EMBASSY OF NEPAL, YANGON, MYANMAR

ECONOMY, INVESTMENT, TRADE
ECONOMY

Nepal's GDP grew by 4.0 per cent in 2009, after 4.7 per cent growth the previous calendar year. Inflation in 2009 was 13.2 per cent. Average annual population growth over the past decade was 2.3 per cent. Over 80 per cent of the economically active population lives in rural areas and support themselves through subsistence agriculture. The contribution of agriculture to Nepal's GDP remained below 40 per cent during 2007-8. Growth in public utilities, Investment & Trade and Tourism has been on the rise. Since the country is still at an early stage of industrial development, the share of the industrial sector in the national economy is low. The contribution of the industrial sector to GDP is around 9 percent.

INVESTMENT

Government has taken steps to restructure the economy by introducing measures such as tax reform, massive privatisation of public enterprises, dismantling Investment & Trade barriers, liberalising the foreign exchange system and fostering the industrial potential of the country, particularly for export-oriented industries. Nepalese water resources has been opened with liberal policies for Foreign Investment at a time the world is passing through energy crisis and looking for alternative and renewable energy resources which also help to combat climate change and Global Warming. Nepal has entered into a new era of development with open, liberal and transparent economic policies. Giving high priority to foreign direct investment in Nepal, the government of Nepal has pursued pragmatic, one window and outward looking investment policies. As identified by the Government, there are two potential growth areas for Nepal- hydropower and Tourism . Policy reforms have further opened up the hydropower and Tourism sector to foreign investment. Water resource is the vital natural resource in Nepal. 6000 rivers and rivulets flow in the country throughout the year. There was an estimate many years back that major rivers in Nepal had the combined capacity to generate 83 thousands MW of electricity, of which less than one percent has so far been exploited. But now there are estimates that this potential is much higher than the earlier calculations. Similarly, because of the scenic and geological beauty of Nepal, there is tremendous prospect of investment in the Tourism sector.
Nepal started liberalizing her economy with a wide range of economic reforms in late eighties and early 1990s. Reforms have been instrumental in making the economy more investment friendly. Transparent one window type and export oriented investment and Investment & Trade policies have provided sound base to investment. Economic Reform policies have paved the way for the establishment of joint venture banks and private financial institutions as well. The liberalized measures have encouraged the private sector to actively participate in economic activities and limited the government role to a facilitator.

TRADE

Nepal became a member of World Trade Organization (WTO) in 2004, the first least-developed country (LDC) to join the WTO through the full working party process and is in process to amend or adopt certain laws and regulations consistent with WTO requirements. This has expanded the investment and Investment & Trade environment of Nepal. Nepal's Investment & Trade with the world has been in deficit particularly her Investment & Trade deficit with neighbouring countries India and China is comparably huge. Major exports from Nepal:Hand knotted woolen Carpets, Jute and Jute products, Orthodox and other varieties of tea, Hides and Skins, Pulses, Vegetable Oils, Oil Cakes Niger seeds, Catechu, Ginger, Handicrafts, Silver wear and Jewelery. Major Imports to Nepal: Machineries and Parts, Petro Products, Raw wool, Transport equipment, Vehicles spare parts, Pharmaceuticals, Fertilizers, Thread, Electrical goods, Textiles, Soybean Oil, Billets etc.

Nepal's GDP grew by 4.0 per cent in 2009, after 4.7 per cent growth the previous calendar year. Inflation in 2009 was 13.2 per cent. Average annual population growth over the past decade was 2.3 per cent.Over 80 per cent of the economically active........... More »

Government has taken steps to restructure the economy by introducing measures such as tax reform, massive privatisation of public enterprises, dismantling Investment & Trade barriers, liberalising the foreign exchange system................................. More »

Nepal became a member of World Trade Organization (WTO) in 2004, the first least-developed country (LDC) to join the WTO through the full working party process and is in process to amend or adopt certain laws and regulations consistent........... More »