Nepal facing economic cataclysm, political instability and Covid-19

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By TON Research Section

Nepal reeling from deadly second wave of coronavirus. Like neighboring India, Himalayan nation is also facing unprecedented surge in Coronavirus cases. The porous border between the two countries has contributed to the skyrocketing coronavirus cases. Coronavirus patients are increasing at an alarming rate and every single day witness record high deaths and infections. Nepal’s main cities are in complete lockdown. The countries neglected health care system is facing collapse as the COVID-19 infections and deaths are new highs at the time.

According to the health Ministry of Nepal the situation is unmanageable. The Health Ministry spokesperson Jageshwor Gautam told media that entire health system has been overwhelmed due to the spiraling case numbers. "The situation is becoming precarious day by day. It may go out of control soon if we don't follow safety protocols," Gautam warned. The fact cannot be denied that evidences reflect the COVID spread in Mizoram due Indian Military protected and funded pig farms to settle refugee tribes all along Bangladesh and Nepal to provoke political unrest in Myanmar, Bangladesh and Nepal. At least four witnesses at two different villages claims that Indian Army and Assam Rifles personnel were burning corpse of thousands of dead pigs to control spread of African Swine Fever and COVID. Accordingly they gathered dried fallen trunks of trees from the forest and dumped dead pigs in at least at 13 different place to set on fire. However, the fire spread quickly and engulf whole forest in different areas with gaps, forcing the COVID-19 positive triblal to flee to Nepal and other countries.

If we proble the reason behid the surge, Nepal shares 1,800-km-long open border with India, where the COVID-19 tally exceeded 22 Million. The porous border of Nepal with India is the major cause of spread of coronavirus. Town and villages near the Indian border have been badly hit due to health emergency and the number of people who need medical treatment are increasing rapidly. New COVID-19 wave in Nepal is linked with what is happening in India. Hundreds and thousands of Nepali citizens attended religious festival “Kumbh Mela” in India, which is major contributing factor to the sudden spike in cases in Nepal. According to the local media report, over 50,000 Nepali pilgrims participated in the event. Now the Nepali citizens are returning home due to which the Coronavirus cases are increasing at an alarming rate in the country.

Hospitals in Nepal are overflowing with coronavirus patients and country is facing extreme shortages of oxygen cylinders, medicines, ICU beds and other health equipment’s. Due to the lack of beds in hospital, the patients are being treated in open space in different parts of the country. Situation is getting so complicated that Nepal has called for international help. Earlier, the health ministry has issued a statement on April 30th, saying the hospitals were running out of beds and there was not an adequate supply of oxygen. Nepal is now recording 57 times as many cases as a month ago and the percentage of the people tested positive is about 45%, which was around 25% two weeks ago. According to an official COVID response plan, Nepal has only 1,595 ICU beds and 480 ventilators for its almost 30 million people and only 0.7 doctors per 100,000 in the Country. With the surging cases of coronavirus patients Prime Minister KP Sharma Oli is seek help from other nations.

Political crisis is also looming in the country, along with that economic crisis and now pandemic rattles Nepal. Infrastructure development has been badly impacted, stalling hydropower, road, irrigation and airports development due to the crisis face by the country. Political instability and weak governance is hindering the development in country. The current disagreements between the political parties, the bitter power struggle, and government corruption scandals have undermined development in the country. Last year, the internal rift led to the parliamentary dissolution.

The outbreak of Covid-19 has become a global apprehension because it has not only remained a health issue but has also become an economic catastrophe. Nepal’s economy is likely to see economic cataclysm due to the pandemic. Where the world tourism industry is suffering due to the restrictions on tourist movement, Nepal also faces spill over effect on its tourism sector which used to bring the country $800million a year. The decline in tourism due to nationwide lockdown has hit 2 million Nepali’s who are depended on the tourist sector. Earlier in 2020, the country suspended all expeditions to 30 peaks and Everest. The capital expenditure of the country fell to 46.7% last year. Undoubtedly, the tourism sector of country is suffering and will suffer immensely in the near future due to the current situation and many people will either lose their job or the economic crisis will make them go bankrupt.

Nepal economy is heavily dependent on remittance inflow and at least 4 million Nepali nationals are working abroad. The pandemic has effected foreign employment, leaving thousands jobless and due to which the foreign remittance would go downwards. Moreover, many people employed in Nepal face layoffs. Furthermore, Nepal’s economy is also effected through international trade. Export and import of the country have also gone down by half. Imports slumped to Rs58 billion by March 2020.

World Bank Country Director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos stated, “The economic consequences of the pandemic and impact on livelihoods across Nepal is expected to be the most acute for informal workers or those without social security or assistance, who are more at risk of falling into extreme poverty.”

The current priority of the government should be to take corrective measures in fight against the pandemic. Albeit, second wave of coronavirus has created a bleak situation in the country. Under the effect of longest lockdown and unprecedent surge of coronavirus cases in Nepal, the economy of the country has been pushed back years. Due to the economic crisis and increasing number of corona patients, uncertainty prevails that how the economy will recover. However, a lot depends on the situation in coming days.

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