Nepal's Rising Trade Deficit: A Financial Crisis Brewing?
By: Ishan Sigdel for TES news
Kathmandu, September 12, 2023
Nepal's Rising Trade Deficit: A Financial Crisis Brewing?
By: Ishan Sigdel for TES news
Kathmandu, September 12, 2023
Nepal is on the verge of a financial catastrophe that might create significant issues for the overall growth of the country. Financial irregularities began as soon as the government was established. Financial regulation has melted the government.
"The foundation required for the development of the country is its economy. The development done by the government should earn foreign currencies and make the country independent. Nepal, having the exact opposite situation, has imports consuming 40 percent of GDP. The situation has gotten worse and is going to affect the whole country, the delegate to Sita Gurung said.
The delegate of KP Oli looked confused by the points that the delegate of Sita Gurung made and immediately asked a question.
"If the situation is getting worse, what can the nation do to decrease the crisis? Does the delegate have any ideas?" the delegate of KP Oli said.
Many hands were raised to add to a question or reply to it, but the right to reply was given to the delegate of Sita Gurung, who replied with ease.
"The nation should first promote small individual enterprises and businesses that play a small but important role in the country's economy and independence. Next, the resources in our country, like water, should be utilized to produce hydropower, said the delegate of Sita Gurung.
Other delegates in the committee looked eager to add their points and views on the topic, and a delegate was given a chance.
"The economic situation in Nepal is degrading day by day. Numerous businesses are being shut down on a daily basis, and the remaining can't find a profit out of it. The government is lacking in developing infrastructure and better trade relations with other countries, said the delegate to Gagan Kumar Thapa.
Adding to the point made by the delegate of Gagan Kumar Thapa, the delegate of Arzu Rana also mentioned her concerns in this matter.
"The major cause of this problem is the trade deficit, which is caused by low exports and high imports. The improper trade policies with the other countries have made this matter even worse. This is like a slow poison; it is not seen as a big problem in Nepal, but the time it hits, it will hit very hard, the delegate to Arzu Rana said.
The practice session had paid off, making this session full of eagerness to learn, confidence, and extraordinary research. All delegates presented their ideas and views perfectly, which resulted in the moderated caucus having a stunning conclusion.