Nepal requires Rs 665 billion to revive economy

KATHMANDU: The National Planning Commission (NPC) has projected that the country needs Rs 665 billion to rescue its economy weakened by the pandemic.

The projection comes after an analysis of impact of the pandemic and damage it has caused to the economy in the third quarter of Fiscal Year 2019/20.

It has also brought the relief and recovery strategy on the basis of this analysis. The strategy covers pandemic control and relief, employment, continuity of projects, development of new system, and promotion of self-sufficiency. The strategy has been divided into short-term, medium-term, and long-term section, NPC Vice-Chair Prof Dr Pushpa Raj Kandel said.

The short-term relief and revival would cost as much as Rs 239 billion. Similarly, the medium term will require Rs 285 billion, and Rs 133 billion will be needed for the long-term.

Review of major economic indicators, expenditures and progress of the first four months of the current fiscal year, 2020/21 was done at the 48th meeting of the National Development Problems Resolution Committee under the chairpersonship of the committee's chair and Prime Minister KP Sharma Oli on January 15.

The meeting analysed the impacts of Covid-19 in the country and discussed implementation of decisions of the 45th, 46th and 47th meetings of the committee. It also discussed the budget, expenditure and arrears of line ministries and provincial government, main problems in the implementation of development projects during this period and their resolution.