Nepalese Finance Minister Dr. Ram Saran Mahat is perhaps the most worried man in the world. Nepalese economy is at its worst condition of all time. The economy is not growing and the government does not have enough money in its fund to operate its normal activities. The pro democracy movement of last month seriously affected the economic activities of the country for nearly one month. Now, liquidity crunch and falling revenue are forcing the government to borrow money on a high interest. Thus the only way out for Nepalese government is to get generous support from its donors.
The only respite for the government is that due to the ceasefire with the Maoist rebels, the government can take some money from defense to development. Well, much depends on the donor countries and organizations. If they come forward with providing substantial amount of cash and kinds now then things will become some bright for the 27 million people of Nepal. If not then sooner or later, violence and chaos will come back to this country.
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I am optimistic that Nepal will overcome the present financial situation.
But I am agree with you that everything lies on the relation between the new government and Maoist rebels.Beside, the donor countries can also extend their helping hand in this financial crisis without taking any high interest.
Thank you for your well-organised article.
Posted by: Biplob Kishore Deb | May 14, 2006 3:04 PM | Permalink to Comment