KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
This highlights various issues impacting Nepal’s development, from delayed infrastructure projects to economic opportunities and challenges.
The stalled expansion of the Kathmandu Ring Road, despite agreements with China, underscores inefficiencies in large-scale projects and governance.
At the same time, the story of bamboo farming in Dhankuta exemplifies a sustainable and low-maintenance income model that supports local livelihoods.
Meanwhile, the government’s failure to settle billions in payment liabilities has hindered key sectors like agriculture and healthcare, exacerbating economic challenges.
The cable car controversy in Taplejung further exposes tensions between development and community rights, while the success of orange farming in Baglung shows that, even amid challenges, Nepal’s agricultural sector remains resilient.
These diverse examples underscore the need for effective governance, better financial management, and a balance between development and local interests.
Delayed Ring Road Expansion: Govt eyes Chinese contractors
The Chinese government completed the first 8-lane section of the Koteshwor-Kalanki 10.39-kilometer ring road, handing it over to the Nepal government in 2075 BS.
Following this, an agreement was made between the two countries to build the second section, an 8.2-kilometer stretch from Kalanki to Basundhara. However, construction has yet to progress, even six years after the agreement.
Previously, the Chinese side had raised concerns about site clearance for the expansion.
An official from the ring road project confirmed that clearance has now been completed, allowing work to proceed.
As per the agreement, Nepal is focusing on completing the construction of the service tracks on both sides of the main road within the current fiscal year.
Bamboo Grove: A ‘Money Tree’ providing generational income
Rewat Kumar Bantawa never expected that the bamboo groves planted by his parents half a century ago would generate a steady annual income of five to seven lakh rupees for his children and grandchildren.
For Bantawa, a resident of Shahidbhumi Rural Municipality-2, Ankhuwa, Dhankuta, the bamboo grove has proven to be a reliable source of income.
Unlike other cash crops or fruit/vegetable farming, bamboo farming requires no investment or maintenance. Bantawa says, “There are many people like me who grow bamboo here in every house.”
With minimal effort and no risk of spoilage or pests, bamboo farming has become a dependable livelihood for the Bantawa family.
Govt’s failure to settle billions in payment liabilities hampers economy
The government has failed to pay off the billions of rupees owed due to its own policies and programs, resulting in a growing financial burden.
This delay in payments is not only increasing the government’s liabilities but also disrupting essential services.
Farmers providing agricultural products and hospitals offering treatment services have been particularly affected by the government’s inability to settle payments, contributing to a slowdown in various sectors of the economy.
Controversy over cable car construction in Taplejung intensifies
Tensions have escalated following the start of cable car construction by Chandra Dhakal’s company in Taplejung’s Pathibhara-Mukkumlung area, which includes the use of a bulldozer on the slopes.
On Saturday, four people were seriously injured when the police opened fire, sparking national debate over the project.
The Limbu-Kirat community has raised concerns about the encroachment on their historical Mundhumi site and opposed the construction of the cable car.
Meanwhile, Phungling Municipality has issued a statement urging talks to resolve the issue while emphasizing that the cable car project should not be halted.
Baglung earns Rs 264.6 million from orange sales
The orange production in Baglung district this year is valued at Rs 264.6 million.
Although production has slightly decreased, farmers have benefited from higher prices compared to the previous year.
The total output dropped by 28 metric tons from last year, but the income for orange farmers increased by Rs 18.6 million, thanks to higher selling prices this year, stated Santosh Adhikari, Information Officer at the Agricultural Knowledge Center in Baglung.
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