Writer's Pit

Nepal is such a place where entrepreneurs are seen to be doing and giving their best but they lack originality. If someone either a group or a corporate or a business firm is found to be doing well in a specific sector, every this and that investors turn towards that particular business. And when a business is flourishing, everyone tends to do that very business until none of them could resist the competition.

Some decades back, we have seen a large number of private schools on the rise. In the beginning phases, they all made enough money. The number of schools being established at that time was very high. At present they don’t seem to earn as many of those schools are out of existence and some of them are providing low quality education. In the initial stages all those schools had a quality education in offer because the competition was getting tougher.

After the schooling business, every one turned up to start a plus two college. This particular investment also yielded enough profit for quite a while. Some teachers and lecturers used to form a group and instantly started a new plus two college. Not all but some of those plus two colleges were really ridiculous with only two rooms with no adequate facilities but those colleges have already vanished.

After schools and colleges, at present there are educational consultancies. In some places there are unbelievably large number of hoarding boards with fancy graphics and attractive schemes. These educational consultancies have also made enough money which doesn’t require large capital and this business is doing quite well at present.

Another sector which is getting high attention is housing and real estate business. This investment however requires a big sum of capital and mostly cent percent of the commercial banks are involved in this business. However, this investment doesn’t seem to be good in the long run. There are already a number of housing colonies, apartments, condos, villas luring customers which include both local as well as expatriates with attractive financial schemes and the topmost facilities that a house has to offer.

This particular investment however can lose its charm in the very near future but as of now, housing and real estate have been the most fruitful investment.

While the rest of the developed countries are facing credit crisis, Nepal remained untouched for quite sometimes. The international recession had nothing to do with the local share markets and thus the nepali economy was referred to as an insulated economy. The banks are doing fine, the gold market is upto date with the international market but the economy has been terribly hit by load shedding.

Nepali labours are among the cheapest labours and most of the nepali people are engaged in jobs overseas. With the down fall of the finance in such job providing nations, the internal remittances have also been hit hard. Of the total revenue collection, foreign employment contributes seventeen percent of the whole and this has caused some trouble with the local economy.

Leaving the remittance, load shedding has been the main factor which is pushing the economy to the lowest. Sixteen hours of load shedding a day had caused a severe pain in industries and the likes. The lack of consistent power supply has caused many industrial operations to a complete halt which means no productions at all. If there’s no production, how can the industries possibly sustain? How and what could an industry produce in a limited time of eight hours?

The government has failed to deal with this terrible disaster and thus the economy is in a shaky state. If the load shedding continues, it is for sure than a number of industries would be forced to shut and hundreds and thousands of jobs would be lost. The government then would have to deal with the unemployment problem as many people working abroad have been sent back home due to their own economic crisis.

The only option here with the government is to purchase electricity from the neighboring countries for the time being and help run the industries smoothly. Apart from purchasing electricity, there’s no any options left if not to let the economy tumble.

Nepali economy is insulated, it may be true but with the current circumstances, the economic turmoil seen in the developed nations coincides with the local economic turmoil. If not seen a direct relation of the local economy with the international economy, the turmoil has affected the nepali economy proportionately.