This Is How To Get Rid Of The Corona Effect On Nepal's Economy.
This Is How To Get Rid Of The Corona Effect On Nepal's Economy.
Rabindra Dhungel
In Nepal, the impact of Covid 19 (Corona virus) has already reached the economy rather than public health. Even though the corona has not yet become an epidemic in Nepal, the pressure on the economy is sure to increase in the coming days due to the measures taken to prevent a possible epidemic. In the case of the Corona epidemic, the primary concern is public health, and the government needs to focus on minimizing the potential impact on health. But at the same time, it is also time to understand the impact on the economy and prepare to reduce the damage, as the impact on the economic side of livelihoods is deepening.
Since it has a negative impact on the daily life of the common man from the components of the macro-economy, it is necessary to take similar steps.
Although it is difficult to quantify the extent of the impact of the Corona on national and international developments, it is certain that the high economic growth that Nepal has achieved over the past three years will not happen this year. The reason for this is the disruption in business. Economic growth is the monetary value of total transactions within a country.
The hotel and tourism business, which had slowed down after the 2072 BS earthquake, was booming. With the arrival of millions of domestic and foreign tourists in 2019, the enthusiasm of many tourism entrepreneurs has increased.
After the government declared 2020 as the year of visiting Nepal, the target was to attract 250,000 tourists to Bandipur as well. The government canceled the programme due to the global outbreak of the corona virus. And, even the dream of a Bandipur tourism entrepreneur came to end.
According to the Tourism Development Committee, Bandipur's tourism has been affected due to the corona virus. It has been difficult to sustain the hotel business especially due to the lack of tourist activity for a long time. "Hoteliers have cut all staff."
The hotel restaurant in Bandipur was locked in a six-month long lockdown. One Hotelier said that he was not satisfied with the arrival of guests at the hotel, which has been open since September.
Lately, domestic tourists have started visiting Bandipur sporadically. To attract more tourists, hoteliers in Bandipur have brought discount packages. Bipin Pradhan, president of the Regional Hotel Association Bandipur, said that the hotels operating in Bandipur are offering 10 to 15 percent discount to attract more tourists during Dashain Tihar.
According to him, guests coming to 77 hotels affiliated to the association will get the discount. ‘Hotel restaurants have been opened following safety measures. We have run a campaign of safe welcome and legislation for the tourists. Tourists have not reached Bandipur satisfactorily. We have brought a discount package to attract domestic tourists during the holidays, ”said Pradhan. He is confident that the discount package will attract domestic tourists who have been under house arrest for a long time for fear of corona infection.
In the past years, there was a lot of internal and external tourists visiting Bandipur during Dashain and Tihar holidays. At this time, there was a trend of closing offices and educational institutions for a long time, returning home to celebrate Nepali festivals abroad and going out with family on the pretext of refreshing. Corona broke the moving trend this time.
Some popular destinations in Gandaki, which is full of tourism potential, have just been opened . The PCR report is said to be mandatory for tourists visiting open destinations. The overall tourism of Bandipur, which is open to tourists without any hindrance, is sluggish. It is time for tourists to come to Bandipur. Due to the Corona influence, the famous Bandipur Bazar, the hill of Thanimai, Tudikhel and the surrounding tourist destinations look deserted.Thus, the hotel business is increasing with various discount programs.
Due to the need to maintain physical distance in the operation of industries in Nepal and the high risk of corona, Nepal's industries and trades were closed for 3 to 4 months. Due to which, the main sectors of the economy as well as other medium sectors were also affected. As a result, production has declined and the economy has declined. Many people who work in an office or are self-employed have lost their jobs. Some of the people who run their businesses by providing employment have to become unemployed themselves after their business has come to a standstill.
The epidemic has directly affected people's livelihood. Due to which the goods produced in the market have not been consumed. That will have a direct impact on production. There has been a sharp decline in agriculture and agricultural activities. Government revenue has also declined significantly due to the impact on various sectors. All sectors related to the country's economy have been greatly affected. To facilitate and resolve this situation, the Government of Nepal and Nepal Rastra Bank have also announced some policy and some financial assistance. The condition of the Government of Nepal's reserves is not like other countries. The state spends every year by raising money from revenue and other sources. As there is no expected capital expenditure, only some money is saved.
The second thing is to distribute this small amount according to priority. Assessing the impact of the corona virus on every sector, the Nepal Rastra Bank (NRB) had reduced the bank rate by 1 percentage point. Accordingly, the banks announced a reduction in interest rates on ordinary savings, term deposits and call deposits by 1.5 percentage points, after which the NRB issued a directive to reduce interest rates by 2 percentage points. About 10 commercial banks have gone into loss in the fourth quarter after implementing the NRB directive.
Now the country's economy is growing slowly. It is starting to come out of the awkward situation. The construction of infrastructure for projects such as agriculture, irrigation and nearing completion of electricity and drinking water, which will help in a self-reliant economy, seems to have gained momentum. Small and retail schemes that do not yield much return should be discouraged.
Rabindra Dhungel
In Nepal, the impact of Covid 19 (Corona virus) has already reached the economy rather than public health. Even though the corona has not yet become an epidemic in Nepal, the pressure on the economy is sure to increase in the coming days due to the measures taken to prevent a possible epidemic. In the case of the Corona epidemic, the primary concern is public health, and the government needs to focus on minimizing the potential impact on health. But at the same time, it is also time to understand the impact on the economy and prepare to reduce the damage, as the impact on the economic side of livelihoods is deepening.
Since it has a negative impact on the daily life of the common man from the components of the macro-economy, it is necessary to take similar steps.
Although it is difficult to quantify the extent of the impact of the Corona on national and international developments, it is certain that the high economic growth that Nepal has achieved over the past three years will not happen this year. The reason for this is the disruption in business. Economic growth is the monetary value of total transactions within a country.
The hotel and tourism business, which had slowed down after the 2072 BS earthquake, was booming. With the arrival of millions of domestic and foreign tourists in 2019, the enthusiasm of many tourism entrepreneurs has increased.
After the government declared 2020 as the year of visiting Nepal, the target was to attract 250,000 tourists to Bandipur as well. The government canceled the programme due to the global outbreak of the corona virus. And, even the dream of a Bandipur tourism entrepreneur came to end.
According to the Tourism Development Committee, Bandipur's tourism has been affected due to the corona virus. It has been difficult to sustain the hotel business especially due to the lack of tourist activity for a long time. "Hoteliers have cut all staff."
The hotel restaurant in Bandipur was locked in a six-month long lockdown. One Hotelier said that he was not satisfied with the arrival of guests at the hotel, which has been open since September.
Lately, domestic tourists have started visiting Bandipur sporadically. To attract more tourists, hoteliers in Bandipur have brought discount packages. Bipin Pradhan, president of the Regional Hotel Association Bandipur, said that the hotels operating in Bandipur are offering 10 to 15 percent discount to attract more tourists during Dashain Tihar.
According to him, guests coming to 77 hotels affiliated to the association will get the discount. ‘Hotel restaurants have been opened following safety measures. We have run a campaign of safe welcome and legislation for the tourists. Tourists have not reached Bandipur satisfactorily. We have brought a discount package to attract domestic tourists during the holidays, ”said Pradhan. He is confident that the discount package will attract domestic tourists who have been under house arrest for a long time for fear of corona infection.
In the past years, there was a lot of internal and external tourists visiting Bandipur during Dashain and Tihar holidays. At this time, there was a trend of closing offices and educational institutions for a long time, returning home to celebrate Nepali festivals abroad and going out with family on the pretext of refreshing. Corona broke the moving trend this time.
Some popular destinations in Gandaki, which is full of tourism potential, have just been opened . The PCR report is said to be mandatory for tourists visiting open destinations. The overall tourism of Bandipur, which is open to tourists without any hindrance, is sluggish. It is time for tourists to come to Bandipur. Due to the Corona influence, the famous Bandipur Bazar, the hill of Thanimai, Tudikhel and the surrounding tourist destinations look deserted.Thus, the hotel business is increasing with various discount programs.
Due to the need to maintain physical distance in the operation of industries in Nepal and the high risk of corona, Nepal's industries and trades were closed for 3 to 4 months. Due to which, the main sectors of the economy as well as other medium sectors were also affected. As a result, production has declined and the economy has declined. Many people who work in an office or are self-employed have lost their jobs. Some of the people who run their businesses by providing employment have to become unemployed themselves after their business has come to a standstill.
The epidemic has directly affected people's livelihood. Due to which the goods produced in the market have not been consumed. That will have a direct impact on production. There has been a sharp decline in agriculture and agricultural activities. Government revenue has also declined significantly due to the impact on various sectors. All sectors related to the country's economy have been greatly affected. To facilitate and resolve this situation, the Government of Nepal and Nepal Rastra Bank have also announced some policy and some financial assistance. The condition of the Government of Nepal's reserves is not like other countries. The state spends every year by raising money from revenue and other sources. As there is no expected capital expenditure, only some money is saved.
The second thing is to distribute this small amount according to priority. Assessing the impact of the corona virus on every sector, the Nepal Rastra Bank (NRB) had reduced the bank rate by 1 percentage point. Accordingly, the banks announced a reduction in interest rates on ordinary savings, term deposits and call deposits by 1.5 percentage points, after which the NRB issued a directive to reduce interest rates by 2 percentage points. About 10 commercial banks have gone into loss in the fourth quarter after implementing the NRB directive.
Now the country's economy is growing slowly. It is starting to come out of the awkward situation. The construction of infrastructure for projects such as agriculture, irrigation and nearing completion of electricity and drinking water, which will help in a self-reliant economy, seems to have gained momentum. Small and retail schemes that do not yield much return should be discouraged.
