|Non-retail synthetic staple fibers yarn|
|Synthetic filament yarn woven fabric|
Nepal, officially the Federal Democratic Republic of Nepal, is a Sovereign state located in South Asia. With an area of 147,181 square kilometers (56,827 sq. mi) and a population of approximately 27 million, Nepal is the world's 93rd largest country by area and the 41st most populous country. It is a landlocked country located along the Himalayas and bordered to the north by China and to the south, east, and west by India. Nepal is separated from Bangladesh by the narrow Indian Siliguri Corridor and from Bhutan by the Indian state of Sikkim. Kathmandu is the nation's capital city and largest metropolis. The mountainous north of Nepal has eight of the world's ten tallest mountains, including the highest point on Earth, Mount Everest. More than 250 peaks over 20,000 ft. (6,096 m) above sea level are located in Nepal. The southern Terai region is fertile and humid. Hinduism is practiced by about 81.3% of Nepalese, the highest percentage of any country. Buddhism is linked historically with Nepal and is practiced by 9% of its people, followed by Islam at 4.4%, Kiratism 3.1%, Christianity 1.4%, and animism 0.4%. A large portion of the population, especially in the hill region, may identify themselves as both Hindu and Buddhist, which can be attributed to the syncretic nature of both faiths in Nepal.
Nepal Bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern banking of the country. Nepal bank marks the beginning of a new era in the history of modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30th Kartik 1994 B.S. Nepal bank was established as a semi-government bank with the authorized capital of Rs.10 million and the paid -up capital of Rs. 892 thousand. Until the mid-1940s, only metallic coins were used as a medium of exchange. So the Nepal Government (His Majesty Government on that time) felt the need of separate institution or body to issue national currencies and promote the financial organization in the country. Nepal Bank Ltd. remained the only financial institution of the country until the foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank, Nepal Bank has to play the role of central bank and operate the function of the central bank. Hence, the Nepal Rastra Bank Act 1955 was formulated, which was approved by the Nepal Government accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the central bank of Nepal. Nepal Rastra Bank makes various guidelines for the banking sector of the country. A sound banking system is important for the smooth development of the banking system. It can play a key role in the economy. It gathers savings from all over the country and provides liquidity for industry and trade. In 1957 A.D. Industrial Development Bank was established to promote the industrialization in Nepal, which was later converted into Nepal Industrial Development Corporation (NIDC) in 1959 A.D.
|Agriculture||Pulses, rice, corn, wheat, sugarcane, jute, root crops & milk.|
|Manufacture||Carpets, garments, textiles, leather products, paper and cement, steel utensils, cigarettes, beverages and sugar.|
|Services (Including financial)||48.7% (2013 estimate)|
|Agriculture Development Bank Limited||Banking|
|Nepal Bank Limited||Banking|
|Nepal Oil Corporation||Oil|
|Verisk Information Technologies||IT|
|Non-retail synthetic staple fibers yarn|
|Synthetic filament yarn woven fabric|
Nepal Stock Exchange, in short NEPSE, is established under the company act, operating under Securities Exchange Act, 1983. The basic objective of NEPSE is to impart free marketability and liquidity to the government and corporate securities by facilitating transactions in its trading floor through the member, market intermediaries, such as a broker, market makers etc. NEPSE opened its trading floor on 13th January 1994. The government of Nepal, Nepal Rastra Bank, Nepal Industrial Development Corporation and members are the shareholders of NEPSE. The history of securities market began with the floatation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the first issuance of Government Bond in 1964 and the establishment of Securities Exchange Center Ltd. in 1976 were other significant development relating to capital markets. Securities Exchange Center was established with an objective of facilitating and promoting the growth of capital markets. Before conversion into the stock exchange, it was the only capital markets institution undertaking the job of brokering, underwriting, managing public issue, market making for government bonds and other financial services. Nepal Government, under a program initiated to reform capital markets, converted Securities Exchange Center into Nepal Stock Exchange in 1993. Members of NEPSE are permitted to act as intermediaries in buying and selling of government bonds and listed corporate securities. At present, there are 50 member brokers and 2 market makers, who operate on the trading floor as per the Securities Exchange Act, 1983, rules and bye-laws. Besides this, NEPSE has also granted membership to issue and sales manager securities trader (Dealer). Issue and sales manager works as manager to the issue and underwriter for public issue of securities whereas securities trader (Dealer) works as an individual portfolio manager. The tenure of the membership is one year. The license should be renewed within 3 months after the closure of the fiscal year. If not, it can be done within another three months by paying 25% penalty.
Nepal has been struggling to maintain macroeconomic balance for a couple of years now. Low growth rate, high unemployment, balance of payments deficit, ballooning trade deficit, and high and sticky inflation are some of the pressing existing macroeconomic challenges. Now, add to that list banking and liquidity crises—engendered largely by the bank and financial institutions (BFIs) themselves and to some extent by Nepal Rastra Bank (NRB), the central bank—and its disastrous consequences in and beyond the banking system. The NRB ignored the unhealthy competition, questionable lending to few sectors, and governance in financial sector. In doing so it let new BFIs pop up without even evaluating if the economy needs so many of them, and took damage control measures of late. Meanwhile, the BFIs engaged in unhealthy and imprudent lending out of desperation to survive amidst cutthroat competition, which is getting nasty by the day. The BFIs’ inability to effectively cope with the pressure to increase deposit and lending, and to attain unsustainable profit targets is leading to a situation where all profits are private but losses are social, i.e. taxpayers pay the cost of reckless business practices of the BFIs in the form of expensive rescue packages. Without deep structural changes in the banking industry, Nepal will see many ‘Northern Rock moments’ and eventually a disastrous ‘Lehman moment’ as well. The tendency to seek short term, quick returns against long term viability and sustainability is leading the BFIs in a path of self-destruction. For a healthy banking industry, Nepal needs fewer but stronger BFIs with sound corporate governance. Furthermore, there has to be an enhancement of regulatory and supervisory capabilities of NRB. The playing field has gotten unnecessarily congested amidst less than proportionate growth rate in the number of depositors’ vis-à-vis BFIs.
When Vibor Bikas Bank (VBB) knocked on the doors of Nepal Rastra Bank (NRB) on June 9, 2011 to either inject money in the development bank or to take over management, it rattled the banking industry and the already suspicious depositors. There were rumors and anticipation that due to excessive loan exposure to real estate, housing and construction sectors bank and financial institutions (BFIs) will land in the red sooner or later (Sharma, 2011). The sudden move by Vibor made depositors panic and policymakers scurry to find a way to avert a ‘Lehman moment’—the day when US investment bank Lehman Brothers collapsed (September 15, 2008) and triggered the global financial crisis that was ensured by the global economic crisis. In Nepal’s banking history, the rescue of Vibor is a ‘Northern Rock moment’—the day when the Bank of England extended emergency financial support to the troubled mortgage lender on September 17, 2007 and saved it from collapsing. The initiation of formal banking system in Nepal commenced with the establishment in 1937 of Nepal Bank Limited (NBL), the first Nepalese commercial bank. The country's central bank, Nepal Rastra Bank (NRB) was established in 1956 by an Act of 1955, after nearly two decades of NBL’s existence. A decade after the establishment of NRB, Rastriya Banijya Bank (RBB), a commercial bank under the ownership of the Government of Nepal was established. After the financial liberalization in the 80s, a third commercial bank in Nepal, or the first foreign joint venture bank, was set up as Nepal Arab Bank Ltd (now NABIL Bank Ltd) in 1984. Following this, two foreign joint venture banks, Nepal Indosuez Bank Ltd (now Nepal Investment Bank) and Nepal Grindlays Bank Ltd (now Standard Chartered Bank Nepal Ltd) were established in 1986 and 1987 respectively.
In 1983 and 1993 there were two and eight commercial banks respectively. By January 2006, there were 17, including joint ventures. There were 4 development banks in 1993, which swelled to 29 in 2006. Finance companies came into existence in 1992 and by January 2006, they numbered 63. Currently, there are over 308 BFIs, including 31 commercial banks, 87 development banks, 80 finance companies, and 21 microfinance institutions. The growth in number of BFIs is unprecedented and not warranted by the economic and banking fundamentals of the past decade. It was facilitated by near-retiring NRB officials, who turned a deaf ear to calls for clamping down on BFI’s growth, in hopes of landing on lucrative private-sector banking jobs. Without a proportional increase in depositor base and diversification of investment portfolios, the unnatural growth in the number of BFIs led to cutthroat competition in enticing depositors (institutional, government and individual) and borrowers. Buoyed by rising remittances, the former were incentivized to deposit cash at high interest rates rather than looking for alternative sources of investment, which is lacking right now due to political instability and various non-economic constraints. Meanwhile, the BFI sanctioned easy loans to real estate and housing sector borrowers without assessing their capacity to honor interest and principal payments in time. It led to rapid rise in demand for real estate and housing construction in urban areas and an escalation of its prices. When the abnormally high prices started to fall, the borrowers were unable to pay back interest and principal in time, leading to a shortfall of liquidity in the banking industry. Simultaneously, category B, C and D* BFIs were finding it hard to borrow more from category A BFIs because the inter-bank lending rate was almost above the average of BFIs’ normal lending rates. Worse, some BFIs have prepared a negative list to not lend money to BFIs which they think are on the verge of collapse. The liquidity crunch was, to a minor extent, also compounded by the government’s inability to mobilize development expenditure, the big institutional depositors’ decision to pull out mature deposits from fledging BFIs, and a slowdown in deposits growth rate.
A monarchy throughout most of its history, Nepal was ruled by the Shah dynasty of kings from 1768—when Prithvi Narayan Shah unified its many small kingdoms—until 2008. A decade-long Civil War involving the Communist Party of Nepal (Maoist), followed by weeks of mass protests by all major political parties, led to the 12-point agreement of 22 November 2005. The ensuing elections for the 1st Nepali Constituent Assembly on 28 May 2008 overwhelmingly favored the abolition of the monarchy and the establishment of a federal multiparty representative democratic republic. Despite continuing political challenges, this framework remained in place, with the 2nd Nepali Constituent Assembly elected in 2013 in an effort to create a new constitution. On September 20, 2015, a new constitution was announced by President Ram Baran Yadav in the Constituent Assembly. The Constituent Assembly was transformed into a legislative parliament. The new constitution established Nepal as a federal democratic country by making seven unnamed states. Nepal is a developing country with a low income economy, ranking 145th of 187 countries on the Human Development Index (HDI) in 2014. It continues to struggle with high levels of hunger and poverty. Despite these challenges, Nepal has been making steady progress, with the government making a commitment to graduate the nation from least developed country status by 2022.
The Unified Communist Party of Nepal (Maoist) won the largest number of seats in the Constituent Assembly election held on April 10, 2008, and formed a coalition government which included most of the parties in the CA. Although acts of violence occurred during the pre-electoral period, election observers noted that the elections themselves were markedly peaceful and "well-carried out". The newly elected Assembly met in Kathmandu on May 28, 2008, and, after a polling of 564 constituent Assembly members, 560 voted to form a new government, with the monarchist Rastriya Prajatantra Party, which had four members in the assembly, registering a dissenting note. At that point, it was declared that Nepal had become a secular and inclusive democratic republic, with the government announcing a three-day public holiday from May 28–30. The king was thereafter given 15 days to vacate Narayanhity Palace so it could reopen as a public museum. Nonetheless, political tensions and consequent power-sharing battles have continued in Nepal. In May 2009, the Maoist-led government was toppled and another coalition government with all major political parties barring the Maoists was formed. Madhav Kumar Nepal of the Communist Party of Nepal (Unified Marxist–Leninist) was made the Prime Minister of the coalition government. In February 2011 the Madhav Kumar Nepal Government was toppled and Jhala Nath Khanal of the Communist Party of Nepal (Unified Marxist–Leninist) was made the Prime Minister. In August 2011 the Jhala Nath Khanal Government was toppled and Baburam Bhattarai of the Communist Party of Nepal (Maoist) was made the Prime Minister.
Prithvi Narayan Shah
The rupee is the official currency of Nepal. The present rupee has the ISO 4217 code NPR and is normally abbreviated with the sign ??. It is subdivided into 100 paisa. The issuance of the currency is controlled by the Nepal Rastra Bank. Several other currencies are also called rupee. The Nepalese rupee is pegged to the Indian rupee. The rupee was introduced in 1932, replacing the silver mohar at a rate of 2 mohar = 1 rupee. Initially, the rupee was called the mohru in Nepali. Its value was pegged to the Indian rupee in 1993 at a rate of 1.6 Nepalese rupees = 1 Indian rupee. On 17 September 1945, the government introduced notes for 5, 10 and 100 rupees, with the name mohru used in Nepalese. There are also 25- and 250-rupee notes commemorating the Silver Jubilee of Birendra Bir Bikram Shah in 1997. Since 2007, Nepalese rupee banknotes have been produced by Perum Peruri, the National Mint Public Company of Indonesia. Between 1945 and 2007 Nepalese banknotes were issued with the portraits of four different kings. Starting in October 2007 the king’s portrait was replaced by Mount Everest on all notes which have been issued since. The early banknotes which were issued between 1945 and 1955 during the rule of King Tribhuvan were not put into circulation by a Central Bank which did not exist in Nepal at that time. The issuing authority was the treasury which had the name Sadar Muluki Khana. Therefore, the notes of king Tribhuvan were not signed by a bank governor, but by a Kajanchi (head of the treasury) who was a high Hindu priest in the same time. Nepal’s early paper currency probably includes the only notes of the world which were signed by a high priest. These early notes were printed by the Indian Security Press in Nashik and do not have any security features, except for the watermarks and the special paper on which they are printed.
Starting with King Mahendra who succeeded to his father Tribhuvan in 1955, the banknotes were issued by Nepal Rastra Bank (Nepal National Bank) which was founded in April 1956. The signature of the governors of this institution is found on the banknotes which were issued after this date. Under King Mahendra, the Nepalese Government became “His Majesty’s Government” (expressed by "shri 5 ko sarakar" which literally means “the government of the five times honored”) and remained this way during the rule of Birendra and Gyanendra. Two series of banknotes were issued during the rule of king Mahendra: The first series shows the king in civilian clothes wearing the Nepalese “topi” while on the notes of the second series the king is shown in military uniform. The second series comprised for the first time notes of the high value of 500 and 1000 rupees. During King Birendra’s rule, one can also distinguish between two major series of banknotes. The first series features the king wearing the military uniform while on the notes of the second series the king is wearing the traditional Nepalese crown adorned with feathers of the bird of paradise. During this period regular banknotes of 2 and 20 rupees and special banknotes of 25 and 250 rupees were issued for the first time. The banknotes issued during this period have the same basic design as those of King Birendra whose portrait was simply replaced by that of his younger brother and successor Gyanendra. The low values of 1 and 2 rupees, and the special values of 25 and 250 rupees were not issued anymore.
The legends found on the last issues of Gyanendra revert to Nepal sarakar (“Nepalese Government”), thus omitting the reference to the king. In October 2007, a 500 rupee note was issued on which the king’s portrait was replaced by Mt. Everest. This reflects the historical change from kingdom to the republic which took place in May 2008 in Nepal. Further notes of 5, 10, 20, 50, 100 and 1000 rupees with Mt. Everest and without reference to the king in their legends followed in 2008. The first issues of the 500 and 1000 rupee notes were printed on paper which still had the king's crowned portrait as a watermark in the "window" on the right part of the face of the notes. It was decided to print a red Rhododendron flower (Nepal's national flower) on top of the watermark. Notes of these denominations which were issued in 2009 and thereafter are printed on paper which has a Rhododenron flower as watermark instead of the royal portrait and were therefore released without the additional overprint in red. In 2012, Nepal Rastra Bank issued a revised banknote series that are similar to the 2007 series, but now include inscriptions in English and the date of issue on the back. The currency unit of the Tribhuvan and early Mahendra notes was the mohar (spelt moru on the banknotes), which originally was a silver coin which weighed about 5.4 grams and represented about half an Indian Rupee. The later notes of Mahendra and the issues of the subsequent rulers Birendra and Gyanendra were issued with the denomination rupee. The banknotes with the portrait of King Tribhuvan were printed in Nashik (India). The later issues were supplied by firms such as De La Rue and Giesecke & Devrient.
|National Song||"Sayaun Thunga Phool Ka"|
|Currency||Nepalese rupee (NPR)|
|GDP / GDP Rank||71.525 Billion USD|
|GDP Growth Rate||3.4 Percent|
|GDP Per Captial||$2478.939 (PPP)|
UTC+05:45 (Nepal Time)
< 1.0% Christians
< 1.0% Jews
< 1.0% Other Religions
President – Bidhya Devi Bhandari
Prime Minister – Khadga Prasad Oli
|Website||Go to the web|
|Public Debt||27.27 Percent|
|Unemployment Rate||3.213 Percent|
|Labor Force (Occupation)||-|