The cost of undermining economic challenges

There is no sign of ending the Russia-Ukraine war and the entire globe has already started to face the adverse impact of the war. The Western countries, despite playing a role in ending the war, are trying to prolong it by humiliating Russia. Russia, a nuclear power country may use advanced and devastating arms in case it will be isolated and pushed back to a “do or die” state.

Already, the UN and the World Programme have warned about the scarcity of food and famine around the globe due to the prolonged war. Many European countries have started to face an acute shortage of petroleum products. Nepal is not aloof from the adverse impact of the war. The Nepali economic observers have already warned about the economic crisis in the country, however, the political leaders in power don't see any crisis. Just recently, Maoist Center chairman Pushpakamal Dahal remarked that Nepal’s economy is out of the crisis. Similarly, Finance Minister Janardan Sharma Pravakar believes that Nepal’s economy is not the worst as described by some “sponsored” media. In the meantime, Mahaprasad Adhikari, governor of the Nepal Rastra Bank, said that there should be a sufficient source of foreign currency reserves from which the nation can import goods. If the present trend of imports will continue and the foreign currency reserve will continue to decline, the central bank should take strong steps, the governor informed. The governor has described the possible economic crisis in the country.

The trend of our students going abroad for education has increased. Nepal is providing necessary foreign exchange for the study of the students; the trend of importing luxury goods from foreign countries has not declined despite the Bank’s restriction. The prime issue is that the government is unable to receive the remittance revenue through the formal channel as the informal channel is paying a higher amount of commission to those who are sending remittances to Nepal. Due to the high demand for foreign currency, the informal channel has become more active than the formal channels. The government, by devaluing its currency, can attract those Nepali nationals abroad for using formal channels but the government cannot dare to do it as it will face an additional burden in repaying back the foreign debt.

The government has made big talks about encouraging farmers to increase agricultural products within the country and become selfreliant in this sector but the plight of the local farmers is that they are unable to get fertilizer in the market and they are compelled to use fertilizer in the black market. Compared to the Indian farmers, the Nepali farmers are not getting subsidies from the government.

The government talks about replacing petroleum-consuming vehicles with electric vehicles but in practice, it is unable to give discounts on imports of such e-vehicles. Just recently, the Nepali entrepreneurs were compelled to dispose of electric buses in India as the price of them was more expensive than the diesel operating buses.

The government is talking about the use of electricity for domestic as well as industrial use but 65 percent of the industries are facing electricity load shedding compelling them to operate industries by using petroleum product consuming generators. Odd to notice that Nepal is exporting electricity to India by cutting down it to the local industries.

The government could encourage local industries by supplying them the electricity at a subsidized rate but it is intended to supply electricity to India at the rate offered by the latter by cutting down electricity to the local industries.

When the leaders and bureaucrats become foreigners’ agents and business dealers, we cannot achieve the dream of becoming a selfreliant nation. Instead, we are going to become the slave of the foreign powers and serve them by exploiting the nation’s resources.

Needless to repeat again and again that in the name of an “offensive move” we have adopted an expensive system feeding thousands of white elephants in seven provinces. Already, the nation is under the trap of foreigners in the name of the “offensive move”. If we continue the present political system, sure, we are going to be bankrupt sooner or later.