Kathmandu, February 15:

Global recession could eat into remittance that is a life line for the economy as well as sink its teeth into exports, Foreign Direct Investment (FDI), debt servicing and tourism.

A workshop, ‘Global recession and its Impact on Nepali economy,’ organised by Independent Business News (IBN), producer of Earthko Earth TV programme, in associoation with Nepal Rastra Bank, Nabil Bank and Standard Chartered Bank Nepal, was held here today on the recession’s impact on Nepal.

“If the crisis hits home, it will be very difficult for the government to rescue the economy,” said Radhesh Pant, president of Nepal Bankers’ Association and managing director of Bank of Kathmandu.

“It is time for the regulatory authority to increase survillence and monitoring,” he said.

“Our own crisis also needs to be tackled for economic development,” said Anil Shah, CEO of Nabil Bank. “Labour dispute and power crisis issues are more dangerous to our economy than the global crisis,” he said.

“FDI will not come to a country that is plagued by labour disputes,” said Dr Chiranjeevi Nepal, former chairman of Securities Board of Nepal (Sebon). “Tourists also won’t come if regular bandhs are not stopped,” he said.

The experts urged the government to increase capital expenditure so as to create more jobs.