The rental market in Nepal

IUT has an Associate Member in Nepal.

Below is the latest update from the Association, 12 December 2023:

Economic crisis and its impacts in Nepal


Nepal is a natural beauty, oldest and under developing country of asia. More than 70% of people are engaged in agriculture, whereas 40% national revenue comes from agriculture. While, the contribution of agriculture, industry and service sector to GDP was 37.4 percent, 17.5 percent and 45.1 percent respectively in two decades ago, however such contribution is estimated to be 23.9 percent, 14.3 percent and 61.8 percent respectively in the current fiscal year.

Economics history of Nepal

**************************** Fluctuations in the economic sector, Nepal have been observed according to time and circumstances. When studying the economic history of the world, the social and financial activities of national and international conditions directly and indirectly affect the economy of the interelated countries. Nepal did not have to witness the impact of the global economic recession of 2008 (deterioration of the balance sheet). Due to the deterioration of the balance of payments of developed countries, the economic recession of Southeast Asia in 1997 did not reach Nepal.

In year 1985, Nepal’s balance of payments worsened and the import capacity decreased. Although the government seemed to be facing some economic crisis at that time, the common people could not feel it.

Present economic situation

**************************** Due to the pandemic corona virus of 2019, Nepal face the economic crisis in each and every sector now onward. All sectors of industry and trade have been directly or indirectly affected and have reached the stage of closure due to huge losses. Near about 15% familiar are homeless, 46.5% business form and 61.5% industries has been shot down approximately. On the same way, the overall demand for services provided sectors such as hotels, restaurants, transportation, and air flights has decreased, causing a direct shock to the tourism sector and the investment and employment of millions workers. As a result, it seem to the business inverter and common people life directly. Mohan Neupane,57-year old, who had been operating an electrical shop, hanged himself in his bathroom on 26 jan 2023, Wednesday. A suicide note by Neupane addressing his father, mother and wife mentions that his business slowed down following the Covid-19 pandemic. The business was further hit by high interest rates of banks and rent or other financial institutions, reads the note. He was not in a condition to clear loans.The Biratnagar(Business city) incident comes on the heels of a similar incident in Kathmandu on January 24. Prem Prasad Acharya, a businessman, set himself on fire in front of the Parliament building at New Baneshwar, Kathmandu on Tuesday. Videos circulating on social media after the incident showed that Acharya ran to the middle of the road while Prime Minister Pushpa Kamal Dahal was just leaving the Parliament with a motorcade and set himself on fire. Acharya was rushed to the Kirtipur-based burns hospital but it was too late as he had burn injuries in 80 percent of his body, doctors said. He was pronounced dead early in the morning on Wednesday. likewise, The suicide rate has increased by 72% in a decade in Nepal from 11 persons a day in the fiscal year 020/021 to 19 persons in the fiscal year 021/022. As per the data provided by the Nepal Police, 6,830 people took their lives in the fiscal year 2021/2022.

According to epidemiology

and Disease Control Division of Nepal (EDCDN), increasing of suicide is due to Mental health problems, psychological issues, chronic diseases, the COVID-19 pandemic, migration, urbanization, and social and financial imbalance have been found as causes of suicide by businessman, industrial, farmers etc in Nepal.

Causes of economic crisis in Nepal

***************************** Currently, there are five major causes of economic crisis in Nepal. i.e

1) Balance sheet.

2) Decrease in aggregate demand.

3) Supply problem.

4) Payment problem of the country.

5) Economic policy of government.

All the above problem are created due to the situation or natural disbalance accept fifth one. As in Nepal, fifth cause of economic recession is due to the country’s monetary policy. People’s livelihood is largely affected due to inflation, which is 8 percent on-year basis. The government has zero control over inflation as the country`s import dependent. Due to the increase in prices in the international market, Nepal is forced to procure goods, including fuels, chemical fertilisers, food, rent etc. at a higher price. While the prices of daily commodity goods increasing at an exponential rate, there is no growth as such in the agricultural, industrial or even service sectors. Because of the lack of meaningful job creation in the country, larger sections of the working population are forced to leave the country for jobs in foreign countries. Of the 30 million population in Nepal, nearly 3,000 youth are leaving the country each day for jobs in overseas countries. There is no data about the youth leaving Nepal for jobs in the Indian market, but estimates are that some 8 million Nepalese live and work in India. It is not only the educated people but also the semi-skilled and unskilled people who leave the country. Nepal is one of the few countries in the world that supplies larger sections of its population to foreign countries for employment. By doing so, Nepal receives as much as US$8 billion in the form of remittances which is almost one-fourth of the country’s total Gross Domestic Production(GDP). But then it is largely consumed by the expenses of education, health, recreation, and tourism. There is not much use of remittance in the productive sector by the government. Now a day, Government of Nepal is busy in corruption as well as other unwanted activities, As a whole, People of Nepal was dislike the political leaders and parties now a day. People are avoid political program and its activities because they realized that government is puppet government of other strong countries and person.

Shankar Koirala

Founder Chairman

Federation of Tenants Nepal.

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