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Nepal receiving Rs 1.49b in remittances daily


KATHMANDU: Nepal received an average of Rs 1.49 billion as remittance income on a daily basis in fiscal year 2013/14.

According to the Current Macroeconomic Situation of Nepal based on data of fiscal year 2013/14 unveiled by the Nepal Rastra Bank (NRB) on Sunday, total remittance income in 2013/14 increased to Rs 543.29 billion compared to Rs 434.58 billion recorded in 2012/13.

The rise in remittance income boosted the country’s foreign exchange reserve as well as put the country’s overall Balance of Payment (BoP) into surplus. The gross foreign exchange reserve reached to Rs 665.41 billion in mid-July 2014, up from Rs 533.3 billion recorded in mid-July last year.

With the number of Nepali workers leaving the country for foreign employment increasing with every passing year, remittance transferred by migrant workers is also rising significantly. A total of 527,814 Nepalis received final approval for foreign employment from the Department of Foreign Employment (DoFE) in the last fiscal year which is 16.4 percent higher than the previous fiscal year. The DoFE had granted final approval to 453,543 workers in 2012/13.

Out of total workers, who were granted final approval for foreign employment in the review year, 40.6 percent left for Malaysia, 23.7 percent for Qatar, 16.4 percent for Saudi Arabia and 10.3 percent for UAE.

INFLATION UP BY 9.1%

The consumer price inflation rose by 9.1 percent in 2013/14, compared to 9.9 percent in previous 2012/13.

The food and beverages group price index increased highest by 11.6 percent whereas the index of non-food and services group increased by 6.8 percent.

Economist Dilli Raj Khanal told Republica that the remittance growth in recent years was one of the driving forces behind rising inflation. “The rise in remittance flow has increased people’s purchasing power which leads to increase in demand for commodities,” said Khanal. “As cartels and syndicate continue to grip the Nepali market, arbitrary price hike creates direct pressure on inflation,” he added.

FDI PLEDGES FAIL TO GATHER MOMENTUM

Foreign direct investment (FDI) pledges inched up only 0.9 percent in the review period while the number of foreign investment projects declined by 3.8 percent.

According to the data, the Department of Industry granted approval to 305 joint venture projects with foreign direct investment commitment amounting to Rs 20.10 billion in 2013/14, compared to 317 joint venture projects with foreign investment commitment amounting to Rs 19.94 billion in the previous fiscal year.

The total projects getting approval last year promises 11,732 new jobs.

Pashupati Murarka, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that there was no improvement in business environment in the review period. “At a time when we have not been able to see rise in local investment, it is no surprising to see FDI growth stutter,” Murarka said, adding, “The perennial load-shedding problem is yet to go. Likewise, political instability and labor problem are yet to be resolved. There are many reasons that are affecting foreign investment flow.”

For Indian tourists travelling by land:- 72 hours (-ve) C-19 report, CCMC form and Antigen Test at entry point

For Indian tourists travelling by land:- 72 hours (-ve) C-19 report, CCMC form and Antigen Test at entry point

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Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point
Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point
Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point