Views Collection

While the rest of the developed countries are facing credit crisis, Nepal remained untouched for quite sometimes. The international recession had nothing to do with the local share markets and thus the nepali economy was referred to as an insulated economy. The banks are doing fine, the gold market is upto date with the international market but the economy has been terribly hit by load shedding.

Nepali labours are among the cheapest labours and most of the nepali people are engaged in jobs overseas. With the down fall of the finance in such job providing nations, the internal remittances have also been hit hard. Of the total revenue collection, foreign employment contributes seventeen percent of the whole and this has caused some trouble with the local economy.

Leaving the remittance, load shedding has been the main factor which is pushing the economy to the lowest. Sixteen hours of load shedding a day had caused a severe pain in industries and the likes. The lack of consistent power supply has caused many industrial operations to a complete halt which means no productions at all. If there’s no production, how can the industries possibly sustain? How and what could an industry produce in a limited time of eight hours?

The government has failed to deal with this terrible disaster and thus the economy is in a shaky state. If the load shedding continues, it is for sure than a number of industries would be forced to shut and hundreds and thousands of jobs would be lost. The government then would have to deal with the unemployment problem as many people working abroad have been sent back home due to their own economic crisis.

The only option here with the government is to purchase electricity from the neighboring countries for the time being and help run the industries smoothly. Apart from purchasing electricity, there’s no any options left if not to let the economy tumble.

Nepali economy is insulated, it may be true but with the current circumstances, the economic turmoil seen in the developed nations coincides with the local economic turmoil. If not seen a direct relation of the local economy with the international economy, the turmoil has affected the nepali economy proportionately.