Crisis could hit country where it hurts the most

Global recession could eat up the remittance that is a life line of the Nepali economy as well as sink its teeth into exports, Foreign Direct Investment (FDI), debt servicing and tourism.
Experts during a workshop, 'Global recession and its Impact on Nepali economy,' organised by the Independent Business News (IBN) -- producer of Aarthko Aarth TV programme -- in associoation with Nepal Rastra Bank (NRB), Nabil Bank and Standard Chartered Bank Nepal, held a brainstorming session here today on the magnitude of global recession's probable impact on the country's economy.
"If the crisis hits home, it will be very difficult for the government to rescue the economy," said Radhesh Pant, president of Nepal Bankers' Association (NBA) and managing director of Bank of Kathmandu.
"It is also the appropriate time for the regulatory authority to increase survillence and monitoring," he said adding that the global crisis could be the opportunity to build up internal strength as Nepal has only a 'loose connection' to the global economies.
"Our home-grown crisis also needs to be tackled for economic development," said Anil Shah, CEO of Nabil Bank. "The labour dispute and power crisis issues are more dangerous threats to our economy than the global crisis," he said.
"FDI will not come to a country that is plagued by labour disputes," said Dr Chiranjeevi Nepal, former chairman of Securities Board of Nepal (Sebon). "Similarly, tourists also won't come to Nepal if regular bandhs are not stopped," he said adding that both would bleed the economy white.
The experts also suggested that the government increase capital expenditure in order to create more jobs.