Minister Oli released the five-year plan for the period FY 2019/20 to FY 2023/24 that includes 18 ambitious projects.

Some of the Projects Include

• Prime Minister Agriculture Modernization Project
• Sunkoshi Marine Diversion Project
• Upper Arun Hydropower Project
• East-West Highway Upgradation
• Digital Nepal

NPC Vice-chairman Pushpa Raj Kandel, Finance Minister Yubaraj Khatiwada and PM’s chief advisor, among others were also present in the meeting.

Here are the main goals of the five-year periodic plan

• Increase per capita income to USD 1,585 against USD 1,047 of previous 5-year plan
• Achieve a minimum average economic growth up to 10.1% per annum
• Reduce poverty rate to 9% from the current 18.70%
• Increase literacy rate to 99% against the current 70%
• Achieve an average growth of 5.6% per annum in the agricultural sector, 17.1% in the industrial sector and 9.9% in the service sector

During this 15^th plan, the Nepali Government aims at securing the status of developing country from least developed country.

The government also aspires to initiate programs and projects to fulfill the dreams of ‘Prosperous Nepal’ and ‘Happy Nepali’.

The concept paper of the 15th five-year plan was endorsed by the National Development Council (NDC) in Aril 2019.

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Labor Day holds a special significance in Nepal, especially when the government is making efforts to retain its labor force.

According to the International Labor Organization, the country contributes nearly 1.4 million laborers to the international job market per year.

Out of the 30 million South Asian workers that leave to the gulf and other foreign destinations, Nepali workers travel to destinations including Bangladesh, China, Myanmar, and Sri Lanka through India for foreign jobs.

In recent years, the flow of Nepali workers has shifted to Africa, Europe, Malaysia, Gulf and USA.

According to Nepal’s Central Bureau of Statistics, some seven million Nepalis are employed, of which two million are daily wage earners.

As per the National Planning Commission (NPC), over 500,000 workers enter Nepali labor market annually to look for jobs and unfortunately, only 150,000 of them find jobs in the internal labor market. The remaining workers are forced to look for jobs abroad.

According to government records, around 600,000 workers leave Nepal for foreign employment every year. Some 4.4 million youths left the country for foreign jobs between FY 2063-64 and FY 2075-76.

Nepali Migrants remittance contribution amounts to 29 percent of Nepal’s Gross Domestic Product (GDP).

The government has been constantly working to improve the situation of workers in Nepal.

Here are some of the major efforts made by the government to ensure that the Nepali workforce receives enough opportunities within the country.

• PM Employment Program – The government launched the PM Employment Program this year with the aim to create job opportunities in Nepal and end youth dependence on foreign jobs. The programs aims to cover unemployed people between the age group of 18-51 years and assign them jobs as per the qualifications and interest areas.
• Amendment of Foreign Employment Act– The Government of Nepal decided to revise the existing Foreign Employment Act of 2007 to remove the practice of collecting service charge and promotional costs from Nepali migrant workers.
• Labor Act and Labor Regulations 2074 BS – In 2074, the government introduced the Labor Act to ensure social security to all, end labor exploitation and respectable remunerations among others. The Ministry for Labor and Social Security worked to create minimum wage to workers, provide facilities of pension and gratuity through the Social Security Fund and unemployment allowance.

Nepal PM Oli on World Labor Day 2019

अन्तर्राष्ट्रिय श्रमिक दिवसका अवसरमा सम्पूर्ण नेपाली दिदीवहिनी एवं दाजुभाइहरुमा हार्दिक शुभकामना व्यक्त गर्दछु । असल श्रम सम्बन्ध विकासका लागि हामीले योगदानमा आधारित सामाजिक सुरक्षा लागू गरेका छौं । स्वदेशमै आत्मसम्मानपूर्ण श्रमको अवसर सिर्जना गर्न सरकार क्रियाशील छ ।

— K P Sharma Oli (@kpsharmaoli) May 1, 2019

Let’s hope that the government is able to fulfill its vision of creating employment opportunities within the country.

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The portal will help strengthen the country’s database system and track the performance of government agencies even at local levels.

PM Oli inaugurated the web portal http://nationaldata.gov.np/ in an event on April 28, 2019. The National Planning Commission and the Nepal Central Bureau of Statistics (CBS) jointly developed the web portal, which according to NPC is a part of the government’s efforts to maintain a comprehensive database for its planning and monitoring activities.

Speaking at the event, CBS Director Suman Aryal said that the government aims to increase the country’s access to its overall statistics under one platform with this move.

“Integrating the data of all the seven provinces and 753 local governments with the central government, increasing access to the national data system and monitoring and evaluation are among the major three aspects of the portal,” said Aryal.

The platform helps users to search data of each local government, separately. According to CBS, users can get access to the portal through two gateways – geographic and thematic.

Aryal said that the bureau had planned to integrate the data of government bodies in the common website by mid-July 2019.

“We have been devising the working guideline and will provide training to officials of all government bodies by mid-May,” said Aryal.

Currently, the government maintains records under 100 different categories and 1,100 sub-indicators. National Planning Commission Secretary Laxman Aryal said that this portal will also assist the government in developing an effective budget transfer mechanism.

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PM Oli inaugurated the meeting that is being hosted by Nepal Planning Commission (NPC).

The meeting that began on April 03, 2019 is expected to pave way for implementation of the 15^th Five-Year Plan prepared by the country’s NPC.

The council discussions are expected to give a final shape to the 15^th five-year plan for the fiscal years: 2019-20 AD to 2023-24 AD.

While the concept paper has incorporated the government’s vision of ‘Prosperous Nepal, Happy Nepal’, the NDC meeting will drive the concept further for Cabinet endorsement.

The meetings will witness discussions on 25-year development concept paper formulated by NPC, with inclusion of relevant policies and strategies that are key to country’s economic prosperity.

The meeting is coming after the government had recently appointed 25 new members to the Council on March 31, 2019.

In the Council of Ministers decision on March 25, 2019, industrialists, NGO representatives and local-level representatives have been appointed to the Council.

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The province has already begun creating its five-year plan to achieve its long-term goal of sustainable development.

Preparing a list of development programs to be executed in the five-year (2019-2024) period is now next on the list.

The province aims to increase its per capita income to USD 2,000 and reduce poverty to 10 percent through planned development among various other ambitious plans.

Chief Minister Shankar Pokharel along with other ministers and the provincial planning commission’s members will visit Province 5 districts to take suggestions for the five-year plan.

As part of the exercise, Pokharel and his team will meet political leaders, representatives and experts in all 12 districts informed Provincial Planning Commission Vice-Chairperson Dr. Prakash Kumar Shreshta.

Shreshta explains that this step is essential to ensure government’s decisions and plans effective implementation.

The provincial government said that the five-year plan’s framework will be planned only after a study of various sectors prospects including agriculture, industry, tourism and others.

Press Advisor to CM Sher Bahadur KC said that the upcoming provincial budget will be allocated for the implementation of the five-year plan.

Presently, CM Pokharel is collecting suggestion from his home district Dang and will receive assistance from Province 5 Physical Infrastructure and Development Minister Bajinath Chaudhary in a few days, time.

Once the suggestions are collected, they will be forwarded to the National Planning Commission (NPC) by mid-April. Post NPC’s approval, the framework will be implemented.

Also Read:

• Pokhara Declared Province 4 Capital

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Nepal Federal Budget 2018-19 drew a mixed response from all sections of the society. While some called it ‘unrealistic’, some called it ‘development-friendly’ for the nation.

Let us look some of the responses to Nepal Federal Budget for the Fiscal Year 2018-19 pre and post release:

KP Sharma Oli, Prime Minister of Nepal, CPN-UML

The Prime Minister is very elated and encouraged at the Federal Budget for FY 2018-19 his government presented in the Nepal Parliament on May 29, 2018. In a response, he said the budget has come as a support to the slogan of ‘Prosperous Nepal, Happy Nepali’.

“The budget has been introduced keeping with practical measures. It would lay the foundation for prosperous Nepal,” he told the press. He said the tax net would be widened to meet the government’s revenue targets.

Sher Bahadur Deuba, Ex-Prime Minister of Nepal, Nepali Congress

Meanwhile, the prime opposition to the ruling Nepali Government and the ex-PM Sher Bahadur Deuba termed the budget as ‘difficult to implement’. He says tax burden would hamper the growth in productivity.

“Time has come for the government with two-thirds majority to walk the talk,” he adds.

Gagan Thapa, Law Maker, Nepali Congress

NC Lawmaker Thapa takes a neutral stand saying the budget has neither gone against the public expectations nor taken any risk.

The politician and lawmaker of the opposition Nepali Congress party Gagan Thapa says the budget has neither gone against the expectations of Nepali public nor took any risk in the process.

Nara Bahadur Thapa, Executive Director, Nepal Rastra Bank (NRB)

“The budget needs to introduce new programs to increase employment opportunities by promoting small and medium industries in particular,” Thapa said speaking at a pre-budget session.

According to him, the central bank opines that the budget would add to the country’s growth trajectory facilitating resource availability on a large scale, curtailing widening trade deficit, addressing concerns of tourism sector, among others.

Shekhar Golchha, Senior Vice-President, Federation of Nepalese Chambers of Commerce & Industry

“Reducing transit costs, developing infrastructure, retaining capable manpower in the country and reviewing the challenges that the country has been facing after joining the World Trade Organization are among other issues, which the government should address through the budget,” Golchha said at a pre-budget session.

Productive sector has been facing threat due to the inefficiency of bank and financial institutions. Hence, the government, through the fiscal budget, and central bank, through monetary policy, must address the problems faced by the industrial sector, he adds.

Govinda Nepal, Former Member, National Planning Commission (NPC)

Govinda wants the government to ensure required financial support and enhanced market access to the country’s agriculture sector, along with a needed boost for the country’s agriculture products to perform well in the international value-chain.

The government to ensure the country’s farming community has timely access to the required agricultural inputs such as fertilisers and seeds, he adds.

Rewat Bahadur Karki, Chairman, Securities Board of Nepal (SEBON)

According to Karki, the government should focus on capital markets to address the growing needs of resources to be invested in the country.

Stating that the government should come up with policies to boost Nepal’s capital markets, Karki said, “As the country has entered a federal system, the initiative could help ease the dearth of capital.”

Gyanendra Prasad Dhungana, President, Nepal Bankers’ Association

Gyanendra Prasad feels that there is a need to address asset-liability mismatch in the country’s financial sector when it comes to long-term funding.

He says, “the problem can be solved to a large extent if the government waives taxes on long-term financing.”

Rameshwore Khanal, Former Finance Secretary

Commenting on the budget, Khanal opined that the Finance Minister might have realized that the distributive and populist programmes similar to that launched by past governments would not add to the country’s prosperity.

Addressing that, the federal budget encouraged investment in the economy considering the factor that low investment’s role as a major constraint for economic growth, he adds.

Let’s hope the new budget will address the existing concerns and add to the nation’s prosperity!

Also Read: 

• Nepal Federal Budget FY 2018-19: Infrastructure Gets Major Push!
• Nepal Federal Budget FY 2019-20: Highlights & Announcements

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Out of the required annual investment of USD 17 billion, public sector is expected to hold a major share of 51 percent leaving 21 percent contribution to the private sector and the remaining share to NGOs, households and cooperatives.

Majority of the public investment is expected to be allocated to poverty alleviation, agriculture, health, climate change, water and sanitation, education, transport infrastructure and governance.

Meanwhile, the private sector investment will be made for industry development, physical infrastructure, housing, urban infrastructure, tourism and energy sectors.

“But, the government’s revenue and private sector investment will not be sufficient to attain SDGs by 2030, requiring huge amount of foreign aid,” noted the report.

SDGs, a follow-up to the Millennium Development Goals (MDGs) that expired in 2015, include a set of 17 goals and 169 targets involving a broad range of development issues such as fighting poverty and hunger, health coverage, gender equality, quality education, and all aspects of inclusive and sustainable development.

SDGs Status As of 2017

NPC’s National Sustainable Development Review Report 2017 reported significant progress in few of the country’s SDGS up to June 2017.

Poverty (SDG 1): The percentage of Nepali citizens below poverty line has declined from 38 percent in 2000 to 21.6 percent in 2015.

Hunger and Nutrition (SDG 2): NPC reported Nepal’s significant progress in reducing hunger, achieving food security and improving nutrition. Proportion of underweight children, prevalence of stunted children, among other relevant indicators have registered a decline over the last 10 years.

Health and Wellbeing (SDG 3): Nepal has also seen a significant progress in addressing health concerns among its populace. The country achieved a gradual progress in controlling infant mortality rate (64/1000 live births in 2000 to 32 in 2016), number of pregnant women going for antenatal checkups by skilled workforce, proportion of births in health facilities, among others.

Gender Equality (SDG 4): Nepal saw a notable development in terms of ensuring gender equality and women empowerment. A significant improvement in gender parity can be observed across the education institutions, among other areas across the country.

Inclusive Industrialization (SDG 5): Infrastructure development has seen a significant traction in Nepal over the past few years, which is evident in country’s road, rail, air, tourism, communication, industry infrastructure facilities.

Means of Implementation (SDG 17): The report noted a concern in the availability of resources to finance the achievement of SDGs. Highlighting the role of adequate finance, technology, institutions, capacity and partnership vital for SDGs, the report also indicated a positive growth in terms of partnerships among private players, cooperatives, civil society, development partners and the international community for achieving sustainable development.

Need of the Hour

Towards addressing the existing concerns and achieve SDGs, NPC suggests the country to have strong governance across federal, provincial and local levels.

The Planning Commission also suggests macroeconomic policy reforms for economic growth and bringing in a balance among the poor and marginalized communities.

Pitching on the need for effective management of resources needed for achieving SDGs, the Commission suggests the government to prioritize interventions based on fiscal, financial, managerial, technological, institutional and other capacity constraints.

NPC also suggests the Government of Nepal to design sectoral plans and long-term strategies in line with SDGs, and also integrate SDGs across all levels of Nepali society.

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Following the Appropriation Act’s recommendation to expedite the budget expenditure, the Ministry of Finance (MoF) has issued a time-bound action plan to all the ministries regarding capital expenditure in 2017-18 fiscal.

“MoF has sent budget implementation guidelines based on provisions of the Appropriation Act for this fiscal for all the concerned projects included in the fiscal budget,” said Finance Minister Gyanendra Bahadur Karki.

Under the action plan, the implementation units should spend 29 percent of their allotted budget in the first quarter, 67 percent by the end of the second quarter, and total budget by the end of the current fiscal year.

All the ministries were urged to disclose their project implementation action plans on their respective websites by August-end.

Everything Under the Set Time frame

The ministries were directed to expedite their project implementation in the light of the government’s plans to conduct general and local body elections in the current fiscal year.

“As the elections can affect implementation of development activities, we have to accelerate the work from the very beginning,” said Shanta Raj Subedi, Finance Secretary.

The planned projects are required to undergo environmental impact assessment and initial environmental examination within the time frames set by the laws to avoid further delays in implementation, noted the Ministry.

All the ministries are required to submit the financial and physical progress of their projects in the first week of every month, which will be followed by a progress review by a Finance Minister-led committee and National Planning Commission.

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