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DOCKING NEPAL’S ECONOMIC ANALYSIS
Infrastructure and Real Estate The review period witnessed reforms and new developments in the aviation, and the real estate sector. The unseasonal heavy rains have caused further damage to the already fragile road infrastructure all around the country. With Nepal currently in political transition, infrastructure projects which have been completed are unable to commence their operation. Damage to Physical Infrastructure Totaled NPR 1.3 Billion: Nepal’s physical infrastructures have sustained a damage of NPR 1.3 billion (USD 10.92 million) from the recent floods and landslides caused by heavy rain.129 Parts of Arnico Highway, Tribhuvan Highway, Rapti Highway, B.P. Highway, Mahendra Highway, and Pushpalal Highway has sustained damages.130 The Department of Roads estimate NPR 250 million (USD 2.09 million) worth damage to roads, and NPR 1.05 billion (USD 8.81 million) worth damage to bridges. A total of 15 bridges are fully or partially damaged.131 Yeti Airlines Gains Permit for International Flights: After the successful test flight from Kathmandu to Varanasi in March 2021, Yeti Airlines has received permission from Civil Aviation Authority Nepal (CAAN) to carry out international flights. The airline has been approved to conduct chartered and nonchartered flights with cargos or passengers to several countries in South Asia, and Southeast Asia.132 Yeti Airlines will fly to Thailand, Myanmar, Cambodia, Singapore in Southeast Asia, and to India, Sri Lanka, and Pakistan in South Asia.133 Yeti Airlines joins
Nepal Airlines, Himalayan Airlines, Buddha Air, and Shree Airlines who have already received their Air Operator’s Certificate (AOC) for international flights.134 Reforms in the Aviation Sector Promised: The new minister for Ministry of Culture, Tourism and Aviation Prem Ale has announced his plans to utilize the unused aircrafts of Nepal Airlines Corporation (NAC) for international flights. He also intends to remove Nepal from the blacklist of International Civil Aviation Organization (ICAO). The minister has expressed his commitment to not delegate NAC’s ground handling tasks to private companies as was the case before.135 The minister has also directed NAC to implement e-ticketing system and stressed the importance of making the national carrier, nationally and internationally, competitive.136 Roadblocks for Nepal-India Railway Service: Despite the signing of standard operating procedures of Nepal-India cross border railway service, which is operating from Jaynagar in India to Bardibas in Nepal, Nepal is still behind on bringing the service to operation. The former Oliled government had introduced
an ordinance for railway management, but it has become invalid after the government failed to get parliament approval. Nepal Railway Company also fired over 150 staffs hired by the previous government stating that they were “political appointees”. Due to the lack of relevant laws and human resource, the Diesel Electric Multiple Unit train procured in September of last year has remained idle in Janakpur.137 Banks and Financial Institutions Requested to Accept Rural Land as Collateral: In a meeting with the Governor of the Central Bank of Nepal and the CEO of Rastriya Banijya Bank, the finance minister has requested Banks and Financial Institutions (BFIs) to accept rural land which have not been connected to motorways as a collateral for loan. Currently, banks only accept land which are connected to motorways as collateral for loan which has led to farmers not receiving loans.138 Workplan for Kathmandu’s First Smart City has Started: Among the 4 smart cities, “Ishan City” will be the first to get an Infrastructure Development Plan from the Kathmandu Valley Development Authority and the
