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Unofficial Translation

Economic Survey

Fiscal Year 2016/17

Government of Nepal
Ministry of Finance
Singh Durbar, Kathmandu
Foreword
The government of Nepal aims to speed up socio-economic transformation through
high, sustained and broad-based inclusive growth. To achive this goal, federal system
should be taken as a window of opportunity for economic prosperity and thus adequate
provision of means and resources for investment should be made at federal, provincial
and local levels. In addition, national economic policy and sectoral policies need to be
formulated and implemented in order to realize the goal of economic development with
stability and build the basis for the mobilization of means and resources for federal
fiscal management. Such policies should focus on building exploitation free society by
abolishing economic inequality through sustainable economic development and
equitable distribution of development returns by optimally utilizing available means
and resources as well as mobilization of capital in participation of government, private
and cooperative sector.
Nepalese economy suffered adversely from devastating earthquake and disruption in
supply situation due to obstruction in boarder points. In order to recover the economy by
mitigating such adverse shocks, the governmnet of Nepal has implemented various
policies and programs. As a result, the economy is estimated to grow by 6.94 percent in
2016/17. This growth rate is the highest since fiscal year 1994/95. Hence, it would be
easier to achive the goal of economic prosperity if the existing situation of high
economic growth, low inflation, adequate foreign exchange reserve and resource
availability could be sustained and employment could be generated through
mobilization of investment.Thus, it is important to boost private sector investment by
enhancing the capacity to execute budget and creating the investment friendly
environment. However, the means and resources in the federal structure is adequate.
Economic Survey for fiscal year 2016/17 has been prepared by making analytical
review of various aspects of the economy and the achievements from the
implementation of important policies and programs. It has incorporated the important
programs from socio-economic perspectives and their impact on the overall economy.
I believe that the Economic Survey would be very useful for all those who are interested
and have concern over the economic activities of Nepal including sector line agencies,
intellectuals, researchers, employees, teachers, students, industrialists, businessmen,
NGOs, common public, Nepal's development partners and foreign investors.
Last but not the least, I would like to extend my thanks to the Economic Policy Analysis
Division of Ministry of Finance including all officials who involved in the preparation
of the Survey and various Ministries, departments and other concerned entities who
have extended their supports to this work by providing data, information and other
details.
Krishna Bahadur Mahara
Deputy Prime Minister and Minister for Finance
Contents
Foreword
List of Tables iii
List of Charts viii
Abbreviations x
Executive Summary xi
Macroeconomic Indicators xvii
Major Challenges of Economy xxiii
1. Overall Economic Situation 1
2. Public Finance 19
3. Price 45
4. Money and Banking 54
5. Capital Market and Insurance 77
6. External Sector 91
7. Poverty Alleviation and Employment 101
8. Agriculture, Forestry and Land Reform 118
9. Industry, Commerce, Supply and Tourism 147
10. Housing and Urban Development, Environment and Energy 169
11. Physical Infrastructure, Transport and Communication 185
12. Good Governance, General Adminstration, Peace and Reconstruction 202
13. Social Sector 214
14. Public Enterprises 270
15. Post Earthquake Reconstruction and New Construction 280
List of Tables
Table 1 (a) : World Economic Growth Rate (Percent) 2
Table 1 (b) : Economic Growth in Neighboring Countries(Percent) 2
Table 1 (c) : CPI Based Global Inflation Rate (Percent) 3
Table 1 (d) : Trend of CPI Inflation in China and South Asia (Percent) 3
Table 1 (e) : World Trade Situation (Annual Percentage Change) 4
Table 1 (f) : Share in Gross Domestic Product 6
Table 2 (a) : Public Finace and Ratio with GDP ( In Rs. Ten Million) 20
Table 2 (b) : Government Expenditure Detail( In Rs. 10 Million) 22
Table 2 (c) : Service and Funtion-Wise Detail of Recurrent Expenditure (In
24
NRs. 10 Million)
Table 2 (d) : Service and Function-Wise Details of Capital Expenditure (In
26
NRs. 10 Million)
Table 2 (e) : Government’s Income Detail ( In NRs. 10 Million) 27
Table 2 (f) : Ratio of Income, Grants and Expenditure to Government’s Total
28
Expenditure ( In NRs. 10 Million)
Table 2 (g) : Revenue Details ( In NRs. 10 Million) 31
Table 2 (h) : Revenue Structure of Last Five Years (In Percent) 33
Table 2 (i) : Foreign Aid Commitment Situation ( In NRs. 10 Million) 34
Table 2 (j) : Fiscal Deficit and Deficit Financing Detail ( In NRs. 10 Million) 36
Table 2 (k) : Outstanding Public Debt, Principal Repayment and Interst
38
Expenditure ( In NRs. 10 Million)
Table 2 (l) : Net Domestic Loan Issued ( In NRs. 10 Million) 40
Table 2 (m) : Income and Expenditure Details of Local Bodies (In NRs. 10
41
Million)
Table 2 (n) : Government Grant to Local Bodies (In NRs. 10 Million) 42
Table 3 (a) : Consumer Price Inflation on Year-on-Year Basis 47
Table 3 (b) : Change in National Consumer Price Index on Year-on-Year Basis 48
Table 3 (c) : Change in National Wholesale PricenIndex on Year-on-Year Basis 50
Table 3 (d) : Y-O-Y Based Change in Nationaal Wage Salary and Wage Rate
50
Index
Table 3 (e) : Average Market Price of Major Food Items (NRs/Kg) 51
Table 3 (f) : Prices of Gold and Silver in Internatioonal Markets 51
Table 3 (g) : Supply of Petroleum Products 53
Table 4 (a) : Bank Rate, Refinance Rate and Cash Reserve Ratio (In Percent) 56
Table 4 (b) : Factors Affecting Money Supply (In NRs. 10 Million) 58
Table 4 (c) : Changes in Monetary Aggregates (on Y-o-Y Basis, In Percent) 58
Table 4 (d) : Reserve Money and Money Multiplier 59
Table 4 (e) : Open Market Operation (In NRs. 10 Million) 60
Table 4 (f) : Structure of Interest Rate (In Percent) 61
Table 4 (g) : Deposit Mobilization and Credit Flow ( In Rs. 10 Million) 62
Table 4 (h) : Credit Flow by Sectors (In NRs. 10 Million) 63

iii
Table 4 (i) : Number of BFIs (As of Mid-July) 64
Table 4 (j) : Share of BFIs to Total Deposits, Credit and Assets (Mid-March,
64
2017)
Table 4 (k) : Financial Soundness Indicators (In Percent) 65
Table 4 (l) : Financial Deepening Situation (In Percent) 66
Table 4 (m) : Some Indicators of Access to Finance 66
Table 4 (n) : Branches of BFIs (Until Mid-March 2017) 68
Table 4 (o) : Sources and Uses of Fund of Microfinance Institutions (In NRs.
69
10 Milllion)
Table 4 (p) : Credit and Deposit Guarantee Situation 71
Table 4 (q) : Status of Rural Self-Reliance Fund (In NRs. 10 Million) 72
Table 4 (r) : Loan Default and Capital Fund 73
Table 5 (a) : Primary Market 78
Table 5 (b) : Secondary Market Trend 81
Table 5 (c) : Commodity Derivative Market 82
Table 5 (d) : Ownership Structure of Insurance Companies 84
Table 5 (e) : Source and Uses of life and non-life Insurance Companies 85
Table 5 (f) : Life and Non-Life Insurance Premiums 86
Table 5 (g) : Investment on Life and Non-life Insurance Business 88
Table 5 (h) : Revenue Earning from Insurance Business* 89
Table 6 (a) : International Trade Situation (First Eight Months, In Percent) 95
Table 6 (b) : Remittance Inflow Situation 97
Table 6 (c) : Total Foreign Exchange Reserve ( In NRs. Billion) 98
Table 6 (d) : Situation of International Investment Position (Mid-July, In Rs.
99
Billion)
Table 6 (e) : Foreign Exchange Rate 99
Table 7 (a) : National Household and Population Survey 103
Table 7 (b) : Amount Mobilized Through Community Organizations( In Rs.
107
1000)
Table 7 (c) : Status of Skill Development Training 110
Table 7 (d) : Organizations Affiliated to Foreign Employment Inforation
111
Management System
Table 7 (e) : Licensed Migrant Workers’ Details 111
Table 7 (f) : Country-Wise Foreign Employment Situation 112
Table 7 (g) : Details on Number of Deceased Nepali Migrant Workers and
112
Financial Assistance
Table 7 (h) : Details of Ailing and Maimed Nepali Migrant Workers 113
Table 7 (i) : Amount Collected in Social Security Fund(In Rs. 10 Million) 114
Table 7 (j) : Rural Community Infrastructure Development 115
Table 8 (a) : Details of Food Crops Production 121
Table 8 (b) : Production Details of Legumes 123
Table 8 (c) : Production Details of Cash Crops 125
Table 8 (d) : Production Details of Industrial Crops 126

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Table 8 (e) :Production Details of Spice Crops 128
Table 8 (f) : Number of Livestock/Fowls 129
Table 8 (g) : Production Situation of Livestock and Fowls 130
Table 8 (h) : Supply Situation of Agriculture Inputs 131
Table 8 (i) : Natural Disaster Affected Crops’ Land Area (Ha.) 131
Table 8 (j) : Sales and Distribution Situation of Chemical Fertilizers ( MT) 132
Table 8 (k) : Additional Irrigated Area (In Ha.) 133
Table 8 (l) : BFIs Disbursed Agricultural Credits ( In Rs. Million) 133
Table 8 (m) : Foundation Seeds Production and Introduction of Crop Varieties 134
Table 8 (n): Member and Loan Investment Situation of Small Farmer
135
Development Bank
Table 8 (o) : Livestock Credit Program Detail 136
Table 8 (p) : Basic Status of Cooperative Institutions(In Rs. 000) 137
Table 8 (q) : Forest Area of Nepal 139
Table 8 (r) : Forest Related Statistiics 140
Table 8 (s) : Area of National Parks and Wildlife Reserve and Other Details 141
Table 8 (t) : Number of Major Wildlife Species 142
Table 8 (u) : Number of Tourist Visiting Protected Area and Revenue Earned 142
Table 8 (v) : Land and Watershed Management 143
Table 8 (w) : Number of Tourist (Domestic/International) Visting National
144
Botanical Garden
Table 8 (x) : Total Revenue Earned through Forest Sector (In Rs. 000) 144
Table 9 (a) : Licensed Industries for Operation in Last Ten Years 148
Table 9 (b) : Lincense Industries for Operation 149
Table 9 (c) : Foreign Investment on Industries in Last Ten Years 151
Table 9 (d) : Foreign Investment by Country 152
Table 9 (e) : Nepal’s Poistion in Doing Business among SAARC Nations 153
Table 9 (f) : Industrial Intellectual Property Registration (In Number) 154
Table 9 (g) : BIPPA Signed Countries 154
Table 9 (h) : Company Registration Status 156
Table 9 (i) : Number of Tourist Arrival and Length of Stay 163
Table 10 (a) : Energy Consumption Status (In ToE: Tons of Oil Equivalent) 173
Table 10 (b) : Electricity Demand, Consumption, Production, Import, and
176
Physical Structures
Table 10 (c) : Completed Hydroelectricity Projects in FY 2016/17 177
Table 10 (d) : On-going Hydroelectricity Projects 178
Table 10 (e) : Hydroelectricity Generation License Status (Until Mid-March) 178
Table 10 (f) : Electricity Consumption by Sectors (GWh) 179
Table 10 (g) : Alternativ Energy Consumption Status 181
Table 10 (h) : Daily and Monthly Average Imports of Petroleum Products 182
Table 10 (i) : Consumption Details of Petroleum Products 182
Table 11 (a) : Status of Road Facility Expansion 185
Table 11 (b) : Road Facility Extended by Department of Road (In Km) 186

v
Table 11 (c) : Details of Road Network constructed under Local Bodies (In
187
Km)
Table 11 (d) : Local Road Network Details by Provinces (In Km) 187
Table 11 (e) : Local Road Network Details by Geographical Region (In Km) 189
Table 11 (f) : Number of Registered Vehicle 189
Table 11 (g) : Civil Aviation Related Indicators 190
Table 11 (h) : Number of Audio-Visual Related Licenses 193
Table 11 (i) : Status of Telecommunication Service 194
Table 11 (j) : Total Number of Distributed Telephones 195
Table 11 (k) : Comparative Statistics of Registered Newspapers 196
Table 11 (l) : Status of Motion Picture Sector 198
Table 11 (m) : Accomplished Information Technology Related Tasks 200
Table 12 (a) : Number of Bhutanese Refugees Resettled in Third Countries 206
Table 12 (b) : Detail of Civil Employees 207
Table 12 (c) : Detail of Civil Employees 207
Table 12 (d) : Detail of Training Programs Conducted Through Nepal
209
Administrative Staff College
Table 12 (e) : Number of Appeals, Complaints and Applications Filed
210
(FY2008/09-FY2015/16) at the Council
Table 12 (f) : Sector-Wise Applications, Complaints and Appeals Filed in FY
210
2015/16
Table 12 (g) : Status of Relief, Financial Support, Reconstruction, and
211
Rehabilitation
Table 13 (a) : Comparative HDI Status (Ranks and Values) between Nepal and
214
Other Countries
Table 13 (b) : Expenditure Trend of Education, Health and Social Security (in
215
Percentage)
Table 13 (c) : Achievements based on Educational Indicators (Percent) 218
Table 13 (d) : Level -Wise School, Student and Teacher Ratio (Academic Year
226
2016)
Table 13 (e) : Level-Wise/Area-Wise Detail of Community and Institutional
226
School Operating as of Academic Year 2016
Table 13 (f) : Detail of Traditional Schools (in Number) 226
Table 13 (g) : Detail of Teachers Engaged in Community and Institutional
227
Schools (In Numbers)
Table 13 (h) : Gender-Wise Detail of Teachers by Schools and by Levels (Basic
228
Level)
Table 13 (i) : Status of School Level Students’ Enrollment (In Number) 228
Table 13 (j) : Students’ Enrollment Status by Levels in Academic Year 2016 229
Table 13 (k) : Level Wise Student Enrolment Detail 229
Table 13 (l) : Area-Wise detail of Approved Grade 11-12 Operating Secondary
230
School

vi
Table 13 (m) : SEE (previously named SLC) Examination Detail (Academic
231
Year 2016)
Table 13 (n) : Indicators related to Impacts rendered by Health Sector Program 234
Table 13 (o) : Details of Health Institutions, Beds and Human Resources 235
Table 13 (p) : Health Service Beneficiary Population by Development Regions 235
Table 13 (q) : Out patient by Development Region 236
Table 13 (r) : Detail of Extended Vaccination and National Polio Vaccination
236
Program
Table 13 (s) : Detail of Reproductive Health Program 237
Table 13 (t) : Study Research Conducted Through Health Research Council
241
(1995-2016)
Table 13 (u) : Social Security Program 242
Table 13 (v) :Comparisonof Major Indicators among South Asian Countries 245
Table 13 (w) :Detail of Service Recipients from Rehabilitation Center 247
Table 13 (x) : Details on Protection, Relief and Reconciliation of Armed
251
Conflict affected Children
Table 13 (y) : Identity Card Distribution to Persons with Disability 252
Table 13 (z) : Status of Basic Drinking Water and Sanitation 253
Table 13 (aa) : Seventh National Sport Tournament 258
Table 13 (ab) : Registration of Vital Events 261
Table 13 (ac) : Distribution of Social Security Allowance (In Number) 262
Table 15 (a) : Private Housing Grants Beneficiaries and Grant Distribution 282

vii
List of Charts

Chart 1 (a) : Gross Domestic Product Trend 5


Chart 1 (b) : Structure of Gross Domestic Product 6
Chart 1 (c) : Sector-wise Economic Growth Rates 7
Chart 1 (d) : Structure of Sector-wise Production 8
Chart 1 (e) : Structure of Total Consumption 13
Chart 1 (f) : Strucutre of Private Consumption 14
Chart 1 (g) : Structure of Gross Capital Formation 15
Chart 1 (h) : Ratios of Gross Domestic Savngs and Gross National Savings to GDP 16
Chart 1 (i) : Per Capita Income 16
Chart 1 (j) : Per Capita Income 17
Chart 2 (a) : Ratio With GDP (In Percent) 20
Chart 2 (b) : Per Capita Revenue and Public Expenditure (In NRs.) 21
Chart 2 (c) : Public Expenditure to GDP Ratio (In Percent) 22
Chart 2 (d) : Structure of Public Expenditure ( In percent) 23
Chart 2 (e) : Government Income Structure (In Percent) 28
Chart 2 (f) : Ratio of Revenue, Grants and Loan to Government’s Total
29
Expenditure (In Percent)
Chart 2 (g) : Ratio of Revenue to GDP ( In Percent) 30
Chart 2 (h) : Total Revenue Structure ( In Percent) 33
Chart 2 (i) : Development Aid on Budgeted and Non-Budgeted Projects for FY2015/16 36
Chart 2 (j) : Structure of Outstanding Public Debt(In Percent) 37
Chart 2 (k) : Per Capita GDP and Debt 39
Chart 3 (a) : Inflation Trend in Nepal (2009-2016, In Percent) 45
Chart 3 (b) : Overall Inflation Rate(1996-2016, In Percent) 46
Chart 3 (c) :Inflation Rate by Geographical Regions(2015-2016 In Percent) 49
Chart3 (d) : Prices of Petroleum Products in Nepal 2001-2015 (In NRs.) 52
Chart 4 (a) : Broad money and narrow money supply growth (on Y-o-Y basis) 57
Chart 4 (b) : Diposite, Lending and Base Rate (Weighted Average, Percent) 61
Chart 4 (c) : Situation of Financial Access in Nepal as Compared to Other Countries 67
Chart 5 (a) : Trend of Market Capitalization (Rs. In Billion) 79
Chart 5 (b) : Turnover and Paid up Capital (Rs. In Billion) 80
Chart 5 (c) : NEPSE Index 81
Chart 5 (d) : Source and Uses of life and non-life Insurance Companies 85
Chart 5 (e) : Life and Non-Life Insurance Premiums 86
Chart 5 (f) : Growth Rate of Life and Non-Life Insurance Premiums 87

viii
Chart 5 (g) : Insurance Premiums to GDP Ratio 87
Chart 5 (h) : Investment on Life and Non-life Insurance* 88
Chart 5 (i) : Contribution to Revenue* 89
Chart 6 (a) : Share of Import and Export in Total Trade ( In Percent) 92
Chart 6 (b) : Status of Remittance Inflow (In Percent) 93
Chart 6 (c) : Key Elements of BoP ( In NRs.Billion) 96
Chart 6 (d) : Siutation of Foregin Exchange Reserve Adequacy Indicators 98
Chart 8 (a) : Production of Paddy, Maize and Wheat among Major Food Crops 121
Chart 8 (b) : Sale and Distribution Situation of Chemical Fertilzers 132
Chart 9 (a) : Contribution of Industry to GDP 147
Chart 9 (b) : Investment on Industries in Last Ten Years 149
Chart 9 (c) : Licensed Industries for Operation 150
Chart 9 (d) : Foreign Investment on Industries in Last Ten Years 151
Chart 9 (e) : Share of Foreign Investment by Country 152
Chart 9 (g) : Tourist Arrival 164
Chart 9 (h) : Countries with Most Number of Tourist Arrival in 2016 164
Chart 9 (i) : Tourist Arrival by Purposes 165
Chart 10 (a) : Energry Consumption Status 174
Chart 10 (b) : Growth Rate of Electricity, Gas and Water (In Percent) 175
Chart 10 (c) : Gap Between Energy Demand and Supply (In MW) 176
Chart 10 (d) : Electricity Consumption By Sectors (In Percent) 180
Chart 11 (a) : Road Facility extended by Department of Road 186
Chart 11 (b) : Local Road Network Details by Provinces 188
Chart 13 (a) : Share of Education, Health and Social Security in Total Budget 215
Chart 13 (b) : Conrtibutaion of Education Sector to GDP 216
Chart 13 (c) : Percentage of Children with Early Childhood Development
220
experience among students entering Grade 1
Chart 13 (d) : Level-Wise School’s Details by Geographical Sector 225
Chart 13 (e) : Students Enrollment at Tribhuwan University 233
Chart 13 (f) : Number of Students studying at TU and other Universities 233
Chart 13 (g) : Missing, Found after missing and Found unattended Children 248
Chart 13 (h) : Children Details (First Eight months of Fiscal Year 2016/17) 249
Chart 13 (i) : Beneficiary Children from Child Toll-Free Helpline Telephone Number 1098 250
Chart 14 (a) : Operating Income of Public Enterprises 277
Chart 14 (b) : Total Investment of Public Enterprises 278
Chart 14 (c) : Net Profit/loss of Public Enterprises 279
Chart 15 (a) : Grant Distribution in most earthquake affected 14 districts 282

ix
Abbreviations
ARV Anti Rabies Vaccination
ASBA Application Supported by Blocked Amount
ASV Anti Snake Venom
BIMSTEC Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation
CB PMTCT Community Based Pregnant Mother to Child Transmitted
CBEGRA Classroom Based Early Grade Reading Assessment
CBT Computer Based Test
CIRS Criminal Information Record System
EDLURS Electronic Driving License Vehicle Registration System
EGRA Early Grade Reading Assessment
EPS Employment Permit System
FEIMS Foreign Employment Information Management System
FMIS Fund Management Information System
FPO Further Public Offering
GFS Government Finance Statistic
GDP Gross Domestic Product
GIDC Government Information Data Center
GPA Gross Point Average
GST Goods & Service Tax
HIV Human Immunedeficiency Virus
HTC HIV Testing & Counseling
ICT Information & Communication Technology
ID Intra Dermal
IMF International Monetary Fund
LDC's Least Developed Countries
LRIMS Land Reform Information Management System
NASC Nepal Administrative Staff College
NIPS National Integrated Power System
ODA Official Development Assistance
ODF Open Defecation Free
OECD Organization for Economic Cooperation and Development
PDRF Post Disaster Reconstruction Framework
PMIS Population Management Information System
PMTCT Preventing Mother to Child Transmission
PPP Purchasing Power Parity
RCC Reinforced Cement Concrete
SAARC South Asian Association for Regional Cooperation
SAFTA South Asian Free Trade Area
SDG Sustainable Development Goals
SEE School Education Examination
SEZ Special Economic Zone
TABUCS Transaction Accounting and Budget Control System
TOE Tones of Oil Equivalent
UNDP United Nations Development Program
WTO World Trade Organization
WUPAP Western Uplands poverty Alleviation Project

x
Executive Summary
1. World economy is gaining momentum with a recovery in developed
economies. International Monetary Fund projected that the world
economy grows by 3.5 percent in 2017. Such growth rate stood at 3.1
percent in 2016. Likewise, India and China, two neighboring economies,
are projected to grow by 7.2 percent and 6.6 percent respectively in 2017.
2. Nepal’s overall economic activity has been encouraging in fiscal year
2016/17. Economic activities have expanded due to favorable monsoon,
increase in capital expenditure, energy management, and improvement in
investment environment including overall supply situation. As a result,
gross domestic product (GDP) at basic price is estimated to grow by 6.94
percent in the current fiscal year. This growth rate is the highest since FY
1993/94. Such growth rate was 0.01 percent in the previous fiscal year.
The economy that contracted due to the earthquake and disruption in
border points is in the stage of recovery and expansion .
3. Agriculture and non-agriculture sectors are estimated to grow by 5.29
percent and 7.74 percent respectively in FY 2016/17. Such growth rates
were 0.03 percent and 0.16 percent in the previous fiscal year. Likewise,
service sector and industrial sector are estimated to grow by 6.9 percent
and 10.97 percent respectively in the current fiscal year.
4. Nepalese economy is in the stage of structural transformation as the share
of service sector is increasing while that of agriculture sector is
decreasing. The share of agriculture and non-agriculture sectors to GDP
are estimated to remain at 29.37 percent and 70.63 percent respectively in
fiscal year 2016/17.
5. The share of consumption in GDP has mostly remained high. Its share in
GDP is estimated to remain 89.7 percent in the fiscal year 2016/17. Such
share stood at 96.18 percent in the previous fiscal year.
6. The share of gross domestic savings in GDP is estimated to grow by 6.43
percentage points in fiscal year 2016/17 as compared to the previous
fiscal year. Such share is estimated to be 10.25 percent in the current
fiscal year. Likewise, the ratio of gross national savings to GDP is
estimated to remain at 43.78 percent. Such ratio stood at 39.96 percent in
the previous fiscal year.
7. Gross capital formation is estimated to grow by 45.8 percent to Rs.
114.96 billion in the fiscal year 2016/17. The share of gross capital
xi
formation in GDP that stood at 33.7 percent in fiscal year 2015/16 is
estimated to remain at 42.5 percent in current fiscal year 2016/17.
8. In the fiscal year 2016/17, per capita GDP at constant prices is estimated
to grow by 6.1 percent to Rs. 28,733 as compared to that of previous
fiscal year. Per capita gross national income has reached US Dollar 862
in fiscal year 2016/17 which was US Dollar 757 in the previous fiscal
year.
9. Inflation has remained low in fiscal year 2016/17 as compared to last few
years. In the first eight months of the current fiscal year, consumer price
inflation stood at 5.1 percent on average. Such rate was 9.7 percent in the
corresponding period of the previous fiscal year. Growth in agricultural
production and improvement in overall supply situation are attributable
for such a low inflation rate in the current fiscal year.
10. Food inflation has remained negative by 0.4 percent while non-food
inflation grew by 5.6 percent in the first eight months of the current
fiscal year. Such inflation rates were 10.3 percent and 10.2 percent
respectively during the corresponding period of the previous fiscal year.
On region-wise basis, consumer price inflation in Kathmandu has
remained at 1.9 percent, 5.9 percent in hills, 3.7 percent in the mountains
and 2.8 percent in Terai.
11. Of the government budgetary allocation of Rs. 1,048.92 billion for fiscal
year 2016/17, total expenditure in the first eight months has been Rs.
400.16 billion. Of this, recurrent expenditures stood at Rs. 293.42 billion,
capital expenditure at Rs. 67.83 billion and financing at Rs.38.91 billion.
Of the total expenditure, the share of recurrent expenditure stood at 73.32
percent, capital expenditure at 16.95 percent and financing at 9.73
percent. The growth of recurrent expenditure and capital expenditure is
48.2 percent and 148.5 percent respectively in the first eight months of
fiscal year 2016/17 as compared to the corresponding period of the
previous year.
12. Of the targeted gross revenue mobilization of Rs. 565.90 billion in the
fiscal year 2016/17, Rs. 353.91 billion has been mobilized in the first
eight months. This amount is 53.16 percent higher than that of the
corresponding period of previous fiscal year. Of the total revenue
collection, the share of tax revenue is 93.18 percent while that of non-tax
revenue is 6.82 percent. The ratio of revenue to GDP stood at 21.45
percent in previous fiscal year 2015/16.

xii
13. Foreign aid commitment totals Rs. 212.04 billion in the first eight
months of fiscal year 2016/17. This aid amount is higher by 35.76
percent as compared to that of corresponding period of the previous
fiscal year. Of the total foreign aid commitment, the share of grant stood
at 21.5 percent and that of loan is 78.5 percent.
14. Total outstanding public debt has stood at Rs. 627.79 billion in mid-
March 2017. Of the total debt, the share of domestic and foreign debt has
remained at 38.1 percent and 61.9 percent respectively. The ratio of
outstanding public debt to GDP stood at 24.1 percent in mid- March
2017.
15. Monetary aggregates have remained at the desired level in the current
fiscal year. Broad money supply grew by 9.5 percent in the first eight
month of the current fiscal year. Such growh was 11.5 percent in the
corresponding period of the previous fiscal year.
16. With the expansion in economic activities, credit to the private sector
has increased by 16.2 percent to Rs. 1966.19 billion in the first eight
month of current fiscal year. Such growth had stood at 11.6 percent in the
corresponding period of the fiscal year. Likewise, deposit of banks and
financial institutions has increassed by 8.3 percent to Rs. 2183.30 billion
in the first eight month of current fiscal year. Such growth rate had stood
at 8.4 percent in the corresponding period of previous fiscal year. As a
result, credit deposit ratio has reached 84.80 percent in mid-March 2017.
17. Financial sector has remained stable. The non-performing loan ratio of
banks and financial institutions stood at 2.13 percent in mid-March 2017.
Monetary and financial instruments have been adopted in order to ensure
an adequate flow of credit to the private sector along with the increase in
credit to deposit ratio of the banks and financial institutions. However,
the implementation of these intruments is temporary. Likewise, the
situation of the acess to finance is improving.
18. Merchandise exports has increased by 12.8 percent to Rs. 48.22 billion
in the first eight months of the fiscal year 2016/17. Likewise,
merchandise imports has increased by 44.2 percent to Rs. 628.56 billion.
The growth of both merchandise exports and imports was negative in the
corresponding period of the previous year. As a result, trade deficit rose
by 47.6 percent to Rs. 580.34 billion in the first eight months of the
current fiscal year. Such a high growth of imports is the result of the

xiii
speed up in reconstruction work, increase in capital expenditure and the
expansion of credit to the private sectors among others.
19. The situation of external sector stability has remained satisfactory.
Overall Balance of Payments (BoP) has been in surplus of Rs.50.06
billion in the first eight months of the fiscal year 2016/17. As a result,
the gross foreign exchange reserves increased by 3.4 percent to Rs.
1074.27 billion in mid-March 2017 as compared to mid-July 2016. On
the basis of the imports of the first eight months, such level of reserve is
sufficient to cover the imports of merchandise goods and services of
about 12 months.
20. The remittance inflow grew by 5.3 percent to Rs. 450.00 billion in the
first eight months of the fiscal year 2016/17. The ratio of remittances to
GDP was 29.6 percent in fiscal year 2015/16.
21. Capital market has witnessed fluctuation and expansion due to the
reforms in securities market, capital hike plans of banks and financial
institutions, and the expansion in overall economic activities. NEPSE
Index, which stood at 1,318.9 points in mid-March 2016 had reached
1,718.2 points in mid-July 2016 and slid back to 1,355.2 points in mid-
March 2017. Likewise, market capitalization has reached Rs. 1,537
billion in mid-March 2017. Thus, the ratio of market capitalization to
GDP remained at 59.13 percent.
22. Food production has increased as a result of favorable monsoon and easy
availability of agricultural inputs including chemical fertilizer. It is
estimated to grow by 13.0 percent to 9.74 million metic ton in fiscal year
2016/17 as compared to the previous fiscal year. Of the food production,
paddy/rice production recorded the highest growth of 21.6 percent
reaching 5.23 million metric ton in the current fiscal year. Likewise,
production of other food crops, cash crops, industrial and spice crops
have also increased. Irrigation facility has been expanded to additional
9,775 hectares of land in the current fiscal year.
23. Forests area has stood at 40 percent of Nepal’s total land. In Forest and
Soil Conservation sector, there has been an improvement in forest area
expansion as well as the protection of wildlife and environment as a
result of the continuity in the various programs such as the restoration of
forest land by evacuating encroached forest areas and the expansion of
community based forest, lease hold forest and protected ares.

xiv
24. Poor household identification program has been completed in 25
districts. The program has been initiated in the remaining 50 districts too.
Population living below the poverty line has decreased due to the
employment creation and implementation of self-employment oriented
programs. Likewise, internalization of programs and resource
management work have been initiated in order to achive the goal of
sustainable development.
25. Employment is estimated to grow by more than 3 percent as a result of
the economic growth of the current fiscal year. The number of individuls
going for foreing employment by obtaining work permit is 186,166 in the
first eight months of current fiscal year. Of the labor force going for
foreign employment, 24.5 percent have been trained workers.
26. A total of 6,834 industries have been registered by first eight months of
the fiscal year 2016/17 thereby creating employment for about 536,000
individuals. The share of energy oriented industries stood at 52.9 percent
in the total industry’s capital of Rs. 1,274.19 billion. Likewise, in the first
eight months of the fiscal year 2016/17, a sum of Rs. 10.15 billion
equivalent of foreign investment has been approved for a total of 213
industries. A total of 19,686 cottage and small scale industries have been
registered in the review period.
27. Tourism sector has expanded with the improvement in overall economic
activities in the current fiscal year. In 2016, the number of tourist arrival
has increased by 40 percent to 753,000 as compared to the previous year
2015. Such number had decreased by 32 percent in previous year.
28. Overall energy supply situation has remained encouraging in the fiscal
year 2016/17. Of the total energy consumption of 8,257 Tons of Oil
Equivalent (ToE) in the first eight months of the current fiscal year, the
shares of traditional, commercial and renewable energy stood at 74.5
percent, 22.0 percent and 3.5 percent respectively. During the same
period, electricity generation has increased by 12.3 percent (105.3
Megawatts) reaching a total of 961.2 Megawatts. Electricity leakage has
decreased by 2.8 percentage points. As a result, Kathmandu and Pokhara
have been made load shedding free zones while load shedding hours
have been reduced in other areas as well.
29. Total road network reached to 29,157 Km with the construction of
additional 849 Km roads in the first eight months of the current fiscal
year 2016/17. Of this, the share of black topped road is 42.2 percent.

xv
Likewise, the length of local level roads reached 57,632 Km with the
additional construction of 4,332 Km roads in this category. Of this road
network, the share of earthen road stood at 74.2 percent. Construction of
railway transport and national pride projects have got priority. Likewise,
with a notable expansion in the telecommunication sector, telephone
density has reached 130.35 percent with total number of telephone
subscribers reaching 34,534,000.
30. The situation of social sector including education, health, and drinking
water has been on progressive trend. In academic year 2016, net
enrolment rates at basic level (1-5), basic level (6-8) and secondary level
education (9-12) stood at 96.9 percent, 80.9 percent and 59.8 percent
respectively. The total number of students at basic level education stood
at 5,995,000 while that of secondary level was 959,000. Similarly, the
total number of teachers (including those of institutional schools) at basic
level and secondary level has reached 252,000 and 40,200 respectively.
Student teacher ratios at basic and secondary levels have consequently
reached 39 and 24 respectively.
31. Demographic and health survey, 2016 has been completed. As per this
survey, new-natal mortality rate (per thousand within 28 days) is 21,
infant mortality rate (per thousand within 1 year) is 32, and child
mortality rate (per thousand children below 5 years) is 39. Similarly,
children receiving full immunization reached 78 percent while women
receiving maternity services from skilled midwives reached 58 percent.
A total of about 90,900 health workers have been delivering services
through 4,600 health institutions in the first eight months of the current
fiscal year 2016/17.
32. Post earthquake reconstruction work has gained momentum in the
current fiscal year. Of the total 653,913 beneficiaries identified in
earthquake most affected 14 districts, grant agreements have been signed
with 554,614 house owners in the first eight months of current fiscal year
2016/17. Likewise, Rs. 50,000 as first installment has been deposited at
bank accounts of 533,691 beneficiaries. A task of providing cash amount
as second and third installments to home owners has been initiated, who
have started construction after meeting the criteria. Likewise,
reconstruction works are underway at damaged educational institutions,
health institutions, archaeological heritages and government buildings.

xvi
Macroeconomic Indicators
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
Economic Activities
Annual %
Real GDP (At Basic Prices) 5.8 3.9 4.26 3.85 4.61 3.76 5.72 2.97 0.01 6.94
Change
Annual %
Agriculture 5.82 2.99 2.01 4.48 4.63 1.11 4.64 1.12 -0.01 5.32
Change
Annual %
Industry 1.64 -0.63 4.05 4.4 2.95 2.69 6.92 1.42 -6.45 10.97
Change
Annual %
Service 7.35 6 5.83 3.42 5.01 5.73 6.22 4.63 2.06 6.9
Change
Per Capita GDP (At Constant Annual %
4.64 3.09 3.37 2.48 3.39 2.74 4.58 1.95 -0.92 6.07
Price) Change
Per Capita National Income (At Annual %
4.63 3.25 3.65 2.12 3.72 3.18 5.84 1.73 -0.91 5.2
Constant Price) Change
Annual %
GDP (At Current Price 12.1 21.2 20.7 14.6 11.7 11 15.9 8.4 5.5 15.7
Change
Gross National Income (At current Annual %
12 21.4 20.2 14.4 12 10.9 16.9 8.4 5.4 15.1
Price) Change
Gross National Disposable Income Annual %
16.5 24.2 18.8 13.3 16.6 12.4 19.2 9.3 6.4 13.4
(At Current Price) Change
Per Capita GDP US Dollar 491 497 610 714 702 708 725 766 746 853
Per Capita GNI US Dollar 496 502 614 718 708 714 737 778 757 862
Per Capita GNDI US Dollar 606 628 759 879 902 921 970 1033 1015 1139
Rs. in
Real GDP (At Basic Prices) 522 543 566 588 615 638 674 694 694 743
Billion
Rs. in
Agriculture 198 204 208 217 227 230 241 243 243 256
Billion
Rs. in
Industry 86 85 89 93 95 98 105 106 99 110
Billion
Rs. in
Service 261 277 293 303 319 337 358 374 382 408
Billion
Rs. in
Real GDP (At Producer's Prices) 565 590 619 640 670 698 740 764 767 825
Billion

xvii
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
Per Capita GDP (In 2000/01 Price) Rs. 22110 22793 23561 24144 24962 25646 26820 27342 27089 28733
Per Capita Gross National Income
Rs. 22567 23301 24152 24664 25582 26397 27939 28422 28163 29627
(In 2000/01 Price)
Rs. in
GDP(At Producer's Current Price) 816 988 1193 1367 1527 1695 1965 2130 2247 2599
Billion
Gross National Income(In Current Rs. in
824 1000 1202 1374 1534 1708 1997 2164 2281 2627
Price) Billion
Gross National Disposable Rs. in
1006 1250 1485 1682 1962 2206 2629 2874 3060 3471
Income(In Current Price) Billion
Per Capita GNI (In Current Price) Rs. 32257 38626 45782 51879 57337 62764 72413 77426 80525 91488
Per Capita GNDI (In Current
Rs. 39417 48262 56549 63499 73082 81051 95308 102823 107992 120869
Price)
Gross Consumption/ GDP In % 90.2 90.6 88.5 86 89 89.4 88.1 90.8 96.2 89.7
Gross Domestic Saving/GDP In % 9.8 9.4 11.5 14 11 10.6 11.9 9.2 3.8 10.3
Gross National Saving/GDP In % 33.2 35.9 35.9 37 39 40.7 45.7 44.1 40 43.8
Gross Fixed Capital
In % 21.9 21.4 22.2 21.4 20.8 22.6 23.5 28 28.8 33.8
Formation/GDP
Government Investment in Gross
In % 4 4.5 4.5 4.7 4.7 4.4 4.8 5.2 7.1 7.3
Fixed Capital Formation/GDP
Private Investment in Gross Fixed
In % 17.8 16.9 17.7 16.7 16.1 18.1 18.7 22.8 21.7 26.5
Capital Formation/GDP
Gross Capital Formation/GDP In % 30.3 31.7 38.3 38 34 37.3 41 39 34 43
Total Population Million 25.5 25.9 26.3 26.5 26.9 27.2 27.6 28 28.3 28.7
Price
Annual %
Consumer Price Index3 5.9 12.6 9.6 9.6 8.3 9.9 9.1 7.2 9.9 5.9
Change
Annual %
GDP Deflator2 5.6 16 14.4 11 7 6.1 9 5 5 8
Change
Annual %
Primary Sector 3.3 21.4 25.1 15.6 1.4 4.6 6.4 4.1 4.7 2
Change
Annual %
Secondary Sector 11 14 9.2 8.9 8.3 8.2 5.9 6 7.2 7.5
Change
Annual %
Service Sector 5.3 12.9 8.9 8.2 10.1 6.5 11.7 5.4 4.4 11.6
Change

xviii
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
4 Annual %
Whole Sale Price Index 9 12.8 12.6 9.9 6.4 9 8 6.1 6.3 -
Change
Annual %
Salary and Wages Rate Index5 9.7 15.3 17.2 18 27 9.2 13.7 8.4 14.9 -
Change
Annual %
Salary 10.9 10.5 0 20.2 0 19.3 0 25.4 8.4 -
Change
Annual %
Wages 9.4 16.9 24 16.3 29.6 29.6 11.5 11.2 8.4 -
Change
Public Finance
Annual %
Revenues 22.7 33.3 27.2 11.4 23.2 21.1 20.5 13.8 18.7 20.2
Change
Annual %
Total Government Expenditures 20.8 36.1 18.2 13.7 14.8 5.7 21.3 22.2 13.1 55.7
Change
Annual %
Recurrent Expenditure 18.6 39.7 18.2 12.6 15.8 1.6 22.7 11.8 9.4 51.3
Change
Annual %
Capital Expenditure 34.7 36.6 23.5 16.8 8.6 6.2 22.2 33.2 38.7 112.6
Change
Financing 14.6 59.3 2.3 6.2
Annual %
Principal Payments -2.2 14.9 -2.1 -6.6 17.1 74.3 19.2 53.9 7 -36.9
Change
Debt Servicing (Principal & Annual %
-0.7 18.6 5.3 5.4 17.9 38.4 10.3 36.7 4.2 -13.9
Interest) Change
Revenue/GDP In % 13.2 14.5 14.9 14.7 16 17.5 18.2 19.1 21.4 22.3
Tax Revenue/GDP In % 10.4 11.8 13.4 13 13.9 15.3 15.9 16.7 18.7 19.5
Non-Tax Revenue/GDP In % 2.8 2.7 1.5 1.5 2.1 2.2 2.2 2.3 2.7 2.8
Total Government
In % 18.4 19.8 22.2 21.8 21.6 22.2 22.1 25 26.7 36
Expenditures/GDP
Recurrent Expenditure/GDP In % 11.2 12.9 12.7 15.4 15.9 14.6 15.5 15.9 16.5 21.6
Capital Expenditure/GDP In % 6.6 7.4 7.6 3.5 3.4 3.2 3.4 4.2 5.5 10.1
Financing 3.3 4.8 4.7 4.3
Principal Payments/GDP In % 2 1.9 1.5 1.3 1.3 2.1 2.1 3 3.1 1.7
Debt Servicing (Principal &
In % 2.8 2.7 2.4 2.2 2.3 2.9 2.7 3.5 3.4 2.5
Interest)/GDP

xix
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
Budget Deficit/GDP In % 4.1 5 3.5 3.6 3.4 1.5 2.0 3.8 3.1 6.5
Rs. in
Total Outstanding Debt 375.6 425.1 440.4 443.7 523.2 545.3 553.5 544.9 627.8 624.5
Billion
Rs. in
Outstanding Domestic Debt 116 125.7 148.1 184.2 214 211.9 206.7 201.7 239 233.2
Billion
Outstanding Foreign Debt Rs. in
250 277 256.2 259.6 309.3 333.4 346.8 343.3 388.8 391.3
Billion
Per Capita Outstanding Debt Rs. 14711 16416 16773 16749 19488 20041 20068 19493 22159 21749
Total Outstanding Debt/GDP In % 46.1 40.8 33.9 32.5 34.3 32.2 28.2 25.6 27.9 24.1
Outstanding Domestic Debt/GDP In % 15.4 15 12.4 13.5 14 12.5 10.5 9.5 10.6 9
Outstanding Foreign Debt/GDP In % 30.6 27.9 21.5 19 20.2 19.7 17.7 16.1 17.3 15.1
Outstanding Foreign Debt/Revenue In % 232.3 197.9 144 130.8 126.6 112.6 97.3 84.6 80.7 67.5
Debt Service (Principal & Interest
In % 24.9 21.1 15.2 14.3 14.5 19.7 17.8 21.7 20.7 5.7
payment)/Recurrent Expenditure
Outstanding Foreign Debt/Foreign
In % 117.6 97.4 95.3 95.4 70.4 62.5 52.1 41.7 37.4 35.9
Exchange Reserve
Monetary Sector
Annual %
Domestic Credit 21.3 27.1 17.2 14.6 9.3 17.2 12.7 16.2 18.2 25
Change
Annual %
Private Sector Credit 24.3 29 14.2 13.9 11.3 20.2 18.3 19.4 23.2 20
Change
Annual %
Net Credit to Government 11.2 20.4 26.9 19.7 -0.3 3 -15.4 -10.4 -31 128.8
Change
Share of the Private Sector credit in
In % 77.7 78.9 80.2 79.9 81.4 83.5 87.6 90 93.7 90
the Banking Sector Credit
Annual %
Narrow Money Supply (M1) 21.6 27.3 11 5.2 18.6 14.4 17.7 19.7 18.5 14
Change
Annual %
Currency 19.9 25.5 13 1.9 20.1 14.9 16.2 18.7 21.3 17
Change
Annual %
Current Deposits 25 30.5 7.6 11.4 15.9 13.4 20.4 21.5 13.7 8.4
Change
Annual %
Broad Money Supply (M2) 25.2 27.3 14.1 12.3 22.7 16.4 19.1 19.9 19.5 16
Change
Fixed and Saving Deposits Annual % 27 27.3 15.5 14.8 24 17 19.5 20 19.8 16.6

xx
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
Change

Total Domestic Credit/GDP In % 53.6 56.2 66.8 66.2 64.8 68.8 66.9 71.7 80.3 86.9
Private Sector Credit/GDP In % 41.7 44.4 53.5 52.9 52.7 57.4 58.6 64.5 75.3 78.1
Net Government Credit/GDP In % 10.7 10.6 11.4 11.9 10.6 9.9 7.2 6 3.9 7.7
Narrow Money Supply/GDP In % 18.9 19.9 17.8 16.2 17.2 17.7 18.1 19.9 22.4 22.1
Current Deposits/GDP In % 6.6 7.2 6.1 5.9 6.1 6.2 6.5 7.3 7.8 7.3
Broad Money Supply/GDP In % 60.7 63.8 68.8 67.1 74 77.6 79.7 88.2 99.9 100.2
Fixed and Saving Deposits/GDP In % 41.8 43.9 51 50.8 56.4 59.8 61.6 68.2 77.5 78.1
External Sector
Annual %
Export (Goods) -0.2 14.2 -10.2 5.8 15.4 3.6 19.6 -7.3 -17.8 12
Change
Annual %
Import (Goods) 14 28 31.6 5.8 16.5 20.6 28.3 8.4 -0.1 25.7
Change
Export/Import Ratio In % 26.7 23.8 16.2 16.2 16.1 13.8 12.9 11 9.1 8.1
Annual %
Trade Deficit 20.2 33.3 44.6 5.8 16.7 23.9 29.7 10.8 2 27
Change
Annual %
Income from Tourism 84 49.9 0.6 -12.5 24.8 11.4 35.6 15.2 -21.8 30
Change
Annual %
Expenditure on Tourism 32 50.5 2.8 -14.4 -6.8 53.7 6.5 26.1 6.1 25
Change
Rs. in
Remittance Income 142.7 209.7 231.7 253.6 359.6 434.6 543.3 617.3 665.1 699
Billion
Annual %
Remittance Income 42.5 47 11 9.4 41.8 20.9 25 13.6 7.7 5.1
Change
Rs. in
Current Account Balance 23.7 41.4 -28.1 -12.9 76 57 89.7 108.3 140.4 -4.6
Billion
Export/GDP In % 7.3 6.9 5.1 4.7 4.9 4.5 4.7 4 3.1 3
Import/GDP In % 27.2 28.8 31.4 29 30 32.8 36.4 36.4 34.4 37.4
Trade Deficit/GDP In % -19.9 -21.9 -26.3 -24.3 -25.4 -28.3 -31.7 -32.4 -31.3 -34.4
Income from Tourism/GDP In % 2.3 2.8 2.4 1.8 2 2 2 2.5 1.9 2.1

xxi
Fiscal Year
Indicators
Units 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17P
Expenditure on Tourism/GDP In % 2.6 3.2 2.7 2 2 2.3 2.1 2.5 2.5 2.7
Remittance Income/GDP In % 17.5 21.2 19.4 18.5 23.5 25.6 27.7 29 29.6 26.9
Current Account Balance/GDP In % 2.9 4.2 -2.4 -0.9 5 3 4.6 5.1 6.2 -0.2
Rs. in
Balance of Payments 29.7 44.8 -3.3 4.09 131.63 68.94 127.13 145 189 51
Billion
Rs. in
Foreign Exchange Reserve 212.6 286.5 268.9 272.2 439.5 533.3 665.4 824.1 1039.2 1090.2
Billion
Foreign Exchange Reserve Annual %
28.8 34.8 -5.4 1.2 61.5 21.4 24.8 23.8 26.1 4.9
change

Capacity of Reserves to cover


Months 11.7 12.2 8.7 8.4 11.6 10.2 11.47 12.98 16.48 13.76
Import of Goods
Capacity of Reserves to cover
Months 9.4 10 7.4 7.3 10.3 8.7 9.97 11.19 14.09 11.88
Import of Goods and Services
Per US Dollar
Exchange Rate6 65.02 76.88 74.54 72.27 81.02 87.96 98.25 99.49 106.35 106.94
=Rs.

1
Annual Preliminary Estimates2 Base Year 2000/01=100; 3 Base Year 2014/15=100; 4 Base Year 1999/00=100, 5 Base Year 2004/05=100 6 Annual Average of Bying
and Selling Rates
Including the data of Development Banks and Finance Companies since mid-July, 2010
Based on GFS 2001 classification of IMF since FY 2011/12

Note: Ratio of GDP is calculated with GDP at the prevailing producers’ price
Note: Financial Management Expenditure prior to FY 2014/15 was included in Capital Expenditure

xxii
Major Challenges of Economy
1. It is a challenging task to graduate the country at the middle income
status by 2030 and achieve the sustainable development goals by ending
poverty, inequality, unemployment and dependency through high,
sustained and broad-based inclusive growth.

2. It is a daunting challenge to develop a socialistic oriented economy as


envisoned in the constitution through formulation and implementation of
economic policy including the optimum utilization and management of
the means of production along with their distribution and redistribution
for a robust and sustainedeconomic growth.

3. There is a challenging task of economic development including


macroeconomic stability by creating the foundation for the mobilization
of resources as well as the availability, assurance and equitable
distribution of the means and resources at the federal, provincial and
local levels in line with federal governance system.

4. There remains a challenge of increasing domestic production through


industrial infrastructure, decent labor relation, energy availability and the
production of quality products. Likewise, creating investment friendly
environment for increasing the production of goods and services having
competitive and comparative advantage as well as for increasing the
domestic and foreign investment is also a daunting task.

5. It is a challenging task to reduce dependency on foreign employment by


creating employment opportunities at home and reaping demographic
dividend by developing human resources as per the national needs and
demand.

6. Ending load shedding permanently by building large hydro projects or


reservoir based hydroelectricity projects to reduce investment and
production risks on hydroelectricity that may emanate from the climate
change remains a challenge.

7. It is a challenge to achieve high and sustained economic growth by


concentrating investment on the key drivers of growh agriculture,
tourism, hydroelectricity and infrastructure.

8. Modernization and commercialization of agriculture by increasing


production and productivity through an adequate arrangement of

xxiii
agricultural inputs such as improved seeds, fertilizers, irrigation,
agricultural credit, technology, and skilled human resource is a
challenging task.

9. Formulating strategies and work plans of scientific land-use policy and


managing land effectively by resolving problems of uncontrolled land
use and encroachment of public land have been daunting tasks.

10. There remains a challenge of developing infrastructure at federal,


provincial and local level as per the federal structure. Likewise,
Interlinking the centers of local level and linking these centers with
provinces and federation is also a challenge.

11. Timely completion of reconstruction works by ensuring budget for the


development of modern settlement and the reconstruction of earthquake
damaged private buildings, schools, health post, public buildings, cultural
heritages and, physical and social infrastructures has been a challenge.

12. It is challenging to increase investment bearing capacity in line with


sustainable fiscal structure and resource mobilization for the
implementation of state policies and fundamental rights envisoned in
constitution.

13. It is a challenging task to enhance federal finance by developing the


revenue sytem as per the federal structure and increasing the ratio of tax
revenue to GDP through the development of a neutral and transparent tax
system as well as voluntary compliance of tax.

14. Reducing dependency on foreign aid for country’s development finance


by enhancing the development capacity and utilizing foreign aid for
national benefit and priority sectors is a challenging task.

15. There remains a challenge of containing inflation rate within desired


limit by effectively managing supply through market monitoring and
price information system as well as managing of the storage and
distribution system of all the goods including petroleum products.

16. Tasks of carrying out social security programs in an integrated way,


mobilizing funds in line with investment plans in a coordinated way, and
taking grant-based social security programs to the target groups are full
of challenges.

xxiv
17. Creating dynamism in the economy by expanding the size of formal
economy through enhancing the access to finance is also a challenging
task. Likewise, it is challenging to make a provision of at least a bank
branch in 744 centers at local level established in the federal system and
implement access to finance programs based on innovative financial
technology and financial literacy.

18. There is a challenge to achive balanced and inclusive development by


addressing geographically between village and towns, mountains, hills
and terai as well as on the basis of castes, groups and genders.

xxv
1. Overall EconomicSituation

World economy is improving with the recovery of developed countries.


Inflationary pressure persists in developed, emerging and developing
economiies owing to the increase in commodity prices including the energy in
the global market. In this context, overall economic activities of Nepal have
expanded in fiscal year 2016/17. Thus, the economic gowth for current fiscal
year is estimated 6.94 percent. Favorable mansoon, increased capital
expenditures, conducive investment climate, energy availability including
improved supply situation are attributable to high economic growth. This
growth rate is the highest recorded since FY 1993/94 and more than the
targeted growth rate of 6.5 percent for FY 2016/17. The economy, which had
affected severely and contracted due to devastating earthquake and disruption
in border points has almost recovered. Moreover, the situation of
macroeconomic stability has remained satisfactory. Inflation rate has remained
low since last few years while Balance of Payment has remained in surplus.
However, it is a daunting task to achieve higher economic growth by making it
more inclusive while managing the federal system in the coming years.
World Economy
Economic Growth
1.1. World Economic Outlook of International Monetary Fund (IMF)
published in April 2017 projects that the world economy grows by 3.5
percent in 2017. Such growth stood at 3.1 percent in 2016. The world
economy is projected to expand marginally due to the expansion of
economic activities in developed countries and high contribution of
emerging and developing economies to global economic growth.
1.2. Developed economies that grew by 1.7 percent in 2016 is projected to
expand by 2.0 percent in 2017. Of the developed countries, the US
economy that grew by 1.6 percent in 2016 is projected to grow by 2.3
percent in 2017. Likewise, Euro area that had expanded by 1.7 percent in
2016 is projected to grow at the same rate in 2017. Japanese economy
that grew by 1.0 percent in 2016 is estimated to grow by 1.2 percent in
2017 due to increase in net exports.

1
Table 1 (a) : World Economic Growth Rate (Percent)
Projection
Regions 2014 2015 2016
2017 2018 2022
World Output 3.5 3.4 3.1 3.5 3.6 3.8
Developed Economies 2.0 2.1 1.7 2.0 2.0 1.7
Emerging and Developing Economies 4.7 4.2 4.1 4.5 4.8 5.0
Emerging and Developing Asia 6.8 6.7 6.4 6.4 6.4 6.3
Middle East and North African Countries 2.7 2.6 3.8 2.3 3.2 3.5
Emerging and Developing Europe 3.9 4.7 3.0 3.0 3.3 3.1
EU Member Countries 1.7 2.4 2.0 2.0 1.8 1.7
Source: International Monetary Fund, April, 2017

1.3. Emerging and developing economies is projected to grow by 4.5 percent


in 2017. Such growth rate was 4.1 percent in 2016. Indian economy that
grew by 6.8 percent in 2016 is estimated to expand by 7.2 percent in
2017. India is projected to expand at a high rate due to the introduction of
economic reform programss, convenient supply situation and policy
reforms. Likewise, according to IMF, Chinaese economy that grew by
6.7 percent in 2016 is projected to grow by 6.6 percent in 2017.
Table 1 (b) : Economic Growth in Neighboring Countries(Percent)
Projection
Countries 2014 2015 2016
2017 2018 2022
Bangladesh 6.3 6.8 6.9 6.9 7.0 7.0
Bhutan 4.0 6.1 6.2 5.9 11.2 6.3
India 7.2 7.9 6.8 7.2 7.7 8.2
Maldives 6.0 2.8 3.9 4.1 4.7 4.7
Nepal 6.0 2.7 0.6 5.5 4.5 3.8
Sri Lanka 4.9 4.8 4.3 4.5 4.8 5.3
Pakistan 4.1 4.0 4.7 5.0 5.2 5.9
Afganistan 1.3 0.8 2.0 3.0 3.5 5.5
China 7.3 6.9 6.7 6.6 6.2 5.7
Source: International Monetary Fund, April, 2017

1.4. All South Asian countries except that of Bhutan and Bangladesh are
projected to grow in 2017 as compared to that of 2016. Likewise, all
other south Asian counries except India, Sri Lanka and Nepal had
expanded marginally in 2016 as compared to 2015.

Price Situation
1.5. IMF has projected that the inflation in developed economies remains 2.0
percent in 2017. Such rate was 0.8 percent in 2016. Likewise, inflation in
emerging and developing economies that stood at 4.4 percent in 2016 is
projected to reach 4.7 percent in 2017. Inflation is projected to rise in

2
developed and developing economies due to the increased commodity
prices including energy price in global markets.
Table 1 (c) : CPI Based Global Inflation Rate (Percent)
Projection
Regions 2014 2015 2016
2017 2018 2022
Developed Economies 1.4 0.3 0.8 2.0 1.9 2.1
Emerging and Developing Economies 4.7 4.7 4.4 4.7 4.4 4.1
Emerging and Developing Asia 3.5 2.7 2.9 3.3 3.3 3.7
Emerging and Developing Europe 4.1 3.2 3.2 5.7 5.5 4.6
Middle East and North African Countries 6.6 5.9 5.4 8.1 7.7 4.9
Developing Economies with Lower Income 7.2 7.2 9.0 9.4 8.6 7.2
International Monetary Fund, April, 2017

1.6. Of South Asian countries, inflation in Nepal, India and Bhutan is


projected to fall in 2017 as compared to that of 2016. Likewise, among
the South Asian countries, the inflation rate of Nepal, Bangladesh, Sri
Lanka and Afganistan had surged while that of other countries had
declined marginally in 2016 as compared to 2015.
Table 1 (d) : Trend of CPI Inflation in China and South Asia (Percent)
Projection
Countries 2014 2015 2016
2017 2018 2022
Bangladesh 7.0 6.2 6.4 6.4 5.8 5.6
Bhutan 9.9 6.3 4.2 4.1 4.6 4.7
India 5.9 4.9 4.9 4.8 5.1 5.0
Maldives 2.5 1.4 0.9 2.5 1.9 2.5
Nepal 9.0 7.2 9.9 6.7 7.6 6.5
Sri Lanka 3.3 0.9 3.7 5.8 5.0 5.0
Afganistan 4.7 -1.5 4.4 6.0 6.0 6.0
Pakistan 8.6 4.5 2.9 4.3 5.0 5.0
China 2.0 1.4 2.0 2.4 2.3 3.0
International Monetary Fund, April, 2017

1.7. The inflation rate of China that stood at 2.0 percent in 2016 is projected
to grow by 2.4 percent in 2017 due to slowdown in the industrial sector.
Likewise, Indian inflation, which stood at 4.9 percent in 2016 is
projected to decline marginally to 4.8 percent in 2017.

3
World Trade
1.8. As per IMF projection, the world trade of goods and services, which
grew by 2.2 percent in 2016, is projected to grow by 3.8 percent in 2017.
World trade has recorded growth with the recovery of developed
economies.
Table 1 (e) : World Trade Situation (Annual Percentage Change)
Projection
Trade Economies 2014 2015 2016
2017 2018
Total Trade Global 3.7 2.7 2.2 3.8 3.9
Developed Economies 3.9 3.7 2.1 3.5 3.2
Export
Emerging and Developing Economies 2.8 1.4 2.5 3.6 4.3
Developed Economies 3.9 4.4 2.4 4.0 4.0
Import
Emerging and Developing Economies 4.0 -0.8 1.9 4.5 4.3
Developed Economies 0.3 1.8 0.9 -0.5 0.1
Terms of Trade
Emerging and Developing Economies -0.6 -4.2 -1.2 1.3 -0.4
Source: International Monetary Fund, April 2017

1.9. Exports of developed economies that grew by 2.1 percent and that of
emerging and developing economies by 2.5 percent in 2016 are projected
to grow by 3.5 percent and 3.6 percent respectively in 2017. Likewise,
imports of developed economies and those of emerging and developing
economies are projected to grow by 4.0 percent and 4.5 percent
respectively in 2017. Such growth rates were 2.4 percent and 1.9 percent
respectively in 2016. Though both the exports and imports of goods and
services had increased, imports have registered higher growth in 2017.

National Economy

Economic Growth
1.10. Macroeconomic indicators related to national accounts such as GDP,
consumption, savings and investments are prepared by measuring various
aspects of the economy for formulation of economic policies, and regular
monitoring and evaluation of economic activities. Such indices provide
real picture of the current situation and guide a future course of action.
1.11. From the perspective of economic growth, current fiscal year 2016/17
has been encouraging. Economy has expanded as a result of increase in
agricultural production due to favorable monsoon, speed up in
reconstruction works and resolution of energy crisis. Likewise, additional
factors contributing in the expansion of economic activity inclue the
commercialization of agriculture, stability oriented politics, reduction in
closures and strikes, and reform in government policies and programs.

4
Chart 1 (a) : Gross Domestic Product Trend

Source: Central Bureau of Statistics

1.12. GDP at base prices is estimated to grow by 6.94 percent in current fiscal
year 2016/17. Such growth rate remains 2.97 percent in FY 2014/15 and
at 0.01 percent in 2015/16.

1.13. Economic growth rate has averaged 4.2 percent in the last ten years. The
growth rate remained low in most of the fiscal year. The growth rate of
6.94 percent in the current fiscal year is the highest recorded growth in
the last ten years. This growth rate is the highest since FY 1994/95.
Likewise, agriculture and non-agriculture sector growth averaged 3.2
percent and 4.7 percent respectively in last ten years. Similarly, industrial
and service sector growth averaged 2.8 percent and 5.3 percent
respectively in the last ten years. In this period, the growth of agriculture
and industrial sector was not achieved as expected. However, the growth
rate of the service sector remained satisfactory.

Structure of GDP
1.14. In fiscal year 2016/17, the share of the agriculture sector in GDP stood
at 29.37 percent, while that of non-agriculture sector was 70.63 percent.
The share of the agriculture sector in GDP has been in declining trend in
the last 15 years. Such share was 34.3 percent on average during the
period from FY 2002/03 to FY 2006/07 and declined to 34.1 percent in
next consecutive five years (FY 2007/08-FY 2011/12). It was declined
further to 31.4 percent in subsequent five years' period from FY 2012/13
to FY 20016/17. Likewise, the share of the non-agriculture sector

5
averaged 65.7 percent, 65.9 percent, and 68.6 percent respectively during
the period FY 2002/03-FY 2006/07, FY 2007/08-FY 2011/12 and FY
2012/13-FY 2016/17. Nepales economy is in the stage of structural
transformation as a result of decreasing share of agriculture sector against
gradual increment in the share of non-agriculture sector in GDP. The
service sector has expanded at a high rate in the non-agriculture sector.
Chart 1 (b) : Structure of Gross Domestic Product

Source: Central Bureau of Statistics

Table 1 (f) : Share in Gross Domestic Product


(Five Year’s Average, In Percent)
Sector 2002/03-06/07 2007/08-11/12 2012/13-16/17
Agriculture 34.3 34.1 31.4
Non-Agriculture 65.7 65.9 68.6
Source: Central Bureau of Statistics

Sector-wise Production
Primary Sector
1.15. Primary sector incorporated activities of the agriculture and forests,
fishery, and mines and quarrying. Contribution of the primary sector to
GDP is estimated to remain at 30 percent in fiscal year 2016/17. Its
contribution to GDP has been gradually declining for the last ten years
and thus declined to 32.2 percent in the previous fiscal year 2015/16.
Such contribution has averaged 33.7 percent in the last 10 years. Growth
of gross value added of the primary sector is estimated to remain at 5.32
percent in the current fiscal year 2016/17. Such growth rate was negative

6
by 0.01 percent in the previous fiscal year. Primary sector has expanded
in the current fiscal year 2016/17 due to favorable monsoon,
commercialization of agriculture, increase in production of forest based
materials for reconstruction, and quarrying.
Chart 1 (c) : Sector-wise Economic Growth Rates

Source: Central Bureau of Statistics

Secondary Sector
1.16. The secondary sector includes the economic activities related to
construction, electricity, gas and water. The contribution of the secondary
sector to GDP has been declining for last ten years. Its average
contribution to GDP for last ten years stood at 14.6 percent, which
declined to 14.0 percent in current fiscal year 2016/17. The growth rate
of this sector that remained negative by 6.45 percent in the previous
fiscal year stood at 10.97 percent in the current fiscal year 2016/17. The
secondary sector, which grew at an average rate of 2.8 percent in last ten
years, has occupied the least share in the economy on the structural basis.
The gross value added of this sector increased as a result of the speed up
in reconstruction and other construction works, the expansion of energy
sector and the increase in industrial production, among others.
Tertiary Sector
1.17. Tertiary sector consists of economic activities of wholesale and retail
trades, hotel and restaurant, transport, communication and warehousing,
financial intermediation, real estate and business services, public
administration and defense, education, health, and other community,
social and personal services. The contribution of the services sector to
7
GDP has averaged 51.7 percent in the last ten years. Its contribution to
GDP is estimated to remain at 56.0 percent in the current fiscal year
2016/17. Economy is in the structural transformation due to the increase
in the share of service sector in GDP in recent years. The growth rate of
the services sector is averaged 5.3 percent in the last ten years. Such
growth rate is estimated at 6.9 percent in the current fiscal year 2016/17.
Expansion in trade as a result of increased domestic production and rise
in import of goods, increase in the number of tourists arrival, increased
economic activities of hotel, restaurant, transport and communication
sectors due to conducive business environment, and expansion in social
services including education and health are attributable to the growth of
the services sector.
Chart 1 (d) : Structure of Sector-wise Production

Source: Central Bureau of Statistics

Gross Value Added (GVA) as per Industrial Classification

Agriculture Sector
Agriculture and Forestry
1.18. Gross value added (GVA) of agriculture and forestry sector is estimated
to grow by 5.25 percent in the current fiscal year 2016/17, while such
growth was negative by 0.19 percent in the previous fiscal year. The
growth rate of GVA has averaged 3.15 percent in last ten years. The
contribution of agriculture and forestry to GDP is estimated to remain at
28.89 percent in the current fiscal year. Reasons for such higher growth
rate of GVA are increased production of major food crops including rice,

8
wheat and maize, among others. Rice, which occupies a high share in
overall agricultural production, is estimated to have registered higher
production growth of 21.7 percent due to favorable monsoon. The share
of rice in the GVA of agriculture sector is estimated to stand at 20.7
percent. Likewise, the production of agriculture and forestry sector is
estimated to increase in the current fiscal year due to favorable monsoon,
commercialization of agriculture, availability of seeds and fertilizers, and
expansion of irrigation services.

Fishery
1.19. The contribution of the fishery sector to GDP is estimated at 0.48 percent
in FY 2016/17. Growth rate of GVA of the fishery sector, which
remained at 11.76 in the fiscal year 2015/16, is estimated to remain at
6.86 percent in current fiscal year 2016/17. The growth rate of this sector
averaged 6.29 percent in last ten years. Fish production is estimated to
grow owing to the both government and non-government efforts.

Industry Sector
Mining and Quarrying Sector
1.20. GVA of mining and quarrying sector is estimated to rise by 8.19 percent
in the current fiscal year 2016/17 as compared to previous fiscal year.
The share of this sector in GDP is estimated to remain at 0.63 percent.
The production of this sector registered a negative growth rate of 2.78
percent in previous fiscal year. The average growth of this sector is 3.69
percent in last ten years. Mining and quarrying sector is estimated to
grow as a result of reconstruction works and quarrying of boulders,
gravels, sand and soil in earquake affected and other districts for
expeditious construction works.

Manufacturing Industry
1.21. GVA of the industry sector is estimated to grow by 9.7 percent in the
current fiscal year 2016/17 as compared to preceding fiscal year. Such a
high growth results from an adequate supply of fuel and raw materials
coupled with the decline in closures and strikes thereby creating
favorable industrial environment. The production of this sector decreased
by 8.0 percent in previous fiscal year owing to the adverse impacts of
earthquake and disruption in border points. The contribution of this
sector to GDP that stood at 7.34 percent in FY 2007/08 fell ultimately
shrinking to 5.67 percent in current fiscal year. Growth rate of this sector

9
has averaged 2.08 percent for the last ten years. The production of this
sector did not remain satisfactory due to the lack of investment friendly
environment, failure to maintain amicable industrial labor relations,
unreliable and irregular supply of electricity, prolonged political
transition, and debilitating industrial infrastructures, among others.

1.22. The contribution of electricity, gas and water sector to GDP is estimated
to remain at 1.16 percent in current fiscal year 2016/17. The growth rate
of GVA of this sector, which was negative by 7.4 percent in previous
fiscal year 2015/16, is expected to attain a higher growth rate of 12.97
percent in the current fiscal year 2016/17. GVA attained high growth as a
result of notable rise in electricity production in current fiscal year. The
growth rate of this sector averaged 2.21 percent in the last decade.

Construction Sector
1.23. GVA of the construction sector is estimated to grow by 11.66 percent in
the current fiscal year 2016/17 as compared to that of previous fiscal
year. The construction of large projects including Melamchi Drinking
Water Project, and Upper Tamakoshi Hydroelectricity Project has lead to
significant growth of this sector. The share of construction sector to
GDP is estimated to remain at 7.18 percent in the current fiscal year
2016/17.

Service Sector
Wholesale and Retail Trade
1.24. GVA of wholesale and retail trade sector is estimated to grow by 9.76
percent in current fiscal year. Such growth was negative by 2.54 percent
in the previous fiscal year 2015/16. The average growth rate of this
sector stood at 4.88 percent in the past decade. The growth of this sector
is estimated to remain high due to increased productions of tradable,
agricultural, and industrial goods together with increase in import of
goods. This sub-sector, which is the highest contrubutor to GDP among
the non-agriculture sector, is estimated to contribute 13.52 percent in the
current fiscal year.

Hotel and Restaurants

1.25. The contribution of hotel and restaurant sector to GDP is estimated to


remain at 1.98 percent in the current fiscal year 2016/17. The growth
rate of GVA of this sector, which was negative by 9.68 percent in fiscal

10
year 2015/16, is estimated to grow positivly by 7.09 percent in the
current fiscal year. Growth rate of this sector averaged 4.23 percent in
the last decade. The hotel and restaurant sector that contracted in the
previous fiscal year has expanded as a result of increased number of
tourists arrival, improved domestic tourism, regular supply of electricity
and reduced closures and strikes, among others.

Transport, Communication and Warehousing


1.26. The GVA growth rate of transport, communication and warehousing
sector that continuously declined since FY 2007/08 is estimated to grow
by 6.5 percent in the current fiscal year 2016/17. Such growth was 2.02
percent in the last fiscal year. Average growth of this sector stood at 6.32
percent in the last decade. Production of this sector increased in the
current fiscal year due to reduction in obstructions like closures and
strikes. There is a positive impact on transport sector owing to vibrant
economic activities in overall economy. Moreover, GVA increased as a
result of increased number of communication subscribers along with the
expanded services in this sector. The share of this sector to GDP is
estimated to remain at 8.11 percent in current fiscal year.

Financial Mediation
1.27. Financial mediation sector covers banking, insurance and social security
related activities. The contribution of this sector to GDP is estimated to
stand at 5.40 percent in the current fiscal year 2016/17. The GVA of this
sector is expected to grow by 6.72 percent in the current fiscal year
2016/17 as compared to previous fiscal year. GVA has increased due to
increased number of saving and credit accounts and expanded branches
of financial institutions.

Real Estate and Business Services


1.28. The contribution of real estate and business services sector to GDP is
estimated to remain at 9.9 percent in the current fiscal year 2016/17. As
compared to its preceding fiscal year, GVA growth rate of this sector is
expected to rise by 5.27 percent in current fiscal year. Such growth was
0.77 percent in FY 2014/15 due to devastating earthquake. Growth of
this sector is estimated to grow in the current fiscal year due to the rise in
transactions especially of real estate business and commercial activities.
Average growth rate of this sector is has been 3.92 percent in last ten
years.

11
Public Administration and Defense
1.29. GVA growth rate of public administration and defence sector is
estimated to stand at 9.64 in the current fiscal year 2016/17, while such
growth rate was 2.52 percent in previous fiscal year. Such a high growth
in the current fiscal year results from the increased cost of production of
the public administration and defense sectors. Speceficially, increase in
number of civil service employees, distribution of salaries and
allowances for election security service, and expenditure on the
employees deputed for reconstruction works are attributable for such a
high growth. The contribution of this sector to GDP is estimated to
remain at 3.0 percent in the current fiscal year.

Education Sector
1.30. Education sector is estimated to contribute 7.23 percent to GDP in
current fiscal year. GVA of this sector, which rose by 7.04 percent in FY
2015/16 is estimated to rise by 4.21 in current fiscal year. Despite
increment in GVA of private educational institutions due to low
intermediate consumption and increased income, GVA of the education
sector saw a normal growth as the number of students in community
schools did not increase significantly.

Health Sector
1.31. GVA of the health sector that registered a growth of 3.25 percent in FY
2015/16 is estimated to grow by 6.58 percent in current fiscal year. GVA
witnessed a normal growth in FY 2015/16 due to notable increment in
intermediate expenditure made for the earthquake affected patients
treatment. GVA in current fiscal year has increased owing to expanded
accessibility to health services; enhanced health related awareness and
increased income of private health institutions. The contribution of the
health sector to GDP stands at 1.74 percent in current fiscal year.
Other Community, Social and Personal Services
1.32. GVA of other community, social and personal services sector is
estimated to grow by 5.88 percent in current fiscal year 2016/17, while
such growth was 3.67 percent in previous fiscal year. The average
growth of this sector remained at 7.91 percent in the last ten years. GVA
of this sector in current fiscal year is estimated to grow due to the
increase in expenditure on community and social sectors by central and
local government, and expansion in entertainment service activities in the
private sector such as FM Radios and televisions. The contribution of this

12
sector to GDP is estimated to remain at 5.09 percent in current fiscal
year.
Consumption
1.33. Consumption expenditure had increased by 11.8 percent to Rs. 2,161.51
billion in FY 2015/16. The consumption expenditure at current price is
estimated to rise by 7.9 percent to Rs. 2,332.74 billion in current fiscal
year 2016/17. The average share of consumption in GDP stood at 89.86
percent in the last ten years. The share of consumption in GDP at current
price that stood at 90.2 percent in FY 2007/08 fell to 86.03 percent in FY
2010/11. Such share stood at 96.18 percent in FY 2016/17 recording
highest in last ten years while this is estimated to reach 89.7 percent in
FY 2016/17.

1.34. The share of private sector consumption in GDP that had remained at
78.6 percent in FY 2007/08 is estimated to stand at 76.2 percent in
current fiscal year 2016/17. Such share remained at 82.8 percent in the
last year. Likewise, the share of government consumption in GDP that
stood at 11.6 percent in FY 2015/16 is estimated to remain at 11.7
percent in the current fiscal year 2016/17.

Chart 1 (e) : Structure of Total Consumption

Source: Central Bureau of Statistics

13
1.35. Of the total consumption, private sector consumption stood at 84.9
percent in the current fiscal year 2016/17 against such share of 86.1
percent that of previous fiscal year 2015/16. The share of government
consumption in the total consumption remained at 13.1 percent and that
of not-for-profit organizations is 2.0 percent in current fiscal year.
1.36. Of the private sector consumption, food items hold almost two-third
share than non-food items and services. In current fiscal year 2016/17,
the shares of food items, non-food items and services to the total private
sector consumption are 65.0 percent, 25.1 percent and 9.9 percent
respectively. Expenditure on food items is on the rise as compared to that
of non-food items and services due to changing food habits and
escalating prices of food items. Ten years ago, consumption expenditures
on food items, non-food items and services stood at 60 percent, 28
percent and 12 percent respectively. The share of household consumption
expenditure at current price in GDP has reached 81.4 percent in current
fiscal year.

Chart 1 (f) : Strucutre of Private Consumption

Source: Central Bureau of Statistics

Investment
1.37. Gross capital formation that stood at Rs. 831.98 billion in FY 2014/15
dropped by 8.9 percent to Rs. 757.68 billion in its subsequent fiscal year
2015/16. This expenditure is estimated to grow by 45.8 percent and
stand at Rs. 1,104.96 billion in current fiscal year. The share of gross

14
capital formation in GDP is estimated to remain at 42.5 percent in current
fiscal year against 33.7 percent of previous fiscal year.

Chart 1 (g) : Structure of Gross Capital Formation

Source: Central Bureau of Statistics

1.38. Gross fixed capital formation at current prices that stood at Rs.647.29
billion in fiscal year 2015/16 is estimated to grow by 35.7 percent to Rs.
878.60 billion in the current fiscal year 2016/17. The share of gross fixed
capital formation in GDP, which stood at 28.8 percent in previous fiscal
year is estimated to remain at 33.8 percent in current fiscal year. The
share of private and government sectors in gross fixed capital formation
are estimated to stand at 78.5 percent and 21.5 percent respectively in the
current fiscal year 2016/17, while such contributions were 75.2 percent
and 24.8 percent respectively in the previous fiscal year 2015/16.

Savings
1.39. The ratio of both gross domestic savings and gross national savings to
GDP have increased in the current fiscal year 2016/17. The share of
gross domestic savings in GDP, which stood at 3.82 percent in FY
2015/16 is estimated to increase and stand at 10.25 percent in current
fiscal year. The ratio of gross national saving to GDP that remained at
39.96 percent in previous fiscal year 2015/16 is estimated to rise and rest
at 43.78 percent in the current fiscal year 2016/17. The ratio of gross
domestic savings and gross national savings to GDP averaged 10.1
percent and 39.6 percent respectively in last ten years.

15
Chart 1 (h) : Ratios of Gross Domestic Savngs and Gross National Savings to GDP

Source: Central Bureau of Statistics

Per capita GDP


1.40. Per capita GDP at current prices stood at Rs. 90,521 in FY 2016/17. It
was Rs. 79,325 in the previous fiscal year. Per capita GDP that had
increased by 4.1 percent last year rose by 14.1 percent in current fiscal
year. Likewise, per capita GDP that stood at Rs. 27, 089 at constant
prices in previous fiscal year 2015/16 is estimated to increase by 6.1
percent to Rs. 28,733 in current fiscal year 2016/17. Per capita GDP at
constant price had declined by 0.9 percent in previous fiscal year.

Chart 1 (i) : Per Capita Income

Source: Central Bureau of Statistics

16
1.41. Per capita gross disposable income in FY 2016/17 has increased by 3.6
percent to Rs. 39, 142. Per capita GDP in US Dollar terms that stood at
USD 746.0 in 2015/16 has increased to USD 853.0 in current fiscal year.
Likewise, per capita gross national income that stood at USD 757.0 in the
previous fiscal year 2015/16 rose to USD 862.0 in the current fiscal year.
Per capita income has increased due to the high economic growth
attained in current fiscal year 2016/17.

Chart 1 (j) : Per Capita Income

Source: Central Bureau of Statistics

Challenges
1.42. It is a challenging task to graduate the country at the middle income
status by 2030 and achive the sustainable development goals through
high, sustained and broad-based inclusive growth by ending poverty,
inequality, unemployment and dependency.

1.43. It is a daunting challenge to develop a socialistic oriented economicy as


envisioned in the constitution through formulation and implementation of
economic policy including the optimum utilization and management of
the means of production along with their distribution and redistribution
for a robust and sustainable economic development.

17
1.44. It is a challenging task of attaining economic prosperity by addressing
plethora of economic issues, inter alia poverty, inequality,
unemployment, weak infrastructure and domestic production, low
domestic savings and investment, weak investment friendly environment,
informal economic sector, low capital expenditure, high trade deficit,
brain drain and remittance oriented economy.

1.45. It is a challenge to achieve a goal of economic development including


macroeconomic stability by creating bases for availability and assurance,
equitable distribution, and mobilization of means and resources at
federal, provincial, and local levels in line with federal system.

1.46. Achieving high and sustained economic growth with a focus on


investment in key drivers of economic growth including agriculture,
tourism, hydro-electricity and infrastructures remains a big challenge.

1.47. It is a challenge to build an exploitation-free society by achieving


sustainable development goals, economic growth and employment
creation thorough maximum utilization of available natural resources,
mobilization of domestic and foreign capital through participation of
public, private, and cooperative sectors and their growth.

1.48. There remains a challenge of modernization and commercialization of


agriculture by raising production and productivity of agriculture through
an adequate provision of means and resources like improved seeds,
fertilizer, agricultural credit, technology and equipment, and skilled
human resources.

1.49. Carrying out environment friendly development works by minimizing the


risks of climate change and natural calamities is also a challenging task.

18
2. Public Finance

Public finance defines the role and presence of a government in the economy.
Mobilization of means and resources by the government to cover the ever
increasing public expenditure is Public Finance. The government aims to
achive broader economic objectives of economic growth, employment creation,
making equitable distribution and maintaining economic stability mainly
through the mobilization and utilization of fiscal instruments such as revenue,
public expenditure, public debt and foreign grants. Every year, government
revenue has been incresing together with public expenditure. Despite
continuous growth in the ratio of revenue to GDP, the contribution of foreign
trade based revenue to total revenue collection stands at 50 percent. Though
there has been adequate fiscal space to use public finance in the productive
sector, public debt has not been utilized to the desired extent. In the changing
context, sustainable and inclusive economic development needs to be achieved
through appropriate and equitable distribution of federal, provincial and local
level economic resources as per federal structure. The balance between
economic growth and equity has to be maintained towards achieving
development and equality through sustained economic growth and equitable
distribution. There has been an indication of improvement in the ability of
making capital expenditure in the current fiscal year though such ability
appears to have declined in last few years. When the government’s fund is
unspent, the pace of capital formation becomes slow which consequently makes
the slowdown in economic activities thereby contracting the economic
expansion. Hence, it is imperative to establish the roles of the government in
economic development in a sustainable and complementary manner by
enhancing government’s spending capacity.
Public Finance and its Structure

2.1. Government income (government’s revenue and grants) had increased by


17.98 percent to Rs. 531.41 billion in FY 2015/16 compared to FY
2014/15. Similarly, such income had increased by 13.5 percent in FY
2014/15 as compared to its preceding fiscal year and reached Rs. 450.41
billion.

2.2. The budget that remained in deficit by Rs. 81.14 billion in FY 2014/15
decreased by 14.2 percent in FY 2015/16 and stood in deficit by 69.61
billion. The budget was in deficit of Rs. 38.17 billion in fiscal year
2013/14.

19
Table 2 (a) : Public Finace and Ratio with GDP ( In Rs. Ten Million)
Descriptions 2011/12 2012/13 2013/14 2014/15 2015/16
GDP 152734.4 169501.1 196454.0 213015.0 224742.2
Expenditure 33916.7 35863.8 43505.2 53155.8 60101.6
Government Income 28798.4 33392.7 39688.5 45041.3 53141.1
Budget Surplus(+)/ Deficit(-) -5118.3 -2471.1 -3816.7 -8114.5 -6960.5
Ratio to GDP (In Percent)
Expenditure 22.2 21.2 22.1 25.0 26.7
Government Income 18.9 19.7 20.2 21.1 23.6
Budget Deficit 3.4 1.5 2.0 3.8 3.1
Source: Financial Comptroller General Office and Central Bureau of Statistics

2.3. The ratio of government expenditure to GDP stood at 26.7 percent in FY


2015/16. Such ratio was 25.0 percent in its preceding fiscal year while
this ratio had remained at 22.1 percent in FY 2013/14.
Chart 2 (a) : Ratio With GDP (In Percent)

Source: Financial Comptrollers General Office and Central Bureau of Statistics

2.4. The ratio of budget deficit to GDP stood at 3.4 percent in FY 2011/12
while such budget continued to remain in deficit in all fiscal years. In
FY 2014/15, the ratio of deficit budget to GDP stood at 3.8 percent.
Likewise, such ratio decreased by 0.7 percent point and reached 3.1
percent in FY 2015/16.

20
2.5. The budget deficit is likely to grow further in next fiscal year as large
amount of resources is required to manage three tiers of government in
federal system as well as for reconstruction and new construction.

Chart 2 (b) : Per Capita Revenue and Public Expenditure (In NRs.)

Source: Financial Comptrollers General Office and Central Bureau of Statistics


Note: Population Statistics is based on the population projection (medium variant) of Central Bureau of Statistics

2.6. Revenue per head and expenditure per head have been in increasing
trend. Revenue per head grew by 17.1 percent to Rs. 16,952 in FY
2015/16 as compared to Rs. 14,476 of FY 2014/15. Revenue per head,
which stood at Rs. 9,094 in FY 2011/12 rose to Rs. 10,860 in FY
2012/13 which further went up to Rs. 12,900 in its subsequent year.

2.7. Expenditure per head has increased by 11.5 percent to Rs. 21, 139 in FY
2015/16 as compared to such expenditure of Rs. 18,959 of FY 2014/15.
Similarly, such expenditure that stood at Rs. 12,621 in FY 2011/12 rose
to Rs. 13,158 in its subsequent fiscal year.

Public Expenditure (Government Expenditure)


2.8. The ratio of public expenditure to GDP averaged 23.4 percent in the last
five years. Such ratio stood at 25.0 percent in FY 2014/15 which grew to
26.7 percent in its subsequent fiscal year.

21
Chart 2 (c) : Public Expenditure to GDP Ratio (In Percent)

Source: Financial Comptrollers General Office and Central Bureau of Statistics

2.9. The ratios of recurrent expenditure, capital expenditure and financing to


GDP averaged at 15.69 percent, 3.93 percent and 3.83 percent
respectively in last five years. The share of capital expenditure to GDP
that stood at 3.36 percent in FY 2011/12 went up to 5.48 percent in FY
2015/16. Such ratio was 4.17 percent in FY 2014/15.

2.10. The total expenditure reached Rs. 400. 16 billion in the first eight months
of current fiscal year 2016/17. The shares of recurrent expenditure,
capital expenditure and financing to total public expenditure stood at
73.32 percent, 16.95 percent and 9.73 percent respectively in the review
period

Table 2 (b) : Government Expenditure Detail( In Rs. 10 Million)


Fiscal Year
Expenditure Detail
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Recurrent Expenditure 24346.0 24745.5 30353.2 33940.8 37129.7 29341.8
Capital Expenditure 5139.1 5459.8 6669.5 8884.4 12325.1 6782.6
Share Investment 1209.4 890.2 945.1 1051.0 1272.8 424.7
Domestict Loan Investment 1206.4 1255.2 1349.8 2833.9 2479.0 689.5
Prinicipal Repayment against
662.7 2094.0 2515.2 4743.0 5033.5 1797.5
Domestic Borrowing
Principle Repayment against
1353.2 1419.0 1672.5 1702.8 1861.5 980.3
Foreign Debt
Total Expenditure 33916.7 35863.8 43505.2 53155.8 60101.6 40016.3
Source: Financial Comptroller General Office
*First Eight Month

22
2.11. Of the real expenditure of Rs. 601.01 billion in FY 2015/16, recurrent
expenditure shared 61.8 percent, capital expenditure 20.5 percent while
financing shared 17.7 percent. Such expenditures were 63.9 percent, 16.7
percent and 19.4 percent respecetively in the previous fiscal year
2014/15. The ratios of capital expenditure to total government
expenditure stood at 15.2 percent and 15.3 percent in FY 2012/13 and FY
2013/14 respectively.

Chart 2 (d) : Structure of Public Expenditure ( In percent)

2.12. While analyzing the trend of public expenditure over last five years, the
share of recurrent expenditure in total government expenditure has
continued to decline while the share of capital expenditure in total public
expenditure has increased since FY 2013/14.
2.13. The government has made share and loan investments equivalent of Rs.
11.14 billion on public enterprises and other projects in the first eight
months of current fiscal year. The government had made total investment
of Rs. 37.52 billion including share investment of Rs.12.72 and loan
investment of Rs. 24.79 billion in previous fiscal year 2015/16.
2.14. The ratio of share and loan investments to the total expenditure that stood
at 7.12 percent in 2011/12 went up to 5.27 percent and 7.30 percent in
FY 2013/14 and FY 2014/15 respectively while such ratio stood at 6.24
percent in FY 2015/16.
2.15. Under financing, the repayment of principal against domestic borrowings
and foreign debts has stood at Rs. 38.91 billion in the first eight months
of current fiscal year 2016/17. The ratio of such repayment of principal

23
to the total government expenditure has stood at 6.94 percent in the
review period.
2.16. Principal repayment of domestic borrowings and foreign debts had
increased by 7.0 percent to Rs. 68.95 billion in FY 2015/16 as compared
to FY 2014/15. The ratio of principal repayment to the total government
expenditure was 11.47 percent during the same period.

Status of Service and Function-wise Recurrent Expenditures


2.17. During the first eight months of current fiscal year, recurrent expenditure
under all service and function wise headings increased by 48.20 percent
to Rs. 293.42 billion. Such expenditure had dropped by 7.47 percent to
Rs. 197.99 billion during the corresponding period of previous FY
2015/16 as compared to its preceding fiscal year. The current fiscal year
saw notable growth in such expenditure owing to the increase in
employees’ salaries and social security allownaces.
2.18. Recurrent expenditure registered growth of 9.4 percent and reached Rs.
371.30 billion in FY 2015/16 as compared to its previous fiscal year.
This expenditure had increased by 11.82 percent in FY 2014/15.
2.19. General public service shared 25.80 percent (Rs. 75.69 billion) to the
total real recurrent expenditure of Rs. 293.42 billion in the first eight
months of current fiscal year 2016/17 while 25.19 percent of such total
expenditure was spent under the same heading during the corresponding
period of previous fiscal year. Expenditures in all headings in the
review period have been higher as compared to the corresponding period
of previous fiscal year.
Table 2 (c) : Service and Funtion-Wise Detail of Recurrent Expenditure (In NRs.
10 Million)
Fiscal Year First Eight Month
Expenditure Heading
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
General Public Service 6052.4 6268.6 9978.6 9416.2 4987.2 7569.1
Defense 1847.7 2577.8 2807.3 2916.5 1896.2 2234
Public Peace Security 3483.2 3985.4 3004.2 3033.2 1907.6 2336.2
Economic Affairs 3596.5 5068.1 5260.6 6765.6 2656.6 5696.3
Environment Conservation 29.2 152.1 281.5 250.5 120.9 150.8
Housing and Community Service 230.7 604.6 238.9 312.5 155.7 216.9
Health 1891.8 2336.2 2618.8 3043.4 1420.3 1901.3
Entertainment, Culture and
225.6 360.6 298.7 355.8 182.2 230.9
Religion
Education 6229.1 7769.9 7974.5 9045.6 5345.9 6462.3
Social Security 1159.5 1229.8 1477.6 1990.5 1125.9 2544.1
Total 24745.5 30353.2 33940.8 37129.7 19798.5 29341.8
Source: Financial Comptroller General Office

24
2.20. Expenditure on education heading stood second after general public
service in the total real recurrent expenditure during the first eight
months of current fiscal year. During reveiew period, expenditure on
education heading accounted for 22.02 percent, economic affair
accounted for 19.41 percent and 8.67 percent on social security.
Likewise, expenditures on public peace and security, defence and health
account for 7.96 percent, 7.61 percent and 6.48 percent respectively in
total recurrent expenditure. The share of expenditure under
entertainment, culture and religion, housing and community services and
environment protection headings stood less than 1.0 percent in the total
recurrent expenditure. During the corresponding period of previous fiscal
year, expenditure on education heading was the highest with 27 percent
in the total recurrent expenditure while that on environment protection
heading shared least with 0.61 percent to this total.
2.21. General Public service shared most with 25.36 percent in the total actual
recurrent expenditure in FY 2015/16 followed by education with 24.36
percent, economic affair with 18.22 percent and health with 8.20 percent.
The share of entertainment, culture and religion, housing and community
services remained less than 1 percent in this total. General public service,
education and economic affair had the highest shares in total recurrent
expenditure in FY 2014/15 as well.

2.22. In the first eight months of the current fiscal year 2016/17, service and
function-wise expenditures under total real capital expenditure heading
has increased by 148.6 percent to Rs. 67.83 Billion as compared to the
corresponding period of the previous fiscal year. Such expenditure had
dropped by 67.91 percent to Rs. 27.28 billion in the same period of
previous fiscal year as compared to its preceding year. Capital
expenditure grows significantly owing to the base effect of low capital
expenditure of previous fiscal year, speed up in post-earthquake
reconstruction works and the construction of national pride projects in
current fiscal year.

25
Table 2 (d) : Service and Function-Wise Details of Capital Expenditure (In NRs. 10
Million)
Fiscal Year First Eight Month
Expenditure Heading
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
General Public Service 209.6 4684.6 313.1 400.8 102.2 147.8
Defense 242.2 658.8 453.4 418.5 60.7 109.6
Public Peace Security 293.1 511.4 392.7 446.2 110.1 162.3
Economic Affairs 3629.1 5986.8 5877.4 8643.3 1940.9 5187.5
Environment Conservation 32.9 105.1 160.5 178.9 31.5 68.7
Housing and Community Service 708.5 822.8 1292.5 1794.2 363.0 887.1
Health 295.3 315.6 328.0 357.6 93.7 183.6
Entertainment, Culture and
15.6 30.6 36.4 41.1 13.5 12.8
Religion
Education 13.9 12.6 9.6 23.3 3.1 5.3
Social Security 19.5 23.7 20.8 21.3 9.9 17.7
Total 5459.8 13152.1 8884.3 12325.2 2728.4 6782.5
Source: Financial Comptroller General Office

2.23. Capital expenditure under all service and function-wise expenditure


heading rose by 38.73 percent to Rs. 123.25 billion in FY 2015/16. Such
expenditure had declined by 32.45 percent in FY 2014/15.

2.24. During the first eight months of the current fiscal year 2016/17,
economic affair had the highest share of 76.48 percent (Rs. 51.88 billion)
in the total real capital expenditure of Rs. 67.83 billion. During the same
period of previous fiscal year, 71.14 percent of total capital expenditure
was spent under this heading. Shares of all expenditure headings except
entertainment, culture and religion headings remained high during the
eight months of current fiscal year compared to the corresponding period
of previous fiscal year.

2.25. In first eight months of the current fiscal year, share of expenditure in
housing and community service heading stood second to economic affair
in the total capital expenditure. In this period, expenditures on general
public services accounted for 2.18 percent, housing and community
service 13.1 percent, health 2.71 percent, public peace and security 2.39
percent, while defence accounted for 1.62 percent. Expenditures on
environment protection, entertainment, culture and religion, social
security and education headings accounted for nearly 1 percent or less in
total capital expenditure. Expenditure on economic affair heading was
the highest with 71.14 percent while that on education heading remained
least with 0.11 percent in total capital expenditure during the same period
of previous fiscal year.

26
2.26. Economic affair heading had the highest share with 70.13 percent in total
real capital expenditure in FY 2015/16. Likewise, general public service
heading accounted for 3.25 percent, housing and community service
accounted for 14.56 percent, environment protection accounted for 1.45
percent, defense accounted for 3.4 percent, public peace and security
accounted for 3.62 percent while health heading accounted for 2.9
percent. The share of entertainment, culture and religion, education and
social security stood less than 1 percent in this total.

Government Income
2.27. Government income of Rs. 366.70 billion has been mobilized in the first
eight months of current fiscal year 2016/17. Shares of revenue
mobilization, foreign grants, and principal repayment against the
borrowing in total government income remained at 96.51 percent, 2.81
percent and 0.003 percent respectively in the current fiscal year.
Likewise, the ratio of amount recovered from unaudited account to
government revenue stood at 0.68 percent.

Table 2 (e) : Government’s Income Detail ( In NRs. 10 Million)


Income Heading 2012/13 2013/14 2014/15 2015/16 2016/17*

Tax Revenue 25921.5 31244.1 35595.6 42109.7 32975.9


Non-Tax Revenue 3680.6 4418.0 4991.1 6086.5 2415.2
Gross Revenue 29602.1 35662.1 40586.6 48196.2 35391.1
Foreign Grants# 3523.0 3396.0 3637.4 3247.8 1029.8
Principle Repayment 75.5 57.0 208.2 1369.4 1.1
Unaudited Account
192.1 573.4 609.0 327.7 247.8
Recovery
Total Income 33392.7 39688.5 45041.3 53141.1 36669.8
Source: Financial Comptrollers General Office
*First Eight Month
#
Foreign Grants as of NRB Fund Details of FY 2016/17

2.28. The government income had increased by 17.98 percent to Rs. 531.41
billion in FY 2015/16 as compared to previous fiscal year. The shares of
revenue mobilization, foreign grants and repayment of principal against
borrowing in total government revenue stood at 90.69 percent, 6.11
percent and 2.58 percent respectively in that year. A sum of Rs. 3.28
billion was recovered from unaudited account contributing 0.62 percent
to total government revenue in the fiscal year 2015/16.

27
Chart 2 (e) : Government Income Structure (In Percent)

2.29. The contribution of revenue to total government income has continued to


remain at 90 percent. However, the contribution of foreign grants to
government’s total income has continued to decline gradually since FY
2012/13. Likewise, the contributions of repayment of principal against
borrowing and recovery from unaudited account have remained low.
2.30. Government income contributed about 88.4 percent to total government
expenditure in FY 2015/16. Such contributions stood at 91.2 percent and
84.7 percent respectively in FY 2013/14 and FY 2014/15.

2.31. The contribution of foreign grants to total government expenditure that


remained at 6.1 percent in FY 2014/15 went down to 5.4 percent in its
subsequent year. Such contribution to government’s total expenditure has
been declining since FY 2012/13. Foreign grants of about Rs. 32.48
billion was mobilized in FY 2015/16.

Table 2 (f) : Ratio of Income, Grants and Expenditure to Government’s Total


Expenditure ( In NRs. 10 Million)
2012/13 2013/14 2014/15 2015/16
Details
Amount Percent Amount Percent Amount Percent Amount Percent
Gross Government Expenditure 35863.8 43505.2 53155.8 60101.6
Gross Government Income 33392.7 93.1 39688.5 91.2 45041.3 84.7 53141.1 88.4
Gross Revenue 29602.1 82.5 35662.1 82.0 40586.6 76.4 48196.2 80.2
Foreign Grants 3396.0 9.5 3637.4 8.4 3247.8 6.1 3247.8 5.4
Domestic Borrowing 1904.3 5.3 1998.3 4.6 4236.8 8.0 8777.5 14.6
Foreign Debt 1196.9 3.3 1799.9 4.1 2561.6 4.8 3322.8 5.5
Source: Financial Comptrollers General Office

2.32. The shares of domestic borrowing in total government expenditure in FY


2012/13 and FY 2013/14 stood at 5.3 percent and 4.6 percent

28
respectively while such contribution increased remarkably in later years.
The contribution of domestic borrowing to government’s total
expenditure that remained at 8.0 percent in FY 2014/15 rose to 14.6
percent in FY 2015/16.
Chart 2 (f) : Ratio of Revenue, Grants and Loan to Government’s Total
Expenditure (In Percent)

2.33. The ratio of revenue to total government expenditure appears to have


fluctuated in last fiver years. The share of foreign grants in government
total expenditure has continued to fall since FY 2011/12 and rested at 5.4
percent in FY 2015/16. However, the ratio of gross debt (domestic and
foreign) in total government expenditure has started to increase since FY
2015/16. Such ratio increased as a result of the expenditure on post-
earthquake reconstruction and rehabilitation works.
2.34. The ratio of foreign debts to total government expenditure that remained
at 4.8 percent in FY 2014/15 reached 5.5 percent in FY 2015/16. The
share of total public borrowing in government expenditure had remained
at 20.1 percent in FY 2015/16.

Revenue Mobilization
2.35. The ratio of revenue to GDP that stood at 6.1 percent in FY 1974/75
reached 8.9 percent in FY 1990/91. Such ratio remained at 11.1 percent
in FY 2000/01 which continued to rise significantly in its subsequent
years and reached 21.45 percent in FY 2015/16.

29
Chart 2 (g) : Ratio of Revenue to GDP ( In Percent)

Source: Ministry of Finance

2.36. A total revenue of Rs. 353.91 billion including tax revenue of Rs. 329.76
billion and non-tax revenue of Rs. 24.15 billion was mobilized during the
first eight months of current fiscal year 2016/17. During the same period
of previous fiscal year 2015/16, revenue totaling Rs. 231.08 with tax
revenue of Rs. 205.19 billion and non-tax revenue of 25.89 billion was
mobilized. The total revenue mobilization has increased by 53.16 percent
in the first eight month of current fiscal year as compared to 14.29
percent increment recorded during the same period of previous fiscal
year.

2.37. The revenue mobilization rose by 18.75 percent to Rs. 481.96 billion in
FY 2015/16 as compared to 13.81 percent growth rate of revenue
mobilization of previous fiscal year 2014/15.

2.38. The contribution of tax revenue and non-tax revenue to the total revenue
stood at 93.18 percent and 6.82 percent respectively in the first eight
months of current fiscal year 2016/17. Such contribution accounted for
88.80 percent and 11.20 percent respectively during the same period of
previous fiscal year.

2.39. Tax revenue and non tax revenue contributed 87.37 percent and 12.63
percent respectively to the total revenue in FY 2015/16. Such
contribution stood at 87.70 percent and 12.30 percent respectively in FY
2014/15.

30
Table 2 (g) : Revenue Details ( In NRs. 10 Million)
Fiscal Year First Eight Month
Revenue Heading
2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17
Tax on Income, Profit and
6418.67 7561.36 8616.57 11413.8 2444.62 4922.94 7060.48
Capital Gain
Remuneration Based Tax 188.06 244.99 292.58 326.98 148.81 181.59 254.18
Property Tax 534.02 667.11 939.94 1314.94 362.87 447.45 826.88
Goods and Services Based Tax 12927.1 15771.84 18002.52 20566.87 10614.21 10674.01 17724.61
Foregin Trade Based Tax 5693.18 6798.05 7484.12 8215.91 4815.71 4153.67 6779.56
Other Taxes 160.52 200.77 259.84 271.16 129.2 139.15 330.2
Gross Tax Revenue 25921.5 31244.12 35595.57 42109.66 18515.41 20518.82 32975.91
Income Earned from Property 1760.84 2067.52 2270.87 2615.89 491.92 848.12 827.91
Income Earned from the Sale of
1124.7 1164.53 1223.06 1384.69 496.93 849.15 965.56
Goods and Services
Fine, Penalties and
Confiscation 33.82 45.28 125.43 78.89 26.33 38.99 42.6

Voluntary Handover Except


0.51 0.24 0.5 0.3 0.36 0.22 0.06
Foreign Grants
Other Revenues 760.77 1140.39 1371.21 2006.73 688.05 852.36 579.02
Gross Non Tax Revenue 3680.64 4417.95 4991.07 6086.5 1703.59 2588.84 2415.15
Total Revenue 29602.13 35662.07 40586.64 48196.16 20219.01 23107.66 35391.06
Source: Financial Comptrollers General Office

2.40. The contribution of goods and services based taxes to total tax revenue
averaged 50.4 percent while such tax contributed 44.03 percent on an
average to the total revenue in last five years. The contribution of goods
and services based tax to total tax revenue rose by 1.8 percent and
reached 53.8 percent in the first eight months of current fiscal year as
compared to that of 52 percent contribution in previous fiscal year. Such
contribution to total revenue had stood at 50.1 percent in the first eight
months of current fiscal year.

2.41. During the first eight months of current fiscal year, the contribution of
income, profit and capital gain taxes and foreign trade based tax
remained at 19.95 percent and 19.16 percent respectively. Such
contribution during the same period of previous fiscal year stood at 21.30
percent and 17.98 percent respectively.

2.42. The contribution of income, profit and capital gain taxes and foreign
trade based tax in total revenue remained at 23.68 percent and 17.05
percent respectively in FY 2015/16. Such contribution stood at 21.23
percent and 18.44 percent respectively in FY 2014/15.

2.43. Property tax and remuneration based tax have contributed 2.34 percent
and 0.72 percent respectively to total revenue in the first eight months of
current fiscal year 2016/17. Contributions of such taxes had stood at 1.94
percent and 0.79 percent respectively during the same period of previous
fiscal year. The contribution of other taxes to total revenue mobilization
has remained at 0.93 percent during the first eight months of current

31
fiscal year as compared to the contribution of 0.63 percent in
corresponding period of FY 2015/16.

2.44. The contribution of property and remuneration based taxes remained at


2.73 percent and 0.68 percent respectively in FY 2015/16. Such
contributions were recorded at 2.32 percent and 0.72 percent respectively
in FY 2014/15. Likewise, the contribution of other taxes to total revenue
mobilization dropped marginally to 0.56 percent in FY 2015/16 from
such contribution of 0.64 percent of its preceding year.

2.45. On non-tax revenue mobilization front, revenue of Rs. 8.28 billion has
been mobilized from assets during the first eight months of current fiscal
year 2016/17. Its contribution to total revenue mobilization stood at 2.34
percent in the same period. Similarly, revenue amounting Rs. 8.48
billion was mobilized from assets in the same period of previous fiscal
year. Likewise, the contribution of revenue through sale of goods and
services stood at 2.73 percent in the first eight months of current fiscal
year against 3.67 percent contribution to total revenue recorded in the
corresponding period of previous fiscal year.

2.46. In the first eight months of FY 2015/16, revenue earned from assets had
increased by 15.2 percent to Rs. 26.16 billion as compared to the
corresponding period of preceding fiscal year 2014/15. Its contribution to
total revenue had remained at 5.43 percent in FY 2015/16. Likewise, the
contribution of income earned through the sale of goods and services to
total revenue stood at 2.87 percent in the same fiscal year. Such
contribution was recorded at 3.01 percent in FY 2014/15.

2.47. The share of fines and penalties to total revenue that averaged 0.13
percent in the fiscal years from 2011/12 to 2013/14 increased to 0.31
percent in FY 2014/15. Such contribution to total revenue stood at 0.12
percent in the first eight months of current fiscal year against 0.17
percent of the same period of its previous fiscal year. The share of fines
and penalties to total revenue was 0.16 percent in FY 2015/16.

2.48. The contribution of Value Added Tax (VAT) to total revenue


mobilization has continued to remain the highest. During last five years,
such contribution on an average stood at 27.7 percent. Likewise, customs
duty has contributed 18.9 percent on an average in last five years while
the contribution of income tax to total revenue averaged 22.2 percent
during this period. Similarly, the average contributions of excise duty and

32
non-tax revenue to total revenue mobilization stood at 13.5 percent and
11.5 percent, and that of other taxes remained at 6.3 percent respectively
during the same period. Foreign trade based revenue stood at around 50
percent due to excise duty and value added tax levied on imports of
goods in addition to customs duty.

Table 2 (h) : Revenue Structure of Last Five Years (In Percent)


Fiscal Year
Revenue Detail To GDP To GDP To GDP To GDP
2012/13 2013/14 2014/15 2015/16 2016/17*
Ratio Ratio Ratio Ratio
Value Added Tax 28.18 4.92 28.35 5.15 27.72 5.28 25.4 5.45 28.38
Excise Duty 12.24 2.14 12.73 2.31 13.19 2.51 13.65 2.93 15.57
Income Tax 21.68 3.79 21.2 3.85 21.23 4.05 23.68 5.08 19.95
Custom Duty 18.5 3.23 18.28 3.32 17.45 3.33 16.17 3.47 18.32
Non-Tax 12.43 2.17 12.39 2.25 12.3 2.34 12.63 2.71 6.82
Others 6.96 1.22 7.04 1.28 8.1 1.54 8.47 1.82 10.95
Total Revenue 100 17.46 100 18.15 100 19.05 100 21.45 100
Source: Ministry of Finance
* First Eight Mont
Note: Other taxes include, taxes levied on special services, taxes on getting approval for using goods and services,
registration fee and transport vehicle taxes

2.49. Value Added Tax (VAT) has been making highest contribution to GDP
in last four years. Such contribution stood at 4.9 percent of GDP in FY
2012/13, which continued to grow reaching 5.5 percent in FY 2015/16.
Likewise, the ratio of income tax to GDP has also been increasing. Such
ratio stood at 5.1 percent in 2015/16. While analyzing the revenue trend
for last four years, the ratio of all taxes to GDP has increased. Hence, the
the ratio of all taxes continues to grow as a result of growing ratio of
revenue to GDP.

Chart 2 (h) : Total Revenue Structure ( In Percent)

33
2.50. The contribution of VAT to total revenue mobilization remained at 25.4
percent in FY 2015/16. Such contribution to total revenue mobilization
continued to decline from FY 2013/14 to FY 2015/16 while contribution
of such tax to revenue collection increased to 28.4 percent in the first
eight months of current fiscal year 2016/17.

2.51. The contribution of income tax to total revenue normally remains higher
in developed and developing countries. Resources for financing
development needs get ensured if contribution of income tax increases
and thus revenue growth become sustained. Even if income tax
collection increases, tax system needs to be made fair, neutral and
efficient so as to attain encouraging growth in the contribution of the
income tax to total revenue. Since the major basis of revenue
mobilization is VAT, revenue mobilization would be more effective if
the VAT system is made more neutral and efficient.

Foreign Grants Commitment


2.52. International finance among the public finance plays a key role in socio-
economic development. Foreign direct investment, remittance and
official development assistance (ODA) fall under international finance.
International economic cooperation is mobilized in the form of
development finance. In the past, major source of development
expenditure used to be foreign aid, which currently occupies nearly 20
percent of the national budget. The share of foreign grants and debts is
likely to grow in upcoming years due to necessity for post earthquake
reconstruction and rehabilitation works.

Table 2 (i) : Foreign Aid Commitment Situation ( In NRs. 10 Million)


Fiscal Year First Eight Months
Description
2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Gross Foreign Grant 5390.1 7291.8 9160.31 7920.37 6185.76 4561.25
Bilateral Grant 2330.99 4868.5 8034 4631.2 4990.59 1444.95
Multilateral Grants 3059.11 2423.3 1126.31 3289.17 1195.17 3116.3
Gross Foreign Debts 6125.58 6052.6 13421.6 11639.5 9433.5 16643.15
Bilateral Loan 1521 658.7 9802.9 4475.7 2269.7 9490.5
Multilateral Loan 4604.58 5393.9 3618.72 7163.8 7163.8 7152.64
Total Foreign Aid 11515.7 13344.4 25581.9 19559.9 15619.3 21204.4
Source: Ministry of Finance

2.53. Foreign aid commitment totals Rs. 212.04 billion including foreign loan
and foreign grants in the first eight months of the fiscal year 2016/17.
Such amount stood at Rs. 156.19 billion in the same period of the
previous fiscal year. The share of foreign grants and loan in the total

34
foreign aid commitment stood at 21.5 percent and 78.5 percent
respectively in first eight months of the current fiscal year. Such shares
were 39.6 percent and 60.4 percent respectively during the corresponding
period of the previous fiscal year.

2.54. Foreign aid commitment equivalent to Rs. 195. 60 including foreign loan
and foreign grants was received in FY 2015/16. Such commitment of Rs.
255.82 billion was received in the preceding fiscal year. The shares of
grants and loan in total foreign aid commitment remained at 40.5 percent
and 59.5 percent respectively in both FY 2014/15 and FY 2015/16.

2.55. The share of foreign loan compared to foreign grants in total foreign aid
commitment has continued to remain high in all previous five years
except in FY 2013/14.

Foreign Aid Mobilization


2.56. Total ODA increased by 5.22 percent to USD 1074.06 million in FY
2015/16 as compared to USD 1020.75 million of the preceding year.
Total foreign aid mobilization hovered around USD 1.0 billion to USD
1.1 billion in last six years.

2.57. Of the total ODA in FY 2015/16, the shares of grants, loan and technical
assistance accounted for 49.64 percent, 34.89 percent and 15.47 percent
respectively. Similarly, the shares of multilateral and bilateral assistance
in total ODA stood at 58 percent and 42 percent respectively.

2.58. The contribution of World Bank group to the total ODA has been the
highest in FY 2015/16 with 22.69 percent followed by Asian
Development Bank with 20.27 percent, United States Agency for
International Development (USAID) with 11.07 percent, United Nation
with 10.57 percent, UK with 8.33 percent, Japan with 4.27 percent,
Switzerland with 3.44 percent, India with 3.33 percent, Norway with
3.31 percent, China with 3.29 percent and others with 9.43 percent.

2.59. In FY 2015/16, USD 678.65 million (63 percent) ODA was mobilized
under the budgeted projects and USD 395.41 million (37 percent) under
the non-budgeted projects. Such ratios stood at 65 percent and 35 percent
respectively in FY 2014/15.

35
Chart 2 (i) : Development Aid on Budgeted and Non-Budgeted Projects for FY 2015/16

2.60. Foreign grants of Rs. 42.20 billion was utilized in FY 2014/15 against the
utilization of such grants of Rs.39.54 billion in FY 2015/16.

Budget Deficit and Deficit Financing


2.61. Revenue has continued to grow along the public expenditure. Despite
satisfactory and encouraging revenue mobilization, government income
has not been able to cover public expenditure. Therefore, the government
has been mobilizing loans either through domestic or external sources.
Yet, the utilization of domestic and foreign debts has been low for failing
to meet the target of capital expenditure and thus there is not a need of
large amount of domestic borrowing to meet fiscal deficit. There is a
possibility to mobilize additional loan for the execution of larger projects
since the ratio of public debt to GDP is still low.

Table 2 (j) : Fiscal Deficit and Deficit Financing Detail ( In NRs. 10 Million)
Fiscal Year
Description
2011/12 2012/13 2013/14 2014/15 2015/16
Budget Deficit 5118.3 2471.1 3816.7 8114.5 6960.5
Sources for Deficit Financing
Foreign Debt 1108.3 1196.9 2113.2 2043.2 4377.4
Domestic Borrowing 3641.9 1904.3 1998.3 4236.8 8777.5
Change in Cash Reserves (-/+) 368.1 -630.1 -294.8 1834.5 -6194.4
Source: Financial Comptrollers General Office

36
2.62. Budget deficit had decreased by 14.2 percent to Rs. 69.61 billion in FY
2015/16 as compared to that of Rs. 81.14 billion of fiscal year 2014/15.
Public debt of Rs. 131.55 billion was mobilized in FY 2015/16 to meet
the fiscal deficit.

2.63. The share of budget deficit had remained at 3.1 percent to GDP in FY
2015/16 against such ratio of 3.8 percent in FY 2014/15.

Gross Public Debts and Repayment


2.64. The total outstanding public debt stood at Rs. 627.79 billion until fiscal
year 2015/16 of which the ratios of domestic and public debts remaining
at 38.1 percent and 61.9 percent respectively. In FY 2014/15, such
outstanding debt had remained at Rs. 544.92 billion. The share of
domestic and foreign debts in total debt were 37.0 percent and 63.0
percent respectively in FY 2014/15

2.65. The public debts to GDP ratio that continued to decline from FY 2012/13
to FY 2014/15 grew by 27.93 percent in FY 2015/16. However, the ratio
of public debt to GDP has been the lowest in South Asia.

Chart 2 (j) : Structure of Outstanding Public Debt(In Percent)

2.66. The total outstanding foreign debt stood at Rs. 391.28 billion until the
first eight months of current fiscal year 2016/17. Of this, the ratio of
bilateral and multilateral debt to total debt remained at 9.66 percent and
90.34 percent respectively.

37
2.67. The total outstanding debt accounted for Rs. 624.51 billion until the first
eight months of current fiscal year 2016/17. The share of foreign and
domestic debt in total debt remained at 62.65 percent and 37.35 percent
respectively.

2.68. Loan repayment including principal and and interest totaled Rs. 33.58
billion in the first eight months of current fiscal year 2016/17. Such loan
repayment shared 8.39 percent to total public expenditure during the
same period.

2.69. Of the total public debt, principal of Rs. 64.46 billion was paid in FY
2014/15 and that of Rs. 68.95 billion was paid in its subsequent FY
2015/16. Out of such repayment of loan, the share of domestic debt and
foreign debt was 27 percent and 73 percent respectively. In FY 2015/16,
repayment of principal was more than 6.96 percent as compared to that
of preceding year.

Table 2 (k) : Outstanding Public Debt, Principal Repayment and Interst


Expenditure ( In NRs. 10 Million)
Description 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Details on Outstanding Debts
Domestic Debt 21399.1 22034.7 20668.9 20165.7 23902.9 23322.6
Foreign Debt 30928.7 33344.2 34681.9 34326.2 38876 39128
Total Debt 52327.8 55378.9 55350.8 54491.9 62778.9 62450.6
Principle Repayment Expenditure Details
Domestic Debt 662.7 2094.0 2515.2 4743.0 5033.5 1797.5
Foreign Debt 1353.2 1419.0 1672.5 1702.8 1861.5 980.3
Total Principle Repayment
2015.9 3513.0 4187.7 6445.8 6895.0 2777.8
Expenditure
Interest Expenditure Detail
Domestic Debt 1233.0 1073.4 867.3 622.9 536.2 389.8
Foreign Debt 283.1 300.3 336.5 303.6 331.1 190.6
Total Interest Expenditure 1516.1 1373.7 1203.8 926.5 867.3 580.4

Total Debt Payment Expenditure 3532.0 4886.7 5391.5 7372.3 7762.3 3358.2

Loan Payment Expenditure on


10.41 13.63 12.39 13.87 12.92 8.39
Public Expenditure ( In Percent)

Ratio of Public Debt to GDP ( In


34.26 32.67 28.17 25.58 27.93 24.1
Percent)

Source: Financial Comptrollers General Office and Nepal Rastra Bank.


*First Eight Month

2.70. Interest payment of public debt was Rs. 9.27 billion in FY 2014/15 and
Rs. 8.67 billion in its subsequent fiscal year. The amount of interest
payment has continued to decline since FY 2012/13.

38
2.71. The ratio of repayment of principal and interst against public debt, that
stood at 13.87 percent in FY 2014/15, came down to 12.92 percent in FY
2015/16.

Chart 2 (k) : Per Capita GDP and Debt

Source: Financial Comptrollers General Office and Nepal Rastra Bank.


*First Eight Month
Note: Population Statistics is based on the population projection (medium variant) of Central Bureau of Statistics

2.72. Per capita debt stood at Rs. 22,081 in FY 2015/16. Such debt has reached
Rs. 21,665 in the current fiscal year while the total outstanding loan of
the first eight month of current fiscal year is accounted for. Per capita
GDP has been four times higher as compared to per capita debt in the
current fiscal year. Per capita debt seems to be further increased by the
end of current FY 2016/17 since total outstanding debt is likely to
further rise by the end of current fiscal year.

2.73. Per capita foreign debt that stood at Rs.13,674 in FY 2015/16 has gone
down to Rs. 13,574 on the basis of the total outstanding foreign debt of
the first eight months of current fiscal year. The growth of per capita
GDP is comparatively high as compared to per capita debt and per capita
foreign debt.

39
Table 2 (l) : Net Domestic Loan Issued ( In NRs. 10 Million)
Description 2011/12 2012/13 2013/14 2014/15 2015/16
Gross Issuance 3641.87 1904.29 1998.29 4242.31 8777.45
Treasury Bill 1728.34 1900 1000 1000 2050
Development Bonds 1400 - 900 3000 6200
National Saving Bonds 500 - 90.65 - -
Citizen Saving Bonds 12.66 - - 233.94 500
Foreign Employment Saving Bonds 0.87 4.29 7.64 8.37 27.45
Special Bonds - - - - -
Gross Payment 662.68 2116.14 2516.71 4745.49 5040.24
Treasury Bill 600 1415.6 1000 2661 2429.9
Development Bonds - 590.85 1350 2004.09 1017
National Saving Bonds - - - - 1568
Citizen Saving Bonds 62.64 93.93 166.71 80 25
Foreign Employment Saving Bonds - - - 0.4 0.34
Special Bonds 0.4 15.76 - - -
Net Domestic Loan 2979.19 -211.85 -518.42 -503.18 3737.21
Treasury Bill 1128.34 484.4 - -1661 -379.9
Development Bonds 1400 -590.85 -450 995.91 518.3
National Saving Bonds 500 - 90.65 - -1568
Citizen Saving Bonds -499.8 -93.93 -166.71 153.94 475
Foreign Employment Saving Bonds 0.87 42.9 7.64 7.97 27.11
Special Bonds -0.4 -15.76 - - -
Source: Nepal Rastra Bank.

2.74. The domestic debt issued by using various debt instruments stood at Rs.
87.77 billion while loan repayment accounted for Rs. 50.40 billion in FY
2015/16. Such loan stood at Rs. 42.42 billion in FY 2014/15 while
repayment of loan was at Rs. 47.45 billion in that year. Net domestic debt
issued remained positive by Rs. 37.37 billion in FY 2015/16 since
repayment was lower than the domestic debt issued. However, it was just
the reverse in FY 2014/15 and thus the net domestic bebt issued
remained negative by 5.03 billion since repayment of domestic loan was
higher than the issue of domestic debt in FY 2014/15.

2.75. Of the total domestic debt issued in FY 2015/16, development bond had
the highest share with 70.64 percent followed by treasury bills with 23.36
percent, citizens saving certificate with 5.7 percent and foreign
employment saving certificate with 0.31 percent. The share of
development bond was also the highest with 70.72 percent to the total
domestic loan even in FY 2014/15. However, treasury bill had the
highest share with 50.04 percent in FY 2013/14.

40
Local Bodies Fiscal Arrangement
Grants to Local Bodies
2.76. In the federal structure, local levels have been transformed to 479 village
municipalities, 248 municipalities, 13 sub-metropolis, 4 metropolis and
75 district coordination committees. Such bodies have been delivering
services and performing development works as transformed local level
entities. A study report has been received on grants to be made available
to local level entities from FY 2017/18 in the changed context, to replace
that was being provided to them annually.

Table 2 (m) : Income and Expenditure Details of Local Bodies (In NRs. 10 Million)
Description 2012/13 2013/14 2014/15 2015/16
1. District Development Committee (DDC)
Grants Received From Nepal Government 2084.3 2671.0 2672.0 2718.0
Internal Resource and Revenue Disbursement 275.60 357.46 457.80 410.29
Total Allocated Fund for Expenditure 2359.91 3028.46 3129.80 3128.29
Real Net Expenditure 1795.8 2678.0 2519.9 2333.0
2. Municipality
Grants Received From Nepal Government 428.42 334.52 496.67 1206
Internal Resource and Revenue Disbursement
336.56 378.25 409.98 696.44
Total Allocated Fund for Expenditure 764.98 712.77 906.65 1902.44
Real Net Expenditure 676.87 617.49 797.85 1045
3. Village Development Committee (VDC)
Grants Received From Nepal Government 669.2 821 736 805
Internal Resource and Revenue Disbursement
117.13 130.22 89.65 -
Total Allocated Fund for Expenditure 786.33 951.22 825.65 805
Real Net Expenditure 764.91 934.04 934.04 801
Summary
Description Fiscal Year
2012/13 2013/14 2014/15 2015/16

Gross Internal Revenue of Local Bodies 729.29 865.93 957.43 1106.73

Total Grants Received by Local Bodies 3181.93 3826.53 3904.7 4729

Total Income of Local Bodies 3911.22 4692.46 4862.1 5835.73

Share of Internal Income of Local Bodies in Total


18.65 18.25 19.69 18.96
Income
Source: Ministry of Federal Affairs and Local Development and Local Bodies Fiscal Commission Secretariate

41
2.77. The grants to District Development Committee (DDC) from the
government of Nepal was Rs. 26.72 billion in FY 2014/15 and reached
to Rs.27.18 billion in FY 2015/16. The internal revenue of DDC stood at
Rs. 4.57 billion in FY 2014/15 while this dropped to Rs. 4.10 billion in
its subsequent fiscal year 2015/16. Of the total allocated fund to DDC,
74.58 percent has been spent in FY 2015/16. Such expenditure stood at
80.51 percent in FY 2014/15.

2.78. The government provided grant amount of Rs. 4.97 billion to


municipalities in FY 2014/15 while such grant stood at Rs. 12.06 billion
in its subsequent fiscal year. The total internal revenue of municipalities
that stood at Rs. 4.10 billion in FY 2014/15 rose to 6.96 billion in FY
2015/16. Of the total allocated fund to municipalities, 55.0 percent has
been spent in FY 2015/16 against such expenditure of 88.0 percent in FY
2014/15.

2.79. The government of Nepal had disbursed grant of Rs. 7.36 billion to
VDCs in FY 2014/15 while such grant stood at Rs. 8.05 billion in its
subsequent fiscal year. The total income of the VDCs stood at Rs.896.5
million in FY 2014/15. Of the total allocated fund for VDCs, almost all
amount has been spent in FY 2015/16.

2.80. Internal revenue of local bodies stood at Rs. 9.57 billion in FY 2014/15
which grew by 15.6 percent to Rs. 11.07 billion in FY 2015/16. The
government of Nepal had provided local bodies with grants of Rs. 47.29
billion in FY 2015/16.

2.81. The ratio of internal revenue to total income of local bodies that stood at
19.69 percent in FY 2014/15 declined to 18.96 percent in FY 2015/16.

Table 2 (n) : Government Grant to Local Bodies (In NRs. 10 Million)


Grants 2012/13 2013/14 2014/15 2015/16 2016/17
DDC Capital Grant 133.68 137.0 127.30 136.96 132.6
DDC Recurrent Grant 309.79 195.0 207.40 230.49 267.42
Total 443.48 332.0 334.70 367.46 400.02
VDC Capital Grant 512.65 664.40 579.40 663.44 1383.2
VDC Recurrent Grant 156.60 156.60 156.60 141.74 172.25
Total 669.25 821.0 736.0 805.18 1555.45
Municipality Capital Grant 94.14 115.0 378.80 506.56 1176.05
Municipality Recurrent Grant 11.0 0.0 36.0 123.01 133.09
Total 105.14 115.0 414.80 629.57 1309.15
Local Development Capital Charge
123.70 195.68 200.43 234.63 -
Fund
Local Development Recurrent
39.97 64.32 61.12 108.73 -
Charge Fund
Total 163.68 260.0 261.55 343.37 -
Grand Total 1381.55 1528.0 1747.05 2145.59 3264.62
Source: Ministry of Federal Affairs and Local Development and Local Bodies Fiscal Commission Secretariate

42
2.82. The grant amount, which was availed to existing 58 municipalities
through the local development fund heading has been topped up on the
municipal grant from FY 2016/17. The grant amount to DDCs, VDCs
and municipalties has increased by 52.15 percent to Rs. 32.65 billion in
the current fiscal year as compared to such allocated amount of Rs. 21.46
billion in FY 2015/16.
2.83. The amount that to be made available to VDCs and municipalities has
been doubled in FY 2016/17 with a view to provide support to VDCs for
ther development as a local level government. The grants provided to
VDCs, which stood at Rs. 8.05 billion in FY 2015/16 reached Rs. 15.55
billion in the current fiscal year. Likewise, grant amount that was made
available to municipalities in the current fiscal year 2016/17 totaled Rs.
13.09 billion against such grant of Rs. 6.30 billion in the previous fiscal
year 2015/16.
2.84. The grant amount of Rs. 3.67 billion that was allocated for DDCs in FY
2015/16 has grown by 8.86 percent to Rs. 4.0 billion in the current fiscal
year. Of this, Rs. 2.67 billion is allocated as recurrent grant while Rs.
1.32 billion as capital grant.
2.85. Recurrent and capital grants of Rs. 1.42 billion and Rs. 6.63 billion were
allocated respectively for VDCs in FY 2015/16, which totals Rs. 1.72
billlion and Rs. 13.83 billion respectively in the current fiscal year
2016/17.
2.86. The total grants to municipalities remain at Rs. 13.09 billion including
recurrent grant of Rs. 1.33 billion and capital grant of Rs. 11.76 billion in
the current fiscal year 2016/17. This amount was Rs. 6.30 billion in the
previous year.
Challenges
2.87. As there shall be three-tier of governments in federalism, investments on
socio-economic infrastructure need to be guaranteed through proper
distribution of means and resources. It has been a major challenge to
justify the utilization of public resources by assuring the prioritization of
expenditure and revenue distribution among federal, provincial and local
levels in the management of federal system. Moreover, enhancing fiscal
utilization capacity of three-tier governments for optimum utilization of
means and resources remains a challenge.
2.88. Economic growth, employment opportunities, and poverty reduction
initiatives have been affected for failing to boost public expenditure on
productive sectors.In addition, there has been huge surplus owing to

43
inability of the government to make timely capital expenditure.
Mobilizing public expenditure for economic expansion and building the
national economy is a daunting challenge.
2.89. With possibility of rise in recurrent expenditure in the initial stage of
federalism, a balance between recurrent and capital expenditures
requires to be maintained to ensure the means and resources for
development. Hence, containing the annually increasing recurrent
expenditure within a desirable limit without hindering the pace of
development remains a challenge.
2.90. It is a challenging task to enhance federal finance by developing the
revenue sytem as per the federal structure and increasing the ratio of tax
revenue to GDP through the development of a neutral and transparent tax
system as well as voluntary compliance of tax.
2.91. It is a challenge to enhance revenue capacity by improving the tax
compliance and widening of the tax base. In addition, there is a challenge
to make tax laws and institutional capacity time relevant to boost
investment in the context of globalization while protecting Nepal’s
national tax base.
2.92. There is a risk of attaining sustained revenue growth due to significant
contribution of foreign trade based revenue to total revenue mobilization.
Hence, the task of ensuring resources through revenue surplus by raising
the level of contribution of VAT, income tax, and excise duty remains a
challenge.
2.93. Reducing dependency on foreign aid for country’s development finance
by enhancing the development capacity and utilizing foreign aid for
national benefit and priority sectors is a challenging task..
2.94. The total outstanding debt to GDP ratio of Nepal is the lowest among
South Asian countries. Moreover, there is ample fiscal space to mobilize
public debt. There remains a challenge of mobilizing public debt in
productive sectors through proper utilization of fiscal space to meet the
growing development needs. In addition, developing methods and
systems for executing constitutional provision of acquiring loan from
both provincial and local levels is a challenging task.
2.95. Development of national economy is a must to reach the destination of
economic prosperity. For this, formulation and execution of public
finance policy that strikes balance between economic growth and equity
is a challenging task.

44
3. Price

Inflation rate recorded lowest in FY 2016/17after eight years due to


comfortable supply situation and money supply contained within a desirable
level. In review period, food price inflation has been lower than non-food
items.Owing to infrastructural problems like weak road network, and
inadequate supply arrangements, inflation is fluctuating and varying on
geographical basis. Wholesale price inflation has remained low, while
salaries and wage rate indices have gone up with increased salaries of civil
service employees.

3.1 Monetary stability or price stability has been an important aspects of


overall economic stability of Nepal. Price stability plays a key role for
achieving the target of overall economic growth including that of poverty
reduction. Thus, monetary policy of Nepal has also a target of maintaing
inflation rate at a desired level.

Structure and Trend of Inflation


3.2 Higher inflation rates recorded in the past years have been the matter of
prime concern of macroeconomic policy. The average inflation rate stood
at 8.9 percent while that of food item remained at 9.9 percent and non-
food items at 8.0 percent during the period from FY 2010/11 to FY
2015/16. The inflationary pressure that remained high for past eight years
dropped in FY 2016/17.
Chart 3 (a) : Inflation Trend in Nepal (2009-2016, In Percent)

45
3.3 Inflation rate has remained volatile as well. Overall inflation rate that
remained at 4.0 percent in FY 2003/04 grew to 12.6 percent in FY
2008/09, while it has dropped again in the current fiscal year. Food
inflation has been highly fluctuating than non-food inflation in the past.
Inflation in India, fluctuations in prices and supply of petroleum
products, monopolistic trend, black marketing, unhealthy competition,
closures and strikes, and inconvenient structural and supply systems
among others have been the contributing factors for such volatility.
3.4 Contribution of inflation on food items to overall inflation has been
comparatively higher. The food price inflation had higher contribution
than non-food price inflation to overall inflation in majority of the
months since October, 2008, which has reversed since February, 2015.
The contribution of food price inflation to overall inflation that had
remained at 58.11 percent ( 4.12percentage point) in fiscal year 2014/15
dropped to 48.24 percent ( 4.80 percentage point) in its subsequent fiscal
year. Likewise, the contribution of inflation on non-food items to overall
inflation rose to 51.76 percent (5.15 percentage point) from 41.89 percent
( 2.97 percentage point) during the same period.
Chart 3 (b) : Overall Inflation Rate(1996-2016, In Percent)

Overall Consumer Price Situation


3.5 The average consumer price inflation rate in the first eight months of
current fiscal year has stood at 5.1 percent against 9.7 percent during the
corresponding period of previous fiscal year. On year-on-year (y-o-y)

46
basis, consumer price index has stood at 2.9 percent in mid-February,
2017 while such rate was 10.2 percent during the same period of
previous year. Consumer price inflation fell owing to improved supply
situation, lower inflation rate of India and base effect.
Table 3 (a) : Consumer Price Inflation on Year-on-Year Basis
(Base Year 2014/15= 100, Percentage Change)
Month 2012/13 2013/14 2014/15 2015/16 2016/17
Aug/Sep 11.9 7.9 7.5 6.9 8.6
Sep/Oct 11.2 8 7.6 7.2 7.9
Oct/Nov 10.5 8.4 7.5 8.2 6.7
Nov/Dec 10.5 10 7.2 10.4 4.8
Dec/Jan 10.4 10.3 7 11.6 3.8
Jan/Feb 9.8 9.7 6.8 12.1 3.2
Feb/Mar 10.1 8.8 7 11.3 3.3
Mar/Apr 10.2 8.9 7 10.2 2.9
Apr/May 9.5 9.4 6.9 9.7 -
May/Jun 8.7 9.7 7.1 10 -
Jun/Jul 8.2 9.5 7.4 11.1 -
Jul/Aug 7.8 8.1 7.6 10.4 -
Average 9.9 9.1 7.2 9.9 5.1
Source: Nepal Rastra Bank

Group-wise Consumer Price Situation


3.6 The price index of food and beverage group on y-o-y basis has decreased
by 0.4 percent during review period while such index had grown by 10.3
percent in the same period of previous fiscal year. The reason behind
such decline in price index was mainly due to the reduction in the prices
of pulses by 11.2 percent, vegetables by 8.3 percent while that of ghee
and oil under this group by 5.8 percent.
3.7 The price index of non-food item and service group has increased by 5.6
percent on y-oy basis by mid-March, 2016 while this had grown by 10.2
percent during the same period last year. The price index of this group
remained low due to the lower price rise in the sub-groups including
those of garments and foot wares, household commodities, service and
education, communication, health among others. The price index of
garments and foot-wares rose by 7.4 percent and that of household
commodities by 7.7 percent, education by 8.9 percent and furnitures and
houehold appliances by 4.7 percent.

47
Table 3 (b) : Change in National Consumer Price Index on Year-on-Year Basis
(Base Year 2014/15=100, Percentage Change)
Weightage Fiscal Year (Feb/March)
Consumable Goods
Percent 2013/14 2014/15 2015/16 2016/17
Total (a+b) 100 8.9 7 10.2 2.9
a. Food and Beverage Item 46.8 10.8 9.5 10.3 -0.4
Cereals and Cereals made Items 14.8 11.7 7.8 9.2 -0.1
Lentils 2 6.8 16.7 31.6 -11.2
Vegetables 5.7 13.9 4.8 6.8 -8.3
Meat and Fish 5.7 13.5 9.9 6.5 0
Dairy Products and Eggs 5 6.7 16.8 11.9 3.9
Ghee and Oil 2.7 0.3 -0.4 18.8 -5.8
Fruits 2.2 14.1 10.4 9.2 0.9
Sugar and Sweets 1.4 -3.5 -0.1 6.7 15.2
Spices 1.5 10.5 12 16.6 2.4
Soft Drinks 1 2.4 4.2 4.7 3.1
Liquors 1.7 22.5 21.1 14.5 10.7
Tobaco Products 0.9 25.3 26.6 7.9 4.6
Restaurant and Hotels 2.4 9.5 11.3 9.9 5.1
B. Non-Food Items and Services 53.2 7.1 4.9 10.2 5.6
Garments and Footwears 8.5 12.2 10 15.3 7.4
Household Goods and Services 10.9 5.1 0.9 13.1 7.7
Furnitures and Household Equipments 4.9 9.4 8.9 6.8 4.7
Health 3.3 9.1 4.3 2.5 2.2
Transport 6 4.9 0.5 3.4 -1.3
Communication 3.6 0.1 0.3 5.7 0
Entertainment and Culture 5.4 7.5 6.2 4.8 1.7
Education 8.5 7.8 5.5 12.4 8.9
Other Goods and Services 2.2 6.5 8.3 8.1 5.7
Source: Nepal Rastra Bank

Region-wise Consumer Price Situation


3.8 Inflation rate has been higher in hills by geographical region. During
review period, consumer price inflation of Kathmandu Valley remained
at 1.9 percent, hills at 5.9 percent, mountain accounted for 5.9 percent
while that of Terai stood at 2.8 percent. Such rate of Kathmandu valley
stood at 12.7 percent, hills at 10.4 percent, mountain at 8.5 percent while
that of Terai stood 8.6 percent during the same period last year. Weak
road networks and poor supply situation at the micro level have resulted
in higher cost of production and region-wise price differences.

48
Chart 3 (c) : Inflation Rate by Geographical Regions(2015-2016 In Percent)

Source: Nepal Rastra Bank

Wholesale Price Index


3.9 Wholesale price inflation on y-o-y basis remained at 1.0 percent in mid-
March of fiscal year 2016/17 against 5.5 percent in the same period of
the previous fiscal year. Price index of agricultural commodities under
wholesale price has dropped by 0.2 percent while that of domestically
produced goods and imported goods rose by 4.2 percent and 1.8 percent
respectively. Price indices of agricultural commodities and domestically
produced goods had increased by 9.1 percent and 6.3 percent while that
of imported goods declined by 2.8 percent during the same period of
previous fiscal year
3.10 Under the agro-products group, the prices of cash crops and fruits and
vegetables have dropped by 12.8 percent and 7.6 percent respectively
while those of spices and animal products sub groups have increased by
10.8 percent and 7.2 percent respectively. Likewise, both the prices of
beverages and tobacco products under domestically produced industrial
goods group and those of food items group have registered growth of 6.0
percent while those of construction material have declined by 1.3
percent. Similarly, prices of transport materials and machineries under
imported goods group attained lofty growth of 13.2 percent but those of
petroleum products and coal slid by 12.8 percent.

49
Table 3 (c) : Change in National Wholesale PricenIndex on Year-on-Year Basis
(Base Year 1999-00=100, In Percent)
Weightage Fiscal Year (Feb/Mar)
Group
Percentage 2013/14 2014/15 2015/16 2016/17
Aggregate Wholesale Price Index 100 8.3 5.5 5.5 1
Agricultural Goods 49.6 11.3 8.4 9.1 -0.2
Domestically Produced Industrial
20.4 6.7 6 6.3 4.2
Goods
Imported Goods 30 3.7 -0.8 -2.8 1.8
Source: Nepal Rastra Bank.

National Salary and Wage Rate Index


3.11 The annual point-to-point based salary and wage rate index increased by
14.1 percent in mid-March, 2017 in contrast to its increment of 4.6
percent during the same period of previous fiscal year. During review
period, salary index increased by 18.9 percent and wage rate index by
13.0 percent. The government of Nepal has increased the salaries of civil
service employees which consequently led to such growth in salaries and
wage rates. On the salary index, so of the civil service, military and
police force, education and public enterprises sub-groups have registered
growth of 24.2 percent, 23.6 percent and 20.7 percent respectively.
Likewise, wage-rate index of construction laborers, agriculture laborers,
and industrial laborers have increased by 13.0 percent, 13.5 percent and
11.6 percent respectively.
Table 3 (d) : Y-O-Y Based Change in Nationaal Wage Salary and Wage Rate Index
(Base Year 2001/02=100, In Percentage)
Weightage Fiscal Year (Feb/Mar)
Consumable Goods
Percentage 2013/14 2014/15 2015/16 2016/17
Gross Indices 100 16.9 6.8 4.6 14.1
1.Salary Index 27 26.4 7.6 0.8 18.9
1.1 Civil Service 2.8 31.3 9.7 0 24.2
1.2 Public Enterprises 1.1 27.6 7.5 0.7 21.7
1.3 BFIs 0.6 47.7 4.3 2.3 12.9
1.4 Army and Poiice Force 4 34.5 8.5 0 23.6
1.5 Education 10.6 30.5 9.1 1.5 20.7
1.6 Private Academies 7.9 0 0 0 0
2. Wage Rate Index 73 14.8 6.6 5.5 13
2.1 Agriculture Laborers 39.5 11.1 7.9 5.6 13.5
2.2 Industrial Laborers 25.2 24.8 2.7 3.6 11.6
2.3 Construction Laborers 8.3 10 10.4 10.2 13
Source: Nepal Rastra Bank

50
Retail Prices of Daily Consumable Goods

3.12 Of the daily consumable goods, the average retail prices of ten major
agricultural commodities including lentils, mustard oil, clarified butter
and mutton have increased in mid-March, 2017 as compared to those of
mid-August 2016 while those of wheat flour, black-grams, potato, dried
onion and fresh ginger have fallen. Likewise, until this period, prices of
other items except those of mustard oil, butter, ginger and meat have
remained lower in Terai than in hills.
Table 3 (e) : Average Market Price of Major Food Items (NRs/Kg)
2016/17*
Name Hill Terai Nepal
Aug/Sep Feb/Mar Aug/Sep Feb/Mar Aug/Sep Feb/Mar
Coarse Rice 46.8 45.0 40.7 42.8 43.7 43.9
Wheat Flour 51.5 44.8 39.9 43.8 45.7 44.3
Black Lentil 268.8 257.8 198.2 179.3 233.5 218.5
Peagon Peas 232.3 246.0 199.5 194.3 215.9 220.2
Mustard Oil/Liter 187.3 181.8 172.5 193.2 179.9 187.5
Clarified Butter 702.5 737.5 791.3 879.3 746.9 808.4
Mutton 637.5 647.5 645.8 681.3 641.6 664.4
Potato (Red) 51.5 36.3 37.3 21.8 44.4 29.0
Dried Onion 46.5 42.8 33.0 31.5 39.8 37.1
Fresh Ginger 113.8 68.8 98.0 83.8 105.9 76.3
Source: DoA, Agribusiness Promotion and Marketing DevelopmentDirectorate
*Preliminary Data

Price of Crude Oil and Gold in International Market


3.13 During review period, price of crude oil that remained at USD 39.41 a
barrel in mid- March ,2016 has escalated by 27.1 percent to USD 50.10
in the same period of 2017. The price of oil rose due to the decision made
by the organization of petroleum exporting countries (OPEC) to curtail
the oil production volume.
Table 3 (f) : Prices of Gold and Silver in Internatioonal Markets
Percentage
Mid-July Mid-March Chang
Name (Feb/Mar)
2014 2015 2016 2014 2015 2016 2015 2016
Oil (Dollar/Barrel*) 104.7 57.3 46.3 54.8 39.41 50.1 -28.1 27.1
Gold
1310 1144.4 1283.3 1152 1264.8 1204.2 9.8 -4.8
(Dollar/Ounce**)
Source: Nepal Rastra Bank
* Crude Oil Brent,
** Based on London Price

51
3.14 The price of gold that had stood at USD 1,265 per ounce until mid-March
2016 dropped by 4.8 percent reaching USD 1,204 an ounce by the same
period of current fiscal year.

Price Trend of Petroleum Products in Nepal


3.15 Since last few years, fall in the prices of petroleum products in
international market caused to decline their retail prices in Nepal as well.
Of the petroleum products, the price of petrol that had stood at Rs. 120
per litre in FY 2010/11 gradually went up to Rs. 135 per litre in FY
2013/14 and plummeted again to Rs. 101.5 a litre in current fiscal year
2016/17. Likewise, the prices of diesel and kerosene were Rs. 89 per litre
in FY 2010/11 which went up and rested at Rs. 106 per litre in FY
2013/14 but slid again to Rs. 77.5 a litre in FY 2016/17.
3.16 Arrangement for wholesale distribution of petroleum products are being
made through Biratnagar, Birgunj, Amlekhgunj, Kathmandu, Pokhara,
Bhairahawa, Nepalgunj, Surkhet, Dang, Dhangadhi, Dipayal and
Janakpur. Both the wholesale and retail prices of petroleum products are
set on the basis trasnportation distance. The retail price of petrol in
Kathmandu valley stands at Rs. 101.50 a litre as of mid-March 2017
while that of diesel and kerosene is Rs. 77.50 a litre and that of aviation
fuel is Rs. 109 per litre.
Chart 3 (d) : Prices of Petroleum Products in Nepal 2001-2015 (In NRs.)

Source: Nepal Rastra Bank

52
Supply Situation
3.17 The supply of petrol increased by 106.3 percent, diesel by 110.8 percent,
aviation fuel by 161.2 percent, LP Gas by 85.6 percent and that of
kerosene by 68.2 percent in the first eight months of current fiscal year
2016/17 as compared to the corresponding period previous fiscal year.
Table 3 (g) : Supply of Petroleum Products
First Eight Month Percentage Change
Petroleum Products
2015/16 2016/17 March/April
Petrol (KL) 117789 242943 106.3
Diesel (KL) 346380 730208 110.8
Kerosene (KL) 6883 11574 68.2
Aviation Fuel (KL) 37158 97004 161.1
LP Gas (MT) 101392 188170 85.6
Source: Ministy of Supply, Government of Nepal

Challenges
3.18 Despite several steps taken in the past to contain inflation rate within a
desired level, such rates still remained volatile. There lay a challenge of
bringing inflation rate within desirable limit by resolving supply related
problems and appropriate combination of monetary and fiscal policies.
3.19 Prices of goods and services also tend to vary by regions. In this context,
improving management of entire supply system including petroleum
products, expansion of storage capacity of essential commodities and
effective implementation of market monitoring, development of storage,
distribution and price information system for agro-products pose a big
challenge.
3.20 Multidimensional elements including demand and supply sides have been
factors influencing the inflation. There remains a major challenge to
contain inflation within desirable limit through effective implementation
and coordination of monetary, fiscal and supply policies. Moreover,
containing the inflation expectation through certainty of policy is a
daunting challenge.
3.21 Dual tasks of keeping the inflation within a desirable limit through
monetary policy, and publishing inflation rate by collecting prices are
being carried out. It is a challenging task to assign some other entities
with collection of prices and inflation computation works and publish the
prices of other goods and services also with the inclusion of real estates’
price index.

53
4. Money and Banking

The overall financial sector situation has been satisfactory in FY 2016/17.


Broad money supply remained within desired level while non-performing
loan ratio of the banking sector has declined. Deposit expansion of the
banking sector has shown normal trend. However, credit to deposit ratio of
banks and financial institutions has increased due to the improved economic
activities together resulting higher credit expansion. Status of overall
financial soundness indicators has been satisfactory while that of access to
finance is improving. Financial sector has helped towards maintaining
macroeconomic stability.Macroeconomic indicators have remained
satisfactory as a result of satisfactory progress of the financial sector.
4.1 Financial stability and dynamism along with monetary stability are
necessary for keeping the overall economic activities vibrant. Financial
development supports economic growth and access to finance makes
such growth more inclusive. In this context, Nepal’s financial sector
policy is focused on maintaining financial stability as well as developing
and enhancing the access to finance. Monetary policy has supported the
price and external sector stability.
Monetary Policy
4.2 Monetary policies and their mid-term review are formulated and
published since FY 2002/03. Quarterly review of monetary policy has
been in practice since FY 2016/17 in order to further improve
communication and transparency of the policy. It primarily focuses at
maintaining price stability, external sector stability, financial stability and
providing support to economic growth through liquidity management.
Stance of Monetary Policy
4.3 Monetary policy is in implementation with the objectives of addressing
the inflationary pressure from demand side exerted in the process of
economic recovery after devastating earthquake, lowering the fluctuation
in financial market, mobilizing financial resources in the productive
sector, and giving emphasis on financial inclusion.
4.4 The stance of the monetary policy has been set to cope with the risk on
external sector stability while ensuring economic stability through
execution of budget.

54
Economic and Monetary Target
4.5 Monetary policy for fiscal year 2016/17 has set the targets of maintaining
foreign exchange reserve that would cover import of goods and services
for at least 8 months by keeping consumer inflation at an annual average
rate of 7.5 percent, and making monetary arrangement necessary to help
achieve economic growth target of 6.5 percent.
4.6 The growth rate of broad money supply, which serves as an interim
target of monetary policy, was targeted to be contained at 17.0 percent
and total domestic credit at 25 percent, while maintaining the existing
exchange rate system. Moreover, credit to the private sector was
projected to grow by 20 percent.
Operational Instruments of Monetary Policy
4.7 Monetary policy instruments were employed with a view to achieve
economic and monetary targets. Cash Reserve Ratio (CRR), statutory
liquidity ratio, bank rates and refinancing rates were kept unchanged.
4.8 Continuity was given to direct sale and purchase, repo, reverse repo,
deposit auction and NRB bonds that are in operation under open market
operation by-laws, 2014.
4.9 An Interest Rate Corridor (IRC), which is considered as the modern
instrument of monetary policy, is implemented for the first time to drive
short-term interest rate on a desired path by containing volatility. More
effective monetary management is expected through regular operation of
repo and deposit collection practiced under IRC.
4.10 Arrangements were made for setting compulsory cash reserve ratio
period from one week to two weeks and maintaining at least 70 percent
of such cash reserves on daily basis.
4.11 The existing 4 percent normal refinance rate against refinancing facility
that is being made available with a view to provide support to overall
economic growth through its extension towards agriculture,
hydroelectricity, poultry and fishery businesses and other designated
productive sectors was not changed. Likewise, normal refinancing
facility was made available further to facilitate establishing luxury hotels
at tourist destinations such as Pathibhara, Maipokhari, Haleshi,
Langtang, Swargadwari, Upper Mustang, Gadhimai, Janakpurdham, Rara
and Khaptad.

55
4.12 The existing special refinancing rate of 1 percent has been kept
unchanged with a view towards promoting sick industry, small and
cottage industries, foreign employment, dalits, disadvantaged group,
Janajatis, women, differently able people, poor, and community people
run small businesses and to encourage exports. Likewise, additional
refinancing facility was made available with refinance rate of 1 percent to
the amount equivalent to the export of ostrich and cardamom framings
and bee keeping.

Table 4 (a) : Bank Rate, Refinance Rate and Cash Reserve Ratio (In Percent)
Fiscal Year
Instruments
2012/13 2013/14 2014/15 2015/16 2016/17#
Bank Rate 8.0 8.0 8.0 7.0 7.0
Refinancing Rates
Export Loan ( In Domestic
1.5 1.0 1.0 1.0 1.0
Currency
Export Loan ( In Foreign 0.25* 0.25* 0.25* 0.25* 0.25*
Currency)
1.5 1.0 1.0 1.0 1.0
Sick Industries
Small and Cottage Industries 1.5 1.0 1.0 1.0 1.0
Productive Sector
6.0 5.0 4.0 4.0 4.0
Mandatory Cash Ratio
Class “A” 6.0 5.0 6.0 6.0 6.0
Class “B”
5.5 4.5 5.0 5.0 5.0
Class “C”
5.0 4.0 4.0 4.0 4.0
Standing Liquidity Facillity
8.0 8.0 8.0 7.0 7.0
Standing Liquidity Facility Rate #
*Add to LIBOR Rate
Source : Nepal Rastra Bank
# Annual Projection

4.13 Continuity is given to special refinancing facility with a refinance rate of


1 percent for encouraging agriculture and small entrepreneurial
businesses-based income generating activities in specified 10 districts
having high severity of poverty and VDCs and municipalities in the
southern border of Parsa, Bara, Rautahat, Sarlahi, Mahottari, Dhanusha,
Siraha and Saptari districts.

Monetary Sector
Money Supply
4.14 In the first eight months of the current fiscal year 2016/17, broad money
supply and narrow money supply expanded by 9.5 percent and 2.2
percent respectively. Such growth rates in the corresponding period of

56
the previous fiscal year were 11.5 percent and 20.0 percent respectively.
Money supply increased due to the expansion of credits to the private
sector along with the improved economic activities.
Chart 4 (a) : Broad money and narrow money supply growth (on Y-o-Y basis)

Net Foreign Assets


4.15 During this period, net foreign asset (foreign exchange gain/loss
adjusted) has increased by 5.2 percent to Rs. 50.0 billion as compared to
the growth of Rs. 158.18 billion (21.2 percent) of previous fiscal year.
Net foreign assets during this period has remained low owing to sluggish
growth in remittance inflow and increased imports.
Gross Domestic Credit
4.16 Domestic credit has increased by 12.2 percent in the first eight months of
fiscal year 2016/17 against the growth of 5.5 percent in corresponding
period of the previous fiscal year. Domestic credit rose during the review
period owing to increased claim of banks and financial instituions on
private sector. During the review period, the net claim on government
has declined by 66.1 percent. Decline on such claims is attributed to the
government saving of Rs.195.71 billion by the end of mid-March of
current fiscal year. Such claim had declined by 60.5 percent last year.

57
Table 4 (b) : Factors Affecting Money Supply (In NRs. 10 Million)
Changes in First Eight Months
Monetary Aggregates 2015/16 2016/17*
Amount Percent Amount Percent
1 Net Foreign Assets (1.1-1.2) 15818.6@ 21.2 5005.6# 5.2
1.1 Foreign Assets 18910.8 22.3 3318.1 3.1
1.2 Foreign Liabilitieis 560.2 5.6 -827.3 -7.3
2 Net Domestic Assets (2.1-2.2) 5720.2@ 5.1 16312.1# 12.7
2.1 Net Domestic Credit 8471.7 5.5 22025.2 12.2
Net Credit to Government -7694.2 -60.5 -5802.0 -66.1
a
i. Net Claims on Governent -1466.7 -9.1 2267.4 11.2
ii. Government Deposit 6227.5 184.2 8069.4 70.2
b. Lending to Non-Finacial Institutions 55.7 -5.5 4.5 0.6
c. Lending to BFIs 319.2 19.8 429.9 24.6
i.Government 15.3 4.7 102.4 30.0
ii.Non Government 303.8 23.7 327.4 23.3
d. Lending to Private Sector 15902.4 11.6 27392.8 16.2
2.2 Net Non-Monetary Liabilities 2751.5@ 6.9 5713.1# 11.0
3 Money Supply M2 (3.1+3.4) 21538.5 11.5 21317.7 9.5
Money Supply M1 (b+a) 8514.8 20 1115.2 2.2
३.1 a. Money
4154.1 15.4 3437.7 10.5
b. Curent Deposits 4360.7 28.2 -2322.4 -13.2
3.2 Saving and Call Deposits 11543 12.1 -2101.8 -1.9
3.3 Time Deposit+ 1480.8 3 22304.2 36.6
३.4 Time and Saving Deposit (3.2+3.3) 13023.8 9 20202.4 11.6
*Provisional, @ Adjusted with exchange gain/loss,+ Including Margin Deposits
Adjusted with Exchange Rate Gain NRs. 2532.4
# Adjusted with Exchange Rate Loss NRs. 860.1
Source: Nepal Rastra Bank

4.17 Credits to the private sector in first eight months of the current fiscal year
grew by 16.2 percent (Rs. 273.93 billion) against the growth of 11.6
percent (Rs. 159.02 billion) in the same period of the previous year.
Claims on the private sector has grown owing to increased investments
of banks and financial institutions on industrial production, wholesale
and retail trades, construction, transport, communication and public
service sectors.
Table 4 (c) : Changes in Monetary Aggregates (on Y-o-Y Basis, In Percent)
March/April
Headings 2012/13 2013/14 2014/15 2015/16
2015 2016
Currency in circulation 14.9 16.2 18.7 21.3 22.3 16.1
Reserved Money 10.9 23.3 19.8 4.6 30.9 12.7
Current Deposit 13.4 20.4 21.5 13.7 58.9 -23.0
Fixed Deposit 14.3 11.8 15.1 21.6 9.6 61.3
Savings and Call Deposit 18.7 24.3 22.7 18.9 26.6 4.1
Credit to Private Sector 20.2 18.3 19.4 23.2 18.5 28.3
Narrow Money Supply 14.4 17.7 19.7 18.5 34.3 0.9
Broad Money Supply 16.4 19.1 19.9 19.5 23.6 17.4
Source: Nepal Rastra Bank

58
Reserve Money and Money Multiplier
4.18 Reserve money increased by 12 percent in the first eight months of the
current fiscal year 2016/17 against the increase of 4.8 percent in the
same period of the previous fiscal year. Increased deposit volume of
banks and financial institutions with Nepal Rastra Bank together with
growth in other deposits are attributable for such increase in reserve
money.
Table 4 (d) : Reserve Money and Money Multiplier
2016* Percent Change In First
2015 2015 2016
Headings Mid-March Eight Months
Mid-July Mid-March Mid-July
2015/16 2016/17
Reserved Money ( In Rs.
52289.8 54391.2 54705.3 61292.3 4 12
10 Million)
Narrow Money Multiplier 0.812 0.937 0.92 0.839 15.4 -8.8
Broad Money Multiplier 3.591 3.848 4.103 4.01 7.2 -2.3
*Provisional
Source: Nepal Rastra Bank

4.19 On money multipliers side, the broad money multiplier that had remained
at 4.10 points in mid-July 2016 has decreased by 2.3 percent to 4.01
points in mid-March 2017. In the same period, the narrow money
multiplier has decreased by 8.8 percent to 0.84 points from 0.92 points.
Broad money multiplier has declined owing to higher volume reserve
money as compared to that of money supply.

Implementation Status of Monetary Instruments


4.20 Liquidity has been managed through monetary instruments in order to
contain monetary aggregates and interest rates at desired level. Amount
equivalent to Rs.36.85 billion was mopped up through deposit auction,
Rs. 64.25 billion through reverse repo at different intervals during first
eight months of current fiscal year 2016/17. During the same period of
previous fiscal year, Rs. 297.5 billion was mopped up through deposit
auction and Rs. 162.77 billion through reverse repo at different intervals.
4.21 Liquidity of Rs. 33.21 billion has been floated through repo auction in
the first eight months of currrent fiscal year 2016/17. During the same
period, standing liquidity facility equivalent to Rs. 58.17 billion has been
utilized by commercial banks and financial institutions.

59
Table 4 (e) : Open Market Operation (In NRs. 10 Million)
First Eight Months
Description 2014/15 2015/16
2015/16 2016/17
Liquidity Mopped up 47680 59163 46937 10110
Outright Sale 600 910 910 -
a Reverse Repo Auction 31580 23595 16277 6425
Deposit Auction 15500 29750 29750 3685
NRB Bonds - 4908 - -
Liquidity Flow 0 0 0 4718
b Purchase Auction - - - 1397
Repo Auction - - - 3321
c Net Liquidity Mopped-up ( a-b) 47680 59163 46937 5392

4.22 By the first eight months of fisal year 2016/17, NRB has purchased USD
2.67 billion by itself from foreign exchange market (commercial banks)
and floated net liquidity equivalent to Rs. 286.98 billion. During the
same period of its preceding fiscal year, it had purchased USD 2.89
billion from foreign exchange market and floated liquidity equivalent to
Rs. 306.33 billion.
4.23 During the review period, USD 2.72 billion and Euro 95.0 million were
sold and INR 301.9 billion was purchased to meet the demand of Indian
currency. During the same perid of previous fiscal year, USD 2.03 billion
and Euro 10 million were sold and INR. 215.02 billion was purchased.
Interbank Transaction and Standing Liquidity Facility
4.24 In the first eight months of the current fiscal year 2016/17, commercial
banks carried out interbank transaction worth Rs. 750.49 billion while
transactions of other financial institutions (except those of commercial
banks) amounted to Rs275.85 billion. During the same period of previous
year, Commercial banks and other financial institutions had carried out
such transaction equivalent to Rs. 523.84 billion and Rs. 45.20 billion
respectively.
Interest Rate
4.25 The weighted average interest rate of 91-day Treasury Bills in mid-
March 2017 has increased as compared to the same period of previous
year. Such interest rate of 91-day treasury bill had stood at 0.53 percent
in mid-March 2016 while this rose to 0.74 percent in the same period of
current fiscal year. Similarly, the weighted average interbank rate of
commercial banks has remained at 0.90 percent in mid-March 2017 as
compared to such interest rate of 0.42 percent in the corresponding
period of previous fiscal year. Likewise, the weighted average interbank
60
rate of other financial institutions jumped to 7.96 percent in mid-March
2017 from 0.98 percent of the same period of previous year. Such varied
interest rates of commercial banks and other financial institutions
indicate the presence of friction in inter-bank market.
Chart 4 (b) : Diposite, Lending and Base Rate (Weighted Average, Percent)

4.26 The weighted average deposit interest rate of commercial banks has
remained at 5.04 percent and the weighted average lending interest rate is
10.6 percent in mid-March, 2017. Such interest rates stood at 3.06
percent and 9.17 percent respectively during the same period of previous
fiscal year. Likewise, average credit base rate of the commercial banks
has incresed to 8.30 percent in mid-March 2017 from 6.46 percent of the
same period last year.
Table 4 (f) : Structure of Interest Rate (In Percent)
Mid- Mid- Mid-
Mid-July Mid- Oct Mid-Feb Mid-Oct Mid-Feb
Weightage Average Interest Rates Apr July Apr
2015 2015 2016 2016 2017
2016 2016 2017
91-Day Treasury Bills 0.17 1.1 0.68 1.1 0.05 2.12 1.74 0.74
Interbank Rate
Among Commercial Banks 1.01 0.64 0.26 1.59 0.69 3.27 2.71 0.9
Among other BFIs 3.89 2.1 1.21 1.52 3.25 4.13 5.53 7.96
Deposit 3.94 3.55 3.32 2.94 3.28 3.3 3.98 5.04
Credit 9.62 9.46 9.29 9.06 8.86 8.62 9.31 10.6
Base Rate 7.88 7.22 6.82 6.32 6.54 6.43 7.1 8.3
Source: Nepal Rastra Bank

61
Deposit Mobilization and Credit Flow
4.27 The deposit volume of BFIs has increased by 8.3 percent (Rs. 166.49
billion) by the first eight months of the current fiscal year 2016/17
against its growth of 8.4 percent (Rs. 141.79 billion) in the same period
of previous fiscal year. By mid-March, 2017, the shares of current,
saving and fixed accounts to total deposit stood at 6.9 percent, 37.6
percent and 38.4 percent respectively. These ratios were 9.1 percent, 44.1
percent and 28.5 percent respectively in the same period of previous year.
The share of fixed deposit to the total deposit has increased as compared
to that of other deposits due to the increased interest rate on fixed
deposit.
Table 4 (g) : Deposit Mobilization and Credit Flow ( In Rs. 10 Million)
2016* Percent Change in First
2015 2015 2016 Eight Months
Headings Mid-March
Mid-July Mid-March Mid-July
2015/16 2016/17
Deposit Mobilization
Commercial Banks 145275 157032 175343 191516 8.1 9.2
Development Banks 23073 24247 26890 26861 5.1 -0.1
Finance Companies 7164 7785 6303 5677 8.7 -9.9
BFIs 168883 183062 201682 218330 8.4 8.3
Credit Flow (Private Sector)
Commercial Banks 108054 120451 136728 160834 11.5 17.6
Development Banks 19342 20697 23270 24778 7 6.5
Finance Companies 6497 7149 5686 5484 10 -3.6
BFIs 133893 148296 165684 191096 10.8 15.3
Source: Nepal Rastra Bank
*Provisional
+Adjusted Interbank Deposits

4.28 The credit to the private sector has increased by 15.3 percent (Rs. 254.12
billion) in the first eight months of the current fiscal year 2016/17 while
this had increased by 10.8 percent (Rs. 144.03 billion) in the same period
last year. Such credit of commercial banks and development banks stood
at 17.6 percent and 6.5 percent respectively while that of finance
companies decreased by 3.0 percent.

62
Table 4 (h) : Credit Flow by Sectors (In NRs. 10 Million)
Percentage
Change Share in Total
Sector Mid-Feb
Mid July (Mid July to Credit Flow
Mid-Feb, to Mid
2015 Mid Mar)
2015 July 2016
Agriculture 6516.0 7879.1 8545.3 8.5 4.4
Mines 352.6 340.4 329.5 3.2- 0.2
Productions 25556.6 29611.1 33170.5 12.0 17.1
Constrruction 15287.2 18287.2 21568.6 17.9 11.1
Metal Production,
Machineries, Electrical tools 1620.8 1947.3 2343.6 20.3 1.2
and Fitting.
Transport Equipment
2300.2 2994.2 3555.1 18.7 1.8
Production and Feetings
Transportation,Communicatio
6004.2 8396.7 10279.5 22.4 5.3
and Public Services
Wholesalers and Retailers 29746.5 37435.0 42306.0 13.0 21.8
Finance, Insurance, and Fixed
10725.3 13505.6 15736.6 16.5 8.1
Assets
Service Industries 10799.4 12657.5 14519.6 14.7 7.5
Consumable Loan 5868.8 6518.7 7919.4 21.5 4.1
Local Government 171.5 165.5 156.1 5.7- 0.1
Others 21259.6 28446.9 33243.8 16.9 17.2
Source: Nepal Rastra Bank

4.29 Credit flow towards various sectors has been expanded together with the
expansion of overall economic activities in FY 2016/17. Thus,
outstanding loan to the industrial production sector increased by 12.0
percent, wholesale and retail trades by 13.0 percent, construction sector
by 17.9 percent, transportation, communication and public service sector
by 22.4 percent and agriculture sector by 8.5 percent. The share of credit
to total credit lending towards agriculture sector has been merely 4.4
percent.

Financial Sector
4.30 As of mid-March of the current fiscal year, there are 28 commercial
banks, 55 development banks, 36 finance companies, and 50 class "D"
financial institutions licensed to carryout micro finance related
transactions. Similarly, 15 cooperatives and 25 non-government
organizations have obtained licenses from Nepal Rastra Bank to conduct
limited banking transactions. The number of BFIs has continued to
decline due to suspension of license issuance to establish commercial
bank, development bank, and finance companies and the rise in mergers
and acquisitions among banks and financial institutions to comply with
paid-up capital hike policy.
4.31 Apart from bank and financial institutions, various institutions including
27 insurance companies, Employees' Provident Fund, Citizen

63
Investments Trust, and Postal Saving Banks have been operating as
indispensable parts of the financial system. Likewise, a total of 117
Postal Saving Banks are in operation.
Table 4 (i) : Number of BFIs (As of Mid-July)
BFIs 2012 2013 2014 2015 2016 2017*

Commercial Banks 32 31 30 30 28 28
Development Banks 88 86 84 76 67 55
Finance Companies 70 59 53 48 42 36
Microfinance Institutions 24 31 33 38 42 50
NRB Licensed Coopeative with Limited
16 16 15 15 15 15
Banking Transactions

NRB Licensed NGO operating


36 31 29 27 25 25
Microfinance Transactions

Insurance Companies 25 25 25 26 26 27
Employees Providend Fund 1 1 1 1 1 1
Citizen Investment Trust 1 1 1 1 1 1
Postal Saving Banks 1 1 1 1 1 1
Offices of Postal Saving Banks 117 117 117 117 117 117
Source: Nepal Rastra Bank
*Mid-March

4.32 The share of commercial banks in the total deposit, credit lending and
assets of BFIs has continued to remain high. The share of commercial
banks in the total deposit , credit, and assets stood at 83.5 percent, 79.1
percent, and 80.6 percent respectively in mid-March, 2017.
Table 4 (j) : Share of BFIs to Total Deposits, Credit and Assets (Mid-March, 2017)
Institutions Total Deposits Total Lending Total Assets
Commercial Banks 83.5 79.1 80.6
Development Banks 11.7 12.1 13.4
Finance Companies 2.5 2.9 3.0
Other Institutions # 2.3 5.8 5.0
Source: Nepal Rastra Bank
# Microfinance Institutions and NRB Licensed Cooperatives

Financial Sector Stability


4.33 Banking sector has remained sound and stable in FY 2016/17. The ratio
of non-performing loan to total credits of commercial banks and finance
company groups has decreased while that of development banks has
increased marginally as compared to that of mid-July 2016. Non-
performing loan of commercial bank group that had remained at 1.82
percent in mid-July 2016 slid to 1.77 percent in mid-March 2017 while
that of development banks, which was 1.48 percent in mid-July 2016
rose marginally and stood at 1.78 percent in mid-March 2017. Similarly,

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non-performing loan of finance company group, which was 14.42
percent in mid-July 2016 went down to 13.18 percent in mid-March
2017.
Table 4 (k) : Financial Soundness Indicators (In Percent)
Mid-July Mid-July Mid-July Mid-July Mid-March
Indicators
2013 2014 2015 2016 2017
Non-Performing Loan Ratio 3.8 3.76 3.33 2.19 2.13
Commercial Banks 2.6 2.92 2.63 1.82 1.77
Development Banks 4.5 4.16 3.58 1.48 1.78
Finance Companies 16.0 14.33 14.58 14.42 13.18
Total Liquid Assets/Total Deposit Ratio 32.7 32.48 30.22 27.61 23.95
Cash and Bank Reserves/ Total Deposit
16.8 17.76 16.17 15.15 13.73
Ratio
Primary Capital/ Risk Weighted Asset
11.7 11.27 11.39 11.52 12.00
Ratio
Total Capital/Risk Weighted Asset
13.2 12.74 13.92 12.91 13.38
Ratio
Toral Credit/Total Deposit Ratio 76.50 76.45 76.83 79.80 84.80
Source: Nepal Rastra Bank

4.34 In mid-March 2017, liquid assets to deposits ratio stood at 23.95 percent
while the ratios of cash and deposits to total deposits stood at 13.73
percent, and the credit to deposit ratio remained at 84.80 percent. Such
ratios were 27.61 percent, 15.15 percent and 79.80 percent respectively
in mid-July 2016. Decline in such ratio was due to the lower growth rate
of total liquid assets and cash reserves with banks relative to deposits that
resulted from the expansion of credit to the private sector in the current
fiscal year. Likewise, the ratios of primary capital total capital to risk
weighted assets stood at 12.0 percent and 13.38 percent respectively.
Financial Deepening
4.35 Financial deepening has grown significantly through liberalization of
financial sector and financial sector reform programs. Financial sector
deepening indicators mainly, the ratio of broad money supply, credit to
the private sector, and total deposit to GDP have attained remarkable
growth. Broad money supply to GDP ratio that was 31.3 percent in FY,
1990/91 reached to 99.9 percent in FY 2015/16. Likewise, the ratio of
credit to the private sector to GDP and that of total deposit to GDP ,
which stood at 11.7 percent and 21.6 percent grew to 75.3 percent and
85.3 percent respectively in the same periods.

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Table 4 (l) : Financial Deepening Situation (In Percent)
Broad Money Supply to Private Sector Credit to Total Deposit to GDP
FY
GDP Ratio GDP Ratio Ratio
2031/31 12.5 4.7 6.9
2047/48 31.3 11.7 21.6
2056/57 49.0 28.8 37.9
2061/62 51.0 33.4 39.3
2066/67 60.3 42.0 48.4
2069/70 77.6 57.4 66.0
2070/71 79.7 58.6 68.1
2071/72 88.2 64.5 75.5
2072/73 99.9 75.3 85.3
Source: Nepal Rastra Bank

Access to Finance
4.36 Access to finance has gone up with growth in the number of BFIs over
the last ten years. By mid-March 2017, the number of deposit accounts
stood at 18.207 million, credit account totaled 1.157 million, the number
of ATMs reached 1,985, users of mobile banking service totaled 2.23
million, while that of internet banking service users reached 564
thousand.
Table 4 (m) : Some Indicators of Access to Finance
Mid-July Mid-July Mid-July Mid-July Mid-March
Indicators of Financial Access
2013 2014 2015 2016 2017
Total Number of BFIs Branches 2492 2604 2722 2896 3003
Commercial Banks 1486 1547 1672 1869 2013
Development Bank 764 818 808 852 836
Finance Companies 242 239 242 175 154
Population per Branch 10938 10617 10300 9818 9599
Number of Deposit Accounts 11403385 13129574 14934618 16836017 18206724
Number of Loan Acounts 849908 940005 1033383 1096570 1156841
Branchless Banking Centers - - - 812 940
Mobile Banking Service Users - - - 1754566 2236074
Internet Banking Service Users - - - 515465 564128
Number of ATMs 1499 1652 1721 1908 1985
Number of Debit Cards 3581726 4131242 4531787 4657125 4848053
Number of Credit Cards 38587 57898 43895 52014 58932
Number of Deposit Accounts per
678 761 844 929 983
1000 Adult Population
Number of ATMs per 1000 Adult
8.91 9.57 9.73 10.53 10.72
Population
Number of Branches per 100, 000
14.82 15.08 15.38 15.99 16.21
Adult Population
Number of Debit Cards per 100, 000
21297 23932 25611 25706 26177
Adult Population
Number of Credit Cards per 100,
229 335 248 287 318
000 Adult Population
Source: Nepal Rastra Bank
Population data are as per CBS projection (medium variant).

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4.37 Deposit accounts, ATMs, and the number of Bank branches among the
adult population are considered as key indicators of access to finance.
Improvements in such indicators point toward increased access to
finance. By mid-March of 2017, the number of deposit accounts per
thousand adult population stood at 983. Likewise, the number of ATMs
per 100,000 adult population reached 10.72 and the number of BFIs at
16.21, the number of debit cards issued totaled 26,177 while that of
credit card totaled 318 in the same period. Based on World Bank
statistics, situation of financial access in Nepal is very low in comparison
to developed and emerging countries.
Chart 4 (c) : Situation of Financial Access in Nepal as Compared to Other
Countries

Source : World Bank

4.38 By mid-March of current fiscal year 2016/17, the total number of


branches of banks and (A, B and C Class) financial institutions has
reached 3,003 while that of commercial banks reached 2,013, and those
of development banks and finance companies stood at 836 and 154
respectively. Considering the number of these branches as a benchmark,
Far Western and Mid-Western Development Regions are lagging behind
in terms of financial expansion. Of the total branches, 44.1 percent is in
the Central Development Region whereas only 5.1 percent is in the Far-
Western Development Region.

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Table 4 (n) : Branches of BFIs (Until Mid-March 2017)
Development Region/Zone Commercial Development Finance Total Share (%)
Bank Bank Companies
Eastern Development
365 96 25 486
Region 16.2
Mechi 99 37 8 144 4.8
Koshi 180 50 11 241 8
Sagarmatha 86 9 6 101 3.4
Central Development
956 286 82 1324
Region 44.1
Janakpur 105 35 1 141 4.7
Narayani 191 101 13 305 10.2
Bagmati 660 150 68 878 29.2
Western Development
384 336 37 757
Region 25.2
Gandaki 155 144 15 314 10.5
Lumbini 182 160 19 361 12
Dhaulagri 47 32 3 82 2.7
Mid-Western Development
190 85 8 283
Region 9.4
Rapti 72 45 5 122 4.1
Karnali 19 2 0 21 0.7
Bheri 99 38 3 140 4.7
Far-Western Development
118 33 2 153
Region 5.1
Seti 73 18 2 93 3.1
Mahakali 45 15 0 60 2
Grand Total 2013 836 154 3003 100
Source: Nepal Rastra Bank

Mergers and Acquisitions


4.39 The number of banks and financial institutions which enters into merger
and acquisitions process is growing after implementation of the merger
policy adopted to enhance the financial stability. A total of 134 BFIs
(including ‘D’class FIs) went into the merger and acquisition process by
mid-March 2017. Of this, licenses of 91 BFIs have been revoked, with 43
such institutions remaining.
Resolution
4.40 Of the total 16 BFIs that were declared problematic by now, resolution of
7 such institutions have already been carried out while 9 such institutions
are still in problematic condition. Deposits collected by these
institutions stands at Rs. 2.5 billion, while their credit investment totals
Rs.5.67 billion. The non-performing loan of these institutions is close to
97.5 percent, while the total capital fund is negative by almost 20
percent.

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“D” Class Microfinance Institutions
4.41 Various BFIs carrying out micro-finance related activities are availing
financial services to deprived communities particularly women living in
rural areas to engage them in income-oriented activities. The number of
"D" class financial institutions that carry out microfinance related
transactions has reached 50 in mid-April, 2017. Total asset/liability of
these institutions has increased by 21 percent to Rs. 115.76 billion in
mid-March, 2017 as compared to that of mid-July 2016. The total
deposits and borrowings of these institutions have reached Rs. 29.92
billion and Rs.61.08 billion in Mid-March, 2016 while loan and
investments totaled Rs. 97.7 billion and Rs.2.26 billion respectively.
Table 4 (o) : Sources and Uses of Fund of Microfinance Institutions (In NRs. 10
Milllion)
Mid-July Mid- Mid-July Mid- Percntage Change
Description
2015 March2016 2016 Marh,2017 2016 2017*
Capital Fund 620.4 845.5 867.4 1147.8 36.3 32.3
Deposit 1605.8 2066.2 2409.5 2992.2 28.67 24.2
Fund Borrowing 3849.7 4503.4 5243.1 6107.7 16.98 16.5
Others 526.8 737.7 720 1034.4 40.04 43.7
Profit/ Loss 260.4 222.7 330.6 293.7 14.47- -11.2
Resources /Uses 6863.1 8375.5 9570.7 11575.8 22 21
Liquid Fund 682.5 897.1 1107 1018 31.44 -7.1
Investment 247.8 295.1 284 226.4 19.1 -20.2
Utilization Credits/Borrowings 5532.7 6730.2 7723 9769.6 21.64 26.5
Others 395.4 452.6 455 559.1 14.46 23
Profit/Loss 4.6 0.5 1.1 2.7 88.88- 148.8
Source: Nepal Rastra Bank
*Provisional

Financial Sources of Other Financial Institutions and Utilization Status


Employees' Provident Fund
4.42 Employees Provident Fund, established in September 16, 1962 under the
Employees Provident Fund Act 1962, has been managing provident
funds of civil servants, military, police personnel, teachers, personnel of
government institutions and some other private companies. Besides
lending facilities and collecting funds from the depositors, the Fund has
also been investing in real-estate business, industries, and hydro-power
projects. Assets/liabilities of this Fund, which stood at Rs.224.70 billion
in mid-July 2016 has climbed to Rs. 245.65 by mid-March 2017. The

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total provident fund of the depositors has reached Rs. 237.44 by mid-
March, 2017.
Citizens’ Investment Trust
4.43 Founded under the Citizens Investment Trust Act, 1990, the Trust in
addition to mobilizing individual and institutional deposits, providing
credits and loans, has been working as an issue manager to facilitate
issuance of shares of various organized institutions. Asset/liability of
this Trust (Fund) that stood at Rs.83.05 billion in mid-July 2016 grew by
11.7 percent and reached at Rs.92.72 billion in mid-March 2017.
4.44 On the sources side, deposits (collection of fund) that stood at Rs.80.15
billion in mid- July, 2016 went up to Rs. 85.90 billion by mid-April,
2017. Of the total fund collected in the review period, the share of
Employee Savings Growth Retirement Fund is 68.5 percent; 2.0 percent
is that of Citizens' Unit Scheme; 14.5 percent is of Gratuity Fund
Scheme; 3.3 percent is of Investors’ Account Scheme; while the share of
collection from the Insurance Fund is 11.7 percent.
4.45 In fiscal year 2015/16, the Trust has completed issuance of general and
rights shares worth Rs.7.83 billion in merchant banking transactions
under its Capital Marketing Services. The Trust has not issued such
shares until mid-March of FY 2016/17.
4.46 Investments of the Citizen Investment Trust in various sector, which
stood at Rs. 76.48 billion in FY 2015/16 rose to Rs 81.40 billion by mid-
March, 2017. Of total investments so made by mid-March 2016, the
share of fixed deposits including fixed interest generating fund to total
investment stood at 74.2 percent, 2.2 percent is in government bond, 3.1
percent in share security bond, 5.0 percent in term-loans and 15.5 percent
in participating borrowing/housing loans.
Postal Savings Bank
4.47 Postal Savings Bank operating under the Department of Postal Services
of the Government of Nepal is in operation since 1974. Although 117
Post Offices are authorized to collect deposits, only 68 post offices have
been providing banking services. The total deposit of postal saving
banks, which was Rs 2,019.57 million in mid-July, 2016 stood at
Rs.2,014.0 million by mid-March 2017. Similarly, the number of
accounts in such banks that totaled 72,178 in mid-July, 2016 stood at
71,196 by mid-March, 2016.

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Deposit and Credit Guarantee Corporation
4.48 Deposit and Credit Guarantee Corporation, which was established with
the objective of accessing banking services at door-steps of the people in
remote areas and the poor by encouraging commercial banks to invest on
priority sectors, has been working on availing credit to priority sectors as
well as guaranteeing loans on livestock, vegetable farming; foreign
employment loans; micro-finance and loans to underprivileged groups;
and small and medium-scale enterprise loans. On its ownership structure
front, Government of Nepal owns 89.2 percent, NRB 10.0 percent, and
Nepal Bank Ltd and Rastriya Banijya Bank combined together share 0.8
percent of its shares.
Table 4 (p) : Credit and Deposit Guarantee Situation
Mid-March, Mid-July, Mid-March,
Description Mid-July, 2015
2016 2016 2017
Credit Guarantee
Amoount (In NRs. 10 million) 191 336 360 723
Number of BFIs 55 55 40 39
Number of Credits 42534 75949 81668 127059
Deposit Guarantee
Amoount (In NRs. 10 million) 28380 31835 31835 36549
Number of BFIs 164 150 150 120
Deposit Guarantee 11920960 13606483 13606483 15136827
Source: Deposit and Credit Guarantee Corporatiion

4.49 Deposit and Credit Guarantee Corporation provided credit guarantee of


Rs. 3.6 billion by mid-July 2016. The Corporation's guarantee coverage
has reached Rs. 7.32 billion by mid-March 2017. As per the directive
issued by NRB, A, B, C and D Class BFIs must provide guarantees to
deposit of up to Rs. 200 thousand made at personal saving and fixed
accounts. With this provision, the corporation provided guarantee for
deposits of Rs. 318.35 billion of 150 BFIs by the end of fiscal year
2015/16 while such guaranteed deposits with 120 BFIs have reached Rs.
365.49 billion by mid-March 2017.
Credit Information Bureau Limited
4.50 Credit Information Bureau collects information on repayment of loans,
and makes such information available to BFIs by preparing information
on blacklisted loan defaulters. The NRB, commercial bank group,
development bank group and finance company group own 10 percent, 65
percent, 10 percent and 15 percent of shares respectively in this Bureau.
By mid-February 2016, the number of blacklisted borrowers totaled
8,008 while 2,871 borrowers have been delisted from the black list in this
period.

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Rural Self-Reliance Fund
4.51 Rural Self-Reliance Fund, established in 1991, has been providing
wholesale credits with the objective of improving economic as well as
social status of targeted groups through optimum utilization of local
resources, means, and skills. By now, seed capital of the Fund has
reached Rs. 793.4 million with receipt of Rs.540 million from the
Government of Nepal and Rs. 253.4 million from NRB. The Fund has
been disbursing credits from the seed capital to its affiliated
organizations on the basis of their capacity and primary capital.
4.52 The Fund has disbursed credit amounting Rs. 2,225.6 million to 1,158
organizations including NGOs, cooperatives and Agriculture
Development Bank by mid-March 2016. Of this total credit, a sum of Rs.
1060.6 million has been recovered while credit of Rs. 619.7 million has
remained on investment. The Fund’s debt recovery rate against its credit
flow to cooperatives and NGOs stood at 94.8 percent. NGOs and
cooperatives have been delivering services in 70 districts through the
credit made available by the Fund, while such credits to be made
available for carrying out various income and self-employment programs
have directly benefited 57,925 rural families.
Table 4 (q) : Status of Rural Self-Reliance Fund (In NRs. 10 Million)
Mid- Mid- Mid- Mid-
S.N Description
July,2014 July,2015 July,2016 March,2017
1 Number of Credit Disbursed Districts 68 68 70 70
2 Number of Credit Disbursed Institutions 940 1024 1104 1158
3 Number of Family Beneficiaries 46081 49245 55304 57925
4 Disbursed Credit Amount (In Rs. 10 Million) 152.33 170.06 200.1 222.6
5 Amount Recovered ( In Rs. 10 Million) 91.3 116.5 144.4 160.6
6 Amount Remained on Investment ( In Rs. 10 Million) 61.04 53.56 55.6 61.0
Amount to be recovered from loan default (In
7 Percent)
3.67 5.38 4.7 5.2
8 Loan Recovery ( In Percent) 96.33 94.62 95.3 94.8
Source: Nepal Rastra Bank
* Included those of NGOs

Cooperatives Conducting Limited Banking Transactions


4.53 The number of Co-operatives, established under the Cooperatives Act,
1991 and licensed by NRB to carry out limited banking transactions has
reached 16 by mid-March 2016. Assets/liabilities of these Cooperatives
that totaled Rs. 32.52 billion by mid-July 2016, reached Rs. 32.71 billion
by mid-March 2017. Likewise, deposit collections of these cooperatives
reached Rs. 23.71 billion while credit and borrowings totaled Rs. 24.17
billion in mid-March 2017. These institutions have made total

72
investment of Rs. 1.74 billion in government bonds, fixed accounts and
other instruments by mid-March, 2016.
Financial Sector Reform and Other Provisions
4.54 In FY 2015/16, law relating to the financial sector has been drafted with
improvisation. NRB Act, 2002, Banking Fines and Penalties Acts, 2007,
Employees Provident Fund Act, 1962 and Banks and Financial
Institutions Related Act, 2016 have been revised. Likewise, Deposit and
Credit Guarantee Fund Acts, 2016 has made statutory base in the areas of
deposit and credit guarantee. Similarly, BFIs Merger and Acquisition
Bylaws, 2016 have been put in practice that is in line with international
norms and best practices, and also with accounting system adopted by the
Nepal Financial Reporting Standard.
4.55 Financial sector strategy for FY 2016/17 to FY 2020/21 is in
implementation. The strategy has drawn a clear five-year roadmap for
the development of banking, capital market, insurance, and other non-
banking sectors.
4.56 Financial positions of Rastriya Banijya Bank and Nepal Bank Limited
that are under the financial sector reform program, have improved as a
result of continuity given to their ongoing reform initiatives. . Currently,
the capital fund of both the banks have remained positive with significant
growth in their paid-up capital, low non-performing loan ratio, high
profit and notable expansion in their deposits making their financial
position satisfactory.
Table 4 (r) : Loan Default and Capital Fund
Loan Default in Total Loan ( Percent) Capital Fund in NRs. Billion
Mid-July
Rastriya Banijya Rastriya Banijya
Nepal Bank Ltd Nepal Bank Ltd.
Bank Ltd. Bank Ltd.
2011 60.47 60.15 -9.80 -23.39
2012 12.38 21.65 -5.72 -15.4
2013 4.53 5.31 -0.96 2.5
2014 4.74 3.95 3.76 2.9
2015 3.95 3.41 3.77 7.51
2016 2.72 3.95 3.24 12.52
Mid-March,2017 2.85 2.75 6.54 8.61
Source: Nepal Rastra Bank

4.57 Working Manual, 2016, related to provision of interest subsidy to youth


on agricultural credit, has been implemented. As per the new working
Manual, interest subsidy is raised from 4 percent to 5 percent, credit

73
limit is extended to Rs. 70 million, while single bank limit has been set at
3 billion, and Rs. 1 million limit is set for the borrowers on their products
or group guarantee. Further, loan limit for poor groups has been
extended as well.
4.58 As per provision that comes into effect from mid-August 2017, any
individual or company whosoever shall have to use banking instruments
while trading of goods and services or carrying out transactions
equivalent to Rs. 1 million or more.
4.59 Risk based supervision has been introduced for commercial banks so as
to make the supervisory tasks more effective. BASEL II has been applied
at National level class “B” financial institutions.
4.60 Policy has been adopted to provide licenses to class “D” FIs only in 10
districts namely Manang, Jumla, Humla, Dolpa, Kalikot, Mugu, Jajarkot,
Bajhang, Bajura and Darchula. Likewise, provision is made that
interest rate to be charged by these institutions against loan issued to their
clients shall not exceed 18 percent.
4.61 Provision is made for the commercial banks to issue at least 15 percent of
their total outstanding loan on agriculture and energy sectors. Likewise,
banks must make direct loan of at least 2 percent of their total loan in
process of extending credit to deprived groups.
4.62 Much stricter provision has been made for BFIs while disbursing loans
against the share guarantee of margin lending nature.
4.63 Payment and settlement bylaw, 2015 has been amended. Likewise,
licensing policy, 2016 for payment and settlement related institutions has
been formulated and implemented.
4.64 Provision has been made for non-requirement of licenses to open
branches in areas except Kathmandu valley, metropolis, sub-metropolis
and centers of metropolis. As per this provision, BFIs are required to
inform NRB within 7 days from the date of decision made by their
respective steering committees to to open such branches.
4.65 With the objective of ensuring smooth flow of credit to the productive
sector in consideration of the situation of dearth of funds that was
witnessed in the banking sector in the middle of FY 2016/17, the interim
arrangements applicable until mid-June 2017 have been made. As per
this provision, the BFIs are allowed to subtract the following items while
calculating the existing credit to deposit ratio of 80 percent : (i) the
deprived sector lending by the BFIs on direct 2 percent provision, (ii)

74
loan to be disbursed as per the working procedure on interest subsidy to
be provided to youths for commercial agricultural loan; and 50 percent of
credit flow to the productive sector.
Challenges
4.66 Despite extension of banking services with expansion of BFI branches,
access to finance still remains low. Financial accessibility could not be
expanded mainly due to the lower presence of BFIs in rural and remote
areas, and the lack of applications of other innovative products of access
to finance. There lay a challenge to achieve inclusive growth by
extending access to finance through financial literacy; application of
modern technology based financial instruments; and other financial
access related programs as a national campaign. Likewise, making
arrangement of at least one bank each at 744 local level centers as per
federal structure is a challenging task.
4.67 Despite contribution of saving and credit cooperative institutions to the
expansion of financial accessibility, overall cooperative sector lacks
regulation, supervision and institutional governance. Such an expansion
of shadow banking is likely to create parallel banking system and
financial risk in the long run. It is a daunting task to make institutional,
structural, legal, and regulatory arrangements for streamlining this sector
by clearly defining the roles of saving and credit cooperatives.
4.68 Despite uses of monetary instruments like interest rate corridor, and
deposits collection in the process of modernizing monetary policy, there
remains a challenge of containing inflaiton expectation to maintain price
stability by enhancing credibility through implementation of monetary
policy and transparency along the changing financial and external
sectors.
4.69 It is a daunting challenge to make the financial sector robust by further
improving regulatory and supervision works in relation to the impact of
international financial market, development in financial technology, and
fluctuations in economic activities.
4.70 The share of loan being disbursed against real estate as collateral
accounts for more than 60 percent of the total outstanding loan of the
banking sector. In this context, there remains a challenge to extend loan
against movable property through secured transaction related legal and
institutional arrangements.

75
4.71 Although the financial sector has achieved progress with reform program
in this sector, the condition of market friction exists in this sector as well
due to higher transaction cost resulting from information asymmetry in
the overall economy. Thus, there lay a challenge of reducing transaction
cost and monopolistic tendency by making financial information
available through development of this sector through implementation of
additional financial sector reform programs.
4.72 Despite the fact that NRB has initiated the task of streamlining the
payments system by organizing a separate department, shortcomings and
weaknesses in legal, policy, supervision, instrument, and systemic
innovation areas still persist. Task of developing payment system
together with financial innovation and development of technology and
financial sector is a daunting challenge.

76
5. Capital Market and Insurance

Stock market, which is a vital mechanism for economic growth by channeling


scattered savings all over the country to the productive sector, has undergone
through structural changes. Legal and policy arrangements have been made for
protecting the rights and benefits of share investor as well as regularizing and
organizing the duties and responsibilities of persons involved in the stock market
and businesses by managing issuance, purchase and sale of shares. In the context of
global stock market getting more modernized through the use of improved
technology, Nepal’s securities market is also becoming technology and investment
friendly due to implementation of complete dematerialization of share certificates,
introduction of ASBA system in the primary market, direct transfer of rights and
bonus shares together with cash dividend into shareholders’ accounts.

Capital Market
5.1. There has been encouraging participation of general public in primary
and secondary stock markets in fiscal year 2015/16 due to additional
reform works for the development of securities market, low interest rates
owing to high liquidity in financial market, and announcement of capital
hike plan.

Primary market
5.2. Despite mixed situation observed in primary market in FY 2015/16, both
the number of organized companies and the amount have registered
growth in this market during the first eight months of the current fiscal
year 2016/17. A total of 55 companies including nine initial public
offering (IPO) issuers, three further public offering (FPO) issuers, 40
rights share issuers and 3 mutual fund issuers have mobilized the capital
equivalent to Rs. 34.67 billion through the primary stock market. This
amount is higher by 178.03 percent as compared to the corresponding
period of the previous fiscal year. Capital amounting Rs. 12.47 billion
was mobilized by 30 companies during the same period of the last year.
Likewise, capital equivalent to Rs. 19.0 billion was mobilized through 55
companies by the end of FY 2015/16.

77
Table 5 (a) : Primary Market
(NRs. In Billion)
First Eight Month
2013/14 2014/15 2015/16
Description 2014/15 2015/16 2016/17
No. Amount No. Amount No. Amount No. Amount. No. Amount No. Amount
IPO 16 1.57 18 6.98 14 2.76 12 6.81 6 2.28 9 1.03
Right Share 26 4.24 22 2.31 37 9.40 15 1.18 20 3.36 40 23.01
FPO - - - - 3 5.83 - - 3 5.83 3 7.78
Mututal Fund 1 1.00 3 2.25 1 1.00 3 2.25 1 1.00 3 2.85
Issuance of Bond 3 1.45 5 2.90 - - 2 1.00 - - - -
Total 46 8.26 48 14.44 55 18.99 32 11.24 30 12.47 55 34.67
Source: Securities Exchange Board of Nepal

5.3. Capital equivalent to Rs. 1.03 billion has been mobilized through
issuance of ordinary shares by nine organized companies in the first eight
months of FY 2016/17. This amount is 55.0 percent lower as compared
to the amount of the same period of previous fiscal year. Similarly, three
companies issued FPO equivalent to a sum of Rs. 7.78 billion which is
higher by 33.45 percent as compared to that of previous fiscal year. By
the end of FY 2015/16, IPO equivalent to Rs. 2.76 billion was issued by
14 companies while three listed companies issued FPO equivalent to Rs.
5.83 billion.
5.4. More capital has been mobilized through the issuance of right shares in
first eight months of the current fiscal year. During this period, capital
equivalent to Rs. 23 billion has been mobilized by 40 organized
companies. This capital is 8 times higher than that of previous fiscal year
while this is 66 percent of total capital mobilized through the primary
stock market. By the end of FY 2015/16, right shares equivalent to Rs.
9.4 billion were issued by 37 listed companies.
5.5. Capital mobilized through the mutual fund rose up by 185 percent in the
first eight months of current fiscal year as compared to the same period
of previous fiscal year. During this period, units equivalent to Rs. 2.85
billion have been issued through 3 mutual funds as against the
mobilization of capital equivalent to Rs. 1.0 billion through one mutual
fund by the end of previous FY 2015/16.
5.6. During first eight months of FY 2015/16, bonus shares equivalent to Rs.
9.84 billion were issued by 55 organized companies, while 91 such
companies issued bonus shares equivalent to Rs. 17.23 billion by the first
eight months of current fiscal year. This amount has been higher by 75.1
percent as compared to that of the same period of previous fiscal year.

78
Bonus shares equivalent to Rs. 21 billion were issued through 118 listed
companies by the end of previous fiscal year.

Secondary Market
5.7. Despite sluggishness witnessed in the global stock market, Nepal’s share
market is making headway with extra efforts being made towards market
reforms and development in fiscal year 2015/16. OTC markets have been
more organized and at the same time, there is an increase in the
transactions of unlisted public companies in NEPSE as well.
5.8. Seven more companies have been listed in NEPSE in the current fiscal
year in addition to 229 companies already listed by the previous fiscal
year 2015/16. The number of listed companies is 212 since 26 listed
companies went to merger/acquisition and resolution while some
companies have been delisted for not carrying out transactions and
operation for a long time.
Chart 5 (a) : Trend of Market Capitalization (Rs. In Billion)

Source: Securities Board of Nepal

5.9. The market capitalization rose by 8.16 percent to Rs. 1537 billion in the
first eight months of the current fiscal year 2015/16 against Rs. 1421
billion during the same period of its previous fiscal year. The market
capitalization value was Rs.1890 billion by the end of FY 2015/16. The
ratio of market capitalization to GDP remained at 59.13 percent during
the first eight months of current fiscal year 2016/17.
5.10. Shares transaction amount rose by 88.76 percent reaching Rs. 132 billion
in the first eight months of the current fiscal year as compared to that of

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the same period of pervious fiscal year. During the first eight months of
the FY 2015/16, shares worth Rs. 70 billion were traded. Similarly, a
total of 433,393 units of share were traded during the first eight months
of previous fiscal year while this number registered growth of 84.84
percent and stood at 801,095 in the first eight months of current fiscal
year 2016/17.
5.11. The paid-up capital of listed company has grown by 34.21 percent to Rs.
252 billion in the first eight months of the current fiscal year 2016/17 in
contrast to Rs. 187 billion of the same period of previous fiscal year.
Chart 5 (b) : Turnover and Paid up Capital (Rs. In Billion)

Source: Nepal Stock Exchane Ltd.


* First Eight Month

5.12. The NEPSE index that had stood at 1318.88 points in mid-March 2016
rose by 2.76 percent to 1335.15 by mid-Marh, 2017. The index had
reached 1718.15 points by the end of FY 2015/16.

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Chart 5 (c) : NEPSE Index

Source: Nepal Stock Exchane Ltd.


* First Eight Month

Table 5 (b) : Secondary Market Trend


First Eight Month
Description 2013/14 2014/15 2015/16
2014/15 2015/16 2016/17
Total No. of Listed Organized
235 232 229 232 230 212
Institutions
Total No. of Listed Shares ( In 10
160.77 255.31 364.29 159.32 193.98 258.58
Million)
Paid-up Value of Listed Shares ( In Rs.
142.36 157.58 204.02 153.74 187.46 251.59
Billion)
Share Transacted Amout (In Rs. Billion) 77.30 65.33 163.95 50.42 70.11 132.34
Total Days of Transactions 230 216 233 147 149 151
Number of Transacted Scrips 269 271 274 250 255 244
Number of Transactions 566,390 477,278 831,997 379,798 433,393 801,095
Market Capitalization of Listed Shares (
1,057.17 989.40 1,890.13 1,004.03 1,420.08 1,536.93
In Rs. Billion)
Floated Market Capitalization 331.06 281.78 718.96 318.27 468.54 515.91
Transaction to Market Capitalization (in
7.31 7.72 8.67 5.02 4.94 8.61
percent)
Market Capitalization to GDP (in
53.81 46.45 84.10 53.14 70.75 59.13
percent)
Floated Market Capitalization to GDP (in
17.17 13.29 31.97 16.84 23.34 25.70
Percent)
NEPSE Index 1,036.11 961.23 1,718.15 978.44 1,318.88 1,355.15
NEPSE Float Index 64.10 68.47 125.41 68.78 95.18 99.95
NEPSE Sensitive Index 222.50 204.67 369.07 208.08 283.86 294.41
Source: Nepal Stock Exchane Ltd.

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Commodity Derivative Market
5.13. Despite the establishment of seven commodities exchange in Nepal, only
three of them are in operation since process of formulating legal
framework and other infrastructure building works are ongoing.
Specialized contracts of precious metals, energy, agricultural and other
commodities, whose prices are determined in the international market,
are traded through operational exchange of their own clearing and non-
clearing members.
Table 5 (c) : Commodity Derivative Market
Description 2013/14 2014/15 2015/16 2016/17*
Transacted Amount ( In
499.91 255.73 295.32 226.83
Rs. Billion)
Number of Brokers 113 209 232 200
Number of Investors 3,010 3,617 3,880 4,470
Source: Nepal Derivative Exchange Ltd., Derivative and Commodity Exchange Nepal Ltd., Marchentile Nepal
Exchange Ltd.
*First Eight Months

5.14. Transactions equivalent to Rs. 295.32 billion were carried out in FY


2015/16 while transactions worth Rs. 226.83 billion were done in the
first eight months of current fiscal year. During the same period of
current fiscal year, 200 brokers and 4,470 investors have remained active
while 232 brokers and 3,880 investors were associated with commodities
market.

Securities Board of Nepal


5.15. Fully automated operation of transactions, ownership transfer and
clearance of only dematerialized share certificates of listed companies are
being carried out as per the automated share transaction system. Nepalese
stock market has made its entry at the equal level of modernization that
stock markets of other south Asian countries have entered.
5.16. Amid situation of carrying out transactions of dematerialized (DMAT)
share certificates only, arrangements have been made for rights and
bonus shares issued by listed companies to be deposited directly at
investor’s DMAT accounts for their further facilitation. Likewise,
arrangement has also been made for depositing cash dividend and cash
refund to not allotted investor by the listed company, or excess money
collected from such investors in their respective accounts maintained in
Nepal Clearing House participating member BFIs.

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5.17. Securities Registration and Issue Regulation, 2016 has come into effect
with provisions that companies of real sector or other sector companies
can issue shares at premium price by making the task of issuance of share
certificates more organized and transparent, authorizing international
financial institutions to issue bonds in local currency and resolution of
issuance related conflict of interests.
5.18. There have been structural changes in primary stock market with the
implementation of ASBA system of freezing the amount in the bank
account of the applicant, which is aimed at shortening the time and cost
of stock issuance, and reducing the number of pseudo investors thereby
benefiting the real investors.
5.19. Methods and bases have been established and implemented for setting
prices by laying down standards inter alia capitalized amount, income,
per share price of the net asset, average price for 180 days, and current
price of future cash flow to bring uniformity in setting price of Further
Public Offering; and for making it more organized, clean, unbiased, and
transparent.

Nepal Stock Exchange Limited


5.20. The secondary market transaction has been more easy and simple due to
recent provision of allowing the investors to trade less than 10 units of
shares in regular transactions as per the dematerialization trading system
of the stock market. Arrangement has been made for all investors with
an access to market depth window to receive information on demands
and supply of shares.

Central Depository Service


5.21. By the first eight months of the current fiscal year 2016/17, a total of 220
companies have been registered in Centralized Depository Clearing and
Settlement (CDS) and Clearing Limited while such number had stood at
205 in the same period last year. The number of depositor members has
reached 60 by the first eight months of the current fiscal year against 56
such member that of last year.
5.22. The number of beneficiary account holders has recorded notable growth
with the provision made for investors to mandatorily open beneficiary
account for IPO. In first eight months of the current fiscal year, the
number of beneficiary account holders reached 746,660 increasing from
392,359 of the last year.

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5.23. The number of dematerialized shares in first eight months of FY 2073/74
totaled 755,384,743 units with dematerialized shares reaching a total of
1,685,784,398 units. This number is 81.19 percent higher from the total
of 930,399,655 units reached at the end of previous fiscal year.

Insurance
5.24. Infrastructure has been built for the development of insurance business
by embracing globally accepted insurance norms to provide economic
security to all classes of society against the natural and social risks.
5.25. Of the total 27 insurance companies, 9 of them are engaged in life
insurance business, 17 companies in non-life insurance, while 1
insurance company is engaged in reinsurance. According to figures of
ownership structure of insurance companies, three (3) are working as
branches of foreign insurance companies, five (5) on joint investment
with foreign companies, 17 on private ownership, and two (2) on
Government ownership.
Table 5 (d) : Ownership Structure of Insurance Companies
Ownership Non-life Life Reinsurence Total
Government 1 1 – 2
Private 12 5 – 17
Foreign 2 1 – 3
Joint Venture 2 2 1 5
Total 17 9 1 27
Source: Beema Samiti

Source and Utilization


5.26. The total financial source and uses of life and non-life insurance
companies operating in the country has reached Rs.163.0272 billion in
the first eight months of current fiscal year. Of this, life insurance
companies share Rs. 129.8117 billion while non-life companies share Rs.
33.2155 billion. This total is higher by 1.93 percent as compared to that
of previous fiscal year. Such amount had reached Rs. 159.9372 billion in
the end of fiscal year 2015/16.

84
Table 5 (e) : Source and Uses of life and non-life Insurance Companies
(Rs. in ten million)
2013/14 2014/15 2015/16 2016/17**
Source/ Utilization
Life Non-Life Life Non-Life Life Non-Life Life Non-Life
Sources

a) Paid-Up Capital 453.52 287.70 577.75 373.22 624.49 475.03 677.13 578.07

b) Accrued Fund 6473.89 1096.62 9398.65 1782.55 11,569.27 2,107.59 11,790.52 2,344.26
c) Other Liabilities 176.97 323.47 393.40 418.90 794.46 422.86 513.52 399.22
Toral Souces 7104.38 1707.79 10369.80 2574.67 12988.22 3005.48 12981.17 3321.55
Utilization
81.67 86.65 196.17 272.05 236.13 317.50 97.25 224.06
a) Banks and Cahs Reserves
b) Investment 6,437.64 1,140.50 9,417.57 1,590.32 11,798.33 1,681.75 11,990.60 2,081.42

c) Fixed Assets 142.39 92.87 163.94 107.41 164.87 109.96 163.12 113.31

d) Other Assets 442.68 387.77 592.12 604.89 788.89 896.27 730.20 902.76

Total Utilization 7104.38 1707.79 10369.80 2574.67 12988.22 3005.48 12981.17 3321.55
Source: Beema Samiti
*Inclusion of unaudited details of Rastriya Beema Santhan and National Insurance Companies
** Inclusion of unauditted Details as of Mid-March 2017.

Chart 5 (d) : Source and Uses of life and non-life Insurance Companies

Source: Beema Samiti


**First Eight Month

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Total Insurance Premium Earnings
5.27. A total of Rs. 22,013.6 million was earned through life and non-life
insurance businesses in FY 2011/12. The insurance premium continued
to grow in its subsequent years reaching a total earnings of Rs. 46,969.2
million by the end of FY 2015/16. The earning is estimated to grow by
17.10 percent and reach around 55 billion in FY 2016/17.
Table 5 (f) : Life and Non-Life Insurance Premiums
(Rs. 10 million)
Fiscal Year Life Non-life Total Growth Rate (%)
2011/12 1416.93 784.43 2201.36 24.67
2012/13 1611.15 816.82 2427.97 10.29
2013/14 2000.53 1042.6 3043.13 25.33
2014/15 2534.19 1198.65 3732.84 22.66
2015/16 3192.86 1504.06 4696.92 25.83
2016/17** 3550.00 1950.00 5500.00 17.10
Source: Beema Samiti
*Inclusion of unaudited details of Rastriya Beema Santhan and National Insurance Companies
** Inclusion of unauditted Details as of Mid-March 2017.

Chart 5 (e) : Life and Non-Life Insurance Premiums

Source: Beema Samiti


**First Eight Month

5.28. The annual growth rate of premium of life and non-life insurances has
hovered around 25 percent over the last six years. Such rate had dropped
to 10 percent in FY 2012/13 while this is estimated to decline further and
remain at 9 percent in the current fiscal year.

86
Chart 5 (f) : Growth Rate of Life and Non-Life Insurance Premiums

Source: Beema Samiti


**First Eight Month

Insurance Premiums to GDP Ratio


5.29. The ratio of insurance premiums to GDP had stood at 2.09 percent in FY
2015/16. Such ratio which had been hovering around 1.5 percent since
2011/12 is projected to remain at 2.05 percent in FY 2016/17.
Chart 5 (g) : Insurance Premiums to GDP Ratio

Source: Beema Samiti

Investment on Insurance
5.30. The investible amount with life and non-life insurers between fiscal years
2012/13 and 2015/16 stood at Rs. 58730.5 million, Rs. 75781.4 million,
Rs. 110078.9 million and Rs. 134800.8 million respectively. Likewise,
the total investment is expected to remain at 140.72 billon in current
fiscal year 2016/17. The investment which had grown by 45.3 percent in

87
FY 2014/15 is expected to rise by only 4.4 percent in current fiscal year
2016/17.
Table 5 (g) : Investment on Life and Non-life Insurance Business
(Rs. in ten million)
Fiscal Year Life Non-life Total
2012/13 4982.91 890.14 5873.05
2013/14 6437.64 1140.5 7578.14
2014/15 9417.57 1590.32 11007.89
2015/16 11798.33 1681.75 13480.08
2016/17** 11990.6 2081.42 14072.02
Source: Beema Samiti
*Inclusion of unaudited details of Rastriya Beema Santhan and National Insurance Companies
** Inclusion of unauditted Details as of Mid-March 2017.

Chart 5 (h) : Investment on Life and Non-life Insurance*

Source: Beema Samiti


*Inclusion of unaudited details of Rastriya Beema Santhan and National Insurance Companies
** Inclusion of unauditted Details as of Mid-March 2017.

Contribution to Government Revenue


5.31. The gross revenue grew due to increased volume of institutional and
other revenue through insurance business. The revenue earned between
fiscal years 2010/11 and 2015/16 stood at Rs. 2722.3 million, Rs.3395.0
million, Rs. 4214.5 million, Rs. 6252.0 million and Rs. 4639.7 million
respectively. The revenue that had grown by 48 percent in FY 2014/15
dropped by 26 percent in FY 5015/16.

88
Table 5 (h) : Revenue Earning from Insurance Business*
Fiscal Year Revenue(Rs. billion)
2012/13 272.23
2013/14 339.5
2014/15 421.45
2015/16 625.2
2016/17 463.97
Source: Beema Samiti
*Inclusion of estimated details of Rastriya Beema Samiti and National Insurance Companies

Chart 5 (i) : Contribution to Revenue*

Source: Beema Samiti


*Inclusion of estimated details of Rastriya Beema Samiti and National Insurance Companies

Crops and Poultry Insurance


5.32. As per the institutional commencement of agricultural insurance,
agriculture and livestock insurance directive was issued in 2012 where 6
insurance products were prepared and issued. Subsidy of 50 percent has
been provisioned on the premiums of crops and poultry insurance since
mid-July of FY 2013/14.

Challenges
5.33. Despite structural reforms of primary and secondary markets for
institutional development, upgrading the stock market by making it
healthy, transparent, reliable, competitive, and investment friendly is a
daunting challenge.
5.34. It is a big challenge to make the government owned Nepal Stock
Exchange Limited modern, competitive, transparent, and professional by
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making internet based securities market transactions services available
across the country, and making the secondary stock market service open
to non-resident Nepalese and foreign institutional investors.
5.35. Making cross border listing and trading arrangement amid ultra-modern
system already being practiced in the global capital market, enhancing
capacities of all participants including those of listed companies and
stock brokers to develop stock market transaction system at par with
international standard, and expanding market service areas are
challenging tasks. In addition, it is a daunting task to run capital market
literacy program for managing share transactions extended beyond
Kathmandu valley and investors credit risk-free.
5.36. There remains a challenge of bringing further reforms for developing the
capital market since the impact of tax incentives given to raise the
number of listed companies in securities market has been minimal.
5.37. In the context of low participation of institutional investors, who play
crucial role to bring stability in securities market, it is a big challenge to
develop institutions such as citizen investment trust, insurance
companies, Employees Provident Fund among others as investors.
5.38. It is a challenging task to prepare legal and institutional framework for
the modernization of insurance and its access to majority of Nepalese
through development of micro-insurance and the expansion of life
insurance as well as providing support to the development of agricultural
economy by safeguarding public investment in the agriculture sector
through rapid extension of agriculture and livestock insurance.

90
6. External Sector

Nepal’s external sector situation remained satisfactory in FY 2016/17.


Despite expansion of exports with the economic recovery after devastating
earthquake and disruption in supply situation, trade deficit remained high as
a result of higher growth rate of imports. Current account deficit remained
low due to increased foreign grants and pension amid low remittance inflow.
In overall, foreign exchange reserve has expanded due to BoP surplus. As a
consequence, the capacity to cover imports goods and services, which is an
indicator of external sector stability, is sufficient to cover 12 months.
6.1. Macroeconomic policy covers other policies adopted together with the
foreign exchange rate policy for external sector's stability. The existing
fixed exchange rate system has remained as a nominal anchor to the
monetary policy. Monetary and exchange rate policies aim at containing
BoP within a desirable limit to ensure foreign exchange required for
making payments against imports and carrying out entire foreign
transactions.
6.2. Nepal is likely to capitalize external opportunities including higher
economic growth of neighboring countries, India and China, recovery in
world economy, and low price of petroleum products subsequent to
financial crisis. It is a challenging task to take benefits from international
and regional organizations like world trade organization (WTO) together
with enhanced domestic production capacity and productivity

Structure and Trend


6.3. Nepal’s trade deficit has surged with the increase in trade openness
subsequent to the adoption of trade liberalization. The total trade to GDP
ratio, which is considered as an indicator of trade openness, that had
remained at 25.4 percent in FY 1991/92 has reached 37.5 percent in FY
2015/16. During the same period, the ratio of trade deficit to GDP rose
from 13.2 percent to 31.3 percent. Increased remittance induced
consumption resulting in higher volume of imports attributed to
increased total foreign trade and trade deficit. Likewise, total export to
GDP ratio has dropped to 3.1 percent from 6.1 percent.
6.4. During last decade, the share of merchandise exports in total trade has
continued to decline. The share of merchandise exports in total trade that
had stood at 28.2 percent in FY 2003/04 plummeted to 8.3 percent in FY

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20015/16. During the same period, import-export ratio of goods has
dropped from 39.3 percent to 9.1 percent.
Chart 6 (a) : Share of Import and Export in Total Trade ( In Percent)

Source: Nepal Rastra Bank

6.5. The growh of merchandise exports has been lower than that of import.
The last five years’ average growth rates of export and import stood at
2.7 percent and 14.7 percent respectively. Such lower growth rate of
exports is attributable to weak physical infrastructure and other structural
bottlenecks including weak investment environment. The average growth
rates in imports from India and other countries increased by 13.4 percent
and 17.4 percent respectively during the same period.

6.6. The outbound trend for foreign employment towards other countries
except India has increased for failing to create much adorable
employment in domestic market. As a result, remittance inflow has stood
as a major pillar for overall balance of payment and external sectors’
stability. The ratio of remittance inflow to GDP that had stood at 13.8
percent in FY 2006/07 went up to 29.6 percent in FY 2015/16. As per
World Bank’s report, Nepal stands second among the countries receiving
the highest ratio of remittance to GDP. The growth rate of remittance
inflow averaged 21.8 percent during last five years. Thus, remittance
inflow has remained as a major source for foreign exchange.

92
Chart 6 (b) : Status of Remittance Inflow (In Percent)

Source: Nepal Rastra Bank

6.7. The robust external sector has helped achieve overall economic stability.
The foreign exchange reserve level has been sufficient to cover the
imports for more than eight months since last five years. The average
growth rate of total foreign exchange reserves stood at 33.1 percent
during the same period. Balance of payment remained in surplus even
after receiving several supply related shocks including devastating
earthquake and boarder obstruction.

Gross Foreign Trade


6.8. The gross foreign trade has grown by 41.4 percent reaching Rs. 676.78
billion in the first eight months of fiscal year 2016/17. The total trade
grew owing to convenient supply situation, rise in government
expenditure and base year effect with lower trade of last year. During the
same period of last year, such trade had declined by 15 percent to Rs.
478.53 billion. The share of export to total trade stood at 7.1 percent and
that of import is 92.9 percent.

93
Merchandise Export
6.9. The volume of total merchandise exports expanded by 12.8 percent to
Rs. 48.22 billion in first eight months of current fiscal year 2016/17
while such export volume had dropped by 24.9 percent to Rs.42.73
billion in the corresponding period of previous fiscal year.
6.10. The export to India, china and other countries grew by 16.3 percent, 13.4
and 8.2 percent respectively during review period of current fiscal year
2016/17 in contrast to the respective decline of 34.5 percent, 45.9 percent
and 3.7 percent in the same period of last year. On item-wise basis, the
exports of goods including noodles, wire, oil cake, rosin and juice to
India has increased. Likewise, exports of processed leather, handicrafts,
readymade garments to China and pulses, processed leather, jewelries,
papers and handicrafts to other countries have grown.

Merchandise Import
6.11. Merchandise import of goods has increased by 44.2 percent to Rs. 628.56
billion in the first eight months of current fiscal year. Such import had
declined by 13.9 percent in the same period of previous year. The import
of goods from India, China and other countries grew by 59.0 percent,
17.5 percent and 26.2 percent respectively during the review period. On
item-wise basis, the import of goods from India including petroleum
products, M.S. Billets, cements, and machinery parts has increased.
Similarly, imports of machineries and their accessories, electric goods,
communication equipments from China and gold, edible oil, chemical
fertilizers, transport vehicles and accessories from other countries have
also increased.
6.12. During the first eight months of current fiscal year, the import from India
through the payment of convertible foreign currency has grown by 42.3
percent to Rs.56.74 billion. Such import had declined by 19.9 percent
reaching Rs. 39.86 billion during the same period of previous fiscal year.
The share of import through payment of convertible foreign currency to
total import from India has stood at 13.8 percent during review period.

Trade balance
6.13. The total trade deficit has surged by 47.6 percent and got contained at Rs.
580.34 billion in the review period. Such deficit had dropped by 12.5
percent reaching Rs. 393.07 billion during the same period of previous
fiscal year.

94
6.14. Of the total trade deficit, the trade deficit with India increased by 63.4
percent in the review period against its decline of 17.3 percent in the
same period of previous fiscal year. Likewise, trade deficit with China
that had declined by 0.8 percent last year grew by 17.5 percent during the
review period. The trade deficit that had decreased by 6.6 percent in the
first eight months of previous fiscal year has surged by 29.8 percent
during the review period of current fiscal year. The higher rate of import
as compared to that of export resulted in the decline of export/import
ratio to 7.7 percent.
Table 6 (a) : International Trade Situation (First Eight Months, In Percent)
Description 2012/13 2013/14 2014/15 2015/16 2016/17*
Exports 5 19.4 -6.6 -24.9 12.8
India 2 21.9 -9.9 -34.5 16.3
China - 12.6 9.3 -45.9 13.4
Other Countries 11.2 14.9 -3.7 8.2
Imports 22.1 27 10.5 -13.9 44.2
India 24.2 28.1 5.1 -19.3 59.0
China - 14.7 48.6 -2 17.5
Other Countries 18.2 30.1 -6.1 26.2
Trade Balance 25.5 28.2 13.1 -12.5 47.6
India 28.8 29.1 7.4 -17.3 63.4
China - 14.8 50.1 -0.8 17.5
Other Countries 19.5 33.9 -6.6 29.8
Total Trade 19.7 26 8.5 -15 41.4
India 21 27.3 3.3 -20.8 55.4
China - 14.7 47.3 -3.1 17.4
Other Countries 17.3 27.5 -5.8 23.6
Export Import Ratio 14.1 13.3 11.2 9.8 7.7
India 14 13.3 11.4 9.3 6.8
China 3.6 3.6 2.6 1.4 1.4
Other Countries 20.1 17.7 16.2 16.6 14.2
Share to Total Trade (Percent)
India 65.2 66.5 64.2 56 57.7
China 3 2.8 3.3 2.4 2.4
Other Countries 31.8 30.6 32.5 41.7 39.9
Share to Total Imports (Percent)
India 65.9 66.5 63.2 59.3 65.3
China 11.7 10.5 14.2 16.1 13.1
Other Countries 22.4 23 22.6 24.6 21.5
Share in Trade Balance (Percent)
India 66 66.5 63.1 59.6 66.0
China 13.1 11.7 15.5 17.6 14.0
Other Countries 20.9 21.8 21.3 22.8 20.0
Share to Total Trade (Percent)
India 65.8 66.5 63.3 59 64.8
China 10.6 9.6 13.1 14.9 12.4
Other Countries 23.6 23.9 23.6 26.1 22.8
Share of Import and Export to Total
Trade
Export 12.4 11.7 10.1 8.9 7.1
Import 87.6 88.3 89.9 91.1 92.9
* Provisional
Source: Nepal Rastra Bank

95
Balance of Payment (BoP) Situation
6.15. By the first eight months of current fiscal year 2016/17, BoP remained in
surplus by Rs. 50.06 billion in comparison to the surplus of Rs.158.18
billion in the corresponding period of previous fiscal year. Current
account that remained in surplus by Rs.158.55 billion during the first
eight months of previous fiscal year has recorded a deficit of Rs.6.31
billion in the review period. BoP surplus remained low during review
period as compared to that of corresponding period of previous fiscal
year due to higher import growth and slowdown in remittance growth.
Chart 6 (c) : Key Elements of BoP ( In NRs.Billion)

Source: Nepal Rastra Bank

6.16. Merchandise trade deficit on FOB that had reduced by 12.1 percent
during the first eight months of the previous fiscal year registered growth
by 48.0 percent to Rs. 566.19 billion in the same period of current fiscal
year. During review period, service income rose by 17.9 percent to Rs.
101.46 billion. Likewise, tourism income under service income recorded
a growth of 38.7 percent to Rs. 36.20 billion during the review period as
compared to the same period of previous fiscal year. The total service
expenditure rose by 19.4 percent to Rs. 97.73 billion. As a consequence,
the net service income that had declined by 60.5 percent during the same
period of previous year dropped by 11 percent to Rs. 3.73 billion this
year.

96
6.17. During the review period, remittance inflow grew by 5.3 percent and
reached Rs. 449.99 billion in comparison to its 15.2 percent growth in the
same period last year. The net transfer income rose by 8.4 percent to Rs.
542.72 billion as a result of such expanded volume of remittance inflow.
Such income had increased by 19 percent last year. Under the transfer
income, grants and pensions have increased by 35.3 percent and 12.4
percent respectively in the review period.
Table 6 (b) : Remittance Inflow Situation
2012/13 2013/14 2014/15 2015/16 2016/17*
Remittance Inflow (Rs. Billion) 434.6 543.3 617.3 665.1 450
Change Percentage 20.9 25 13.6 7.7 5.3

Remittance Inflow to GDP Ratio 25.6 27.7 29 29.6 -

Share of Remittance Inflow to


87.3 85.6 87.9 85.5
Current Transfer Income
Source: Nepal Rastra Bank
* First Eight Months

6.18. On the capital account side, the net capital transfer account remained at
Rs. 10.3 billion in the first eight months of current fiscal year 2016/17.
The capital account had remained in surplus by Rs. 9.72 billion during
the same period of previous fiscal year. On financial account front, a sum
of Rs.8.35 billion has been received as Foreign Direct Investment (FDI)
in the review period of current fiscal year while such figure was Rs. 2.34
billion in the same period of previous year.

Foreign Exchange Reserve


6.19. Gross foreign exchange reserve that grew by 3.4 percent from Rs.
1039.21 in mid-July 2016 to Rs. 1074.27 billion in mid-March, 2017. In
US Dollar term, the net reserve rose by 3.8 percent reaching a total of
US$ 10.11 billion between mid-July, 2016 to mid-March, 2017. Foreign
exchange reserve swelled mainly due to expanded volume of remittance
inflow.
6.20. Of the total foreign exchange reserves, the reserve with Nepal Rastra
Bank grew by 3.2 percent reaching a total of Rs. 915.31 billion by mid-
March 2017 as compared to that of mid-July, 2016. The reserve with
banks and financial institutions other than NRB grew by 4.4 percent to
Rs. 158.96 billon in the review period. The share of Indian currency to
the total reserve stood at 22.1 percent.

97
Table 6 (c) : Total Foreign Exchange Reserve ( In NRs. Billion)
Mid- Percent Change ( Mid-July-
Mid- Mid-July, Mid- Mid March)
Description July,
March2016 2016 March,2017
2015 2015 2016
Nepal Rastra Bank 703.1 870.7 887 915.3 23.8 3.2
BFIs 121 136 152.2 159 12.4 4.4
Total Reserve 824.1 1006.7 1039.2 1074.3 22.2 3.4
Share to Total Reserve
Nepal Rastra Bank 85.3 86.5 85.4 87.9 - -
BFIs 14.7 13.5 14.6 12.1 - -
Indian Currency 23.3 78.8 78.6 77.9 - -
Convertible Foreign
76.7 21.2 21.4 22.1 - -
Currency
Source: Nepal Rastra Bank

Reserve Adequacy indicators


6.21. Based on the imports of the first eight months of fiscal year 2016/17, the
foreign exchange reserve with the banking sector is sufficient to cover
the merchandise imports for 13.9 months and that of both goods and
services for 12 months. During review period, the ratios of gross import
to foreign exchange reserve and broad money supply stood at 99.7
percent and 43.70 percent respectively while such ratios were 117.4
percent and 46.3 percent respectively in mid-July 2016.
Chart 6 (d) : Siutation of Foregin Exchange Reserve Adequacy Indicators

Source: Nepal Rastra Bank

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International Investment Position
6.22. By mid-July, 2016, country’s foreign assets had increased by 25.8
percent to Rs. 105.40 billion as compared to Rs. 837.79 billion of the
corresponding period of previous fiscal year. Likewise, liability reached
Rs. 564.55 billion with 8.4 percent growth by mid-July, 2016 as
compared to the same period of its preceding year. Such liability had
stood at Rs. 521.01 billion by mid-July, 2015.
Table 6 (d) : Situation of International Investment Position (Mid-July, In Rs.
Billion)
Percent Change
Description 2014 2015 2016
2015 2016
Assets 681.3 837.8 1054.0 23.0 25.8
LIabilities 495.4 521.0 564.6 5.2 8.4
Direct Investments 75.4 96.8 107.0 28.5 10.5
Net Foreign Assets and
185.9 316.8 489.5 70.4 54.5
Liabilities
Source: Nepal Rastra Bank

Exchange rate
6.23. Nepalese Currency appreciated by 0.43 percent against US dollar
between mid-July, 2015 and mid-March, 2016 while that had depreciated
by 5.7 percent against US dollar during the same period of previous
fiscal year. By mid-March, 2017, the exchange rate of USD 1 to
Nepalese currency reached Rs. 106.27 where as such exchange rate in
mid-July 2016 had stood at Rs. 106.73. Similarly, Nepalese rupee has
appreciated by 4.6 percent, 9.3 percent and 9.2 percent against Euro,
sterling pound and Japanese Yen respectively in mid-March, 2017 when
compared with that of mid-July, 2016.
Table 6 (e) : Foreign Exchange Rate
Month End Bying Rate ( In NRs.) Percent
Foreign Change*Mid July-
Currency Mid-March, Mid-March Mid-March
Mid-July 2015 Mid-July 2016
2016 2017 2015/ 2016
1 US Dollar 101.14 107.23 106.73 106.27 -5.7 0.4
1 Pound Sterling 158.01 153.16 141.28 129.25 3.2 9.3
1 Euro 111.48 119.41 118.60 113.41 -6.6 4.6
10 Japanese Yen 8.18 9.42 10.11 9.26 -13.2 9.2
Source: Nepal Rastra Bank
*Appreciation /(+) Depreciation (-)

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Challenges
6.24. The trade deficit has continued to grow at higher rate since last few
years. In this context, containing trade deficit within desired limit
through export promotion and import substitution by addressing
structural and supply related problems of economy thereby increasing
production and competitive capacity is a big challenge.
6.25. Despite having made capital account partially convertible under the BoP
account in the decade of 1990s, foreign capital inflow still remains low.
It is a challenging task to liberalize capital account with an appropriate
sequencing to attrach adequate foreign investments for sustainable
development goal with full implementation of federalism.
6.26. External sectors stability has mainly relied on remittance inflow and
import expansion. There lay a challenge to diversify the sources of
foreign exchange through increased overall service sector’s income
including tourism for mitigating the risks of remittance centered external
sector.
6.27. The growth rate of petroleum products consumption, occupying nearly
20 percent share of total imports India, is very high. It is a daunting
challenge to make adequate arrangements of other energy sources
including hydroelectricity to manage overall imports while lowering the
imports of petroleum products.
6.28. Despite the agriculture sector providing employment for majority of
population, imports of agricultural products has continued to grow at a
higher rate. Task of substituting imports of agro-products by increasing
production and productivity of the agriculture sector remains a challenge.
6.29. The task of expanding the share of exports to foreign trade with
commitments made with accession to WTO and SAFTA is getting much
tougher. For this, exploring goods and services of comparative advantage
and liberalizing trade remains a challenge.

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7. Poverty Alleviation and Employment

Poverty alleviation is taken as a major objective since 9th five-year plan.


Poverty alleviation and human development index have attained significant
progress due credit to periodic plan run poverty alleviation programs, social
security programs, and remittance spent on consumption. Population living
below absolute poverty line has dropped from 31 percent to 25.4 percent in
12th five-year plan. Such population has gone down to 21.06 percent in 13th
plan against the target set to reduce this population to 18 percent. Most of
millennium development goals have been achieved. Sustainable development
goal is in its implementation process. Poverty alleviation, being a cross-
cutting issue of development dimension, is believed to get support if every
development activity and project is linked to the goal of poverty alleviation.

Poverty Alleviation

7.1 Poverty alleviation programs play a key role in prioritizing the absolute
poor while handing out development outcomes through equitable
distribution of economic achievements, ending the economic disparity,
and thereby creating exploitation-free society. Poverty is defined as
income poverty, human poverty and poverty due to deprivation. Poverty
alleviation programs are being carried out in line with poverty reduction
policies and strategies. Poverty, being a cross cutting issue, could not be
reduced to desired level despite implementation of poverty alleviation
related programs through various government agencies, development
partners, national and international non-governmental organizations and
local communities.
7.2 Despite estimated drop in population living below the poverty line based
on consumption to 21.6 percent at the end of fiscal year 2015/16, the
devastating earthquake of 2015 and disruption in supplies that followed
as a result of border obstruction is estimated to have added the number of
poor to the country’s poor population. In this context, the number of
population living below poverty line needs to be reassessed through
evaluation of various programs in implementation with the objective of
reducing such population to 18 percent by the end of 13th period1ic plan
( FY 2013/14- 2015/16).
7.3 Poor household identification program has been completed in 25
districts. Of the total of about 1.2 million households, 356,418 have been
preliminarily identified as poor by collecting data using household

101
survey forms through the application of proxy means test (PMT) method
on poverty measuring indicators. Thus, final list of three poverty genres
including ultra-poor, medium poor, and marginally poor was prepared.
The method used for this was by making the list of poor public after
hearing grievances and investigations carried out through the existing
VDCs and ward offices of municipalities in 25 districts. Program is set
to distribute identity cards of the poor in the current fiscal year.
7.4 It will be easier to implement poor targeted programs in all districts
together after poor households are identified in the remaining 50 districts
by upcoming fiscal year 2017/18. Provision has been made for
appointing a focal person at the entities engaged in implementing poverty
reduction related programs to coordinate on poverty alleviation works.
Profiling of best practices with regard to poverty alleviation has been
carried out. Likewise, progress status report on SAARC Development
Goal (2005-2014) has been prepared. Poverty measurement program is
likely to get materialized only if social security program could be
identified as appropriate and implemented for poverty identity card
recipient households, and poor targeted programs under the government
with poor program is implemented by coordinating with budgetary
allocations.
7.5 National Poverty Alleviation Policy has been formulated in line with
objectives of the Constitution and sustainable development goal while
bonding cooperatives and poverty alleviation program together. Pre-
feasibility and feasibility studies have been carried out with the objective
of carrying out poverty reduction pilot project in every province.
Investment in the social sector has been elevated so as to support
poverty reduction. Employment and income oriented programs are being
carried out while focusing on target groups and areas. Micro-enterprise
development program for poverty alleviation, which was initiated for
raising the income level of poor families through entrepreneurship
development, has been expanded.
7.6 Western Upland Poverty Alleviation Project is in operation in eight
districts of western hills including Rukum, Rolpa, Humla, Kalikot,
Dailekh, Jajarkot, Bajhang and Bajura. Investment plans (to be prepared
in the involvement of poor and implemented on their own) are being
implemented in 135 VDCs of those 8 districts with a target to raise the
living standards of Dalits and ultra poor. The project has covered 71,984
households from among 256,190 households and 431,870 people from
among the total population of 1,384,024. This program has been
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implemented in 153 VDCs among 310 VDCs of those 8 districts with the
objective of reducing poverty level of the majority of population
considered backward from human development index perspective.
7.7 Western upland poverty alleviation project will provide support to
achieving the goal of poverty reduction by 2030 as per the sustainable
development goal. As per the project completion report 2016, despite
creation of bases for agriculture marketing in eight (8) project districts,
access of farmers to market information is still low. As such, the report
has recommended to build the project with incorporation of four
components, i.e. strengthening of cooperatives, increase in agricultural
productivity, modernization of agricultural land, and development and
expansion of agricultural roads and market promotion. On the basis of
such learning, poor identified in those districts were involved in
cooperatives system and agriculture marketing related projects were
designed, which are in the process of implementation.
7.8 Institutional and structural tasks, under the “poverty alleviation through
cooperatives” program, which is designed considering the situation of the
people living below the poverty line in western upland poverty
alleviation project implemented districts, have been completed in FY
2016/17 coming into operation from upcoming fiscal year 2017/18.
Table 7 (a) : National Household and Population Survey
Households and Total Population of WUPAP Implemented Districts
National Household and Population Survey
Number of WUPAP Implemented

WUPAP Benefited VDCs %

Total Benefited Households


Number of Municipalities
Total Number of VDC
WUPAP Beneficiary

Benefited Families%

Benefited Population
Household Number

Population %
Population
Districts

VDCs
SN

Total Male Female


1 Rolpa 43757 224506 103100 121406 16.22 51 0 20 39.22 6630 15.15 39673
2 Rukum 41856 208567 99159 109408 15.07 43 0 20 46.51 9440 22.55 51280
3 Dailekh 48919 261770 126990 134780 18.91 55 1 20 36.36 10057 20.56 58989
4 Jajarkot 30472 171304 85537 85767 12.38 30 0 15 50 7146 23.45 41819
5 Kalikot 23013 136948 68833 68115 9.89 30 0 15 50 8161 35.46 47686
6 Jumla 9479 50858 25833 25025 3.67 27 0 22 81.48 6454 68.09 39191
7 Bajura 24908 134912 65806 69106 9.75 27 0 18 66.67 11721 47.06 71720
8 Bajhang 33786 195159 92794 102365 14.1 47 0 23 48.94 12375 36.63 81512
Total 256190 1384024 668052 715972 100 310 1 153 49.35 71984 28.1 431870
Source: Ministry of Cooperative and Poverty Alleviation

7.9 Works are ongoing with a target of completing feasibility study by FY


2016/17 for the operation of target programs in every province in FY

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2017/18 that would create employment and reduce poverty through
marketing and infrastructural reform as well as enhance production and
productivity.

Progress on Millennium Development Goals

7.10 Nepal has been incorporating millennium development goals (MDG) in


its plans and programs since its tenth periodic plan with commitment to
achieve those goals by 2015 by augmenting resources in the social sector.
Consequently, notable progress has been made by the end of this period.
With regard to MDG-1, the number of people living below poverty line
has dropped to 21.6 percent in 2016 AD from 42 percent of 1995 AD.
However, poverty situation is still miserable among dalit and other
backward communities of far-Western and Karnali regions and rural
communities in comparison to that of urban areas.
7.11 As per MDG-2, net enrollment rate in primary school level has reached
96.6 percent while the literacy rate of 15- 24 age group reached 88.6
percent with retention rate of 86.8 percent at primary schools. Notably
increased investment on education sector, execution of subject area-wise
program at school level education with the involvement of development
partners, scholarship, day-snacks program, and separate toilets for girl
student program are the reasons for meeting the enrollment target.
7.12 According to MDG-3, targets related to gender equality have been
achieved due to gender equity rate reaching 1.09 at primary level schools
and 1.0 percent at secondary level, reduced gap of literacy rate between
women and men of 15-24 age group, presence of women in
administrative sector almost increased by two folds when compared to
that of last ten years and about one-third presence of women in
legislative parliament.
7.13 There has been remarkable progress in various indicators as per MDG-4.
Child mortality rate, infant mortality rate and anti- measles vaccines have
attained notable progress. Maternal/infant mortality rate that was 108 per
1000 live births in 1990 dropped to 33 in 2014. Likewise, child mortality
rate in 1000 live births in 1990 that had stood at 162 fell significantly to
38 in 2014. Anti-measles vaccine has reached 92 percent.
7.14 As per MDG-5, maternal mortality rate which was 850 per 100 thousand
in 1990 has gone down to 258 in 2015. Nepal has been awarded by UN
for its notable progress in reducing maternal mortality rate. Policies

104
arrangements of free maternity service, travel expense allowance,
motivation to the health workers delivering services in remote districts
and trainings for local health workers, midwives, legalization of abortion
have vital role to achieve progress in maternal health. Maternal mortality
rate has dropped as a result of decreased net reproductive rate in contrast
to increased use of family planning contraception together with increased
number of women giving birth in presence of trained health workers and
that of pregnant women to take medical advices and services.
7.15 As per MDG-6, the rate of HIV infection in men and women of 15-49
age bracket that stood at 0.29 in 2000 has dropped by 80 percent in 2015.
Target with regard to tuberculosis has also been achieved. The mortality
rate caused by malaria has reached zero which is why this disease is in
the state of eradication.
7.16 Nepal has executed policies and programs to safeguard environmental
means and resources so as to achieve sustainable development goal
(SDG) as per the goal 7 of MDG. As a consequence, most of the
indicators have shown positive results. The number of families using
firewood as household fuel has dropped to 53.8 percent in 2015 from
68.4 percent of 2000 A.D. During this period, LP gas using families have
reached 28.7 percent from 7.7 percent. Likewise, forest covered area has
reached 44.5 percent while the protected area covers 23.5 percent.
Similarly, 83.6 percent households have access to the improved drinking
water while 81 percent of the households have access to sanitation
facility. In total, the progress made towards achieving MDG has been
encouraging. But, breaking down of many of targets achieved on MDG
goals shows that disparities still persist geographically and among social
groups themselves. Despite quantitative achievement of goals
improvement is called for achievement in qualitative terms.

Sustainable Development Goals (SDGs)

7.17 United Nations (UN) launched SDG in 2016. Governments of the world
including that of Nepal have made commitments to its implementation.
There are altogether 17 such goals, 169 targets and 239 indicators set to
eradicate all forms of poverty and hunger by 2030 A.D with inclusion of
disaster management component. These goals are set on the basis of
MDG and their scopes have been expanded to meet the goals that MDG
failed to achieve. SDGs aim at ending poverty, saving earth, ensuring
prosperity and human rights for all together with gender equality and
women empowerment. These goals are integrated, inseparable, and

105
maintain balance among economic, social, and environmental
dimensions of sustainable development.
7.18 The 14th plan has set the target of graduating to middle income country
by the year 2030 through high economic growth with employment
oriented and equitable distribution system thereby ultimately creating the
base for sustainable economic prosperity. Goals need to be incorporated
right at the program/project selection level while formulating budget so
as to ensure execution of these targets for attaining sustainable
development goals. For this, budgetary allocation has been ensured from
FY 2016/17 by specifically making target-wide budgetary allocation
while explaining the expected support of such allocation to each
component of sustainable development goal through coding and analysis
of program/project while proposing programs in the budget.
7.19 A six-member Central Steering Committee has been formed in
coordination of Honorable Prime Minister and Chairperson of National
Planning Commission with a view to make the coordination and
implementation of SDGs effective and organized. The Committee shall
provide direction, guidelines, and leadership as required for
implementing SDGs in the Nepalese context and take higher level
political ownership as well. Similarly, under this Committee, an eight-
member Sustainable Development Goals Implementation and
Coordination Committee has been constituted in coordination of vice-
chairman of National Planning Commission. This Committee shall
submit periodic reports by monitoring plans and budget, foreign aid
mobilization, and implementation with regard to SDSs. Secretariats of
both Committees shall be located at the National Planning Commission
Secretariat.
7.20 In consideration of the roles and responsibilities of public, private and
non-government sectors in fine-tuning and effective implementation of
SDGs, nine (9) Thematic Working Committees have been formed in
coordination of the member of National Planning Commission with
representatives from concerned ministries and private sector
organizations/institutions.
7.21 Costing and Funding Strategy for SDGs needs to be formulated in the
process of its implementation to achieve the set objectives through
successful implementation of baseline report, voluntary national review
and SDGs.

106
7.22 As per the Nepal Living Standards Survey, 2011 of Central Bureau of
Statistic (CBS) a person with less than 2220 calorie per day and an
annual purchasing power parity below Rs. 19,261 was defined as a poor
on consumption basis, while as per United Nations Development
Program (UNDP), poor is defined as a person having income less than
USD 1.25, and on the basis of 10 indicators (two of them each for health
and education and six (6) of them for living standards) as per
multidimensional poverty indication. Likewise, poverty is being
measured on the basis of personal capacity to afford food for three (3)
months, six (6) months and nine (9) months and on the opportunity and
accessibility of a person to transfer one’s own property and skill.

Poverty Alleviation Fund

7.23 Community demand based programs targeting lower strata of people


living below absolute poverty with the involvement of social inclusion;
transparency; demand-led and direct community based programs are
being implemented in active participation of ultra poor and backward
groups through poverty alleviation fund. There has been provision to
operate and implement programs by involving poor communities and
forming community organizations.
7.24 Poverty level has dropped to 33.1 percent from 50.7 percent in the
community based program run households as compared to that of FY
2006/07. From this, poverty level is estimated to have dropped by 2.49
percent annually on average while average per capita consumption has
grown up by 124.2 percent.
Table 7 (b) : Amount Mobilized Through Community Organizations( In Rs. 1000)
Small Total
Income
Infrastructure Innovative World Trust
S.N FY Generating GoN
Development Programs Total Bank Fund
Programs Grants
Programs Grants Grants
1 2005/06 155083 90730 138070 383883 317597 - 66286
2 2006/07 404332 76444 499113 979889 979889 - -
3 2007/08 1274572 230652 46451 1551675 1551675 - -
4 2008/09 971458 261798 27640 1260896 1260520 - 376
5 2009/10 1388289 426561 35749 1850599 1850599 - -
6 2010/11 1526898 470910 11401 2009209 1720129 - 289080
7 2011/12 1445461 914485 24132 2384077 1661869 685642 36566
8 2012/13 1044414 591030 31630 1667075 1457013 175128 34934
9 2013/14 897021 742155 32882 1672059 1603579 23300 45180
10 2014/15 861770 490545 20048 1372362 1320977 - 51385
11 2015/16 1163488 396664 1247 1561399 1488065 19813 53521
12 2016/17* 162808 94215 - 257023 254352 2671 -
Source: Poverty Alleviation Fund
* First Eight Months

107
7.25 A total of Rs. 1,561,399,000 was mobilized to implement 5,222 income
oriented, community infrastructure development and new projects
through community organizations (COs) in FY 2015/16. By the end of
first eight months of fiscal year 2016/17, a total of 1,290 such projects
have been implemented in the targeted communities with the
mobilization of Rs. 257,023,000.

Youth and Small Entrepreneurs Self-Employment Fund

7.26 Youth and Small Entrepreneurs Self-Employment Fund has disbursed


easy collateral-free periodic loan up to 200 thousand per person with the
objective of increasing incomes of economically backwarded, deprived,
disadvantaged including women, Janajatis, conflict affected and injured,
disappeared and martyrs’ families, unemployed youths and people
having traditional skills through agriculture and businesses to facilitate in
their livelihood. Specially, the Fund’s target group has been unemployed
youths with age bracket from 18-50 years.
7.27 The major objectives of Youth and Small Entrepreneur Self –
Employment Fund are: to provide self-employment opportunity to
educated and uneducated unemployed youths through the development of
entrepreneurship by making the maximum use of productive labor for the
rapid development of the country thereby brining changes in traditional
production system; to operate self-employment programs by providing
collateral-free periodic concessional loans through banks and financial
institutions and cooperatives; and to make vocational trainings available
to such youths as well.
7.28 Loan has been provided for skill oriented self-employment programs to
those skilled unemployed youths to run small and cottage businesses and
grocery stores including one village one production, commercial
farming; poultry farming; agriculture and wildlife and mines and
precious stone, factories; rickshaw and push-cart and plumbing service
operation, repair and maintenance of electronic goods. Provision exists
for coordinating with national and international cooperatives, lend credit
to banks, financial institutions and cooperatives, and extend collateral-
free credits by BFIs as microcredit to target groups on personal, group,
and project guarantee basis.
7.29 In the first eight months of current fiscal year 2016/17, Rs. 3.9538 billion
has been invested through 961 cooperative institutions including 20 BFIs
upon the primary lending agreements. Of this investment, Rs.1966.0

108
million has been recovered while Rs. 1987.7 million is still on
investment. More than 60 percent of total investment is on production
sector. A total of 35,254 people have been self-employed with additional
4,568 individuals by the first 8 months of current fiscal year.

Employment

7.30 Employment promotion programs including labor and employment


serctoral policy, domestic labor management in compliance with plan,
vocational skill development training, industrial peace establishment
through social dialogues, child labor mitigation and inferior child labor
prevention, business related security and health, unemployment,
collection of data on human resource are in operation. A total of 512
thousand active youths are estimated to enter Nepal’s labor market
annually.
7.31 The gap between demand and supply of labor has been large. The growth
of skilled manpower and creation of employment could not be attained as
expected. More than 1,500 youths leave the country every day. Around
3.48 million foreign employees who left country from formal and
informal means are categorized as 1.5 percent skilled, 23 percent semi-
skilled and 75.5 percent unskilled.
7.32 Earthquake and border obstructions of 2015 that rendered damage to
agriculture and industrial sectors caused laborers to lose their jobs. Youth
force has been displaced from earthquake most affected areas. As a
consequence, there has been wide gap between demand and supply with
regard to labor and employment. However, employment is likely to grow
by more than 3.0 percent with the economic growth rate of 6.94 percent
in the current fiscal year 2016/17. The growth rate of employment had
stood below 2.9 percent during the review period last year.

Foreign Employment

7.33 Lack of employment opportunities in Nepalese labor market, low


remuneration, culture of not respecting to job, education, development in
communication and technology and increased expectations of youths
have been the influencing factors for increased outbound trend among
Nepali youths. Devastating earthquake and lack of commercialization
and industrialization of industrial sector have been the reasons as why
foreign employment became an alternate choice for them.

109
7.34 There are 110 countries opened for Nepali migrant workers to go on
institutional basis while more than 167 countries are open for the same to
go on personal initiatives. To prepare expert and skilled manpower for
domestic employment/ self employment along with entrepreneurship and
foreign employment, governmental and non-governmental sectors are
providing youth and job oriented technical and vocational trainings
targeting youth labor force. Only 24.5 percent of such labor force is
leaving for foreign employment after the receipt of training.
Table 7 (c) : Status of Skill Development Training
Fiscal Year Female Male Total
2005/06 3432 3633 7065
2006/07 7457 6596 14053
2007/08 9716 6432 16148
2008/09 12702 9039 21741
2009/10 13305 9257 22562
2010/11 12530 9600 22130
2011/12 8045 8507 16552
2012/13 7586 7521 15107
2013/14 8278 9050 17328
2014/15 7750 8129 15879
2015/16 6947 10546 17493
2016/17* 6125 6985 13110
Source: Vocational and Skill Development Center
*First Eight Months

7.35 Tasks such as work permit, renewal and monitoring are carried out to
make foreign employment well organized, secured and dignified. Work
permits were provided to 437 non-resident Nepalese workers working in
Nepal after having their regular monitoring, while 175 of them had their
permits renewed by the first eight months of current fiscal year.
Likewise, Foreign Employment Management Information System has
been operating since December 18, 2016 for managing the records of
outbound Nepalese workers for foreign employment and for its
implementation. Following entities are entitled for carrying out these
tasks. It is felt necessary to link system with NRB and other commercial
banks as well.

110
Table 7 (d) : Organizations Affiliated to Foreign Employment Inforation
Management System
Registered-1044
Number of Registered Licensed Organizations for Foreign Employment Active-890
Idle -154

Total-121
Number of Organizations imparting orientation to Nepali Migrant Workers Currently Operating- 115
Non-Operating-7

Number of Organization carrying out Health Check-ups of Nepali Migrant


278
Workers

Number of Banks operating with Electronic System 8


Source: Ministry of Labor and Employment

Table 7 (e) : Licensed Migrant Workers’ Details


FY 2006/07-FY 2015/16 Of FY 2015/16 Until FY 2015/16
Country
Male Female Total Male Female Total Male Female Total

Qatar 834818 7819 842637 127520 1518 129038 962338 9337 971675
Malaysia 1029876 23221 1053097 59355 1624 60979 1089231 24845 1114076
Saudi Arab 624450 3060 627510 136958 1571 138529 761408 4631 766039
UAE 371188 30259 401447 44641 8152 52793 415829 38411 454240
Kuwait 62990 38020 101010 9286 763 10049 72276 38783 111059
Baharain 36843 3130 39973 2824 322 3146 39667 3452 43119
Oman 22267 3713 25980 2243 816 3059 24510 4529 29039
South Korea 26217 1213 27430 6855 577 7432 33072 1790 34862
Lebanon 1108 11320 12428 51 116 167 1159 11436 12595
Israel 2138 4182 6320 81 108 189 2219 4290 6509
Afganisthan 7755 40 7795 1417 2 1419 9172 42 9214
Japan 10884 674 11558 3725 119 3844 14609 793 15402
Others 34928 9155 44083 4450 3619 8069 39378 12774 52152
Total 3065462 135806 3201268 399406 19307 418713 3464868 155113 3619981
Source: Ministry of Labor and Employment

7.36 Employment permit system (EPS) has been converted to electronic


system and is in operation. System has been developed to conduct
Computer Based Test (CBT) through the same method. Agreements have
been reached with five (5) major labor destination countries namely,
UAE, Qatar, Japan, South Korea and Bahrain.
7.37 A total of 3,201,268 Nepalese left the country for foreign employment
between FY 2006/07 and 2014/15 and 3,065,462 of them were men
while remaining 135,806 were women. Such number stood at 418, 713 in
FY 2015/16 where 399,406 were men and 19,307 were women.

111
7.38 A total of 3,619,981 individuals have gone for foreign employment until
FY 2015/16 and of this, 3,464,868 were male and 155,113 were female.
Likewise, the total number of outbound Nepalese for foreign
employment with work permit has stood at 186,166 by the first eight
months of current fiscal year 2016/17. Of this, 176,831 are male and the
rest 9,335 are female. As per above statistics, the number of laborers
leaving the country with work permit for foreign employment is
declining as compared to that of preceding years.
Table 7 (f) : Country-Wise Foreign Employment Situation
Country Male Female Total
Qatar 61,255 1,014 62,269
Malaysia 37,847 617 38,464
Saudi Arab 42,423 760 43,183
UAE 22,459 3,792 26,251
Kuwait 5,317 331 5,648
Baharain 1,780 144 1,924
Oman 1,078 334 1,412
South Korea 47 -- 47
Lebanon 32 44 76
Israel 36 36 72
Afganisthan 538 3 541
Japan 1,567 53 1,620
Others 2,452 2,207 4,659
Total 176831 9335 186166
Source: Ministry of Labor and Employment

Foreign Employment Promotion Board


7.39 Financial assistance of Rs. 925,669,000 has been provided to the families
of 5,444 migrant workers including 5,328 of male and 116 of female
workers deceased between FY 2008/09 and 2015/16. Such support
amounted to Rs. 94,015,000 distributed to 315 families including 308 of
male and seven (7) female workers deceased in eight months of the
current fiscal year 2016/17.
Table 7 (g) : Details on Number of Deceased Nepali Migrant Workers and
Financial Assistance
FY Male Female Total Amount (In ,000)
2008/09 75 3 78 7709
2009/10 400 19 419 38977
2010/11 558 8 566 49543
2011/12 633 14 647 77195
2012/13 711 11 722 97930
2013/14 852 24 876 120460
2014/15 1000 6 1006 217890
2015/16 791 24 815 221950
2016/17* 308 7 315 94015
Source: Ministry of Labor and Employment
*First Eight Months

112
Table 7 (h) : Details of Ailing and Maimed Nepali Migrant Workers
Fiscal Year Male Female Total Amount (In,000)

2008/09 8 0 8 245

2009/10 8 2 10 164

2010/11 31 0 31 1422

2011/12 55 2 57 3371

2012/13 87 3 90 6212
2013/14 108 8 116 7559

2014/15 179 4 183 16650

2015/16 111 5 116 14284

2016/17* 106 1 107 15891


Source: Ministry of Labor and Employment
* First Eight Months

7.40 A total of 611 ailing and maimed migrant workers including 587 male
and 24 female were distributed with financial assistance of Rs.
49,907,000 between 2015/16 from FY 2008/09 and 2015/16, while
during first eight months of the current fiscal year such assistance
distributed to 107 such workers including 106 male and one female
totaled Rs. 15,891,000.

Social Security Fund

7.41 Social security works are being carried out with the common effort of the
state and citizen in order to provide social security to the citizens who are
at risk from social and economic perspectives. Social Security Fund has
to prepare integrated social security strategy to implement universal
social security program. The draft on Social Security Act is under
consideration in legislative parliament. Social security plan and working
procedures have been formulated. In the first eight months of the fiscal
year 2016/17, around 3,000 organized institutions have entered the social
security tax net and among them, 82 percent are the government sector
while remaining 18 percent are the non-governmental sector with a total
of 2 million contributors. Arrangement of Data Center and electronic
system for the Center has been made so as to manage working system of
the Fund.

113
Table 7 (i) : Amount Collected in Social Security Fund(In Rs. 10 Million)
Fiscal Year Collected Amount
2009/10 54
2010/11 74
2011/12 155
2012/13 148
2013/14 225.66
2014/15 292.58
2015/16 326.97
2016/17* 254.19
Source: Ministry of Labor and Employment and Financial Comptroller General Office
*First Eight Months

7.42 A sum of Rs. 12762.1 million was raised from social security tax until
FY 2015/16 from FY 2009/10 while Rs. 2541.9 million was collected
during the first eight months of current fiscal year 2016/17. In order to
implement social security plan, Rs. 520 million was allocated while this
amount has reached Rs. 630 million with its Principal and interest. Legal
structure has been prepared for the operation of social security programs
such as safe motherhood, accidental insurance, medical insurance and
sickness insurance.

Poverty Alleviation and Employment Targeted Program

Karnali Employment Program

7.43 Karnali Employment Program is in operation in 5 districts of Karnali


Zone and 5 existing VDCs of Bajura district. Among 69,651 households
of those areas, 41,229 household members are employed. This program
has provided Karnali zone dwellers seasonal employment creating
employment equivalent to 3,498,690 workdays with the completion of
about 226 small projects (motor roads, school building, maintenance of
micro-hydro projects, trails, mule tracks, fruits and herbal farming etc.)
in last decade. Construction of six (6) rural roads has been completed in
the first eight months of current fiscal year 2016/17. Likewise, income
generating programs including irrigation, micro-hydroelectricity, school
building are in operation. Employment equivalent to 40 workdays per
person per family to 510 households have been generated. Impact study
needs to be carried out on this long run program and implemented with
its extension and reform.

114
Bisheshwor with Poor Program
7.44 Bisshewor with Poor Program is being conducted in 483 working areas
of all 75 districts, through the social mobilization targeting ultra poor.
This program has incorporated 80 thousand households with seven (7)
thousand organized groups. The working areas of this program has been
extended to existing 97 VDCs of 39 districts where training to 55
individuals have been imparted with the completion of 40 drinking water
and 3 irrigation projects by FY 2015/16. Small rural infrastructure related
programs including drinking water, irrigation, pond repair, trails and
other income generating activities are being conducted in current fiscal
year 2016/17.

Rural Community Infrastructure Development Program

7.45 This program is in operation in 21 districts with a view of developing


sustainable and productive infrastructures to improve food security status
of poor families thereby enhancing their self-reliance capacity. Rural
road constructions together with some small income raising activities are
being carried out.
Table 7 (j) : Rural Community Infrastructure Development
*Livelihood and
Rural Road Employment
Fiscal Year Income Generating
Construction (Km) Genration (Day)
Activities ( (Units)
2013/14 117 186 11,86,735
2014/15 82.5 188 60,3,488
2015/16 95.12 194 6,85,388
2016/17* 24.3 48 64,125
Source: Ministry of Federal Affairs and Local Development
*First eight months

Linking Local Initiatives with New Knowhow Program

7.46 Linking Local Initiatives with New Knowhow Program facilitated in the
completion of of a five-year periodic plan in 234 VDCs of Jajarkot,
Kalikot, Jumla, Mugu, Accham, Dailekh and Doti districts. Likewise,
7000 families have been involved in income generating activities thereby
increasing their access to markets. Moreover, this program has activated
four hundred (400) producers where 90 Farmers Enterprise schools and
15 agro products collection centers are in operation. The fourth phase of
this program has already been completed in 2015 while preparation to
run its fifth phase ( 2016-2020) in Jajarkot, Accham, Bajura, Kalikot and
Mugu districts in the name of governance program is underway.

115
Border Area Development Program

7.47 This program is in operation with high intensity in boarder areas of


eastern and central Terai regions having comparatively low human
development index (HDI) with a view to attain inclusive development. In
FY 2015/16, road construction and upgradation, river training, solar lamp
and electric pole installation, goat distribution and capacity development
related trainings were conducted. In the first eight month of the current
fiscal year, orientation program has been conducted in 10 additional
districts.

Challenges

7.48 It is a challenging task to formulate Acts and Rules, and develop and
implement investment plan to arrive at solution of problems such as
operation of security sector programs through various government and
local entities; failure to prepare coordinated investment plan for
utilization of fund despite its continued growth; and absence of an
ascertained arrangement for spending security fund amid ambiguities in
expenditure headings as what and where to spend it.
7.49 There remains a challenge to sustain the achievements already made
towards MDGs in a situation where access of physically challenged
children to school is not easy; dropout rate of school children still
remains high, quality of community schools has not yet improved,
infrastructures including school buildings are damaged by the
earthquake.
7.50 Task of reaping demographic dividend from economically active
population; preparing skilled human resource as per domestic and
international demand; reducing dependency of youth over foreign
employment by creating employment opportunities at home; developing
good labor relations; ensuring business related health and security of the
workers are full of challenges. Likewise, investing the remittance income
on capital formation and enterprise sector is another daunting task.
7.51 The task of making preparation to sign bilateral labor agreements with
those major destination countries with whom extension of such
arrangement is still due; making effective implementation of the decision
on free-visa, free ticket scheme appear as daunting challenges.

116
7.52 Conducting social security programs in an integrated manner;
mobilization of social security fund in a coordinated manner by preparing
investment plan; and bringing contribution-based social security
programs to targeted groups are full of challenges.
7.53 There lay a challenge to maintain harmony between poverty alleviation
and employment related programs with periodic plans through their
internalization; implementing poverty alleviation and employment
related programs at federal and local levels by ensuring the resources and
managing federalism.
7.54 Task of reducing poverty is getting much tougher owing to growing
trade deficit, negative impacts of climate change, energy crisis, lack of
infrastructure, and economic growth rate that is lower than required to
raise the socio-economic indicators. Devastating earthquake has added
further challenge to this.
7.55 Equally challenging is the task of making coordination and monitoring of
poverty alleviation programs effective with variance in understandings of
poverty and poverty alleviation among government entities, development
partners, national and international non-governmental organizations with
greater variability in their data.

117
8. Agriculture, Forestry and Land Reform

Traditionally, agriculture has been a major occupation for livelihood. With


progress in science and technology, contribution of the agriculture sector to
the economy is declining while that of industries and services sector is
gradually increasing. The share of the agriculture sector in GDP is 28.9
percent while about two third of the population is engaged in this sector.
Likewise, more than 40 percent of total land area is covered by forests.
Progress in Agriculture and Forestry sectors could not be achieved to the
desired level for failing to link these sectors with other sectors of the
economy. Plethora of problems including destruction of agricultural land;
difficulty in acquisition of land for development and construction works; rise
in encroachment of forest and river-based products; growth in unplanned
settlements; and rising environmental destructions exist due to absence of
law and action plan commensurate to scientific land-use policy. Hence, it is
imperative to broaden the path to economic prosperity through high,
employment oriented and sustained economic growth by preeminently
mobilizing the available means and resources thereby formulating scientific
land-use policy and adopting research and fact based strategies and
programs in all sectors including agriculture, forestry, herbal, tourism and
water resource.
Agriculture

8.1 Since time immemorial, agriculture has been the basic profession for
livelihood. Despite decreasing share of the agriculture in the world
economy with development and expansion of other sectors, size of the
production of this sector has been growing. The agriculture sector
occupies 28.9 percent of the Nepalese economy. Population engaged in
agriculture profession, however, is around two third. Agriculture sector
could not be linked to other sectors of the economy while modernizing
this sector. Due to the failure to make feel agriculture a dignified
occupation, this sector has not developed to the extent desired.

8.2 There is a need to implement Agriculture policy and programs that help
improving agro-based industry while raising production and productivity
of the agriculture sector. Program is needed to encourage production and
consumption of healthy food grains while promoting the use of organic
pesticides in the agriculture system. Food sovereignty guaranteed by the
Constitution of Nepal requires to be ensured by raising the size of
agriculture production while adopting scientific method in food grains

118
and cash crops farming systems. Agriculture policy and programs have
been geared towards this direction.

8.3 Following implementation of Agriculture Perspective Plan in B.S. 2052


(1995 AD), Agriculture Development Strategy is in implementation for
next 20 years 2015 - 2035. Objectives of this strategy are to make the
country self-reliant on food grain; boost employment opportunities
through development of a competitive professional agriculture system;
ensure food and nutrition safety; and conserve the environment
sustainably.

8.4 As agriculture is the source of raw materials for industrial development, a


Prime Minister Agriculture modernization project to be financed from
internal resource has been launched from FY 2016/17 forming a
supplementary project of agriculture development strategy to promote
agricultural entrepreneurship. In the process of identifying feasible
commercial agriculture production area super zones of 1,000 hectare land
in each of seven provinces under this program, 30 zones of 500 hectare
have been identified. Similarly, 2,100 small pocket areas of 10 hectares
each have been identified including 600 in the proximity of postal roads
and 200 in and around the mid-hill highway.

8.5 Agricultural crop production programs as a commercialization basis are


carried out by establishing two blocks of at least 100 hectares each in
every district. Likewise, supplemental programs for local employment
promotion and industrialization of the agriculture sector are in
implementation through eight projects supported by foreign aid agencies.

8.6 Agriculture sector is estimated to have contributed 28.9 percent to GDP


in FY 2016/17. Such contribution of the Agriculture sector in the
previous FY 2015/16 stood at 31.1 percent. Annual growth rate of the
Agriculture sector in FY 2016/17 at basic prices is estimated at 5.3
percent whereas such growth remained negative by 0.03 percent in the
previous FY 2015/16. Growth of the Agriculture sector, which is
dependent on favorability of weather condition, has not been satisfactory
during previous 10 years.

Production Status of Food Crops

8.7 Total production of food grains (rice, maize, millet, wheat, barley,
buckwheat) in current fiscal year 2016/17 is estimated to grow by 13

119
percent reaching 9,741,000 MT. Food crops production in the previous
fiscal year was 8,614,000 MT.

8.8 Production of Paddy (Rice) in the current fiscal year is estimated to reach
5,230,000 MT. This is higher by 21.6 percent of previous fiscal year's
production of 4,299,000 MT. Such increase in production is attributable
to timely onset of monsoon, easy availability of chemical fertilizer and
improved seeds, and increased access of farmers to modern technology.

8.9 Production of maize, which is the second major crop after rice, is
estimated to increase by 3.97 percent to 2,320,000 MT in the current FY
2016/17 as compared to previous fiscal year. Productivity and production
of maize is estimated to increase due to the of expansion of maize crop
with the attraction of farmers caused by rise in its demand by animal feed
industry; and smooth availability of chemical fertilizers and improved
seeds and favorable weather as well.

8.10 Production of wheat in comparison to previous FY 2015/16 is estimated


to increase by 6.0 percent in the current fiscal year 2016/17 reaching
1,841,000 MT. Production of this crop in previous FY 2015/16 was
1,736,000 MT. The rationales behind production growth estimation are,
retention of moisture due to favorable monsoon followed by rainfall after
sowing the wheat crop; easy availability of chemical fertilizers and
improved seeds; and farmers adopting improved production technology.
In this process, measures taken against army bugs infestation in Nawal
Parasi, Rupandehi, and Kapilvastu just prior to wheat plant's multiplying
growth also seem to have contributed to increase in production.

8.11 Millet production in the current FY 2016/17 is estimated to reach


306,000 MT with an increase of 1.26 percent over the previous fiscal
year's 302,000 MT. Land under the millet crop in the current FY 2016/17
decreased by 1.39 percent in comparison to FY 2015/16. Despite less
practice of using improved seed, fertilizer and technology, 2.69 percent
rise in productivity can be attributed mainly to favorable weather though
there is a low use of the modern technologies like improved seeds and
fertilizers.

120
Table 8 (a) : Details of Food Crops Production
(Area: Ha, Production: MT, Productivity: MT/Ha)
2014/15 2015/16 2016/17*
Crops Area Production Productivity Area Production Productivity Area Production Productivity
(Ha.) (MT) ( MT/Ha) (Ha.) (MT) ( MT/Ha) (Ha.) (MT) ( MT/Ha)

1425346 4788612 3.36 1362908 4299078 3.15 1552469 5230327 3.37


Paddy
-4.14 -5.12 -1.02 -4.38 -10.22 -6.11 13.91 21.66 6.81

882395 2145291 2.43 891583 2231517 2.50 897789 2320000 2.58


Maize/Corn
-4.99 -6.04 -1.10 1.04 4.02 2.95 0.70 3.97 3.25

762373 1975625 2.59 745823 1736849 2.33 750000 1841000 2.45


Wheat
1.05 4.91 3.82 -2.17 -12.09 -10.14 0.56 6.00 5.41

268050 308488 1.15 266799 302397 1.13 263101 306215 1.16


Millet
-1.16 1.44 2.63 -0.47 -1.97 -1.51 -1.39 1.26 2.69

10819 10870 1.00 10842 11640 1.07 10890 11979 1.10


Buckwheat
2.94 5.18 2.17 0.21 7.08 6.86 0.44 2.91 2.46

28053 37354 1.33 28368 32806 1.16 26943 32144 1.19


Barley
-0.43 7.27 7.72 1.12 -12.18 -13.15 -5.2 -2.0 2.04

3377036 9266240 2.74 3306323 8614287 2.61 3501192 9741665 2.78


Total Food
Crops -2.96 -3.10 -0.14 -2.09 -7.04 -5.05 5.89 13.09 6.79

Source: Ministry of Agriculture Development


Note: Figures In the lower rows denote growth in percent as compared to that of previous fiscal year
* Expected
Chart 8 (a): Production of Paddy, Maize and Wheat among Major Food Crops

Source: Ministry of Agriculture Development

121
8.12 Buckwheat has been included in national statistics of major crops since
last few years. This crop, which is produced mainly in mountain districts
is cultivated in about 50 districts of the country. With due credit to
favorable monsoon, production of this crop is estimated to reach 11,900
MT in the current FY 2016/17, which is higher by 2.9 percent from the
production of previous fiscal 2015/16. Production of this crop in the
previous fiscal year was 11,600 MT.

8.13 In current fiscal year 2016/17, production of barley crop is estimated at


32,100 MT. This is less by 2 percent of 32,800 MT produced in previous
FY 2015/16. Production of this crop declined due to shrink in acreage
under this crop as farmers got attracted to cash crops with good winter
rain and snowfall.

8.14 In current FY 2016/17, land area used for cultivating paddy, maize,
wheat, and buckwheat has increased. Land area used for growing millet
and barley on the other hand has decreased. Favorable weather together
with easy access to inputs including fertilizer, seed and gradual
improvement in the use of technology has helped increase in productivity
of major food crops.

8.15 In current fiscal year 2016/17, total production of pulses (legume crops,
i.e. lentils, black gram, soybean, pigeon peas, and others) is estmated to
increase by 0.35 percent reaching 353,000 MT against production of
351,000 MT in previous fiscal year 2015/16. Lentil crop occupies about
two third share of total legume production. Production of all legume
crops in FY 2016/17 has increased nominally in comparison to previous
FY 2015/16. Raising awareness among farmers about benefit from
absorption of atmospheric nitrogen into the soil, which helps enhancing
the soil quality, is very much necessary for raising productivity of
legume crops.

122
Table 8 (b) : Production Details of Legumes
2014/15 2015/16 2016/17
Crops Production Productivity Production Productivity Production Productivity
Area Ha Area Ha Area Ha
(MT) (MT/Ha) (MT) (MT/Ha) (MT) (MT/Ha)

204475 227492 1.11 204600 227500 1.11 204650 228068 1.11


Red
Lentil
-0.72 0.29 1.00 0.06 0.00 -0.06 0.02 0.25 0.22

9274 9407 1.01 9350 9500 1.02 9400 9560 1.02


Gram
-0.72 0.29 1.00 0.81 0.98 0.17 0.53 0.63 0.10

16885 16462 0.97 16800 16490 0.98 16830 16700 0.99


Pigeon
Peas
-0.72 0.29 0.99 -0.51 0.17 0.67 0.18 1.26 1.08

23147 19439 0.84 23150 19450 0.84 23200 19500 0.84


Black
Gram
-0.71 0.29 0.99 0.01 0.06 0.04 0.22 0.26 0.04

23588 28319 1.20 23600 28350 1.20 23625 28420 1.20


Soyabean
-0.72 0.29 1.00 0.05 0.11 0.06 0.11 0.25 0.14

11413 14144 1.24 11500 14250 1.24 11520 14500 1.26


Grass
Pea
-0.72 0.29 1.00 0.76 0.74 -0.01 0.17 1.72 1.55

6188 5678 0.92 5700 5780 1.01 5723 5800 1.01


Horse
Gram
-0.73 0.28 1.00 -8.56 1.76 9.51 0.40 0.34 -0.06

30427 32913 1.08 30500 30575 1.00 30525 30600.0615 1.00


Others
-0.71 0.29 1.00 0.24 -7.65 -7.91 0.08 0.08 0.00

325397 353854 1.09 325200 351895 1.08 325473 353148.061 1.09


Total
Legumes
-0.716 0.290 0.999 -0.061 -0.557 -0.496 0.084 0.355 0.271

Source: Ministry of Agriculture


Note: Figures In the lower rows denote growth in percent as compared to that of previous fiscal year

Production Status of Cash Crops

8.16 Production of oilseed crops in current fiscaly year is estimated to reach


212,000 MT. This production, as compared to production of 211,000 MT
in FY 2015/16, is more by 0.28 percent. Growth rate of production of
oilseed has remained low for lacking sufficient investment in this area.

123
8.17 Production of potato in this fiscal year 2016/17 is estimated at 2,755,000
MT with a growth of 8 percent from production of 2,552,000 MT in
previous FY 2015/16. Price of potato has been on rise in recent years has
led to corresponding rise in its price as well. As potato is used as a staple
food in some mountain districts, supply of this product could not be met
its increased demand.

8.18 In current fiscal year, production of vegetable crop is estimated to total


4,164,000 MT, which was 3,820,000 in the previous FY 2015/16. This is
higher by 9 percent in comparison to production of FY 2015/16. Among
cash crops vegetable being the one used on daily basis, this crop has
contributed to improve living standard of the people with commercial
expansion through uses of various technologies of production including
seasonal and off-season vegetable farming; plastic tunnel method
farming; and farming by building green houses.

8.19 Productions of fruits and honey in current fiscal year 2016/17 are
estimated to total 1,025,000 MT and 3,500 MT respectively. Productions
of these items are estimated to to be more by 3.3 percent and 16.6 percent
as compared to previous FY 2015/16. Among fruits, area especially
under the commercial banana farming is on the rise. Growth in
production of apple and mango is also expected. However, orange
production has slightly declined due to disease. With huge potential of
biodiversity-based beekeeping and honey production, and multinational
companies' attraction to honey production as well, apiary sector is
expected to achieve encouraging progress.

8.20 Of the total area under cash crops, are under the oilseed crop expanded
just by 0.19 percent in current FY 2016/17 from that of previous FY
2015/16. Area under the honey and fruit crops has increased by 3.1
percent. Similarly, as compared to previous FY 2015/16, areas under
potato and vegetable crops in current FY 2016/17 expanded by 6 and 8
percent respectively.

124
Table 8 (c) : Production Details of Cash Crops
2014/15 2015/16 2016/17

Crops Production Productivity Production Productivity Production Productivity


Area Ha Area Ha Area Ha
(MT) (MT/Ha) (MT) (MT/Ha) (MT) (MT/Ha)

233054.30 209632.76 0.90 234113.83 211136.25 0.90 234559.87 211732.31 0.90


Oil Seeds
3.59 7.09 3.63 0.45 0.71 0.26 0.19 0.28 0.09

197037 2586287 13.13 190896 2551739 13.367 202350 2755879 13.62


Potato
-4.22 -8.21 -4.16 -3.12 -1.34 1.84 6.00 8.00 1.89

266937 3580085 13.41 280806 3819809 13.60 303271 4163592 13.73


Vegetables
4.71 4.65 -0.06 5.20 6.70 1.43 8.00 9.00 0.93

110802 991978 8.95 111502 992551 8.90 115009 1025284 8.91


Fruits
0.17 1.27 1.10 0.63 0.06 -0.57 3.15 3.30 0.15

170000 1650 0.0097 225000 3000 0.01333 232000 3500 0.015086


Honey
0.59 1.54 0.94 32.35 81.82 37.37 3.11 16.67 13.15

Source: Ministry of Agriculture


Note: Figures In the lower rows denote growth in percent as compared to that of previous fiscal year

Production status of Industrial Crops

8.21 Production of sugarcane, which is a major industrial crop is estimated to


increase from 2,988,000 MT in the previous FY 2015/16 reaching
3,157,000 MT in current FY 2016/17 with a growth of 5.6 percent.
Handsome price received by sugarcane along with rise in the price of
sugar and structure of soil, farmers' attraction is drawn more towards the
sugarcane farming. Production of sugarcane is expected to rise to the
desired level if value of produced sugarcane can be received in time.

8.22 Production of jute in current FY 2016/17, as compared to previous FY


2015/16, is estimated to decrease from 11,600 MT to 9,700 MT with a
decline of 16.3 percent in its production. Difficulty is experienced in
availability of jute seed. With gradual decline in the use of jute bags and
farmers getting attracted towards the crops with comparative advantage
like vegetable farming and fishery has led to such gradual decline in
production of the jute crop.

8.23 Productions of tea and coffee, which are major export oriented industrial
crops, are estimated to reach 24,700 MT and 579 MT respectively in
current FY 2016/17. In comparison to respective production of 23,100
MT and 464 MT in previous FY 2015/16, production of these two crops
125
in the year in review increased by 6.5 percent and 24.8 percent
respectively. Production of tea crop has been on increase as a result of
setting up factory gate price of tea on mutual cooperation among tea
farmers, tea traders, and the government together with implementation of
tea production and its quality improvement programs. Market promotion
of organic coffee is being carried out by adopting the use of organic
fertilizer in coffee crop with a focus on its external market potential.

8.24 Production of fish, which stood at 48,500 MT in first eight months of


previous FY 2015/16 is estimated to reach 54,300 MT with a growth of
12 percent in the same period of current FY 2016/17. Farmers' attraction
towards fishery is growing as it offers more benefit in comparison to
food and cash crops; requires less effort; and provision of grant on
construction of fish pond exists. Currently, demand for availing live and
beautifying (used in decoration) fishes has been on increase. There is
sufficient potential for export orient fishery by using water resources
present it different geographic areas.

8.25 Production of cotton is estimated to be down to 42 MT with 4.5 percent


drop in current FY 2016/17 from that of the previous year's 44 MT. A
campaign for commercial farming has been launched by developing
districts like Dang, Banke, Bardia as pocket areas for cotton production.
Moreover, failure in linking cotton farming to industrial production does
not provide encouraging condition for production of the cotton crop.

8.26 Among industrial crops, land area used for sugarcane, tea, coffee, and
fishery has gone up in current FY 2016/17. Of these, area under the
coffee crop has increased steeply by 47.7 percent from that of FY
2015/16. Area under jute and cotton, however, has decreased by about 7
percent as compared to FY 2015/16.
Table 8 (d) : Production Details of Industrial Crops
2071/72 2072/73 2073/74

- Area Production Productivity Area Production Productivity Area Production Productivity


Ha (MT) (MT/Ha) Ha (MT) (MT/Ha) Ha (MT) (MT/Ha)

66600 3063000 45.991 67372 2988418 44.35697 68402 3157401 46.16


Sugarcane
-13.35 -7.63 6.61 1.16 -2.43 -3.55 1.53 5.65 4.06

11400 16530 1.45 8017 11633 1.451042 7500 9735 1.30


Juite
29.74 30.58 0.65 -29.68 -29.62 0.07 -6.45 -16.32 -10.55
19350 22500 1.16279 20165 23187 1.149864 21267 24702 1.16
Tea
0.41 5.17 4.74 4.21 3.05 -1.11 5.46 6.53 1.01
2381 464 0.19488 2031 464 0.228459 3000 579 0.19
Coffee
24.59 7.91 -13.39 -14.7 0 17.23 47.71 24.78 -15.52
Fish 9200 41481 4.51 9934 48543 4.89 10927 54368 4.98

126
2071/72 2072/73 2073/74

- Area Production Productivity Area Production Productivity Area Production Productivity


Ha (MT) (MT/Ha) Ha (MT) (MT/Ha) Ha (MT) (MT/Ha)

6.98 10.83 3.6 7.98 17.02 8.38 10 12 1.82

123 137 1.11382 38 44 1.157895 35 42 1.20


Cotton
-5.38 3.79 9.69 -69.11 -67.88 3.96 -7.89 -4.55 3.64

Source: Ministry of Agriculture


Note: Figures In the lower rows denote growth in percent as compared to that of previous fiscal year

Production status of Spice Crops

8.27 Productions of cardamom, ginger, and garlic among spice crops are
estimated at 12,800 MT; 290,000 MT; and 47,200 MT respectively in
current FY 2016/17. In comparison to FY 2015/16, such productions in
the current fiscal year are higher by 5.6 percent, 9.2 percent, and 3.8
percent respectively. Likewise, turmeric and chilly productions are
estimated to reach 73,300 MT and 42,600 MT respectively with increases
of 1.2 percent and 0.6 percent from 72,400 MT and 42,300 MT of these
crops produced respectively in FY 2015/16.

8.28 Area under spices crops in current FY 2016/17 is 64,000 hectares. This is
more by 2.5 percent in comparison to previous FY 2015/16. Among
spice crops, area under the cardamom crop has expanded with farmers
attracted toward its farming because of improvement this crop has
brought to their income level. Better potential exists for export of
cardamom if issues like lower production caused by attack of diseases
from time to time, market price volatility, and lack of quality processing
facility domestically are addressed.

127
Table 8 (e) : Production Details of Spice Crops
2014/15 2015/16 2016/17

Crops
Area Productio Productivit Are Productio Productivit Are Productio Productivit
Ha n (MT) y (MT/Ha) a Ha n (MT) y (MT/Ha) a Ha n (MT) y (MT/Ha)

1245 1570 1664


Cardamo 8
5166 0.41467
0
12120 0.77
2
12847 0.77
m 7.68 -1.14 -9.56 20.65 57.38 46.28 5.66 5.66 0.00
2382 2385 2430
242547 10.1799 263140 11.03 289952 11.93
Ginger 6 5 0
-1.68 -13.85 -11.97 0.12 7.83 7.71 1.83 9.25 7.55
7119 44723 6.2822 7205 45390 6.30 7320 47203 6.45
Garlic
7.73 -0.70 -9.13 1.19 1.47 0.28 1.57 3.84 2.31
7877 71812 9.11667 7915 72425 9.15 7990 73307 9.17
Turmeric
7.20 5.82 -1.48 0.48 0.85 0.37 0.94 1.20 0.27

7680 40172 5.23073 7700 42350 5.5 7750 42625 5.50


Chilli
-4.60 11.21 15.11 0.26 5.14 4.90 0.65 0.65 0.00

Total 5896 6237 6400


404420 435425 465934
0 5 2
Spice
Crops 2.24 -6.25 5.47 7.12 2.54 6.55

Source: Ministry of Agriculture


Note: Figures In the lower rows denote growth in percent as compared to that of previous fiscal year

Domestic Animal Sector

8.29 An important dimension of Agriculture has been development of


livestock. Observation of livestock situation reveals prosperity in terms
of cattle density. Livestock productivity however, has been low.
Moreover, the number of commercial farms of dairy cows and buffaloes,
poultry and pigs has grown in recent period with growth in
commercialization in the livestock sector.

8.30 Fiscal year recorded growths of cows/bullocks by 0.85 percent,


sheep/ewe by 1.43 percent, and ducks by 0.51 percent while growths that
of goats and castrated goats was 7.16 percent, domestic and improved
pigs breed 7.79 percent, and horse/mule and donkey was 5.99 percent. As
compared to FY 2015/16, number of these animals and fowls in FY
2016/17 is estimated to grow further by 0.89 percent, 0.09 percent, 0.6
percent, 1.49 percent, 2.4 percent and 1.8 percent respectively. There had
been a notable growth of 46.84 percent in layer hens in previous fiscal
year 2015/16, which is estimated record a nominal growth of 1.6 percent
growth in current FY 2016/17. The number of Yak/Nak, which had
decreased by 3.01 percent in previous FY 2015/16, is estimated to
increase by 0.9 percent in FY 2015/16.

128
Table 8 (f) : Number of Livestock/Fowls
Types of Fiscal Year Annual Growth ( In Percent)
Livestock/Fowls *
2013/14 2014/15 2015/16 2016/17 2014/15 2015/16 2016/17
Cattle 7243916 7241416 7302808 7367803 -0.03 0.85 0.89
Buffaloes 5178612 5167733 5168809 5170360 -0.21 0.02 0.03
Sheep 789210 789370 800658 801378 0.02 1.43 0.09

Goats 10177531 10252236 10986114 11149807 0.73 7.16 1.49

Pigs 1190138 1198001 1291308 1322299 0.66 7.79 2.40

Chicken 48079406 48429016 68630638 70620926 0.73 41.71 2.90


Ducks 390209 390281 392255 394609 0.02 0.51 0.60
Milching Cows 1024513 1025941 1026135 1029213 0.14 0.02 0.30
Milching Buffaloes 1345837 1349124 1355384 1362161 0.24 0.46 0.50
Laying Hens 8350387 8412728 12353515 12551171 0.75 46.84 1.60
Laying Ducks 179447 179480 180927 181651 0.02 0.81 0.40

Yak/ Nak/ Chauri 70588 70966 68831 69450 0.54 -3.01 0.90
Rabbit 25437 25871 32213 32954 1.71 24.51 2.30
Horses/Mules/Asses 52577 52655 55808 56813 0.15 5.99 1.80
Source: Ministry of Livestock Development
*Expected

8.31 In previous FY 2015/16, production of milk in the country totaled


1,853,000 MT, meat 317,000 MT and 1,208,072,000 eggs. From this, per
capita availability of milk reached 70 liters, meat 12 Kg. and 44 eggs.
Production of these livestock products need to increase to fill up the gap
between the productions achieved as above and daily nutritional
requirements of 91 liters of milk, 14 Kg meat and 48 eggs.

8.32 Out of the milk produced in previous FY 2015/16, the ratio of cow and
buffalo milk was 34.5 percent and 65.5 percent. Production of milk in
current FY 2016/17 is estimated at 1,923,000 MT. Milk production is
estimated to grow by 3.8 percent in comparison to previous FY 2015/16.
Production of meat as well is estimated to reach 330,000 MT in current
FY 2016/17.

129
Table 8 (g) : Production Situation of Livestock and Fowls
Fiscal Year Annual Growth( Percent)
Types of Livestock Products
*
2013/14 2014/15 2015/16 2016/17 2014/15 2015/16 2016/17

Milk Production (MT) 1700073 1724823 1853885 1923692.22 1.46 7.48 3.77

Cow 532300 557669 639590 665379.56 4.77 14.69 4.03

Buffalo 1167773 1167754 1214295 1258312.66 0.00 3.99 3.62

Net Meat Production (MT) 294244 300901 317854 330214.73 2.26 5.63 3.89

Buffalo 173906 174012 179110 186083.01 0.06 2.93 3.89

Sheep 2656 2658 2785 2829.05 0.08 4.78 1.58

Goats 59053 60906 63807 66214.05 3.14 4.76 3.77

Pigs 19269 20135 21094 22050.31 4.49 4.76 4.53

Chicken (Fowl) 43133 45458 50815 52793.30 5.39 11.78 3.89

Duck 227 232 243 245.02 2.20 4.74 0.83

Eggs ( in 1000) 872918 899501 1208072 1256144.57 3.05 34.30 3.98

Hen 859515 885947 1194166 1241932.64 3.08 34.79 4.00

Duck 13403 13554 13906 14211.93 1.13 2.60 2.20

Wool (Kg) 586848 586729 588348 591094.81 -0.02 0.28 0.47


Source: Annual Report (various years), Ministry of Agriculture Development and Ministry of Livestock Development
*Expected

8.33 As compared to the previous FY 2015/16, total eggs production is


estimated to rise by 3.98 percent in the current fiscal year 2016/17
reaching 1,256,144,000. Production of wool in previous FY 2015/16,
which stood at 588,000 Kg, is estimated to reach 591,000 Kg with a
growth of 0.47 percent in current FY 2016/17.

Major Causes Affecting Agricultural Production

8.34 Weather: The monsoon had entered on 15 June, 2016 from the Eastern
area. Against the trend of beginning monsoon by June 10 of every year,
the monsoon this year was late by 5 days. The effect of monsoon reactive
in the whole country from 1 July, but in overall it remained normally
average. None the less, from regional perspective, rainfall was more than
average in some geographical sections of mid and far-Western Terai and
some parts of far-Western Mountains. But, Terai and Hills of the East
received less than average rainfall while it was average in rest
geographical areas. Land under paddy cultivation expanded and
production increased due to overall good rainfall. Likewise, there was
positive effect on winter crop due to moisture in soil and normal winter
rainfall.

130
Table 8 (h) : Supply Situation of Agriculture Inputs
Description 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Chemical Fertilizers (MT) 29604 146584 178462 232188 298677 258913.9 187131.5
Improved Seeds (MT) 4393 2964 3669 7290 9151 12480 5031
Irrigation Additional Ha 26919 32565 19561 19310 18083 24291 9775
Fingerlings / in 1000 108900 120620 121987 148501 191345 212355 303530
Agricultural Credits of Commercial Banks (In
1419.2 2340.7 3153.1 4027 6516 7879 8545
10 Million)
Source: Ministry of Agriculture Development
* Progress of First Eight Months

8.35 Improved Technology: Adoption of improved technology in agriculture,


in addition to raising agricultural production, has contributed to raise
productivity as well. There has been improvement in agricultural system
due mainly to improved seed, fertilizer, pesticides, farming method, use
of agricultural tools, and mobilization of trained human resource. As an
example of modern technology adoption, 90 percent of land area under
the maize cultivation is covered by improved maize seed. Recommended
varities of paddy for cultimation includes Sabitri, Bindeshwori, Radha -
4, and Radha - 12 in Terai; Khumal- 4, Khumal - 10, and Khumal - 11 in
mid hills; and Chandannath. More than 90 percent of the total land area
under is covered by recommended paddy varieties. Productivity of these
paddy varieties shows twice the production of local varieties.

8.36 Natural Disaster: Agricultural activities gets directly affected by the


nature as it is not performed in a controlled environment but under the
open sky. Excess rain is estimated to have caused damage to paddy,
vegetables, maize, fish ponds, fruits of 127,158 hectares of land area in
current FY 2016/17. In previous FY 2015/16, land area that suffered such
damage totaled 60,520 hectares.
Table 8 (i) : Natural Disaster Affected Crops’ Land Area (Ha.)
2014 2013 2012 2011
Flood, Flood, Flood, Flood,
2015
Landlside, Landlside, Landlside, Landlside,
Natural Disaster 2016 Earthquake,
Inundation, Inundation, Inundation, Inundation,
Affected Crops Flood Drought
River River River River
Riverbank Riverbank Riverbank Riverbank
Erosion Erosion Erosion Erosion
Paddy 55713 55000 23900 13500 110450 859
Maize 12877 5500 1900 95 21801 656
Millet, Vegitable,
Fruits, Fishponds 58568 20 11 5 3691 2
etc.
Total 127158 60520 25811 13600 135942 1517
Source: Ministry of Agriculture Development

131
8.37 Chemical Fertilizer: A total of 298,677 MT of chemical fertilizer was
sold in FY 2014/15, which decreased by 13.3 percent in FY 2015/16
coming down to 258,913 MT. The reason for such low sale of fertilizer
was due to disturbance in the supply system caused by obstrution at the
borders in previous FY 2015/16. Sale of chemical fertilizers in first eight
months of current FY 2016/17 has reached 187,131 MT. Production of
monsoon crops including paddy has increased as supply of chemical
fertilizers eased, favorable weather condition and increased use of
chemical fertilizer in FY 2016/17.
8.38 The trend of chemical fertilizer use shows that per hectare use in FY
2012/13, FY 2013/14 and FY 2014/15 was 57 Kg, 75 Kg, and 97 Kg
respectively. The use of chemical fertilizer in first eight months of
current FY 2016/17 is 45 Kg. per hectare. As the season for sowing
monsoon crop is due, use of chemical fertilizer is expected to increase by
the end of current FY 2016/17. The use of organic fertilizer is being
encouraged for maintaining soil fertility while conserving its
sustainability.
Table 8 (j) :Sales and Distribution Situation of Chemical Fertilizers ( MT)
Fertilizers 2012/13 2013/14 2014/15 2015/16 2016/17*
Urea 108553 145632 190163 164803.8 116632
DAP 65722 82520 101797 87532.25 64821.1
Potash 2688 5046 6717 6577.85 5678.44
Total 176963 232188 298677 258913.9 187131.54
Source: Ministry of Agriculture Development
* First eight months

Chart 8 (b) : Sale and Distribution Situation of Chemical Fertilzers

Source: Ministry of Agriculture Development


*Sale of Chemical Fertilzers in the first eight months

132
8.39 Irrigation: Of the total arable 2,641,000 Ha, only 1,766,000 ha of land
can be made irrigable due to geographical remoteness and land
conditions. Due to investment made in the irrigation sector and
improvement effort; infrastructure for irrigation has been created by FY
2015/16 for irrigating 1,392,177 Ha. of land comprising surface irrigation
775,000 Ha.; groundwater irrigation 409,013 Ha.; new technology-based
irrigation 5,865 Ha.; and improved farmers' irrigation canal 202,299 Ha.

8.40 Irrigation facility could be made available to only about 40 percent of the
total arable land due to failure on relocating water and execution of
storage-based multipurpose project at desired level. In FY 2015/16
additional irrigation infrastructure was added comprising 5,800 Ha.
surface irrigation; 17,463 Ha. ground water irrigation; and 1,028 Ha.
new technology-based irrigation. By the first eight months of current FY
2016/17, irrigation facility on 9,775 Ha. has been added through
groundwater irrigation infrastructure.
Table 8 (k) :Additional Irrigated Area (In Ha.)
Types of Irrigation 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Total Irrigattion Area
32565 19561 19310 18083 24291 9775
Expanded
1) Surface Irrigation 9395 2016 3514 1586 5800 -
2) Underground Irrigation 22560 17180 15135 15939 17463 9775
3) New Technology Based
610 365 661 558 1028 -
Irrigation
Source: Irrigation Annual Booklet 2015 Department of Irrigation
* Of the first eight months

8.41 Agricultural Credit: Agricultural credit disbursed for agriculture and


livestock stood at Rs. 78.791 billion by mid July 2016 which is higher by
20.9 percent as compared to that of preceding year. Likewise, a sum of
Rs. 85.453 billion has been lent to agriculture sector during the first eight
months of the current FY 2016/17 while such credit amount was Rs. 71.0
billion during the same period of previous fiscal year 2015/16 which is
lesser by 20.3 percent.
Table 8 (l) :BFIs Disbursed Agricultural Lending ( In Rs. Million)
Fiscal Year Changed in First Eight Months
Types of Credits 2015/16 2016/17
2013/14 2014/15 2015/16
(Amount) (Amount)
Farming Related Service 6686.9 7998.3 10347.9 9362.2 11613.3
Tea 3207.9 3479.9 3421.8 3410.5 2824.8
Livestock and Livestock Related Service 15442.2 20730.1 28761.7 24486.3 32102.6
Forestry, Fish Farming and Slaughtering 5791.3 1769.3 2010.1 2173.7 1370.2
Other Agiculture and Agriculture Related Service 19781.7 31182.2 34249.9 31566.4 37542.1
Total 50909.8 65159.8 78791.5 70999.1 85453.1
Source: Nepal Rastra Bank

133
Nepal Agriculture Research Council (NARC)

8.42 Research programs particularly on horticulture, livestock, fisheries and


aquatic species, foundation seed, and other multi-sectors have been
conducted. In this process, technology has been developed in the areas of
successful experimentation of modern cardamom dryer; development of
technology for quick pregnancy testing in cows; possibility of breed
improvement of common carp fish (Rohu); possibility of using synthetic
amino acids and stinging nettle leaves as additives in the feed of
Rainbow trout fingerlings; and lengthening the storage period of pear
pulp by using appropriate mixture of sugar and acid. Likewise,
foundation seed production of rice, maize, wheat, potato, oilseed, jute,
vegetables, ginger, turmeric, sesbania (dhaincha) grass, and release of
horticulture and species of grasses together with preparation for setting
up standards and bases for major food crops pocket areas are among
other activities of NARC.

8.43 In FY 2005/06, the production of foundation seeds of many crop varieties


totaled 669 MT while such production volume stood at 970 MT in FY
2015/16. This has helped to enhance agricultural production and
productivity.
Table 8 (m) : Foundation Seeds Production and Introduction of Crop Varieties
Fiscal Year Foundation Seeds Production No. of Crop Varieties Introduced Remarks
2005/06 669 4
Rice, Wheat,
2006/07 575 10 Maize, Pulses,
2007/08 864 2 Oilseeds, Hill
Crops ( Barley,
2008/09 781 9 Millet,
2009/10 715 0 Buckwheat)
Potato,
2010/11 806 13
Sugarcane,
2011/12 911.8 7 Juite,
2012/13 1009.4 4 Vegetables,
Ginger,
2013/14 1002.83 10 Sesbania
1014/15 975.4 14 (Dhaiincha),
2015/16 970.67 7 Grass
Source: National Agriculture Ressearch Council

Investment for Small Farmer Development

8.44 The Small Farmers Development Bank, established in 2001 with the
objective of leading the activities of small farmer development projects
implemented for the sustainable development of rural small farmers, has
been making wholesale credits available through Small Farmers’
134
Agricultural Cooperatives and other micro-finance institutions of similar
nature established and operated by small farmers in rural sector for
operating agriculture and agro-based microfinance programs.

8.45 The programs implemented through Small Farmers Development Banks


have been extended to 66 districts by the first eight months of current
fiscal year. A total of 602 cooperatives were associated with the
programs by the end of previous fiscal year 2015/16 while this number
went up to 636 with the addition of 34 cooperatives by the first eight
months of the current FY 2016/17. Likewise, the number of small farmer
group to join the Bank operated programs had stood at 31,968 by the end
of FY 2011/12 while this number rose to 81,330 by the first eight months
of current FY 2016/17.

8.46 The number of families of small farmer member associated with this
program reached 599,765 benefiting approximately 2.9 million
populations. Thus, additional 171 organizations replicating small farmer
cooperative are under their establishment process. Local capital,
approved credit, loan investment, and the loan investment amount in this
program have been gradually increasing. The total local capital has
reached Rs. 20300.8 million by the first eight months of the current FY
2016/17 against such capital amount of Rs. 16295.7 million of previous
fiscal year. Similarly, the amount of credit investment in this program
that stood at Rs. 11,304.1 million by the end of FY 2015/16 reached Rs.
13,193.1 mllion by the first eight months of the current FY 2016/17.
Table 8 (n):Member and Loan Investment Situation of Small Farmer Development
Bank
Progess in First Eight
Fiscal Year
Months
Description
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Number of Covered District 43 54 55 57 65 57 66
Numbr of Associated
291 391 428 510 602 544 636
Cooperatives Organizations
Number of Small Farmers’
31968 40991 45738 60334 77378 65235 81330
Group
Number of Small Farmer
228418 323384 376957 460590 541652 492173 599765
Member Family
Total Local Capital (In Rs.
41033 65273 91208 132466 162957 145629 200308
,00000)
Approved Loan (In Rs.,00000) 27550 34332 51355 74834 105592 64025 82162
Loan Investment (In Rs.,00000) 26738 33091 51355 74834 97979 53742 76125
Loan Recovery (In Rs.,00000) 18751 23526 34019 47529 68605 42318 54530
Loan on Investment (In
26762 36327 53662 80967 110341 92391 131931
Rs.,00000)
Source: Small Farmer Development Bank

135
8.47 The Bank has been executing meat oriented livestock credit program
since FY 2010/11 with the objective of reducing increased dependency
on meat items by encouraging small farmers to get engaged in livestock
farming for enhancing meat production. The area of credit has been
extended since FY 2014/15 with a view to disburse credit for milk
production through livestock farming. A credit sum of Rs. 7001.4 million
has been disbursed to 77,754 small farmers of 390 small farmer
agriculture cooperative institutions from 52 districts by the first eight
months of current FY 2016/17.
Table 8 (o) : Livestock Credit Program Detail
Fiscal Year First Eight Month
Description
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Number of Organizations
186 207 257 313 355 333 390
Involved
Number of Borrowers 17941 25411 38373 53680 68816 61592 77754
Approved Loan (In 38272 61405 88322 82832 117789
14305 23029
Rs.,00000)
Loan Investment (In
11023 16229 27172 42371 58816 51217 70014
Rs.,00000)
Number of Livestock 87783 122406 198745 295796 378098 342605 422108
Goat 64073 90433 143872 206416 257705 236031 286469
Pig 11117 14535 24148 39359 49847 45946 54043
Calf Buffalo 5203 6317 10689 16763 20454 18489 21506
Buffalo 7390 11121 20036 31733 44702 38758 51716
Cow - - - 1525 5390 3381 8374
Source: Small Farrmer Development Bank

8.48 In the small farmer sector, programs including farmers’ capacity


enhancement, micro-finance service, alternative energy credit lending,
improved stove, disaster mitigation and rehabilitation, livelihood credits
are being carried out in participation with various development partners.
Similarly, Small Farmer Development Bank has provided both
theoretical and practical international agriculture related training
opportunities to 12 class based 1,600 children of 20-30 age group of
small farmer members with support of the government of Israel with a
view to attract educated youths with skill and competency towards
agriculture profession. Preparations are underway for sending additional
490 such youths to foreign countries to acquire trainings in current FY
2016/17 by coordinating with Kathmandu University since last year.
Cooperative Sector
8.49 Cooperatives is considered as a practice of mutuality and self reliance.
Efforts have been made to improve the living standard of individuals
through cooperatives by enhancing their income level with the operation
of business activities through utilization of collective capital while

136
integrating the limited means and resources, skill and technology lying
scattered among themselves.

8.50 Cooperative business is regarded important for the socio-economic


transformation of poor members. Cooperative sector’s contribution is
visible mainly on leadership development, community empowerment,
productive employment creation, social conflict mitigation and poverty
reduction. Cooperative institutions have created enabling environment
for running various business activities to meet socio-economic needs of
their respective members. Extension of business transactions of
agricultural products is backed up by production oriented cooperative
institutions. In addition to the extension of saving and credit facility,
needy services are also being rendered through consumer cooperative
institutions. Business activities have been increased through worker
cooperative institutions in their own initiatives where access of workers
to additional employment has increased.

8.51 The dynamism of the cooperative sector, which stands as one of the
three-pillars of economic policy that the Constitution of Nepal has
embraced, needs to be accelerated. Cooperatives of various levels have
contributed in capacity enhancement, good-governance, and promotion
of business activities of overall cooperatives sector. Cooperatives are
engaged in the production, processing and marketing of high value
agricultural products such as tea, coffee, cardamom, ginger, vegetables
and fruits, honey, sugarcane, tangerine, herbs and service oriented
cooperative businesses inter alia health, transportation, housing,
insurance, tourism and communication. Thus, the cooperative business
has been developed as a sector that is able to contribute in the equitable
distribution of economic prosperity and achievements of its poor
members.
Table 8 (p) : Basic Status of Cooperative Institutions(In Rs. 000)
No. of No. of Share Saving Loan No. of Direct
Fiscal Year
Institution Members Capital Mobilization Investment Employment
2006/07 9720 1259747 1045563 19517517 2414848 12165
2008/07 12646 1843759 8959172 29308434 30024625 15828
2008/09 19724 21383348 8482476 45676944 52660117 31996
2009/10 22646 2963114 20196274 121831359 10545357 37798
2010/11 23301 3141581 20225139 117295228 116835814 38892
2011/12 26501 3842657 27095151 139543971 134383241 39572
2012/13 27914 4104025 28823060 147069663 137084873 52000
2013/14 31177 4555286 61186201 172529350 154631604 54000
2014/15 32663 5100370 63059914 202420535 188078439 57854
2015/16 33599 6030857 71357882 295727802 289825041 56475
2016/17* 34303 6102665 75742318 298685080 292723291 57883
Source: Department of Cooperative * First Eight Months

137
8.52 The number of primary cooperative organizations has reached 34,303 by
the first eight months of the current fiscal year 2015/16. Aside from such
cooperatives, there are one national cooperative organization, one
national cooperative bank, 20 central thematic cooperative organizations,
69 district cooperative organizations and 256 thematic district
cooperative organizations from center to district level.

8.53 The number of cooperative members stood at 6,102,665 where 51.2


percent are female and 48.8 percent are male. Of the total cooperative
institutions, 4,113 cooperative are fully run by women members. This
tells that women’s participation at the leadership level in cooperative
revolution is on the rise. Likewise, 57,883 individuals have received
direct employment through cooperative sector by the first eight months
of current fiscal year 2016/17.

8.54 Share capital equivalent to Rs. 75742.31 million has been invested in
cooperative sector by the first eight months of the current fiscal year. Of
the total saving mobilization Rs. 292.72 billion, 292.73 billion is in
investment which has contributed to the promotion of enterprise
business from village level to cities and agriculture production
enhancement, income and employment generation.

8.55 While looking at the nature of cooperative institutions established by the


first eight months of the current FY 2016/17, saving and credit
cooperative stands first by its number with 40.5 percent followed by
agriculture related cooperative with 30.3 percent. Likewise, cooperatives
working in finance and production sector constitute 12 percent,
multipurpose cooperative stands at 12 percent while consumer
cooperative institution stands last by its number in the total number of
cooperatives. The task of making information system of cooperative
institution is pushed forward with due consideration. There has been
growing attraction of most of the sectors towards cooperative institution
since it is self-governed organization and contributes heavily to
community development initiatives in steady and regular manner.

Status of Import and Export of Agro-Products

8.56 In the first eight months of FY 2016/17, export of food items and animals
product has increased by 28.8 percent to Rs. 12.08 billion and that of
tobacco and beverages has dropped by 51.04 percent to Rs. 170 million.
Export of those items had stood at Rs. 9.38 billion and 340 million

138
respectively in the corresponding period of previous fiscal year 2015/16.
Similarly, export of goods has increased by 12.8 percent in the first eight
months of current fiscal year in comparison to that of corresponding
period of previous fiscal year. Likewise, import of food items and animal
products had increased by 32.2 percent to Rs. 86.98 billion while that of
tobacco and beverages rose by 28.9 percent to Rs. 4.5 billion in the first
eight months of FY 2014/15. The import of goods has increased by 44.2
percent to Rs. 628.56 billion during the first eight months of current FY
2016/17 as compared to that of same period of previous fiscal year
2015/16.

Forestry and Soil Conservation

8.57 Forest, vegetation, herbs, wildlife, biodiversity, watershed together with


protected areas are among the Nepal’s natural resources to be protected,
promoted and utilized in an appropriate manner. This would maintain
balance between improved livelihood of deprived groups and
contingency approach by increasing income opportunities through the
creation of employment. Similarly, it is necessary to develop overall
forest sector as a reliable source of agriculture, energy, tourism, clean
water and industrial raw materials by increasing the forest product and
productivity through sustainable forest management. Through this,
opportunities of wider economic benefits could be created with
sustainable conservation of environment.
Table 8 (q) : Forest Area of Nepal
Forest Area 4.96 Million Ha. (40.36 Percent)
Shrub Area 648,000 Ha (4.38 Percent)
Total Stem Volume 982.33 Million Cubic Meter
Sal Speciess among Total Stem Volume 19 Percent
Total Bio-mass 11.59 Billion Ton
Average Stem Volume 165 Cubic Meter/Ha
Average Number of Trees 430/Ha
Source: Forest Resource of Nepal Report,2015, Department of Forest Research and Survey

8.58 Forest occupies 40.36 percent while shrubs cover 4.38 percent of the
Nepal’s total land mass. Of the total 982.3 million cubic meter stem
volume, Sal species (Shorea Robusta) covers 19 percent. Likewise, total
bio-mass remains at 1159.7 million tons, average stem volume 165 cubic
meters per hectare and average number of trees stands at 430 per hectare.
Forest sector has been maintained by evacuating encroached forest area
of 43.01 ha. in the mid-March of FY 2016/17 with a view to maintain at
least 40 percent forest area.

139
Table 8 (r): Forest Related Statistiics
Number of Community Forest 19493
Area of Handed Over Community Forest (Ha) 1812489
Number of Household Involved in Community Forest 2397639
Number of Leasehold Forest 7766
Area of Leasehold Forest (Ha) 45043
Number of Household involved in Leasehold Forest 62128
Number of Leasehold Forest for Industrial Use 22
Area of Leasehold Forest for Industrial Use (Ha) 640
Number of Protected Forest 8
Area of Protectd Forest (Ha) 133685
Number of Partnership Forest 28
Area of Partnership Forest (Ha) 70108.37
Number of Beneficiary Households of Partnership Forest 709537
Number of Partnership Forest Beneficiaries 4258859
Number of Religious Forest 36
Area of Religious Forest (Ha) 2056
Number of Private Forest 2458
Area of Private Forest (Ha) 2360
Source : Department of Forest

8.59 Management of Community based forest, conservation area, buffer-zone


level forests has been the successful examples at the global level. By
fiscal year 2015/16, a total of 1,800,573 ha of forest land of 19, 332
community forests has been handed over through which 2,381,403
households have been benefited. By the first eight months of the current
fiscal year, an additional 161 forests have been handed over where the
number of forest users’ group reached 19,493 while the area of handed
over forest has reached 1,812,489 ha benefiting 2,397,639 households.

8.60 By the end of 2015/16, a total of 45,043 ha forest have been handed over
as leasehold forest. The number of such forest reached 7,766 with the
addition of 81 forests by the first eight months of the current fiscal year.
Likewise, the number of households involved with the leasehold forest
has stood at 62,128.

8.61 By fiscal year 2015/16, a total of 640 ha of forest land had been handed
over to 22 different industrial enterprises as leasehold forests while
133,685 ha forest land is being conserved and managed in the form of
eight (8) protected areas. Likewise, 36 forests covering 2,056 ha area
comprising traditional religious temples, monasteries have been handed
over as a religious forest. Similarly, a total of 2,360 hectares of forests
belonging to 2,458 individuals, after their registrations as private forests,
are being conserved and managed accordingly.

140
Table 8 (s) : Area of National Parks and Wildlife Reserve and Other Details
Name Number Area/Remarks
National Parks 11 11,178.63 Sq. Km
Wildlife Reserve 2 802.39 Sq. Km
Hunting Reserve 1 1,235 Sq. Km
Protected Area 6 15,435.95 Sq.Km
Buffer Zone 13 5,687.78 Sq. Km
Total Area of Protected Area 3419.75 Sq. Km( 23.39% of Nepal’s Total Land Area)
Snow Leapard, Peacock and Tiger (Permitted) Rhino
Species being Conserved as per prepared
(Undrer Review),Red Panda, Pangolin (Salak), Kalij
conservation plan
Pheasant (Under approval process)
Buffer Zone Community Forest 476 138,184.1 Ha
Household Involved in Buffer Zone 64,587
Community Forest
Buffer Zone Leasehold Forest 63
Burffer Zone Leasehold Forest Area (Ha) 257.16 Ha
Sourcre: Department of National Park and WildLife Conservation

8.62 By the end of FY 2015/16, a total of 140,239 ha forest land has been
used for provisions including development of hydroelectricity, tourism
promotion, plantation, herbal farming, industrial development,
establishment of government offices, hospitals, schools, memorial
academies, management of freed bonded laborers and squatters, military
and police, social services, and physical infrastructures among others.

8.63 As per the National Park and Wildlife Conservation Act 1972, 11
national parks, two wildlife reserves, one hunting reserve, and six
protected areas and 13 buffer zones have been declared where forest,
wildlife and environment protection works are being carried out. Forest
conservation area covers 23.29 percent of total land area which is
approximately 34,420 sq. km. Of this, 476 buffer zone community forests
covering 138,184 ha have benefited 64,587 households. Similarly, 257
ha of land under 63 leasehold forests has also been conserved.

8.64 Species protection Plan has been prepared and rare and endangered
wildlife including snow leopard, peacock, rhino, red panda, Pangolin
(salak), Kalij pheasant are being protected. While looking at the number
of wildlife those of rhinos and ghariyal crocodile have slightly increased
in first eight months of the current fiscal year than in the previous fiscal
year 2015/16, while there has been no significant difference in the
numbers of other wild animals. Of the 118 contingency systems installed
ranging from mountain plateau to Terai plains, 80 of them are in
protected areas. Nepal’s conservation campaign beginning from
protecting sub-species passing through situational system to buffer zone
level public participation.

141
Table 8 (t) : Number of Major Wildlife Species
Major Wildlife 2015/16 2016/17
Tiger 198 198
Rhino 534 645
Elephant 105-145 110-150
Arna (Wild Buffalo) 432 432
Blackbuck (Krishna Sagar) 300-350 300-350
Gaurigai - 473
Snow Leopard 300-350 300-350
!2 Horned Deer (Swamp Deer) 2105 2406
Ghariyal (Crocodile) 134 124
Sourcre: Department of National Park and WildLife Conservation

8.65 Conservation area is considered as a prime destination of tourist


attraction in Nepal. The number of tourist visiting conservation areas
increased by 37 percent to 389,223 in fiscal year 2015/16 from 245,910
of fiscal year 2009/10. Likewise, revenue generated from conservation
area has increased by 3.7 folds to Rs. 350,230,000 in fiscal year 2015/16
as compared to the revenue of Rs. 94,557,000 of fiscal year 2009/10. The
number of tourist who visited conservation area during the first eight
months of current fiscal year stood at 279,019 through which revenueof
Rs. 279,151,000 was mobilized. Revenue mobilization will also increase
with the increased number of tourist arrival.
Table 8 (u) : Number of Tourist Visiting Protected Area and Revenue Earned
Number of Visitors Revenue Earned from Projected Area
Fiscal Year
Foreign/Domestic) (In Rs. 000)
2005/06 245910 94557
2006/07 291040 117898
2007/08 349195 135428
2008/09 381789 140383
2009/10 455237 248504
2011/10 502092 186974
2012/13 510205 471338
2013/14 558577 530852
2014/15 517095 538710
2015/16 389223 350203
2016/17* 279019 279151
Sourcre: Department of National Park and WildLife Conservation
*First Eght Months

8.66 Tasks have been carried out for promoting and protecting Nepal’s key
watershed areas thereby reducing pressure of soil erosion, flood and
landslides, and maintaining situational balance to increase soil fertility
and providing support to the conservation of development infrastructures.

142
Soil and watershed conservation program generated employment for
nearly 234 thousand labours in FY 2015/16.

8.67 Sources of water in Nepal's mountain region are drying up due to


changes in water cycle and rainfall pattern while the amount of water
available from many of the sources have reduced as well due to the
impact of climate change. To address this problem Climate Change
Adaptation project has been implemented in the existing 108 VDCs of
six districts ( Dadeldhura, Doti, Baitadi, Accham, Bajura, and Bajhang)
covering lower western Seti and Budhiganga watershed areas on local
peoples’ participation with a view to conserve water resources including
river basins and managing integrated watershed of those sources by
recharging them through rainwater. This project has benefited 15,618
households.

8.68 Identification of Nepal's flora, their management as well as in-situ and


ex-situ conservation, studies, researches and documentation works are
continuing. Under this, 163,000 herbarium samples of 5,077 plant
species have been conserved and regularly managed at National
Herbarium and Botanical Laboratory while digitization of 15,000
herbarium samples and electronic database of ,8940 herbarium samples
have been prepared. In addition, mounting of 23,307 herbarium samples
have been accomplished subsequent to their labeling. By the end of
2015/16, tissue culture technology for 116 plant species has been
developed while in-situ and ex-situ conservation of 30 endangered and
rare species is being carried out.
Table 8 (v) : Land and Watershed Management
Number of Sub-Wateshed Areas with Prepared Workplan 457
Gully/Soil Erosion Conservation 5762
River/Stream Banks protected through Bio-Engineering (Km) 4475.6
Woter Source Protected 3346
Conserved Ponds/Lakes Protected 2122
Agriculture/Forest Friendly Farmland Protected(Ha) 4523.61
Devastated Land Rehabilitated (Ha) 15442.8
Roadside Cut Slopes Protected from Bio-Engineering (Km) 568.15
Irrigation Canal Protected (Km) 1809.9
Household Number for Income Oriented Conservation Program for Poor 33115
Conservation Education Campaign Organizations 3555
Wetlands Conserved 18
Sourcre: Department of National Park and WildLife Conservation

143
8.69 The number of domestic and foreign tourists visiting National Botanical
Garden has increased by 37 percent and reached 309,046 in FY 2015/16
as compared to that of FY 2009/10 . Likewise, revenue collected through
such tourists has grown by four folds reaching Rs. 1,761,000 during the
same period. If such gardens could be managed properly, scientific
researches and exploration could be carried out while the public would
find appropriate place for recreational activities whereby state could
generate significant amount of revenue.
Table 8 (w) : Number of Tourist (Domestic/International) Visting National
Botanical Garden
Number of Tourist
Fiscal Year Revenue Earned (In Rs. ,000)
Domestic International Total
2008/09 221648 2638 224286 3019
2009/10 235933 3214 239147 3241
2011/10 244569 2270 247840 3334
2012/13 263357 3488 266845 3609
2013/14 273948 1760 277708 3741
2014/15 287137 3435 290572 9972
2015/16 306147 2899 309046 11761
2016/17* 235264 2420 237684 8400
Source: National Botanical Garden, Godawari, 2016
*Until first eight months

8.70 Forest sector’s revenue is generated mainly from the production and sale
of forest products (firewood, timber, herb etc.) and entry fees collected
from tourists visiting conservation areas. The revenue collected in FY
2015/16 was Rs. 708.24 million which was close to that of Rs. 697.29
million collected in FY 2009/10. However, while looking at the revenue
trend during this period, revenue collection had declined in FY 2010/11
and FY 2014/15 as compared to their preceding years while such
collection registered growth of 30.1 percent reaching Rs. 1395.72 million
in FY 2012/13 as compared to its preceding fiscal year 2011/12.
Likewise, the revenue generated in the first eight months of the current
fiscal year stood at Rs. 461.11 million.

Table 8 (x) :Total Revenue Earned through Forest Sector (In Rs. 000)
Fiscal Year Revenue
2008/09 697296
2009/10 361497
2011/10 1072801
2012/13 1395719
2013/14 1182167
2014/15 536100
2015/16 708240
2016/17* 461117
Source: Ministry of Forest and Soil Conservation *First eight months

144
Land Reform and Management

8.71 Sustainable use of land is a must as this has been one of the major means
of production. Easy availability of land for the construction of
infrastructure required to expand economic activities, land measurement
and mapping, management of geographical information, scientific
documentation, controlling of encroachment of public and fallow lands,
protection of people’s fixed assets and land usage among others are the
critical issues of land management.

8.72 In the context of land management, based on geographical structure,


nature and capacity, tasks such as classification of land, formulation of
land-use plan and preparation of land use maps, developing electronic
system for paper based documents, rehabilitation of freed bonded
laborers and freed land tillers (Haliya), formation of housing
management commission for managing organized settlements by
distributing land use certificates on the basis of new concept have carried
out.

8.73 By the end of FY 2015/16, land-use map and data were prepared in all 75
districts for organized land-use. Likewise, digital data was updated at
Land Revenue Offices in 35 districts. Works such as Village block land
measurement survey of 1,832 ha of land, re-survey on 1,898 ha and
digital survey on 777 ha were completed. Population census atlas 2011
has been published. In first eight months of current fiscal year 2016/17,
preparation of data on VDC/municipal level land-use map are in the final
stage in the existing 825 VDCs and municipalities. Similarly, the task of
village block survey on 633 ha and re-survey on 429 ha and digital
measurement on 354 ha has been accomplished in the same period.

8.74 So far, 26,532 families of freed bonded laborers of the total 27,570 have
been resettled. Likewise, in the process of rehabilitating families of freed
land tillers, grants were provided to procure land for 673 families,
construct homes for 425 families and repair homes of 647 such families.
Similarly, skill oriented trainings have been imparted to 19,531 freed
bonded laborers and 1,142 freed land tillers.

8.75 Construction of five Land Revenue Office buildings and 30 such


buildings of Land Measurement Office has been completed in FY
2015/16. Revival of 4,800 maps and field books remained at various
land measurement offices has been done. Land Reform Information

145
Management System been executed in nine Land Revenue Offices so as
to make land administration related tasks transparent. Revenue of Rs.
17244.0 million was collected in FY 2015/16 through land management
service delivery while such revenue of Rs. 17.24 billion has been
collected during the first eight months of the current fiscal year.

Challenges

8.76 It is a challenging task to manage and organize settlements by


disintegrating irrigable agricultural lands in areas where large irrigation
infrastructures are being built.

8.77 Constructing infrastructures such as roads, electricity, food reservoirs and


cold storage required for the development of agriculture sector and
making available of agricultural inputs like fertilizers, improved seeds
and seedlings, irrigation, agricultural credits to boost agricultural
productivity have remained a challenge.

8.78 Aside from meeting basic needs from geographically and biologically
diverse forest resources, developing such resources that would expand
the size of economy and create employment opportunities upon linking
them with industries is a challenging task.

8.79 Addressing problems such as haphazard usage of land, encroachment of


public land, difficulty in the availability of land for public use, illogical
land use disputes etc through land-use policy is a daunting challenge.

8.80 There remains a challenge to develop local entities as a center of


economic activities by exploring the production potential on the basis of
the availability of geographic uniqueness, comparative advantage and
means and resources.

8.81 It is a daunting task to expand cooperative sector up to village level by


making this sector more organized, transparent and effective thereby
making it dedicated towards the task of collective interests, productive
and developing it in the form of social capital.

146
9. Industry, Commerce, Supply and Tourism

Industry, commerce, supply and tourism sectors are the keystones of


economic development. Development and expansion of these sectors
contribute to creating employment, value added of the goods and services,
import substitution and export promotion. Roles of these sectors are essential
for achieving sustainable development goal thereby graduating the country
to the status of middle income country by 2030. Despite the possibility of
having higher contribution of these sectors to the national economy, the
result could not be achieved as expected. In the context of managing
federalism, emphasis needs to be given to sustainable and overall
development of industry, commerce, supply, and tourism sectors by involving
public, private and cooperatives sectors.

Industry Sector
9.1 Industry plays pivotal role in reducing trade deficit by transforming
import based economy to production and export oriented economy. This
sector has helped utilize local resources, means and technologies make
goods and services available and create employment opportunities. The
contribution of these sectors to GDP that stood at 6.35 percent in FY
2012/13 continued to fall thereafter and rested at 5.72 percent in FY
2015/16. Such contribution is expected to remain at 5.67 percent by the
end of current fiscal year 2016/17. The industry sector shrank in FY
2015/16 due to the impacts of earthquake and border obstruction. The
gross price increment of this sector is likely to register growth of 9.7
percent in FY 2016/17 as compared to that of previous fiscal year as
production increased as a result of adequate supply of fuel, energy and
raw materials.
Chart 9 (a) : Contribution of Industry to GDP

Source: Central Bureau of Statistics


*Estimated

147
9.2 Youth force is compelled to leave the country for foreign employment
for failing to create employment at home. In such a situation, it is
imperative to emphasize on the development and expansion of industry
sector in order to achieve the goal of economic prosperity by creating
enabling environment to establish and operate domestic industries.
9.3 For the development of industry sector, industrial policy 2010, foreign
investment policy 2014 and national intellectual property policy 2016
among other polices have brought into implementation. Likewise,
Industrial Entreprenerial Act,2016, Special Economic Zone Act,2016
have been enacted. Company Act, 2008 has been amended while foreign
investment and technology transfer act is undergoing revision process to
make it time relevant.
9.4 While analyzing the capital investment trend of licensed industries
operating since last ten years, there has been its growing trend until FY
2013/14 since FY 2009/2010. A capital investment of Rs. 84427.0
million was made on 279 industries in FY 2011/12 while this grew to Rs.
119.60 billion in FY 2012/13 with the increased number of 446
industries. The capital investment on 466 industries in FY 2013/14 went
up by 142 percent reaching Rs. 289.38 billion. The capital investment in
its subsequent years could not grow in the same ratio.
Table 9 (a) :Licensed Industries for Operation in Last Ten Years
Total Capital ( In Recurrent
No of Fixed Capital Number of
Fiscal Year Rs. Million) Capital In Rs.
Industries In Rs. Million Employment
Million
2006/07 177 8124 5973 2151 9232
2007/08 227 20126 15510 4616 12844
2008/09 301 26961 22527 4434 20359
2009/10 256 39193 34321 4872 14228
2010/11 242 90416 77913 12503 13727
2011/12 279 84427 79362 5065 16960
2012/13 446 119601 107983 11618 28535
2013/14 371 289308 276699 12609 21538
2014/15 466 138751 128703 10048 22785
2015/16 410 122007 104918 17089 18960
2016/17* 309 104536 95278 9258 14264
Total 3484 1043450 949187 94263 193432
Source: Department of Industry
*First eight months

148
Chart 9 (b) : Investment on Industries in Last Ten Years

Source: Department of Industry


*First eight months

9.5 By the first eight months of the current fiscal year 2016/17, a total of
6,834 industries have been registered under Department of Industry. As
per industry genre, the production oriented industries topped the list of
industries by its number with 2713 (39.7 percent) followed by service
oriented industries with 1,907 (27.9 percent) and tourism industry with
1,406(20.6 percent), agro-forestry industries with 413 (6.1 percent) while
that of energy oriented industries stood at 283 (4.1 percent). Likewise,
the number of mine industries has stood at 63(0.9 percent) and that of
construction industries accounted for 49 (0.7 percent).
Table 9 (b) : Lincense Industries for Operation
Recurrent
No. of Total Capital Fixed Capital
Type Capital Employment
Industries
In Rs. Million In Rs. Million In Rs. Million
Agro-Forestry
Based
413 20524 17503 3021 35122
Construction 49 43477 42183 1294 3384
Energy Based 283 674126 658007 16119 28336
Production Based 2713 293890 226745 67145 302814
Mining 63 4438 3896 542 6459
Service Oriented 1907 136428 89265 47163 117863
Tourism Orinted 1406 101306 91038 10268 61163
Total 6834 1274189 1128637 145552 536181
Source: Department of Industry

149
Chart 9 (c) : Licensed Industries for Operation

Source: Department of Industry

9.6 Based on capital investment towards registered industries, 52.9 percent


of the total capital has been invested towards energy industry in the first
eight months of current fiscal year 2016/17. Likewise, production
oriented industries come second with 23.1 percent followed by service
industry with 10.7 percent, tourism industry with 8 percent and
construction industry with 3.4 percent, agro-forestry industry with 1.6
percent and mine industries with 0.3 percent in terms of capital
investment.

Foreign Investment
9.7 Foreign investment is necessary for overall development of the country
by importing modern technology together with managerial technical
skills for development and extension of infrastructure while meeting the
deficiency in capital formation resulting from low domestic savings.
Ample opportunities for foreign investments in the areas of hydro-
electricity, tourism, services, physical infrastructure, and production and
processing of herbs exist in Nepal with availability of abundant natural
resources, bio-diversity and cultural heritages. It is necessary to create
foreign investment environment since more investment is required for
development and construction works particularly in federal governance
structure.
9.8 The statistics of last ten years reveals that foreign investment of Rs.
3,186 million was approved for 188 industries in FY 2006/07 while such
investment of Rs. 67455.0 million was sanctioned for 370 industries in
150
FY 2014/15. Foreign investment continued to decline in FY 2015/16
where only 15,232.0 million was approved to make such investment on
347 industries. In the first eight months of the current fiscal year
2016/17, Rs. 10151.0 has been sanctioned for 213 industries.
Table 9 (c) : Foreign Investment on Industries in Last Ten Years
Total Fixed Total Foreign
Fiscal No. of Registered Capital Capital Investment
Employment
Year Industries In Rs. In Rs.
In Rs. Million
Million Million
2063/64 188 3426 2651 3186 7389
2064/65 213 20406 16898 9813 10709
2065/66 231 9418 7530 6255 11108
2066/67 171 13954 14988 9100 7848
2067/68 210 11253 9377 10053 10902
2068/69 226 11910 10736 7138 9035
2069/70 317 51991 41046 19819 16569
2070/71 307 40737 35049 20133 11790
2071/72 370 81370 77437 67455 13167
2072/73 347 20499 14123 15232 11649
2073/74* 213 11519 8176 10151 6377
Total 2793 276483 238011 178335 116543
Source: Department of Industry
*Until first eight months

Chart 9 (d) : Foreign Investment on Industries in Last Ten Years

Source: Department of Industry


*Until first eight months

151
9.9 A total of 3,905 industries from 90 different countries have been
registered by the first eight months of current fiscal year 2016/17
securing approval for foreign investment of Rs. 208.04 billion. Through
this, a total of 224,286 individuals are expected to receive employment.
By the first eight months of the current fiscal year, India, on the basis of
project cost, comes first with its shares of 39.12 percent to the total
foreign investment among the licensed industries operating with foreign
investment, while Chine stood second to India with 16.23 percent
followed by Hong Kong China with 13.06 percent. The investment of
South Korea shared 5.28 percent to the total foreign investment followed
by Ireland with 3.64 percent and UK with 2.5 percent. Likewise,
Mauritius shared 1.59 percent, Singapore 1.39 percent and Switzerland
shared 1.38 percent The share of other 80 countries to the total foreign
investment stood at 11.92 percent.
Table 9 (d) : Foreign Investment by Country
No. of Foreign Investment Cost Based
S.N Country Employment
Industries In Rs. Million Percent
1 India 662 81312 39.12 66027
2 China 1093 33768 16.23 51324
3 Hong Kong China 33 27188 13.06 4651
4 South Korea 312 10999 5.28 10593
5 British Iceland 14 7967 3.83 2054
6 USA 344 7581 3.64 16869
7 UK 160 5330 2.56 10549
8 Mauritius 9 3315 1.59 952
9 Singapore 38 2896 1.39 3035
10 Switzerland 55 2891 1.38 1475
Other 80 Countries 1185 24796 11.92 56757
Total 90 Countries 3905 208043 100 224286
Source: Department of Industry

Chart 9 (e) : Share of Foreign Investment by Country

Source: Department of Industry

152
9.10 By number of industries, China topped the table with 1,093 followed by
India with 662 and USA with 344 industries.
Nepal’s Position in Doing Business

9.11 Nepal ranks 107th among 109 countries on Doing Business, 2017 which
measures the environment position for doing industry businesses. Nepal
scored 58.88 percent. Nepal that ranked 100th in 2016 with 59.36 points
slipped by 7th position in 2017 and stood second among the SAARC
nations. The time and cost required for registration and operation of
industry business in Nepal need to be reduced further while enhancing
the competency and quality to facilitate in doing such businesses. In
addition to this, investment environment needs to be improved through
single window service.

Table 9 (e) : Nepal’s Poistion in Doing Business among SAARC Nations


Position/Rank among 190
S.No. Country Score
Countries
1 Bhutan 73 65.37
2 Nepal 107 58.88
3 Sri Lanka 110 58.79
4 India 130 55.27
5 Maldives 135 53.94
6 Pakistan 144 51.77
7 Bangladesh 176 40.84
8 Afganisthan 183 38.1
Source : Doing Business, 2017

Industrial Intellectual Property

9.12 Protection and promotion of intellectual property is very much necessary


for creating business friendly environment and enhancing foreign
investment. Similarly, it is imperative to protect such property in order to
improve quality and protect the interest of consumers through the
restriction of duplicate productions. Intellectual property policy 2016 has
been enforced. By the first eight months of the current fiscal year
2016/17, a total of 45,323 industrial intellectual property has been
registered including 45,111 units of trademark, 72 units of patent and 140
units of design.

153
Table 9 (f) : Industrial Intellectual Property Registration (In Number)
Description 2014/15# 2015/16 2016/17* Total
Denmark 40918 2398 1795 45111
Patent 72 0 0 72
Design 116 11 13 140
Total 41106 2409 1808 45323
Source: Department of Industry
#
Total Until 2015
*
First eight months

Bilateral Investment Promotion and Protection Agreement (BIPPA)


9.13 Of the total 90 countries to invest in industrial sector, BIPPA has been
signed with 6 countries including France, Germany, UK, Mauritius,
Finland and India. These countries have contributed almost 44 percent to
total foreign investment.
Table 9 (g) :BIPPA Signed Countries
Total Foreign
S.N. Countries Date of Agreement Project No. Investment ( In
Rs. Million)
1 France May 2, 1983 81 545
2 Germany October 20, 1986 102 1310
3 UK March 2,1993 160 5330
4 Mauritius August 3, 1999 9 3315
5 Finland February 3, 2009 10 336
6 India October 21, 2011 662 81312
Total 1024 92148
Source: Ministry of Industry

Industrial Estates
9.14 Industrial estate has been making available of basic infrastructures that
are essential for the establishment of industries including lands, industrial
buildings, roads, electricity, water and sewerage among others in an
integrated manner.This has contributed to the promotion and
development of industries thereby contributing to import substitution and
export promotion, mobilization of local skills and resources and creating
employment opportunities. Of the total 11 industrial estates established
including Balaju, Hetauda, Nepalgunj, Dharan, Pokhara, Butwal,
Bhaktapur, Birendranagar,Gajendra Narayansingh and Dhankutta, 10 of
them are in operation except that of Dhankutta. Currently, the
operational industrial estates have covered 300.51 ha.of land. Of the 673
industries established, 563 are in operation. Such industries have
provided employment to 17,500 individuals consuming 27,990 KVA of
electricity.
154
9.15 land acquisition and construction of infrastructures works have been
carried forward with priority as per the policy to establish industrial
estate in at least 677 ha in all seven (7) provinces. Damak of Jhapa under
province-1, Murtia of Sarlahi under province-2, Madhurdhap of
Makwanpur and Shaktikhor of Chitwan under province-3, Chyanglitaar
of Gorkha under province- 4, Motipur of Rupandehi, Nauwasta of Banke,
Dharna of Dang and Laxmipur under province-5, Satakhani of Surkhet
under province-6 and Daiji of Kanchanpur under province-7 have been
decided as the places for new industrial estates where process for
acquiring land is underway.

Cottage and Small Scale Industries


9.16 Establishment, development and extension of cottage and small scale
industries have provided support to creating employment opportunity and
raising people’s living standard. Department of Cottage and Small Scale
Industries and Cottage and Small Scale Industries Development
Committee have been carrying out various vocational and promotional
activities for raising the standards of industry business and enhancement
of entrepreneurial knowledge and skill and enterprise development.
9.17 As on the first eight months of the current fiscal year 2016/17, at total of
13,238 cottage and small scale industries have been registered under the
Department of Cottage and Small Scale Industries in 27 districts which
have generated employment for 42,965 individuals. Likewise, under
Cottage and Small Scale Industries Development Committee, a total of
6,484 industries have been registered in 48 districts providing
employment to 21,760 individuals. By the first eight months of the
current fiscal year , total of 270,988 cottage and small scale industries are
registered across the country under such department and the committee.
9.18 Cottage and Small Scale Industries Training Center imparted training to
1,056 individuals on various headings including food processing, bakery,
beautician, mobile phone repair, paper production in FY 2015/16.
Entrepreneurial training was provided to 8,559 individuals in the first
eight month of the current fiscal year.

Micro-Enterprise
9.19 Micro-enterprise development program for poverty alleviation are being
conducted in 69 districts with a view to internalizing the activities of
micro-enterprise development program. A total of 15,705 new micro-

155
entrepreneurs were generated with the upgradation of 16,697 such
entrepreneurs h through this program in FY 2015/16. Similarly, this
program produced 4,098 new micro-entrepreneurs and upgraded 3,925
such entrepreneurs in the first eight months of current fiscal year
2016/17. This program has provided support to poverty alleviation
initiatives by creating employment at local level through the mobilization
of local resources.

Company Registration
9.20 Online service has been initiated so as to make the administrative
functions like company registration, updating and dissolution more
simple, easy and scientific. Company Acts have been amended
considering the public complaints that company registration task is easy
while that of dissolution is complex. Such amendment in the Acts has
made both the registration and dissolution processes easy. By the first
eight months of the current fiscal year 2016/17, a total of 166,694
companies have been registered. Of these registered companies, public
limited company accounted for 1,402, private limited company stood at
163,783, not-for-profit organizations accounted for 1,354 while 155 of
them are foreign companies.
Table 9 (h) : Company Registration Status
Total Until
S.N Company 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17* Total

1 Public Limited 1204 37 27 31 51 52 1402


2 Private Limited 103371 10550 10052 12371 14550 12889 163783
3 Not for profit 413 83 94 200 289 275 1354
4 Forieng Companies 41 18 21 24 23 28 155
Total 105029 10688 10194 12626 14921 13244 166694
Source: Office of Company Registrar
* First eight months

Mines and Geology


9.21 Under geo-scientific survey and research works, first phase of geological
survey on Chure hill, the entire part of Mahabharat range and high
mountains has been accomplished while mapping of these areas is being
carried out in its second phase
9.22 Limestone industry has been established in Surkhet, Dang, Makwanpur,
Udayapur and Dhankutta which is in operation. About 1 billion MT of
limestone has been explored in Palpa, Arghakhachi, Salyan, Baitadi,
Sindhuli, Lalitpur, Dhading and Shyanja districts. As a result, 14 cement
industries with about 8,500 ton per day (TPD) capacity have been

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established at government and private levels. Additional 9 small and
large cement industries are under construction.
9.23 Exploration work of iron ore is being carried out in Dhauwadi of
Nawalparasi. Iron deposit of around 100 million MT is estimated if
quality iron that preliminary exploration has estimated comes out true.
9.24 Natural gas mine of 316.0 million cubic meters has been explored in
Kathmandu valley while coal mine of 5 million MT has been discovered
in Dang,Rolpa, Palpa and Arghakhachi districts. Exploration works of
uranium mines at different phases are being carried out in Makawanpur,
Baitadi and Mustang districts. Recent studies and researches reveal that
these sites are promising for uranium mines.
9.25 During the first eight months of the current fiscal year, 268 exploration
licenses on 24 minerals and 123 excavation licenses have been issued.
9.26 Round the clock observation and data collection works on earthquake are
being carried out through 21 seismic stations and 29 GPS stations that are
established to conduct study on Nepal’s mountain plateau. Installation
of 5 accelerometers have been installed to carryout earthquake related
researches on the mountain plateaus where data are being collected and
analyzed through regular observation while information are being
received on the imminence of earthquake, possible impacts, recurrence
and mountain structure based on these analyses.
9.27 Study on earthquake induced landslide has been conducted in FY
2015/16 through which settlements in 127 places of 14 districts were
identified vulnerable from landslide perspective. Experimentation and
production of natural gas are being carried out in Imadol area.
Environmental monitoring and inspection works on 70 mines including
those of stones, gravel and sand have been completed. In the first eight
months of the current fiscal year 2016/17, study on landslide in 7
districts, agreements for 350 meter drilling work for the experimentation
and production of natural gas at Tcku area have been completed.
Similarly, environmental monitoring and inspection works on 50 mines
including those of boulders, gravels and sand.

Quality Standard and Measurement


9.28 In first eight months of current fiscal year 2016/17, eight (8) national
standards have been prepared while protecting the consumers’ rights on
weights and measurements. Permissions have been issued to 15

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industries for using Nepal Standard mark. The surveillance audit of 10
private laboratories has been carried out complying with Nepal
Laboratory Standard and ISO 17025:2005. Similarly, 1,639 firms have
been monitored and inspected. Licenses for measurement, measuring and
weighing equipment have been granted to 7,263 businessmen while
verification of weighing and measuring equipment of 16,562 businesses
have been conducted. Likewise, inspection of 2,209 petrol pumps have
been completed.
Industrial Infrastructure
9.29 Of the ongoing cement industry projects under this program which are in
process of operation have been provided priority where installation of
transmission line together with the construction of sub-station and access
road have been completed. Construction work on transmission line, sub-
station for 10 cement industries that would have share investment of the
government and access road for 24 mining sites are underway.

Special Economic Zone (SEZ)


9.30 The concept of special economic zone has been brought into
implementation with a view to propel industrialization process forward
by attracting both domestic and foreign investments for the development
and promotion of export based industries. Special Economic Zone
Acts,2016 has come into effect for the establishment, operation and
management of SEZ. Special Economic Zone Corporation has been
established with objective managing SEZ, developing infrastructure and
monitoring the established industries and r render services to such
industries using one-door policy.
9.31 Nepal has made an announcement to establish Special Economic Zones
(SEZs) in 15 different locations. With a view to involve them
provincially, program has been extended to Biratnagar representing
province-.1, Simara in province -.2, Panchkhal in province-3, Gorkha in
province 4, Bhairahawa in provine-5, Jumla in province-6 and Dhangadi
in province-7 in addition to Nuwakot, Kapilbastu, Banke, Jhapa,
Dhanusha, Rautahat, Siraha and Kailali. Bhairaha SEZ is in operation.
Construction of Simara garment processing zone and Panchkhal SEZ is
in progress. Engineering design, feasibility study, pre-visibility study like
works of other SEZs are being carried out. Operation of SEZs are likely
to provide support to creating employment opportunities thereby

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attracting domestic and foreign investments and reducing trade deficit
through increased export of goods and services in international markets.

Central Jail Factory


9.32 A total of 3,277 inmates including 274 female and 3,003 male were
imparted trainings by Central Jail Factory in FY 2015/16 with a view to
increase the level of income of those inmates by enhancing their
capacity. Through this program, a total of 45,799 meters of cotton fabrics
worth Rs. 3.951 million was produced in FY 2015/16. Likewise, 52815
meter of such fabrics equivalent to Rs. 4.571 million has been produced
in the first eight months of the current fiscal year

Commerce Sector
9.33 There has been easy supply in the production of goods and services
through the development of commerce sector. Income and employment
have been created through the export of domestically produced goods
and services thereby providing support to country’s economic
development. The contribution of wholesale and retail trades to GDP
remained at 14.10 percent in FY 2015/16 while such contribution to GDP
is expected to stand at 13.52 percent by the end of current fiscal year.
9.34 Commerce Policy, 2015 and Nepal Integrated Trade Strategy, 2016 have
been enforced with the objective of developing and expanding goods
and services by promoting exports through the development and
expansion of commerce sector while identifying areas of comparative
and competitive advantages. Nepal has received an opportunity to
acquire access and growth in international trade by associating with
WTO, South Asian Free Trade Agreement (SAFTA) and Bay of Bengal
Initiative for Multisectoral Technical and Economic Cooperation
(BIMSTEC).
9.35 Export trade of Nepal has not been able to achieve success to the desired
extent despite availability of plethora of opportunities and potential for
promotion and extension of domestic and foreign trades. Imports have
continued to grow for failing to increase domestic production to replace
imports. Price of exportable goods seems weaker mainly due to the
exports in the form of raw materials, primary, and semi-processed goods.
Trade deficit have been continually growing every year owing to higher
imports of agro-based products and luxury goods.

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9.36 In first eight months of the current fiscal year, total goods trade deficit
reached Rs. 580.34 billion with exports totaling Rs. 48.22 billion and
imports of Rs 628.56 billion. The ratio of export to import has been
1:13. On commodity basis, the exports like that of juice, oil cake, rosin,
noodles, wire have increased while that of goods like cardamom,
polyester, yarn, ready-made garments, woolen carpets have decreased.
Likewise, imports of petroleum products, vehicles and their accessories,
MS billets, cement among other goods have increased whereas, that of
chemical fertilizers, medicines, cold roll, sheet-in-coil, raw silk, and
readymade garments have decreased.
9.37 Nepal-India Trade and Commerce Treaty, 2009, which is an important
mechanism for the operation, regulation and facilitation of bilateral trade
between Nepal and India, has been renewed for next (7) year beginning
from October 27, 2016. The protocol to bring trade facilitation agreement
of World Trade Organization (WTO) into implementation has been
endorsed by legislative parliament. Nepal has started using
Vishakapatnam port. Nepal-China transit transport agreement has been
signed. Compensation against land to be developed for dry port at
Rasuwagadhi has been distributed while pavement at dry port of
Bhairahawa is over. Trade and Export Promotion Center has brought
Nepal Trade Information Portal (NTIP) into operation.
9.38 National and regional level 20 trade fairs, on locally produced goods
organized for encouraging and marketizing local products, have been
completed. Publicity of Nepali products at international market has been
done for their export promotion by participating in eight (8) major
destinations.
9.39 On private firm front, 34,616 firms were newly registered, 15,758 were
renewed, 11,204 were revised while 3,340 such firms were dissolved in
FY 2015/16. Towards partnership firm, 443 firms were newly registered,
667 were renewed, 380 were revised while 135 such firms went for
dissolution.
9.40 In first eight months of the current fiscal year 2016/17, the number of
newly registered private firms stood at 26,258, renewed firms accounted
for 21,371, revised accounted for 11,473 while 2,070 went to dissolution.
Likewise, the number of newly registered partnership firms stood at 470,
renewed 569, amended 129 and dissolved 69. Of the total 450 thousand
firms with the applicability of Firm Management Information System

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(FMIS), documents of about 150 thousand such firms have been
digitized.
9.41 Financial and technical supports are provided to the districts that are
regarded potential for producing good of comparative advantage such as
ginger, cardamom, coffee, hug plum (lapsi), hemp (allo), herbal products,
pashmina, carpet that would help in the development of goods and
export promotion.

Supply Sector
9.42 Supply arrangement has played important role in making the people's life
comfortable and running various components of the economy by
availing goods and services, storage, and distribution facilities; and
protecting consumers' rights and interests.
9.43 There is an arrangement of sales and distribution of food grains through
Nepal Food Corporation with a view to supply food to the people of low
food producing far-flung hilly districts in an easy and convenient manner
and restrict price hike on food items even in other accessible districts
including those of Kathmandu valley. In FY 2015/16, Nepal Food
Corporation has supplied 16,260 MT of food to remote districts.
Likewise, 14,983 MT of food stock has been stored at buffer stock of
National Food Security Warehouse while 8,000 MT of food stuff is
stored at SAARC Food Security Bank. Local food stuffs (bean,
buckwheat) of Karnali zone have been purchased and encouraged local
production.
9.44 During the first eight months of the current fiscal year, 10,212 MT of
food stuffs has been supplied to remote districts. National Food Security
Warehouse (buffer stock) has stored 21,061 MT of food items while
8,000 MT of such stuff has been stored at SAARC Food Security Bank.
Local food products (bean, buckwheat etc) of 84 MT have been
purchased.
9.45 Under goiter control program, a total of 98,556 quintals of salt was
supplied to 13 remote and 9 partial districts in FY 2015/16 against the
supply of 58,400 quintals during the first eight months of the current
fiscal year. This has provided relief to the people of far-flung districts
and helped control the iodine deficiency disorders.
9.46 In the first eight months of the current fiscal year 2016/17, nation-wide
market monitoring was conducted for 2,595 times in order to control

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black marketing and artificial scarcity of daily consumable goods. This
has helped control price, black marketing and carteling.
9.47 Under Nepal Oil Corporation (NOC), land procurement task in all seven
(7) provinces has been carried out for the construction of storage
reservoirs of petroleum products and LP Gas to meet their demand at
least for 90 days. Procurement of land in Jhapa of province no. 1,
Sarlahi of province no. 2, Chitwan of province no. 3 and Dhading of
province no. 4, Bhairahawa of province no. 5 and Kailali of province no.
7 has been initiated. Land proucurement task in Chitwan and Sarlahi has
been completed in the first eight months of current fiscal year 2016/17.
9.48 Import of petroleum products fell by 18 percent to Rs. 1,339,139 KL/MT
in FY 2015/16 from 1,628,543 kiloliter /MT that of FY 2014/15 owing to
obstruction in southern boarder of Nepal. In the first eight months of the
current fiscal year, a total of 1,356,082 kiloliter/MT has been imported.
Such import volume has increased in FY 2016/17 due to higher demand
of petroleum products as a result of expeditious reconstruction and
development works.

Tourism
9.49 Nepal is the major tourist destination in the world as it is known by its
unrivaled natural beauty, abundant bio-diversity, multiethnic,
multilingual, multi religious, and multi cultural identities. Tourism has
been one of the important sectors in service industry for economic
growth from the perspective of comparative and competitive advantages.
Diversification and expansion of tourism sector have enhanced people’s
livelihoods and employment opportunities thereby raising their living
standard.
9.50 Acquiring information on the actual impact of tourism sector to GDP is
getting tougher due to the absence of tourism satellite account. The
contribution of hotel and restaurant sector to GDP that stood at 2 percent
in FY 2015/16 is estimated to remain at 1.98 percent by the end of
current fiscal year 2016/17.
9.51 With a view to invite higher number of tourists in Nepal, various
programs were organized including ‘Visit Nepal 1998’; ‘Destination
Nepal Campaign’ in 2002 and 2003; ‘Visit Pokhara Year Campaign’ in
2007; ‘Nepal Tourism Year, 2011’; and Lumbini Visit Year in 2012.

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The number of tourist arrival has increased due to the impact of such
program.
9.52 National Tourism Strategic Plan has targeted to make 2,522,000 tourists
visit and create 898 thousand employments by 2025.
9.53 While observing the tourist arrival trend of last decade, the number of
tourist arrival except that of Indian tourists arrived via land totaled
383,926 in 2006 while this number rose to 753,002 in 2016. The number
of tourist arrival in 2015 had dropped by 32 percent due to the negative
impact that devastating earthquake and border obstruction rendered to
tourism activities. Its subsequent years saw gradual progress in tourism
sector. The number of tourist arrival that stood at 538,970 in 2015 grew
by 40 percent in 2016.
Table 9 (i) : Number of Tourist Arrival and Length of Stay
No. of Tourist Estimated Average
No. of No. of Tourist Arrival Annual Growth Rate
Year Arrival Using Air Length of Stay/ Tourist
Tourists via Land of Tourist Arrival
Route (In Days)
2006 383926 283819 100107 10.2 2.3
2007 526705 360713 165992 11.96 37.2
2008 500277 374661 125616 11.78 -5
2009 509956 379322 130634 11.32 1.9
2010 602867 448800 156067 12.67 18.21
2011 736215 545221 190994 13.12 22.1
2012 803092 598258 204834 12.87 9.08
2013 797616 594848 202768 12.51 -0.7
2014 790118 585981 204137 12.44 -0.94
2015 538970 407412 131558 12.8 -32
2016 753002 572563 180439 13.4 40
Source: Ministry of Culture, Tourism and Civil Aviation
Note: Above figures do not include Indian Tourists arrving via land

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Chart 9 (g) : Tourist Arrival

Source: Ministry of Culture, Tourism and Civil Aviation

9.54 While analyzing the number of tourist arrival by country, top five
countries with largest number of tourist arrival have been India (15.7%)
followed by China (13.8%), Sri Lanka (7.6%), USA (7%), and UK
(6.1%) in 2016. The share of tourists arrived from these countries is
more than 50 percent in the total number of tourist arrival. These figures
were 14 percent for India, 12 percent for China, 10 percent for USA, 8
percent for Sri Lanka and 6 percent for Thailand in 2015.
Chart 9 (h) : Countries with Most Number of Tourist Arrival in 2016

Source: Ministry of Culture, Tourism and Civil Aviation

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9.55 During 2016, the number of tourists arrived via land except those from
India stood at 180,439. Thus, 25 percent of the total tourist arrived via
land. Of the tourists arrived from land, 79 percent of them entered
through Bhairahawa (Belhia) boarder point. While analyzing the country-
wise number of tourist arrival in 2016 via land, top five countries with
largest number of tourist arrival have been Sri Lanka (31.2%) followed
by Thailand (16.1%), China (15.9%), Myanmar (14.7%) and Bangladesh
(7%).
9.56 Of the total number of tourists visiting Nepal during 2016 by purpose, 65
percent of them came for vacation/entertainment/travel. Likewise, 11
percent of them arrived for religious tour, 8.83 percent for
mountaineering and trekking, 3.23 percent for trade, 2.86 percent for
office visit, 1.7 percent for meeting/conference and the rest 7.41 percent
for other purposes. While analyzing tourist arrival statistics of last 10
years based on their travel purposes, more than two third of tourists have
been for vacation recreation/travel, trekking/mountaineering and
religious purposes.
Chart 9 (i) : Tourist Arrival by Purposes

Source: Ministry of Culture, Tourism and Civil Aviation

9.57 The number of domestic and international tourists visiting Lumbini in


2015 stood at 748,294 while this number registered steep growth of 72
percent and reached 1,285,680 in its subsequent year 2016. Of this,

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1,015,185 were Nepali, 134,269 were from India while the rest 136,253
were from other countries.
9.58 Nepal Academy of Tourism and Hotel Management (NATHM), which
was established with the objective of producing basic and skilled
workforce for tourism sector’s development, has been offering bachelor
degree program in hotel management and tourism and travel
management and master degree in hotel management. This institution has
generated a total of 77,712 skilled workforce by the end of the first eight
months of current fiscal year 2016/17 including 333 individuals from
academic courses and additional 1,528 individuals from trainings in first
eight months of the FY 2016/17.
9.59 The number of mountaineering expedition team that stood at 380 in 2015
went up to 691 in 2016. Likewise the number of mountaineers in 2016
declined to 3,406 from 4,003 of 2015. Likewise, Nepal government’s
royalty decreased by nearly 21 percent to Rs. 287,494,000 in 2016 as
compared to that of 2015.
9.60 Foreign currency equivalent to Rs. 41.765 billion was earned through
tourism sector in FY 2015/16. The ratio of this amount is 55.8 percent to
the total foreign currency earned through export of goods, 19.6 percent
to the total foreign currency earned through the export of goods and
services while that is 1.9 percent to GDP. Foreign currency equivalent to
Rs. 36.199 billion was earned through this sector in the first eight months
of current fiscal year 2016/17. This is 66.8 percent to the total foreign
currency earned through export of goods and 23.3 percent to the total
foreign currency earned through export of goods and services.
9.61 Of the hotel registered in classified by Department of Tourism, the
number of star hotels was 116 in FY 2015/16 while such number went
up to 120 by the first eight months of the current fiscal year. The number
of tourist standard hotels except those of star hotels including lodge and
resorts reached 985 by the first eight months of current fiscal year from
960 of previous fiscal year 2015/16. The number beds in star hotels
increased by nearly by 4 percent reaching 10,071 in the first eight months
of current fiscal year. This figure was 9,710 last year. Similarly, the
number of beds in tourist standard hotels, lodge and resorts except those
of star hotels has reached 28,171 by the first eight months of the current
fiscal year 2016/17.

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9.62 The number of casino operating recently reached five from three of last
year with additional two casinos registered during the first eight months
of current fiscal year. Similarly, three mini-casinos and one online
gambling are in operation.
9.63 The number of registered travel agencies that had stood at 2,768 in FY
2015/16 grew by 24 percent and reached 3,444 by the first eight months
of current fiscal year. Likewise, the number of registered trekking
agencies was 2,016 in FY 2015/16 while this rose to 2,367 with the
addition of 351 such agencies in the first eight months of current fiscal
year.
9.64 The number of registered rafting agencies that was 66 in FY 2015/16 has
gone up to 72 by the first eight months of current fiscal year. Likewise,
the number of registered tourist transport service provider has reached 72
by the first eight months of FY 2016/17 from 67 of last year.
9.65 In FY 2015/16, a total 3,507 tour guide licenses were issued while this
number grew to 3,717 by the first eight months of current fiscal year with
the increase of 6 percent. Similarly, 11,358 trekking guide licenses were
issued in FY 2015/16 which increased by 15 percent reaching a total of
13049 by the first eight months of FY 2016/17. Likewise, 187 river guide
licenses were distributed in FY 2015/16 while this number has gone up to
207 by the first eight months of current fiscal year 2016/17.

Challenges
9.66 Creating employment through the establishment of industries producing
industrial raw materials and readymade goods by maintaining forward
and backward linkage within the country itself is a daunting challenge.
9.67 Tasks of enhancing domestic production by developing industrial
infrastructure, maintaining harmonious labor relation, making energy
available, producing competitive and qualitative goods and creating
investment friendly environment to increase domestic and foreign
investments to the industry sector at desired level are with full of
challenges.
9.68 There remains a challenge to increase the volume of exportable goods
and services by enhancing the production and improving quality of goods
and services of comparative advantage and competitive capacity.

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9.69 Tasks of increasing trade volume of locally produced goods and reducing
import by enhancing domestic production and productivity while reaping
maximum benefits from country’s association with WTO and other
international organizations are equally challenging.
9.70 Task of reducing trading cost by revising trade related Agreements and
statutes after analyzing the cost that Nepal has to incur while
conducting international trades amid the new legal provision of goods
and service tax (GST) of the neighboring country India is a daunting
challenge.
9.71 Problem in supply of goods and services are quite apparent due to
closure, strikes, cartelling, weak monitoring, and lower production
against the higher demand for among others. Hence, protecting
consumers’ rights and interests by ensuring regular and effective market
monitoring thereby facilitating the supply system by developing clean,
competitive, and competent market mechanism, and ensuring food
security have been challenging tasks.
9.72 Bringing the tourism back to its original position through reconstruction
of tourists’ destinations and archaeological heritages that were destroyed
by the devastating earthquake and developing, expanding and increasing
the quality of tourism service pose a daunting challenge.
9.73 Task of determining the contribution of tourism sector in the country’s
economy by developing tourism satellite account (TSA) system to
calculate tourism related major indicators remains a challenge.

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10. Housing and Urban Development, Environment and Energy

Municipal population, as per National Population Census 2011, has reached


58.25 percent. In a situation where there is already low access of the local
people to urban infrastructures due to demographic pressure, there is a need
of improvements in existing infrastructures. It is necessary to build planned
cities by building physical infrastructures that are necessary in newly formed
in seven (7) provinces and 744 local level entities under the federal structure.
On the flip side, it is necessary to pay attention towards maintaining
environmental balance for reducing the risks that may emanate from the
effect of global climate change while carrying out development related
activities. Electricity sector could not achieve success despite immense water
resource potential. Likewise, import of petroleum products continue to rise.
Hence, dynamism of the economy could be boosted if dependency on
consumption of traditional energy and petroleum products could be reduced
by gradually increasing electricity use by ensuring investment in hydro-
electricity, which is key driver of the economy.
Housing and Urban Development
10.1 Contribution of the urban sector to GDP is 33.1 percent. Contribution of
Village Development Committee (VDCs) in proximity to urban areas
enjoying urban facilities accounts for 30 percent (UNDP, 2014)
10.2 The urban population living below poverty line was 10 percent in FY
2003/04 while it went up to 15 percent in FY2010/11. Urban poverty gap
varies substantially across Nepal. Population living below poverty line is
1.3 percent in Pokhara while that of Guleria is 50 percent.
10.3 Remittance received by urban households has been only 15 percent of the
total and Kathmandu receives the most out of total urabn areas.
Ramgram, Biratnagar and Janakpur are among the high remittance
recepient cities in Terai.
10.4 Industries are mainly located in Morang, Parsa, Bara, Rupandehi and
Kathmandu Valley. Industries of Kathmandu valley alone have created
almost 40 percent employment of the total industrial employment.
10.5 As per National Population and Housing Census, 2011, the population of
earlier 58 municipalities was 17.1 percent of the total population while
the current urban population, considering that of recently declared 265
metropolis, sub-metropolis and municipalities, stands at 58.25 percent.

169
Owing to immense demographic pressure of metropolis, sub-metropolis
and municipalities, the local people’s access to urban infrastructure has
been very low and the existing infrastructures also require further
improvement.
10.6 The average road density in urban areas stands at 3.26 km per sq. km.
Access of urban population to sanitation has been 56.1 percent. The
number of households having toilet facility accounts for 88.2 percent.
Hilly urban households having access to tap water supply is 81.1 percent
while only 32.9 percent urban households in Terai have access to such
facility.
10.7 During the first eight months of current fiscal year 2016/17, construction
of 54.64 Km surface drain and 35.90 Km roadside sewage in Biratnagar
has been completed. Likewise, 39 Km surface drain and 15.2 Km
roadside drain have been constructed in Birgunj. Similarly, laying of
201.6 Km pipeline in Kavre district has been accomplished.
10.8 Road extension work has been given continuity in Kathmandu valley
where 320 Km of road has been extended. Similarly, for disaster
management, 200 open spaces have been identified in Kathmandu valley
where 18 parks are under construction.
10.9 By the first eight months of the current fiscal year 2016/17, installation
of 291.64 Km drinking water pipeline in Dharan and construction of
10.33 Km of sewage in Janakpur have been completed.
10.10 Of the target to complete 42 Km track opening work in Biratnagar, 40
Km section of this total length has been completed while its upgradation
work is underway. Construction of 7.72 Km road and 59.39 Km sewage
has been completed in Nepalgunj. Likewise, construction of 8 Km
Asphalt and 10.36 Km surface drain have bee accomplished in
Siddhartha Sub-Metropolis.
10.11 As per National Population and Housing Census 2011, total number of
housing structures stands at 4,767,000 which provide shelters to
5,427,000 families. Of the total structures, 30 percent of them are
temporary in nature. Of this, 85.26 percent reside in their own house. The
share of households residing in rented house has increased from 2
percent to 12.81 percent in last 15 years.
10.12 Of the 23 sections of National Building Code (NBC), NBC 202, NBC
204 and NBC 206 have been amended and executed subsequent to

170
publishing of official notice through Nepal Gazette. Decision has been
made to implement NBC in all municipalities of the country and in
Gaupalikas (Rural Municipalities) having more than 1 thousand
households.
10.13 By the first eight months of the current fiscal year, 610 housing units
among the total 1,518 such units have been constructed under the
housing construction program designed for 20,000 households for Dalit,
poor, Muslim, Chepang, Raute, Gandarva, Badi, Bankariya, Surel, Thami
communities.
10.14 Of the total 194 office buildings to be renovated in 18 districts, 23 of
them have been completed by the first eight months of current fiscal
year.

Environment and Climate Change


10.15 Sustainable Development Goals (SDGs) have to be achieved by
managing the impact of climate change and natural calamities In this
context, several innovative steps have been taken in the area of climate
change for Nepal being one of the nations favoring climate change
related treaty.
10.16 Paris Agreement on Climate Change has come into force since
November 4, 2016. Agriculture Development Bank has been developed
as a national implementing entity to provide direct access to the
Adaptation Fund establishedunder Kyoto Protocol.
10.17 Investments are focused on enhancing the resilience and adaptability
capacity against Climate induced risk and natural disaster. Works on
interlinking the development programs have been carried out with a view
to maintain environmental balance by mitigating the impacts of climate
change.
10.18 System for allocating and spending budget in line with climate code has
been initiated. In addition, works are underway on developing process
and system for incorporating investments made towards climate change
sector in the budget cycle and providing information on results achieved
through such investments.
10.19 Many of the water sources including river basins are drying up in
mountain regions as a result of the impact of climate change and
alteration in water cycle and rainfall patterns. The amount of water

171
generated through such sources is declining. To address this problem,
efforts are being made towards conserving water sources and managing
integrated water reservoir for recharging surface water storage.
10.20 Nepal has been successful to become the first nation to receive grant
assistance equivalent to USD 2.9 million through the Green Climate
Fund for the formulation of National Adaptation Plan.
10.21 Task of reducing the level of Imja glacial lake which is at high risk by
more than three (3) meters has been completed. Repair and maintenance
works on water centers of Kanjiroba and Annapurna mountains have
been accomplished. Similarly, system of 72-hour weather forecast has
been developed.
10.22 Water and Weather Center has been established on the upland of
Chameliya River Basin in Darchula district.
10.23 Nepal is likely to involve in carbon trading due to climate adaptation
activities that are being carried out in hilly areas. Likewise, green
employment has been generated by establishing climate adaptive villages
providing support to the livelihood of rural people through the practices
of climate adaptation.
10.24 Climate Change Resilience Project (CCRP) is in operation in various
village development committees (VDCs) lying in six (6) districts
including Dadeldhura, Doti, Baitadi, Accham, Bajura and Bajhang)
within lower western Seti and Budhiganga river basins. This project has
benefited 15,618 households.
10.25 River control programs including the construction of dykes, revetment,
spur, stud, and other civil works like river channelization, bamboo
piping, bio-engineering have been carried out with a view to provide
support to reducing the impact of climate change.
10.26 Additional irrigation facility has been extended through new technology
based irrigation project and underground deep and shallow tube-well
project to 1,028 Ha and 17,463 Ha of land respectively.
10.27 Climate change related community irrigation project has provided an
additional irrigation facility to the area of 6,723 Ha while small irrigation
programs extended such facility to 1,888 hectares of land. Similarly, 232
ponds and 71,779 plants have been conserved through environment
friendly local governance program.

172
Energy Consumption
10.28 Energy has accorded priority to meet sustainable development goal that
ensures “Access to Affordable, Reliable, Sustainable and Modern
Energy for All”. Investments are centered on renewable/ alternative
energy so as to achieve SDG that aims at increasing the share of
renewable energy in global energy mix substantially and doubling the
global energy efficiency rate by 2030.
10.29 The traditional sources of energy shares approximately three fourth of
total energy consumption. Likewise, Firewood alone shares two-third of
total energy consumption. Despite immense potential for generating
hydroelectricity, share of electricity to total energy consumption is still
very low. The share of electricity to total energy consumption stood at
3.7 percent in FY 2015/16 which grew marginally and reached 4.1
percent by the first eight month of the current FY 2016/17.
Table 10(a) : Energy Consumption Status (In ToE: Tons of Oil Equivalent)
Fiscal Year First Eight Months
Source 2014/15 Share 2015/16 Share 2015/16 Share 2016/17 Share
(०००
०००'ToE)
००० % (०००
०००'ToE)
००० % (०००
०००'ToE)
००० % (०००
०००'ToE)
००० %

Traditional 9104 77.6 9227 78.4 6069 55.3 6152 74.5


Firewood 8264 70.5 8376 71.2 5509 50.2 5584 67.6
Agricultural Residue 408 3.5 414 3.5 272 2.5 276 3.3
Cow Dung 432 3.7 438 3.7 288 2.6 292 3.5
Commercial 2334.44 19.99 2248.2 19.1 4609.77 42 1811.97 22
Coal 465 4 536.25 4.6 192 1.8 332.11 4
Petroleum
1469.16 12.5 1275.39 10.8 4143.46 37.8 1139 13.8
Products
Electricity 397.28 3.4 436.56 3.7 274.31 2.5 340.86 4.1
Renewable 292.12 2.5 292.49 2.5 291.86 2.7 293.12 3.5
Grand Total 11727.56 100 11767.69 100 10970.6 100 8257.09 100
Source: Ministry of Energy

10.30 The share of petroleum products and traditional sources of energy could
be reduced if hydroelectricity production is increased. Through this, on
one hand, ever increasing trade deficit would decline while overall
environment will receive positive impacts with reduction in growing
deforestation for addressing energy crisis on the other. Domestically
produced energy helps for the foundation of industrialization and brings
positive changes in the lives of the people.
10.31 In the first eight months of the FY 2015/16, the total energy consumption
that stood at 10,970 tons of oil equivalent dropped by 24.7 percent and

173
rested at 8,257 tons of oil equivalent during the same period of current
fiscal year.
Chart 10 (a) : Energry Consumption Status*

*
First Eight Month

10.32 Based on the data of the first eight months of the current FY 2016/17,
the ratios of traditional, commercial and renewable energy consumption
remained at 74.5 percent, 22.0 percent and 3.5 percent respectively which
such ratios were 55.3 percent, 42.0 percent and 2.7 percent respectively
during the same period last year.

10.33 During the first eight months of the current fiscal year, licenses were
granted to conduct survey on 23 hydroelectricity projects generating
more than 1 MW with total installed capacity of 155 MW, 6 solar power
projects generating less than 1 MW with total installed capacity of 5.5
MW and 1 bio-mass electricity project with 18 MW installed capacity.
Electricity
10.34 Gross Value Added (GVA) of electricity, gas, water group under
secondary sector is estimated to grow by 12.97 percent in the current
fiscal year. Such growth rate of this group had remained negative by 7.40
percent in FY 2015/16. The contribution of this group to GDP that stood
at 1.02 last year is estimated to reach 1.16 percent this year with 0.14

174
percent point growth. The access of total population to electricity stands
at 74 percent.
10.35 GVA and contribution of the group are estimated to remain high in the
current fiscal year as a result of significant level of electricity generation
in this year as compared to that of previous fiscal year. An additional
105.3 MW of electricity has been generated in the first eight months of
current fiscal year in contrast to merely 18.5 percent electricity
production in the same period of previous fiscal year.
Chart 10(b) : Growth Rate of Electricity, Gas and Water (In Percent)

Source: Department of Statistics, Nepal


P.E= Preliminary Estimate

10.36 In the current fiscal year, load-shedding hour has been reduced through
notable progress in the management and leakage control in electricity.
Electricity leakage has dropped by 2.8 percent point in total. Such
leakage has declined by 4.2 percent in the current fiscal year as compared
to that of mid-January last year.
10.37 Kathmandu and Pokhara are free from load-shedding and load-shedding
hours have been reduced greatly in other areas as well while four hours
of load-shedding still persist in industrial areas during peak hours.
Recently, the domestic customers from across the country are free-from
load shedding. Industries in Biratnagar corridor have to face four hours
of load-shedding while those of Birgunj corridor are having six hours of
power outage. Industries from Bhairahawa corridor have been facing
more than six hours of power outage due to limited transmission capacity

175
10.38 The total electricity production that had stood at 855.89 MW by the end
of FY 2015/16 grew by 105.3 MW (12.3 percent) in the first eight
months of the current fiscal year and reached 961.2 MW. The total
electricity generation in Nepal has reached 965.7 MW (production at full
capacity) with the inclusion of 4.5 MW electricity generated through
rural electrification projects which are not associated with National
Integrated Power System.
Table 10 (b) : Electricity Demand, Consumption, Production, Import, and
Physical Structures
Fiscal Year First Eight Months
Description
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Production (MT) 705.57 746 746 829.2 855.9 829.2 961.2
Transmission Line (Km) 1987.4 1987.4 1987.4 2848.9 3006 2848.9 3204
Customer Number 2053259 2599152 2713804 2872015 2969576 2922041 3121902
Distribtution Line (Km) 958156 114160.4 116066.6 123827.8 124115 123827.8 124976

Available Energy (GWh) 3858.4 4260.5 3092.5 4966.7 5077.2 4966.7 3964.2

Peak Demand (MW) 1026 1094 1201 1291.1 1385 1291.1 1444.1
Demand Supply Gap (MW) 320.4 348 455 461.9 529.1 461.9 482.9
Imported from India (GWh) 746.07 790.14 1318.75 1369.89 1782.86 - 1171.38
Source: Ministry of Energy

10.39 The electricity demand has reached 1444.06 MW in the current fiscal
year. The gap between demand and supply has stood at 482.9 MW. The
demand for electricity has continued to grow with the increased
production of electricity. The gap between demand and supply between
FY 2011/12 and FY 2015/16 has widened further. Such gap remained at
461.9 MW by the first eight months of previous fiscal year while this
further grew by 21 MW reaching 482.9 MW in the review period.

Chart 10 (c) : Gap Between Energy Demand and Supply (In MW)

Source: Ministry of Energy


*First eight months

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10.40 About 1171.38 GWh of electricity has been imported from India in
current fiscal year to reduce load-shedding hour. Such import stood at
1782.86 GWh last year. The daily power shortage still remains close to
2.4 million units.
10.41 As of March, 2017, out of the NIPS linked 961.2 MW electricity
connected to the national grid, hydroelectricity shares 907.6 MW,
thermal plant accounts for 53.4 MW and that of solar energy is 100 KW.
Likewise, hydro electricity generated through projects under the domain
of Nepal Electricity Authority (NEA) and that generated through the
private sector, connected to the national grid, account for 531.2 MW and
429.7 MW respectively.
Table 10 (c) : Completed Hydroelectricity Projects in FY 2016/17
S.N Electricity Project District Capacity (MW)
1 Jyadi Khola Sindhupalchowk 2.00
2 Tungun-Thosne Lalitpur 4.36
3 Upper Marshyangdi "A" Lamjung 50.00
4 Daraudi Khola “A” Gorkha 6.00
5 Khani Khola Lalitpur 2.00
6 Miya Khola Khotang 0.99
7 Upper Modi Kaski 25.00
8 Hewa Khola A Panchthar 14.90
Total 105.30
Source: Ministry of Energy

10.42 In first eight months of the current fiscal year, a total of 105.3 MW of
electricity has been generated with 50 MW coming from upper
Marshyandi “A” of Lamjung district and 55.3 MW generated from
other projects. A total of 18.5 MW electricity was generated in the
corresponding period of previous fiscal year.
10.43 Six hydro electricity projects totaling 740 MW installed capacity are in
construction phases through NEA and its subsidiary companies under the
investment of the Government of Nepal. All these projects are estimated
to complete and come into operation by 2022 AD.

177
Table 10 (d):On-going Hydroelectricity Projects
S.N Hydroelectricity Project Production Capacity (MW) Completion Target Period (FY)
1 Chamelia 30 2017/18
2 Kulekhani-III 14 2017/18
3 Uppper Tamakoshi 456 2018/19
4 Upper Trishuli 3A 60 2019/20
5 Rahughat 40 2020/21
6 Tanahu 140 2022/23
Total 740 Form 2017 to 2023
Source: Nepal Electricity Authority

10.44 By first eight months of the current fiscal year, transmission line has
been extended to 3204 circuit kilometer against 2848.9 circuit kilometer
extended in the same period previous year. The number of electricity
consumers that stood at 2,969,576 last year grew by 5.1 percent and
reached 3,121,902 by the first eight months of the current fiscal year. The
distribution line has been extended to 124,976 Km during the same
period.
10.45 By mid-March, 2016, a total of 72 projects with installed capacity of 897
MW are in operation after obtaining license. Likewise, 140 such projects
with installed capacity of 3,524 MW have obtained license which are in
different phases of construction.
10.46 NEA and private sector hydropower companies have been issued
electricity generation licenses to conduct survey on 37 large and small
hydroelectricity projects with an additional installed capacity of 1,089
MW. Electricity generation license has been issued to 31 large and small
hydroelectricity projects with an additional 167 MW installed capacity.
Likewise, nine (9) survey licenses have been issued for electricity
transmission.
Table 10 (e) : Hydroelectricity Generation License Status (Until Mid-March)
Type Number Total CapacityMW) Total CapacityMW) Remarks
59 887 897 Capacity of more than 1 MW
Operation upon receipt of License
13 10 Capacity of more than 1 MW

License issued and at different phases of 127 3514 3524 Capacity of more than 1 MW
construction 13 10 Capacity of more than 1 MW

Applied for License to generate 52 5414 5418 Capacity of more than 1 MW


electricity 4 4 Capacity of more than 1 MW
120 6680 6802 Capacity of more than 1 MW
Survey Certificates issued
171 122 Capacity of more than 1 MW
143 3714 3760 Capacity of more than 1 MW
Applied for Survey Certifiate
55 46 Capacity of more than 1 MW
Total 757 20401 20401
Source: Ministry of Energy

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10.47 A total of 1,059 Km transmission line and distribution line of 132 KV
and other transmission line extension projects of different voltage levels
with 56 transmission line projects and 89 distribution line projects has
been constructed in the first eight months of current FY 2016/17. The
transmission line of 517 Km had been built in previous fiscal year.

10.48 Detailed design work on four (4) hydroelectricity projects having a total
of 69.25 MW has been initiated in current fiscal year. Detailed
engineering design of 4 such projects has begun. Likewise, feasibility
and environmental studies of 34 projects with a total capacity of 4.580
MW are underway.
10.49 Detailed engineering design and environmental studies of Budiganga
hydroelectricity project has been completed. Construction of project
building, access road and bridges for the development of project’s
infrastructures are underway subsequent to the acquisition of lands.
10.50 A total of 175 projects including those of 132 KV and other 56
transmission line are in operation this year.

Electricity Consumption
10.51 Electricity consumption including all sectors of economy totaled 3043.35
GWh in the first eight months of current fiscal year 2016/17. Such
consumption stood at 3718.97 GWh in previous fiscal year 2015/16.
Table 10 (f) :Electricity Consumption by Sectors (GWh)
Sector 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Household 1342.67 1401.64 1571.39 1679.35 1792.95 1381.63
Commerce 240.74 256.82 285.42 300.25 286.48 225.62
Industry 1123.94 1141.07 1251.69 1352.15 1205.69 1095.28
Other 337.34 356.48 387.82 411.96 433.85 340.82
Total 3044.69 3156.01 3496.31 3743.71 3718.97 3043.35
Source: Nepal Electricity Authority
*First Eight Month

10.52 While analyzing the consumption trend from FY 2011/12 until mid-
March of FY 2016/17, private household tops the electricity consumption
table with an average consumption of 45.3 percent followed by industrial
estate with 35.6 percent and other sectors with 11.2 percent and trade
with 7.9 percent.

179
Chart 10 (d) :Electricity Consumption By Sectors (In Percent)

Source: Nepal Electricity Authority


*First Eight Month

10.53 The electricity consumption of household, industry, trade and other


sectors stood at 48.2 percent, 32.4 percent 7.7 percent and 11.7 percent
respectively in FY 2015/16 while such consumption figures are 45.4
percent, 36.0 percent, 7.4 percent and 11.2 percent respectively in the
first eight months of the current fiscal year.
10.54 Industrial sector had shared the most in the total electricity consumption
in FY 2004/05 while household sector has been leaving all sectors behind
in terms of such consumption in the years thereafter.

Renewable Energy
10.55 About 16 percent of the total population has access to electricity through
renewable energy sources. Investments are being made in this sector
with a target of making 10 percent of the total energy consumption
available through alternative/renewable energy and 30 percent of energy
consumed by the people with access to electricity produced through
these sources within next 20 years. In addition, such target aims at
development and expansion of alternative energy that would help
contribute to maintaining environmental balance, employment
generation, and inclusive development. About 28 percent of the total
population has been using clean renewable energy.

180
Table 10 (g) :AlternativfeEnergy Consumption Status
Fiscal Year First Eight Month
Major Programs
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Electricity Generation
through Small and
3258 3366 3288 3346 1910 1095 957
Microhydro Electricity
Projects (KW)
Installation of
Household Solar System 35627 96495 87038 103161 56770 23994 9291

Installation of Solar
- - 14 30 15 7 5
Pumps
Installation of Bio-gas 18979 17635 31512 30078 16706 14351 15707
Installation of Improved
Water Mills 971 1256 341 641 673 308 91

Installation of Improved
118461 120364 140662 310281 51211 42534 34767
Stoves
Source: Aternative Energy Promotion Center

10.56 On the bio-gas front, a total of 15,707 biogas plants have been installed
during the first eight months of current fiscal year 2016/17. Electricity
equivalent to 957 KW has been generated through micro and small
hydroelectricity projects. Similarly, 9,291 solar plants have been installed
while 34,767 units of improved stoves and 308 units of improved water
mill have been installed during the same period. Investments made in this
sector have availed rural people with electricity service, clean cooking
fuel, technology and drinking water. In addition to this, clean energy has
helped to improve education, health and environment of rural people.

Utilization of Petroleum (POL) Products


10.57 Consumption of Petroleum Products (POL), which is an important source
of energy, has continued to grow. Trade deficit has also been
continuously getting wider mainly due to high export volume of PoL that
have major share in the total imports. Despite enormous potential of
hydroelectricity, continuous growth in the imports of PoL has made
Nepalese economy over dependent. In addition to this, the economic cost
has also increased thereby weakening the foundation of industrial sector.
Though there has been expansion in all service sector, it could not be
made reliable.
10.58 Due to the boarder obstruction that the country witnessed last year has
resulted in the decline in the imports of petroleum products while such
import registered significant growth in the current fiscal year due to easy
supply situation.

181
Table 10 (h) :Daily and Monthly Average Imports of Petroleum Products
FY 2014/15 FY 2015/16 FY 2016/17
Goods Daily Monthly Daily Daily Daily Daily
Average Average Average Average Average Average
Petrol (KL) 776.9 23630.6 654.1 19896.3 1008.1 30367.9
Diesel(KL) 2469.6 75116.1 2164.2 65826.8 3029.9 91276
Kerosene(KL) 51 1552.3 38.9 1183.6 48 1446.8
ATF (KL) 381.9 11617 215.6 6556.7 402.5 12125.5
Total Qauntity
3679.4 111916 3072.8 93463.3 4488.5 135216.1
excluding LP GAs
LPG (Me.Ton) 707.7 21524.9 596.1 18131.6 780.8 23521.3
Source: Ministry of Supply
*First Eight Month

10.59 During the first eight months of the current FY 2016/17, the daily
average of imports of petroleum products except that of LPG stood at
4,488.5 kiloliters and monthly average is 135,216.1 kiloliteres. Due to
the disruption in supply system during FY 2015/16, such imports
remained low.
10.60 Considering the daily and monthly averages as a basis due to boarder
obstruction in FY 2015/16, the import of petroleum products had
declined by 16.5 percent in contrast to its sharp growth of about 45
percent in the current fiscal year. The import of petroleum products
registered high growth in current fiscal year as a result of uneasy supply
system that last year had witnessed. However, the import of such
products is still higher by 21 percent than that of FY 2014/15 despite
easy supply system during that year.
Table 10 (i) :Consumption Details of Petroleum Products
Total
Furnace
Petrol Diesel Kerosene ATF LDO Quantity LPGas
Fiscal Year Oil
(KL) (KL) (KL) (KL) (KL) Excluding MT
(KL)
LP Gas
2016/17* 242943 730208 11574 97004 - - 1081729 188170
2015/16 238755 789922 14203 78680 - - 1121560 217579
2014/15 283567 901393 18628 139404 - - 1342992 258299
2013/14 251451 811100 19064 123527 - - 1205142 232660
2012/13 221676 716747 24721 115786 258 2450 1081638 207038
2011/12 199749 648513 41808 108908 0 435 999413 181411
2010/11 187641 655128 49495 101314 227 1415 995220 159286
2009/10 162275 612505 55788 82631 238 2589 916026 141171
2008/09 124169 446468 70089 68935 377 2171 712209 115813
2007/08 100842 302706 155216 68938 306 2919 630927 96837
2006/07 101912 306687 197850 63778 179 4558 674964 93562
2005/06 80989 294329 226637 64335 290 3695 670275 81005
Source: Ministry of Supply
*First Eight Month

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10.61 The consumption of petroleum products covers mainly petrol, diesel,
LPG, kerosene and aviation fuel. Consumption of petrol, diesel, LPG and
aviation fuel has been growing every year while that of kerosene is
declining. LPG has apparently been used as an alternative to kerosene.
The share of petrol, diesel, kerosene and ATF except that of LPG in the
total consumption of petroleum products stood at 21.3 percent, 70.4
percent, 1.3 percent and 7.0 percent respectively in FY 2015/16. While
looking at such consumption in the first eight months of the current fiscal
year 2016/17, the share of petrol has been 22.5 percent, diesel 67.5
percent, kerosene 1.1 percent while that of ATF is 9.0 percent.
10.62 With a view to facilitate in the regular supply of petroleum products by
increasing the storage capacity of such products to meet their demand
for at least 90 days, land procurement process is in progress in all seven
provinces and such products will be stored in Jhapa, Sarlahi, Chitwan,
Dhanding, Tanahu, Rupandehi and Kailali districts accordingly.
Challenges
10.63 New cities need to be built in an organized way by building physical
infrastructures in all 7 provinces and 744 local levels under the federal
structure. In addition, there remains a big challenge to interlink local level
growth centers while bonding those centers with provinces and the center
through construction of infrastructures including road networks by
mobilizing huge investment.
10.64 There is a wide gap among investment requirement, financial availability,
and implementation capability for development of the urban sector.
Likewise, it is necessary to manage housing through arrangement for joint
housing in a limited space considering the demographic pressure in urban
areas. In this process, constructing of all safer buildings by complying with
national building code is a challenge.
10.65 It is necessary to improve the living standard of the urban people by
developing clean, green, safer and prosperous cities through planned urban
development while making urban services and facilities available in an easy
and reliable way. Likewise, it is a challenging task to develop Kathmandu
and other convenient areas of major cities as a smart city by managing the
urban properties in safer way thereby interlinking the internet of all types of
good technology (IoT) with information, and communications technology
(ICT).
10.66 Construction of earthquake resilient structures in the process of building
urban infrastructure and development infrastructure is a challenge.

183
10.67 Tasks of developing infrastructure for tourism and water resources with the
development of new cities, and integrated settlements by reducing the risks
of climate change thereby embracing multidimensional (irrigation,
hydroelectricity, tourism and others) approach is a daunting challenge.
10.68 There lay challenges to internalize the climate change related programs at
the people’s level, and ascertain common voices and issues in international
forums with regard to countries which are most vulnerable from climate
change perspective
10.69 Majority of equipment required for renewable energy have to be imported,
which tend to be expensive. Tasks of maintaining balance between demand
and supply of renewable energy in energy consumption and developing the
energy sector through the use of Energy-Mix have been challenging.
10.70 Acquisition of land has been a major problem in the development of
hydropower. Complexities arise in investment on hydroelectricity projects
due to pressure exerted from local level to construct additional physical
infrastructure like drinking water, roads, agricultural roads, school buildings
etc.. Likewise, land acquisition and compensation distribution for expansion
of transmission lines also pose challenges. In addition, timely completion of
project is a challenge amid lethargic decision-making process relating to
marking and clearing of trees in hydroelectricity construction areas.
10.71 Primarily, perspective consumption plan for domestic consumption of
internally generated hydro-electricity has yet to be formulated than a plan on
exporting electricity by augmenting its production. On the flip side, import
of petroleum products has continued to grow due to increased demand for
automobiles. Hence, emphasis needs to be accorded to hydroelectricity
generation to reduce heavy reliance on petroleum products and trade deficit
thereby using electric vehicles mainly in city areas. In addition to this, it is a
challenging task to enhance sustainable energy efficiency and consumption
for economic prosperity by developing interrelationship among the key
drivers of economic growth including infrastructure, tourism, energy, and
agriculture.
10.72 Since most of the hydroelectricity projects at present are of run-of-the- river
type which are at high risk from the perspective of their production
sustainability in the long run. Similarly, rivers are drying up due to the
impact of global climate change. Hence, ending the load shedding
permanently through the construction of reservoir-based hydropower or
large hydroelectricity projects in order to reduce the risks of climate change
on investment and production of hydroelectricity is a daunting challenge.

184
11. Transport and Communication

Diverse geographical and economic sectors remain scattered in the country.


Economic and social development needs to be promoted by binding
geographical and economic sectors to each other through infrastructures like
Roads, Railways, Waterways and Ropeways, and strategic transport network.
Promoting various economic activities like agriculture, tourism, electricity,
and industry, and projects has become necessary while linking remote rural
areas to local markets. By now, Except for Dolpa and Humla districts, all
districts headquarter are connected to the road network. Sixty seven districts
headquarter have access to Black topped roads. A total of 1,952 motor-
vehicles worthy bridges have been constructed. A balanced social and
economic integration through the development of road transport is
necessary. The condition calls for strengthening of domestic and
international air transport services by making such services safe and
accessible to all. Development of, road, air transport, water transport,
communication, and communication technology is the utmost necessity for
overall development and economic growth.
Road Transport
11.1 On roads transport, 639 Km of earthen (new roads) road, 345 Km of
graveled road and 264 Km of black topped road was upgraded in fiscal
year 2015/16, while 312 Km of earthen road, 405 Km of graveled road
and 132 Km of black topped road have been upgraded by the first eight
months of the current fiscal year 2016/17. Likewise, periodic
maintenance works of 85 Km road has been completed.
Table 11 (a): Status of Road Facility Expansion
Fiscal Year
S. No. Description Units
2012/13 2013/14 2014/15 2015/16 2016/17*
1 New Road Construction Km 876 1180 648 639 312
2 Graveled Road Km 620 685 401 345 405
3 Upgraded to Black Topped Km 467 538 601 264 132
4 Road Maintenance (Regular) Km 7757 8200 8908 9200 9500
5 Periodic Maintenance Km 429 400 350 443 85
6 Bridge Construction Unit 63 72 73 63 22
7 Road Linking District Headquarters No. 1(Mugu) 1(Mugu) 1(Mugu) - -
Source: Ministry of Physical Infrastructure and Transport
*First Eight Month

11.2 By the end of FY 2015/16, a total of 28,308 Km road network across the
country including strategic road network and local net road network was

185
constructed where 12,173 Km was black topped; 6,460 Km graveled and
9,675 Km was earthen (fair weather) road. The length of such road
network has reached 29,157 Km with 12,305 Km black topped, 6,865
Km graveled, and 9,987 Km earthen (fair weather) roads by the first
eight months of current fiscal year 2016/17.
Table 11 (b): Road Facility Extended by Department of Road (In Km)
Till Till Till 2016/17*
Till Till Addition
S.N Particulars 2012/13 2015/16
2013/14 2014/15 in 2016/17* Total Share (Percent)

1. Black Topped 10659 11197 11798 12173 132 12305 42.2


2. Graveled 5940 6086 6287 6460 405 6865 23.55
3. Earthen (Fair Weather) 8666 9163 9411 9675 312 9987 34.25
Total 25265 26446 27496 28308 849 29157 100
Source: Ministry of Physical Infrastructure and Transport
*First Eight Months

Chart 11 (a): Road Facility extended by Department of Road

11.3 Roads have been constructed at local level through local level programs
including rural reconstruction and rehabilitation program, decentralized
rural infrastructure and livelihood strengthening project, rural access
program, local roads, bridge and community access improvement
program, election area development program, national rural transport
strengthening program, local transport infrastructure sectoral program
and rural community infrastructure development program.

186
Table 11 (c): Details of Road Network constructed under Local Bodies (In Km)
Description of Road Till Till Till Till
2016/17* Remarks
2012/13 2013/14 2014/15 2015/16
Earthen (Fair Weather) 34766 37402 38768 38940 42805
368 Km urban
Graveled Road 12202 12336 12425 12513 12823 road is not
included in this
Black Topped Road 1576 1690 1784 1857 2004
table.
Total 48544 51428 52977 53310 57632
Source: Ministry of Federal Affairs and Local Development
* Till first eight months

11.4 By the first eight months of current fiscal year, district road core
network, urban road network and rural road networks under various local
level infrastructure development and agricultural roads have been
constructed. Of these road networks, a total road length of 58,000 Km
including black topped, gravel and earthen (fair weather) roads has been
constructed in all 7 provinces. This total road length includes 25,728 Km
of Provincial road where 11,837 Km road belongs to province no.1,
province no. 2 comprises 5,698 Km, 14,842 Km of road lies in province
no. 3, while 10,919 Km belongs to province no. 4, province no 5 claims
8,551 Km, 2,527 Km is in province no .6 and 3,626 Km road network
belongs to province no. 7 and 368 Km urban road network and 31,904
Km of rural road network.
Table 11 (d): Local Road Network Details by Provinces (In Km)
Earthen
Total
Province No. category (Road Network) (Fair Gravel Blacktopped
Road
Weather)
District Road Core 5715 4636 817 262
Province No. 1 Urban Road 0 0 0 0
Rural Road 6122 4363 1617 142
Province Total 11837 8999 2434 404
District Road Core 2522 849 1606 67
Province No. 2 Urban Road 0 0 0 0
Rural Road 3176 1985 1176 15
Province Total 5698 2834 2782 82
District Road Core 5230 4091 852 287
Province No. 3 Urban Road 363 62 100 201
Rural Road 9249 7237 1723 289
Province Total 14842 11390 2675 777
District Road Core 4083 3308 594 181
Province No. 4 Urban Road 5 3 1 1
Rural Road 6831 6006 697 128
Province Total 10919 9317 1292 310
District Road Core 4081 2434 1214 433
Province No. 5 Urban Road 0 0 0 0
Rural Road 4470 2905 1467 98

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Earthen
Total
Province No. category (Road Network) (Fair Gravel Blacktopped
Road
Weather)
Province Total 8551 5339 2681 531
District Road Core 1670 1524 136 10
Province No. 6 Urban Road 0 0 0 0
Rural Road 857 825 23 9
Province Total 2527 2349 159 19
District Road Core 2427 1706 650 71
Province No. 7 Urban Road 0 0 0 0
Rural Road 1199 937 251 11
Province Total 3626 2643 901 82
District Road Core 25728 18548 5869 1311
Urban Road 368 65 101 202
Total of Seven Provinces Rural Road
31904 24258 6954 692
Total Road Network 58000 42871 12924 2205
Source: Department of Local Infrastructure Development and Agriculture Road
*Till first eight months
Chart 11 (b): Local Road Network Details by Provinces

Source: Department of Local Infrastructure Development and Agriculture Road

11.5 Construction of a total 58,000 Km road networks has been completed by


the first eight months of the current fiscal year 2016/17 through various
local level infrastructure development and agricultural road network
programs including district road main network, village level road
network and urban road network. Of this total, 8,148 Km road has been
constructed in mountain region, 31,988 Km in hills and 17,864 Km in
southern plains of Terai.

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Table 11 (e): Local Road Network Details by Geographical Region (In Km)
Geographical Total Local Road District Road Core Village Level Road Urban Road
Region Network Network Network Network
Mountain 8,148 3,263 4885 0
Hills 31,988 15,418 16,202 368
Terai 17,864 7,047 10,817 0
Total 58000 25728 31904 368
Source: Department of Local Infrastructure Development and Agriculture Road
*Till first eight months

Transport Vehicle

11.6 The number of transport vehicles registered between FY 1989/90 and FY


2015/16 across the country stood at 2,339,169 while a total of 263,817
new transport vehicles got registered by the first eight months of fiscal
year 2016/17 totaling 26,02,986. The number of transport vehicles has
grown by 78 percent in current fiscal year as compared to that of the first
eight months of previous fiscal year.
Table 11 (f): Number of Registered Vehicle
From 1989/90 Total
Types to 2013/14 2014/15 2015/16 2016/17*
Till Date
2012/13
Bus 30138 2776 3737 4353 3965 44969
Minibus/Mini Truck 13307 1412 2270 4625 1655 23269
Crane/Dozer/Excavator/Truck 50192 2789 4236 8328 9751 75296
Car/Jeep/Van 138735 11372 13560 28361 17171 209199
Pickup 18171 5668 6057 5060 8133 43089
Microbus 2636 178 932 1137 305 5188
Tempo 7510 17 1541 2613 3667 15348
Motorcycle 1207261 163945 196383 267439 199908 2034936
Tractor/Power Tiller 83101 10070 10524 9786 10316 123797
Others - 11894 8784 20678
Bus 6427 116 343 169 162 7217
Fiscal Year-Total 1557478 198343 239583 343765 263817
2602986
Total up to Fiscal Year 1557478 1755821 1995404 2339169 2602986
Source: Ministry of Physical Infrastructure and Transport
* Till First Eight Months

11.7 Works are being carried out to curb road accidents by putting transport
security action plan on top of priorities. Smart card driving licenses are
being distributed through Transport Management Office, Bagmati while
preliminary works are underway for converting number plates of
transport vehicles into embossed number plates.

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Civil Aviation

11.8 The number international airlines to make the flights from Nepal has
stood at 25 as of the first eight months of current fiscal year 2016/17
while this number was 26 last year. The number of Nepali airlines to
make international flights stands at 2. Likewise, the number of countries
signing bilateral aviation agreement has been 3 while the air seats on
both sides of the aisle have been same (8 million) as that of last year.
The number of airlines making domestic flights with fixed wing+ rooter
wing that had stood at 17 in previous fiscal year 2015/16 has reached 19
by the first eight months of the current fiscal year. The number of total
airports operating in Nepal rose from 32 to 33 while the number of all
season airports has reached 24 from 22.

11.9 programs are in operation to make air service which has been the basic
service of tourism sector convenient, safer and reliable. In addition to
this, various programs are being carried out towards civil aviation for the
development, expansion and promotion of tourism sector.

11.10 By first eight months of FY 2016/17, valuation has been in process for
acquisition of 141 Ropani (about 7 Ha.) land and 327 homes and sheds
150 meter away from the centre point of Tribhuvan International Airport
runway for the aviation sector reform. About 27 percent of the runway
and taxiway construction work has been competed at Gautam Buddha
Airport of Lumbini which is regarded as the important destination from
the tourism perspective.
Table 11 (g): Civil Aviation Related Indicators
Major Indicators Mid-March 2016 Mid-March 2017
Nepalese Airlines with International Flights 2 2
International Airlines in Nepal 26 25
Country with Bilateral Air Service Agreement 38 38
Air Seats on Each Side of the Aisle 8000000 8000000*
Number of Domestic Airlines 17 19
Number of International Airport 1 1
Number of All-season Airports 22 24
Total Number of Domestic Airports in Operation 32 33
Source: Ministry of Culture, Toursim and Civil Aviation
*200 seats per flight is calculated on the basis of flight that aircrafts make in a week with their total number
of seats on both sides of the isle. The number of seats is subject to change as per bearing capacity of the
aircraft.

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11.11 Master plan has been prepared for the construction of second
international airport at Nijgadh, Bara. For this, EIA work is in progress.
Administrative tasks for the identification of land have been completed
while finalizing the rates for the distribution of compensation is under
process. Likewise, first phase of compensation distribution work at
Pokhara Regional International Airport has been completed and
preliminary works for the acquisition of additional land have also been
accomplished. Test flight has been conducted at Kalikot airport on 11th
February, 2017. Approval has been granted to Nepal Airlines
Corporation for it to procure two wide-body aircrafts to the selection of
supplier.

Rail Transport

11.12 Rail transport related works have been commenced on 945 Km East-
West railway, and 519 Km of Rasuwagadhi-Kathmandu-Pokhara-
Lumbini railway. Besides, work has been initiated with the objective of
linking east-west with the railway networks of Indo-Nepal border towns.

11.13 Feasibility study of east-west railway has been completed, and based on
this , detailed project report has been prepared on a total of 372 Km
railway line including 108 Km Simara-Bardibas link, 127 Km Simara-
Tamsaria link, 65 Km Tamsaria-Butwal link, 28 Km Simara-Birgunj
link and 44 Km Butwal-Bhairahawa-Lumbini link. Of this total railway
line, contract is signed for construction of 30 Km (Bardibas-Lalbandi)
stretch of 108 Km long Simara-Bardibas section, of whichconstruction
of railway track-bed, culverts, and bridges have been completed on 9
Km of this stretch in the review period.

11.14 Preparation of detailed project report on Bardibas-Kakarbhitta section


and Itahari-Biratnagar link (262 Km) is underway. Selection of
consultant for the preparation of detailed project report on Butwal-
Gathachauki section (421 Km) is in the final stage., Feasibility study has
been carried out on (135 Km) Nawalparasi section that will pass through
Nijgadh-Hetauda-Bharatpur. Task has been initiate for preparing
detailed project report on Rasuwagadhi-Kathmandu-Pokhara-Lumbini
railway within 2 years.

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National Pride Project

11.15 During review period, 73 Km of graveled road, 7.5 Km black topped


road and 6 bridges have been built along the mid-hill Pushpalal people’s
highway. Black topping on 5.5 Km road under postal highway project
has been competed while contractor is assigned to carryout upgradation
work on 425 Km road where foundation work of 3 bridges has been
completed under the same project. Likewise, 1.2 Km track opening and
2.3 Km graveled road along Karnali corridor have been completed under
north-south people’s highway. Track construction work on Hilsa-Simikot
section of Karnali corridor (2.5 Km), 5.5 Km of Koshi corridor, 1 Km of
Mahakali people’s highway and 9.5 Km of Seti people’s highway have
been accomplished. Feasibility study on Bheri and Rapti corridors has
been commenced while track construction work on 2.5 Km of Dunai-
Marim-Tinje-Dhoko section along Bheri corridor has been concluded.
Preparation for handing over Kathmandu-Terai/Madhesh fast track
project to Nepal Army is underway.
Information and Communication

11.16 Programs are being implemented with the objectives of bringing


effectiveness in the flow of information in line with national policy
related to the postal services, telecommunication, printing, press and
electronic communication and motion pictures sectors, delivery of
commitments expressed at international forums and developing and
expanding information and communication sector even at village level.
Digitization work on important data and documents of Rastriya
Samachar Samiti, Radio Nepal and Gorakhaparta Corporation has been
initiated. Installation work of its own satellite for the provision of
communication, science and technology related researches has been
commenced.

11.17 Of the total licensed 736 FM radio stations including 64 such stations
registered during the first eight months of the current fiscal year, 596 of
them have been operating transmission service regularly. Likewise, of
the total 103 licensed television channels with 10 new channels
registered during the first eight months of the current fiscal year, only 28
of them are being regularly transmitted. Of the total registered
downlinks, 185 of them are renewed. Similarly, a total of 949 feature
films, 535 commercials have been censored while 431 motion pictures
have been shot since FY 2012/13 till date.

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11.18 Online Communication Media Operation Manual, 2016; National Mass
Communication Policy, 2016; and Security Printing Development
Committee (Formation) Order, 2016 are in execution. . Communication
Museum and Mass Communication Study Academy Development
Committee (formation) Order, 2016 has been drafted. The task of
converting analogue system operated cable television into the digital
system by 28th April 2017 has been accomplished as targeted.
Table 11 (h): Number of Audio-Visual Related Licenses
Fiscal Year
Total till
Particular Till Till Till Till Till 2016/17* Date
2011/12 2012/13 2013/14 2014/15 2015/16

FM Radio 475 512 567 638 672 64 736

FM Radio Regular Transmission 328 372 423 547 558 31 596

Television - 49 78 82 88 10 103
Television Regular Transmission 18 23 24 25 25 3 28
Cable Television 744 773 827 851 853 0 853
DTH 1 1 1 1 1 1 2
Licenses for Downlink 84 84 93 133 162 23 185
VHF/UHF Transmitter - 38 175 379 608 182 790
Sales and Distribution of Radio
- 20 37 60 100 38 138
Equipment

Number of Feature Film Censored* 182 195 222 196 128 136 949

Number of Commercial Movies* 175 144 132 93 66 67 535


Foreign Movies Shootings* 66 82 87 93 71 61 431
Source: Ministry of Information and Communication
*For First Eight Months

Postal Service

11.19 Postal service was established in 1935 BS and under this service, Postal
Service Department and offices under this Department have been
rendering services such as issuance of postal stamps, operation of Postal
Saving Bank, Money Order Service, Same Day Delivery Service,
Express Mail Service and E-post, Tele-Center Service apart form
delivering letters and parcels.

11.20 One General Post Office, 5 Central Office, 5 Regional Postal Directorate,
70 District Post Offices, 842 Area Post Offices ( 170 in mountains, 372
in hills and 300 in Terai), 3,074 Additional Post Offices ( 492 in
mountains, 1,541 in hills, and 1,041 in Terai) are in operation. Likewise,

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117 post offices operating postal saving bank, 79 post offices operating
money order, 401 tele-centers in 73 districts are in operation. Letters,
various documents, parcels, book posts, newspapers, express delivery
services including various postal materials and money order together
with saving bank services are being delivered.

Telecommunications Service

11.21 The number of telecommunication service providers and its service users
has increased. Telecommunications service has gained both quantitative
and qualitative growths due to the availability of modern and
sophisticated technological telecommunication facilities. By mid-March
2015, the total number of telephone subscribers reached 31,461,378 with
telephone density of 130.35 percent.
Table 11(i): Status of Telecommunication Service
Type of Services 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Total Number of Telephone 16971477 21332278 24556572 28105971 31461378 34534280
Telephone Density 63.76 80.51 92.68 106.08 118.75 130.35
PSTN 839710 850610 829413 845028 852069 860583
Mobile 15334413 17996125 22052602 26420645 29762155 32826389
Limited Mobility 1080405 1546697 1672815 838556 845412 845566
GMPCS 1742 1742 1742 1742 1742 1742
Total Internet Subscribers 4944479 6916138 8782936 11569294 13784618 15388770
Internet Density 18.94 26.1 33.15 43.67 52.03 58.08
ADSL Internet 95623 114534 128307 134729 177972 181331
GPRS 4683921 6476136 8341176 11088275 13227781 14788335
CDMA 1X, EVDO 188219 232248 193317 198556 199720 199772
WiMAX 2566 9299 13306 16392 16419
DialUp (PSTN + ISDN) 15079 15380 - 10294 8125 5146
Wireless Modem Optical Fibre
46602 56900 - 52132 47942 56544
Ethernet
Cable Modem 17968 18374 - 71989 106673 141210
VSAT Based Internet - - - 13 13 13
Source: Nepal Telecommunication Authority
* Till first eight months

11.22 The number of landline telephone users and that of mobile phone users
has reached 860,583 and 32,826,389 respectively. Mobile phone facility
has been available in all 75 districts. Almost 90 percent of Nepal’s total
land area has access to mobile phone service. Likewise, the number of
internet service users has reached 15,388,760 with its density of 58.08
percent. Broad band service has reached 72 districts.

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Table 11 (j): Total Number of Distributed Telephones
Service Providers 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Nepal Telecom Limited 2078821 3277667 10903344 12981942 15014434 16921403
United Telecom Limited 76329 95675 508841 524768 526689 526857
NCell Pvt. Ltd. 2813824 3456975 11924552 12905513 14145758 15215701
STM Telecom Sanchar Pvt. Ltd. 5363 5385 3095 2987 2987 2987

Nepal Satellite Telecom Pvt. 149708 149698 150000 366463 371668 371668

Smart Telecom Pvt Ltd 576503 753254 1064998 1322556 1398100 1493922
Others 1742 1742 1742 1742 1742 1742
Total 5702290 7740396 24556572 28105971 31461378 34534280
Source: Nepal Telecommunication Authority
* Till first eight months

National Information Commission

11.23 National Information Commission has been playing various promotional


and curative roles to protect, promote and practice and cause to protect,
promote and practice citizens’ right to as per the Right to Information
Act, 2007.

Print Media (Information Dissemination)

11.24 Department of Information, Gorakhapatra Corporation, Rastriya


Samachar Samiti, (RSS) and Nepal Press Council under the Ministry of
Information and Communications have been disseminating information
through the print media. Gorkhapatra Corporation has been publishing
Gorakhapatra National Daily, The Rising Nepal Daily, Friday Weekly,
Madhuparka Monthly, Yuvamanch Monthly and informing Nepali
citizens as country’s major news agency. Under New Nepal Building
Campaign, news, articles, journals etc are being published in 37 different
national languages.
Department of Information

11.25 The government of Nepal has assigned responsibilities to the Department


of Communication for the management of public information, journalist
and journalism. An incredible revolution in the field of information
technology has called for entire change in the area of information and
journalism. Programs have been implemented with a focus on actualizing
the rights to information of the citizens in real sense, developing
journalism, establishing department of information as information bank
and delivering information on awareness.

195
Table 11 (k): Comparative Statistics of Registered Newspapers
Types Till 2011/12 Till 2012/13 Till 2013/14 Till 2014/15 Till 2015/16 Till 2016/17*

Daily 426 582 599 622 676 676


Half Weekly 24 33 34 32 33 33
Weekly 2213 2536 2594 2657 2803 2804
Fortnightly 408 432 442 451 463 463
Monthly 1981 2014 2061 2115 2214 2214
Bimonthly 237 337 341 349 364 364
Quarterly 518 564 578 590 609 609
Trimesterly 29 31 31 31 35 35
Half Yearly 72 78 80 84 82 82
Annually 83 83 87 88 90 90
Total 5991 6690 6847 7019 7369 7370
Source: Ministry of Information and Communication
*Progress till first eight months

11.26 Newspapers, journals, magazines to be published in Nepali, English,


Nepali/English, Newari, Sanskrit, Hindi, Maithili, Bhojpuri, Urdu,
Limbu, Tibetan, Tharu, Doteli, Tamang, and Rai and other languages are
registered with the Department of Information. Cumulative details on the
number of newspapers/magazines registered are as follows: 6,690
newspapers/magazines were published in FY 2012/13 while in FY
2013/14 it was 6,847, and was 7,019 in FY 2014/15. Similarly, such
numbers stood at 7,369 for FY 2015/16 reaching 7,370 by the first eight
months of the current fiscal year. Of the registered
newspapers/magazines, 68 percent is in Nepali language, 7 percent in
English while 18 percent is both in Nepali and English.

Press Council Nepal

11.27 Press Council Nepal has carried out a number of tasks including creating
environment for the development of healthy and dignified journalism,
setting code of conducts for journalism to prevent press freedom from its
violation, maintaining harmonious relation between the press and the
government of Nepal, maintaining and causing to maintain ethics and
citizens’ dignity. Further, this has carried out monitoring of
communication media. Equipments have been installed so as to monitor
code of journalistic ethics of electronic print media. There has been
provision for the citizen to file the case against any issue relating to the
news published in the newspaper.

196
Rastriya Samachar Samiti (RSS)

11.28 RSS has been delivering relentless services using news-line software
every morning from 6 am to 11 am by providing access of country-wide
operating communication media including newspapers, FM Radio, TV
and electronic online through online service for making every citizen
informed through unbiased and realistic news and information. News are
being collected from all districts on material basis and disseminated with
no interruption. To diversify its services, it has been making national and
international news available with photo service to its service recipients
through news online. In addition, it has been delivering voice clip service
to its FM service recipients as well.

Gorakhapatra Corporation

11.29 Gorakhapatra, the oldest newspaper in Nepal that has been contributing
significantly to the the honored growth of Nepali language, currently
publishing 5 co-publications. It has been established as the only dailies in
the world that is published in greatest number of languages by bringing
out multilingual paged daily newspaper in 30 different languages spoken
in Nepal aside from Nepali language. Similarly, this has set a record in
South Asia as one among the six print media to publish daily newspaper
regularly for more than 100 years.

Nepal Television

11.30 Nepal Television has been televising news, information and various
programs round the clock through three channels (National
Transmission, NTV and News Channel). It has been providing satellite
transmission service by establishing 19 transmission centers.
Transmission coverage of Nepal Television on the basis of population is
72 percent while it is 50 percent on geographical basis while that of NTV
on the basis of population is 40 percent and 25 percent geographically. .
Nepal Television can be viewed across the country and 149 different
countries in the world through satellite.

Radio Nepal

11.31 Transmission coverage of Radio Nepal, which has been providing round
the clock transmission service, stood at 87 percent by population and 90
percent geographically. From language perspective, Radio Nepal has
been broadcasting news, other entertainment and awareness programs in

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21 languages including 8 of them through central transmission relay
station.

Printing Department

11.32 Nepal Gazette which is considered as Nepal government’s official


journal is being published on a regular basis and those from 1951 to 2016
has been electronically documented. Gazettes published so far are made
available online web portals and those published newly could also be
reached within 24 hours through online internet service.

Motion Picture Sector

11.33 The major policy adopted in the motion picture sector include: conduct
or cause to conduct necessary study research for the development and
promotion of motion pictures; award and honor its creators and
performers; encourage private sector for production and release of
standard movies; promote indigenous story, art, culture, language,
literature of the nation through movies.
Table 11 (l) : Status of Motion Picture Sector
Title 2012/13 2013/14 2014/15 2015/16 2016/17*
License awarded for Nepali Feature Film Production (Celluloid,
129 183 143 161 116
Digital and Video)
License for Video Advertisement 50 42 45 37 23
License for Domestic Documentary Production 8 18 19 23 11
Recommendation for Nepali Film Censorship 99 85 94 109 66
Recommendation for the registration of movie making industries 23 29 23 18 14
Recommendation for the foreign producers to bring in/ bring back
instruments for making movies and documentaries on Board’s 45 59 66 78 36
Guarantee
New Licenses for Movie Exhibition (Hivision/Celluloid) 6 7 11 8 11
Licenses renewed for Movie Exhibition (Hivision/Celluloid) 15 45 38 15 10
Recommendations for the censuring of foreign movies through
77 114 96 82 62
Central Censure Committee
Recommendation for the imports of movie show instruments 16 -- 23 25 15
Approved Charity Shows 14 34 21 4 -
Newly issued Movie Distribution Licenses 5 15 5 11 4
Agreement for Movie Exhibition related Industry 2 12 -- 2 3
Recommendation for Foreign Release of Nepalese Movie 5 4 8 3 --
Renewal of Motion Picture Distribution License 1 1 -- -- ---
Source: Ministry of Information and Communication
* For First eight months

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11.34 With a view to develop Nepal as one of the attractive international movie
centers, occupancy right on the land of about 76 Ha at Lakuri Danda of
Dolakha has been obtained to construct well equipped film city. In
addition, Preparatory works for the master plan of film city are in
progress. Task of equipping box offices with e-ticketing systems at
movie theaters has been commenced. Industrial Policy, 2010 has
regarded motion pictures as service oriented industry.

Post Earthquake Reconstruction

11.35 Works are being pushed through Nepal Telecom for the extension of
broad-band service to educational and health institutions, and to
Gaunpalika (Village Committees) in earthquake worst affected 4 districts
of Rasuwa, Nuwakot, Kavrepalanchowk and Sindhupalchowk. Tender
process for the extension of such facility to the rest of seven (7) worst
affected districts including Gaunpalika has been completed, while works
are being carried out in various packages for extending such facility to
other 61 districts.

Science and Information Technology

11.36 Programs like genetic (DNA) testing facility within the country;
extension of forensic science services; strengthening of research labs;
study of tree cycle; and reducing the trend of brain drain are being
carried out in the science and technology sector. Objectives of such
initiations have been towards contributing to science and technology
sector through enhancement and promotion of scientific knowledge;
supporting good governance through electronic government; maximizing
the use of information technology by reaching out to the rural level; and
developing the human resource needed in the information technology
sector. Besides, activities are being carried out on flow of information
and technology transfer required for various industries, education and
research oriented institutions. . The Ministry of Science, Technology,
and Environment is engaged in effective implementation of Information
Technology Policy 2010; National Atomic Policy, 2007; Electronic
Transactions Act, 2006 and Regulation 2007; and creating favorable
working environment within the country for its scientific human resource
thereby enhancing economic and social development of Nepalese people.

11.37 A Draft Legislation on Radio Active Materials has been prepared for
regulating production, utilization, storage and trading of such materials to

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fill up the gap of the absence of effective regulatory provision on this
front.
Table 11 (m) : Accomplished Information Technology Related Tasks
S. No. Tasks Number Unit
1450
1 DNS Registration of Government Agencies Agency-wise
596
2 Web and Application Hosting Agency-wise
141
3 Government Email Service Agency-wise
55
4 Internet Service within Singhadurbar Premises Agency-wise
64
5 Server Collocation Services Agency-wise
Availability of E-Gate Pass System at Singhadurbar 49
6 Agency-wise
7 Training provided related with Information Technology 2700 Trainee
Source: Ministry of Information and Communication
*First Eight Month

11.38 Employees of all government entities have been imparted training to


enable them for updating services and information to be delivered
through national portal and arrangement has been made to upload
information through the concerned entities. Likewise, government
interoperability framework guideline has been executed for the operation
of national portal. Disaster Recovery Center in Hetauda has been
constructed with a view to protect government information remained at
GIDC even during natural disaster and other emergency situations which
is now in the state of operation.

Challenges

11.39 Plethora of issues like difficulties in the management of multiyear


contract/tender; failure on timely delegation of authority;, complexity in
the implementation of Public Procurement Act relating to road
construction;, delay in conducting environment impact assessment;
inability of contractors to complete project on time; difficulty in land
acquisition; failure to complete project on time; frequent transfer of
employees; delay in securing approval on clearing of trees; obstructions
in supply of construction materials; and compulsion of performing tasks
of carrying out constructions of even smaller projects in addition to
central level and strategic roads from the ministry and its entities under
it have been posing challenges for sustainable and broader infrastructure
development.

200
11.40 There remains a challenge to achieve both qualitative and quantitative
growth in motion picture and telecommunication sectors. Similarly, task
of developing infrastructure to expand optical fiber network to all district
headquarters and extend the use of information technology to schools,
health posts, and government offices for national development is another
challenge.

11.41 Tasks of extending national transmission of Nepal Television and


satellite transmission of NTV Plus amid country’s diverse geographical
structure and also transmit nationally while competing with the private
sector operated television channels have added to the challenges.
Similarly, the task of digital switch over from analogue system of
production, editing, and transmission of television programs by 2017
through its own internal resources is a daunting challenge.

11.42 Creating conducive environment to utilize domestic youths’ skills and


knowledge within the country itself and making sustainable and optimum
utilization of natural resources through the expansion of the use of
science and technology have posed a challenge. It is a daunting task to
bring effectiveness in the services delivered through postal service
department by enhancing service delivery in a professional manner
through the development of online tracking system and diversification of
postal services.

11.43 Gorakhapatra, Nepal Television and Radio Nepal that stand as a national
communication media need to compete with the private sector run
communications media while broadcasting and publishing news and
other programs in various languages with a sense of national
responsibility is a daunting task.

11.44 Developing capacity to carryout security printing related tasks within the
country itself is a challenge.

11.45 Managing development and ensuring the resources for the development
of infrastructure required in participation of federal, provincial and local
levels for the management of federalism pose a big challenge.

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12. Good Governance, General Administration, Peace and Reconstruction

Ensuring equal and easy access of all citizens to public services and facilities
by making public administration clean, impartial, transparent, corruption
free and accountable towards public is the good governance. Procedures and
systems for good governance including Good Governance (management and
operation) Act, 2007 and Regulation 2008, Anti-Corruption Work Plan,
Hello Sarkar (Government) as well as grievance handling and Immediate
Reform Work Plan, 2015 are in effect. However, failure of public service to
win people’s trust and confidence still persists. Hence, public services in
federalism need to be rendered through technology friendly and high-morale
human resource for strengthening of good governance.

Good Governance

12.1 Implementation of Good Governance (Management and Operation) Act,


2007 and Regulation 2008 and Immediate Reform Work Plan 2015 with
the objective of maintaining equitable governance system operated in
people’s participation ensuring transparency, accountability and rule of
law has provided support to promoting good governance.Though all
citizens are equal in using the law, marginalized, minor and backward
citizens have been participated in every activities of state through
protection.
12.2 Though all citizens are equal before the law, marginalized, minority, and
citizens left behind are getting involved in every activity of the State
through the medium of protection.
12.3 Works are being performed through a high level Federalism
Implementation and Administration Restructuring Director’s Committee
and Federalism Implementation and Administration Restructuring
Coordination Committee formed as per the constitutional provision for
the implementation of federalism and restructuring of administration by
making necessary policy, legal, structural arrangements together with
those of human resource, financial management, and system network.
12.4 Basis for overall restructuring has been prepared based on the report
prepared upon detailing individual and common list of rights of federal,
provincial, and local levels, as per the constitution of Nepal and
appendices 5, 6, 7, 8, and 9 of the Constitution approved by the Council

202
of Ministers of the Government of Nepal. Accordingly, task of preparing
framework for the implementation of federalism and administration
restructuring has been pushed forward in order to make arrangements of
organizational structure and human resource together with physical and
financial resources as necessitated by federal, provincial, and local level
governments.
12.5 Continuity has been given to the process of addressing the most
important grievances through the desk of Hello Sarkar. A total of 59,056
complaints, suggestions and information have been received in the first
eight months of current fiscal year. The rate grievance handling has stood
at 75 percent. Its Facebook webpage has come into operation since June
8, 2015. With a view to make this program more effective, grievances are
being collected through twitter since January 11, 2016 by opening twitter
account which have been incorporated in the monthly progress report of
Hello Sarkar. In addition, programs are set for handling grievances
through mobile APPS system in near future.
12.6 Anti-corruption work plan, result based work performance management
system in national pride projects, work performance evaluation
committees with Department heads, Hello Sarkar and Grievance
Handling ; various monitoring programs from central to district levels
and civil service employees’ code of conduct related programs are being
operated with augmented effectiveness.
12.7 Panel formed to monitor and inspect for effective implementation of
“Immediate Implementation Work Plan, 2016 of sustainable economic
development for prosperous Nepal has already submitted its report in
areas related to subsequent to the completion of monitoring and
inspection works after monitoring and inspecting areas related to
development and construction, service delivery, revenue mobilization,
supply management and overall economy.
12.8 Information technology related subject has been included in the
curriculum of Public Service Commission while applications for the
entrance examination of all positions are made available through online
electronic system with a view to extend the use of information
technology in government offices. Trainings to be imparted through
various training providing institutions are made time relevant and
practical to make arrangement of training for all within the stipulated
time.

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12.9 Work plan has been prepared and approved to implement “Government
for Poor” program. Preparations are made with the priority to facilitate
poor citizens in service delivery by distributing identity card to poor
household families.
12.10 Installation of Land Records Information Management (LRIMS)
software in some land reform offices, and Electronic Driving License and
Vehicle Registration (EDLVRS) software in transport management
offices have been started together with online services for making
delivery of services more related to the people like citizenship, passport,
land reform, foreign employment, driving license simple, transparent,
and efficient. In addition, smart driving license cards are being
distributed from the Office of Transport Management, Bagmati.
12.11 Policy decision is in effect for individuals receiving pensions as per the
Nepal’s prevailing law that if he/she is appointed in position of public
benefits and if in-service employees enjoying dual facilities, one has to
decide within a month to opt for one of the facilities with higher value,
and if one is enjoying double facilities, the pension certificate will be
issued to such individual only after depositing the excess amount in the
consolidated fund.

Local Good Governance

12.12 As per constitutional provision, all local bodies have been transformed to
a total of 744 local levels including 481 village councils, 246
municipalities, 13 sub metropolitan cities and 4 metropolitan cities; and
those 75 district development committees into district coordination
committee since March 10, 2017. Such local bodies have been delivering
services and carrying out development works as newly restructured local
levels since this date.
12.13 As envisaged by the current constitution of Nepal, good governance is
considered as a major strategic tool to establish a social justice based
society by distributing the dividend of democracy among the masses.
Election related works in 744 local bodies has been moved forward so as
to organize and institutionalize the practice of democracy from the lower
level.

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General Administration and Service Delivery
Local Administration

12.14 Detailed report of work list of organization, state and local body as per
schedule of constitution has been prepared for managing human,
economic and physical resources by carrying out federalism favorable
functional analysis of services being rendered through public
administration for federalism management and implementing after
formulating necessary framework as well as structure of federalism
favorable federal unit.
12.15 The study work has been commenced on the effect of positive non-
discriminatory policy undertaken to make the civil service more inclusive
by increasing participation/representation of people from all castes, class,
gender and sector in this service.
12.16 Report has already been submitted by high level Administration Reform
Implementation and Monitoring Committee in order to identify
implementing body by selecting relevant aspects of suggestions of
Administration Reform Council and the Committee offered at several
occasions.
12.17 Drafts have been prepared including legal base for implementation of
citizen’s charter with provision of compensation in fifth amendment bill
of civil service act, 1992 for institutionalizing and lengthening extended
office hour to expand and ease accessibility of general public in public
service as well as for making civil service more transparent and
accountable; for institutionalizing and extending citizen’s charter with
provision of compensation.
12.18 Works of making employee responsibility clear has been brought into
implementation by monitoring job description provided to employees
during initial appointment/transfer and removing dual meaning and self
discretionary authority prevalent in act/regulation.
12.19 Pilot Office Standard 2016 has been prepared with a view to establish
one pilot office in every district at service providing government offices.
Interaction program was organized for strategic-communication related
journalists and experts so as to increase citizen trust towards government
services and overall administrations.
12.20 Inclusion friendly working environment and service delivery system
related policy 2016 is in the process of formulation to build gender and
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inclusive friendly work environment in civil services for effective and
practical implementation of inclusive and participatory democracy as
guaranteed by the constitution of Nepal.
12.21 A draft on statute required for the management of federalism has been
prepared in line with article 302 of the constitution of Nepal.
12.22 Work Performance Motivational Fund Operation Manual is in the
process of obtaining approval for making civil service employees more
dedicated towards their respective works.
12.23 Operational guideline, 2016 of National Emergency Operation Center
has been formulated and implemented. In addition to this, emergency
operation centers have been established and brought into effect in all
regional administration offices and 49 district administration offices
Regional warehouse has been brought into operation in all regional
administration offices.
12.24 By November 30, 2016, a total of 107,458 refugees have been resettled
in third countries under third country resettlement of Bhutanese refugees
program.
Table 12 (a) : Number of Bhutanese Refugees Resettled in Third Countries
S. Total
Country
No. Population
1 Australia 6148
2 Canada 6765
3 Denmark 875
4 Netherlands 329
5 New Zealand 1067
6 Norway 570
7 United Kingdom 358
(UK)
8 United States (USA) 91346
Total 107458
Source: Government of Nepal, Ministry of Home Affairs.

12.25 A total of 1.5 million criminal data has been collected in criminal
information record system (CIRS) till now and preparation of
establishing central criminal data center in under way for managing such
data.
12.26 By review period, narcotics including 1,613 Kg of marijuana/cannabis,
895 Kg of hashish, 2 Kg of heroin, 60 Kg of Opium, 5Kg of cocaine,

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74101 tablets, 67,266 units of ampus, 2,979 bottles of corex, 41 units of
syringe and 7 Kg of poland have been confiscated.
12.27 The number of people charged for violating traffic rules with drink-
driving case reached 25,497 while number of vehicles penalized for
traffic offence remained at 1,107,257 across the country.
Department of Civil Personnel Records
12.28 Property details of employees has been kept by arranging a separate
pigeon hole rack to systematize property detail of employees whereas
files maintained at central filing system are being exchanged using bar
codes.
Table 12 (b) : Detail of Civil Employees
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
S. No. Description
2013/14 2014/15 2015/16 2016/17*
1 In-Service Civil Employees 79653 80187 83245 83649
Inside Kathmandu Valley 21550 20659 21116 21603
Outside Kathmandu Valley 58252 59528 62129 62046
Officer 14501 19493 21097 22286
Assistant 29115 40591 43092 43547
Non Class 20317 20103 18678 17816
2 Seat Roll Registration 1555 5096 5480 3531
3 Retired Civil Servants 1824 3192 2855 2382
4 Gratuity 93 176 191 118
Source: Ministry of General Administration
* Of the first eight months

Table 12 (c) : Detail of Civil Employees


S.No. Posts Male Female Total Male % Female % Total %
1 Class 54573 7685 62258 87.66 12.34 74.43
Gazetted 13369 1465 14834 90.12 9.88 17.73
Special Class 71 0 71 100 0 0.08
First Class Gazetted 548 31 579 94.65 5.35 0.69
Second Class Gazetted 3215 179 3394 94.73 5.27 4.06
Gazetted Third Class 9534 1255 10789 88.37 11.63 12.9
Special Class (Chief
Secretary)
1 0 1 100 0 0

Non-Gazetted 24792 4816 29608 83.73 16.27 35.4


Non-Gazetted First
Class
14501 2388 16889 85.86 14.14 20.19
Non-Gazetted Second
Class
9235 2328 11563 79.87 20.13 13.82
Non-Gazetted Third
Class
864 96 960 90 10 1.15
Non-Gazetted Fourth
Class
181 4 185 97.84 2.16 0.22
Non-Gazetted Fifth
Classs
11 0 11 100 0 0.01

Class Less 16412 1404 17816 92.12 7.88 21.3


2 Posts 12488 8903 21391 58.38 41.62 25.57

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S.No. Posts Male Female Total Male % Female % Total %
Health 12206 8898 21104 57.84 42.16 25.23
Officer 12 th 0 1 1 0 100 0
Officer 11 th 90 16 106 84.91 15.09 0.13
Officer 10th 126 19 145 86.9 13.1 0.17
Officer 9 th 162 47 209 77.51 22.49 0.25
Officer 8th 515 162 677 76.07 23.93 0.81
Offier 7th 652 172 824 79.13 20.87 0.99
Officer 6th 3829 1374 5203 73.59 26.41 6.22
Senior 5th 126 171 297 42.42 57.58 0.36
Assistant 5 th 3397 2707 6104 55.65 44.35 7.3
Assistant 1 st 0
Assistant-2 nd 5 40 45 11.11 88.89 0.05
Assistant 3rd 414 1013 1427 29.01 70.99 1.71
Assistant 4 th 2890 3176 6066 47.64 52.36 7.25
Justice 282 5 287 98.26 1.74 0.34
Chief Justice,
Supreme Court
3 0 3 100 0 0
Acting Chief Justice
Supreme Court
0
Chief Justice-
Appellate Court
1 0 1 100 0 0
Appellate Court
Justices
50 3 53 94.34 5.66 0.06
Appellate Court
Additional Justices
3 0 3 100 0 0

District Court Justices 217 2 219 99.09 0.91 0.26


District Court
Additional Justices
8 0 8 100 0 0.01

Total Number 67061 16588 83649 80.17 19.83 100


Source: Ministry of General Administration
* Of the first eight months

12.29 By the first eight months of fiscal year 2016/17, the total number of
employees working in civil service employees has reached 83,649 of
which 67,061 are male while 16,588 are female.
Human Resource Development
12.30 Training on various subjects provided through institutions like Nepal
Administrative Training Academy, Employees’ Training Academy,
Local Development Training Academy, Revenue Administration
Training Center, Postal Training Academy, Central Cooperative Training
Academy, Foreign Affairs Studies Academy, Judicial Service Training
Center, National Judicial Academy, National Health Training Center,
Educational Human Resource Development Center, Agriculture Training
Directorate, Directorate for Livestock Service Training and Extension,
Land Management Training Center and 5 Regional Forest Training
Center has supported in enhancing knowledge, skill, capacity and
efficiency of civil service employees.

208
12.31 Preliminary report has been obtained from consultant after their
appointment for study to reorganize such scattered government training
center in the process of administrative reconstruction.
Table 12 (d) : Detail of Training Programs Conducted Through Nepal
Administrative Staff College
Targe Prgress
Fiscal
No. of No. of No. of No. of Remarks
Year Program Program
Program Trainee Program Trainee
Regular (Training) 74 1735 Regular 56 1320
2014/15 Paid (Training) 56 1120 Paid 30 623
Total 130 2855 Total 86 1943
Regular (Training) 46 1184 Regular 43 1196
Paid (Training) 14 260 Paid 21 466
Total 60 1344 Total 64 1662
Research 10 Research 9
2015/16 Publication 8 8
NASC Discussion NASC
Series 12 300 Discussion 9 352
Series
Regular (Training) Regular
23 546 (Training)
22 603
2016/17‫٭‬ Paid (Training) 12 359 Paid (Training) 15 370
Research 10
Physical Structure
Maintenance and 19 13
Development
NASC Discussion NASC
Series 8 200 Discussion 9 676
Series
Other
(a) Training, 2
Appointment and 4
Promotion
(b) Publication 6
(c) NASC Day and 5
Networking Meeting 2
with Training
Institutions 2
Source: Ministry of General Administration
* Of the first eight months

Right to Information
12.32 National Information Commission which was established with main
objective of disseminating information through public entities with ease
as per Right to Information Act 2007 has appointed Information officer
in all public entities. By the end of fiscal year 2014/15, about 2000
information officers were appointed while about 3000 information
officers have been appointed in the first eight of current fiscal year
2016/17.

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12.33 The number of appeals, complaints and applications in FY 2008/09 in the
Council’s establishment year were only 12. The trend has developed of
common citizens seeking information related to the self as well as that of
public interest whereas only the media campaigners used to seek
information in the past. General public has been realizing the importance
of information with progression of time. In fiscal year 2014/15 only the
number grew so big reaching 777, of which 765 were cleared with just 12
remaining to be attended.
Table 12 (e): Number of Appeals, Complaints and Applications Filed (FY2008/09-
FY2015/16) at the Council
No. of Appeals, Complaints and
Fiscal Year Clearance
Applications
2008/09 12 11
2009/10 39 29
2010/11 47 22
2011/12 136 90
2012/13 260 199
2013/14 470 409
2014/15 777 765
2015/16 678 677
2016/17* 385 378
Total 2804 2580
Source: National Information Council
* first eight months

12.34 Of the total 2,701 cases filed at the Commission, 2,419 of them have
been settled between FY 2008/09 and FY 2015/16 which is 91.70
percent of total cases. Sector-wise status of application, complaints and
appeals filed with regards to making the right to information in practice
during fiscal year 2015/16 is as under.
Table 12 (f): Sector-Wise Applications, Complaints and Appeals Filed in FY 2015/16
Complaints/ Number
Sectors
25
Education

Administration and 374


Communication
230
Economic

Infrastructure 9
development
Others 40
Total 678
Source: National Information Council

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Peace and Reconstruction

12.35 With the objective of facilitating implementation of peace accord, local


peace committees are in operation in 75 districts, previous 217
municipalities and 2,810 VDCs so far. Reconstruction and rehabilitation
program is carrying out two sectors namely relief and reconstruction.
Distribution of relief, compensation, and financial supports to be
provided by the government of Nepal to citizens on certain occasions are
being done through these programs in a transparent and judicious
manner.
Table 12 (g) : Status of Relief, Financial Support, Reconstruction, and
Rehabilitation

2016/17*
2012/13

2013/14

2014/15

2015/16
Total
Total
till
Program Number
Date
Relief package @ Rs. 100,000 to Claimants of
17886 100 174 22 0 0 14398
Deceased Persons
Relief package w@ max Rs. 500,000 to
12500 0 0 11302 0 800 12102
Claimants of Deceased Persons
Relief package @ max.Rs. 500,000 to the
1400 0 0 1162 0 261 1423
claimants of forcibly disappeared persons
Financial Assistance to the victims of damaged
17484 1045 109 95 30 0 9154
personal properties
Financial Support @Rs. 25,000 to the claimants
3142 905 183 12 5 62 3142
of Kidnapped persons
Financial Support @ Rs. 100,000 to the claimants
1530 42 47 10 0 0 1530
of forcibly disappeared persons
Financial Assistance to the maimed and injured
8191 2996 1810 166 5 1 8191
persons during conflict on percent basis
Sustenance Allowance to the dependent
families of Martyrs, Injured Persons During
Historical People’ s Movement
a) Monthly sustenance allowance to 26 26 26 26 26 26 26
martyrs’ families
b) Monthly sustenance allowance to 30 28 28 28 28 30 30
injured people
c) Scholarship for children of injured 43 39 41 38 38 38 43
people during People’s Movement
Financial support @Rs. 150,000 to the claimants
of persons died in armed conflict even after - 2 1 0 0 0 59
comprehensive peace accord
Livelihood allowance for persons with body parts
mutilated by more than 51% ( With First 552 and - 744 744 744 744 744 744
Special 184 and additional 64)
Financial support / Rehabilitation with Rs. 60,000
annually to the orphan children losing both the 620 620 620 620 493 370 620
parents during armed conflict
Financial support with additional 25,000 to the
wives of forcibly disappeared persons 0 111 38 2 0 0 651

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2016/17*
2012/13

2013/14

2014/15

2015/16
Total
Total
till
Program Number
Date
Reconstruction of damaged infrastructures 9409 255 209 280 158 247 3311
Projects run through Development for Peace
4368 47 32 86 162 310 646
Program
Conflict Affected Area Special Program 603 4109 80 - - - 493
Source: Ministry of Peace and Reconstruction
*First eight months

12.36 Of 9,409 physical structures under programs of constructing conflict


affected local level government offices, school buildings, VDC
buildings, drinking water project, structures of committee and authority
as well as model town, park etc supporting to maintain sustainable
people, construction work of 3,311 physical structure has been
completed.
12.37 Of the total 4,368 physical infrastructures like school building,
monastery, temple, park, community building, drinking water, road
supporting to achieve sustainable peace at local level through
development construction works, construction work of 646 physical
structures have been completed.
12.38 So far, Peace fund has implemented program/project in three phases.
After completion of first phase program (2007-2010) and second phase
program (2010-2014), third phase program (2014-2017) is now in
implementation. During this period, a total of 65 projects were
implemented in first and second phase of which 62 has been completed
whereas 11 projects including 7 new projects of third and final phase are
now in implementation.
12.39 In the context of completing the outstanding tasks with regard to peace
process, a total of 580,52 complaints filed at Truth and Reconciliation
Commission have been registered in the computers where investigation
processes is underway. Preliminary and second phase of investigation of
the total 2,963 complaints against enforced disappeared persons filed
with Investigation Commission have been completed and which have
been forwarded for detail investigation.
12.40 The tenure of Truth and Reconciliation Commission and Commission for
Investigation on Disappeared Person period has been extended by 1 year.

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12.41 About 4,700 conflict affected children of 20 districts have been provided
assistance in education, health an livelihood sectors through Central
Child Welfare Committee under rehabilitation service program.

Challenges

12.42 Managing and enhancing capacities of civil service employees as per the
federal structure and formulating and revising statutes and policies
required at the national level in linee with the structure is a challenging
task.
12.43 Task of providing continuity to current service delivery practices at all
the three levels while making it gradually more effective until the State
restructuring gets fully functional remains a challenge.
12.44 It is a challenging task to formulate and implement Integrated National
Ethics and Loyalty Policy to enhance loyalty and honesty among the
civil service employees towards their services and work performance.
12.45 Task of boosting morale of civil service employees by making
employees’ services and facilities time relevant is challenging.
12.46 Maintaining sustainable peace by exploring, investigating, and
reconciling facts and truths involved in serious human right violation and
crime against humanity caused during the armed conflict remains a big
challenge.

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13. Social Sector
The level of social development can be gauged by the status of education,
health, sports, women and children, social security, drinking water and
sanitation sectors. The concept of human development emphasizes more on
richness and happiness of human lives than on economic prosperity. As per
UNDP published Human Development Report 2016, Nepal stands at 144th
position with 0.558 Human Development Index (HDI) among 188
countries.It is lower than OECD’s average of 0.887, SAARC country’s
average of 0.621 and neighboring countries China and India’s average
scores of 0.738 (90th Rank) and 0624 (131st place). Likewise, its average
HDI is higher than Least Developed Countries (LDCs) average of 0.508.
Nepal is yet to make further improvements in the sector of human
development, which is measured on the basis of education, health and
average life expectancy. The comparative HDI between Nepal and other
countries are presented in the table below.
Table 13 (a) : Comparative HDI Status (Ranks and Values) between Nepal and
Other Countries
Average Per Capita
Human Gender expected
Life National
Countries/Regional Groups/Integration Development Development years of
Expectancy Income (In
Index/ Place Indicator schooling
(At Birth) USD)**
World 0.717 0.938 71.6 12.3 14447
OECD 0.887 0.974 80.3 15.9 37916
East Asia and Pacific 0.720 0.956 74.2 13 12125
Europe and Middle Asia 0.756 0.951 72.6 13.9 12862
SAARC 0.621 0.822 68.7 11.3 5799
LDC 0.508 0.874 63.6 9.4 2385
China 0.738/90th 0.954 76 13.5 13345
India 0.624/131 th 0.819 68.3 11.7 5663
Nepal 0.558/144th 0.925 70 12.2 2337*
** As per World Bank’s PPP based calculation
Source: Human Development Report,2016 (UNDP)

13.1 During fiscal year 2015/16, the ratio of expenditure incurred in the
sector of education, health and social security to GDP was 4.04 percent,
1.51 percent and 0.90 percent respectively. Such expenditure was 3.77
percent, 1.39 percent and 0.71 percent respectively during fiscal year
2014/15. Similarly, a total of 15.09 percent, 5.66 percent and 3.35
percent has been expended in the sector of education, health and social
security respectively in comparison to total budget expenditure during
fiscal year 2015/16. Such ratio stood at 15.02 percent, 5.54 percent and
2.28 percent respectively during fiscal year 2014/15.

214
Table 13 (b): Expenditure Trend of Education, Health and Social Security (in
Percentage)
Expenditure in Social
Expenditure in Education Expenditure in Health
Security
Ratio to Ratio to Ratio to
Fiscal Year Ratio to Total Ratio to Total Ratio to Total
GDP Budget GDP Budget GDP Budget
Expenditure Expenditure Expenditure
2011/12 4.06 18.31 1.50 6.75 0.69 3.12
2012/13 3.68 17.41 1.29 6.10 0.70 3.29
2013/14 3.96 17.89 1.35 6.10 0.64 2.88
2014/15 3.75 15.02 1.38 5.54 0.70 2.82
2015/16 4.04 15.09 1.51 5.66 0.90 3.35
Source : Ministry of Finance

Chart 13 (a) : Share of Education, Health and Social Security in Total Budget

Source : Ministry of Finance

13.2 As per the commitment of Nepal to achieve Sustainable Development


Goal (SDGs) by 2030, investments are to be raised in order to reduce
poverty, eradicating hunger, provide quality health service and education
and drinking water to all, attain gender equality and achieve inclusive
development by reducing disparity and promoting social justice and
peace.

Education
13.3 The objective of education is not only limited to skill development of
general literacy among citizens. There has been huge impact of education
in socialization and raising group recognition. Apart from this, education,
as a basis for social uplift of different strata of the society, plays a key
role in boosting social dynamism and promoting equity. In addition to
these social objectives, perspective of viewing education as means of
human resource development by relating it with economic development
of society has begun to gain priority in recent times. Education has

215
remained as an indispensible means to achieve higher GDP growth as
availability of skilled and productive citizens will be increased through
education. The effect of result obtained through appropriate investment
made by the state in education sector as per the expectation of
multidimensional roles of education in country’s overall development.
Chart 13 (b) : Conrtibutaion of Education Sector to GDP

13.4 As per the preliminary estimate, the contribution of education sector to


GDP is likely to stay at 7.23 percent in the current fiscal year against that
of 6.83 percent in the previous fiscal year 2015/16. While observing the
contribution of education sector to GDP for last 5 years, such
contribution had stood at 5.79 in FY 2012/13 which started to grow
gradually and reached 7.23 percent during fiscal year 2016/17. Similarly,
the education sector that had registered growth of 7.04 percent last year
is preliminarily estimated to drop and rest at 4.21 percent in the current
fiscal year.
13.5 Educational policies and programs have been brought into
implementation with the objective of preparing competent, competitive
and moral as well as dedicated toward national interest human resource
by making education scientific, technical, commercial, skill oriented and
employment oriented. Programs have been put forward in order to
promote as well as monitor private sector’s investment and to make
educational management of private sector service oriented by increasing
state investment in education sector.
13.6 Plan and programs of the education sector needs to be aimed at
delivering education service by preparing educational standard on the

216
basis of federal structure; completing pending works on MDGs,
achieving SDGs, and helping to attain the target of graduating to middle
income country level by leading through the people’s welfare state with
social justice as envisaged by the 14th periodic plan.

School Education
13.7 The Constitution of Nepal has acknowledged the system of providing
free and compulsory education at the basic level, and free education at
the secondary level as fundamental right. Similarly, the Constitution
mentions of providing free education as per law to disabled, deprived and
Dalit community people. Education Act (Eighth Amendment), 2016 has
considered 13-year education as school education from kindergarten to
class 8 as basic education, and from class 9 to class 12 as secondary
education.
13.8 Various programs are in operation since long ago in order to implement
constitutional provision, ensure equitable access to education and
enhance educational relevancy as well as to bring institutional
competence. School Sector Development Program (2016-2024) has been
brought into implementation from current fiscal year 2016/17. As a result
of these efforts, notable improvement has been made in access to
education sector while gender equity is achieved in enrollment rate.
13.9 As per the statistics of Academic Session 2016, net enrollment rate at
primary level has reached 96.9 percent (girl student 96.6 percent), 80.9
percent at basic level (grades 6-8) and 59.8 percent at secondary level
(grades 9-10). Despite remarkable progress made in the area of access to
education, access of economically vulnerable community children to
education is yet to be ensured and quality of education could not be
improved as expected either. Further, the current enrolment rate of 94.7
percent at grade 1 suggests that efforts are yet to be made for making
everybody to get enrolled at the right time. In addition to this, students
tend to discontinue their studies basically after passing out secondary
level and therefore efforts are to be made to retain such students in this
direction as well. School dropout children could not be provided skill
enhancement training as per their interest and orient them towards
productive employment.

217
Table 13 (c) : Achievements based on Educational Indicators (Percent)
Indicators Unit 2012/13 2013/14 2014/15 2015/16 2016/17
1. Enrollment in Grade 1
New enrollment in Grade 1 with kinder garden
Percent 55.6 56.9 59.6 62.4 64.7
experience
Gross Enrollment Rate Percent 137.7 141.8 137 136.7 133.5
Net Enrollment Rate Percent 91.2 91.6 93 93.9 94.7
2. Net Enrollment (Easily Visible Enrollment Rate)
Elementary Education Development/Pre-Primary Percent 73.7 76.7 77.7 81 82.9
Basic Education (1-8) Percent 120.1 115.7 117.1 120.1 122.4
Secondary Education (9-12) Percent 51.7 50.4 51.6 57.7 59.6
3. Net Enrollment Rate
Primary Education (1-5) Percent 95.3 95.6 96.2 96.6 96.9
Basic Education (1-8) Percent 87.5 86.3 87.6 89.4 91
Secondary Education (9-12) Percent 32.4 33.2 34.7 37.7 38.9

4. Teachers W/ Required Qualification and Trainings


Basic Education Percent 91.5 92.5 93.7 95.5 97.4
Secondary Education Percent 90.7 91.5 93 95.3 95.5

5. Teachers with Required Certification


Basic Education Percent 96.9 98.1 98.6 98.8 98.8
Secondary Education Percent 98 98.7 98.9 99.3 99.3

6. Student/Teacher Ratio (Approved Teacher Posts of Community Schools and Teachers Working on Relief Teachers Grant System)
Basic Education Ratio 42.0 41.0 41.0 40.0 40.0
Secondary Education Ratio 31.0 31.0 30.0 39.0 39.0

7. Repetition Rate
Grade 1 Percent 19.9 17.5 15.2 13.9 14.3
Grade 8 Percent 6 4.9 4.5 3.9 4.3

8. Continuation up to Grade 5 and 8 Rate as per Cohort Method


Grade 5 Percent 84.2 85.4 86.8 87.5 87
Grade 8 Percent 69.6 72.1 74.6 76.6 75.9

9. Coefficient of Efficiency
Basic Education Ratio 0.77 0.71 0.73 0.76 0.75
10. Achievement through Training
Grade 5 Percent Mathematics- Mathematics- Mathematics- Mathematics
53 53 53 48
-
Nepali- 60 Nepali- 60 Nepali- 60 Nepali46
English- 54 English- 54 English- 54 English47
Grade 8 Percent Mathematics Mathematics Mathematics Mathematics
43 35 35 35
44**& 63*
Nepali49 Nepali48 Nepali48 Nepali48
Social 49 Social41 Social41 Social41
11. Pass Rate
SLC Percent 41.57 43.92 47.43 *
Higher Secondary (Grade 11) Percent 39.94 39.8 49.2 47.26 51.1
Higher Seconeary (Grade 12) Percent 43.39 44.29 44.09 44.09 52.81
12. Literacy Rate
Age Group (15-24) Percent - - - - 88
Age Group (Above 6 Years) Percent 65.9 65.9 65.9 65.9 65.9
Age Group (Above 15 Years) Percent 56.5 56.5 56.5 57 57
13. Gender Partiy Index (GPI) based Literacy (Above 15
Ratio 0.62# 0.62# 0.62# 0.76 0.76
Years)
Gross Point Average (GPA) implemented since academic year 2016.
Source: Ministry of Education/ Central Bureau of Statistics. #NLSS Report 2010/11
*First eight months

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School Management
13.10 Handing over of school management and authority to local community
for the operation of community school in stakeholders’ direct
involvement came into practice since fiscal year 2002/03. During fiscal
year 2007/08, management of 3,308 schools (highest number ever
recorded) was handed over to the community while the situation
thereafter has not been satisfactory. A total of 12,986 schools have been
managed by community across the nation including 232 schools of FY
2013/14. No progress could be made though target was set for managing
300 schools through community during fiscal year 2014/15.
13.11 Program of handing over school management responsibility to the
concerned communities could not be continued from FY 2015/16 owing
to several factors including lack of capability at the local level, absence
of elected representatives at local level, inability to prepare stakeholders,
unwillingness of teachers’ associations to accept the task of handing over
school management to local communities among others. With the
implementation of federalism, major responsibility of school
management will rest on the local level. Hence this program needs to be
reassessed.

Pre-Primary Child Education Program


13.12 As per the policy of expanding child development centers based on
community and school, a total of 9,73,413 children has been benefitted
through 30,448 pre-primary child development centers by the first eight
months of fiscal year 2016/17. In the context of pre-primary child
education being included in the school education structure by the Eight
amendment of Education Act 2016, it is imperative for necessary
management of pre-primary child education accordingly.
13.13 As a result of past effort, total enrollment rate of pre-primary children
development reached at 82.9 percent while number of children enrolled
in class 1 with experience of child development center which was 62.4
percent in previous academic session 2015 rose to 64.7 percent in current
academic session.

219
Chart 13 (c) : Percentage of Children with Early Childhood Development
experience among students entering Grade 1

Scholarship Program
13.14 Provision for various scholarships has been made at different levels of
school education with the objective of expanding equitable access
improving the rate of retention, and broadening meaningful teaching
opportunities of students. Schools have been providing annual
scholarship to students selected based on specified standard of education
sector. Under this, a total of Rs. 2.05 billion has been distributed as
scholarship in the first eight months of fiscal year 2016/17 to school
children of Martyrs, conflict victims, dalits, marginalized and endangered
ethnic people.

Inclusive Education to Children with Disability


13.15 Government of Nepal has classified disability into seven categories
namely hearing related disability, vision related disability, mental
disability, vocal related disability, hearing and blind related disability,
and multiple disabilities. According to national population census data,
persons with disability are 513,321 (1.94 percent) in the total 26.49
million population. Similarly, as per living standard survey 2011,
disability is found in 3.6 percent of total population.
13.16 The constitution of Nepal has guaranteed the rights of children with
disability such as providing free education, Braille script for children

220
with vision impairment, imparting education in sign language to children
with hearing impairment while there has been clear provision in the
revised Education Acts for the operation modality of special and
inclusive education. Inclusive Education Policy, 2016 has been issued for
persons with disability.
13.17 A total of 74,829 disabled children including 2,034 from early childhood
development level, 63,400 children from basic level (grade 1-8), and
9,395 children from secondary level have been studying through various
programs relating to children with disability.

Educational Human Resource Development


13.18 With establishment of educational human resource development center,
various programs are in operation to make necessary knowledge skill
equipped in order to enhance capacity of human resource engaged in
school education related agencies as well as to increase efficiency and
effectiveness in the designated work area as per changing scenario.
Teacher training programs have been conducted through educational
human resource development at central level, 29 educational training
center and 46 leader resource centers.
13.19 A number of education programs have provided support to enhance the
quality of school education and those programs include: provision of on-
the-job training for all appointed teachers, training for teacher’s
profession development and online-offline capacity building training for
employees, management training for managers, a week long seminar on
policy and education related issues for high level employees, Radio-
education program in every two days a week, information and
technology related capacity building training for teachers and employees,
training for community school English teachers conducted in cooperation
with British Council, virtual class initiated at 100 community schools in
11 earthquake worst affected districts and virtual class have been
extended at schools of rural areas where posting of subject teachers are
virtually nil.

Teacher Management
13.20 Based on accepted indicator of teacher student ratio, teacher post at
primary level is higher in most of districts whereas the same is lower at
other levels. Still, there is not even single teacher post available in 2,233
secondary schools. Likewise, in order to proportionately distribute

221
available teacher post school-wise or district-wise, current post
adjustment and management work could not be effectively moved
forward.
13.21 The policy and program as well as budget of current fiscal year 2016/17
has made provision for adjusting the excess teacher post at basic level
(grade 1-5) to basic level (grade 6-8). For this, there should be policy
level arrangement for post adjustment basis and standard as teacher post
adjustment work based on district-wise number of students and running
classes is, first of all, required to be completed. If post adjustment work
can be done, this would help in reducing the lack of teacher post
prevailing at basic level (grades 6-8).
13.22 The education quality of community run schools has not improved as
expected due to lower teacher allocation at secondary level (grade 9-12).
Task of making adjustment in basic level teachers’ allocation and
ascertaining subject teacher at secondary level will be completed by the
end of academic session 2016 after finalizing the basis for teachers’
allocation.
13.23 Teachers have been appointed at permanent positions as per the approved
quota in community schools. The number of teachers appointed in
recommendation at the existing secondary, lower secondary and
secondary level schools between FY 2012/13 and 2016/17 has stood at
16,527. The competent potential candidates for school teachers get
diverted to other fields due to delayed fulfillment of teachers’ permanent
positions and temporary teachers’ inability to qualify for permanent
teachers through proficiency test are the reasons to provide direct affect
to student’ learning which has now been reduced through teachers’
regular appointment.
13.24 For overall development of school teachers with permanent recruitment,
Teacher Service Council has recommended for promotion related task
based on performance evaluation and through internal competitive
written exam. This has led to improve the service and maintain high
morale among permanent working teachers at community school.
13.25 Teaching licenses are also being distributed to competent candidates
through Teacher Service Council by conducting proficiency tests. A total
of 700,065 has obtained teaching license to teach at various level of
school education between FY 2003/04 and FY 2016/17.

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Day Tiffin Program
13.26 Day Tiffin Program is being carried out with main objective of bringing
improvement in education through improvement in current situation of
students health and nutrition, increasing education accessibility, reducing
the class repetition and class dropout rate, raising the daily attendance
rate of students and increasing learning achievement by reducing
educational damage. This program is in operation from 2013 in 10
districts comprising Doti, Dadeldhura, Achham, Bajura, Baitadi,
Darchula, Bajhang, Dailekh, Rukum and Jajarkot.
13.27 The government has been providing day tiffin at the rate of Rs. 20 per
student per day to all students from ECD level class to class 5 in 5
districts of Karnali Zone; Rs. 15 per student per day to students with
malnutrition from ECD level to grade 5 in specific area schools of
additional 14 districts (Kailali, Bardiya, Dang, Pyuthan, Rolpa,
Kapilvastu, Nawalparasi, Bara, Dhading, Sidhupalchwok, Rasuwa,
Siraha, Saptari, Sunsari); Rs. 15 per student per day for target group
children of indigenous community (Kusunda, Bandariya, Raute, Surel,
Haayu, Raji, Kisan, Lepcha, Meche, Kushwadiya), and highly
marginalized (Chepang, Majhi, Bote, Danuwar, Siyar, Satar, Thudam,
Dhanuk, Lohmi, Thami, Jhagad, Baramu) groups. This program, which
was in operation since fiscal year 2011/12 has benefited 256,969 students
in the first eight months of current fiscal year and has also helped
bringing target children of school age from poor and deprived
community on school outreach.

Technical Education and Vocational Training


13.28 As per the policy of School Sector Reform Project, 2009-2015 to conduct
technical and vocational stream of secondary level at 100 community
secondary school on trial, teaching of such stream was started since
academic session 2013 in 99 schools with main objective of providing
technical and vocational training at school level by extending equitable
accessibility in technical and vocational education.
13.29 With legal provision of making technical and vocational education as 5
years by Education Act (Eight Amendment) 2016 including this in
secondary education, technical and vocational stream education has been
conducted at 240 secondary level (grades 9-12) schools till now.

223
13.30 Technical Education and Vocational Training (TEVT) has occupied
important role with active contribution for the development of country
by producing employment oriented medium level human resource. . This
has supported employment and self employment oriented businesses with
generation of manpower in number of fields by conducting technical
education vocational training programs every year as per employment
market demand. Programs run through affiliated and sister-concern
school and manpower production details for fiscal year 2014/15 to first
eight months of fiscal year 2016/17 has been depicted in the table 13.3.
13.31 Enhanced Vocational Education and Training (EVENT) project
conducted by the ministry of education has been assisting in supplying
skilled and immediate market demanded manpower, extending
accessibility of qualitative training and improving technical as well as
vocational training program. Skill Test Assessors Training, Skill Test
Manager Training and Key Instructor Training programs are in operation
under this program.

Informal Education and Open School


13.32 Informal education has played important role to provide persistent
education opportunity to illiterate and newly literate adult, ensure
realization of learning necessity of all, provide education opportunity
through alternative school education to school age children that remained
outside of school, achieve educational, social as well as human
development objective of nation through life-long informal education and
open learning method.
13.33 Education programs have been conducted regularly through community
learning center to gain literacy skill for illiterate and newly literate people
who were unable to participate in Literate Nepal Campaign in the past.
Under this, education program have been disseminated and conducted
regularly targeting dalit, indigenous tribe, differently abled person,
madhesi, women as well as economically weak illiterate and newly
literate. Programs such as income generation and saving as well credit
program, alternative, open and adult school program for bringing school
age children who remained out of school into the mainstream of
education are in operation.
13.34 Individuals, who were not able to acquire school education regularly due
to various circumstances, are being provided education through 37 basic
level schools and 84 secondary level open schools with a view to provide

224
alternate opportunity of school level education opportunity to target
groups. Basic level schools are being operated through Non-formal
Education Center whereas those of of secondary level are being operated
through National Center for Education Development (NCED).

Detail of Schools, Students and Teachers and their Ratio


13.35 Of the total of 35,222 schools operating in Nepal during academic
session 2016, the shares of Mountain, Hill, Kathmandu valley and Terai
as per geographical area stood at 12 percent, 50.1 percent, 6.2 percent
and 31.6 percent respectively whereas such shares remained 12.09
percent, 50.4 percent, 5.9 percent and 31.6 percent respectively out of
34,736 primary schools for mountain, hills, Kathmandu valley and Terai.
Of the schools totaling 15,170 on basic level, 10.5 percent, 45.6 percent,
11.1 percent and 32.8 percent are in Mountain, Hills, Kathmandu and
Terai respectively while in respect of Secondary Level schools, 8.7
percent, 58.9 percent and 32.3 percent schools are in Mountain, Hills,
and Terai respectively out of 9,379 schools.
Chart 13 (d) : Level-Wise School’s Details by Geographical Sector

13.36 In academic year 2016, ratio of student per school in basic level (grades
1-5), basic level (grades 6-8) and secondary (grades 9-10) level remained
at 119, 123 and 106. Likewise, ratio of teacher per school in basic level
(grades 1-5), basic level (grades 6-8) and secondary (grades 9-10) level
remained at 5, 4 and 4 respectively in academic year 2016 while ratio of
student per teacher stood at 21, 34 and 24 in basic level (class 1-5), basic
level (grades 6-8) and secondary (grades 9-10) level respectively.

225
Table 13 (d) : Level -Wise School, Student and Teacher Ratio (Academic
Year 2016)
Level-Wise Secondary Secondary Seceondary
Basic Basic Basic
Description Grade Grade Grade
(Grade 1-5) (Grade 6-8) (Grade 1-8)
Ratio (9-10) (11-12) (9-12)
Student/School 119 123 172 106 134 154
Teacher/School 5 4 7 4 5 6
Student/Teacher 21 34 39 24 60 44
Source: Ministry of Education

Table 13 (e) : Level-Wise/Area-Wise Detail of Community and Institutional School


Operating as of Academic Year 2016
Community Institutional Total
Development Basic Secondary Secondary
Region Basic Secondary Basic Basic Basic (Grade Basic
(Grade Level Level
(Grade 6-8) Level (9-12) (Grade 1-5) (Grade 6-8) 1-5) (Grade 6-8)
1-5) (9-12) (9-12)
Eastern 6407
2412 1277 1131 717 519 7538 3129 1796
Region
Central Region 7616 2973 1736 2227 1764 1604 9843 4737 3340
Western
6466 2444 1464 1280 874 710 7746 3318 2174
Region
Mid-Western
4985 1884 909 592 345 230 5577 2229 1139
Region
Far Western
3579 1539 785 453 218 145 4032 1757 930
Region
Total 29053 11252 6171 5683 3918 3208 34736 15170 9379

Source: Department of Education

13.37 On the basis of previous development region, central region has the
highest number of schools in academic session 2016. Among primary
schools operating at community level, Mid-Western and Far-Western
Development region has more such schools than Western region.
Traditional School
13.38 During academic year 2016, a total of 1,086 schools are in operation
across the country under traditional Aashram/Gurukul, Monastery,
Vihars and Madarsa. This number was 930 during academic year 2015.
Table 13 (f): Detail of Traditional Schools (in Number)
School Level

Traditional School Total School Unit


Basic Basic Secondary Basic
1-5 6-8 9-12 1-8

Madrasa 879 878 32 15 879


Monasteries and Bihar 110 108 11 1 110
Ashram and Gurkul 97 80 30 11 97
Total 1086 1066 73 27 1086
Source: Ministry of Education

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Teachers Detail
13.39 As per the statistics for academic year 2016, of the total teachers engaged
in teaching in community and institutional schools, the number of female
teachers stood at 113,411 while that of male teachers at 199,276 totaling
312,687 teachers on the community front, whereas 38,936 female
teachers and 47,326 male teachers totaling 86,262 teachers are on the
institutional front.
Table 13 (g):Detail of Teachers Engaged in Community and Institutional Schools
(In Numbers)
Community School Institutional School Total
Level
Female Male Female Male Female Male Total
Basic (Grade 1-5) 59,674 88,275 27,268 22,580 86,942 110,855 197,797
Basic (Grade 6-8) 8,452 29,626 7,357 9,190 15,809 38,815 54,624
Basic (Grade 1-8) 68,126 117,901 34,625 31,770 102,751 149,670 252,421
Secondary (Grade 9-10) 3,668 21,086 3,690 11,803 7,357 32,888 40,245
Secondary (Grade 11-12) 2,682 12,965 621 3,753 3,303 16,718 20,021
Secondary (Grade 9-12) 6,350 34,051 4,311 15,556 10,660 49,606 60,266
Total 74,476 151,952 38,936 47,326 113,411 199,276 312,687
Source: Department of Education

13.40 Among the Basic Level teachers, female teachers have outnumbered
those male ones. Female teachers at community schools accounted for
32.8 percent while those at institutional schools are 45.1 percent.
13.41 While observing the status of female teachers engaged in teaching
profession in all categories of schools reveals the need for additional
improvement in such situation. The gender parity index at basic level
(grades 1-5) is 0.68 among total number of teachers in all categories
working at community school while this indicator for basic level (grades
6-8) and basic level (grades 1-8) stands at 0.29 and 0.58 respectively.
However, participation of female teachers in institutional schools is
comparatively better.

227
Table 13 (h) : Gender-Wise Detail of Teachers by Schools and by Levels (Basic
Level)
Basic (1-5) Basic (6-8) Basic (1-8)

Types of School Female Male Female Male Female Male


GPI GPI GPI
Percent Percent Percent Percent Percent Percent

GPI in total number of


Teachers in all types of 44.0 56.0 0.78 28.9 71.1 0.41 40.7 59.3 0.69
School
GPI in total number of
Teachers in Institutional 54.7 45.3 1.21 44.5 55.5 0.80 52.2 47.8 1.09
School
GPI in total number of
All types of Teachers in 40.3 59.7 0.68 22.2 77.8 0.29 36.6 63.4 0.58
Community Schools
Source: Department of Education

13.42 Among community school teachers, most of them are trained. Some of
them are partly trained while there are rarely untrained teachers. A total
of 92.7 percent teachers are trained at basic level (grades 1-8) while 87.5
percent teachers are trained in secondary level (grades 9-12).

Student Details
13.43 The student enrollment status in the recent past years has been in
declining trend. In academic year 2016, students enrolled at basic level
(grades 1-8) were 5,994,612 while those at secondary level (class 9-10)
were 958,502. While observing student enrollment trend of past 5 years,
the number of students at all levels has been declining. The number of
students that remained at 7,277,932 in school level (class 1-10) in
academic year 2012 dropped to 6,953,114 while coming to academic
year 2016.
Table 13 (i) : Status of School Level Students’ Enrollment (In Number)
Level 2012 2013 2014 2015 2016
Basic (1-5) 4576693 4401780 4335355 4264942 4135253
Basic (6-8) 1823192 1828351 1835313 1862873 1859359
Basic (1-8) 6399885 6230131 6170668 6127815 5994612
Secondary (9-10) 878047 896919 900585 938897 958502
Total (1-10) 7277932 7127050 7071253 7066712 6953114
Source: Department of Education
13.44 Total number of students studying at grades 1-12 in community and
institutional schools in current academic year 2016 has reached
7,446,098. The number of students by Levels is presented in table given
below.

228
Table 13 (j) : Students’ Enrollment Status by Levels in Academic Year 2016
Number of Students
Level
Girl Boy Total
Basic (Grade 1-5) 2,086,165 2,049,088 4,135,253
Basic (Grade 6-8) 939,292 920,067 1,859,359
Basic (Grade 1-8) 3,025,457 2,969,155 5,994,612
Secondary (9-10) 496,347 462,155 958,502
Secondary (11-12) 268,785 224,199 492,984
Secondary (9-12) 765,132 686,354 1,451,486
Total up to Grade 1-10 3,521,804 3,431,310 6,953,114
Total up to Grade 1-12 3,790,589 3,655,509 7,446,098
Source: Department of Education

13.45 In academic year 2016, net enrollment of basic Level (Grades 1-5, of 5 to
9 years age group) children stood at 96.9 percent, basic Level (Grades 1-
8, 10 to 12 years age group) at 80.9 percent and Secondary Level (Grades
9-12 of 13-16 years age group) at 38.9 percent.
Table 13 (k) : Level Wise Student Enrolment Detail
Gross Enrolment Rate Net Enrolment Rate
School Level
Girl Boy Total Girl Boy Total
Basic (Grade 1-5) 138.0 129.3 133.6 96.6 97.3 96.9
Basic (Grade 6-8) 104.2 102.3 103.3 81.5 80.3 80.9
Basic (Grade 1-8) 125.4 119.5 122.4 90.9 91.1 91.0
Secondary (Grade 9-10) 77.7 80.5 79.0 58.9 60.9 59.8
Secondary (Grade 11-12) 40.8 39.9 40.4 19.0 17.3 18.2
Secondary (Grade 9-12) 58.9 60.4 59.6 38.6 39.3 38.9
Source: Department of Education

Secondary Education (Grades 11-12)


13.46 Education Act, 2016 (Eighth Amendment) has restructured classes 9to
12 as secondary education by changing the structure of 11and 12 classes
as secondary education. As grades 11 and 12 have been upheld as
secondary level of school education, operation and management task of
these grades is being conducted by the department of education, while
examination and management is carried out by National Examination
Board, curriculum development work by Curriculum Development
Center, and teachers' training related work by National Center for
Educational Development (NCED).

229
Licensed School
13.47 A total of 3,761 educational institutions comprising community and
institutional secondary school and college have obtained the permission
of previous higher secondary school level by academic year 2016. The
detail of schools running class 11 and 12 by academic year 2016 is
illustrated as under.
Table 13 (l) :Area-Wise detail of Approved Grade 11-12 Operating Secondary
School
Academic Year 2015 Academic Year 2016
Development Com Com
Priva Priv
Region muni 10+2 College Total muni 10+2 College Total
te ate
ty ty
Eastern 562 127 31 21 741 576 133 31 21 761
Central 777 301 100 63 1241 777 321 100 63 1261
Western 670 164 14 28 876 672 183 14 28 897
Mid Western 350 54 5 3 412 369 62 5 3 439
Far Western 341 45 5 8 399 342 48 5 8 403
Total 2699 692 155 123 3669 2735 748 155 123 3761
Source: Department of Education

Secondary Education Examination (SEE)


13.48 School Leaving Certificate (SLC) examination, and related operation and
management work is being conducted from 1934. This examination
which started with examination operation management of 34 examinees
in first year has been conducting management works such as conducting
examination publishing of results, and distribution of certificates to more
than six hundred thousand examinees until recent years.
13.49 With the experience of also operating examination of technical and
vocational stream from SLC of 2015, publication of result using grading
system has started from SLC of 2016. SLC examination that were
conducted by Office of the Controller of Examination at the end of class
10 has been conducted and managed as Secondary Education
Examination (SEE) with the arrangement of maintaining school
education to class 12 and managing secondary level examination by
national examination board made by Education Act 1971 (Eighth
Amendment 2016). A total of 437,326 students comprising of 218,081
boys and 219,245 girls appeared in the regular secondary education
examination in academic year 2016. Among them, 9,600 boy and 6,854
girl students totaling 16,454 have obtained Grade Point Average (GPA)
of 3.6 - 4.00.

230
Table 13 (m) : SEE(previously named SLC) Examination Detail (Academic Year 2016)
Regular Examted
Total Gross Total
Result/Appeared Boy Girl Total Boy Girl

218081 219245 437326 58446 92380 150826 588152

3.6 - 4.0 9600 6854 16454 3 1 4 16458

3.2 - 3.55 24307 17270 41577 4 4 8 41585

2.8 - 3.15 27859 20752 48611 46 48 94 48705

2.4 - 2.75 34272 28909 63181 1278 1665 2943 66124

2.0 - 2.35 45748 48968 94716 11623 18157 29780 124496

1.6 - 1.95 46858 57420 104278 29097 46243 75340 179618

1.2 - 1.55 24267 32496 56763 14544 23395 37939 94702

0.8 - 1.15 3086 4914 8000 888 1564 2452 10452

0.00 - 0.80 8 3 11 0 2 2 13
Source: Ministry of Education

13.50 With the arrangement of maintaining school education to grade 12 and


managing secondary level examination by national examination board
made by Education Act 1971 (Eight Amendment 2016), 51.4 percent of
boy and 50.8 percent of girl out of 266,344 students appearing in class 11
examination were passed while of the total 216,198 students appearing in
class 12 examination, 53.41 percent of boy and 51.99 percent of girl were
passed.
Students Learning Achievement Test, School/Agency Work Performance
Test and Early Learning Skill Test
13.51 National Test of Student Learning Achievement which was initiated in
Nepal by various institutions in 2000 came in practice using samples
until 2011 in grades 3, 4, 5, 6, 8 and 10. Suggestions were offered to the
concerned agency by conducting national test in class 3, 5 and 8 from
2011 at the government level. Likewise, performance test of some
schools and educational agencies selected on sampling basis is being
carried out from fiscal year 2011/12 using approved testing parameters.

13.52 During fiscal year 2015/16, the arrangement has been made to
community and institutional school for test through filling self evaluation
form across the nation. In the context of implementing preliminary grade
reading assessment program, pre-test of early grade reading assessment

231
(EGRA) and class room based early grade reading assessment
(CBEGRA) has been conducted in five districts during fiscal year
2015/16. CBEGRA test was conducted among more than 100 thousand
students of 2,589 schools in 10 districts during this fiscal year.

Scholarship for Higher Technical Education


13.53 Students who get through the examination conducted by the ministry of
education have been sent after being nominated for pursuing Bachelors’
Degree, Master's Degree in Medicine and Bachelor in nursing on
scholarships availed from the medical colleges affiliated to various
universities with permission to operate in private resources within the
country and international scholarships. A total of 316 comprising of 287
in domestic and 29 in abroad has been sent for studying by the end of
first eight months of fiscal year 2016/17 after being nominated for
scholarship of various technical subjects.

Higher Education
13.54 The number of students studying in the colleges under various
universities running across the country has reached to 441,461 by fiscal
year 2015/16 with increment of 17.8 percent as compared to previous
fiscal year. Such number during fiscal year 2014/15 was 374,647. Due to
high fluctuation in the number of students studying in Tribhuwan
University (TU), massive change is observed in total number of students
since fiscal year 2012/13. The number of students in Tribhuwan
University which was 604,437 in fiscal year 2012/13 reached to 405,341
in fiscal year 2013/14 recording 32.94 percent reduction. Similarly, the
number of students in TU which stood at 297,990 in fiscal year 2014/15
increased to 360,254 in fiscal year 2015/16.

232
Chart 13 (e) : Students Enrollment at Tribhuwan University

Source: Ministry of Education

13.55 Whereas there are 9 universities by fiscal year 2015/16 to provide higher
education, Act has been passed for the establishment of Open University
in the current fiscal year. Apart from this, three recognized universities
(BP Koirala Institute of Health Science, National Academy of Medical
Science, and Patan Academy of Health Science) have been producing
high level human resources by carrying out teaching study programs of
higher education in various faculties.
Chart 13 (f): Number of Students studying at Tribhuwan Universities and other
Universities

Source: Tribhuwan University

233
13.56 Of the total students studying in various universities, the number of
students in Tribhuwan University only stood at 82 percent of total
students. In Fiscal Year 2015/16, BP Koirala Institute of Health Science
has the highest number of students studying in recognized universities
with 950 students.
Health Sector
13.57 The contribution of health sector to GDP which reached to 1.63 percent
in fiscal year 2015/16 is estimated to remain at 1.74 percent in current
fiscal year. In addition, the growth rate of health sector which was 3.25
percent in previous year is anticipated to remain at 6.58 percent in the
current fiscal year 2016/17.
13.58 In the period of first eight months of current fiscal year 2016/17, ministry
of health has issued National Liquor Monitoring and Controlling Policy
2016, Mental Health Policy 2016 and Strategy for Handicapp 2016. In
addition to this, Policy related with Ambulance has been amended.
13.59 As per preliminary result of recently concluded Population and Health
Survey 2016, few indicators on the impacts of programs conducted in
health sector have been shown in the table below.
Table 13 (n) :Indicators related to Impacts rendered by Health Sector Program
S. No. Indicator Value
1 Total Fertility Rate (Per Woman) 2.3
2 Family Planning Contraceptive User Rate (All methods, Percent) 52.6
3 Infant Child Mortality Rate (Per Thousand Live Birth, Within 28 days from Birth) 21
4 Child Mortality Rate (Per Thousand Live Birth, Within 1 Year from Birth) 32
5 Mortality Rate of Children below 5 Years (Per Thousand Live Birth) 39
6
Percentage of Pregnant Women to undergo antenatal tests for at least 4 times 69.4

7 Percentage of Pregnant Women giving birth in the presence of skilled birth


58
attendants
8 Percentage of Pregnant Women giving birth at Health Institutions 57
9 Percentage of Babies undergoing all types of vaccination 78
Source: Nepal Demographic and Health Survey, 2016

Extension in Health Sector and Facilities


13.60 By the end of first eight months of fiscal year 2016/17, there are total of
4,622 health institutions comprising of 116 hospitals, 3,972 health posts,
324 ayurvedic hospitals and dispensaries and 210 primary health centers.
A total of 90,909 individuals have been employed at such institutions
comprising 38,909 technical as well as non-technical staff and about
52,000 women health volunteers.

234
Table 13 (o) : Details of Health Institutions, Beds and Human Resources
Description 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
1. Total Health Institutions 4393 4393 4393 4485 4505 4599 4622
a) Hospital 102 105 107 107 116 116 116
b) Primary Health Post 208 205 204 215 215 216 210
c) Health Post 1698 2175 2175 2175 3790 3883 3972
d) Ayurvedic Dispensaries 291 293 293 293 384 384 324
e) Sub- Health Post 2095 1615 1615 1695 - -
2. Hospital Beds 7049 7035 7085 7550 7640 7748 7782
3. Total Human Resources 82994 92150 93495 93495 87290 88640 90909
a) Doctors 1798 1654 1654 2154# 2457# 2550 2640
b) Nurses/A.N.M 12681 11756 12550 9535 20346 20423 20510
c) Kabiraj 407 394 394 394 485 570 719
d) Vaidya 360 360 360 360 451 451 693
e) Health Assistant (HA,
SHA) 8013 8013 8563 11551 11551 12646 14347

f) Women Health
52560 63326 63326 63326 52000 52000 52000
VolunteerWorkers
Source: Department of Health
*Of first eight months

13.61 A total of 3,982,561 patients have availed OPD service while 768,089
have received emergency service by the end of first eight month of fiscal
year 2016/17. Such number in the same period of previous year was
3,054,346 and 533,771 respectively.
Table 13 (p) :Health Service Beneficiary Population by Development Regions
By Fiscal Year 2014/15 Fiscal Year 2015/16 Fiscal Year 2016/17*
National।Dev
Emergen Emergen Emergen
elopment Admit OPD Admit OPD Admit OPD
cy cy cy
Region
National 669144 4692146 988888 975280 7116252 1263992 554511 3982561 768089
Eastern 145328 799924 174437 174343 1178869 279201 81091 467550 118762
Central 268352 2176544 438734 400995 3653187 478469 263757 1986485 333458
Western 159439 978959 198586 253304 1407550 275109 139804 985315 203192
Mid Western 54163 355698 79318 98782 456857 106339 42150 292737 45769
Far Western 41862 381021 97813 47856 419789 124274 27709 250474 66908
Source:HMIS,Department of Health Service
*Of the first eight months

13.62 Out Patient Department (OPD) services have been provided for
7,733,318 times by the end of first eight months of current fiscal year.
Such number was 8,905,510 in the corresponding period of previous
fiscal year.

235
Table 13 (q) :Out patient by Development Region
Fiscal Year
National/Regionwise
2013/14 2014/15 2015/16 2016/17*
S.N.
National 21661849 20242908 18767021 7733318
1 Eastern 4564745 3915544 3771856 1409371
2. Central 6947996 6610013 5913841 2399536
3. Mid-Western 3267193 2841078 2719992 1175585
4. Western 4695147 4820464 4480871 1840820
5. Far-Western 2186768 2055809 1880501 908006
Source:HMIS,Department of Health Service
*Of the first eight months

Major Achievements in Health Sector


13.63 Services such as diarrhea, respiratory disease control and nutrition
service to children under 5 year age as well as iron tablet, vitamins A to
pregnant women are being provided. Two big campaigns namely
Measles Rubella Vaccine and J.E. vaccine program have been conducted
during fiscal year 2015/16. Polio drops feeding task has been completed
in 15 districts comprising 3 districts of Kathmandu Valley and 12
districts of Terai in the first eight months of current fiscal year 2016/17.
Likewise, eleven types of vaccines including BCG vaccine, Tetanus
vaccine, DPT, Hepatitis B (third dose) have been provided under
extended vaccination and polio vaccination program.
Table 13 (r) :Detail of Extended Vaccination and National Polio Vaccination
Program(In Number)
S. No. Indicator 2013/14 2014/15 2015/16 2016/17*
1 BCG Vaccine 404259 571395 575554 309928
2 DPT, Hepatitis B (Third Dose) 336960 552247 538415 279267
3 Polio (Third Dose) 335428 550392 524729 277127
4 Vaccination against Measles 228952 517311 509678 278567
5 Tetanus Vaccine 187751 522159 496112 252320
6 Measles-Rubella Vaccination Program - - 1093828 **
7 Women Receiving Iron Tablet 595000 502240 492888 248921
8 Registration of Dysentery Patients 955006 1548851 1309177 627205
9 Zinc and Oral Rehydration Treatment (ORT) 923119 1315622 1091250 564981
10 Treatment of Respiratory 1701151 2208652 228977 116632
Source:Department of Health Service
*Of the first eight months
**Measles-Rubella Vaccination Campaign is not scheduled for current fiscal year

Family Planning, Safe Motherhood and Women Health Volunteer Program


13.64 The Constitution of Nepal has cited reproduction health as fundamental
right of women and to ensure such right, family health programs have
been in operation.
236
13.65 A total of 242,505 family planning service recipient comprising 232,226
(temporary) and 10,279 (permanent) has been added in family planning
program in the first eight months of current fiscal year 2016/17 for safe
motherhood which is regarded as important part of health service.
Table 13 (s) :Detail of Reproductive Health Program
Indicator Unit 2012/13 2013/14 2014/15 2015/16 2016/17*

New Contraception Users (Temporary) Person 599420 623676 668777 696535 232226

New users of Permanent Contraception Person 52181 37107 30728 28381 10279
(Sterilization)

Regular Contraception Users Person 2478000 2514044 2527380 2640781 1482073


Complex Maternity Services provided at Remote Person 99 194 57 8 7
Districts
Pregnant women undergone antenatal medical
Person NA 388239 318930 327818 152880
tests
Number of Pregnant Women receiving
Person NA NA 175732 161495 65741
Motivational Amount
Free-maternity services provided through Safer
Person 317000 318208 309220 368230 266336
Motherhood Program
Post-Natal Services Person 55650 387392 416842 347448 209641
Districts with round the clock most essential Person 26 56 62 69 73
maternity services
Screening of Prolapses and record keeping for Person 48017 950 900 14839 9269
operation and implantation of Ring Pessary
Treatment and Operation of Prolapses Person 4751 4445 1003 1681 1050
Ministry of Health and Population
* Of the first eight months

Tuberculosis
13.66 Sputum test of 225,439 suspected patients has been carried out in fiscal
year 2015/16. During this period, a total of 61,084 sputum follow up test
has been conducted. In addition, 32,056 individuals have been registered
as first line patients of tuberculosis.
13.67 Sputum test of 112,071 potential suspected patients has been carried out
through running program in the first eight months of fiscal year 2016/17.
During this period, a total of 39,470 follow up sputum test has been
conducted. In addition, 22,377 individuals have been registered as first
line patient of tuberculosis.
Communicable Disease and Epidemiology Management
13.68 Control and management of all epidemics has been conducted in time in
35 districts affected by epidemics during fiscal year 2015/16. In addition
to providing continuity to surveillance of communicable diseases,
spraying insecticides and distributing insecticide nets have been carried
out for controlling black fever, malaria, filaria, dengue and chikungunya.

237
A total of 246,157 piece insecticide nets have been distributed in 10
village development committees of 8 districts under malaria high risk. A
total of 55,280 insecticide nets have been distributed while coming for
treatment for the first time to pregnant women of 25 village development
committees under high risk and medium risk. Malaria Risk Micro-
stratification Survey at ward level has been completed in 44 districts in
order to make malaria prevention effective. Similarly, larva destruction
task has been carried out by identifying mosquito’s habit for controlling
insect related disease including dengue.
13.69 About 23,000 people bitten by mad dog and other animals were provided
with Anti Rabies Vaccine (ARV) while about 3,200 snake bitten patients
with Anti Snake Venom (ASV). In Fiscal Year 2015/16,orientation
program related with proper use of rabies vaccine and ASV as well as
Intra Dermal (ID) vaccine used during dog bit was provided to about
350 medical doctor, nurse as well as health workers and medical
recorders.
13.70 During fiscal year 2015/16, about 12.40 million people were provided
with medicine for control, prevention and eradication of elephantitis
disease in 35 districts under consumption of elephantitis prevention
medicine campaign. Likewise, about 10.08 million people were provided
with such medicine by conducting that campaign in 30 districts in the
first eight months of current fiscal year 2016/17.
13.71 In the first eight months of current fiscal year 2016/17, 778 suspected
case of malaria has been found while a total of 991 cases were recorded
across the country in previous fiscal year. 164 suspected cases have been
found from black fever affected area in the first eight months of current
fiscal year. 250 were registered in the previous fiscal year 2015/16.
Likewise, 1529 suspected cases of dengue were found across the country
in the first eight of current fiscal year. In previous fiscal year 2015/16,
134 cases were registered. A total of 831 cases of scrub typhus were
observed from 47 various districts of country in the first eight months of
current fiscal year. In order to monitor drinking water quality standard,
Wagtech Machine distribution and monitoring have been conducted in
eight districts of western region in current fiscal year 2016/17.
Leprosy
13.72 As in other country of world, Leprosy has been eradicated in Nepal too
(less than 1 leprosy patient per 10 thousand). There currently are 0.89
leprosy patient per 10 thousand populations in Nepal. The state of
national level leprosy eradication has been given continuity. About 180
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hundred thousand patients have been cured with treatment using multi
medicine methodology. Disability rate caused by leprosy has been
declined by identifying leprosy patient at early stage.

National AIDS and Sexually Transmitted Disease Control Program


13.73 CD4 service is available to HIV inflicted from 29 locations in fiscal year
2016/17. ART treatment service has been provided to 13,069 individuals
from 67 ART centers. Community Based Pregnant Mother to Child
Transmission (CB PMTCT) service has been extended in 16 districts.
During that period, nutritional foods were distributed to infected patients
taking Anti Retro Viral (ARV) as well as pregnant women engaged in
PMTCT program and children below 15 years under ARV treatment.
HIV testing service has been provided from 172 HIV Testing Center
(HTC).
13.74 HIV test of 173,749 individuals have been carried out in the first eight
months of current fiscal year 2016/17. In addition, HIV test of 306,872
pregnant women have also been conducted. The detailed HIV prevention
program has been carried out targeting high risked migrant and their
families by entering into service level agreement with NGOs.

Human Organ Transplant Center


13.75 Human Organ Transplant Center was established in 2012 AD with the
objective of providing dialysis of kidney disease and kidney transplant
service easily. A total of 259 patients have got their kidney transplanted
from the beginning of this center to first eight months of current fiscal
year. Kidney transplant were conducted on 101 patients in previous fiscal
year 2015/16. 77 individuals have got kidney transplanted in the first
eight month of current fiscal year 2016/17. Heart related surgery as well
as endoscopic ultrasound service has been commenced during first eight
months of current fiscal year. Lung transplantation has too started from
this year.

National Public Health Laboratory


13.76 In order to examine various diseases and provide specialized curative
service in Nepal, national public health laboratory and a total of 277 labs
across the nation under it are in operation. During fiscal year 2015/16,
lab service has been provided for various types of test to 201,937
individuals.

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13.77 New laboratory service has been initiated in 35 health posts in the first
eight months of current fiscal year 2016/17. Service has been extended
from new biochemistric analyzer by replacing old machines in 25
districts. Regional level laboratory service has been started in Biratnagar.
Blood Bank service extension work has been completed in 5 remote
districts. Arrangement has been made for easy supply of blood and
blood related materials in Jhapa district after procuring component
machine. For sickle cell test, machinery with modern equipments has
been installed at Bheri Zonal Hospital, Seti Zonal Hospital and National
Public Health Laboratory. Highly sophisticated laboratory such as NIC
and BSL-3 has been in operation to test epidemics disease. Blood donor
orientation program has been carried out in various districts and areas
with message “Blood Donation should be done” to blood donor.

Ayurvedic Health Service


13.78 In order to render ayurvedic health service in Nepal, the Department of
Ayurvedic at central level and 2 offices at central level under this, 1
regional level office at Dang district and district level ayurvedic offices
in 75 districts are in operation. In addition to rendering ayurvedic health
service from these offices, service related with Yog and Panchakarma has
been provided.
13.79 Under ayurvedic health service, free ayurvedic health service has been
provided to senior citizen of 75 districts during previous fiscal year
2015/16 from which 28,505 senior citizens have received free ayurvedic
health service. Free ayurvedic camp has been carried outin 75 districts in
the first eight months of current fiscal year 2016/17. Free ayurvedic
health service has also been provided to breast feeding women.

Human Resource Development


13.80 Under the ministry of health, one National Health Training Center at
central level and five regional training centers one at each development
region, one sub regional and 30 district level training centers are in
operation for the development of human resources required in health
sector. There is one ayurvedic training and research center.
13.81 Training related with upgradation to 150 SAHW, 180 AHW and 60
ANM as well as 60 CANM, skilled maternity service training to 60 staff
nurses and anesthetic assistant training to 100 individuals has been
provided. Likewise, high altitude sickness instructor training was

240
imparted to 35 individuals and Transaction Accounting and Budget
Control System (TABUCS) trainings to 678 individuals.

Study and Research


13.82 Nepal Health Institution Survey was concluded under the ministry of
health in previous fiscal year 2015/16. During the first eight of current
fiscal year 2016/17, preliminary result has been obtained with completion
of collecting statistics on Nepal Demographic and Health Survey being
conducted in every 5 years that has important place in health sector.
Similarly, Nepal Micronutrient Survey has also been completed in
current fiscal year.
13.83 Nepal Health Research Council has conducted a total of 138 study
researches from 1995 to 2016. Study research mainly related with
respiratory system, non communicable disease and environmental health
has been carried out from this council.
Table 13 (t) :Study Research Conducted Through Health Research Council(1995-
2016)
Area of Study Research Number Area of Study Research Number
Communicable Diseases 45 Traditional Treatment 11
Environmental Health 44 Mental Health 10
Health System 42 Nutrition and Food Security 8
Reproductive Health 31 Senior Citizens Health 6
Infant and Child Health 18 Injury and Accidents 2
Non Communicalble
17 Others 4
Diseases
Source: Nepal Health Research Council

Nepal Medical Council


13.84 Nepal Medical Council has remained as autonomous institution to
monitor and manage the medical sector of Nepal. It carries out works like
registration of medical practitioners who have acquired degree/diploma
in medicine nationally and internationally as per rule; granting
operational approval as per rule to new medical/dental colleges in the
country considering the level; granting permission for education and
student enrollment; setting minimum qualification for study of medicine
(degree/diploma); recommending legal action against medical
practitioners and medical/dental college who works against Nepal
Medical Council’s law; and discouraging or curbing operation of medical
business illegal way. Likewise, works like conducting licensing exam
regularly; investigating on various sort of health and medical business

241
related complaint-application and registering foreign medical
practitioners as per rule of Nepal Medical Council temporarily based on
their qualification have been carried out from this council.
13.85 A total of 19,409 doctors comprising of 12,568 male and 6,841female
medical practitioners has been registered until the first eight month of
current fiscal year out of which the number of doctors who have
completed specialization on various subjects stood at 5,159 including
3,737 male and 1,422 female.

Nepal Nursing Council


13.86 The council was established for making policy to continue nursing
occupation and development of nursing subject curriculum as well as
providing professional permission to nurse examining their qualification
and capacity. A total of 71,557 nurses comprising 43,139 staff nurses,
27,589 ANM and 829 foreign nurses have been registered till first eight
months of fiscal year 2016/17.

Social Security Program


13.87 Social health insurance program has been started from 3 districts namely
Kailali, Baglung and Ilam during fiscal year 2015/16. Such program has
been extended to 8 districts by extending in 5 more districts. The number
of family having membership of this program has reached to 8,737
whereas the number of insured person has remained at 45,277 in the first
eight months of current fiscal year. A total of 6,066 individuals have
obtained service from this program.
Table 13 (u) :Social Security Program
S.N. Indicators 2013/14 2014/15 2015/16 2016/17*
1. Medicine Distribution, Sub-Health Post (Types) 25 25 -

2. Medicine Distribution, Health Post (Types) 35 27 27 35


Medicine Distribution, Primary Health Post
3. 42 58 58 58
(Types)
Free-treatment for ulta-poor and poor through
4. 9682588 - 11926** 16000**
Hospitals
Free Cardiac Surgeries and Treatment for
5. 922 793 824 682
Children below 15 Years of Age
Free Cardiac Surgeries and Treatment for Senior
6. 312 259 584 429
Citizens over 70 Years of Age
Distribution of Eye Glasses at free of cost to
7. 5000 - 3168** 4500
citizens above 50 Years of Age
Source: Ministry of Health
*Of the first eight months
**conducted through various Citizens’ Trusts***Conducted through Nepal Netrajyoti Sangh

242
National Health Education, Information and Communication
13.88 In order to spread awareness about major risk of non-communicable
disease such as consumption of tobacco, liquor drinking, lack of diet and
physical exercise, message has been produced and broadcasted through
communication program, interpersonal communication, mass
communication, interaction, seminar, advocacy along with audio, visual
and FM, radio and television from which about one million people have
been benefited.
13.89 Health related message has been aired 1,700 times through Nepal
Television in the first eight months of current fiscal year 2016/17. In
addition, public awareness message related with communicable disease
has been disseminated 2,333 times and non-communicable disease 3,650
times. Picture and message displaying task on the packet of tobacco has
been carried out.

Post Earthquake Reconstruction and Rehabilitation Work


13.90 The reconstruction of health institution damaged through devastating
earthquake that stroke in 2015 is underway. Reconstruction of total 81
health institutions has been completed during fiscal year 2015/16.
Reconstruction of 121 health institutions has been completed in the
period of first eight months of current fiscal year 2016/17. Till now,
reconstruction of total 202 health institutions has been finished.

Impact of Health Related Program in Health Sector


13.91 The accessibility of poor and marginalized group in health service has
increased due to the policy and institutional activities undertaken by the
government of Nepal in health sector thereby making essential medicines
available throughout the year in health institution. Health related public
awareness has increased with rise in number of service recipient (OPD
service recipient which was 31% before the introduction of free service
has been more than 90 percent now) and reaching most programs to rural
community. Remarkable improvement has been noticed in health sector
indictors like child mortality rate, mother mortality rate, and average life
expectancy.
13.92 As per the strategy of taking health insurance program and non
communicable disease prevention and control related program together,
non communicable disease prevention and control program and social

243
health insurance program has gained momentum. Due to some innovative
policies, there has been gradual improvement in health service.
13.93 There has been improvement in infant mortality rate and child mortality
rate as an effect of various vaccination program and vitamin A feeding
program.

Women, Children and Social Welfare


13.94 As per the statistics of National Population Census 2011, there are 51.5
percent female (male 48.5 percent), 39.8 percent children, 8.13 percent
senior citizen and 1.94 percent disabled person. Various efforts have
been made to protect these classes living in the society and to bring
improvement in their living standard. In this process, policies and
national action plans, institutional and legal provisions have been
formulated including the commitment made by Nepal at international
level. Various programs are in operation to bring improvement in
individual aspects such as capacity enhancement, empowerment and
protection.
13.95 Programs like gender based violence elimination program, women
development program, human trafficking and transportation control have
been in operation as movement for women empowerment. Service has
been rendered to physically disabled person and senior citizens in social
welfare sector through programs such as protection, rehabilitation,
income oriented and empowerment program. Awareness raising program
has been conducted against gender based violence through printing and
electronic communication system.
13.96 Gender Responsive Budget which stood at 11.3 percent of total budget in
the fiscal year 2007/08 of gender responsive budget implementation has
reached to 23.1 percent in fiscal year 2016/17 which is directly allocated
in women sector i.e. direct Gender Responsive Budget. The share of
budget indirectly allocated to women sector i.e. indirect Gender
Responsive Budget is 48.45 percent of total budget.
13.97 In recent years, there is women leadership in some of key state organ.
The constitution of Nepal has guaranteed the Provision of one third
women representation in parliament and 40 percent in local bodies.
Almost one third (29.6 percent) women representation is in parliament
now. Nepal is positioned at 48th rank in the world among countries with
women representation in the parliament beating countries like Australia,

244
Canada and United States of America while at first position among South
Asian countries as depicted in the table below. Nepal hasbeen and
exemplary country in women representation/inclusion and
empowerment.
13.98 While comparing the major indicators of women in South Asian
countries, remarkable improvement has been recorded in discrimination
at Gender Parity Index (GPI) of primary and secondary level education
of Nepal as compared to other countries. During 1999 AD, gender parity
index of Nepal at primary level and at secondary level was lower than
that of India and Bhutan. Nepal has left these countries behind by 2012
AD. Nepal has the best i.e. 82.7 percent in female youth literacy rate (15-
24 age group).
Table 13 (v) :Comparison of Major Indicators among South Asian Countries
Indicators Female Youth
GPI in Primary GPI in Secondary
Literacy (15-24) MP's (In Percent)
Education GER Education GER
In Percent
Country Year 1999 2012 1999 2012 2012 2011 2015
Afganistan 0.50 0.72 0.20 0.52 19 28 28
Bagladesh - - 1.00 1.17 80 20 20
Pakistan 0.68 0.88 - - 68 23 21
Bhutan 0.84 1.02 0.78 1.02 51 9 9
India 0.82 1.03 0.71 0.98 77 11 12
Nepal 0.75 1.08 0.68 1.01 82.7 33 29.5
Source: National Planning Commission, MDG's Final Status Report 2000-2015

Recution of Gender Based Violence

13.99 Annual programs are being implemented on the basis of adequate legal
arrangement and national work plan to put gender based violence to an
end. A total of 104 community service centers are in operation in various
17 districts in order to rescue, protect and rehabilitate the people suffered
from domestic violence. During the first eight months of the current
fiscal year, 1,355 victims of domestic violence have been provided
services. While the number was 777 in the fiscal year 2015/16. Likewise,
Mangala-Sahana Long-term Rehabilitation Center is in operation in
Kathmandu where 11 individuals have been receiving services.

Women Development Program


13.100 About 5.2 million target (deprived women) group is estimated on the
basis of data collected from National Population Census 2011. The
number of women engaged in women development program is about 1.1

245
million which is about 21 percent considering the size of target group.
The presence of dalit community and Janajati community women in
member group is almost 15 percent and 36 percent respectively.
Neighborhood group promoted under sustainable institutional
development programs has emerged as social capital formation, ward
unit participation platform and change force in institution of VDC. In
addition, saving mobilization of the group is more than 4590 million. In
order to support saving mobilization, Rs. 122.4 million has been
advanced from current fund of Nepal Government at 2 percent annual
interest to promote institution and committees up to Rs. 100 thousand as
seed capital credit.
13.101 Along with saving habits, program has been carried out to encourage the
spirit for economic independence and develop professionalism.
Professional group has been developed by providing skill and
professional training required to utilize income generation opportunity
identified by economically backward group, market relations and grant
necessary to start the business at lower level. A total of 163,959
individuals has obtained the benefit of starting business at own village
from this program by fiscal year 2015/16.
13.102 Women committees have remained active in monitoring, retaliating and
assisting the victims of gender violence in the society. These committees
have been helpful in raising demand side awareness on women
reproductive health. With program being operated in integrated manner
from women institutions targeting children at critical situation, girls
outside school and free bonded people, this has helped in empowerment.
13.103 Women development program has, along with empowerment, assisted in
advocacy and coordination of gender mainstreaming and social inclusion
cases. Facilitation work performed to keep leadership of local agency and
regional ownership in mainstreaming and inclusion has brought positive
change in women participation in various institutes of society. This has
supported in economic inclusion with development of women
entrepreneurship.
Human Smuggling and Trafficking Control
13.104 Legal as well as institutional initiatives have been taken towards
controlling human smuggling and trafficking. During the first eight
months of the current fiscal year, a total of 616 women rescued from
smuggling have been provided services through rehabilitation centers

246
operating in 8 districts. The number of women rescued from the risk of
getting smuggled stood at 1,470 in the corresponding period and 1,697
during entire period of previous year. Two rehabilitation centers have
been established in Kaski and Surkhet from this fiscal year.
Table 13 (w) :Detail of Service Recipients from Rehabilitation Center
S. NO. District 2014/15 2015/16 2016/17*

1 Chitwan 90 112 16
2 Rupendehi 231 411 157
3 Sidhupalchwok 13 33 51
4 Kailali 28 75 27
5 Parsa 165 278 100
6 Banke 114 253 67
7 Kathmandu 18 41 46
8 Jhapa 244 494 152
Source: Ministry of Women, Children and Social Welfare
*First eight months

Children and Youths


13.105 Legal, policy-wide and institutional arrangements have been made for
overall development of children and youths and for protection and
promotion of interest and child right. In the context of constitution of
Nepal arranging child right as fundamental right, it is imperative to
conduct various programs for protecting their rights. Coordination and
collaboration has enhanced among stakeholder government agency, local
body, school, national and international non-government organization,
guardian, teacher and civil society for protection and promotion of
children right.
13.106 A total of 22,628 children clubs have been opened across the country and
their operations facilitated to ensure respect of children and their
meaningful participation. A total of 437,759 children (206,049 girls and
231,710 boys) have been actively affiliated with these children clubs. In
the process of making Kathmandu valley and other towns of the country
as street childfree town, the first phase of Kathmandu valley street
childfree campaign is in operation. A total of 496 street children
comprising 203 in fiscal year 2015/16 and 293 in the first eight months
of current fiscal year have been rescued and protected.
13.107 Financial relief assistance had been distributed to 11,052 children at Rs.
5000 per child and 2,682 children at Rs. 4000 per child totaling 13,734
children at highly earthquake affected various 14 districts in fiscal year

247
2015/16. During the first eight months of current fiscal year, Child
protection education assistance has been distributed to 1,844 children at
Rs. 5,000 per child and 174 children at Rs. 4,000 totaling 2,018 children
by reassessing the children at risky situation. A total of 15,752
earthquake affected children have been benefited till now. The total
number of earthquake affected children has remained at 46,273.
13.108 Children Search and Coordination Center has been operated for the
rescue, protection, search and family reunion, reunification and
rehabilitation of those missing, found after missing and found unattended
children. Free telephone operated by that center has been installed in 29
districts during the first eight months of current fiscal year 2016/17.
Chart 13 (g) : Missing,Found after missing and Found unattended Children

Source: Central Child Welfare Board

13.109 While observing the trend of missing children, this number which was on
higher side i.e. 1,734 in fiscal year 2012/13 had dropped to 1,145 and
1,146 in fiscal year 2013/14 and 2014/15 respectively. This number grew
again to 1,502 and 1,764 in FY 2015/16 and current FY 2016/17
respectively. Such growing number of missing children with an average
of only 55 percent of them being rescued and protected calls for further
efforts and improvements in this sector.

248
Chart 13 (h) : Children Details (First Eight months of Fiscal Year 2016/17)

Source: Central Child Welfare Board

13.110 Child help line which was operated in Kathmandu, Makwanpur,


Chitwan, Kaski, Morang, Udaypur, Lamjung, Rupandehi, Banke, Surkhet
and Kailali for emergency rescue of children at critical state, relief,
psychological counseling, family reunion, reunification and rehabilitation
has been in further operation in Itahari of Sunsari from mid-February of
current fiscal year 2016/17. During review period, a total of 1,410
children comprised of 636 boys and 774 girls at critical situation after
being emergency rescued have been provided with relief from toll-free
child helpline operating in aforementioned districts. In addition,
psychological counseling to them and family reconciliation has been
facilitated. This number was 3,711 in fiscal year 2015/16.

249
Chart 13 (i) : Beneficiary Children from Child Toll-Free Helpline Telephone
Number 1098

Source: Central Child Welfare Board

13.111 Child marriage prevention and minimization campaign has been in


operation in various 40 districts with high child marriage. In order to
prevent and control trafficking and smuggling, child trafficking and
smuggling prevention publicity program has been carried out in 24
districts adjoined with India and China boarder. Family awareness
program has been operated in 9 backward districts including Karnali
zone having few family awareness from the perspective of child
protection. Child sexual abuse and rape incident control and prevention
awareness program has also been in operation in 24 districts.
13.112 In fiscal year 2015/16, total of 6,686 children ( 5,234 boys and 1,452
girls) are residing in 147 religions organizations those of Hindu, Islam,
chriatian and Buddha including temples, hermitages (Ashram), matha,
gurukul, madarasa, church, bihar, monasteries and stupa in various 27
districts of Nepal.
13.113 Education, health treatment, psychological counseling, family income
earning, alternative care, legal assistance and relief for other child
protection, protection and assistance have been provided from armed
conflict affected children rehabilitation and reunification project in
various 20 districts to 4,766 children in fiscal year 2015/16 and 4,722
children in the first eight months of current fiscal year 2016/17 totaling
9,488 conflict affected children.

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Table 13 (x) : Details on Protection, Relief and Reconciliation of Armed Conflict
affected Children
Amount Rs. (Per 2016/17
Description 2015/16 (For Firth Eight Total
Person)
Months)
Educational Assistance 5000 4329 3605 7934
Health Treatment Assistance 8000 93 25 118
Psychological Counseling 3000 147 551 698
Family Income Earning Assistance 15000 158 413 571
Alternative Care Assistance 2500 27 80 107
Legal Assistance 10000 12 14 26
Other Child Protection Assistance 5000 0 34 34
Total 4766 4722 9488
Source: Central Child Welfare Board

Senior Citizen
13.114 The constitution of Nepal has guaranteed right to special protection and
social security of senor citizens. Senior citizens (above 60 years of age)
comprising 8.3 percent of total population need to be protected and
honored through the extension of necessary services and facilities to live
their esteemed life on the one hand while environment to be created to
utilize their knowledge skill, capacity and experience in country’s social
and economic development on the other. For the protection of elderly
people, a total of 1,313 of them including 866 female and 447 male from
40 elderly homes across the country have been receiving free of cost
services.
13.115 Senior Citizen Day Care Centers are in operation at 87 places in various
districts of Nepal. Senior citizen related several programs including
awareness raising programs, care takers’ training, intergenerational
affiliation program, and intergenerational skill handover programs have
been operated through communication media. Monthly social security
allowance of Rs. 2,000 is being distributed to elderly people of 70 years
of age (60 years in the case of citizens from Karnali zone, and Dalit
community). Senior Citizens are being distributed identity cards for the
effective implementation of reservation and concessional provision on
public transports. Such programs have facilitated Senior Citizens’ life to
some extent.

Persons with Disability


13.116 The constitution of Nepal has guaranteed the right for the persons with
physical disability to live with dignified life and equal access to public

251
services and facilities together with their diverse identity. Persons with
physical impairment comprise 1.94 percent in the total population.
Several programs including community based rehabilitation, awareness
raising through radio/TV, day care service and residential rehabilitation
program in partnership of various organizations are being conducted for
persons with disability. Likewise, disability related helpdesk service has
been provided through all offices of women and children while
rehabilitation and residential arrangements have been made for women
with disability.
13.117 Programs such as disbursement of audible CDs, cassettes to provide
access of education to persons with vision impairment, rehabilitation and
caretaking for persons with intellectual and mental impairments, support
in the production and distribution of aids and appliances are in operation.
Supports have been extended to persons with autism, leprosy and
hemophilia. Residential rehabilitation centers are in operation for persons
with complete disability in central and far-western development region of
Nepal where 25 such persons are receiving the residential facility.
Persons with physical impairment are classified on the basis of their
severity of disability namely complete disability, severe disability,
moderate disability and mild disability and identity cards are being
distributed on the same basis and monthly allowances of Rs. 2,000 and
Rs. 600 are distributed to each person with complete disability and sever
disability respectively.
Table 13 (y) : Identity Card Distribution to Persons with Disability
No. of Identity Card Distributed till Mid March of Fiscal year
S.
Types of Identity Card 2016/17
No.
Female Male Total
1 Red (Complete disability) 16308 20977 37285
2 Blue (Severe Disability) 8863 40214 49077
Yellow (Moderate
3 27041 39798 66839
Disability)
4 White (Mild Disability) 19034 27255 46289
Grand Total 71246 128244 199490
Source: Department of Women and Children

Social Welfare Council


13.118 By the first eight months of the current fiscal year 2016/17, the number
of non-governmental organizations (NGOs) and international non-
governmental organizations INGOs operating under Social Welfare
Council reached 755 and 250 respectively. A sum of Rs. 12.26 billion

252
has been approved for the 857 approved programs under NGOs while Rs.
8.29 billion has been approved for 77 approved programs under INGOs.

Drinking Water and Sanitation


13.119 It is necessary to provide access of clean and safe drinking water to all
citizens since the constitution of Nepal recognizes the people’s access to
drinking water and sanitation as the fundamental right. Acknowledging
the provisions in National Water Plan, 2005, Drinking Water Quality
Standard, 2006, National Sanitation Master Plan and Sustainable
Development Goals 2030, target has been set to provide basic level of
drinking water and sanitation facility to every citizen of Nepal by 2017.
Table 13 (z) :Status of Basic Drinking Water and Sanitation
National Water Plan,2005 set Targets Achievements Till Date
Indicators
2017 2027

Basic Drinking Water Service (Percentage


100 - 86.97%
of Total Beneficiary Population)

Basic Sanitation Facility (Percentage of


100 - 87.27%
Total Beneficiary Population)

High and Medium Quality Drinking Water


(Percentage of Total Beneficiary 27 50 15.00%
Population)

Source: Department of Water Supply and Sewerage

13.120 Clean-up campaign has been carried forward in the form of social
movement across the country with the commitment to declare Nepal as
an open defecation free (ODF) country by ensuring access of basic level
of sanitation to all citizens by 2017. During the first eight months of the
current fiscal year, a total of 2,435 VDCs,132 municipalities and 38
districts including the former 43 municipalities and 325 VDCs have been
declared as open defecation free (ODF) zone.
13.121 Post Open Defecation Free program has been launched by promoting the
construction work of public toilets with a view to sustain sanitation
facility in ODF declared VDCs, municipalities and districts. Post ODF
Guidelines for the effectiveness of post ODF program has already been
prepared and in the stage of getting endorsed. In addition, program, for
managing environment, has been brought into operation with a view to
maintain sanitation in rivers, lakes, ponds and other water sources. In the
current fiscal year, program is set to maintain cleanliness in 5 lakes
including Se-Foksundo, Tilicho, Begnas Lake, Rara Lake and Rupa Lake

253
in cities along 11 rivers including Karnali Koshi, Narayani by making
them sewage-free river.
13.122 Terai/Madhesh Driking Water Improvement Program is in operation
since this fiscal year with a view to reduce arsenic contents in
underground water sources in Terai/Madhesh. Program is set to distribute
arsenic –free drinking water in 20 districts of Terai through the
installation of 100 solar pumps and construction of small overhead tanks.
13.123 A total of four projects have been completed under the Small-Town
Drinking Water and Sanitation Project-II operated with the objective of
providing quality drinking water and basic sanitation facility in urban and
semi-urban areas while Salyan Drinking Water Project under the Small
town Drinking Water and Sanitation Project- III has been completed
benefiting 8,476 consumers. Likewise, under the rural drinking water
project, 3 projects have been concluded benefiting 3,241 individuals.

Melamchi Drinking Water


13.124 Melamchi Drinking Water Project is the comprehensive project to supply
drinking water to the denizens of the Kathmandu valley. This project is
in operation with the primary objective of alleviating chronic shortage of
drinking water in Kathmandu valley in a sustainable basis thereby
making valley dwellers free from water induced diseases.
13.125 This project, with its provision to increase its capacity gradually for
meeting the increasing demand of drinking water, aims at diverting 170
million liters of water daily (MLD) to the Kathmandu valley through
26.5 Km long tunnel by constructing headwork on the upstream of
Melamchi at Riberma under the former Helambu VDC of
Sindhupalchowk district in its first phase. Similarly, this project aims at
bringing 510 MLD in Kathmandu valley augmenting this supply with
additional 170 MLD each from Yangri and Larke rivers.
13.126 In the first eight months of the current fiscal year, construction of 5.252
Km tunnel section has been completed. So far, construction of 23.184
Km of its total length is over. Construction of diversion tunnel required
for headwork has also been completed.
13.127 Construction of water treatment center with 805 MLD capacity is
underway at Sundarijal. Similarly, 21222.12 cubic meter RCC works
have been completed at various units of water treatment center. So far, 99
percent construction work at treatment center has been accomplished.

254
Project Implementation Directorate
13.128 During the first eight months of the current fiscal year 2016/17,
distribution network of 220 Km, 40 Km of the main system, and ongoing
construction works at 5 water reservoir tanks have been completed
through Project Implementation Directorate established with the
objective of distributing 170 MLD of water to be received in the first
phase of the project to the inhabitants of Kathmandu valley by 2017 in an
equitable manner. Progress made so far under this project is given in the
table below.

S. No. Description Target Progress till Date

1 Construction of Distribution Network 670K.M. 550K.M.

Construction of Main System (Retail


2 61 K.M. 41K.M.
Distribution System)
3 Construction of Water Reservoir 6 5

Rural Water Supply and Sanitation Fund Development Board

13.129 Rural Drinking Water and Sanitation Improvement Project has been in
implementation since July 11, 2014 subsequent to the completion of the
first phase of rural drinking water and sanitation project where 308
projects have been completed in last three years supplying safe drinking
water and sanitation facility to about 275,968 people.
13.130 Targets were set to complete 101 ongoing projects in FY 2016/17,
commence next 562 projects and initiate pre-development phase works
by selecting 650 projects of development phase in 11th group thereby
conducting feasibility study. Of this, 39 projects have been fully
completed. Likewise, works on 562 projects of development phase is
near to completion while agreement to carry out construction works of
these projects is going to conclude soon. Of the target to declare 400
VDCs as ODF zone and implement complete sanitation program, 354 of
them are availing these programs.
Kathmandu Valley Water Supply Management Board
13.131 This Board has been managing drinking water through collection and
refilling and conservation of stone taps, wells and ponds. Likewise, the
Board has been carrying out other tasks such as issuing license as a
regulatory body for the proper management of extraction and use of

255
underground water and distributing licenses to the tanker entrepreneurs
to operate drinking water service. Further, the Board has been carrying
out regular monitoring and inspection works on the drinking water and
sewerage service system being operated by the service providers.
13.132 Works have been completed as per the approved budget and programs
with the adoption of primary policy to conserve properties, harvest rain
water and maintain the quality of drinking water, improve according to
the existing condition of tube-wells and renovate water sources of
archaeological importance such as stone taps, wells and ponds in the
fiscal year 2016/17.

Youths and Sports


13.133 Youths will have major contribution in country’s economic and social
development as well as in nation building endeavor. Youth force (age
group 16-40 years) comprising 40.3 percent of the total population needs
to be mobilized taking the demographic dividend for country’s
prosperity. Only few countries will be able to reap such demographic
dividend. Though the youths play key role in the overall development of
the county, the task of transforming the vision “Building a Prosperous
Nation through Youths’ Participation in Development’ and the
goal“Youth Mainstreaming in Overall Development of the Country”
of 14th Periodic Plan into practice is getting late.
13.134 National Youth Policy, 2015 and Youth Vision,2025 has been prepared
and executed with a view of encouraging youths to become self-
employed and entrepreneur by identifying their skills and enhancing their
capacity. National Youth Council at central level and District Youth
Council in 60 districts are in operation. Youth target programs are being
implemented by establishing District Youth Office in all districts.
13.135 Tasks such as construction and improvement of sports infrastructure and
organization and participation at both national and international sports ,
instruction and motivation to instructors and players have been carried
out. Construction of necessary infrastructure and preparatory works are
underway so as to meet the commitments made by Nepal to organize the
13th South Asian Game in 2018.
13.136 Various scout related programs have been executed in the cooperation of
Nepal Scout to prepare disciplined, accountable and volunteer children
and youths. Infrastructure development and training activities are being

256
carried out in cooperation and coordination of Nepal Scout for the
development and expansion of scouts.

National Youth Mobilization


13.137 National Youth Mobilization Program is implemented with the objective
of involving youths in nation building endeavor through their overall
development. Under this, youth mobilization, youth’s capacity
enhancement and empowerment, youth cooperation and collaboration
programs are being operated. During the first eight months of the current
fiscal year 2016/17, a fifty-member Indian Youth delegation team visited
Nepal in February, 2017 while the Chinese team with the same number
visited in January, 2017 under international youth experience sharing
program.
13.138 Youth Mobilization Program has supported enhancing youths’ skill,
capability and awareness. Youth experience sharing program has
enhanced knowledge and experience in economic, social, cultural,
political, geographical knowledge and experience which have been useful
in country’s development.
13.139 “Youth Communication Radio Program, has been aired through Radio
Nepal while “Youth in Development and Prosperity” is televised through
Nepal Television with a view to disseminate useful information for
youths. Every year on International Youth Day, 10 talented youths are
awarded and honored. Publicity programs on support and trainings for
youths, National Youth Policy 2015 and Youth Vision 2025 have
encouraged youth to carry out study, research, and deliver social services
and helped to create employment opportunities and reduce poverty.

Sports Development
13.140 Schools have been the fertile ground for the development of sports
sector. President Running Shield Tournament, Secondary Level School
Girls/Boys Football and Cricket Tournaments have helped to explore,
identify, honor and conserve youth’s talents from local level. Awareness
programs are in operation so as to make aware of anti-doping in sports
and discourage using prohibited drugs.
13.141 Efforts are centered towards making Nepal known to the rest of the world
through studies, conservation, and development of traditional games.
Activities such as honoring the talented players and organizations with
their notable contribution to the sports sector, participation of high level

257
representatives at various international sports events and have helped
enhance players’ morale, augment participation in international
tournaments, and raise sports related foreign aid.
13.142 With a view to materialize sports slogan” Sports for Health, Sports for
Nation”, National Sports Council have been carrying out a number of
activities including the constructing and renovating physical
infrastructures and reform, organizing and participating national and
international sports events, providing instruction to the players on a
regular basis and conducting other motivational programs. Likewise, it
has been providing support to para and special sports, distributing life-
long allowance to the players, insurance and medical treatments to
players injured through accidents.
13.143 In the seventh National Game ( December 23-30, 2016) held in eastern
region of Biratnagar, Nepal Army stood first with 113 gold medals
followed by Nepal Armed Police and Nepal Police Club. A total of 3,
972 players including 2,303 male and 1,669 female players participated
individually and in a team in the 31 events of the tournament from 5
development regions and the Departments.
Table 13 (aa) : Seventh National Sport Tournament
Gold Bronze
Participating Team Silver Medal Total
Medal Medal
Nepal Army 113 64 48 225
Armed Police Force 50 48 58 156
Nepal Police Club 40 38 41 119
Central Development Region 32 50 57 139
Mid Western Development Region 9 15 43 67
Western Development Region 8 21 38 67
Eastern Development Region 7 17 49 73
Far Western Development Region 4 11 59 74
Total 263 264 393 920
Source: Ministry of Youth and Sports

Culture
13.144 Works towards conserving and developing both tangible and intangible
cultural heritages scattered across the country are in progress. Continuity
has been given to the conservation, promotion and sustainable
management of important religious, cultural and historical sites including
Pashupati, Lumbini and Janakpur.

258
13.145 In FY 2015/16, renovation work at Wom Mukteshwor Sattal has been
completed while those of Dhunighar and Raksheshwor Sattal have been
conserved through National Pride Project Pashupati Area Development
Fund. Electric crematorium is in operation. Renovation work at
Ranamukteshwor has been completed in first eight months of the current
fiscal year 2016/17. A chilling room with capacity of accommodating 30
dead bodies has been constructed in crematorium building which is
already in operation. Bankali Garden, Bhandarkhal Garden, and
Hansmandap premises are under construction. Reconstruction works on
earthquake damaged structures has started.
13.146 Works including taking care of the forest and conservation of Bodhi Tree
in Lumbini Development Area have been carried out under National
Pride Project Lumbini Area Development Fund in FY 2015/16.
Excavation and conservation related works have been accomplished in
archaeological sites of Kapilbastu including Devdaha, Ramgram and
Sainamaina. The construction of administrative building has been
completed according to the master plan in the first eight month of FY
2016/17. Likewise, 16 Km long fencing wall together with central canal
have been constructed. Construction of garden around Mayadevi temple
is in the final stage. Broader Lumbini Development Master Plan has been
prepared with the inclusion of Tilaurakot, Devdaha, Ramgram areas.
13.147 Works including the conservation of intangible cultural heritages of
endangered, marginalized, highly marginalized and deprived groups and
communities have been accomplished. National culture has been
regarded as the means for strengthening national unity and solidarity.
Likewise, various programs are organized for the conservation and
promotion of inherited traditions and cultures.
13.148 Of the total 750 cultural heritages devastated by the earthquake of 2015,
reconstruction of 132 such heritages has commenced in the first eight
months of the current FY 2016/17.
13.149 On copyright registration front, a total of 169 copyrights have been
registered during FY 2015/16 including 122 of them to literature, 42 to
architect design, 4 on the computer software and 1 on a research paper.
Likewise, a total of 62 copyrights have been registered during first eight
months of the current fiscal year 2016/17 including 50 on literature, 10
audio recordings, 1 photography and 1 tow motion picture. Thus, a total
number of such registration has reached 1,525 with 1,110 to literature, 3
to magazine publication, 5 to translation, 75 on arts/painting, 79 on audio

259
recording, 44 on architect, 116 to art, 28 on software, 4 to presentation,
48 towards photography, 4 towards research papers and 9 to motion
pictures/cinematography by first eight months of the current fiscal year
2016/17.

Population Management
13.150 The population size and quality will greatly influence economic
development. The country dwellers are the center point of social
development. National Population Policy, 2014 is in effect for managing
the population. Programs including youth self-employment are in
operation with the objective of attaining high, sustainable, broad and
inclusive economic development by involving of economically active age
group population while enjoying the demographic dividend.
13.151 For effective collection of vital statistics such as birth, death, migration
which are the influencing factors to population change, Department of
Civil Registration has been established whereby some local
entities/levels have started using electronic registration system of such
events. Demographic statistics are being used in education, health and
social sectors and in the process of .preparing infrastructure and urban
development plans.
13.152 Population Management Information System –PMIS software has been
developed with a view to manage population management related
information. In addition, Nepal Population Report 2016 and Population
Pressure Index 2016 have also been prepared.

Social Development Efforts through Local Bodies


13.153 Programs/projects providing direct benefits to people from all castes,
poor, women, children, and socio-economically left behind senior
citizens, Madhesi, Muslims, Dalits, indigenous and ethnic people,
persons with disability and backward groups and those including human
resource development, institutional reform and rural roads, small
irrigation, drinking water, community buildings towards physical
infrastructure development are being conducted through VDCs,
municipalities and DDCs under grant assistance.
13.154 As per the recent constitutional provision, all former local bodies have
been converted to 481 Gaunpalika (Rural Municipalities), 246
municipalities, 13 sub-metropolitan cities and 4 metropolitan cities as
local level since March 10, 2017. All those bodies have been delivering

260
public services and carrying out construction and development works as
converted local levels since the same date.

Vital Event Registration


13.155 The Department of Central Registration has been raising public
awareness on the registration of vital events such as birth, death,
migration, marriage and divorce. The trend has been started with the
consideration of birth registration certificate as a basis for school
admission, SEE registration and in the process of obtaining citizenship
certificate.
13.156 The number of local body using online system for registering vital events
has reached 205 in the first eight months of current fiscal year 2016/17.
Such number is estimated to reach 600 within current fiscal year. A total
of 68,494 births and 10,974 deaths have been registered through online
system in the first eight month of current fiscal year.
Table 13 (ab) : Registration of Vital Events
Personal Event Description 2012/13 2013/14 2014/15 2015/16 2016/17*

Female 385536 488802 421503 290556 247961


Birth Registration
Male 429485 540879 456090 310240 259487
Total 822429 1029681 877593 600796 507448
Female 43045 48270 47707 37028 30150
Death Registration
Male 69823 74087 66645 57663 43660
Total 113368 121849 114352 94691 73810
Marriage Registration 208211 137316 224826 158795 129562
Divorce Registration 557 1104 1355 1065 1199
Migration Registration 81946 94613 121429 69827 47907
Number of Outgoing
137499 141871 173454 88431 64498
Migrants
Number of Incoming
158901 167034 193560 106103 72681
Migrants
Total Number of
296251 308981 196170 194534 137179
Migrants
*
Of the first eight months
Source : Central Record Bureau
Note: The total number may vary due to the receipt of non-segregated vital statistics of male and female from most of
the districts.

Social Security
13.157 The government of Nepal has been distributing allowance at different
rates to socio-economically backward senior citizens, single and widow
women, differently able citizens, children and endangered indigenous

261
and ethnic people. As directed by Social Security Program Procedure
2015, monthly allowance at various rates has been distributed in first
eight months of current fiscal year 2016/17 to total of 2,246,491
individuals comprising of 1,083,243 senior citizens, 619,546 single and
window women, 24,401 endangered ethnic people, 33,115 people with
complete disability, 43,758 people with partial disability and 442,428
children from Karnali Zone as well as children below 5 years belonging
to suppressed (Dalit) family. The names of 1,433,066 social security
allowance recipients from 39 districts are entered in management
information system (MIS) in the first eight months of current fiscal year.
13.158 Senior citizens of 70 years of age and over, irrespective of any target
group, are provided with additional allowance of Rs. 1,000 a month as
medical treatment expenses to from current FY 2016/17. Such provision
has benefited 931,623 senior citizens above 70 years of age.
Table 13 (ac) : Distribution of Social Security Allowance (In Number)
Target Group Monthly Rate (Rs.) 21013/14 2014/15 2015/16* 2016/17*

Senior Citizen (Other) 1000 655737 688930 792379 839696


Senior Citizen (Dalit) 1000 244646 234634 230085 211611
Senior Citizen (Karnali) 1000 28797 27855 27355 31936
Total Senior Citizens 929180 951419 1049819 1083243
Single Women above 60 Years 1000 341106 231352 172842 102178
Single Women (Widow) Below 60 Years 1000 313613 417201 487286 517368
People with Complete Disability 2000 25492 27203 30912 33115
People with Partial Disability 600 6863 6375 31408 43758
Endangered Indigenous/Ethnic 1000 19223 20308 23346 24401
Children 200 537118 506718 469922 442428
Total 2172595 2160576 2265535 2246491
Senior Citizen above 70 Years (Medical Expense- Rs. 1000) 905725 931623
* Of the first eight months
Source: Central Record Bureau

13.159 Child Nutrition Program has been extended to Accham, Rautahat and
Bajhang districts that are considered as backward districts through
poverty mapping targeting all children below 5 years of age aside from
those from Karnali zone and dalit families. This program expects to
benefit more than 87.000 additional children.
Golden Thousand Days Program
13.160 Golden Thousand Days Program is in operation in 292 VDCs of
Okhaldhunga, Khotang, Udaypur, Saptari, Sunsari, Siraha, Sindhuli,
262
Ramechhap, Dhanusha, Mahottari, Makwanpur, Bara, Parsa, Rautahat
and Sarlahi districts with a view to improve nutrition related habits,
practices, concepts of pregnant women and children below 2 years of age
in an initiative of community.
13.161 Nutrition based programs are in operation in the first eight months of
current fiscal year 2016/17. Of the total 6,355 nutrition related proposal
prepared by various clusters of this program, 4,732 of them have been
approved and implemented.
Environment Friendly Local Governance Program
13.162 Environment-friendly local governance program is in operation in 54
municipalities and 60 VDCs of 14 districts of Koshi and Gandaki
watershed areas. During fiscal year 2015/16, 232 ponds were conserved,
156 parks constructed, 71,779 plants protected, trees planted on road
sides and public land, 63 nurseries managed and memorial gardens
constructed. In first eight months of the current fiscal year, 46 individuals
from program implemented districts have been imparted with two-day
training of trainer training on climate change budget code and its
identification at local bodies. Besides, a total of 5,390 households, 42
settlements and 1 ward have been declared as environment friendly.
Inclusive Development
13.163 As per the concept of inclusive development, remote and special areas,
monastery management development programs apart from
indigenous/ethnic, neglected people, oppressed and Dalits, madhesis,
muslim, backward groups, Badi communities are in implementation.
Similarly, inclusion of women and gender balance components in every
plan and program has been made mandatory.
13.164 Social, economic, cultural and educational development as well as
uplifting of indigenous ethnic community and Chepang tribe residing in
various geographical areas of country has been achieved through the
program for uplifting and development of indigenous/ethnic group near
to extinction, and Chepangs. Programs like inclusion, social justice,
gender mainstreaming; cultural, religious heritage conservation, and
promotion; awareness raising on the rights of indigenous and ethnic
groups; socio economic living standard improvement; and program on
scholarship and institutional capacity development have been carried
out.
13.165 Neglected, oppressed and Dalit class uplift and development program has
been conducted through neglected, oppressed Dalit class uplift and

263
development committee to bring them in the mainstream by overall
development of extremely backward Dalit community on social and
economic terms. In fiscal year 2015/16, high school scholarship to 884
individuals, public service commission preparation class to 160
individuals and skill oriented training to 300 individuals were provided.
Ironsmith (Aaran) improvement program has been carried out in 5
districts. High school scholarships to 572 individuals, public service
commission preparation classes to 160 individuals, and skill oriented
training to 100 individuals were provided; and sewing machines were
distributed to 100 individuals in first eight months of current fiscal year
2016/17.
13.166 Backward community development committee has been conducting
programs in 26 districts with the objective of improving economic, social
and cultural condition by formulating policies favorable to rights of
Madhesis, Muslims as well as for backward classes and other
marginalized groups of people. During fiscal year 2015/16, women
tailoring and cutting training to 210 individuals, public service
examination preparation classes to 175 individuals, and house wiring
training to 100 individuals were provided. By first eight months of
current fiscal year 2016/17, training have been imparted to women
tailoring and cutting training 20 individuals; public service preparation
classes 40 individuals; and house wiring training 60 individuals.
13.167 National Dalit Commission,formed for protection of Dalit’s right and
overall development, has been mainly carrying out a number of works
like formulating Dalit related policy; conducting studies on traditional
skill of Dalits; collecting and analyzing data of landless Dalits;
conducting social awareness and justice related programs; coordinating
and organizing Dalit related programs as well as developing a Dalit data
resource center. During fiscal year 2016/17, a total of 7,241 Dalit caste
certificate has been distributed whereas investigation of 20 incidents out
of 44 complaints related with caste discrimination and untouchability has
been conducted. In addition, Dalit caste certification was issued to 1,601
individuals, whereas 17 incidents out of 60 complaints related to caste
discrimination and untouchability were monitored. Social awareness
program has also been carried out.
13.168 National Muslim Commission has been working for economic uplifting
of Muslim community through their religious, cultural, lingual
empowerment. In first eight months of current fiscal year 2016/17,
interaction related with Muslim community, training related with equity,

264
public service examination preparation class and study on local status of
mosque Madrasa has been completed.
13.169 Remote Area Development Program is in operation as a target program
supporting poverty eradication in northern border districts; districts
extremely remote from geographical perspective; and 22 districts
backward from economic perspective. In first eight months of current
fiscal year 2016/17, construction of 10 suspension bridges, 1
electrification project, 4 irrigation projects, 2 drinking water projects,
33.6 Km track/mule track and 3 (three) projects on other community
infrastructures have been completed.
13.170 Various programs are ongoing through Badi community uplift
development committee for social, economic, cultural, and educational
development as well as uplift of oppressed Badi community within the
Dalit group. In first eight months of current fiscal year 2016/17,
construction of 67 toilets, two (2) drinking water schemes, public service
examination preparation class to 9 individuals, skill development training
to 159 individuals, and 4 (four) days agriculture, health and sanitation
awareness seminar and workshop have been completed.
13.171 Conservation, promotion and expansion of monasteries scattered all over
the country and important archeological items as well as public property
at monasteries have been carried out through Buddha philosophy
promotion and monastery development program. During fiscal year
2015/16, solar distribution to 14 monasteries, 1 Buddhism philosophy
study tour, 1 discourse program, monastery management, ancient
thangka conservation and sorig medicine training as well as 10 ancient
model monastery conservation trainings have been completed. In first
eight months of current fiscal year 2016/17, one (1) Buddhism
philosophy study tour, 1 discourse program, solar distribution to 34
monasteries and monastery management training program have been
completed.
13.172 Draft Bills have been prepared related to forming National Dalit
Commission, National Inclusive Commission, Indigenous Ethnic
Commission, Madeshi Commission, Tharu Commission and Muslim
Commission. Organization & Management (O & M) work has reached at
its final stage for preparing appropriate organizational structure of such 6
(six) commissions.

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Local Governance and Community Development Program
13.173 This program is in operation in maximum peoples’ participation as per
decentralized governance system with the objective of making local
body/level governance public oriented. This program has accorded
emphasis on accountable local governance, social mobilization, service
delivery and resource mobilization. Similarly, it focuses on local
economic development and livelihood program, local public audit
management reform and financial risk reduction, environment and
children friendly local governance and issues to be incorporated in recent
local governance system in changed context.
13.174 In first eight months of the current fiscal year 2016/17, Citizens' forum in
all VDCs and all wards of Municipalities of the country, formed with
objective of materializing inclusive development effort by directly
involving citizens of all levels and classes in local governance, are being
engaged in preparing local plans, their prioritization, implementation,
monitoring, and work as watch dogs in delivery of public goods and
services.
Challenges
13.175 The constitution of Nepal has guaranteed the rights with regard to the
social sector including right to education, rights relating to health, right
to clean environment, rights of women, rights of children, rights of
Dalits, rights to social justice, rights to social security. Mobilization of
resources is much needed for the gradual implementation of fundamental
rights relating to social sector. Enhancing bearing capacity with respect
to state’s fiscal structure is a big challenge.
13.176 Tasks of handing over resources and managing education (teacher and
school) for work responsibility of education and work operation in the
management of federalism have remained as a challenge.
13.177 Developing human resource by linking education sector with economic
development thereby making education practical, entrepreneurial and
employment oriented and increasing the output as compared to the
investment made in this sector have been a daunting challenge.
13.178 Tasks of providing easy access to quality education by enhancing
education quality in community schools and maintaining good
governance in institutional schools are are full of challenges.

266
13.179 Improving education quality of community schools through digitization
of education by increasing access to information technology is also a big
challenge.
13.180 Health services served by private health institutions are more city
centered and beyond public access as compared to that of public health
institutions. Increasing public trust and improving the services of health
institutions by ensuring and maintaining quality services thereby
establishing people’s equal access to health amid huge investment made
in health sector are full of challenges.
13.181 It is a challenging task to provide continuity to health services at the local
level while handing it over to local communities that are currently
being carried out through central level by enabling them through
capacity enhancement so that they could effectively manage social
security arrangements (cost free medicines, various types of cash
assistance) being offered in the health sector. .
13.182 Health sector has been facing plethora of problems respectively in the
area of coherent availability of resources. Such problems include:
absence of medicine and equipment when medical doctors are present;
doctors are absent where medicines, equipment and hospital buildings
exist; absence of technicians for operation and maintenance of equipment
even when modern tools are available, and electricity supply not
available to run equipment. Health sector calls for comprehensive
managerial reform to get such problems resolved.
13.183 Challenge has emerged of transforming the women affected by the
devastating earthquake of 2015 from possibly getting trapped in the
vicious circle of poverty, sexual and gender violence, and human
trafficking, while stopping from getting discriminated in their access to
means and resources.
13.184 It is a challenging task to bring women, children, and social inclusiveness
related programs being implemented through government and non-
government sectors to the target groups in an integrated and inclusive
manner.
13.185 Conduct a review of reservation program in operation in the State entities
through the inclusiveness program since past 10 years, and provide
continuity to it as provisioned in the Constitution of Nepal requires
additional resources. Arranging such resources for operating the program
is a challenge.

267
13.186 Task of internally adjusting the programs related to social inclusiveness,
and mainstreaming at central, provincial, and local levels while
implementing federalism poses a daunting challenge.
13.187 It is a challenging task to implement multidimensional policies and
programs with innovative ideas amidst the dearth of capacity, means,
and resources to bring children, youths, women, senior citizens, Madhesi,
Muslim, Dalit, indigenous people, ethnics (Janajatis), physically
challenged people and socially, economically and geographically
backward communities into mainstream of the society by empowering
them..
13.188 Since social welfare is a comprehensive sector, achieving overarching
goal of social welfare by maintaining harmony between government and
non-government sectors amid difficulties in collecting resources is a
challenge.
13.189 Addressing issues such as implementing programs as set by National
Youth Development Policy, 2015 and Youth Vision-2025 and creating
entrepreneurial and employment opportunities within the country itself
for skilled, semi-skilled and unskilled outbound youths for foreign
employment is a big challenge.
13.190 Numerous challenges exist in the sports sector namely, construction of
infrastructure required for the development of this sector; arranging
adequate resources for maintenance and improvement; using advanced
technology in the world of Nepalese sports; mobilizing the private sector
in sports activities; and making arrangements for time relevant trainings
and practices for both players and the instructors..
13.191 Nepal lies between the two giant nations in terms of their population and
economic expansion. Task of promoting sports tourism by developing
most urgent infrastructures in sports is a big challenge.
13.192 It is a challenging task to develop competent youth by developing sports
ground and open spaces as required for child development.
13.193 Despite gradual progress in drinking water and sanitation services,
challenges still lie ahead to deliver service in line with sustainable
development goal due to high population density in towns in contrast to
scattered settlements in rural areas.
13.194 Task of propelling development works ahead by protecting environment
amid problems including untimely rainfall, floods, landslides, droughts

268
that have emanated from climate change and global warming is
challenging.
13.195 There remains a challenge on conducting socio-economic development
activities in a balanced way as per the spirit of inclusive development for
serving the interest of people from all castes and creeds, languages,
classes, communities and regions as per the spirit of inclusive
development.
13.196 Building a robust national solidarity by maintaining harmony among
Nepali multicultural societies through the conservation of tangible and
intangible heritages is a big challenge.

269
14. Public Enterprises

The concept of the State's need to play effective Role for accelerating
economic growth was pushed ahead to improve the situation of great global
recession in the decade of 1930s. Since then public enterprises started being
established to provide goods and services of basic necessities; to create
foundation for infrastructure development; and to create employment by
infusing dynamism in the economy. With emphasis given to establishment of
public enterprises since political change of 1949, a total of 66 public
enterprises had been established by the year 1993. Policy of disinvestment in
public enterprises was initiated upon adoption of liberalization policy after
1990. As of now, 30 public enterprises have been privatized. Analyses of
financial indicators of 37 public run and privatized enterprises do not show
sign of satisfactory performances. Effectiveness of public enterprises is seen
weak due to various factors like absence of clear-cut policy guidelines for
operating public enterprises; lack in selection of professional leadership;
absence of skillful mobilization of available human resource; and failure in
making proper utilization of resources like financial/physical/ information.
Therefore, proving justification of public enterprises is necessary through
result oriented mobilization of available resources while working out clear-
cut policy on disinvesting in public enterprises.

14.1 Establishment of public enterprises was initiated globally from the


decade of 1930s for carrying ahead the task of setting up welfare state
and initiating the planned development process. Basically, establishment
of Public enterprises was taken up in Nepal as well after onset of
democracy in 1950 together with initiation of planned development.
Objectives behind establishment and operation of Public Enterprises
(PEs) have been to make essential goods and services to consumers
easily available at fair prices; develop infrastructure for sustainable
development; and generate employment.
14.2 The number of public enterprises that totaled 66 by 1993 AD (2049 BS)
41 are now in existence after adoption of disinvestment policy while
remaining 37 are in operation. Thirty (30) public enterprises have been
privatized following the adoption of disinvestment policy. Many of
public enterprises were efficient in the past though both public and
privatized enterprises have not been so effective failing to keep pace with
the changing time.

270
14.3 Based on economic indicators as a parameter, majority of public
enterprises have failed to demonstrate efficiency. Government presence
needs to be made effective in areas like development of banking and
financial services, infrastructure development, basic goods, drinking
water, electricity, petroleum products, sale, and distribution of other food
items, and employment promotion etc. Additionally, public enterprises
have important role to play on entrepreneurship promotion; conservation
and promotion of traditional arts and culture; development and expansion
of the infrastructure sector; and strengthening of supply system making
arrangement of distribution of essential commodities, by curbing
possibilities of cartels, syndication, and black marketing at times of
national catastrophes.
14.4 The share of dividend (of Rs. 7.81 billion) received from public
enterprises stood at 1.62 of the total revenue of Rs. 482.75 billion
government Nepal collected in FY 2015/16. Although, the ratio of
dividend government of Nepal received against investment it has made in
public enterprises stood at 5.4 percent, which is less than the market
interest rate, contribution of these enterprises has been positive from
perspective of income tax, value added tax, and non-tax revenue
collection perspective
14.5 Contribution of gross operating income of public enterprises in FY
2015/17 stood at 10.7 percent of GDP of Rs. 2,247 billion. Of this,
highest contribution of public enterprises in the trading sector has been
4.77 whereas contribution of the social sector enterprises has been the
lowest with 0.07 percent.
14.6 Government of Nepal made additional investment of Rs. 21.73 billion in
FY 2015/16. In that period, Rs. 20,462.3 million was received against
adjustment of accounts and payment of principle amount and loan
investment stands at 2 percent of total budget expenditure of 1,048,921.3
million.
14.7 Operating income of a public enterprise is considered a major financial
work efficiency. Gross operating income of public enterprises in fiscal
year 2015/16 reached Rs. 20,497.5 million. Such income in the preceding
fiscal year 2014/15 stood at Rs. 276,161.2 million. Similarly in FY
2015/16, 23 public enterprises were operating in profit while 12 were
making losses with net income of all public enterprises totaling to Rs.
34,960 million.

271
14.8 By fiscal year 2015/16, total share investment of Government of Nepal in
public enterprises amounted to Rs. 143,568.2 million; and by the same
period total loan investment has reached Rs. 130,506.8 million. In fiscal
year 2014/15 share investment made in these corporations amounted to
Rs. 126,160.3 million and loan investment made was Rs. 129,961.8
million.
14.9 Due diligence audit of public enterprises that presents their actual
financial condition could not be done as yet. Assets of public enterprises
could not be assessed as these enterprises maintain book value of their
assets based on historical value in accordance with the current financial
practice. As per financial details submitted by public enterprises, their net
fixed asset in FY 2015/16 stood at Rs. 225,105.5 million.

Sector-wise Analysis of Public Enterprises


Industrial Sector
14.10 Of the seven public enterprises in existence in the industries sector
namely, Dairy Development Corporation, Herbs Production and
Processing Company Ltd;, Hetauda Cement Industry Ltd., Janakpur
Cigarette Factory Ltd., Nepal Drugs Ltd., Udaypur Cement Industry
Ltdd., and Nepal Orind and Magnesite Ltd., Janakpur Cigarette Factory
Ltd., is currently closed. Operating income of these public enterprises in
this sector stood at Rs. 6,434.6 million in FY 2015/16. in FY 2014/15,
such income stood at Rs. 6,628.0 million.
14.11 Net profit earned by public enterprises in FY 2015/16 stood at Rs. 247.2
million. In FY 2014/15, these enterprises had made net loss of Rs. 608.9
million.
14.12 Net accumulated loss of public enterprises of this sector reached Rs.
11,294.9 million in FY 2015/16. The size of such accumulated loss
shows the problematic status of these enterprises. Fixed assets of
corporations of this sector depreciated by 209.1 million from that of FY
2014/15 and stood at Rs. 3,061.5 in FY 2015/16.
14.13 The Outstanding debt of public enterprises operating in the industries
sector has reached Rs. 6,834.3 million, which is more by Rs.384.0
million from fiscal year 2014/15. Despite Rs. 5,445.5 million investment
the government of Nepal has made by FY 2015/16, it has received no
dividend so far.

272
14.14 Shareholders' fund of public enterprises of the industries sector has
turned negative by 4,886.0 million by FY 2015/16. Of the public
enterprises in this sector, Dairy Development Corporation and Hetauda
Cement Ltd. have got their accounts audited up to fiscal year 2015/16
while rest of the enterprises have yet to get it done.
14.15 Of the total number of 2,241 persons employed in enterprises of this
sector in FY 2015/16, administrative expenditure stood at Rs. 532.1
million, while the unfunded post retirement liability amounted to Rs.
1,735.5 million.

Trade Sector
14.16 A total of six public enterprises exist under the trade sector, i.e.
Agriculture Inputs Company Ltd, National Seeds Company Ltd, National
Trading Limited, Nepal Food Corporation, Nepal Oil Corporation Ltd,
and The Timber Corporation of Nepal Ltd. These corporations earned
operating income of Rs. 107,184.6 million in FY 2015/16. As compared
to FY 2014/15, this income is less by 29 percent.
14.17 In FY 2015/16, net profit of enterprises of this sector increased by 27.48
percent reaching Rs. 19,247.0 million. By FY 2015/16, accumulated loss
of this sector, however, reached Rs. 575.4 million. Total accumulated
loss of Nepal oil corporation in FY 2014 had reached Rs.19,742.2
million, which reversed to a profit of 1,583.0 million bringing down the
accumulated loss amount of public enterprises of this sector.
14.18 Net fixed assets of enterprises of this sector increased by Rs. 1,988.7
million in FY 2015/16 from that of previous fiscal year. In this period,
assets of the Agricultural Inputs Company and Nepal Oil Corporation
have decreased from the previous fiscal year. Increase in fixed assets of
other enterprises has caused overall growth in assets of the trade sector.
14.19 The total outstanding debt of public enterprises operating in the trade
sector in FY 2015/16 stood at Rs. 929.3 million with a decrease of
12,626.5 million as compared to FY 2014/15. The reason behind such
reduction in the debt is due to repayment of the government debt by
Nepal Oil Corporation. In addition, share holders' fund in FY 2015/16
reached Rs. 2,601.0 million with a positive growth in share holders' fund
of Nepal Oil Corporation, which was negative by Rs. 13,760.7 million in
FY 2014/15.

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14.20 Out of six enterprises in this sector, audits of four enterprises, namely
Agricultural Inputs Company Ltd., National Seeds Company Ltd., Nepal
Oil Corporation, and the Timber Corporation, have been completed for
up to FY 2015/16. Timely audits of other enterprises are still due. By FY
2015/16, the Government has invested Rs. 1,999.3 million in enterprises
of the trading sector, but it has not received any dividend so far.
14.21 Of the total number of 1,728 persons employed in enterprises of this
sector in FY 2015/16, administrative expenditure stood at Rs. 1,639.7
million, while the unfunded post retirement liability amounted to Rs.
672.0 million.

Services Sector
14.22 Seven public enterprises exist in this sector, namely, Nepal Civil
Aviation Authority, Nepal Airlines Corporation, Industrial Estate
Management Ltd, Nepal Transit and Warehousing Co. Ltd, National
Productivity and Economic Development Center Ltd, National
Construction Company Nepal Ltd and , Nepal Engineering Consultancy
Service Center Ltd. and National Construction Company Nepal Ltd. Of
these seven, two enterprises, i.e. National Construction Company Nepal
Ltd. and Nepal Engineering Consultancy Service Center Ltd have been
closed.
14.23 These enterprises in the services sector earned operating income of Rs.
14,555.4 million in FY 2015/16, which is higher by 14 percent as
compared to the previous fiscal year. Net income of these enterprises in
FY 2015/16 reached Rs. 1,518.7 million with a growth of 6.19 over the
previous fiscal year 2014/15.
14.24 By FY 2015/16, net accumulated profit of this sector reached
Rs.10,683.1 million. Net fixed assets of the services sector corporations
grew from 23,671.9 million in FY 2014/15 to Rs. 23,883.1 million by the
end of FY 2015/16. Reason for this growth is attributable to the growth
in the net fixed asset of Nepal Civil Aviation Authority.
14.25 In comparison to FY 2014/15, total debt liability of the services sector
corporations to the government of Nepal in FY 2015/16 came down by
1,651.2 million and totaled 1,337.6 million. Main reason for this is
payment of installments made against the government loan by Nepal
Transit and Warehousing Co. Ltd., Nepal Airlines Corporation and Nepal
Civil Aviation Authority.

274
14.26 Similarly, share holders' account remained positive by Rs. 32,663.1
million in fiscal year 2015/16. Government has made share investment of
Rs. 21,597.8 million in public enterprises of the social sector by fiscal
year 2015/16, while it has received dividend of Rs. 4.2 million from the
only one public corporation, the Industrial Estates Management
Company Ltd.

14.27 Out of seven public enterprises in the social sector, only one the
Industrial Estates Management Co. Ltd. has conducted auditing of its
accounts up till fiscal year 2015/16 while that of others are not done yet.
By fiscal year 2015/16 the number of employees in these public
enterprises totaled 2,787. By the end of this period, total administrative
expenditure reached Rs. 2,233.0 million and the unfunded post retirement
liabilities totaled Rs. 996.8 million.

Social Sector
14.28 This sector comprises a total of 5 Public enterprises namely, Cultural
Corporation, Gorkhapatra Corporation, Janak Educational Materials
Center Ltd, Nepal Television, and National Housing Company Ltd.
Operating income of these public enterprises in fiscal year 2015/16
totaled Rs. 1,626.4 million, which is higher by 14 percent from fiscal
year 2014/15.
14.29 Net loss of public enterprises of this sector in fiscal year 2015/16 stood at
Rs. 182.1 million. By the end of fiscal year 2015/16, such loss reached
2,243.4 million. By fiscal year 2015/16 , net assets of these enterprises
came down by Rs. 50.8 million from that of fiscal year 2014/15 and
totaled Rs. 1,062.4 million.
14.30 By fiscal year 2015/16 outstanding debt these enterprises owed to the
government stood at Rs. 1,007.5 million. Cultural Corporation,
Gorkhapatra Corporation, and Janak Educational Materials Center Ltd.
have not repaid their part of loans. As no additional loan investment was
made in these corporations in this period, there has been no change in
loan investment amount. Likewise, shareholders' investment fund of
public enterprises of this sector has has not changed. Moreover,
shareholders' fund of these enterprises has reached Rs. 3,501.5 million.
14.31 Out of five public enterprises in this sector, only the Cultural Corporation
has its accounts audited for fiscal year 2015/16, while others have failed
to do so on time. Against share investment of Rs. 3,122.0 made in these

275
public enterprises by fiscal year 2015/16, situation is that no dividend has
been received so far.
14.32 In fiscal year 2015/16 the number of employees working in these public
enterprises totaled 1,487 with annual administrative expenditure in this
period amounting to Rs. 726.4 million, whereby unfunded post
retirement liabilities stood at Rs. 854.2 million.

Public Utilities Sector


14.33 There are three enterprises namely Nepal Telecom Company Ltd, Nepal
Electricity Authority (NEA), and Nepal Water Supply Corporation in the
public utilities sector. The net operating income of these PEs in fiscal
year 2015/16 amounted to Rs. 73,056.7 million. This is 4 percent over
and above of such income in fiscal year 2014/15. Net profit of public
enterprises in this sector reached Rs. 4,323.9 million in fiscal year
2015/16. The reason for decline in net profit in this fiscal year has been
due to 79 percent rise on the loss of Nepal Electricity Authority and 99
percent that of Nepal Water Supply Corporation.
14.34 In FY 2015/16 net accumulated operating profit of this sector has
reached 35,338.0 million. Out of this, accumulated loss only of Nepal
Electricity Authority stood at Rs. 34,647.0 million. As compared to fiscal
year 2014/15, fixed assets of public utility sector enterprises in fiscal year
2015/16 decreased by 19,950.7 million and stood at Rs. 191,807.2
million.
14.35 Outstanding debt of public utility corporations payable to government of
Nepal climbed to 18,602.9 million with an increase of Rs. 15,182.1
million from that of fiscal year 2014/15. In fiscal year 2015/16,
shareholders' fund in these enterprises has reached Rs. 104,743.5 million.
14.36 Out of 3 (three) public enterprises in this sector, Nepal Electricity
Authority and Nepal Telecom Ltd. have completed auditing of their
accounts up till fiscal year 2015/16 while that of Nepal Water Supply
Corporation has been completed up to fiscal year 2014/15. By fiscal year
2015/16, Government has made share investment of Rs. 83,190.3 million
in utilities sector public enterprises, and received a dividend of Rs.
6,862.0 million in fiscal year 2015/16.
14.37 In fiscal year 2015/16 the number of employees working in these public
enterprises totaled 12,729. Annual administrative expenditure of these

276
enterprises amounted to Rs. 726.4 million, whereby unfunded post
retirement liabilities stood at Rs. 28,051.1 million.

Financial Sector
14.38 There were 11 public enterprises in the financial sector, namely
Agriculture Development Bank Ltd., Rastriya Beema Sansthan, NIDC
Development Bank, Rastriya Banijya Bank Ltd., Deposit and Credit
Guarantee Corporation Ltd., Nepal Housing Finance Company Ltd.,
Nepal Stock Exchange Ltd., Citizens Investment Trust, and
Hydroelectricity Investment and Development Company Ltd. Of these,
after the merger Nepal Housing Finance Company, currently there are 10
enterprises in operation. Operating income of public enterprises in the
sector in fiscal year 2015/16 stood at Rs. 37,639.8 million. This is higher
by 9.51 percent as compared to fiscal year 2014/15.
Chart 14 (a) : Operating Income of Public Enterprises

#Including Nepal Bank Limited.

14.39 Net profit enterprises of this sector earned in fiscal year 2015/16 reached
Rs. 9,806.1 million. Such profit in fiscal year amounted to Rs. 9,034.5
million. Total accumulated loss of this sector reached Rs. 3,083.4 million
by the end of fiscal year 2015/16.

277
Chart 14 (b) : Total Investment of Public Enterprises

#Including Nepal Bank Limited.

14.40 The net fixed assets of PEs of financial sector rose by Rs.790.4 million
and reached Rs. 3302.5 in FY 2015/16 as compared to that of FY
2014/15. Outstanding debt these enterprises owe to the government of
Nepal stood at Rs. 1,795.2 million with a decrease of Rs. 743.3 million
from that of fiscal year 2014/15. Likewise, shareholders' fund of these
enterprises has reached 70,872.6 million. In the previous year, such fund
stood at Rs.56,234.7 million.
14.41 Out of nine (9) nine enterprises of this sector, Agricultural Development
Bank, NIDC Development Bank Ltd., Rashtriya Banijya Bank Ltd.,
Nepal Stock Exchange Ltd., and Hydropower Investment and
Development Company Ltd., have performed auditing of their accounts
up to fiscal year 2015/16 while that of other have not been completed in
time. Share investment in enterprises of this sector by fiscal year 2015/16
amounts to 28,213.2 million. In fiscal year 2015/16, dividend totaling Rs.
945.1 million was received from Agricultural Development Bank and
Nepal Stock Exchange Limited.

278
Chart 14 (c) : Net Profit/loss of Public Enterprises

#Including Nepal Bank Limited.

14.42 In fiscal year 2015/16 the number of employees working in public


enterprises of the financial sector totaled 8,036 with administrative
expenditure in this period totaling Rs. 10,766.9 million, whereby
unfunded post retirement liabilities totals Rs. 370.6 million.
Challenges
14.43 There is need of long-term policy together with clear-cut vision on
operations of public enterprises. Fundamental challenge is of clarifying
the disinvestment related policy.
14.44 The challenge is of selecting leader for skillful operation of public
enterprises based on professional leadership selection criteria.
14.45 Making work responsibilities of positions in public enterprises clear and
objective, and executing these responsibilities by preparing objectives,
strategy, working policy, and responsibilities based on scientific
standards is full of challenges.
14.46 Mobilization of result-oriented mobilization of resources for achieving
effectiveness in mobilization of means and resources of public
enterprises inclusive of financial, physical, and information is a
challenge.
14.47 Operating public enterprises whereby their goals and objectives could be
achieved through improvisation of service-flow remains a challenge.

279
15. Post-Earthquake Reconstruction and New Construction

The devastating earthquake of April 25, 2015 and subsequent aftershocks


took lives of 8,891 people while other 22,302 people sustained injury. The
earthquake resulted in full and partial damage of more than 800,000
individual homes of 14 fully affected and 17 partially affected districts of the
country. Thousands of physical structures like government buildings, cultural
heritages, schools and health buildings, rural roads, bridges, drinking water,
electricity generating power houses, and agricultural land and tourist trails
were damaged. Various initiatives have been taken by the government, non-
government, civil society, and development partners for reconstruction and
development of integrated settlements. Grants are being distributed for
construction of home for individuals. Works on reconstruction of damaged
structures including individuals' homes, educational and health institutions,
archeological heritages, and public buildings are underway though, work
progress has not accelerated to the desired extent. Therefore, reconstruction
and settlement development works need to be accomplished in time by
making arrangement for availing resources like budget, human resource, and
construction materials in coordination of all entities. Additionally,
settlements need to be developed by constructing robust physical
infrastructure and residential buildings.

15.1 The devastating earthquake of April 25, 2015 and aftershocks caused
huge destruction of human, physical, and natural resources. Institutional
and Policy arrangements have been made for construction of earthquake-
damaged structures that are sustainable and strong in a planned way at
the earliest possible. Post disaster needs assessment report, post disaster
five-year plan, and framework for reconstruction has been prepared.
National reconstruction and rehabilitation policy 2015, reconstruction of
earthquake affected structures Act, 2015 and related Rules 2015 are
being executed. Various Working Procedures and Manuals have been
drafted.
15.2 A National Reconstruction Authority has been formed for expeditious
reconstruction of earthquake affected structures. District Coordination
Committees have been formed in worst affected 14 districts.
Development Assistance Coordination Facilitation Committee has been
formed for coordination and effective utilization of assistance flow from
development partners.
15.3 As per the Post Disaster Recovery Framework (PDRF) prepared by the
National Reconstruction Authority, the cost of reconstruction is

280
estimated at Rs. 837.74 billion. The government of Nepal decision to
provide additional grant of Rs. 100,000 to earthquake affected
beneficiaries will add another Rs. 100 billion, thereby totaling the
estimated cost to Rs. 937.74 billion.
15.4 Economy in FY 2015/16 could not expand due to devastating earthquake
and border obstructions. Post earthquake reconstruction work also could
not move ahead as expected. As a result GDP stagnated at 0.01 percent.
As construction of private homes and public structures picked up in the
current FY 2016/17, surge in demand for construction materials,
increased production, and creation of employment opportunities has
positive impact on economic growth. Imports increased as domestic
production could not cope with as demand for construction materials
(steel, fittings, cement and timber) surged, domestic production could not
cope with such rise in demand, leading to increased imports thereby
resulting in higher trade deficit.

Grant for Private Homes


15.5 Grants to earthquake affected beneficiaries have been set at Rs. 300,000
by raising from earlier Rs. 200,000. Accordingly, grant distribution
working procedures has been amended with arrangement of distributing
Rs. 50,000 in first installment, Rs. 150,000 in the second and Rs. 100,000
in the third.
15.6 A total of 555,605 beneficiaries have been identified including 532,236
identified through detailed surveys carried out in 11 highly earthquake
affected districts outside of Kathmandu valley, and 23,369 identified by
addressing grievances. By first eight months of the current FY 2016/17,
grant agreements have been concluded with 480,787 home owners while
Rs. 50,000 has been deposited in bank accounts of each 471,562
homeowner as the first installment. Additionally, distribution of second
and third installments has begun to those who have started home
constructions by meeting the required standards. By first eight months of
the current FY 2016/17, 1,438 home owners have received the second
installments of Rs. 150,000 each. In addition, 44 home owners have
received the third installment of Rs. 100,000 each.
15.7 A total of 98,308 beneficiaries have been identified including those
94,459 through Verification Model surveys conducted in Municipalities
of Kathmandu, Bhaktapur and Lalitpur districts and detailed household
surveys in the then village development committees together with 3,849

281
identified through grievance addressing method. By first three months of
FY 2016/17, agreements have been concluded with 73,827 beneficiaries
belonging to three districts of Kathmandu valley. Accordingly, first
installment of Rs. 50,000 has been deposited in bank accounts of each of
such 62,183 beneficiaries. In addition, distribution of second and third
installments of grant in Kathmandu valley has begun.
Table 15 (a) : Private Housing Grants Beneficiaries and Grant Distribution
Total TotalHousehold Number
Household having Grants Receiving
Total no. of No. of Beneficiaries Total no. of having Grant in First Second
S. No. District Identified Added through Identified
Agreement Installment Installment
Beneificiaries Grievance Beneificiaries

1 Sindhupalchwok 78537 1380 79917 74924 74912 200


2 Okhaldhunga 19819 346 20165 18489 18301 -
3 Nuwakot 65773 3511 69284 62046 61575 252
4 Ramechhap 43609 1043 44652 40911 39759 -
5 Dolakh 51940 9263 61203 48113 47079 258
6 Gorkha 58503 2484 60987 53349 52675 55
7 Dhading 70581 2589 73170 63978 62849 -
8 Kavrepalanchow 67731 1743 69474 60721 59751 -
9 Rasuwa 11236 393 11629 9682 9106 -
10 Sindhuli 34269 20 34289 28269 26162 73
11 Makwanpur 30238 597 30835 20305 19339 600
12 Kathmandu 42500 1286 43786 35136 30893 -
13 Lalitpur 25893 1074 26967 18535 11737 -
14 Bhaktapur 26066 1489 27555 20156 19553 -
Total 626695 27218 653913 554614 533691 1438
Source: National Reconstruction Authority

Chart 15 (a) : Grant Distribution in most earthquake affected 14 districts

Source: National Reconstruction Authority

282
15.8 By first eight months of FY 2016/17, 44,457 beneficiaries have started
construction of their homes. Of these, 17,240 beneficiaries have
constructed homes on their own. Beneficiaries totaling 25,268 have
submitted applications for availing second installment of Rs 150,000. Of
these, 7,759 applications have been verified for payment of the second
installment.
15.9 Verification Model-based survey in Earthquake less affected 17 districts
is in its final phase.
15.10 A total of 205,335 grievances were registered at the local level by first
eight months of FY 2016/17. Of those registered grievances, 45 percent
or 93,374 grievances have been cleared.
15.11 Carpentry and masonry training was imparted to 17,306 people by first
eight months of FY 2016/17. Similarly, training of trainers, and
Inspection Manual related training was provided to 2,500 technicians.
Training of trainer was imparted to additional 200 technicians of Nepal
Army.
15.12 Final year 985 students of Civil/Architect Engineering have been deputed
as volunteers in five districts with arrangements made for inspecting
homes under construction and in process of construction.
15.13 Out of 475 settlements identified as vulnerable to earthquake, geological
survey of 117 such settlements was conducted in FY 2015/16. Of the
remaining 358, studies of 200 such settlements were conducted in first
eight months of FY 2016/17. The studies have recommended relocation
of 111 settlements.
15.14 Construction of integrated settlements is underway on efforts of various
institutions, organizations, communities.
15.15 In FY 2015/16, 17 Earthquake resilient building designs for
reconstruction of private homes were approved. Additional 6 types of
home designs appropriate for Nepalese rural condition has been
approved.

Reconstruction of educational institutions


15.16 The number of schools requiring reconstruction earthquake affected
buildings total 7,923. Understandings have been reached with
national/international NGOs for construction of 1,250 schools. Those

283
organizations have completed construction of 325 schools by first eight
months of FY 2016/17 while construction works of 925 schools are
ongoing. Constructions of 1,062 schools of 31 earthquake affected
districts are being carried out through School Management Committees,
and construction of one model school each in 14 highly earthquake
affected districts are ongoing. Construction of 132 schools is underway
with the assistance of aid agencies.

Reconstruction of Health Institutions


15.17 Earthquake has damaged 929 health institutions. Of these, 440 are
completely damaged, 210 partially damaged, and 279 received minor
damages. Construction of 200 health institutions has been completed by
first eight months of the current FY 2016/17. Repair, retrofitting, and
construction works of damaged hospitals and health centers of
earthquake affected districts have been initiated with assistance of
various international donor agencies and friendly nations. Detailed
engineering studies of highly affected 14 districts damaged health
infrastructures in highly affected 14 districts were completed in FY
2015/16. Similarly, detailed studies of damages in other 17 districts have
been completed by first eight months of the current FY 2016/17.
15.18 In addition to construction of health institutions, aid agencies have been
providing necessary medicines, instruments, medical and other materials
supports like furniture, solar panels etc. as needed. Rehabilitation of
injured people, maternity health camps, psycho-social treatment, drinking
water and sanitation, nutrition, programs against gender violence,
provision of additional health workers in districts highly affected by
earthquake has raised the number of health service recipients.
Reestablishment of health services from newly constructed health
institutions has supported the health related fundamental rights of the
people.

Reconstruction of Archeological Heritages


15.19 The devastated earthquake has affected about 750 cultural heritages of 25
districts including that of Kathmandu valley. Of these, 133 were
completely damaged. Rest received partial and nominal damages.
Conservation and reconstruction of 132 important heritages is estimated
to be completed by the end of the current FY 2016/17.

284
15.20 Emphasis is given on utilizing masons with traditional skills and
construction materials as well for maintaining originality of heritages
while carrying out reconstruction of damaged heritage sites of historical
and archeological importance. Reconstructions of ancient heritages
listed in the World Heritage sites are ongoing, while reconstruction of
Boudhnath Temple has been completed in the process.
15.21 By first eight months of FY 2016/17, a total of Rs. 82.9 million has
already been collected in the National Reconstruction Fund under the "I
will build my Dharahara" campaign. Likewise, the detailed design for
reconstruction of Dharahara has been completed with responsibility of
reconstruction assigned to Nepal Telecom.

Reconstruction of Government Buildings


15.22 Earthquake affected Government buildings requiring reconstructions
(excepting security entities) are 2,688, and those requiring repair and
maintenance total 3,776. Construction of various government buildings
has been initiated. Contracts for construction of 51 buildings are already
signed by first eight months of FY 2016/17. Retrofitting of 32 buildings
is completed out of 282 buildings requiring so doing. Detailed
Engineering Design work on 91 buildings is ongoing. Constructions of
44 government buildings in various districts have been started.
Construction of 76 structures of temporary nature has been completed out
of 288 such requirements.
15.23 Out of damaged 1,280 buildings belonging to security entities,
construction of 583 nominally damaged buildings has been completed.
Construction of another 608 buildings is estimated to be completed by
the end of the current FY 2016/17

Other Works
15.24 Out of 7,741 drinking water projects fully and partially damaged by the
earthquake, reconstruction of 363 projects have been completed. Another
146 drinking water projects are estimated to be completed in the current
FY 2016/17.
15.25 Budget has been provided to the Ministry of Agriculture Development,
Ministry of Livestock Development, and Ministry of Industry to carry
out economic rehabilitation and livelihood related programs in
earthquake affected districts to uplift the earthquake victims.

285
Challenges
15.26 As ascertaining budget for reconstructions and new constructions of
earthquake damaged homes, cultural heritages, and physical and social
infrastructures is due, timely completion of these works by ascertaining
the budget availability is a challenge.
15.27 Distribution of first installment of grant for private homes construction in
14 districts highly affected by earthquake is in its final stage, distribution
of the second and third installments is not able to pick of the desired
speed. For this, it is challenge to provide momentum to reconstruction
works by deputing additional technical human resource; by producing
carpenters and masons at the local level; and through smooth supplies of
construction materials.
15.28 Concluding grant agreements are still due with issues like transfers of
ownership of some beneficiaries' land still due; homes constructed on
public land; lack of citizenship certificate; and problems of uncultivated
public land and landlessness. Reconstruction of homes for beneficiaries
by resolving such issues poses a challenge.
15.29 Post earthquake integrated settlement development in areas with high
risk; making future infrastructure construction earthquake resilient in the
context of managing the federalism; and creating basis for earthquake
resilient new constructions at the local level and economic centers are
full of challenges.
15.30 As registration of grievances at the local level concerning reconstruction
of individual homes are on the rise every day, giving momentum to
reconstruction works by timely addressing such grievances is a daunting
challenge.
15.31 Construction of earthquake risk reduced physical infrastructure that
would be operated on public-private partnership basis is a challenging
task.

286
ANNEXES
List of Tables Page
1. Economic Activity
Table 1.1 : Gross Value Added by Industrial Division 1
Table 1.2 : Gross Value Added by Industrial Division 2
Table 1.3 : Gross Output by Industrial Division 3
Table 1.4 : Annual Growth Rate of GDP by Industrial Classification 4
Table 1.5 : Composition of GDP by ISIC Division 5
Table 1.6 : GDP, GDP Growth Rate, Deflators and Composition 6
Table 1.7 : GDP by Expenditure Category 7
Table 1.8 : GDP by Expenditure Category 8
Table 1.9 : Intermediate Consumption by Industrial Division 9
Table 1.10 : Gross Disposable Income and Saving 10
Table 1.11 : Gross Domestic Product Deflator (Implicit) 11
Table 1.12 : Summary of Macroeconomic Indicators 12
2. Public Finance
Table 2.1: Public Income and Expenditure 13
Table 2.2: Tax Revenue 14
Table 2.3: Non Tax Revenue 15
Table 2.4: Functional and Service Description (Current Expenditure) 16
Table 2.5: Functional and Service Description (Capital Expenditure) 17
Table 2.6 : Principal Repayment, Loan and Share Investment in Public Enterprises 18
Table 2.7 : Foreign Aid Commitment by Sources 19
Table 2.8 : Foreign Aid Disbursement by Sources 19
Table 2.9: Functional and Service Description of Foreign Grants Received 20
Table 2.10: Functional and Service Description of Foreign Loan Received 21
Table 2.11 : Net Outstanding Foreign Debt 22
Table 2.12 : Ownership Pattern of Government Bonds and Treasury Bills 23
3. Price and Supply
Table 3.1 : Overall Urban Consumers' Price Index 24
Table 3.2 (a): National Urban Consumers' Price Index by Commodities Group 25
Table 3.2 (b): National Urban Consumers' Price Index by Commodities Group 26
Table 3.2 (c): Urban Consumers' Price Index by Commodities Group, Kathmandu 27
Table 3.2 (d): Urban Consumers' Price Index by Commodities Group, Terai 28
Table 3.2 (e): Urban Consumers' Price Index by Commodities Group, Hill 29
Table 3.3 (a) :National Wholesale Price Index, Annual 30
Table 3.3 (b): National Wholesale Price Index 31
Table 3.3 (c): National Wholesale Price Index 32
Table 3.4 (a) : National Salary and Wage Rate Index, Annual 33
Table 3.4 (b) : National Salary and Wage Rate Index, first Eight Months 34
i
Table 3.4(c) : National Salary and Wage Rate Index (Annual Average) 35
Table 3.5 : Average Retail Price of Some Major Commodities 36
Table 3.6 (a) : Price Situation of Petroleum Products in FY 2016/17 37
Table 3.6 (b) : Price Situation of Some Petroleum Products (Kathmandu Valley)@ 38
Table 3.7 : Supply Situation of Some Petroleum Products 39
4. Money and Banking
Table 4.1 : Monetary Survey 40
Table 4.2 (a) : Factors Affecting Money Supply 41
Table 4.2 (b) : Factors Affecting Money Supply 42
Table 4.3: Sources and Uses of Banks and Financial Institutions& 43
Table 4.4 : Sources and Uses of Fund of Commercial Banks 44
Table 4.5 : Sectoral Outstanding Loan of Commercial Banks+ 45
Table 4.6 : Sources and Uses of Fund of Development Banks ("B"- Class FIs) 46
Table 4.7 : Sources and Uses of Finance Companies 47
Table 4.8 : Sources and Uses of Funds of Microfinance Including Rural Development
48
Bank
Table 4.9 : Sources and Uses of Cooperatives (Licensed by NRB) 49
Table 4.10 : Sources and Uses of Fund of Employees Provident Fund 50
Table 4.11 : Sources and Uses of Fund of Citizen Investment Trust 51
5. Capital Market
Table 5.1 : Status of Primary Market Trend 52
Table 5.2 : Status of Secondary Market Trend 53
6. External Sector
Table 6.1: Direction of Foreign Trade 54
Table 6.2: Commodity Trade by SITC Group 55
Table 6.3 (a):Export of Major Commodities to India 56
Table 6.3 (b):Export of Major Commodities of China 57
Table 6.3 (c): Export of Major Commodities to Other Countries 58
Table 6.4 (a): Import of Selected Commodities from India 59
Table 6.4 (b): Import of Selected Commodities from China 60
Table 6.4 (c): Import of Selected Commodities from Other Countries 61
Table 6.5: Income and Expenditure of Convertible Foreign Exchange 62
Table 6.6: Gross Foreign Assets of Banking System 63
Table 6.7: Balance of Payments Summary 64
Table 6.8 : Balance of Foreign Assests and Liabilities
7. Poverty Alleviation and Employment
Table 7.1: Status of Foreign Employment by Country 66
8. Agriculture, Industry and Tourism
Table 8.1: Area, Production and Yield of Principal Food Crops 67
Table 8.2: Area, Production and Yield of Principal Cash Crops 68
Table 8.3: Other Crops Production 69

ii
Table 8.4: Livestock Production 69
Table 8.5: Quantity index of Agriculture Commodities 70
Table 8.6: Use and Sales of Chemical Fertilizer 71
Table 8.7: Extension of Additional Irrigation Facilities 71
9. Industry Sector
Table 9.1: Detail on Industrial Area 72
Table 9.2: Tourist Arrivals by Major Countries 73
Table 9.3: Tourist Arrival by Purpose of Visit 74
Table 9.4: Foreign Exchange Earning from Tourism Sector 75
Table 9.5: Mountaineering Expendition Teams 76
Table 9.6: Number of Hotel and Hotel Beds 76
10. Urban Development
Table 10.1: Status of Energy Consumption (toe: tones of oil equivalent) 77
Table 10.2: Status of Electricity Generation and Consumption 78
Table 10.3: Consumption of Petroleum Products 79
11. Transport and Communication
Table 11.1: Extension of Road Facilities 80
Table 11.2 (a): Number of Vehicles Registered 80
Table 11.2 (b): Vehicles Registration 81
13. Social Sector
Table 13.1 : Status of Eearly Childhood Development (ECD) Education 82
Table 13.2: Scholarships for School Children (FY 2016/17)/17 83
Table 13.3: Technical and Vocational Education Programs 84
Table 13.4: Distribution of Schools of Various Levels by Geographical Regions 85
Table 13.5: Ratio of Student Per Teacher (Academic Year 2016) 85
Table 13.6 (a) : Numeric Detail of Teachers Training at the Basic levels (Academic
86
Year 2016)
Table 13.6 (b) : Numeric Detail of Teachers Training at the Secondary Levels
86
(Academic Year 2016)
Table 13.7: Number of Students Appeared and Passed in Regular Secondary Education
87
Examination-SEE ( Previously named SLC Examination)
Table 13.8: Number of Students appreard in and passed out Final Examination of
88
Grades 11 and 12
Table 13.9 : Number of Teachers 89
Table 13.10 : Number of Schools and Students 90
Table 13.11: Number of Students selected for various level and subjects 91
Table 13.12: Number of Colleges and Students under Various Universities 92
Table 13.13: University Level Students Enrollment and Production Details as of FY
93
2015/16
Table 13.14 : Number of Students Enrolled in Higher Level of Education 94
Table 13.15 : Number of Graduate Students in TU 95
Table 13.16: Major Health Indicators and Achievements 96

iii
Table 13.17: Number of Medical Specialists registered with Nepal Medical Council as
97
of January 2017.
Table 13.18: Details on Number of Senior Citizens Taking Shelters at Elderly Homes
98
in FY 2015/16
Table 13.19 : Number of Service Recipients through Service Centers and Sub-Centers 99
operated for victims of Domestic Violence
Table 13.20 : Extension of Drinking Water and Sewerage Facilities 100
14. Public Enterprises and Privatization
Table 14.1: Financial Performance of PEs 101
15. Post-Earthquake Reconstruction and New Construction
Table 15.1: Resources required for Sector-Wise Reconstruction and Rehabilitation 102

iv
Table 1.1 : Gross Value Added by Industrial Division
(At Current Price)
Rs. In Million
Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Agriculture and forestry 243323 305477 391519 473270 500465 527869 585951 616572 645084 691169
Fishing 3868 4076 4236 4879 5819 6646 8659 9328 10487 11588
Mining and quarrying 4375 5084 5926 6956 8166 9569 11003 11875 12256 15031
Manufacturing 57185 65447 70924 80531 91164 100312 112995 118980 118615 135584
Electricity, gas and water 15219 14629 15244 16002 17518 20553 21362 22051 21221 27868
Construction 54134 63741 77289 89356 98539 109488 126364 139289 141318 171842
Wholesale and retail trade 105306 124121 161067 179306 198164 229872 271573 289566 292204 323502
Hotels and restaurants 11503 13943 17347 21057 25307 29886 35309 40479 41459 47390
Transport, storage and communications 76818 92618 95304 105834 122354 140735 155765 164976 167405 193974
Financial intermediation 33539 39100 46083 50111 58529 62183 79363 91406 107758 129232
Real estate, renting and business activities 73636 81625 93747 106236 123213 139157 152984 166947 191325 236986
Public administration and defence 14352 18556 21695 24830 30547 32236 44324 51422 52720 71796
Education 48722 62642 61384 67739 81797 91566 115254 129363 141613 173084
Health and social work 10963 13744 15382 17087 20431 22327 27725 32929 33708 41681
Other community, social and personal service activities 26500 34089 41423 46947 55461 58026 73541 86521 94745 121895
Gross value added 779,442 938,890 1,118,571 1,290,142 1,437,474 1,580,426 1,822,173 1,971,706 2,071,917 2,392,621
Financial intermediation services indirectly measured ( FISIM) 24185 29362 35156 41660 49992 55205 63435 72616 84093 98633
Gross value added at basic prices 755,257 909,528 1,083,415 1,248,482 1,387,482 1,525,221 1,758,738 1,899,089 1,987,824 2,293,989
Taxes less subsidies on products 60401 78744 109358 118472 139862 169790 205802 231060 259603 305245
Gross domestic product at producers price 815,658 988,272 1,192,774 1,366,954 1,527,344 1,695,011 1,964,540 2,130,150 2,247,427 2,599,234
P = Preliminary, R = Revised
Note : Nepal Standards Industrial Classification (NSIC) Major Division 16 & 17 estimates are included in Major Division 15.
Source: Central Bureau of Statistics

1
Table 1.2 : Gross Value Added by Industrial Division
(At 2000/01 Prices)
Rs. In Million
Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16R 2016/17P
Agriculture and forestry 192514 198257 202196 211271 220950 223310 233448 235775 235330 247691

Fishing 3045 3207 3321 3516 3781 3883 4074 4362 4875 5210

Mining and Quarrying 2513 2531 2585 2637 2770 2825 3159 3233 3143 3401

Manufacturing 39545 39132 40291 41923 43445 45059 47888 48068 44223 48510

Electricity gas and water 13204 12750 12989 13564 14690 14731 15213 15331 14196 16037

Construction 33043 33371 35430 37126 37207 38119 41580 42766 40904 45672

Wholesale and retail trade 66962 70481 75237 76298 78967 84693 93918 96191 93749 102898

Hotels and restaurants 8851 9056 9646 10244 11000 11605 12391 12804 11564 12383

Transport, storage and communications 48226 51585 54657 57504 62160 66915 70420 74807 76314 81273

Financial intermediation 24142 24632 25327 26163 27071 26825 27818 28626 31075 33162

Real estate, renting and business activities 45544 46421 47818 48894 50346 52961 54889 55313 57373 60399

Public Administration and defence 9319 10012 10405 10806 11203 11822 12418 13516 13857 15193

Education 32716 36233 38638 39799 42019 44505 46646 49021 52473 54682

Health and social work 7474 8191 8581 9012 9591 10021 10472 11662 12041 12833

Other community, social and personal service activities 18204 20520 22966 24599 26163 27416 28722 32317 33503 35473

Agriculture 195559 201464 205517 214786 224730 227193 237522 240138 240206 252901

Non Agriculture 349744 364914 384570 398569 416631 437496 465535 483655 484415 521917

Total GVA including FISIM 545303 566377 590086 613355 641362 664690 703057 723793 724621 774818

Financial intermediation indirectly measured 23043 23725 24327 25821 26725 26919 28830 29524 30277 32280

GDP at basic prices 522260 542652 565759 587534 614637 637771 674227 694269 694344 742539

Taxes less subsidies on products 42257 47455 52770 52160 55643 60183 65528 70066 73147 82510

Gross domestic product at producers price 564517 590107 618529 639694 670279 697954 739754 764336 767492 825049

P = Preliminary, R = Revised
Source: Central Bureau of Statistics 2
Table 1.3 : Gross Output by Industrial Division
(at current prices)
Rs.In million

Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Agriculture and forestry 329401 409987 514871 623303 665747 702132 782868 822811 858600 924720
Fishing 4373 4583 4746 5466 6519 7446 9701 10451 11750 12983
Mining and Quarrying 5508 6397 7461 8751 10264 12069 13889 14990 15419 18969
Manufacturing 204107 233408 252869 289004 327500 360081 405667 426757 423106 485159
Electricity gas and water 26418 26273 29478 31492 34919 40951 44465 47193 48604 68466
Construction 111639 131278 158728 182614 199349 220321 255864 280608 280033 344493
Wholesale and retail trade 125402 148759 193036 214907 237502 275462 325403 346958 350146 387602
Hotels and restaurants 37536 45311 56041 68376 82634 95080 108943 120407 129634 145936
Transport, storage and communications 133125 159245 164024 182706 209870 237569 260138 274677 287845 329639
Financial intermediation 43907 51110 59995 71395 86688 97114 110667 126830 145426 173225
Real estate, renting and business activities 107887 121293 139581 157203 180501 201429 219793 242548 269303 321035
Public Administration and defence 19224 24030 28879 33070 39928 40732 51245 60246 66829 87608
Education 63263 80889 82495 92741 109502 121384 143787 158080 170585 203471
Health and social work 15357 19009 21863 24727 28955 31169 37411 47482 53050 64445
Other community, social and personal service activities 37453 47278 58629 66473 78372 82947 106832 119211 133666 180201
Gross output at basic prices 1264601 1508850 1772694 2052228 2298248 2525886 2876673 3099248 3243996 3747952

Note : NSIC Division 16 & 17 are included in the Division 15.


P = Preliminary, R = Revised
Source: Central Bureau of Statistics

3
Table 1.4 : Annual Growth Rate of GDP by Industrial Classification
(at constant prices)
In percentage
Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2015/16P
Agriculture and forestry 5.80 2.98 1.99 4.49 4.58 1.07 4.54 1.00 -0.19 5.25
Fishing 7.29 5.31 3.55 5.88 7.53 2.71 4.90 7.09 11.76 6.86
Mining and Quarrying 5.46 0.72 2.14 2.01 5.03 1.98 11.85 2.34 -2.78 8.19
Manufacturing -0.87 -1.05 2.96 4.05 3.63 3.72 6.28 0.37 -8.00 9.70
Electricity gas and water 1.06 -3.44 1.87 4.43 8.30 0.28 3.27 0.78 -7.40 12.97
Construction 5.06 0.99 6.17 4.79 0.22 2.45 9.08 2.85 -4.36 11.66
Wholesale and retail trade 4.15 5.25 6.75 1.41 3.50 7.25 10.89 2.42 -2.54 9.76
Hotels and restaurants 6.92 2.31 6.52 6.20 7.38 5.50 6.77 3.33 -9.68 7.09
Transport, storage and communications 9.37 6.97 5.95 5.21 8.10 7.65 5.24 6.23 2.02 6.50
Financial intermediation 9.23 2.03 2.82 3.30 3.47 -0.91 3.70 2.91 8.55 6.72
Real estate, renting and business activities 10.44 1.93 3.01 2.25 2.97 5.19 3.64 0.77 3.72 5.27
Public Administration and defence 0.62 7.43 3.93 3.85 3.67 5.53 5.04 8.84 2.52 9.64
Education 6.44 10.75 6.64 3.01 5.58 5.92 4.81 5.09 7.04 4.21
Health and social work 8.51 9.59 4.77 5.02 6.43 4.48 4.50 11.37 3.25 6.58
Other community, social and personal service activities 9.38 12.72 11.92 7.11 6.36 4.79 4.77 12.52 3.67 5.88
Agriculture 5.82 3.02 2.01 4.51 4.63 1.10 4.55 1.10 0.03 5.29
Non Agriculture 5.88 4.34 5.39 3.64 4.53 5.01 6.41 3.89 0.16 7.74
Total Gross Value Added including FISIM 5.86 3.86 4.19 3.94 4.57 3.64 5.77 2.95 0.11 6.93
Financial intermediation services indirectly measured (FISIM) 7.30 2.96 2.54 6.14 3.50 0.72 7.10 2.41 2.55 6.62
GDP at basic prices 5.80 3.90 4.26 3.85 4.61 3.76 5.72 2.97 0.01 6.94
Tax less subsidies on products 10.08 12.30 11.20 -1.16 6.68 8.16 8.88 6.93 4.40 12.80
GDP at producers' prices 6.10 4.53 4.82 3.42 4.78 4.13 5.99 3.32 0.41 7.50
P = Preliminary, R = Revised
Source: Central Bureau of Statistics
4
Table 1.5 : Composition of GDP by ISIC Division
(at current prices)
In percentage
Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P

Agriculture and forestry 31.22 32.54 35.00 36.68 34.82 33.40 32.16 31.27 31.13 28.89

Fishing 0.50 0.43 0.38 0.38 0.40 0.42 0.48 0.47 0.51 0.48

Mining and Quarrying 0.56 0.54 0.53 0.54 0.57 0.61 0.60 0.60 0.59 0.63

Manufacturing 7.34 6.97 6.34 6.24 6.34 6.35 6.20 6.03 5.72 5.67

Electricity gas and water 1.95 1.56 1.36 1.24 1.22 1.30 1.17 1.12 1.02 1.16

Construction 6.95 6.79 6.91 6.93 6.86 6.93 6.93 7.06 6.82 7.18

Wholesale and retail trade 13.51 13.22 14.40 13.90 13.79 14.54 14.90 14.69 14.10 13.52

Hotels and restaurants 1.48 1.49 1.55 1.63 1.76 1.89 1.94 2.05 2.00 1.98

Transport, storage and communications 9.86 9.86 8.52 8.20 8.51 8.90 8.55 8.37 8.08 8.11

Financial intermediation 4.30 4.16 4.12 3.88 4.07 3.93 4.36 4.64 5.20 5.40

Real estate, renting and business activities 9.45 8.69 8.38 8.23 8.57 8.81 8.40 8.47 9.23 9.90

Public Administration and defence 1.84 1.98 1.94 1.92 2.13 2.04 2.43 2.61 2.54 3.00

Education 6.25 6.67 5.49 5.25 5.69 5.79 6.33 6.56 6.83 7.23

Health and social work 1.41 1.46 1.38 1.32 1.42 1.41 1.52 1.67 1.63 1.74

Other community, social and personal service activities 3.40 3.63 3.70 3.64 3.86 3.67 4.04 4.39 4.57 5.09
P = Preliminary, R = Revised
Source: Central Bureau of Statistics

5
Table 1.6 : GDP, GDP Growth Rate, Deflators and Composition (by Broad Industry Group)
Rs. In million
Fiscal Year
Descripiton
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
GDP at basic prices (current) 755257 909528 1083415 1248482 1387482 1525221 1758738 1899089 1987824 2293989
Primary Sector 251566 314637 401681 485105 514450 544084 605613 637776 667827 717788
Secondary Sector 126538 143816 163457 185889 207221 230353 260721 280320 281154 335294
Tertiory Sector 401338 480436 553433 619148 715803 805989 955838 1053610 1122936 1339539
GDP at basic price (constant) 522260 542652 565759 587534 614637 637771 674227 694269 694344 742539
Primary Sector 198072 203995 208102 217424 227500 230018 240681 243371 243349 256302
Secondary Sector 85792 85253 88710 92613 95342 97909 104681 106165 99323 110220
Tertiory Sector 261438 277130 293275 303319 318520 336763 357694 374257 381949 408296
Annual GDP (constant price) Growth Rate 5.80 3.90 4.26 3.85 4.61 3.76 5.72 2.97 0.01 6.94
Primary Sector 5.82 2.99 2.01 4.48 4.63 1.11 4.64 1.12 -0.01 5.32
Secondary Sector 1.64 -0.63 4.05 4.40 2.95 2.69 6.92 1.42 -6.45 10.97
Tertiory Sector 7.35 6.00 5.83 3.42 5.01 5.73 6.22 4.63 2.06 6.90
Implicit GDP Deflator 142.94 165.77 189.56 210.34 224.13 237.77 259.18 272.41 285.93 308.80
Primary Sector 127.01 154.24 193.02 223.12 226.13 236.54 251.62 262.06 274.43 280.06
Secondary Sector 147.49 168.69 184.26 200.72 217.35 235.27 249.06 264.04 283.07 304.20
Tertiory Sector 153.51 173.36 188.71 204.12 224.73 239.33 267.22 281.52 294.00 328.08
Composition of GDP (in percentage)
Primary Sector 32.28 33.51 35.91 37.60 35.79 34.43 33.24 32.35 32.23 30.00
Secondary Sector 16.23 15.32 14.61 14.41 14.42 14.58 14.31 14.22 13.57 14.01
Tertiory Sector 51.49 51.17 49.48 47.99 49.80 51.00 52.46 53.44 54.20 55.99
P = Preliminary, R = Revised
Source: Central Bureau of Statistics

6
Table 1.7 : GDP by Expenditure Category
(at current prices)
Rs. In million
Fiscal Year
Expenditure
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Gross Domestic Product at producers price 815658 988272 1192774 1366954 1527344 1695011 1964540 2130150 2247427 2599234
Total consumption 735470 895042 1056185 1176030 1359539 1516129 1730312 1934046 2161519 2332741
Government consumption 80663 106527 119189 130917 164370 168407 201915 232532 259704 304738
Collective Consumption 54996 69838 77473 86072 109570 112987 142052 176324 192478 216283
Individual Consumption consumption 25667 36689 41716 44845 54800 55420 59863 56208 67225 88455
Private consumption 641085 772762 916993 1022126 1167861 1318561 1493375 1662962 1861157 1981514
Food 385037 484552 574991 650786 754156 850553 976132 1100694 1228426 1287139
Non-food 179999 203232 241164 256722 285288 322633 356845 389869 449781 498442
services 76049 84978 100839 114618 128418 145376 160399 172399 182950 195934
Nonprofit institutions 13721 15753 20002 22987 27307 29161 35022 38552 40659 46489
Actual final consumption expenditure of household 680474 825204 978712 1089958 1249969 1403142 1588260 1757722 1969041 2116458
Gross capital formation 247272 313029 456489 519268 526889 632601 808758 831983 757680 1104962
Gross fixed capital formation 178446 211039 264888 292730 317185 382972 462013 595823 647294 878605
Government 32993 44278 53665 63806 71555 75386 94979 110254 160502 189293
Private 145453 166761 211223 228924 245629 307586 367034 485568 486792 689312
Change in stock * 68826 101990 191602 226538 209704 249629 346744 236160 110386 226357
Net exports of goods and services -167084 -219799 -319900 -328345 -359084 -453719 -574531 -635879 -671772 -838469
Imports 271291 342536 434198 450059 512948 634899 800552 883444 885110 1092108
Goods 217963 279228 366693 388371 454653 547294 696373 761773 756488 938574
Services 53328 63308 67506 61687 58295 87605 104179 121671 128623 153533
Exports 104207 122737 114298 121714 153863 181180 226022 247565 213338 253638
Goods 61971 69907 63178 68702 81512 85990 100961 98276 74866 90400
Services 42236 52830 51121 53013 72352 95191 125061 149288 138472 163238
R = Revised
*Since Change in stock is derived residually; statistical discrepancy /error is also included
Source: Central Bureau of Statistics

7
Table 1.8 : GDP by Expenditure Category
(at 2000/2001 Prices)
Rs. in mllion
Fiscal Year
Expenditure
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Gross Domestic Product at producers price 564517 590107 618529 639694 670279 697954 739754 764336 767492 825049
Total consumption 492849 522910 552676 563138 652646 662894 694875 718331 712901 738253
Government consumption 52378 57462 58220 65852 76343 71196 78283 84089 83736 93990
Collective consumption 35711 37671 37843 43295 50891 47766 55074 63763 62061 66708
Individual consumption 16667 19791 20377 22557 25452 23429 23209 20326 21675 27282
Private consumption 430763 455468 482984 485249 563275 579370 603014 620245 614403 629501
Food 251351 271145 278893 275202 306399 315154 331517 340991 336869 345147
Non-food 125499 129201 142196 143614 174713 179705 184571 189845 188675 193311
Services 53914 55122 61895 66433 82163 84511 86926 89409 88858 91042
Nonprofit institutions 9707 9980 11473 12036 13027 12328 13578 13997 14762 14762
Actual final consumption expenditure of households 457138 485239 514833 519843 601755 615128 639801 654568 650840 671545
Gross capital formation 165035 179205 240919 241554 189273 233723 287075 314080 346716 447598
Gross fixed capital formation 108922 109459 127647 126723 119765 139425 155310 185706 162902 207263
Government 20138 22152 24205 27622 27018 27445 31928 34801 38455 44654
Private 88783 87307 103442 99101 92746 111980 123382 150906 124448 162609
Change in stock 56113 69746 113273 114831 69508 94298 131765 128373 183814 240335
Net exports of goods and services -93367 -112007 -175067 -164998 -171639 -198663 -242196 -268075 -292125 -360802
Imports 171509 193175 247762 236156 244161 278673 337219 369549 379743 463259
Goods 137795 157472 209242 203780 216413 240221 293336 318654 325788 403714
Services 33714 35703 38520 32377 27748 38452 43884 50896 53955 59545
Exports 78142 81168 72695 71158 72522 80010 95024 101474 87618 102457
Goods 46470 46231 38489 38477 38083 38229 42344 39028 27983 32243
Services 31672 34937 34206 32682 34439 41782 52680 62446 59634 70215
R = Revised
Source: Central Bureau of Statistics

8
Table 1.9 : Intermediate Consumption by Industrial Division
(at current prices)
Rs. in million
Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Agriculture and forestry 86078 104510 123352 150033 165282 174264 196916 206239 213516 233551
Fishing 505 507 509 587 700 800 1042 1123 1262 1394
Mining and Quarrying 1133 1313 1535 1795 2098 2500 2886 3115 3164 3938
Manufacturing 146922 167961 181945 208473 236336 259768 292672 307777 304491 349575
Electricity gas and water 11199 11644 14234 15491 17401 20398 23103 25142 27383 40598
Construction 57505 67537 81439 93258 100810 110833 129501 141319 138715 172651
Wholesale and retail trade 20096 24639 31969 35600 39338 45590 53830 57392 57941 64100
Hotels and restaurants 26034 31367 38694 47319 57327 65194 73634 79928 88175 98547
Transport, storage and communications 56307 66628 68719 76872 87516 96833 104373 109701 120441 135665
Financial intermediation 10369 12010 13911 21284 28159 34930 31304 35423 37667 43993
Real estate, renting and business activities 34252 39668 45834 50967 57287 62272 66809 75601 77978 84049
Public administration and defence 4872 5474 7184 8240 9381 8496 6921 8824 14109 15812
Education 14541 18247 21111 25002 27705 29818 28534 28717 28973 30388
Health and social work 4394 5265 6481 7639 8524 8842 9686 14553 19343 22764
Other community, social and personal service activities 10953 13189 17205 19526 22910 24921 33290 32690 38922 58306
Intermediate consumption at purchasers' prices 485159 569960 654122 762086 860774 945459 1054500 1127543 1172079 1355330
P = Preliminary, R = Revised ########
Note : NSIC Division 16 & 17 are included in the Division 15.
Source: Central Bureau of Statistics

9
Table 1.10 : Gross Disposable Income and Saving
(at current prices)
Rs. in million
Fiscal Year
Particulars
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P
Gross Domestic Product (GDP) 815658 988272 1192774 1366954 1527344 1695011 1964540 2130150 2247427 2599234
Compensation of employees 317195 365839 428763 505940 644522 704060 800586 867724 917950 974863
Taxes less subsidies on production 60838 79456 110220 119145 140703 170900 207095 232507 261012 306698
Taxes less subsidies on products 437 712 862 673 841 1110 1294 1447 1409 1453
Operating surplus/ mixed income 60401 78744 109358 118472 139862 169790 205802 231060 259603 305245
Gross domestic product at producers' price 437625 542977 653791 741869 742118 820051 956858 1029918 1068464 1317672
Primary income, net 7947 11750 9117 7549 12291 13079 32752 34243 34004 27785
Gross national income (GNI) 823605 1000021 1201891 1374503 1539635 1708090 1997291 2164392 2281431 2627019
Current transfers, net 182817 249487 282648 307859 422772 497701 631500 709957 778187 843658
Gross National disposable income (GNDI) 1006422 1249508 1484539 1682362 1962407 2205791 2628792 2874349 3059618 3470677
Final consumption expenditure 735470 895042 1056185 1176030 1359539 1516129 1730312 1934046 2161519 2332741
Gross domestic saving 80188 93230 136589 190924 167805 178882 234227 196103 85907 266493
Gross national saving 270952 354466 428354 506332 602868 689662 898479 940302 898098 1137936
Gross capital formation 247272 313029 456489 519268 526889 632601 808758 831983 757680 1104962
Lending/Borrowing (Resource gap) (+/-) 23680 41437 -28135 -12936 75979 57060 89722 108320 140419 32974
R = Revised
Source: Central Bureau of Statistics

10
Table 1.11 : Gross Domestic Product Deflator (Implicit)

Fiscal Year
Industries
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2015/16P

Agriculture and forestry 126.39 154.08 193.63 224.01 226.51 236.38 251.00 261.51 274.12 279.04
Fishing 127.03 127.10 127.58 138.78 153.92 171.15 212.56 213.83 215.11 222.42
Mining and quarrying 174.09 200.87 229.23 263.79 294.84 338.76 348.27 367.27 389.88 441.98
Manufacturing 144.61 167.25 176.03 192.09 209.84 222.62 235.96 247.53 268.22 279.50
Electricty gas and water 115.26 114.74 117.36 117.97 119.25 139.53 140.42 143.83 149.48 173.77
Construction 163.83 191.01 218.15 240.69 264.84 287.22 303.91 325.70 345.49 376.25
Whole-sale and retail trade 157.26 176.11 214.08 235.01 250.95 271.42 289.16 301.03 311.69 314.39
Hotels and restaurants 129.96 153.97 179.84 205.55 230.05 257.53 284.96 316.16 358.52 382.69
Transport, storage and communications 159.29 179.54 174.37 184.05 196.84 210.32 221.19 220.54 219.36 238.67
Financial intermediation 138.92 158.74 181.95 191.53 216.21 231.81 285.30 319.31 346.77 389.70
Real estate, renting and business activities 161.68 175.84 196.05 217.28 244.73 262.76 278.71 301.82 333.48 392.37
Public Administration and defence 154.01 185.35 208.50 229.78 272.68 272.68 356.92 380.45 380.45 472.57
Education 148.92 172.89 158.87 170.20 194.67 205.74 247.08 263.89 269.88 316.53
Health and social work 146.68 167.79 179.25 189.61 213.02 222.81 264.76 282.36 279.94 324.79
Other community, social and personal service activities 145.57 166.12 180.37 190.85 211.99 211.65 256.04 267.73 282.79 343.62
Implicit GDP deflator 142.94 165.77 189.56 210.34 224.13 237.77 259.18 272.41 285.93 308.80
R = Revised
Source: Central Bureau of Statistics

11
Table 1.12 : Summary of Macroeconomic Indicators

Fiscal Year
Description
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R 2016/17P

Percapita GDP (NRs) 31946 38172 45435 51594 56880 62283 71225 76201 79325 90521
Percapita GNI (NRs) 32257 38626 45782 51879 57337 62764 72413 77426 80525 91488
Percapita GNDI (NRs) 39417 48262 56549 63499 73082 81051 95308 102823 107992 120869
Percapita GDP at constant price 22110 22793 23561 24144 24962 25646 26820 27342 27089 28733
Percapita GNI at constant price 22567 23301 24152 24664 25582 26397 27939 28422 28163 29627
Percapita GNDI at constant price 27577 29114 29831 30188 32607 34088 36773 37745 37769 39142
Annual Change in nominal percapita GDP (%) 10.47 19.74 18.53 13.32 10.52 9.46 15.37 6.92 4.00 13.61
Annual change in real percapita GDP(%) 4.64 3.09 3.37 2.48 3.39 2.74 4.58 1.95 -0.92 6.07
Percapita GDP (USD) 491 497 610 714 702 708 725 766 746 853
Percapita GNI in (USD) 496 502 614 718 708 714 737 778 757 862
Percapita GNDI (USD) 606 628 759 879 902 921 970 1033 1015 1139
Gross domestic saving as percentage of GDP 9.83 9.43 11.45 13.97 10.99 10.55 11.92 9.21 3.82 10.25
Gross national saving as percentage of GDP 33.22 35.87 35.91 37.04 39.47 40.69 45.73 44.14 39.96 43.78
Exports of goods and services as percentage of GDP 12.78 12.42 9.58 8.90 10.07 10.69 11.51 11.62 9.49 9.76
Imports of goods and services as percentage of GDP 33.26 34.66 36.40 32.92 33.58 37.46 40.75 41.47 39.38 42.02
Resource Gap as percentage of GDP (+/-) 2.90 4.19 -2.36 -0.95 4.97 3.37 4.57 5.09 6.25 1.27
Gross Fixed Capital Formation as percentage of GDP 21.88 21.35 22.21 21.41 20.77 22.59 23.52 27.97 28.80 33.80
P = Preliminary, R = Revised
Source: Central Bureau of Statistics

12
Table 2.1: Public Income and Expenditure
(Rs in '000)

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*

Heading Actual Actual Actual Actual Actual Actual

Revenue and Grants 287796801 333172151 396315164 448331205 517716552 366687325

Renenue 244374099 296021153 356620779 405866514 481961652 353910752

Taxes 211722611 259214937 312441263 355955770 421096616 329759249

Non Tax Revenue 32651488 36806217 44179516 49910744 60865036 24151503

Difference 2612420 1921192 5734220 6090462 3277400 2478273

Grants 40810282 35229805 33960165 36374229 32477500 10298300

Grants 40810281 35229805 33960165 36374229 32477500 10298300

Expenditure 294850724 302053897 370226473 428251114 494548537 361244021

Recurrent 243460007 247455472 303531746 339407600 371297089 293418408

Compensation of employees 65965530 66046004 84356671 88543139 89268105 73082448

Use of goods and services 23751004 23285326 29950338 31823730 44585214 22666702

interest, Services an d Bank Corr 15160827 13736699 12037868 9263198 8673040 5760844

Subsidies 4640459 4227337 1145530 1018731 941842 712289

Grants 103679916 102489890 134941040 157690886 170847772 129093313

Social Security 30140281 37544252 40802391 50757816 56747111 62000073

Other Expenditure 121990 125963 297907 310100 234004 102740

Capital 51390717 54598425 66694727 88843514 123251448 67825613

Capital Expenditure 51390717 54598425 66694727 88843514 123251448 67825613

Budget Surplus (-)/Deficit (+) 7053923 -31118254 -26088691 -20080091 -23168015 -5443303

Financing -3371967 24816477 23140738 38425807 -38775065 12815114

Net Internal Loan 11876688 11796792 12927909 26257386 11095973 6883516

Internal Loan 12063693 12552099 13497720 28338968 24790000 6894644

Less Internal Loan Refund 187005 755307 569811 2081582 13694027 11128

Net Investment 12093805 8901813 9451003 10510427 12727771 4247126

Domestic Share Investments 12093805 5356545 9412265 8524012 12551904 4247126

Foreign Share Investments 0 3545268 38738 1986415 175867 0

External - Net Borrowing 2449355 2220635 -4407730 -3404413 -25159241 -16167809

External Amortizations 13532427 14190079 16724637 17027868 18614727 9802955

Less External Borrowing 11083072 11969444 21132367 20432281 43773968 25970764

Domestic Net Borrowing -29791815 1897237 5169556 5062407 -37439568 17852281.65

Domestic Amortization 6626836 20940092 25152451 47429985 50334947 17974748.55

Less Domestic Borrowing 36418651 19042855 19982895 42367578 87774515 122466.90

Under(+)/Over(-) 10425890 -55934731 -49229429 -58505898 15607049 -18258418

Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

13
Table 2.2: Tax Revenue
Rs. in Ten Million
Fiscal Year First Eight Months
Revenue Heading
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
11100 Taxes on income, profits and capital gains 5130.3 6418.67 7561.36 8616.56 11413.8 4922.93 7060.48
11110 Payable by individual and sole traders 1229.28 1554.15 1943.4 2255.78 2996.5 1474.91 2131.02
11120 Payable by entrerprizes and corporations 3049.44 3706.72 4542.3 5203.37 7096.9 2579.49 3803.99
11130 Taxes on investment and other income 851.58 1157.8 1075.66 1157.41 1320.4 868.53 1125.47
11200 Taxes on payroll and workforce 155.5 188.06 244.99 292.58 326.98 181.59 254.18
11210 Social Security Taxes on payroll 155.5 188.06 244.99 292.58 326.98 181.59 254.18
11300 Taxes on property 358.84 534.02 667.11 939.94 1314.9402 447.46 826.88
11310 Recurrent taxes on immovable property 2.94 0.37 2.85 2.19 0.5102 0.29 13.31
11340 Taxes on financial and capital transactions 355.9 533.64 664.26 937.75 1314.43 447.17 813.57
11400 Taxes on Goods and Services 11056.1 12927.05 15771.84 18002.52 20566.87 10674.01 17724.61
11410 VAT 7093.04 8341.84 10110.46 11252.18 12241.19 6403.56 10044.73
11420 Excise 3001.61 3623.47 4541.26 5353.82 6577.64 3403.38 5511.6
11440 Taxes on specific services 49.02 65.53 87.35 103.19 128.41 78.68 103.78
11450 Taxes on use of goods and on permission to use goods 912.43 896.21 1032.77 1293.33 1619.63 788.39 2064.5
11500 Taxes on international trade and transactions 4339.06 5693.18 6798.05 7484.13 8215.908 4153.67 6779.57
11510 Customs and other import duties 4090.59 5432.79 6412.54 7052.67 7782.218 3919.28 6473.21
11520 Taxes on exports 86.15 43.91 106.65 31.46 11.37 12.79 9.03
11560 Other taxes on international trade and transactions 162.32 216.48 278.86 400 422.32 221.6 297.33
11600 Other taxes 132.38 160.52 200.77 259.84 271.16 139.15 330.2
11610 Registration Fee 52.67 62.34 87.22 118.5 114.15 63.41 112.56
11620 Ownership Certificate Charge 79.71 98.18 113.55 141.34 157.01 75.74 217.64
Grand Total 21172.18 25921.49 31244.13 35595.57 42109.6582 20518.81 32975.92

Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ

14
Table 2.3: Non Tax Revenue
Rs. in ten Million
Fiscal Year First Eight Months
Revenue Heading
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
14100 Property Income 1765.24 1760.84 2067.52 2270.87 2615.89 848.11 827.91
14110 Interest 175.02 52.79 165.55 193.00 311.01 71.57 93.77
14120 Dividends 942.97 1084.37 1299.21 1373.17 1498.31 222.64 13.19
14150 Rent and Royalty 647.25 623.69 602.75 704.70 806.57 553.90 720.95
14200 Sale of Goods and Services 691.32 1124.70 1164.53 1223.06 1384.68 849.15 965.56
14210 Sale of Goods 460.44 537.41 629.79 729.52 838.68 517.94 556.45
14220 Administrative Fees 230.88 587.29 534.75 493.54 546.00 331.21 409.11
14300 Penalties, Fines and Forfeiture 31.56 33.82 45.28 125.43 78.89 38.99 42.60
14310 Penalties, Fines and Forfieture 31.56 33.82 45.28 125.43 78.89 38.99 42.60
14400 Voluntary Transfers other than Grants 0.08 0.51 0.24 0.50 0.30 0.22 0.06
14410 Voluntary Transfers other than Grants 0.08 0.51 0.24 0.50 0.30 0.22 0.06
14500 Miscellaneous Revenue 776.92 760.70 1140.39 1371.21 2006.74 852.36 579.02
14510 Administrative Fee - Immigration and Tourism548.19 676.42 1052.79 1243.48 1214.77 791.28 465.99
14520 Other Revenue 228.01 83.23 87.06 127.33 791.56 60.85 112.90
14530 Capital Revenue 0.72 1.09 0.54 0.40 0.41 0.23 0.13
Total 3265.12 3680.62 4417.95 4991.07 6086.50 2588.83 2415.15

Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

15
Table 2.4: Functional and Service Description (Current Expenditure)
Rs. in ten million
Fiscal Year First Eight Months
S.N. Particulars
2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
1 General Public Services 5455.04 6052.36 6268.55 9978.57 9416.16 4987.19 7569.08
Executive and legislative organs, financial,
1.1 fiscal affairs 2667.17 3745.88 3720.41 6118.28 5111.83 2655.80 3736.19
1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.12 0.06 0.13
1.3 General services 174.61 162.44 188.06 1219.58 1341.96 876.88 1058.09
1.4 R&D General public services 0.00 0.00 1.86 1.26 1.01 0.80 0.12
1.5 General public services n.e.c. 37.16 38.42 39.62 373.45 518.54 170.31 545.00
1.6 Public debt transaction 1233.00 1073.35 867.27 622.90 536.22 311.64 389.83
Transfers of a general character between levels
1.7 of government 1343.10 1032.27 1451.33 1643.10 1906.48 971.70 1839.72
2 Defence 2077.98 1847.69 2577.82 2807.32 2916.46 1896.22 2233.99
2.1 Military defence 2077.91 1846.72 2577.49 2806.89 2915.36 1895.94 2233.39
2.2 Civil defence 0.00 0.00 0.00 0.00 1.04 0.25 0.46
2.3 Defence n.e.c. 0.07 0.96 0.33 0.43 0.06 0.03 0.14
3 Public Order and Sefety 3483.20 3985.41 3004.21 3033.24 1907.63 2336.16
3.1 Police services 2167.43 1969.95 3173.17 2221.87 2317.61 1519.23 1838.85
3.2 Fire-protection services 0.41 0.44 0.53 1.15 0.66 0.44 0.52
3.3 Law courts 174.93 180.72 266.24 316.86 329.67 175.08 222.49
3.4 Prisons 64.27 69.70 82.79 104.26 100.29 64.03 70.12
3.5 Public order and sefety n.e.c. 1200.49 1262.39 462.69 360.07 285.01 148.85 204.18
4 Economic Affiars 3473.68 3596.49 5068.08 5260.59 6765.61 2656.58 5696.31
General economic, commercial and labour
4.1 affairs 670.52 721.17 815.76 771.36 614.13 300.48 2863.74
4.2 Agriculture, forestry, fishing and hunting 1604.51 1718.38 2549.91 2840.66 3013.89 1646.05 1950.52
4.3 Fuel and energy 171.75 175.12 335.27 411.64 418.50 174.61 214.13
4.4 Mining, manufacturing and construction 5.16 4.61 6.19 6.34 7.03 4.53 12.34
4.5 Transport 623.63 580.05 810.74 579.81 615.83 206.24 290.27
4.6 Communication 267.16 241.95 314.76 344.34 340.89 204.42 228.11
4.7 Other industries 91.40 121.56 181.74 164.69 175.88 97.40 110.34
4.8 R&D Economic affairs 37.63 32.08 50.57 137.19 1573.50 19.46 22.94
4.9 Economic affairs n.e.c. 1.93 1.57 3.13 4.56 5.96 3.39 3.92
5 Environmental Protection 46.51 29.16 152.14 281.48 250.48 120.90 150.75
5.1 Waste management 0.54 1.56 8.71 3.73 5.60 0.46 8.41
5.2 Waste water management 0.32 0.33 1.85 5.23 10.09 4.69 0.84
5.3 Protection of biodiversity and landscape 0.02 0.61 2.63 0.00 0.00 0.00 0.00
5.4 Research and Development Ecology Protection 0.00 0.00 0.00 0.00 1.94 1.13 0.96
5.5 Environmental protection n.e.c. 45.62 26.66 138.95 272.52 232.85 114.62 140.54
*First Eight Month 323.41 230.65 604.64 238.94 312.47 155.72 216.90
6 Housing and Community Ammnities 24.54 16.29 110.68 98.52 125.60 80.79 73.86
6.1 Housing development 6.21 9.60 0.00 25.22 67.95 10.31 62.93
6.2 Community development 261.84 174.52 465.94 107.11 111.30 60.02 75.00
6.3 Water supply 30.82 30.24 28.02 8.09 7.62 4.60 5.11
6.4 Housing and community amenities n.e.c. 1949.54 1891.83 2336.20 2618.83 3043.35 1420.29 1901.27
7 Health 49.92 59.16 47.80 15.79 13.07 4.51 10.23
7.1 Medical products, appliances and equipment 226.32 251.75 189.92 168.12 410.14 33.73 65.48
7.2 Out-patient services 636.88 624.35 859.47 1128.19 1160.61 684.64 817.40
7.3 Hospital services 875.22 778.21 1010.65 1077.31 1159.53 611.19 823.46
7.4 Public health services 161.21 178.35 228.36 229.42 300.00 86.22 149.96
7.5 Research Service 0.00 34.74
7.5 R&D Health 186.42 225.59 360.64 298.71 355.78 182.16 230.87
8 Recreation, Cultural and Religion 81.85 65.52 118.25 142.60 186.17 105.42 111.20
8.1 Recreational and sporting services 85.61 143.09 221.31 131.51 147.36 64.19 102.74
8.2 Cultural services 18.95 16.99 21.08 24.60 22.25 12.55 16.93
8.3 Broadcasting and publishing services 6191.42 6229.07 7769.93 7974.48 9045.62 5345.88 6462.32
9 Education 2085.57 2181.34 2540.06 2836.24 2845.62 1904.13 2992.34
9.1 Pre-primary and primary education 1034.69 1081.73 1296.79 1424.91 1437.51 964.23 781.87
9.2 Secondary education 1973.36 1697.99 2168.91 2037.00 2745.76 1386.42 1352.00
9.3 Educaiton not definable by level 1087.89 1239.56 1676.13 1546.95 1830.40 1011.68 1308.79
9.4 Subsidiary services to education 9.92 28.45 88.04 129.38 186.33 79.42 27.32
9.5 Educaiton n.e.c. 1034.47 1159.50 1229.77 1477.63 1990.54 1125.90 2544.13
10 Social Protection 72.44 14.72 33.81 73.24 173.53 41.83 88.50
10.1 Family and children 861.62 1046.81 1063.46 1253.59 1642.07 990.84 2349.34
10.2 Social exculsion n.e.c. 10.75 26.21 6.50 5.53 5.68 2.03 2.45
10.3 R&D Social protection 89.67 71.76 125.99 145.27 169.26 91.20 103.84
10.4 Social protection n.e.c. 24346.00 24745.54 30353.17 33940.76 37129.71 19798.47 29341.78
Total 24346.00 24745.54 30353.17 24498.56 25725.94 13705.20 21262.42

Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

16
Table 2.5: Functional and Service Description (Capital Expenditure)
Rs. in ten million
Fiscal Year First Eight Months Financing
S.N. Particulars 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 2015/16 2016/17*
1 General Public Services 125.44 209.63 4684.58 313.07 400.80 102.17 147.79 7431.17 2988.56
Executive and legislative organs, financial and
1.1 Economic affairs 84.40 169.32 2135.04 140.20 222.64 55.30 83.98 1922.78 1057.21
1.2 External Economic Cooperation 0.00 0.00 0.00 0.00 0.36 . 0.10 0.00 0.00
1.3 General services 18.91 9.53 11.53 85.97 79.36 23.32 37.36 0.00 0.00
1.4 R&D General public services 0.00 0.00 0.37 0.01 0.04 0.04 0.00 0.00 0.00
1.5 General public services n.e.c. 22.03 30.69 22.38 55.50 58.85 7.08 8.86 5.86 0.00
1.6 Public debt transaction 0.00 0.00 2515.25 0.00 0.00 0.00 0.00 5502.53 1931.35
Transfers of a general character between levels
1.7 of government 0.10 0.09 0.01 31.39 39.55 16.43 17.49 0.00 0.00
2 Defence 187.77 242.23 658.80 453.38 418.49 60.67 109.56 175.00 0.00
2.1 Military defence 174.42 230.40 520.58 451.94 408.91 60.22 107.75 0.00 0.00
2.2 Civil defence 0.00 0.00 132.43 0.00 7.91 0.34 0.08 175.00 0.00
2.3 Defence n.e.c. 13.35 11.84 5.79 1.44 1.67 0.11 1.73 0.00 0.00
3 Public Order and Sefety 293.09 511.42 392.69 446.24 110.05 162.30 0.00 0.00
3.1 Police services 139.15 119.60 226.08 143.85 137.64 37.18 58.38 0.00 0.00
3.2 Fire-protection services 0.02 0.00 0.03 0.02 0.02 0.01 0.02 0.00 0.00
3.3 Law courts 44.84 40.29 81.39 58.93 97.36 16.17 34.05 0.00 0.00
3.4 Prisons 12.12 8.91 11.86 13.44 11.50 4.68 11.53 0.00 0.00
3.5 Public order and sefety n.e.c. 122.90 124.29 192.05 176.45 199.72 52.01 58.32 0.00 0.00
4 Economic Affiars 3387.92 3629.10 5986.82 5877.42 8643.27 1940.89 5187.53 2121.37 870.39
General economic, commercial and labour
4.1 affairs 30.67 25.62 43.50 187.61 480.10 139.71 401.27 0.00 0.00
4.2 Agriculture, forestry, fishing and hunting 1056.22 1167.01 1496.37 1775.14 2531.25 637.47 1173.29 180.00 128.85
4.3 Fuel and energy 18.23 22.44 1486.19 81.55 58.43 17.15 554.71 1729.11 672.02
4.4 Mining, manufacturing and construction 0.83 148.02 136.58 180.48 231.84 47.16 115.22 0.00 0.00
4.5 Transport 2184.76 2179.49 2643.79 3524.85 4403.25 1050.82 2856.70 170.85 54.12
4.6 Communication 25.74 28.92 51.73 40.42 36.66 15.20 8.27 27.00 5.40
4.7 Other industries 70.41 53.67 99.50 78.31 135.28 31.03 72.76 0.00 0.00
4.8 R&D Economic affairs 0.03 3.64 11.80 8.51 765.78 2.14 4.65 0.00 0.00
4.9 Economic affairs n.e.c. 1.02 0.29 17.36 0.55 0.68 0.21 0.66 14.41 10.00
5 Environmental Protection 45.21 32.94 105.08 160.48 178.85 31.46 68.74 745.02 0.00
5.1 Waste management 5.54 3.43 53.94 7.42 12.37 1.73 6.27 545.02 0.00
5.2 Waste water management 6.93 5.00 4.78 99.13 84.89 8.67 17.75 0.00 0.00
5.3 Protection of biodiversity and landscape 0.00 0.14 0.18 0.00 0.00 0.00 0.00 0.00 0.00
5.4 R&D Environmental protection 0.00 0.00 12.00 0.00 0.66 0.44 0.32 200.00 0.00
5.5 Environmental protection n.e.c. 32.74 24.38 34.18 53.93 80.93 20.62 44.40 0.00 0.00
6 Housing and Community Ammnities 678.45 708.51 822.82 1292.49 1794.24 362.96 887.12 174.14 33.00
6.1Housing development 113.01 94.04 167.59 198.63 352.01 51.37 114.28 58.51 33.00
6.2Community development 0.66 0.00 0.00 4.84 52.13 5.65 35.16 0.00 0.00
6.3Water supply 290.10 362.46 587.99 1031.33 1295.71 275.09 680.49 115.63 0.00
6.4Housing and community amenities n.e.c. 274.69 252.00 67.23 57.69 94.39 30.85 57.19 0.00 0.00
7 Health 337.47 295.34 315.64 327.99 357.55 93.66 183.62 0.00 0.00
7.1 Medical products, appliances and equipment 4.12 29.72 30.40 58.85 16.71 7.10 3.54 0.00 0.00
7.2 Out-patient services 4.22 4.46 13.72 16.14 20.63 0.71 3.40 0.00 0.00
7.3 Hospital services 25.04 30.81 39.78 37.94 31.48 5.28 7.04 0.00 0.00
7.4 Public health services 294.09 224.83 204.51 203.67 273.34 79.47 166.86 0.00 0.00
7.5 R&D Health 10.01 5.51 27.24 11.39 15.39 1.10 2.78 0.00 0.00
8 Recreation, Cultural and Religion 20.19 15.60 30.59 36.37 41.10 13.48 12.83 0.00 0.00
8.1 Recreational and sporting services 4.99 0.08 0.25 1.18 1.04 0.05 2.11 0.00 0.00
8.2 Cultural services 12.24 10.55 17.86 25.64 34.49 7.99 7.10 0.00 0.00
8.3 Broadcasting and publishing services 2.96 4.97 12.48 9.55 5.57 5.44 3.62 0.00 0.00
9 Education 13.88 13.91 12.64 9.61 23.33 3.13 5.33 0.00 0.00
9.1 Pre-primary and primary education 0.09 0.22 0.15 0.16 0.12 0.00 0.06 0.00 0.00
9.2 Educaiton not definable by level 8.03 8.89 10.28 5.36 11.00 2.17 3.45 0.00 0.00
9.3 Subsidiary services to education 4.26 3.45 1.88 3.35 11.25 0.91 1.81 0.00 0.00
9.4 Educaiton n.e.c. 1.51 1.35 0.33 0.74 0.96 0.05 0.01 0.00 0.00
10 Social Protection 23.69 19.50 23.65 20.84 21.32 9.90 17.72 0.00 0.00
10.1 Family and children 0.00 0.00 2.56 1.81 0.23 0.00 0.09 0.00 0.00
10.2 Social exculsion n.e.c. 0.00 0.00 1.14 6.53 3.17 0.55 0.93 0.00 0.00
10.3 R&D Social protection 0.29 0.28 1.93 1.10 0.18 0.07 0.06 0.00 0.00
10.4 Social protection n.e.c. 23.40 19.22 18.02 11.40 17.74 9.28 16.64 0.00 0.00
Total 5139.07 5459.84 13152.05 8884.34 12325.19 2728.37 6782.54 10646.70 3891.95
* First Eight Month
Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

17
Table 2.6 : Principal Repayment, Loan and Share Investment in Public Enterprises
Rs. in ten million
Fiscal Year First Eight Months
Code No. Heading
2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17
31111 7 Internal Loan to Corporations 1206.37 813.00 1360.32 25905.09 2479.00 952.72 730.72 689.46
31211 7 Share Investments- Corporations 1209.38 880.18 934.55 1608.59 1272.80 239.06 188.59 424.71
2415.75 1693.18 2294.87 27513.68 3751.80 1191.78 919.31 1114.17
32111 10 External Amortization 1353.24 1419.01 1672.46 1704.18 1779.50 949.00 947.75 953.44
32211 10 Domestic Amortization 662.68 2094.01 2515.25 4742.99 5033.49 2627.81 2226.69 1797.47
Total 2015.92 3513.02 4187.71 6447.17 6812.99 3576.81 3174.44 2750.91
Source: Financial Comptroller General Office

18
Table 2.7 : Foreign Aid Commitment by Sources
Rs. In Ten Million
Fiscal Year First Eight Month
Source
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17
1. Bilateral 1770.61 1310.64 2719.65 3690.00 3182.00 5291.30 3851.99 5527.20 17836.90 9106.90 15654.24 7260.29 10935.45
Grant 1770.61 562.09 2365.50 3690.00 2482.00 3146.00 2330.99 4868.50 8034.00 4631.20 5851.34 4990.59 1444.95
Loan 0.00 748.55 354.15 0.00 700.00 2145.30 1521.00 658.70 9802.90 4475.70 9802.90 2269.70 9490.50
2. Multilateral 1931.68 3607.98 2077.88 5970.90 7427.67 4526.57 7663.69 7817.20 4745.03 10452.97 3830.24 8358.97 10268.94
Grant 1315.41 3544.33 1944.08 3335.78 3991.38 2687.68 3059.11 2423.30 1126.31 3289.17 1019.82 1195.17 3116.30
Loan 616.27 63.65 133.80 2635.12 3436.29 1838.89 4604.58 5393.90 3618.72 7163.80 2810.42 7163.80 7152.64
3. Total 3702.29 4918.62 4797.52 9660.90 10609.67 9817.87 11515.68 13344.50 22581.93 19559.87 19484.48 15619.26 21204.39
Grant 3086.02 4106.42 4309.57 7025.78 6473.38 5833.68 5390.10 7291.80 9160.31 7920.37 6871.16 6185.76 4561.25
Loan 616.27 812.20 487.95 2635.12 4136.29 3984.19 6125.58 7950.50 13421.62 11639.50 12613.32 9433.50 16643.14

Source Ministry of Finance

Table 2.8 : Foreign Aid Disbursement by Sources


Rs. In Ten Million
Fiscal Year
Headings
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
1. Bilateral 1,020.77 933.31 2,290.15 2,585.04 3,208.77 2600.97 2940.72 2195.31 2742.27
Grant 957.56 872.02 1,835.09 2,173.80 2,883.33 2343.52 2616.67 1852.55 2422.12
Loan 63.21 61.29 455.06 411.24 325.44 257.45 324.05 342.76 320.15
2. Multilateral 1,909.29 2,701.86 2,686.79 3,214.73 1,980.57 2118.96 3079.74 4195.39 4534.96
Grant 1,074.51 1,766.26 2,019.51 2,418.41 1,197.70 1179.46 1603.91 1976.59 1532.28
Loan 834.78 935.60 667.28 796.32 782.87 939.49 1475.83 2218.80 3002.68
3. Total 2,930.06 3,635.17 4,976.94 5,799.78 5,189.34 4719.92 6020.46 6390.70 7277.23
Grant 2,032.07 2,638.28 3,854.60 4,592.22 4,081.03 3522.98 4220.58 3829.14 3954.40
Loan 897.99 996.89 1,122.34 1,207.56 1,108.31 1196.94 1799.88 2561.56 3322.83
Source: Financial Comptroller General Office
Note: The grant of Rs. 6517.9 million of donor agency code 230000 (Others) has been included in bilateral grant according to economic code & classification in FY 2015/16.

19
Table 2.9: Functional and Service Description of Foreign Grants Received
Rs. in ten million
Fiscal Year First Eight Months
S.N. Particulars
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17
1 General Public Services 723.76 589.45 300.94 360.37 397.67 318.20 347.46 135.55 153.25
Executive and legislative organs, financial,
1.1 fiscal affairs 375.38 380.28 279.12 304.07 235.19 257.10 273.25 114.58 126.69
1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.3 General services 1.00 14.17 21.75 18.67 51.37 60.63 28.89 19.17 26.56
1.4 Basic research 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.5 R&D General public services
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.6 General public services n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.7 Public debt transaction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Transfers of a general character between
1.8 levels of government 347.38 195.00 0.07 37.63 111.12 0.46 45.32 1.80 0.00
2 Defence 0.00 0.00 0.00 19.22 17.46 0.00 0.00 0.00 0.00
2.1 Military defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.2 Civil defence 0.00 0.00 0.00 19.22 17.46 0.00 0.00 0.00 0.00
2.3 Foreign military aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.4 R&D Defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Defence n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Public Order and Sefety 96.30 261.00 230.25 209.82 130.29 28.90 0.00 0.78 7.63
3.1 Police services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.2 Fire-protection services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Law courts 4.47 3.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Prisons 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 R&D Public order and safety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Public order and sefety n.e.c. 91.83 257.95 230.25 209.82 130.29 28.90 0.00 0.78 7.63
4 Economic Affiars 1843.27 1140.11 1073.16 1542.04 1670.78 1522.74 456.94 380.47 1174.68
General economic, commercial and labour
4.1 affairs 517.21 270.11 254.46 183.12 377.06 344.53 164.17 158.47 802.73
4.2 Agriculture, forestry, fishing and hunting 221.90 248.29 270.56 481.81 447.78 528.39 146.96 157.50 198.89
4.3 Fuel and energy 219.84 180.20 215.79 312.49 294.49 168.80 90.40 3.58 14.92
4.4 Mining, manufacturing and construction 0.00 0.00 0.00 0.00 0.00 0.00 0.74 0.00 0.00
4.5 Transport 884.32 441.51 329.19 553.03 519.22 447.43 43.38 59.33 152.77
4.6 Communication 0.00 0.00 0.00 0.79 9.34 2.07 8.63 1.10 0.58
4.7 Other industries 0.00 0.00 0.00 0.00 14.46 0.00 0.00 0.00 0.00
4.8 R&D Economic affairs 0.00 0.00 3.17 10.81 8.42 31.52 2.67 0.50 4.80
4.9 Economic affairs n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 Environmental Protection 29.82 4.05 1.83 46.62 94.74 379.51 42.88 50.08 42.99
5.1 Waste management 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.31
5.2 Waste water management 0.00 0.00 0.00 0.98 4.25 38.57 4.25 4.03 0.00
5.3 Pollution abatement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.4 Protection of biodiversity and landscape 0.00 0.02 0.75 2.81 0.00 0.00 0.00 0.00 0.00
5.5 R&D Environmental protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.6 Environmental protection n.e.c. 29.82 4.03 1.09 42.83 90.49 140.94 38.63 46.04 37.67
6 Housing and Community Ammnities 278.64 291.28 205.11 218.01 152.34 157.25 43.87 17.62 62.16
6.1 Housing development 0.00 10.48 8.89 16.16 17.69 10.87 18.67 8.15 6.78
6.2 Community development 0.00 0.00 0.00 0.00 19.70 54.92 0.00 0.18 34.38
6.3 Water supply 128.78 102.40 61.99 138.48 110.00 86.89 25.20 9.29 21.00
6.4 Street lighting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6.5 R&D Housing and community amenities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6.6 Housing and community amenities n.e.c. 149.86 178.40 134.23 63.37 4.95 4.56 0.00 0.00 0.00
7 Health 559.50 570.02 568.28 503.72 403.74 494.79 152.73 17.16 151.62
7.1 Medical products, appliances and equipment 35.35 45.12 25.90 56.09 32.58 2.80 3.86 0.00 2.79
7.2 Out-patient services 190.69 155.48 148.01 108.15 92.20 320.73 16.00 1.95 9.20
7.3 Hospital services 22.18 36.14 52.05 25.27 22.54 17.93 14.03 0.61 2.74
7.4 Public health services 273.83 301.60 325.02 290.14 229.59 146.46 112.22 13.22 134.13
7.5 R&D Health 37.45 31.68 17.29 24.07 26.83 6.86 6.62 1.38 2.76
7.6 Health n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Recreation, Cultural and Religion 1.81 1.24 4.45 12.37 11.48 5.32 4.68 4.69 2.29
8.1 Recreational and sporting services 0.48 0.25 0.02 0.46 0.53 0.36 0.21 0.00 0.29
8.2 Cultural services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.3 Broadcasting and publishing services 1.33 0.99 4.43 11.91 10.95 4.96 4.47 4.69 2.00
8.4 Religious and other community services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.5 R&D Recreation, culture and religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.6 Recreation, culture and religion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9 Education 1032.60 1223.60 1137.28 1285.43 890.26 1149.79 353.24 525.92 127.61
9.1 Pre-primary and primary education 32.31 4.65 33.56 18.41 26.46 27.74 2.73 2.60 2.41
9.2 Secondary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.4 Tertiary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Educaiton not definable by level
9.5 965.49 1119.45 947.83 973.53 835.39 1088.40 337.68 518.40 124.24
Subsidiary services to education
9.6 34.80 88.28 126.23 210.91 12.41 25.17 6.10 4.39 0.00
9.7 R&D education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.8 Educaiton n.e.c. 0.00 11.22 29.65 82.58 16.00 8.47 6.72 0.53 0.96
10 Social Protection 26.40 0.28 1.69 22.98 60.40 97.91 28.47 25.12 54.26
10.1 Sickness and disability 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.2 Old age 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.3 Survivors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.4 Family and children 20.95 0.00 0.05 15.55 45.59 71.45 27.34 14.37 35.05
10.5 Umemployment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.6 Housing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.7 Social exculsion n.e.c. 0.00 0.00 0.43 1.35 2.32 0.00 0.00 0.00 0.00
10.8 R&D Social protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.9 Social protection n.e.c. 5.45 0.28 1.20 6.08 12.49 26.47 1.13 10.75 19.21
Total 4592.10 4081.03 3522.98 4220.58 3829.16 3954.40 1430.28 1157.38 1776.49

Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

20
Table 2.10: Functional and Service Description of Foreign Loan Received
Rs. in ten million

S.N. Particulars Fiscal Year First Eight Months


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17
1 General Public Services 100.82 93.42 3.62 5.69 23.42 126.69 5.01 41.47 2.63
Executive and legislative organs,
100.82 89.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.1 financial, fiscal affairs
1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.00 0.00 0.22 0.00 0.00
1.3 General services 0.00 3.50 2.42 5.69 5.58 21.48 4.79 8.79 2.63
1.4 Basic research 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.5 R&D General public services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.6 General public services n.e.c. 0.00 0.00 1.19 0.00 17.84 5.86 0.00 5.86 0.00
1.7 Public debt transaction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Transfers of a general character between
0.00 0.00 0.00 0.00 0.00 99.35 0.00 26.82 0.00
1.8 levels of government
2 Defence 0.00 0.00 0.00 113.21 37.41 0.00 0.00 0.00 0.00
2.1 Military defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.2 Civil defence 0.00 0.00 0.00 113.21 37.41 0.00 0.00 0.00 0.00
2.3 Foreign military aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.4 R&D Defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Defence n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Public Order and Sefety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.1 Police services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.2 Fire-protection services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Law courts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Prisons 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 R&D Public order and safety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Public order and sefety n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 Economic Affiars 843.14 766.46 893.10 1266.08 1505.29 1761.04 375.56 365.37 1786.67
General economic, commercial and
207.37 50.58 145.84 211.12 122.86 136.84 66.97 71.06 1002.04
4.1 labour affairs
4.2 Agriculture, forestry, fishing and hunting 72.25 106.25 76.64 175.32 199.63 288.77 74.04 90.31 188.66
4.3 Fuel and energy 505.02 501.03 423.19 376.90 792.98 479.86 100.00 23.03 30.57
4.4 Mining, manufacturing and construction 0.00 0.00 53.31 40.34 67.65 73.56 17.18 16.71 40.92
4.5 Transport 58.50 108.60 185.62 446.31 233.51 587.06 100.89 148.82 514.38
4.6 Communication 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.7 Other industries 0.00 0.00 0.00 0.00 55.66 0.00 0.00 0.00 0.00
4.8 R&D Economic affairs 0.00 0.00 0.00 0.00 0.00 180.55 0.00 1.03 0.11
4.9 Economic affairs n.e.c. 0.00 0.00 8.50 16.08 33.00 14.41 16.50 14.41 10.00
5 Environmental Protection 27.51 26.94 88.07 72.57 405.14 735.60 183.14 364.76 87.79
5.1 Waste management 0.00 12.00 79.47 0.00 155.42 475.12 0.00 222.46 0.00
5.2 Waste water management 0.00 0.00 0.00 0.00 45.52 0.00 87.22 0.00 0.00
5.3 Pollution abatement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 91.80 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


5.4 Protection of biodiversity and landscape
5.5 R&D Environmental protection 0.00 0.00 0.00 10.00 59.85 175.00 0.00 0.00 0.00
5.6 Environmental protection n.e.c. 27.51 14.94 8.60 62.57 144.35 85.48 95.92 50.51 87.79
6 Housing and Community Ammnities 111.67 80.60 108.19 238.48 302.11 445.85 35.47 81.66 279.27
6.1 Housing development 0.00 0.00 0.00 0.33 46.65 90.97 0.00 57.62 50.33
6.2 Community development 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6.3 Water supply 90.19 45.40 90.00 238.15 255.46 354.88 35.47 24.04 228.94
6.4 Street lighting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R&D Housing and community amenities
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6.5

21.48 35.20 18.19 0.00 0.00 0.00 0.00 0.00 0.00


6.6 Housing and community amenities n.e.c.
7 Health 67.64 72.39 98.14 71.36 170.29 0.00 80.67 0.00 0.00
Medical products, appliances and
15.31 3.70 42.56 12.39 29.73 0.00 22.00 0.00 0.00
7.1 equipment
7.2 Out-patient services 2.78 41.16 42.29 0.00 0.00 0.00 0.00 0.00 0.00
7.3 Hospital services 15.91 14.68 0.02 9.17 0.00 0.00 0.00 0.00 0.00
7.4 Public health services 33.64 12.85 13.28 49.80 140.56 0.00 58.67 0.00 0.00
7.5 R&D Health 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.6 Health n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Recreation, Cultural and Religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.1 Recreational and sporting services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.2 Cultural services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.3 Broadcasting and publishing services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.4 Religious and other community services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.5 R&D Recreation, culture and religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8.6 Recreation, culture and religion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9 Education 43.22 56.18 0.00 29.74 113.58 178.27 51.45 49.39 144.65
9.1 Pre-primary and primary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.2 Secondary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.4 Tertiary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.5 Educaiton not definable by level 43.22 56.18 0.00 24.29 0.00 0.00 0.00 0.00 118.69
9.6 Subsidiary services to education 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00
9.7 R&D education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9.8 Educaiton n.e.c. 0.00 0.00 0.00 5.43 113.58 178.27 51.45 49.39 25.95
10 Social Protection 13.42 12.22 5.82 2.76 4.33 75.38 4.71 10.68 33.16
10.1 Sickness and disability 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.2 Old age 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.3 Survivors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.4 Family and children 0.00 0.00 0.01 2.76 4.33 75.38 4.71 10.68 33.16
10.5 Umemployment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.6 Housing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.7 Social exculsion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.8 R&D Social protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.9 Social protection n.e.c. 13.42 12.22 5.81 0.00 0.00 0.00 0.00 0.00 0.00
Total 1207.42 1108.21 1196.94 1799.88 2561.58 3322.83 736.02 913.33 2334.17
Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic
(GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ
Source: Financial Comptroller General Office

21
Table 2.11 : Net Outstanding Foreign Debt
Rs. In Ten Milllion
Fiscal Year First Eight Month
S. No. Heading
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
Direct
1 Outstanding Upto Last Year 23396.86 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34326.18 34326.18 38876.03
Increase/Decrease due to
2 Exchange Rate Fluctution 0.00 3263.20 2943.11 1730.81 67.74 4756.69 2176.50 896.98 -1577.97 1952.21 2104.23 1391.01
3 Borrowing 1185.68 857.39 776.42 725.40 1384.92 1570.08 1657.95 2113.24 2926.42 4377.40 2448.45 2597.07
4 Repayments 753.88 786.94 1012.03 1074.30 1221.81 1353.24 1419.01 1672.46 1704.18 1779.51 947.75 954.32
5 Interest Payments 205.57 214.53 237.37 245.81 232.19 283.08 300.32 336.52 303.61 331.09 171.94 190.56
6 Net Outstanding 21662.89 24996.54 27704.04 25624.23 25955.18 30928.71 33344.15 34681.91 34326.18 38876.03 37931.11 39128.03
Indirect
1 Outstanding Upto Last Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2 Borrowing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Repayments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 Interest Payments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 Net Outstanding 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Foreign Loan
1 Outstanding Upto Last Year 21231.09 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34326.18 34326.18 38876.03
Increase/Decrease due to
2 Exchange Rate Fluctution 3263.20 2943.11 -1730.81 67.74 4756.69 2176.50 896.98 -1577.97 1952.21 2104.23 1391.01
3 Borrowing 1185.68 857.39 776.42 725.40 1384.92 1570.08 1657.95 2113.24 2926.42 4377.40 2448.45 2597.07
4 Repayments 753.88 786.94 1012.03 1074.30 1121.81 1353.24 1419.01 1672.46 1704.18 1861.47 947.75 954.32
5 Interest Payments 205.57 214.53 237.37 245.81 232.19 283.08 300.32 336.52 303.61 331.09 171.94 190.56
6 Net Outstanding 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34326.18 38876.03 37931.11 39128.03
Note : Outstanding may differ due to exchange rate fluctuation.
Source: Financial Comptroller General Office.

22
Table 2.12 : Ownership Pattern of Government Bonds and Treasury Bills
Rs. In Ten Million
S. First Eight Month
Description
No. 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17
1 Treasury Bills
a Nepal Rastra Bank 1376.88 1757.90 2254.86 3047.74 2817.89 2507.29 1296.89 2204.89 1796.89 1609.99 1601.99 2887.24
b Commercial Banks 5861.15 6496.63 6105.48 6810.95 8646.11 10204.92 12149.14 11336.03 10072.92 9789.95 8945.80 7350.30
c Others 206.50 248.77 291.17 345.68 570.07 450.20 200.78 105.89 116.00 205.97 958.12 63.39
Sub-Total 7444.53 8503.30 8651.51 10204.37 12034.07 13162.41 13646.81 13646.81 11985.81 11605.91 11505.91 10300.93
2 Development Bonds
a Nepal Rastra Bank 151.86 29.65 30.23 30.91 34.82 38.20 31.92 0.00 0.00 0.00 0.00 894.20
b Commercial Banks 628.03 701.67 1073.67 1472.87 1932.22 2678.06 2573.87 2300.68 3563.39 7906.35 3335.39 7702.00
c Financial Institutions 463.65 660.81 784.24 898.29 1227.97 1602.15 1336.26 677.29 710.67 1460.85 952.35 1469.50
d Provident Fund 405.64 496.54 636.52 653.91 653.91 781.98 666.98 719.09 836.86 1390.00 836.86 1390.00
e Govt. Business Enterprise 1.25 9.10 0.00 188.33 188.33 240.38 239.13 761.28 534.17 0.00 50.71 0.00
f Private Business Enterprise 34.25 218.98 0.00 52.68 262.16 262.16 185.75 157.91 50.71 99.72 148.37 99.72
g Individuals 59.45 10.75 56.86 0.00 9.66 9.66 1.47 0.31 0.31 0.30 0.31 0.30
h Non-profit Organizations 173.59 46.05 366.33 254.96 42.88 139.36 125.72 94.53 10.89 32.78 8.02 34.28
Sub-Total 1917.71 2173.54 2947.85 3551.94 4351.94 5751.95 5161.09 4711.09 5707.00 10890.00 5332.00 11590.00
3 National Savings Certificate
a Nepal Rastra Bank 27.95 44.72 7.69 0.00 0.76 1.50 1.74 1.87 2.14 0.13 0.87 9.02
b Commercial Banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
c Financial Institutions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
d National Insurance Company 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
e Provident Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
f Govt. Business Enterprise 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
g Private Business Enterprise 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
h Individuals 0.00 0.00 0.00 0.00 1002.06 1471.63 1471.63 1491.63 1491.63 20.00 1110.72 0.15
i Non-profit Organizations 123.74 66.98 14.00 0.00 65.18 94.88 94.64 165.16 164.89 70.52 147.06 81.48
Sub-Total 151.69 111.69 21.69 0.00 1068.00 1568.01 1568.00 1658.65 1658.65 90.65 1258.65 90.50
4 Public Saving Card
6.27 56.27 115.51 263.50 313.55 275.33 241.12 126.54 50.76 30.76 30.60 117.63
a Nepal Rastra Bank (Secondary Market)
b Private Sector (Individual) 132.83 245.16 327.85 248.79 149.36 136.97 77.26 25.14 254.86 749.86 250.01 683.43
c Forign Employment Bond 0.00 0.00 0.00 0.40 0.74 1.60 5.89 13.53 21.50 48.62 21.50 52.85
Sub-Total 139.10 301.44 443.36 512.69 463.65 413.90 324.27 165.20 327.12 829.23 302.12 853.91
5 Special Bonds.
a. Five years special bonds (N.R.BK) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
b IMF Promisory Note (N.R.BK) 447.22 480.04 480.04 520.00 487.11 487.11 1334.55 487.11 487.11 487.11 487.11 487.11
CB PASS 20 years Special Bond and
277.35 33.94 22.96 16.97 15.80 15.76 0.00 0.00 0.00 0.00 0.00 0.00
c. others
1 Nepal Rastra Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2 Commercial Banks. 94.46 15.76 15.76 15.76 15.76 15.76 0.00 0.00 0.00 0.00 0.00 0.00
3 Employee's Provident Fund 147.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 Individuals 35.54 18.18 7.20 1.21 0.04 0.00 0.00 0.00 0.00 0.00 0.00
Sub-Total 724.57 513.98 503.00 536.97 502.91 502.87 1334.55 487.11 487.11 487.11 487.11 487.11
6 Total
a Nepal Rastra Bank 2010.19 2368.58 2888.33 3862.15 3654.13 3309.43 2906.22 2820.40 2336.90 2127.99 2120.57 4395.20
b Commercial Banks 6583.64 7214.06 7194.91 8299.58 10594.09 12898.74 14723.02 13636.70 13636.31 17696.30 12281.19 15052.30
c. Others 1783.78 2021.31 2484.17 2644.25 4172.36 5190.96 4405.48 4211.75 4192.48 4078.61 4484.03 3875.10
Grand Total 10377.60 11603.95 12567.41 14805.97 18420.57 21399.13 22034.72 20668.86 20165.68 23902.90 18885.78 23322.60
Note : Including CB pass 20 years special bonds and forest compensation special Bonds.
Source: Nepal Rastra Bank

23
Table 3.1 : Overall Urban Consumers' Price Index (Nepal)
(Base Year 2014/15 = 100)

Fiscal Year

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*

Mid August 59.2 65.2 71.4 76.8 85.9 92.7 99.6 106.5 115.7

Mid September 60.1 65.6 71.3 77.3 86.0 92.8 99.9 107.1 115.5

Mid October 60.4 65.7 71.4 77.8 85.9 93.2 100.2 108.4 115.7

Mid November 60.1 65.6 71.1 77.1 85.2 93.7 100.4 110.9 116.1

Mid December 58.7 64.8 70.9 76.3 84.2 92.8 99.4 110.9 115.1

Mid January 58.2 64.4 71.7 76.5 84.1 92.2 98.6 110.5 113.9

Mid February 58.9 65.3 71.9 77.0 84.8 92.2 98.7 109.8 113.4

Mid March 59.3 65.2 72.1 77.1 85.0 92.6 99.0 109.2 112.4

Mid April 59.7 65.5 72.4 77.9 85.2 93.3 99.7 109.4 -

Mid May 61.2 66.7 72.9 79.3 86.2 94.6 101.3 111.5 -

Mid June 61.5 66.6 72.3 79.5 86.1 94.2 101.2 112.4 -

Mid July 61.3 66.8 73.2 81.6 87.9 95.0 102.2 112.9 -
Annual 59.9 65.6 71.9 77.8 85.5 93.3 100.0 109.1 114.7
Annual Growth
12.6 9.6 9.6 8.3 9.9 9.1 7.2 9.9 5.1
(Percentage)
* Provisional
Source : Nepal Rastra Bank.

24
Table 3.2 (a): National Urban Consumers' Price Index by Commodities Group (Average)
(Base Year 2014/15 = 100)
First Eight Month Average
Commodities and Groups Weights (%) 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
2015/16 2016/17* % change
Overall Index 100 59.9 65.6 71.9 77.8 85.5 93.3 100.0 109.9 109.2 112.4 2.9
Food and Beverage 43.91 52.4 60.4 69.3 74.6 81.7 91.2 100.0 110.9 108.5 108.2 -0.4
Cereals Grains & their products 11.33 59.3 65.3 74.4 74.6 81.4 90.4 100.0 109.2 110.2 110.1 -0.1
Legume Varieties 1.84 61.9 78.0 72.1 72.1 81.1 85.0 100.0 132.7 132.5 117.6 -11.2
Vegetables 5.52 36.6 44.1 59.6 74.0 78.3 94.3 100.0 110.3 89.7 82.2 -8.3
Meat & Fish 6.75 49.1 59.4 64.6 69.4 79.4 93.9 100.0 109.8 112.2 112.2 0.0
Milk Products and Egg 5.24 52.3 58.5 67.0 76.2 82.7 88.6 100.0 110.0 109.8 114.1 3.9
Ghee and Oil 2.95 77.6 74.0 75.9 86.9 98.8 99.7 100.0 119.5 118.4 111.5 -5.8
Fruits 2.08 43.3 52.1 62.3 72.8 77.4 87.9 100.0 106.5 101.9 102.8 0.9
Sugar & Sweets 1.74 48.2 70.0 83.7 91.4 103.9 100.0 100.0 107.3 107.4 123.7 15.2
Spices 1.21 55.4 70.6 86.9 79.0 83.0 90.9 100.0 113.5 115.2 117.9 2.4
Soft Drinks 1.24 61.9 73.5 81.1 84.7 94.1 96.4 100.0 104.7 105.0 108.2 3.1
Hard Drinks 0.68 52.9 59.3 63.1 66.0 71.3 83.3 100.0 112.9 114.6 126.9 10.7
Tobacco Products 0.41 41.6 46.8 53.1 58.9 67.0 79.6 100.0 107.6 108.0 112.9 4.6
Restaurant & Hotel 2.92 46.9 56.4 65.2 72.9 81.6 90.2 100.0 109.3 110.8 116.5 5.1
Non-Food and Services 56.09 67.2 70.4 74.3 80.9 89.1 95.1 100.0 109.2 109.7 115.8 5.6
Clothing & Footwear 7.19 52.2 56.1 63.6 73.0 81.9 91.0 100.0 114.2 115.9 124.4 7.4
Housing & Utilities 20.3 72.0 74.3 79.8 84.7 93.7 98.5 100.0 112.7 113.1 121.8 7.7
Furnishing & Household Equipment 4.3 58.7 62.4 65.9 74.7 84.7 92.4 100.0 106.3 107.5 112.5 4.7
Health 3.47 73.5 76.0 79.1 82.7 88.3 94.8 100.0 102.6 102.5 104.8 2.2
Transport 5.34 69.7 66.4 73.1 84.5 93.7 98.7 100.0 102.0 102.3 101.0 -1.3
Communication 2.82 123.6 123.6 110.5 101.5 99.4 99.9 100.0 105.1 105.6 105.7 0.0
Recreation and Culture 2.46 72.2 77.5 75.7 81.5 88.3 94.1 100.0 104.3 104.8 106.6 1.7
Education 7.41 60.9 67.8 71.5 78.5 88.0 94.7 100.0 110.1 109.2 118.9 8.9
Miscellaneous Goods & Services 2.81 62.7 67.4 71.4 78.4 86.3 92.6 100.0 104.5 107.4 113.4 5.7
* Provisional
Source : Nepal Rastra Bank. 25
Table 3.2 (b): National Urban Consumers' Price Index by Commodities Group (First Eight Months)
(Base Year 2014/15 = 100)
Weights 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 2015/16 2016/17* Percent Change**
Commodities and Groups
(%) Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March 2015/16 2016/17*
Overall Index 100.00 66.8 72.1 73.2 77.1 81.6 85.0 87.9 92.6 95.0 99.0 102.2 109.2 112.9 112.4 10.2 2.9
Food and Beverage 43.91 62.7 69.9 70.3 72.9 78.7 81.1 85.3 89.9 94.7 98.4 103.5 108.5 114.0 108.2 10.3 -0.4
Cereals Grains & their products 11.33 68.9 76.1 73.0 74.3 76.1 83.8 85.0 93.6 91.1 100.9 102.7 110.2 111.3 110.1 9.2 -0.1
Legume Varieties 1.84 71.6 72.9 65.7 71.7 72.3 80.7 78.0 86.2 82.6 100.6 112.4 132.5 137.7 117.6 31.6 -11.2
Vegetables 5.52 47.5 61.2 69.0 64.3 94.9 70.4 91.7 80.1 111.1 84.0 101.7 89.7 117.9 82.2 6.8 -8.3
Meat & Fish 6.75 62.8 68.2 66.1 72.2 73.9 84.5 85.4 95.9 99.0 105.4 105.2 112.2 112.4 112.2 6.5 0.0
Milk Products and Egg 5.24 64.1 62.5 72.9 73.5 80.5 78.8 85.0 84.1 94.3 98.2 105.7 109.8 112.2 114.1 11.9 3.9
Ghee and Oil 2.95 72.1 77.4 78.4 87.6 93.7 99.8 96.9 100.1 97.2 99.7 101.0 118.4 113.1 111.5 18.8 -5.8
Fruits 2.08 51.2 64.2 64.8 70.5 74.3 74.1 80.3 84.6 100.8 93.3 108.7 101.9 112.5 102.8 9.1 0.9
Sugar & Sweets 1.74 66.8 88.0 83.1 93.2 94.6 104.4 99.6 100.8 98.7 100.7 98.9 107.4 115.8 123.7 6.7 15.2
Spices 1.21 80.3 86.1 79.9 75.7 74.9 79.8 84.2 88.2 88.5 98.8 102.4 115.2 118.5 117.9 16.6 2.4
Soft Drinks 1.24 72.0 79.2 77.5 84.0 83.2 94.0 89.3 96.2 92.4 100.3 100.5 105.0 106.5 108.2 4.7 3.1
Hard Drinks 0.68 55.8 59.2 58.2 64.6 65.3 67.5 71.6 82.7 85.5 100.1 100.2 114.6 116.0 126.9 14.5 10.7
Tobacco Products 0.41 41.8 52.0 48.8 56.6 57.5 63.1 63.2 79.0 78.0 100.1 100.3 108.0 108.5 112.9 7.9 4.6
Restaurant & Hotel 2.92 57.4 66.2 65.7 73.7 74.1 82.8 82.4 90.6 89.1 100.9 101.6 110.8 113.5 116.5 9.9 5.1
Non-Food and Services 56.09 70.6 74.1 76.0 81.1 84.5 88.6 90.6 94.9 95.4 99.6 101.2 109.7 112.0 115.8 10.2 5.6
Clothing & Footwear 7.19 55.1 63.3 64.7 73.0 74.4 81.4 81.8 91.4 88.8 100.5 100.9 115.9 118.0 124.4 15.3 7.4
Housing & Utilities 20.30 77.5 80.9 80.6 85.9 89.8 94.3 95.5 99.1 99.0 99.9 100.4 113.1 116.8 121.8 13.1 7.7
Furnishing & Household Equipment 4.3 61.9 66.0 67.8 74.9 76.7 84.5 85.6 92.4 90.6 100.6 100.8 107.5 109.0 112.5 6.8 4.7
Health 3.47 74.7 77.7 77.9 82.7 84.2 88.0 89.6 96.0 94.5 100.1 100.3 102.5 105.1 104.8 2.4 2.2
Transport 5.34 66.2 74.0 78.3 86.6 89.8 93.9 95.3 98.4 99.3 98.9 97.3 102.3 100.2 101.0 3.4 -1.3
Communication 2.82 123.0 110.6 103.0 101.6 99.0 99.5 99.8 99.6 99.6 99.9 100.4 105.6 105.6 105.7 5.7 0.0
Recreation and Culture 2.46 75.2 75.8 74.7 82.5 81.1 87.6 87.1 94.2 92.0 100.1 100.2 104.8 106.0 106.6 4.8 1.7
Education 7.41 70.0 69.7 79.8 75.9 89.9 85.4 96.9 92.1 102.2 97.1 109.1 109.2 112.7 118.9 12.4 8.9
Miscellaneous Goods & Services 2.81 65.7 70.7 71.5 77.7 77.5 86.1 84.0 91.7 89.1 99.3 99.5 107.4 110.4 113.4 8.1 5.7
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank.

26
Table 3.2 (c): Urban Consumers' Price Index by Commodities Group, Kathmandu (First Eight Months)
(Base Year 2014/15 = 100)
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Percent Change**
Commodities and Groups
Mid March Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2015/16 2016/17
Overall Index 63.8 72.6 76.7 85.0 92.4 98.9 111.5 113.5 12.7 1.8
Food and Beverage 56.4 68.3 70.6 79.3 88.9 98.0 112.1 111.0 14.4 -1.0
Cereals Grains & their products 63.5 72.3 72.0 81.6 92.1 100.9 111.2 111.3 10.2 0.0
Legume Varieties 86.0 72.5 73.1 81.2 87.6 100.7 137.4 118.5 36.4 -13.8
Vegetables 28.7 58.5 58.2 65.2 76.2 84.7 99.8 89.8 17.9 -10.1
Meat & Fish 64.7 69.0 72.3 83.9 97.4 104.5 115.0 114.2 10.0 -0.7
Milk Products and Egg 58.7 63.2 74.7 79.6 83.8 97.9 109.2 114.7 11.5 5.0
Ghee and Oil 74.7 80.0 89.4 101.0 99.6 99.1 130.0 111.8 31.2 -14.0
Fruits 44.4 56.4 60.8 64.3 80.9 90.3 118.2 117.2 30.9 -0.9
Sugar & Sweets 52.7 86.3 89.6 100.0 98.6 100.9 110.1 125.0 9.1 13.5
Spices 64.6 85.7 71.6 80.4 87.3 97.7 114.8 125.3 17.5 9.1
Soft Drinks 83.9 78.4 82.6 95.2 96.8 100.4 104.3 105.6 3.9 1.2
Hard Drinks 68.9 62.3 68.5 74.7 82.1 100.1 111.5 119.7 11.4 7.4
Tobacco Products 50.8 54.2 56.9 68.0 87.0 100.0 107.4 117.8 7.4 9.7
Restaurant & Hotel 57.8 66.8 73.3 80.8 88.8 100.2 113.8 117.6 13.5 3.3
Non-Food and Services 71.5 77.0 83.0 90.7 95.6 99.5 111.0 115.2 11.6 3.8
Clothing & Footwear 59.1 66.8 74.7 84.2 92.8 100.4 113.1 120.1 12.6 6.2
Housing & Utilities 72.2 77.8 80.1 91.6 96.5 100.1 117.0 122.7 17.0 4.8
Furnishing & Household Equipment 61.1 68.8 75.8 87.1 93.2 100.3 107.0 112.4 6.6 5.1
Health 68.3 76.3 80.3 84.9 94.6 99.8 103.9 103.2 4.1 -0.7
Transport 87.0 85.9 98.9 107.6 102.4 98.8 100.6 101.4 1.8 0.8
Communication 119.5 107.5 100.2 99.2 98.7 100.0 103.6 103.5 3.5 0.0
Recreation and Culture 64.5 74.5 83.7 88.1 95.7 100.1 104.8 107.6 4.7 2.7
Education 71.6 78.2 83.4 86.9 92.7 96.7 109.4 112.6 13.1 2.9
Miscellaneous Goods & Services 68.4 73.1 80.3 90.5 93.1 99.3 106.0 112.4 6.8 6.0
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank.

27
Table 3.2 (d): Urban Consumers' Price Index by Commodities Group, Terai (First Eight Months)
(Base Year 2014/15 = 100)

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Percentage Change**
Commodities and Groups
Mid March Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2015/16 2016/17
Overall Index 66.5 71.7 76.7 84.5 92.6 99.0 107.5 110.5 8.6 2.8
Food and Beverage 61.3 69.6 72.3 80.3 89.2 98.1 106.3 105.8 8.4 -0.5
Cereals Grains & their products 68.7 77.2 73.6 83.4 94.4 101.0 110.9 109.9 9.7 -0.9
Legume Varieties 76.5 72.8 69.8 79.8 85.8 101.0 131.2 114.7 29.9 -12.6
Vegetables 41.2 60.9 65.5 69.8 78.8 82.0 80.4 76.3 -2.0 -5.1
Meat & Fish 63.2 67.6 71.1 85.1 95.2 106.1 110.9 111.0 4.5 0.1
Milk Products and Egg 55.2 59.4 70.2 75.3 81.1 98.4 110.9 114.0 12.7 2.8
Ghee and Oil 75.9 76.1 87.7 100.0 101.1 99.9 119.4 111.2 19.5 -6.8
Fruits 47.7 67.8 74.7 78.9 86.4 94.2 95.9 98.6 1.8 2.8
Sugar & Sweets 98.2 85.8 92.1 103.8 99.6 100.4 106.3 122.2 5.8 15.0
Spices 74.3 87.3 77.9 79.3 90.0 99.3 112.5 111.6 13.3 -0.8
Soft Drinks 66.1 79.2 83.3 92.6 94.1 100.4 106.0 109.4 5.6 3.2
Hard Drinks 53.9 56.8 60.8 62.2 84.6 100.0 113.3 124.7 13.3 10.0
Tobacco Products 42.0 53.7 59.4 64.4 76.1 100.0 109.8 113.6 9.8 3.4
Restaurant & Hotel 55.6 65.2 71.2 79.3 89.1 101.3 106.9 111.5 5.5 4.3
Non-Food and Services 70.6 73.2 80.2 87.9 95.1 99.6 108.4 114.3 8.9 5.4
Clothing & Footwear 55.6 62.7 71.5 79.5 90.8 100.5 115.1 123.5 14.5 7.3
Housing & Utilities 80.4 84.6 92.0 99.1 102.8 99.9 110.6 119.6 10.7 8.1
Furnishing & Household Equipment 61.2 66.7 76.1 85.7 92.3 100.6 106.5 110.8 5.8 4.1
Health 79.3 80.5 83.7 90.0 97.3 100.1 101.5 104.3 1.4 2.7
Transport 57.2 67.7 79.5 86.0 96.2 98.8 102.2 99.8 3.5 -2.3
Communication 122.3 107.9 102.1 99.8 100.2 99.9 106.4 106.2 6.5 -0.2
Recreation and Culture 85.1 72.9 79.0 85.6 93.5 100.0 103.8 104.9 3.7 1.1
Education 65.1 66.2 71.4 83.6 92.1 97.3 109.3 118.3 12.3 8.3
Miscellaneous Goods & Services 67.3 70.9 77.8 85.9 90.5 99.3 106.1 112.6 6.9 6.1
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank.

28
Table 3.2 (e): Urban Consumers' Price Index by Commodities Group, Hill (First Eight Months)
(Base Year 2014/15 = 100)

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Percent Change**
Commodities and Groups
Mid March Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2015/16 2016/17
Overall Index 64.7 72.2 78.3 85.9 92.7 99.3 109.6 116.1 10.4 5.9
Food and Beverage 60.8 72.4 76.6 84.7 91.9 98.9 108.9 111.1 10.0 2.0
Cereals Grains & their products 69.2 79.1 78.3 87.5 94.3 100.7 108.5 109.8 7.7 1.2
Legume Varieties 76.6 73.9 73.1 81.8 85.3 100.0 130.5 123.3 30.5 -5.5
Vegetables 34.9 64.2 69.6 77.4 86.7 85.8 98.2 91.9 14.5 -6.4
Meat & Fish 62.1 68.5 74.0 84.6 95.6 105.5 111.9 112.8 6.1 0.8
Milk Products and Egg 56.3 67.0 77.3 83.5 89.3 97.9 109.4 113.9 11.8 4.1
Ghee and Oil 73.6 76.2 85.2 97.7 98.9 99.7 109.9 111.5 10.2 1.4
Fruits 53.3 67.7 75.8 78.8 85.3 94.9 97.2 100.2 2.5 3.0
Sugar & Sweets 104.8 94.2 99.8 111.1 105.5 100.9 106.3 126.0 5.4 18.6
Spices 71.4 84.2 76.6 79.6 85.9 98.7 119.4 125.6 21.0 5.2
Soft Drinks 71.7 80.0 86.7 95.0 99.1 100.1 104.4 109.1 4.3 4.5
Hard Drinks 53.1 59.5 66.7 68.4 80.2 100.2 116.9 133.3 16.7 14.0
Tobacco Products 41.4 46.8 52.1 55.7 75.0 100.3 106.2 107.3 5.9 1.1
Restaurant & Hotel 59.3 67.1 78.8 91.6 95.4 101.0 113.4 127.8 12.3 12.7
Non-Food and Services 68.4 72.0 80.1 87.1 93.6 99.6 110.3 120.8 10.7 9.5
Clothing & Footwear 52.1 60.4 73.5 81.4 90.7 100.7 119.9 131.0 19.1 9.2
Housing & Utilities 73.6 78.5 83.5 89.9 96.1 99.7 111.2 126.7 11.5 13.9
Furnishing & Household Equipment 62.5 61.9 71.9 79.4 91.5 101.0 110.1 117.0 9.0 6.3
Health 78.3 74.7 83.6 88.4 95.5 100.3 103.3 108.6 3.0 5.2
Transport 61.7 71.6 85.0 92.0 97.4 99.3 104.8 103.8 5.6 -0.9
Communication 130.4 119.3 102.5 99.5 99.9 99.7 106.2 106.8 6.5 0.6
Recreation and Culture 82.1 82.5 87.2 90.6 93.7 100.3 107.1 109.4 6.8 2.2
Education 63.3 66.1 74.9 86.7 91.3 97.3 108.7 130.3 11.7 19.8
Miscellaneous Goods & Services 65.2 67.5 74.6 81.4 92.1 99.5 111.4 117.1 12.0 5.1
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank.
29
Table 3.3 (a) :National Wholesale Price Index, Annual
(Base Year 1999/00=100)

Month
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
July /August 142.4 160.0 177.9 201.4 218.4 230.7 257.9 273.2 293.5 309.2 327.6
August/September 147.1 163.5 180.3 203.0 219.6 235.2 259.1 278.8 299.2 314.5 331.0
September/October 149.0 164.3 179.6 206.1 222.5 236.0 260.1 279.7 299.8 317.6 333.5
October/November 150.5 161.3 176.1 208.7 224.1 235.3 258.5 281.8 300.8 322.1 335.3
November/December 146.3 155.2 170.9 203.2 226.0 235.7 255.2 278.8 297.2 320.7 329.4
December/January 143.0 150.8 172.9 200.6 226.4 233.7 255.0 277.7 292.8 315.2 320.8
January/February 145.1 151.3 174.0 198.7 222.2 232.6 254.6 275.1 290.2 310.2 315.4
February/March 146.7 156.4 175.6 197.0 221.4 235.4 256.6 277.9 293.1 309.1 312.4
March/April 143.2 156.6 178.1 197.6 220.3 234.8 254.5 277.4 292.0 308.2
April/May 145.4 160.1 184.9 200.4 221.9 239.7 259.2 282.8 297.1 314.4
May/June 146.0 164.9 193.0 205.2 223.4 244.0 260.4 284.2 299.5 318.8
June/July 151.8 171.8 198.0 211.8 227.2 251.0 267.9 288.9 304.4 323.1
Annual 146.4 159.7 180.1 202.8 222.8 237.0 258.3 279.7 296.6 315.3 325.7
Annual Growth (Percentage) 9.0 9.1 12.8 12.6 9.9 6.4 9.0 8.3 6.1 6.3 3.4
* Provisional
Source : Nepal Rastra Bank

30
Table 3.3 (b): National Wholesale Price Index (First Eight Months)
(Base Year 1999/00 = 100)

Weights 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 2015/16 2016/17 Percent Change**
Commodities and Groups
(%) Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March* 2015/16 2016/17
Overall Index 100.0 211.8 221.4 227.2 235.4 251.0 256.6 267.9 277.9 288.9 293.0 304.4 309.1 323.1 312.4 5.5 1.0
Agricultural Commodities 49.6 233.9 241.1 244.3 245.3 271.6 275.5 297.1 306.8 323.4 332.7 354.5 362.9 389.1 362.1 9.1 -0.2
Foodgrains 16.6 207.5 219.3 202.3 206.2 205.8 225.5 234.7 253.7 248.8 271.7 274.9 277.0 273.2 282.3 1.9 1.9
Cash Crops 6.1 241.8 221.8 251.4 243.7 340.3 323.8 349.1 333.9 369.1 376.7 349.7 390.0 470.6 340.1 3.5 -12.8
Pulses 3.8 289.4 281.2 248.2 271.5 278.2 293.7 292.5 293.9 305.6 331.0 418.3 487.4 498.1 492.7 47.3 1.1
Fruits and Vegetables 11.2 195.1 202.0 241.0 229.9 275.6 249.1 286.6 249.2 300.8 293.7 366.3 321.2 387.3 296.8 9.4 -7.6
Spices 2.0 245.4 281.1 258.1 226.5 216.3 234.1 282.8 310.1 314.3 321.2 330.1 387.4 386.8 429.2 20.6 10.8
Livestock Production 10.0 293.1 309.7 309.2 322.0 342.9 359.5 385.2 446.5 452.5 453.1 456.8 483.3 492.7 518.2 6.7 7.2
Domestic Manufactured Commodities 20.4 184.2 198.0 205.3 216.9 221.0 224.4 227.1 239.6 245.5 254.0 256.2 269.9 272.4 281.2 6.3 4.2
Food-Related Products 6.1 180.0 180.6 189.7 206.4 211.3 219.5 222.7 230.9 236.9 234.6 235.9 241.8 247.6 256.2 3.0 6.0
Beverages and Tobacco 5.7 182.8 211.1 220.2 231.7 235.6 237 241.2 260.9 269.3 290.6 291.9 316.0 325.7 334.9 8.7 6.0
Construction Materials 4.5 237.7 241.2 246.3 257.2 263.1 260.3 262.4 280.3 284.7 290.4 293.3 299.9 288.2 295.9 3.3 -1.3
Others 4.1 133.2 158.1 162.5 167.3 168.4 174.6 175 177.7 181.7 191.6 195.6 214.6 217.7 227.0 12.0 5.8
Imported Commodities 30.0 194.1 204.9 213.7 231.6 237.2 247 247.3 256.2 261.4 254.1 254.4 247.1 248.7 251.4 -2.8 1.8
Petroleum Products and Coal 5.4 347.4 372.3 398.6 458.6 490.0 529.7 529.7 557.6 574.2 492.2 492.9 429.1 425.7 424.2 -12.8 -1.1
Chemical Fertilizers and Chemical Goods 2.5 187.3 197.9 204.2 206.9 206.9 228.1 228.1 232.6 232.6 250.9 250.9 252.8 250.9 251.2 0.8 -0.6
Transport Vehicles and Machinery Goods 7.0 164.5 175.8 180.3 188.2 188.4 188.5 188.5 186.1 188.6 190.1 190.1 202.9 212.2 229.7 6.8 13.2
Electric and Electronic Goods 1.9 100.5 98.7 99.1 110.8 110.8 110.8 110.8 124.6 124.6 124.3 124.9 124.9 126.2 125.3 0.5 0.3
Drugs and Medicine 2.7 131.5 137.2 137.4 141.7 146.1 146.1 146.1 139.4 147.7 154.0 154.0 155.5 152.1 140.6 1.0 -9.6
Textile-Related Products 3.1 134.2 136.5 141.8 170.6 170.5 171.3 171.3 177.0 177.0 191.8 191.8 196.8 196.4 193.0 2.6 -1.9
Others 7.5 184.3 193.0 200.7 204.7 202.8 206.2 207.1 220.1 223.7 238.3 238.2 239.7 241.6 243.2 0.6 1.5
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank

31
Table 3.3 (c): National Wholesale Price Index (Annual Average)
(Base Year 1999/00 = 100)

Percent Change
Commodities and Groups Weights (%) 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
2014/15 2015/16
Overall Index 100.00 180.1 202.8 222.8 237.0 258.3 279.7 296.6 315.3 6.1 6.3
Agricultural Commodities 49.59 181.3 222.7 246.7 252.8 279.6 311.1 338.7 374.2 8.9 10.5
Foodgrains 16.59 161.5 189.3 214.0 203.7 222.7 244.5 266.9 273.1 9.2 2.3
Cash Crops 6.09 199.6 275.4 245.4 279.7 351.3 353.4 393.0 411.1 11.2 4.6
Pulses 3.77 226.6 278.6 275.6 266.1 299.7 291.6 343.4 477.7 17.8 39.1
Fruits and Vegetables 11.18 166.7 182.4 225.4 251.3 253.3 285.7 321.8 376.6 12.7 17.0
Spices 1.95 143.9 198.0 273.4 229.7 237.1 307.5 307.2 375.4 -0.1 22.2
Livestock Production 10.02 209.6 274.5 309.3 318.7 360.3 432.1 447.5 477.4 3.6 6.7
Domestic Manufactured Commodities 20.4 164.9 179.0 195.2 213.9 224.9 238.4 251.7 267.5 5.6 6.2
Food-Related Products 6.12 153.8 173.1 183.0 202.7 219.8 230.5 235.5 243.3 2.2 3.3
Beverages and Tobacco 5.69 160.0 181.5 207.4 231.4 238.4 258.9 284.3 312.6 9.8 9.9
Construction Materials 4.50 217.9 226.6 238.3 250.9 261.7 276.3 288.6 296.2 4.4 2.6
Others 4.07 129.9 131.8 148.8 165.3 173.1 179.6 189.8 208.9 5.7 10.1
Imported Commodities 30.0 188.4 186.2 202.1 226.6 245.6 255.9 257.7 250.3 0.7 -2.9
Petroleum Products and Coal 5.40 330.0 314.2 364.0 441.2 523.6 557.9 522.3 448.3 -6.4 -14.2
Chemical Fertilizers and Chemical Goods 2.46 209.9 189.1 198.3 206.7 223.0 232.4 246.5 251.7 6.1 2.1
Transport Vehicles and Machinery Goods 6.97 165.4 163.0 172.4 185.9 188.4 188.2 190.8 202.4 1.4 6.1
Electric and Electronic Goods 1.87 100.1 97.0 99.9 111.2 110.8 120.3 124.3 125.1 3.3 0.6
Drugs and Medicine 2.73 123.0 132.2 134.4 138.1 146.1 144.0 154.1 154.1 7.0 -0.1
Textile-Related Products 3.10 125.0 128.8 135.7 167.3 171.3 176.5 187.4 194.3 6.2 3.7
Others 7.45 173.0 180.1 192.0 202.1 206.4 216.5 233.0 241.0 7.6 3.5
Source : Nepal Rastra Bank

32
Table 3.4 (a) : National Salary and Wage Rate Index, Annual
(Base Year 2004/05=100)
Fiscal Year
Month
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
July /August 122.8 132.8 162.3 185.4 241.9 271.4 296.3 333.7 354.0 406.6
August/September 123.3 134.6 162.6 187.9 245.3 273.7 305.3 333.9 355.2 408.9
September/October 123.5 134.7 164.5 190.2 247.0 274.3 305.3 334.0 360.9 412.9
October/November 123.5 135.8 165.9 190.6 247.0 275.8 305.3 334.0 361.0 412.9
November/December 123.3 141.3 165.9 190.6 249.7 275.8 308.2 340.1 361.5 412.9
December/January 124.8 144.0 169.5 190.6 251.7 277.5 323.7 346.5 362.0 413.0
January/February 124.7 145.3 169.5 197.5 256.9 277.5 324.5 346.5 362.0 413.3
February/March 125.1 149.2 169.6 202.0 257.7 277.7 324.5 346.5 362.3 413.3
March/April 125.4 150.8 171.7 214.3 259.9 279.0 324.5 347.5 365.3
April/May 125.5 152.0 171.7 214.3 262.8 281.3 324.5 347.9 366.2
May/June 127.6 155.0 175.7 216.6 262.8 282.1 324.5 348.9 366.2
June/July 132.6 157.0 181.9 216.6 270.4 287.7 324.9 350.5 371.3
Annual 125.2 144.4 169.2 199.7 254.4 277.8 316.0 342.5 362.3 411.7
Annual Growth (Percentage) 9.7 15.3 17.2 18.0 27.4 9.2 13.7 8.4 14.9 14.4
* Provisional
Source : Nepal Rastra Bank

33
Table 3.4 (b) : National Salary and Wage Rate Index, first Eight Months
(Base Year 2004/05 = 100)

Weights 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 2015/16 2016/17 Percent Change**
Commodities and Groups
(%) Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March* 2015/16 2016/17
Overall Index 100.0 202.0 216.6 257.7 270.4 277.7 287.7 324.5 324.9 346.5 350.5 362.3 371.3 413.3 4.6 14.1
Salary Index 27.0 157.0 157.0 187.3 187.3 187.3 187.3 236.8 236.9 254.7 254.7 256.7 256.7 305.2 0.8 18.9
Civil Service 2.8 199.3 199.3 236.5 236.5 236.5 236.5 310.6 310.6 340.7 340.7 340.7 340.7 423.2 0.0 24.2
Public Corporations 1.1 164.1 164.1 210.0 210.0 210.0 210.0 268.0 268.9 288.1 288.1 290.1 290.1 353.1 0.7 21.7
Bank & Financial Institutions 0.6 204.1 204.1 290.6 290.6 290.6 290.6 429.1 429.1 447.5 447.5 457.7 457.7 516.6 2.3 12.9
Army & Police Forces 4.0 180.2 180.2 227.9 227.9 227.9 227.9 306.5 306.5 332.4 332.4 332.4 332.4 410.8 0.0 23.6
Education 10.6 174.5 174.5 207.8 207.8 207.8 207.8 271.2 271.2 295.8 295.8 300.2 300.2 362.4 1.5 20.7
Private Organizations 7.9 102.5 102.5 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 0.0 0.0
Wage Rate Index 73.0 218.6 238.6 283.7 301.1 311.0 324.8 356.9 357.4 380.4 385.8 401.2 413.6 453.2 5.5 13.0
Agricultural Labourer 39.5 251.9 279.8 320.1 345.4 360.2 380.5 400.1 400.1 431.8 441.0 456.1 473.6 517.9 5.6 13.5
Male 20.5 258.8 280.5 321.0 344.8 353.6 366.7 384.4 384.4 430.5 439.1 449.4 463.7 497.0 4.4 10.6
Female 19.0 244.4 279.0 319.2 346.2 367.2 395.3 417.0 417.0 433.3 443.1 463.4 484.2 540.6 6.9 16.7
Industrial Labourer 25.3 176.5 182.4 237.1 243.1 248.3 255.1 309.8 309.8 318.2 318.2 329.6 334.1 367.8 3.6 11.6
Highly Skilled 6.3 174.3 179.5 222.4 229.8 233.3 241.3 289.0 289.0 301.9 302.1 321.7 325.5 357.1 6.6 11.0
Skilled 6.3 171.4 178.3 232.6 237.2 241.5 251.8 306.8 306.8 314.5 314.5 326.9 332.7 370.0 3.9 13.2
Semi Skilled 6.3 171.5 176.9 236.7 242.3 247.7 249.3 307.0 307.0 315.9 315.9 322.1 327.8 364.3 2.0 13.1
Unskilled 6.3 188.9 194.9 256.6 263.1 270.7 278.1 336.2 336.2 340.4 340.5 347.5 350.4 379.7 2.1 9.3
Construction Labourer 8.3 187.9 213.7 251.9 266.8 267.8 271.9 294.5 299.3 325.0 329.0 358.1 369.7 404.8 10.2 13.0
Mason 2.8 177.8 201.8 238.2 245.5 248.4 250.3 272.7 278.4 302.8 305.4 333.5 345.3 377.8 10.1 13.3
Skilled 1.4 176.0 197.3 227.6 235.5 239.7 243.4 263.1 267.5 293.7 295.2 320.1 339.7 368.3 9.0 15.1
Unskilled 1.4 179.5 206.3 248.7 255.4 257.1 257.1 282.3 289.4 311.9 315.6 346.9 351.0 387.2 11.2 11.6
Carpenter 2.8 170.3 189.9 229.5 245.5 243.6 244.3 257.1 262.0 285.9 288.5 319.1 336.2 372.0 11.6 16.6
Skilled 1.4 168.5 185.7 218.4 236.2 235.1 236.4 247.8 253.3 279.1 280.3 313.8 330.3 358.8 12.4 14.3
Unskilled 1.4 172.1 194.2 240.7 254.9 252.2 252.2 266.3 270.7 292.6 296.7 324.4 342.2 385.3 10.9 18.8
Worker 2.8 215.7 249.3 288.0 309.2 311.3 321.0 353.4 357.4 386.0 392.8 421.4 427.4 464.5 9.2 10.2
Male 1.4 217.6 251.6 293.0 312.7 314.5 325.9 357.2 359.9 396.4 402.8 428.1 428.1 455.1 8.0 6.3
Female 1.4 213.8 247.0 283.0 305.7 308.1 316.2 349.7 355.0 375.8 382.9 414.8 426.6 473.9 10.4 14.2
* Provisional
** Point to Point Change (Mid March)
Source : Nepal Rastra Bank

34
Table 3.4(c) : National Salary and Wage Rate Index (Annual Average)
(Base Year 2004/05 = 100)
Weight Percent Change
S.N. Groups/Sub-groups 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
% 2014/15 2015/16
Overall Index 100.0 144.4 169.2 199.7 254.4 277.8 316.0 342.5 362.3 8.4 5.8
1 Salary Index 27.0 130.6 157.0 157.0 187.3 187.3 234.8 254.6 256.7 8.4 0.8
1.1 Civil Service 2.8 161.2 199.3 199.3 236.5 236.5 309.6 340.7 340.7 10.0 0.0
1.2 Public Corporations 1.1 138.4 164.1 164.1 208.6 210.0 263.4 287.3 290.1 9.1 1.0
1.3 Bank & Financial Institutions 0.6 186.0 204.1 204.1 290.6 290.6 417.6 446.2 457.7 6.8 2.6
1.4 Army & Police Forces 4.0 146.9 180.2 180.2 227.9 227.9 304.9 332.4 332.4 9.0 0.0
1.5 Education 10.6 134.5 174.5 174.5 207.8 207.8 268.1 295.8 300.2 10.3 1.5
1.6 Private Organizations 7.9 101.2 102.5 102.5 111.3 111.3 111.3 111.3 111.3 0.0 0.0

2 Wage Rate Index 73.0 149.4 173.8 215.5 279.2 311.2 345.9 374.9 401.3 8.4 7.0
2.1 Agricultural Labourer 39.5 155.9 187.3 247.8 320.0 360.6 392.4 422.7 457.5 7.7 8.2
Male 20.5 155.6 190.3 251.8 322.4 354.4 377.8 416.1 451.0 10.1 8.4
Female 19.0 156.3 184.0 243.4 317.4 367.2 408.1 429.8 464.6 5.3 8.1
2.2 Industrial Labourer 25.3 142.8 158.3 173.3 225.0 248.2 293.1 317.4 329.0 8.3 3.7
Highly Skilled
6.3 131.4 144.8 169.5 214.0 233.8 272.6 300.4 319.8 10.2 6.5
Skilled
6.3 140.1 155.1 168.6 220.4 242.2 290.0 314.3 326.9 8.4 4.0
Semi Skilled
6.3 145.6 161.5 169.5 221.8 246.9 290.1 315.8 323.3 8.9 2.4
Unskilled
6.3 154.3 171.7 185.6 243.7 269.8 319.7 339.3 345.8 6.1 1.9
2.3 Construction Labourer 8.3 138.6 156.6 189.9 250.3 268.1 285.9 322.9 354.1 12.9 9.7
Mason
2.8 134.4 151.3 179.2 235.3 248.8 264.1 300.9 329.6 13.9 9.5
Skilled
1.4 132.2 149.9 177.0 226.1 240.5 255.7 291.1 318.4 13.8 9.4
Unskilled
1.4 136.6 152.8 181.3 244.5 257.1 272.6 310.8 340.9 14.0 9.7
Carpenter
2.8 130.1 144.6 169.8 227.5 243.5 252.6 284.3 316.8 12.5 11.4
Skilled
1.4 126.7 141.4 167.0 217.7 234.9 244.2 276.7 310.9 13.3 12.4
Unskilled
1.4 133.4 147.7 172.7 237.2 252.2 261.0 291.9 322.8 11.8 10.6
Worker
2.8 151.3 173.8 220.6 288.1 311.8 340.7 383.3 415.7 12.5 8.5
Male
1.4 149.8 171.6 221.7 292.2 315.2 345.6 392.5 422.0 13.6 7.5
Female
1.4 152.9 176.1 219.5 283.9 308.4 335.8 374.1 409.5 11.4 9.5
Source : Nepal Rastra Bank
35
Table 3.5 : Average Retail Price of Some Major Commodities
Rs. Per. Kg.
Mustard Oil Rs. Per. Ltr.
2014/15 2015/16 2016/17*
Commodities Unit Hill Terai National Hill Terai National Hill Terai National
Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr

Rice Coarse Per.Kg 30.5 46.1 24.2 27.9 27.4 37.0 45.6 48.1 39.0 34.9 42.3 41.5 46.8 45.0 40.7 42.8 43.7 43.9

Wheat Flour Per.Kg 31.9 49.6 22.8 32.8 27.4 41.2 47.3 53.5 38.0 41.0 42.6 47.3 51.5 44.8 39.9 43.8 45.7 44.3

Black Gram Per.Kg 89.8 142.3 65.4 105.2 77.6 123.7 167.3 193.3 171.3 227.2 169.3 210.3 268.8 257.8 198.2 179.3 233.5 218.5

Rahar Per.Kg 69.1 137.1 55.6 115.2 62.4 126.2 175.3 187.5 194.7 256.4 185.0 222.0 232.3 246.0 199.5 194.3 215.9 220.2

Mustard Oil Per.Kg 116.3 179.3 110.0 146.2 113.1 162.7 177.7 220.7 170.7 204.4 174.2 212.6 187.3 181.8 172.5 193.2 179.9 187.5

Ghee (Purified) Per. Lt. 293.8 655.0 480.0 492.0 386.9 573.5 728.3 740.0 777.3 799.7 752.8 769.8 702.5 737.5 791.3 879.3 746.9 808.4

Mutton Per. Kg 356.3 609.4 390.0 500.0 373.1 554.7 658.3 673.3 640.0 659.0 649.2 666.2 637.5 647.5 645.8 681.3 641.6 664.4

Potato Per.Kg 28.3 37.3 27.4 15.6 27.8 26.4 39.5 37.7 28.3 22.2 33.9 30.0 51.5 36.3 37.3 21.8 44.4 29.0

Dried Onion Per.Kg 38.3 73.3 35.0 37.4 36.7 55.3 74.0 45.7 83.3 34.7 78.7 40.2 46.5 42.8 33.0 31.5 39.8 37.1

Ginger Per.Kg 117.0 97.1 128.0 80.3 122.5 88.7 134.7 97.7 133.3 53.3 134.0 75.5 113.8 68.8 98.0 83.8 105.9 76.3
* Provisional
Source : Department of Agriculture, Marketing Development Division

36
Table 3.6 (a) : Price Situation of Petroleum Products in FY 2016/17
(Wholesale price )

Places Petrol Diesel Kerosene ATF (Duty paid) L.P. Gas F.O.
S.N.
Depo of Corporation/ Customs point Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre

1 Biratnagar 95918.4 73268.7 73302.4 86000.0 62876.3


2 Birgunj 95918.4 73268.7 73302.4
3 Amlekhgunj 95918.4 73268.7 73302.4 64647.6
4 Kathmandu 97361.5 74720.6 74754.2 86000.0
5 Pokhara 96880.5 74236.6 74270.3 86000.0
6 Bhairahawa 95918.4 73268.7 73302.4 86000.0
7 Nepalgunj 95918.4 73268.7 73302.4 86000.0
8 Surkhet 97361.5 74720.6 74754.2 86000.0
9 Dang 96880.5 74236.6 74270.3
10 Dhangadi 95918.4 73268.7 73302.4 86000.0
11 Dipayal 97361.5 74720.6 74754.2
12 Charali 95918.4 73268.7 73302.4
13 Mahendranagar, Janakpur 95918.4 73268.7 73302.4
14 Manthali
15 Barauni 78619.7
16 Haldiya 73675.5
17 Mathura 74501.4
18 Pardip 70397.1
Average Retail Price in Kathandu
Valley (Rs. As per litre)
Source: Nepal Oil Corporation
37
@
Table 3.6 (b) : Price Situation of Some Petroleum Products (Kathmandu Valley)
Price in Rs.
13 15 16 18 19
Items Unit 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2013/14 2015/16 2016/17**

Petrol Litre 67.009 67.259 100.00 77.5014 80.0 97.0 120.0 123.00 134.5 109.0 99.0 101.5

Diesel Litre 46.009 53.15 70.00 55.0015 61.0 68.5 89.0 99.00 105.5 86.5 75.0 77.5

Kerosene Litre 39.009 47.65 65.00 55.0015 61.0 68.5 89.0 99.00 105.5 86.5 75.0 77.5

Kerosene (Subsidized) Litre - - - - -

Aircraft Turbine Fuel Litre 55.009 68 100.0012 70.0015 75.0 90.0 109.0 120.00 143.0 133.0 109.0 86

Light Diesel Oil Kilo Litre 45515.75 46889.46 61585.89 53,456.4 59,488.0 70,830.5 89,029.7 95402.58 - - -

Furnace Oil Kilo Litre 46080.78 43667.82 72935.72 50,525.3 60,449.5 71,994.8 96,050.7 82847.78 - 64941.0 -

L. P. Gas M. Ton 50612.27 49389.78 69215.82 63,281.52 71,315.1 76,606.4 99,644.0 86808.85* - 79856.6 80380.1 96827.5

@ Prices of Kathmandu Valley only


13 18
Since May 2008 Since 20 March 2014
15 19
Since March 2009 Since 14 March 2014
16
Since 14 March 2009 * Barauni Price
Source: Nepal Oil Corporation. ** Mid-March (Latest Price)

38
Table 3.7 : Supply Situation of Some Petroleum Products

First Eight Months


Product Unit
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17

Petrol Kilo Litre 162276 188082 202467 223087 251451 283567 238755 180027 117789 242943
Diesel Kilo Litre 612504 652764 653560 721203 811100 901393 789922 549324 346380 730208
Kerosene Kilo Litre 55782 43399 41609 24065 19064 18628 14203 12140 6883 11574
Light Diesel Oil Kilo Litre 317 228 - 260 - - 0 - 0
Furnace Oil Kilo Litre 2589 1434 440 2456 2172 - 38.33 304 - 0
Air Turbine Fuel Kilo Litre 82631 99990 109904 115896 123527 139404 78680 92769 37158 97004
L.P. Gas M.Ton 141171 159286 181446.3 207038 232660 258299 217578.95 165975 101391.99 188170
Total 1057270 1145183 1189426.3 1294005 1439974 1601291 1339177.3 1000539 609601.99 1269899
Source: Nepal Oil Corportation
** in Metric Ton

39
Table 4.1 : Monetary Survey
Rs. in ten million
Mid July First Eight Months
Sn Description
2006 2006 2007 2008 2009 2010*! 2011*! 2012*! 2013*! 2014*! 2015*! 2016*! 2014/15*! 2015/16*! 2016/17*!
1 Net Foreign Assets 13943.9 13943.9 13190.9 17145.6 22456.2 21652.5 22126.6 38377.2 46823.8 59922.0 74728.7 95602.2 63535.5 93079.4 99747.6
2 Net Domestic Assets 20798.3 20738.5 26360.9 32392.2 40595.9 60446.2 70005.5 74653.0 84713.8 96674.7 113051.4 128855.6 105823.2 116239.3 146027.9
3 Domestic Credit 30207.0 32268.4 36055.8 43727.0 55567.6 79659.8 91022.5 99469.1 116586.6 131430.5 152734.6 180569.5 139829.7 161206.2 199967.1
4 Domestic Credit# 31311.7 32268.4 37658.2 12076.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
5 Net Claims on Government 7056.8 7097.1 7834.4 8708.0 10486.8 13652.3 16343.9 16288.2 16778.8 14198.9 12721.1 8775.9 7120.2 5027.0 346.4
a. Claims on Government 7056.8 7097.1 8146.6 9102.6 10486.8 13652.3 16343.9 16525.5 16797.3 16549.0 16102.5 20277.8 15222.9 14635.8 19917.6
b. Govt. Deposits 0.0 0.0 312.3 394.6 0.0 0.0 0.0 237.3 18.5 2350.1 3381.3 11501.8 8102.7 9608.8 19571.2
6 Claims on Govt. Enterprises 1712.2 636.9 682.8 731.7 646.8 847.3 860.3 1137.5 1270.6 1190.5 1336.1 1164.1 1301.2 1295.7 1271.1
a.Financial 1266.1 180.8 171.3 167.0 137.6 259.7 222.6 127.6 131.7 148.8 326.1 341.4 267.4 341.4 443.9
b. Non Financial 446.1 456.1 511.5 564.6 509.2 587.6 637.6 1009.9 1138.9 1041.7 1010.1 822.7 1033.8 954.3 827.2
7 Claims on Non-Financial Govt.Enter 5.9 177.4 190.9 303.9 598.5 1305.2 1086.0 1060.8 1234.5 958.6 1282.8 1402.9 2025.8 1586.6 1730.4
8 Claims on Private Sector 21432.1 24357.0 27347.7 33983.4 43835.4 63855.0 72732.2 80982.6 97302.6 115082.5 137394.5 169226.5 129382.4 153296.9 196619.2
Claims on Private sector # 22536.7 24357.0 28950.1 344.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 Net-Non Monetary Liabilites 9408.7 11529.9 9694.9 11334.8 14971.7 19213.6 21017.0 24816.1 31872.8 34755.8 39683.1 51713.8 34006.5 44967.0 53939.2
Net-Non Monetary Liabilites# 10513.4 11529.9 107612.4 14971.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 Broad Money, M2 (11+12) 34742.2 34682.4 39551.8 49537.7 63052.1 82098.7 92132.0 113030.2 131537.6 156596.7 187780.1 224457.9 169358.7 209318.7 245775.6
11 Narrow Money, M1 11438.9 11306.1 12688.8 15434.4 19645.9 21209.7 22235.1 26370.6 30159.0 35483.0 42474.5 50328.7 37960.7 50989.2 51444.0
a. Currency 7792.6 7778.0 8355.3 10017.5 12575.8 13928.1 14193.1 17049.2 19587.4 22753.7 27008.0 32748.3 25481.9 31162.1 36185.9
b. Demand Deposits 3646.2 3528.0 4333.4 5416.9 7070.1 7281.6 8042.0 9321.4 10571.6 12729.3 15466.4 17580.4 12478.8 19827.1 15258.0
12 Time and Saving Deposits ±± 23303.3 23376.3 26863.0 34103.3 43406.2 60889.0 69896.9 86659.7 101378.6 121113.7 145305.7 174129.1 131398.0 158329.5 194331.6

* Provisional ! Inclduing development banks and finance companies since mid-July 2010.
# Adjusting loan write-off of Rs 11.05 billion in the series of Mid-July 2006 and loan write-off of Rs 2869.3 million (Rs 821.7 million principal
and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest) by RBB as at mid Dec-2006
// Included consolidated Balance sheet of ADB/N
++ Including Margin Deposits
Source: Nepal Rastra Bank

40
Table 4.2 (a) : Factors Affecting Money Supply
Rs.in ten million
Changes Over Previous Year First Eight Months
Sn Description
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17*
1 Net Foreign Assets@ 2559.76 590.42 2967.47 4475.84 -311.00 408.97 13162.66 6893.96 12712.71 14503.60 18895.32 3507.14 15818.30 5005.56
2 Net Domestic Assets@ 2138.40 4278.99 7018.43 9038.56 12055.20 9624.36 7735.56 11613.44 12346.38 16679.84 17782.38 9254.82 5720.21 16312.13
3 Domestic Credit 2182.95 3787.43 7671.17 11840.58 13002.60 11362.67 8446.66 17117.48 14843.87 21304.07 27834.92 8399.21 8471.66 19397.64
4 Domestic Credit# 3287.61 5389.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 Net Claims on Government 667.35 737.30 873.60 1778.81 2987.30 2691.64 -55.73 490.62 -2579.88 -1477.81 -3945.21 -7078.70 -7694.18 -8429.51
a. Claims on Government 667.35 1049.56 955.99 1384.17 2987.30 2691.64 181.55 271.79 -248.24 -446.58 4175.33 -1326.10 -1466.67 -360.15
b. Govt. Deposits 0.00 312.25 82.39 -394.64 0.00 0.00 237.28 -218.83 2331.63 1031.23 8120.54 5752.60 6227.51 8069.36
6 Claims on Govt. Enterprises -217.60 45.90 48.90 -84.80 642.20 12.97 277.27 133.11 -80.15 145.65 -172.02 110.74 -40.41 106.96
a.Financial -7.00 -9.50 -4.30 -29.40 331.00 -37.06 -95.03 4.14 17.02 177.31 15.36 118.69 15.33 102.43
b. Non Financial -210.50 55.40 53.20 -55.40 311.10 50.03 372.30 128.97 -97.18 -31.66 -187.38 -7.95 -55.73 4.53
7 Claims on Non-Financial Govt.Enter 2.70 13.60 113.00 294.60 -19.90 -219.15 -25.22 173.73 -275.95 324.20 120.14 1067.23 303.83 327.43
8 Claims on Private Sector 1730.40 2990.70 6635.70 9852.00 9685.60 8877.21 8250.34 16320.02 17779.85 22312.03 31832.00 14299.94 15902.42 27392.76
Claims on Private Sector # 2835.10 4593.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9 Net-Non Monetary Liabilites@ 44.50 -491.60 652.70 2802.00 947.50 1738.31 711.10 5504.04 2497.49 4624.23 10052.53 -855.61 2751.45 3085.51
Net-Non Monetary Liabilites# 1149.20 1110.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Broad Money, M2 (11+12) 4698.20 4869.40 9985.90 13514.40 11744.10 10033.34 20898.22 18507.40 25059.09 31183.44 36677.71 12761.95 21538.52 21317.70
11 Narrow Money, M1 1418.30 1382.70 2745.60 4211.50 2624.30 1025.42 4135.44 3788.45 5323.99 6991.46 7854.25 2477.66 8514.76 1115.25
a. Currency 914.20 577.30 1662.20 2558.30 10181.10 265.02 2856.02 2538.25 3166.32 4254.30 5740.23 2728.14 4154.07 3437.65
b. Demand Deposits 504.10 805.40 1083.40 1653.20 1061.30 760.41 1279.42 1250.19 2157.67 2737.16 2114.02 -250.49 4360.69 -2322.40
12 Time and Saving Deposits ±± 3279.90 3486.70 7240.30 9302.90 9119.80 9007.90 16762.79 14718.95 19735.10 24191.98 28823.46 10284.29 13023.76 20202.45
13 Exchange Valuation gian(+)/Loss(-) 609.90 -1343.40 987.10 834.80 -789.20 65.08 3088.00 1552.63 385.46 303.17 1978.14 106.38 2532.37 -860.14
* Provisional
@ Adjustment of exchange valuation gain/loss
# Adjusting credit write-off of Rs 11.05 billion in the series of Mid-July 2006 and credit write-off of Rs 2869.3 million (Rs 821.7 million principal
and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest)
by RBB as at mid Dec-2006
++ Including Margin Deposits
Source: Nepal Rastra Bank

41
Table 4.2 (b) : Factors Affecting Money Supply
(Annual change in percent)

First Eight Months


Sn Heads
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15* 2015/16* 2016/17*
1 Net Foreign Assets@ 4.2 22.5 26.1 -1.6 1.9 59.5 18.0 27.2 24.2 25.3 5.9 21.2 5.2
2 Net Domestic Assets@ 20.6 26.6 27.9 22.8 16.0 11.0 15.6 14.6 17.3 15.7 9.6 5.1 12.7
3 Domestic Credit 11.7 21.3 27.1 17.2 14.6 9.3 17.2 12.7 16.2 18.2 6.4 5.5 10.7
4 Domestic Credit# 16.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
5 Net Claims on Government 10.4 11.2 20.4 26.9 19.7 -0.3 3.0 -15.4 -10.4 -31.0 -49.9 -60.5 -96.1
a. Claims on Government 14.8 11.7 15.2 26.9 19.7 1.1 1.6 -1.5 -2.7 25.9 -8.0 -9.1 -1.8
b. Govt. Deposits 0.0 26.4 0.0 0.0 - 0.0 -92.2 12636.5 43.9 240.2 244.8 184.2 70.2
6 Claims on Govt. Enterprises 12.1 7.2 -11.6 23.0 19.7 32.2 11.7 -6.3 12.2 -12.9 9.3 -3.0 9.2
a.Financial 1.1 -2.5 -17.6 82.8 109.0 -42.7 3.2 12.9 119.2 4.7 79.8 4.7 30.0
b. Non Financial -5.3 10.4 -9.8 6.9 8.0 58.4 12.8 -8.5 -3.0 -18.6 -0.8 -5.5 0.6
7 Claims on Non-Financial Govt.Enter 7.6 59.2 96.9 54.5 -23.1 -2.3 16.4 -22.4 33.8 9.4 111.3 23.7 23.3
8 Claims on Private Sector 12.3 24.3 29.0 14.2 13.9 11.3 20.2 18.3 19.4 23.2 12.4 11.6 16.2
Claims on Private Sector# 18.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 Net-Non Monetary Liabilites@ -4.3 6.7 24.7 1.7 9.9 3.4 22.2 7.8 13.3 25.3 -2.5 6.9 6.0
Net-Non Monetary-Liabilites# 9.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 Broad Money, M2 (11+12) 14.0 25.2 27.3 14.1 12.3 22.7 16.4 19.1 19.9 19.5 8.1 11.5 9.5
11 Narrow Money, M1 12.2 21.6 27.3 11.0 5.2 18.6 14.4 17.7 19.7 18.5 7.0 20.0 2.2
a. Currency 7.4 19.9 25.5 13.0 1.9 20.1 14.9 16.2 18.7 21.3 12.0 15.4 10.5
b. Demand Deposits 22.8 25.0 30.5 7.6 11.4 15.9 13.4 20.4 21.5 13.7 -2.0 28.2 -13.2
12 Time and Saving Deposits ±± 14.9 27.0 27.3 15.5 14.8 24.0 17.0 22.7 -100.0 19.8 8.5 9.0 11.6
* Provisional
@ Adjustment of exchange valuation gain/loss
# Adjusting credit write-off of Rs 11.05 billion in the series of Mid-July 2006 and credit write-off of Rs 2869.3 million (Rs 821.7 million principal
and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest)
by RBB as at mid Dec-2006
++ Including Margin Deposits
Source: Nepal Rastra Bank

42
Table 4.3: Sources and Uses of Banks and Financial Institutions#
Rs. in ten Million
2012 2013 2014 2015 2016 First Eight Month
S.No. Details
Mid July Mid July Mid July Mid July Mid July 2014/15* 2015/16* 2016/17*
1 Total Deposits 101182.29 118809.02 140676.95 168882.99 201681.62 151339.07 183062.43 218330.16
2 Current 9490.03 11369.30 12968.92 15929.00 18346.03 12898.16 16576.58 14969.53
3 Savings and call 39716.86 46948.52 58970.59 71247.12 87367.96 64530.58 80809.73 82124.16
4 Fixed 36822.35 42099.46 45294.19 50920.11 61586.14 48242.98 52109.82 83855.12
5 Call 14472.99 17476.06 22338.14 29571.74 32787.81 24447.42 32061.79 35587.38
6 Margin 680.07 915.69 1105.11 1215.02 1593.68 1219.93 1504.51 1793.97
7 Borrwoing from Nepal Rastra Bank 47.33 275.76 193.30 326.15 671.02 227.54 236.75 968.75
8 Foregin Liabilities 250.79 295.43 0.41 0.00 0.00 0.00 0.00 0.00
9 Other Liabilites 15403.89 18456.84 19145.31 20391.65 23598.07 19645.66 16858.45 35070.53
10 Assets=Liabilites 116884.31 137837.05 160015.97 189600.78 225950.70 171212.26 200157.63 254369.44
11 Liquid Funds 20118.88 23051.62 28682.63 35337.29 35678.87 25619.01 31164.96 39092.04
12 Cash in Hand 3072.28 3487.21 4112.99 4729.20 5590.11 3855.78 4875.47 5225.02
13 Balance with Rastra Bank 11002.43 11772.98 15621.40 19223.92 15400.61 11023.27 13203.16 18405.23
14 Foregin Currency in Hand 68.81 85.21 78.87 133.69 99.99 155.84 126.83 161.51
15 Balance Held Abroad 5975.37 7706.22 8869.38 11250.48 14588.16 10584.11 12959.49 15300.29
16 Loans and Advances 96765.42 114785.44 131333.34 154263.49 190271.82 145593.25 168992.67 215277.39
17 Claims on Governemnt 13703.16 15225.60 14215.77 14249.79 18636.91 13023.14 13002.31 16009.36
18 Claims on Governemtn Corporations 1123.26 1244.16 1138.30 1092.27 920.25 1118.94 1051.86 924.74
Fianncial 116.20 108.35 99.66 85.29 100.66 88.26 100.62 100.61
Nonfiancial 1007.06 1135.81 1038.63 1006.98 819.60 1030.68 951.24 824.13
19 Claims on Non-government Fiancial Enterprises 1059.22 1232.95 956.99 1281.19 1401.33 2024.22 1585.02 1728.76
20 Claims on Private Sector 80530.75 96843.91 114669.92 136924.91 168781.51 128899.02 152839.28 196180.41
21 Foreign Bills Purcahsed and Discounted 349.04 238.82 352.36 715.34 531.83 527.93 514.20 434.13
22 Credit Deposit Ratio (in percent)# 82.09 83.80 83.25 82.90 85.10 87.60 85.20 91.27
# Including A Class Bank, B & C class Financial Institution
* Provisional
Source Nepal Rastra Bank

43
Table 4.4 : Sources and Uses of Fund of Commercial Banks
Rs. in ten million
Mid July First Eight Months
Purpose
2004 2005 2006 2007$ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2013/14 2015/16 2016/17*
1 Total Deposits 23257.63 25046.50 28997.60 33445.30 42152.40 55067.70 62060.85 68023.01 86169.00 101557.80 119647.94 145274.88 175343.06 130100.41 157032.31 191516.06
2 Demand Deposits 3303.87 3412.00 3571.60 4269.20 5412.40 6949.00 7915.00 7820.36 9113.52 10730.98 12254.48 15044.29 17508.72 12261.14 15551.02 14164.75
3 Savings Deposits 11410.63 13001.40 15171.10 17463.40 21140.60 25987.20 33575.47 34475.18 46634.92 55373.81 69765.35 87314.98 103939.90 77250.38 97487.63 103695.81
4 Fixed Deposits 8326.82 8413.70 10006.80 11403.20 15236.40 21685.50 20066.20 25213.73 29762.57 34564.19 36554.97 41735.51 52323.07 39399.83 42511.40 71888.45
5 Margin Deposits 216.31 219.40 248.10 309.50 362.90 446.00 504.18 513.74 657.98 888.83 1073.13 1180.09 1571.37 1189.06 1482.27 1767.05
6 Borrowings from Nepal Rastra Bank 47.79 172.40 32.90 187.10 66.10 0.00 396.53 524.65 47.33 218.76 193.30 326.15 651.63 227.54 232.96 874.80
7 Foreign Liabilities 52.14 2.80 0.80 162.80 191.20 167.10 193.33 186.81 217.58 295.43 0.41 0.00 0.00 0.00 0.00 0.00
8 Net Other Sources 4504.44 5887.40 7908.90 6733.30 7515.70 9094.60 9991.92 11728.50 10959.13 13210.59 13553.46 13885.55 16325.34 13095.89 10203.11 27009.39
9 Sources = Uses 27862.00 31109.00 36940.10 40528.50 49925.30 64329.30 72642.63 80462.97 97393.04 115282.59 133395.11 159486.58 192320.03 143423.84 167468.38 219400.25
10 Liquid Funds 5038.46 5022.28 6181.73 6493.03 7901.05 12265.89 13086.32 13151.87 18618.27 21472.33 26702.46 32785.90 32827.29 23548.77 28348.46 36543.54
11 Cash in Hand 428.38 477.30 605.40 736.00 1265.20 1501.60 1686.37 1994.61 2576.22 2929.28 3394.22 3938.34 4706.06 3174.07 4058.05 4404.53
12 Balance with Nepal Rastra Bank 2486.71 2103.00 2396.20 2318.40 2489.90 4685.90 5139.33 5427.75 10013.78 10735.57 14348.14 17493.98 13471.59 9675.44 11237.02 16708.53
13 Foreign Currency in Hand 43.51 37.50 39.90 45.40 35.90 82.30 43.73 50.03 62.89 80.09 69.99 125.21 92.81 141.68 118.12 148.98
14 Balance held Abroad 2079.86 2404.50 3140.20 3393.30 4110.10 5996.10 6216.89 5679.48 5965.38 7727.39 8890.11 11228.36 14556.83 10557.56 12935.27 15281.50
15 Loans & Advances 22823.49 26086.73 30758.39 34035.49 42024.26 52063.46 59556.31 67311.10 78774.77 93810.26 106692.65 126700.68 159492.75 119875.07 139119.92 182856.71
16 Claims on Government 4379.63 4855.10 5886.20 6585.00 7210.00 7194.90 8299.58 10594.09 12898.74 14723.02 13636.71 13636.31 17696.30 12472.95 12281.19 15052.31
17 Claims on Govt. Enterprises 1469.07 1799.40 538.10 616.10 687.40 625.90 726.55 833.53 1092.48 1215.76 1104.39 1062.74 888.24 1068.81 1010.93 882.69
18 Claims on Non-Governmental Financial Inst. 0.00 171.40 187.00 300.70 595.30 1598.25 1284.85 1098.44 1000.40 914.00 1104.83 1430.46 2268.68 1467.83 1641.36
19 Claims on Private Sector 16869.28 19327.00 24036.20 26536.10 33678.10 43491.30 48857.81 54425.17 63336.08 76632.72 90685.19 110181.47 138945.92 103536.71 123845.78 164846.22
20 Claims on Private Sector% 19327.00 24036.20 28138.40 35280.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Foreign Bills Purchase & Discounted 105.51 105.30 126.40 111.30 148.00 156.10 74.13 173.46 349.04 238.37 352.36 715.34 531.83 527.93 514.20 434.13
22 Credit-to-Deposits Ratio (%)# 79.30 84.80 85.80 82.10 82.60 81.50 82.59 83.38 76.45 77.87 77.80 77.80 80.87 82.50 80.80 87.62
* Provisional,
Source: Nepal Rastra Bank.

44
Table 4.5 : Sectoral Outstanding Loan of Commercial Banks+
Rs. in ten million
Fiscal Year First Eight Months
Sector
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16 2016/17*
Agriculture ** 457.20 1388.20 1388.00 1337.63 1429.09 1419.20 23407.30 3153.10 4027.01 6515.98 7879.15 4736.74 7099.91 8545.31
Mines 47.77 131.50 195.50 170.94 201.98 220.50 2358.70 348.70 325.47 352.62 340.40 342.14 353.37 329.52
Production 5647.50 6237.00 7488.98 8787.80 9471.37 11518.60 143972.20 17666.20 20742.82 25556.56 29611.12 23891.47 27900.47 33170.46
Construction 1342.80 1977.00 3236.88 4486.70 4956.80 5159.10 61312.20 7171.30 8874.06 15287.23 18287.21 10826.68 16308.13 21568.59
Metal, Productions, Machinery & Electrical Tools
& Fittings 159.09 291.90 506.94 653.46 587.78 641.90 8401.60 1004.40 1092.94 1620.84 1947.35 1243.61 1766.09 2343.60
Transportation, Equipment Production and Fittings 265.87 324.30 434.02 697.77 1054.64 1201.40 12784.00 1266.60 1548.86 2300.25 2994.21 1363.96 2523.17 3555.13
Communication and Public Services 1169.45 1313.00 1612.90 1843.28 2227.60 1981.20 25174.70 3015.20 3141.11 6004.20 8396.68 3769.44 7192.01 10279.47
Wholesalers & Retailers 3510.33 4563.60 5573.20 6880.83 8858.41 10921.20 129249.10 16158.80 20541.50 29746.48 37434.98 24515.35 32965.04 42306.03
Finance, Insurance and Fixed Assets 1002.40 1391.80 2491.35 3888.27 5409.33 5793.40 62184.80 6608.00 7281.39 10725.28 13505.64 7965.55 12144.23 15736.63
Service Industries 1416.30 1836.70 2116.33 2335.78 2960.54 3650.50 45811.00 5685.50 6862.95 10799.39 12657.47 8278.90 11606.51 14519.63
Consumable 584.80 812.00 943.71 1471.62 2269.49 2236.00 27047.50 3348.40 3936.64 5868.79 6518.70 4128.67 6181.18 7919.35
Local Government 0.00 0.00 0.00 197.24 308.77 110.70 1271.70 117.60 109.62 171.52 165.50 146.82 162.02 156.11
Others 2054.30 2917.30 4665.60 7426.48 7197.39 7771.10 79562.80 10165.20 11616.49 21259.55 28446.86 14100.97 24317.43 33243.82
Total 17657.81 23184.30 30653.41 40177.80 46933.18 52624.60 622537.40 75709.10 90100.86 136208.68 168185.26 105310.30 150519.54 193673.66
+ Sectoral Classification as per new formats
* Provisional
** Including ADB/N since Mid July 2006
Source: Nepal Rastra Bank.

45
Table 4.6 : Sources and Uses of Fund of Development Banks ("B"- Class FIs)
Rs. Ten Million
2012 2013 2014 2015 2016 First Eight Month
S. No. Details
Mid July Mid July Mid July Mid July Mid July 2014/15 2015/16 2016/17*
1 Total Deposits 12212.80 15522.49 20032.89 23072.53 26889.54 19839.26 24246.53 26860.59
2 Current 325.09 308.37 422.83 553.94 723.83 398.31 755.80 590.54
3 Savings 6076.73 8294.56 10835.75 12064.08 14341.93 10634.08 12950.08 11866.20
4 Fixed 3717.84 4502.83 5539.51 6221.27 6822.21 5591.08 6409.05 9475.42
5 Call 2075.34 2391.38 3204.05 4199.70 4980.74 3186.29 4110.91 4902.87
6 Margin 17.79 25.34 30.75 33.54 20.83 29.50 20.69 25.57
7 Borrwoing from Nepal Rastra Bank 0.00 57.00 0.00 0.00 0.50 0.00 0.00 89.51
8 Foregin Liabilities 33.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9 Other Liabilites 3008.62 3192.94 3765.24 4154.98 4772.24 4342.53 4205.90 5653.29
10 Assets=Liabilites 15254.62 18772.43 23798.14 27227.51 31662.28 24181.79 28452.43 32603.39
11 Liquid Funds and Bank Balance 985.03 1183.04 1464.17 1868.33 2192.28 1463.41 2039.31 2082.92
12 Cash in Hand 360.85 478.71 612.57 689.41 781.97 578.45 705.90 725.99
13 Balance with Rastra Bank 599.10 677.32 822.14 1148.38 1373.89 844.31 1288.05 1332.45
14 Foregin Currency in Hand 3.71 5.09 8.84 8.45 7.17 14.14 8.71 12.53
15 Balance Held Abroad 21.38 21.93 20.61 22.09 29.26 26.52 36.65 11.95
16 Loans and Advances 14269.59 17589.38 22333.97 25359.18 29470.00 22718.38 26413.12 30520.47
17 Claims on Governemnt 450.72 290.96 274.43 308.78 556.11 263.94 348.48 568.05
18 Claims on Governemtn Corporations 28.17 24.23 27.37 19.59 18.82 32.85 20.05 23.24
Fianncial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nonfiancial 28.17 24.23 27.37 19.59 18.82 32.85 20.05 23.24
19 Claims on Non-government Fiancial 3457.63 4116.10 5051.45 5404.17 5416.73 4533.86 4914.01 4733.45
20 Claims on Private Sector 10333.07 13157.64 16980.71 19626.63 23478.33 17887.73 21130.58 25195.72
21 Foreign Bills Purcahsed and 0.00 0.45 0.00 0.00 0.00 0.00 0.00 0.00
22 Credit Deposit Ratio (in percent)# 113.20 111.44 110.12 108.60 107.53 112.67 107.50 111.51
* Provisional # Claims on Government not included
Source Nepal Rastra Bank
46
Table 4.7 : Sources and Uses of Finance Companies
Rs. Ten Million
2012 2013 2014 2015 2016 First Eight Month
S. No. Details
Mid July Mid July Mid July Mid July Mid July 2014/15 2015/16* 2016/17*
1 Total Deposits 7539.89 6816.51 7208.08 7163.62 6302.79 7339.32 7784.63 5676.68
2 Current 448.52 541.02 582.49 542.64 454.24 539.38 526.04 519.84
3 Savings 3415.89 2893.03 3118.47 3375.50 3204.69 3340.09 3898.19 2371.90
4 Fixed 3606.61 3289.62 3395.27 3155.00 2498.58 3370.15 3251.80 2612.24
5 Call 64.58 91.32 110.63 89.08 143.79 88.34 107.05 171.35
6 Margin 4.29 1.52 1.23 1.39 1.48 1.37 1.55 1.35
7 Borrwoing from Nepal Rastra Bank 0.00 0.00 0.00 0.00 18.89 0.00 3.79 4.44
8 Foregin Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9 Other Liabilites 2491.54 2591.80 2688.56 2891.02 3166.08 3170.90 3294.12 2987.82
10 Assets=Liabilites 10031.43 9408.31 9896.64 10054.64 9487.76 10510.22 11082.54 8668.94
11 Liquid Funds and Bank Balance 528.81 457.43 557.37 683.06 661.35 606.83 789.97 466.33
12 Cash in Hand 135.21 97.28 106.19 101.45 102.08 103.26 111.52 94.49
13 Balance with Rastra Bank 389.54 360.10 451.11 581.55 555.14 503.52 678.09 364.25
14 Foregin Currency in Hand 2.21 0.03 0.04 0.04 0.01 0.02 0.01 0.00
15 Balance Held Abroad 1.84 0.03 0.03 0.03 4.12 0.03 0.35 7.59
16 Loans and Advances 9502.62 8950.88 9339.27 9371.57 8826.41 9903.34 10292.58 8202.60
17 Claims on Governemnt 353.70 211.63 304.63 304.70 384.50 286.25 372.65 389.00
18 Claims on Governemtn Corporations 2.60 4.18 6.53 9.94 13.19 17.28 20.89 18.80
Fianncial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nonfiancial 2.60 4.18 6.53 9.94 13.19 17.28 20.89 18.80
19 Claims on Non-government Fiancial Enterprises 2284.71 1681.52 2024.09 1940.13 2071.46 2125.23 2036.12 1656.32
20 Claims on Private Sector 6861.61 7053.55 7004.02 7116.81 6357.25 7474.58 7862.92 6138.48
21 Foreign Bills Purcahsed and Discounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 Credit Deposit Ratio (in percent)# 121.34 128.21 125.34 126.60 133.94 131.04 127.40 137.64
* Provisional
# Claims on Government not included
Source Nepal Rastra Bank

47
Table 4.8 : Sources and Uses of Funds of Microfinance Including Rural Development Bank
Rs. in Ten Million
Fiscal Year Mid March
Description
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017*
Liabilities
Capital Funds+ 54.10 74.00 83.00 111.90 162.70 194.00 217.40 243.7 281.10 380.10 580.97 620.35 867.37 845.47 1147.80
Deposits 70.00 74.90 93.30 110.30 154.00 200.10 257.40 353.4 512.80 722.50 1119.99 1605.80 2409.53 2066.22 2992.20
Borrowing 283.30 340.30 532.50 694.40 840.10 897.30 1075.40 1303.8 1657.50 2021.40 2858.13 3849.70 5243.14 4503.40 6107.70
Other Liabilities 89.00 131.90 99.00 104.20 101.60 233.20 314.20 376.8 472.40 366.10 385.36 526.81 720.01 737.73 1034.40
Profit and Loss A/c 9.10 12.00 7.30 19.30 26.70 50.1 57.80 84.90 114.00 260.41 330.63 222.71 293.70
Assets = Liabilities 496.40 630.00 819.70 1028.10 1258.30 1543.80 1891.10 2327.8 2981.50 3575.10 5058.45 6863.07 9570.67 8375.52 11575.80
Assets
Liquid Funds 62.10 64.80 132.20 174.70 116.30 285.50 216.90 333.9 564.90 633.00 979.38 682.47 1107.32 897.06 1018.00
Investment 123.10 151.60 167.30 235.10 350.40 206.80 251.50 165.9 219.10 308.00 47.03 247.81 284.35 295.13 226.40
Loans and Advances 282.20 353.80 430.30 557.90 707.80 822.30 1111.60 1465.0 1770.00 2339.20 3642.60 5532.73 7723.29 6730.20 9769.60
Other Assets 29.00 38.90 67.90 42.80 68.10 201.30 287.10 355.2 415.90 281.70 374.92 395.45 454.62 452.62 559.10
Profit and Loss A/c 0.00 20.90 22.10 17.80 15.70 27.90 24.00 7.8 11.80 13.20 14.52 4.62 1.09 0.51 2.70

* Provisional
Source: Nepal Rastra Bank

48
Table 4.9 : Sources and Uses of Cooperatives (Licensed by NRB)
Rs. In Ten Million
Fiscal Year Mid-March
Description
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Liabilities
Capital Funds+ 20.5 27.8 32.5 35.5 40.1 44.7 58.0 64.7 80.9 117.7 140.2 166.0 276.1 182.3 312.9
Deposits 166.7 172.4 201.2 254.5 301.8 351.3 372.7 546.7 872.8 1140.3 1587.4 1859.6 2541.7 2097.9 2371.2
Borrowing 4.1 4.6 7.1 14.0 20.7 25.8 22.7 31.2 48.4 93.8 135.6 145.2 159.6 145.5 252.6
Other Liabilities 42.8 36.7 40.7 48.1 68.0 66.7 87.9 144.5 125.0 145.8 203.1 234.0 209.2 309.3 241.8
Profit and Loss A/c 0.0 -0.5 6.3 7.0 5.5 8.0 11.6 20.5 38.1 44.0 36.9 49.7 48.6 20.0 59.7
Assets = Liabilities 234.1 241.0 287.7 359.1 436.1 496.5 552.9 807.6 1165.2 1541.5 2103.0 2454.4 3235.1 2782.0 3238.1
Assets
Liquid Funds 41.3 42.4 49.3 49.0 76.0 77.6 83.5 154.2 333.3 374.3 658.7 649.9 804.3 687.0 430.3
Investment 18.2 14.2 16.2 17.8 22.3 27.6 26.0 24.7 77.5 114.7 125.9 218.2 235.8 246.9 174.2
Loans and Advances 129.8 143.1 166.5 223.0 266.2 312.7 362.4 509.2 655.8 945.8 1182.4 1434.4 2018.4 1628.0 2416.5
Other Assets 44.8 41.3 55.7 69.3 71.5 78.6 81.0 119.4 91.9 106.7 125.8 151.9 176.5 193.3 217.1
* Provisional
+ Profit and Loss adjusted
Source: Nepal Rastra Bank

49
Table 4.10 : Sources and Uses of Fund of Employees Provident Fund
Rs. Ten Million

Description Mid March


2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16* 2016/17*
Sources
Provident Funds 4814.5 5450.1 6279.4 7265.0 8670.5 10232.8 12144.0 14071.0 16354.9 18756.5 21760.6 20552.6 23744.2
Reserve Funds 294.1 319.4 371.5 452.5 317.5 315.1 297.1 347.8 420.3 462.8 465.8 392.1 560.2
Other Liabilities and Provision 124.4 153.1 182.5 194.5 51.0 110.5 134.2 151.5 193.9 225.0 243.2 238.5 341.1
Sources = Uses 5233.1 5922.6 6833.4 7911.9 9039.0 10658.4 12575.3 14570.3 16969.0 19444.3 22469.6 21183.2 24565.2
Bank and Cash Balance 163.1 138.0 186.3 312.5 207.3 237.5 473.9 389.0 738.1 801.5 417.3 638.0 421.6
Loan and Investment 4823.6 5480.0 6224.2 7238.2 8635.0 10194.4 11839.9 13900.8 15944.9 18325.3 21724.2 20233.8 23802.3
Loan to Savers 2142.1 2517.8 2978.7 3590.4 4378.7 5504.0 6663.2 7976.6 9157.6 10411.6 11814.8 11581.8 13163.5
Fixed Deposit in Banks 1851.8 2089.5 2414.4 2545.0 3091.0 2598.0 2388.0 2780.0 2666.0 3687.0 5804.2 4283.6 6523.8
Government Securities 422.9 551.0 496.5 662.1 702.8 1347.0 1495.0 1370.4 1413.0 1522.6 1546.6 1856.1 1466.6
Project Loan 367.8 278.4 334.6 0.1 362.5 633.5 1073.8 1556.4 2486.2 2482.0 2336.6 2290.2 2402.6
Shares 39.8 43.4 87.0 90.6 100.0 111.9 219.8 217.4 222.1 222.1 222.1 222.1 245.9
Fixed Assets 82.4 49.8 52.1 47.8 48.1 32.9 32.0 37.8 39.4 41.1
Other Assets 246.4 304.6 335.9 278.9 146.9 174.4 213.7 232.5 253.2 285.6 290.2 272.1 303.1
* Provisional
Source: Employees Provident Fund

50
Table 4.11 : Sources and Uses of Fund of Citizen Investment Trust
Rs. in Ten Million
Description Fiscal Year Mid March
Liabilities 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Capital Funds 135.20 190.74 229.56 212.16 181.24 260.89
Deposits 4032.50 5409.86 6723.00 8015.64 7457.56 8935.57
Borrowing 0.00 0.00 0.00 0.00 0.00 0.00
Other Liabilities 107.70 992.48 97.23 73.54 92.67 75.61
Assets = Liabilities 4275.40 6593.08 7049.79 8301.34 7731.47 9272.07
Assets
Liquid Funds 118.50 1085.10 1059.50 564.57 2379.60 998.47
Investment 2729.30 2649.13 4172.34 6287.58 4044.69 6416.41
Loans and Advances 1174.10 1825.92 1737.37 1360.83 1226.70 1768.08
Other Assets 253.40 1032.99 80.57 88.36 80.48 89.10
*Provisional
Source: Citizen Investment Trust

51
Table 5.1 : Status of Primary Market Trend
Rs. in ten million
Fiscal Year
Description
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*

1 Capital Mobilization 1094.82 1778.19 1183.11 716.94 327.71 1067.26 826.68 1443.53 1899.85 3466.52
a) Ordinary Shares 92.48 181.57 264.93 172.88 129.85 318.74 157.35 697.74 859.42 880.47
b) Rights Shares 609.34 1426.28 817.3 507.52 45.16 393.52 424.33 230.79 940.43 2301.05
c) Preferential Shares – – – — — — — - - -
d) Debentures 295 75 – 5 120 355.00 145.00 290 - -
e) Citizens' Unitary Plan 98 95.34 100.88 31.54 32.7 – — - -
f) Mutuall Fund – – – – — – 100.00 225 100 285
No of Association of Capital
2 64 64 61 47 25 34.00 46.00 48 55
Mobilizers' 55
Source: Securities Board of Nepal

52
Table 5.2 : Status of Secondary Market Trend
Rs. in ten million
Fiscal Year
Particular
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17#

Share Transaction Value 2168.11 1185.11 666.53 1027.28 2204.88 7729.85 6533.15 16395.77 13234.03

Number of Listed Securities (000') 30547.17 26231.35 26240.39 41878.90 81571.70 214143.56 159717.47 302021.00 257329.10

No. of Shares Transacted (000') 209091 213733 302364 293489 292366 566389 477278 831997 801095

Number of Transaction 51293.90 37687.13 32348.43 36826.21 51449.21 105716.00 98940.39 189013.00 153692.81

Market Capitalization Value 4.23 3.14 2.06 2.79 1.59 7.31 7.72 8.67 8.61

Market Capitalization as percent of GDP 51.90 31.60 23.66 24.11 30.35 53.81 46.45 84.10 59.13

Paid-up Capital Value of Listed Shares 6114 7936 10024 11061 12649 14236 15758 20402 25159

Number of Listed Companies 159 176 209 216 230 233 232 229 212
No. of Companies under Transaction
170 198 222 230 230 269 271 274 244
(Script Tranded)
NEPSE Index (In point) * 749.10 477.73 362.85 389.74 518.33 1036.11 961.23 1718.15 1355.23
* Base Year 1993, Point 100
Source: Securities Board of Nepal, Nepal Stock Exchange and Central Bureau of Statistics
#First Eight Month

53
Table 6.1 : Direction of Foreign Trade
Rs. in ten million
Fiscal Year First Eight Months
Description
2004/05# 2005/06# 2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Export F.O.B. 5870.6 6023.4 5938.3 5926.7 6769.8 6082.4 6433.9 7426.1 7691.7 9199.1 8531.9 7011.7 4273.1 4821.8
India 3891.7 4071.5 4172.9 3855.6 4100.6 3999.4 4336.0 4961.6 5100.0 5961.4 5586.5 3949.4 2391.0 2780.4
China - - - - - 0.0 0.0 0.0 208.6 284.1 223.0 168.2 101.5 115.1
Other countries 1978.9 1951.9 1765.4 2071.1 2669.2 2083.0 2097.8 2464.5 2383.2 2953.7 2722.5 2894.2 1780.6 1926.3
Import C.I.F. 14947.4 17378.0 19469.5 22193.8 28447.0 37433.5 39617.6 46166.8 55674.0 71436.6 77468.4 77359.9 43580.1 62856.1
India 8867.6 10714.3 11587.2 14237.7 16243.8 21711.4 26192.5 29939.0 36703.1 47794.7 49165.6 47721.3 25821.8 41060.5
China - - - - - - - - 6245.1 7331.9 10016.6 11569.4 7030.0 8258.1
Other countries 6079.8 6663.7 7882.2 7956.1 12203.2 15722.1 13425.0 16227.8 12725.8 16310.0 18286.2 18069.2 10728.4 13537.4
Trade Balance -9076.8 -11354.6 -13531.2 -16267.1 -21677.2 -31351.1 -33183.7 -38740.7 -47982.3 -62237.5 -68936.5 -70348.2 -39307.0 -58034.3
India -4975.9 -6642.8 -7414.4 -10382.1 -12143.2 -17712.1 -21856.5 -24977.3 -31603.1 -41833.3 -43579.1 -43771.9 -23430.7 -38280.1
China - - - - - - - - -6036.6 -7047.8 -9793.7 -11401.3 -6928.5 -8143.0
Other countries -4100.9 -4711.8 -6116.8 -5885.0 -9534.0 -13639.1 -11327.2 -13763.3 -10342.6 -13356.3 -15563.7 -15175.0 -8947.8 -11611.2
Total volume of Trade 20817.9 23401.4 25407.8 28120.4 35216.7 43515.9 46051.4 53592.9 63365.8 80635.7 86000.3 84371.6 47853.2 67677.8
India 12759.2 14785.8 15760.1 18093.2 20344.4 25710.8 30528.6 34900.6 41803.1 53756.1 54752.1 51670.6 28212.8 43840.9
China - - - - - - - - 6453.7 7615.9 10239.6 11737.6 7131.4 8373.2
Other countries 8058.7 8615.7 9647.7 10027.2 14872.4 17805.1 15522.8 18692.3 15108.9 19263.7 21008.7 20963.4 12508.9 15463.7
Share in Total Trade % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
India 61.3 63.2 62.0 64.3 57.8 59.1 66.3 65.1 66.0 66.7 63.7 61.2 59.0 64.8
China - - - - - - - - 10.2 9.4 11.9 13.9 14.9 12.4
Other countries 38.7 36.8 38.0 35.7 42.2 40.9 33.7 34.9 23.8 23.9 24.4 24.8 26.1 22.8
* Privisional
# China's data is included in other countries' data
Source : Nepal Rastra Bank

54
Table 6.2 : Commodity Trade by SITC Group
Rs. in ten million
Fiscal Year First Eight Months
SITC Group
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Export 5870.6 6023.4 5938.3 5926.7 6769.8 6082.4 6433.9 7426.1 7691.7 9199.1 8531.9 7011.7 4273.1 4821.8
Food & live Animals 699.4 719.2 705.6 1316.5 1914.5 1315.5 1453.2 1593.0 1808.9 2166.7 2020.9 1642.1 938.1 1208.2
Tobacco & Beverage 3.2 2.5 2.3 2.4 35.4 1.8 0.2 10.2 21.4 199.1 234.7 47.8 34.8 17.0
Crude Materials & Inedibles 88.2 122.3 136.8 135.1 197.3 247.0 192.3 258.7 327.9 499.2 327.4 221.8 108.8 177.1
Mineral Fuels & Lubricants 0.4 0.3 0.0 0.0 4.2 0.0 0.0 0.0 0.8 0.6 0.0 0.1 0.1 0.0
Animals & Vegetable Oil & Fats 507.0 428.5 445.5 206.2 36.3 26.7 40.9 33.2 15.6 24.3 11.1 10.7 2.1 15.3
Chemicals & Drugs 367.8 368.7 409.2 282.4 308.7 167.7 268.0 273.7 385.2 469.1 487.3 461.8 247.1 287.0
Classified by Materials 2859.1 2853.3 3041.2 2964.3 2824.2 3339.5 3349.7 3900.9 3985.8 4377.3 4107.8 3266.6 2036.6 2269.8
Machinery & Transport Equipment 20.8 120.2 124.1 91.3 62.5 72.5 38.0 27.8 51.9 68.1 38.6 40.0 34.6 13.9
Miscellaneous Manufactured Articles 1324.0 1408.2 1073.7 928.2 1386.0 911.7 1091.1 1328.4 1093.8 1394.3 1304.1 1320.5 870.7 833.3
Not Classified 0.9 0.3 0.0 0.3 0.6 0.0 0.6 0.3 0.3 0.4 0.0 0.3 0.2 0.0
Import 14947.4 17378.0 19469.5 22193.8 28447.0 37433.5 39617.6 46166.8 55674.0 71436.6 77468.4 77359.9 43580.1 62856.1
Food & live Animals 982.1 1329.9 1289.6 1583.8 2047.1 2376.6 2926.3 4078.3 6111.9 8965.4 9962.0 10975.6 6579.3 8698.0
Tobacco & Beverage 101.6 116.2 95.8 123.8 141.3 285.5 216.7 308.2 444.9 483.0 504.1 641.3 348.8 449.6
Crude Materials & Inedibles 1120.7 1056.2 882.9 836.5 1254.3 1988.9 1948.0 1777.3 2136.5 3181.0 3233.2 3339.2 1892.0 2256.5
Mineral Fuels & Lubricants 2992.7 3644.7 3636.2 4396.9 4529.4 5678.1 8123.5 10277.1 11947.1 14782.7 12695.1 8408.8 4015.9 8482.4
Animals & Vegetable Oil & Fats 601.6 1019.7 1213.8 939.9 900.4 932.1 1473.4 1791.8 1755.2 2233.7 2250.4 2115.3 1188.7 1747.5
Chemical & Drugs 1918.0 2475.0 2699.6 2686.3 3158.0 3967.0 4527.2 4901.7 6424.3 8418.1 9155.5 10396.2 6228.1 6297.3
Classified by Materials 3704.7 4060.1 4814.5 5744.8 7607.0 11613.0 9133.8 11478.2 10956.6 14003.8 17576.2 16313.2 9214.2 13301.7
Machinery & Transport Equipment 2626.2 2619.5 3635.7 4800.6 6801.0 8451.7 8533.2 8241.4 10020.3 12490.1 17237.8 18976.4 9865.5 16507.9
Miscellaneous Manufactured Articles 755.2 1041.8 1175.5 1072.6 1997.7 2136.7 2723.5 3297.2 3265.9 4399.4 4215.1 4586.4 2833.8 3487.9
Not Classified 144.6 15.1 25.8 8.4 10.8 4.1 12.0 15.5 2611.4 2479.4 639.0 1607.4 1413.8 1627.2
* Provisional
Source: Nepal Rastra Bank

55
Table 6.3 (A): Exports of Major Commodities to India
Rs. in ten million
Fiscal Year First Eight Months
Description
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Rice (Husked) 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Maize 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mustard & Linseeds 4.4 4.8 2.3 3.5 2.2 1.1 2.6 0.6 0.3 1.7 4.7 6.4 2.5 2.8
Herbs 13.2 13.4 10.6 14.9 20.7 23.9 17.2 9.0 31.3 24.5 50.0 37.3 20.0 35.0
Ghee 8.3 10.3 11.1 10.2 10.6 12.7 32.2 37.1 13.6 15.6 15.5 13.8 8.8 9.5
Dried Ginger 8.0 6.2 5.0 5.4 6.8 9.1 0.3 0.2 1.2 0.4 0.0 0.9 0.7 0.7
Pulses 66.7 64.3 30.7 31.5 38.2 2.8 0.9 20.3 0.1 0.4 12.7 27.9 0.0 0.0
Live Animals 5.6 5.8 2.2 5.2 2.4 3.7 6.6 24.9 41.0 23.4 20.5 10.5 10.5 8.2
Flour 0.0 0.0 0.0 0.4 8.2 4.1 1.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0
Ginger 16.1 27.5 54.1 54.3 33.5 35.4 30.2 38.7 131.2 46.9 46.1 52.2 29.6 15.5
Oil Cake 31.7 29.2 31.8 40.5 53.3 49.8 51.0 64.3 63.8 70.6 61.3 100.1 55.0 88.4
Catechu 43.9 38.2 54.3 54.4 121.7 168.2 111.4 100.3 0.0 0.0 0.0 0.0 0.0 0.0
Rice Bran Oil 19.9 11.3 17.8 19.7 14.3 11.2 7.7 19.1 13.4 19.5 7.2 6.3 0.7 2.4
Raw Jute 0.0 0.1 0.2 3.1 14.6 6.5 0.0 0.0 4.4 4.4 0.2 1.2 0.3 4.0
Jute Cutting 0.1 4.8 0.0 1.1 5.7 62.1 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0
Jute Goods 269.4 263.7 275.7 258.3 128.3 289.7 399.8 406.5 410.8 430.2 427.3 424.6 263.4 282.0
a) Hessian 18.6 46.5 37.5 52.9 20.7 36.4 89.4 109.5 0.0 0.6 1.1 8.6 4.2 6.9
b) Sacking 145.6 126.5 140.9 122.0 45.9 201.7 186.6 210.2 367.3 357.9 374.6 378.7 234.3 232.0
c) Twines 105.1 90.7 97.3 83.4 61.7 51.6 123.8 86.8 43.5 71.8 51.6 37.3 24.8 43.1
Cardamom 60.7 60.8 84.8 103.5 121.6 131.6 191.5 327.6 385.0 426.7 384.0 463.3 308.2 261.6
Noodles 36.9 41.5 23.7 52.3 80.3 57.6 51.8 45.8 35.7 52.2 62.1 45.6 21.0 42.9
Cattlefeed 54.7 45.5 8.1 17.7 35.1 14.4 6.4 8.3 2.7 26.7 61.7 38.3 21.0 40.5
Tooth Paste 128.3 73.1 66.3 47.6 81.3 67.3 97.3 109.9 93.6 113.3 98.5 101.3 52.7 36.1
Polyster Yarn 189.6 347.6 224.1 261.8 250.0 339.8 264.1 365.7 474.2 515.3 501.8 325.3 213.1 177.1
Medicine (Ayurvedic) 19.8 30.1 15.6 13.2 16.3 13.9 57.6 84.8 67.1 89.5 90.7 73.1 53.0 44.2
Soap 36.8 36.4 50.3 42.4 59.1 40.4 37.2 24.4 6.2 2.6 2.2 1.0 0.4 0.1
Veg. Ghee 463.6 386.2 413.7 213.2 0.9 0.5 1.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pashmina 34.2 21.1 4.8 4.4 6.6 6.1 4.7 4.2 5.5 6.8 5.0 7.2 4.8 6.2
Thread 221.4 189.8 405.6 413.5 252.5 277.2 335.1 262.8 10.5 18.0 18.0 5.0 4.8 0.4
Copper wire Rod 53.0 30.6 20.6 61.7 57.2 64.4 30.3 121.3 118.4 142.7 126.1 89.2 53.7 54.8
M.S. Pipe 31.7 10.6 76.2 98.0 57.1 69.5 94.3 79.8 0.0 21.3 17.4 5.2 3.5 3.9
Plastic Utensils 136.2 80.8 41.5 30.3 51.3 18.2 61.0 72.1 98.6 35.8 34.4 21.2 12.9 13.1
Zinc Sheet 307.0 240.9 358.0 441.7 282.2 179.5 389.5 334.3 494.8 617.7 438.8 193.6 156.1 175.1
G.I. Pipe 42.4 51.9 12.8 24.3 109.8 56.8 80.7 159.3 356.3 303.1 299.4 93.9 53.8 74.6
Textiles 299.7 215.5 305.7 211.5 319.4 336.2 373.4 513.0 561.8 577.9 512.9 343.9 211.9 214.5
Juice 109.1 114.0 159.1 183.6 195.2 175.0 236.3 302.7 380.2 443.2 477.3 324.8 143.5 338.9
Chemical 140.8 105.8 95.0 27.6 29.0 15.2 14.8 0.9 0.0 0.0 16.6 6.7 5.1 8.3
Total 2854.6 2565.7 2862.3 2751.3 2470.5 2546.6 3020.9 3537.9 3801.6 4460.8 4219.7 3246.3 1974.3 2222.8
Others 1037.1 1505.8 1310.6 1104.3 1630.0 1452.8 1315.1 1423.7 1298.4 1500.6 1366.8 703.1 416.8 557.6
Grand Total 3891.7 4071.5 4172.9 3855.6 4100.6 3999.4 4336.0 4961.6 5100.0 5961.4 5586.5 3949.4 2391.0 2780.4
* Provisional
Source: Nepal Rastra Bank

56
Table 6.3 (B): Exports of Major Commodities to China

Rs. in ten million


Fiscal Year First Eight Months
Description
2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Agarbatti 3.10 4.34 1.40 0.56 0.02 0.78
Aluminium, Copper and Brass Utensils 12.83 0.00 0.00 0.00 0.00 0.00
Handicraft (Metal and Woolen) 13.11 26.09 20.20 42.93 24.09 26.28
Herbs 0.00 0.00 0.00 0.00 0.00 0.00
Human Hair 0.06 1.08 1.72 1.33 1.33 0.00
Musical Instruments, Parts and Accessories 0.04 0.00 0.01 0.00 0.00 0.00
Nepalese Paper & Paper Products 0.01 0.00 0.00 0.00 0.00 0.00
Noodles 5.54 4.91 4.73 1.29 0.47 1.17
Other handicraft goods 2.68 2.01 5.74 5.20 3.37 3.60
Pashmina 2.98 3.98 2.81 5.03 2.93 2.17
Readymade Garments 8.88 2.81 4.39 1.70 0.55 3.83
Readymade Leather Goods 0.08 0.21 0.04 0.02 0.00 0.09
Rudrakshya 0.96 0.00 1.01 0.00 0.00 0.00
Silverware and Jewelleries 0.07 0.71 0.43 0.10 0.00 0.21
Tanned Skin 40.75 24.79 30.69 17.14 11.35 12.24
Tea 0.51 0.83 1.34 1.19 1.09 0.56
Vegetables 0.17 0.00 0.00 0.00 0.00 0.00
Wheat Flour 10.74 11.01 2.23 0.57 0.48 0.50
Woolen Carpet 8.52 11.97 14.93 23.21 14.56 13.93
B. Other 97.53 189.32 131.31 67.89 41.20 49.71
Total (A+B) 208.58 284.07 222.99 168.15 101.46 115.08
* Provisional
Source: Nepal Rastra Bank

57
Table 6.3 (C) : Export of Major Commodities to Other Countries
Rs. In ten million
Fiscal Year First Eight Months
Description
2004/05# 2005/06# 2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Pulses 10.7 19.2 48.9 145.8 624.7 395.2 335.8 249.7 267.1 204.4 113.2 88.3 49.1 56.4
Cardamon (Large) 20.5 10.9 13.0 6.5 6.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Medicinal Herbs 5.5 1.9 4.4 9.8 41.2 23.9 12.6 19.8 0.9 19.7 6.1 22.0 11.6 9.9
Catechu 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Wollen Goods 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Nepalese Paper & Paper Products 24.0 25.7 19.1 34.7 36.1 55.3 39.9 58.7 24.3 28.9 21.8 32.4 19.0 23.5
Hides & Skins 23.6 31.0 27.9 24.9 5.8 30.7 43.4 72.4 49.1 75.2 64.7 42.4 25.6 23.2
Carpets (Hand Knotted Wollen) 586.9 583.9 560.0 504.8 573.6 407.9 486.0 693.8 598.8 728.0 676.0 784.8 503.8 478.7
Readymade Garments 612.5 620.4 521.3 475.6 490.5 389.1 306.3 400.6 307.8 422.3 396.0 448.2 288.8 254.9
Handicrafts 64.4 43.1 25.0 19.4 107.8 108.3 45.8 51.0 8.1 11.0 8.5 9.7 6.3 9.8
Ornaments 36.3 28.2 32.5 26.9 26.2 12.7 9.1 11.0 7.5 27.0 10.3 21.5 11.8 17.5
Pasmina 105.0 157.8 93.1 64.3 152.7 126.8 227.3 323.0 162.5 272.4 211.8 263.6 180.7 165.0
Total 1489.3 1522.1 1345.1 1312.8 2065.0 1549.8 1506.1 1880.0 1426.2 1789.0 1508.1 1712.9 1096.6 1038.9
Others 489.6 429.8 420.3 758.3 604.2 533.2 591.7 584.5 957.0 1164.7 1214.3 1181.3 683.9 887.3
Grand Total 1978.9 1951.9 1765.4 2071.1 2669.2 2083.0 2097.8 2464.5 2383.2 2953.7 2722.5 2894.2 1780.6 1926.3
* Privisional
# China's data is included in other countries' data before 2011/12
Source : Nepal Rastra Bank

58
Table 6.4 (A) : Import of Selected Commodities from India
Rs. in ten million
Fiscal Year First Eight Months
Particulars
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Electrical Goods 236.5 358.7 394.3 609.0 722.4 701.0 657.4 766.6 1072.0 1221.4 544.9 869.5
Threads 315.9 305.6 259.7 302.3 285.5 413.3 388.8 959.4 721.0 665.5 429.2 393.8
Tobacco 64.6 73.2 106.2 181.7 184.7 191.7 206.8 213.4 203.8 276.6 185.2 179.6
Transport Equipments 979.9 1187.5 1615.9 2377.7 2068.1 1705.1 2629.8 3298.3 4412.6 6294.0 2859.8 5572.2
Medicine 444.3 543.4 655.8 796.3 980.8 1038.3 1333.7 1529.6 1784.7 1916.4 1171.9 1412.7
Chemical Fertilizer 62.4 31.6 13.0 295.1 307.3 450.7 848.6 803.5 595.5 159.9 142.4 18.7
Cloths (cotton and others) 175.4 166.4 246.2 244.1 196.6 241.1 290.0 381.0 381.7 416.7 275.2 282.1
Vegetable 103.6 145.7 129.1 207.9 209.7 259.0 454.9 696.9 798.9 772.6 503.5 788.8
Cement 252.0 233.7 422.7 441.5 437.3 330.0 942.5 971.8 1012.5 1168.9 535.1 1161.6
Paper 80.7 72.9 113.9 139.0 207.4 227.8 367.8 481.8 514.0 554.2 303.7 372.5
Horlicks & other milk products 107.3 44.5 86.0 70.9 99.9 97.9 360.0 483.3 466.0 468.6 267.5 371.8
Chemical liquids 259.1 272.0 278.5 313.3 312.4 407.3 255.9 302.3 309.5 333.9 189.7 235.4
Agricultural tools & spair parts 107.3 148.4 249.1 337.3 316.2 414.6 738.0 858.3 940.7 949.4 497.8 1109.2
M.S. Ware Rod 141.9 259.5 248.7 610.8 500.4 676.1 409.0 648.0 539.2 788.9 537.6 641.9
M.S. billet 438.4 814.5 645.7 1372.1 1833.7 1943.7 2230.4 2467.5 2633.6 2265.7 1160.0 3138.4
Steel Plate 0.3 0.0 0.0 0.0 0.0 0.9 2.0 4.5 5.3 31.7 5.4 20.1
Aluminum Ingut 42.5 65.5 52.0 108.7 118.2 129.0 161.6 196.0 319.8 317.4 167.8 212.4
Hot Rollsheet (in quail) 205.3 357.6 282.4 411.1 545.9 554.3 568.9 1168.2 1325.9 1342.1 785.0 962.6
Clod Rollsheet (in quail) 208.0 400.6 703.9 680.3 823.6 746.8 269.2 652.5 715.3 696.5 498.7 314.1
Other mechinery spairparts 355.6 468.2 726.4 841.7 979.3 834.2 1201.4 1596.7 1889.3 1932.3 999.5 1657.3
Petroleum Products 3356.8 4081.6 4135.7 5161.0 7508.1 9225.6 10713.9 13173.7 11005.8 6560.8 3084.1 7239.2
Other 3649.7 4206.5 4878.8 6269.9 7555.1 9350.9 11672.7 16141.6 17518.6 47721.3 10677.5 14106.5
Total 11587.2 14237.7 16243.8 21771.4 26192.5 29939.0 36703.1 47794.7 49165.6 47721.3 25821.8 41060.5
* Provisional
Source: Nepal Rastra Bank

59
Table 6.4 (B) : Import of Selected Commodities from China
Rs. in ten million
Fiscal Year First Eight Months
Description
2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
Aluminium Scrap, Flake, Foil, Bars, & Rods 78.16 107.63 143.77 170.50 111.20 92.84
Chemical 94.57 100.83 118.73 136.73 71.78 68.68
Chemical Fertilizer 234.57 470.00 762.00 1611.96 1074.43 511.40
Electrical Goods 544.44 654.80 909.13 896.05 477.28 644.97
Medical Equipment & Tools 57.59 79.53 159.84 128.18 87.61 61.16
Medicine 46.69 41.07 47.55 56.21 25.48 32.85
Metal & Wooden furniture 51.28 65.08 70.36 83.49 52.58 81.19
Office Equipment & Stationary 56.66 64.41 75.07 64.81 32.43 54.63
Other Machinery and Parts 470.57 504.03 832.34 791.77 412.00 641.28
Pipe and Pipe Fittings 268.94 15.36 49.26 27.01 10.85 44.86
Plywood & Particle board 20.35 24.90 35.50 29.55 18.16 25.10
Polyethylene Terephthalate (Plastic pet chips/Pet Resin) 1.76 13.48 5.03 0.00 0.00 0.00
Raw Silk 42.08 148.57 153.79 133.75 101.68 41.65
Raw Wool 44.03 54.40 51.76 75.08 48.67 47.01
Readymade Garments 478.08 608.82 408.04 561.79 397.74 343.70
Seasoning Powder & Flavour for Instant Noodles 3.34 5.76 5.09 4.93 2.52 3.97
Shoes and Sandles 194.19 222.03 168.57 240.93 174.24 146.33
Smart Cards 17.14 24.49 22.52 20.18 4.19 8.68
Solar Pannel 32.38 82.55 70.91 82.00 34.10 77.41
Steel Rod & Sheet 3.58 3.48 54.83 17.33 2.72 58.35
Storage Battery 52.83 56.56 104.70 45.85 28.39 54.36
Telecommunication Equipments and Parts 1189.62 1120.48 1539.74 1798.98 1126.15 1602.32
Threads - Polyster 10.24 28.25 34.89 31.38 17.55 22.29
Toys 36.61 43.77 51.07 61.72 37.75 52.32
Transport Equipment & Parts 79.58 119.35 132.24 158.34 86.16 180.29
Tyre, Tubes and Flapes 29.25 16.69 19.80 13.60 8.28 9.68
Video Television & Parts 254.36 326.96 444.06 368.46 264.42 394.79
B. Other Commodities 1852.25 1933.50 3062.69 3415.93 2006.44 2570.74
Grand Total 6245.12 7331.86 10016.64 11569.43 7029.98 8258.13

60
Table 6.4(C) : Import of Selected Commodities from Other Countries
Rs. in ten million
First Year First Eight Months
Particulars
2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13# 2013/14# 2014/15# 2015/16# 2015/16# 2016/17*#
Gold 352.0 375.1 1657.5 4163.6 1135.8 2577.0 2611.4 2479.4 639.0 1607.4 1413.8 1627.2
Silver 0.1 44.7 117.5 325.1 372.6 437.1 878.3 1271.1 2469.9 724.3 511.5 611.3
Petroleum products 57.2 52.3 95.6 169.4 166.0 168.2 225.3 182.8 203.5 311.6 118.4 173.4
Other Machinery & Parts 200.7 390.2 597.2 765.6 640.9 719.8 371.9 572.9 595.6 667.0 354.6 404.6
Electrical goods 296.6 394.5 824.2 683.8 650.6 731.2 124.7 155.6 191.3 177.1 118.6 95.9
Threads 125.7 139.6 217.3 273.5 194.3 188.7 149.5 260.9 264.1 294.1 145.0 113.2
Raw Wool 163.1 139.5 35.6 87.3 91.3 65.7 61.0 100.4 94.1 90.9 50.1 54.8
Transportation equipments 270.5 439.2 550.2 423.6 421.5 285.9 286.9 496.7 477.2 587.7 271.4 529.7
Medicine 153.7 126.3 311.7 335.8 213.5 197.6 218.5 281.2 531.3 903.0 726.2 176.5
Chemical Fertilizer 61.7 2.0 8.0 70.4 236.8 229.1 249.3 138.3 95.7 168.7 0.0 194.1
Paper 79.3 104.0 102.0 142.7 178.9 175.8 133.8 172.6 187.7 185.5 114.1 172.8
Computer parts 270.1 227.0 377.0 534.1 617.8 615.0 129.1 134.4 136.0 134.6 80.5 126.4
Aeroplane spare parts 146.3 105.0 202.0 221.8 247.2 140.6 206.3 217.9 1698.4 767.9 677.8 917.9
Telecommunication accessories 95.4 497.9 406.4 852.2 949.3 845.9 250.0 338.4 385.6 548.8 258.3 402.5
Cloths (cotton & others) 245.6 196.7 292.7 191.1 260.9 127.5 63.8 90.2 86.9 71.0 38.2 40.1
Polithene granules 296.0 371.9 361.7 578.8 470.1 578.7 450.2 779.1 658.0 912.2 506.0 529.7
Crude Palm Oil 712.2 574.7 294.9 202.6 609.7 31.3 339.1 413.4 510.4 311.9 174.6 281.7
Crude Soyabean Oil 192.4 160.0 365.9 433.8 650.8 996.2 1062.8 1477.8 1284.4 1272.0 799.0 829.7
Copper Wire Rod,Scrape & Sheets 187.9 194.1 181.4 177.6 131.3 187.5 116.8 299.3 253.1 171.8 108.6 105.7
Raw Silk 2.5 0.6 4.1 3.2 0.0 0.0 1.2 0.7 1.7 0.2 0.2 0.0
Others 3973.3 3421.1 5200.4 5086.3 5185.8 6928.9 12725.8 16310.0 18286.2 18069.2 10728.4 13537.4
Total 7882.2 7956.1 12203.2 15722.1 13425.0 16227.8 12725.8 16310.0 18286.2 18069.2 10728.4 13537.4
* Provisional
# China's data is included in other countries' data before 2011/12
Source: Nepal Rastra Bank

61
Table 6.5: Income and Expenditure of Convertible Foreign Exchange
Rs. in ten million
Fiscal Year First Eight Months
Description
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*

Income 23692.7 32439.2 34637.1 38030.1 53691.0 62965.6 77075.1 87212.4 92686.4 59786.6 60627.1

- Services 16679.3 23445.5 24880.1 25594.3 36842.2 43272.1 54323.5 62589.8 64416.0 41345.8 44179.9

Gorkha+ 13942.2 19421.6 21399.9 22590.9 33336.7 39434.9 49030.3 54005.3 59458.8 38259.6 40293.4

Tourist's Expenditure 2034.0 3459.0 2938.6 2540.9 3180.1 3420.5 4611.5 7729.9 4111.5 2625.9 3168.2

Intrest on Investment Abroad 703.2 564.9 541.6 462.5 325.4 416.7 681.8 854.6 845.6 460.2 718.4

- Merchandise Export 2866.3 4049.7 4439.6 3985.3 5298.3 6432.5 7482.2 7354.5 5768.4 3548.4 3954.9

- Diplomatic Mission 1072.6 1318.8 539.1 548.1 936.9 1839.0 2634.8 3248.1 3997.8 2548.8 1662.5

- Foreign Aid 2364.2 2819.8 3298.4 2966.5 4100.7 3566.7 4053.3 2485.4 7083.9 5030.6 3143.8

- Miscellaneous 710.2 805.4 1479.9 4935.9 6512.8 7855.3 8581.3 11534.5 11420.2 7312.9 7686.1

Expenditures 23340.3 28630.5 35142.0 17491.7 19399.4 24196.7 29595.4 31541.6 37565.2 23953.6 30454.3

- Services 2528.7 3236.8 4099.2 3793.2 3265.7 4526.2 5951.2 6750.8 8049.6 5065.1 7213.0

Amortization 911.7 1124.9 1209.8 1547.2 1631.7 1936.9 2068.9 2123.3 2383.1 1365.2 2791.8

Others 1617.0 2111.9 2889.4 2246.0 1634.0 2589.3 3882.3 4627.5 5666.5 3699.9 4421.2

- Merchandise Import 9372.7 13293.1 14125.9 13275.0 15675.0 19031.2 22724.5 24060.2 28424.5 18192.7 22704.2

- Diplomatic Missions 60.1 96.5 183.4 168.8 165.0 85.4 158.9 188.8 211.0 129.9 49.6

- Miscellaneous 11378.7 12004.1 16733.6 254.6 293.7 553.9 760.8 541.8 880.1 566.0 487.4

Surplus or Deficit (-) 352.4 3808.7 -504.9 20538.4 34291.6 38768.9 47479.7 55670.8 55121.2 35832.9 26163.3
* Provisional
+ Before FY 1994/95 Remittances mostly used to be Gorkha Remittances
Source: Nepal Rastra Bank
Note: Revised data included since F.Y. 2010/11
62
Table 6.6 : Gross Foreign Assests of Banking System
Rs. in ten million
Nepal Rastra Bank Commercial Banks
Year/Mid- Total IMF Gold Special Foreign Con- Incon- Foreign Conver- Inconver- Total
Month (2+3+4+5) Gold Tranche Drawing Exchange vertible vertible Exchange tible tible (1+8)
Rights (6+7) (9+10)
1 2 3 4 5 6 7 8 9 10 11
2003 July 8804.30 48.22 59.27 0.20 8696.61 7675.20 1021.41 2126.33 2024.92 101.41 10930.63
2004 July 10907.68 47.83 62.76 5.50 10791.59 9623.59 1168.00 2228.92 2073.48 155.44 13136.60
2005 July 10544.42 38.34 0.00 63.71 10442.37 10082.36 360.01 2547.27 2315.49 231.78 13091.69
2006 July 13313.00 40.50 0.00 66.37 13206.13 12424.09 782.04 3306.54 3179.07 127.47 16619.54
2007 July 13021.39 0.00 0.00 58.75 12962.64 12375.53 587.11 3549.96 3168.10 381.86 16571.35
2008 July 17031.42 0.00 0.00 63.06 16968.36 14284.88 2683.48 4293.99 3882.71 411.28 21325.41
2009 July 22784.97 310.41 0.00 55.53 22419.03 20175.60 2243.43 6007.04 5647.55 359.49 28792.01
2010 July 21500.61 331.95 0.00 631.53 20537.13 16599.27 3937.86 6351.74 5820.38 531.36 27852.35
2011 July 22505.21 522.64 0.00 673.06 21309.51 16525.75 4783.76 5905.80 5550.33 355.47 28411.01
2012 July 39204.47 915.20 0.00 736.82 37552.45 28568.20 8984.25 6393.22 5714.40 678.82 45597.69
2013 July 47379.11 1420.17 0.00 659.49 45299.45 33994.00 11305.45 8030.25 7407.99 622.26 55409.36
2014 July 59375.30 1588.28 0.00 546.93 57240.09 42613.29 14626.80 9300.61 8737.23 563.38 68675.91
2015 July 72668.39 1952.71 0.00 409.59 70306.09 51745.67 18560.43 12099.51 11484.34 615.17 84767.90
2016 July 91763.09 2820.62 238.41 2.98 88701.08 67245.82 21455.26 15219.98 14400.56 819.42 106983.07
2017 March* 94405.22 2643.14 230.16 0.58 91531.34 68518.98 23012.36 15895.93 15159.72 736.21 110301.15

* Provisional
Source : Nepal Rastra Bank
63
Table 6.7 : Balance of Payments Summary
Rs in ten million
Fiscal Year First Eight Months
Particulars
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
A. Current Account 2367.96 4143.73 -2813.52 -1293.64 7597.92 5706.07 8972.15 10831.98 14041.86 13855.11 -630.69
Goods : Exports F.O.B. 6197.11 6990.68 6317.75 6870.15 8151.18 8598.98 10096.06 9827.63 7486.61 4485.88 5416.64
Oil 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other 6197.11 6990.68 6317.75 6870.15 8151.18 8598.98 10096.06 9827.63 7486.61 4485.88 5416.64
Goods : Imports F.O.B. -21796.28 -27922.78 -36669.25 -38837.14 -45465.31 -54729.43 -69637.33 -76177.30 -75648.79 -42753.79 -62035.17
Oil -4081.57 -4135.67 -5160.72 -7507.62 -9225.56 -10713.89 -13297.64 -11204.46 -6872.44 -3202.56 -7412.57
Other -17714.71 -23787.11 -31508.53 -31329.52 -36239.75 -44015.54 -56339.69 -64972.84 -68776.35 -39551.23 -54622.60
Balance on Goods -15599.17 -20932.10 -30351.50 -31966.99 -37314.13 -46130.45 -59541.27 -66349.67 -68162.18 -38267.92 -56618.54
Services Net -1109.20 -1047.80 -1638.53 -867.46 1405.70 758.58 2088.22 2761.75 984.93 419.22 372.90
Services : Credit 4223.61 5283.01 5112.05 5301.25 7235.15 9519.08 12506.12 14928.84 13847.25 8606.41 10145.72
Travel 1865.31 2795.98 2813.86 2461.07 3070.38 3421.06 4637.49 5342.86 4176.54 2609.30 3619.88
Government N.I.E. 1330.18 1273.44 663.56 553.46 1007.14 1838.97 2435.28 3248.11 3833.08 2384.09 1598.60
Other 1028.12 1213.59 1634.63 2286.72 3157.63 4259.05 5433.35 6337.87 5837.63 3613.02 4927.24
Services : Debit -5332.81 -6330.81 -6750.58 -6168.71 -5829.45 -8760.50 -10417.90 -12167.09 -12862.32 -8187.19 -9772.83
Transportation -2267.59 -2211.62 -2296.46 -1860.47 -2229.23 -3327.67 -3982.20 -4399.63 -4403.03 -2794.13 -2867.83
Government N.I.E. -2086.20 -3139.63 -3228.82 -2764.29 -2576.97 -3961.19 -4217.56 -5319.02 -5641.84 -3539.12 -5064.02
Other -979.02 -979.56 -1037.85 -1428.49 -866.61 -1353.85 -2055.57 -2250.96 -2607.42 -1725.09 -1788.05
Balance on Goods and Services -16708.37 -21979.90 -31990.03 -32834.45 -35908.43 -45371.87 -57453.05 -63587.92 -67177.25 -37848.70 -56245.64
Income Net 794.68 1174.95 911.74 754.94 1229.14 1307.88 3275.17 3424.25 3400.43 1643.43 1342.86
Income : Credit 1344.77 1650.66 1491.79 1750.40 2252.13 2332.01 3953.98 4283.15 4308.53 2310.24 3194.50
Income : Debit -550.09 -475.71 -580.05 -995.46 -1022.99 -1024.13 -678.81 -858.90 -908.09 -666.81 -1851.64
Balance on Goods, Services and Income -15913.69 -20804.95 -31078.29 -32079.51 -34679.29 -44063.99 -54177.88 -60163.67 -63776.82 -36205.27 -54902.78
Current Transfer Net 18281.65 24948.68 28264.77 30785.87 42277.21 49770.06 63150.03 70995.65 77818.68 50060.37 54272.09
Current Transfer : Credit 18546.29 25746.13 28777.06 31115.67 42780.57 50506.82 63485.48 71252.22 78198.96 50242.73 54476.16
Grants 2099.32 2679.62 2667.36 2578.00 3622.71 3418.05 4851.98 5285.54 7041.16 4542.32 6147.08
Workers' Remittances 14268.27 20969.85 23172.53 25355.16 35955.44 43458.17 54329.41 61727.88 66506.43 42737.30 44999.16
Pensions 1878.99 1775.54 2585.07 2899.34 2834.36 3532.67 4137.31 4238.80 4651.36 2963.11 3329.92
Other 299.71 321.12 352.10 283.17 368.06 97.93 166.78 0.00 0.00 0.00 0.00
Current Transfer : Debit -264.64 -797.45 -512.29 -329.80 -503.36 -736.76 -335.45 -256.57 -380.28 -182.36 -204.07
B. Capital Account (Capital Transfers) 791.25 623.10 1257.83 1590.61 1824.17 1034.83 1706.35 1481.14 1698.73 971.68 1002.66
Total (Group A plus B) 3159.21 4766.83 -1555.69 296.97 9422.09 6740.90 10678.50 12313.12 15740.60 14826.79 371.96

C. Financial Account (exclu.group E) 1103.26 2120.17 784.66 321.25 2891.28 1249.63 1114.80 1772.07 2947.67 -326.78 1574.55
Direct investment in Nepal 29.39 182.92 285.20 643.71 919.54 908.19 319.46 438.26 575.92 233.89 835.40
Portfolio investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other investment : assets -1139.61 -1767.51 -1825.39 -2576.22 -1571.96 -2284.64 -2133.16 -3458.45 -3093.63 -2210.02 -2153.48
Trade credits 85.32 -302.42 -100.90 -613.34 -513.74 -514.74 -162.00 -223.43 -33.89 -274.71 -82.14
Other -1224.93 -1465.09 -1724.49 -1962.88 -1058.22 -1769.90 -1971.16 -3235.02 -3059.74 -1935.31 -2071.34
Other investment : liabilities 2213.48 3704.76 2324.85 2253.76 3543.70 2626.08 2928.50 4792.26 5465.38 1649.35 2892.63
Trade credits 1248.36 1955.46 2196.89 1829.25 2644.23 1443.46 2368.61 2291.23 1639.74 -157.73 1213.80
Loans 339.15 -289.90 -393.35 261.20 103.68 -128.18 419.24 1185.73 2734.18 1579.53 2400.80
General Government 345.59 -283.24 -390.15 263.16 104.76 -121.89 440.78 1191.94 2597.89 1500.71 1857.27
Drawings 1132.55 728.79 684.16 1384.92 1344.53 1370.10 2113.24 2896.12 4377.40 2448.46 2812.10
Repayments -786.96 -1012.03 -1074.31 -1121.76 -1239.77 -1491.99 -1672.46 -1704.18 -1779.51 -947.75 -954.83
Other Sectors -6.44 -6.66 -3.20 -1.96 -1.08 -6.29 -21.54 -6.21 136.29 78.82 543.53
Currency and deposits 625.97 2039.20 -103.13 123.17 844.62 1430.11 273.34 1431.86 1498.23 620.34 -719.59
Nepal Rastra Bank -0.56 -0.34 4.49 -0.78 3.70 -1.17 -3.67 -2.02 -0.56 3.62 2.12
Deposit Money Banks 626.53 2039.54 -107.62 123.95 840.92 1431.28 277.01 1433.88 1498.79 616.72 -721.71
Other liabilities 0.00 0.00 624.44 40.14 -48.83 -119.31 -132.69 -116.57 -406.77 -392.79 -2.38

Total (Group A through C) 4262.47 6887.00 -771.03 618.22 12313.37 7990.54 11793.30 14085.19 18688.27 14500.01 1946.51

D. Net Errors and Omissions -669.03 -371.96 356.86 -86.08 1693.91 333.54 1192.76 1850.27 1705.28 1938.63 2339.46

Total (Group A through D) 3593.44 6515.04 -414.17 532.14 14007.28 8324.07 12986.05 15935.46 20393.55 16438.64 4285.97

E. Reserves and related items -3593.44 -6515.04 414.17 -532.14 -14007.28 -8324.07 -12986.05 -15935.46 -20393.55 -16438.64 -4285.97
Reserve assets -3700.20 -6506.97 84.29 -491.87 -13958.78 -8204.90 -12853.63 -15819.20 -20393.55 -16438.64 -4190.20
Nepal Rastra Bank -2963.68 -4575.13 418.28 -943.84 -13478.70 -6576.34 -11599.22 -13035.30 -17288.70 -14952.92 -3534.45
Deposit Money Banks -736.52 -1931.84 -333.99 451.97 -480.08 -1628.56 -1254.41 -2783.90 -3104.85 -1485.72 -655.75
Use of Fund credit and loans 106.76 -8.07 329.88 -40.27 -48.50 -119.17 -132.42 -116.26 0.00 0.00 -95.78

Change in Net Foreign Assets (- Surpuls) -2967.47 -4475.84 311.04 -408.97 -13162.66 -6894.0 -12712.71 -14503.60 -18895.32 -15818.30 -5005.56
* Provisional
Source : Nepal Rastra Bank

64
Table 6.8 : Balance of Foreign Assests and Liabilities
Rs in ten million
Fiscal Year Precentage Change**
Description
2012/13 2013/14 2014/15 2015/16 2015/16 2016/17*
(I) Assests 55914.2 68131.5 83778.9 105401.2 23.0 25.8
Direct Investment 0.0 0.0 0.0 0.0 - -
Portfolio Investment 0.0 0.0 0.0 0.0 - -
other Investments 8535.1 8756.2 11110.5 13638.1 26.9 22.7
Other Equities 249.6 250.3 547.6 688.4 118.8 25.7
Money and Deposit 2202.6 2991.3 4417.0 4179.7 47.7 -5.4
Debt 5.3 122.9 6.4 5.8 -94.8 -10.2
Advance Payment 514.7 162.0 223.4 33.9 37.9 -84.8
Other Accounts Receivable 5562.9 5229.8 5916.1 8730.4 13.1 47.6
Other Official Reserve 47379.1 59375.3 72668.4 91763.1 22.4 26.3
(II) Liabilities 48009.6 49539.2 52101.0 56455.0 5.2 8.4
Direct Investment 5211.3 7537.3 9682.4 10696.5 28.5 10.5
Portfolio Investment 0.0 0.0 0.0 0.0 - -
other Investments 42798.3 42001.9 42418.6 45758.5 1.0 7.9
Other Equities 0.0 0.0 0.0 0.0 - -
Money and Deposit 5611.5 2937.0 3987.0 4066.5 35.7 2.0
Debt 34762.5 35678.7 35169.7 38997.7 -1.4 10.9
Advance Payment 1443.5 2368.6 2291.2 1639.7 -3.3 -28.4
Other Accounts Payable 2.0 4.2 3.8 36.3 -8.3 849.0
Special Drawing Rights 978.8 1013.4 966.8 1018.3 -4.6 5.3
(III) Net Foreign Assets and Liabilities 7904.6 18592.3 31677.9 48946.2 70.4 54.5
* Provisional
Source: Nepal Rastra Bank

65
Table 7.1 : Status of Foreign Employment by Country

Fiscal Years
S.N. Country
From 1993/94 to 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17* 2016/17**

A. From 1993/94 to 2006/07 763208 763208


B. From 2007/08

1 Qatar 85442 76175 55940 102966 105681 103486 128874 124368 129038 62269 974239

2 Malaysia 50554 35070 113982 105906 98367 158212 214149 202828 60979 38464 1078511

3 Saudi Arabia 42394 48749 63400 71116 80455 96995 86876 98246 138529 43183 769943

4 U.A.E. 45342 31688 33188 44464 54482 58447 54965 53699 52793 26251 455319

5 Kuwait 1967 2291 8255 15187 24575 17273 19353 9668 10049 5648 114266

6 Baharain 5099 6360 4234 4647 5865 4218 4185 4165 3146 1924 43843

7 Oman 2626 4247 3285 2442 3163 3973 3435 2300 3059 1412 29942

8 S. Korea (Including EPS) 146 2909 2532 3728 5627 4440 2125 5158 7432 47 34144

9 Lebnan 2563 3379 3788 151 243 589 1117 598 167 76 12671

10 Israil 110 3378 316 273 574 140 674 450 189 72 6176

11 Afganistan 1400 1538 735 655 823 356 605 1501 1419 541 9573

12 Japan 1306 1827 516 603 1144 1228 2098 2836 3844 1620 17022

13 Other Countries 10102 2354 3923 2578 3666 4186 9358 7070 8069 4659 55965

Total 763208 249051 219965 294094 354716 384665 453543 527814 512887 418713 186166 4364822
* First Eight Months
** Total Number of upto Fiscal Year
Source: Department of Foreign Employment

66
Table 8.1 : Area, Production and Yield of Principal Food Crops
Area : Thousand Hectare
Production: Thousand M.T.
Yield: M.T./Hectare
Fiscal Year
Food Crops
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Area 1440 1549 1556 1481 1496 1531.00 1420.0 1487.0 1425.4 1362.91 1552.47
Paddy Production 3681 4299 4524 4024 4460 5072.00 4504.0 5047.1 4788.6 4299.08 5230.33
Yield 2.56 2.77 2.90 2.72 2.98 3.31 3.2 3.4 3.4 3.15 3.37
Area 870 870 875 876 906 871.00 849.0 928.8 882.4 891.58 897.79
Maize Production 1820 1879 1931 1855 2067 2179.00 1999.0 2283.0 2245.3 2231.52 2320.00
Yield 2.09 2.16 2.20 2.12 2.28 2.50 2.4 2.5 2.4 2.50 2.58
Area 703 706 695 731 767 765.00 759.0 754.0 762.4 745.82 750.00
Wheat Production 1515 1572 1344 1556 1746 1846.00 1882.0 1883.0 1975.6 1736.85 1841.00
Yield 2.16 2.22 1.93 2.13 2.75 2.41 2.5 2.5 2.6 2.33 2.45
Area 27 26 26 27 28 27.30 29.0 28.0 28.1 28.37 26.94
Barley Production 28 28 23 28 30 35.00 37.0 35.0 37.4 32.81 32.14
Yield 1.06 1.07 0.90 1.03 1.07 1.25 1.3 1.2 1.3 1.16 1.19
Area 265 265 266 268 270 278.00 274.0 271.0 268.1 266.80 263.10
Millet Production 285 291 293 299 303 315.00 305.0 304.0 308.5 302.40 306.22
Yield 1.07 1.09 1.10 1.11 1.12 1.13 1.1 1.1 1.5 1.13 1.16
Buck Area 10.3 10.30 10.7 10.5 10.8 10.84 10.89
Wheat Production 8.84 10.00 10.1 10.3 10.9 11.64 11.979
** Yield 0.85 0.97 0.9 1.0 1.0 1.07 1.1
Total Area 3040 3151 3152 3383 3477.3 3484.00 3482.6 3479.0 3377.1 3314.57 3501.19
Total Production 7044 7778 7822 7762 8614.8 9457.00 9457.0 9562.4 9366.2 8691.84 9741.66
* Preliminery Estimate
** Included from FY 2010/11
Source : Ministry of Agriculture Development
67
Table 8.2 : Area, Production and Yield of Principal Cash Crops
Area : Thousand Hectare
Production: Thousand M.T.
Yield: M.T./Hectare
Fiscal Year
Cash Crops
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Area 64 63 58 58 63 64.00 64.0 65 66.6 67.372 68.402
Sugercane Production 2600 2485 2354 2495 2718 2869.00 2930.0 3020 3063 2988.418 3157.401
Yield 40.61 39.47 40.52 43.01 43.14 14.33 45.4 46.46 45.991 44.35697 46.16
Area 184 180 181 199 214 218.00 215.0 216.4 233.0543 234.11383 234.55987
Oil Seeds Production 136 134 135 155 176 181.00 179.0 184 209.63276 211.13625 211.73231
Yield 0.74 0.74 0.75 0.78 0.82 0.83 0.8 0.85 0.9 0.9 0.9
Area 154 157 182 185 183 187.00 188.0 205.72 197.037 190.896 202.35
Potato Production 1943 2055 2424 2518 2508 2682.00 2753.0 2817.51 2586.287 2551.739 2755.879
Yield 12.66 13.11 13.3 13.61 13.7 14.33 14.6 13.69 13.13 13.367 13.62
Area 11.72 11.59 11.40 10.50 10.56 10.54 11.3 11.35 11.4 8.017 7.5
Jute Production 16.81 16.98 15.70 12.96 14.42 14.42 15.5 15.75 16.53 11.633 9.73
Yield 1.43 1.46 1.38 1.23 1.36 1.37 1.4 1.39 1.45 1.451042 1.3
Total Area 413.7 412.6 438.40 458.50 471.56 479.54 478.3 497.47 505.4913 497.02683 508.40987
Total Production 2159.81 2269.98 2638.70 2749.96 2762.42 2941.42 3011.5 3081.26 2876.4498 2838.5083 3041.3413
* Preliminary Estimate
Source : Ministry of Agriculture Development

68
Table 8.3 : Other Crops Production
in thousand metric ton
Fiscal Year
Other Crops
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Pulses 274.37 269.77 255.38 262.35 318.36 327.15 356.70 281.75 353.85 351.90 353.1
Fruits 575.09 630.56 686.21 707.00 831.60 885.52 1086.85 965.04 991.98 992.55 1025.3
Vegetables 2298.68 2538.90 2754.40 3004.00 3203.00 3400.90 3409.70 3472.06 3580.09 3819.81 4163.6
Total Production 3148.14 3439.23 3695.99 3973.35 4352.96 4613.57 4853.25 4718.86 4925.92 5164.26 5542.02
* Preliminary Estimate
Source : Ministry of Agriculture Development

Table 8.4 : Livestock Production


in thousand metric ton
Fiscal Year
Description
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Meat 227.11 233.90 241.69 249.00 277.62 288.50 295.50 298.24 300.90 317.85 232.4
Milk & Milk Products 1351.39 1388.73 1445.41 1496.00 1556.50 1622.75 1681.10 1700.00 1724.82 1853.88 1288.3
Egg (in Million) 614.85 631.25 629.94 643.20 704.13 787.01 838.90 872.92 899.50 12080.72 9050.9
Fish 46.78 48.75 48.23 49.73 52.07 54.36 53.96 65.77 69.40 51.33 53.9
* Preliminary Estimate
Source : Ministry of Agriculture Development

69
Table 8.5 : Quantity index of Agriculture Commodities
(Base Year 2000/01=100)
Weight Fiscal Year
Agricultural Commodities
(Percent) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
1 Cereals and other crops 49.41 108.13 116.10 118.05 117.00 125.73 133.68 128.06 137.47 133.63 126.69 137.90
Paddy 20.75 87.30 101.96 107.29 95.43 105.78 120.30 104.92 117.56 111.54 100.14 121.83
Maize 6.88 122.63 126.58 130.09 125.00 144.70 146.84 139.89 159.78 150.13 156.13 158.08
Wheat 7.14 130.86 135.77 116.06 134.43 127.55 134.03 136.65 136.72 143.43 126.10 128.62
Millet 1.37 100.69 102.92 103.48 105.89 110.27 114.78 111.33 110.79 112.38 110.16 111.56
Barley 0.22 92.80 92.11 76.17 90.48 94.79 80.56 78.14 73.61 78.98 75.88 74.35
Potato 4.67 147.92 156.41 184.52 191.65 190.91 193.09 202.51 214.47 196.87 194.24 209.78
Sugarcane 1.24 117.54 112.37 106.45 117.21 122.90 132.47 132.47 149.92 138.49 135.11 142.75
Jute 0.17 93.74 103.64 95.74 127.90 87.96 87.99 94.56 77.23 100.84 70.97 59.39
Tobacco 0.06 66.65 65.79 62.85 62.70 31.16 36.17 61.16 25.28 56.05 15.15 13.92
Soyabeans 0.19 119.98 117.97 120.78 116.75 162.10 161.82 167.26 161.63 162.10 144.83 145.81
Pulses 4.42 112.18 110.29 104.42 109.48 128.47 129.11 142.85 136.59 137.38 137.78 138.64
Others 2.29 95.97 93.59 93.83 102.09 104.34 103.70 93.05 112.44 128.21 166.22 158.74
2 Vegetables, Horticultural
and Nursery products etc 9.71 140.89 153.66 164.89 176.92 190.67 193.15 197.04 207.26 212.96 231.85 243.40
Vegetables 9.70 140.87 153.65 164.87 176.92 190.78 193.26 196.57 206.79 212.31 231.09 242.64
Others 0.01 167.28 167.72 179.26 179.71 187.93 188.18 515.01 521.16 647.38 675.11 658.23
Fruit, nuts beverage and
3
spice crops 7.10 135.68 142.22 155.60 161.14 187.23 207.72 209.40 211.51 223.89 229.70 232.57
Orange 0.97 146.10 157.63 167.16 177.28 239.98 216.07 196.16 195.08 199.49 209.47 216.37
Mango 1.56 113.51 110.79 117.49 113.94 147.24 215.65 223.49 205.30 227.54 238.91 244.40
Banana 0.40 108.86 117.45 124.56 132.09 228.41 323.96 372.04 383.79 478.98 502.92 519.51
Apple 0.42 108.62 117.19 124.28 131.80 134.27 144.47 134.62 147.51 136.78 143.62 147.21
Citrus Fruits 1.79 193.35 200.56 212.69 225.56 259.27 271.92 247.28 260.83 284.09 284.09 276.99
Tea 0.05 225.97 243.45 267.25 293.38 262.70 282.10 310.15 316.36 322.30 332.14 342.28
Coffee 0.00 402.25 561.80 629.21 704.72 451.12 477.53 411.24 421.35 520.87 537.08 553.79
Others 1.85 112.36 121.22 136.64 142.28 208.79 206.57 146.95 152.40 137.47 144.35 135.68
4 Farming of domestic
animals 23.25 117.53 120.42 122.27 124.03 127.13 129.38 132.15 132.84 134.73 136.44 138.69
Buffaloes' Meat 4.42 117.77 121.11 125.45 129.93 134.46 137.86 140.28 139.29 139.38 139.73 143.64
Mutton 3.24 117.59 121.62 126.32 129.71 136.69 138.28 144.02 152.52 157.14 164.72 169.34
Milk 12.36 119.96 123.18 128.17 132.63 137.96 140.54 146.04 147.51 149.51 150.45 151.90
Others 3.23 107.66 107.55 91.11 77.19 113.83 113.83 55.82 48.00 49.19 49.82 47.58
5 Other animals production 2.43 82.37 122.90 127.93 119.64 168.55 180.70 200.00 199.82 206.11 212.51 219.44
Pigs' Meat 0.50 105.24 107.97 111.50 111.99 117.61 119.94 122.77 126.44 132.13 138.34 144.85
Poultry Meat 0.67 93.52 125.08 124.67 123.67 250.93 284.66 317.63 320.10 337.30 350.81 364.86
Eggs 0.81 94.74 124.43 124.17 126.78 138.79 146.03 174.65 172.06 173.36 177.60 182.82
Hides and skins 0.35 144.01 151.57 183.48 120.40 183.48 184.11 178.46 174.07 174.07 174.07 80.02
Others 0.11 89.48 90.59 95.14 94.49 87.46 86.50 84.01 84.30 83.77 84.23 80.02
6 Forestry Production 8.10 104.42 102.96 102.69 102.42 74.77 76.73 103.68 107.87 119.20 128.92 132.10
Overall Index 100 115.72 122.01 125.06 127.73 133.46 140.05 141.07 147.35 148.37 149.46 156.55
* Revised Estimate
** Preliminary Estimate
Note: Index revised and updated from FY 2000/01
Source : Central Bureau of Statistics

70
8.6. Use and Sales of Chemical Fertilizer
in metric ton
Fiscal Year
Description
2011/12 2012/13 2013/14 2014/15 2015/16* 2016/17*
1. Chemical Fertilizer
a) Urea (Metric Ton) 99196.00 108553.00 145632.00 190163.00 164803.80 116632.00
b) D.A.P. (Metric Ton) 43724.00 65722.00 82520.00 101797.00 87532.25 64821.10
c) Potash (Metric Ton) 2733.00 2688.00 5046.00 6717.00 6577.85 5678.44
Total 145653.00 176963.00 233198.00 298677.00 258913.90 187131.54
* First eight month estimation
Source: Agriculture Inputs Company Ltd and National Seeds Company Ltd.

Table 8.7 : Extension of Additional Irrigation Facilities


in hectare
Fiscal Year
Irrigation Tyoes
2009/10 1010/2011 1011/12 1012/13 2013/14 2014/15 2015/16 2016/27*
Total irrigation area 24880 26919 32565 19561 19310 18083 24291 9775
Ground water Irrigation 5507 6099 9395 2016 3514 1586 5800
Cannels Irrigation 19014 20120 22560 17180 15135 15939 17463 9775
New Technology Based
359 600 610 365 661 558 1028
Irrigation
* Provisional
Source: Department of Irrigation and Agriculture Development Bank

71
Table 9.1 : Detail on Industrial Area
Gajendra
Industrial Area Balaju Patan Hetauda Dharan Nepalgunj Pokhara Butwal Bhaktapur Birendranagar Narayan Total
Singh
Establishment Year 1960 1963 1963 1973 1973 1974 1976 1979 1981 1986
Assistance America India America India India Germany Netherland India
Area (Ropani) 670 293 3119 202 233 501 434 71 90 294 5907
Completed 670 293 2386 202 233 501 434 71 90 171 5051
Leased Out 534 223 1771 141 186 397 374 58 66 25 4200
Remaining - - 438 6 - - - - - 8 452
Land Used by Service
128 70 448 58 46 103 60 13 23 131 1059
Area
Government Area 6 4 6 1 2 3 2 2 2 5 33
Private Area 312 200 898 30 112 210 270 60 2 3 2097
Number of Industry 144 116 116 34 35 84 71 37 29 7 673
Industry in Operation 119 105 87 31 29 71 63 35 21 2 563
In the Process of
20 4 19 3 4 8 4 0 5 2 69
Construction
Shut down 5 7 10 0 2 5 4 2 3 3 41
In Operation after
- - 6 - - - - - - - 6
leasing out
Other 10 5 10 3 9 3 2 2 - 44
Employment 4000 2274 4550 797 800 2000 1500 800 300 28 17050
Electricity
10500 3600 5000 1000 1500 2000 4000 900 190 200 27990
Consumption (KVA)
Water
Production/Consumpti 787 144 800 55 75 430 250 - 96 8 2645
on
Road (KM) 5.00 3.00 19.00 2.31 2.34 2.54 2.14 0.69 0.91 2.00 40.78
Source: Industrial Area Management Limited
72
Table 9.2 : Tourist Arrivals by Major Countries
Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan
Country
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Australia 12369 13846 15461 16243 19949 22030 202469 24516 18619 25507
Bangaladesh 22410 21851 14831 23440
Canada 7399 8132 8965 9322 10705 13507 12132 11610 8398 12491
Chaina 28618 35166 32272 46360 61917 71861 113173 123805 66984 104005
France 20250 22402 22154 24550 26131 28805 21842 24097 16405 20863
Germany 21323 18552 19246 22583 26866 30409 22263 18028 12728 23812
India 96010 91177 93884 120898 147037 165815 180974 135343 75124 118249
Italy 11243 7914 7982 10226 12257 14614 9974 10347 5609 9911
Japan 27058 23383 22445 23332 25856 28642 26694 25829 17616 22979
S. Korea 19714 23205 18112 25171
Myanmar 25769
Netherland 10589 10900 11147 13471 16343 15445 10516 12320 7515 11453
Spain 15672 13851 13006 13712 15593 14549 10412 13110 6714 12255
Thailaind 26722
Sri Lanka 49947 37817 36362 45531 59785 69476 32736 37546 44367 57521
United States 29783 30076 32043 36425 41971 48985 47355 49830 42687 53645
United
32367 33658 35382 35091 36981 41294 35668 36759 29730 46295
Kingdom
Other 164077 153403 159607 185123 234824 237660 29284 221922 153531 132914
Total 526705 500277 509956 602867 736215 803092 797616 790118 538970 753002
Source: Ministry of Culture, Tourism and Civil Aviation
73
Table 9.3 : Tourist Arrival by Purpose of Visit
Travel Trekking and Meeting/ Study/Empl
Entertainment Rafting Business Official Visit Religious Trip Other Unspecified Total
Objective Mountaineering Conference oyment

Year
Mid-Jan 217815 101320 24487 21670 52594 8019 65 78579 22156 526705
2008
Percent 41.4 19.2 4.600 4.2 10.0 1.5 14.9 4.2 100
Mid-Jan 148180 104822 23039 43044 45091 6938 243 99391 29529 500277
2009
Percent 29.6 21 4.60 8.6 9.0 1 19.9 5.9 100
Mid-Jan 140992 132929 22758 24518 51542 9985 285 86849 40098 509956
2010
Percent 27.6 26.1 4.50 4.8 10 2.0 0.1 17.0 7.9 100
Mid-Jan 263938 70218 21377 26374 101335 9627 730 5101 46516 57651 602867
2011
Percent 43.8 11.6 3.6 4.4 16.8 1.6 0.1 0.80 7.7 9.6 100
Mid-Jan 425721 86260 17859 24054 63783 10836 2181 5235 29895 70391 736215
2012
Percent 57.8 11.7 2.4 3.3 8.6 1.5 0.3 0.70 4.1 9.6 100
Mid-Jan 379627 105015 24785 30460 109854 13646 1750 18975 27815 91165 803092
2013
Percent 47.3 13.1 3.1 3.8 13.6 1.7 0.2 2.4 3.4 11.4 100
Mid-Jan 410934 102001 28183 37386 71610 15553 1396 10369 54326 65858 797616
2014
Percent 51.5 12.8 3.5 4.7 9.0 2 0.2 1.2 6.8 8.3 100
Mid-Jan 395849 97185 24494 32395 98765 13431 1580 10272 41876 74271 790118
2015
Percent 50.1 12.3 3.1 4.1 12.5 1.7 0.2 1.3 5.3 9.4 100
Mid-Jan 386065 12087 20876 21479 14996 9162 9038 14928 50339 538970
2016
Percent 71.6 2.2 3.9 4.0 2.8 1.7 1.7 2.8 9.3 100
Mid-Jan 489451 66490 24322 21310 82830 12802 55797 753002
2017
Percent 65 8.83 3.23 2.83 11 1.7 7.41 100
Source: Ministry of Culture, Tourism and Civil Aviation

74
Table 9.4 : Foreign Currency Earning from Tourism Sector
Ratio to
Ratio to
Foreign Foreign
Foreign Ratio to Total
Currency Currency
Currency Foreign
Earning from Earned via Ratio to GDP
Fiscal Year Earned Currency
Tourism Export of (In Percent)
through Earned (In
Sector ( In Rs. Goods and
Goods exports Percent)
Ten Million) Service (In
(In Percent)
Percent)
2007/08 1865.3 30.1 17.9 5.5 2.3
2008/09 2796.0 40.0 22.8 6.5 2.8
2009/10 2813.9 44.5 24.6 8.1 2.4
2010/11 2461.1 35.8 20.2 9.0 1.8
2011/12 3070.4 37.7 20.0 4.7 2.0
2012/13 3421.1 39.8 18.9 4.8 2.0
2013/14 4637.5 45.9 20.5 6.0 2.4
2014/15 5342.9 54.4 21.6 6.1 2.5
2015/16 4176.5 55.8 19.6 4.5 1.9
2016/17* 3619.9 66.8 23.3 6.4
*Of first eight months
Source: Nepal Rastra Bank

75
Table 9.5 : Mountaineering Expendition Teams
Amount of Royalty
Number of Number of Temporary to Government (In
Year Month Team Mountainers Employment Thousand)
2012 Mid-Jan 259 1951 2616 232532
2013 Mid-Jan 300 2566 1938 345161
2014 Mid-Jan 296 2266 2874 340821
2015 Mid-Jan 320 2500 2450 390180.56
2016 Mid-Jan 380 4003 1621 336745.75
2017 Mid-Jan 691 3406 982 287493.7
Source: Ministry of Culture, Tourism and Civil Aviation

Table 9.6 : Number of Hotel and Hotel Beds


Star Level Other than star Total
Year (upto) Hotel Number of Bed Hotel Number of Bed Number of Hotel Number of Bed
2004 Mid-Jan 108 10535 858 27735 966 38270
2005 Mid-Jan 110 10715 886 28392 996 39107
2006 Mid-Jan 110 10715 896 28669 1006 39384
2007 Mid-Jan 105 9763 502 14497 607 24260
2008 Mid-Jan 105 9763 512 14897 617 24660
2009 Mid-Jan 96 9320 573 16743 669 26063
2010 Mid-Jan 97 9369 647 19124 744 28493
2011 Mid-Jan 103 9125 686 20217 789 29342
2012 Mid-Jan 106 9323 721 21457 827 30780
2013 Mid-Jan 107 9371 746 22286 853 31657
2014 Mid-Jan 117 9506 909 25017 1026 34523
2015 Mid-Jan 118 9554 957 26625 1075 36179
2016 Mid-Jan 116 9710 960 27240 1073 36950
2017 Mid-Jan 120 10071 985 28171 1105 38242
Source: Department of Tourism

76
Table 10.1 : Status of Energy Consumption (toe: tones of oil equivalent)

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Source
(000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe)
Traditional 7556 7698 7854 8015 8185 8342 8500 7032 8017 8983 9104 9227 6152
Firewood 6732 6862 6999 7149 7301 7467 7606 6274 7153 8154 8264 8376 5584
Agricultural
327 329 337 337 344 324 331 310 353 403 408 414
Residues 276
Cow Dung 497 507 518 529 540 551 563 448 511 426 432 438 292
Commercial 1014 1093 1031 1038 1139 1464 1580 1679 1854 1958.96 2331.44 2248.2 1811.97
Coal 152 243 144 193 182 286 293 348 415 320 465 536.25 332.11
Petroleum
705 686 709 655 775 965 1058 1083 1182 1264 1469.16 1275.39
Products 1139
Electricity 157 164 178 190 182 213 229 248 257 374.96 397.28 436.56 340.86
Renewable 46 53 59 59 64 70 75 109 166 291 292.12 292.49 293.12
Total 8616 8844 8944 9112 9388 9876 10155 8820 10037 11232.96 11727.56 11767.69 8257.09
*Of first eight months
Source: Ministry of Energy
Note:
1. The status of energy consumption has been presented in TOE instead of Coal Energy.
2. While doing this, 1 TOE is assumed to be equivalent of 1.454288 Coal Energy.

77
Table 10.2 : Status of Electricity Generation and Consumption
(In Million KW per Hr)
Generation and Under Exchange
Electricity Generation High Demand
Consumption Domestic Industrial Commercial Export Other Total Agreement
Loss and Import (MW)
Fiscal Year Import Export
2003/04 676.40 689.80 108.10 141.20 196.70 1812.20 569.30 2381.50 515.20 185.60 141.20
2004/05 758.20 764.00 109.30 110.70 222.20 1964.40 678.40 2642.80 557.50 241.40 110.70
2005/06 805.70 785.60 120.30 96.60 224.40 2032.60 748.30 2780.90 603.28 266.22 96.60
2006/07 893.30 849.10 141.70 76.90 292.10 2253.10 798.70 3051.80 648.40 328.80 76.90
2007/08 931.35 901.09 154.40 60.38 263.40 2310.62 875.63 3185.95 721.73 425.22 60.10
2008/09 908.67 845.68 146.29 46.38 257.57 2204.59 926.20 3130.79 812.50 356.46 46.38
2009/10 1109.29 1008.37 193.12 74.48 292.57 2677.83 1011.44 3689.27 885.28 612.58 74.48
2010/11 1143.18 1012.87 204.92 31.10 294.92 2686.99 1071.38 3758.37 946.10 694.05 31.11
2011/12 1311.07 1192.06 227.06 50.00 384.50 3164.69 953.71 4119.03 947.00 800.00 50.00
2012/13 1397.46 1141.07 237.91 0.00 379.56 3156.00 756.00 4220.19 1094.62 790.14 0.00
2013/14 1526.84 1246.70 285.16 0.00 385.56 3444.26 853.83 4681.10 1200.98 1070.46 0.00
2014/15 1688.50 1362.61 302.57 3.17 415.78 3772.62 1194.04 4966.67 1291.80 1367.66 3.17
2015/16 1792.95 1205.69 286.48 3.15 430.70 3718.97 1358.21 5077.18 1385.00 1782.86 3.15
2016/17* 1381.63 1095.28 225.62 2.02 338.80 3043.35 919.10 3962.45 1444.10 1171.38 2.02
* Estimate till Mid-Feb 2016
Source: Nepal Electricity Authority

78
Table 10.3 : Consumption of Petroleum Products
Furnace Oil Total
Fiscal Year Petrol (KL) Diesel (KL) Petrol (KL) A.T.F. (KL) L.D.O. (KL) LPG (MT)
(KL) Excluding LPG

2016/17* 242943 730208 11574 97004 0 0 1081729 188170


2015/16 238755 789922 14203 78680 0 0 1121560 217579
2014/15 283567 901393 18628 139404 0 0 1342992 258299
2013/14 251451 811100 19064 123527 0 0 1205142 232660
2012/13 221676 716747 24721 115786 258 2450 1081638 207038
2011/12 199749 648513 41808 108908 0 435 999413 181411
2010/11 187641 655128 49495 101314 227 1415 995220 159286
2009/10 162275 612505 55788 82631 238 2589 916026 141171
2008/09 124169 446468 70089 68935 377 2171 712209 115813
2007/08 100842 302706 155216 68938 306 2919 630927 96837
2006/07 101912 306687 197850 63778 179 4558 674964 93562
2005/06 80989 294329 226637 64335 290 3695 670275 81005
* Of first eight months
Source:Nepal Oil Corporation

79
Table 11.1 : Extension of Road Facilities

In Kilometre
Fiscal Year
Road
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Black- Topped 4911 5048 5402 5845 6094 6669 9902 10192 10659 11197 11798 12173 12305
Gravelled 4707 4727 4529 4711 4772 5007 5670 5787 5940 6086 6287 6460 6865
Fair Weathered 7661 7658 7851 8591 8892 9417 7637 8410 8666 9163 9411 9675 9987
Total 17279 17433 17782 19147 19758 21093 23209 24389 25265 26446 27496 28308 29157
* First Eight Months
Source : Ministry of Physical Infrastructure and Transport

Table: 11.2 (a) : Number of Vehicles Registered


In Numbers
Fiscal Year
Type
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
Bus/Minibus 969 1038 2190 1459 1231 2436 4938 2980 3255 4591 4188 6007 8978 5620
Truck/Tanker 1477 1592 2263 1730 2104 3643 5524 9169 1333 3332 2789 4236 8328 9751
Jeep/Car 7079 4781 5114 3015 3127 6857 13268 8510 8711 9595 11372 13560 28361 17171
*First Eight Months
Source : Ministry of Physical Infrastructure and Transport

80
Table 11.2(b) : Vechiles Registration

Crane/Dozer
Fiscal Minibus/Min Car/Jeep Tractor/ Total as of
Bus /Exczvator/ Pickup Microbus Tempo Motorcycle E-Riksa Others Total
year iTruck /Van PowerTiller Now
Truck
Total as of 1990/91 89527
1991/92 531 455 1524 2637 0 0 1207 9336 1342 435 17467 106994
1992/93 606 185 1491 2266 0 0 62 8513 751 381 14255 121249
1993/94 1168 121 1740 3049 0 0 213 10550 1396 372 18609 139858
1994/95 850 83 1629 3043 0 0 241 11401 1814 353 19414 159272
1995/96 486 82 1151 3974 0 0 117 12357 2183 58 20408 179680
1996/97 608 175 907 4521 0 0 185 15739 1278 352 23765 203445
1997/98 899 130 1291 4139 0 0 344 12306 1265 51 20425 223870
1998/99 872 19 978 2507 0 0 388 17090 2248 37 24139 248009
1999/2000 494 122 829 3647 0 0 789 19755 2542 102 28280 276289
2000/2001 1203 250 1271 5152 0 0 232 29291 3519 77 40995 317284
2001/2002 868 475 1798 4379 0 0 248 36117 3189 86 47160 364444
2002/2003 432 298 1212 2906 581 232 17 29404 2485 43 37610 402054
2003/2004 732 237 1477 7079 478 884 16 26547 2191 58 39699 441753
2004/2005 753 285 1592 4781 0 584 48 31273 1374 21 40711 482464
Table: 11.2 (a) 1528
: Number of Vehicles
663 Registered
2263 5114 36 66 60 44610 635 - 54975 537439
2006/2007 1564 806 3278 5156 736 138 12 72568 2942 1535 88735 626174
2007/2008 1419 1179 3594 4741 1588 31 18 68667 3297 206 84740 710914
2008/2009 1843 593 3643 6857 1287 128 20 83334 4663 202 102570 813484
2009/2010 1888 780 4524 12268 1975 145 9 168707 11460 31 201787 1015271
2010/2011 1610 1370 1969 8510 3087 115 2 138907 7937 133 163640 1178911
2011/2012 2085 1170 1333 8711 2981 155 10 145135 8413 91 170084 1348995
2012/2013 3263 1328 3332 9595 5422 158 57 175381 9795 152 208483 1557478
2013/2014 2776 1412 2789 11372 5668 178 17 163945 10070 116 198343 1755821
2014/2015 3737 2270 4236 13560 6057 932 1541 196383 10524 343 239583 1995404
2015/2016 4353 4625 8328 28361 5060 1137 2613 267439 9786 11894 169 343765 2339169
2016/2017* 3965 1655 9751 17171 8133 305 3667 199908 10316 8784 162 263817
2602986
Total 40533 20768 67930 185496 43089 5188 12133 1994663 117415 20678 5566 2513459
* First eight months
Source : Ministry of Physical Infrastructure and Transport 81
Table 13. 1 : Status of Eearly Childhood Development (ECD)
TotalEducation
Additional
Number of Net Percentagge of Children
Child Beneficiary
Fiscal Year Child Enrolment entering Grade 1 with ECD
Development Children
Development Rate at ECD Experience
Center (No)
Centers
2009/10 2000 26772 947278 66.02 49.9
2010/11 2000 28775 1018543 70 52.1
2011/12 500 29273 1056430 72.9 54.3
2012/13 262 29535 1053054 73.7 55.6
2013/14 500 30035 1047123 76.7 56.9
2014/15 500 30448 1014339 77.7 59.6
2015/16 30448 977365 81 62.4
2016/17 30448 973413 82.9 64.7
Source: Department of Education

82
Table 13.2 : Scholarships for School Children (FY 2016/17)
Budget
Beneficiary
S.N Description (In Districts
Number
Rs,,000)
1 Scholarship for all Dalit Students of Grades (1- 1111727 444691 75 Districts
Scholarship for all Students of Grades (1-
2 2072231 828892 75 Districts
8)including Karnali Package for grades1-10
)Scholarship for tageted basic level students
3 (including chidren of 22 ethnic and 127960 63980 Targeted District
marginalized group, free-bonded laborers, Badi,
4 Scholarship for Martyrs' Children 99 3550 75 Districts
5 Scholarships for free bonded laborers 7553 35499 5 Districts
6 Hostel operation expenses for free-bonded 17 4658 5 Districts
7 Scholarship of Conflict Victims 6904 89407 75 Districts
Scholarship for Hostellers of Mountain 15 schools from 10 Mountain
8 482 19280
Regions ( Remote Areas) Districts
9 Scholarship for Feeder Hostel Students 400 16000 20 Distrcits of Terai/Madhes
10 Scholarships for Students of Model Schools 508 22122 6 Districts
11 Scholarship for Hostellers of Mountain 220 16960 15 Schools from 10 Mountain
12 Operation Expenses for Mountain Hostels 482 4820 15 Schools from 10 Mountain
Operation and Management Expenses for
13 400 4000 20 Distrcits of Terai/Madhes
Feeder Hostels
Operation and Management Expenses for
14 508 5980 75 Districts
Feeder Model Schools
Operation Expenses for hostels at mountain 15 Schools from 10 Mountain
15 220 4239
boarding schools Districts
16 Secondary School Scholarship for Grades (8-10) 60000 102000 75 Districts
17 Dalit Scholarships (Grades 9-10) 80000 40000 75 Districts
Scholarships for Students (Grades 9-10)with
18 7184 75 Districts
Disability
Scholarships for Endangered and Extremely
Marginalized Students ( Including children of
19 15409 26195 76 Districts
free-bonded laborers, tillers, grazers and Badi
communities)
Scholarship for Higher Secondary Level
20 234 7020 12 Districts
Science Students of Targeted Groups
Hostel operation expenses for extremely
21 200 2000 9 Districts
marginalized community students
Scholarship for student of hostels to be operated
22 200 8000 9 Districts
for extremely margnialized community students
Ram Narayan Mishra Special Scholarship for
23 Terai Dalit and marginalized girl students of 62904 199500 20 Distrcits of Terai/Madhes
Grades 11 and 12
Source: Department of Education

83
Table 13.3: Technical and Vocational Education Programs
Fiscal Years
Program Indicator Unit 2013/1 2015/1
2012/13 2014/15 2016/17*
4 6
Regular Teaching
Constituent
Technical SLC Enrollment Person 1278 1084 1150 959 1273
Production Person 899 907 372 253 336
Diploma Certificate level Enrollment Person 1220 1275 1549 1202 1784
Production Person 640 685 505 310 461
Technical education in 73 community Schools Enrollment Person 2645 2421 3067 3334 2928
Production Person 1902 1603 1603 1742 1700
On Community School Side
Commencement of Technical Education in Technical
No 73 73 73 73 76
Grade 9 and 10 SLC
Affiliations Granted Private Schools
Technical SLC Enrollment Person 10040 12880 13258 15167 18500
Production Person 654 4514 7143 7143 8712
Diploma and Certificate Level Enrollment Person 11910 11240 12211 14432 14733
Production Person 5727 7772 5447 6913 7057
Technical School/Polytechnic Extension
Affiliated School Side School No. 18 - 13 16 25
Extension
Affiliation Granted Private School
1) Permanent Affiliation-Technical SLC- School
No. 4 50/60 124/20 - 62
Diploma Certificate Level Extension
2) Granting Short-Term Affiliation and Developing
No. 1 44 118 - 96
Approval Skills
Vocational Training Program
Assessing skills after providing short-term Developing
Person 1440 3100 3060 100 1200
Training Skills
Developing Person
Vocational Training for Livelihood 3014 3277 - - -
Skills /Week
Scholarship Programs for Target Group
Diploma/Certificate Level Social
Person 225 225 225 225 225
Security
Technical SLC Level Social
Person 150 150 125 125 125
Security
Community Service 17743 - -
Human Health Service Service Person 11338 14325 14325 - -
Veterinary Service Service No. 7875 11500 11500 - -
Technical Service and Counseling to Farmers Service Person 2180 4550 4550 - -
Health Camp Mobile
No. 0 9 8 - -
Service
Skill Assessment and Verification Verification Person 36159 55491 59996 13940 9556
Training for Technical Trainners Verification Person - 3382 3296 883 1334
* Of first eight months
Source: Ministry of Education

84
Table 13.4: Distribution of Schools of Various Levels by Geographical Regions
Geographical Total Number Primary Level Basic Level (6- Basic Level (1- Secondary Secondary Secondary
Regions of Schools (1-5) 8) 8) Level (9-10) Level (11-12) Level (9-12)*
Nepal 35,222 34,736 15,170 34,920 9,084 3,761 9,379
Mountain 4,238 4,200 1,594 4,231 812 342 819
Hill 17,637 17,490 6,917 17,585 3,978
Kathmandu 2,085 5,528
2,201 2,063 1,685 2,078 1,380
Valley
Terai 11,146 10,983 4,974 11,026 2,914 1,334 3,032
* Secondary Level of Education Data of Hills and Kathmandu Valley have been integated Source: Department of Education

Table 13.5: Ratio of Student Per Teacher (Academic Year 2016)


Per Teacher Student Ratio
Private /Government TotalOnly Government (All Community Schools)
Development Region
Primary Primary Primary Primary
Secondary Secondary
(1-5) (6-8) (1-5) (6-8)
Nepal 21 34 24 23 40 31
Eastern Region 19 35 26 21 39 30
Mountain 15 27 20 16 28 21
Hill 15 30 25 14 30 26
Terai 24 42 28 30 54 39
Central Region 25 30 19 29 41 28
Mountain 14 29 23 15 32 25
Hill 15 29 21 17 34 28
Terai 46 58 37 51 71 42
Valley 16 18 11 15 20 15
Western Region 15 29 20 16 34 26
Mountain 3 7 6 3 8 5
Hill 12 26 19 12 29 23
Terai 23 35 23 29 49 36
25
Mid-Western Region 38 26 52 43
Mountain 21 43 38 45 38
Hill 27 52 43 28 54 44
Terai 24 49 34 24 53 42
22
Far-Western Region 39 37 24 40 36
Mountain 18 30 29 19 31 29
Hill 22 34 28 24 35 29
Terai 26 51 53 30 51 51
Source: Department of Education

85
Table 13.6 (a) : Numeric Detail of Teachers Training at the Basic levels (Academic Year 2016)

Primary (1-5) Primary (6-8) Primary (1-8)


Training Status
Female Male Total Female Male Total Female Male Total
Trained 82941 106273 189214 12782 31927 44709 95723 138200 233923
Percent 95.40 95.87 95.66 80.85 82.25 81.85 93.16 92.34 92.67
Partially Trained 1800 3013 4813 498 1637 2135 2298 4650 6948
Percent 2.07 2.72 2.43 3.15 4.22 3.91 2.24 3.11 2.75
Untrained 2201 1569 3770 2529 5251 7780 4730 6820 11550
Percent 2.53 1.42 1.91 16.00 13.53 14.24 4.60 4.56 4.58
Total 86942 110855 197797 15809 38815 54624 102751 149670 252421
Source:Department of Education

Table 13.6 (b) : Numeric Detail of Teachers Training at the Secondary Levels (Academic Year 2016)

Secondary (9-10) Higher Secondary (11-12) Secondary (9-12)


Training Status
Female Male Total Female Male Total Female Male Total
Trained 6805 31032 37837 2531 12336 14867 9336 43368 52704
Percent 92.50 94.36 94.02 76.63 73.79 74.26 87.58 87.42 87.45
Partially Trained 290 978 1268 180 985 1165 470 1963 2433
Percent 3.94 2.97 3.15 5.45 5.89 5.82 4.41 3.96 4.04
Untrained 262 878 592 3397 3989 854 4275 5129
Percent 3.56 2.67 0.00 17.92 19.92 8.01 8.62 8.51
Total 7357 32888 40245 3303 16718 20021 10660 49606 60266
Source: Department of Education

86
Table 13.7: Number of Students Appeared and Passed in
Regular Secondary Education Examination-SEE(
Previously named SLC Examination)

Year Appeared No. Passed No. Passed %

2003 175418 81008 46.18


2004 216303 83747 38.72
2005 225031 104653 46.51
2006 274210 160802 58.64
2007 307078 195689 63.73
2008 342632 234602 68.47
2009 385146 247689 64.31
2010 397759 220766 55.50
2011 419121 199714 47.65
2012 403936 167935 41.57
2013 394933 173436 43.92
2014 405338 192267 47.43
2015* 437326 433591 -
Source: Ministry of Education
*Letter Grading System (GPA) implemented from Academic Year 2015

87
Table 13.8: Number of Students appreard in and passed out Final Examination of Grades 11 and 12
Class 11 Class 12
Year Appeared Passed Appeared Passed
Male Female Total Male Female Total Male Female Total Male Female Total
57240 44793 102033 47803 39405 87208
2009 132158 122613 254771 94812 92005 186817
43.30% 36.50% 40.00% 50.40% 42.80% 47.70%
65595 51433 117028 55058 45788 100846
2010 155989 142062 298051 117093 112652 229715
42.10% 36.20% 39.30% 47.00% 40.60% 44.00%
64908 51508 115922 67005 58518 125523
2011 161984 141870 303854 135087 128892 263979
40.00% 36.30% 38.20% 49.60% 45.40% 48.00%
62163 51790 113953 60358 50608 110966
2012 151233 134044 285277 135664 126112 261776
41.10% 38.60% 40.00% 44.50% 40.10% 42.40%
58596 46787 105383 59311 49971 111354
2013 139885 124866 264751 128288 118796 251415
41.89% 37.47% 39.80% 46.23% 42.06% 44.29%
58315 48202 106517 52951 47679 100630
2014 121035 104338 225373 116581 111643 228224
48.18% 46.20% 47.26% 45.42% 42.71% 44.09%
82842 89945 163847 82813 61979 139562
2015 185644 187846 373490 223503 160185 383688
44.62% 47.88% 43.87% 37.05% 38.69% 36.37%
71156 64937 136093 59056 55109 114165
2016 138430 127914 266344 110578 106000 216198
51.40% 50.80% 51.10% 53.41% 51.99% 52.81%
Source: National Examiniation Board

88
Table 13.9 : Number of Teachers
(Primary, Lower Secondary and Secondary)
Students no. (In thousand)
Academic Primary (1-5) Primary (6-8) Secondary (9-10) Secondary (11-12) Grand Total
Year Total Training Total Training Total Training Total Training Total Training
2003 112360 19535 29895 7979 23297 9286 165552 36800
2004 101483 30967 25962 7818 20232 9727 147677 48512
2005 91679 34857 22817 7813 16130 9635 130626 52305
2006 95503 57191 26716 12398 19386 12909 141605 82498
2007 116846 77630 27903 14606 20674 14478 165423 106714
2008 143574 96298 37068 20035 26925 19202 207567 135535
2009 153536 113096 40259 23021 29109 23193 222904 159310
2010 167216 134991 46032 29265 33835 28780 247083 193036
2011 173714 160788 48848 37745 35675 30937 258237 229470
2012 178534 166765 50389 40013 37048 32286 265971 239064
2013 183922 172117 51653 41271 38363 33677 273938 247065
2014 187684 177217 52348 42182 38858 35128 278890 254527
2015 190219 180749 53302 43263 39691 37092 283212 261104
2016 197797 189214 56624 44709 40245 37837 #### 52704 354932 324464
Source : Ministry of Education
आंशक तालम ा त लाई तालम ा त मा समावेश गरएको छै न ।

89
Table 13.10 : Number of Schools and Students
(Primary, Lower Secondary and Secondary)
Students no. (In thousand)
Primary (1-5) Primary (6-8) Secondary (9-10) Secondary (11-12)
Academic Year
School Student School Student School Student School Student*
2003 27268 4025 8249 1210 4741 511
2004 24746 4030 7436 1445 4547 588
2005 27525 4502 8471 1375 5039 587
2006 27901 4515 8880 1301 5329 679
2007 29220 4419 9739 1444 5894 671
2008 30924 4782 10636 1467 6516 715
2009 31655 4901 11341 1604 6928 790
2010 32684 4952 11939 1700 7559 812
2011 33881 4783 13791 1813 8233 849 3383 567.833
2012 34298 4577 14447 1823 8416 878 3596 547.053
2013 34743 4402 14867 1828 8726 897 3596 516
2014 34335 4335 14952 1835 8825 901 3659 454
2015 34362 4265 15091 1863 8968 939 3669 757
2016 34736 4135 15170 1859 9084 959 3761 483
Source : Ministry of Education
*The number of Secondary Level ( Grades 11-12) students is the number of students appeared only in the examination

90
Table 13.11: Number of Students selected for various level and subjects
Subject 2012/13 2013/14 2014/15 2015/16 2016/17* Country
MBBS 203 206 225 196 187 Nepal
BDS 54 36 54 43 42 Nepal
BAMS 17 8 8 - - Nepal
BN 15 19 12 18 12 Nepal
BPH 6 4 4 8 6 Nepal
B Pharma 20 20 19 11 14 Nepal
BSC forestry 5 5 5 5 - Nepal
BSC Nursing 17 22 24 21 21 Nepal
BMIT - - - 2 2 Nepal
BMLT - - - 6 3 Nepal
MSC Forestry - - - 2 - Nepal
MBBS 12 11 15 10 19- Foreign
BDS 1 - 1 - 1 Foreign
B Pharma - - - 4 2 Foreign
PG Medicine 12 - - - - Foreign
BSC Engineering 6 1 - - 1 Foreign
PHd - - - - 4 Foreign
B Pharma 13 1 4 2 Foreign
*First Eight Month Source: Ministry of Education

91
Table 13.12 : Number of Colleges and Students under Various Universities
Number of Student
Colleges
Universties FY 2014/15 FY 2015/16
Constit Constitue Constitue
Affiliated Affiliated Total Affiliated Total
uent nt nt
Tribhuwan University 60 1085 104188 194802 298990 142293 217961 360254
Kathmandu University 6 15 6157 9695 15852 6765 9879 16644
Purbanchal University 5 126 950 22589 23539 406 7449 24511
Nepal Sanskrit University 14 11 2936 476 3412 2175 1020 2945
Pokhara Univerisity 5 58 1935 23596 25531 1881 24153 26034
Lumbini Bouddha University 1 5 105 110 215 77 119 196
Agriulture and Forestry University 1 - 1565 - 1565 3166 - 3166
Far-Western University 1 - 1829 - 1829 2642 - 2642
Mid-Western University 1 - 2522 - 2522 2958 - 2958
BP Koirala Institute of Health Sciences 1 - 351 - 351 950 - 950
Karnali Academy of Health Sciences 1 – 100 - 100 170 - 170
Medical Science National Academy 1 - 546 - 546 576 - 576
Patan Academy of Health Science 1 - 295 - 295 415 - 415
Total 374747 441461
Source: Ministry of Education, TU, Mahendra Sanskrit University, KU, PU, University Grant Commission

92
Table 13.13 : University Level Students Enrollment and Production Details as of FY
2015/16 In Number
Descripitio Pokhara Lumbini Mid- Nepal
Level TU KU PU Total
n University Boudha Western Sanskrit
Enrolled 540 239 935 1714
Certificate
Produced 284 32 316
Enrolled 309888 14235 22083 23636 2111 790 372743
Bachelor
Produced 65443 2091 7154 3802 58 78548
Enrolled 46483 1429 2428 2324 178 847 190 53879
Master
Produced 17741 363 1530 637 36 149 20456
Enrolled 124 17 141
PGD
Produced 1 15 16
Enrolled 511 490 48 1049
M.Phil
Produced 162 21 19 202
Enrolled 474 127 9 18 115 743
Ph.D
Produced 82 11 3 96
Enrolled 2358 915 3273
Others
Produced 915 915
Enrolled 360254 16644 24511 26034 196 2958 2945 433542
Total
Produced 83712 2519 8684 4473 39 207 915 100549
Students Enrolled at Nepal University of Agricultre and Forestry 3166
Students Enrolled at Far-Western University 2642
Students Enrolled at BPKIHS 950
Students Enrolled at Karnali Academy of Health Sciences 170
Students Enrolled at National Academy of Medical Sciences 576
Students Enrolled at Patan Academy of Health Science 415
Total Number of Current Students 441461
Source : Tribhuvan University, Mahendra Sanskrit University, Kathmandu University, Purbanchal University, Pokhara University and University Grant Commission

93
Table 13.14 : Number of Students Enrolled in Higher Level of Education
Fiscal Year
Educational Institution
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
A. Tribhuvan University
1. Engineering 4094 4050 4571 5098 5017 5513 5368 5580 5752 13207 12353 3338 13322
2. Agriculture & Animal Science 570 643 668 676 817 860 1181 1201 1092 1453 1472 2212 1496
3. Medicine 1685 1543 1570 1719 1888 1955 1945 1993 2136 7128 5421 1291 7616
4. Forestry 441 457 573 889 482 484 520 490 636 724 666 1060 927
5. Science & Technology 11951 12218 13441 14120 15229 17066 15016 11016 12851 21777 16251 16315 25970
Total of Technical Education 18741 18891 20823 22502 23433 25878 24030 20280 22467 44289 36163 24216 49331
6. Law 898 830 1214 1052 1609 2347 2583 2134 3391 5515 2235 6406 2960
7. Management 31341 36578 41803 33311 44854 39194 45941 27686 32200 198088 130843 130161 134053
8. Education 18814 25394 32915 24165 42204 43508 54828 30151 49056 247316 170097 90130 127182
9. Humanities & Social Science 49345 51084 56113 49632 59521 60667 59498 36029 36785 109229 66003 48077 46728
b. General Education 100398 113886 132045 108160 148188 145716 162850 96000 121432 560148 369178 274774 310923
c. Affiliated Total - - - - - - - - 229947 273349 141181 104188 142293
Grand Total 119149 132777 152868 130662 171621 171594 186880 116280 373846 604437 405341 298990 360254
B. Nepal Sanskrit University 3610 2958 2667 3774 3339 5446 5436 - 3772 4039 3862 3412 2945
C. Kathmandu University
1. School of Science 786 867 538 612 676 697 663 - 829 965 1060 1194 1219
2. School of Engineering 521 523 511 533 569 632 884 - 1058 1140 1182 1208 1327
3. School of Management 120 158 782 1127 1305 1355 1287 - 1760 1825 1965 2136 2204
4. School of Education 128 143 338 351 387 381 336 - 488 556 686 767 882
5. School of Arts 98 143 510 665 725 728 687 - 913 969 1091 1168 1258
6. School of Medical Science 586 642 3603 3819 4460 4944 4522 - 6262 7882 8725 9336 9675
7. Law 43 79
Total 2239 2476 6282 7107 8122 8737 8379 11200 11310 13337 14709 15852 16644
D. Purbanchal University
1. Humanities - 1978 957 1319 1228 719 728 728 751 746 663 591 503
2. Management - 1218 2412 3684 4026 4078 6579 6579 7947 8413 8447 7996 8077
3. Education - 2588 1436 2293 3013 3469 5955 5955 6967 5786 4692 3546 2960
4. Science & Technology - 200 282 3958 4575 4646 5759 5759 6054 6200 1705 1362 6033
5. Law - - - 399 377 343 692 692 822 799 786 810 925
6. Agriculture - - 656 - - - - - - - 421 755
7. Engineering - - - - - - - - - - 3964 3876
8. Medical (Nursing, BPH) - 5984 1158 1659 2286 9978 9978 4426 3776 3763 4603 6013
Total 6388 - 5743 12811 14878 15541 29691 29691 26967 25720 24441 23539 24511
E. Pokhara University
1. Science & Techonology 2481 2406 2516 2353 1727 3416 5027 6356 7355 9958 9958 10155 8686
2. Management 2064 2159 2974 2690 3722 4127 8030 10097 12674 15043 15048 15037 15106
3. Engineering - - - - - - - - - - - - 1970
4. Humanities & Social Science 69 101 125 100 120 95 1174 213 200 281 284 339 272
Total 4614 4666 5615 5143 5569 7638 13171 16666 20229 25282 25290 25531 26034
F. Lumbini Buddhist University - - - - - - - 17 17 116 256 215 196
G. B.P. Health Institute of
- - - - - - -
Health Sciences 1192 1155 1155 1435 351 950
H. National Academy of Medical
- - - - - - -
Sciences (Bir Hospital) 203 203 298 465 546 576
I. Patan health Science Academy - - - - - - - 60 65 60 241 295 415
J. Karnali Health Science Academy 170
K. Mid-Western University - - - - - - - - -
1. Humanities & Social Science - - - - - - - - - 913
2. Management - - - - - - - - - 993
3. Science & Techonology - - - - - - - - - 2472 1944 2522 255
4. Engineering - - - - - - - - - 296
5. Education - - - - - - - - - 501
L. Agriculture and Forestry University - - - - - - - - - 180 446 1565 3166
M. Far-Western University - - - - - - - - - 951 2461 1829 2642
Grand Total (A+B+C+D+E+F+G+H+I+J+K+L+M)
136000 121670 173175 159497 203529 208956 243557 179284 437564 678047 480891 374647 441461

Source : Tribhuvan University, Mahendra Sanskrit University, Kathmandu University, Eastern University, Pokhara University and University Grant Commission

94
Table 13.15 : Number of Graduate Students in TU
Fiscal Year
Indicators of Study and Research Programme 2008/09 2009/10 20010/11 2011/12 2012/13 2013/14 2014/15 2015/16
1. Institute of Engineering
a) Certificate level 2638 3850 463 624 554 650 - -
b) Diploma level 5208 8832 1053 1022 1089 1655 1924 2036
c) Master level 179 357 119 130 113 181 160 172
c) Ph.D. - - - - - 4 4 -
Total 8025 13039 1635 1776 1756 2490 2088 2208
2. Institute of Agriculture and Animal Science
a) Certificate level - - - - - - - -
b) Diploma level 124 125 128 172 292 144 183 226
c) Master level 57 71 81 81 97 116 81 26
d) Phd - - - 2 2 3 5 6
Total 181 196 209 255 391 263 269 258
3. Institute of Medicine
a) Lower level - 41 - - - - - -
b) Certificate level 289 598 303 303 263 289 286 -
c) Diploma level 182 175 481 400 920 890 846 1174
d) Master level 109 170 164 128 153 188 270
e) M. Phil 0 1 1 - - 3 3
Total 580 985 916 867 1311 1332 1323 1447
4. Institute of Foresty
a) Certificate level 74 82 79 87 - 51 - -
b) Diploma level 59 82 85 56 96 84 122 217
c) Master level 12 22 24 29 26 41 10 -
d) Phd - - - 2 2 - 1 -
Total 145 186 188 174 124 176 133 217
5. Institute of Science and Technology
a) Certificate level 1759 1971 1674 1781 929 - - -
b) Diploma level 1305 1971 2337 2532 2947 2429 3869 2534
c) Master level 377 575 692 764 993 1183 1206 1343
d) Phd 6 7 10 4 - 3 11 18
Total 3447 4524 4713 5081 4869 3615 5086 3895
6. Faculty of Law
a) Certificate level 0 25 29 - - - - -
b) Diploma level 329 255 215 223 477 445 523 797
c) Master level 41 32 30 23 47 35 46 47
d) Phd 2 1 1 - - 3 1 3
Total 372 313 246 246 524 483 570 847
7. Faculty of Management
a) Certificate level 3415 3739 1703 1386 1504 - - -
b) Diploma level 6187 9326 8652 14276 14976 11576 13369 23620
c) Master level 1110 2360 2676 1288 4004 2875 2601 3603
d) M. Phil 21 30 23 16 28 52 10 46
e) Phd 4 7 6 4 7 5 5 7
Total 10737 15462 13060 16970 20519 14508 15985 27276
8. Faculty of Education
a) Certificate level 3155 3249 2859 3793 2798 - - -
b) Diploma level 5455 12193 13089 22427 21073 16708 20941 24750
c) Master level 422 1151 1477 1931 5272 3529 3699 6644
d) M. Phil 7 9 9 11 12 24 9 10
e) Phd 4 2 3 4 2 2 6 5
Total 9043 16604 17437 28166 29157 20263 24655 31409
9. Faculty of Humanities and Social Sciences
a) Other 1921 653 - - - 32 - -
b) Certificate level 5919 6239 4654 5697 4654 - - -
c) Diploma level 5891 7160 6515 9605 8491 6547 7558 10089
d) Master level 1909 3620 3283 2361 6471 4337 4162 5636
e) M. Phil 0 10 - - - 91 64 103
f) Phd 37 32 40 32 - 45 43 43
g) Others 246 -
Total 15677 17714 14492 17695 19616 11052 12073 15871
Source : Ministry of Education/Tribhuvan University.
95
Table 13.16: Major Health Indicators and Achievements
Achievements Target
Health Indicators Unit
1991 1996 2001 2006 2009 2011 2015 2016 2017
Maternal mortality ratio Person 539.0 539.0 415.0 281.0 229.0 250.0 190.0 190.0 148.0
Total Fertility Rate Person 5.3 4.6 4.1 3.1 2.9 3.0 2.3 2.3 2.3
Adolescent birth rate (births per
Percentage - 127.0 110.0 98.0 - 98.0 71.0 87.0 66.0
1,000 women aged 15-19 years)
Contraceptive prevalence rate
Percentage 24.0 26.0 35.0 44.0 45.1 48.0 47.0 52.0 55.0
(modern methods)
Under-five Child mortality rate (per
Person 158.0 118.3 91.0 61.0 50.0 55.0 38.0 39.0 34.0
1,000 live births)
Proportion of one-year-old children
Percentage 42.0 - 71.0 85.0 85.6 - 88.2 88.0 90.0
immunised against measles
Infant mortality rate (per 1,000 live
Person 106.0 78.5 64.0 48.0 41.0 44.0 33.0 32.0 30.0
births)
New born infant mortality rate (Per
Person - 49.9 43.0 33.0 20.0 30.0 23.0 21.0 21.0
1000 live births)
New HIV Infection Number Person - - - - - - 1483.0 1331.0 1200.0
Access of PMTCT Service to
Percentage - - - - - - 30.0 35.0 40.0
Pregnant Women
New TB Case Detected Percentage - 48.0 70.0 65.0 71.0 75.0 82.0 82.0 83.0
Proportion of TB cases cured under
directly observed treatment short Percentage - 79.0 89.0 89.0 88.0 89.0 90.0 90.0 90.0
course (DOTS)
Annual Malaria Infected Number Person - - - - - - 1380.0 1260.0 1000.0
Proportions of Birth Attended by
Percentage 7.0 - 11.0 19.0 - 36.0 55.0 58.0 65.0
Skilled Birth Attendant
Source: Ministry of Health/NDHS Survey

96
Table 13.17: Number of Medical Specialists registered with
Nepal Medical Council as of January 2017
S.N. Discipline Male Female Total
1 Anaesthesiology 230 87 317
2 Anatomy 20 7 27
3 Bio Chemistry 12 13 25
4 Cardic Surgery 1 0 1
5 Cardiology 105 6 111
6 Clinical Pathology 86 98 184
7 Community Medicine and Public Health 74 29 103
8 Conservative Dentistry & endodontics 7 13 20
9 Ctvs 3 1 4
10 Dermatology & Venerology 100 69 169
11 E.N.T. 117 45 162
12 Emergency Medicine 4 0 4
13 Endocrinology 11 4 15
14 Forensic Medicine 22 4 26
15 Gastroenterology 31 1 32
16 General Practice 201 53 254
17 Geriatric Medicine 1 0 1
18 Hepatobilary Surgery 2 2
19 Hepatology 1 0 1
20 Internal Medicine 499 48 547
21 M.D.S. 144 87 231
22 M.S. (General Surgery) 443 26 469
23 Microbiology 21 21 42
24 Nephrology 15 4 19
25 Neurology 21 3 24
26 Neurosurgery 26 0 26
27 Nuclear Medicine 7 0 7
28 Obst & Gyne 163 372 535
29 Ophthalmology 122 134 256
30 Oral & Maxillofacial Surgery 25 5 30
31 Oral Pathology 1 0 1
32 Oral Science 0 1 1
33 Orthodontics 20 18 38
34 Orthopaedic 398 4 402
35 Pediatrics 316 108 424
36 Pediatrics Surgery 7 2 9
37 Pedodontics 0 3 3
38 Periodontics 6 7 13
39 Pharmacology 38 15 53
40 Physiology 23 16 39
41 Plastic Surgery 2 1 3
42 Prosthondtics 21 13 34
43 Psychiatry 98 33 131
44 Radiotherapy 4 5 9
45 Radiology & Imaging 220 59 279
46 Rheumatology 1 1 2
47 Surgical Oncology 19 0 19
48 T.B. & Respiratory 18 5 23
49 Transfusion Medicine & Tissuetypping 1 0 1
50 Urology 30 1 31
Total 3737 1422 5159
Source: Ministry of Health/NMA 97
Table 13.18: Details on Number of Senior Citizens Taking
Shelters at Elderly Homes in FY 2015/16
Currnet Number of Senior Citizens
S.N. Elderly Homes
Female Male Total
1 Social Welfare Center Briddhashram Pashupati, Kathmandu 109 80 189
2 Shree Galeshwor Senior Citizen Ashram, Myagdi 48 5 53
3 Tarkeshwor Briddhashram, Gulmi 46 5 51
4 Pokhara Elderly Home, Kaski 33 31 64
5 RadhaKrishna Briddhashram,Lekhnath,Kaski 28 17 45
6 Radha Damodar Senior Citizen Gram, Keladighat, Shyangja 23 9 32
Khoriaghat Senior Citizen Gram Shyangja Padambhuwaneshwor
7 Briddashram, Sarlahi
6 6 12
Siddhababa Durga Bhawani Shiva Kumari Shainju Briddhashram,Butwal,
8 Rupandehi
4 8 12
9 Shree Satya Sai Briddhashram Basantapur, Rupandehi 10 7 17
10 Lions Sarbodaya Jestha Nagarik Sewagram, Tarkughat, Lamjung 8 8 16
11 Padam Bhuwaneshwori Briddhashram, Sarlahi 22 17 39
12 Social Welfare Center, Devghat, Tanahun 22 10 32
13 Nisahaya Sewa Sadan, Baneshwor, Kathmandu 35 6 41
14 Nijananda Briddhashram, Taudaha, Kathmandu 11 2 13
15 Briddhashram Sewa Samiti, Sindhupalchowk 3 9 12
16 Matatirtha Briddhashram, Kathmandu 24 24
17 Bishranti Mandir Mulghat, Dhankutta 30 30
18 Mahila Tatha Briddha Sewa Kendra, Kanchanpur 40 15 55
19 Bheri Briddha Tatha Asahaya Sewa Kendra Banke 2 2 4
20 Om Briddhashram, Hetauda, Makwanpur 7 17 24
21 Birateshwor Briddhashram Sewa Samiti, Morang 26 24 50
22 Janaki Briddhashram, Janakpur 12 12
23 Mai Bhagwati Briddhashram, Ilam 8 4 12
24 Jestha Nagarik Samman Briddhashram, Patlaiya, Bara 5 6 11
25 Shree Ram Shanti Nikunja Mahila Sewa Anath Ashram, Sunsari 12 12
26 Ramjanaki Briddhashram, Sunsari 10 2 12
27 Manakamana Jestha Nagarikgram, Sankhuwashava 24 15 39
28 Prashanti Briddhashram Kendra, Uttarganga, Surkhet 7 6 13
29 Manab Kalyan Briddhashram Sewa Samiti, Gulmi 3 1 4
30 Sahara Care Center, Bhaktapur 16 8 24
31 Siddhi Saligram Briddhashram, Bhaktapur 24 8 32
32 Shree Sahayogi Saving and Service Center, Bhaktapur 34 17 51
33 Purbanchal Apanga Tatha Briddhaa Sewa Kendra , Sunsari 5 7 12
34 Siddhapokhari Jestha Nagarik Sewa Ashram, Phidim, Panchthar 3 5 8
35 Jestha Nagarik Sarokaar Kendra,Ghorahi, Dang 9 9 18
36 Briddha Sewa Samiti, Tulasipur, Dang 15 10 25
37 Manab Sewa Ashram, Hetauda, Makwanpur 31 34 65
38 Shiva Parwati Briddhashram, Ramdi, Shyanja 58 15 73
39 Rudrabeni Briddhashram, Ridi, Gulmi 46 4 50
40 Om Briddhashram, Darchula 7 18 25
Total 866 447 1313
Source: Ministry of Women, Children and Social Welfare
98
Table 13.19: Number of Service Recipients through Service Centers and Sub-
Centers operated for victims of Domestic Violence
Number of Operational Number of Operational Number of Service Recipients
S.N District
District Service Centers Community Service Centers 2014/15 2015/16 2016/17*
1 Jumla 1 4 59 18 43
2 Pachthar 1 5 114 18 164
3 Doti 1 6 210 57 43
4 Kanchanpur 1 5 210 48 80
5 Baglung 1 5 216 48 32
6 Sunsari 1 4 227 63 165
7 Solukhumbu 1 4 249 51 25
8 Nawalparasi 1 8 57 84
Kabhrepalan
9 1 6 126 62 76
chok
10 Makawanpur 1 6 179 86 171
11 Dang 1 8 48 41
12 Sarlahi 1 8 9 13 40
13 Saptari 1 8 75 71
14 Tanahu 1 6 82 17 18
15 Bardiya 1 8 40 43 36
16 Routahat 1 7 11 17
17 Pyuthan 1 6 238 62 249
Grand Total 17 104 1959 777 1355
* First eight months
99
Table 13.20 : Extension of Drinking Water and Sewerage Facilities
Fiscal Year
Description
Unit 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*
A. Additional Facilities Extended By Water Supply & Sewerage Department
Rural Area
a. Additional Population Benefited
In Thousands 190 124 160 500 224 265 315 162 335 268 308 350 403
from New Projects
14
b. Additional Population Benefited
In Thousands - - - - 67 82 54 - 42 73 70 42 42
from Repaired Projects 15

c. Total Available Water Thousands Lt/Day 8550 5580 7200 22500 19545 15615 16605 7290 20050 15345 17010 17640 18135
630
Urban Areas
a. Population Benefited In Thousands - - 10 100 260 191 16 - 83 - 11.5 196 109 110
Thousands
b. Available Water - - 1000 8000 28600 21120 1040 - 16000 - 1035 17640 10900
Lt/Day 11000
B. Additional Facilities Extended By Nepal Water Supply Corporation
a. Available Water Million. Lt/Day 3 4 18.1 3 7.5 2 4 9 16 7 15 3 3.01 2.79
b. Population Benefited Thousands Lt/Day 20 45 25 25 110 14 28 56 83 35 80 28 40 30
Source : Ministry of Drinking Water and Sanitation, Water Supply and Sewerage Department & Nepal Water Supply Corporation

100
Table 14.1 : Financial Perfomance of PEs
( Amount in Rs 100 Thousand)
Table (a): Operating Income and Operating Income Per Employee With the inclusion of
Fiscal Year Nepal Bank Ltd.
Sector
2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16
Manufacturing 48749 57439 61492 66280 64346 66280 64346
Trading 953141 1203647 1459597 1509305 1071846 1509305 1071846
Services 97531 106889 123150 127964 145554 127964 145554
Social 12173 12106 14336 14308 16264 14308 16264
Public Utilities & Others 532426 612985 641752 700029 730567 700029 730567
Financial 213908 239574 277846 286961 306520 343726 376398
Total 1857928 2232640 2578173 2704847 2335097 2761612 2404975
Operating Income per Employee 58.51 72.74 87.16 97.80 88.86 - 82.91

Table (b): Net Government Investments in Public Enterprises With the inclusion of
Fiscal Year Nepal Bank Ltd.
Sector
2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16
Manufacturing 91434 102451 108079 96914 88713 96914 88713
Trading 145988 146487 147795 152710 29451 152710 29451
Services 146074 146657 175509 206459 232786 206459 232786
Social 25638 26354 30663 36839 44956 36839 44956
Public Utilities & Others 1157002 1268946 1433434 1645631 1850506 1645631 1850506
Financial 101507 270941 250844 271242 251601 N/A 282132
Total 1667643 1961836 2146324 2409795 2498013 2138553 2528544

Table (c): Net Profit/Loss Details With the inclusion of


Fiscal Year Nepal Bank Ltd.
Sector
2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 2015/16
Manufacturing -12634 -5698 -7747 -6089 2472 -6089 2472
Trading -97650 -15534 -85903 150986 192470 150986 192470
Services 10758 14430 13448 14301 15187 14301 15187
Social -2868 -1856 -2 -1205 -1821 -1205 -1821
Public Utilities & Others 14141 65105 67020 95726 43239 95726 43239
Financial 53294 57558 63687 85507 69232 90345 98061
Total -34959 114005 50503 339226 320780 344064 349608

101
Table 15: Resources required for Sector-Wise Reconstruction and
Rehabilitation
Amount Required
S.N Sector as per PDRF (In Share (Percentage)
Rs. Million)
1 Agriculture, Livestock and Irrigation 26894 3.21
2 Cultural Heritages 33800 4.03
3 Commerce and Industry 11000 1.31
4 Communication 4939 0.59
5 Disaster Managment 4248 0.51
6 Education 180628 21.56
7 Electricity 15028 1.79
8 Employment and Livelihood 5878 0.7
9 Environment and Forestry 28451 3.4
10 Financial Sector 33472 4
11 Gender and Social Inclusiveness 4642 0.55
12 Governance 3065 0.37
13 Governemnt Buildings 29778 3.55
14 Health 17493 2.09
15 Rural Housing 286060 34.15
16 Urban Housing 90059 10.75
17 Nutrition 7461 0.89
18 Social 7758 0.93
19 Tourism 917 0.11
20 Transport 24924 2.98
21 Water and Sanitation 21247 2.54
Total 837742* 100
Source: PDRF, National Reconstruction Authority
*The total reconstruction and rehabilitation cost reached Rs. 938.0 billon after the preparation of
PDRF due to the government’s decision to provide additional amount of Rs. 100,000 to each
earthquake victim as housing grant.

102

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