Covid-19’s Impacts on Nepalese Economy with Developing Economies:
Empirical Evidence
Manoj K. Chaudhary Ph. D.
Associate Professor
Central Department of Management, Tribhuvan University
Abstract
The paper investigates and explores experts‘ opinions regarding the post pandemic control strategies within South Asian perspective to make the Nepalese economy robust. The study is based on qualitative methods of analysis and method of the study has been classified into two parts: Primary & Secondary. For secondary, data were collected through published reports, journals articles, daily national newspaper, media and TV coverage & personal observation and experienced.Whereas, for primary data, the study was carried out considering the way to control the post pandemic effects on developing economies particular in Nepal. The result of the study depicts that the post control of covid-19 effects on economic revival policies should prioritize sectorial concerns on the agriculture and industry sector of the economy over service sector and remittance. Therefore, for the pandemic recovery issue, the government and private sector‘s role is to jointly solicit a PPP model (Public, Private, Partnership) for the firm relief of economic stability. Thus, the paper concludes that there is an urgent need to prepare the post control strategy to minimize the economic vulnerability. In this situation, Nepal needs strategies for good governance rather than complex and mysterious plan.
Keywords:Covid-19, Pandemic, Impacts, Strategy, Developing Economies 1. Introduction
The Economic slump due to the overwhelming effect of COVID -19 Pandemic has triggered the need to take safety precautions and secure anenvironment of an efficient utilization factor of the world economy for it to survive revive and sustainitself as a whole. The global pandemic has forced a new type of recession which is different from its previous forms. Global recession was as bad as the global financial crisis that occurred during the period of 2007 to 2008 (Georgieva, 2020). Similarly, the Asian debt crisis of 1997 occurred due to the devaluation of Thai Bhat in July 1997. The collapse of the value of Thai Bhat had created a panic that caused a Financial and Economic recession in the Asiatic region (Radelet and Sachs, 1998). Moreover, the global financial crisis in the year 2008 – which was ultimately translated to a recession – was caused due to weak Monetary and regulatory policy and structure. (Allen and Carletti, 2019). Likewise, the recession in Greece in 2010 and Nigeria in 2016 emerged due to the cause of deficit balance of payment, fall in the price of crude oil, fixed float exchange rate, structural weakness etc (Rady,2012). However, the ongoing covid-19 pandemic is totally different and is another cause of the 2020 economic, financial and health crisis. It has caused huge recession across the world.
The outbreak of the corona virus has forced the mankind to maintain social distancing which has affected almost all parts and structures of the societies such as socio-culture, financial structure, economic status etc globally (Mahar,2020). If viewed properly, the economically strong countries like the USA, UK, France, Spain, Italy, India and China and many other developed and developing nations are at the verge of economic and financial crisis.
Covid-19 pandemic has been first seen in China, Wuhan and eventually, the virus turned out to become one of the most critical challenges that brought many casualties and distress in people‘s styles of lives and disrupt various sectors of the economy (Larry Elliot, 2020; Horowit J, 2020).
The world is now facing utmost problems after the Second World War in terms of economic depression. Covid-19 has created a far worse situation than the Global Financial Crisis (Elliot,2020) which had comparatively less impact in Asian economies (Poudel, 2020). However, the impact of the ongoing pandemic in the Asian region, in particular South Asian region, is an inevitable one. The severe disruption on lives cost by corona virus has not only been destructive, but it has also been a spillover of practical implications that created supply and demand shocks in all parts and structure of the world (Mohar,2020) and every area of human endeavor (El- Erian,2020/ Peterson ad Thrkooy,2020).So, at this onset, the ongoing novel corona virus pandemic has thus left an unprecedented socio-economic effect globally and even on the south Asian region. Nepal is also not isolated from this, though the SAARC countries witnessed a slow spread on virus in the initial days. However, the virus has been increasing exponentially as of recent. In the light of these pandemic issues, like other countries, Nepal has also undergone a nationwide lockdown —imposed on 24th March 2020. Till date, the spread of Corona virus has shattered the supply chain and economy, cancelled Visit Nepal 2020, caused a decline in remittance income, left many people jobless, halted educational and all types of business activities and forced a large number of Nepalese people into poverty. At this moment, it is imperative to think about the spillover impact of Covid-19 in Nepal‘s context within the South Asian perspective. This is because Nepal is a landlocked and least developed country in South Asia which is bordered by China in the North and India in the South, East and West. It is also largely dependent on trade with India. Similarly, getting remittance from its neighbor countries is likely to impact its economy as the regional country‘s economy is heading towards uncertain future like the global economy itself. Therefore, this paper focuses on what‘s likely to be the impact of Covid-19 pandemic on the economic environment of Nepal — even though it is difficult to show this properly as many things are on the verge of vulnerability after this lockdown. Similarly, the paper also investigates and explores experts‘ opinions regarding the post pandemic control strategies within South Asian perspective to make the Nepalese economy robust. While responding to save lives of the people, the result and analysis of this paper is to some extent aimed to contribute to the literature of (Ozili,2020; Jagannathanetal, 2013; Stiglitz, 2010; Bentolilaetal 2018) the implications for future recovery plan for economic and financial stability during these unprecedented times.
Keeping these views in to consideration in the light of mentioned literature here, it is reasonable to say that covid-19 which was originated from china has changed the reality of globe. It has affected the entire economy and its variables globally, and Nepal is not far from its effects. But despites the reality, there is dearth of research in Nepalese context noticed by the researcher.
Therefore, this research topic has been selected as an appropriate context for the research because there is rare study found on negative impact of covid-19 on Nepalese economy with south Asian perspectives. So, this study is one of the first to find expert opinion to support for strategic response about post pandemic control. Thus, the paper has mainly concentrated its focus on collecting and presenting the real picture of Covid-19‘s negative impacts on the Nepalese economy with a South Asian perspective. Similarly, the paper highlights the experts‘
opinions for the strategic move on post pandemic control mechanism in Nepalese economy and finally, concluding remarks for policy-based response and future implications.
2. Covid-19 and Negative Impacts on Nepalese Economy
Due to COVID-19, the world economy has been facing severe problems related to health and economics for the past six months. This has proven to be more costly as compared to such impacts in the past. Almost all countries and companies all across the globe have been under such an impact and facing severe challenges of survival and sustenance (Poudel, 2020;
Koonin,2020; Mckibbin and Fernando,2020). While companies have to respond with the negative effects of the ongoing Covid-19 pandemic,questions arise as to how countries survive, revive and sustain their economic activities by considering the welfare of its people. At this onset, it is wise to observe the very remarkable consequences of overwhelmed effects of the pandemic on lives of people in the world due to the spillover impact of Covid-19, which has been seen mostly in every sectors globally (Ranasinghe, 2020; Poudel, 2020;Addison, etal;2020;
Louschan, 2015; The Guardain,2020).
In this context, every nation is tied into a global economy through trade and investment across the world and Nepal is not far from its effects. Therefore, destruction among all sectors of the economy is inevitable and the supply chain may be disrupted globally. According to The World Bank‘s statement on June 2020, there is risk in South Asian region of a long lasting rise in poverty: especially amongst the low income level countries due to the Corona virus pandemic.
The South Asian region has basically a high share of workers employed in the informal sectors (Katmandu post, 2020). Amongst those in this region, Nepal will be hit the hardest due to decline in tourism, remittance, open border issues, poor outer structure and land-locked disabilities.
Therefore, several problems caused by the Covid-19 pose serious threat to the developing economy. It is imperative to understand the pandemic‘s impacts in the Nepalese economy and explore the ideas about how to robust its economy if for once Covid-19 pandemic is controlled.
The novel virus Covid-19 has been spreading in almost all countries globally and has left an adverse socio-economic impact and Nepal is no exception. Its first case in Nepal was seen in January. After that, the number of Covid-19 patients and its impacts in other sectors is increasing
day by day. The impacts of Covid-19 pandemic vary from region to region and country to country because of its own culture, mechanism, circumstances, infrastructure, health facilities and capacity to respond with the virus (Poudel,2020). The impacts of the pandemic is almost seen everywhere and has also been felt by everyone, but not equally (Kathmandu post,2020).
Similarly, economic and financial loss caused due to Covid-19 would however vary across countries because the effects largely depend on size and structure of the economics, maturity of the financial system and its approach to deal with the virus.
In order to facilitate the daily lives and reactivate economic activities initscountry, the Government of Nepal decided to ease the pandemic lockdown from 11th June 2020. This was aimed atmomentarily enhancing market and economic activities that have been completely halted since the nationwide lockdown.The halt was imposed on 24th march 2020 to prevent the spread of the Novel corona Virus Pandemic. Moreover, as far Nepalese economy is concerned, it is largely dependent with India. Its treaty with India in 1950 marks Nepal as an open border country which is land locked and least developed. In India, it has been estimated that four percent of GDP amounting Indian currency of Rs 2100 Million will be lost during the 21 days of lockdown period. The loss will further increase accordingly if it is extended. Furthermore, about more than 100 Million workers will lose their jobs in different sectors (Singh,2020). As per the Asian development report, the Novel Corona virus has already started to make its impact on almost every sector in Nepal as all economic activities are stuck. Mainly,thetourism sectors have been hit hard by the outbreak of the pandemic. Due to this, Visit Nepal 2020 got cancelled and it has proven to be one of the most important economic deadlocks for Nepal till date. The outbreak has also affected remittance income, which is considered as an important sector of the nation‘s economy. The money that labor migrants sent back in 2019 contributed a sum of 26 percent to the total national income. However, in two and half months, the remittance incomes‘
contribution has been less than one percent in the country‘s GDP. In the present situation, no sector is far from a pandemic outbreak effect (ADB,2020).Similarly, the whole scale and retail sectors contributed significantly about 14.37 percent to the economy in 2019, but these sectors have already beenmassively affected by the lockdown at present. There has been some drastic downfall in imports from third world countries due to the pandemic‘s worldwide effects.Most of the manufacturing output produced in a country has dropped sharply with a decline in their demand due to the lockdown and its restrictions as well as health preventive measures (Kathmandu Post,2020). Due to this, every banking and education sectors etc. are undergoing the negative impacts of theCovid-19.
Fig.1:GDP Growth rate: Nepal (% per Year)
Source: Government of Nepal (2020)
The figure depicts that Nepal had only achieved an average economy growth of about 4 percent until 2015 because of several reasons like political instability, Maoist insurgency, lackluster foreign investment, weak infrastructure, low electricity production and alike. However, after 2015, the country achieved more than 6 percent of economic growth for the last 3-4 years with a target of 7 percent in 2020-21. But the global pandemic shock tends to disrupt Nepal‘s plans and achievement.In the light of these issues, the data regarding economic losses that will occur in south Asia (including china as well) due to the spread of covid-19 that was collected from the report ADB is presented hereby.
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
4.6 3.8
5.7 3
0.2
7.7 6.3
6.7
7.1
Economic growth expected 7 percent in 2020-21
.Fig.2: Projection of economy loss
Asian Development Bank (ADB) has projected that one of the most serious economic loss may occur in Nepal due to pandemic effects. So based on that, it can be presumed that a decrease in GDP an economic growth is an inevitable one in Nepal due to its land locked, open border, remittance and tourism based economy.
For instance:
• Remittance inflow FY 018/19 stand at Rs. 879.27 billion (25% of GDP) – (NRB, 2019)
• Remittance consumption after rate 58.2% (after Corona) from 79 % (NLSS III 2010/11
• Remittance down fall to Rs. 176 billion in FY 019/20 (Projected by CBS, 2020)
• Nepal Loss of GDP after locked down till two months 62 Rs. Billion (2% of GDP)
• Nepal‘s loss of Revenue collection as of April 198 billion (GON)
As far as Nepalese economicsis concerned, foreign employment has not only been addressing the country‘s unemployment issues but has also been contributing significantly to its economy in the form of remittance and foreign currency. However, in the current situation, the spillover impacts of Covid-19 on remittance inflow is declining day by day. So, the downturn in remittance has created several impacts on overall consumption patterns of the people in the country because the world economy is moving towards anuncertain future due to the pandemic effects. Therefore, it is one of the biggest challenging tasks for Nepal‘s government.
13.6
6 6.6
5.1 6
11.7 11.2
Nepal India Bangladesh Pakistan Sri-Lanka China South Asia
Impact of COVID-19 in Economy (Loss) 2020
3. Covid-19 and South Asian Nations
In South Asia, there is a challenge of one of the worst economic situations(in its history) caused by the unprecedented corona virus (Covid-19) pandemic and its rapid contagion. Its infection is directly affecting the health situation and economic productivity of people. People are afraid of its increasing rate of hampering their lives. On the other hand, the natural environment of the South Asian countries seems to be improving due to less carbon emissions. Pollution had been evidently declining during the lock down. A kind of new normalcy, based on the blend of technology in their daily lives, has emerged in South Asian people‘s lifestyles. All service sectors have become a part of technology as well as communication. In the meantime, Industries are suffering underperformance because of health risks of physical presence of multiple workers.
Price hike in food, joblessness, being broke and other issues related to poverty have become recent economic hardships of people. The economic growths of all countries have gone down.
India is reviving partially in its internal economy. Nepal is also in the beginning of a new type of less productive normal situation. Pakistan‘s experience of its lockdown has not been a solution for its economic opportunities. Bangladesh‘s exports and economy is in stagnation. Maldives has been hard hit by the pandemic and in Sri Lanka,the pandemic has affected much of the country‘s macro-economic situation. Similarly, Afghanistan has faced some major effects of the pandemic on its business and economy as a landlocked country.Comparatively, Bhutan has a comfortable, smooth and a highly relaxed economy than the other countries. For the solution of the impacts of the pandemic on the South Asian economies, banking systems should have effective program to inject investment in productive sectors. Monetary policy of issuing money may work at this crisis in the region. In fact, the banking sectorhas high feasibility to rebuild the economy of South Asia.
Fig.3: South Asia GDP growth forecast Fig.4: Regional estimation of growth in 2020
Source: World Bank (2020)
South Asia possess more than a fifth of the world's population and contributes more than 15 percent to the global economic growth. It has writhed from extreme case of poverty and inequality, as well as enjoyed major infrastructure and connectivity developments. South Asia
has been hit hard economically by the COVID-19 pandemic. The current economic situation is like a deep recession in South Asia. The region has high potential of short and longer term economic impacts of COVID-19. The recovery depends upon inter-governmental response and preparedness.
This Pandemic is gaininginterest of Economic growth prospects, World Banking Scenario, Regional Condition of Banking Sector and Nepalese Banks and Financial Institutions‘ ‗strength, measures and possible main concern area for the sustainable development and growth of developing economies. Amidst socio economic risks and business associated costs, the emerging economies of China, India and south Asia can create favorable environment of business and long-lasting investment environment in South Asia and Asia. In the way forward, South Asian economies can be immunized by smooth supply of vegetables, food safety and it's delivery, independence in pharmaceutical products, management of public health crisis, increment of agro sector productivity, safe and secure tourism business development, public infrastructures development, Effective use of land banking, start-ups and SME's growth and development, skills and productivity growth of labor, strengthening digital friendly working capacity and the improvement in efficiency of service sectors etc. At this health and economic crisis, a comprehensive response framework is required in the government policy to minimize all kind of vulnerabilities.
4.Research Methods
From the beginning since the novel Corona Virus (Covid-19) outbreak began to spread globally, many researchers began to write and publish their findings on the pandemic‘s effect on the lives, trades, and economy around the world (Ozil and Arun, 2020; Poudel, 2020; Husain and Borah, 2020). The exact economic consequences due to the cause of the ongoing covid-19 pandemic spread is highly difficult to predict but there are clear indications that things will get much worse for developing economics (UNCTAD, 2020; World Bank, 2020; ADB, 2020). This means the economy of least developed countries like Nepal will be hit hard from the covid-19 shocks before they get to good conditions because of its poor capacity, weak infrastructure and to some extent, its inability to develop an innovative approach. In such a situation,being a least developed country, it is necessary for the nation to look for new evidences, do research and develop practically useful methods to enhance its capacity to understand the economic crisis in similar developing economies for the appropriate strategic response. Therefore, this study has mainly focused on how an outbreak of this pandemic has led developing economies like Nepal towards an uncertain future. Likewise, it aims to add on to how developing economies of developing countries – including Nepal – will handle the post pandemic control in order to survive, revive &
sustain their economies.
The study is based on qualitative methods of analysis which was carried out until June 10, 2020, butupdates after the mentioned date has not been considered by the researcher. The method of the study has been classified into two parts: Primary & Secondary. For secondary, data were
collected through published reports, journals articles, daily national newspaper, media and TV coverage & personal observation and experience. Besides, the data were extracted from these sources with the aim to support and validate the research topic. Whereas for primary data, the study was carried out considering the ways to control the post pandemic effects on developing economies — particularly in Nepal.
For the debate, researcher has requested about 200 respondents through mail, what‘s app and phone calls as per convenience of the researcher to participate on debate via video conference (Zoom Meeting). However, due to the lock down situation, researcher got the responses from 82 experts only. To elaborate it further, the information based on the group discussion via video conferencing is recorded and rectified without bending the expert‘s original viewpoints.
Besides the above mention research issues, experts from different backgrounds (Academicians, economists, entrepreneurs, practitioners, and members of Federation of Nepalese Chamber of Commerce and Industry) were participated in the focus group discussion through the online platform ‗Zoom‘ on above mentioned issues. For future implication, a total of 19 concrete statements were collected with a hope to meet the stated objective of the research. For this strategic way out, their view points (expert‘s opinions) are based on the pandemic issues like the likely impacts of the covid-19 on developing economies and the ways to prepare the post pandemic control strategies in Nepal with a South Asian perspective.
Thelines of reasoning of many experts were found to be similar, and therefore redundant. So, only selective statementshave been considered. Thethings to be noted here is that these view points and rationales are representative of all experts who participated and spoke about the current pandemiceffects and an economic way out for Nepal in the future. Likewise, all the experts involved in the discussion had believed that the outcome of the discussion will be in line with post control framework. These statements (experts original views) are as follows:
Expert one: Government of Nepal should focus on consumer food, medical assistance and other essential demands. Therefore, possible actions should be taken to minimize the vulnerable economic situation.
Expert two: The government is required to make an effective plan and strategies in order to ensure people's sovereignty through quality life, health care, social security and alike to resolve the human catastrophic.
Expert three: Government should focus on managing more medical colleges, hospital, staffs, medical supplies and equipment to provide qualitative health services in the country.
Expert four: Once the COVID – 19 pandemic outbreaks has been controlled, then government and economic players of the country should need to prepare a recovery plan for smooth economic activities that could fulfill the basic demands of the people of the country.
Expert five: Government should issue bills and bonds as much as possible in order to raise the required money for immediate needs.
Expert six: The government could utilize its funds like social security, Member of Parliament welfare, foreign employment, welfare, Prime Minister Employment schemes and funds lying idle at various levels to minimize pandemic effects in a country.
Expert seven: For an increment of labor productivity in the domestic economy, the primary sector is necessary to be mobilized well, so that secondary and territory sectors of the economy can get the opportunity of expansion and resource mobilization. Nepalese government should think strategically to use herbal medicine resources to generate income as Nepal is rich in local herbs and these indigenous resources are providing an immediate trade opportunity.
Expert eight: The country need to make an immediate action plan to empower youths by transferring technical know-how, research-based knowledge and entrepreneurship that could bring the Nepalese economy in the right track.
Expert nine: It is a high time to pledge the course of economic salvage in and after the pandemic as Nepal‘s industry sector need a mega plan with huge investment in the industry and manufacture sector and help its growth in order to create opportunities for a large number of employees.
Expert ten: The country needs to give a priority to the use of digital technology that isrequired to tie together every sector of the economy.
Expert eleven: It is inevitable that for the post control ofthe pandemic‘s effects, economic revival policy need primary concerns on the agriculture and industry sector of the economy rather than those that highly depend on the service sector and remittance. A clear-cut economic recovery package will be required to help struggling businesses and worker.
Expert twelve: The Nepalese government must pay key attention to reducing import items.
Therefore, government must give a time frame along with necessary supports that clearly ensures Nepal independenceon these things within this time. Therefore, the country should think of substitutes for imports and on local production, the diversified source of economic growth and poverty reduction.
Expert thirteen: An improvement of an economy could be possible by the revival of the tourism business which has many more value chains routed in Nepal. Thus, social trust and broader frameworks are required for this.
Expert fourteen: An economic planner should be made with strategic plans on how to get benefits from SAARC, particularly with India & China because of Nepal‘s high dependencies upon them as a landlocked country.
Expert fifteen: The government should make possible frameworks and strategies for unemployed youths and returning work force from foreign nations. So, the country should immediate think about the options which involves the areas to be utilized and what is available in the country.
Therefore, policy makers must identify their abilities, skills and interests and then provide them refreshment and training programs to use their effort to robust the economy.
Expert sixteen: Capital related to international flights of up to Rs. 40 billion every year is becoming a critical issue caused by large number of students going abroad to earn quality education, job, etc. Therefore,the government should focus on quality & skill based education policy, employment generation, safety and secured environment, efficient public service etc., which could reduce the amount of capital outflow in foreign nations.
Expert seventeen: Due to the pandemic creating economic issues worldwide, government should give attention to the integration of global knowledge and change to local knowledge in order to optimize collective intelligence about global and regional network with the local ecosystem.
Thus, the country should focus on promoting innovation and entrepreneurship in emerging economies as the basis for sustainable growth.
Expert eighteen: Now the government has to pay key attention to self-reliance which is something which other governments have already started adopting and everyone should agree with this too. Hence, for the pandemic recovery, the private and government sector‘s role should be to jointly solicit and implement a PPP model for a firm economic growth and stability.
Expert nineteen: At last, there is no complex and secretive policy to develop a country like Nepal and to take out the pandemic effects and eliminate poverty completely. Every local analyst knows this fact. No theory will work amidst corruption, racism, favoritism and bribery. Jerry Sax writes, ―it‘s not that mysterious what to do to end hard situation. We have already known what practical solution is and it is in our reach. Therefore the least developed country like Nepal doesn‘t need to test again on what that has already been used, but the country need development of good governance practice in their system.‖
6. Conclusion and Implication
Based on the focus group discussion, it give the impression that the ongoing pandemic impacts of covid-19 are gradually increasing in South Asia. So, this study reveals that due to the weak health care system and lack of innovative approach, Nepal ishighly incapable to cope with the very situation at present and in the future. This observation support the studies of Khan and Khan (2020), Adhikari (2020), Koirala and Achary (2020) whorevealed that most of the developing countries including Nepal do not have run social safety nets as the result of inadequate social- economic infrastructures and ineffective information technologies. Henceforth, large share of vulnerable population of south Asia are forced to bear social inequality due to the lack of access to the social protection system.
There are yet many uncertainties about how the pandemic will develop. It is urgent to realize what action is required to minimize the vulnerable situation in Nepal. In fact, it is a high time to observe and assess the economic slump of 2020. An overwhelming effect of Covid-19 has compelled the society to take all the precautionary measures to protect oneself and the environment. This can survive, revive, and sustain Nepalese economy in a long run. Based on the expert‘s opinion it could be concluded that the rapid modernization and development and use of digital technology should closely be tied up with every sector of economy. These findings are similar with the study of Rijal et al. (2020) who reflected that an unprecedented economic impacts in Nepal caused by ongoing pandemic, required action plan from government and non- government bodies to mitigate the In and after post pandemic control. In addition, Poudel and Subedi (2020) emphasize that Nepal is largely depend on India in south Asia. So, the economic tie-up with neighborhood countries along with digital technology is necessary else the economic and social isolation cost will be higher in Nepal as LDCs. At this onset,it is necessary to make a strategic blueprint to gain benefit from India considering Nepal‘s high dependency over India, open border system and being a LDC member of SAARC.Furthermore, this study noticed that, the economic health of India has a direct proportionate impact on the economic growth and stability of South Asian Countries including Nepal. However,the pandemic is unpredictable.In order to preserve the economy, it is necessary to revive the major aspect of Nepalese economy.
Hence, revitalizing the underperforming agriculture sector needs to be the priority of the country as two third of its population are engaged in this sector. Thus, the present study recommended that an effective linkage mechanism between farmers and market should be enforced to strengthen the capacity of farmers in Nepal. The recommendation is consistent with the findings of (Poudel et al., 2020). Meanwhile, Nepal has temporarily closed its open boarder with India considering the spread of the virus. This has also affected the export and import of the goods and services (Al Jazeera, 2020; The Economic Times, 2020). Based on the focus group discussion, it appears that the post control of covid-19 effects on economic revival policies should need sector specific concerns on the agriculture and industry sector of the economy rather than high dependency on service sector and remittance. This observation justify the presence of dilemma among Nepalese regarding the further impact of Covid-19 and degree of response and its effectiveness from the concerned authority. According to World Bank (2020), Nepalese economy could lose 25% of the Gross Domestic Product (GDP) due to this pandemicon an account of being a remittance based country. Hence, an increment of labor productivity in domestic economy could be established with respect to national harmony. Besides, it is a critical time to pledge the course of economic salvage in an after the pandemic as Nepal‘s industrial sectors needs strategic plan with sectorial investment for the industry growth to create more employment opportunities. Furthermore, experts emphasize that remittance earned by migrant returnee should be mobilized properly by learning about their knowledge, skills, ability and interest, so that development of industrial environment could be engulfed in formal labor driven economy. Therefore, for the pandemic recovery issue, the government and private sector‘s role is to jointly solicitPPP model (Public Private Partnership) for the firm relief of economic
stability.Going further, they opined that business projects and program of service sector should have an e-commerce approach. Hence construction, raw materials, food supply, supply chain management and effective service delivery should focus on the important role of artificial intelligence, digital technology and automation to revitalize the economy in an after the pandemic. Furthermore,an economic healing crisis must be managed properly. Thus, government can play a vital role in capacity building of human resource and intuitions simultaneously.
Moreover, this is the time to understand people‘s aspiration in a changed way as the Covid-19 pandemic implication arises as a new threat globally. Therefore, there is an urgent need to prepare a post control strategy to minimize the economically vulnerable impacts. Similarly, one thing that needsto be understood is that because of contextual differences, corruption is prevalent in high level and almost all economic levels and their agent are highly politicalized in Nepal. In this situation, Nepalneedsstrategies for good governance rather than complex and mysterious plan.
Based on legitimate viewpoints, this study makes an observation on the pandemic issues on Nepal‘s economy based on the response of 82 experts from different backgrounds. So, to round up the overarching proposition of this paper, it should be noted that the limitation of the paper‘s preparations was a short period of time (which was carried out until 10th June 2020) and updates after that has not covered. Therefore, a flexible time mayberequired to cover the difference aspects of the pandemic‘s impacts. Considering future incidence that will be taking place in Nepal, there could be possibilities of studies in other important affected by the pandemic, which the researcher did not consider in this study.
Besides there is less research on all economic sectors that may pose the government to face the challenge of policy gap to hit demand shock, supply shock and status quo of market disequilibrium. Thus, future studies on Covid-19 and its impacts in Nepal need to be unfolded so it could be important for future studies to cover and explore its direction.
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