This was stated by business experts, petroleum entrepreneurs, and officials of the Nepal Rastra Bank at an interaction on the topic of 'Conflicts in West Asia: Impact on Nepal's Economy and Supply Chain' organized by the Nepal Association of Economic Journalists (NAFEJ) on Tuesday.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
Experts have said that the conflict in West Asia will have a direct impact on Nepal's economy and supply system. They say that Nepal's economy cannot be separated from the world market and when the world market is affected, its impact will reach the Nepali economy.
This was stated by business experts, petroleum entrepreneurs and officials of Nepal Rastra Bank at an interaction on the topic 'Conflict in West Asia: Impact on Nepal's Economy and Supply System' organized by the Nepal Association of Economic Journalists (NAFEJ) on Tuesday. The speakers participating in the program emphasized that Nepal should pay attention to various issues due to the conflict in West Asia.
At the program, petroleum entrepreneur Shiva Prasad Ghimire said that there will be no immediate shortage of petroleum products. 'From time to time, Nepal has been facing shortage of petroleum products due to various reasons. Therefore, when conflicts occur in various countries, a kind of fear of shortage spreads in Nepal as well,' Ghimire said. 'In such a situation, it is natural to be scared even looking at past practices. However, looking at the overall situation, there is no immediate shortage of petroleum products.'
He argues that although the current conflict will reduce production and cause problems in the supply chain, it will not immediately affect Nepal. He says that the fear of a gas shortage has spread among the public just a few days ago, and that there is a fear that there will be a shortage of fuel altogether.
Similarly, commercial expert Ravi Shankar Sainju said that Nepal should learn lessons from the conflicts in the Middle East and West Asia. 'The main issue is how the Asian conflict will affect Nepal's economy and what we should learn from that incident. In fact, we should learn the lesson that events in other countries affect the economy and adopt the path of security,' said Sainju. 'We should understand the impact of events in other countries on our economy and move forward.'
Similarly, Ram Sharan Kharel, Executive Director of Nepal Rastra Bank, said that the conflict in West Asia has once again added challenges to Nepal's economy. "Before the economic situation returns to normal due to the Corona pandemic, geopolitical tensions, floods and landslides, and now the conflict in Iran seem to affect the economy again," Kharel said. "The economy was expected to stabilize after the formation of a new government in the upcoming elections, but this conflict has added another challenge."
According to him, the economy was on the path to stabilization after the Gen-G movement. Kharel said that the conflict in the Middle East has added another challenge at a time when there is excessive liquidity in the banking system, interest rates of banks and financial institutions are low, and liquidity management is expected after the new government comes to power.
At the program, Nafiz President Menuka Karki said that the conflict could have a long-term impact on Nepal's employment and income. "The conflict is likely to have a major impact on the price of petroleum products and the supply system of other consumer goods," Karki said. "Nepal's petroleum products are completely dependent on India. India imports crude oil from Iran and Middle Eastern countries." She said that if those countries are involved in conflict for a long time, it is impossible to say that Nepal will not become a victim of it.
