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NEPAL ECONOMIC FORUM
DOCKING NEPAL’S ECONOMIC ANALYSIS
ENERGY
ENERGY AND ENVIRONMENT Notable developments could be observed in the energy and environment sector in the review period. The most anticipated Upper Tamakoshi Hydropower project came into operation, while various new hydropower projects are in the pipeline. The Sher Bahadur Deuba-led coalition government, after taking over the Oli government re-appointed Kulman Ghising as the managing director of Nepal Electricity Authority (NEA) and made the decision to provide free electricity to low-income households. Furthermore, the Deuba government also reversed the Oli government’s plans to extract and export natural resources from Chure region. Nepal also witnessed one of the harshest monsoons with landslides and floods displacing people and destroying infrastructure. POLLUTION AND EMISSIONS Plastic products imports surged by 40% in Fiscal Year (FY) 2020/21:
Contrary to the government’s announcement to reduce the use of plastic products, Nepal imported more than NPR 63 billion (USD 529 million) worth of plastic products in FY 2020/21. Data from the Department of Customs shows the import of plastic products increased by 40% in FY 2020/21 compared to FY 2019/20. According to the department, plastic products are ranked eighth in the list of top-ten imports of Nepal. Likewise, plastic face-shields worth NPR 423.44 million (USD 3.55 million) were imported in the last fiscal year.135 Supreme Court directs government to completely ban plastic less than 40 microns thickness: To
address the issue of pollution and environmental conservation, the previous government had announced a complete ban on plastics less than 40 microns thickness. The Supreme Court on August 15, 2021, directed
the government to completely ban the use of such plastic within 21 days. A single bench of justice, Naha Kul Subedi, asked the government to prepare its action plan to ensure the ban within 10 days. Although there have been several announcements by the government to ban plastic with low microns, including in the recent budget announcement, it has not come into implementation yet.136 The ineffective implementation can be attributed to the government’s lack of concrete plans and monitoring mechanisms to ensure that the decision is brought into effect. Despite the Supreme Court’s orders, it is safe to say that the public does not have high expectations from the government regarding the implementation of the ban. Floods and landslides wreaked havoc across Nepal: The monsoon
this year was expected to be more dangerous as above-average rainfall had been forecasted for the season. Only a few days into the monsoon season, floods and landslides had already started wreaking havoc across
the country. Flash floods devastated settlements around Kaligandaki, Bheri, Rapti West, Tinau, Babai, and other rivers flowing through Gandaki, Lumbini, Karnali, and Sudur Pashchim provinces. Hundreds of people went missing in the floods and landslides in Helambu and Melamchi areas of Sindhupalchowk district. Floods in two local streams also caused damages in various areas of the Manang District. Over 100 villages in the Bajura district have also been put at high risk of landslides. Water levels in rivers across Nepal passed the warning levels and were expected to witness flash floods.137 Nepal, being one of the most vulnerable countries to the effects of climate change, would only face more severe natural disasters in the future. Therefore, the government needs to be well prepared to deal with these disasters and mitigate impending risks. PROJECTS AND PROGRAMS Government to ban extraction and export of natural resources from Chure: Through the announcement
