Nepal | November 27, 2020

Govt urged to declare ‘economic emergency’

Share Now:

Kathmandu, March 15

With the global spread of coronavirus expected to severely hit Nepal’s economy, the country’s private sector today urged the government to declare ‘economic emergency’ and take necessary measures to cope with the situation.

During a meeting with Finance Minister Yubaraj Khatiwada, private sector representatives said that the country’s tourism and manufacturing sectors had already been hit badly by the coronavirus, while revenue and remittance sectors were also expected to be adversely affected. They urged the government to take immediate measures to minimise the impact on the country’s economy.

“The level of impact that the coronavirus is going to leave on global and Nepal’s economy is anybody’s guess. In such a context, the government should declare state of economic emergency and introduce measures and packages to support businesses and the economy,” said Shekhar Golchha, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry.

According to Golchha, the fear of coronavirus outbreak in Nepal has already affected the market sentiment and the demand for non-essential goods has come down sharply. “Should the situation in India deteriorate, the Indian government could even announce a lockdown. If that happens, the supply of goods will be directly affected,” he said, adding that the government should coordinate with the Indian government and raise the supply of both essential and non-essential goods in the domestic market.

Golchha stressed the need to immediately announce packages to support entrepreneurs working in hotels, cinema theatres, restaurants and aviation.

Rajendra Malla, vice-president of Nepal Chamber of Commerce, said the government should announce interest subsidy and tax clearance flexibility in sectors that were badly affected by the coronavirus. “The tourism sector is facing cash shortage. Entrepreneurs are finding it difficult to pay staffers. The government should immediately announce relief packages for sectors affected by the virus, including the tourism sector,” said Malla.

Satish Kumar More, president of the Confederation of Nepalese Industries, added that the government should give relief to industrialists by bringing down interest rates on loan.

Meanwhile, Khatiwada said the government was studying the impact of the coronavirus on industrial and other sectors. “Effective measures will be taken to support businesses in this crucial phase after holding consultations with other government agencies,”

A version of this article appears in print on March 16, 2020 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

KP Sharma Oli, Harsh Vardhan Shringla

Indian foreign secy stresses on close ties between India, Nepal

KATHMANDU, NOVEMBER 26 India’s Foreign Secretary Harsh Vardhan Shringla, who arrived here today on a two-day visit, held a bilateral meeting with his Nepali counterpart Bharat Raj Paudyal. They reviewed several aspects of Nepal-India relations covering trade, transit, connectivity, infrastru Read More...

Ministry of Home Affairs

Banking channel mandatory for distribution of social security allowance

KATHMANDU, NOVEMBER 26 The Government of Nepal has made it mandatory for all 753 local levels to distribute social security allowance to beneficiaries through banking channel. A notice recently published by the Ministry of Home Affairs in the Nepal Gazette said the provision was stipulated in Read More...

UN condemns girl’s rape, murder

KATHMANDU, NOVEMBER 26 The UN in Nepal has strongly condemned the rape and killing of a six-year-old girl in Bardibas which was reported in the media. “We urge the relevant authorities to urgently follow due process and ensure that the perpetrator is held accountable,” read a press stateme Read More...

Subway construction in Kalanki

Council of trade unions slams employers

KATHMANDU, NOVEMBER 26 The Council affiliated to the International Trade Union Federation has called for including workers of the informal and self-employed sectors in the social security scheme. In a joint statement, the three large trade unions of the country – General Federation of Trade Read More...

‘Nepal will graduate to developing country soon

KATHMANDU, NOVEMBER 26 Prime Minister KP Sharma Oli stressed the need to advance the social security scheme with coordination, collaboration and cooperation among the three tiers of government. Addressing a programme organised by the Social Security Fund on the occasion of the Third Social Sec Read More...

Private sector’s role in reviving tourism stressed

KATHMANDU, NOVEMBER 26 The private sector needs to unite and work together for rehabilitation and revival of the tourism sector that has been hard-hit by COVID-19 pandemic. Speakers at an interaction organised by Nepal Tourism Board to promote tourism highlighted this. They further stressed th Read More...

Cultural sites to be rebuilt in two years

KATHMANDU, NOVEMBER 26 Minister of Culture, Tourism and Civil Aviation Yogesh Kumar Bhattarai claimed all the earthquake-damaged cultural and religious heritages would be reconstructed within two years. Inaugurating the construction of Narayan Chatubyuha temple’s entrance gate on the premise Read More...

Nepse at new high, but analysts advise caution

KATHMANDU, NOVEMBER 26 The Nepal Stock Exchange created a fresh record today, as the benchmark index advanced by 18.43 points to rest at an all-time high of 1,893.24 points. Prior to this, the all-time record of Nepse was 1,881.45 in 2018. While the Nepse index had surged as high as 1,926.92 poin Read More...