Prime Minister KP Sharma Oli – addressing the nation marking the completion of his one year in office as the prime minister – claimed that his government has worked wonders in a year.
In his televised speech from the power seat of in Singha Durbar, Prime Minister Oli also boasted about his various achievements, dubbing the completion of one year in office as the ‘foundation year’ or 'zero year'.
While issuing a white paper on economy – by cherry picking data – a year ago finance minister Dr Yub Raj Khatiwada hinted at marking this year as a 'zero year,' apart from his budget that has also claimed to make the current fiscal year a 'zero year' for the prosperous Nepal.
But the key indicators – including Balance of Payment (BoP) and trade deficit – of the economy seems not following the governments 'Happy Nepali Prosperous Nepal' slogan. The BoP remained at a deficit of Rs.63.68 billion in six months compared to a deficit of Rs.6.66 billion in the same period of last fiscal year due to deficit in current account – that registered a deficit of Rs 152.16 billion by mid-January. "Such deficit stood at Rs 97.78 billion in the six months of last fiscal year," according to the central bank.
Likewise, trade deficit has also widened in the sixth month of the current fiscal year, compared to the same period of the last fiscal year. "In six months of 2018-19, merchandise exports increased by 10.3 per cent to Rs 45.41 billion – compared to an increase of 13.5 per cent a year ago, whereas, merchandise imports increased by 30.5 per cent to Rs 723.94 billion widening the total trade deficit further by 32.1 per cent to Rs 678.53 billion," the central bank data reveals. "The export-import ratio declined to 6.3 per cent in the six months from 7.4 per cent in the same period of the last fiscal year."
Similarly, the capital transfer and FDI inflow to Nepal amounted to Rs 6.89 billion and Rs 4.36 billion – making it to a total of Rs 11.25 billion – respectively, which is more than half the last year's six months. "The capital transfer and FDI inflow witnessed Rs 10.07 billion and Rs 14.33 billion – making a total of Rs 24.40 billion – in the six months of the last fiscal year," the central bank data reveals.
Though, the PM painted rosy picture of economy and boosted about his one-year achievements, even the share market has been not supporting the government claim. The share market – a mirror of economy and investors' confidence – has been looking down from the very first day of the KP Oli government's formation. Nepal Stock Exchange (Nepse) dropped by 8.21 points today – on the day of Premier's address to the nation boosting his achievements today – to close the market at 1112.87 points, following the trend of continuous decline since one year, from th every first day of KP Oli government. The market also lost confidence as the government failed to initiate reform in the capital market, though it has been upgraded to online trading.
However, the premier did not spell a single word on capital market in his 28-page one-year achievement address today.
The PM, however, claimed that the economy will grow by 7 per cent – in the current fiscal year – as according to the planning commission the growth rate stands at 6.9 per cent in the six months. But his government – in the budget speech for the current fiscal year – has targeted 8.5 per cent economic growth.
The premier also went on to say that the government has already constructed 490-km road, 417 suspension bridges and registered 499 industries in last one year, but he did not spell a word on the gross foreign exchange (forex) reserves that has also depleted to Rs 1058.20 billion as of mid-January 2019 from Rs 1102.59 billion as of mid-July 2018.
Yet another setback for the Oli government is that his government has been stashing huge amount in the central bank locker, being unable to spend on development works. The government treasury is bulging with Rs 178.75 billion – including Rs 49.2 billion in Local Levels' account – as of mid-January 2019.
Though, the private sector was very much hopeful of economic revolution due to historically powerful two-third majority government of Prime Minister KP Sharma Oli promised a moon, the delivery and governance has seen no remarkable change. One year down the line, Oli government acted like his predecessors with nine months in the power.
In almost last 3 decades – Excluding former king Gyanendra – Nepal witnessed 25 prime ministers. However, the political stability in the last one year could not bring policy stability hitting the FDI inflow and also investment confidence of the private sector.
The Oli government could not walk its talk though it had made tall promises of improving people’s livelihood, sustainable development, prosperity and good governance has become.
In his televised speech from the power seat of in Singha Durbar, Prime Minister Oli also boasted about his various achievements, dubbing the completion of one year in office as the ‘foundation year’ or 'zero year'.
While issuing a white paper on economy – by cherry picking data – a year ago finance minister Dr Yub Raj Khatiwada hinted at marking this year as a 'zero year,' apart from his budget that has also claimed to make the current fiscal year a 'zero year' for the prosperous Nepal.
But the key indicators – including Balance of Payment (BoP) and trade deficit – of the economy seems not following the governments 'Happy Nepali Prosperous Nepal' slogan. The BoP remained at a deficit of Rs.63.68 billion in six months compared to a deficit of Rs.6.66 billion in the same period of last fiscal year due to deficit in current account – that registered a deficit of Rs 152.16 billion by mid-January. "Such deficit stood at Rs 97.78 billion in the six months of last fiscal year," according to the central bank.
Likewise, trade deficit has also widened in the sixth month of the current fiscal year, compared to the same period of the last fiscal year. "In six months of 2018-19, merchandise exports increased by 10.3 per cent to Rs 45.41 billion – compared to an increase of 13.5 per cent a year ago, whereas, merchandise imports increased by 30.5 per cent to Rs 723.94 billion widening the total trade deficit further by 32.1 per cent to Rs 678.53 billion," the central bank data reveals. "The export-import ratio declined to 6.3 per cent in the six months from 7.4 per cent in the same period of the last fiscal year."
Similarly, the capital transfer and FDI inflow to Nepal amounted to Rs 6.89 billion and Rs 4.36 billion – making it to a total of Rs 11.25 billion – respectively, which is more than half the last year's six months. "The capital transfer and FDI inflow witnessed Rs 10.07 billion and Rs 14.33 billion – making a total of Rs 24.40 billion – in the six months of the last fiscal year," the central bank data reveals.
Though, the PM painted rosy picture of economy and boosted about his one-year achievements, even the share market has been not supporting the government claim. The share market – a mirror of economy and investors' confidence – has been looking down from the very first day of the KP Oli government's formation. Nepal Stock Exchange (Nepse) dropped by 8.21 points today – on the day of Premier's address to the nation boosting his achievements today – to close the market at 1112.87 points, following the trend of continuous decline since one year, from th every first day of KP Oli government. The market also lost confidence as the government failed to initiate reform in the capital market, though it has been upgraded to online trading.
However, the premier did not spell a single word on capital market in his 28-page one-year achievement address today.
The PM, however, claimed that the economy will grow by 7 per cent – in the current fiscal year – as according to the planning commission the growth rate stands at 6.9 per cent in the six months. But his government – in the budget speech for the current fiscal year – has targeted 8.5 per cent economic growth.
The premier also went on to say that the government has already constructed 490-km road, 417 suspension bridges and registered 499 industries in last one year, but he did not spell a word on the gross foreign exchange (forex) reserves that has also depleted to Rs 1058.20 billion as of mid-January 2019 from Rs 1102.59 billion as of mid-July 2018.
Yet another setback for the Oli government is that his government has been stashing huge amount in the central bank locker, being unable to spend on development works. The government treasury is bulging with Rs 178.75 billion – including Rs 49.2 billion in Local Levels' account – as of mid-January 2019.
Though, the private sector was very much hopeful of economic revolution due to historically powerful two-third majority government of Prime Minister KP Sharma Oli promised a moon, the delivery and governance has seen no remarkable change. One year down the line, Oli government acted like his predecessors with nine months in the power.
In almost last 3 decades – Excluding former king Gyanendra – Nepal witnessed 25 prime ministers. However, the political stability in the last one year could not bring policy stability hitting the FDI inflow and also investment confidence of the private sector.
The Oli government could not walk its talk though it had made tall promises of improving people’s livelihood, sustainable development, prosperity and good governance has become.
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