KATHMANDU — The Asian Development Bank (ADB) has forecasted 5.5 per cent of Gross Domestic Product (GDP) growth in the coming fiscal year 2018/19 in Nepal.
The ADB made this higher forecast hinges on the assumption of normal monsoon and acceleration of ongoing mega projects.
The Edition of Macroeconomic Update of Asia, the main annual publication of ADB, released here today, expected Nepal’s economy to grow at a slower pace of 4.9 per cent in current fiscal year from 6.0 per cent in previous fiscal year weighed down by floods of August 2017 and the erosion of base effect.
On the occasion, ADB Country Director for Nepal, Makhtor Khamudkhanov said, “Production of summer crops like maize and millet is expected to increase in fiscal year 2017/18 as compared to the previous fiscal year while the industrial grow rate is estimated to go down.”
Even with increased capacity utilization of industries, industrial growth is set to be lower in current fiscal year from the high rate in previous fiscal year, largely due to low investment in the manufacturing sub-sector for years owing to political instability and structural bottlenecks, reads Macroeconomic Update.
He said, “Substantive growth in government expenditures and moderate upticks in investment would drive growth in current fiscal year and government expenditures have increased significantly this fiscal year partly for local, provincial and parliamentary elections.”
“Additionally, the government has appointed fiscal transfer of Rs 232.2 billion (about 8.0% of GDP) to local and provincial governments under the federal structures of governance.”
Similarly, average annual inflation is expected to rise moderately to 5.5 per cent in current fiscal year 2017/18 from 4.5 per cent in previous fiscal year.
This is below the inflation target of 7.0% set by Nepal Rastra Bank and external sector stability is vulnerable over the medium-term with slow remittance growth and rising trade deficit, he added.
The Macroeconomic Update also shed lights on the importance of agricultural commercialization in Nepal and the need for its effective implementation by addressing legal, institutional, financial and infrastructural barriers.
Commercialized agriculture via contract and cooperative farming methods can be one of the major sources of revenue generation for the country if practiced on a wider scale.
It will not only help generate local employment but also meet domestic demands with improved crop and livestock production and promote export potential of niche agro products.Follow @gorkhapost
Sajha to bring 20 more buses to the Kathmandu Valley
LALITPUR— The Sajha Yatayat is adding 20 more buses in the Kathmandu Valley.
The Kathmandu Metropolis is investing Rs 50 million while the Rs 10 million shall be contributed by the Lalitpur Metropolitan City to launch new buses manufactured by the Indian Company Ashok Leyland which will have features like of Sajha vehicles presently in operation.
The company targets to bring new passenger buses into the valley in the next two months and they will be seen on the Valley roads after getting registered at the concerned department.
The Sajha that is operated on a cooperative model was established on 16th March, 1962 (Chaita 3, 2018 BS) as per the then Cooperative Act-2016 BS to provide accessible and reliable transport services to the public at reasonable prices. But, all services had been closed in 2064 BS due to various reasons.
The Sajha bus service was launched again on 13th April, 2013 (Chaita 31, 2069 BS) and at an initial phase, two buses were seen on the Kathmandu Valley in the morning of the following day( Nepal New Year 2070 BS) carrying the name of Sajha.
The government and local level owns over 90 percent share in Sajha
Currently, 47 Sajha buses are operated in the Valley.
Its long route services include the Kathmandu-Baglung and Kathmandu-Kushma, Parbat routes. Besides, it has special bus services meant for physically challenged people. It may be noted that Prime Minister KP Sharma Oli last Tuesday inaugurated electronic-buses introduced under the management of Sajha.