Economy of Nepal after Earthquake

Earthquake Nepal Economy

Inside the arena of economics, Nepal has always thrown the towel – has always been a vulnerable contender. As a consequence of last year’s flood and landslide, Nepal faced one of the biggest but negative changes in the monetary system; high unemployment rates and record breaking low production. There is no doubt that in Nepal, expenses weigh greater than income.

Now Nepal is struggling to cope with the worst earthquake in 80 years. The magnitude 7.9 earthquake struck some 80km northwest of the capital Kathmandu and has affected eight million people, just under one-third of the population with upwards of 6,000 people killed.

The economic losses could be as much as $10bn, according to an estimate from US Geological Survey. The cost of rebuilding is $5bn, according to IHS. In a same country with economic growth that was already expected to fluctuate downward, with an unemployment rate of more than 40 percent, and a reliance on agriculture, tourism and remittances to support its $19bn economy.

However, there seems to be tons of helping hands to pull Nepal out of this puddle of crisis but due to instability among politicians, pace in development seems rather a hard row to hoe. It has already been nine years that any bullet came out of from civil war, but one quarter of development is still a high dream for Nepal. Even though there are many desperate hands to help Nepal, politicians are busy proving their agendas were right since, but no one has dared to sketch a proper economic map of Nepal.

In 2008 when Sichuan – China moved from the devastating earthquake, they proved against odds bringing their economy back to normal, even better than before. Setting an example in the world of economy has, however, become trend in China but not all country follows the same formula. For an instance, Haiti after spending worth USD 35 million not only came under unsatisfactory result but also brought big tension in political scenario.

One of the big fishes of Nepalese economy – Tourism Industry saw mammoth loss in this earthquake. Four out of seven world heritage sites have crushed into sand. Tourism provides 7 percent of Nepal’s jobs and accounts for 8 percent of the economy but now it’s unclear when the travelers will return. Tourists who were here during devastation have returned, and who were about to visit cancelled their all itineraries for Nepal.

Another promising – newly constructed – pillar of Nepalese economy – Share Market sees its future dark and unclear. All apartments are financed by bank and financial institution. Most of apartments are cracked and people living in apartment may hesitate to pay their remaining installment to the owner. Owner of apartment will hardly get fund to repay installment to the bank. So, Bank needs to make provision against it and it reduces profit of bank. It ultimately reduces the share price of banking scripts

Nepal has never seen such a delicate crisis in long years. Now so called political hulks or simply politicians must come under mutual understanding for the sake of the country. In such times, political parties should not be nemesis to each other but must be pillar for this country. Nepal already look like “No Man’s Land” as numerous foreign aid are entering, perhaps all don’t have the saint intentions. This is the time to unite for the future and fortune of the country. This is the time to hold tight this shaking country, economically, politically and morally and put a pace in the race of development. This is the prefect time to be an example for the world, to show them size wouldn’t matter but enthusiasm.

New Source: ekantipur – translation of opinion of Dr Bishamber Pyakurel

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