The coronavirus pandemic continues to spread across the world, with more than 5.7 million COVID-19 cases in 188 countries. Almost 352,604 people have lost their lives to the contagion.

COVID-19 Situation in Nepal

Even though Nepal is witnessing new coronavirus cases daily for the last two weeks, the country’s count is almost negligible compared to other countries.

Nepal stands at 119th position in the list of 188 countries based on the reported coronavirus cases.

However, the economic implications of the coronavirus pandemic in Nepal are extremely severe.

According to the Economic Survey 2076/77 presented by Finance Minister Dr. Yubaraj Khatiwada at the Federal Parliament on May 26, the economic growth rate is drastically impeded by the coronavirus pandemic.

The country’s economic growth rate is poised to remain at 2.3% against the government’s estimate of 8.5% for this FY.

Source: NepalinData

Moreover, the economic growth rate remained at 7.3% on average in the past three years.

Other Economic Statistics Include

• Per capita GDP to increase by 7.5% to reach USD 1,085 from previous FY
• Consumer inflation rate stands at 6.5% as of mid-March this year against 4.3% in last FY
• Investment to decrease by 3.4% to reach NPR 1.889 trillion against the last FY
• Expenditure increased by 12.9% to reach NPR 610 billion as of mid-March this year
• Revenue collection stands at NPR 546 billion as of mid-March

Province Wise GDP of Nepal 2020

Source: NepalinData

Moreover, the Nepali Government has recorded around NPR 92 billion debt this FY, taking the country’s total debt to NPR 1.139 trillion.

Of the total debt, the internal debt is at NPR 440.05 billion, while the external debt is at NPR 699.75 billion.

Growth Rates of Real GDP of SAARC Countries 2020-21

Source: NepalinData

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The Nepal Dairy Association (NDA) disclosed these statistics at the 20^th National General Assembly held in Birendranagar.

According to NDA, Nepal’s dairy companies pay NPR one billion per year as revenue to the government. Moreover, rural areas supply milk worth NPR 30 million to urban dairy centres on a day-to-day basis.

Following are the statistics of Nepal’s dairy contribution:

• Currently, Nepal produces five million litres of milk per day wherein farmers alone consume around 50 percent of the produce
• According to NDA General Secretary Prahlad Dahal, 500,000 farmer families are associated with the dairy industry and over 30,000 are directly involved in milk production

Most people associated with the business expressed their concern stating that despite the industry valuable contribution to the GDP, the dairy business is yet to get the deserved recognition from the state.

Dahal also added that the government’s decision to withdraw 50 percent value added tax exemption facility has made it difficult for dairies to compete with imported products.

Meanwhile, Karnali Province’s dairy business seems to be performing low. The province is contributing to only 50 percent of the market demand.

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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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UN’s International Fund for Agricultural Development (IFAD) report titled, ‘Sending Money Home: Contributing to the SDGs, One Family at a Time’ noted that remittances accounted for 32 percent of Nepal’s GDP during the period. The figure has nearly doubled from the 2007 level, where it was 17 percent.

Reliance on remittances, as measured by percentage of GDP, is highest in Nepal (32 percent), followed by Tajikistan (29 percent) and the Kyrgyz Republic (26 percent),” said the report.

According to the report, Nepal saw an overall remittance growth rate of 262.0 percent receiving a total sum of USD 6,276 million in remittances in the 10-year period.

Referring to preferred destinations, the report noted India as the most preferred destination for Nepali migrants.

Developing Nations Received the Most

According to the report, the amount of money migrants send to their families in developing countries has increased by 51 percent over the past decade, far greater than the 28 percent rise in migration from these countries.

While the report highlighted increase in sending patterns to almost all regions of the world, the sharp rise over the past decade is majorly because of Asia, which has witnessed an 87 percent increase in remittances.

“More than 200 million migrant workers are now supporting an estimated 800 million family members globally. It is projected that in 2017, one-in-seven people in the world will be involved in either sending or receiving more than USD 450 billion in remittances,” said the report.

According to UN, the migrant flows and increase in remittances sent by migrants to their homes will largely impact the global economic and political landscape.

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