Economic Survey

Unofficial Translation Economic Survey

Fiscal Year 2015/16

Government of Nepal Ministry of Finance 2016

Foreword

The prime objective of the government has been to bring social and economic transformation through rapid economic growth by executing the Constitution subsequent to its promulgation by the historic Constituent Assembly. Country’s economic policy should be guided towards attaining sustainable economic development by achieving rapid economic growth through maximum utilization of available means and resources, and making national economy self-reliant, independent, and prosperous by ending disparity through judicious distribution of benefits.

Socialism-oriented, self reliant and competent economy needs to be developed through extensive investment mobilization by putting the revival of economy on the top priority with removal of negative impacts rendered by the devastating earthquake and inconvenient supply situation as a result of border obstructions.

This Economic Survey for fiscal year 2015/16 has been prepared with analytical review of achievements made through implementation of key economic policies. Impact and trend analyses of programs have been carried out by incorporating those programs considered vital from economic and social perspectives.

I am confident that this Economic Survey would serve as an useful source of reference for those who are interested and have concerned over the country’s economic activities including sector line agencies, intellectuals, researchers, employees, teachers, students, industrialists, businessmen, NGOs, people in general and Nepal's development partners, as well as foreign investors.

Last but not the least, I would like to extend my thanks to the Ministry of Finance , Chief of Economic Policy Analysis Division including all personnel, various Ministries, departments and other concerned entities who have extended their supports to this work by providing data, information and other details.

Bishnu Prasad Poudel Finance Minister

Contents

Foreword i List of Tables iii List of Charts viii Abbreviations x Executive Summary xii Major Challenges of Economy xviii Macro-Economic Indicators xx 1. Overall Economic Situation 1 2. Public Finance 17 3. Price and Supply 47 4. Money and Banking 58 5. Capital Market and Insurance 81 6. External Sector 95 7. Poverty Alleviation and Employment 107 8. Agriculture, Forestry and Land Reform 120 9. Industry, Commerce and Tourism 146 10. Housing and Urban Development, Environment and Energy 165 11. Transport and Communication 176 12. Good Governance, General Adminstration, Peace and Reconstruction 188 13. Social Sector 200 14. Public Enterprises 263 15. Post Earthquake Reconstruction and New Building 274

List of Tables

Table 1(a): Global Economic Growth Rate 2 Table 1 (b) Economic Growth Rate of Neighboring Countries 3 Table 1 (c): CPI Based Global Inflation Rate 4 Table 1 (d): CPI-based inflationary Trend of Neighboring Countries 4 Table 1 (e) Net Aggregate Domestic Demand 5 Table 1 (f): World Trade Situation 5 Table 1 (g): Economic Growth in last Decade (Percent) 6 Table 1 (h): Contribution in Gross Domestic Product (in Percent) 12 Table 2 (a): Public Finance and GDP to their Ratios (In Percent) 18 Table 2 (b): Details of Government Expenditure 19 Table 2(c) : Detail of Government Expenditure (Status of Spending in the first 21 eight months of fiscal year) Table 2 (d): Service and Function-Wise details of Recurring Expenditure 23 Table 2(e) : Service and Function-Wise details of Current 24 Expenditure(Expenditure Status for the first eight months of Fiscal Year) Table 2 (f): Service and Function-Wise details of Capital Expenditure 26 Table 2 (g) : Service and Function-Wise details of Capital Expenditure 27 including Financial Provision Table 2 (h): Details of Government Income 29 Table 2 (i) : Contribution of Government Income, Foreign Grant, Domestic 31 Debt and Foreign Debt to Total Government Expenditure Table 2 (j) : Detail of Revenue Income 33 Table 2(k) : Revenue Detail(Revenue Detail of first eight months of fiscal year) 34 Table 2 (l) : Detail of Fiscal Deficit and Deficit Financial 36 Table 2(m) : Outstanding Stock of Public Debt and Principle Repayment and 38 Interest Expenditure Table 2 (n): Income and Expenditure Details of Local Bodies 41 Table 2 (o) : Government Grant to Local Bodies 45 Table 3(a): Consumer Price Index based Annual Point to Point Inflation Rate 49 Table 3 (b): Point to Point Changes in National CPI 50 Table 3 (c): Annual Point to Point Changes of National Wholesale Price Index 52 Table 3 (d): Annual Point to Point Change of National Salary and Wage Rate Index 53 Table 3 (e): Average Retail Price of Some Major Commodities 54 Table 3(f): Prices of oil and gold in International market 54 Table 3 (g): Supply of Petroleum Products 56 Table 4 (a): Bank Rate, Refinance Rate and Cash Reserve Ratio 61

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Table 4(b): Factors affecting Money Supply 62 Table 4 (c): Reserve Money and Money Multiplier 64 Table 4 (d): Status of Open Market Operation 65 Table 4(e): Interest Rate 67 Table 4 (f) : Deposit Mobilization and Credit Flow 67 Table 4 (g) : Number of Banks and Financial Institutions (By the end of Mid-July) 68 Table 4 (h): Some Major Indicators of Bank and Financial Institutions (By the end of Mid-July) 69 Table 4 (i) : Branches of Banks and Financial Institutions 70 Table 4(j): Some Indicators of Financial Expansion and Deepening 71 Table 4 (k): Non-Performing Loan of BFIs 72 Table 4 (l): Sources and Utilization of fund of microfinance Institutions 73 Table 4(m) : Postal Saving Bank 75 Table 4 (n) : Status of Credit and Deposit Guarantee 75 Table 4 (o): Status of Rural Self-Reliance Fund 76 Table 4(p) : Non-Performing Loan and Capital Fund 78 Table 5(a): Primary Market Trend 81 Table 5(b): Secondary Market Trend 84 Table 5 (c ): Ownership Structure of Insurance Companies 87 Table 5 (d): Source and Utilization of life and non-life Insurance Companies 88 Table 5(e): Total Life and Non-Life Insurance Premiums 89 Table 5 (f): Contribution of Insurance Premiums to GDP 90 Table 5 (g) : Investment made in Life and Non-Life Insurance Business 90 Table 5 (h) : Revenue Collected from Insurance Business 91 Table 5 (i) : Insurance Claim and Insurance Claim Payment 93 Table 5 (j) : Insurance Claim Amount Released by Life Insurance Business 93 Table 6 (a): Foreign Trade Situation (First Eight Months) 99 Table 6 (b): Remittance Inflows 101 Table 6 (c): Total Foreign Exchange Reserve (In Rs. 10 Million) 102 Table 6 (d): Status of Foreign Asset and Liability 104 Table 6 (e) : Foreign Exchange 105 Table 7 (a) : National Household and Population Survey 108 Table 7 (b) : Graduation Threshold and Nepal Position in 2016 110 Table 7(c): Status of Recipient of Skill Development Training 114 Table 7 (d): Country-wise detail of Foreign Employment 115 Table 7 (e) : Amount Collected in Social Security Fund 116 Table 8 (a): Area of Food Crops and their Production Details 122 Table 8 (b): The Preliminary Status of Cash Crop Production 123 Table 8 (c): Preliminary Status of Industrial Crop Production 124

Table 8 (d): Preliminary Status of Spices Production 125 Table 8 (e) : Number of Animals/Fowls 126 Table 8 (f): Status of Animal’s/ Fowl’s Production 127 Table 8 (g): Supply Status of Inputs for Agriculture Production 128 Table 8 (h): Natural Disaster affected Land Area (Ha) 129 Table 8 (i) : Sales and distribution status of Chemical Fertilizers 130 Table 8 (j): Additional Irrigation Extension 131 Table 8 (k): Status of Credit Flow of Banks and Financial Institutions 131 Table 8 (l): Description of Foundation Seed Production and Introduction of Crop Varieties 132 Table 8 (m): Small Farmer Cooperative and Status of Wholesale Credit Investment 133 Table 8 (n): Status of Meat-Oriented Livestock Credit Program 134 Table 8(o) : Status of Cooperative Institutions 135 Table 8 (p) : Primary Cooperative Institutions 136 Table 8 (q) : Forest Resource Statistics of Nepal 138 Table 8(r) : Conservation Area Details 139 Table 8 (s) : No. of Tourists Visiting Conservation Area and Revenue 140 Table 8 (t) : Domestic and External Tourist Visiting National Botanical Garden 141 Table 8 (u): Soil Conservation and Watershed Management Status 142 Table 8 (v): Revenue from Forest Sector 142 Table 9 (a): Industries Registered at the Department of Industries 146 Table 9 (b) : Licensed Industries for Operation 147 Table 9(c): Licensed Industries for Operation by Types 148 Table 9(d): Foreign Investment in Industry 149 Table 9 (e): Country-wise Foreign Investment 149 Table 9 (f) : Countries with BIPPA Agreement 150 Table 9(g): Details on Industrial Intellectual Property 150 Table 9 (h): Company Registration Status 152 Table 9 (i) : Major Indicator related with Tourism 158 Table 10(a): Energy Consumption Status 169 Table 10 (b): Electricity Demand, Consumption, Production and Physical Structures 171 Table 10 (c) : Alternative Energy Usage Status 173 Table 10 (d) : Detail of Average Daily and Monthly Import of Petroleum Products 173 Table 10 (e): Consumption details of POL Products 174 Table 11 (a): Status of Road Facility Expansion 176 Table 11 (b) : Road Facility extended by Department of Road 176 Table 11 (c) : Extension of Road Network by Local Bodies 177 Table 11(d) : Number of Registered Transport Vehicles 178 Table 11(e): Civil Aviation Indicators 179

Table 11(f) : Number of License for Audio Visual 180 Table 11 (g) : Numerical Detail of Postal Service 181 Table 11 (h) : Situation of Telecommunication Service 181 Table 11(i) : Number of Telephone lines distributed 182 Table 11 (j) : Comparative Detail of Newspapers registered 183 Table 11(k) : Status of Motion Picture Sector 185 Table 11 (l): Information Related Task Carried Out 186 Table 12 (a) : Number of Bhutanese Refugees 193 Table 12 (b) : Number of Bhutanese Refugees Resettled in Third Countries 193 Table 12(c): Detail of Civil Personnel 194 Table 12(d) : Detail of Training Programs Conducted Through Nepal Administrative 195 Staff College Table 12 (e) : Detail of Regular Training Programs Conducted Through Nepal 195 Administrative Staff College Table 12(f) : Status of Relief, Financial Assistance, Reconstruction and Rehabilitation 198 Table 13 (a): Educational Achievements Based on Educational Indicators 201 Table 13 (b): Status of Pre-Primary Education 203 Table 13 (c): Scholarship Made Available To School Students 204 Table 13 (d): Students Studying at Martyrs Memorial Boarding School 206 Table 13 (e) Detail of Food for Education Program 206 Table 13 (f): Vocational Education and Training 207 Table 13 (g) : Details of Operational Programs under Non-formal Education 208 Table 13 (h): School Physical Facility Extension Program Details 209 Table 13 (i) : Detail of Distribution of Schools by Geographical Regions 210 Table 13 (j): Ratio of School, Student and Teacher by Level (Academic Year 2015) 211 Table 13 (k): Detail of Different Types of Schools by Development Region 212 Table 13 (l): Detail of Traditional Schools (In Numbers) 212 Table 13 (m): Detail Of Teachers Engaged In Community And Institutional School 213 Table 13 (n): Gender-Wise Detail of Teachers by Schools and by Levels (Basic Level) 214 Table 13 (o): Gender-Wise Detail of Teachers by Schools and by Levels (Secondary Level) 214 Table 13 (p): Enrollment Status of students in School level 215 Table 13 (q): Students’ Enrollment Status by Levels (Academic Year 2015) 216 Table 11 (r) :Detail on GER and NER 216 Table 13 (s) : Detail of Students appeared and passed out SLC Examination 217 Table 13 (t): Students appeared in Technical SLC 217 Table 13 (u): The Number of Students Nominated for Different Levels and 219 Faculties (In Number) Table 13 (v): Campuses under Different Universities and Student Numbers 220

Table 13 (w) : Student Enrollment and Production Details in Universities 221 (Fiscal Year 2014/15) Table 13 (x): Achievement of Last Three Years 222 Table 13 (y): Details of Health Institutions, Beds and Human Resources 224 Table 13 (z): Health Service Beneficiary Population by Development Regions 225 Table 13 (aa): Details of Outpatient Services by Development Regions 225 Table 13 (ab) : Detail of Extended Vaccination and National Polio Vaccination 226 Program (In Number) Table 13 (ac) : Detail of Reproductive Health Program 227 Table 13 (ad): Social Security Program Detail 231 Table 13 (ae) : Detail of Medical Specilists Registered with Nepal Medical Council 234 Table 13(af) : Detail of Services Rendered from Civil Service Hospital 236 Table 13 (ag): Major Achievements of Women Development 238 Table 13 (ah): Service Rendered Through Rehabilitation Center 240 Table 13 (ai): Details of Missing, Found after Missing and Found Unattended Children 241 Table 13 (aj): Disability Identity Card Distribution Details 244 Table 13 (ak) : Social Welfare Council registered institutions and approved programs 245 Table 13 (al) : Basic Drinking Water and Sanitation Status 245 Table 13 (am): Status of Drinking Water and Sanitation, Rural and Small Town Drinking Water 246 Table 13 (an): National Youth Mobilization Program Details 250 Table 13(ao): Sports and Extra-Curricular Activities Details 251 Table 13 (ap) :Programs under National Sports Council 252 Table 13 (aq) : 12th SAG Games Medal Table 253 Table 13 (ar) : Vital Statistics Registration Details 255 Table 13 (as): Social Security Allowance Distribution 256 Table 13 (at) : Progress in Social Allowance Distribution 257 Table 13 (au): Status of Social Mobilization 260 Table 15 (a): Damage from Earthquake 274 Table 15 (b): Damaged Caused by Earthquake (Sector-wise Detail) 275 Table 15 (c) : Resources for Reconstruction and Recovery 277 Table 15 (d): List of Homeowners Entitled to Receive Grant 278

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List of Charts

Chart 1 (a): World Economic Growth Trend 2 Chart 1 (b): Economic Growth Trend 5 Chart 1 (c): Contribution of Indrastrial Sector in GDP 8 Chart 1 (d): Sectorwise Growth Rate 10 Chart 1 (e): Ratio of Consumption to GDP 13 Chart 1 (f): Share of Government & Private Sector in Gross Fixed Capital 13 Formation Chart 1 (g): Per Capital GDP 14 Chart 1 (h): Ratio of Saving to GDP 15 Chart 2 (a): Ratio of GDP 18 Chart 2 (b): Revenue Structure in Total Government Revenue 20 Chart 2 (c): Ratio of Revenue, Expenditure & debt to GDP 31 Chart 3 (a): Annual Average Inflation 47 Chart 3 (b): Five Year's Food & Non-Food Inflation 48 Chart 3 (c): Groupwise Inflation 48 Chart 3 (d): Inflation Based on Geographical Area 51 Chart 3 (e): Price of Petrolium Products 55 Chart 4 (a): Trend of Factors Affecting Money supply 63 Chart 4 (b): Deposit & Credit Interest Rate 66 Chart 4 (c): Expansion of Financial Services 71 Chart 5 (a): Share Issuance 82 Chart 5 (b): Market Capitalization 82 Chart 5 (c): Shares, Paid-up Capital and Transaction 83 Chart 5 (d): NEPSE Index 84 Chart 5 (e): Total Life & Non-life Insurance Premium 89 Chart 5 (f): Growth of Life and Non-life Insurance Busineses 89 Chart 5 (g): Growth Rate of Insurance Busineses Contribution to GDP 90 Chart 5 (h): Investment Made in Life & Non-life Insurance Busineses 91 Chart 5 (i): Revenue Receipt to Nepal Government 91 Chart 5 (j): Non-life Insurer's claim for losses due to earthquake 92 Chart 5 (k): Payment on the claim of Non-life Insurers 92 Chart 5 (l): Insurance Claim Ammount Released by life Insurance business 94 Chart 6 (a): Ratio to GDP 96 Chart 6 (b): Foreign Exchange Reserve 102 Chart 6 (c): Averge Foreign Exchange Rate 105

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Chart 7 (a): Houshold Benefitted in WUPAP Implemented District 108 Chart 7 (b): Skill Development Training 114 Chart 7 (c): Ammount Collected in Social Security Fund 116 Chart 8 (a): Production of Major Food Crops 122 Chart 8 (b): Market Production 128 Chart 8 (c): Sale & Distribution of Chemical Fertilizer 130 Chart 9 (a): Foreign Exchange Earnings from Tourism 148 Chart 9 (b): Indicators Relating to Tourism 159 Chart 10 (a): Energy Consumption Status 170 Chart 11 (a): Status of Road Service 177 Chart 11 (b): Companywise share of Telephone lines Distributed 182 Chart 12 (a): Bhutanese Refugees Living in Nepal 193 Chart 12 (b): Number of Bhutanese Refugees Resetteled in Third Countries 194 Chart 12 (c): Area-wise Status of Application/Complaint Field During Fiscal 196 Year 2014/15 Chart 13 (a): Students with Kinder Garden Experience in Grade 1 203 Chart 13 (b): Geographica Area-wise Details of Schools of all Levels 210 Chart 13 (c): Last Three Year's Detail of Teachers in All Schools 213 Chart 13 (d): School Level Student's Enrolment Status 215 Chart 13 (e): Status of Students enrolled in Tribhuwan University 220 Chart 13 (f): Students Enrolled in Tribhuwan University & Other University 222 Chart 13 (g): Medical Specialists Regestered with Nepal Medical Council by 234 2015 Chart 13 (h): Detail of lost & Protected Children in the first Eight month of 242 Fiscal Year 2015/16 Chart 13 (i): Emergency Rescue of Children at Risk 242 Chart 13 (j): Disability Indentity Card Distribution 244 Chart 13 (k): Birth & Death Registration of Last Five Years 255 Chart 14 (a): Sectir-wise Net Profit of Public Enterprises 266 Chart 15 (a): Estimated Damage Caused by Earthquake 276 Chart 15 (b): Resource Required for Reconstruction & Recovery 277

Abbreviations AIDs Acquired Immune Deficiency Syndrome AIT Administrator in Training AMHS Automatic Message Handling System AOCR Air Operation Certificate Regulation ARV Antiretroviral B.S. Bikram Sambat BDS Bachelor of Dental Surgery BOOT Build Operate Owned Transfer CB PMTCT Community Based Pregnant Mother to Child Transmitted CBIMCI Community Based Integrated Management of Childhood Illness CBR Crud Birth Rate CCTV Close Circuit Television CDAS Central Depositary Accounting Software CDMA Code Division Multiple Access CEDA Center for Economic Development and Administration CNS /ATM Communication Navigation Survillance / Air Traffic Movement CPA Central Personnel Agency DACC District AIDS Coordination Committee DDC District Development Committee DOTs Directly Observed Treatment DPMAS District Poverty Monitoring & Analysis System E.N.T . Ear, Nose, Throat E-DV Electronic Diversity Visa ETC Education Training Centre EVDO Enhanced Voice-Data Optimized FOB Free On Board GER Gross Enrolment Ratio GIS Geographic Information System GPI Gender Perception Indicator HIV Human Immune Deficiency Virus HMIS Hazardous Materials Identification System HPS Hermansky Pudlak Syndrome HSS Higher Secondary School ICAO International Civil Aviation Organisation ICP International Custom Point IED Improvised Explosive Device IFAD International Fund for Agriculture Development IOM Institute of Medicine ISO International Organization for Standardization IT Information Technology JFPR Japan Fund for Poverty Reduction KG Kilogram KM Kilometer

KW Kilowatt LGCDP Local Government & Community Development Programme LSS Lower Secondary School M1 Narrow Money Supply M2 Board Money Supply MBBS Bachelor in Medicine and Bachelor in Surgery MCPM Minimum Conditions and Performance Measures MDA Mass Drug Administration MDAC Ministerial Development Action Committee MDG Millennium Development Goals MDR Multi Drug Resistant MDRTB Multi Drug Resistant Tuberculosis MIS Management Information System MLAT Multilateration MOU Memorandum of Understanding NER Net Employment Ratio NITC National Information Technology Center NTV Nepal Television O&M Organization & Management OTC Over the Counter PAN Permanent Account Number PIS Personnel Information System PMTCT Preventing Mother-to-Child Transmission PNC Post Natal Care PS Primary School PTMC Percutaneous Transvenous Mitral Commissourotomy S. No. Serial Number SASEC South Asian Sub-regional Economic Cooperation SEZ Special Economy Zone SI School Inspector SS Secondary School STOL Short Take-Off and Landing TIA Tribhuvan International Airport TPS True Potato Seed UNFCCC United Nations Framework Convention on Climate Change VCT/STI Volunteer Counseling Treatment of Sexual Transmitted Infection VCTS Vulnerability Compliance Tracking System VDC Village Development Committee VHF/UHF Very High Frequency / Ultra High Frequency VOR/DME Very High Frequency (VHF) Omnidirection Range/Distance Measuring Equipment

Executive Summary 1. As per World Economic Outlook published by International Monetary Fund (IMF) in April, 2016, global production that grew by 3.1 percent in 2015 is estimated to grow by 3.2 percent in 2016. Likewise, economies of developed countries that had expanded by 1.9 percent in 2015 is projected to expand at the same rate as of previous fiscal year while economies of emerging and developing countries that grew by 4.0 percent in 2015 are estimated to rise by 4.1 percent in 2016. 2. Economies of South Asian countries other than Nepal and Maldives that grew positively in 2015 as compared to its preceding year is expected to grow in 2016 as well but that of Nepal and Sri Lanka. Economies of two giant Asian countries: India and China, which rose by 7.3 percent and 6.9 percent respectively in 2015, are projected to grow by 7.5 percent and 6.5 percent respectively in 2016. 3. In current fiscal year 2015/16, real Gross Domestic Production (GDP) of the country is estimated to rise by 0.77 percent against its growth rate of 2.32 percent in the previous year. Low growth rate of the agriculture sector, non-agriculture sector activities highly affected by earthquake, and difficult supply situation as a result of border obstructions are attributable for low economic growth in current fiscal year as compared to that of previous fiscal year. 4. Production of Agriculture sector is expected to grow by 1.3 percent in FY 2015/16 against its growth of 0.8 percent in previous fiscal year. Likewise, non-agriculture sector that registered a growth of 3.1 percent in previous fiscal year is estimated to grow by 0.6 percent in current fiscal year 2015/16. Production of the industry sector has declined by 6.3 percent while that of the services sector increased by 2.7 percent. Industry and services sector had recorded growths of 1.5 percent and 3.6 percent respectively in previous fiscal year. 5. There has been structural change in the Nepalese economy. Contribution of agriculture and industry sectors to GDP is declining while that of the services sector is rising. The primary sector that had expanded by 0.8 percent in previous fiscal year 2014/15 is expected to grow by 1.2 percent in current fiscal year. Likewise, the secondary sector that grew by 1.5 percent in previous fiscal year is estimated to decrease by 6.3 percent in current fiscal year 2015/16, and the tertiary sector that recorded a

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growth of 3.6 percent last year is projected to grow only by 2.7 percent in this fiscal year. 6. Contribution of the agriculture sector to GDP is in declining trend, while that of non-agriculture sector is steadily growing. Contribution of the agriculture sector to real GDP, which stood at 36.6 percent in fiscal year 2001/02, has dropped to 31.6 percent in current fiscal year while that of the non-agriculture sector has gone up from 63.4 percent to 68.3 percent in the same period. 7. Net consumption expenditure at prevailing price in current fiscal year 2015/16 is expected to stand at Rs. 2130.52 billion against Rs. 1934.04 billion that of previous fiscal year. The share of consumption expenditure to GDP at prevailing price in FY 2004/05 was 90.2 percent while this is expected to rise and reach 94.7 percent in current fiscal year. 8. In fiscal year 2014/15, the share of gross domestic surplus to GDP remained at 8.8 percent while this is estimated to stand at 5.3 percent in current fiscal year 2015/16. The share of gross national surplus to GDP is estimated to decline to 42.9 percent in current fiscal year from 43.9 percent of previous fiscal year. 9. Of the budgetary allocation of Rs. 819.46 billion for current FY 2015/16, Rs. 268.01 billion has been spent in the first eight months of current fiscal year. This is lower by 22.69 percent as compared to that of corresponding period of previous fiscal year. The share of current expenditure stood at 73.87 percent, capital expenses at 10.18 percent and financial management at 15.95 percent in the first eight months of current fiscal year. 10. Of the estimated gross revenue mobilization Rs. 475.01 billion in the current fiscal year, Rs. 231.07 billion has been collected in the first eight months of the current fiscal year. This amount is 14.8 percent higher than that of the corresponding period of previous fiscal year. Although venue mobilization in the initial months of the current fiscal year was adversely affected due to supply difficulties as a result of obstructions at the border, it has recorded growth in the subsequent months. 11. In the current fiscal year 2015/16, foreign grants mobilization is estimated at Rs. 110.92 billion, which is 205.0 percent higher than that of previous fiscal year. Foreign grants of Rs. 11.57 billion has been mobilized in the first eight months of the current fiscal year against

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mobilization of Rs. 14.30 billion in the corresponding period of previous fiscal year 2014/15. 12. The outstanding public debt until mid-March of FY 2015/16 stood at Rs. 544.91 billion. Of this, the shares of domestic and foreign debts have been 32.12 percent and 67.88 percent. The ratios of domestic and foreign debts to GDP stand at 9.51 percent and 16.18 percent respectively, while that of public debts is 25.69 percent in FY 2014/15. 13. Inflation rate that stood at 7.0 percent in mid-March of FY 2014/15 went up to 10.2 percent in the same period of current fiscal year 2015/16. The growth rate of price indices of food and beverage group stood at 10.3 percent while that of non-food and service group remained at 10.2 percent by mid-March of the current fiscal year. The price indices of these groups in the corresponding period of previous fiscal year stood at 9.5 percent and 4.9 percent respectively. 14. During first eight months of the current fiscal year, broad money supply and narrow money supply have increased by 11.5 percent and 20.0 percent respectively against their respective growth rates of 8.1 percent and 7.0 percent during the same period of previous fiscal year. Gross Foreign Asset in monetary sector that registered notable growth during the first eight months of current fiscal year is attributable for the expansion of money supply. 15. During the first eight months of the current fiscal year 2015/16, deposit mobilization of banks and financial institutions has increased by 8.4 percent and reached to Rs. 1830.62 billion. Likewise, during the same period, credit flow to the private sector through banks and financial institutions has grown by 10.8 percent to Rs. 1482.96 billion. 16. NEPSE Index in the first eight months of the current fiscal year 201/16, has increased by 34.79 percent as compared to the corresponding period of the previous fiscal year, and stood at 1318.88 percentage points. Such index was 978.44 points during the same period of FY 2014/15. Market capitalization that stood at Rs. 104.03 billion in the first eight months of FY 2014/15 grew by 40.52 percent in the same period of current fiscal year reaching 142.91 billion. 17. In FY 2014/15, earnings from premiums of life and non-life insurances had totaled Rs. 36.28 billion, while such earnings reached to Rs. 25.74 billion by mid-March of FY 2015/16. Total earning from premiums is

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estimated to hover around Rs. 38.60 billion by the end of current fiscal year 2015/16. 18. Gross export of goods in the first eight months of fiscal year 2014/15 had totaled Rs. 56.87 billion with a decline of 6.6 percent. In the same period of current fiscal year such exports has totaled only to Rs. 42.73 billion with a sharp fall of 24.9 percent In first eight months of current fiscal year 2015/16, gross import of goods has decreased by 13.9 percent totaling Rs. 435.8 billion in contrast to 10.5 percent rise amounting to Rs. 505.92 billion in the same period of previous fiscal year. The net deficit on tradable goods has decreased by 12.5 percent to Rs. 393.07 billion in the first eight months of the current fiscal year 2015/16 against 13.1 percent growth to Rs. 449.05 billion in the same period of previous year. 19. The overall Balance of Payments (BoP) has remained in surplus of Rs.158.18 billion by the first eight months of current fiscal year 2015/16. Such surplus amounted to Rs. 35.07 billion in the same period of previous fiscal year. Likewise, the current account remained in surplus by Rs.138.55 billion in this period, while it had registered a surplus of Rs. 11.65 billion in the same period of previous fiscal year. 20. The ratio of remittance to GDP that stood at 29.1 percent in FY2014/15 is estimated to reach 32.1 percent by the end of current FY 2015/16. Remittance income that had registered a growth of 4.0 percent in FY 2015/16 has grown by 15.2 percent reaching 427.27 billion in the first eight months of current fiscal year. 21. Total foreign exchange reserve grew by 22.2 percent as compared to that of mid-July 2015 and reached Rs. 1006.68 billion in mid-March 2016. Such reserve had remained at Rs. 824.06 billion by mid-July 2015. Based on the trend of imports during the first eight months of current fiscal year 2015/16, the current foreign exchange reserve is sufficient to cover the imports of goods for 18.8 months and imports of goods and services combined for 15.8 months. 22. In the current fiscal year, gross food production of Nepal (rice, wheat, maize, millet, barley and buckwheat) is estimated to reach 8.692 million metric tons with a decline of 6 percent from the previous fiscal year. Likewise, paddy rice production is likely to fall by 10.2 percent to 4.299 million metric tons in the same period. Production of food crops declined owing to adverse climate and border obstructions that adversely

affected transportation of chemical fertilizers and fuel thereby affecting the groundwater irrigation as well. 23. Of the Nepal’s total land mass, forest occupies 40.36 percent while 4.38 percent is covered by the shrubs. The encroached forest land area of 638 ha was evacuated and managed in FY 2014/15, while 68 ha of such land area have been evacuated and managed by mid-March of FY 2015/16 24. Of the total 27,570 freed bonded labor families, 26,090 such families have been resettled by mid March, 2016. Likewise, of the total 19,953 freed land tiller families ( Haliya ), land has been procured for 293 such families, homes constructed for 220 families, while 386 families have been resettled with home repair grants provided. 25. A total of 6,328 industries have been registered by mid-March, 2016. More than Rs. 10.84 billion has been invested in those industries thereby generating employment for 512,159 people. 26. A total of 3,520 foreign investment industries from 86 countries have been registered from fiscal year 2004/05 to the first eight months of current fiscal year, where investments of more than Rs. 189 billion have been approved. These industries are estimated to have generated employment opportunities for a total of 211,843 people. 27. Energy consumption in the first eight months of fiscal year 2015/16 has reached 10,972.63 Tons of Oil Equivalent (ToE), which is 41.0 percent higher as compared to the same period of previous fiscal year. The ratios of traditional, commercial and renewable energy consumption during the same period have been 55.33 percent, 42.0 percent and 2.67 percent respectively. This has indicated that traditional energy users have been gradually attracted towards the use of petroleum products. 28. By the end of fiscal year 2014/15, a total of 27,496 Km road including 11,798 Km of black topped, 6,287 Km graveled and 9,411 Km earthen (fair weather) roads have been constructed, while the total length of the road has reached 27,990 Km by mid-March, 2016 comprising 11,890 Km of black topped, 6,419 Km graveled, and 9,681 earthen (fair weather) roads. 29. There has been sharp rise in the quantity and quality of telecommunication service sector with availability of newest and ultra modern technologies in communication services. Telephone users density

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has reached 110.25 percent with number of telephone subscribers reaching 29,209,330 by mid-March 2016. 30. Net enrollment rate at primary education level reached to 96.6 percent in the academic calendar year 2015, while that at basic education level reached to 89.4 percent and secondary education level reached to 37.7 percent. Such enrollment rates in previous academic year were 96.2 percent, 87.6 percent and 34.7 percent respectively, respectively. During academic year 2015, the number of primary level school students stood at 4,264,942 while that at lower secondary schools was 1,862,873 and secondary school was 938.897. Similarly, the number of schools has also increased by primary level schools reaching 34,362, lower secondary to 15,091 and that of secondary level to 8,968. 31. By Mid-March of 2016, eighty five percent of population is expected to have benefited from access to basic drinking water service. Of this, only 15.3 percent are enjoying high quality drinking water service. Likewise, 81.0 percent of population is estimated to have access to basic sanitation service. 32. In 2015, children (under 5 years) mortality rate (per thousand) stood at 38, infant mortality rate (per thousand) at 33, while that of newly born child remained at 23 per thousand. Similarly, maternal mortality rate (per 100,000 live births) stood at 190 and total fertility rate at 2.3 percent, while women giving birth under the assistance of skilled midwifes has reached to 55 percent. By mid-March 2016, the total number of health institutions has reached 4,506 with 123 hospitals, 3,783 health posts, 384 Ayurvedic (Homeopathic) hospitals and dispensaries, and 216 primary health centers. 33. The devastating earthquake of April 25, 2015 and subsequent aftershocks have resulted in the huge loss of human lives, physical infrastructure and natural resources. This took the lives of 8,969 people and injured 22,302 people. Similarly, about 17,000 large cattle (quadrupeds) and some 40,000 small ones perished in the earthquake. Likewise, about 779,582 government buildings and private homes have been completely destroyed, while 302,774 received partial damages. Damage caused by this devastating earthquake is estimated at around Rs. 706 billion. Of this, properties worth Rs. 517 billion were destroyed while production damage is equivalent to Rs. 189 billion. As per the preliminary estimates of damages rendered by the earthquake, the cost of reconstruction and new constructions could be to the tune of Rs. 669.50 billion.

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Major Challenges of Economy 1. Obtaining higher economic growth rate through proper mobilization of domestic and foreign investments by putting reconstruction and new building works on top priority to avoid further negative impacts on the economy caused by destruction of physical infrastructure remains a challenging task. 2. Making arrangements of technology and equipment required for increasing agriculture production and productivity, skilled human resource, improved seeds and fertilizers, agriculture extension, marketing of production, and maintaining quality and modernizing and commercializing agriculture sector through adequate arrangements of means and resources for irrigation have been challenging tasks. 3. The task of expediting the processes for productive industries, infrastructure building and industrialization through active involvement of the private sector by attracting domestic and foreign investments has been a challenge. 4. Constructing electricity projects in active participation of the private and government sectors to end increasing energy crisis in the county and addressing the problems seen in relation to power procurement agreement, land acquisition, local obstruction, labor relation, and infrastructure among others are other challenges. 5. Tasks for creating employment through proper utilization of geological and cultural diversities in the tourism sector, enhancing physical and institutional structures for the sustainable development of foreign currency earnings and attracting tourists from neighboring countries have remained a challenge. 6. Enhancing capacity for productive and capital expenditure through prioritization of expenditures, maintaining financial discipline and transparency, and making public expenditure management result oriented through effective monitoring and evaluation processes have been challenging tasks. 7. Making institutional structure, capacity enhancement, and policy and legal arrangements for effective management of public debts, limiting domestic borrowings within desired limit of GDP, investing such borrowings in capital building sectors thereby providing support to the national production through their uses in future are challenging tasks. xviii

8. Increasing domestic employment through the arrangement of skill oriented trainings as per the requirement of domestic markets, sending skilled workers for foreign employment and using the remittance earned from such foreign employment in productive sectors by converting it into the capital, and creating employment opportunities to workers within the country who have earned skills abroad are also other challenges. 9. Curbing informal economic activities like illegal imports and exports; illegal transactions of foreign currencies; illegal money transfers ( Hundi), and illegal financial transactions, and bring them into the formal economy is a daunting challenge. 10. Maintaining financial stability, increasing access to finance, and attaining higher economic growth through the development and expansion of financial sector have remained a challenge.

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Macroeconomic Indicators Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Economic Activities Annual % Real GDP (At Basic Prices) 2.8 5.8 3.9 4.3 3.9 4.6 3.8 5.7 2.32 0.77 Change Annual % Agriculture 1.0 5.8 3.0 2.0 4.5 4.6 1.1 4.5 0.80 1.30 Change Annual % Industry 4.0 1.6 0.6 4.0 4.3 3.0 2.7 7.1 1.50 -6.30 Change Annual % Service 4.5 7.3 6.0 5.8 3.4 5.0 5.7 6.2 3.60 2.70 Change Annual % Real GDP (At Producer's Prices) 3.4 6.1 4.5 4.8 3.4 4.8 4.1 6.0 2.73 0.56 Change Per Capita GDP (At Constant Annual % 6.3 4.6 3.1 3.4 2.5 3.4 2.7 4.6 1.36 -0.78 Price) Change Per Capita National Income (At Annual % 6.9 4.6 3.3 3.7 2.1 3.7 3.2 5.8 1.15 -0.53 Constant Price) Change Annual % GDP (At Current Price 11.3 12.1 21.2 20.7 14.6 11.7 11.0 15.9 7.94 6.05 Change Gross National Income (At current Annual % 11.6 12.0 21.4 20.2 14.4 12.0 10.9 16.9 7.88 6.40 Price) Change Gross National Disposable Income Annual % 10.1 16.5 24.2 18.8 13.3 16.6 12.4 19.2 8.97 8.08 (At Current Price) Change Per Capita GDP US Dollar 410.00 491.00 497.00 610.00 714.00 702.00 708.00 725.00 762.00 752.00 Per Capita GNI US Dollar 414.00 496.00 502.00 614.00 718.00 708.00 714.00 737.00 775.00 766.00 Per Capita GNDI US Dollar 487.00 606.00 628.00 759.00 879.00 902.00 921.00 970.00 1030.00 1035.00 Rs. in Real GDP (At Basic Prices) 494.00 522.00 543.00 566.00 588.00 615.00 638.00 674.00 690.00 695.00 Billion Rs. in Agriculture 184.80 195.60 201.50 205.50 214.80 224.70 227.20 237.50 239.50 242.60 Billion Rs. in Industry 86.80 88.30 87.80 91.30 95.20 98.10 100.70 107.80 109.40 102.50 Billion Rs. in Service 243.50 261.40 277.10 293.30 303.30 318.50 336.80 357.70 370.50 380.40 Billion Rs. in Real GDP (At Producer's Prices) 532.00 564.50 590.10 618.50 639.70 670.30 698.00 739.80 759.90 764.20 Billion

Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Per Capita GDP (In 2000/01 Price) Rs. 21129.00 22110.00 22793.00 23561.00 24144.00 24962.00 25646.20 26820.10 27184.00 26972.30 Per Capita Gross National Income Rs. 21569.00 22567.00 23301.00 24152.00 24664.00 25582.00 26396.80 27939.30 28261.00 28110.10 (In 2000/01 Price) Rs. in GDP(At Producer's Current Price) 728.00 816.00 988.00 1193.00 1367.00 1527.00 1695.00 1965.00 2120.00 2249.00 Billion Gross National Income(In Current Rs. in 735.00 824.00 1000.00 1202.00 1375.00 1540.00 1708.00 1997.00 2155.00 2293.00 Price) Billion Gross National Disposable Rs. in 864.00 1006.00 1250.00 1485.00 1682.00 1962.00 2206.00 2629.00 2865.00 3096.00 Income(In Current Price) Billion Per Capita GDP (In Current Price) Rs. 28905.00 31946.00 38172.00 45435.00 51594.00 56880.00 62764.00 72413.00 77079.00 80921.00 Per Capita GNI (In Current Price) Rs. 29200.00 32257.00 38626.00 45782.00 51879.00 57337.00 62764.00 72413.00 77079.00 80921.00 Per Capita GNDI (In Current Rs. 34323.00 39417.00 48262.00 56549.00 63499.00 73082.00 34088.00 36773.00 37573.00 37963.00 Price) Gross Consumption/ GDP In % 90.20 90.20 90.60 88.60 86.00 89.00 89.40 88.10 91.20 94.70 Gross Domestic Saving/GDP In % 9.80 9.80 9.40 11.40 14.00 11.00 10.60 11.90 8.80 5.30 Gross National Saving/GDP In % 28.60 33.20 35.90 35.90 37.00 39.50 40.70 45.70 43.90 42.90 Gross Fixed Capital In % 21.10 21.90 21.30 22.20 21.40 20.80 22.60 23.50 27.70 25.00 Formation/GDP Government Investment in Gross In % 3.40 4.00 4.50 4.50 4.70 4.70 4.40 4.80 5.20 5.90 Fixed Capital Formation/GDP Private Investment in Gross Fixed In % 17.70 17.80 16.90 17.70 16.70 16.10 18.10 18.70 22.50 19.10 Capital Formation/GDP Gross Capital Formation/GDP In % 28.70 30.30 31.70 38.30 38.00 34.50 37.00 41.00 39.00 34.00

Gap between Gross Domestic In % -18.90 -20.50 -22.30 -26.80 -24.00 -23.50 -26.80 -29.20 -30.00 -28.70 Saving and Gross Investment/GDP Total Population 10 Million 2.52 2.55 2.59 2.63 2.65 2.69 2.72 2.76 2.80 2.83

Price Annual % Consumer Price Index 3 5.90 6.70 12.60 9.60 9.60 8.30 9.90 9.10 7.20 9.50 Change Annual % GDP Deflator 2 7.30 5.60 16.10 14.40 11.00 6.60 6.10 9.00 5.20 5.50 Change Annual % Primary Sector 6.10 3.30 21.40 25.10 15.60 1.40 4.60 6.40 4.10 4.80 Change

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Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Annual % Secondary Sector 5.70 11.00 14.40 9.20 8.90 8.30 8.20 5.90 5.80 7.00 Change Annual % Service Sector 8.30 5.30 12.90 8.90 8.20 10.10 6.50 11.70 5.70 5.50 Change Annual % Whole Sale Price Index 4 9.00 9.10 12.80 12.60 9.80 6.40 9.00 8.30 6.10 6.00 Change Annual % Salary and Wages Rate Index 5 9.80 9.70 15.30 17.20 18.00 27.40 9.20 13.70 8.40 4.60 Change Annual % Salary 6.30 10.90 10.50 20.20 0.00 19.30 0.00 25.40 8.40 0.80 Change Annual % Wages 10.90 9.40 16.90 16.30 24.00 29.60 11.50 11.10 8.40 5.50 Change Public Finance *** Annual % Revenues 21.3 22.7 33.3 27.2 11.4 23.2 21.1 20.5 13.7 13.5 Change Annual % Total Government Expenditures 20.5 20.8 36.1 18.2 13.7 14.8 5.7 11.4 33.0 32.0 Change Annual % Recurrent Expenditure 15.1 18.6 39.7 18.2 12.6 15.8 1.6 8.3 26.5 27.9 Change Annual % Capital Expenditure 34.2 34.7 36.6 23.5 16.8 8.6 6.2 22.2 33.1 79.2 Change Annual % Principal Payments 17.4 -2.2 14.9 -2.1 -6.6 17.1 74.3 19.2 53.9 -1.5 Change Debt Servicing (Principal & Annual % 12.2 -0.7 18.6 5.3 5.4 17.9 38.4 10.3 36.8 15.2 Interest) Change Revenue/GDP In % 12.1 13.2 14.5 14.9 14.7 16.0 17.5 18.2 19.1 20.5 Tax Revenue/GDP In % 9.8 10.4 11.8 13.4 13.0 13.9 15.3 15.9 16.8 18.4 Non-Tax Revenue/GDP In % 2.3 2.8 2.7 1.5 1.5 2.1 2.2 2.2 2.4 2.1 Total Government In % 18.4 19.8 22.2 21.8 21.6 22.2 21.2 20.3 25.1 31.2 Expenditures/GDP Recurrent Expenditure/GDP In % 10.6 11.2 12.9 12.7 15.4 15.9 14.6 13.6 16.0 19.3 Capital Expenditure/GDP In % 5.5 6.6 7.4 7.6 3.5 3.4 3.2 3.4 4.2 7.1 Principal Payments/GDP In % 2.3 2.0 1.9 1.5 1.3 1.3 2.1 2.1 3.0 2.8 Debt Servicing (Principal & In % 3.1 2.8 2.7 2.4 2.2 2.3 2.9 2.7 3.5 3.8 Interest)/GDP

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Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Foreign Grants/GDP In % 2.2 2.5 2.7 3.2 3.4 2.7 2.1 2.1 1.8 3.0 Budget Deficit/GDP In % 4.1 4.1 5.0 3.5 3.6 3.4 1.5 0.0 4.0 7.6 Foreign Loan/GDP In % 1.4 1.1 1.0 0.9 0.9 0.7 0.7 0.9 1.2 2.6 Domestic Loan/GDP In % 2.5 2.5 1.9 2.5 3.1 2.4 1.1 1.0 2.0 3.9 Foreign Loan and Grants/GDP In % 3.6 3.6 3.7 3.1 4.2 3.4 2.8 3.1 3.0 5.6 Rs. in Total Outstanding Debt 332.7 375.6 425.1 440.4 443.7 523.2 545.3 553.5 544.9 606.7 Billion Rs. in Outstanding Domestic Debt 103.8 116.0 125.7 148.1 184.2 214.0 211.9 206.7 201.7 232.4 Billion Outstanding Foreign Debt Rs. in 216.6 250.0 277.0 256.2 259.6 309.3 333.4 346.8 343.3 374.3 Billion Per Capita Outstanding Debt Rs. 13212.0 14711.0 16416.0 16773.0 16749.0 19488.0 20041.0 20069.0 19496.0 21415.0 Total Outstanding Debt/GDP In % 45.7 46.1 40.8 33.9 32.5 34.3 32.2 28.2 25.7 27.0 Outstanding Domestic Debt/GDP In % 15.9 15.4 15.0 12.4 13.5 14.0 12.5 10.5 9.5 10.3 Outstanding Foreign Debt/GDP In % 29.8 30.6 27.9 21.5 19.0 20.2 19.7 17.7 16.2 16.7 Outstanding Foreign Debt/Revenue In % 247.0 232.3 197.9 144.0 130.8 126.6 112.6 97.2 84.6 81.3 Outstanding Foreign Debt/Export In % 364.8 421.8 409.2 421.2 403.5 416.5 433.5 377.0 402.4 504.4 Debt Service (Principal & Interest In % 29.7 24.9 21.1 15.2 14.3 14.5 19.7 20.1 21.7 19.6 payment)/Recurrent Expenditure Outstanding Foreign Debt/Foreign In % 131.2 117.6 97.4 95.3 95.4 70.4 62.5 52.1 41.7 37.1 Exchange Reserve Monetary Sector Annual % Domestic Credit 11.7 21.3 27.1 17.2 14.6 9.3 17.2 12.7 16.2 20.1 Change Annual % Private Sector Credit 12.3 24.3 29.0 14.2 13.9 11.3 20.2 18.3 19.4 19.0 Change Annual % Net Credit to Government 10.4 11.2 20.4 26.9 19.7 -0.3 3.0 -15.4 -10.4 31.5 Change Share of the Private Sector credit in In % 75.8 77.7 78.9 80.2 79.7 81.4 83.5 87.6 90.0 89.1 the Banking Sector Credit Annual % Narrow Money Supply (M1) 12.2 21.6 27.3 11.0 5.2 18.6 14.4 17.7 19.7 20.0 Change

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Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Annual % Currency 7.4 19.9 25.5 13.0 1.9 20.1 14.9 16.2 18.7 17.0 Change Annual % Current Deposits 22.8 25.0 30.5 7.6 11.4 15.9 13.4 20.4 21.5 25.24 Change Annual % Broad Money Supply (M2) 14.0 25.2 27.3 14.1 12.3 22.7 16.4 19.1 19.9 22.0 Change Annual % Fixed and Saving Deposits 14.9 27.0 27.3 15.5 14.8 24.0 17.0 19.5 20.0 22.58 Change Total Domestic Credit/GDP In % 49.5 53.6 56.2 66.8 66.2 64.8 68.8 66.9 72.0 81.56 Private Sector Credit/GDP In % 37.6 41.7 44.4 53.5 52.9 52.7 57.4 58.6 64.8 72.71 Net Government Credit/GDP In % 10.8 10.7 10.6 11.4 11.9 10.6 9.9 7.2 6.0 7.44 Narrow Money Supply/GDP In % 17.4 18.9 19.9 17.8 16.2 17.2 17.8 18.1 20.0 22.67 Current Deposits/GDP In % 6.0 6.6 7.2 6.1 5.9 6.1 6.2 6.5 7.3 8.61 Broad Money Supply/GDP In % 54.3 60.7 63.8 68.8 67.1 74.0 77.6 79.7 88.6 101.88 Fixed and Saving Deposits/GDP In % 36.9 41.8 43.9 51.0 50.8 56.4 59.8 61.6 68.5 79.21 External Sector Annual % Export (Goods) -1.4 -0.2 14.2 -10.2 5.8 15.4 3.6 17.4 -7.3 -13.0 Change Annual % Import (Goods) 12.0 14.0 28.2 31.6 5.8 16.5 20.6 27.3 8.4 2.0 Change Export/Import Ratio In % 30.5 26.7 23.8 16.2 16.2 16.1 13.8 12.7 11.0 9.4 Annual % Trade Deficit 19.2 20.2 33.3 44.6 5.8 16.7 23.9 29.7 10.8 3.8 Change Annual % Income from Tourism 6.0 84.2 49.9 0.6 -12.5 24.8 11.4 35.6 15.2 -10.0 Change Annual % Expenditure on Tourism 32.0 32.2 50.5 2.8 -14.4 93.2 153.7 6.5 26.1 20.0 Change Rs. in Remittance Income 100.1 142.7 209.7 231.7 253.6 359.6 434.6 543.3 617.3 679.0 Billion Annual % Remittance Income 2.5 42.5 47.0 10.5 9.4 41.8 20.9 25.0 13.6 10.0 Change Rs. in Current Account Balance -0.9 23.7 41.4 -28.1 -12.9 76.0 57.1 89.7 108.3 141.9 Billion

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Fiscal Year Indicators Units 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 P Export/GDP In % 8.2 7.3 6.9 5.1 4.7 4.9 4.5 4.7 4.0 3.3 Import/GDP In % 26.8 27.2 28.8 31.4 29.0 30.2 32.8 36.4 36.5 35.1 Total Trade/GDP In % 34.9 34.5 35.6 36.5 33.7 35.1 37.3 41.0 40.6 38.4 Trade Deficit/GDP In % 18.6 19.9 21.9 26.3 24.3 25.3 28.3 31.7 32.5 31.8 Income from Tourism/GDP In % 1.4 2.3 2.8 2.4 1.8 2.0 2.0 2.4 2.5 2.1 Expenditure on Tourism/GDP In % 2.2 2.6 3.2 2.7 2.0 1.7 2.3 2.1 2.5 2.8 Remittance Income/GDP In % 13.8 17.5 21.2 19.4 18.5 23.5 25.6 27.7 29.1 32.1 Current Account Balance/GDP In % -0.1 2.9 4.2 -2.4 -0.9 5.0 3.4 4.6 5.1 6.3 Rs. in Balance of Payments 5.9 29.7 44.8 -3.3 4.1 131.6 68.9 127.1 145.0 161.0 Billion Rs. in Foreign Exchange Reserve 165.1 212.6 286.5 268.9 272.2 439.5 533.3 665.4 824.1 1009.5 Billion Foreign Exchange Reserve Annual % 0.1 28.8 34.8 -5.4 1.2 61.5 21.4 24.8 23.8 22.5 change Capacity of Reserves to cover Months 10.6 11.7 12.2 8.7 8.4 11.6 10.2 11.5 13.0 15.6 Import of Goods Capacity of Reserves to cover Months 8.7 9.4 10.0 7.4 7.3 10.3 8.7 10.0 11.2 13.2 Import of Goods and Services Per US Dollar Exchange Rate 6 70.5 65.0 76.9 74.5 72.3 81.0 88.0 98.3 99.5 106.5 =Rs. 1Annual Preliminary Estimates 2Base Year 2000/00=100, 3Base Year 2005/06=100 4Base Year 1999/2000=100, 5Base Year 2004/05=100, 6Annual Average of Buying and Selling Rates # Including the data of Development Banks and finance companies since July 2010 *** Capital grants that used to be accounted for capital expenditures in the past have been included in current expenditures from FY 2011/12 following IMF’s GFS 2001 reclassification. Similarly, share and loan investment in public enterprises has also been removed from the capital grant budget head. Note: Ratio of GDP is calculated at the current producers' Price.

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1. Overall Economic Situation

Nepalese economy, despite presence of great opportunities for higher growth rate through development of potential sectors of the economy including agriculture, tourism, forestry mines, and human resources, has been perpetually bearing the challenge of low economic growth rate. Economic growth rate remained low in the current fiscal year as a result of protracted strikes, bandh (closures), and obstructions to movements on the border with India, while private sector formed gross fixed capital stock has also declined. Similarly, per capita income has also dropped owing to modest economic growth and as a consequence, this index may not support the country to achieve its target of graduating from the status of least developed country to developing country by 2022. Implementation of constitution, if delayed, would render adverse impact to the investment environment. Bandh, strikes, labor issue, energy crisis, and difficult geographical access to external markets have also affected industries that are in operation. Hence, it is imperative to boost the morale of the investors by creating investment friendly environment as per broader economic policy mandate. Likewise, prioritized development of infrastructure with priority is most necessary focusing on agriculture sector that has been yielding lower productivity but creating higher employment opportunities; the services sector that has created less employment but yielding higher productivity gains; and the industry sector, which is not operating in full capacity.

1.1. World economy, though improving after the financial crisis, remained weak in 2015 owing to sluggishness in the revival of developed economies coupled with decreased economic growth rate of emerging and developing economies. Likewise, global inflation rate remained low as a result of decreased oil prices and weak demand. Nepalese economy having less direct impact of the world economy is also projected to grow marginally in FY 2015/16. Economic activities that remained dormant in the first six months of the current fiscal year 2015/16 are moving in positive direction in subsequent months. World Economy Economic Growth Rate 1.2. The global production growth rate has declined due to slow revival of world economy and decreased growth rate of large emerging economies that contribute greatly to world economic growth rate. World Economic Outlook published by International Monetary Fund (IMF) in April, 2016

revealed that the global production rate that had increased by 3.4 percent in 2014 dropped to 3.1 percent in 2015. Such production growth rate is expected to improve marginally and stand at 3.2 percent in 2016. 1.3. IMF has predicted that economy of developed countries that had expanded by 1.9 percent in 2015 is likely to attain same growth rate in 2016 as well. Of the developed countries, production of the US economy that had grown by 2.4 percent in 2015 is projected to grow at same rate in 2016. 1.4 Euro area that recorded the growth rate of by 1.6 percent in 2015 is estimated to grow only by 1.5 percent this year. The economy of Japan that had recorded a growth of 0.5 percent in 2015 is not expected to expand beyond growth rate of 2016 due to decline in private consumption demand.

Table 1(a): Global Economic Growth Rate (Annual Percentage Change) 2013 2014 2015 Projection Regions 2016 2017 2021 World Output 3.3 3.4 3.1 3.2 3.5 3.9 Developed Economies 1.2 1.8 1.9 1.9 2.0 1.8 Emerging and Developing Economies 4.9 4.6 4.0 4.1 4.6 5.1 Emerging and Developing Asia 6.9 6.8 6.6 6.4 6.3 6.4 Middle East and North African Countries 2.1 2.6 2.3 2.9 3.3 3.6 Emerging and Developing Europe 2.8 2.8 3.5 3.5 3.3 3.3 EU Member Countries 0.3 1.4 2.0 1.8 1.9 1.8 Source: International Monetary Fund, April, 2016 1.5 IMF predicts that emerging and developing economies that had grown by 4.0 percent in 2015 are likely to grow by 4.1 percent in 2016. The economic growth rate of emerging and developing economies are likely remain low as a result of economic recession in Russia and Brazil and low economic growth of China coupled with weak performance of oil exporting economies.

1.6 Economic growth rate of India is estimated to expand gradually due to increase in investment as a result of policy improvement in Indian economy while that of China is likely to fall. Of the economies of large Asian countries, economies of India and China that had grown by 7.3 percent and 6.9 percent respectively in 2015 are projected to grow by 7.5 percent and 6.5 percent respectively.

Table 1 (b) Economic Growth Rate of Neighboring Countries (Annual percentage change) Projection Countries 2012 2013 2014 2015 2016 2017 2021 Bangladesh 6.3 6.0 6.3 6.4 6.6 6.9 6.5 Bhutan 6.0 4.9 6.4 7.7 8.4 8.6 7.5 India 5.6 6.6 7.2 7.3 7.5 7.5 7.8 Maldives 2.5 4.7 6.5 1.9 3.5 3.9 4.7 Nepal 4.8 4.1 5.4 3.4 0.5 4.5 3.8 Sri Lanka 9.1 3.4 4.5 5.2 5.0 5.0 5.0 Pakistan 3.8 3.7 4.0 4.2 4.5 4.7 5.5 Afganistan 14.0 3.9 1.3 1.5 2.0 3.0 4.0 China 7.7 7.7 7.3 6.9 6.5 6.2 6.0 Source: International Monetary Fund, April, 2016 1.7 Among South Asian countries, economic growth rates of countries except that of Maldives and Nepal increased in 2015 as compared to that of 2014. Likewise, IMF has projected that economic growth rate of all countries other than Nepal is likely to rise in 2016 as compared to that of 2015. Price Situation 1.8 The rise in price level of developed economies that stood at 1.4 percent in 2014 fell to 0.3 percent in 2015. This inflation rate recorded the lowest following the financial crisis. The price level increase in developed economies in 2016 is projected at 0.7 percent. Fall in the oil prices is the reason behind the low price rise of developed countries. Likewise, price of emerging and developing economies that remained at 4.7 percent in 2015 is projected to remain 4.5 percent in 2016. The increase in price level of Euro Area is remained at zero percent in 2015 and it is expected to rise marginally by 0.4 percent in 2016. 1.9 Inflation in South Asian countries seem to be affected by the economic incidences of other countries of the world. Inflation rate of all South Asian countries decreased in 2015 as compared to that of 2014 as a consequence of decreased prices of petroleum products and food commodities. IMF has projected that inflation rate of all South Asian countries except that of Bhutan is likely to surge in 2016 as compared to that of 2015. Of the South Asian countries, inflation rate of Afghanistan 3

has remained negative by 1.5 percent in 2015. The inflation rate of China declined from 2.0 percent to 1.4 percent in 2015 and projected to remain at 1.8 percent in 2016. Decreased oil prices and sluggish economic activities are attributable to low inflation rate of China.

Table 1 (c): CPI Based Global Inflation Rate (Percent) Projection Regions 2013 2014 2015 2016 2017 2021 Developed Economies 1.4 1.4 0.3 0.7 1.5 1.9 EU Member Countries 1.3 0.4 0.0 0.4 1.1 1.7 Emerging and Developing 5.5 4.7 4.7 4.5 4.2 3.9 Economies Emerging and Developing Asia 4.7 3.5 2.7 2.9 3.2 3.7 Emerging and Developing 4.3 3.8 2.9 4.1 4.8 4.2 Europe Middle East and North African 9.3 6.6 5.9 5.5 4.7 3.9 Countries Developing Economies with 8.0 7.3 7.2 8.0 7.7 6.2 Lower Income International Monetary Fund, April, 2016 1.10 Inflation rate in India remained at 4.9 percent in 2015 from 5.9 percent in 2014. As per the projection of IMF, Inflation rate of all South Asian countries other than that of Bhutan and Pakistan is likely to rise in 2016. Table 1 (d): CPI-based inflationary Trend of Neighboring Countries (Percent) Projection Countries 2013 2014 2015 2016 2017 2021 Bangladesh 7.5 7.0 6.4 6.7 6.9 5.7 Bhutan 8.6 9.6 7.2 6.1 6.0 5.6 India 9.4 5.9 4.9 5.3 5.3 4.9 Maldives 4.0 2.5 1.4 2.1 2.6 4.2 Nepal 9.9 9.0 7.2 10.2 11.1 5.6 Sri Lanka 6.9 3.3 0.9 3.4 4.5 5.0 Afganistan 7.4 4.7 -1.5 3.0 4.5 6.0 Pakistan 7.4 8.6 4.5 3.3 5.0 5.0 China 2.6 2.0 1.4 1.8 2.0 3.0 International Monetary Fund, April, 2016

Aggregate Domestic Demand 1.11 Aggregate domestic demand of developed countries grew by 2.1 percent in 2015 as compared to a growth of 1.8 percent in 2014 due to expansion of economic activities in these countries. The real domestic demand of the United States registered a growth of 2.5 percent in 2014 surged by 3.0 percent in 2015. Likewise, such demand of Euro Zone that had grown

by 0.9 percent in 2014 grew by 1.8 percent in 2015. This demand of developed countries is projected to rise by 2 percent in 2016.

Table 1 (e) Net Aggregate Domestic Demand (Annual Percentage change) Projection Regions 2013 2014 2015 2016 2017 2021 Developed Economies 0.9 1.8 2.1 2.0 2.1 2.0 United States of America 1.2 2.5 3.0 2.8 2.9 2.2 European Countries -0.7 0.9 1.8 1.7 1.7 1.5 United Kingdom 2.6 3.2 2.7 1.9 2.2 2.2 Japan 1.7 0.0 0.0 0.4 0.0 0.6 Canada 1.9 1.3 0.2 0.3 1.8 2.0 Source: International Monetary Fund, April 2016 1.12 World trade of goods and services, which was negative during financial crisis, gradually expanding following the revivals of the economies. The volume of world trade in goods and services that had grown by 3.5 percent in 2014 grew merely by 2.8 percent in 2015. It is, however, estimated to grow by 3.1 percent in 2016.

Table 1 (f): World Trade Situation (Annual Percentage Change) 201 Projection Trade Economies 2013 2014 5 2016 2017 Total Trade Volume Global 3.4 3.5 2.8 3.1 3.8 Developed Economies 3.0 3.5 3.4 2.5 3.5 Export Emerging and Developing Economies 4.4 3.1 1.7 3.8 3.9 Developed Economies 2.2 3.5 4.3 3.4 4.1 Import Emerging and Developing Economies 5.2 3.7 0.5 3.0 3.7 Developed Economies 0.8 0.3 1.9 1.1 -0.3 Terms of Trade Emerging and Developing Economies 0.0 -0.4 -3.9 -2.3 -0.3 Source: International Monetary Fund, April 2016

1.13 Exports of developed economies increased by 3.4 percent while those of emerging and developing economies rose by 1.7 percent in 2015. Likewise, imports of developed economies and those of emerging and developing economies grew by 4.3 percent and 0.5 percent respectively in 2015. Terms of Trade of developed economies increased by 1.9 percent in 2015 while those of emerging and 5

developing economies declined by 3.9 percent during the same year. IMF has projected that world trade is likely to expand by 3.1 percent in 2016.

National Economy

1.14 Economic growth of the country (at the basic price) is estimated to remain at 0.77 percent in FY 2015/16. GDP recorded a growth of 2.32 percent growth rate in the previous fiscal year. The economic growth rate in FY 2001/02 had recorded 0.16 percent, which once again went below 1 percent in current fiscal year for the second time. The economic growth rate shrank owing to negative production rate of mines and quarrying, industry, electricity, gas and water, construction, wholesale and retail trade, hotel and restaurant sectors, and the low growth in agriculture sector that occupies one-third proportion in GDP.

Table 1 (g): Economic Growth in last Decade (Percent) 2006/07 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Average Average Fiscal Year Fiscal Year

Agriculture 1.0 5.8 3.0 2.0 4.5 4.6 1.1 4.5 0.8 1.3 2.9 Non Agriculture 4.4 5.9 4.3 5.0 3.6 4.5 5.0 6.4 3.1 0.6 4.3 Industry 3.9 1.7 -0.6 4.0 4.3 3.0 2.7 7.1 1.5 -6.3 2.1 Service 4.5 7.3 6.0 5.8 3.4 5.0 5.7 6.2 3.6 2.7 5.0 Economic Growth 2.75 5.8 3.9 4.26 3.85 4.61 3.76 5.72 2.32 0.77 3.8 Source: Central Bureau of Statistics 1.15 The economic growth rate recorded above five percent in FY 2007/08 and FY 2013/14, but the rate remained below five percent in other fiscal years. The economic growth rate of the country in past decade averaged 3.8 percent at basic prices. Likewise, the average growth rate of agriculture and non-agriculture sectors stood at 2.9 percent and 4.3 percent in a decade. Similarly, industry and service sectors under the non-agriculture averaged 2.1 percent and 5 percent respectively in a current decade. Despite satisfactory growth attained by services sector in last ten years, growth rate that of agriculture and industrial sectors have not been satisfactory. Agriculture sector is influenced by factors like fragmentation of arable lands, high dependency on weather, and scarcity of improved seeds and fertilizers. Moreover, industrial sector has been affected as industries and entrepreneurship could not be developed due to debilitating investment environment, labor relations problem, persistent energy crisis, political transition.

Agriculture Sector Agriculture and Forestry 1.16 In FY 2015/16, production of agriculture and forestry sectors is estimated to grow by mere 1.1 percent. Low growth of the agriculture and forestry is caused by the decline in production of main crop due to lengthening drought. Production of paddy which accounts top share in overall agriculture production has declined by 10.2 percent, while that of second main crop wheat production has dropped by 5.0 percent due to adverse weather situation. Overall growth rate of agriculture sector, however, is estimated to remain positive due to increased production of other crops including that of maize by 4 percent, potato by 4.5 percent and vegetables by 5.0 percent. The production of this sector had increased only by 0.71 percent in previous fiscal year. The average growth rate of this sector in the last decade stood at 2.82 percent. Contribution of the agriculture and forestry sector to GDP is 31.2 percent in current fiscal year. Fishery 1.17 Increased investment of farmers in fishery has resulted in growth in its production as well. The fishery sector is expected to grow by 11.8 percent in the current fiscal year while this had increased by 7.1 percent in its preceding fiscal year. The average growth rate of this sector remained at 5.9 percent during last ten years while its share to GDP is just 0.5 percent. Fishery sector is estimated to expand due to low impact of earthquake in Terai region and gradually increasing in government and non-government investments in this sector. Non-Agriculture Sector 1.18 Non-agriculture sector is expected to grow by 0.6 percent in current fiscal year against its growth of 3.1 percent in previous fiscal year. Industry sector among non-agriculture sector is estimated to drop by 6.3 percent in current fiscal year while service sector is likely to rise by 2.7 percent. Industry and services sectors had registered a growth of 1.5 percent and 3.6 percent in its preceding year.

Industry Sector Mining and Quarrying Sector

1.19 Contribution of mining and quarrying sector to GDP in FY 2015/16 is estimated at 0.6 percent. Production of this sector is expected to fall by 6.5 percent in current fiscal year. The growth rate of this sector in the preceding year was 2.3 percent. Such decline is attributable to moratorium imposed by the government on construction of concrete buildings due to the earthquake and decreased quarrying of boulders, gravels sands and soil in earthquake affected districts. Likewise, the growth rate of this sector has averaged 2.65 percent in last ten years. Manufacturing Industry 1.20 Contribution of manufacturing industry to GDP is estimated to have remained at 5.5 percent in FY 2015/16. The growth rate of this sector is estimated to decrease by 9.9 percent in current fiscal year 2015/16 as compared to that of preceding year. Industries could not be operated for long period due to scarcity of fuel and raw materials as a result of border obstructions and Terai bandh ultimately leading to such decline. The average growth rate of this sector in last ten years stood at 1.18 percent. 1.21 Contribution of manufacturing industries to GDP has shrunk from 9 percent in FY 2000/01 to 5.5 percent in current fiscal year. The performance of manufacturing industries has not been satisfactory in last ten years. Unfavorable investment environment in the industry sector, inability to create amicable labor relation as expected coupled with lack of reliable and regular supply of electricity, prolonged political transition and weakening industrial infrastructures among others, have long been affecting the industry sector. The growth rate of this sector in the last decade averaged 1.5 percent, while such average has hovered around 0.8 percent in preceding five years.

Electricity, Gas and Water 1.22 Production of electricity, gas and water sector is estimated to decline by 1.7 percent in FY 2015/16 as compared to its preceding year. Decline in production in this sector can be attributed to factors like failure to bring some of the hydroelectricity production centers into operation that were shut down after the earthquake, and rivers getting dry due to persistent drought. Contribution of this sector to GDP in current fiscal year stands at 1.02 percent. Construction Sector 1.23 Production of the construction sector is estimated to drop by 3.98 percent in current fiscal year 2015/16 as compared to its preceding year. Factors behind such negative growth could mainly the closure of national industries, obstructions at the border impeding imports of construction materials, and failure on gaining the momentum by post-earthquake reconstruction works. The average growth rate of this sector in last ten years has remained at 3.01 percent. Contribution of this sector to GDP stands at 6.9 percent in current fiscal year 2015/16. Service Sector Wholesale and Retail Trade 1.24 Wholesale and Retail trade is expected to record a negative growth of 1.13 percent in FY 2015/16. Main factors affecting the sector resulting in such negative growth may be attributable to low agricultural and industrial productions, and decreased availability of saleable goods resulting from lower imports caused by border obstructions. The average growth rate of this sector in last five years is 4.5 percent. Being the largest contributor to GDP among the non-agriculture sectors, contribution of this sector in GDP is estimated to remain at 14.2 percent in current fiscal year .

Hotel and Restaurant 1.25 Output of Hotel and Restaurant sector is estimated to decline by 4.8 percent in FY 2015/16. Earthquake, border obstruction, reduced number of tourist arrival and fuel scarcity are the reasons for the decline in hotel business while domestic tourism dropped due to transport obstructions. This sector contributes 2.1 percent to the GDP. Transport, Storage and Communication 1.26 Despite negative output recorded in land transport in current fiscal year, notable growth achieved in air transportation has resulted in the positive growth in overall transport services sector. The output of transport, storage and communication that grew by 6.2 percent in the last fiscal year is estimated to grow by 2.6 percent in the current fiscal year 2015/16. Under this sector, the output growth rate of transport sector has been 0.5 percent while that of communication and storage has increased by 2.6 percent. The contribution of this sector to GDP has remained at 8.4 percent in the current fiscal year. Financial Intermediation

1.27 The growth rate of this sector in the previous fiscal year 2014/15 remained at 2.9 percent while this is estimated at 3.3 percent in current fiscal year. The contribution of this sector to GDP in current fiscal year stands at 5 percent. Real Estate and Business Services 1.28 Output of this sector in current fiscal year is estimated to grow by 3.7 percent while such growth of this sector in previous fiscal year was limited only to 0.8 percent due to devastating earthquake. Improved real estate trading in urban areas of the country coupled with increased business transactions caused the growth rate of this sector to remain

positive. Contribution of this sector to GDP in current fiscal year stood at 9.2 percent. This sector has grown with an average rate of 4.57 percent in last ten years. Public Administration and Defense 1.29 Based on the budgetary allocation and expenditures on public administration and defense of the central government, output of this sector is estimated to increase by 5.8 percent in current fiscal year 2015/16 against its growth of 5.4 percent in the previous year. Contribution of this sector to GDP is expected to remain at 2.6 percent in current fiscal year. Education 1.30 Output of this sector is estimated to remain at 6.7 percent in FY 2015/16 while it had grown by 3.7 percent in its preceding year. Despite lower medium term utilization, augmentation in income has resulted net growth in value addition of educational institutions. Contribution of this sector in current year's GDP is expected to remain at 6.8 percent. Health and Social Work 1.31 Output of this sector is expected to rise by 8.9 percent in current fiscal year 2015/16 consequent to rise in transactions of private sector health institutions, while this had increased by 10.5 percent in the previous fiscal year. Contribution of this sector to GDP in current fiscal year is estimated to remain at 1.8 percent while its average output growth for the preceding ten years has remained at 6.91 percent. Other Community, Social and Personal Services 1.32 Output of this sector that grew by 4.4 percent in the previous fiscal year is estimated to rise by 5.6 percent in the current fiscal year 2015/16. GDP is expected to be revised due to the expansion of central and local governmental budgetary allocations and expenditure made for community and social services, and private sector operated communication and services. This sector’s contribution to GDP in the current fiscal year is estimated at 4.3 percent while its average growth rate in the preceding ten years has been 8.65 percent.

Sector-wide Detail 1.33 The output of the primary sector that grew by 0.8 percent in previous fiscal year is estimated to rise by 1.2 percent in the current fiscal year 2015/16. The growth rate of this sector averaged 2.87 percent in the preceding ten years. Likewise, output of the secondary sector that had increased by 1.5 percent in the previous fiscal year is estimated to drop by 6.3 percent in FY 2015/16. Average growth rate of this sector for the past ten years stood at 2.12 percent. Similarly, the output of tertiary sector that had grown by 3.6 percent in the previous fiscal year is estimated to rise by 2.7 percent in FY 2015/16. Growth rate of this sector averaged 5.03 percent in the last ten years. GDP Structure 1.34 Nepalese economy has witnessed structural changes. Economy has gradually been shifting from agriculture sector to non-agriculture sector. Contribution of the agriculture sector to GDP is in declining trend while that of non-agriculture sector is gradually increasing. Services sector under the non-agriculture sector has also been expanding rapidly. The average contribution of agriculture sector to GDP between FY 2001/02 and FY 2005/06 had remained at 35.7 percent while it slipped to 33.9 percent between FY 2006/07 and FY 2010/11 and stood at 33.0 percent between FY 2011/12 and FY 2015/16. During the same period, average contributions of the non-agriculture sector were recorded as 64.3 percent, 66.1 percent and 67.0 percent respectively. Contribution of agriculture sector to GDP is 31.7 percent while that of non-agriculture sector is 68.3 percent in the current fiscal year 2015/16. Table 1 (h): Contribution in Gross Domestic Product (in Percent) (Five Year’s Average) Sector 2001/02-05/06 2006/07-10/11 2011/12-15/16 Agriculture 35.7 33.9 33.0 Non-Agriculture 64.3 66.1 67.0 Source: Central Bureau of Statistics

1.35 Though the economy saw some structural changes from the perspective of percentage structure of sector-wide contribution to GDP, and support to promotion of intersectoral economic activities brought in by dynamism in the economy, not any of the sectors has recorded comparatively higher growth. Despite structural changes seen on surface, substantial and positive changes have yet to come by.

Consumption and Investment 1.36 Gross Consumption expenditure at prevailing price is estimated to remain at Rs. 2130.52 billion in FY 2015/16 while it was Rs. 1934.04 billion in its preceding year. The average share of consumption to GDP stood at 89.8 percent in the last ten years while this rose sharply in its succeeding two years. The share of consumption at prevailing price to GDP that stood at 90.2 percent in FY 2006/07 dropped and remained at 86 percent in FY 2010/11 while this is estimated to grow and reach 94.7 percent in FY 2015/16. 1.37 The share of private sector to GDP that had remained at 79.3 percent in FY 2006/07 is expected to stand at 82 percent in current fiscal year 2015/16 while this share remained at 78.4 percent last year. Likewise, the share of government consumption to GDP that stood at 11 percent in FY 2014/15 is anticipated to remain at 10.9 percent in the current fiscal year 2015/16. 1.38 Of the total consumption, private sector’s consumption in the current fiscal year stood at 86.5 percent against 87.9 percent that of 2006/07. Government consumption in the total consumption remained at 11.6 percent and that of not-for-profit organizations is 1.9 percent. Of the private sector consumption, food items hold two-third shares than non- food items and services. In current fiscal year, shares of food items, non- food items and services to total private sector consumption are 66.7 percent, 23.4 percent and 9.9 percent respectively. Expenditure on food items is on the rise as compared to that of non-food items and 13

services due to changed food habits and escalating prices on food items. Consumption expenditures on food items, non-food items and services had remained at 59 percent, 28.7 percent and 12.3 percent respectively. Household consumption expenditure to GDP at current prices has reached 86.2 percent in current fiscal year. 1.39 Gross capital formation expenditure that stood at Rs. 822.30 billion in FY 2014/15 is anticipated to drop and remain at Rs. 763.56 billion in the current fiscal year 2015/16. The share of gross capital formation to GDP at current prices is expected to remain at 34 percent in the current fiscal year while such share in the previous fiscal year was 38.8 percent. 1.40 Gross fixed capital formation expenditure is estimated to stand at Rs.562.46 billion in the current fiscal year 2015/16 against such expenditure of Rs. 588.34 billion in previous fiscal year. The share of gross fixed capital formation to GDP in the current fiscal year is predicted to remain at 25 percent. Contributions of the private sector and government sector to gross fixed capital formation are expected to stand at 76.4 percent and 23.6 percent respectively in the current fiscal year 2015/16 while such contributions were 81.3 percent and 18.7 percent respectively in its preceding year. Per Capita Income 1.41 Per capita GDP at current prices has surged by 4.6 percent to Rs. 79,370 in FY 2015/16. Such GDP stood at Rs. 75,855 in previous fiscal year. Likewise, at constant prices of the previous year, per capita GDP that was Rs. 27,184 is expected to drop by 0.8 percent to Rs. 26,972 in current fiscal year 2015/16. Per Capita GDP at constant prices has declined owing to high inflation rate compared to the production growth rate. Such GDP at constant prices had increased by 1.7 percent in previous fiscal year.

1.42 Actual per capita disposable income has increased by 1 percent to Rs. 37,963 in FY 2015/16. Per capita GDP declined to USD 752 in 2015/16 from USD 762 of last year. Likewise, Per capita gross national income of previous fiscal year also declined from USD 775 to USD 766. Low economic growth rate coupled with depreciation of Nepalese currency against the US Dollar are the reasons for reduced per capita income in the US Dollar term. Savings 1.43 In current fiscal year, gross domestic saving which has low ratio with GDP and gross national saving which has higher ratio with GDP, both have declined. Though gross national savings that continued to remain high due to higher remittance income in preceding years, it has come down in this year. The ratio of gross domestic saving to GDP that remained at 8.8 percent in previous fiscal year is estimated to decline and rest at 5.3 percent in current fiscal year 2015/16. The share of gross national savings to GDP is estimated to decline and remain at 42.9 percent in current fiscal year as compared to its preceding year. Share of such saving was 43.9 percent in previous fiscal year. The ratios of gross domestic savings and gross national savings to GDP averaged 10.2 percent and 38.3 percent respectively in last ten years. Problems and Challenges 1.44 Despite presence of enormous opportunities towards attaining higher economic growth rate through utilization of drivers of the economic development like agriculture, tourism, hydroelectricity and infrastructure at their highest potentials, Nepal has to shrink at lower economic growth rate due to its failure to do so in a timely manner.

1.45 Persistent problems like bandh (blockades), strikes, labor issues, short supply of electricity and difficulties to ensure geographical access to external market have posed challenge to run operational industries in their full capacities. 1.46 Developing capacity of traditional farmers to use newer technology and skill, enhancing access to chemical fertilizers and improved seeds, extending irrigation facility, and establishing interrelationship between agriculture market and other industries for the development of agriculture sector are the daunting challenges. 1.47 Despite expansion of trade, finance, communication, education, health and transport sectors including that of service oriented industry sector along with augmented consumption capacity as a result of increased remittance income, developing the services sector into additional employment oriented sector amid current situation where employment could not be developed comparatively is a challenging task. 1.48 Consumption has continued to grow despite low economic growth rate. Due to increased consumption trend, this year saw historic decline in the domestic saving ratio. This ratio remained low as a result of high consumption trend against low economic growth rate and failure to extend access of institutions and instruments to the general public for saving mobilization. Hence, creating environment to boost savings in a country like Nepal having low per capita income and weak financial infrastructure has remained another challenge to the economy.

2. Public Finance

Public Finance and its Structure

2.1 The government of Nepal had announced budget and programs for fiscal year 2015/16 on 14 th July, 2015 on the backdrops of huge destruction of lives and properties rendered by devastating earthquake of April 25, 2015 and series of subsequent aftershocks. Implementation of budget and programs was brought forward amid new political context that had emerged upon promulgation of new Constitution of Nepal by the Constituent Assembly in the third month of current fiscal year and uncomfortable situation created by a five-month long blockade on border points.

2.2 Government of Nepal had arranged programs and resources by allocating the budget of Rs. 819.46 billion for fiscal year 2015/16. The total budgetary allocation for current fiscal year is higher by 54.17 percent as compared to the gross real expenditure of FY2014/15. The volume of the allocated budget appeared to have increased as a result of resources to be arranged for post-earthquake reconstruction works. Of the total allocation of Rs. 618.10 billion for FY 2014/15, expenditure totaled only to Rs. 531.55 billion, which is 85.99 percent of allocation. Likewise, gross real expenditure for FY 2014/15 was 22.18 percent higher than that of FY 2013/14. The gross real expenditure that amounted to Rs. 370.22 billion in FY 2013/14 is higher by 21.30 percent as compared to that of its preceding fiscal year 2012/13.

2.3 Government revenue in FY 2015/16 is estimated to remain at Rs. 587.94 billion which is 31.14 percent higher than the real income of FY 2014/15. The public income in FY 2014/15 had stood at Rs. 448.33 billion. This revenue of FY 2014/15 is 13.12 percent higher than that of FY 2013/14. Likewise, such revenue of FY 2013/14 had increased by 18.68 percent to Rs. 396.31 billion as compared to its preceding fiscal year. The ratio of public finance to GDP of last five years is as follows.

Table 2 (a): Public Finance and GDP to their Ratios (In Percent) (In Rs.10 Million) Descriptions 2011/12 2012/13 2013/14 2014/15 2015/16* 152734.40 169264.30 194162.40 212047.00 224869.10 GDP 33916.80 35863.80 43505.00 53155.00 81946.00 Expenditure 28798.40 33392.70 39631.00 44833.00 58794.00 Government Income -511.84 -2471.10 -3874.00 -8322.00 -23152.00 Budget Surplus(+)/ Deficiency(-)

Ratio to GDP (In Percent)

Expenditure 22.2 21.2 22.5 25.06 36.44

Government Income 18.9 19.7 20.55 21.14 26.05

Budget Deficit 3.4 1.5 2.0 3.92 10.29 *Estimated Source: Financial Comptrollers General Office and Central Bureau of Statistics

2.4 Fiscal deficit of the Government of Nepal is estimated at Rs. 331.52 billion in FY 2015/16. Of the estimated budget of Rs. 103.28 billion for the fiscal year 2014/15, allocated budget could not be spent at expected level which led to fiscal deficit of Rs. 83.22 billion. Such deficit was Rs. 38.74 billion in FY 2013/14, which is 56.77 percent higher as compared to the fiscal deficit of its preceding fiscal year.

2.5 In comparison to preceding fiscal years, the government revenue in fiscal years 2013/14 and 2014/15 increased by 18.68 percent and 13.12 percent respectively while expenditures in those two respective years grew by 21.30 percent and

22.18 percent respectively. Likewise, during the fiscal year 2013/14, budget deficit had increased by 56.77 percent as compared to that of FY 2012/13 while such deficit in FY 2014/15 had increased by more than hundred percent to Rs. 83.19 billion as compared to that of its preceding fiscal year.

2.6 The ratio of Government expenditure to GDP stood at 25.06 percent in FY 2014/15 while such ratio was 22.5 percent in its preceding fiscal year. The government revenue as compared to GDP that stood at 20.55 percent in FY 2013/14 has reached 21.14 percent in FY 2014/15. The gap between Government’s revenue and expenditure with GDP stood at 3.92 percent in FY 2014/15 while this gap was 3.4 percent in FY 2012/13. Similarly, the gaps remained at 2 percent and 1.5 respectively in the fiscal years 2013/14 and 2012/13. As per the estimate on revenue and expenditure of the government for the current fiscal year 2015/16, revenue, expenditure and budget deficit are likely to remain at 26.05 percent, 36.44 percent and 10.29 percent respectively of GDP.

Government Expenditure

2.7 Of the total budget of Rs. Rs 819.46 billion earmarked for the current fiscal year 2015/16, recurrent expenditure accounted for 59.1 percent, 25.5 percent allocated for capital expenditure while 15.4 percent is allotted for fiscal arrangement. In the previous fiscal year 2014/15, of the gross real expenditure Rs. 531.55 billion, recurrent expenditure was 63.86 percent, capital expenditure stood at 16.71 percent while 19.43 percent was allotted for fiscal arrangement. The details of government expenditure of Nepal government for the current fiscal year and preceding five years are as follows:

Table 2 (b): Details of Government Expenditure (In Rs. 10 million)

2011/12 2012/13 2013/14 2014/15 2015/16* Expenditure Head Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Recurrent Expenditure 24346.0 71.8 24745.5 69.0 30353.0 69.82 33940.7 63.96 48426.6 59.1 Capital Expenditure 5139.1 15.2 5459.8 15.2 6669.4 15.94 8884.3 16.71 20887.7 25.5 Share Investment 1209.4 3.6 890.2 2.5 945.1 2.16 1051.0 1.98 1194.6 1.45 Domestic Loan Investment 1206.4 3.6 1255.2 3.5 1351.0 3.0 2833.8 5.33 5091.1 6.21 Principle Repayment of 662.7 2.0 2094.0 5.8 2515.0 5.8 4742.9 8.92 4110.0 5.01 Domestic Debt Principle Repayment of 1353.2 4.0 1419.0 4.0 1672.0 3.8 1702.7 3.2 2236.0 2.73 Foreign Debt Total Expenditure 33916.8 100.0 35863.8 100.0 43505.5 100.0 53155.4 100.0 81946.0 100.0 *Estimated Source: Financial Comptrollers General Office and appropriation act of current f/Y 2015/16

2.8 In FY 2015/16, the total government expenditure is estimated at Rs. 819.46 which is 54.16 percent higher as compared to the actual expenditure of Rs. 531.55 billion of FY 2014/15. Likewise, the estimated government expenditure of the current fiscal year is higher by 141.6 percent as compared to the actual expenditure of Rs. 339.16 billion of FY 2011/12. The total government expenditure of FY 2012/13 was marginally higher by 5.74 than that of FY 2011/12. In fiscal years 2013/14 and 2014/15, the total government expenditure had increased by almost similar proportion of 21.3 percent and 22.18 percent respectively as compared to their preceding years.

2.9 The share of recurrent expenditure to the total government expenditure in fiscal years from 2011/12 to 2013/14 hovered around 70 percent which fell marginally and rested at 63.86 percent in FY 2014/15 while such expenditure in current fiscal year is estimated to remain at 59.1 percent. The estimated recurrent expenditure of current fiscal year 2015/16 is higher by 42.68 percent as compared to that of FY 2014/15 while this is higher by 89.9 percent if compared with that of FY 2011/12. Thus, about cent percent increment in the recurrent expenditure is speculated during five years period.

2.10 The share of recurrent expenditure to total expenditure in fiscal years 2011/12 and 2012/13 remained equal at 15.2 percent while this grew to 15.94 percent and 16.71 percent in fiscal years 2013/14 and 2014/15. This is estimated to remain at 25.5 percent in the current fiscal year. The estimate of capital expenditure to actual capital expenditure of FY 2015/16 is higher by 135.1 percent as compared to that of FY 2014/15. Likewise, such estimates for current fiscal year as compared to the capital expenditure of preceding fiscal years 2011/12, 2012/13 and 2013/14 seemed to be higher by 306.44 percent, 282.57 percent and 213.18 percent respectively. A challenge lies ahead for the mobilization of allocated capital expenditure on the backdrop of devastating earthquake that struck the country in April, 2015 and a five-month long blockade on the border that lasted for about five months between end of August and the end of January, 2015.

2.11 Government investment in public enterprises and projects for this fiscal year is estimated at Rs. 62.85 billion including share investment of Rs. 11.94 billion and loan investment of Rs. 50.91 billion, which is 7.66 percent of the estimated total government expenditure. The ratio of share and loan investments to actual investment of previous fiscal year 2014/15 stood at 7.31 percent. Likewise, such ratio for FY 2011/12 was 7.2 percent while this declined to some extent and stood at 6 percent and 5.16 percent respectively for its succeeding fiscal years 2012/13 and 2013/14. 2.12 Under the fiscal arrangement, repayment of principle against domestic borrowings and foreign debts stands at 7.74 percent of the total expenditures allocated for the current fiscal year 2015/16, while this figure was 6 percent for FY 2011/12. Such expenditure remained almost consistent at 9.8 percent and 9.6 percent in its two consecutive succeeding fiscal years. In previous fiscal year 2014/15, the share of this expenditure to the total expenditure remained little higher at 12.12 percent as compared to that of its preceding fiscal years. 2.13 Expenditure for fiscal arrangement in FY 2012/13 and FY 2013/14 hovered around 15 percent while it is estimated to remain the same in current fiscal year 2015/16 as well. This expenditure in FY 2011/12 was comparatively lower with its 13.2 percent share to the total expenditure. Due to failure of Nepal government on spending total capital expenditure earmarked for FY 2014/15, this saving was utilized on debt servicing, which made the share of capital expenditure higher by 19.43 percent. Table 2(c) : Detail of Government Expenditure (Status of Spending in the first eight months of fiscal year)

(Rs. 10 Million)

2013/14 2014/15 2015/16 Detail of Spending Amount Percent Amount Percent Amount Percent Current Expenditure 17730.96 87.60 21396.92 61.72 19798.49 73.87 Capital Expediture 1961.42 9.69 8503.20 24.52 2728.37 10.18 Investment in Share 179.54 0.89 239.06 0.69 369.31 1.38 Domestic Loan Investment 339.72 1.68 952.72 2.75 730.72 2.73 Principal Repayment of 20.30 0.10 2627.81 7.58 2226.69 8.31 Domestic Borrowing Principal Repayment of Foreign 7.87 0.04 949.00 2.74 947.75 3.53 Borrowing Total Expenditure 20239.81 100.00 34668.71 100.00 26801.24 100.00 Source: Financial Comptrollers General Office

2.14 Expenditure of the government in the first eight months of current fiscal year totaled Rs. 268.01 billion which is 22.69 percent lower than the total expenditure of Rs. 346.68 billion during in the corresponding period of the previous fiscal year. This expenditure for previous fiscal year 2014/15 was higher by 71.28 percent as compared to that of its preceding fiscal year. The government expenditure earmarked for the current fiscal year could not be spent as expected due to uncomfortable situation emerged as a result of earthquake followed by border obstructions.

2.15 Recurrent expenditure in the first eight months of the current fiscal year 2015/16 stood at Rs. 197.98 billion which is 73.87 percent of the total expenditure made during the same period and 7.47 percent less as compared to that of corresponding period of previous fiscal year 2014/15. Such expenditure in the first eight months of FY 2014/15 was 20.67 percent higher as compared to that of corresponding period of its preceding fiscal year 2013/14. Likewise, capital expenditure during the first eight months of FY 2014/15 is 333.52 percent higher totaling Rs. 85.03 billion as compared to that of the corresponding period of its preceding fiscal year 2013/14. This expenditure was 24.52 percent of the total expenditure madein the same period of that fiscal year. Capital expenditure in the first eight months of the current fiscal year 2015/16 is just 10.18 percent of the total expenditure, and lower by 67.91 percent as compared to that of its preceding fiscal year.

2.16 In total expenditure, the amount set aside for share and loan investments on public enterprises and various projects in the first eight months of the current fiscal year 2015/16 stands at 4.11 percent. The shares of such investments during the same period of its preceding fiscal years 2013/14 and 2014/15 remained at 2.57 percent and 3.44 percent respectively. Repayment of principle against domestic borrowings and foreign debts in the first eight months of FY 2013/14 was just 0.14 percent of the total expenditure while such expenditures remained at 10.32 percent and 11.84 percent respectively in the corresponding periods of the fiscal years 2014/15 and 2015/16. Under the principle repayment against domestic borrowings and foreign debts heading for the first eight months of FY 2014/15 and 2015/16, a sum of Rs. 35.76 billion and Rs. 31.74 billion

have been paid respectively. Such payment totaled Rs. 280 million during the same period of FY 2013/14. The shares of expenditures on fiscal arrangements to the total expenditure during the first eight months of fiscal years 2013/14, 2014/15 and 2015/16 continued to rise and stood at 2.71 percent, 13.76 percent and 15.95 percent respectively.

Status of Service and Function-wise Recurrent Expenditures

2.17 Of the total allocation of Rs. 484.26 billion recurrent expenditure earmarked for the current fiscal year 2015/16, public services expenditure head is estimated to hold topmost position with 30.96 percent. The share of such expenditure to total recurrent expenditure was highest even in its preceding fiscal year 2014/15 with 29.40 percent. Such expenditures to their respective total recurrent expenditures in fiscal years 2011/12, 2012/13 and 2013/14, however, remained second largest with 22.41 percent, 24.46 percent and 20.65 percent respectively. Education sector occupied highest position with nearly 25 percent share to the total recurrent expenditure in those three fiscal years.

Table 2 (d): Service and Function-Wise details of Recurring Expenditure (In Rs. 10 million) Fiscal year Fiscal Year 2011/12 2012/13 2013/14 2014/15 2015/16* Expenditure Head Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent General Public 5455.04 22.41 6052.36 24.46 6268.55 20.65 9978.58 29.40 14991.78 30.96 Service Defense 2077.98 8.53 1847.69 7.47 2577.82 8.49 2807.31 8.27 2932.34 6.06 Public Law & Order 3607.53 14.82 3483.2 14.07 3985.41 13.13 3004.20 8.85 3150.03 6.50 Economic Affair 3473.68 14.26 3596.49 14.53 5068.08 16.70 5260.59 15.50 10183.19 21.03 Environmental 46.51 0.20 29.16 0.12 152.14 0.50 281.49 0.83 397.64 0.82 Protection Housing and Community 323.41 1.33 230.65 0.93 604.64 1.99 238.94 0.70 497.33 1.03 Amenities Health 1949.54 8.0 1891.83 7.65 2336.20 7.7 2618.84 7.72 3792.01 7.83 Recreation, Culture 186.42 0.77 225.59 0.91 360.64 1.19 298.71 0.88 401.03 0.83 & Religion Education 6191.42 25.43 6229.07 25.17 7769.93 25.60 7974.48 23.50 9847.4 20.33 Social Security 1034.47 4.25 1159.50 4.69 1229.77 4.05 1477.63 4.35 2233.84 4.61 24745.5 Total 24346 100 100 30353.18 100 33940.77 100 48426.59 100 4 *Estimated Source: Financial Comptrollers General Office & appropriation alt of current F/Y 2015/16

2.18 Expenditure on defense heading is estimated to remain at 6.06 percent of the total expenditure in FY 2015/16. The share of this expenditure to the total expenditure hovered around 8 percent since FY 2011/12 until the

fiscal year 2014/15. Expenditure on public peace and security heading to total expenditure for the fiscal years 2011/12 to 2014/15 accounts for 14 percent while the share of such expenditure declined and rested at 8.85 percent to the total expenditure in FY 2014/15. Such share to the total expenditure declined further to 6.5 percent in the current fiscal year 2015/16. Expenditure on economic affair in the current fiscal year is estimated to grow by little and reach 21.03 percent as compared to that of about 15 percent spent in its preceding four consecutive fiscal years.

2.19 The share of expenditure on environment protection heading to the total recurrent expenditure in current fiscal year 2015/16 and its preceding four consecutive fiscal years remained lowest with less than 1 percent. Total expenditure under this heading is estimated to remain at Rs. 3.97 billion in current fiscal year. During this period, the share of expenditure under housing and community services heading to the total expenditure hovered around 1 percent. In the current fiscal year and its preceding four consecutive fiscal years, expenditures under health and social security headings shared about 8 percent and 4 percent respectively to their respective total recurrent expenditures while those under the entertainment, culture and religion headings hovered around 1 percent.

Table 2(e) : Service and Function-Wise details of Current Expenditure (Expenditure Status for the first eight months of Fiscal Year) (In Rs. 10 Million) 2013/14 2014/15 2015/16 Expenditure Head Amount Percent Amount Percent Amount Percent General Public 3357.61 18.94 5731.70 26.79 4987.19 25.19 Service Defense 1740.86 9.82 2084.98 9.74 1896.23 9.58 Public Law & Order 2625.54 14.81 2045.96 9.56 1907.63 9.63 Economic Affair 2775.08 15.65 3195.43 14.93 2656.57 13.42 Environmental 126.05 0.71 179.34 0.84 120.90 0.61 conservation Housing and Community 198.81 1.12 108.24 0.51 155.72 0.79 Amenities Health 1263.20 7.12 1710.02 7.99 1420.30 7.17 Recreation, Culture 151.46 0.85 251.50 1.18 182.16 0.92 & Religion Education 4743.28 26.75 5054.73 23.62 5345.88 27.0 Social Security 749.06 4.23 1035.00 4.84 1125.91 5.69 Total 17730.95 100 21396.90 100 19798.49 100 Source: Financial Comptrollers General Office

2.20 Of the total recurrent expenditure earmarked for the current fiscal year 2015/16, Rs. 197.98 billion has been spent in its first eight months and of this, Rs. 49.87 billion is spent on general public service heading. The total expenditures during the same periods of the fiscal years 2014/15 and 2015/16 stood at Rs. 177.30 billion and 213.96 billion respectively and of these, expenditures on general public services for their respective fiscal years accounted for Rs. 33.57 billion and 57.31 billion. The shares of such expenditures in current fiscal year and its preceding year to their respective total expenditures remained around 25 percent while such expenditure shared nearly 19 percent to the total expenditure earmarked for FY 2013/14. Expenditures under education heading in the first eight months of the fiscal years 2013/14 and 2015/16 were the highest with about 27 percent to their respective recurrent expenditures while this stood at 23.62 percent in FY 2014/15. During the first eight months of FY 2014/15, expenditure on general public services heading had the highest share of 26.79 percent to the total recurrent expenditure.

2.21 Of the total expenditure made during the first eight months of FY 2013/14 through to same period of FY 2015/16, expenditures on environment protection, housing and community services and entertainment, culture and religion headings accounted for nearly 1 percent of less. Likewise, during the same period, expenditures on defense heading accounted for 9 percent, economic affair accounted for about 14 percent, about 7 percent on health and social security accounted for approximately 5 percent. Expenditure on public peace and security front in the first eight months of FY 2013/14 shared 14.81 percent to the total recurrent expenditure while such expenditures during the same period of FY 2014/15 and FY 2015/16 are slightly higher than 9 percent.

Status of Service and Function-wise Capital Expenditures

2.22 Of the total capital expenditure including that of fiscal arrangement of Rs. 335.20 billion allocated for FY 2015/16, economic affair is expected to occupy the topmost position with Rs. 55.91 billion. The shares of such expenditure to total capital expenditure in fiscal years 2011/12, 2012/13 and 2014/15 had hovered around 65 percent while that of FY 2013/14 was just 45.52 percent. General public service is estimated to hold 28.05

percent share in the total capital expenditure allocated for FY 2015/16 which was slightly lower than 35.62 percent in FY 2013/14 while expenditure on this heading in FY 2011/12, 2012/13 and 2014/15 accounted for more than 4 percent. The table below depicts the detailed status of service and function-wise capital expenditure from FY 2011/12 to FY 2015/16.

Table 2 (f): Service and Function-Wise details of Capital Expenditure (In Rs. 10 million)

Fiscal Year Expenditure Head 2011/12 2012/13 2013/14 2014/15 2015/16* Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent General 209.63 3.97 209.63 3.84 4684.58 35.62 313.07 3.52 9403.82 28.05 Public Service Defense 242.23 4.59 242.23 4.44 658.80 5.01 453.38 5.10 816.96 2.44 Public Law & 319.04 6.05 293.09 5.37 511.42 3.89 392.70 4.42 772.75 2.30 Order Economic 3387.92 64.19 3629.10 66.47 5986.82 45.52 5877.42 66.16 18742.62 55.91 Affair Environmental 45.21 0.86 32.94 0.60 105.08 0.80 160.48 1.81 1118.12 3.34 Protection Housing and Community 678.45 12.86 708.51 12.98 822.82 6.26 1292.49 14.55 2201.44 6.57 Amenities Health 337.47 6.39 295.34 5.41 315.64 2.40 327.99 3.69 341.84 1.02 Recreation, Culture & 20.19 0.38 15.60 0.28 30.59 0.23 36.37 0.41 72.57 0.22 Religion Education 13.88 0.26 13.91 0.25 12.64 0.09 9.60 0.11 16.87 0.05 Social 23.69 0.45 19.50 0.36 23.65 0.18 20.84 0.23 33.16 0.10 Security Total 5277.71 100 5459.85 100 13152.04 100 8884.34 100 33520.15 100

*Estimated Source: Financial Comptrollers General Office and Appropriation Alt of Current F/Y 2015/16

2.23 The share of expenditure on defense heading to the total capital expenditure is expected to remain at 2.44 percent while about 5 percent was the share of expenditure in this heading to the total expenditure in the fiscal years between 2011/12 and 2013/12. Likewise, the share of capital expenditure on education, social security, defense, entertainment, culture and religion headings was lower than 1 percent in FY 2011/12 through to 2013/14 while such expenditure on those heading is expected to remain close to 1 percent as well in the current fiscal year2015/16. The share of capital expenditure on environment protection heading that was around 1 percent rose to 1.8 percent and 3.34 percent respectively in fiscal years 2014/15 and 2015/16. On the public peace and security front, the share of capital expenditure to its total that remained close to 6 percent in fiscal years 2011/12 and 2012/13 went down to nearly 4 percent in their two consecutive succeeding fiscal years. The share of

such expenditure in the current fiscal year 2015/16 is speculated to go further down to 2.30 percent.

2.24 The share of capital expenditure on housing and community amenities heading for the fiscal years 2011/12 and 2012/13 hovered around 13 percent whereas, the expenditure ratio increased to some extent and reached 14.55 percent in FY 2014/15 but such ratio dropped to 6.26 percent in fiscal year 2013/14. The share of capital expenditure on housing and community amenities heading is projected to stay at 6.57 percent as well in the current fiscal year 2015/16. Of the total capital expenditure, the share of health sector in fiscal years 2011/12 and 2012/13 that remained at 6.39 percent and 5.41 percent respectively descended to 2.4 percent and 3.69 respectively in their immediate succeeding fiscal years. Of the total capital expenditure In the current fiscal year 2015/16, Rs. 3.41 billion is estimated to be spent under health heading with its share of 1.02 to total capital expenditure.

Table 2 (g) : Service and Function-Wise details of Capital Expenditure including Financial Provision (Expenditure Status in the first eight months of Fiscal Year) (In Rs. 10 million) Fiscal Year Expenditure Head 2013/14 2014/15 2015/16 Amount Percent Amount Percent Amount Percent General Public Service 58.80 3.0 4060.69 47.75 102.17 3.75 Defense 120.09 6.12 142.46 1.68 60.67 2.22 Public Law & Order 161.16 8.21 184.46 2.17 110.05 4.03 Economic Affair 1328.04 67.71 3341.68 39.30 1940.88 71.14 Environmental Protection 11.17 0.57 107.68 1.27 31.47 1.15 Housing and Community 174.82 8.91 512.85 6.03 362.96 13.30 Amenities Health 90.79 4.63 132.89 1.56 93.65 3.43 Recreation, Culture & Religion 6.22 0.32 9.53 0.11 13.48 0.50 Education 3.66 0.19 3.62 0.04 3.14 0.12 Social Security 6.67 0.34 7.34 0.09 9.90 0.36 Total 1961.42 100 8503.20 100 2728.37 100 Source: Financial Comptrollers General Office 2.25 Of the total Rs. 27.28 billion earmarked on capital expenditure with that of fiscal arrangement for the current fiscal year 2015/16, economic affair holds the highest share with Rs. 19.40 billion with a ratio of 71.14 percent in the first eight months of this year. The share of such

expenditure during the same period of two consecutive fiscal years 2013/14 and 2014/15 to their respective capital expenditure stood at 67.71 percent and 39.30 percent respectively. Of the expenditure made during first eight months of fiscal year 2014/15 and current fiscal year 2015/16, about 3 percent has been spent on general public services, while such expenditure accounted for 47.75 percent in the corresponding period of FY 2014/15,. During the same period of fiscal year 2013/14, shares on defense, public peace and security and health headings to the total capital expenditure accounted for 6.12 percent, 8.21 percent and 4.63 percent respectively while in FY 2014/15 and current fiscal year 2015/16, such expenditures declined with defense heading accounting for 1.68 percent and 2.22 percents in these respective years. In the same period, public peace and security shared 2.17 percent and 4.03 percent of expenditures respectively. Similarly, health heading shared 1.56 percent and 3.43 percent in its respective fiscal years.

2.26 Of the total capital expenditure, entertainment, culture and religion, education and social security headings shared less than 1 percent from fiscal years 2013/14 to first eight months of the current fiscal year while that of environment protection heading during the same period was also around 1 percent. Likewise, in first eight months of FY 2013/14, Rs. 1.74 billion was spent on housing and community amenities by sharing 8.91 percent of the total capital expenditure. The share of such expenditure in first eight months of fiscal year 2014/15 fell to some extent to 6.02 percent. The share of such expenditure during the same period of the current fiscal year 2015/16, however, has doubled thereby reaching 13.30 percent.

Government Income

2.27 Government income of Rs. 587.94 billion is estimated to be mobilized in current fiscal year 2015/16, which is higher by 31.14 percent than that of previous fiscal year 2014/15. Growth rate of the government income of previous fiscal year 2014/15 was 13.12 percent higher than that of preceding fiscal year 2013/14. Shares of revenue mobilization, foreign grants, and principle repayment against the government borrowing in the current fiscal year are estimated to remain at 80.80 percent, 18.86 percent

and 0.34 percent respectively. A sum of Rs. 6.9 billion was recovered from unaudited account last year that contributed 1.35 percent to the total government income. The table below shows the status of government income from FY 2010/11 to FY 2015/16.

Table 2 (h): Details of Government Income (In Rs. 10 Million) Revenue Fiscal Year Heading 2011/12 2012/13 2013/14 2014/15 2015/16* Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Tax Revenue 21172.26 73.52 25921 .49 77.63 31244.12 78.72 35595.57 79.03 42701.10 72.63 Non-Tax 3265.14 11.33 3680.62 11.02 4417.95 11.13 4991.07 11.08 4800.11 8.17 Revenue Total 24437.40 84.85 29602 .11 88.65 35662.07 89.86 40586.64 90.11 47501.21 80.80 Revenue Foreign 4081.02 14.17 3522.98 10.55 3396.01 8.56 3637.42 8.08 11092.94 18.86 Grants Principle Repayment 18.70 0.07 75.53 0.23 56.98 0.14 208.15 0.46 200 0.34 Receipt Irregularities 261.24 0.91 192.11 0.57 573.42 1.44 609.04 1.35 0 0 Recovery Total Government 28798.36 100 33392 .73 100 39688.48 100 45041.25 100 58794.15 100 Income *Estimated Source: Financial Comptrollers General Office and budght speech of current F/Y 2015/16

2.28 Of the total government income estimated for FY 2015/16, revenue is expected to have a share of 80.80 percent with mobilization of Rs. 475.01 billion, which is 17.03 percent higher than that of preceding fiscal

year 2014/15. Revenue mobilization in fiscal year 2012/13 and 2013/14 hovered around 21 percent while that in FY 2014/15 was just 13.8 percent. Contribution of revenue to the total income in FY 2011/12 had remained at 84.85 percent while it grew to 88.65 percent, 89.86 percent and 90.11 percent respectively in the fiscal years from 2012/13 2013/14, and 2014/15. It seems an arduous task to mobilize revenue at the desired level owing to uncomfortable environment that has resulted from devastating earthquake of April, 2015 and subsequent aftershocks, about five-month long border obstructions since August last year, low agricultural production due to adverse climate causing some erosion on demand side of the economy, and shrunken economic activities .

2.29 Foreign grants is likely to contribute 18.86 percent to the total government income with its mobilization of Rs. 110.92 billion in current fiscal year 2015/16. Such grants had contributed 8.08 percent to the government’s total income with the mobilization of Rs. 36.37 billion in its preceding fiscal year 2014/15. Effective Implementation is likely to fall short as a result of higher estimate of revenue mobilization by 205 percent in the current fiscal year as compared to that of previous fiscal year. Likewise, foreign grants of Rs. 40.81 billion was mobilized in FY 2011/12 which declined to Rs. 35.22 billion and Rs. 33.96 billion respectively in its two consecutive succeeding fiscal years 2012/13 and 2013/14. During this period, the contribution of foreign grants to the government’s total income reduced in fiscal years 2011/12, 2012/13 and 2013/14 to 14.17 percent, 10.55 percent and 8.56 percent respectively. The contribution from principle repayment of loan to the government’s total income had stood at around 1 percent in fiscal years from 2011/12 to 2014/15. Principle repayment of loan is likely to contribute 0.34 percent to the government’s total income in current fiscal year 2015/16.

2.30 Government income is likely to contribute 71.74 percent to the budget of Rs. 819.46 billion allocated for the current fiscal year 2015/16. It had contributed almost 85 percent to the government’s total expenditure of fiscal years 2011/12, 2013/14 and 2014/15 while such contribution to total expenditure in fiscal year 2012/13 had remained at 93.10 percent. Contribution of foreign grants to the government’s total expenditure

remained at 12.03 percent in FY 2011/12 while this continued to decline in its three consecutive succeeding fiscal years and stood at 9.82 percent, 7.30 percent and 6.84 percent respectively. Foreign grants of Rs. 110.92 billion is estimated to be mobilized in the current fiscal year 2015/16 with its contribution of 13.53 percent to the government’s total expenditure.

Table 2 (i) Contribution of Government Income, Foreign Grant, Domestic Debt and Foreign Debt to Total Government Expenditure (In Rs. 10 million) Fiscal Year Description 2011/12 2012/13 2013/14 2014/15 2015/16* Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Total Government 33916 .70 _ 35863.80 _ 46505 _ 53155 _ 81946 _ Expenditure Total Government 28798 .36 84.90 33392.73 93.10 39688.48 91.22 45041.25 84.74 58794.15 71.74 Revenue Total 24437 .40 72.05 29602.11 82.54 35662.07 76.68 40586.64 76.35 47501.21 57.96 Revenue Foreign 4081.02 12.03 3522.98 9.82 3396.01 7.80 3637.42 6.84 11092.94 13.53 Grant Domestic 3641.86 10.73 1904.28 5.3 1998.28 4.29 4236.75 7.97 8800.0 10.73 Debt Foreign 1108.30 3.26 1196.94 3.33 2113.23 4.54 2043.22 3.84 9496.47 11.58 Debt *Estimated Source: Financial Comptrollers General Office and budght speech of current F/Y 2015/16

2.31 The shares of domestic debts to the government’s total expenditure in the fiscal years from 2011/12 to 2014/15 stood at 10.73 percent, 5.30 percent

and 4.29 percent respectively while that of foreign debts hovered around 4 percent during these periods. The share of domestic and foreign debts to the government’s total expenditure is expected to remain at 10.73 percent and 11.58 percent with their contribution of 22.31 percent in the current fiscal year 2015/16 which is speculated to remain higher by nearly by two folds as compared to the contribution of 11.81 percent to the government’s total income of FY 2014/15.

Revenue Mobilization

2.32 Revenue mobilization of Rs. 475.01 billion with Rs. 427.01 billion collected from tax revenue and Rs.48 billion from non-tax revenue is estimated for the current fiscal year 2015/16. The shares of tax and non- tax revenues to the total revenue stood at 87.7 percent and 12.3 percent with revenue mobilization of Rs.405.86 billion in previous fiscal year 2014/15. The shares of tax and non-tax revenues to the total revenue mobilization from the fiscal years 2011/12 to 2013/14 remained close to 87 percent and 13 percent respectively while such shares are expected to remain at 89.89 percent and 10.11 percent in current fiscal year 2015/16. The table below shows the Revenue mobilization status from FY 2011/12 to FY 2015/16.

2.33 Contribution of goods and services based tax has attained the top position in the tax revenue collected between FY 2011/12 and the current fiscal year with about 45 percent share to the total revenue. During this period, contribution of income, profit and capital gains taxes, and that of foreign trade based tax to total revenue remained close to 21 percent and 18 percent respectively. The share of property tax in the form of direct tax to the total revenue collected in fiscal years from 2011/12 to 2014/15 remained below 2 percent while such share went up to 2.3 percent in previous fiscal year. Likewise, the property tax amounting Rs. 12.04 billion is expected to be mobilized in current fiscal year contributing 2.54 percent to the total revenue. The share of other taxes to the revenue mobilization in the fiscal years from 2011/12 to 2015/16 has remained about 0.5 percent.

Table 2 (j) : Detail of Revenue Income (In Rs.10 million) Fiscal Year Revenue Head 2011/12 2012/13 2013/14 2014/15 2015/16* Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Tax on Income, Profit 5130.30 21.0 6418.67 21.68 7561.36 21.20 8616.57 21.23 10564.88 22.24 and Capital Gains Tax based on 155.50 0.64 188.06 0.64 244.99 0.69 292.58 0.72 342.58 0.72 Remuneration Property Tax 358.84 1.47 534.02 1.81 667.11 1.87 939.94 2.32 1204.40 2.54 Tax based on Goods 11056.10 45.24 12927.05 43.67 15771.84 44.23 18002.52 44.35 21976.43 46.26 and Services Tax based on Foreign 4339.06 17.75 5693.18 19.23 6798.05 19.06 7484.12 18.44 8329.17 17.53 Trade Other Taxes 132.38 0.54 160.52 0.54 200.77 0.56 259.84 0.64 283.60 0.60 Net Tax Revenue 21172.18 86.64 25921.49 87.57 31244.12 87.61 35595.57 87.7 42701.06 89.89 Income from Assets 1765.24 7.22 1760.84 5.95 2067.52 5.80 2270.87 5.60 2158.52 4.54 Income from the sales 691.31 2.83 1124.7 3.80 1164.53 3.26 1223.06 3.01 1304.48 2.75 of Goods and Services Penalties, Fines and 31.56 0.13 33.82 0.11 45.28 0.13 125.43 0.31 51.44 0.11 Confiscations Voluntary Handover 0.08 0.0 0.51 0.0 0.24 0.0 0.50 0.0 0.13 0.0 except Grants Miscellaneous 776.92 3.18 760.77 2.57 1140.39 3.20 1371.21 3.38 1285.51 2.71 Revenue Net Non-Tax 3265.11 13.36 3680.64 12.43 4417.95 12.39 4991.07 12.30 4800.08 10.11 Revenue Net Revenue 24437.29 100 29602.13 100 35662.07 100 40586.64 100 47501.14 100 *Estimated Source: Financial Comptrollers General Office and budght speech of current F/Y 2015/16 2.34 On non-tax revenue mobilization front, property earned income tax is expected to remain at Rs. 21.58 billion which would contribute 4.54 percent to the total revenue mobilization in current fiscal year 2015/16. Such tax in the fiscal years from 2012/13 to 2014/15 had contributed about 6 percent to the total revenue while this contributed Rs. 17.65 billion ( 7.22 percent) to the total revenue in FY 2011/12. On non-tax revenue side, the share of fines and penalties in fiscal years from 2011/12 to 2013/14 had stood around 0.13 percent with this rose to 0.31 percent in FY 2014/15. Current fiscal year 2015/16 is likely to see 0.11 percent contribution of fines and penalties to the total revenue. The share of Non- tax revenue receipt from the trading of goods and services to the total revenue stood close to 3 percent in the fiscal years from 2011/12 to 2015/16. During the same period, the share of voluntary handover except that of grants remained negligible and miscellaneous non-tax revenues stood close to 3 percent.

Table 2(k) : Revenue Detail (Revenue Detail of first eight months of fiscal year) (In Rs. 10 million) Revenue Heads Fiscal Year 2013/14 2014/15 2014/15 Amount Percent Amount Percent Amount Percent Tax on Income, Profit and Capital 3754.36 19.58 2444.62 12.09 4922.94 21.30 Gains Tax based on Remuneration 125.50 0.66 148.81 0.73 181.59 0.79 Property Tax 249.20 1.30 362.87 1.79 447.45 1.94 Tax based on Goods and Services 8914.70 46.50 10614.21 52.50 10674.01 46.19 Tax based on Foreign Trade 3876.64 20.22 4815.71 23.82 4153.67 17.98 Other Taxes 115.14 0.60 129.20 0.64 139.15 0.60 Net Tax Revenue 17035.54 88.86 18515.41 91.57 20518.82 88.80 Income from Assets 971.35 5.07 491.92 2.43 848.12 3.670 Income from the sales of Goods and 675.30 3.52 496.93 2.46 849.15 3.674 Services Penalties, Fines and Confiscations 20.23 0.11 26.33 0.13 38.99 0.17 Voluntary Handover except Grants 0.21 0.0 0.36 0.0 0.22 0.0 Miscellaneous Revenue 468.55 2.44 688.05 3.41 852.36 3.69 Net Non-Tax Revenue 2135.64 11.14 1703.59 8.43 2588.84 11.20 Net Revenue 19171.18 100 20219 100 23107.66 100 Source: Financial Comptrollers General Office 2.35 In the first eight months of the current fiscal year 2015/16, revenue mobilization totaled to Rs 231.07 billion with tax revenue sharing 88.80 percent and non-tax 11.20 percent. Despite uncomfortable situation that economy encountered in this year, this level of revenue mobilization is still higher by 14.28 percent as compared to the corresponding period of previous fiscal year. In the current fiscal year 2015/16, contribution of goods and services based taxes to total revenue has been highest with 46.19 percent as in its two consecutive preceding fiscal years. Likewise, except for remuneration based income tax collected on direct taxes side, and fines, penalties and grants on the indirect taxes side, taxes handed over through voluntary tax filings in this period has contributed less than one percent to the total tax revenue collected in this period. Though there has been almost equal contribution of tax and non-tax revenues to the total revenue in the fiscal years 2013/14 through to 2015/16, the shares of foreign trade based tax to the total revenue in FY 2013/14 and FY 2014/15 remained 20.22 percent and 23.82 percent respectively while such contribution declined to 17.98 percent in current fiscal year 2015/16 as a result of obstructions at border points.

Foreign Grants

2.36 Of the total budgetary allocation made for the current fiscal year 2015/16, foreign grants is estimated to cover Rs. 110.92 billion. A total of Rs. 36.37 billion grants was mobilized in fiscal year 2014/15. The estimated foreign grant for the current fiscal year is higher by about 205 percent than that of previous fiscal year. About Rs. 49.81 billion as foreign grant was mobilized in FY 2011/12 while such grants totaled to Rs. 35.22 billion and 33.96 billion respectively in its two consecutively succeeding fiscal years.

2.37 The shares of multilateral and bilateral grants in the total foreign grants stood at 51.60 percent and 48.40 percent respectively in fiscal year 2014/15. Of the total foreign grants in current fiscal year, multilateral grant is expected to reach Rs. 66.34 billion while Rs. 44.58 billion is likely to come as bilateral grant with their respective shares of 59.8 percent and 40.2 percent to such total. The shares of multilateral and bilateral grants to the total foreign grants were almost equal in fiscal years 2011/12 and 2013/14 while share of multilateral grant stood at 52.35 percent and that of bilateral grants remained at 47.65 percent in FY 2012/13. 2.38 In the first eight months of the current fiscal year 2013/14, foreign grants of Rs. 17.11 billion has been mobilized while such grants of Rs. 14.30 billion and Rs. 11.57 billion were mobilized during the same period of fiscal years 2014/15 and 2015/16. During this period, about Rs. 4 billion with the highest share of such grant was mobilized on economic affair heading while entertainment, culture, and religion had the lowest share of grants with about Rs. 400 million or less. Especially, failure on capital expenditure spending as expected has resulted in weak mobilization of foreign grants as well. Fiscal Deficit and Deficit Financing 2.39 Public expenditure has crucial role to drive the economy towards the desired course. This would also help promote private sector’s investment. Revenue, foreign grants, principle repayment and recovery from unaudited accounts among others are the government’s sources of income that are mobilized for public expenditure. Aside from this, fiscal deficit is being adopted with the assumption that public expenditure will be higher as compared to estimated government income in order to use the available means and resources of economy to extent possible.

Through this, high and sustainable economic growths are expected by maintaining economic stability. Fiscal deficit, where public expenditure is higher than government’s income, is met through the deficit financing. In such case of deficit financing, the government manages funds to meet its expenditure either through domestic loan or foreign debts or through change in cash reserves or any or all of these measures. Arrangements made by the government of Nepal for deficit financing in fiscal years from 2011/12 to 2015/16 are as follows. Table 2 (l) : Detail of Fiscal Deficit and Deficit Financing (In Rs. 10 million) Description Fiscal Year 2011/12 2012/13 2013/14 2014/15 2015/16* Fiscal Deficit 5118.4 2471.1 3874 8322 23152 Sources of Fiscal Deficit Financing Foreign Debts 1108.30 1196.94 2113.23 2043.22 9496.47 Domestic Borrowing 3641.86 1904.28 1998.28 4236.75 8800.0 Change in Cash - 368.19 630.17 294.79 - 1834.57 - 4855.53 Reserves(-) Surplus(+) *Estimated Source: Financial Comptrollers General Office and budght speech of current F/Y 2015/16 2.40 In the current fiscal year 2015/16, of the allocated budget, the government’s income is likely to fall short by Rs. 231.52 billion resulting in fiscal deficit. The share of this deficit to GDP that is estimated at Rs. 2248.69 billion for current fiscal year is likely to remain at 10.29 percent. Likewise, fiscal deficit in current fiscal year 2015/16 is higher by 178.20 percent as compared to Rs.83.22 billion of previous fiscal year 2014/15. The share of fiscal deficit to GDP of Rs. 2120.47 billion stood at 3.92 percent in previous fiscal year 2014/15. A target is set to finance the fiscal deficit of current fiscal year through Rs. 94.96 billion as foreign debts, Rs. 88 billion in the form of domestic borrowings and the rest Rs. 48.56 billion that still fell short is through the change in cash reserves.

2.41 In fiscal year 2011/12, government budget deficit had stood at Rs. 51.18 billion which dropped in its two consecutive subsequent fiscal years reaching Rs, 24.71 billion and 38.74 billion respectively. Fiscal deficit declined owing to the government’s failure to mobilize allocated budget at desired level during this period. The share of fiscal deficit in fiscal years from 2011/12 to 2013/14 to the GDPs of their respective fiscal years stood at 3.4 percent, 1.5 percent and 2.0 percent. Shares of such

deficits that ranged from 2 percent to 3.4 percent to their respective GDPs during these fiscal years indicate that the government of Nepal has space to expand its expenditures in productive sectors

2.42. For financing fiscal deficit, foreign debts equivalent to Rs. 12 billion was mobilized in fiscal years 2011/12 and 2012/13 while foreign debts of about Rs. 21 billion was mobilized during the fiscal years 2013/14 and 2014/15. Domestic loan of Rs. 36.41 billion was mobilized in FY 2011/12 while in fiscal years 2012/13 and 2013/14, domestic loan of only Rs. 20 billion was mobilized as spending of public expenditure at desired level during these fiscal years was not visible.

2.43 In the first eight months of current fiscal year 2015/16, the total outstanding public debt stood at Rs. 558.83 billion. Such amount during the same period of previous fiscal year was Rs. 511 billion. Foreign debts occupy nearly two-third space in the total outstanding public debts.

Total Public Debt and Payment 2.44 Public debts are used in order to mobilize means and resources that are available actually in developing countries to the maximum extent to drive the economy ahead dynamically. The total outstanding public debt has stood at Rs. 544.91 billion until fiscal year 2014/15. Of this, the shares of domestic and foreign debts are 37 percent and 63 percent respectively. The outstanding public debt in FY 2010/11 that totaled Rs. 443.70 billion rose gradually and reached 553.50 billion in previous fiscal year 2014/15. The total outstanding public debt grew to 22.81 percent in FY 2014/15 as compared to that of FY 2010/11. 2.45 Of the total public debts in FY 2013/14, principle repayment accounted for Rs.41.87 billion while such repayment stood at Rs. 64.45 billion in its subsequent fiscal year 2014/15. The principle repayment in FY 2014/15 is higher by about 54 percent as compared to that of its preceding year. The principle repayment that accounted for Rs. 17.22 billion in FY 2010/11 started to grow gradually in its subsequent fiscal years. Likewise, interest of Rs. 9.26 billion against total public debts was paid in FY 2014/15 while such interest of Rs. 12.03 billion was paid in its subsequent year. The interest against public debts ranging from Rs. 12 billion to Rs. 15 billion were paid in fiscal years from 2010/11 to

2012/13. Since public expenditure did not rise as expected in this period, government of Nepal has increased its debt service payments. . 2.46. In the first eight months of current fiscal year 2015/16, the total outstanding public debts stood at Rs. 558.83 billion against Rs. 511 billion during the same period of last year (2.43 repeated). Likewise, principle repayment of Rs. 31.74 billion together with Rs. 4.82 billion interest against domestic and foreign debts have been paid during the first eight months of the current fiscal year 2015/16. During the same period of previous fiscal year 2014/15, such figures had stood at Rs. 23.77 billion and Rs. 5.46 billion respectively.

Table 2(m) : Outstanding Stock of Public Debt and Principle Repayment and Interest Expenditure (In Rs. 10 million) Description Fiscal Year 2010/11 2011/12 2012/13 2013/14 2014/15 Detail of Outstanding stock of debt Domestic Debt 18419.90 21392.06 21187.28 20668.86 20165.68 Foreign Debt 25950.10 30928.70 33344.20 34681.91 34326.18 Total Debt 44370.0 52320.76 54531.48 55350.77 54491.86 Detail of Principle Repayment Expenditure Domestic Debt 600.2 662.68 2094.0 2515.24 4742.99 Foreign Debt 1121.81 1353.24 1419.0 1672.46 1702.78 Total Principle 1722.04 2015.92 3513.0 4187.70 6445.77 Repayment Expenditure Detail of Interest Expenditure Domestic Debt 1041.50 1232.99 1073.35 867.26 622.90 Foreign Debt 232.19 283.08 300.32 336.52 303.61 Total Interest Expenditure 1273.69 1516.07 1373.67 1203.78 926.51 Total Debt Payment Expenditure 2995.73 3531.99 4886.67 5391.48 7372.28 Total Debt Payment Expenditure to 10.1 10.4 12.32 9.4 13.87 Government Expenditure(In Percent) Public Debt Share to GDP (In Percent) 32.5 34.3 32.2 28.7 24.23

Source: Financial Comptrollers General Office and Nepal Rastra Bank 2.47 Ratios of Treasury bills, development bonds, national saving certificates, citizen saving certificates and special bonds stood at 59.44 percent, 28.30 percent, 8.22 percent, 1.62 percent and 2.42 percent respectively to the total domestic debt of FY 2014/15. Such ratios were 66.03 percent,

22.79 percent, 8.02 percent, 0.80 percent and 2.36 percent respectively in its preceding fiscal year. During the fiscal years between 2011/12 and 2014/15, the structure of domestic debt remained consistent while treasury bills to such borrowing had the highest share. . The high share of Treasury bills in the structure of domestic debt, the government needs to settle the payable debts liability at the shortest period and shift its priority to long-term bonds so as to avoid the risky rinterest rate . 2.48 Of the total stock of outstanding domestic debt of the government, the share of Nepal Rastra Bank in FY 2013/14 and FY 2012/13 stood at 13.64 percent and 11.58 percent respectively while that of commercial banks during this period remained at 65.98 percent and 67.62 percent respectively. Likewise, private sectors and other institutions shared 20.38 percent and 20.79 percent respectively during this period. The share of Nepal Rastra Bank to total stock of outstanding domestic debt of government in the fiscal years from 2011/12 to 2014/15 declined almost by 20 percent and reached close to 11 percent. Thus declined share of Nepal Rastra Bank to the domestic debt structure has increased attractions of commercial banks, other institutions and private sectors. This would further facilitate the government to mobilize the share of public debts in appropriate size while mobilizing public finance. Similarly, risks of foreign currency exchange loss could be minimized by reducing the share of foreign debts in public debts and domestic capital market could be further diversified and expanded through this. 4.49 The share of repayment principle and interest of public debts to the government’s total expenditure remained at 13.87 percent in previous fiscal year 2014/15 against 12.39 percent that of its preceding fiscal year 2013/14. The share of debt service payments to government total expenditure in fiscal years 2011/12 and 2012/13 stood at 10.41 percent and 13.62 percent respectively. Likewise, public debts in fiscal years 2011/12 and 2012/13 had almost one third share in the GDP. Such share declined in fiscal years 2013/14 and 2014/15 to 28.50 percent and 25.69 percent respectively. Through this, the possibility of increasing the share of public debts in public finance mobilization is visible.

Financial Arrangement of Local Bodies Income and Expenditure Status of Local Bodies 2.50 The government of Nepal has adopted policy of developing local level programs based on decentralization principle by catching the spirit of Local Self-Governance with a target of ensuring people's maximum participation in country’s governance process. As envisaged by the new Constitution of Nepal, initiatives have been taken to make the democratic practices efficient from local level for delivering the fruits of democracy among the people. The Government of Nepal, as per the constitutional provision to transform the local bodies into a robust institution through merger of their current structure by taking population, geography and infrastructure into consideration, has constituted a commission to propel the tasks of delineating the boundaries and identifying the number of village government ( Gaunpalika), municipal government ( Nagarpalika ), and special, protected and autonomous areas. Currently, services are being delivered through 75 District Development Committees (DDCs), 217 Municipalities and 3157 Village Development Committees (VDCs). 2.51 Primary education, primary health, agriculture and livestock extension, local infrastructure, community drinking water sectors among others have been conferred to local bodies in order to make the local bodies more functional. Constitutional and legal arrangements have been made in local bodies for ensuring means and resources required for achieving their targets through mobilization of local revenues. Likewise the Nepal government has made an arrangement to provide conditional and unconditional bulk grants to local bodies. Along with the constitutional provisions, Local Self-Governance Act, 1999, Local Self-Governance Regulation, 2000, Local Bodies Resource Mobilization and Management Procedure 2012 have granted rights to design and implement plans and programs as per the people's needs and demands by mobilizing their respective revenues in their priority accorded sectors. 2.52 The Local Body Fiscal Commission has been carrying out functions related to conducting studies and researches on tax to be levied by local bodies and revenues to be distributed among themselves, furnishing advices to local bodies on policy related matter to make the tax system time relevant, distributing grants to local bodies based on the criteria of minimum condition and their work performance level, recommending the best performing local bodies to reward them by the Nepal government. Further, the Commission conducts local bodies’ internal resource

analysis, identification of new resource sectors, and determination of unconditional grants to be provided to local bodies on the basis of minimum condition and work performance criteria. The Commission has set indicators of minimum condition and work performance measures 9 for DDCs, 10 for Municipalities and 7 for VDCs for their evaluation. Apart from these, work performance evaluation is carried out by the Commission based on work performance indicators 46, 40 and 13 for DDCs, Municipalities and VDCs respectively. The Commission has been making efforts to enhance quality through periodic review of such work performance measures and indicators. System has been executed in such a way that the cycle of minimum conditions and performance measures in relation with unconditional grants set for local bodies shall complete in every three years. Most of the local bodies have been able to perform well on the basis of such evaluation but about one-third of the total VDCs have not been able to achieve success at desired level. Table 2 (n): Income and Expenditure Details of Local Bodies (In Rs. 10 million) Fiscal Year Description 2011/12 2012/13 2013/14 2014/15 1. District Development Committee (DDC) Grant received from Government 2985.33 2084.31 2671.0 2596.56 Netof Nepal Income 321.99 275.60 357.46 457.80 A)Internal Resources 178.04 136.94 186.40 209.64 B) Revenue Disbursement 143.95 138.66 171.06 248.16 Total allocation made for 3307.32 2359.91 3028.46 3054.36 Actualexpenditure Expenditure 2970.0 1795.82 2678.0 2519.85 2. Municipality Grant received from Government 504.92 428.42 334.52 496.67 Totalof Nepal Amount of Internal Resources and Revenue Allocation 274.30 336.56 378.25 409.98

Total allocation made for 779.22 764.98 712.77 906.65 expenditure Actual Total Expenditure 683.80 676.87 617.49 797.85 3. Village Development Committee (VDC) Grant received from Government 925.80 669.20 821.0 736.0 of Nepal Total Amount of Internal Resources and Revenue Allocation 97.64 117.13 130.22 0.0

Total allocation made for 1023.44 786.33 951.22 736.0 expenditure Actual Total Expenditure 765.87 764.91 934.04 730.41 Summary

Description Fiscal Year 2011/12 2012/13 2013/14 2014/15 Total Internal Income of Local 693.93 729.29 865.93 867.78 TotalBodies Receipt of Grant in Local 4416.05 3181.93 3826.52 3829.23 Bodies Total Income of Local Bodies 5109.98 3911.22 4692.45 4697.01 Share of Internal Income in Total 13.58 18.65 18.45 18.48 Income (%) Source: Financial Comptrollers General Office and Local Development and Fiscal commission Secretariat of Local bodies Government Grant to Local Bodies 2.53 Tasks mainly in the sectors like development of local infrastructure, social security, social mobilization and empowerment, poverty reduction, environment friendly development, social service delivery at local levels, local good governance including reconstruction subsequent to the earthquake and infrastructure are being carried out through local bodies in line with the spirit of decentralization. The government of Nepal has been providing the major chunk of its expenditure in the form of grants to local bodies for their failure to mobilize their own internal means and resources to meet their desired goals. The status details of resource mobilization of local bodies are as follows: District Development Committee (DDC) Grants 2.54 District Development Committees are provided with grants for providing economic, social supports and empowering people thereby supporting in poverty reduction through institutionalization of inclusive development that is based on the needs and demands of local people with their own direct involvements while utilizing local skills, labor, means, and resources. The government of Nepal provided nearly Rs. 29.85 billion as grant to the DDCs in FY 2011/12 while such grants stood between Rs. 21 billion and Rs. 26 billion in the fiscal years from 2012/13 to 2014/15. Towards DDCs’ internal sources and revenue disbursement sides, the income stood at Rs. 4.57 billion in FY 2014/15 while such income remained close to Rs. 3 billion in fiscal years from 2011/12 to 2013/14. During this period, the DDCs have spent about 80 to 90 percent of their total allocated fund. Enhancing internal resource mobilization capacity is apparent since the contribution of the grants hovers around just 85 percent to 90 percent.

Municipal Grants 2.55 Municipalities are being provided with recurrent and capital grants with the objective of reducing poverty and attaining socio-economic development through the development of physical infrastructures thereby strengthening their service delivery mechanism. Towards recurrent side, tasks such as institutional development, economic and administrative strengthening, resource mobilization and coordination, environment and sustainable development related policies, formulation, coordination, monitoring and evaluation together with setting an appropriate weighing system for grant disbursement are being carried out while on capital grants front, physical infrastructure works are being performed. The government of Nepal had provided grants of Rs. 5.04 billion in FY 2011/12 while such grants stood at Rs. 4.28 billion in FY 2012/13, Rs. 3.34 billion in its immediate subsequent fiscal year and Rs. 4.96 in FY 2014/15. Grant of about Rs. 4 billion was mobilized through municipality’s internal resources and revenue disbursement in FY 2014/15 while such grants ranged from Rs. 2.74 billion to 3.78 billion between FY 2011/12 and FY 2013/14. During this period, internal resources contributed about 40percent to 60 percent to total expenditure while other expenditures were covered by the grants. Village Development Committee (VDC) Grant 2.56 The government of Nepal has been disbursing grants to VDCs in order to institutionalize local peoples’ need based development initiatives through the utilization of local skills, labor, means and resources. The government of Nepal had provided grants of Rs. 9.25 billion to VDS in FY 2011/12 while such grants dropped to Rs. 6.69 billion in its succeeding fiscal year 2012/13, Rs. 8.21 billion in FY 2013/14 and Rs. 7.36 billion in its subsequent fiscal year 2014/15. Likewise, Rs. 970 million was mobilized through their internal resources and revenue disbursement in FY 2011/12 while their internal resources rose to Rs. 1.17 billion and Rs. 1.30 billion respectively in its two consecutive subsequent fiscal years. The internal resources of VDCs contributed from 10 percent to 15 percent to its total expenditure. 2.57 The amount garnered through local bodies’ internal resources and revenue disbursement totaled nearly Rs. 7 billion in fiscal years 2011/12 and 2012/13 while such amount grew to 8.65 billion in FY2013/14. This

seemed to have contributed about 13-19 percent to the total expenditure. During this period, the government of Nepal has provided grants from Rs. 31 billion to Rs. 44 billion to the local bodies. Local Development Tax Fund 2.58 The government of Nepal that had been carrying out planned development and construction works in former 58 municipalities through an arrangement of auxiliary fund out of 1.5 percent octroi raisedat various customs points at and deposited in the local development fund. Since FY 2008/09, the government, however, has been allocating budget from its own source through which physical infrastructure development works are being carried out. Of Rs. 2.61 billion earmarked for Local Development Fund in FY 2014/15, a sum of Rs. 1.6 billion was provided to the municipalities as unconditional grant while Rs. 1 billion was earmarked for auxiliary fund programs. Of the approved total 315 physical infrastructure development programs planned to be completed through utilization of the reserve fund, 222 of those have been completed including black topped road, drainage, drinking water, landfill site construction, procurement of fire brigades, and waste management. During the first eight months of current fiscal year 2015/16, unconditional capital grant was provided through Local Development Fund for the construction of physical infrastructure in those 58 municipalities while cost involvement based projects are being operated through the auxiliary fund. Under this, 286 municipal projects have been approved and Rs. 10.38 billion earmarked for their implementation where works are underway. For cost involvement based projects of 133 newly declared municipalities, each of them was provided with Rs. 8 million 743 thousand through which physical infrastructure development projects are being implemented.

2.59 The government of Nepal has been providing recurrent and capital grants to the local bodies. For the current fiscal year 2015/16, a sum of Rs. 3.87 billion has been allocated as grants for District Development Committees (DDCs). Of this, recurrent grant accounts for Rs. 2.30 billion while Rs. 1.36 billion is allocated as capital grant. Recurrent and capital grants of DDCs for fiscal year 2011/12 had stood at 5.91 billion while such grants in fiscal years from 2012/13 to 2014/15 ranged from Rs. 3.32 billion to Rs. 4.43 billion. 2.60 Recurrent and capital grants for Village Development Committees (VDCs) amounted Rs. 9.25 billion in FY 2011/12 while that for 2013/14

stood at Rs. 8.21 billion which went down near to Rs. 7 billion in fiscal years 2012/13 and 2014/15. Such grants in the current fiscal year 2015/16 remained at 8.05 billion. Recurrent grants that stood at Rs. 1.56 billion in fiscal years from 2011/12 to 2014/15 slid to Rs. 1.41 billion in the current fiscal year. Table 2 (o) : Government Grant to Local Bodies (In Rs. 10 million) Fiscal Year Share of Grant 2011/12 2012/13 2013/14 2014/15 2014/15 Total Budget Recurrent Grant to DDC 230.0 133.68 137.0 127.30 136.96 1.77 Capital Grant to DDC 361.0 309.79 195.0 207.40 230.49 2.98 Total 591.0 443.48 332.0 334.70 367.46 4.76 Recurrent Grant to VDC 769.20 512.65 664.40 579.40 663.44 8.59 Capital Grant to VDC 156.60 156.60 156.60 156.60 141.74 1.84 Total 925.80 669.25 821.0 736.0 805.18 10.42 Recurrent Grant to 60.0 94.14 115.0 378.80 506.56 6.56 Municipalities Capital Grant to 11.0 11.0 0.0 36.0 123.01 1.59 Municipalities Total 71.0 105.14 115.0 414.80 629.57 8.15 Local Development Fund 190.0 123.70 195.68 200.43 234.63 3.04 Capital Local Development Fund 40.0 39.97 64.32 61.12 108.73 1.41 Recurrent Total 230.0 163.68 260.0 261.55 343.37 4.45 Grant Total 1817.80 1381.55 1528.0 1747.05 2145.59 27.78 Source: Financial Comptrollers General Office and Local Development and Fiscal commission Secretariat of Local bodies 2.61 In current fiscal year 2015/16, municipalities are provided grants with a total of Rs. 6.29 billion including Rs. 1.23 billion as recurrent grant and Rs. 5.06 billion as capital grant. Such grants in FY 2011/12 had stood at only Rs. 710 million. In fiscal years from 2012/13 to 2014/15, government’s grants to the municipalities rose to Rs. 1.05 billion and reached Rs. 4.14 billion. 2.62 Local Development Fund that contained the grant sum of Rs. 2.30 billion in FY 2011/12 shrunk to Rs. 1.63 in its subsequent fiscal year. Likewise, the recurrent and capital grants for the fiscal years 2013/14 and 2014/15 that had remained at Rs.2.60 billion grew to Rs. 3.43 billion in current fiscal year. Such grants shared 27.78 percent to the total budget of Ministry of Federal Affairs and Local Development wherein the shares of DDCs, Municipalities, VDCs and Local Development Fund stood at 4.76 percent, 10.42 percent, 8.15 percent and 4.45 percent respectively. The

share of recurrent grants to the total grants is higher in DDCs whereas that of capital grants to such total is more in VDCs, municipalities and Local Development Fund. Problems and Challenges 2.63 The demand of public expenditure has continued to grow for expediting the pace of development and construction works and meeting peoples’ broad aspirations. The requirement of public expenditure will certainly escalate in the process of adopting federal governance system while promulgating new constitution. Maintaining balance among public expenditure’s demand, need and availability has been a complex task. 2.64 The share of revenue mobilization to GDP is close to 20 percent. Such ratio generally stands at 35 percent in countries advancing towards development. The task of mobilizing revenue in accordance with its viability remains a challenge. 2.65 Recurrent expenditure generally occupies one-fourth space in Nepal’s total public expenditure while capital expenditure shares merely 15 percent to such total. Though recurrent expenditure complies with estimation, capital expenditure seems to remain below par. Despite fiscal deficit being executed to optimally mobilize public resources, budget surplus is likely to repeat at the end of the every fiscal year which poses challenge to attest the effectiveness of capital expenditure. 2.66 Nepal’s public debts hold about one-fourth space in GDP. In some developed countries, such ratio is found to exceed 100 percent with the objective of mobilizing financial instruments to their maximum extent. There exists a possibility to utilize public debts for ensuring resources on development initiatives. Result oriented Implementation of means and resources to be mobilized so is still lacking. 2.67 Optimum utilization of available financial instruments by making the economy vibrant is a must to achieve sustainable economic development.. Aside from generating revenue potentials, resources for the large projects that can bring effective changes in development context through the organized mobilization of public debts can be guaranteed. The task for utilizing rarely available financial instruments to make them result oriented emains a challenge.

3. Price and Supply

Inflation has soared in FY2015/16 as compared to that of previous fiscal year due to uncomfortable supply situation in Nepal. Despite monetary expansion contained within a desirable limit, lesser Indian price pressure, lower petroleum prices, and lower rate of world inflation in Nepal has risen in the current fiscal year due to uncomfortable supplies of essential commodities. During first eight months of the current fiscal year, supply of petroleum products together with that of food items has dropped. It is imperative to give emphasis on raising the agricultural production and productivity, developing distribution and price information systems,

establishing regular monitoring system for carrying out daily monitoring of

wholesalers’ stock of most essential commodities, and raising the storage capacity

of food and petroleum products.

The Trend and Structure of Inflation

3.1 Several factors have been affecting Nepal’s inflation rate for many years which have posed a serious challenge to the short-term initiatives for containing the inflationary rate within the desired limit. During the last 10 years, Nepal’s * 6 7 8 9 0 1 2 3 4 5 6 0 0 0 0 1 1 1 1 1 1 1 inflation rate / / / / / / / / / / / 5 6 7 8 9 0 1 2 3 4 5 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 that had 2 2 2 2 2 2 2 2 2 2 2 reached the apex with 12.6 percent in FY 2008/09 descended to 9.9 percent in FY 2012/13. The average inflation rate of the first eight months of the current fiscal year still hold the top position with 9.7 percent. To bring high inflation rate under control, tasks such as increasing production through the enhancement of domestic production capacity particularly on supply side, making the legal provision effective so as to maintain healthy competition among all sectors of economy, increasing the storage capacity of petroleum products to ease the energy supply situation, and completing the ongoing hydroelectricity projects within the stipulated time are to be carried out.

3.2 The average inflation rate of Nepal in last five years has stood at 8.8 percent while that of food and beverage group remained at 10.8 percent and non-food and service group averaged 7.3 percent. For, such higher inflation rate during this period, food and beverage groups seemed to be more responsible than the non-food and service group. 3.3 Food and beverage group is found to have remained volatile than n on- food items and service group owing to its higher price, increased agricultural production and supply situation.

3.4 Nepal’s price level used to be influenced mainly by structural, monetary, and Indian price situation while in this fiscal year, it has been highly affected by the border obstructions that impeded imports of goods. Nepal, despite able to contain monetary expansion within a desirable limit, less price rise in the Indian market, decreased oil prices in international market, and low global inflation rate, witnessed higher inflation rate in this year as compared to previous fiscal year due mainly to uneasy supply situation.

3.5 Inflation rate in the first eight months of the current fiscal year 2015/16 averaged 9.7 percent against merely 7.2 percent that of previous fiscal year. By mid-March of FY2015/16, an annual consumer inflation rate on point to point basis stood at 10.2 percent against 9 percent during the same period last year. Later months of current fiscal year saw continuous decline in the consumer inflation rate while such rate had reached the top point with 12.1 percent by mid-February 2016.

Table 3(a): Consumer Price Index based Annual Point to Point Inflation Rate (Base Year 2014/15=100) (Percentage Change ) Month 2011/12 2012/13 2013/14 2014/15 2015/16 Mid-August 7.7 11.9 7.9 7.5 6.9 Mid-September 8.5 11.2 8.0 7.6 7.2 Mid-October 8.9 10.5 8.4 7.5 8.2 Mid-November 8.5 10.5 10.0 7.2 10.4 Mid-December 7.5 10.4 10.3 7.0 11.6 Mid-January 6.8 9.8 9.7 6.8 12.1 Mid-February 7.0 10.1 8.8 7.0 11.3 Mid-March 7.0 10.2 8.9 7.0 10.2 Mid-April 7.5 9.5 9.4 6.9 - Mid-May 8.7 8.7 9.7 7.1 - Mid-June 9.9 8.2 9.5 7.4 - Mid-July 11.5 7.8 8.1 7.6 - Average 8.3 9.9 9.1 7.2 9.7 Source: Nepal Rastra Bank

Group-wise Consumer Price Situation

3.6 While analyzing on group-wise basis, the price index of good and beverage group increased by 10.3 percent by mid-February 2016 on point to point basis while such index had grown by 9.5 percent in the same period of previous fiscal year. The reason behind such high price index was mainly due to the rise of double digits in the prices of pulse, dairy products and eggs, ghee and oil, spices and liquor items. According to this, the prices of sub-group under food and beverage groups including those of pulses rose by 31.6 percent, dairy products and egg by 11.9 percent, ghee and oil by 18.8 percent, spices by 16.6 percent and liquor by 14.5 percent. Aside from this, prices of food grains and food grain products together with restaurant and hotel sub-group have also increased sharply.

3.7 Price index of non-food item and service group has increased by 10.2 percent on point-to point basis by mid-March, 2016 while this had increased by 4.9 percent on the same basis by mid-March, 2015. The price index of this group remained high due to the higher price rise in the

sub-groups including those of garments and foot wares, household commodities, service and education. Of the non-food items and service group, price index of garments and foot-wares including shoes and flip- flops has stood highest with the rise of 15.3 percent while that of household items and service sub-group rose by 13.1 percent and education sub-group by 12.4 percent.

Table 3 (b): Point to Point Changes in National CPI (Base Year 2014/15 = 100) (Percent Change ) Fiscal Year (Mid-March) Weight Consumable Items Percentage 2011/12 2012/13 2013/14 2014/15 2015/16 Total (A+B) 100 7.0 10.2 8.9 7.0 10.2 A. Food and Beverage 46.8 4.2 11.3 10.8 9.5 10.3 Cereals and Cereal made Items 14.8 -2.4 12.9 11.7 7.8 9.2 Lentils 2.0 -1.8 12.6 6.8 16.7 31.6 Vegetables 5.7 5.1 9.4 13.9 4.8 6.8 Meat and Fish 5.7 5.8 17.1 13.5 9.9 6.5 Dairy Products and Eggs 5.0 17.4 7.3 6.7 16.8 11.9 Ghee and Oil 2.7 13.3 13.9 0.3 -0.4 18.8 Fruits 2.2 9.8 5.2 14.1 10.4 9.2 Sugar and Sweets 1.4 5.9 12.0 -3.5 -0.1 6.7 Spices 1.5 -12.1 5.5 10.5 12.0 16.6 Soft Drinks 1.0 6.0 12.0 2.4 4.2 4.7 Liquors 1.7 9.2 4.4 22.5 21.1 14.5 Tobacco Products 0.9 9.0 11.4 25.3 26.6 7.9 Restaurant and Hotels 2.4 11.4 12.2 9.5 11.3 9.9

B. Non-Food Items and Services 53.2 9.4 9.3 7.1 4.9 10.2 Clothing and footwear 8.5 15.2 11.5 12.2 10.0 15.3 Household Items and Service 10.9 6.3 9.7 5.1 0.9 13.1 Furnishing and Household Equipment 4.9 13.4 12.7 9.4 8.9 6.8 Health 3.3 6.4 6.5 9.1 4.3 2.5 Transportation 6.0 17.0 8.4 4.9 0.5 3.4 Communication 3.6 -8.2 -2.1 0.1 0.3 5.7 Recreation and Culture 5.4 8.8 6.2 7.5 6.2 4.8 Education 8.5 8.9 12.5 7.8 5.5 12.4 Other Goods and Services 2.2 9.9 10.8 6.5 8.3 8.1

Source: Nepal Rastra Bank Region-wise Consumer Price Situation

3.8 While analysing from regional perspective, consumer inflation rate of Kathmandu Valley remained at 12.7 percent hills accounted for 10.4 percent while that of Terai stood at 8.6 percent. While in previous fiscal year, such index of both Kathmandu valley and hills was 7.1 percent and that of Terai was 6.9 percent.

Wholesale Price Index

3.9 Wholes ale price inflatio n rate on point- to-point basis remaine d 5.5 in mid- March of 2015/16 remained which is equal to that of corresponding period of previous fiscal year. During the first eight months of the current fiscal year 2015/16, price index of agricultural commodities

under wholesale price has increased by 9.1 percent and that of domestically produced goods by 6.3 percent while such index of imported goods dropped by 2.8 percent. The price index of such groups had increased by 8.4 percent and 6.0 percent respectively while that of imported goods had decreased by 0.8 percent respectively during the same period of previous fiscal year.

Table 3 (c): Annual Point to Point Changes of National Wholesale Price Index (Base Year 1999/2000 = 100) (Percent Change) Fiscal Year (Mid-March) Weight Group 2015/16 (Mid Percent 2011/12 2012/13 2013/14 2014/15 March) Over All Index 100.0 6.3 9.0 8.3 5.5 5.5 Agricultural Products 49.6 1.7 12.3 11.3 8.4 9.1 Domestically Produced Industrial Goods 20.4 9.5 3.5 6.7 6.0 6.3 Imported Goods 30.0 13.0 6.6 3.7 -0.8 -2.8 Source: Nepal Rastra Bank

3.10 Under the agro-products group, the prices pulse and spices sub groups have increased dramatically by 47.3 percent and 20.6 percent respectively. Likewise, the prices of fruits and vegetable sub group have grown by 9.4 percent. Under the domestically produced industrial goods group, prices of beverage and tobacco products have registered highest growth of 8.7 percent while under the imported goods while those of transport materials and machineries under imported goods group attained lofty growth of 6.8 percent but those of petroleum products and coal slid by 12.8 percent. National Salary and Wage Rate Index

3.11 During review period, the annual point-to-point salary and wage rate index increased by 4.6 percent against 6.8 percent increase during the same period of previous fiscal year. During this period, salary index has increased by 0.8 percent and wage rate index by 5.5 percent. On the salary index, so of the banks and financial institutions, education and public enterprises sub-groups have registered growth of 2.3 percent, 1.5 percent and 0.7 percent respectively. Likewise, wage-rate index of construction laborers, agriculture laborers, and industrial laborers have increased by 10.2 percent, 5.6 percent and 3.6 percent respectively.

Table 3 (d): Annual Point to Point Change of National Salary and Wage Rate Index (2004/05 = 100) (Percent change) Weight Fiscal Year (Mid-March) Consumables Goods Percent 2011/12 2012/13 2013/14 2014/15 2015/16 Overall Index 100.0 27.6 7.8 16.9 6.8 4.6 1. Salary Index 27.0 19.3 0.0 26.4 7.6 0.8 1.1 Civil Service 2.8 18.7 0.0 31.3 9.7 0.0 1.2 Public Enterprises 1.1 28.0 0.0 27.6 7.5 0.7 1.3 Bank and Financial Institutions 0.6 42.4 0.0 47.7 4.3 2.3 1.4 Army and Police Force 4.0 26.5 0.0 34.5 8.5 0.0 1.5 Education 10.6 19.1 0.0 30.5 9.1 1.5 1.6 Private Institutions 7.9 8.6 0.0 0.0 0.0 0.0 2. Wage Index 73.0 29.8 9.6 14.8 6.6 5.5 2.1 Agriculture Labour 39.5 27.1 12.5 11.1 7.9 5.6 2.2 Industrial Labour 25.2 34.3 4.7 24.8 2.7 3.6 2.3 Construction Labour 8.3 34.1 6.3 10.0 10.4 10.2

Fifth Household Budget Survey

3.12 National National Consumer Price Index being published by Nepal Rastra Bank has been updated. For this, fifth household budget survey work is completed. The sole objective of this survey was to prepare a commodity basket of goods and services with the revised weights calculated on the basis of details on household family consumable goods and services collected for updating consumer price index. Recent consumer price index incorporates 496 goods and services. The consumer price index of goods and services incorporated in commodity basket shares 97 percent of the total consumable expenditure of household families. In the price index prepared through the fifth household budget survey, the weight for food and beverage holds 43.91 percent and for non-food items and services is 56.09 percent. Such weights in previous fiscal year were 46.82 and 53.18 percent respectively. Retail Prices of Daily Consumable Goods

3.13 Review of average retail prices ten major agricultural commodities among daily consumable items ( rice, wheat flour, black-grams, lentils, mustard oil, clarified butter, mutton, potato, dried onion and fresh ginger) reveals that the price of other items except that of potato, onion and ginger has gone up by mid-March 2016. Likewise, until this period, the price of other items except that of pulses and ghee appears to be lower in Terai than hills. 53

Table 3 (e): Average Retail Price of Some Major Commodities (Price in Rs. per KG) 2015/16* S. No. Items Hill Terai Nepal Mid-August Mid-March Mid-August Mid-March Mid-August Mid-March 1 Coarse Rice 45.6 48.1 39.0 34.9 42.3 41.5 2 Wheat Flour 47.3 53.5 38.0 41.0 42.6 47.3 3 Black Lentil 167.3 193.3 171.3 227.2 169.3 210.3 4 Pigeon Peas 175.3 187.5 194.7 256.4 185.0 222.0 5 Mustard Oil Per Liter 177.7 220.7 170.7 204.4 174.2 212.6 6 Clarified Ghee 728.3 740.0 777.3 799.7 752.8 769.8 7 Mutton 658.3 673.3 640.0 659.0 649.2 666.2 8 Red Potato 39.5 37.7 28.3 22.2 33.9 30.0 9 Dry Onion 74.0 45.7 83.3 34.7 78.7 40.2 10 Ginger Fresh 134.7 97.7 133.3 53.3 134.0 75.5 Source: Department of Agriculture, Directorate of Agriculture Promotion and Market Development, Hariharbhawan *Preliminary Price of Crude Oil and Gold in International Market

3.14 During review period, price of crude oil in the international market has dropped sharply. Reasons behind such steep fall in the price of crude oil in the international market are reduced economic growth rate of emerging countries, unchanged production volume of oil producing countries despite low its demand and increased oil production volume of the United States of America among others. The price of Crude Oil Brent in the international market was US $ 54.8 a barrel until mid March 2015 while this dropped by 28.1 percent to US $ 39.41 a barrel by mid-March 2016. Table 3(f): Prices of oil and gold in International market Percentage Change Mid-July Mid-March Mid- Mid-July March 2014 2015 2016 2014 2015 2016 2014 2015 2015 2016 Oil (Dollar Per Barrel)* 109.1 104.7 57.3 108.1 54.8 39.41 -4.0 -45.3 -49.3 -28.1 Gold (Dollar 1284.8 1310.0 1144.44 1385.0 1152.0 1264.8 2.0 -12.6 -16.8 9.8 per Ounce)** Source: Nepal Rastra Bank *Crude Oil Brent ** Based on London Rate 3.15 The price of gold that had stood at US$ 1,152 per ounce until mid-March 2015 went up to US$ 1,265 an ounce with an increase of 9.8 percent by the same period of current fiscal year.

Price Trend of Petroleum Products in Nepal

3.16 During review period, fall in the price of petroleum products in international market caused to decline its retail price of petroleum products in Nepal as well. Of the petroleum products, the price of petrol that had stood at Rs. 120 per litre in FY 2011/12 went up Rs. 135 per litre in FY 2013/14 and suddenly dropped to Rs. 99 a litre in FY 2015/16. Likewise, the price of diesel and kerosene was Rs. 46 per litre in FY 2011/12 which gradually increased and rested at Rs. 106 per litre in FY 2013/14 but slid again to Rs. 75 a litre in FY 2015/16.

3.17 Arrangement for wholesale distribution of petroleum products are being made through Biratnagar, Birgunj, Amlekhgunj, Kathmandu, Pokhara, Bhairahawa, Nepalgunj, Surkhet, Dang, Dhangadhi, Dipayal and Janakpur. Both the wholesale and retail prices of petroleum products are set on the basis distance between the depot sites and their respective border custom points. The retail price of petrol in Kathmandu valley stands at Rs. 99 a litre as of mid-March 2016 while that of diesel and kerosene is Rs. 75 a litre. Likewise, the price of LP Gas is Rs. 1400 per cylinder and that of aviation fuel is Rs. 109 a litre. Supply Situation

3.18 The devastating earthquake coupled with the disruption in supply of petroleum products since August last year has badly affected the supply of food items and salt. Shortage of fuel mainly petrol, diesel and LP Gas due to border obstruction crippled the lives of the people leading near to humanitarian crisis. Likewise, shortage of construction materials affected the post earthquake construction projects that had just started gaining momentum. Shortage of fuel affected timely supplies of food grains and salt needed in the targeted areas. Such situation led to price hike,

artificial shortage and black marketing thereby causing daily lives of the people extremely difficult. Table 3 (g): Supply of Petroleum Products Petroleum For First Eight Months Percentage Change Products 2014/15 2015/16 Mid-March/Mid-March Petrol (KL) 186965 118987 -36.4 Diesel (KL) 583242 344204 -41.0 Kerosene (KL) 13541 6881 -49.2 Aviation Fuel (KL) 94854 41501 -56.2 Total 878602 511573 -41.8 LPG Gas (MT) 165975 95017 -42.8 Source: Ministry of Supplies, Government of Nepal 3.19 Due to the obstructions at Indo-Nepal border points, the supply of petrol decreased by 36.4 percent, diesel by 41 percent, aviation fuel by 56.2 percent, LP Gas by 42.8 percent and that of kerosene by 49.2 percent in the first eight months of current fiscal year 2015/16 as compared to the corresponding period of previous fiscal year. 3.20 Salt Trading Corporation has been delivering salt in the grant assistance of the government of Nepal in 13 remote districts and 9 moderately remote districts with the objective of providing relief to the people of these districts and meeting their iodine requirement. Of the target set to transport 66,783 quintals of iodized salt to 22 remote districts including 13 remotest, and nine moderately remote districts for the fiscal year 2015/16, a total of 39,344 quintals of iodized salt has been transported during the review period. 3.21 Continuity has been given in the current fiscal year as well to transportation of food grains to 23 remote mountainous and hilly districts through Nepal Food Corporation under the policy of ensuring unhindered and regular supply of food grains to those districts. In this process, 4,700 MT of food grains has been transported until mid-March 2016 against the target of 15,300 MT set for the current fiscal year. Likewise, of the target to store33, 000 MT of food grains in buffer stock under in National Food Security Reserve, and SAARC Food Security Bank, a total of 18,600 MT of food stuff has been stored until mid-March 2016. 3.22 A separate Ministry of Supplies has been established in December of current fiscal year 2015/16 with a view to make the supply arrangement sustainably effective and and reliable by promoting national interests and protecting the rights and interests of consumers thereby ensuring an environment towards making quality consumable goods and services

easily available through the arrangement of healthy and competitive supply system for goods and services. Issues and Challenges 3.23 Despite several policy initiatives that were taken in the past to contain inflation rate within the desired limit, such rates still continue to remain high. This indicates that several multidimensional aspects are responsible for determining the price level while various factors have been playing roles on raising the rate of inflation. Though Indian inflation, price hike in petroleum products, syndicate among others were considered responsible for high inflation in the past, border obstructions and disruption in the supply of petroleum products, and most essential commodities have been reasons for such high price inflation in the current fiscal year. Thus, there lies a challenge to bring the inflation under control, and make supply situation smooth by regularizing demand and market based provisions through the adoption of monetary and fiscal policies. 3.24 It is necessary to carry out tasks like making distribution system organized to bring inflation under control, expanding the storage capacity of essential commodities, making the market monitoring effective, making cartel / syndicate systems punishable, making the distribution of petroleum products more organized, enhancing the agricultural production and productivity, developing mechanism for the imports of food items as per the projection. Likewise, tasks such as completing the ongoing hydroelectricity projects within stipulated time, developing distribution and pricing information systems to reduce the margin of middlemen in the trading of agro-products, developing daily monitoring system for the monitoring of wholesalers’ stock of essential goods and increasing the storage capacity of petroleum products also require equal attention. 3.25 Though Nepal’s price situation is influenced by investment, supply and structural changes in the short-term, long-term price determining factors have been overall demand and money supply. The price of Nepal appears to be affected mostly by international prices of commodities and petroleum products that are being imported via India and disruptions in their supplies. Nepal’s prices could only be stabilized if coordinated pricing policy is formulated by incorporating both supply and demand.

4. Money and Banking

The pressure emerged through the uneasy situation as a result of the impact of damage rendered by the earthquake and border obstructions that overall economy faced has hit the monetary and banking sectors too. Despite rise in liquidity of the banking sector due to increase in remittance inflow, foreign loan and grants with decreased imports; growth rate credit is slightly lower due to lack of expansion in economic activities. Though the banking sector easily bore the brunt of the first phase of earthquake and obstructions rendered to Nepal's international trade with variables of the financial sector remaining stable, the situation has made it imperative to be watchful to avoid potential effects with passage of time.

4.1 While analyzing overall situation, the situation of monetary and banking sector appears to remain stable and balanced despite shrunken economic growth in fiscal year 2015/16. The current high liquidity in the banking sector has offered opportunity of financial resource management together with challenges for revival of economy and broadening of investment. Working guidelines of integrated economic policy requires to be followed by balancing the opportunities and challenges emerging with the expansion of economic activities. This chapter encompasses the situation of Nepal’s monetary and banking sector, policy arrangements related to this sector together with problems and challenges.

Monetary Policy Box 4 (A): Key Indicators of Monetary Policy

4.2 Nepal Rastra • Average inflation remained 9.7 percent in the first Bank, pursuant eight months against its projected annual average to Nepal target of 8.5 percent. Rastra Bank • Foreign exchange reserve is sufficient to cover Act, 2002, has imports of goods and services for 15.8 months in first to publish its eight months against the target level reserve to cover monetary at least for 8 months. policy • The growth rate of broad money supply remained at programs and 11.5 percent in the first eight months against its implement projected annual growth of 18 percent to maintain the them. As per economic growth target. this Act, for • The credit to private sector increased by 11.6 percent sustainable in first eight months against its annual projected economic growth of 20 percent. development,

Nepal Rastra Bank shall formulate and implement monetary, finance sector and foreign exchange policies required for maintaining stability on price and on external and finance sector for sustainable economic development. Similarly, it has been making monetary policy and its mid- term review report public as per this Act since FY 2003/04. The monetary policy of FY 2015/16 was made public on July, 23, 2015 and its mid-term review on February 28, 2016. Such monetary policy mainly focuses on maintaining price and external sector’s stability, maintaining financial stability thereby enhancing the capacity of finance sector, extending access to finance, and providing support to achieve objectives set for meeting the target of post earthquake reconstruction and economic growth. Monetary Policy Guideline 4.3 Monetary policy was implemented in FY 2015/16 with the objective of providing support to the task of achieving target of economic growth thereby maintaining economic stability. Monetary policy guideline was made cautious and balanced for providing support in reconstruction and economic growth on the one hand while reducing the eminent impacts on the stability of price, external and financial sectors due to high demand emerging from the extensive investments of government and private sectors on the other. 4.4 In a bid to achieve targeted economic growth, there was a challenge to bring inflation under control due the pressure that was likely to exert on the overall demand of economy and supply related factors. Thus, the monetary policy had emphasized on keeping the monetary aggregates within desired limit in order to avoid additional inflationary pressure emanating from the demand side. 4.5 The external sector was able to attain equilibrium position as a result of high balance of payment surplus that resulted from decreased imports and increased remittance inflow during the review year. Monetary policy has given emphasis on operating monetary instruments so as to encourage saving mobilization and loan investment by maintaining stability on interest rates with the objective of providing support to the economic growth. Similarly, the monetary policy had prioritized the tasks of maintaining stability of finance sector and enhancing capacity of financial institutions by synchronizing them with the expanded economic activities. Continuity was given to the task of mobilizing financial means

and resources in productive sector and enhancing access to finance, inclusiveness and financial literacy. Economic and Monetary Target 4.6 Monetary policy for fiscal year 2015/16 had set dual targets of maintaining foreign exchange reserve that would cover import of goods and services for at least 8 months by keeping consumer inflation at an annual average rate of 8.5 percent, and managing monetary liquidity necessary to help achieve economic growth target of the Government of Nepal. 4.7 Given the existing exchange system, to achieve the economic and monetary targets, the broad money supply which serves as an intermediate target of monetary policy was projected to remain at around 18 percent with expected expansion the private sector credit by 20 percent. Objective was set to encourage the private sector to make their investment of credit on productive sectors so as to achieve targeted economic growth without affecting price and external sector’s stability. Operational Instruments 4.8 Instruments for monetary policy operations have been employed considering the eminent opportunities and challenges that may emerge in the course of expansion of economic activities. The existing mandatory Cash Reserve Ratio (CRR) that the Banks and Financial Institutions (BFIs) for fiscal year 2014/15 are required to maintain at 6.0 percent for Class “A” 5.0 percent for Class “B” and 4.0 percent for Class “C” has remained unchanged. Likewise, the existing provision of Statutory Liquidity Ratio (SLR) to be maintained by BFIs at 12 percent for Class “A” 9.0 percent for Class “B” and 8.0 percent for Class “C” has been kept unchanged. Similarly, considering the post-earthquake situation of the country, the bank rate applicable for ultimate creditor facility and securities paper discounts purposes, which was set as per the policy provision was reduced by 1 percentage point and maintained at 7 percent from the earlier rate. 4.9 As open market operation is considered a key instrument to monetary policy, arrangement has been made for using regular, incidental, and structural open market operation instruments so as to make it more vibrant and effective. Likewise, provisions have been made for using bonds issued by international financial institutions in Nepalese currency

can be used on open market operations and for obtaininng stand by liquidity facility. Bids on savings, introduced last year with validity of maximum three months, has been provided continuity to this year as well Likewise, program was set for Nepal Rastra Bank to issue bonds if deemed necessary.

4.10 The exiting refinance interest rate of 4 percent being charged by Nepal Rastra Bank for agriculture, hydropower, poultry and livestock as well as fishery and other productive sectors has been kept unchanged whereas other existing refinancing interest rate remains unchanged. Similarly, such interest rate that was set at 1 percent against lending for the promotion of sick industries, small and cottage industries, foreign employment, dalits , Ethnic people ( janajatis ), disadvantaged group, women, differently abled people, deprived groups and communities run small business enterprises and encourage export has remained unchanged .

Table 4 (a): Bank Rate, Refinance Rate and Cash Reserve Ratio (In Percent) Fiscal Year Instruments 2011/12 2012/13 2013/14 2014/15 2015/16 Bank Rate 7.0 8.0 8.0 8.0 7.0 Refinancing Rates: Export Credit (In Domestic Currency) 1.5 1.5 1.0 1.0 1.0 Export Credit (In Foreign Currency) 0.25* 0.25* 0.25* 0.25* 0.25* Sick Industries 1.5 1.5 1.0 1.0 1.0 Small and Cottage Industries 1.5 1.5 1.0 1.0 1.0 Productive Sector 6.5 6.0 5.0 4.0 4.0 Cash Reserve Ratio 5.0 5-6+ 4-5++ 4-6+++ 4-6++ + # Standing Liquidity Facility Rate 8.0 8.0 8.0 7.0 * LIBOR Rate Plus +The cash reserve ratio to be maintained by banks and financial institutions is set at 6.0 percent for "A" class, 5.5 percent for "B" class and 5.0 percent for "C' class. ++The cash reserve ratio to be maintained by banks and financial institutions is set at 5.0 percent for "A" class, 4.5 percent for "B" class and 4.0 percent for "C' class. +++The cash reserve ratio to be maintained by banks and financial institutions is set at 6.0 percent for "A" class, 5 percent for "B" class and 4.0 percent for "C' class. # monetary policy for fiscal year 2012/13 has provisioned for providing Standing liquidity Facility at the Bank Rate Source: Nepal Rastra Bank

4.11 Nepal Rastra Bank has adopted the policy to extend its special refinancing facility at interest rate of 1 percent towards encouraging agriculture and small entrepreneurial businesses-based activities in specified 10 districts having higher level of poverty and in 114 VDCs and 4 municipalities of Parsa, Bara, Rautahat, Sarlahi, Dhanusha, and Saptari districts along the southern border having high severity of poverty. This policy of disbursing credit of up to Rs. 250 thousand to the earthquake victims of Kathmandu valley and Rs. 150

thousand to those from outside valley at an annual interest rate of 2 percent through BFIs for reconstructing their houses has been given continuity and emphasis for its implementation.

Monetary Sector

Money Supply

4.12 Broad money supply and narrow money supply has expanded by 11.5 percent and 20 percent respectively. Respective growth rates of these moneys in the same period of the previous fiscal year were 8.1 percent and 7 percent. Money supply witnessed growth as a result of increased net foreign asset.

Table 4(b): Factors affecting Money Supply (In Rs. 10 Million) Change in First Eight Months Monetary Aggregates 2013/14 2014/15 2015/16* Amount Percent Amount Percent Amount Percentt

1 Net Foreign Assets(1.1-1.2) @ 10281.34 ! 22.00 3507.15 @ 5.90 15818.27 # 21.2

1.1 Foreign Asset 12114.60 21.90 4141.70 6.00 18910.80 22.3 1.2 Foreign Liability 920.10 10.70 528.20 6.00 560.20 5.6 2 Net Domestic Assets (2.1-2.2) @ 3934.05 ! 4.60 9254.82 9.60 5720.21 # 5.1 2.1 Net Domestic Debt 3623.60 3.10 8399.20 6.40 8471.70 5.5 Net Credit to Government -7845.70 -46.80 -7078.70 -49.90 -7694.20 -60.5 (A) (i)Net Claims on Government 370.60 2.20 -1326.10 8.00 -1466.70 -9.1

(ii)Government Saving 8216.30 44529.0 5752.60 244.80 6227.50 184.2 Credit to Non-financial Public Enterprises 25.90 2.30 -7.90 -0.80 55.70 -5.5

Credit to Financial Institutions 657.60 48.10 1185.90 107.10 319.20 19.8

(B) (i)Government 0.50 0.40 118.70 79.80 15.30 4.7 (C) (ii) Non-government 657.10 53.20 1067.20 111.30 303.80 23.7 Credit to Private Sector 10785.80 11.10 14299.9 12.40 15902.40 11.6

Net Non-monetary Liabilities @ -310.45 ! -1.00 -855.62 @ -2.50 2751.45 # 6.9

2.2 Money Supply, M 2 (3.1+3.4) 14215.40 10.80 12761.9 8.10 21538.50 11.5

Money Supply, M 2 (3.1+3.4) 3287.50 10.90 2477.70 7.00 8514.80 20.0 3 (a)Money 3031.60 15.50 2728.10 12.00 4154.10 15.4

(b)Current Deposits 255.90 2.40 -250.50 -2.00 4360.70 28.2 3.1 Saving and Call Deposits 8377.60 13.40 6752.70 8.70 11543.00 12.1 Time Deposits+ 2550.40 6.50 3531.60 8.10 1480.80 3.0

3.2 Time and Saving Deposits(3.2+3.3) 10928.00 66.60 10284.3 5.90 13023.80 9.0 *Provisional, @Exchange gain/loss adjusted, +Including Margin Deposits 1. Exchange rate loss NRs. 9132million adjusted 2. Exchange rate gains NRs. 1064 million adjusted 3. Exchange rate gains NRs. 25324 million adjusted Source: Nepal Rastra Bank

Net Foreign Assets 4.13 During the review period, Net Foreign Assets registered growth due to increased volume of remittance inflow, foreign debts and grants. During this period, net foreign asset (foreign exchange gain/loss adjusted) has increased by Rs. 158.18 billion (21.2 percent) as compared to increase by Rs. 35.07 billion (5.9 percent) of previous fiscal year. Gross Domestic Borrowing 4.14 Gross domestic borrowing rose by 5.5 percent in the first eight months of fiscal year 2015/16 against the growth of 6.4 percent in same period of the previous fiscal year. Growth rate of gross domestic borrowing fell during the review period as compared to corresponding period of preceding fiscal year owing to decreased growth rate of credits to private sector with increased government savings. During the review period, the net claim on government has declined by 9.1 percent as against the decline rate of 8.0 percent in the previous year. Decline on such claims is attributed to the government saving of Rs. 96.09 billion by the end of mid-March of current fiscal year. 4.15 Credits flow to the private sector in first eight months of the current fiscal year grew by 11.6 percent (Rs. 159.2 billion) against the growth of just 12.4 percent (Rs. 143 billion) in the same period of previous year. Credit that expanded very slowly for about first six months of the current fiscal year due to the devastating earthquake and subsequent obstructions in foreign trade has started improving gradually with positive change in the situation. During the review period, there hasbeen progress in the credit flow of banks and financial institutions to industrial production, wholesale and retail trades, construction,

transportation, communication, public services, and the agriculture sector among others.

Reserve Money and Money Multiplier 4.16 Reserve money has increased by 4 percent in the first eight months of current fiscal year 2015/16 in contrast to its decline of 4.8 percent in the same period of the previous fiscal year. Higher expansion in net foreign asset is attributable for such increase. Table 4 (c): Reserve Money and Money Multiplier

Mid- Mid- Mid- Mid- Mid- Mid- Percentage change Particulars July March July March July March in first eight months

2013 2014 2014 2015 2015 2016* 2014/15 2015/16 Currency Reserve (In 35422.0 37459.2 43659.4 41549.6 52289.8 54391.2 -4.8 4.0 Rs. 10 million) Narrow Money 0.851 0.893 0.893 0.914 0.812 0.937 12.4 15.4 Multiplier Broad Money 3.713 3.891 3.587 4.076 3.591 3.848 13.6 7.2 Multiplier * Provisional Source: Nepal Rastra Bank

4.17 On money multipliers side, the broad money multiplier has increased to 3.85 points in mid-March 2016 from 3.59 points of mid-July 2015. In the same period, the narrow money multiplier has also increased to 0.94 points from 0.81 points. Money multipliers grew at a lower rate in mid-March of current fiscal year as compared to the same period of previous fiscal year due to mopping up of excessive liquidity in higher quantity through open market operations resulting in lower cash reserve than the money supply.

Implementation Status of Monetary Instruments

4.18 Open market operation has been considered as a prime instrument of monetary policy for the management of liquidity by containing monetary aggregates and interest rates at desired level. Nepal Rastra Bank has mopped up liquidity due to excess liquidity with BFIs until the first eight months of the current fiscal year. During the review period of this fiscal year, amount equivalent to Rs. 297.50 billion was mopped up through deposit auction, Rs. 162.77 billion through reverse repo auction and Rs. 9.1 billion through sale auction at different intervals. During the same period of previous fiscal year, Rs. 85 billion was mopped up through bid deposit, Rs. 271.10 billion through reverse repo at different intervals.

Table 4 (d): Status of Open Market Operation (Rs. in 10 Million) First Eight Months Particulars 2012/13 2013/14 2014/15 2014/15 2015/16 Liquidity Absorption 850.0 61100.0 47680 35610 35610.0 A Outright Sale 850.0 850.0 600 - 910 Reverse Repo - 60250.0 31580 27110.0 16277.0 Deposit Auction - - 15500 8500.0 29750.0 Liquidity Injection 0.0 0.0 0 - - B Outright Purchase - - - - -

Repo - - - - - C Net Liquidity Absorbed (A-B) 850.0 61100.0 47680 35610.0 46937.0 Source: Nepal Rastra Bank 4.19 In first eight months of fiscal year 2015/16, the Nepal Rastra Bank (NRB) injected net liquidity of Rs. 306.33 billion through the net purchase of USD 2.89 billion from foreign exchange market (commercial banks). Net liquidity of Rs. 213.13 billion was injected through the net purchase of USD 2.22 billion in the corresponding period of the previous fiscal year. 4.20 The NRB purchased Indian currency (INR) equivalent to Rs. 213.84 billion and Rs. 1.18 billion through the sale of USD 2.03 billion and Euro 10 million respectively in the review period. INR equivalent to Rs. 232.60 billion was purchased through the sale of USD 2.36 billion in the corresponding period of the previous fiscal year. Interbank Transaction and Standing Liquidity Facility 4.21 In fiscal year 2015/16, BFIs have been using inter-bank transaction facility for short-term liquidity management and standing liquidity facility of Nepal Rastra Bank. In the first eight months of the current fiscal year 2015/16, commercial banks carried out interbank transaction worth Rs. 523.84 billion while transactions of other financial institutions (except among commercial banks) amounted to Rs.45.20 billion. During the same period of previous year, Commercial banks and other financial institutions had carried out such transaction equivalent to Rs. 275.30 billion and Rs. 134.89 billion respectively. Bank and financial institutions have not requested for standing liquidity facility while during the same period, such facility worth Rs. 10.31 was used.

Interest Rate 4.22 Short-Term Interest Rate: A s result of existing excess liquidity with banks and financial institutions, the weighted average interest rates of 91- day Treasury bill, inter-bank transaction and deposit auction rate have been decreased in mid-March of 2016 compared to that of Mid-March 2015. The weighted average interest rate of 91-day Treasury Bills that was 1.13 percent in mid-March of previous year 2014/15 has dropped to 0.53 percent by the same period of current fiscal year. Similarly, the weighted average interest rate of 90-days deposit auction that was 0.86 percent in mid-March 2015 has come down to 0.39 percent in the same period of current fiscal year. Likewise, weighted average inter-bank transaction rate of commercial banks that was 1.80 percent in mid-March of previous year has slid to 0.42 percent in mid-March 2015. Likewise, the weighted average inter-bank rate of other financial institutions that had stood at 4.6 percent in mid-March of previous year has declined to 0.98 percent in mid-March 2015. 4.23 Deposit and Credit Interest Rate : The interest rates on credit and deposits have continued to decline due to excess liquidity with BFIs. The weighted average interest rate of commercial banks to be provided to the public against their deposits dropped to 3.06 percent in mid- March, 2016 from 3.79 in same period of previous fiscal year. The weighted average interest rates charged by commercial banks against credit have dropped slightly to 9.17 percent in mid-March, 2016 from 9.56 percent in same period of previous fiscal year. Likewise, average credit base rate of the commercial banks has remained at 6.46 percent in mid-March 2016 while such rate was 7.52 percent in the same period last year.

Table 4(e): Interest Rate (Percent) Mid- Mid- Mid- Mid-July Mid-Sept. Mid-Apr. Mid-Jul. Mid-Sep. Mid-Jan. Description Jan. Mar. Mar. 2014 2014 2015 2015 2015 2016 2015 2015 2016

91-days Treasury Bills 0.02 0.93 0.16 1.13 0.69 0.17 1.1 0.68 0.53

Interbank Rate

Among Commercial 0.16 1.03 0.15 1.80 0.64 1.01 0.64 0.26 0.42 Banks Among Other Financial 2.40 2.55 2.51 4.06 3.87 3.89 2.1 1.21 0.98 Institutions Weighted Average Interest Rate of Deposit and Credit

Deposit 4.09 3.79 3.75 3.79 4.07 3.94 3.55 3.32 3.06

Credit 10.55 10.14 9.82 9.56 9.64 9.62 9.46 9.29 9.17 Source: Nepal Rastra Bank Deposit Mobilization and Credit Flow 4.24 The deposit volume of BFIs has increased by 8.4 percent (Rs. 141.79 billion) by the first eight months of the current fiscal year 2015/16 in contrast to its growth of 7.6 percent (Rs. 106.62 billion) in the same period of previous fiscal year. During the review period, the deposit amount of commercial bank, development bank and finance companies has increased by 8.1 percent, 5.1 percent and 8.7 percent respectively.

Table 4 (f) : Deposit Mobilization and Credit Flow (In Rs. 10 Million) Mid- Mid- Mid- Mid- Mid- Mid- Percentage Change in Heading July March July March July March First Eight Months 2013 2014 2014 2015 2015 2016 2014/15 2015/16 Deposit Mobilization Commercial Banks 101558 111221 119648 130100 145275 157032 8.7 8.1 Development Banks 15522 17656 20033 19839 23073 24246 -1.0 5.1 Finance Companies 6817 7326 7209 7339 7164 7785 1.8 8.7 Bank and Financial 118809 130356 140677 151339 168883 183062 7.6 8.4 Institutions + Credit Flow (Private Sector) Commercial Banks 74600 82936 88581 100654 108054 120451 13.6 11.5 Development Banks 12904 14826 16679 17458 19342 20697 4.7 7.0 Finance Companies 6614 6738 6472 6860 6497 7148 6.0 10.0 Bank and Financial 94118 104500 111732 124972 133893 148296 11.8 10.8 Institutions + Source: Nepal Rastra Bank *Provisional + Inter-bank deposits among bank and financial institutions is deducted

4.25 The credit flow towards private sectors has increased by 10.8 percent (Rs. 144.03 billion) in the first eight months of the current fiscal year

2015/16 while this had increased by 11.8 percent (Rs. 132.40 billion) in the same period last year. During review period, shares of commercial banks, development banks and finance companies in total credit have stood at 11.5 percent, 7.0 percent and 10 percent respectively. 4.26 Credit flow towards industrial production, wholesale and retail trades, construction and agriculture like important sectors has slightly declined in the first eight months of the current fiscal year 2015/16 as compared to that of the same period of previous fiscal year. During the review period, credit lending towards industrial production sector increased by 9.2 percent, wholesale and retail trades by 10.8 percent, construction sector by 6.7 percent , transportation, communication and public service sector by 19.8 percent and agriculture sector by 9 percent.

Financial Sector 4.27 By mid-April of current fiscal year, there are 29 commercial banks, 72 development banks, 46 finance companies, and 41 class "D" financial institutions licensed to carryout micro finance related transactions. Similarly, 15 cooperative institutions and 27 non-government organizations have obtained permission from Nepal Rastra Bank to conduct limited banking transactions. Apart from bank and financial institutions, various institutions including 26 insurance companies, Employees' Provident Fund, Citizen Investments Trust, and Postal Savings Banks have been operating as indispensable parts of the financial system. The number of BFIs has decreased in recent years due to suspension of license issuance to establish commercial bank, development bank and finance companies; and encouraging increase in merger and acquisition among bank and financial institutions. Table 4 (g) : Number of Banks and Financial Institutions (Mid-July) Bank and Financial Institutions 2011 2012 2013 2014 2015 2016*

Commercial Banks 31 32 31 30 30 29 Development Banks 88 88 86 84 76 72 Finance Companies 80 70 59 53 48 46 Micro-finance Institutions 21 24 31 33 38 41 Nepal Rastra Bank Licensed Cooperatives 16 16 16 15 15 15 (limited banking transactions) Nepal Rastra Bank licensed NGOs (microfinance 38 36 31 29 27 27 transactions)

Insurance Company 25 25 25 25 26 26 Employees Provident Fund 1 1 1 1 1 1 Citizen Investmetn Trust 1 1 1 1 1 1 Postal Saving Bank 1 1 1 1 1 1 Offices of Postal Saving Bank 117 117 117 117 117 117 * Mid-April Source: Nepal Rastra Bank 4.28 Deposit collection and credit transactions have been expanding in tandem with the rising numbers of BFIs. Both financial inclusion and financial deepening have continued to grow in parallel with quantitative and qualitative expansion of BFIs. The share of commercial banks to total deposit and credit lending has continued to remain high. The share of commercial banks, development banks, finance companies and other institutions to total deposit stood at 82.9 percent, 12.8 percent, 4.1 percent and 0.2 percent respectively in mid-March, 2016. Similarly, share of commercial banks, development banks and finance companies in total credit lending remained at 76.1 percent, 14.4 percent and 5.6 percent and3.8 percent respectively. Table 4 (h): Some Major Indicators of Bank and Financial Institutions (Mid-July) (Rs. in billion) Mid-March Description 2012 2013 2014 2015 2016 Total Assets 1380.8 1584.9 1889.8 2183.2 2425.4 Total Deposits 1076.6 1271.5 1482.0 1772.0 1910.4 Total Loans 804.5 983.8 1066.9 1345.6 1494.8 Deposit/GDP Ratio (%) 68.8 73.7 76.3 83.4 89.9 Loans/GDP Ratio (%) 50.7 55.8 55.0 63.3 70.4

Share in Total Deposits (in percent)

Commercial Banks (“A” Class) 80.6 80.3 80.7 81.9 82.9 Development Banks (“B” Class”) 11.8 12.6 13.5 13.0 12.8 Finance Companies (“C” Class) 7.1 5.4 4.9 4.0 4.1 Other Institutions 0.5 1.7 0.9 1.0 0.2

Share in Total Lending (in percent)

Commercial Banks (“A” Class) 77.4 76.1 74.6 75.8 76.1 Development Banks (“B” Class”) 12.5 13.3 15.6 15.2 14.4

Mid-March Description 2012 2013 2014 2015 2016 Finance Companies (“C” Class) 8.3 6.7 6.5 5.6 5.6 Other Institutions 1.8 3.9 3.2 3.5 3.8 Source: Nepal Rastra Bank Branch Expansion 4.29 By mid March of current fiscal year 2015/16, the total number of branches of banks and (A, B and C Class) financial institutions has reached to 2,864 while the number of branches of commercial banks reached 1806 while that of development banks and finance companies stood at 856 and 202 respectively during the same period. Considering the number of these branches as a benchmark, Far Western and Mid- Western Development Regions are lagging behind in terms of financial expansion. Of the total branches, 45.6 percent are in the Central Development Region whereas only 4.8 percent are in the Far-Western Development Region. Table 4 (i) : Branches of Banks and Financial Institutions (Mid-March 2016) Development Percentage Commercial Banks Development Banks Finance Companies Total Region and Zone Share Eastern Development 339 110 23 472 16.5 Region Mechi 92 36 4 132 4.6 Koshi 167 66 13 246 8.6 Sagarmatha 80 8 6 94 3.3 Central Development 868 324 113 1305 45.6 Region Janakpur 93 41 5 139 4.9 Narayani 169 113 18 300 10.5 Bagmati 606 170 90 866 30.2 Western Development 326 310 55 691 24.1 Region Gandaki 129 142 27 298 10.4 Lumbini 157 141 25 323 11.3 Dhaulagiri 40 27 3 70 2.4 Mid Western Development 168 82 8 254 9.0 Region Rapti 66 39 5 110 3.8 Karnali 16 1 0 17 0.6 Bheri 86 42 3 131 4.6 Far Western Development 105 30 3 138 4.8 Region Seti 66 19 2 87 3.0

Development Percentage Commercial Banks Development Banks Finance Companies Total Region and Zone Share Mahakali 39 11 1 51 1.8 Total 1806 756 202 2864 100.0 Source: Nepal Rastra Bank 4.30 While considering the total domestic deposit of commercial banks that holds largest share in banking transactions, average per capita deposit which stood at Rs. 48,408 in mid-July 2015 stood at Rs. 51,634 in mid- March 2016. Likewise, per capita credit flow from commercial banks which averaged Rs. 39,310 by mid-July 2015 stood at Rs. 43,105 by mid- March 2016. Table 4(j): Some Indicators of Financial Expansion and Deepening

Mid- Mid- Mid- Mid- Mid- Mid- Description July July July July July March 2011 2012 2013 2014 2015 2016 Commercial Bank Branches 1111 1425 1486 1547 1656 1806 Population per Branch 23847 18860 18348 17880 16701 15528 Domestic Deposit of Commercial 628 801 941 1117 1358 1470 Banks(Rs. in Billion) Deposit per Person (Rs.) 23709 29816 34519 40366 48408 51634 Commercial Banks Lending (Rs. in 673 788 938 1067 1103 1227 Billion) Per Capita Credit (Rs.) 25401 29320 34404 38574 39310 43105 Source: Nepal Rastra Bank

4.31 Financial intensity has gradually been increasing with the rise in numbers and expansion of BFIs in the country. A bank branch in mid-July 2012 used to deliver banking services to 15,528 people, which has improved with each branch serving 23,847 people by mid-March 2016.

Mergers and Acquisitions 4.32 The number of banks and financial institution is growing after implementation of the merger policy that is being adopted to enhance the financial stability of merger, acquisition and resolution. After the introduction of “bank and financial institution by-laws, 2011” on merger and acquisition, 84 BFIs went into the merger forming 31 institutions by mid-March 2016. Likewise, 1 commercial bank acquired 2 finance companies and one development bank acquired another development bank. Resolution 4.33 A total of 12 institutions including 3 development bank and 9 finance companies are in the process of resolution in mid-January, 2016. The deposit collected by these institutions stands at Rs. 4.51 billion while their credit investment totals Rs. 7.71 billion. The non-performing loan of these institutions is close to 91 percent while the overall capital fund has remained negative by almost 30 percent. Status of Non-Performing Loans 4.34 The ratio of non-performing loans of commercial banks, development banks and finance companies to their total loan has decreased compared to that of mid-July, 2015. The non-performing loan of commercial bank group that was 2.5 percent in mid-July, 2015 has gone down to 2.3 percent in mid-March 2016. Similarly, the non-performing loan of development banks decreased from 3 percent of mid-July 2015 to 2.3 percent in mid-March 2016. Likewise, such loan of finance company group has dropped to 13.1 percent in mid-April 2016 from 13.7 percent of mid-July, 2015. Table 4 (k): Non-Performing Loan of BFIs (In Rs. ten million) Banks and Mid-July 2013 Mid-July 2014 Mid-July 2015 Mid-March 2016 Financial NPL NPL NPL NPL Institutions Percent Percent Percent Percent Amount Amount Amount Amount Commercial 1945.2 2.6 2630.6 2.9 2658.9 2.5 2788.4 2.4 Banks Development 603.3 4.5 672.7 4.2 568.5 3.0 451.2 2.3 Banks Finance 1051.2 16.0 943.4 13.7 883.2 13.7 866.7 13.1 Companies Source: Nepal Rastra Bank

“D” Class Microfinance Institutions 4.35 Various BFIs carrying out micro-finance related activities are availing financial services to deprived communities particularly women living in rural areas to engage them in income-oriented activities. The number of ”D “class financial institutions that carry out microfinance related transactions has reached 41 by mid-March, 2016. The total asset or liability of these institutions has increased by 22 percent to Rs. 83.75 billion in mid-March, 2015 as compared to that of mid-July 2015. The total deposits and borrowings of these institutions reached Rs. 20.66 billion and Rs. 45.03 billion by Mid-March, 2016 while loan and investments totaled Rs. 67.30 billion and Rs. 2.95 billion respectively. Table 4 (l): Sources and Utilization of Fund of Microfinance Institutions (In Rs. Ten million) 2014 2015 Mid- Mid- Description Mid-July Mid-July March March Percenta Percenta 2014 2015 2015 2016* ge ge Change Change Resource Capital Fund 581.0 582.0 620.4 845.5 0.2 36.3

Deposit 1120.0 1369.8 1605.8 2066.2 22.3 28.67 Borrowings 2858.1 3305.8 3849.7 4503.4 15.66 16.98 Others 385.4 743.3 526.8 737.7 92.89 40.04 Profit and Loss Account 114.0 163.1 260.4 222.7 43.07 -14.47 Resource/Utilization 5058.5 6164.0 6863.1 8375.5 21.9 22.0 Liquid Fund 979.4 565.0 682.5 897.1 -42.31 31.44 Utilization Investment 47.0 240.5 247.8 295.1 411.40 19.1 Credit and Lending 3642.6 4800.5 5532.7 6730.2 31.79 21.64 Others 374.9 556.2 395.4 452.6 48.35 14.46 Profit and Loss Account 14.5 1.8 4.6 0.5 -87.60 -88.88 Source: Nepal Rastra Bank *Provisional

Financial Sources of Other Financial Institutions and Utilization Status Employees' Provident Fund 4.36 Employees Provident Fund, established in September 16, 1962 under the Employees Provident Fund Act 1962, has been managing provident funds of civil servants, military, police personnel, teachers, personnel of government institutions and some other private companies. Besides lending facilities and collecting funds from the depositors, the Fund has also been investing in real- estate business, industries, and hydro-power projects. Assets/liabilities of this Fund, which stood at Rs. 194.44 billion in mid-July 2015 has reached Rs. 211.83 billion by mid-March 2016. Provident fund of depositors has reached Rs. 205.53 billion in mid-March 2016.

Citizens’ Investment Trust 4.37 Citizen Invest Trust established on March 18, 1991 under the Citizens Investment Trust Act, 1990, the Trust in addition to mobilizing individual and institutional deposits, providing credits and loans, has been working as issue manager to facilitate issuance of shares of various organized institutions. Asset/liability of this Trust (Fund) that stood at Rs.70.50 billion in mid-July 2015 reached to Rs.77.22 billion by mid- March recording a growth of 9.5 percent as compared to the corresponding period of previous year. On the sources side, deposits (collection of fund) that stood at Rs.67.23 billion in mid- July, 2015 went up to Rs. 74.58 billion by mid-April, 2016. Of the total fund collected in the review period, the share of Employees' Savings Increment Retirement Fund is 65.3 percent; 3.2 percent is that of Citizens' Unit Plan; 15.4 percent is of Gratuity Fund Scheme; 4.2 percent is of Investors’ Account Plan; while the share of collection from the Insurance Fund is 11.9 percent. 4.38 In fiscal year 2015/16, the Trust has completed issuance of general and rights shares worth Rs. 6468.4 million in merchant banking transactions under its Capital Marketing Services. The Trust has issued general and right shares worth Rs. 7.45 billion by mid-March 2016. During the review period, a total of Rs.14.6 million has been earned through share issuance fee and guarantee commission fee. 4.39 Investments of the Citizen Investment Trust in various sectors that stood at Rs. 59.9 billion in FY 2014/15 have reached Rs.52.71 billion by mid- March, 2016. Of total investments so made by mid-March 2016, the share of fixed deposits including fixed interest generating fund to total investment is 64.2 percent, 5.8 percent is in government bond, 6.7 percent in share security bond, 3.8 percent in term-loans and 19.42 percent in participating borrowing/housing loans. Postal Savings Bank 4.40 Postal Savings Bank operating under the Department of Postal Services of the Government of Nepal is in operation since 1974. Although 117 Post Offices are authorized to collect deposits, only 68 post offices have been providing banking services. The total deposit of postal saving banks, which was Rs 1.83 billion in mid-July 2015, has reached Rs. 1.85 billion by mid-March 2016. Similarly, the number of accounts in such

banks that totaled 65,937 in mid-July, 2015 rose to 66,310 by mid- March, 2016.

Table 4(m) : Postal Saving Bank (In Rs. 10 Million) Mid-July 2014 Mid-March 2015 Mid-July 2015 Mid-March 2016 Total Deposit 159.50 161.26 183.17 185.14 Total Account 61415 63201 65937 66310 Number

Deposit and Credit Guarantee Corporation 4.41 Deposit and Credit Guarantee Corporation was established on 20th September 1974 with the objective of accessing banking services at doorsteps of the people in remote areas and the poor by encouraging commercial banks to invest in priority sectors. This entity has been working on availing credit to priority sectors as well as guaranteeing loans on livestock, vegetable farming; foreign employment loans; microfinance and loans to underprivileged groups; and small and medium- scale enterprise loans. Current paid-up capital of the Corporation stands at Rs.2 billion. On its ownership structure, Government of Nepal owns 89.2 percent, NRB 10.0 percent, and Nepal Bank Ltd and Rastriya Banijya Bank combined together share 0.8 percent of its shares. 4.42 Deposit and Credit Guarantee Corporation provided credit guarantee to Rs. 1.91 billion by mid-July 2015. The Corporation's guarantee coverage has reached Rs. 3.36 billion by mid-March 2016. As per the directive issued by NRB, A, B, C and D Class BFIs must provide guarantees to deposit of up to Rs. 200 thousand made at personal saving and fixed accounts. With this provision, the corporation by the end of fiscal year 2014/15 provided guarantee to deposit of Rs. 283.8 billion with 164 BFIs. By mid-March 2016, such guaranteed deposits with 150 BFIs have reached Rs. 318.92 billion.

Table 4 (n) : Status of Credit and Deposit Guarantee Mid-July Mid-March Mid-April Mid-March Mid-July 2015 Description 2014 2015 2015 2016

Credit Guarantee Amount (In Rs. 10 127 152 156 191 336 Million) Bank and Financial 45 45 45 55 55 Institutions No. of Credit 186813 38721 39543 42434 75949 Deposit Guarantee

Amount (In Rs. 10 25276 28425 28425 28380 31892 Million) Bank and Financial 177 177 177 164 150 Institutions No. of Credit 1772188 11168659 11168659 11920960 12993985 Credit Information Bureau Limited 4.43 Credit Information Bureau collects information on repayment of loans, and makes such information available to BFIs by preparing information on blacklisted loan defaulters. The NRB, commercial bank group, development bank group and finance company group own 10 percent, 65 percent, 10 percent and 15 percent of shares respectively in this Bureau. By mid-January 2016, the number of blacklisted borrowers totaled 7,106, while 2,492 borrowers have been delisted from the black list in this period. Rural Self-Reliance Fund 4.44 Rural Self-Reliance Fund, established in 1991, has been providing wholesale credits with the objective of improving economic as well as social status of targeted groups through optimum utilization of local resources, means, and skills. By this period, seed capital of the Fund has reached Rs. 793.4 million with receipt of Rs.540 million from the Government of Nepal and Rs. 253.4 million from NRB. The Fund has been disbursing credits from the seed capital to its affiliated organizations on the basis of their capacity and primary capital. 4.45 The Fund has disbursed credit amounting Rs. 1.9 billion to 1,129 organizations including NGOs and cooperatives by mid-March 2016. Of this total credit, a sum of 1,355.4 million has been recovered. The Fund’s debt recovery rate against its credit flow to cooperatives and NGOs stood at 95.7 percent. NGOs have been delivering services in 68 districts through the credit made available by the Fund, while a total of 53,392 rural families have directly benefited by conducting various income and self-employment oriented programs. Table 4 (o): Status of Rural Self-Reliance Fund (In Rs. 10 Million) S. Mid- Mid-July Mid-April Mid-July No. Description March 2014 2015 2015 2016 1 Number of Loan Disbursed Districts 68 68 68 68 2 Number of Loan Disbursed 940 1013 1024 1139 Institutions 3 Number of Beneficiary Households 46081 48679 49245 53392*

4 Disbursed Credit Amount ( in Rs. 10 152.33 166.49 170.06 190.47 Million) 5 Amount Recovered ( In Rs. 10 91.3 109.21 116.5 135.54 Million) 6 Amount Remained on Investment (In 61.04 57.08 53.56 54.93 Rs. 10 Million) 7 Overdue Loan (As percent of amount 3.67 5.45 5.38 4.35 to be recovered) 8 Credit Recovery (Percent) 96.33 94.55 94.62 95.65 Source: Nepal Rastra Bank *Including Non-Government institution Cooperatives Conducting Limited Banking Transactions 4.46 The number of Co-operatives, established under the Cooperatives Act, 1991 and licensed by NRB to carry out limited banking transactions has reached 15 by mid-March 2016. Assets/liabilities of these Cooperatives that totaled Rs. 24.76 billion by mid-July 2015, stood at Rs. 27.82 billion by mid-March 2015. Likewise, deposit collections of these cooperatives reached Rs. 20.98 billion while credit and borrowings totaled Rs. 16.28 billion in mid-March 2016. These institutions have made total investment of Rs. 2.47 billion in government bonds, fixed accounts and other instruments by mid-March, 2016. 4.47 The number of Savings and Credit Cooperatives registered under the Cooperatives Act, 1991, and carrying out transactions, has reached 33,201 by mid-March 2016. Of this, 13,535 have been operating as saving and credit cooperatives. Membership in such cooperative institutions has reached 277.9 million by mid-March, 2016. By this period, share capital of such cooperative institutions stood at Rs. 47.75 billion, deposit at Rs. 148.09 billion and investment at Rs. 137.52 billion. Financial Sector Reform Program 4.48 The task of reforming the financial sector has given continuity even after completion of the Financial Sector Reform Project in 2011. Restructuring activities in Rastriya Banijya Bank and Nepal Bank Ltd. under this project are in progress. The overall financial position of both Nepal Bank Ltd. and Rastriya Banijya Bank Ltd. has been progressive due credit to their notable growth in the paid up capital and deposits, decrease in the volume of nonperforming loans with both banks operating in profit during the review period. The position of non-performing loan and capital fund of these two banks is presented in the table below.

Table 4(p) : Non-Performing Loan and Capital Fund Non-Performing Loan in Capital Fund (Rs. in Total Loan (Percent) Billion) Mid-July Rastriya Banijya Nepal Bank Ltd Rastriya Banijya Bank Nepal Bank Ltd Bank 2003 60.47 60.15 -9.80 -22.39 2008 12.38 21.65 -5.72 -15.5 2013 4.53 5.31 -0.96 2.50 2014 4.74 3.95 3.76 2.90 2015 3.95 3.41 3.77 7.51 Mid-Jan 2016 3.85 3.40 4.73 7.22 Source: Nepal Rastra Bank and Quarterly Reports of the Banks Other Provisions Relating to Bank and Financial Institutions 4.49 Provision has been made for the BFIs to raise their minimum level of paid-up capital so as to mobilize their resources and promote financial stability by strengthening their capital base for their long-term development. As per this provision laid out in monetary policy for FY 2015/16, commercial banks are required to raise their paid-up capital to Rs. 8 billion, national level development banks to Rs. 2.5 billion, development banks with operation area covering (4-10) districts to Rs. 1.2 billion, development banks with operation area covering (1-3)districts to Rs. 500 million. Likewise, national level finance companies and those operating in 4 to 10 districts are required to increase their paid-up capital to Rs. 800 million and those operating in 1to3 districts to Rs. 400 million. These provisions shall be met by mid-July, 2017. Paid-up capital may be raised by such BFIs through merger or by issuing bonus share, right and additional shares. 4.50 Arrangement is made for Implementation of capital fund related provisions that is based on the work schedule prepared for gradual implementation of Basel -III provisions in commercial banks. Arrangements have been made for parallel run of Capital Adequacy Framework 2015 based Basel -III provisions in commercial banks from January 2016 followed by their full execution from July 2016. 4.51 Provision has been made for BFIs to replace existing debit, credit and prepaid magnetic strip cards with chip based cards by mid-October, 2015 to ensure security on the usage of banking services thereby mitigating operational risks. 4.52 Provision exists for extending micro-credits to ultra poor and low income people through BFIs to run micro-enterprises or businesses on group guarantee. The limit of such credit has been raised from Rs. 200 78

thousand to Rs. 300 thousand for those micro-credit facility using group members, who have been using the facility since last two years and belong to the good credit standing group category. Likewise, the exiting collateral based micro-credit limit of Rs. 500 thousand has been raised to Rs. 700 thousand. 4.53 Provision where the credit flow volume from BFIs to the deprived groups was raised by 0.5 percentage points making it mandatory for them to disburse such credits in proportions of 5.0 percent for Commercial Banks, 4.5 percent for development banks and 4.0 percent for finance companies to their respective total credit flow volume, by mid-January, 2016, BFIs are found to have disbursed loans to those deprived groups at the proportions of 5.3 percent, 6.4 percent, and 4.0 percent of their credit volumes respectively. 4.54 Provision has been made for the institutions serving in the financial sector to mandatorily prepare and adopt Contingency Management Framework by giving due consideration to possible impact in the event of natural disaster so that regular business operations of the financial system is unhindered. 4.55 Provision is made for the operation of Economic Rehabilitation Fund as stipulated in Nepal government’s Budget speech with a view to provide support to the effort of refinancing earthquake affected residential buildings, homes, agriculture business, tourism sectors at concessional interest rate. For this, Economic Rehabilitation Fund (Formation/ Operation) related Guidelines 2015,that has been endorsed by Nepal Government’s Council of Ministers, is in implementation. Problems and Challenges 4.56 Implementation of monetary policy amid high inflation rate and low economic growth remains a challenge. In such a situation, inflationary pressure further rises if broad money supply instrument is applied, and economic growth will be hindered if narrow monetary policy is adopted. Maintaining monetary policy in a balanced state in such situation is a challenging task. Containing price within the desired limit in coming days is a great challenge owing to a number of factors like aggregate demand is likely to surge as a result of increased public expenditure for reconstruction and rehabilitation of damaged structures coupled with the frequent obstructions in supply situation. In addition, price of agriculture products is like to increase due to production decrease and in such a situation, there lay a challenge to maintain coordination between monetary and fiscal policies for sustained price stability.

4.57 Liquidity in banking sector still remains high in current fiscal year. Despite bid deposit and reverse repo like monetary instruments applied to manage liquidity situation, the liquidity pressure still persists. Despite having excess liquidity with the banking sector, it has not been able to utilize it in the productive sector as desired. Hence, mobilizing such excess liquidity in development works through government’s loan and utilizing it in the productive sector through the private sector remains a challenge. 4.58 Country’s financial system is likely to face additional risks as a result of BFIs’ increased use of technology and transactions at home and abroad. Challenge lies ahead to extend its regulation and supervision limit and make it more competent. Aside from Institutional governance and self- regulatory provisions, it is necessary to make law and order situation more effective. Tasks of strengthening BFIs’ capacity to bear eminent risks and making their transactions more transport are of utmost important. Similarly, remaining alert is necessary to cope with the additional challenge of maintaining financial stability amid situations where performances of BFIs financed projects heavily suffered due to the impact on economic activities resulting from border obstructions and devastating earthquake in current fiscal year; and potential problems emanating from inability of BFIs to recover loans extended for reconstruction and recovery purposes. 4.59 The presence of BFIs could not be expanded to rural and remote areas to the desired extent. Though the number and types of BFIs have continued to grow, there still remains a challenge of enhancing access to finance and making it inclusive. Similarly, tasks of increasing the presence of financial institutions to enhance access to finance; reducing interest rates by lowering the cost of micro-finance institutions in a country like Nepal where literacy rate is comparatively low; using advanced technology based instruments;, and making financial system more inclusive by enhancing public trust towards this also remain daunting challenges. Likewise, despite contribution of saving and credit cooperative institutions to the expansion of financial accessibility, lack of regulation and supervision and institutional governance have added further risk to the financial stability. Hence, it is imperative to establish second tier supervisory organization where arrangements have to be made for carrying out regulation, inspection, and supervision tasks of microfinance institutions.

5. Capital Market and Insurance 5.1. Development and expansion of capital market has been gaining global importance for its crucial role in consolidating scattered savings and mobilizing them in productive sectors for the country’s economic development. Accordingly, initiation of institutional development of capital market in Nepal began in 1976. It is imperative to make capital mobilization efforts competent and effective to use it in the productive sector by providing momentum to the pace of capital market development. Similarly, development of capital market is essential to invest in stocks and bonds; safeguard investors’ interests; regulate and organize activities of the share market and individuals engaged in the share market by putting issuance, purchase, sale, distribution, and exchange of stocks and bonds in order; and thereby mobilize the capital necessary for economic development of the country. Primary market 5.2. In the first eight months of FY 2015/16, capital equivalent to Rs. 12,271.6 million has been mobilized in the primary security market through 30 organized companies including 9 ordinary share issuers, 20 rights share issuers, 1 mutual investment plan company. Likewise, the amount against issuance of shares has grown by 37.99 percent in the first eight months of the current fiscal year 2015/16 as compared to the corresponding period of the previous fiscal year. Table 5(a): Primary Market Trend (Rs. in 10 Million) Fiscal Year First Eight Description 2010/11 2011/12 2012/13 2013/14 2014/15 Months 2014/15 2015/16 Capital Mobilization 685.4 295.01 1068.52 726.68 1443.53 889.31 1227.16 Ordinary Share 172.88 129.85 318.74 157.35 697.74 400.62 811.45 Right Share 507.52 45.16 393.52 424.33 230.79 288.69 335.71 Preference Share ------

Debenture 5.00 120.00 355.00 145.00 290.00 100.00 - Citizen Unitary Plan 31.54 32.7 - - - -

Mutual Fund - - - 80.00 225 100 80.00 Number of Organized Capital 47 25 34 45 48 30 30 Mobilizing Companies Source: Securities Exchange Board of Nepal

5.3. In FY 2014/15, capital equivalent to Rs. 14,435.3 million was mobilized in the primary security market through 48 organized companies including 18 ordinary share issuers, 22 rights share issuers, 5 debenture issuers, 3 mutual investment plan companies.

Source: Stock Exchange Board of Nepal *First Eight Months (2015/16) Secondary Market 5.4. The number of companies listed in Nepal Stock Exchange Limited, which stood at 233 at the end of Fiscal Year 2014/15 totaled to 230 by the first eight months of FY 2015/16. Similarly, during the same period of current fiscal year 2015/16, a total of 13 companies are in the listing process while 15 listed companies are in merger/acquisition process. Likewise, during the same period, the total number of listed corporate development bonds reached 20 with additional development bonds worth Rs. 1.7 billion of newly listed three companies. Market Capitalization Market

5.5. The market capitalization value rose by 41.52 percent to Rs. 1420.91 billion in the first eight months of the current fiscal year 2015/16 against Rs. 1,004.03 billion during the same period of its previous fiscal year 2014/15. The market capitalization value by the end of FY 2014/15 was Rs.889.4 billion.

5.6. Shares transaction rose by 39.04 percent reaching Rs, 70119.0 million where 137,336,000 units of shares were traded in the first eight months of the current fiscal year 2015/16 as compared to the corresponding period of its previous fiscal year 2014/15. During the first eight months of the FY 2014/15, a total of 121,178,000 units of shares worth Rs. 50431.2 million were traded.

5.7. The paid-up capital of listed company has grown by 63.35 percent to Rs. 255437.1 million in the first eight months of the current fiscal year 2015/16 in contrast to that of 156571.3 million of the same period of previous fiscal year 2014/15.

Paid Up Value and Transaction Amount Transaction and Value Up Paid Source: Nepal Stock Exchange Ltd First Eight Months (2015/16)

5.8. The NEPSE index stood at 1318.88 points by the end of the first eight months of FY 2015/16 with an increase of 34.79 percent as compared to the corresponding period of the previous fiscal year. The index had rested at 978.44 points in the first eight months of FY 2013/14.

5 6 7 8 9 0 1 2 3 4 5 6 0 0 0 0 0 1 1 1 1 1 1 1 / / / / / / / / / / / / 4 5 6 7 8 9 0 1 2 3 4 5

NEPSE Index NEPSE 0 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 Source: Nepal Stock Exchange Ltd. *First Eight Months (2015/16)

Table 5(b): Secondary Market Trend Fiscal Year

Description First Eight Months 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16

Securities Transaction Amount 666.53 1027.28 2204.88 7729.85 6533.15 5043.12 7011.90

Number of Securities Transaction 26240.39 41878.9 81571.7 214143.56 159717.47 129178 137336.54 (1000)

Number of Transaction 302364 293489 292366 566389 477278 375192 429180

Market Capitalization 32348.43 36826.21 51449.21 105716 98940.39 100403 142091.14

Percentage of Market Capitalization 2.06 2.79 1.59 7.31 6.60 - - Transactions Percentage of Market Capitalization 19.48 23.41 30.24 40 46.57 - - to GDP

Paid-up Price of Listed Shares 10023.8 11061. 12648.9 14753.99 21058.86 15657.13 25543.71

Number of Listed Organized 209 216 230 233 232 232 230 Institutions

Type of Securities (Script Traded) 222 230 230 269 271 254 255

NEPSE Index (Points) 362.85 389.74 518.33 1036.11 961.23 978.44 1318.88 Source: Nepal Stock Exchange Ltd

5.9. Shares transactions rose by 14.39 percent reaching a total of 429, 180 in the first eight months of the current fiscal year 2015/16 as compared to the corresponding period of previous fiscal year 2014/15. During the first eight months of the previous FY 2014/15, a total number of share transactions had stood at 375,192.

Securities Board of Nepal (SEBON)

5.10. In the first eight months of the current fiscal year 2015/16, the Board has issued license to 30 organized institutions for capital mobilization by registering shares equivalent to Rs. 12,271.6 million. Likewise, in the same period, bonus shares equivalent to Rs.6, 9842.3 million of 55 listed companies were registered with the Board. Similarly, licenses of 1 Stock Exchange, 14 Merchant Bankers, 1 Central Depository Company, 45 Depository Members, 1 Credit Rating Company and 50 Share Brokers have been renewed during the same period.

5.11. Share transaction system came into operation since 2008. CDs and Clearing Limited brought majority of listed companies into dematerialization system in 2012 for central depository and clearing of shares while secondary security market is in operation since August 18,2015 with full-fledge online transfer and clearing system.

5.12. The market depth facility that was available only with stockbrokers has been made online for all investors since January 2, 2016.

5.13. Arrangement has been made for making the trading window available for small investors including women, senior citizens, physically challenged people, and children on the trading floor, create a small investors’ complaints hearing unit; and installation of a display board reflecting the services offered along with time schedules.

5.14. There has been arrangement for right and bonus shares issued by the listed companies to be deposited directly in the demat account and cash dividend disbursed by the organized institutions to be deposited directly in shareholders’ bank accounts.

5.15. Continuity has been given to the implementation of programs specified in a five-year plan prepared for security market reform program, effective regulatory provision, and stability and sustainable development of capital market. Likewise, a Security Market Reform and Development Related Strategy has been prepared for incorporation in the Financial Sector Development Strategy Government of Nepal.

Nepal Stock Exchange Limited

5.16. By mid-February of FY 2015/16, the existing Private Network/Internet transaction system has been extended to Biratnagar, Dharan, Birgunj Narayangadh, Pokhara, Butwal and Dhangadhi.

5.17. In the first eight months of FY 2015/16, work plan has been developed for activating Over the Counter –OTC of securities market.

5.18. In the first eight months of the current fiscal year 2015/16, arrangement has been made for all investors to view market dept through NEPSE website.

5.19. Work schedule for monitoring and supervision has been developed and implemented with a view to managing risk that are likely to emerge with increased transaction volume.

Central Depository Service

5.20. By the first eight months of the current fiscal year, a total of 113 companies have been registered in Centralized Depository Clearing and Settlement (CDS) and Clearing Limited while such number had stood at 97 in the same period last year. Agreement for the registration of additional 79 companies has been reached in the first eight months of the current fiscal year.

5.21. The number of depositor members has reached 49 by the first eight months of the current fiscal year against 45 such member that of last year. Likewise the number of licensed clearing members for providing clearing and settlements services has reached 49 during the same period.

5.22. As of mid-February of the current fiscal year, the number of beneficiary account holders in CDS and Clearing Ltd. has reached 215,052. The number of such accounts totaled 40,400 in FY 2014/15 while 172,345 new beneficiary accounts have been opened by first eight months of current fiscal year.

5.23. The number of dematerialized share has reached 496,298,490 units by first eight months of current fiscal year from 22,452,915 units in fiscal year 2014/15.

Insurance

5.24 Insurance Committee, established on 14th May 1969, has been carrying out operations as a regulatory agency by systemizing, regulating, developing, and controlling the insurance business. Currently, 9 companies have been carrying out life insurance business, 17 companies in non-life insurance, while 1 insurance company is engaged in reinsurance totaling 27 insurance companies. According to figures of ownership structure of insurance companies, three are working as branches of foreign insurance companies, three on joint investment with foreign companies, 18 on private ownership, and two on Government ownership.

Table 5 (c ): Ownership Structure of Insurance Companies

Ownership Non-Life Life Reinsurance Total Government 1 1 – 2 Private 13 5 – 18 Foreign 2 1 – 3 Joint 1 2 1 4 Total 17 9 1 27 Source: Insurance Board 5.25 It is necessary to develop insurance business in compliance with national need by embracing the globally accepted insurance norms to provide economic protection to all class of the people against natural and social risks while embracing the globally accepted insurance norms. 5.26 Rights and interests of the insured are being safeguarded by regulating the insurance business through development, regularization thereby making the insurance business competitive and trustworthy in the delivery of quality and reliable insurance services to the public. Similarly, policy and institutional reform works are being carried out in the insurance sector with a view to make it time relevant considering that the insurance is indispensible part of life that provides economic and social protection against natural calamity induced risks. Likewise, programs are underway aimed at enhancing insurance sector’s contribution to GDP through development and growth of insurance business with the expansion of insurance services in rural life and the economy.

Source and Utilization 5.27 The total financial source and their utilization of life and non-life insurance companies operating in the country has increased by 10.76 percent to Rs. 143,375.3 million by mid-March of FY 2015/16 as compared to that of previous fiscal year. Of this, life insurance companies share Rs. 114,747.0 million while non-life companies share Rs. 28,628.3 million. Such amount had reached Rs. 129,444.7 million last year. Table 5 (d): Source and Utilization of life and non-life Insurance Companies (In Rs. 10 Million) Fiscal Year Source 2012/13 2013/14 2014/15 2015/16** Life Non-Life Life Non-Life Life Non-Life Life Non-Life A) Paid Up Capital 332.38 200.41 453.52 287.70 577.75 373.22 577.75 418.40 B) Reserve and Fund 5036.32 865.30 6473.89 1096.62 9398.65 1782.55 10533.52 1913.29 C) Other Liability 204.05 293.12 176.97 323.47 393.40 418.90 363.43 531.14 Total Source 5572.75 1358.83 7104.38 1707.79 10369.80 2574.67 11474.70 2862.83 Utilization A) Bank and Cash 123.07 75.06 81.67 86.65 196.17 272.05 508.15 283.04 Balance B) Investment 4,982.91 890.14 6,437.64 1,140.50 9,417.57 1,590.32 10,036.26 1,580.91 C) Fixed Assets 140.44 93.78 142.39 92.87 163.94 107.41 164.79 107.69 D) Other Assets 326.33 299.85 442.68 387.77 592.12 604.89 765.50 891.19 Total Utilization 5572.75 1358.83 7104.38 1707.79 10369.80 2574.67 11474.70 2862.83 Source: Insurance Board Total Earnings through Insurance Premium 5.28 A total of Rs. 17,656.9 million was earned through life and non-life Insurance businesses in FY 2010/11. The insurance premium continued to grow in its subsequent years due to the expansion and development of insurance business reaching a total earnings of Rs. 36,289.0 million in FY 2014/15. The premium amount has increased by 19.25 percent in FY 2014/15 as compared to that of its preceding fiscal year. Premiums including that of life and non-life insurance had reached Rs. 25.74 billion by the first eight months of the current fiscal year while this is estimated to reach Rs. 38.60 billion by the end of this fiscal year.

Table 5 (e): Total Life and Non-Life Insurance Premiums*

Total Insurance Premium (In Rs. 10 Million) Growth Rate Fiscal Year Life Non-Life Total (In Percentage) 2010/11 1059.3 706.39 1765.69 15.68 2011/12 1416.93 784.43 2201.36 24.67 2012/13 1611.15 816.82 2427.97 10.29 2013/14 2000.53 1042.60 3043.13 25.33 2014/15 2497.33 1131.57 3628.90 19.25 2015/16** 1748.70 825.32 3860.00 6.36 Source: Insurance Board Chart 5 (e): Total Life and Non-Life Insurance Premiums (In Rs. 10 Million)

Source: Insurance Board Chart 5 (f): Growth of Life and Non-Life Insurance Businesses

Source: Insurance Board Contribution of Insurance Premiums to GDP 5.29 The contribution of insurance premiums to GDP has stood at 1.71 percent in FY 2014/15 against such contribution of 1.57 percent in its preceding fiscal year. Such contributions were recorded at 1.29 percent, 1.44 percent and 1.45 percent for FY 2010/11, FY 2011/12 and FY 2012/13 respectively. This is estimated to remain close to the figure of previous fiscal year.

Table 5 (f): Contribution of Insurance Premiums to GDP* GDP Total Insurance Total Insurance Premium (At Prevailing Fiscal Year Premium compared to GDP (In Price) (In Rs. 10 Million) Percentage) (In Rs. 10 Million) 2010/11 1765.69 136690.00 1.29 2011/12 2201.36 152730.00 1.44 2012/13 2427.97 167500.00 1.45 2013/14 3043.13 194160.00 1.57 2014/15 3628.90 2120470.00 1.71 2015/16** 3860.00 224870.00 1.71 Source: Insurance Board Chart 5 (g) : Growth Rate of Insurance Business Contribution to GDP (In Percentage)

Source: Insurance Board 5.30 The investible amount with life and non-life insurers stood at Rs. 43939.8 million for FY 2010/11, Rs. 63145.5 million for FY 2011/12, Rs. 74560.04 million for FY 2012/13 Rs. 91351.6 million for FY 2013/14, Rs. 112099.3 million for FY 2014/15 while it is estimated to remain at Rs. 124,880.0 million in the current fiscal year. Table 5 (g) : Investment made in Life and Non-Life Insurance Business Investment (In Rs. 10 Million) Fiscal Year Life Non-Life Total 2010/11 3646.71 747.27 4393.98 2011/12 5450.04 864.51 6314.55 2012/13 6434.31 1021.73 7456.04 2013/14 7912.06 1223.10 9135.16 2014/15 9712.50 1497.43 11209.93 2015/16** 10683.00 1805.00 12488.00 Source: Insurance Board

Chart 5 (h) : Investment Made in Life and Non-Life Insurance Business (In Rs. 10 Million)

Revenue through Insurance Business

5.31 The volume of Institutional and other revenues through insurance business have continued to grow. Nepal government’s revenue earnings in FY 2010/11 through to FY 2014/15 have remained at Rs. 1.9 billion, Rs. 2722.3 million, Rs. 3395.0 million, Rs. 4214.5 million and Rs. 6252.0 million respectively. Table 5 (h) : Revenue Collected from Insurance Business* Fiscal Year Tax Payment (In Rs. 10 Million) 2010/11 190.00 2011/12 272.23 2012/13 339.50 2013/14 421.45 2014/15 625.20 Chart 5 (i) : Revenue Receipt to Nepal Government* (Rs. in million)

Insurance Claim 5.32 The claimed amount against non-life insurance business has stood at Rs. 18606.1 million as on mid-March, 2016 and of this, Rs. 9875.8 million ( 53.08 percent) has been paid to the insured while 100 percent payment has been made to the claimants relating to earthquake against life insurance . Chart 5 (j) : Non-Life Insurers' Claim for Losses due to Earthquake

Chart 5 (k) : Payment on the Claim of Non-life Insurers

Table 5 (i) : Insurance Claim and Insurance Claim Payment

Claim Amount Total Claim Amount Released by Mid- Total Claim relating to Earthquake March 2016 Amount S. No. Insurer Name Released (In Rs. 100 Thousand) (In Rs. 100 Percentage Thousand)

1 Nepal Ins. Co. Ltd. 7020.25 6038.72 86.02 2. The Oriental Ins. Co. Ltd 8476.80 3506.68 42.82 3. National Ins. Co. Ltd 12464.12 4056.09 32.54 4. Himalayan General Ins. Co. Ltd 57226.00 33040.00 57.73 5. United Ins. Co. (Nepal) Ltd 9038.79 3128.35 34.61 6. Premier Ins. Co. (Nepal) Ltd 17429.00 7676.04 44.04 7. Everest Ins. Co. Ltd 2641.83 670.13 25.37 8. Neco Ins. Ltd 6387.00 4776.00 74.13 9. Sagarmatha Ins. Co. Ltd 16694.00 10664.00 64.00 10. Prabhu Ins. Co. Ltd 10798.99 3249.41 30.09 11. NB Ins. Co. Ltd - - - 12. Prudential Ins. Co. Ltd 4819.36 3051.31 63.54 13. Shikhar Ins. Co. Ltd 9552.00 8102.00 84.82 14. Lumbini General Ins. Co. Ltd 2836.04 1968.52 69.45 15. NLG Ins. Co. Ltd 7719.00 2678.00 34.73 16. Siddhartha Ins. Ltd 11146.94 5589.33 50.16 17. National Insurance Co. Ltd 1811.71 563.65 31.11 Total 186061.83 98758 53.08 Source: Insurance Board

Table 5 (j) : Insurance Claim Amount Released by Life Insurance Business

Amount Released S. No Insurer Name (In Rs. 100 Thousand)

1 Rastriya Beema Sanstha 75.13 2 National Life Insurance Company Ltd 41.86 3 Nepal Life Insurance Company Ltd 240.65 4 Life Insurance Corporation (Nepal) Limited 83.28 5 Metlife Alico) 324.52 6 Asian Life Insurance Company Ltd 74.55 7 Surya Life Insurance Company Ltd 26.02 8 Gurans Life Insurance Company Ltd 5.13 9 Prime Life Insurance Company Ltd 42.07 Total 913.21

Chart 5 (l) : Insurance Claim Amount Released by Life Insurance Business

Problems and Challenges 5.33 In the background of the need for participation of companies of the real sector in the stock market for reliable and sustainable development, making entry of the companies of the real sector into the secondary market through monetary, fiscal and other policies, and introducing liberal pricing policy on issuance of stocks by promoting their financial transparency and good governance has been a daunting challenge. 5.34 Tasks of establishing institutional governance system in listed organized institutions and stock market operators, developing derivative market, standardizing outdated listing arrangements for making it time relevant, making stock brokers more standard, professional and competent, ensuring volume capital/private equity arrangement, making the credit rating business more competitive and reviewing of stock market’s transaction costs have remained a challenge. 5.35 It is a challenging task to make Nepal Stock Exchange Ltd. more competitive with the involvement of either appropriate strategic partner or through corporate privatization to undergo its structural reform. Likewise, there has been another challenge to bring changes in the ownership structure of CDS and Clearing Ltd. for effective operation of electronic transfer and clearing and settlement works. 5.36 There lies a challenge to enhance the structural and competitive capacities of secondary market by importing foreign technologies and capital in various sectors of capital market as that in Banking and Financial Institutions. 5.37 Preparing legal and structural framework that supports modernization of insurance initiatives; helping development of agricultural economy by securing public investment on agriculture through rapid expansion of crops and livestock insurance; and developing micro-insurance and providing access of life insurance service to the maximum number of Nepali people through its expansion are other challenging tasks. 94

6. External Sector

The status of Nepal’s external sector’s indicators except that of trade deficit remained satisfactory in later years. As balance of payment surplus rely mainly on labor remittance income and the volume of imports, it remained high during review period as a result of notable decrease in imports in contrast to high remittance inflow. Due to increased balance of payment surplus, foreign exchange reserves registered significant growth enhancing its capacity to cover imports of goods and services. Though Nepal witnessed balance of payment surplus in most of the years owing to high remittance inflow, trade deficit has continued to grow every year.

6.1 To maintain stability of the external sector is one of the prime objectives of macroeconomic policy. For the stability of this sector in developing countries like Nepal, where fixed exchange rate system is in practice and capital account is not completely open, it is necessary to stabilize the current account and balance of payments. Trade deficit can be minimized if import substitution is given emphasis by gradually enhancing exports of goods and services. Benefits from the opportunities of international trade can only be reaped if infrastructures are built in such a way that bases for supplies of goods and services of internationally high demand can be created and capacity of the private sector is enhanced. 6.2 Nepal’s economic development can only be supported through international goods, services and labor market if emphasis could be given on diversification and promotion of exports, enhancing export volume, building sustainable foundation for employment and foreign currency is earned through quality enhancement of tourism, education and health services, import substitution production enhancement, and making foreign employment highly result oriented. Nepalese external sector also offers opportunities such as growth in foreign exchange surplus enabling to cover imports, United States of America offered duty free facility on Nepalese readymade garments for ten years, trades and services expansion potential, and using the remittance inflow on capital formation etc. Structure and Trend 6.3 Nepal’s trade deficit in international trade has continued to grow. This situation emerged as a result of increased import with decreased export volume. Higher expenditure on the import of petroleum products as

compared to the income earned from export of goods in most of the years and increased volume of imports of agricultural and essential goods seemed to have made the foundation of export in Nepalese economy weak thereby making it reliance over imports. 6.4 In last five years, the average growth rate of exports of tradable goods remained merely at 7.4 percent whereas that of imports stood at 15.9 percent. During five years period, the exports to India and other countries has registered growth of 7.2 percent and 7.9 percent respectively while the imports during the same period expanded with an average of 18.1 percent and 13.5 percent respectively. Exports of Nepal are focused on some limited goods. Based on exports of the last year, only 13 items valued over Rs. 1 billion were exported including, sacks, pulses, cardamom, juice, jute products, GI pipe, polyester yarn, cashmere (pashmina) , woolen carpet, copper wire, iron rod, textiles, zinc sheet and readymade garment. 6.5 In FY 2010/11, the share of export of tradable goods to GDP was 4.7 percent which dropped to 4 percent in FY 2014/15. On the flip side, the share of import of goods to GDP that was 29 percent to GDP in fiscal year 2010/11 went up to 36.5 percent in 2014/15. As a result, the ratio of trade deficit to GDP which was 24.3 percent in fiscal year 2010/11 reached 32.5 percent in FY 2014/15. Similarly, export/import ratio that stood at 16 percent in 2010/11 slid to 11 percent in FY 2014/15. 6.6 Likewise, Import volume was 6 times higher than that of export in FY 2010/11 while in fiscal year 2014/15, this volume rose to 9 folds. There has been trade deficit of about Rs. 2 billion a day. This indicates that export base of Nepal is getting weaker and Nepal has not been able to gain benefit from international trade. The share of remittance to GDP 96

remained at 18.5 percent in FY 2010/11 which rose to 29.1 percent in fiscal year 2014/15. According to World Bank Migration and Remittance Fact Book, Nepal holds the third position among the countries to receive highest proportion of remittance to GDP. Though Nepal’s current position seems to be satisfactory due to the level of foreign exchange reserve that has boosted its capacity to bear imports’ costs, it calls for an appropriate utilization of remittance income.

Box 6 (a): Trade Policy, 2015

Nepal Government has issued commerce policy, 2015 with a long-term vision of achieving economic prosperity by enhancing commerce sector’s contribution to national economy through export promotion. Objectives of this policy are to; achieve inclusive and sustainable economic growth through export promotion, enhance supply related capacity, reduce trade deficit by increasing exports of value added and competitive goods and services, increase access of goods, services and intellectual property to the regional and global markets. This policy shall supersede the earlier Commerce Policy, 2008 and help reduce trade deficit through the utilization of opportunities provided by world trade system incorporating issues including developing harmony between Commerce Policy and Nepal Trade Integration Strategy, enhancing supply related capacity, increasing production and productivity, protecting and promoting service, trade and intellectual property, supporting and mainstreaming trade, making arrangement for monitoring corporate social responsibility, trade and environment.

As per the institutional provision under this Policy, it has envisaged to constitute “Board of Trade” at central level in private sector’s participation with a view of providing assistance in the formulation of policy required for promoting and facilitating trade , monitoring policy and establishing inter-agency coordination. Likewise, this has incorporated the task of transforming the exiting Trade and Export Promotion Center into an autonomous institution naming Trade Promotion Academy with the arragements of necessary organizational structure and resources. This Policy consists of a list of possible export items with 26 goods and 7 services.

Gross Foreign Trade

6.7 Due to the closure of Nepal’s main border with China following the earthquake coupled with obstructions in other southern border points has provided tremendous impact on Nepal’s international trade. As a result, total international trade fell by 15 percent to Rs. 478.53 billion in the first eight months of the current fiscal year 2015/16 while this had recorded the growth of 8.5 percent reaching Rs. 562.79 billion during the same period of previous fiscal year. The share of export to total traded goods

was 8.9 percent while that of import was 91.1 percent. The shares of export and import to total traded goods were 10.1 percent and 89.9 percent respectively during the same period of previous fiscal year. Goods Export 6.8 The volume of total goods export dropped by 24.9 percent to Rs. 42.73 billion in first eight months of current fiscal year 2015/16 while such export volume had declined by 6.6 percent to Rs. 56.87 billion in the corresponding period of previous fiscal year. 6.9 The export to India, china and other countries fell by 34.5 percent, 45.9 and 3.7 percent respectively during review period of current fiscal year 2015/16. On item-wise basis, the exports of goods including zinc sheet, textiles, GI pipe, juice etc. to India, refined leather, noodles, readymade garments to China, and pulses, processed leather, leather-made items, tea to the other countries have declined. Such export to India had declined by 9.9 percent towards while that to other countries had dropped by 0.9 percent but that to China had attained growth of 9.3 in the same period of previous fiscal year. Goods Import 6.10 Total Import of goods has decreased by 13.9 percent to Rs. 435.8 billion in the first eight months of current fiscal year. Such import had grown by 10.5 percent in the same period of previous year. The import volume dropped by 19.3 percent, 2 percent and 6.1 percent respectively from India, China and other countries. On item-wise basis, the import of goods from India including petroleum products, M.S. Billets, chemical fertilizers, machinery parts has dropped. Similarly, imports of machineries and their accessories, electric goods, medical equipments, steel rod and sheets from China and silver, edible oil, crude oil, copper wire from other countries have also declined.

Table 6 (a): Foreign Trade Situation (First Eight Months) (Percent change) Description 2011/12 2012/13 2013/14 2014/15 2015/16* Export 14.1 5.0 19.4 -6.6 -24.9 India 14.5 2.0 21.9 -9.9 -34.5 China - - 12.6 9.3 -45.9 Other Countries 13.5 11.2 14.9 -0.9 -3.7 Import 16.6 22.1 27.0 10.5 -13.9 India 12.0 24.2 28.1 5.1 -19.3 China - - 14.7 48.6 -2.0 Other Countries 26.3 18.2 30.1 8.7 -6.1 Trade Balance 17.1 25.5 28.2 13.1 -12.5 India 11.5 28.8 29.1 7.4 -17.3 China - - 14.8 50.1 -0.8 Other Countries 28.9 19.5 33.9 10.7 -6.6 Total Trade 16.3 19.7 26.0 8.5 -15.0 India 12.4 21.0 27.3 3.3 -20.8 China - - 14.7 47.3 -3.1 Other Countries 24.4 17.3 27.5 7.2 -5.8 Export/Import Ratio 16.4 14.1 13.3 11.2 9.8 India 17.0 14.0 13.3 11.4 9.3 China - 3.6 3.6 2.6 1.4 Other Countries 15.4 20.1 17.7 16.2 16.6 Share in Total Export (%) 0.0 0.0 0.0 India 67.1 65.2 66.5 64.2 56.0 China - 3.0 2.8 3.3 2.4 Other Countries 32.9 31.8 30.6 32.5 41.7 Share in Total Import (%) 0.0 0.0 0.0 India 64.8 65.9 66.5 63.2 59.3 China - 11.7 10.5 14.2 16.1 Other Countries 35.2 22.4 23.0 22.6 24.6 Share in Trade Balance (%) 0.0 0.0 0.0 India 64.3 66.0 66.5 63.1 59.6 China - 13.1 11.7 15.5 17.6 Other Countries 35.7 20.9 21.8 21.3 22.8 Share in Total Trade (%) 0.0 0.0 0.0 India 65.1 65.8 66.5 63.3 59.0 China - 10.6 9.6 13.1 14.9

Description 2011/12 2012/13 2013/14 2014/15 2015/16* Other Countries 34.9 23.6 23.9 23.6 26.1 Share of Import and Export in Total Trade 0.0 0.0 0.0 Export 14.1 12.4 11.7 10.1 8.9 Import 85.9 87.6 88.3 89.9 91.1 Source: Nepal Rastra Bank 6.11 During the first eight months of current fiscal year, the import from India through the payment of convertible foreign currency has increased by 19.9 percent to Rs. 39.86 billion. Such import had reached 49.79 billion with the growth of 0.3 percent during the same period of previous fiscal year. The share of import from India through payment of convertible foreign currency to total import has stood at 15.4 percent during review period. Trade balance 6.12 The total trade deficit has declined by 12.5 percent and got contained at Rs. 393.07 billion in the review period. Such deficit had increased by 13.1 percent reaching Rs. 449.05 billion during the same period of previous fiscal year. 6.13 Of the total trade deficit, the trade deficit to India has decreased by 17.3 percent in the review period against its growth of 7.4 in the same period of previous fiscal year. Likewise, trade deficit to China that had increased by 50.1 percent last year declined by 0.8 percent during the review period. The trade deficit that had registered an increment of 10.7 percent in the first eight months of previous fiscal year has declined by 6.6 percent during the review period of current fiscal year. The fall in export is higher as compared to that of import resulted in the decline of export to import ratio to 9.8 percent. Such ratio had stood at 11.2 percent in the corresponding period of previous fiscal year. Balance of Payment (BoP) Situation 6.14 By the first eight months of current fiscal year 2015/16, balance of payment remained in surplus by Rs. 158.18 billion against Rs. 35.07 billion in the corresponding period of previous fiscal year. Current account that remained in surplus by Rs.11.65 billion during the first eight months of previous fiscal year has recorded a surplus of Rs.138.55 billion in the review period.

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6.15 FOB price based trade deficit on goods that had registered growth of 14.0 percent during the review period of the previous fiscal year shrank by 12.1 percent to Rs. 382.69 in the same period of current fiscal year. Likewise, total services income declined by 8.2 percent to Rs. 86.06 billion during the review period as compared to the corresponding period of previous fiscal year as a result of high decline in tourism income by 24 percent and other service income by 11.6 percent despite the receipt of 28.3 percent growth in government income. The travel expenditure that had grown by 35.9 percent in the first eight months of previous fiscal year dropped by 3.1 percent during the same period of current fiscal year. Likewise, despite 11.6 percent growth in other service expenditures, the net service payment fell by 1.6 percent to Rs. 81.87 billion during review period due to the decline of 3.1 percent in government service expenditure and 1.6 percent in transportation expenditure. Thus, net service income remained in surplus by Rs. 4.19 billion in the review period while such figure had stood at Rs. 10.6 billion in the same period of previous fiscal year.

Table 6 (b): Remittance Inflows Description 2011/12 2012/13 2013/14 2014/15 2015/16* Remittance Inflows (Rs. in Billion) 359.6 434.6 543.3 617.3 427.4 Percentage Change 41.8 20.9 25.0 13.6 15.2 Ratio to GDP 23.5 25.6 27.7 29.1 32.1**

Share of Remittance Income in 84.0 87.3 85.6 87.9 85.1 Current Transfer Income Source: Nepal Rastra Bank *First Eight Months **Annual Estimate 6.16 Under the transfer income, grants and pensions have increased by 92.6 and 7.9 percent respectively in the review period while such grants had declined by 24.7 percent with 0.3 percent increase in the pensions during the same period of previous fiscal year. Likewise, remittance inflow has increased by 15.2 percent to Rs. 427.37 billion in the review period against its growth of 4 percent in the same period of the previous fiscal year. The net transfer income has grown by 19 percent to Rs. 500.6 billion due to the increased volume of remittance inflow. Such income had increased by 1.3 percent in the corresponding period of previous fiscal year. 6.17 On the capital account side, the net capital transfer account remained in surplus by Rs. 9.72 billion in the review period of current fiscal year against the surplus of Rs. 7.63 billion in the same period of previous fiscal year. On fiscal account front, s sum of Rs. 2.34 billion has been

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received as Foreign Direct Investment (FDI) in the review period of current fiscal year while this figure was Rs. 2.67 billion for the same period of previous year. In the review period, other investment assets totaled Rs. 22.10 billion against such total of Rs. 21.34 billion in the same period of the previous fiscal year. On the other investment liabilities side, the government credit flow totaled Rs. 24.48 billion while principle of Rs. 9.48 billion has been repaid in the review period. Foreign Exchange Reserve 6.18 Nepal’s foreign exchange reserve continued to grow reaching over Rs. 1 trillion. The total foreign exchange reserve that grew by 22.2 percent from Rs. 824.06 billion in mid-July 2015 to Rs. 1,006.68 billion by mid- March 2016. In US Dollar term, the total reserve rose by 15.2 percent reaching a total of US$ 9.38 (In Rs. 100 billions ) billion by mid- March, 2016 against such total of US$ 7.2

h c r billion during a M id M the same period 3 4 5 6 7 8 9 0 1 2 3 4 5 6 0 0 0 0 0 0 0 1 1 1 1 1 1 1 / / / / / / / / / / / / / / 2 3 4 5 6 7 8 9 0 1 2 3 4 5 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 last year. 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Table 6 (c): Total Foreign Exchange Reserve (In Rs. Billion) Percent Change Mid- March Mid-July Mid-March Description Mid-July 2014 (Mid-July to Mid 2015 2015 2016 -March) 2071 2072 Nepal Rastra Bank 572.4 593.05 703.06 870.67 3.6 23.8 Bank and Financial Institutions 93.01 112.68 121.00 136.01 21.2 12.4 Total Reserve 665.41 705.73 824.06 1006.68 6.1 22.2 Share in Total Reserve Nepal Rastra Bank 86.0 84.0 85.3 86.5

Bank and Financial Institutions 14.0 16.0 14.7 13.5

Source: Nepal Rastra Bank 6.19 Of the total foreign exchange reserves, the reserve with Nepal Rastra Bank grew by 23.8 percent reaching a total of Rs. 870.67 billion by mid- March 2016 as compared to that of mid-July, 2015. The reserve with banks and financial institutions other than NRB grew by 12.4 percent to

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Rs. 136.01 billon in the review period. The share of Indian currency to the total reserve stood at 21.2 percent. Reserve sufficiency indicators 6.20 Based on the imports of the first eight months of fiscal year 2015/16, the foreign exchange reserve with the banking sector is sufficient to cover the imports of goods for 18.8 months and that of both goods and services for 15.8 months while such reserve was able to cover imports of goods for 11.3 months and that of goods and services for 9.7 months in the same period of previous fiscal year. The current level of foreign exchange reserve appears to be sufficient to cover the exports for longer period than that of the review period of previous fiscal year due to decreased import volume during review the period of current fiscal year. As per the projection of the monetary policy of current fiscal year, foreign exchange reserve had the target to cover imports for least 8 months. 6.21 In the first eight months of the current fiscal year 2015/16, the ratios of total import and broad money supply to foreign exchange reserve stood at 131.7 percent and 49.0 percent respectively while such ratios were 93.3 percent and 43.9 percent by mid-July last year. Foreign Assets and Liabilities 6.22 Nepal Rastra Bank has published International Investment Position: IIP for the first time this year. This depicts overall foreign assets and liabilities of the country at specific point in time. By mid-July, 2015 foreign assets of Nepal was equivalent to Rs. 847.66 billion while liability remained at Rs. 487.32 billion. As a consequence, the position of net foreign asset and liabilities remained positive by 360.35 billion while such figure by mid-July had remained positive by Rs. 204.03 billion.

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Table 6 (d): Status of Foreign Asset and Liability (By Mid-July, In Rs. 10 Million) Description 2013 2014 2015 (A) Assets 55914.2 68131.5 84766.3 Direct Investment 0 0

Portfolio Investment 0 0 0 Other Investment 8535.1 8756.2 12116.4 Other Equity 249.6 250.3 547.6 Money and Reserve 2202.6 2991.3 4416.9 Loan 5.3 122.9 1012.3 Business Credit and Advance Payment 514.7 162.0 223.4 Other Account Receipt 5562.9 5229.8 5916.1 Other Official Reserve 47379.1 59375.3 72650.0 (B) Liabilities 48009.6 47728.3 48731.6 Direct Investment 5211.3 5726.4 6342.7 Portfolio Investment 0 0 0 Other Investment 42798.3 42001.9 42388.9 Other Equity 0.0 0.0 0.0 Money and Deposit 5611.5 2937.1 3987.0 Loan 34762.5 35678.7 35140.0 Business Credit and Advance Payment 1443.5 2368.6 2291.2 Other Account Payable 2.0 4.2 3.8 Special Drawing Rights 978.8 1013.4 966.8 (C) Net Foreign Asset and Liabilities 7904.6 20403.2 36034.7

Exchange rate 6.23 Nepalese Currency depreciated by 5.7 percent against US dollar between mid-July, 2015 and mid-March, 2016 while that had appreciated by 4.5 percent against US dollar during the same period of previous fiscal year. By mid-March, 2015, the exchange rate of USD 1 to Nepalese currency reached Rs. 107.23 where as exchange rate in mid-July 2015 was Rs. 101.14. Similarly, Nepalese rupee has depreciated by 6.6 percent and 13.2 percent against Euro and Japanese Yen respectively when compared with that of mid-July, 2015. However, Nepalese rupee has appreciated by 3.2 percent against pound sterling in the review period.

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* 7 8 9 0 1 2 3 4 5 6 0 0 0 1 1 1 1 1 1 1 / / / / / / / / / / 6 7 8 9 0 1 2 3 4 5 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2

*Mid -March

Table 6 (e) : Foreign Exchange Month End Buying Rate (In NPR) Appreciation (+) Depreciation (-) Foreign Mid- Mid- Mid- (in Percent) Mid-July Mid-July Mid-July Currency March March March (Mid-July- 2013 2014 2015 2014 2015 2016 Mid-March) 2015 2016

1 US Dollar 95.00 97.58 95.90 100.45 101.14 107.23 -4.5 -5.7

1 Pound Sterling 143.56 162.81 164.61 148.91 158.01 153.16 10.5 3.2

1 Euro 124.08 136.15 130.56 106.35 111.48 119.41 22.8 -6.6 10 Japanese Yen 9.57 9.51 9.44 8.27 8.18 9.42 14.1 -13.2

Source: Nepal Rastra Bank Problems and Challenges 6.24 Since Nepal’s international trade is extremely concentrated on specific country, goods and border points on account of country, goods and customs entry points, the imports and exports are more influenced by non-economic incidents and recurrences which may further jeopardize the country’s entire supply situation and industrial management. Hence, diversifying it on the basis of country, goods and customs entry points remains a challenge. For this, it is imperative to develop trade infrastructures and make economic and diplomatic efforts with India, Bangladesh and China for trade facilitation.

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6.25 Nepal’s export trade has been weakening lately. Though the trade policy has embraced some trade facilitation strategies, export trade is less likely to sustain the stability in the external sector due to inadequate trade infrastructures, lack of industrial environment and failure to enhance domestic production capacity. Hence, there lies a challenge to increase its share in the earnings of foreign currency on a regular basis by giving high priority not only to export trade but also to the services sector. 6.26 The number of outbound Nepalese workers for foreign employment that directly affects remittance inflow has dropped significantly this year. In a situation where International Monetary Fund (IMF) has made its projection that major foreign employment destination countries including Saudi Arabia, United Arab Emirates, and Malaysia among others are likely to achieve low economic growth and they have already entered into the contract with other countries for receiving foreign workers. There is a possibility of impact on the demand of labor for foreign employment thereby impacting the remittance inflow, which is likely to exert pressure for maintaining remittance-based external sector’s stability. 6.27 Exploring alternative energy sources so as to replace the import of petroleum products that shares more than 20 percent to the total import to Nepal and generating electricity through the timely completion of ongoing hydroelectricity projects together with building electrical transportation infrastructures remain a challenge. Likewise, increasing production and productivity of traditional agriculture sector to substitute imports of agro-products have also remained a challenge. 6.28 Foreign exchange reserve has continued to grow together with growing surplus in balance of payment. Such reserve has enhanced the capacity to cover the imports of goods and services on the one hand while foreign exchange reserve is getting exported to other countries through the banking sector on the other. There is an opportunity for capital formation because the volume of foreign exchange reserve has continued to grow which ultimately has increased the spending capacity of foreign exchange coupled with fiscal space available to the government.

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7. Poverty Alleviation and Employment Poverty Alleviation 7.1 Poverty alleviation is also one of the major liabilities of the government. Periodic plans based poverty alleviation related activities that are in operation have been founded on policies and strategies targeted at reduction of human poverty and exclusionary conditions by ensuring good governance. As a consequence, by the end of fiscal year 2012/13, population living below poverty line based on consumption is estimated to have reduced to 23.8 percent. Though the population living below poverty line is estimated to have dropped from that fiscal year to this period, the devastating earthquake that struck the country a year ago and disruption on supply as a result of boarder obstruction are likely to add the number of poor to the country’s poor population. Poverty alleviation targeted activities are being carried out through various ministries, agencies, development partners, international non-governmental organization (INGOs), local communities since poverty has been inter- related issue.. 7.2 Draft prepared on National Poverty Alleviation Policy in fiscal year 2014/15 has been revised as constitutional provision and goal of sustainable development shall be issued within fiscal year 2015/16. 7.3 Significant amount of investment has been increased on social sector. Various employment and income generating activities are being conducted focusing on the areas and target group of people living below poverty line. Micro Enterprises Development Program for Poverty Alleviation that was initiated with a view to increase level of income of poor families has been extended to other districts. 7.4 Western Upland Poverty Alleviation Project is in operation in eight hilly western districts including Rukum, Rolpa, Humla, Kalikot, Dailekh, Jajarkot, Bajhang and Bajura with the objective of conducting poor targeted programs. Investment plans (to be prepared in the involvement of poor and implemented on their own) are being implemented in 135 VDCs of those 8 districts with a target to raise the living standards of Dalits and ultra poor. The project has covered 71.984 households from among 256.190 households and 431.870 people from among the total population of 1,384,024 of those 8 districts considered backwarded from the perspective of human development index.

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Table 7 (a) : National Household and Population Survey

VDC S. No. No. of No. Population Population District District WUPAP WUPAP Benefitted Benefitted Household Household Household Population Population Population WUPAP WUPAP Benefited % Benefited No of NoHousehold Municipalities Municipalities benefited from benefited from Total Benefited Total Male Female Benefitted VDC Total No. ofTotal VDC No. from WUPAP % from WUPAP Implemented No. of No. Implemented 1 Rolpa 43,757 224,506 103,100 121,406 16.22 51.00 - 20.00 39.22 6,630 15 39,673

2 Rukum 41,856 208,567 99,159 109,408 15.07 43.00 - 20.00 46.51 9,440 23 51,280

3 Daiekh 48,919 261,770 126,990 134,780 18.91 55.00 1.0 20.00 36.36 10,057 21 58,989 4 Jajarkot 30,472 171,304 85,537 85,767 12.38 30.00 - 15.00 50.00 7,146 23 41,819

5 Kalikot 23,013 136,948 68,833 68,115 9.89 30.00 - 15.00 50.00 8,161 35 47,686

6 Humla 9,479 50,858 25,833 25,025 3.67 27.00 - 22.00 81.48 6,454 68 39,191 7 Bajura 24,908 134,912 65,806 69,106 9.75 27.00 - 18.00 66.67 11,721 47 71,720

8 Bajhang 33,786 195,159 92,794 102,365 14.10 47.00 - 23.00 48.94 12,375 37 81,512

Total 256,190 1,384,024 668,052 715,972 100.0 310.00 1.00 153.0 49.35 71,984 28 431,870 source: Ministry of Cooperative & Poverty Alleviation

7.5 Since, identification of poor people and households for the effective implementation of poverty alleviation programs is imperative, in the preliminary phase, 356,418 families poor families from among 1,240,350 household families of 25 districts have been classified into three genres naming ultra poor, poor and in the verge of poverty on the basis of poverty measuring indicators. These programs shall be extended slowly to the rest 50 districts.

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Progress of Millennium Development Goals 7.6 Nepal has been incorporating millennium development goals which were committed to achieve by 2015 in its plans and programs of since its tenth periodic plan and there has been remarkable progress by the end of this period. The number of people living below poverty line has dropped to 21.6 percent in 2016 AD from 42 percent of 1995 AD. However, poverty situation is still miserable in dalit and other backwarded communities of far-western and Karnali regions and in rural communities as compared to that of urban areas. 7.7 Net enrollment rate in primary school level has reached 96.6 percent while the literacy rate of 15- 24 age group reached 88.5 percent with retention rate of 86.8 percent at primary schools whereas gender equity index has attained same level. Notably increased investment in the education sector; carry out the sector-wise subject-based program at school level education with the involvement of development partners; scholarships; day-snack program; and separate toilets for girl students seemed to be the reasons for meeting the enrollment target. However, there still remains a challenge to retain the progress achieved due to the absence of easy access to school for differently abled children, persistent high dropout rate, inferior quality of the public schools and earthquake damaged school buildings and infrastructures. Targets related to gender equality have been achieved due to gender equity rate reaching 1.09 at primary level schools and 1.0 percent at secondary level, reduced gap of literacy rate between women and men of 15-24 age group, presence of women in administrative sector almost increased by two folds when compared to that of last ten years and about one-third presence of women in legislative parliament. 7.8 There has been remarkable progress in child mortality rate, infant mortality rate and anti- measles vaccines. Maternal/infant mortality rate that was 108 per 1000 live births in 1990 dropped to 33 in 2014. Likewise, child mortality rate in 1000 live births in 1990 that had stood at 162 fell significantly to 38 in 2014. Anti-measles vaccine has reached 92 percent. Maternal mortality rate which was 850 per 100 thousand in 1990 has decreased to 258 in 2013. Nepal has been awarded by UN for its notable progress in reducing maternal mortality rate. Policies arrangements of free maternity service, travel expense allowance, motivation to the health workers delivering services in remote districts and trainings for local health workers, midwives, legalization of abortion have vital role to achieve progress in maternal health. Maternal mortality 109

rate has dropped as a result of decreased net reproductive rate in contrast to increased use of family planning contraception together with increased number of women giving birth in presence of trained health workers and that of pregnant women to take medical advices and services. 7.9 The rate of HIV infection in men and women of 15-49 age bracket came down to 0.03 percent in 2013/14 from 0.29 percent of 2000 AD, while such rate in the age group of 15-24 has dropped by 80 percent. Mortality rate caused by malaria has reached to zero percent which is in the state of eradication. The number of families using firewood as household fuel has decreased to 59 percent in 2015 from 68 percent of 2000 AD. During this period, LP gas using families have reached 28.7 percent from 7.7 percent. Likewise, forest covered area has reached 44.7 percent while the protected area covers 23.5 percent of the Nepal’s total land mass. Similarly, 83.6 percent households have access to the improved drinking water while 81 percent of the households have access to sanitation facility. 7.10 The 13th periodic plan had aimed at reducing the number of people living below poverty line to 18 percent by 2022 AD by improving the lifestyle of general public and envisaged to graduate Nepal from the status of least developed country (LDC) to developing country by this time. United Nations has set three indicators including Gross National Income (GNI) per capita, Human Asset Index (HAI) and Economic Vulnerability Index (EVI.) and their criteria. Required and criteria for LDCs to graduate to developing countries. LDCs are required to meet at least 2 among those three indicators for them register in the least of developing countries. Though Nepal lags behind from the perspective GNI per capita among those three indicators to graduate it to developing country, situation of HAI and EVI appears to have remained positive.

Table 7 (b) : Graduation Threshold and Nepal Position in 2016 Indicators Threshold Status of Nepal Difference 659 (World Bank, Gross National Income (GNI) per capita (US$) 1242 Atlas Method) 583 752 (CBS) (Human Assets Index – HAI >66 68.7 Achieved Economic Vulnerability Index-EVI <32 26.8 Achieved Source: UN-DESA, CDP

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Sustainable Development Goals 7.11 The sustainable development goals United Nations has brought into operation from this year have thrown a challenging opportunity for socio- economic development. These goals supported by Governments throughout the world with their commitments have set 17 objectives aimed at reducing all kinds of poverty and hunger by 2030 A.D. together with building capacity to combat disaster. A national report has been prepared by setting necessary indicators for Nepal to achieve those goals and guidelines prepared based on country’s inland position contextualizing with sustainable development goals from national perspective for their implementation. Such goals have already been internalized in the concept note of 14th periodic plan. 7.12 Rapid urbanization, perpetual growth in remittance income from foreign employment, increased wage rate in agriculture, increased employment and wage rate in non-agriculture sector, the increased number of economically active age group in total population have contributed in poverty reduction. However, due to impact of devastating earthquake of April 25 in 2015, the current number of poor population is likely to increase between 2.5 and 3.5 percentage points. 7.13 The ma jor challenge is the diverse definition and understanding of the poverty alleviation sector. As per Nepal Living Standards Survey 2011, based on consumption, a poor was defined whose per capita calorie consumption is less than 2,220 per day and annual disposable income of Rs. 19,261 while development partners of Nepal have defined poverty as a person or individual with income of less than 1.25 US dollar a day. Likewise, United Nations Development Program has been measuring poverty on the basis of multidimensional poverty indicators where 10 sub-indicators including 2 each for education and health and 6 for living standard have been set. Poverty has also been gauzed on the basis of ability of an individual to feed him/herself for a period of 3, 6 and 9 months. Likewise, it is measured on the basis of opportunity and accessibility that individual holds to transfer his/her property and skills. Such bases employed for measuring poverty and programs being implemented on the same bases have created problems in coordination, monitoring and measuring poverty. It is necessary to maintain uniformity on measuring poverty and develop coordination among the agencies while executing poverty alleviation program.

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Poverty Alleviation Fund 7.14 Community demand based programs targeting people living below absolute poverty with the involvement of social inclusion; transparency; demand-led and direct community based programs are being implemented in active participation of ultra poor and backward groups. 7.15 As compared to that of FY 2006/7, poverty level has dropped to 33.1 percent from 50.7 percent among the community based program run households. From this, poverty level is estimated to have dropped by 2.49 percent annually on average while average per capita consumption has grown up by 124.2 percent. 7.16 A total of Rs. 1,372,361,970 was mobilized to implement 3,063 income oriented, community infrastructure development and new projects through community organizations (COs) in FY2014/15. By the end of first eight months of fiscal year 2015/16, 2,048 such projects have been implemented in the targeted communities. Youth and Small Entrepreneurs Self-Employment Fund 7.17 Self-Employment in tandem with vocational training programs are being run with the objective of achieving rapid development of the country by making the maximum use of productive labor through the development of entrepreneurship while bringing changes in the traditional production system. For this, the Fund aimed at availing collateral-free periodic concessional loans to educated, and uneducated unemployed youths through banks and financial institutions and cooperatives. Easy collateral-free periodic wholesale loan at the rate of up to Rs. 200,000 per person has been provided through the Fund. The target group of this group is mainly the unemployed youths with age bracket from 18-50 years. 7.18 There has been provision to establish coordination with banks, financial institutions and cooperatives to lend credit for skill oriented self- employment programs to those skilled unemployed youths to run small and cottage businesses like one village one production, commercial farming; poultry farming; agriculture and wildlife and mines and precious stone, factories; rickshaw and push-cart and plumbing service operation, repair and maintenance of electronic goods and provide banks, financial institutions and cooperates wholesale credits and such loan shall

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be disbursed to target groups against the personal and group guarantee and projects as collateral. 7.19 Rs. 3,458,700,000 has been invested through 28 banks and 652 cooperative institutions upon the conclusion of primary lending agreements by mid-April of fiscal year 2015/16. Of this investment, Rs.779.9 million has been recovered while Rs. 1.850.03 million is still on investment. More than 60 percent of total investment is on production sector. A total of 28,624 people have been employed with additional 544 individuals by the first 8 months of current fiscal year. 7.20 In the first eight months of the current fiscal year, self-employment loan recipients having good credibility records for paying principles together with interest regularly without missing the deadline are distributed with sum of Rs. 13,582,028 as interest grants. Employment 7.21 More than 512 thousand active youths inter into the Nepalese labor market each year. There is a large gap between demand and supply of labor. The growth of skilled manpower and creation of employment is not satisfactory. More than 1,300 youths leave the country every day. Around 3.48 million foreign employees who left country from formal and informal means are categorized as 1.5 percent skilled, 23 percent semi-skilled and 75.5 percent unskilled.

7.22 Earthquake and border obstructions caused labor to lose their jobs which is why the employment growth rate is estimated to remain below 2.9 percent. Foreign Employment 7.23 Lack of employment opportunities in Nepalese labor market, low payment, price hike, Nepalese culture that does not respect every jobs, increased expectations of youths due to the development in communication and technology, and high affection of youths towards foreign employment have contributed to exodus of Nepalese youths to foreign employment. Earthquake and subsequent border obstruction that rendered negative impact on the agricultural and industrial sectors leaving several youths unemployed where foreign employment became an alternate choice for them.

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7.24 Officially 110 countries are opened for foreign employment. To prepare expert and skilled manpower for in-house employment/ self employment along with entrepreneurship and foreign employment, governmental and non-governmental sectors are providing youth and job oriented technical and vocational trainings targeting youth labor force. Twenty one percent of such labor force is leaving for foreign employment after the receipt of training. Table 7(c): Status of Recipient of Skill Development Training

Training Received Fiscal Year Female Male Total 2005/06 3432 3633 7065 2006/07 7457 6596 14053 2007/08 9716 6432 16148 2008/09 12702 9039 21741 2009/10 13305 9257 22562 2010/11 12530 9600 22130 2011/12 8045 8507 16552 2012/13 7586 7521 15107 2013/14 8278 9050 17328 2014/15 7750 8129 15879 2015/16* 1286 1854 3140

Total 92087 79618 171705 Source: Entrepreneurship and Skill Development Training Centre * First eight months

7.25 Efforts are being made to make foreign employment well organized, secured and dignified. Work permits were provided to 331 non-resident Nepalese workers working in Nepal after having their regular monitoring, while 252 of them had their permits renewed by mid-March of the current

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fiscal year 2015/16. Likewise, Foreign Employment Management Information System has been developed for managing the records of outbound Nepalese workers for foreign employment and for its implementation, tasks are underway to install system link with Nepal Rastra Bank and other commercial banks. 7.26 Bilateral labor agreements have been signed with major labor destination countries namely Qatar, United Arab Emirates, Bahrain, Japan, Israel and South Korea while reaching an agreement with Saudi-Arabia, Malaysia, Kuwait, Jordan, and Lebanon is underway. Safer domestic services are in operation in Saudi Arabia, Qatar, Kuwait, and UAE. Decision on Free Visa Free Ticket privilege for foreign employment has been executed. For Oman, there has been mandatory provision for the Oman bound Nepali workers and the license holder to attend in person and sign the contract before the Foreign Employment Department. A separate agreement is in practice between the destination country and Nepal government regarding the safety of domestic women workers in foreign countries. The orientation training has become compulsory before leaving for foreign employment. While going to gulf countries, visa and contract paper needs to be verified from the Nepalese mission. Table 7 (d): Country-wise detail of Foreign Employment (For first eight months of fiscal year 2015/16) (In number) S. No. Country Male Female Total 1 Qatar 85460 1125 86585 2 Malaysia 41651 1325 42976 3 Saudi Arab 92091 1255 93346 4 UAE 29091 5884 34975 5 Kuwait 6210 539 6749 6 Bahrain 1806 228 2034 7 Oman 1607 667 2274 8 South Korea 2019 100 2119 9 Lebanon 34 92 126 10 Israel 55 70 125 11 Afghanistan 921 1 922 12 Japan 2799 93 2892 13 Others 2747 2365 5112 Total 266491 13744 280235 Source: Department of Foreign Employment 7.27 From the fiscal year 2006/7 to fiscal year 2014/15 total number of 3,201,268 Nepalese left the country for foreign employment among them

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3,065,462 are men and remaining 135,806 are women. The total numbers of workers left for foreign country in the first eight months of fiscal year 2015/16 is 280,235, among them 13,744 are women and 266,491 are men.

7.28 Families of 549 dead workers who died during foreign employment were provided with the economic support while more 97 sick and mutilated workers got the medical expense by mid-March of fiscal year 2015/16.

Social Security Fund

7.29 Social security fund is established for the economic security of retired life and for the people who are socially and economically at risk. In the first eight months of the fiscal year 2015/16 around 2464 organized institutions have entered in the coverage of social security tax among hem 82 percent are the government sector and remaining 18 percent are the non-governmental sector. Working Manual has been prepared for social security programs like, maternity security, accident insurance, medical insurance and sickness insurance. By the end of fiscal year 2014/15 total Rs.8,088,200,000 social security revenue was collected and additional Rs. 1,592,200,000tax revenue was generated by the end of first eight months of fiscal year 2015/16which figured total social security fund to Rs. 9,680,400,000.

Table 7 (e) : Amount Collected in Social Security Fund Fiscal Year Amount Collected (In Rs. 10 million) 2009/10 54 2010/11 74 2011/12 155 2012/13 148 2013/14 225.66 2014/15 152.16 Total 808.82 2015/16* 159.22 Source: Social Security Fund *For First Eight Months

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Targeted Programs for Poverty Alleviation and Employment Karnali Employment Program 7.30 Karnali Employment Program is implemented in 1 municipality and 129 VDCs of five districts in Karnali zone and 5 VDCs of Bajura district of Seti zone. Among 69,651 households of those districts, members of 41,229 households are employed. Through Karnali Employment Program, 2,070 various projects (motor roads, school building, maintenance of micro-hydro projects, trails, mule tracks, fruits and herbal farming etc.) have been completed in past nine years period which created employment equivalent to 2,914,286 working days. In past, 15 working days were guaranteed while it has been increased to 20 working days now. Bisheshwor with Poor Program 7.31 Bisshewor with Poor Program is being implemented in 386 working areas of all 75 districts, through the social mobilization since fiscal year 1999/2000. This program has incorporated 80 thousand households with 7 thousand organized groups. The working areas of this program has been extended to other 97 VDCs of 39 districts following the revision of Bisheshwor with Poor Program Implementation Guidelines, 2009, the program has been expanded to more 97 VDCs in the first eight months of current fiscal year. Rural Community Infrastructure Development Program 7.32 This program is in operation in 21 districts which aims at developing sustainable and productive infrastructures to improve food security status of poor families thereby enhancing their self-reliance capacity. Rural road constructions together with livelihood and income generating activities are being carried out through this program. In the fiscal year 2014/15, 81 kilometers of rural road was constructed while total number of 188 livelihood and income generating activities were conducted. In the first 8 months of fiscal year 2015/16, a total length of 16.91 kilometers rural road has been constructed while 18 income generation raising activities are being carried out. Linking Local Initiatives with Local Skills Program 7.33 ‘With knowledge and skill’ program is in operation in Achham, Dailekh, Jajarkot and Kalikot districts since 1997. In the first eight months of current fiscal year facilitation work for the formulation of a five-year periodic plan has been carried out in 46 VDCs where capacity enhancement activities were also performed. .Similarly, 100 farmers’

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groups have been facilitated to create business environment for making them involved in value chain network. Likewise, 3000 families have been involved in income generating activities thereby increasing their access to markets. Moreover, 45 Farmers Enterprise schools are established where 1000 small farmers have been running value chain based business enterprises. Border Area Development Program 7.34 This concept was developed to focus development activities in eastern and mid-Terai region Parsa which is lagging behind from the perspective of HDI and to conduct intense development activities in border areas through proportional approach. Through this program, demand base activities such as development of physical and social infrastructures, income generation enhancement, and vocational program, empowerment and awareness raising among others shall be carried out. This program came under implementation only since 21st January, 2016 due to the Terai protest. Nepal Food Security Response Program 7.35 Through this program, activities including grant assistance in the transport of fertilizers and seeds and researches on agriculture, allowances for elderly, incapable citizens and widows among others were carried out under Food for Work Program in 23 remote districts in FY 2014/15. In the first 8 months of fiscal year 2015/16, programs including building of animal sheds, relief operation and community seed storage are underway in Ramechap, Solukhumbu and Khotang districts. Problems and Challenges 7.36 It is a challenging task to develop proper mechanism to utilize remittance earned through foreign employment in productive sector, increase investment opportunities for remittance, ensure banking channels for receipt of remittance, create safer environment for outbound foreign employees from economic perspective. 7.37 Inability to utilize economically active population to the maximum extent, lack of access of all concerned people to vocational education and employment oriented trainings, weaker business related health and security situations, unstable and frail industrial relation have remained problems in domestic employment.. 7.38 Failure to prepare skilled labor to meet the international labor markets’ demand, efforts for curbing fraud being ineffective, social evils and family disintegration emanated through stress and family confrontation are glaring problems in foreign employment.

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7.39 Problems such as social security related programs being conducted through both government and non-government agencies, failure to prepare investment plan for it to get utilized in coordinated manner despite persistent growth in investment fund still prevail. T7.40 The daunting challenges in the sector of poverty alleviation are: to operate all poverty alleviation programs in integrated and coordinated manners, intensify poor targeted programs in poor settlements are areas by identifying actual poor and measuring poverty, prevent splitting out of resources from target groups implement plans, policies and annual budgets for making people living below poverty line self employed and self reliant by maintain harmony among them. 7.41 Making the work permit procedures easy and simple, fixing the minimum remuneration in a scientific and realistic manner, , making the government procedures fully mechanized and utilizing remittance earned through foreign employment as country’s major source of economic and social development for making the foreign employment competent, dignified and secured have been challenging tasks.

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8. Agriculture, Forestry and Land Reform Agriculture 8.1 Agriculture sector has been significantly contributing to the Nepalese economy. Agriculture occupies around one third of GDP while two third of the population is dependent on agriculture as a profession. Agriculture sector had contributed 32.12 percent of GDP in fiscal year 2014/15, which is estimated to drop to 31.69 percent in fiscal year 2015/16. In current fiscal year 2015/16, annual growth rate of agriculture at base prices is expected to remain at 1.14 percent. As such, growth rate of agriculture in the past years has not been satisfactory. 8.2 It is necessary to make agriculture sector competent to take comparative advantage through its commercialization and diversification. Agriculture development programs are concentrated on bringing positive changes in living standard of majority of farmers’ community through enhanced production and productivity of agriculture sector. It calls for ensuring Nepal’s food security by increasing production and productivity of paddy, maize, wheat and potato through the use of scientific technology. Similarly, production of vegetable crops together with that of seasonal and off-seasonal vegetables is has increased. Increased use of organic pesticides to make vegetables healthy and free from harmful pesticides is very much necessary. Status of food grains production 8.3 The production of food grains (paddy, wheat, maize, millet, barley, buckwheat) in Nepal is estimated to drop by 6.2 percent to 869.2 thousand MT in current fiscal year 2015/16 which is 574 thousand MT less than the production of 926.6 thousand metric ton of the previous fiscal year. 8.4 Preliminary estimate shows that the production of paddy will decline by 10.2 percent in fiscal year 2015/16 totaling 429.9 thousand MT. This production is 49.0 MT less than the production of 478.8 MT of previous fiscal year. The low production volume of agriculture is attributable to weak and late onset of monsoon, untilled lands for failing to cultivate paddy, disruption in the supply of essential goods including chemical fertilizers due to border obstruction that also led to fuel shortage consequently affecting deep irrigation. Area under paddy cultivation has decreased by 4.4 percent in current fiscal year.

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8.5 Maize is the second major food grain after rice by its production volume. In current fiscal year 2015/16, maize production is estimated at 223.1 thousand MT which is 4 percent higher of 86 thousand MT than the production 214.5 thousand MT of previous fiscal year. Area under this crop has increased by 1 percent in current fiscal year. Despite decrease in maize production volume due to stem rot disease in some areas as a result of high rain fall, total production volume of maize has is increased owing to expanded area under off-season and spring season maize. 8.6 The production of wheat, which comes in third position in terms of production quantity, is estimated to fall by 8.3 percent and remain at 181.1 thousand MT in current fiscal year 2015/16. Such production had stood at around 197.5 thousand MT in previous fiscal year. The decline in production is attributable to reduced area coverage of wheat crop in eastern mountain and hilly districts. 8.7 Millet production is estimated to drop by 2 percent in current fiscal year 2015/16 and stand at 302.0 thousand MT from 308.0 thousand MT of previous fiscal year. The production of millet did not receive significant growth due to the less practice of using improved seeds and fertilizers technology. 8.8 Buckwheat, the main food crop of mountain region has been included in the national statistics since past few years. The production and cultivated area of this crop, which is cultivated in about 50 districts of the country, registered growth of 7.1 and 0.2 percents respectively in this fiscal year as compared to the previous fiscal year 2014/15 Productivity of this crop has improved by 6.9 percent as well. 8.9 In current fiscal year 2015/16, though area under the barley cultivation has increased by 0.4 percent, production of this crop is estimated drop by 5.4percent. Inadequacy of winter rain and snowfall are attributable to such decline. Production of this crop totals only to 35,000 MT. 8.10 Production of total pulses (lentils, black grams, pigeon peas, gram, soybeans and others) is estimated to drop to 352 thousand MT in current fiscal year 2015/16 which is 0.3 percent less than that of previous fiscal year. The area under this crop is estimated to grow by 0.7 percent reaching 308thousand Ha. Black gram, pigeon peas etc. production has gained little growth. Similarly, production of soybeans, beans, peas, pulses has increased than that of previous year.

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Table 8 (a): Area of Food Crops and their Production Details (Area: - Hectare, Production: MT, Productivity: KG/Hectare)

Food Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 Crops Area Production Productivity Area Production Productivity Area Production Productivity

1362908 4299078 3154 1425346 4788612 3360 1486951 5047047 3394 Rice (-4.4) (-10.2) (-6.1) (-4.1) (-5.1) (-1) (4.7) (12) (7)

891583 2231517 2503 882395 2145291 2431 928761 2283222 2458 Maize (1.0) (4.0) (2.9) (-5) (-6) (-1.1) (6.3) (9.8) (3.4)

753470 1811889 2400 762373 1975625 2591 754474 1883147 2496 Wheat (-1.2) (-8.3) (-7.4) (1.0) (4.9) (3.8) (-0.7) (0.0) (0.8)

266799 302397 1133 268050 308488 1151 271183 304105 1121 Millet (-0.5) (-2.0) (-1.5) (-1.2) (-1.2) (2.6) (-1.2) (-0.5) (0.7)

28173 35320 1254 28053 37354 1332 28173 34824 1236 Barley (0.4) (-5.4) (-5.9) (-0.4) (7.3) (7.8) (-2.8) (-5.8) (-3.1)

11640 1073 Buckw 10842 10819 10870 1005 10510 10335 983 (7.1) (6.9) heat (0.2) (2.9) (5.2) (2.2) (-1.6) (2.8) (4.4)

326400 353500 1083 328738 352406 1072 328738 352473 1070 Pulse (-0.7) (0.3) (1.0) (0.7) (-0.3) (-1) (-0.7) (0.3) (1.0)

Source: Ministry of Agriculture Development Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year Cash Crop Production Status 8.11 Potato production is estimated to reach at 287.5 thousand MT with increase of 1.2 percent in current fiscal year 2015/16. Likewise, crop area is estimated to increase by 2.9 percent and reach 195 thousand hectare while productivity is estimated to increase to 14,689 kg/ha. Market price of potato has continued to rise in recent years due to rise in cost of production. As some of the Himalayan districts use potatoes as staple food, the production is not able to suffice the demand.

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Table 8 (b): The Preliminary Status of Cash Crop Production (Area: - Hectare, Production: MT, Productivity: KG/Hectare)

Food Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 Crops Area Production Productivity Area Production Productivity Area Production Productivity Potato 195725 2875088 14689.4 190228 2842000 14940 205725 2817512 13696 (2.9) (1.2) (-1.7) (-7.5) (0.9) (9.1) (9.4) (2.3) (-0.1) Vegetables 250150 3700969 14795 245368 3629000 14790 254932 3421035 13419 (1.9) (2.0) (0.0) (-3.8) (6.1) (10.2) (3.5) (3.6) (0.1)

Fruits 9270 119114 1096774 110802 991978 10622 110086 965044 8766 (3.5) (7.5) (10.6) (1.5) (22.9) (21.2) (8.5) (2.8) (-5.2)

Source: Ministry of Agriculture Development Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year 8.12 Fruit production is projected to reach 1,0.96 thousand MT with growth of 10.6 percent in current fiscal year 2015/16. The fruit cultivated area is estimated to rise by 7.5 percent and reach 119,114 hectare. Total production of fruit production is projected to grow as a result of increased commercial farming of banana with added production of apple and mango despite decline in area under orange cultivation. 8.13 Vegetable crop production is estimated to rise to 3.7 million MT in current fiscal year 2015/16 with the increase of 2 percent from 3.62 million MT production of the previous fiscal year. Area coverage under vegetable crop is estimated to reach 250 thousand hectare. Due to increased practice of growing off-season vegetables, living standard of farmers engaged in vegetable farming is believed to have significantly improved. 8.14 Production of oilseeds (mustard, sunflower etc. ) is estimated to rise by 2.3 percent yielding 199 thousand MT in current fiscal year 2015/16. Cultivation area under oilseed plant is estimated to rise by 2 percent reaching 221,615 ha. in current fiscal year 2015/16. Though the production of sunflower is on the rise, production of mustard fell and as a result oil seed production has not been able to register significant growth. 8.15 As per the estimates, tobacco crop production will remain at 216.9 MT with decline of 2.6 percent in current fiscal year 2015/16. Though the cultivation area has decreased by 2.8 percent, productivity is estimated to rise by 0.3 percent in current fiscal year.

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Table 8 (c): Preliminary Status of Industrial Crop Production (Area: - Hectare, Production: MT, Productivity: KG/Hectare) Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 Industrial Crops Area Production Productivity Area Production Productivity Area Production Productivity Industrial 221615 199010.3 898 217225 194536 896 216400 18400 850 Crops (2.0) (2.3) (0.3) (0.4) (5.7) (5.3) (0.1) (1.1) (1.1) 1675 2169.1 1295 1724 2227 1292 1773 2200 1257 Oilseeds (-2.8) (-2.6) (0.3) (-2.8) (4.4) (1.7) (-2.8) (-9.5) (-6.9) 67399.2 3148764 46718.1 66600 3063000 45991 65000 3020000 46461 Tobacco (1.2) (2.8) (1.6) (1.4) (2.2) (-0.7) (0.8) (3.1) (2.3) 11450 16668.9 1455.8 11400 16530 1450 11350 15750 1388 Sugarcane (0.4) (0.8) (0.4) (0.4) (11.0) (10.5) (0.4) (1.6) (1.2) 20165 23187 1149.9 19350 22500 1163 19100 19610 1027 Jute (4.2) (3.1) (-1.1) (0.4) (5.2) (4.7) (0.2) (2) (1.8) 2031 464 228.5 1925 450 234 1765 375 212 Tea (5.5) (3.1) (-2.3) (0.7) (4.7) (3.9) (0.9) (2.5) (1.6) 145 144 993.1 225 202 898 175 155 886 Cotton (-35.6) (-28.7) (10.6) (12.5) (17.4) (4.4) (00) (3.3) (3.3) Others Honey 232000 3500 15 225000 213200 2050 3000 13 (Beehive) (3.1) (16.7) (12.5) घार 3f/ (26) 512000 3200 6.3 425000 1900 Mushroom 2700 6.4 (20.5) (18.5) (-1.6) बोतल (15) Silk 1673 52 25 45 1600 40 25 Cocoon (4.6) (30.0) (4.4) (18.4) Flower Transaction worth more than 1.06 Transaction worth more than 1 Transaction worth more than 1 Farming billion billion billion Source: Ministry of Agriculture Development Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year 8.16 An area under sugarcane production which is a major industrial crop has expanded by 1.2 percent and reached 67.4 thousand hectare in current fiscal year 2015/16. Its production is also estimated to reach 314. 8 thousand metric ton with the growth rate of 2.8 percent in current fiscal year. Growing price together with increased consumption level of sugar has attracted farmers towards sugarcane cultivation. 8.17 The production of jute crop is estimated to grow by 0.8 percent while cultivation area and productivity are estimated to expand equally by 0.4 percent in current fiscal year 2015/16. Through its production level declined as a result inadequate availability of its seeds, there has been gradual improvement in its production in recent days. 8.18 Among industrial crops like tea, coffee and cotton, coffee production is estimated to grow by 3.1 percent in current fiscal year 2015/16. In comparison to previous years, its cultivation area and production have slightly increased, but productivity has dropped by 2.3 percent. Though farmers are attracted towards coffee farming for being exported to overseas, its production is estimated to remain merely at round 2

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thousand MT. Tea production is likely to rise by 3.1 percent in current fiscal year. Cotton, which is being cultivated Dang, Banke and Bardia, is estimated to yield 144 MT from its cultivated area of 145 ha in current fiscal year. Table 8 (d): Preliminary Status of Spices Production (Area: - Hectare, Production: MT, Productivity: KG/Hectare) Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 Spices Producti Productivit Are Producti Producti Are Producti Productiv Area on y a on vity a on ity 2425 2422 23855 263140 11030.8 285550 11775 276150 11399 Ginger 0 6 (-1.6) (-7.8) (-6.3) (3.4) (3.3) (14.3) (11.9) (0.1) (2.1) 6569 7205 45390 6299.8 6610 47500 7186 45035 6856 Garlic (- (9.) (-4.4) (-12.3) (0.6) (5.5) (4.8) (-11.4) (-1.6) 9.9) 7310 Turmer 7915 72425 9150.3 7325 69790 9528 67631 9252 (- ic (8.1) (3.8) (-4.0) (0.2) (0.1) (3.2) (-14.8) (-6.2) 9.2) 8033 7695 40400 5250.2 8050 36810 4573 35668 4440 Chilly (- (-4.4) (9.8) (14.8) (0.2) (3.2) (3.0) (7.5) (10.1) 2.4) 1150 1165 Carda 12805 5540 432.6 5350 459 1 5225 454 0 mom (9.9) (3.6) (-5.8) (2.4) (1.1) (13. (-9.8) (-7.6) (1.3) 2) Source: Ministry of Agriculture Development Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year 8.19 The cultivation area and production level of spices are likely to fluctuate in current fiscal year 2015/16. Of the spices, production of garlic and ginger is estimated to fall by 4.4 percent and 7.8 percent respectively while that of turmeric and cardamom is likely to register growth by 3.8 percent and 3.6 percent respectively. Similarly, chilly is estimated to receive its production growth of 9.8 percent this year. Number of livestock/fowl 8.20 Number of total cattle (cow/ox) in Nepal is estimated to increase by 0.003 percent to 7,241,960 in current fiscal year 2015/16 in comparison to the previous fiscal year. Of the total cattle (cow/ox), the number of lactating cow stands at 1,025,953 while that of improved breed cows is on the rise. Similarly, the number of buffalos is expected to grow by the number close to that of previous fiscal year and reach around 5,168,047. As per the estimate, the number of lactating buffaloes will remain around 1,343,819 among the total buffaloes. In current fiscal year, the number of sheep is expected to remain at 789 thousand while that of goats is likely to reach 10,256,694. Likewise, the number of sheep is projected to drop

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by 0.001 percent whereas that of goat is expected to grow by 0.05 percent and pig by 0.5 percent in current fiscal year as compared to that of last year. 8.21 The number of fowl is expected to reach 52.2 million with 4 percent rise in current fiscal year. Of this, the number of duck is likely to rise by 0.002 to 390,294. In this estimated number, egg laying chicken’s is likely to stand at 841.3 thousand while egg laying ducks among the total number of ducks are estimated at 180 thousand. The number of yak and rabbit is expected to reach 71,690 and 26,130 respectively. Likewise, the number of horses, mules and asses estimated at 52,796. The number of yaks and horses is estimated to have grown when compared to that of previous fiscal year. Table 8 (e) : Number of Animals/Fowls (In Number) Fiscal Year Types of Animals/Fowls 2015/16* 2014/15 2013/14 Cattle 7241960 7241743 7243916 (0.003) (0.004) (-1.17) Buffaloes 5168047 5167737 5178612 (0.0006 ) (0.00007) (-1.89) Sheep 789363 789292 789210 (-0.001) (-0.01) (-2.51) Goats 10256694 10251569 10177531 (-0.05) (-0.006) (-4.02) Pigs 1209246 1203230 1190138 (-0.50) (-0.43) (-5.60) Fowl 52203096 50195285 48079406 (-4.00) (-3.64) (-4.67) Ducks 390294 390287 390209 (0.002) (0.001) (-3.79) Milching Cows 1025953 1025947 1024513 (0.0006) (0.0005) (0.53) Milching Buffaloes 1343819 1345164 1345837 (-0.1) (-0.29) (-0.75) Laying Hens 8413240 8412820 83502387 (-0.005) (0.001) (2.45) (Laying Ducks 180599 179880 179447 (0.4) (0.22) (2.71) Yak/Nak/Chauri 71690 71327 70588 (0.52) (0.51) (7.48) Rabbit 26130 26000 25437 (0.5) (0.49) (29.61) Horses/Mules/Asses 52796 52723 52577 (0.14) (0.13) (-9.63) Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year * Annual Estimation Source: Annual Report (Various Years), Ministry of Livestock Development

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Status of Domestic Animals/Fowls Production 8.22 Cows and buffaloes (except yaks) are expected to produce 1815 thousand MT of milk in current fiscal year 2015/16 which is 3.04 percent higher than that of the previous fiscal year. Of the total milk production, Cows are expected to contribute 591 thousand MT (32 percent) while buffaloes are likely to contribute 1,167 thousand MT (68 percent). Despite the number of buffaloes in recent days has continued to drop, cow’s milk production has increased as a result of flourishing improved cow farming business. As compared to previous year, the total meat production of Nepal is estimated to increase by 3 percent reaching 309 thousand MT. Of the total meat production, production of buffalo meat is estimated at around 174 thousand MT, sheep at 2,659 MT, goat(castrated/non- castrated) at 63,646 MT, pig at 21,161MT, fowls at 48,280 MT while that of ducks meat is estimated to remain at 237 MT Table 8 (f): Status of Animal’s/ Fowl’s Production

Fiscal Year Production Type 2015/16* 2014/15 2013/14 Milk Production (MT) 1815548 (3.04) 1724823 (1.46) 1700073 (1.01) (Cow ) 591686 (6.1) 557669 (4.77) 532300 (14.28) (Buffalo ) 1167153 (-0.02) 1167154 (-0.05) 1167773 (-4.49) Total Meat Production (MT) 309943 (3.0) 300901 (0.89) 298244 (0.15) Buff 174099 (0.05) 174012 (0.06) 173906 (-1.15) Sheep 2659 (0.03) 2658 (0.08) 2656 (-2.54) Goat 63646 (4.5) 60906 (3.14) 59053 (6.25) Pig 21161 (5.1) 20135 (4.49) 19269 (6.15) Chicken 48230 (6.1) 45458 (5.39) 43133 (-4.95) Duck 237 (2.21) 232 (2.20) 227 (4.61) Egg Production (In 1000 unit) 948431 (3.5) 899501 (3.05) 872918 (-4.75) Chicken 934674 (5.5) 885947 (3.08) 859515 (-4.87) Duck 13757 (1.5) 13403 (2.70) 13050 (-0.07) Wool Production (Kg) 585614 (-0.19) 586848 (-0.17) 587834 (0.14) Fish (MT) 77670 (18.10) 65770 (14.35) 57515 (2.71) Note: Numbers in Brackets denotes growth in percent as compared to that of previous fiscal year *Annual Estimation Source: Annual Report (Various Years), Ministry of Livestock Development

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8.23 As compared to the previous fiscal year, total eggs production is estimated to rise by 3.5 percent in the current fiscal year reaching 948.4 million eggs. Of this total, chicken shares 934.7 million (98.5 percent) while duck shares 13.7 million units (1.5 percent). Similarly, wool production from sheep is estimated to reach 585 MT. Major Factors Affecting Agricultural Production 8.24 Weather : Monsoon, which generally starts from 10th of June and ends on 23rd of September, started late by 3 days in current fiscal year 2015/16 and remained very weak in the beginning but the trend of inconsistent, sometime active and sometime weaker, monsoon rainfall that started by mid-July continued. Despite the monsoon rain that lasted till the beginning of October and the rainfall in mid October as a consequence of Indian Ocean influenced weather system, paddy rice plantation in most of the eastern and mid-terai districts except those of far western, mid-Western and Western regions was still low. The total food grain production was affected as a result of less than average rainfall with its uneven distribution.

Table 8 (g): Supply Status of Inputs for Agriculture Production Fiscal Year Description 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Chemical Fertilizer (MT) 42178 29604 146584 178461.6 232188 298677 Improved Seeds and Seedlings 4337 4393 2964 3669.56 7290 9151 (MT) Irrigation (Additional Ha) 30718 35748 47795 32180 19310 18083 Agricultural Loan (Commercial 1429.1 1419.2 2340.7 3153.1 4027 6516 Banks) (In Rs. 10 million) Source: Economic Surveys of previous years and Nepal Rastra Bank

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8.25 Improved Technology: Development of improved technologies like; improved seeds, fertilizer, pesticides, farming techniques and use of agricultural tools and instruments and trained human resource have contributed largely to the agriculture production. The recommended improved maize seed is estimated to have covered 90 percent area. Likewise productivities of recommended rice varieties including Sabitri, Bindeshwori, Radha 4, Radha-12 for terai, Khumal-4, Khumal-10, Khumal-11 for mid-hills, and Chandannath for up-hills have increased by two folds than that of local varieties. Recommended improved varieties of rice have covered 90 percent area. 8.26 Natural Disasters: Incidents of Floods, landslides, inundation and river bank erosion have increased in current fiscal year 2015/16 than those of previous years. Around 35 thousand Ha of land has been destroyed by inundation, river banks erosion and sand burial. Likewise, due to low precipitation, rice, maize and millet could not be cultivated leaving almost 61 thousand Ha of land barren, and due to inadequate rain about 55 thousand Ha land couldn't be cultivated the rice.

Table 8 (h): Natural Disaster affected Land Area (Ha)

Affected 2015 2011 2014 Floods and 2013 Floods and 2012 Food Earthquake, Flood Landslides Landslides Drought Crops Drought Landslides Rice 55000 23900 13500 110450 859 Maize 5500 1900 95 21801 656 Millet 20 11 5 3691 2 Total 60520 25811 13600 135942 1517 Source: Ministry of Agriculture Development 8.27 Chemical Fertilizers: In fiscal year 2014/15, a total of 298,677 MT chemical fertilizer was sold which is 29 percent higher than the sale of 232,188 MT of the previous fiscal year. In first 8 months of fiscal year 2014/15, such fertilizer totaling 188,000 MT was sold against 135,493 MT during the same period of current fiscal year. Due to disruption in the supply of chemical fertilizer this year, fertilizer could not be sold in expected quantity which consequently dented the overall production of monsoon crops. 8.28 Chemical fertilizer usage rate was about 97 kg per hectare in fiscal year 2014/15 which was 75 kg per hectare for FY 2013/14 and 57 kg per hectare for 2012/13. Such rise in the usage trend is due to government’s grants in the fertilizer and stable price for last few years.

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Table 8 (i) : Sales and distribution status of Chemical Fertilizers (In MT) Fiscal Year Name of Fertilizers 2012/13 2013/14 2014/15 2014/15* 2015/16* Urea 108553 145622 190163 118093 89192 DAP 65722 81520 101797 58105 42425 Potash 2688 5046 6717 3924 3876 Total 176963 232188 2,98,677 188122 135493 Source: Ministry of Agriculture Development, Agriculture Inputs Supply and Monitoring Division * First Eight Months

8.29 Irrigation: Due to complex geographical structure and landscapes, only 2.641 million hectares of the total land area is arable, and of this, irrigable land comprises only 1,766 million hectares. Quantitative and qualitative feasibility studies on underground water resource have been conducted in terai/ madhesh, inner-terai and upland valleys. Moreover, irrigation facility is being made available through shallow tube-wells and deep tube-wells in dry lands and areas where no other alternative sources for irrigation are available. By the first eight months of the current fiscal year 2015/16,, the command area under shallow tube-well irrigation has reached 779,694 Ha while that of deep tube-well irrigation reached 391, 080 Ha. Similarly, farmer’s improved canal has been providing irrigation facility to 198,140 Ha while 5,955 Ha of land has been receiving irrigation facility from unknown sources. Thus, a total of 1,374,869 Ha of land have irrigation infrastructures. Irrigation facility has been extended to additional 18,083 Ha of land in FY 2014/15.

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Table 8 (j): Additional Irrigation Extension (Area in Ha)

Fiscal Year Types of Irrigation 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Total Irrigable Area 24880 26919 32565 19561 19310 18083 Expansion 1) Surface 5507 6099 9395 2016 3514 1586 Irrigation 2) Underground 19014 20120 22560 17180 15135 15939 Irrigation 3) Irrigation based 359 600 610 365 661 558 on New Technology Source: Irrigation Department 8.30 Agriculture Credit: Of the total agriculture credit disbursed in fiscal year 2013/14, arrears stood at Rs. 50.90 billion. Such arrear stood at Rs. 9.27 billion by the first eight months of its succeeding year which rose by 9.0 percent to the total arrear reaching 5.83 billion in the first eight months of the current fiscal year. Table 8 (k): Status of Credit Flow of Banks and Financial Institutions (Rs. In Million) Fiscal Year (Eight Months) Changes in First Eight Months 2014/15 Types of Credit 2014/15 2015/16 2015/16 2013/14 2014/15 2014/15 2015/16 (Amount (Percent) (Amount) (Percent) ) Farming Related 6686.9 7817.8 7998.3 9362.2 1130.9 16.9 1363.9 17.1 Services Tea 3207.9 3324.8 3479.9 3410.5 116.9 3.6 -69.4 -2.0 Animal Husbandry and Animal 15442.2 18348.0 20730.1 24486.3 2905.8 18.8 3756.2 18.1 Husbandry Related Services Forest, Fisheries and Slaughter 5791.3 1724.9 1769.3 2173.7 -4066.4 -70.2 404.4 22.9 Houses Other Agriculture and Agro-based 19781.7 28964.4 31182.2 31566.4 9182.7 46.4 384.2 1.2 Services Total 50909.8 60179.8 65159.8 70999.1 9270.0 18.2 5839.3 9.0 Source: Nepal Rastra Bank Nepal Agriculture Research Council 8.31 In first eight months of fiscal year 2015/16, new varieties of rice such as, Sugandhit (aromatic) -1, Radha 14 for irrigable land and Radha 13 for non-irrigable land along with Rampur hybrid maize 4, and Rampur hybrid maize-6 have been recommended for their cultivation. Moreover, 94,791 grains of pre-basic seeds of potato have been produced along with

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413 MT foundation seeds in the first 8 months of fiscal year 2015/16. In fiscal year 2012/13, total of 1,009 MT foundation seeds was produced in contrast to their production volume of 300 MT and 225 MT for its two subsequent years.

Table 8 (l): Description of Foundation Seed Production and Introduction of Crop Varieties Fiscal Year Source Seed Introduction of Introduced Crop Varieties Production (MT) Crop Varieties (In number) 2005/06 669 4 2006/07 575 10 2007/08 864 2 Rice, Maize, Wheat, Pulses, 2008/09 789 9 Oilseeds, Hill-Crops (Barley, 2009/10 715 0 Millet, Buchwheat), Potato, 2010/11 806 13 Sugarcane, Jute, Vegetables, 2011/12 912 7 Ginger, Dhaincha , Grass 2012/13 1009 4 Seeds etc. 2013/14 341 10 2014/15 225 - 2015/16* 413 - *Of the first eight months Source: NARC, Annual Report, 2012 Small Farmer Development Bank Ltd 8.32 Wholesale credits are being disbursed through Small Farmers’ Agriculture Cooperatives and micro-finance institutions of similar nature established and operated by small farmers in rural areas for operating agriculture and agri-business based micro-finance programs. 8.33 The number of cooperatives extending microfinance services had stood at 478 by first eight months of FY 2014/15. Such number has rose by 14 percent reaching 544 in the same period of FY 2015/16. The number of families that have received services from the cooperatives has increased by 22 percent during the same period of current fiscal year. Similarly, the number of cooperatives members to join cooperatives has reached 492, 137 benefiting some 2.5 million populations. About 0.55 million people have been availing the services through such cooperatives including additional 181 members of small farmer cooperative replication program.

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Table 8 (m): Small Farmer Cooperative and Status of Wholesale Credit Investment

S. Fiscal Year First Eight Months Description No. 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16

1 Number of Districts 43 54 55 57 57 57 Covered 2 Number of Co- 291 391 428 510 478 544 operative Institutions 3 Number of Small 31968 40991 45738 60334 52551 65235 Farmers Group 4 Small Farmers Member 228418 323384 376957 460590 403666 492173 5 Total Local Source (In 41033 65273 91208 132466 108889 145629 Rs. 100 thousand) 6 Approved Credit (In Rs. 27550 34332 47461 74834 47427 74876 100 thousand) 7 Credit Investment (In 26738 33091 51355 74834 46545 64936 Rs. 100 thousand) 8 Loan Recovery (In Rs. 18751 23526 34019 47529 28467 48353 100 thousand) 9 Amount on Investment 26762 36327 53662 80967 71740 97550 (In Rs. 100 thousand) Source: Small Farmer Bank Ltd. 8.34 Meat production oriented Livestock Credit Program has been in implementation since FY 2010/11 with a view to replace meat imports by raising meat production inside the country thereby encouraging small farmers to raise meat oriented livestock. From fiscal year 2014/15, arrangement has been made to invest on milk oriented livestock as well. A total of Rs. 5,121,7 billion credit has been disbursed to 61,592 farmers through 333 Small Farmer Agriculture Cooperatives of 48 districts in the first eight months of the current fiscal year 2015/16. From this, farmers have been raising a total of 342,605 meat and milk oriented livestock of which, 236,031 are goats, 45,946 are pigs and 18,489 are buffalo calves. Likewise, the credit is disbursed for raising 38,758 buffaloes and 3,381 cows. A sum worth more than 8.51 billion from meant and milk products is estimated to have collected through this credit facility. 8.35 Alternative energy program under "A Bright Home of Small Farmer" has been implemented. A total of 12,235 families have installed 11,825 unit of solar electricity sets and 160 sets of biogas plants and 250 sets of improved stoves by the first eight months of current fiscal year under this program. 8.36 A total of 1,150 children (youth) aged between 22 years and 30 years of small farmer members who have completed 12 grade have gained theoretical and practical training from Israel for engaging them in

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modern technology based agriculture and livestock business by attracting educated youths with skills and competency in agriculture profession. Processes for sending additional 425 such youths to Israel for training is underway. The first and second phases of youth trainees have already returned home while those undergoing third phase will be returning within current fiscal year.

Table 8 (n): Status of Meat-Oriented Livestock Credit Program

Fiscal Year First Eight Months Description 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16

186 207 257 313 301 333 Number of Institutions 17941 25411 38373 53680 47869 61592 transacting credit Number of Farmers 14305 23029 38272 61405 57125 82832 availing credit Approved Loan (In Rs. 11023 16229 27172 42371 36387 51217 100 thousand) Credit Investment Amount (In Rs. 100 87783 122406 198745 295796 260136 342605 thousand) Number of Livestock 64073 90433 143872 206416 184243 236031 Goats 11117 14535 24148 39359 33616 45946 Pig 5203 6317 10689 16763 14646 18489 Buffalo Calves 7390 11121 20036 31733 26847 38758 Buffalo 1525 784 3381 Source: Small Farmer Bank Ltd . Cooperative Sector 8.37 Cooperative system is being used as an important means for unifying dispersed limited resources, skills, technology and capital and using them for collective business. Cooperatives have been carrying out social and cultural programs aside from conducting various business concerned activities to meet their social needs. 8.38 Attraction towards cooperative business has continued to grow due to important contribution of cooperatives to country’s poverty alleviation initiatives as individuals or groups get engaged in income and employment generating activities. There is an increasing trend of establishing cooperative business in areas including extension of access to finance through saving and credit cooperative institutions, promotion of dairy business and livestock raising through agriculture cooperatives, running consumers’ shops to enhance access to market, production, processing, and marketing of high priced agriculture crops like, tea,

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coffee, cardamom, ginger, vegetables and fruits, honey, sugarcane, tangerines, medicinal herbs; and health, transportation, housing, insurance, tourism and communication among others. 8.39 There have been immense possibilities to achieve overall development and social transformation through socio-economic development of entire citizens from cooperative business enterprises. Development of cooperative sector is very much necessary for country’s socio-economic development since the common needs and aspirations of the cooperative members and communities can be met by mobilizing limited means and resources available with them through cooperative approach. Table 8(o) : Status of Cooperative Institutions (In Rs Thousand) Deposit/Sav No. of Fiscal No. of Share ing Loan No. of Direct Institut Year Members Capital Mobilizatio Investment Employment ions n 2006/07 9720 1259747 1045563 19517517 2414848 12165 2007/08 12646 1843759 8959172 29308434 30024625 15828 2008/09 19724 21383348 8482476 45676944 52660117 31996 2009/10 22646 2963114 20196274 121831359 10545357 37798 2010/11 23301 3141581 20225139 117295228 116835814 38892 2011/12 26501 3842657 27095151 139543971 134383241 39572 2012/13 27914 4104025 28823060 147069663 137084873 52000 2013/14 31177 4555286 61186201 172529350 154631604 54000 2014/15 32663 5100370 63059914 202420535 188078439 57854 2015/16* 33201 5185787 64621404 207922937 184859262 61270 Source: Department of Cooperatives *First Eight Month Progress of Current Fiscal Year 8.40 The number of primary cooperative institutions has reached 33,201 with their members’ number of 5,185,787 by the first eight months of the current fiscal year 2015/16. Of this, the number of male and female members has stood at 2,853,838 and 2,331,949 respectively while numerical ratio between them stood at 55 percent and 45 percent respectively. Women participation at the leadership level of cooperative movements has continued to rise and a total of 4,011 cooperatives have been run fully by women groups by the end of FY 2014/15. 8.41 By the first eight months of the current fiscal year 2015/16, the number of cooperative institutions has grown by 242 percent, members’ number by 312 percent, share capital by 6081 percent, gross saving mobilization by 965 percent, gross investment by 7555 percent and direct employment

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by 404 percent as compared to that of fiscal year 2006/07which indicated that contribution of cooperative sector to country’s economic development is on the rise. 8.42 In first eight months of current fiscal year 2015/16, number of 61270 individuals have received direct employment from business enterprises operated by cooperative institutions while more than one million are estimated to get indirect employment. Similarly, In the first 8 months of current fiscal year, total share capital of all types of cooperative institutions has grown to Rs. 64,621,404 thousand; saving mobilization to Rs. 207,922,937 thousand and credit invest to Rs. 184,859,262 thousand. Apart from primary institutions, cooperative campaign has various registered organizations from central to district level, namely, one National Cooperative Federation Limited, one National Cooperative Bank Ltd, 20 Central Subject Specific Cooperative Unions, 69 District Cooperative Unions, and 252 Subject Specific District Cooperative Unions which are in operation.

Table 8 (p) : Primary Cooperative Institutions*

No. of Member Share Direct Employment Capital Saving/Dep Investmen Nature of No. of (In Rs. osit (In Rs. t (In Rs. Business Institution Male Female Total Female Male Total Thousand Thousand) Thousand) ) Saving and 13535 1429935 1348905 2778840 47748908 148938822 137522375 17206 18123 35329 Credit Multipurpose 4209 641993 437365 1079358 11652423 42593920 36690571 5351 6372 11723 Agriculture 9562 403800 361515 765315 2669562 7198529 6406012 3635 3382 7017 Dairy 1724 82523 32312 114835 933406 6115128 574391 496 1765 2261 Consumer 1461 37000 20519 57519 311346 372624 737216 349 497 846 Electricity 445 58291 14218 72509 117640 78006 135176 107 347 454 Vegetable 234 14845 17733 32578 81146 310245 580225 185 170 355 and Fruits Tea 119 4626 1977 6603 50250 71751 50356 63 72 135 Coffee 173 3836 3131 6967 23879 24752 23943 43 92 135 Herbs 200 4784 2576 7360 24205 56582 29345 42 36 78 Bee 111 3401 2106 5507 13652 7300 15565 28 32 60 Keeping Communica 129 9898 3995 13893 115676 40692 34283 226 310 536 tion Health 117 6563 5317 11880 275919 119682 108842 322 559 881 Sugarcane 53 1750 772 2522 6098 18223 14813 0 1 1 Tangerine 45 1011 605 1616 981 6189 6282 13 8 21 Others 1084 149582 78903 228485 596313 1970492 1929867 1024 414 1438 Total 33201 2853838 2331949 5185787 64621404 207922937 184859262 29090 32180 61270 Source: Ministry of Cooperative and Poverty Alleviation * First eight months 2017/73

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8.43 Of total 33,088 primary cooperative institutions those are established with different objectives and being operated in the first 8 months of current fiscal year 2015/16, saving and credit cooperatives accounts for 13,535 while agriculture and agro-products related cooperatives accounts for 12,221. Similarly, the number of multipurpose cooperatives engaged in finance and production sector stands at 4,209 and 1, 461 consumer cooperatives have remained been active in the field of public distribution sector while cooperatives engaged in other service and business sectors such as health, electricity, communication, transportation and tourism among others have slowly been gaining progress. 8.44 In last seven years, a total of 319 different projects have been operated under government –cooperative partnership where a sum of Rs. 222,153,000 has been provided as grant for the promotion of those entrepreneurs.

Status of Imports and Exports of Agro-Products 8.45 During the eight months of current fiscal year 2015/16, the export of food items and animal products has dropped by 25.3 percent to Rs. 9.38 billion and that of tobacco and beverages by 80.7 percent to Rs. 340 million. During the same period of previous fiscal year 2014/15, the exports those items had stood at Rs. 12.56 billion and 1.8 billion respectively. Thus such export during the first eight months of the current fiscal year 2015/16 is estimated to drop by 24.9 percent as compared to the corresponding period of previous fiscal year. Likewise, food items and animal products worth Rs. 62.30 billion and tobacco and beverages equivalent to Rs. 3.10 billion have been imported during the first eight months of current fiscal year. Thus, such import during the first eight months of current fiscal year 2015/16 is estimated to fall by 13.9 percent to Rs. 435.8 billion as compared to that of previous fiscal year. The import of food items and animal products and that of tobacco and beverages is likely to grow by 5.6 percent and 12.3 percent respectively as compared to the export of those items of previous fiscal year. Forestry and Soil Conservation 8.46 It is important to maintain balance between improved livelihood of deprived groups and contingency approach by creating additional

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employment opportunities and increasing income through proper conservation, promotion, and utilization of forest, vegetation, herbs, buffer zones, bio-diversity and watersheds. It is necessary to protect environment and achieve economic benefits by increasing forest products and productivity through sustainable forest management. 8.47 Forest occupies 40.36 percent while shrubs cover 4.38 percent of the Nepal’s total land mass. Of the total 982.32 million cubic meter stem volume, Sal species (Shorea Robusta) occupies 19 percent. Likewise, total bio-mass remains at 1159.7 million tons, average stem volume stands at 165 cubic meters and average number of trees stands at 408 per hectare.

Table 8 (q) : Forest Resource Statistics of Nepal

Forest Area 5.962 Million Ha (40.36 Percent) Shrub Area 0.648 Million Ha (4.38 Percent) Total Stem Volume 982.332 Million Cubic Meter Sal Species in total Stem Volume 19 Percent Total Bio-Mass 1159.7 Million Ton Average Stem Volume 165 Cubic Meter Per Hectare Average Number of Trees 430 Per Hectare Source: Nepal Forest Resource Report, 2015; Forestry Research and Survey Department 8.48 Encroached forest areas of 638 ha, and 68 ha have been evacuated and managed by the end of FY 2013/14, and mid-March of current fiscal year 2014/15.

Box 8 (a): Some Forestry Related Statistics Number of Community Forest : 18961 Area of Handed-Over Community Forest : 1,752,193 Ha Household involved with Community Forest : 2291890 Number of Leasehold Forest (Poverty) : 7685 Area of Leasehold Forest : 44,642 Ha Number of Leasehold Forest for Industrial Purpose : 22 Area of Leasehold Forest for Industrial Purpose : 640 Ha Number Protected Forest : 8 Area of Protected Forest : 133,685 Ha Number of Partnership Forest : 23 Area of Partnership Forest : 62,778.57 Ha Number of Partnership Forest Beneficiary Household : 580,385 Number of Partnership Forest beneficiary : 3704707 Number of Religious Forest : 36 Area of Religious Forest : 2056 Ha Number of Private Forest : 2458 Area of Private Forest : 2360 Ha

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8.49 By fiscal year 2014/15, a total of 1,752,193 ha of 18,961 community forests have been handed over benefiting 2,291,890 households. By mid- March of the current fiscal year 2015/16, the number of community forest users reached 18,961 with the addition of 133 such users. Similarly, during the same period of current fiscal year 2015/16, the number of leasehold forest users has reached 7,685 with 117 additional users. 8.50 By the end of fiscal year 2014/15, a total of 640 ha of forest land has been distributed among 22 different industrial academies as leasehold forest. Similarly, 133,685 Ha of forest area is being conserved and managed in the form of 8 protected forests in the same fiscal year. 8.51 A total of 62,778 ha of forest land of 12 districts is being conserved and managed as 23 partnership forests in FY 2014/15 benefiting 3,704,707 people from 580,985 households. 8.52 By the end of FY 2014/15, forest area of 2,056 ha comprising 36 traditional religious temples, maths , monasteries etc., are being conserved and managed after being handed over as religious forest. Likewise, by the end of FY 2013/14, a total of 2,360 Ha of forests belonging to 2,458 individuals, after their registrations as private forests, are being conserved and managed accordingly. Table 8(r) : Conservation Area Details No. of National Park 10 10,853 Sq. Km. No. of Wild Animal Conservation 3 1809.5 Sq. Km. No. of Hunting Conservation 1 1325 Sq. Km. No. of Conservation Area 6 15425.95 Sq. Km No. of Mid-Term Community 13 5722.28 Sq. Km. Forest Total Area of Conservation Area 34420.13 Sq. Km. (23.39 % of Nepal Total Area) Species preserved after developing Elephant, Tiger, Rhino, the conservation Snow Leopard, Area Crocodile, Spotted Deer Area of Mid-Term Community 433 Forest No. of Household Involved in Mid- 125349.7 Ha Term Community Forest No. of National Park 40191 Household

No. of Buffer Zone Lease Hold 63 Forests Area of Buffer Zone Lease Hold 257.16 Ha Forests Source: Department of National Parks and Wildlife Conservation, 2015

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8.53 A total of 34,420 sq km is covered by the conservation area under the National Park and Wildlife Conservation Act 1972 comprising 10 national parks, 3 wildlife reserves, 1 hunting reserve, and six protected areas which is 23.39 percent of total land area. Of this, 433 buffer zone community forests covering 124,350 ha has benefited 40,191 households. Similarly, 257.16 ha of land is under 63 leasehold forest management. Species Conservation Plan has been prepared and the number of species of important, Wildlife population of important, rare and endangered animals including those of elephant, tiger, rhino, snow leopard, crocodile and spotted-deer has been gradually rising as these species of wildlife are being protected as per the plan prepared for their conservation. 8.54 Attraction of both international as well as domestic tourists towards conservation area is on the rise. The number of tourist visiting conservation areas increased by 36 percent in fiscal year 2014/15 as compared to fiscal year 2009/10. Likewise, revenue generated from conservation area has increased by about 3 folds in the same fiscal year 2014/15 than that of fiscal year 2009/10. Likewise, National Livestock Garden Center is being established in Suryabinayek of Bhaktapur. Number of tourists visiting conservation areas that was declining in fiscal year 2014/15 is calculated at 88,757 in first 8 months of current fiscal year.

Box 8(b): No. of Major Species of Wild Animals Tiger 198 Rhino 534 Elephant 105-145 Wild Buffalo 432 Spotted Deer 300-350 Reindeer 2105 Ghariyaal 134 Snow Leopard 300-500 Source: Department of National Parks and Wildlife Conservation, 2015 Table 8 (s) : No. of Tourists Visiting Conservation Area and Revenue Fiscal Year No. of Visiting Tourists Revenue Collected from (Domestic/Foreigner) Conservation Area (Rs. 000) 2015/16* 88,757 145,582 2014/15 355,524 538,710 2013/14 425,334 530,852 2012/13 390,690 471,338 2011/12 502,092 258,526 2010/11 455,237 209,956 2009/10 311,789 140,383 Source: Annual Report, 2014/15, Department of National Park and Wildlife Conservation*Until Mid-March 2016

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8.55 Identification of Nepal's flora, their management as well as in-situ and out-locality (translocation) conservation, studies, researches and documentation works are underway. Under this, 160,000 herbarium samples of 5,077 plant species have been conserved and regularly managed at National Herbarium and Botanical Laboratory while digitization of 5086 herbarium samples and electronic database of 6,000 herbarium samples have been prepared. In addition, mounting of 18.074 herbarium samples have been accomplished subsequent to their labeling.

8.56 Strengthening of laboratories is underway for bio-conservation, qualitative analysis of herbariums of commercial importance, Phytosanitary verification as well as utilization of trade support activities. Analysis, verification and recommendation and of 1972 herbarium samples species, phytochemical and phermalogical studies on 300 plant species have been completed in fiscal year 2014/15. Similarly, analyses of aromatic oil of 15 plant species together with bio-chemical study on 29 plant spices have been carried out. By the end of fiscal year 2014/15, tissue culture technology of 113 plant species has been developed whereas in-situ and out-locality conservation is being done for 27 endangered as well as critical species. Table 8 (t) : Domestic and External Tourist Visiting National Botanical Garden

Revenue Collected (In Rs. Fiscal Year Number of Tourist Thousand) Domestic External Total

2015/16* 171425 1378 172803 6300 2014/15 194551 2532 197083 6436 2013/14 273948 1760 277708 3741 2012/13 263357 3488 266845 3609 2011/12 244569 2270 247840 3334 2010/11 235933 3214 239147 3241 2009/10 221648 2638 224286 3019 Source: National Botanical Garden, Godawari, By Mid-March 2016

8.57 In Nepal, 12 botanical gardens have been established in 806.2 ha and being managed. Revenue generated through both domestic as well as foreign tourists visiting National Botanical Gardens is on the rise. People would have appropriate places for recreational activities whereby state could generate notable revenue if these parks could be managed properly.

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Table 8 (u): Soil Conservation and Watershed Management Status

Number of sub-watershed areas with prepared action plans 410 Gully Erosion Control 4482 River/ Stream bank erosion control through Bio-Engineering 1675.58 Km Protection of Water Sources 3346 Conservation of Lakes and Ponds 1727 Protection of agriculture/forest friendly arable lands 3279.44 Ha Rehabilitation of devastated lands 14249 Ha Protection of road side slopes through Bio-Engineering 431 Km Protection of Irrigation Canal 1556 Km Income Generating Conservation Programs for Deprived 28587 Household Groups Source: Department of Soil Conservation and Watershed Management, 2014 8.58 Though proper production and distribution of forest products (timber, firewood, medicinal herbs etc.) has been made, revenue collection faces fluctuation due to the number of tourists visiting conservation area. Revenue collected from forest sector had been doubled in fiscal year 2009/10 in comparison to fiscal year 2012/13 while decrease in revenue is experienced in fiscal year 2014/15. In first 8 months of current fiscal year Rs. 258,542,000 revenue has been collected. Table 8 (v): Revenue from Forest Sector

Fiscal Year Revenue (In Rs. Thousand) 2015/16* 258542 2014/15 536100 2013/14 1182167 2012/13 1395719 2011/12 1072801 2010/11 361497 2009/10 697296 Source: Ministry of Forest and Soil Conservation, Until Mid-March 2016 Land Reform and Management 8.59 Proper land management is critical towards achieving manifold objectives inter alia, availing land ownership registration certificates by registering the land for protecting land ownership as fixed assets of the people; contributing to sustainable development by ensuring proper usage of land and its source; promoting reliability and wholesomeness of information; promoting access of landless farmers to land; making land related services easily accessible, simple, transparent and qualitative through adopting the information technology; developing skill human

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resource required for conducting land survey and land management; and for contributing to revenue mobilization. 8.60 In fiscal year 2014/15, a total of 1191 freed-bonded laborer (MuktaKamaiyas ) families have been distributed land procurement grants while 1317 such families are provided house construction grants. Likewise, 153 families of freed land tillers ( Haliya ) households have been distributed grants for land procurement, 143 for house construction and 166 for house repair during the same period. By the first 8 months of current fiscal year, of the total 27,570 freed bonded laborer (MuktaKamaiyas ) families, 26,090 such families have been resettled, and among 19,953 families of freed land tillers have been resettled by distributing land procurement grants to 293 such families, house construction grants for 220 and 386 for house repair. Similarly, 1,142 freed land tillers have been provided trainings. 8.61 By the first 8 months of current fiscal year 2015/16, land-use map and profile of land-use status of 75 districts have been prepared according to National Land-Use Policy. Land-use map/data of 4 municipalities and 397 VDCs have been prepared. Measurement and mapping works are being carried out in Jhapa and Siraha by establishing Special Survey Offices. Measurement, mapping and records restoration works are underway in Acham, Arghakhachi and Palpa districts. 8.62 In the fiscal year 2014/15, revenue of Rs. 14.1411 billion has been collected from the land related qualitative service delivery. 8.63 A total of 12 Land Revenue Office and 6 Land Measurement Office building have been constructed in fiscal year 2014/15. Digital data in 25 measurement offices have been verified. Likewise, measurements of village Blocks in 2,450 ha of land and re-measurement in 1000 ha of land have been completed. Likewise, digital data of 35 land revenue offices has been updated by mid-March of current fiscal year2015/16. 8.64 Digital data that are required for the Land Revenue Offices to convert the public services to be delivered through these offices into online services have been prepared while 5 of them have already started delivering online services. 8.65 Resettlement and skill development programs for landless people, squatters, freed bonded laborers, and freed land tillers have increased their access to land thereby providing support to overall poverty

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reduction initiative and promotion of social justice initiatives. Moreover, registration charge and other revenue sources have contributed significantly to country’s revenue mobilization. Problems and Challenges 8.66 Raising agricultural production and productivity has been a challenging task owing to inadequate agricultural infrastructures including roads, electricity, irrigation, fertilizer and improved seeds required for the development of Agriculture, which is backbone of the economy. Not only this, absence of special plans and programs for agriculture production as per soil suitability and the climate, inadequate services of agricultural technicians, lack of modernization and commercialization of agriculture, and labor shortage are other major problems. 8.67 Marketing of agricultural produce, maintaining quality and carrying out the development and expansion works for commercialization of agriculture system have remained a challenge. In addition, absence of cold and low-cost storages together with unavailability of prices acceptable to farmers have led farmers to sell their produce at lower prices to the middlemen leaving them with no choice but to accept lower prices when they produce more. 8.68 There lies an extra challenge to retain production and productivity of agriculture sector in absence of adequate and reliable researches and studies by reducing negative impacts that production and productivity are likely to receive from climate change. 8.69 Formation of cooperative organization and institutions, their operations, and regulation based on accepted norms, values, and principles for nation building by promoting the cooperatives sector has been a challenging task. Likewise, expanding production oriented cooperatives than saving and credit cooperatives, and mobilizing them as an active development messenger of local economy have also remains a challenge. 8.70 It is a daunting challenge to maintain financial discipline among saving and credit cooperative institutions, ensuring protection of savings and investments, and managing production, processing, and other marketing related activities through increased investment in cooperative business. 8.71 Tasks of developing expertise of personnel engaged in mapping and land administration sectors for making land administration offices capable,

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robust, service oriented, and accountable to the people appeared to be challenging. 8.72 There remains a challenge to bring positive change in entire service seekers by making the land management related activities prompt, efficient and, people and technology friendly through the means of modern technology. 8.73 Tasks of preparing land records, identifying genuine landless people and those residing in squatters and unorganized settlements, documenting government lands, remedy of dual land ownership and execution of limiting land ownership have been challenging. 8.74 Tasks of forest development and management by coordinating and implementing functions like acquisition of encroached forestland, maintaining balance among environment, development, and population, curbing illegal trade of flora and fauna, landslides, uncontrolled collection of stones, gravels, and sand, sustainable forest management, maintaining balance between demand and supply of forest products, managing conflicts between human and wildlife, mitigating the effects of climate change and developing adaptive capacity to cope with the effects of such climate change have been glaring challenge.

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9. Industry, Commerce and Tourism Industry Sector 9.1 Bringing growth in domestic production is imperative for Nepal’s economic prosperity. Neither import substitution nor export promotion is possible in absence of domestic production growth and trade deficit cannot be reduced either. Development of Industry sector is very much necessary to reorient the economy towards the path of prosperity, which shrank as a result of devastating earthquake and border obstructions.. It is imperative to give high priority to Nepalese labor, skill and raw material based domestic investments to promote national level industries for achieving national economic growth as per the spirit of the Constitution of Nepal. Likewise, knowledge skill, technology and capital in possession of non-resident Nepalese can be utilized in national development efforts thereby making the economy prosperous. Public, private, and cooperative sectors need to be mobilized to achieve industrial growth. 9.2 For industrialization of the country, industries that are not in operation but considered important need to be brought back into operation with proper ownership and management structure on the one hand, while creating industrial environment by establishing industrial estate in every province and developing infrastructure in an organized way for creating industrial environment is very much necessary on the other. Table 9 (a): Industries Registered at the Department of Industries Total Fixed Working S. No. of Investment Capital Capital Employme No Scale Percent Employment Industries (In Rs. (In Rs. (In Rs. nt Rate . Million) Million) Million) 1 Large 821 13 904678.78 839765.33 64913.41 122765 150

2 Medium 1453 23 121835.42 81679.70 40637.22 139387 96

3 Small 4054 64 57696.26 36550.45 21292.71 250007 62

Total 6328 100 1084210.46 957995.48 126843.34 512159 81 Source: Department of Industries

9.3 Investments requires to be made for building industrial infrastructure; developing cordial labor relations; availing energy; boost industrial investment; skill development; and utilization of raw materials could be made to the desired extent for production and export of goods. Such measure would support economic development by maintaining the

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balance of trade and supporting overall economic development through increased employment.

9.4 The industry sector of Nepal got negatively impacted due to disruption in supply of essential commodities from the beginning of the current fiscal year leading to shortfall of fuel and industrial raw materials. In order to avoid such inconvenient situation, it is necessary to establish industry (producing industrial raw material and readymade goods) that would maintain both forward and backward linkages within the country itself, and become self-reliant to some extent. Moreover, mines and petroleum exploration projects should be accorded high priority by reprioritizing the recently prioritized programs and projects based on national needs. 9.5 By first eight months of current fiscal year 2015/16, a total of 6,328 industries having fixed capital of over Rs. 30 million have been registered under Department of Industry. Industries where about Rs. 10.84 billion has been invested is estimated to have provided employment to 512,159 individuals. The shares of large, medium and small industries have averaged 13 percent, 23 percent and 64 percent respectively. These industries appeared to have generated employment to 150, 96 and 62 individuals per industry respectively. Table 9 (b) : Licensed Industries for Operation

Working Fiscal Total Capital Fixed Capital Number of No. of Industries Capital Year (In Rs. Million) (In Rs. Million) Employment (In Rs. Million) 2008/09 301 26,961 22,527 4,916 20,359 2009/10 258 39,245 34,353 4,892 14,510 2010/11 242 90,416 77,913 12,502 13,727 2011/12 279 84,427 79,362 5,065 16,960 2012/13 446 119,601 107,983 11,618 28,535 2013/14 371 289,308 276,699 12,609 21,538 2014/15 462 132,914 123,244 9,671 22,581 2015/16* 219 42,695 35,190 7,505 9,567 Source: Department of Industries *By Mid-March 2016 9.6 The observation tells that the number of medium and large scale industries has continued to decline since FY 2008/09 for three subsequent years. Though the number of registered industries grew satisfactorily in FY 2011/12, its number declined again in FY 2012/13. When the country seems heading towards political stability with consensus built among political parties, there is a growth in registration of industries with creation of business environment. Political instability

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and disruption in the supply of essential commodities, however, have resulted in the decline of their number of registration. 9.7 The amount invested on industry had registered marginal growth between FY 2008/09 and 2012/13 while this rose by 142 percent in its subsequent FY 2013/14. However, the investment amount dropped by 54 percent in FY 2014/15 for failing to invest in the same ratio. By mid- February of the current fiscal year 2015/16, the number of newly registered industries stood at 219 with a total investment of Rs. 42.69 billion generating employment to 9,567 individuals. Table 9(c): Licensed Industries for Operation by Types

Fixed Working Total Capital Number of Capital Capital Types Percentage Employment Industries (In Rs. (In Rs. (In Rs. Million) Million) Million) Agro-based 380 6 16759.52 14140.99 2736.54 32776

Construction 48 1 42477.03 41569.46 907.58 3223 Energy 267 4 593807.02 578668.11 15138.91 26802 Production 2585 41 230286.54 171458.24 59298.80 285230 Oriented Mining 61 1 4366.91 3846.99 522.02 6399 Service 1750 28 117536.97 77797.21 39785.76 106300 Tourism 1237 19 78976.41 70514.48 8453.74 51429 Total 6328 100 1084210.42 957995.48 126843.35 512159 Source: Department of Industry

9.8 The recent statistics reveals that about 41 percent of the total industries are productive oriented by their nature until mid-February of current fiscal year 2014/15. This is followed by service sector industries and tourism industries. Mines related industries have their nominal presence while forest related industries account for 6 percent.

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Foreign Investment 9.9 A total of 3,520 industries from 86 different countries have been registered by mid-February, 2016 securing approval for foreign investment of more than Rs. 1.89 Trillion. Through this, a total of 211,843 individuals are estimated to have received employment. Approval was granted for making foreign investment of Rs. 67.415 Billion last year while only Rs. 6.87 billion has been approved by the first eight months of the current fiscal year. Table 9(d): Foreign Investment in Industry

Total Total Total Fixed Total Cost Working Foreign Number of Capital Total FY Capital Investment Projects Employment (In Rs. (In Rs. (In Rs. (In Rs. Million) Million) Million) Million) 2002/03 844 83584 69533 12771 22591 92647 2003/04 78 4324 3776 549 2765 2154 2004/05 63 1796 1149 647 1636 5559 2005/06 116 4121 3297 824 2606 7358 2006/07 188 3426 2651 775 3186 7389 2007/08 213 20406 16898 3508 9813 10709 2008/09 231 9418 7530 1888 6255 11108 2009/10 171 13954 14988 866 9100 7848 2010/11 210 11253 9377 1875 10053 10902 2011/12 226 11910 10736 1173 7138 9035 2012/13 317 51991 41046 10944 19819 16569 2013/14 305 40712 35027 5685 20107 11732 2014/15 369 81331 77404 3927 67415 13078 2015/16* 189 10337 7958 2379 6870 5755 Total till Date 3520 348563 301370 47811 189354 211843 Source: Department of Industry *By Mid-March 2016 Table 9 (e): Country-wise Foreign Investment Total Foreign S. Number of Average Investment Per Country Investment Percent No. Project Industry (In Rs. Million) (In Rs. Million) 1 India 629 80657 43 128 China 2 29 25131 13 867 (HongKong) 3 China 898 23312 12 23 4 South Korea 284 9186 5 32 5 Iceland 13 7942 4 611 6 America 298 7096 4 24 7 Britain 147 4061 2 28 8 Mauritius 9 3315 2 368 9 Singapore 37 2888 2 78 10 UAE 14 2320 1 166 Total 2358 165908 88 70

Source: Department of Industry

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9.10 By country, India comes first followed by Hong Kong and China from the perspective of countries making investment in Nepal while the shares of other countries’ investments have been nominal. Nepal’s neighboring countries of India and China have been the countries to invest in the most number of projects in Nepal which have invested in 898 and 629 projects respectively.

Table 9 (f) : Countries with BIPPA Agreement

S. Agreement Total Foreign Investment Countries Number of Projects No. Date (In Rs. Millions) 1 France May 2, 1983 79 529 2 Germany October 20, 96 1256 1986 3 Britain March 2, 147 4061 4 Mauritius October1993 3, 9 3315 5 Finland February1999 3, 10 336 2009 6 India October 21, 629 80657 2011 Total 970 90154 Source: Ministry of Industry 9.11 Of the total 86 countries to make their investments in industrial sector, the Government of Nepal has entered into the Bilateral Investment Promotion and Protection Agreement (BIPPA) with six countries including France, Germany, UK, Mauritius, Finland and India. These counties cover 48 percent of the total foreign investment where India shares the most. Table 9(g): Details on Industrial Intellectual Property

Till Mid-March 2016 from For Fiscal Year For Fiscal Year Description Total Beginning 2014/15 2015/16* Trademark 40563 2080 1689 44332 Patent 74 2 0 76 Design 117 14 10 141 Total 40754 2096 1699 44549 Source: Department of Industry *Of First Eight Months Only

9.12 Protecting industrial intellectual property is also necessary for industrial development. A total of 44,332 trademarks have been registered so far for products identification. Similarly, 76 index patents that identify the new production process and monitoring of unauthorized productions have been issued while 141 new designs have been registered.

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Current Status of Industrial Estates 9.13 Industrial estate in Nepal began with establishment of Balaju Industrial Estate in 1963 on the joint effort the Government of Nepal and USAID to attract the private sector tofor making business investments in the industry sector. Its objective is to increase investment by integrating scattered and unorganized capital. Industrial estates are to provide significant contribution in the promotion and development of industries by availing the most essential basic infrastructures such as land, industrial buildings, road, electricity, water, sewerage and other facilities in an integrated manner for the establishment of industries with greater emphasis on the country’s economic sector specially for import substitution, export promotion, mobilization of local skills and resources, and creation of employment opportunities. Of the total 11 industrial estates (districts) established including Balaju, Hetauda, Nepalgunj, Dharan, Pokhara, Butwal, Bhaktapur, Birendranagar, Gajendra Narayansingh and Dhankutta, 10 of them are in operation except that of Dhankutta. 9.14 A total of 5,680 Ropani (625 Acre) of land occupied by 10 operational industrial estates. Of the total 628 industries established under industrial estates area, 498 of them are operational. Such industries have employed 13,523 individuals consuming 21,125 KVA of electricity. Cottage and Small Scale Industries 9.15 The government has been giving emphasis on establishment, development, and expansion of cottage and small scale industries that contribute to the economic development by creating self-employment and employment through entrepreneurship and skill development at local levels. 9.16 As on the first eight months of the current fiscal year, at total of 8, 188 cottage and small scale industries have been registered under the Department of Cottage and Small Scale Industries in 27 districts which are estimated to have generated 50,232 employments. Likewise, under Cottage and Small Scale Industries Development Committee, a total of 2,808 industries have been registered in 48 districts where 4,611 individuals are estimated to have received employment. So far, a total of 270,988 cottage and small scale industries are registered across the country under such department and the committee. Similarly micro- enterprise development programs have generated 7,645 new

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entrepreneurs and such programs have been extended to 64 districts since current fiscal year . Cottage and Small Scale Industries Training Center 9.17 Cottage and Small Scale Industries Training Center has been imparting training in various headings to entrepreneurs. A total of 1,135 individuals were provided skill oriented trainings on 18 headings including food processing, bakery, beautician, mobile phone repair, hand paper production in FY 2014/15 while 701 persons have been provided such trainings in the first eight months of the current fiscal year. Industrial Enterprise Development Council 9.18 Activities like Training of Trainers (ToT), Quality Management, Feasibility Studies, and Consultancy Services, that are based on demand of various organizations/institutions engaged in the development of industrial enterprises, are being carried out in order to make economic system strong through development of human resources necessary for entrepreneurial development, business management and research for industrial development, and for development of industrial enterprises. 9.19 Industrial Enterprise Development Council has imparted trainings on various headings to a total of 2,743 individuals since FY 2012/13 until mid-February of current fiscal year. This has provided training to more than 7,510 individuals since its establishment. Office of Company Registrar 9.20 A total of 146,647 companies have been registered with Office of Company Registrar. While looking over the statistics of last three year, number in the registration fell in FY 2013/14 as compared to that of FY 2012/13 while this number grew in FY 2014/15. Table 9 (h): Company Registration Status

S. No. Company Total till 12/13 13/14 14/15 15/16* Total 11/12 1 Public 1204 37 27 31 32 1331 2 Private 103371 10550 10052 12371 7903 144247 3 Profit Not 413 83 94 200 159 949 Distributing 4 Foreign Company 41 18 21 24 16 120 Total 105029 10688 10194 12626 8110 146647 Source: Office of Company Registrar

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Mines and Geology

9.21 Scientific exploration of mines and minerals is imperative for resolving the current fuel crisis and for the development of mines industries. Preliminary Reconnaissance Geological Exploration work has been completed in area of 41,600 sq. km ranging from Mechi zone of Eastern Development Region to Leaser Himalaya of Far Western Region where about 500 anomalies have been identified. 9.22 Based on the concept of establishing cement factories in every region to meet the balanced development approach taken by the government of Nepal, a total of 1.07 billion MT of limestone including 540 million MT tested, 110 million MT, semi-tested while 420 million MT of feasible limestone has been explored at different geological sites Udayapur, Dhankutta, Sindhuli, Makwanpur, Lalitpur, Dhading, Shyanja, Arghakhanchi, Surkhet, Dang, Salyan, Baitadi and Palpa districts as a result of departmental level studies and researches. . A total of 13 cement factories with 8,450 Ton/day capacity have been established and are in operation while 10 such factories are under construction. Operation of these factories in full capacity would lead the country towards self- reliance on cement production. 9.23 Natural gas mines of 316.0 million cubic meters have been explored in Kathmandu valley while that of 180 million MT of magnesite has been discovered in Dolakha. Similarly Iron ores deposits of about 10 Million MT are explored in Lalitpur (Fulchoki), Rameschhap (Those) and Nawalparasi (Dhauwadi); copper mines totaling about 14 million MT have been explored in Solukhumbu (Wapsa), Makwanpur (Kalitar); 14 million MT of chalk mines in Chitwan, Tanahun and Dadeldhura, Myagdi, Kaski districts; 5 million MT of coal mines in Dang, Rolpa, Palpa and Arghakhanchi, marble mines in Lalitpur, Makwanpur and Kavre districts; and gold, copper, lead and zinc deposits have been discovered in Rolpa, Baitadi, Darchula, Bajhang, Ilam districts. Likewise, mines of precious stones such as kainite, tourmaline, quartz crystals have been found in Jajarkot, Achham, Kalikot, Dailekh, Sankhuwasabha and Dhading, while dolomite, phosphorite, mica, salt deposits have been explored in other districts. 9.24 Agreement has been signed with private investors for the establishment of industries based on 11 mine ores including limestone, iron, copper, marble, gold, lead and zinc among others. Promotion of industries based on 15 other mine ores including those of copper, lead, zinc and limestone

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is in progress. Exploration works on uranium are being carried out in Makwanpur, Baitadi, and Mustang. 9.25 As per the policy to attract private investors to undertake works from the exploration of small and medium scale mines giving immediate results like those of limestone, marble, gemstone (Kyanite, tourmaline, quartz crystal), coal, quartzite to their production, such investors have been invited and given away certificates to carry out 104 exploration works while 91 for research works on such mines including those of iron, copper, placer gold towards metal ores. 9.26 Second phase of mapping has been initiated following the first phase of geological survey work on the entire parts of Chure hill and Mahabharat range and some part of the high mountains. Geo-engineering and geo- environmental exploration surveys for the organized urban development and waste management of Kathmandu valley, Pokhara, Butwal, Bhairahawa, Hetaunda, Dharan, Biratnagar, Surkhet, Nepalgunj, Janakpur, Dhangadhi, Mahendranagar, and Chitwan have been completed. 9.27 Seismic stations have been installed to carryout earthquake related researches on the mountain plateaus and continuous observations are being carried out, while Information on possible earthquakes in future is being collected based on analyses of such data. are being collected and analyzed. Quality Standard and Measurement 9.28 Industrial products can only gain trust in both domestic and international markets when their quality is improved. A total of 29 laboratories are in operation for carrying our quality test. So far, 10 such private laboratories have been certified as per Nepal Laboratory Standard and ISO 17025:2005. Similarly, market monitoring, inspection of taxi meters, monitoring of petrol pumps and verification of weighing and measuring equipment (weighing scale, balance, etc.) are being carried out on a regular basis. Industrial Infrastructure Development Program 9.29 Of the ongoing cement industry projects under this program, that are in process of operation, 10 of them have been provided priority where installation of transmission line together with the construction of sub- station and access road are underway.

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Special Economic Zone 9.30 Nepal has set a vision to establish Special Economic Zones (SEZs) in 15 different locations with the objectives of inviting foreign investments, earning foreign currencies, enhancing export trades, increasing employment and importing advanced technologies and of this, SEZ in Bhairahawa has been launched on November 18, 2014 . Bhairahawa Special Zone Operation Standard and Guideline, 2014 has been endorsed and implemented. New Acts relating to SEZ has been tabled in the parliament. construction work is in progress at Simara SEZ while land acquisition work for Panchkhal SEZ is underway. Likewise, studies are being carried out for the further improvements of SEZ by identifying its overall problems. Factory at the Central Jail 9.31 Trainings on Textile and power looms were provided to 35 inmates from FY 2012/13 to FY 2014/15 with a view to make them competent to earn incomes through capacity development trainings. Such trainings were provided to a total of 3,262 inmates including 274 females and 2,988 male until FY 2014/15. Through this program, a total of 19,413 meter of cotton fabrics has been produced and sold by the second trimester of the current fiscal year. Commerce and Supplies 9.32 Trade Policy 2015 has been prepared and brought in operation with objectives of increasing the export of value added competitive goods and services to the international market by enhancing supplies related capacity and increasing access of goods and services and intellectual property to regional and global markets. Nepal Trade Integrated Strategy, 2016 has been forwarded to the Council of Ministers after time relevant revision on Nepal Trade Integrated Strategy, 2010 for the effective implementation of trade policy. Draft preparation work on ordinance relating to safeguards, anti-dumping and countervailing is in final stage. 9.33 In the context of leading the implantation of trade facilitation agreement that was endorsed through 9 th Ministerial level conference on WTO, Category-ATF Measures under trade facilitation agreement is notified to WTO after carrying out studies on trade facilitation which has been forwarded to the legislative parliament for endorsement.

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9.34 On private firm side, 3,745 new firms are registered while 947 firms are renewed, 1,722 are revised and 424 are dissolved by the first eight months of the current fiscal year 2015/16. Likewise, towards partnership firms, 154 received new registration, 197 renewed, 66 revised, 59 dissolved while on the agency side, 34 of them have been newly registered and 12 are renewed. 9.35 Out of the total 153,980 firms including 153,152 private firms and 828 partnership firms, digitization work on 71,500 such firms has been completed in the first eight months of the current fiscal year. 9.36 Under the leprosy control program, 39344.47 quintals of salt has been supplied to 13 remote and 9 moderate districts under grant support of the government of Nepal by the first eight months of the current fiscal year. This program has provided sense of relief to the rural people and helped control the iodine deficiency induced diseases like goiter, mental retardation, speech related problems, stunted growth etc. .

BOX 9 (a): Major Initiatives taken for Export Growth, Trade Facilitation and Supply Management • Signing of agreement between Nepal and India on 4 Letters of Engagement at Commerce Secretary level including (1) Simplification of Modalities for Traffic in-Transit between Nepal and Bangladesh through Kakarbhitta-Bangladesh Corridor, (2) Operationalisation of Traffic in-Transit between Vishakhapatnam Port and Nepal (Amendment in Treaty of Transit), (3) Operationalisation of rail transit facility through Singhbad for Nepal’s trade with and through Bangladesh, (4) Operationalisation of Traffic-in Transit Through Rail Transport to /from Vishakhapatnam Port(Amendment in Rail Services Agreement) has been concluded during India visit of Honorable Prime Minister of Nepal. • MOU on feasibility study to be conducted jointly on Nepal-China Transit Agreement and Nepal-China Free Trade Agreement has been signed during Honorable Prime Minister’s visit to People’s Republic of China. Likewise, signing of Agreement on Transit Transport between the Government of Nepal and the Government of People’s Republic of China and MOU between the Ministry of Commerce of Nepal and the Ministry of Commerce of People’s Republic of China on launching the joint feasibility study of Nepal-China Free Trade Agreement has been concluded.

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• Sighing of MoU between Nepal and India for the installation of petroleum pipeline from Raxaul of India to Amlekhgunj of Nepal has been concluded on August 24, 2015. • Various programs are being implemented for enhancing commercial production of gingers which is considered as the major exporting crop. Production of gingers that was just 12 MT/ha has reached 42MT/ha after the introduction of Ginger Development Program. About 400 farmers, entrepreneurs, and workers from various districts have been provided trainings together with the machines as well by Trade and Export Promotion Center for tea packaging, production of hand paper, Allo processing, Chiraito processing, organic coffee and honey production and gold and silver jewelries making. • Chyangra Pashmina collective trademark has been registered in 47 countries for the promotion of Nepali cashmere (pashmina) . Likewise, collective trade mark for Nepali coffee has been registered in Norway, Hong-Kong, Japan, Singapore, Canada, EU and Switzerland. • Construction works on the herbs collection and processing center in Surkhet are in final stage. • Differences in price and quality have continued to decline as a result of growing attention between the consumers and the traders due to extensive market monitoring. • Land acquisition process for the establishment of dry port at Rasuwagadhi-Kerung border point for trade facilitation is in progress. • Works on the preparation of Export-Import (EI) Code which is required for getting information and updating records to facilitate trade are underway. • Works on the preparation of structural framework with detailed design for the construction of Container Freight Station at Chobhar of Kathmandu is in progress. 9.37 Nepal Food Corporation aims at supplying food to far-flung districts, storing food at National Food Security Warehouse and SAARC Food Security Bank, and implementing food exchange program to bring changes in food habit among the people through increased food production at local level. With these objectives, Corporation has supplied 4,767 MT of food to remote districts, procured 19.41 MT of food produced at the local level in Karnali Zone, stored 10,637 MT of food grains at the National Food Security Warehouse, and has maintained a reserve stock of 8,000 MT of food grains in the SAARC Food Security Bank by the first eight months of the current fiscal year.

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9.38 Import of petroleum products had increased by 13.86 percent in 2014/15 as compared to its preceding fiscal year 2013/14 while this dropped by 44.77 percent by the first eight months of the current fiscal year as compared to the previous fiscal year. The reason behind such decline is the obstructions at border points. The supply has been regular after border points returned to normalcy.

Tourism 9.39 Following the issuance of Tourism Policy, 2009, the government of Nepal has put tourism sector on top of its priority considering it’s crucial role in economic development and making its effort towards developing and extending tourism related activities, enhancing quality of service, increasing foreign currency earnings and improving the living standards of the people thereby creating employment opportunities. 9.40 Nepal has set a vision 2020 with a target to bring in 2 million tourists and create employment opportunity to 1 million people by 2020 by developing Nepal as an attractive, recreational and safe tourist destination in the world map by preserving and promoting natural, cultural, biological, as well as man-made heritages of Nepal. 9.41 To meet the targets of tourism sector, Nepal has set objectives such as building infrastructures, creating favorable investment environment, enhancing local levels’ people’s capacity, exploring and expanding potential tourists destinations, enhancing airports’ capacity and strengthening air safety. Table 9 (i) : Major Indicator related with Tourism

Achievement Achievement Major Indicators till Mid-Jan till Mid-Jan 2015 2016 Total Number of Tourist Arrival 790118 538970

Length of Stay Per Tourist (Average Day) 12.44 13.1

Earning from Tourism Sector (“000” USD) 471769 486341 Per Tourist Per Day Spending (USD) 46.4 70 Ratio of Foreign Exchange Earning from Tourism Sector to GDP 2.6 2.9 Number of International Airlines with Regular Flight to Nepal 26 26 Source: Ministry of Culture, Tourism and Civil Aviation

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Source: Ministry of Culture, Tourism and Civil Aviation

9.42 During 2015, though the expenditure per day per tourist is estimated to remain at US Dollar 70 which is higher by US Dollar 23.6 as compared to its preceding year, such expenditure per day per tourist has not increased relatively while looking over the statistics of last ten years. Despite decline in the number of tourists arrival in 2014, foreign currency earnings from tourism sector stood at US Dollar 471.76 million while this rose slightly and reached US Dollar 486.341 million in 2015.

9.43 While observing tourist arrival statistics of last 10 years, this number was following increasing trend until 2012 while it started to decline thereafter. The number of tourist arrival in 2015 except that of Indian tourist arrived via land totaled 538,970 which is 32 percent less than 790,118 tourists of its preceding year. During this period, an average length of stay of tourists visiting Nepal is estimated at 13.1 days against 12.44 days of previous fiscal year. 9.44 Of the total number of tourists visiting Nepal during 2015 by purpose, 71.6 percent of them came for vacation while 2.2 percent for trekking, 2.8 percent for religious trip, 3.9 percent for trade, 2.8 percent for study and employment, 1.7 percent for meetings/ conferences, 4 percent for office visit and 11 percent for other purposes. While analyzing tourist arrival statistics of last 10 years based on their travel purposes, more than two third of tourists have been for vacation recreation/travel, trekking/mountaineering and religious purposes. 9.45 While analyzing the number of tourist arrival by country between the periods of January 2015 and January 2016, top five countries with largest number of tourist arrival have been India (14%) followed by China

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(12%), USA (10%), Sri Lanka (8 %t), and Thailand (6 %). These tourists appeared to have contributed 48 percent of the total number of tourist arrival during this period. These figures during the same period earlier were 17 % for India, 16 % for China, 6 percent for USA, 4.8 % for Sri Lanka and 4.7 % for United Kingdom. 9.46 Lumbini is regarded as the major tourist destination of Nepal. In 2015, the total number of tourist visiting Lumbini stood at 748,294 and of this, 488,852 were Nepalese, 130,262 were Indian while 129,180 tourists were from other countries. 9.47 Nepal Academy of Tourism and Hotel Management (NATHM) was established in 1972 with the objective of producing basic and skilled workforce for tourism sector’s development which is in operation. This Academy has been providing vocational and employment oriented trainings and offering Bachelor in Hotel Management, Tourism and Tourism Management courses and providing Master Degree program in Hotel Management. Through this institution, a total of 168 students have passed out Master of Hospitality Management between FY 2010/11 and FY 2015/16. The number of graduate students of Bachelor of Hotel Management in FY 2014/15 stood at 168 while that of Bachelor of Tourism and Travel Management was 126. In FY 2014/15, a total of 425 individuals received basic, medium and supervisory level trainings. So far, this Academy has imparted various trainings to 508,140 individuals. 9.48 The total number of skilled workforce produced by conducting tourism related academic courses and training programs has reached 60,545 with 3,272 skilled workforce produced in FY 2014/15 and 719 added to the total in FY 2015/16. 9.49 As per the policy to develop Nepal as the best destination in the expedition sector by making mountaineering expedition organized and environment friendly, the number of mountaineers and employment generated through this have been gradually growing since last 10 years. 9.50 The number of mountaineering expedition teams that stood at 320 between January 2014 and January 2015 (2014 AD) reached 380 between January 2015 and January 2016 (2015 AD). The number of mountaineers grew to 4,003 from 2,500 during the same period, but the royalty earning has dropped during the same period from Rs. 53,434,000 to Rs. 33,674, 5000. The earthquake and disruption in supply situation are attributable to such decline in royalty as the length of stay of tourist

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visiting Nepal for mountain expeditions and trekking that relatively require more days to generate more royalty came down in this period. 9.51 There were 2 casinos operating in Nepal until mid-February, 2015 while this number reached 3 by mid-February, 2016. Similarly, 3 mini-casinos are in operation by mid-February 2016. 9.52 Of the hotel registered in classified by Department of Tourism, the number of star hotels was 118 in 2014 while such number dropped to 116 in its subsequent year. The degraded quality in those hotels has been the contributing factor for such decline. The number of tourist standard hotels except those of star hotels including lodge and resorts reached 960 in year 2015 from 957. The number beds in star hotels reached 9,710 with increase of 156 beds in their previous number while those of tourist standard hotels, lodge and resorts rose by 615 in their previous number and reached 27,240. 9.53 In FY 2014/15, the number of registered travel agencies had stood at 2,611 which grew by 175 and reached 2,786 by mid-March, 2016. Likewise, the number of registered trekking agencies were 1,903 in FY2014/15 while it increased by 130 and reached 2, 033 by the same period of FY 2015/16. Similarly, 61 rafting agencies had their registration in FY 2014/15 which increased by 6 in giving a total of 66 by mid-March, 2016. Likewise, the number of registered tourist transport service provider was 59 in FY 2014/15 which rose by 8 reaching 67 by mid-March, 2016.

9.54 In FY 2014/15, a total 3,335 tour guide licenses were issued while this number grew to 3,507 by mid-March, 2016. Similarly, 10,436 trekking guide licenses were issued in FY 2014/15 which grew by 922 reaching a total of 11,358 in mid-March, 2016. Similarly, 131 river guide licenses were distributed in FY 2014/15 while this grew by 56 and reached 187.

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Box 9(b): Major Achievements of Tourism Sector • Immediate Reform Program Implementation Action Plan, 2015 has been implemented with the objective of attaining sustainable development through conservation and reconstruction of archaeological, cultural heritages and tourists’ destinations, strengthening and expansion of aviation sector. • Nepal Tourism Strategic Action Plan (2016-2025) has been prepared. • Foundation stone of Pokhara International Airport laid that plays important role in infrastructure for promotion of Nepal's tourism followed by formal beginning of construction works. Construction, conservation, repair and maintenance of earthquake ravaged touristic and archaeological infrastructures have been carried out through agency-wide coordination by giving them the top priority. Similarly, promotional and publicity related activities are being carried out with support of the private sector to convert negative messages rendered into the favor of the tourism sector. • Of the target set to complete tasks as per Master Plan, 1978 for the development of Birth place of Lord Buddha within next four years, tasks so far completed are: land acquisition in Lumbini project site, preparation of Master Plan, structural design of Lumbini area, constructions of international monastic zone, sacred garden, security wall and canal along the international monastic zone. • Preliminary works are in progress after acquisition of land for Nijgadh International airport. • Upgradation work at Tribhuwan International Airport is underway with the installation of most advanced equipments in the grant assistance of government of Japan with a view modernize and make it well equipped and facilitated. • Based on the concept of Great Himalayan Trail program, preparation is underway with high priority for developing high mountain tourism trail extending from Taplejung to Darchula under the tourism infrastructure program. • Master Plan preparation work carried out by Broader Janakpur Area Development Council for cultural and tourism development of Janakpur area is in final stage • Construction works are underway following the laying of foundation stone at Gautam Buddha International Airport project formally. Aviation service agreement together with review negation with Indonesia, South Africa, UAE, Pakistan, Saudi Arab completed. Airport monitoring and classification indicators prepared and implemented.

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Culture 9.55 With a target to contribute to country’s financial incomes by promoting tourism through conservation and protection of both tangible and intangible cultural heritages thereby giving nationwide exposure, sustainable management initiatives are being carried out by conserving and protecting culture and cultural heritages within the country. 9.56 Annual programs are being conducted through 11 various development committees under the Ministry for the operation and development of religious, cultural and historical sites of national importance through their conservation, protection and sustainable management. 9.57 In FY 2015/16, the government has provided grant assistance to 1,552 various academies and organizations agencies engaged in area of culture for providing sanctuaries to both tangible and intangible cultural heritages such as temples, mosques, churches, monasteries, Gurudwars, and Bihars . 9.58 Collection and lististing of five disciplines of the abstract cultural heritages of the people near to extinction, marginalized, and deprived ethnic groups and communities are underway. They are: a) oral traditions and expressions; b) acts and performing arts; c) social practices, festivities and celebrations; and d) knowledge and practices relating to the nature and universe are underway. Problems and Challenges 9.59 Enhancing domestic production through the production of competitive, qualitative goods of comparative advantage is a challenge. Similarly, increasing both domestic and foreign investments in the industry sector at the desirable level and winning confidence and trust of investors by developing investment friendly environment is another daunting challenge. 9.60 The task of countrywide diversification of trade and transit system by carrying out feasibility studies on Trade and Transit Treaties and Agreements with potential countries is a challenge. It is a challenging task to make trade, transit and supply systems smooth and regular by reducing the impacts of frequent strikes, bandh and border obstructions on trading and supplies.

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9.61 There lies a challenge to create tourism friendly environment amid a situation where both internal and external factors such as natural calamities, internal obstructions causing hindrance to supply system consequently giving immediate and long term impacts to the tourism sector. 9.62 Tasks of meeting the responsibilities by countries as member states of "Safeguarding of the Abstract Cultural Heritages Convention, 2003" and reviving cultural heritage related fairs and festivals, acts and performances, celebrations in traditional manner are equally challenging. 9.63 It is a challenging task to make Nepal’s aviation sector safer by turning the hard works put in making air safety standards and conditions result oriented. Works on construction of airports, installation of modern RADAR system in compliance with the set target and the concept of Nepali Sky Safer Sky should be given high importance.

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10. Housing and Urban Development, Environment and Energy Housing and Urban Development 10.1 There are altogether 4 million 767 thousand housing structures in Nepal where 5 million 427 thousand families reside and 85.26 percent of them live in their own houses while 12.81 percent live in rent. Status of the rest 1.93 percent household is anonymous. Similarly, 67 percent of the families have access to electricity facility and 47 percent have water facility while 62 percent of them have toilet facility. 10.2 The urban population is about 17 percent considering the population living in 58 Municipalities prior to May 2014 to be urban population. The urban population in Nepal comes close to 25 percent when the population living in the larger urban area except Kathmandu Valley combined with those from other urban areas that are yet to receive municipal status. 10.3 Government of Nepal has declared 72 more municipalities in May, 2014, 61 in December 2014 and 26 in October 2015 and with this, the total number of municipalities reached 217. The total urban population would come around 42 percent if the population of all these Municipalities is considered as urban population. 10.4 The public buildings in the country are estimated at around 150 thousand. Services and facilities in government buildings have no similarities. Despite the availability of color code in the public buildings, its effective implementation is yet to happen. There lacks studies if the existing buildings are safer from the earthquake and other calamities. Though policy level decision has been made for constructing unified Government office buildings to make the public services simple, easy and effectively available, its implementation has failed. 10.5 For the integrated infrastructure development of Biratnagar, Butwal and Birgunj Municipalities, 47 Km out of 94 Km of surface canal, 17 Km out of 87 Km of sewage drainage and 55 percent of the processing plant works have been completed with the support of Asian Development Bank. Tender/contract has been called for the construction of the Auto Village in Butwal. 10.6 For the construction of the integrated drinking water project in 3 Municipalities in Kavre Valley 100 Km of the distribution line, 95 percent of the constructions of the 3 tanks at Thakuri Gaun, Kupsdanda 165

and Devisthan and 25 percent of the construction of water processing center at Devisthan Panauti works have been completed. 10.7 For the tender/contract of construction, improvement and extension of the drinking water system of Dharan Municipality drinking water project work is in progress. Construction of 10.87 Km surface canal in Siddharthanagar Municipality has been completed while 37 Km of the total 60 Km of surface canal has been completed in Nepalgunj Municipality so far. Similarly, 5.09 Km of the 7.7 Km of urban road of Nepalgunj has been completed by now. 10.8 Of the total 42 Km of the Biratnagar ring road, track opening of 39 Km has been completed. Construction of regional seminar halls of 400 capacity in Doti and Tikapur and international conference center and exhibition spot of 1 thousand 50 capacity at Butwal is in progress. 10.9 Pursuant to the integrated check post construction work at major border points to facilitate the trade between Nepal and India, construction of such check post in Birgunj is in progress and distribution of the compensation for the acquired land has been completed and is in the process of its handover. Protection of the acquired land and other social infrastructure works has been in progress at Bhairahawa and Nepalgunj. 10.10 As the construction of the well facilitated cities in the mid-hill highway will contribute largely to the financial transformation of the mid hills, the formulation of integrated urban development plan is in the process of completion for the construction of 10 new cities that to be constructed along this highway. 10.11 Subsequent to the devastating earthquake of April 2015, publication and distribution of design catalogue have been carried out after preparing the design of earthquake resistant buildings. For the reconstruction of the home destroyed completely by the earthquake grant support distribution working procedure 2015 ,settlement development, urban planning and building construction related basic construction criterion 2015 (2072) has been prepared and implemented. 10.12 Clean, beautiful and green city is the symbol of development and civilization. The policy has been adopted for making all cities green program to operate as a campaign. Accordingly the infrastructure and structures works for the development of Pokhara, Dharan and Lalitpur Sub-metropolitan environment friendly city with adequate greenery are

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taken forward with priority. Activities like proper management of the waste, discouragement in the use of plastic bags, parks, city garden, ponds construction has been operated at the local level. To make the city waste free and facilitated in cooperation with the local Municipalities in the urban areas including Kathmandu Valley construction of the basic level public toilets is on progress. 10.13 According to the Bagmati clean-up campaign for making Bagmati a sewage- free river, the sewage system joining Gokarna of Kathmandu to Manohara confluence has come into operation. On the left bank of the Dhobikhola River up to the Gopikrishna Bridge, laying of the sewage drainage has been completed while sewage laying on the right bank of the river is estimated to complete by this mid-July, 2016. The tender/contract for the laying 6 Km long sewage pipe from Bishnumati confluence to Mahadev River has been approved following the agreement. 10.14 With a view to manage urban energy consumption, the government has made mandatory provision for the commercial and corporate buildings (including multiplex, star hotel, movie hall) to be built in all municipalities and in VDCs where buildings are required to have their blueprints approved and for residential buildings to be constructed in metropolis and sub-metropolis with plinth area of more than 2,500 sq. ft in a land area of about 3,250 sq. ft that they must install the solar system generating either 25 percent of the total energy that every such building consumes or1,500 watt whichever is higher. 10.15 There is a separate agency for the construction, maintenance/renovation and operation of the government buildings however it is evident that all the agencies have been constructing the government office buildings their own way for this reason it has been difficult to implement the space standard, color code along with the national building code in the government buildings and a single agency could not be made accountable for the government building construction, maintenance/renovation and operation. Environment and Climate change 10.16 Nepal is one of vulnerable countries from the perspective of environmental sensitivity, natural calamity and effect of the climate change. Because of the Sensitive topographical and geographical position and weak geological structure, it has to incur heavy loss of lives and

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properties and environmental problems as a result of anthropogenic effect and natural disaster. As the result additional challenges have to be faced to achieve the Sustainable Development Goals. 10.17 To reduce the huge effects of environment pollution and climate change caused by increasing industrialization and urbanization on one hand it is necessary to hugely reduce the emission of the greenhouse gas and on the other hand appropriate strategy to custom the prevention and reduction of those effects has to be adhered. At the capacity of the party state of the Convention on the climate change Nepal has started the different newest efforts on the climate change sector. 10.18 Of the programs operated under UNFCCC across the world through Nairobi Action Plan, climate change support program being operated in Nepal has been selected as one of the best five successful adaptation practice programs among 170 program countries. 10.19 As per the Environment Protection Act, 4 different projects have been taken action with imposition of fines for failing to carryout Environmental Impact Assessment (EIA) and caused to undergo EIA process. 10.20 Despite government’s ban on the use of plastic bags in Kathmandu Valley, they are still being used. Hence, monitoring task is made extensive and bags failing to meet the set standard confiscated while other necessary actions are being taken pursuant to the Environment Protection Act, 1997. 10.21 Draft of the Environmental Impact Assessment Directive 2015 have been prepared with the objective of unifying the environmental aspect in the plans and projects to be operated in Nepal maximizing the favorable impact and making the social economical benefits to be received from the development proposals sustainable and to make the environmental impact assessment process easy and transparent. 10.22 Draft of the Low Carbon Economic Development Strategy and Gender and Climate Change Strategy has been prepared. National Adaptation Plan (NAP) has been initiated to formulate the national custom plan by mainstreaming the climate change. 10.23 Grant policy, 2015 has been formulated and forwarded to the Council of Ministers for approval with a view to increase access of low income rural households to clean and renewable energy technology even further,

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reduce energy crisis in urban areas and make grants to be provided to renewable energy technologies time relevant for the sustainable development and promotion of renewable energy. 10.24 Agreement has been signed with Civil Bank, NMB Bank and Nepal Investment Bank to provide easy loan for the installation of household solar energy system with a view to reduce the current energy crisis in the urban area. Similarly, the agreement has been reached between 10 industries and solar energy companies for generating 10 megawatt electricity. 10.25 Under “Smoke-Free Bright House Program” 12 thousand 6 hundred 53 improved stoves have been distributed in the household of the earthquake affected districts. Monitoring of the 53 industries and factories in Dhading, Tanahun, Kaski, Rupandehi, Banke, Makawanpur, Nuwakot and Kathmandu has been conducted with the objective of controlling and reducing environmental pollution. 10.26 To make the weather and flood forecast effective, installation of 3 radars in Surkhet, Palpa and Udaypur is on progress. Energy Consumption 10.27 Traditional sources of energy still hold majority when it comes to the necessity and supply of energy. Despite several efforts made towards using renewable energy, traditional energy consumption rate is still high. Likewise, though sources of renewable energy mainly hydropower and solar energy have enormous potentials; energy crisis has continue to grow for failing to capitalize those resources. Table 10(a): Energy Consumption Status ( In ToE: Tons of Oil Equivalent) Source Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/16* (000 toe) (000 toe) (000 toe) Traditional 8983 9104 6069 Firewood 8154 8264 5509 Agricultural Residues 403 408 272 Cow Dung 426 432 288 Commercial 1958.96 5256.90 4609.77 Coal 320 465 192 Petroleum Products 1264 4294.62 4143.46 Electricity 374.96 397.28 274.31 Renewable 291 291.64 291.86 Total 11232.96 14652.54 10970.63 Source: Ministry of Energy * Of first eight months

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10.28 In the first eight months of the current fiscal year the total energy consumption has reached 10,970.63 tons oil equivalent (ToE), while such consumption during the corresponding period of previous fiscal year was 41 percent higher than this. During the same period of previous fiscal year, the energy consumption was 7,781 ToE. While looking at the statistics of the last eight months, the consumption rate of traditional, commercial and renewable energy stood at 55.33 percent, 42 percent and 2.67 percent respectively. Such ratio in previous fiscal year had remained at 62.13 percent, 35.87 percent and 1.99 percent respectively. This observation hints that traditional energy users are slowly attracted towards using petroleum products which are not produced in Nepal but to be imported.

Cow Dung 3%

Electricity 10.29 In the fiscal year 2014/15, the total electricity production stood at 829.19 MW while it reached 847.68 MW during the first eight months of the current fiscal year with the augmentation of 18.49 MW against the current demand of 1,385 MW. Though about 250 MW is being imported from India, the wide gap between the energy demand and supply is attributable to the persistent long hour-load shedding consequently affecting the life of the people and the overall economy. 10.30 By mid-March 2016, transmission line has reached 3216.86 Km with the number of electricity users reaching 2,922,041. During the same period, the electricity distribution line has been extended to 123,977 Km. 10.31 To end the current energy crisis basically within one year, solve completely by 2 years and guarantee energy security by one decade in a

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long-term basis, a concept note with action plan 2015 on National Energy Crisis Reduction and Electricity Development Decade has been implemented upon approval by the Council of Ministers. Table 10 (b): Electricity Demand, Consumption, Production and Physical Structures Description Fiscal Year 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16*

Production (MW) 697.85 705.57 746.00 746.00 829.19 847.68 Transmission Line (Km) 1917.62 1987.36 1987.36 1987.36 2848.86 3216.86 Customer Number 1854275.00 2053259.00 2599152.00 2713804.00 2872015.00 2922041.00 Distribution Line (Km) 89108.86 95815.98 114160.40 116066.64 123827.78 123976.78 Available Energy (GWH) 3389.27 3858.37 4260.45 3092.47 4966.66 3428.90 High Demand (MW) 946.10 1026.00 1094.00 1200.98 1291.10 1385.00 * Of the first eight monthsSource: Ministry of Energy 10.32 River Basin Plan and Hydroelectricity Development Master Plan on major river basins except that on Bagmati River have been formulated while study on strategic environmental and social assessment is being carried out under the grant assistance of World Bank. 10.33 In the fiscal year 2015/16, Nepal Electricity Authority and private sector hydropower companies are provided with licenses to undertake survey works on 14 large and small hydroelectricity projects generating electricity equivalent to 267 MW installed capacity. A total of 14 such licenses have been granted for generating 316 MW of hydroelectricity 9 transmission survey licenses have been issued. 10.34 In the first eight months of the current fiscal year 2015/16, a total of 517 Km of transmission line has been completed including that of 50 transmission line extension projects with transmission capacity of 132 KV and of other voltage levels and that of 82 distribution projects. 10.35 Works including feasibility study on four projects and detail engineering design of 2 projects shall be completed by this year. Identification of 18 projects, detailed engineering design of 4 projects, feasibility and environmental studies on 14 small hydroelectricity projects, those on 10 medium and large hydroelectricity projects, geographical and geological survey and environmental study on 1 water reservoir project, multipurpose feasibility and environmental studies on 1 are in progress.

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10.36 Detailed engineering design and environmental study of Budhiganga hydroelectricity are being carried out. Acquisition of about 90 percent land for project’s infrastructure development work is under process. 10.37 Pancheshwor Development Authority has been formed under Pancheswhor Multipurpose Project upon agreement reached between Nepal and India which is now in operation. Updating of project’s Detailed Project Report (DPR) through consultant is in progress. Under the Saptakoshi multipurpose project, field Investigation work is underway after forming Nepal-India joint office. Letter of Intent (LoI) has been issued for the preparation of detailed study report of Nalsinggad hydroelectricity project after having negotiation with the consultant selected through selection process. Works such as construction of project’s access road, camp, office building and land acquisition are in progress while other necessary survey and study works are being carried out. 10.38 A total of 173 projects including 50 projects on 132 KV and other large transmission line, Distribution and Customer Service Directorate, Production Directorate, Engineering Directorate are in operation in current fiscal year. Renewable energy 10.39 There has been a policy to develop and extend alternative energy technology to contribute to maintaining environment balance, employment generation, and inclusive development by generating renewable/ alternative energy that would contribute 10 percent to the total energy consumption and cover 30 percent of the population having access to electricity within coming 20 years. About 16 percent of the total population is availing electricity service through renewable energy sources. Likewise, about 27 percent of the total population are estimated to have access to clean renewable energy. 10.40 Of the implemented programs in fiscal year 2015/16, a total of 14,351 biogas plants are installed, 1,095 KW of the electricity generated through micro and small hydro electricity projects, 23,994 solar system are installed, 61,576 improved stoves/ovens installed, 308 improved water mills have been installed by the first eight months of the current fiscal year. From the aforementioned program, rural people have been availing electricity service, clean fuel for cooking and technology and drinking

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water among others. Apart from this, There has been significant improvement in rural peoples ’education, health and environment through clean energy. Table 10 (c) : Alternative Energy Usage Status Fiscal Year Major Programs 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Electricity Generated through Micro and 2,453 3,258 3,366 3,288 3,346 1,095 Small Hydro Electricity Project

Solar Domestic Electric System Installation 57,059 35,627 96,495 87,038 103,161 23,994

Solar Dryer/Cooker Distribution 272 202 140 202 30 - Bio-gas Installation 17,907 18,979 17,635 31,512 30,078 14,351 Improved Water Mill Installation 353 971 1,256 341 641 308 Improved Stove Installation 84,168 118,461 120,364 140,662 310,281 61,576 Source: Alternative Energy Promotion Center, *Of First Eight Months Use of petroleum products 10.41 Consumption of Petroleum Products (POL), which is an important source of energy, has been growing day by day. However, its supply could not be made easily available to all. The low supply of petroleum products as a result of border obstruction since the beginning of the current fiscal year left a huge impact which is yet get normal. Consumers are still not receiving petroleum products with ease. Effective management is felt necessary to make import based petroleum products easily available. Table 10 (d) : Detail of Average Daily and Monthly Import of Petroleum Products Fiscal Year 2014/15 Fiscal Year 2015/16* Products Daily Average Monthly Average Daily Average Monthly Average Petrol (KL) 794.09 23822.83 410.08 12302.50 Diesel (KL) 2553.00 76590.08 1270.80 38124.00 Kerosene (KL) 55.01 1650.42 23.75 712.58 A.T.F. (KL) 394.82 11644.67 131.94 3958.17 Total Quantity 3796.92 113708.00 1836.57 55097.25 excluding LPG LPG (MT) 717.42 21522.63 365.35 10960.58 * Based on Statistics up to March 28, 2016 Source: Nepal Oil Corporation 10.42 While observing the import of the petroleum products, the import of petroleum products has dropped in the current fiscal year 2015/16 as compared to that of previous fiscal year. Import of petroleum products other than LP Gas seemed to have dropped by almost half in FY 2014/15. Average daily Import of petroleum products other than LP Gas was

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recorded at 3796.92 KL and 113,708 KL a month last year while such import averaged only 1836.57 KL a day and 55097.25 KL a month in the current fiscal year. Similarly, the average daily import of LP Gas was 717.42 MT and 22522.63 MT a month last year while this fell to 365.35 MT a day and 10960.58 MT a month in average.

Table 10 (e): Consumption details of POL Products Furnace Total Fiscal Petrol(KL) Diesel(KL) Petrol(KL) A.T.F.(KL) L.D.O.(KL) Oil Excluding LPG(MT) Year (KL) LPG 2015/16* 88423 254103 5870 33239 - - 381635 73440 2014/15 283567 901393 18628 139404 - - 1342992 258299 2013/14 251451 811100 19064 123527 - - 1205142 232660 2012/13 221676 716747 24721 115786 258 2450 1081638 207038 2011/12 199749 648513 41808 108908 0 435 999413 181411 2010/11 187641 655128 49495 101314 227 1415 995220 159286 2009/10 162275 612505 55788 82631 238 2589 916026 141171 2008/09 124169 446468 70089 68935 377 2171 712209 115813 2007/08 100842 302706 155216 68938 306 2919 630927 96837 2006/07 101912 306687 197850 63778 179 4558 674964 93562 2005/06 80989 294329 226637 64335 290 3695 670275 81005 Total 1802694 5949679 865166 970795 1875 20232 9610441 1640522 Source: Nepal Oil Corporation *Of First Eight Months 10.43 From consumption perspective, Petrol, Diesel, LPG, Kerosene and aviation fuel occupy major space of petroleum products. Consumption of Petrol, Diesel, LPG and aviation fuel has been growing every year while that of Kerosene is just the opposite. LPG is seemed to have been used as an alternate of Kerosene. In the fiscal year 2014/15, the the share of petrol accounts for 21.11 percent, Diesel 67.12 percent, Kerosene 1.39 percent and ATF 10.38 percent to the total consumption of petroleum products other than LPG. Observing the consumption trend of the first eight months of current fiscal year 2015/16, petrol shares 23.17 percent, Diesel 66.58 percent, Kerosene 1.55 percent and ATF 8.7 percent to the total consumption excluding LPG. The consumption growth rate of the LPG appeared to have remained at 11 to 12 percent for last few years. 10.44 Though the storage capacity of petroleum products has been expanded to sustain their demand for 30 days from exiting 20 days, considering the hardship observed in the supply situation of petroleum products this year, policy decision has been made to expand the storage capacity to sustain their demand for at least three months and works are in progress in this direction. Similarly, works are underway toward making supply system of petroleum products well organized and transparent through development of infrastructures required for their enhanced quality and smooth supply.

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10.45 Processes are underway for the construction of petroleum pipeline from Raxaul, India to Amlekhgunj, Nepal following the signing of ministerial level MoU between Nepal and India on 24 August 2015. Upon completion of the project, the supply of petroleum products is expected to be easy on the one hand while their import cost would comparatively be lower on the other. Problems and Challenges 10.46 There lies a challenge to implement policy that envisages to develop the geographically scattered settlements and that are highly vulnerable from the perspective of natural disaster through well facilitated and safer integrated settlement development approach. Successful implementation of land-use policy by maintaining coordination between the federal states and the local bodies is also challenging task. 10.47 Failure to locate proper construction sites, structures are being built using modern construction tools and materials in absence of technical supervisors and design, rampant use of modern designs instead of using traditional arts and skills, absence of very essential and basic physical infrastructure in residential areas and failure to provide housing facility with basic services and amenities to all have remained as major challenges in urban development and housing sector. 10.48 Tasks of making unorganized ancient cities well equipped with modern infrastructure and facilities, transforming new cities into more advanced and developed cities through increased investment and use of modern technologies, and maintaining coordination among various agencies and institutions involved in urban development for harmonizing the authority and programs have remained a daunting challenge. 10.49 Maintaining harmony between climate change and environment friendly development by making Environmental Impact Assessment (EIA) simple and easy has remained a challenge. Adoption of climate adapted development system for sustainable development and move the technology and development in tandem also pose a daunting challenge. 10.50 The demand of petroleum products has continued to grow for failing to address ever increasing demand of energy through the development of hydroelectricity and renewable energy, thus making the task of reducing trade deficit a challenge. Similarly, creating conducive environment for hydroelectricity development, managing necessary investment, developing transmission line and enhancing capacities of the government agencies to enable them to undertake all these tasks, restructuring the institutions concerned with electricity development and carry out necessary institutional development works have remained a challenge.

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11. Transport and Communication Road Transport 11.1 In the fiscal year 2014/15 6 hundred 48 kilometers of earthen road (new road) construction, 4 hundred 1 kilometers graveled, 6 hundred and 1 kilometers black topped road was upgraded while by the mid-March 2016, 2 hundred 70 kilometers earthen road, 1 hundred 32 kilometers graveled and 92 kilometers black topped roads have been upgraded. Similarly, periodic maintenance of 129 kilometer road has been completed. Table 11 (a): Status of Road Facility Expansion Fiscal Year S. No. Particulars Units 2013/14 2014/15 2015/16* 1 New road construction Km 1180 648 270 2 Upgraded to gravel road Km 685 401 132 3 Upgraded to black top Km 538 601 92 4 Road maintenance (regular and periodic) Km 8200 8908 9200 5 Periodic Maintenance Km 400 350 129 6 Bridge construction Nos 72 73 24 7 Road joining district headquarter Nos 1 (mugu) Source: Department of Road *First Eight Month of 2015/16

11.2 By the end of fiscal year 2014/15 total of 27 thousand 4 hundred 96 kilometers of the road comprising of 11 thousand 7 hundred 98 kilometers black topped, 6 thousand 2 hundred 87 kilometers graveled and 9 thousand 4 hundred 11 kilometers earthen roads had been constructed while by mid-March of the current fiscal year 2015/16 total length of road have reached 27 thousand 9 hundred 90 kilometers comprising of 11 thousand 8 hundred 90 kilometers black topped, 6 thousand 4 hundred 19 graveled and 9 thousand 6 hundred 81 kilometers earthen roads.

Table 11 (b) : Road Facility extended by Department of Road (In Km.) Fiscal Year S. Till 2014/15* Particulars No. Till 2013/14 Till 2014/15 Addition in 2015/16 Share Total (Percent) 1. Black Topped 11197 11798 92 11890 42.48 2. Graveled 6086 6287 132 6419 22.94 3. Earthen (Fair Weather) 9163 9411 270 9681 34.58 Total 26446 27496 494 27990 100

Source : Department of Road *First Eight Months of 2015/16

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11.3 Apart from the departments of road through the programs like rural reconstruction and rehabilitation program operated at the local level, Decentralized rural infrastructure and livelihood improvement project, rural access program, local level roads, bridges and community access improvement program, Constituency development program, national rural transportation strengthening program, local transportation infrastructure regional program and rural community infrastructure development programs road has been constructed.

Table 11 (c) : Extension of Road Network by Local Bodies (In Km) Fiscal Year Description of Road Till 2014/15 2015/16* Total Earthen (Fair Weather) 38898 153 39051 Graveled Road 12548 13 12561 Black Topped Road 1697 72 1769 Source: Department of Road *First Eight Months of 2015/16

Transport Vehicles

11.4 From the fiscal year 1989/90 to the end of fiscal year 2014/15 the number of vehicles throughout the country was 1 million 995 thousand 4 hundred 4 while in the first eight months of the current fiscal year 147 thousand 7 hundred 82 new vehicles were registered and the total number of vehicles have reached 2 million 143 thousand 1 hundred 86. In the current fiscal year in comparison to the first eight months of the last fiscal year vehicle registration have dropped by about 18 percent.

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Table 11(d) : Number of Registered Transport Vehicles Fiscal Year Total Till Types 1989/90 to 2012/13 2013/14 2014/15 2015/16* Date 2011/12 Bus 26875.00 3263.00 2776.00 3737.00 2125.00 38776.00 Minibus/Mini Truck 11979.00 1328.00 1412.00 2270.00 1069.00 18058.00 Crane/Dozer/Excavator/Truck 46860.00 3332.00 2789.00 4236.00 1745.00 58962.00 Car/Jeep/Van 129140.00 9595.00 11372.00 13560.00 10867.00 174534.00 Pickup 12749.00 5422.00 5668.00 6057.00 3734.00 33630.00 Microbus 2478.00 158.00 178.00 932.00 134.00 3880.00 Tempo 7453.00 57.00 17.00 1541.00 13.00 9081.00 Motorcycle 1031880.00 175381.00 163945.00 196383.00 123373.00 1690962.00 Tractor/Power Tiller 73306.00 9795.00 10070.00 10524.00 4675.00 108370.00 Others 6275.00 152.00 116.00 343.00 47.00 6933.00 Total 1348995.00 208483.00 198343.00 239583.00 147782.00 2143186.00 Source: Department of Road * For First Eight Months 11.5 Driving licenses are being distributed in electronic smart card from Transport management office, Bagmati and there is a program of distributing electronic smart card gradually from the other offices. The work on the conversion of the existing number plate of the vehicle into embossed number plate is in the implementation process. Civil Aviation

11.6 Processes for acquisition of about 200 acre of additional land and removal of settlements for the development, extension and upgradation of Gautam Buddha International Airport are in progress. Construction of this airport is likely to complete within the stipulated time since works are in progress as scheduled.

11.7 Of the land owned by Nepal Civil Aviation Authority at Sinamangal in about 10 acre of land the work has proceed for the selection of the appropriate investor to construct an international standard well facilitated five star hotel in the build-own-operate-transfer system.

11.8 The agreement has been reached for the construction of Pokhara International Airport and foundation stone was laid on 14 April 2016.

11.9 To manage the search and rescue operations of the missing airplane, draft on the Airplane Search and Rescue Regulation, 2016 has been prepared. Draft on the Civil aviation Security Regulation, 2016 has been finalized.

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11.10 Installation of the Radar at Bhattedanda of Lalitpur to make the air transportation safer and more reliable has been given continuity.

Table 11(e): Civil Aviation Indicators Major Indicators By Mid-Jan 2015 By Mid-Jan 2016

Nepalese Airlines with International Flights 2 2 International Airlines in Nepal 26 26 Country with Bilateral Air Service Agreement 36 38 Air Seats on Each Side of the Aisle 6500000* 8000000* Number of Domestic Airlines (Fixed wing + 17 17 Rotor wing) Number of International Airport 1 1 Number of All-season Airports 20 22 Total Number of Domestic Airports in Operation 35 32 Source:Civil Aviation

11.11 International flights are being operated by 2 domestic airline companies and 26 foreign aviation companies in Nepal. In the past one year, the number of double-row seats has increased by 1.5 million reaching 8 million. Similarly, 17 airline companies are operating flights inside the country through a total of 32 airports.

Rail Transport 11.12 945 kilometers long East West railroad, 519 kilometers Rashuwagadhi- Kathmandu-Pokhara-Lumbini railroad similarly In accordance with the objective of connecting the bordering Indian cities with the East West railroad the rail transportation work has proceeded. 11.13 Feasibility study of the Mechi - Mahakali East - West railroad has completed and on that basis total of 344 kilometers long railway line comprising of 108 kilometers long Simara – Bardibas, 127 kilometers long Simara - Tamsaria, 65 kilometers long Tamsaria - Butwal, Simara - Birjung link and 44 kilometers long Butwal – Lumbini link Detailed Project Report has been prepared. Out of the aforementioned for the construction track bed and bridge houses of the 30 kilometers of the 108 kilometers long Simara – Bardibas section tender/contract management has been completed and the construction works have started. 50 percent of the work in the first phase 18 kilometers long Bathanaha Katahari and 69 kilometers long Jayanagar – Janakpur – Bijulpura – Bardibas under construction railroad has been completed In the support of Indian Government.

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Information and communication 11.14 Programs are being implemented by the agencies that operate post/mail, telecommunication, publishing, printing and electronic media and film sector which are the backbone of the communication and technology in accordance with the National policy related to these fields, commitments expressed in the international forums, Nepal's related essence and feelings with the objective of bringing effectiveness in the information flow by developing and extending the information and communication sector to the rural areas.

11.15 Report from the working group has been received to transform Radio Nepal and Nepal Television into public broadcasting institution and is in the phase of implementation. In accordance with the work on making the Counter Automation technology friendly the operation of Counter Automation Support Maintenance is on progress at the post office.

11.16 In the settlements to be reconstructed at the worse earthquake affected 14 districts work has proceeded to construct the telecommunication infrastructure necessary for the broadband service in the support of the reconstruction authority by mobilizing the rural telecommunication development fund. In accordance with the work to deliver the internet facility through wireless technology in the places where it is difficult to take the optical fiber working procedure has been prepared to provide the grants of 50 to 70 percent by every District Development Committee in cooperation with the local agencies and implementation has started.

Table 11(f) : Number of License for Audio Visual Fiscal Year Remarks 2011/12 2012/13 2013/14 2014/15 2015/16* FM Radio 475 512 567 638 672 No. of FM Radio Regular Transmission 328 372 423 547 558 ,, Television - 49 78 82 88 ,, Television Regular Transmission 18 23 24 25 25 ,, Cable Television 744 773 827 851 853 ,, DTH 1 1 1 1 1 ,, Licenses for Downlink 106 84 93 133 162 ,, Number of Feature Film Censored# 182 195 222 196 12 8 ,, Number of Commercial Movies Censored# 175 144 132 93 66 ,, Foreign Movies Shootings# 66 82 87 93 71 ,, Source: Ministry of Information and Communication, *For First Eight Months # Counted on every Fiscal Year

11.17 To initiate the laying of the optical fiber on the mid-hilly highway by utilizing the amount from the rural telecommunication development fund for the construction of the smart city the optical fiber cable network

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construction work from Kathmandu to Chiso Bhanjyang of Panchthar has proceeded.

11.18 6 hundred 72 FM radio have acquired permit up to now and 5 hundred 58 are regularly broadcasting. 88 televisions have acquired broadcasting permit and 25 are broadcasting.

Postal service 11.19 The postal service is the oldest in the information and communication sector, used maximum by the general people and has the institutional network up to far rural areas. Department of Postal Service and the offices under it has been providing different services like; postage stamp publishing, postal saving Bank, Money order, Same day Delivery, Express mail and e-post, Tele-centre apart from mails, curriers. Table 11 (g) : Numerical Detail of Postal Service Postal Services Mountain Hill Terai Total Department of Postal Service 1 Regional Postal Directorate 5 District Post Office 70 Area Post Office 170 372 300 842 Additional Post Offices 492 1541 1041 3074 Post Offices operating the Postal Saving Bank 117 Post Offices with Money Order Services 79 Number of Tele-Centers 401 Source: Department of Postal Service, *For First Eight Months Telecommunication service 11.20 As the number of telecommunication service provider and service users have increased and telecommunication services with new, latest modern technology are made available the services in this sector are increasing in quality and quantity. By mid-January total numbers of the telephone customer have reached 29 million 209 thousand 3 hundred 30 and the density of the telephone users has reached 110.25 percent. Table 11(h) : Situation of Telecommunication Service Type of Services 2011/12 2012/13 2013/14 2014/15 2015/16* Total Number of Telephone 16,971,477 21,332,278 24,556,572 28,105,971 29,209,330 Telephone Density 63.76 80.51 92.68 106.08 110.25 PSTN 839,710 850,610 829,413 845,028 846,940 Mobile 15,334,413 1,79,96,125 22,052,602 26,420,645 27,516,055 Limited Mobility 1,080,405 1,546,697 1,672,815 838,556 844,593 GMPCS 1,742 1,742 1,742 1,742 1,742

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Total Internet Subscribers 4,944,479 6,916,138 8,782,936 11,569,294 12,293,132 Internet Density 18.94 26.10 33.15 43.67 46.64 ADSL Internet 95,623 114,534 128,307 134,729 160,006 GPRS 4,683,921 6,476,136 8,341,176 11,088,275 11,779,771 CDMA 1X, EVDO 188,219 232,248 193,317 198,556 199,631 WiMAX 2,566 9,299 13,306 14,345 DialUp (PSTN + ISDN) 15,079 15,380 - 10,294 9,914 Wireless Modem Optical Fibre 46,602 56,900 - 52,132 46,490 Ethernet Cable Modem 17,968 18,374 - 71,989 82,962 VSAT Based Internet - - - 13 13 Source: Nepal Telecommunication Authority *By the end of Mid-Jan 2016 11.21 The number of land line telephone subscribers has reached 846 thousand, 9 hundred forty while that of mobile phone users are 27 million 516 thousand 55. Mobile service has been extended to all 75 districts covering 90 percent of Nepal’s land area. Likewise, the number of internet subscribers has reached 12 million 293 thousand 1 hundred 32 while its density stood at 46.46 percent. Broadband service has been extended to 72 districts. Table 11 (i) : Number of Telephone lines distributed 2011/12 2012/13 2013/14 2014/15 2015/16* Service Providers 2,078,821 3,277,667 10,903,344 12,981,942 13,870,032 Nepal Telecom Limited 76,329 95,675 508,841 524,768 526,274 United Telecom Limited 2,813,824 3,456,975 11,924,552 12,905,513 13,075,450 Ncell Pvt. Ltd. 5,363 5,385 3,095 2,987 2,987 STM Telecom Sanchar Pvt. 149,708 149,698 150,000 366,463 371,148 Ltd. Nepal Satellite Telecom Pvt. 576,503 753,254 1,064,998 1,322,556 1,361,697 Smart Telecom Pvt Ltd 1,742 1,742 1,742 1,742 1,742 Others 5,702,290 7,740,396 24,556,572 28,105,971 29,209,330 Source: Nepal Telecommunication Authority *By Mid-December 2015

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National Information Commission 11.22 As provisioned in Right to Information Acts, 2007, National Information Commission holds the responsibility for protection, promotion, and practices of right to information and it has been playing promotional and treatment role since its inception. A total of 2 thousand information officer were appointed during fiscal year 2014/15 while the task of appointing such officer rose and reached close to 3 thousand during this period. The number of complaints registered in its inception year had stood at 12 while such number grew to 777 and 765 of such complaints have been settled. Print Media 11.23 Department of Information, Gorakhapatra Corporation, National News Agency (RSS) and Nepal Press Council under the Ministry of Information and Communications, have been disseminating information through the print media. Department of Information 11.24 The government of Nepal has assigned responsibilities to the Department of Information for the management of government notices/information, journalist and newspapers. Incredible revolution in information technology has called for a complete change in area of information and journalism. Programs are being conducted with a focus on materializing the rights to information in real sense, development of journalism and dissemination of information on people awareness related activities. Table 11 (j) : Comparative Detail of Newspapers registered Types 2011/12 2012/13 2013/14 2014/15 2015/16 Daily 426 582 599 622 648 Half Weekly 24 33 34 32 32 Weekly 2213 2536 2594 2657 2714 Fortnightly 408 432 442 451 456 Monthly 1981 2014 2061 2115 2161 Two Monthly 237 337 341 349 356 Quarterly 518 564 578 590 604 Trisemesterly 29 31 31 31 33 Half Yearly 72 78 80 84 82 Annually 83 83 87 88 88 Total 5991 6690 6847 7019 7174 Source: Department of Information

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Press Council Nepal 11.25 Press Council Nepal is an autonomous body established for the development of healthy and credible journalism. The Council has formulated journalists’ code of conduct pursuant to functions, duties and power laid out in the Acts which, it has been frequently monitoring. Likewise, it has formed separate task force for the monitoring the code of conduct of electronic media journalists and works relating to this are being carried out. National News Agency (RSS) 11.26 As per the national policy to make people informed, it has been facilitating newspaper media, FM Radio, Television and electronic online media by providing nationwide services persistently through newsline software from 6 am to 11 am. It has been providing paid news and photo service by collecting them from renowned international news agencies including AP, AFP and Xinhua among others through satellite and Internet. Gorakhapatra Sansthan 11.27 Gorakhapatra of today, which initiated print media in Nepal while contributing to the honored growth of Nepali language, is currently publishing five co-publications. It is in the process of getting established as the only dailies in the world that is published in greatest number of language by bringing out multilingual paged -daily newspaper in 30 different languages spoken in Nepal. Similarly, this has set a record in south Asia as one among the six (6) print Medias to publish daily newspaper regularly for more than 100 years, which has been a matter of pride and an asset not only of Nepal but also of entire South Asian countries. Nepal Television 11.28 Nepal Television, as a government owned communication media, has been broadcasting through three channels (national transmission, NTV Plus and News Channel) round the clock. This has extended its terrestrial transmission services across the country by establishing transmission centers in 19 different locations Transmission coverage of Nepal Television on the basis of population is 72 percent while it is 50 percent on geographical basis. Nepal Television can be viewed across the country and in 149 different countries of the world through satellite.

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Radio Nepal 11.29 Transmission of Radio Nepal has covered 87 percent of the total population and 90% of the total landmass. From the linguistic perspective, it has been airing news and programs in a total of 21 languages including 8 languages being aired through national transmission. Printing Department 11.30 Printing Department has been regularly making publications of Nepal Gazette that serves as a Nepal government’s official journal and works are underway to make Nepal Gazettes being published since 1951 to 2013 available through web portal. Motion Picture Sector 11.31 The major policy adopted in the motion picture sector include: conduct or cause to conduct necessary study research for the development and promotion of motion pictures; encourage the private sector for production and release of standard movies; maintain coordination among entrepreneurs in the sector; promote indigenous story, art, culture, language, literature of the nation through the movies; award and honor its creators and performers so as to develop and promote movies; and develop Nepal as an attractive center for international motion pictures as well. The government of Nepal has incorporated this sector as service oriented industry in the Industrial Policy, 2010. 11.32 Environment Impact Assessment (EIA) is being carried out for developing film city in 76 ha. of Dadar Community Forest situated at Lakuri Danda VDC, Ward No. 8 and 9 of Dolakaha district.

Table (k) : Status of Motion Picture Sector

Fiscal Year Title 2011/12 2012/13 2012/13 2013/14 2015/16* License awarded for Nepali Feature Film Production 142 129 183 143 73 (Celluloid, Digital and Video) License for Video Advertisement 98 50 42 45 29 Production License for Domestic Documentary Production 7 8 18 10 12 Recommendation for Nepali Film 76 76 99 94 68 Censor

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Recommendation for the registration of movie making 22 23 29 23 10 industries New Licenses for Movie Exhibition 9 6 7 9 5 Licenses renewed for Movie Exhibition 8 15 45 38 9 Approval for the registration of movie showing 9 2 - - 3 industries Recommendations for bringing and taking back imported movie making instruments by foreign movie 48 45 59 66 49 producers on Board’s Guarantee Movie Exhibition Li cense (Hivision/Celluloid) - 6 7 11 - Recommendations for the censuring of foreign movies 89 77 114 96 54 through Central Censure Committee Recommendation for the imports of movie show 9 16 - 23 7 instruments Approved Charity Shows 20 14 34 21 - Newly issued Movie Distribution Licenses 7 5 15 5 - Renewal of Movie Distribution Licenses 1 1 1 - - Recommendation for the exhibition 11 5 4 8 - of Nepali Motion Pictures Abroad Source: Film Development Board * Of First Eight Months Science and Information Technology 11.33 Various programs are being carried out with the objective of providing contribution to science and technology sector through the enhancement and promotion of scientific knowledge, providing support to the governance system through the means of e-governance, utilizing information technology to the possible extent in social development initiatives by making its access to rural communities among others. 11.34 Drafting of law to carryout regulatory works on the production, utilization, storage and supply of atomic products since there has been no such provision available to carry out regulatory works on such products. Table 11 (l): Information Related Task Carried Out

S. No. Tasks Number Unit Agency- 1 DNS Registration of Government Agencies 1251 wise 2 Web and Application Hosting 570 ” 3 Government Email Provided 102 ” 4 Internet Provided within Singhadurbar 54 ” 5 Server Collocations Services 57 ” 6 E-Gate Pass System within Singhadurbar Provided and Operated 47 ” 7 Training provided related with Information Technology 2400 Trainee 11.35 Electronic portal www.licenseportal.gov.np has been made online with a view to provide necessary information through one door system to the investors to carryout business activities in Nepal. National Portal

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Operational Guideline and Manual on Government Interoperability Framework have been prepared for updating services and information to be provided through national portal. Disaster Recovery Center was designed with a view to protect government information even during natural disaster and other emergency periods, whose construction has been completed.

Problems and Challenges

11.36 Public Procurement Acts implementation in road construction, failure to delegate power on time, tender/contract related problems, environment impact assessment, land acquisition, approval for tree removal, regular maintenance, failure to complete construction projected within specified time, frequent transfer of employees, quality works have remained as both challenges and problems.

11.37 To develop postal service into a contemporary and commercial institution is a challenging task.

11.38 Task of enhancing performance capacity of Printing Department for carrying out printing works of country’s important papers and documents with the country itself has remained a challenge.

11.39 Despite numerical growth in telecommunication sector, extending its services to all district headquarters through the use of optical fiber by improving its quality is a challenge. Likewise, developing infrastructure to extend the use of information technology to schools, health posts and government offices for national development has been a challenge.

11.40 Though Gorakahapatra, Nepal Television and Radio Nepal that stand as a national icon in media sector with national liability to run / broadcast news and programs in various languages and dialect, there lies a challenge for these institutions to play a role of a national transmission institution competing with private media.

11.41 Tasks of creating environment to use youths’ skills, knowledge and talents available within the country, making sustainable and maximum utilization of natural resources with the broader use of science and technology have been a daunting challenge.

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12. Good Governance, General Administration, Peace and Reconstruction

Good Governance

12.1 The government of Nepal has been carrying out a number of programs for bringing good governance in public administration. The government approved Immediate Action Plan 2014 and 39 points Concept Paper relating to Administration Reform and Restructuring have been made public. The constitution of Nepal has adopted the strategy of implementing immediate reform action plan with time table and performance indicators for their effective implementation by complying with basic policy guidelines as outlined in the concept paper. 12.2 Programs and activities initiated earlier like Hello Sarkar and grievance handling; anti-corruption work plan; result based management system in projects of national pride; various monitoring and evaluation committees from central to district levels; and code of conduct of employees related activities are continued with more effectiveness. Works on formulating Acts for carrying out administrative restructuring as provisioned in the Constitution are in progress. Policies and programs have been prepared and executed that are deemed necessary for ensuring effective delivery of public services at doorsteps by effectively managing the transition period. 12.3 Citizen’s Charter with provision of compensation has been put into practice in Departments and offices thereunder that provide services to the people on a daily basis and those that come into their direct contacts. Efforts have been made towards extending the use of information technology in government offices, inclusion of subject relating to information technology in the curriculum of Public Service Commission, making trainings provided through various training providing institutions time relevant and practical aside from making training arrangements for all within specific time frames. 12.4 Efforts are being made towards optimum utilization of available skills and resources by transforming the public administration of Nepal into federal governance system and making it dignified, trustworthy and accountable towards the people thereby delivering clean and reliable quality services. Likewise, initiatives are underway for promoting transparency, accountability, participation, and indiscrimination/fairness in political, administrative, economic, social, and ecological activities of State mechanism. Similarly, attempts are being made towards making

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the formulation, implementation and evaluation procedures of public policy more effective through the adoption of result oriented principle and making all public administrations accountable and service oriented towards people 12.5 Works, such as providing more clarity to scope of works of political and administrative sectors by defining the relationship between them in line with federal structure, ensuring public access to information available with government entities, ensuring the situation for the receipt of timely public services in fair and transparent manner by making them more inclusive, making reward and punishment arrangements based on the work performance of civil servants, establishing moral conduct principle in all government entities by enhancing the moral characters of civil servants, are being carried out. 12.6 Federalism Implementation and Administration Restructuring Coordination Committe has been formed under the chairmanship of Honorable Prime Minister and in coordination of high level Federalism Implementation and Administrative Reconstruction Directive Committee and the Chief Secretary of Nepal Government with a view to accelerate federalism and reconstruction related activities in coordinative manner. Thus formed structures have already started performing their respective works. 12.7 Regional Administrators and Chief District Officers (CDOs) are delegated with power to transfer non-gazzetted (Administration, Miscellaneous and Economic Planning and Statistics Service cadre) employees. With this power, Regional Administrators may transfer employees within districts of their respective regions while CDOs may transfer district level employees within the offices based in their respective districts. Such power has come into force since January 12, 2016. This arrangement is expected to provide relief to the government employees from earlier practice of rushing to Kathmandu Authorities for transfers. 12.8 Applications for all positions of Civil Service Commission’s examination are being accepted online. Policy decision has been issued for individuals receiving pensions as per the prevailing legal provision if appointed in position for public benefits and if in-service employees enjoying dual facilities, to opt within a month for a facility that has higher value. Besides, if he/she was enjoying dual facilities, he/she shall

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be issued with the pension authorization paper only after he/she deposits the excess amount so withdrawn in the consolidated fund. 12.9 A 39 point concept paper action plan has been prepared and implemented with the inclusion of topics like audible citizen’s charter in local languages for making public services simple, transparent, people friendly, providing a handbook to the citizens regarding the concerns like ‘what does government do?’ Listing the documents that are required by citizens to submit as a proof for availing services on the flipside of the application form so that they are well informed of documents required for submission on timely basis. In addition, displaying citizen charters more related to the people like citizenship certificate, passport, land, administration, foreign employment, health, education, agriculture at public places. Conduct one-time public hearing on construction and development, and works relating to local level public infrastructures for making the service delivery qualitative and transparent. 12.10 PM of Nepal webpage has been made online portal for disseminating information between the Prime Minister and Public through the electronic medium.. For implementation of constitutional provisions, Immediate Reform Action Plan, 2015 has been endorsed and brought into implementation by incorporating transition period management, public service delivery, development management, and post earthquake reconstruction works. 12.11 Hello Sarkar program has been introduced in regional administration office of Pokhara from 18th Januarly, 2016 while works are in progress for the extension of this program to district based regional administration offices of Dhankuta, Hetaunda, Surkhet and Dipayal. By mid-March, 2016, total number of grievances, suggestions and information received through ”Hello Sarkar” at regional administration office of Pokhara was 43,944 and of this, 88 percent cases has been settled. Local Good Governance 12.12 As envisaged by the current constitution of Nepal, governance is considered as a major strategic tool to establish a social justice based society by distributing the dividend of democracy among the masses. Structure, activities, and working style of local entities should be disciplined and dignified for making the democratic exercises more organized and institutionalized from the ground level.

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12.13 Despite absence of peoples’ representatives in local bodies, Local Governance and Community Development Program is in operation with the objective of running local bodies and governance in peoples’ maximum participation following decentralization system in people oriented manner. 12.14 Civil institutions have made watch-dog arrangement to make the local governance accountable. In this act, third party surveillance of local entities has been intensified in 66 districts by engaging local civil organizations, and through the Local Governance and Accountable Mechanism in 9 (nine) districts with the Local Bodies Accountability Strengthening Program. 12.15 Activities of Local bodies are being watched by 6,715 ward citizen forums. Altogether, 741 public hearings have been carried out in the first eight months of the current fiscal year. New quality measurement laboratories have been established in 10 districts. In addition, laboratories those were non-operational in 11 districts have been brought into operation by enhancing their capacities. Public Administration and Service Delivery Local Administration 12.16 Tasks are being carried out for making the local administration ethical, capable, strengthened, accountable, and professional for effective service delivery, enhancing capacity of civil services and making them competitive, responsible and accountable. 12.17 Between mid-July 2015 and mid-January, 2016 a total of 347 persons have been arrested on charge of homicide , 47 on charge of robbery, 91 human trafficking, 516 on rapes, 11 on explosives, , 116 on arms and ammunitions . With a view to make security system reliable and trustworthy, a total of 978 CCTVs have been installed in different points and locations including 18 of those in Kathmandu valley Police Head Quarter premises, 266 under Metropolitan Police Head Quarter Ranipokhari, 192 in the Eastern Region, 231 in the Central Region, 227 in mid-Western Region, 38 in the Western Region and 6 in far Western Region. An immediate response team has been deployed on highways to ensure highway security and relief. Traffic actions has been taken to 7,53,516 persons.

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12.18 Code of Conduct relating to gender violence has been issued and implemented for police personnel. Integrated profile on security and crime control has been prepared in 40 districts, while preparation of such profiles in the rest of the districts is underway. Internal Security Policy, 2015 has been formulated for making internal security arrangements more effective. Security arrangement has been made stronger by mobilizing security forces under Terai-Valley Integrated Security Action lan, 2015. 12.19 Preparations are underway for the replacement of Disaster Relief Acts with Disaster Management Act. Disaster Management National Strategy, 2010 is being amended. Operation Manual, 2015 of National Emergency Operation Center has been prepared and implemented. Preparation of operation guidelines for the mobilization of foreign grants at times of huge disasters. Emergency operations that were being carried out through 48 centers including those at all regional development offices and 43 at districts administration offices has now been extended to other 5 district administration offices. Regional warehouses are brought into operation in eastern and mid western development regions while these are being constructed in central, western and far western regions. Warehouse Operation Guidelines, 2015 has been formulated and executed. 12.20 On narcotic drugs, oral replacement therapy guideline is in implementation. Construction of a Narcotic Drugs Treatment and Rehabilitation Center in Pokhara is underway. During this fiscal year, 51 drug abusers have been treated through 3 drugs rehabilitation centers while 50 rehabilitated drug abusers are provided skill oriented trainings. During the first eight months of the current fiscal year, 60 awareness programs against drug abuse have been implemented. In Kathmandu valley alone, one-day Training of Trainers (ToT) and awareness programs against drug abuse have been organized for 195 secondary and higher secondary level teachers and about 1,900 students. Likewise, 2,000 students are provided with orientation while the concerned treatment and rehabilitation center is provided with sum for using 22 rehabilitated drug abusers in treatment process. 12.21 The total capacity of 74 district based detention and child rehabilitation centers stands at 10,608. About 86.25 acre land has been procured for the construction of detention center at Chandi Pokhari, Ward- 3, Bidur Municipality of Nuwakot district with its occupancy of over 5000 detainees with a view to shifting central jail to this site. To construct 192

open jail as per legal provision, about 8.5 acres land in the ownership of Banke detention center is being used. Detention center with the occupancy of 250 inmates at Nawalparasi and Nakkhu is in operation. 12.22 Works are being underway on third country settlements of Bhutanese refugees. By December 31, 2015, a total of 101,222 Bhutanese refugees have been resettled in third countries. Table 12 (a) : Number of Bhutanese Refugees

S.No. Name of Camp/Age Group Female Male Total 1 Beldangi 6549 7210 13759 2 Shanischare 1607 1735 3342 3 Outside Camp 12 21 33 Total 8168 8966 17134 Source: Government of Nepal, Ministry of Home Affair

Table 12 (b) : Number of Bhutanese Refugees Resettled in Third Countries

SN Country Female Male Total

1 Australia 2792 2828 5620 2 Canada 3353 3293 6646 3 Denmark 446 428 874 4 Netherland 163 164 327 5 New Zealand 505 497 1002 6 Norway 338 228 566 7 United Kingdom 184 174 358 8 America 42457 43372 85829 Total 50238 50984 101222 Source: Government of Nepal, Ministry of Home Affair

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12.23 A separate Pigeon Hole Rack has been arranged for keeping property details of employees where such details are being maintained while files maintained at central filing system are being exchanged using bar codes.

Table 12(c): Detail of Civil Personnel S. Fiscal Year Fiscal Year Fiscal Year Fiscal Year Description No. 2012/13 2013/14 2014/15 2015/16* Personnel working in Civil 79802 79653 80187 83393 Service Inside Kathmandu Valley 19644 21550 20659 21438 1 Outside Kathmandu Valley 59885 58252 59528 61955

Officer 16711 14501 19493 21097 Assistant 41696 29115 40591 43417 Non Class 21082 20317 20103 18879 2 Seat Roll Registration 1851 1555 5096 2546 3 Retired Civil Servants 1612 1824 3192 1772 4 Gratuity 101 93 176 132 * of the first eight months Source: Department of Civil Personnel Records

12.24 Information regarding registration of property details, retirement, transfer and promotion are being disseminated through SMS. By the first eight months of current fiscal year, the total number of civil service employees has reached 83,393 of which 67,581 are male while 15,812 are females.

Human Resource Development

12.25 Currently about 19 training institutions are engaged on enhancing knowledge, skill, capacity and efficiency of civil service employees. These institutions are: Nepal Administrative Training Academy; Employees’ Training Academy; Local Development Training Academy; Revenue Administration Training Center; Postal Training Center; Central Cooperative Training Center; Foreign Affairs Studies Academy; Judicial Service Training Center; National Judicial Academy; National Health Training Center; National Center for Education Development;

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Agriculture Training Directorate; Directorate of Livestock Training and Extension; 5 Regional Forest Training Centers; and Land Management Training Center. These institutions have been continuously conducting training programs in their respective areas.

Table 12(d) : Detail of Training Programs Conducted Through Nepal Administrative Staff College

Target Progress Fiscal Year Program No. of Program No of Trainee No. of Program No of Trainee Regular 50 1095 50 1088 2012/13 Paid 50 1037 26 699 Total 100 2132 76 1787 Regular 61 1435 54 1188 2013/14 Paid 92 1823 52 1218 Total 153 3258 106 2406 Regular 74 1735 56 1320 2014/15 Paid 56 1120 30 623 Total 130 2855 86 1943 Regular 44 1095 30 1059 2015/16* Paid 8 160 13 347 Total 52 1255 43 1406 * Of first eight monthsSource: Nepal Administrative Staff College Table 12 (e) : Detail of Regular Training Programs Conducted Through Nepal Administrative Staff College S. Program Target Achievement Remarks No. No. of No. of Duration No. of No. of Duration

Program Trainee (in days) Program Trainee (in days) 1 Long Training In (BAT) General 6 186 1080 6 172 1080 Progress Administration Long Training (BAT) Revenue, In 6 162 540 6 149 540 Account, Audit and Progress Parliament ICT & e-governance 1 20 30 – – –

2 Short Training 3 92 19 1 52 12

A Internal Capacity

Enhancement 1 (20) 1 –

(a) Scholarship/Training - – 1 – (11) (b) New Recruitment B Administration 3 – – 2 – –

C NASC Discussion Series 4 (100) 4 2 2 (120)

D Other 4 2 2 2

Total 28 460 1675 21 373 1636

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B) Paying Program Target Progress Remarks S. NO. Program No. of No. of Duration No. of No. of Duration

Program Trainee (in Days) Program Trainee (in Days) 1 Short 3 60 25 8 231 35 Training Total 3 60 25 8 231 35

Source: Nepal Administrative Staff College * Of first eight months Right to Information 12.26 Right to Information Act, 2007 has delegated authority to National Information Commission for the protection, promotion and practice of right to information With a view to disseminate information to the citizens through public entities with ease, progress towards the order issued by the Commission with respect to the tasks of appointing information officer as provisioned by the Act, making the details public automatically in every three months and maintaining a separate records of information demand has been felt. 12.27 By the end of FY 2014/15, about 2,000 information officers were appointed while the number of appointed officers has been close to 3,000 by the second trimester of current fiscal year 2015/16. The number of individual seeking information in FY 2014/15 was 777 and of this, 765 information seekers have received so. The number of complaints and appeals has reached 620 by the second trimester of the current fiscal year and of this, 745 initial orders have been issued. 12.28 In FY 2014/15, with regard to the application, complaints, and appeals that were received for putting Right to Information in practice on sectoral basis, education sector accounted for 272 such applications, complaints, and appeals, judiciary sector received 4, local bodies 144, administration and communication 100, Health 25, infrastructure development 57, industry and commerce 15, corporation 31 and other sectors received 129 totaling 777.

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12.29 The total number of participants at the orientation program organized by the National Information Commission in 26 districts in FY 2014/15 stood at 2,737. During the same period, a total of 902 participants attended interaction program organized in 10 districts. Likewise 3,810 participants attended interaction program organized at secondary and higher secondary schools in 25 districts . During FY 2014/15, a total of 696 public entities participated in program organized in 28 districts for monitoring of such entities. Peace and Reconstruction 12.30 Local Peace Committees have been constituted and are in operation in all 75 Districts, 136 municipalities, and 2,717 VDCs with the objective of enabling effective implementation of comprehensive peace accord by facilitating peace promotion, peace building and conflict transformation processes while taking Nepal's transition period into serious consideration. Reconstruction and rehabilitation program is carrying out programs in two sectors namely, relief and reconstruction. Distribution of relief, compensation, and financial supports to be provided by the government of Nepal on special occasions are being done through these programs in a transparent and judicious manner. 12.31 Of the total 8,916 physical infrastructures damaged during the armed conflict, construction of 2,901 of them has been completed, while implementation of other such projects is in progress. Similarly, of the total 4,368 physical infrastructures including community buildings, drinking water and irrigation, park, road and school buildings damaged during the conflict period under reconstruction through the Development for Peace program, construction of 184 of them has been completed by the first eight months of current fiscal year 2015/16. 12.32 In the past, Peace Fund was receiving grants from eight donor agencies including European Union, United State Agency for International Development (USAID), Department for International Development (DFID), Germany, Switzerland, Norway, Denmark and Finland together with the government of Nepal, while only EU and USAID have continued their support to the Fund. The Fund has conducted programs/ projects in three phases so far. The first phase (2007-2010) and second phase (2010-2014) programs/projects have been completed while the third phase (2014-2017) of programs/projects are in implementation. During this period, a total of 65 projects were implemented and of this, 60 such projects have been completed while in the third phase, a total of 10 projects including 3 new such projects are in operation. Likewise, 11 projects are in various stages of selection process.

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Table 12(f) : Status of Relief, Financial Assistance, Reconstruction and Rehabilitation

Total **No. of Number *1 st Eight Relief SN Program of 2012/13 2013/14 2014/15 Months of Recipients by Conflict FY2015/16 mid-March Victims 2016 Relief to Dependents of 1 17886 100 174 22 1 14398 Deceased People (Rs. 100,000) Relief to Dependents of 2 12500 0 0 11302 0 11302 Deceased (Rs. 500,000) Relief to Dependents of 3 Disappeared People (Rs. 1400 0 0 1162 0 1162 500,000) Relief to Dependents of 4 Disappeared People (Rs. 1530 42 47 10 0 1530 100,000) Relief Against the damage of 5 17484 1045 109 95 30 9154 personal properties Financial Assistance by 6 percentage to Persons turned into 8191 2996 1810 166 5 8191 Physically Challenged Relief to Abducted Persons (Rs. 7 3142 905 183 7 5 3142 25,000) 8 Livelihood allowance to the Families, Descendants of Martyrs and Injured people of Historical Mass Movement a) Monthly Allowance to the 9 Martyrs’ Families of Historical 26 26 26 26 26 Mass Movement a) Monthly Allowance to the Injured People during Historical 30 28 28 28 28 30 Mass Movement b)Scholarship to the Descendants of Injured in Historical Mass 43 39 41 38 38 43 Movement Financial Support at Rs. 150,000 per Claimant of Persons killed in - 2 1 0 0 59 armed conflict even after CPA. Livelihood Allowance to Mutilated Persons having injuries 10 of 51 percent of their body Parts ( - 744 744 744 744 744 Including First 552, Special 184 and Additional 64) Financial Assistance of Rs. 60,000 each / Rehabilitation 11 620 620 620 620 589 620 Programs for Orphans losing both parents Financial Assistance (Additional 12 Rs. 25,000 each) to the wives of 0 111 38 2 0 651 persons made disappeared. Reconstruction of Damaged 13 8916 255 209 280 31 2901 Infrastructures Projects operated under 14 - 47 32 86 10 184 Development for Peace Program Special Program for Conflict 15 - 413 80 - 493 Affected Area* Source: Ministry of Peace and Reconstruction * Currently program not in operation** including the figures prior to FY2012/13

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12.33 Orientation program on Constitution is being conducted in more than 50 districts at over 200 different places through Local Peace Committees. Truth and Reconciliation Commission By-Laws, 2015 and Investigation on Disappeared Persons By-Laws, 2015 have been approved by the Government of Nepal (Council of Ministers) and the tasks of the Commission are progressing in full swing. 12.34 On the Peace Fund side, agreement with BPKIHS has been signed to run rehabilitation project for conflict affected people, and projects are now in operation. Agreement on Project for the Rehabilitation and Reintegration of Children Affected by the Armed Conflict (CAAC) has been signed and the project is in operation. Service providing organization selection process is underway for the operation of socio-psychological counseling service project in Task Force suggested most conflict affected 10 districts. Problems and Challenges 12.35 Higher number of projects due to great number of damaged structures, difficulties in implementation and monitoring as a result of limited workforce, failure to set timeframe for the reconstruction of infrastructures damaged during the conflict period, and unstoppable growth in the emergence of new projects have remained a problem. 12.36. Provision of easy availability and result oriented services as desired by the public has been a major challenge to the Administration. It is a challenging task to make public administration accountable by enhancing responsiveness and moral conduct in the administration. 12.37. Inability to complete the Peace process and management of conflict even after a long period of signing the comprehensive peace accord has been full of challenges. 12.38 To investigate on serious human right violation and crime against humanity that happened during the armed conflict and bring culprits to justice are other challenging tasks.

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13. Social Sector Education

13.1 The contribution of education sector preliminarily estimated to remain at 6.76 percent to GDP in current fiscal year 2015/16 against 6.59 percent of previous fiscal year. Likewise, the growth rate of this sector is preliminarily estimated to stand at 6.69 percent in current fiscal year in contrast to 3.74 percent growth rate of previous fiscal year 2014/15.

13.2 Education policies and programs have been prepared with the objective of preparing capable, competitive, and ethical human resource dedicated towards national interest thereby making education more scientific, technical, adept and employment oriented. Programs are being carried out with government’s increased investment for promoting and regulating private sector’s investment and making private sector’s educational management service oriented.

13.3 Education sector’s plans should aim at delivering education service through the development of educational management and administrative structures in line with federal structure, completing due tasks to meet millennium development goal, achieving sustainable development goals set after 2015 and graduating Nepal from the status of least developed country to the developing country by 2022.

13.4 Devastating earthquake of April 25, 2015 and its subsequent aftershocks have rendered colossal damage to the education service delivery. Since, more than 9 thousand school buildings have received complete damage directly affecting daily learning of about 1 million children, educational plans should now focus on the recovery and reconstruction of such damaged infrastructures thereby enhancing disaster management capacity.

13.5 The earlier educational plans concentrated on providing equitable access to basic education and progresses were being made accordingly. Now such plans should focus primarily on enhancing access to the secondary and technical education, increasing quality and relevancy of education at all levels, maintaining good governance through increased internal capacity, generating capable, skilled, creative and employment oriented human resource for country’s development by strengthening entire

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educational system through the adoption of inclusive, fair and participatory educational system. School Education

13.6 As per National Census 2011, the gross literacy rate of age group above 6 years is 65.9 percent. The net enrollment rate at primary level has reached 65.9 percent in academic session 2015/16. The gross intake rate and net intake rate in grade-one have reached 136.7 percent and 93.9 percent respectively against respective intake rates of 137 percent and 93 percent of previous academic session. Likewise, there has been gradual improvement in literacy rate as well.

13.7 Under school education, there has been gradual reduction in class repetition rate. In academic year 2015/16, the repetition rates for students of grade 1 and grade 8 percent are 13.9 and 3.9 percent respectively while such rates were 15.2 percent and 4.5 percent respectively for previous academic year. Preliminary early childhood development enrollment rate has reached 85 percent in contrast to 77.7 percent of last academic year.

Table 13 (a): Educational Achievements Based on Educational Indicators (Percent) Achievement Indicators Unit 2011/12 2012/13 2013/14 2014/15 2015/16* 1. Enrollment in Grade 1 New Entrants with % 54.30 55.60 56.90 59.60 62.40 ECED experience Gross Intake Rate % 140.70 137.70 141.80 137.00 136.70 Net Intake Rate % 90.70 91.20 91.60 93.00 93.90 2. Enrollment (Easily Visible Enrollment Rate) ECED/Pre Primary % 72.90 73.70 76.70 77.70 81.00 Basic Education % 123.70 120.10 115.70 117.10 120.10 Secondary % 49.40 51.70 50.40 51.60 57.70 3.Education Net Enrollment Rate Primary Education % 95.1 95.3 95.6 96.2 96.6 Basic Education % 86.6 87.5 86.3 87.6 89.4 Secondary Education (9-12) % 30.6 32.4 33.2 34.7 37.7 4. Teachers With Required Qualification and Trainings (Community Schools) Basic Education % 91.10 91.50 92.50 93.70 95.50 Secondary % 90.10 90.70 91.50 93.00 95.30 5.Education Teachers with Required Certification Basic Education % - 96.90 98.10 98.60 98.80 Secondary % - 98.00 98.70 98.90 99.30 6.Education Student/Teacher Ratio (For Community Schools Based on Approved Teacher Positions)

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Basic Education Ratio 44.0 42.0 41.0 41.0 40.0 Secondary Ratio 36.0 31.0 31.0 30.0 39.0 7.Education Repetition Rate Grade 1 % 21.3 19.9 17.5 15.2 13.9 Grade 8 % 6.0 6.0 4.9 4.5 3.9 8. Survival Rate by Re-constructive Cohort Method Grade 5 % 82.8 84.2 85.4 86.8 87.5 Grade 8 % 67.5 69.6 72.1 74.6 76.6 9. Coefficient of Internal Efficiency Basic Education Ratio 0.66 0.77 0.71 0.73 0.76 10. Learning Achievements (Average Score of Students in Core Subjects) Mathematics:6 0 - - - - Girl : 60 Grade 3 % Boy: 60 Nepali: 63 Girl : 64 - - - - Boy: 63 Maths:53 Girl : 53 - - - - Boy: 54 Nepali:60 Grade 5 % Girl : 61 - - - - Boy: 59 English:54 Girl : 53 - - - - Boy: 54 Maths: 43 - Girl : 41 - - - Boy: 45 Nepali:49 Grade 8 % - Girl : 49 - - - Boy: 48 Social : 49 - Girl : 49 - - - Boy: 50 11. Pass Rate SLC % 47.65 41.57 43.92 47.43 - Higher Secondary (Grade 11) % 38.15 39.94 39.8 47.26 43.87 Higher Secondary (Grade 12) % 47.55 43.39 44.29 44.09 36.37 12. Literacy Rate Age Group (Above 6 Years) % 60.9# 65.9 - - - Age Group (Above 15 Years) % 56.5# 56.5 - - - 13. Literacy Gender Parity index ( 15+ Years) Ratio Ratio 0.62# 0.62 - - - Source: Ministry of Education/ Central Bureau of Statistics * of first eight months #NLSS Report (2010/11) School Management

13.8 In the direct participation of the stakeholder communities the responsibility of the school management and operation has been

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transferred to the local community from fiscal year 2002/03 (2059/60). By the fiscal year 2013/14 (2070/71) 12 thousands 9 hundreds 86 schools in the country have been managed by the community. During the fiscal year 2013/14 (2070/71) alone 2 hundred 32 schools were managed by the community while the management authority of the school has not be conferred in the subsequent years. Pre Primary Education And Child Development Program

13.9 Pursuant to the policy of extending early childhood development centers based in community and schools by the first eight months of the fiscal year 2015/16, 30 thousand 4 hundred 48 early childhood development centers based in community and school are in operation. By the first eight months of the fiscal year 2015/16, 977 thousands 3 hundreds 65 children are benefitted through early childhood development center. Table 13 (b): Status of Pre-Primary Education

Early Added Child Total Child Experience of Child Beneficiary Childhood Fiscal Development Development Development Center Children Development Year Centers Centers among Children (No) Enrolment (No) (No) Enrolled in Grade 1 Rate 2011/12 500 29273 1056430 72.9 54.30 2012/13 262 29535 1053054 73.7 55.60 2013/14 500 30035 1047123 76.7 56.90 2014/15 500 30448 1014339 77.7 59.60 2015/16* - 30448 977365 81.0 62.40 Source: Department of Education *Of first eight months

Source: Department of Education

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13.10 In the last academic session 2014/15 (2071), presence of the children enrolled to the grade 1 attending the early childhood development center was 59.6 percent while in the current academic year it has increased to 62.4 percent. The rate is observed to be increasing every year. Scholarship Program

13.11 Under the scholarship program children of the martyr, conflict affected children, Dalit , highly marginalized and children of the endangered Janajati/indegineous studying in the school are provided with the scholarships at different levels of the school education.. Table 13 (c): Scholarship Made Available To School Students (In Number) Fiscal Year Scholarship 2011/12 2012/13 2013/14 2014/15 2015/16* Scholarship for all girl students studying in 2276479 1907469 1686480 1573220 824589 Grade 1-8 (including Karnali Package 1-10)

Scholarship for Handicapped Students (1-8) 69944 59098 53903 32258 12876

Scholarship for Handicapped Students (9-10) 6193 4841 4055 3392 1026 Scholarship for Specific Targeted Groups (22 86712 106517 77900 77316 19559 Ethnics/1-8) Dalit Scholarship (1-8) 1200816 1000741 870888 765957 408796 Dalit Scholarship (9-10) 75511 79587 75386 75721 32096 Scholarship for Martyr's Children 62 89 99 105 6 Capacity Development and Scholarship for 7886 6882 7655 5459 2973 Kamlari Scholarship for Conflict Victims 8097 7412 6846 5539 262 Remote Scholarship for Student of Mountain 407 437 480 477 712 Hostels

Scholarship for Students of Feeder Hostels 400 399 391 380 441

Scholarship for Students of Model Hostels 222 382 307 431 300

Scholarship for Mountain Boarding School 140 160 180 170 160 Hostel Students Secondary Education Scholarship 59023 58412 55826 57793 28040

Scholarship for Endangered Ethnic People, extremely marginalized including Children of 32703 9252 8552 10577 1921 Free Bonded Laborer, Tiller, Cattle Grazers and Badi (9-10)

Scholarship to Target Groups for Science 76 68 39 45 - Students of Higher Secondary School Level Source: Department of Education *Of first eight months

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Educational Human Resource Development Center

13.12 There is one (1) Educational Human Resource Centre at central level, 29 educational training centres and 46 leading resource centres. Moreover, primary level (1-5) trainings have been conducted through 1 thousand 53 resource centres. Through 29 educational training centres, human resource development oriented programs like professional training; headmaster/principal training for the teachers from grade 6 to grade 10 has been conducted on the regular basis. Teacher Management

13.13 By the first eight months of the current fiscal year 2015/16, teacher license has been awarded to total of 106 thousand 60 individuals including 27 thousands 2 hundreds 16 secondary and 78 thousands 8 hundreds 44 lower secondary level. 9 hundreds 17 teachers in primary level, 2 hundreds 83 teachers in lower secondary level and 3 hundreds 1 teachers in secondary level have been promoted to the upper level under promotion process. Out of 117 thousand 5 hundred 57 applicants in lower secondary level and 44 thousand 4 hundred 3 applicants in secondary level, 1 thousand 8 hundreds 60 teachers in lower secondary level and 1 thousand 3 hundred 26 teachers in secondary level have been appointed under the open competition exam. Curriculum and Textbook Development

13.14 The tasks like development, modification and improvement of the school education curriculum, text books and other educational materials have been conducting by the curriculum development center. It has been conducting the programs like workshops, seminar, discussion, interaction, dissemination related to the effective implementation of the materials developed, modified and improvised by this center along with the research works. School sector reform program (SSRP), Capacity building program for the community schools and education for all child development programs are also being conducted by this center. Martyr and Conflict Affected Children Education

13.15 Through the martyr academy established with the aim of providing school education to the children of the martyr and disappeared, injured and handicapped during the conflict period 5 martyr memorials residential/boarding schools are being conducted at different places in the country. 1 thousand 5 hundreds 59 students are studying in those schools

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in the academic year 2015/16 (2072). Such number was 1 thousand 4 hundreds 17 in the academic session 2014/15 (2071). Table 13 (d): Students Studying at Martyrs Memorial Boarding School (In Number) School Academic Session 2010 2011 2012 2013 2014 2015 Sahid Smriti Boarding School, Sunsari 239 234 262 300 328 342 Sahid Smriti Boarding School, Jiri, 182 200 217 240 205 287 Sahid SmritiDolakha Boarding School, Kaski 208 218 228 240 298 259 Sahid Smriti Boarding School, Manpur, 244 285 350 400 382 421 Sahid SmritiDang Boarding School, Rajpur, Doti 185 169 195 220 204 250 Total 1058 1106 1252 1400 1417 1559 Source: Department of Education Food for Education Program

13.16 Recently the lunch program is being conducted only in 10 districts (Dailekh, Rukum, Doti, Dandeldhura, Achham, Baitadi, Bajhang, Bajura, Darchula and Jajarkot). Until fiscal year 2012/13, girl students motivation program and mother and child health care program was also being conducted. 145 thousands 3 hundreds 50 students are benefitted by this program by the first eight months of the current fiscal year 2015/16.

Table 13 (e) Detail of Food for Education Program

Achievements (Number of Fiscal Year Program Students) Day Snacks/Food Program 132000 2011/12 Girl Student motivation Program 40197 Mother and Child Health Care Program 15497

Day Snacks Program 151701 2012/13 Girl Student motivation Program 50180 Mother and Child Health Care Program 14325

2013/14 Day Snacks Program 141423 2014/15 Day Snacks Program 156000 2015/16* Day Snacks Program 145350 Source: Ministry of Education *Of the first eight months Technical And Vocational Training 13.17 In the fiscal year 2014/15 out of 1 thousand 1 hundred 50 individuals enrolled for the technical S.L.C. (constituent), total production was 3 hundred 72 while by the first eight months of the current fiscal year 2015/16, the numbers are 9 hundred 59 (enrollment) and 2 hundred 53

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(Production) respectively. Likewise in the fiscal year 2014/15 out of 1 thousand 5 hundreds 49 students enrolled in the Diploma Certificate Level (constituent), a total of 5 hundred 5 individuals received the Diploma Certificate Level training. By the first eight months of the current fiscal year, such numbers are 1 thousand 2 hundred 2 (Students enrolled in Diploma certificate level) and 3 hundred 10 (Students received Diploma Certificate level training). Under the technical and vocational training for the targeted class and groups scholarships and other programs have been conducted at the technical S.L.C. level and Diploma/Certificate level. (Detailed description in Annex 13.1)

13.18 Programs like Skill Test Assessors training; Skill Test Manager training, chief trainer’s training has been conducted through Vocational Education and Training Enhancement Project with the financial support of World Bank. Table 13 (f): Vocational Education and Training

Fiscal Year Program Unit 2013/14 2014/15 2015/16*

Skill Test Assessors Training Person 1324 1262 -

Skill Test Manager Training Person 105 101 -

Chief Trainer Training Person 45 25 -

Trainer and Assistant Trainer Training Person 672 515 240

Scholarship to Diploma and Technical Person 844 1738 - SLC studying students

Result Based Short Term Training Person 14335 18558 7490

Voucher Based Short Term Training Person 4495 9808 4775

Skill Training Acquired through informal Person 6227 7025 8086 way

Source: Ministry of Education * Of first eight months

13.19 In the fiscal year 2015/16, total of 8 thousands 8 hundreds 69 individuals' training has been completed including 7 thousands 8 hundreds 39 through the private training institutes and 1 thousand 30 through Council of Technical Education and Vocational Training.

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Non-formal Education and Open School

13.20 Government of Nepal has implemented the regular Education program from the fiscal year 2015/16. to ensure the supplementing the need of the learning for all by providing Education opportunity through the alternative schools to the Individuals left illiterate deprived from the education opportunity and newly literate adults and the children of school age group who remained out of school.

Table 13 (g) : Details of Operational Programs under Nonformal Education

Fiscal Year Program Unit 2013/14 2014/15 2015/16* Class - -

Literacy Class Number of 1344866 1409745 - Participants Class 12000 12000 - Adult Literacy Number of 240000 240000 - Participants Primary Education Extension Program Class 248 248 Informal Primary Education class 526 526 346 Lower Secondary Open School School 37 37 37 Income Generating Group Group 5050 5050 - Subject-Wise Training Number 30962 30962 - Saving and Credit Training Individuals 10100 10100 - Establishment of Community Study Center 212 19 2151 Center Establishment of Informal Education Sector 5 5 5 and Orientation to Informal Education Branch Heads Individuals 80 80 80 Orientation on Program Sector 5 5 5 Implementation Individuals 160 160 160 Review and Feedbacks Sector 5 5 5 Source: InFormal Education Center/Ministry of Education * Of first eight months 13.21 In the fiscal year 2014/15, basic literacy program was conducted intensively in 17 districts including Jhapa, Morang, Saptari, Siraha, Mahottari, Sarlahi, Rautahat, Bara, Parsa, Rupandehi, Kapilvastu, Dang, Banke, Nawalparasi, Kailali and Nuwakot. The program was conducted in the class method in the 17 districts and in other districts; the policy of making illiterates to literate was adopted through the medium mobilizing students.

13.22 In the current fiscal year 2015/16, Regular Education programs have been conducted in all districts of the country. In current fiscal year, there is a target of making literate to total of 146 thousands 10 individuals. By the first eight months of the fiscal year 2015/16, a total of 24 districts; Sindhupalchowk, Lalitpur, Dhading, Chitawan, Syanjha, Mustang,

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Surkhet, Palpa, Arghakhanchi, Gulmi, Pyuthan, Dang, Nawalparasi, Rupandehi, Kaski, Tanahun, Lamjung, Panchthar, Nuwakot, Bhaktapur, Rolpa, Salyan, Darchula and Jajarkot has been declared literate districts. Likewise, in the current fiscal year, 2 hundred 62 V.D.C.s and 11 municipalities in different districts have also declared literate.

13.23 To provide the school level alternative education opportunity to the individuals unable to attend school regularly due to various reasons reading/learning facilities have been provided to the targeted groups through 37 lower secondary level and 84 secondary level open schools. Physical Facility Extension 13.24 Under the Physical Facility Extension program, work on construction of the additional classrooms, maintenance of the schools, improving the environment of the school surrounding like toilet construction, drinking water, fencing has been in progress. By the first eight months of the current fiscal year 3 thousand 7 hundred 48 classrooms were constructed. Likewise, maintenance of 3 thousands 5 hundreds 46 schools has completed during first eight months of current fiscal year. Table 13 (h): School Physical Facility Extension Program Details

Repair Fiscal Year Class Room (No.) External Environment (School No.) Maintenance (School No.) 2009/10 6550 4280 4011 2010/11 4967 4881 300 2011/12 6037 4009 486 2012/13 3694 1000 1000 2013/14 5131 2637 636 2014/15 2546 2956 3690 2015/16* 3748 993 3546 Source: Ministry of Education * Of first eight months

School, Student And Teachers' Detail And Ratio

13.25 In the academic session 2014 (2071), the total number of school units was 34 thousands 8 hundreds 6 while in the academic session 2015, such number has reached to 34 thousands 8 hundreds and 37. Geographically, the proportions of total number of schools in Mountain, Hills, Kathmandu valley and Terai region are 12.11 percent, 50.43 percent, 6.31 percent and 31.12 percent respectively. Out of 34 thousands 3 hundreds 62 primary level schools, the proportions of such schools in

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Mountain, Hills, Kathmandu Valley and Terai are 12.17 percent, 50.73 percent, 6.0 percent and 31.1 percent respectively. The number of schools going through closure or merger in the current fiscal year is 1 hundred 48. Table 13 (i) : Detail of Distribution of Schools by Geographical Regions (In Number) Higher Primary Lower Basic Secondary Total Secondary Geographical Level Secondary Level Level Secondary Schools Level Region (Grade Level (Grade (Grade 9- Level (9-12) (Unit) (Grade 11- 1-5) (Grade 6-8) 1-8) 10) 12) Nepal 34837 34362 15091 34537 8968 3656 9263 Mountain 4222 4184 1613 4215 802 320 809 Hill 17571 17432 6911 17519 3937 1628 3988

Kathmandu 2200 2064 1686 2078 1360 438 1479 Valley

Terai 10844 10682 4881 10725 2869 1270 2987 Source: Ministry of Education Grades from 9 to 12 defined as Secondary Level School by School Sector Reform Program.

13.26 In the academic session 2015 (2072) out of 15 thousands 91 lower secondary level schools, the proportion of such schools in Mountain, Hills, Kathmandu valley and Terai region is 10.6 percent, 45.7 percent, 11.1 percent and 32.3 percent respectively. Likewise, out of 8 thousands 9 hundreds 68 secondary level schools, the proportion of such schools in mountain, hills, Kathmandu valley and terai is 9.9 percent, 43.9 percent, 15.1 percent and 31.9 percent respectively. Out of 8 thousands 9 hundreds 68 secondary schools throughout the country, 8 hundreds 2 schools are in mountain, 3 thousands 9 hundreds 37 in hills, 2 thousands 8 hundreds 69 in Terai and 1 thousand 3 hundreds 60 schools are in the Kathmandu valley alone.

Source: Department of Education 210

13.27 In the academic session 2015 (2072), per school student ratio in primary, lower secondary and secondary level (9-10) is 124, 123 and 105 respectively. In the academic session 2014 (2071), such ratio was 126, 123 and 102 respectively. In the academic session 2015 (2072), per school teacher ratio is 6, 4 and 4 and per teacher student ratio is 22, 35 and 24 at primary, lower secondary and secondary level respectively.

Table 13 (j): Ratio of School, Student and Teacher by Level (Academic Year 2015)

Lower Higher Primary Basic Class Secondary Secondary Ratio Secondary Secondary Class (1-5) (1-8) Class (9-10) Class (9-12) Class (6-8) Class (11-12)

Student/School 124 123 177 105 123 150 Teacher/School 6 4 7 4 5 6 Student/Teacher 22 35 25 24 23 23 Source: Ministry of Education 13.28 In the academic session 2015 (2072), the students per teacher ratio in the community school is 25, 42 and 31 at primary, lower secondary and secondary levels respectively. This ratio was 26, 42 and 30 in the academic session 2014 (2071) respectively. Likewise, in the academic session 2014 (2071) students per teacher ratio in all types of schools (private / government) was 23, 35 and 23 at primary, lower secondary and secondary levels respectively while such ratio is 22, 35 and 24 respectively in the current session. 13.29 In the current academic session 2015 (2072) students per teacher ratio is the least i.e., 3 in the mountains of Western Development Region in both the "community school and private/government school" and such ratio is highest i.e., 73 in the lower secondary level of the community schools in the Terai of the Central Development region. Likewise, in the current academic session 2015 (2072), students per teacher ratio at the secondary level of the community (government) school is the highest i.e., 63 in the Terai of Far-Western Development Region and least i.e., 5 only in the mountains of Western Development Region . (Detailed description in Annex 13.2 )

13.30 In the academic session 2015 (2072), the details of the government, community and privet level school by development region are as follows.

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Table 13 (k): Detail of Different Types of Schools by Development Region

Government Run Community Run Private Run Development Region Lower Lower Lower Primary Secondary Primary Seconda Primary Secondar Secondary Secondar Secondary Level Level Level ry Level Level y Level Level y Level Level Eastern 5578 1577 795 820 850 469 1070 681 449 Central 6743 2105 1155 951 908 566 2147 1729 1418 Western 5867 1589 974 463 805 478 1261 913 644 Mid-Western 3830 981 487 1066 872 407 585 321 200 Far Western 2669 830 391 861 698 406 451 232 129 Total 24687 7082 3802 4161 4133 2326 5514 3876 2840 Source: Department of Education 13.31 In the academic session 2015 (2072), Central Development Region has the most number of schools by region at all levels and category. In the community level Primary schools category, Central Development Region and Far-Western Development Region has more number of schools than Western Development Region. Traditional Schools

13.32 In the academic session 2015 (2072), a total of 9 hundreds 30 traditional schools like Ashram /Gurukul, Gumba (monastery), vihar and Madarasha are in operation. Such number was 8 hundreds 95 in the academic session 2014 (2071). Table 13 (l): Detail of Traditional Schools (In Numbers)

School Level School Traditional School Unit Primary Primary Primary Primary

Madarsha 765 764 27 14 765 Monasteries and Bihar 82 80 8 1 82 Ashram and Gurkul 83 68 23 8 83 Total 930 912 58 23 930 Source: Department of Education Teachers Description

13.33 In the current academic session 2015 (2072), there are total of 302 thousands 7 hundred 76 teachers working in all kind of schools including 105 thousands 3 hundreds 83 female teachers and 197 thousands 3

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hundreds 93 male teachers. In the academic session 2014 (2071), the total number of teachers in all types of schools were 298 thousands 69.

13.34 In the academic session 2015 (2072), the total number of teachers in private school is 84 thousands 1 hundred 43 including 37 thousands 1 hundred 35 female teachers and 47 thousands 8 male teachers. In the academic session 2014 (2071) such number was 82 thousands 1 hundred 31.

13.35 In the current academic session, out of total 64 thousands 4 hundred 63 teachers in the basic level from the private (Institutional) schools; the number of female teacher exceeds the number of male teacher by 1 thousand 4 hundred 19. There are less than one third (31.21 percent) female teachers in the community (Government) schools while in the private schools; there are more than 44 percent female teachers. Table 13 (m): Detail Of Teachers Engaged In Community And Institutional School (In Number) Community School Institutional School Total Level Female Female Female Male Female Female Female Primary Level (1-5) 54522 87451 25856 22390 80378 109841 190219 Lower Secondary Level 7768 29317 7085 9132 14853 38449 53302 (6-8)

Basic Level (1-8) 62290 116768 32941 31522 95231 148290 243521 Secondary Level (9-10) 3438 20896 3596 11761 7034 32657 39691

Higher Secondary Level 2520 12721 598 3725 3118 16446 19564 (11-12)

Secondary Level (9-12) 5958 33617 4194 15486 10152 49103 59255 Total 68248 150385 37135 47008 105383 197393 302776 Source: Department of Education

Source: Department of Education

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13.36 In the academic session 2015 (2072), the number of females involved in the teaching profession have increased in all types of the schools in comparison to the previous academic sessions. However, there is a need of more improvements. Gender equity index of the total number of teachers of all types of schools is 0.64 at basic levels while at the primary and lower secondary level such index is 0.73 and 0.39 respectively. Likewise, the gender equity index of the total number of all kind of teachers working at community schools is 0.53 at basic level. But the data shows that the participation of the female teachers in the institutional/private schools is satisfactory. As per the gender equity index, the female participation at the secondary level is very low comparing to the basic level. Table 13 (n): Gender-Wise Detail of Teachers by Schools and by Levels (Basic Level)

Primary (1-5) Lower Secondary (6-8) Basic (1-8)

Types of School Female Male Female Male Female Male GPI GPI GPI % % % % % %

Share and GPI in total number of teachers (all types 42.3 57.7 0.73 27.9 72.1 0.39 39.1 60.9 0.64 of schools) Share and GPI in total number of teachers in 53.6 46.4 1.15 43.7 56.3 0.78 51.1 48.9 1.05 Institutional Schools Share and GPI in total number of teachers (all types 38.4 61.6 0.62 20.9 79.1 0.26 34.8 65.2 0.53 of community schools based on reporting) Source: Department of Education Table 13 (o): Gender-Wise Detail of Teachers by Schools and by Levels (Secondary Level) Higher Secondary Secondary (9-10) Secondary (9-12) (11-12) Types of School Female Male Female Male Female Male GPI GPI GPI % % % % % % Share and GPI in total number of teachers (all types 17.7 82.3 0.22 15.9 84.1 0.19 17.1 82.9 0.21 of schools) Share and GPI in total number of teachers in 23.4 76.6 0.31 13.8 86.2 0.16 21.3 78.7 0.27 Institutional Schools Share and GPI in total number of teachers (all types 14.1 85.9 0.16 16.5 83.5 0.20 15.1 84.9 0.18 of community schools based on reporting) Source: Department of Education Note: GPI in all types of School from Grade 1 to 12 is 0.53 and number of Female Teacher is 34.8 percent.

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Students Description

13.37 From the academic session 2011 (2068), the enrollment of the students from grade 1 to 10 is in declining trend. Flash report 2015 (2072) has reflected that total of 7 million 66 thousand 7 hundred 12 students enrolled including 6 millions 127 thousands 8 hundreds 15 students at basic level and 938 thousands 8 hundred 97 students at secondary level in the academic session 2015 (2072). In the academic session 2014 (2071), the total number of students enrolled in class (1-10) was 7 million 71 thousands 2 hundred 53. Table 13 (p): Enrollment Status of students in School level (In Number) Level 2011 2012 2013 2014 2015 Primary (1-5) 4,782,885 4,576,693 4,401,780 4,335,355 4,264,942 Lower Secondary (6-8) 1,812,680 1,823,192 1,828,351 1,835,313 1,862,873 Basic (1-8) 6,595,565 6,399,885 6,230,131 6,170,668 6,127,815 Secondary (9-10) 848,569 878,047 896,919 900,585 938,897 Total (1-10) 7,444,134 7,277,932 7,127,050 7,071,253 7,066,712 Source: Department of Education

Source: Department of Education

13.38 In the academic session 2015 (2072), total number of students studying in community and institutional schools from class (1-12) is 7 million 510 thousands 3 hundreds 67. In the academic year, 2014 (2071) such number was 7 million 524 thousands 8 hundreds 50. The ratio of boy/girl students at higher secondary level (11-12) is 52:48. Therefore, access of girl students at higher secondary level is evident by the fact that about 48 percent of the students at this level are girls.

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Table 13 (q): Students’ Enrollment Status by Levels (Academic Year 2015)

Number of Students

Level Girl Students Boy Students Total

Primary (1-5) 2165386 2099556 4264942 Lower Secondary (6-8) 944816 918057 1862873 Basic (1-8) 3110202 3017613 6127815 Secondary (9-10) 478168 460729 938897 Higher Secondary (11-12) 210564 233091 443655 Secondary (9-12) 688732 693820 1382552 Totals of Grade 1- 10 3588370 3478342 7066712 Totals of Grade 1- 12 3798934 3711433 7510367 Source: Department of Education

13.39 In the academic year 2015 (2072), net enrolment rate of the students at primary level (5 to 9 years age group) is 96.6 percent, lower secondary level (10 to 12 years age group) is 77.7 percent and secondary level (13 to 14 years age group) is 57.9 percent. Likewise, gross enrolment rate (including the age groups apart from the aforementioned as well) at primary level is 135.4, lower secondary level is 95.4 percent and secondary level is 75.1 percent. Likewise gender equity index is about 1.03 at each level except grade (11-12). This indicates that there is no discrimination between boy and girl students in school education while number of girl students is more than boy students. Table 11 (r) :Detail on GER and NER

Gross Enrolment Rate Net Enrolment Rate Gender Equity School Level Girl Boy Girl Index Total Boy Students Total Students Students Students (GPI) Primary (1-5) 140.8 130.2 135.4 96.3 96.9 96.6 1.03 Lower Secondary (6-8) 97.4 93.4 95.4 78.9 76.5 77.7 1.03 Basic (1-8) 124.1 116.3 120.1 89.6 89.2 89.4 1.03 Secondary (9-10) 74.7 75.5 75.1 57.3 58.6 57.9 1.04 Higher Secondary (11-12) 37.6 37.6 37.6 16.9 16.4 16.6 0.90 Secondary (9-12) 56.6 56.8 56.7 37.6 37.8 37.7 1.03 Source: Department of Education 13.40 In the academic year 2014 (2071) the total number of students attending S.L.C. in regular front was 405 thousand 3 hundred 38 while in academic year 2015, such number has increased by 12.53 percent and has reached the total of 456 thousand 1 hundred 36. From this year the Application

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Memo has been distributed on the last day of exam from every examination center to correct any errors occurred in the personal details of the students before the results. Moreover, from the current academic session, provision of publishing the S.L.C. results in grading system and authentication provision has been made. Table 13 (s) : Detail of Students appeared and passed out SLC Examination (In Number) Regular Exempted Year Appeared Girl Boy Total Girl Boy Total Appeared 215008 204113 419121 33519 43481 77000 2011 Passed 112627 87087 199714 5195 5612 10807 Percent 52.38 42.67 47.65 15.50 12.91 14.04 Appeared 206190 197746 403936 43764 63483 107229 2012 Passed 96454 71481 167935 3821 4497 8318 Percent 46.78 36.15 41.57 8.73 7.08 7.76 Appeared 199846 195087 394933 54500 79126 133626 2013 Passed 98777 74659 173436 6593 7998 14591 Percent 49.43 38.27 43.92 12.10 10.11 10.92 Appeared 202163 203175 405338 54785 81266 136051 2014 Passed 109043 83224 192267 8700 10078 18778 Percent 53.94 40.96 47.43 15.88 12.40 13.80 2015 Appeared 227328 228808 456136 62381 97036 159417 Source: Office of the Controller of Examination Note:The number of students appeared in technical S.L.C (Regular) has also been added to the number of students appeared in regular SLC of academic year 2015 and such number may be changed after the publication of SLC results.. 13.41 Since the academic session 2014 (2071), S.L.C. examinations on technical front has been conducted in 5 genres. In the academic session 2014 (2071) 3 thousands 2 hundreds 88 students of 1 hundred schools attended the S.L.C. of technical front while in the academic session 2015 (2072) 3 thousands 2 hundreds 55 students of 1 hundred 1 schools have attended the examinations. Table 13 (t): Students appeared in Technical SLC (In Number) Academic Session 2014 Academic Session 2015 S. No. Faculty Boy Girl Total Boy Girl Total 1 Computer Engineering 392 269 661 431 262 693 2 Civil Engineering 542 240 782 549 206 755 3 Electrical Engineering 109 32 141 121 29 150 4 Animal Science 263 178 441 218 184 402 5 Plant Science 731 532 1263 663 592 1255 Total 2037 1251 3288 1982 1273 3255 Source: Ministry of Education

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Higher Secondary Education

13.42 By the academic session 2015 (2072) total of 3 thousands 6 hundreds 69 educational institutions including community, private, ten plus two have acquired affiliation for higher secondary schools level. In the academic session 2013 (2070) was 3 thousands 6 hundreds 59. In the academic session 2013 (2070) none of the educational institutions were awarded affiliation for higher secondary school level while in the academic session 2014 (2071) only 63 educational institutions were awarded affiliation for the higher secondary school level. In the academic session 2015 (2072) only 10 educational institutions were awarded affiliation for the higher secondary school level. (detailed description in annex 13.3) Condition Of The Boy /Girl Students In Higher Secondary School

13.43 In the academic session 2015 (2072) the number of students decreased by 9 thousands 9 hundreds 42 i.e., 2.2 percent in comparison to academic session 2014 (2071) and have reached to the total of 443 thousands 6 hundreds 55. In the academic session 2015 (2072) the number of students studying in grade 11 and 12 are 243 thousands 6 hundreds 63 and 199 thousands 9 hundreds 92 respectively. In the academic session 2005 (2062) the number of students enrolling in the higher secondary level (grade 11) was 100 thousands 6 hundreds 99 only. This indicates that in the duration of 10 years the number of students studying in the higher secondary level has increased by 142 percent. The statistics shows that more than 90 percent of the students passing matriculation get enrolled in the higher secondary level education in recent times.

13.44 In the academic session 2014 (2071), out of total 225 thousands 3 hundreds 73 students attending the annual examinations of grade 11, the passing students were 106 thousands 5 hundreds 17 (47.26 percent) while in the academic session 2015 (2072), out of total 373 thousands 4 hundreds 90 examinees, 163 thousands 8 hundreds 47 (43.87 percent) students have passed. In the academic session 2015 (2072) the passing percentage of the girl students (47.88) is more than the boys students (44.62).

13.45 In the academic session 2014 (2071) out of total 228 thousands 2 hundreds 24 students attending annual examinations of grade 12, passing students were 100 thousands 6 hundred 30 (44.09 percent) while in the academic session 2015 (2072) out of total 383 thousands 6 hundreds 88 students attending examinations, 139 thousands 5 hundreds 62 (36.37

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percent) students passed. In the academic session 2015 (2072) in the grade 12 the passing percentage of girl students is more than the boy students. Scholarship In The Higher Technical Education

13.46 Students passing from the licensed Medical colleges under operation in private resource upon acquiring affiliation from different universities in the country and the students passing the examinations conducted for the study under scholarship to be received from foreign countries have been selected and nominated for the study at no cost/free. In the first eight months of the current fiscal year 2015/16, 2 hundreds 97 students have been nominated and sent for the different technical subjects available in the country. Table 13 (u): The Number of Students Nominated for Different Levels and Faculties (In Number)

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Subject Country 2011/12 2012/13 2013/14 2014/15 2015/16* MBBS 79 203 206 225 196 Nepal BDS 57 54 36 54 43 Nepal BAMS 4 17 8 8 - Nepal BN 11 15 19 12 18 Nepal BPH 8 6 4 4 8 Nepal B. Pharma 13 20 20 19 11 Nepal B.Sc. Forestry 2 5 5 5 - Nepal B.Sc. Nursing 5 17 22 24 21 Nepal Total (A) 179 337 320 351 297 Nepal MBBS 3 12 11 15 - Abroad BDS – 1 - 1 - Abroad PG Medicine – 12 - - - Abroad B.Sc. – 6 1 - - Abroad Engineering

B. Pharma – 13 1 - - Abroad

Total (B) 3 44 13 16 - Abroad Grand Total 182 381 333 367 297 (Nepal+Abroad) Source:(A+B) Ministry of Education *Of first Eight Months Universities 13.47 By the fiscal year 2014/15 the number of colleges under different universities being operated inside the country and the student studying there have declined by 22.1 percent in comparison to the preceding fiscal year and have reached 374 thousands 6 hundreds 47. In the fiscal year

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2013/14 (2070/71) the number was 480 thousands 8 hundreds 91. Because of the huge fluctuations in the number of students studying in Tribhuwan University since the fiscal year 2012/13 (2069/70), the wide change in the number of students is seen. In the fiscal year 2014/15 the number of the students studying in Tribhuwan University alone had decreased by 26.24 percent in comparison to the preceding year.

Source: Ministry of Education Table 13 (v): Campuses under Different Universities and Student Numbers

Campuses Fiscal Year 2013/14 Fiscal Year 2014/15 University Constituent Affiliated Constituent Affiliated Total Constituent Affiliated Total Tribhuwan 60 1053 148141 257200 405341 104188 194802 298990 University Kathmandu 6 15 5635 9074 14709 6157 9695 15852 University Purbanchal 5 126 887 23554 24441 950 22589 23539 University Nepal Sanskrit 14 11 3353 509 3862 2936 476 3412 University Pokhara 5 58 1782 23508 25290 1935 23596 25531 University Lumbini Boudha 1 5 53 203 256 105 110 215 University Agriculture and Forestry 1 - 446 - 446 1565 - 1565 Science University Far Western 1 - 2461 - 2461 1829 - 1829 University Mid Western 1 - 1944 - 1944 2522 - 2522 University BP Koirala Institute of 1 - 1435 - 1435 351 - 351 Health Sciences National Academy of 1 - 465 - 465 546 - 546 Medical Sciences Patan Academy of Health 1 - 241 - 241 295 - 295 Sciences Source: Ministry of Education/ University Grant Commission 220

13.48 By fiscal year 2014/15, 9 universities and 3 recognized universities (B.P. Koirala Institute of Health Science, National Academy of Medical Sciences and Patan Academy of Health Science) have been producing high standard human resources by conducting higher education teaching learning programs in different subjects. Table 13 (w) : Student Enrollment and Production Details in Universities (Fiscal Year 2014/15) (In Numbers)

Lumbini Nepal Level Description Tribhuwan Kathmandu Purbanchal Pokhara Total Boudha Sanskrit

Certificate Enrollment 286 199 - - -- 922 1407 Production 286 - - - - 413 699

Bachelor Enrollment 251580 13654 21335 23473 - 1035 311077 Production 49335 1797 3970 3374 - 705 59181

Masters Enrollment 42939 1331 2204 1948 187 252 48861 Production 12153 424 674 515 - 94 13860

PGD Enrollment - 105 - - - - 105 Production 39 17 - - - 56

M Phil Enrollment 207 431 - 101 - - 739 Production 86 34 - 62 - - 182

Ph. D. Enrollment 313 132 - 9 28 300 782 Production 76 12 - - 6 17 111

Others Enrollment 3665 - - - - 903 4568 Production 207 - - - - 287 494

Total Enrollment 298990 15852 23539 25531 215 3412 367539 Production 62182 2284 4644 3951 6 1516 74583

Agriculture and Forestry Sciences University (Enrollment) 1565 Far Western University (Enrollment) 2522 Mid Western University (Enrollment) 1829 BP Koirala Institute of Health Sciences (Enrollment) 351 National Academy of Medical Sciences (Enrollment) 546 Patan Academy of Health Sciences (Enrollment) 295 Total Enrollment 374647 Source: Ministry of Education/ University Grant Commission 13.49 Statistics have shown that out of the total students studying in different universities in the fiscal year 2014/15 , almost 80 percent of the total number of students was studying in Tribhuwan University alone which is followed by Pokhara University, Purbanchal University and Kathmandu University respectively. Out of the students studying in the recognized

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Universities the largest number, 5 hundred 46 students, are studying in National Academy of Medical Sciences.

Source: Ministry of Education School Teachers Personal Records

13.50 From the fiscal year 2011/12 to the mid March of the fiscal year 2015/16, total of 14 thousands 5 hundreds 21 teachers have retired. In the last fiscal year, the number was 3 thousands 7 hundreds 62 while in the first eight months of the current fiscal year, the number is 1 thousand 8 hundreds 49.

13.51 Until recently personal and employment description of 85 thousand 4 hundred 48 permanent teachers of community schools have been updated. In the first eight months of the current fiscal year, 1 thousand 2 hundred 92 teachers' Seat role entry has been done. In the complete duration of the last fiscal year, the number was 12 thousand 3 hundred 21. In the first eight months of the fiscal year 2015/16, NPR 10 millions 629 thousands 1 hundred 16 has been returned from 78 teachers of community schools who took more payment working more than the age of 60 years.

Table 13 (x): Achievement of Last Three Years

Description Unit 2013/14 2014/15 2015/16* Pension Stated Number 3092 3762 1849 Gratuity Stated Number 111 101 78 Pension Transfer Number 301 345 260 Teachers’ Seat Role Entry Number 654 12321 1292 Source; School Teacher Record Office *Of first eight months

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The Loss in the Educational Sector Because of Earthquake 13.52 The total of 22 thousands 4 hundreds 1 classrooms of 9 thousand 3 hundred 53 schools were completely damaged by the earthquake. Likewise, 14 thousand 24 classrooms has been partially damaged and 18 thousands 9 hundreds 42 classroom has been generally damaged. Similarly, 3 thousands 7 hundreds 73 schools' toilet, 1 thousands 4 hundred 59 schools' compound wall and 1 thousand 5 hundreds 68 schools' drinking water system has been damaged. 54 teachers and 7 hundreds 20 students have lost their lives due to the devastating earthquake.

13.53 For the reconstruction of the schools damaged by the earthquake through the Program Implementation Unit construction of 3 hundreds 2 schools has started in the worse affected districts. Similarly, agreement have been reached with 88 different Non Governmental Organizations, welfare organizations, companies and individuals for the construction of 3 thousands 8 hundreds 67 classrooms of 6 hundred 52 schools and the work has been started. Health Sector

13.54 Share of the health sector in the Gross Domestic Product of the current fiscal year has been estimated to be 1.77 percent. Last year the share of this sector in the Gross Domestic Product was 1.70 percent. Similarly, in comparison to the growth rate of 10.49 percent of the health sector in the last year, health sector is initially estimated to grow by 8.85 percent in current fiscal year.

13.55 To realize the Government's thought of upgrading Nepal from the list of the least developed countries to the developing country by 2022 the services of the health sector has also been received as the main foundation. Likewise, to ensure the healthy life and health promotion of all age groups pursuant to the Sustainable Development Goal government and partner agencies are working being jointly accountable promoting the multilateral cooperation.

13.56 Mortality rate of child under 5 years of age (in thousands) is 38, infant mortality rate (in thousands) is 33, newborn infant mortality (in thousands) is 23, maternal mortality (in 100 thousands live birth) is 190 and total fertility rate is 2.3 in the year 2015 while the number of women delivering in the support of skilled maternity worker is 55 percent. (detailed description in annex 13.11)

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Extension Of The Health Service And Facility

13.57 By the first eight months of the fiscal year 2015/16, there are total of 4 thousand 4 hundreds 96 health institutions including 1 hundred 23 hospitals, 3 thousand 7 hundreds 83 health posts, 3 hundreds 84 Ayurved hospitals and Pharmacies, 2 hundreds 6 primary health centers. The total of 87 thousands 5 hundred 44 human resources are working in those health institutions including 35 thousands 5 hundreds 44 technical and non-technical employees and about 52 thousands (Women health volunteers) Women Community Health Workers (NAGAR). From the fiscal year 2014/15, all the sub health posts have been upgraded to the health posts. Table 13 (y): Details of Health Institutions, Beds and Human Resources

Description Fiscal Year

2010/11 2011/12 /2012/13 2013/14 2014/15 2015/16*

1. Total Health Institutions 4394 4393 4394 4485 4505 4506 a) Hospital 102 105 107 107 116 123 b) Primary Health Post 208 205 204 215 215 216 c) Health Post 1698 2175 2175 2175 3790 3783 d) Ayurvedic Dispensaries 291 293 293 293 384 384 e) Sub- Health Post 2095 1615 1615 1695 - - 2. Hospital Beds 7049 7035 7085 7550 7640 7748 3. Total Human Resources a) Doctors 1798 1654 1654 2154# 2457# 2539 b) Nurses 12681 11756 12550 12250 20346 20423 c) Kabiraj (Traditional Physician) 407 394 394 394 485 485 d) Vaidya 360 360 360 360 451 451 e) Health Assistant (HA, SHA) 8013 8013 8563 11551 11551 11646 f) Women Health Volunteer 52560* 63326 63326 63326 52000** 52000 Workers (M.C.H.W.) Source; Ministry of Health and Population *Of First Eight months ** Phasing out of Sudeni # Including 350 studying under Scholarship

13.58 By the first eight months of the fiscal year 2015/16, total of 3 millions 54 thousands 46 individuals received out patients services and 533 thousands 7 hundreds 71 individuals received emergency services. In the same period of the last fiscal year the numbers were 3 millions 566 thousands 3 hundreds 96 and 327 thousands 8 hundreds 1 respectively.

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Table 13 (z): Health Service Beneficiary Population by Development Regions

By Country/ Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/16* Development Region Admit OPD Emergency Admit OPD Emergency Admit OPD Emergency Nepal/ 322196 3428584 787076 669144 4692146 988888 393661 3054346 533771 National Eastern 119394 728380 203863 145328 799924 174437 62878 575130 92871 Central 134404 1149919 722563 268352 2176544 438734 128118 1458189 217505 Western 97636 865419 157509 159439 978959 198586 146266 707200 134763 Mid Western 47872 301827 67019 54163 355698 79318 36843 157758 38841 Far Western 32890 293039 86122 41862 381021 97813 19556 156069 49791 Source: HMIS, Department of Health Service * Of first eight months

13.59 By the first eight months of the current fiscal year outpatient health services have been delivered 8 millions 905 thousands 5 hundreds 10 times. The number in the same period of the last fiscal year was 10 millions 380 thousands 5 hundred 87.

Table 13 (aa): Details of Outpatient Services by Development Regions

By Country/ Fiscal Year S. No. Development Region 2012/13 2013/14 2014/15 2015/16* Nepal/National 24053836 21661849 20242908 8905510 1. Eastern 4892123 4564745 3915544 1861359 2. Central 8098750 6947996 6610013 2389380 3. Western 5323302 4695147 4820464 2327718 4. Mid –Western 3341358 3267193 2841078 1384796 5. Far Western 2398303 2186768 2055809 942257 Source: Department of Health Service * Of first eight months

Major Achievements Of The Health Services

13.60 Diarrhea respiratory disease control, providing nutrition services especially for the children under the age of five years similarly services like availability of iron tablets, vitamin A for the pregnant women has been done. Similarly, Measles/Rubella immunization/vaccination campaign is being conducted for the children in 75 districts from 9 months to under the age of 15. Likewise, under the extended immunization/vaccination and Polio vaccination program BCG vaccine, Tetanus vaccine, Hepatitis B (third dose) is being provided. In the fiscal year 2014/15, Albendazole Tablets were distributed to the students of grade 1 to grade 10 of the government and private schools under the nutrition program.

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Table 13 (ab) : Detail of Extended Vaccination and National Polio Vaccination Program (In Number)

Fiscal Year S. No. Indicators 2012/13 2013/14 2014/15 2015/16* 1. BCG Vaccine 623659 404259 571395 259191 2. DPT, Hepatitis B (Third Dose) 584727 336960 552247 234481 3. Polio (Third Dose) 584420 335428 550392 229275 4. Vaccination against Measles 553736 228952 517311 229107 5. Tetanus Vaccine 303443 187751 522159 210245 6. Measles-Rubella Vaccine Program 9685099 - - 1093828 7. Women Receiving Iron Tablet 765000 595000 502240 223526 8. Registration of Dysentery Patients 1809033 955006 1548851 619692 9. Zinc and Oral Rehydration Treatment (ORT) 1671610 923119 1315622 509453 10. Treatment of Respiratory 2827804 1701151 2208652 418327 Source: Department of Health Service * Of first eight months

13.61 In the eight months of the current fiscal year 2015/16, BCG vaccine to 259 thousands 1 hundred 91 individuals and DPT, Hepatitis B (third Dose) to 234 thousands 4 hundred 81 individuals have been provided. Similarly, Polio (third dose) to 229 thousands 2 hundreds 75 individuals and Titanus vaccine to 210 thousand 2 hundreds 45 women has been provided. By the first eight months of the current fiscal year 2015/16, 1 million 93 thousands 8 hundred 28 children in 75 districts from the age of 9 months to under the age of 15 years were provided with the Measles- Rubella vaccine. Family Planning, Safe Motherhood And Women Health Volunteers Program

13.62 Under the safe motherhood program, an important part of the reproductive health services, women are provided with the pregnancy test prenatal service and prenatal maternity and post natal services. Diagnosis of the prolepses which is one of the reproductive health's great problem and free health camps are being organized where general treatment and the surgery of the cases that couldn't be managed through the ringpessary has been rendered.

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Table 13 (ac) : Detail of Reproductive Health Program

Unit Fiscal Years Indicators 2012/13 2013/14 2014/15 2015/16* New Family Planning Service Person 599420 623676 668777 301934 Users (Contraceptive Users)

New Family Planning Service Person 52181 37107 30728 15762 Users (Permanent Sterilization) Regular Family Planning Service Users Person 2478000 2514044 2527380 2103510 Users (Long term Contraceptive Users)

complex maternity service referred from remote Person 99 194 57 8 areas

Free Maternity Services Received Person 317000 318208 309220 135117 under Safe Motherhood Program Post-Natal Service (PNC) Person 55650 387392 416842 205226

Districts with Round the Clock Districts 26 56 62 67 Emergency Maternity Service

Screening for Prolapses, ring pessary placement Person 48017 950 900 300 and Preparing cost of Operation Treatment and Surgery on Prolapses Person 4751 4445 1003 362 Source: Ministry of Health * Of the first eight months

13.63 Under the safe motherhood program, an important part of the reproductive health services, in the first eight months of the current fiscal year 2015/16 334 thousand 7 hundred 96 individuals including 319 thousands 34 temporary and 15 thousands 7 hundreds 62 permanent individuals have joined family planning program that affects remarkably in the change of population. Similarly, women are receiving pregnancy, maternity and post natal services through 1 thousand 8 hundreds 2 maternity centers.

13.64 Vital/essential maternity services are being rendered twenty four hour through district level or upper level hospitals in 64 districts. Likewise, under mother security program in the first eight months of the current fiscal year 2015/16, free maternity services has been provided to 135 thousands 1 hundred 17 women. In the complete period of the last year, the number was 309 thousands 2 hundred 20. 27 percent of those having maternity from health institutions are found to take Post Natal Care (PNC). During the first eight month of current fiscal year, for the diagnosis and treatment of the prolepses, 3 hundreds camps were conducted and 3 hundred 62 surgery was performed.

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Tuberculosis

13.65 By the programs conducted in the first eight months of the fiscal year 2014/15, testing of the sputum of the probable/suspected tuberculosis patients and free medical treatment by DOTS technology had been done. During the period 236 thousands 5 hundreds 45 suspected tuberculosis patients' sputum was tested. Similarly, 86 thousands 1 hundred 29 follow up sputum test was done. Likewise, 37 thousand 25 individuals were registered as the patient of first line of tuberculosis. Establishment and operation of the hostel for the MDB TB patients was done and TB basic training was conducted for the medical personnel. Because of the aforementioned services 78 percent of the new tuberculosis patients have been registered and 90 percent successful treatment was done.

13.66 In the fiscal year 2015/16, 170 thousands 8 hundreds 99 suspected patients' sputum was tested. During this period 47 thousands 5 hundreds 44 follow-up sputum test had been performed. Similarly, 2 thousands 3 hundreds individuals have been registered as the first line tuberculosis patients. Epidemiology, Malaria And Black Fever (Kaalajar) Control, Natural Disaster Management Program

13.67 In the fiscal year 2014/15, all the disasters were controlled and managed in 20 epidemic and disaster affected places. Similarly, for the control of Elephantitis/Filariasis, Malaria, Black Fever insecticides was sprayed and the medicated mosquito nets were distributed. Anti Rabies Vaccine was provided to control the Rabies and ASV vaccine was provided to the victims of the snake bite. About 16 millions 200 thousands people from 41 districts were made to consume medicine for the control, prevention and cure of the Fileriasis. Special program was conducted to control the Dengue virus.

13.68 In the first eight months of the fiscal year 2015/16, ARV vaccine was provided to about 60 thousand individuals suffered from mad dog and other animals' bite. Treatment of the 2 thousands patients of snake bite was done. Microfilerimia follow up survey and post MDA in some districts have been done in the Fileriasis alleviation campaign operated districts.

13.69 In the eight months of the current fiscal year 2015/16, 2 hundred 50 speculated cases of Black Fever has been observed. In last fiscal year, 2

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hundreds 23 cases of Black Fever had been observed. To cure the Dengue, a special program to search the habitat of the mosquito and destroy the larvae was conducted. Similarly, in that period surgery of 1 thousand Hydrocele patients and medication to 13 million individuals for the alleviation of the Fileriasis was done. Leprosy

13.70 Test was conducted on 187 thousands 1 hundred 44 patients and neighborhood household under the leprosy program in the fiscal year 2014/15. Similarly, the transport expenses of NPR 1 thousand per individual were distributed to 2 thousand 3 hundred 54 leprosy patients. Dermatology camp was organized 16 times. In the first eight months of fiscal year 2015/16 , field study in the leprosy affected districts and management at the local level and household test of the trained patients and neighbors has been done. During this period 2 thousands 3 hundreds 93 new leprosy patients were identified. 2 thousands 1 hundred 95 patients are in the process of treatment until recently. National Health Education, Information And Communication Program

13.71 In the fiscal year 2014/15, health related television program 'Jeevanchakra' 52 episodes, 'Aama' 26 episodes and 'Thorai Bhaye Pugisari' 26 episodes was telecasted from Nepal Television. During the period, different health messages were broadcasted 4 thousand times before the news cast.

13.72 In the fiscal year 2014/15 'janaswasthya' radio program 156 episodes, 'Chetanaka sworharu' 26 episodes, 'Aama' 26 episodes and health messages 2 thousands 7 hundreds times before the news cast was broadcasted through Radio Nepal. Health messages were broadcasted through different FM Radios in the districts 323 thousands 8 hundreds 80 times.

13.73 In the fiscal year 2014/15, health related interaction program were conducted in 3 thousand 4 hundred 48 places making public participations. School health education program was conducted 13 thousand times. Health messages were broadcasted through private television 3 thousand 6 hundred 87 times and 7 thousand times through running of the video in the 'Sajha' bus. Likewise, for the improvement of the health conditions of the endangered indigenous people 'Raute' and

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'Chepang' awareness outreach program was conducted at their own places.

13.74 By the first eight months of the current fiscal year 2015/16, health related messages have been telecasted 1 thousand 7 hundred times through Nepal Television. Similarly, awareness message on the communicable diseases, 2 thousand 3 hundred 33 times, and non-communicable diseases, 3 thousand 6 hundred 50 times, have been broadcasted through Radio Nepal. Marking of the picture and the message in the packets of the tobacco products has been done. Social Security Program

13.75 In the fiscal year 2014/15, medicines of 25 types from sub health posts, 27 types from health posts, 58 types from the primary health centers and district hospitals were distributed free. Similarly, the free health services through the health institutions up to 25 bed district hospitals were continued. In that period 2 thousands 3 hundreds pharmacies and 1 hundred 6 pharmaceutical companies were inspected. In the first eight months of the current fiscal year, medicines of 27 types from health posts and 58 types from primary health centers are distributed free.

13.76 In the fiscal year 2014/15, 25 eye treatment centers were established and operated through 'Nepal Netrajyoti Sangh'. Surgery of 3 thousand 6 hundred Glaucoma patients was performed for free. Free spectacles were distributed to 5 thousand individuals above the age of 50 from 19 districts of Far Western and Mid Western region.

13.77 In the first eight months of the current fiscal year 2015/16, eye treatment centers were established in the 19 districts that didn't have eye treatment centers. Free spectacles have been distributed to 5 hundred individuals above the age of fifty. Similarly, treatment was provided to 5 hundred individuals with low income by the eye hospital. Eye donation camps have been conducted 36 times. About 17 thousand individuals were provided extended services. Under the social health security program health insurance program has started from Kailali district and is in the process of starting in Baglung and Illam districts.

13.78 In line with the goal of providing the treatment of the heart and kidney for free through 'Sahid Gangalal National Heart Center', 'Manamohan Cardio Vascular Center' and 'Teaching Hospital' to save the children under the age of 15 and the senior citizens above the age of 75 from the

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heart diseases, services are made available. In the fiscal year 2014/15, 137 thousands 5 hundreds heart patients were examined. Heart treatment was rendered to 7 hundreds 93 children below 15 years of age and 2 hundreds 59 senior citizens above the age of 75. Similarly, PTMC to 3 hundred 64 heart patients and free valve to 2 hundred 75 heart patients was distributed. By the first eight months of the current fiscal, year 2 hundred 21 heart patients valve had been distributed for free. In this period, 2 hundred 97 individuals have been provided with free PTMC service. Free treatment has been rendered to 4 hundreds 72 children under the age of 15 and 3 hundreds 55 elders above the age of 75 heart patients.

Table 13 (ad): Social Security Program Detail

Fiscal Year S. No. Indicators 2013/14 2014/15 2015/16* 1 Medicine Distribution: Sub-Health Post (Type) 25 25 - 2 Medicine Distribution: Health Post (Type) 35 27 27 Medicine Distribution: Primary Health Center 3 42 58 58 (Type) Free Health Service to Children, Elderly, Near to 4 Extinction Tribes, Women Health Volunteers From 12757302 - - Hospitals 5 Free treatments for ultra poor and poor 9682588 - - 6 Free treatments for handicapped 5060 - - 7 Free treatments for elderly people 39388 - - Free treatment with heart surgery for children under 8 922 793 472 15 years of age Free treatment with heart surgery for elderly people 9 312 259 355 above 75 years of age Distribution of eye glasses at free of cost to people 10 5000 - - over 50 years of age Souce: Department of Health Service * Of first Eight Months Control Of Aids And Sexual Transmitted Diseases

13.79 In the fiscal year 2014/15, CD4 service was rendered to the HIV infected through 23 places. ART treatment service was given to 11 thousands 89 individuals through 61 ART centers. Community based CB PMTCT service has been extended to 16 districts. In that period, nutritious diet was distributed 4 thousands 2 hundred times to infected taking ARV medicine and pregnant women affiliated to PMTCT program and children below 15 years of age on ARV. Medicines were distributed from 1 hundred 13 ARV centers.

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13.80 In the first eight months of the fiscal year 2015/16, HIV test has been done with 151 thousands 1 hundred 12 individuals. Similarly, HIV test has been done to 1 hundred 45 pregnant women. Extensive HIV control program has been conducted targeting the Migrants and their families at high risks, MSM (Men that have sex with men)/MSW (Male Sex Workers)/TG (Transgender Community)/PWID (Person who inject drugs) and PLHIV (People living with HIV) upon coming into the service agreement with the Non Governmental Organizations. Human Resource Development, Study and Research

13.81 In the fiscal year 2014/15, upgrading training was provided to 88 Senior Auxiliary Health Worker and Auxiliary health workers and 85 senior mid-wives (ANM) and Assistant mid-wives. Skilled maternity training to 34 nurses and Anesthetic assistant training to 1 hundred 8 individuals was provided. Likewise, high altitude sickness trainer training to 40 individuals and TABUCS training to 1 hundred individuals was provided.

13.82 By the first eight months of the current fiscal year, 8 hundred 50 nurses and 2 hundred 50 doctors were provided with medico legal training and implant safe abortion service training. 2 thousand 5 hundred health workers and 1 thousand 5 hundred women health volunteers (Community health workers) were provided with the basic trainings. Sickle-cell Anemia test was conducted on 8 hundred samples collected. MDR TB management training has been provided to 2 hundred 22 health workers.

13.83 In this period 1 hundred 20 health workers were provided with the basic tooth extraction training. 'Panchakarma', Yoga and statistics related training was provided to 62 health workers. Refresher Skilled maternity service training was provided to 33 health workers. Researchers are being conducted on the free health program, mother protection program, Dengue, Bird Flu, communicable disease, traditional medicines, insurance program, non-communicable diseases. National Public Health Laboratory

13.84 In the fiscal year 2014/15, the purchase work of tools and equipment was continued for the bacteriology laboratory service in different district and zone hospitals. Blood transfusion service has been operated in 7 districts.

13.85 By the first eight months of the fiscal year 2015/16 (2071/73) training on testing dangerous viruses including Ebola was provided to the total of 19

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individuals including 4 Koreans and 15 Nepali. 24 BSL3 laboratory service and laboratory in 35 health posts has been operated. Training related to VCT / STI has been provided to lab technicians and lab assistants. Laboratory has been extended in 50 health posts for the testing of the kidney. Transfusion Transmissible Infection screening training has been provided to 60 health workers. Semi- Automatic Biochemist machine has come into operation at 20 hospitals. Ayurvedic Health Service

13.86 In the fiscal year 2014/15 continuing with the treatment and counseling under Ayurvedic, Yunani and Homeopathic methods with the objective of capacity building and producing the skilled human resource in the Ayurved sector rehabilitation service is being conducted through National Ayurved Training and Research Center in Kirtipur. In the last fiscal year free Ayurvedic health service was provided to the senior citizens of 75 districts.

13.87 In the first eight months of the fiscal year 2015/16, different types of orientation trainings related to Ayurved and modern medicine was provided to 2 hundred 32 individuals. Free Ayurved camps have been organized in 75 districts. 'Panchakarma' related service has been extended by Naradevi Ayurved Hospital. Good Manufacturing Process (GMP) has been started at Singhadurbar Vaidyakhana development committee to maintain the quality of the medicine. Nepal Medical Council

13.88 The council has been carrying out the works like registering the medical practitioners acquiring degree/diploma in medicine from nationally and internationally, grants approval to establish new medical/dental colleges within the country and approving the admission of the students and determining the minimum qualification. The council is also carrying out the works like conducting the licensing examinations on the regular basis, investigation on the different types of complains related to the health and medical profession and issue temporary license to foreign medical practitioners based on their qualifications. By 31 December 2015 (16 Poush 2072) total of 17 thousand 2 hundred 65 medical and dental doctors including 11 thousand 2 hundred 44 male and 6 thousand 91 female have been registered at Nepal Medical Council.

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Source: Nepal Medical Council

13.89 After it was made mandatory to acquire the Eligibility Certificate from the council before going to foreign institutions to study MBBS/BDS or equivalent in 2015 alone (till 2 December), total of 8 hundred 93 students including 8 hundred medical and 30 dental have been awarded Under Graduate Eligibility Certificate and 3 hundred 73 individuals were awarded Post Graduate Eligibility Certificate. The total number of Under Graduate Eligibility Certificate and Post Graduate Eligibility Certificate awarded till 2 December 2015 are 7 thousand 1 hundred 99 and 2 thousand 2 hundred 66 respectively.

13.90 By 31 December 2015 (16 Poush 2072), total of 4 thousand 4 hundred 86 specialized doctors of different sectors including 3 thousand 3 hundred 4 male and 1 thousand 1 hundred 82 female have been registered. Table 13 (ae) : Detail of Medical Specialists Registered with Nepal Medical Council (In Number) S. No. Faculty Male (Nos) Female (Nos) Total (Nos) 1 General Practice 179 45 224 2 E.N.T. 105 39 144 3 Psychiatry 86 28 114 4 Anaesthesiology 199 76 275 5 Radiology & Imaging 180 42 222 6 Pediatrics 280 89 369 7 Nephrology 14 4 18 8 m.D.S. 144 87 231 9 T.B. & Respiratory 17 5 22 10 Community Medicine & Public Health 69 27 96

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11 Pharmacology 34 5 39 12 Obst&gyne 138 310 448 13 M.S.(general surgery) 401 24 425 14 Orthopaedic 352 4 356 15 Cardiology 102 6 108 16 Ophthalmology 116 116 232 17 Internal Medicine 435 38 473 18 Clinical Pathology 74 81 155 19 Dermatology & venerology 92 59 151 20 Neurology 21 3 24 21 Gastroenterology 28 1 29 22 Urology 29 1 30 23 Surgical Oncology 19 0 19 24 Forensic Medicine 21 3 24 25 Microbiology 18 16 34 26 Nuclear Medicine 7 0 7 27 Physiology 15 13 28 28 Anatomy 18 7 25 29 Hepatology 1 0 1 30 Bio chemistry 12 6 18 31 Radio therapy 4 3 7 32 Geriatric Medicine 1 0 1 33 Endiocrinology 10 2 12 34 Neurosurgery 20 0 20 35 Ctvs 3 0 3 36 Pediatrics Surgery 6 0 6 37 Emergency medicine 3 0 3 38 Hepatobilary surgery 2 0 2 39 Plastic surgery 2 1 3 40 Rheumatology 0 1 1 41 Cardic Surgery 1 0 1

42 Ortho Dontics 13 13 26 43 Conservative Drntistry & endodontics 3 8 11 44 Oral and Maxilloracial Surgery 9 5 14 45 Prosthondtics 17 6 23 46 Pedodontics 0 3 3 47 Periodontics 4 5 9 Total 3304 1182 4486 Source: Nepal Medical Council Note: By 31st December 2015

Civil Service Hospital

13.91 In the first eight months of the current fiscal year 2015/16, civil service hospital has made the services like; emergency service, family

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medicine, general medicine, maternity and gynecology, dermatology, pediatric, dentistry service, hematology service, nose, Ear, Throat disease, Anesthesia, Radiology service, Diagnostic service available. Likewise, services like; Mental health, Physiotherapy, Family Planning Service, Cancer diagnosis service, immunization service, Ophthalmology service, Pharmacy and High dependency unit, Cardiology service, Day-care service (chemotherapy), Neurology service, Medical ICU, MRI, Mammography, Fluoroscopy, Digital Radiography has been rendered by this hospital regularly.

13.92 URS and LASER service of Urology, Blood Irradiator service, Aphaeresis service and ultraviolet therapy of skin has been operated from the current fiscal year.

Table 13 (af) : Detail of Services Rendered from Civil Service Hospital (In Number) Fiscal Year Description 2011/12 2012/13 2013/14 2014/15 Total Number of Patient 144375 189184 197977 205595 Civil Servant 45675 59235 60173 56668 General Public 98700 129949 137804 148927 Emergency 6508 11313 15055 17554 Indoor 3079 5160 6832 8515 Operation 2003 3673 5196 5488 X-ray 18741 27138 34664 48196 Ultra Sound 10204 16898 24561 35745 Lab Test 268287 411824 504480 58079 Endoscopy 23 472 1429 2038 CT Scan 2398 3869 7855 4789 Source: Civil Service Hospital

Analysis of the Effect on the Health Sector by the Implementation of the Health Related Program

13.93 Because of the positive effect of the programs like family planning, safe motherhood, child health, nutrition, life expectancy at birth has increased. Likewise, the birth rate has been gradually improving. Life standard has been improved due to the increase in the purchasing capacity and decrease in the family expenses by the decline in mother and child mortality rate. The Loses Caused by the Earthquake in Eealth Institutions

13.94 Out of total 7 hundred 84 health institutions in the 14 districts worse affected by the devastating earthquake total of 6 hundred 69 health institutions including 3 hundred 58 completely damaged and 3 hundred 11 partially damaged institutions. The reconstruction work of the

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damaged health institutions has been continued by the government and non-government sector. Women, Children and Social Welfare

13.95 Programs like minimizing the gender based violence, women development program, control of human trafficking and smuggling have been continued from the preceding years for women empowerment. "Anti Witchcraft Crime and Punishment Act 2015" has come into implementation. Street children free campaign has been conducted in Kathmandu Valley in the first phase to make the Kathmandu Valley and other cities in the country street children free. Minimizing Gender Based Violence

13.96 To rescue, protect and rehabilitate the victims of the domestic violence 1 hundred 4 community service centers has been operated in the 17 districts; Jumla, Panchthar, Doti, Kanchanpur, Baglung, Sunsari, Solukhumbu, Nawalparasi, Kavrepalanchowk, Makawanpur, Dang, Sarlahi, Saptari, Tanahun, Bardiya, Rautahat and Pyuthan. In the fiscal year 2014/15, 1 thousand 9 hundred 59 individuals victimized by the domestic violence were provided service while in the first eight months of the current fiscal year 7 hundred 77 individuals has been provided services through those centers. The number was 1 thousand 5 hundred 67 and 6 thousand 2 hundred 82 in the fiscal year 2012/13 (2069/70) and 2013/14 (2070/71) respectively. Women Development

13.97 It is estimated that the size of the disadvantaged women group is 5 million 200 thousand until recently. The number of those women participating in the women development program implemented until now is about 1 million. On the basis of the population of the disadvantaged women this number is approximately 19 percent. The attendance of the women from the Dalit community in the women development program is about 16 percent.

13.98 Under the vocational group development program in the fiscal year 2014/15, a total of 21 thousand 5 hundred 9 women have been benefitted with the capacity of starting up own business at the local level.

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Table 13 (ag): Major Achievements of Women Development

S. No. Name of Activities Unit Fiscal Year 2012/13 2013/14 2015/16* Extension 1. Program Operating Districts No. 75 75 75

2. Program Operating VDCs No. 3,636 3,759 3,140 Program Operating 3. No. 43 71 180 Municipalities Institutional Development 5. Women Groups Formed No. 150,842 172,685 132,928 6. Involved in Group Women Person 807,976 892,474 990,786 6.1 Dalit Person 131,735 142,947 154,003 (Percent) (16.30%) (16.0%) (15.54%) 6.2 Janajatis Person 292,615 302,125 351,824 (Percent) (36.22%) (33.99%) (35.51%) 6.3 Others Person 383,626 447,402 484,959 (Percent) (47.48%) (59.10%) (48.95%) 7. Women Committees Formed No. 15,221 16,612 20,973 8. Women Organizations No. 1,568 1,622 1,717 Registered 9. Women Ad-Hoc organization No. 200 149 147 Resource Mobilization 10. Women’s Group Savings Rs. In Thousand 2,270,921 2,612,596 3,712,315 11. Total Amount in Investment Rs. In Thousand 2,175,168 2,515,525 3,578,119 Source: Ministry of Woman, Childern and Social Welfare *Of First Eight Months

13.99 By mid March (end of Falgun) of the current fiscal year 2015/16, pursuant to the modified building code the construction process of 9 buildings of the women and children office has been moved forward. 46 women organizations have been awarded grant to construct the building.

13.100 By the mid-March of the current fiscal year, under the skill for the vocational group development and vocational development training three days training to 1 thousand 3 hundred 74 individuals, five days village level training to 5 hundred individuals, five days district level training to 1 thousand 7 hundred individuals, seven days district level training to 1 thousand 5 hundred 40 individuals, fifteen days training to 75 individuals, thirty days training to 72 individuals, and ninety days district level training to 20 individuals have been provided. Similarly, 4 thousand 6 hundred 43 individuals were made available with the business establishment expenses grant from NPR 3 thousand 5 hundred to NPR 4 thousand 5 hundred (NPR 7 thousand 5 hundred in 3 earthquake affected districts). 54 organizations were provided with the grant per organization from NPR 150 thousand to 250 thousand in accordance with the

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development investment for the multipurpose program for common vocational services.

13.101 By the mid - March of the current fiscal year, under the women against the poverty campaign, coaching training to 2 thousand 6 hundred individuals and skill and vocational development training to 4 thousand 5 hundred 12 individuals was provided. Business establishment expenses grant has been made available to 4 thousand 5 hundred 82 individuals. Inter-organization study visit was done for 1 hundred 5 individuals.

13.102 By the mid-March of the current fiscal year, under the adolescent girls' multi dynamic development, ten days a life-worth living training was provided to 4 hundred 50 adolescent girls. 40 centers have been upgraded as the adolescent girl information and counseling center. Similarly, in this period skill and vocational development training has been provided to 4 hundred 50 adolescent girls. Business establishment expenses grant has been provided to 4 hundred 20 individuals.

13.103 Under Freed 'Kamalari' empowerment free 'Kamalari' group has been formed under women organization in 42 groups. Coaching to 7 groups and skill and vocational development training along with the business establishment expenses grant has been made available to 180 individuals.

13.104 Under the social awareness against 'Chhaupadi' (exclusion during monthly period of girl) practice, 'training of trainers' training to 20 adolescent girls in Bajhang District and gender sensitive training to 2 hundred 10 individuals from school management committee members, guardians and teachers was provided. Similarly, training on the effects of the 'Chhaupadi' practice on the society was provided to 2 hundred 10 traditional witch doctors and guardians.

13.105 Emergency protection service center in 25 districts; Gorkha, Kavrepalanchowk, Dhading, Bhaktapur, Lalitpur, Kathmandu, Sindhuli, makawanpur, Okhaldhunga, Dolakha, Ramechhap, Sindhupalchowk, Nuwkot, Rasuwa, Solukhumbu, Khotang, Chitawan, Lamjung, Kaski, Tanahun, Syanjha, Gulmi, Palpa, Baglung and Parbat and Socio psychology counseling centre in 5 districts; Gorkha, Okhaldhunga, Makwanpur, Kathmandu and Dolkha has been established. Human Trafficking And Smuggling Control

13.106 By the first eight months of the current fiscal year, 1 thousand 4 hundred 70 women rescued from being trafficking were provided services through

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rehabilitation houses operated in 8 districts. The number was 3 hundred 27 in the same period and 9 hundred 19 in the complete period of the last fiscal year.

Table 13 (ah): Service Rendered Through Rehabilitation Center

Fiscal Year S. No. Districts 2014/15 2015/16* 1. Chitwan 90 105 2. Rupandehi 231 320 3. Sindhupalchwok 13 27 4. Kailali 28 46 5. Parsa 165 336 6. Banke 114 182 7. Kathmandu 18 26 8. Jhapa 244 387 9. Kolkatta High Commission Office 16 41 Total 919 1470 Source: Ministry of Women, Children and Social Welfare *Of first eight months Children And Adolescents

13.107 To ensure the respectful and meaningful participation of children 22 thousand 4 hundred 57 child clubs are formed and facilitated for the operation throughout the country. 431 thousand 9 hundred 60 children are actively affiliated to these child clubs.

13.108 Total of about 16 thousand 4 hundred children including about 7 thousand 9 hundred 89 boys and about 8 thousand 4 hundred 11 girls are protected in the 5 hundred 77 orphanages / children home operated in 44 different districts for the children who are abandoned and requiring special care and protection.

13.109 By the first eight months of the current fiscal year, 10 organizations have been selected to rescue, protect and manage 2 hundred street children in the Kathmandu Valley and to implement the street children rescue, protection and management guidelines to move ahead with in cooperation with the concerned government agencies and nongovernment organization.

13.110 In the first eight months of the current fiscal year, total of 8 thousand 1 hundred 77 children were distributed with the financial relief including NPR 5 thousand per person to 6 thousand 3 hundred 75 children and NPR 4 thousand per person to 1 thousand 8 hundred 2 children from 14 240

districts affected by the earthquake. The number of the children affected by the earthquake is about 40 thousand 36 according to the latest statistics received from the aforementioned districts.

13.111 For the overall development and protection of the children and adolescents early/child marriage prevention and minimizing campaign has been conducted in different 31 districts having more early/child marriage. To prevent and control the trafficking and smuggling, children trafficking and smuggling prevention awareness program has been conducted in 23 districts bordering with India. With the view of child protection, family awareness programs in 9 districts of Karnali zone and other backward areas with less awareness and awareness program in 6 districts having more incidents of child sexual abuses and rape has been conducted.

13.112 For the rescue, protection, search and family reunion, rehabilitation and reintegration of the children lost, found and found abandoned, children search coordination center has been established since 2006 as a part of the Nepal Police and toll free number 104 has been operated.

13.113 In the first eight months of the current fiscal year 2015/16, total of 3 hundred 36 children including 1 hundred 97 boys and 1 hundred 39 girls were reunited with the family. Similarly, 77 children are protected at orphanage /children home during this period. Table 13 (ai): Details of Missing, Found after Missing and Found Unattended Children

Fiscal Year (for Eight Months) Description 2014/15 2015/16 Missing 333 625 Found After Missing 164 210 Found Unattended 208 209 Reunited with Family 88 336 Protected at Orphanage 107 77 Escaped from Orphanage 13 6 Source: Central Child Welfare Committee

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Chart 13 (h) : Detail of Lost and Protected Children in the first eight month of Fiscal Year 2015/16

Source: Central Child Welfare Committee

13.114 In the past years child helpline number 1098 was being operated in Kathmandu, Makawanpur, Chitawan, Kaski, Morang, Udayapur, Lamjung, Rupandehi, Banke, Bardiya, Surkhet, Dailekh and Kailali districts while in the current fiscal year 2015/16, the helpline is being operated in 11 districts except Bardiya and Dailekh. During this period total of 2 thousand 4 hundred 41 children including 1 thousand 2 hundred 13 boys and 1 thousand 2 hundred 28 girls in the risky situation were emergency rescue and relief was made available through the free child helpline number 1098 operated in aforementioned district and psychological counseling and family reunion was done. The number in the fiscal year 2014/15 was total of 4 thousand 69 including 2 thousand 1 hundred 84 boys and 1 thousand 8 hundred 85 girls.

Source: Central Child Welfare Committee

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13.115 By the first eight months of the current fiscal year 2015/16, total of 5 hundred 77 orphanage/children homes are in operation in different 44 districts in the country. There are 16 thousand 4 hundred children including 7 thousand 9 hundred 89 boys and 8 thousand 4 hundred 11 girls are taking shelter. In Kathmandu valley alone there are 3 hundred 53 children home are in operation and total of 10 thousand 28 children are taking shelter.

13.116 According to the central child welfare committee it was assumed that there are 1 hundred 6 street children under the age of 15 years in 20 different places of the Kathmandu Valley in fiscal year 2014/15. The number is more than 50 percent of the total persons living in the streets of Kathmandu valley (assumed the minimum of 1 hundred 84 and maximum of 2 hundred). Most of the street children are assumed to be living in Gaushala, Pashupati, Chabahil and Tilganga areas. Inter Country Child Adoption

13.117 Inter country adopted child management development committee has been formed pursuant to the Inter country adopted child management development committee (formation) order, 2010. Through this committee in the first eight months of the current fiscal year, 2 adopted children has been provided. Senior Citizen

13.118 Total of 9 hundred 60 senior citizens including 6 hundred 21 female and 3 hundred 39 male have been receiving free services from the elderly home at five development regions for the protection of the senior citizens. 73 senior citizen homes and 72 senior citizens day care center are in operation in partnership in different places. Social security allowance of NPR 1 thousand monthly has been made available to the senior citizens of and above 70 years of age (60 years for the people from Karnali zone and Dalit community). Efforts have been made for the effective implementation of the provision of reservation and discount in transport for the senior citizens. Physically Challenged Person

13.119 Community based rehabilitation program, one month CBR workers training, awareness programs through Radio and Television and day service and residential rehabilitation program has been conducted in partnership with organizations for the physically challenged person at all

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districts. Recently physically challenged related helpdesk has come in operation at all women and children office in the 75 districts. Rehabilitation and hostel facility for the women with physical impairment has been managed.

13.120 Listening CD and Cassette to increase the access of the blinds in the education, rehabilitation and care of the intellectually challenged people, support in the rehabilitation of the mentally challenged people, support materials production and distribution support program has been conducted at all five development regions (CBR, Biratnagar; National Handicapped Fund, Kathmandu; Green Pasture Hosptal, Kaski; Handicapped empowerment and communication center, Banke; and Nepal national Social Welfare organization, Kanchanpur).

13.121 Residential rehabilitation centers are in operation in Central region and Far-western region for the completely disabled physically challenged people recently. Identity card has been distributed to the people from different disability sectors related to the completely disabled, very disabled, moderately disabled and general disability.

Table 13 (aj): Disability Identity Card Distribution Details

No. of Identity Card Distributed till Fiscal year 2014/15 S. NO. Type of Identity Card Female Male Total 1 Red (Complete Disability) 20678 15922 36600 2 Blue (Sever Disability) 22458 31772 54220 Yellow (Moderate 3 22650 32736 55386 Disability) 4 White (Mild Disability) 15880 22592 38472 5 Unspecified Type - - 14110 Source: Ministry of Women, Children and Social Welfare

Source: Ministry of Women Children and Social Welfare

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Social Welfare (Non Governmental Organization)

13.122 In the eight months of the fiscal year 2015/16, 5 hundred 67 programs of the Non Governmental Organization and 62 programs of International Non Governmental Organization has been approved by Social Welfare Council.

Table 13 (ak) : Social Welfare Council registered institutions and approved programs

Fiscal Year Description Unit 2012/13 2013/14 2014/15 2015/16* Non Governmental Number 573 655 567 567 Organization International non- Number 75 53 112 254 governmental organization Approved Programs 567 (a) NGOs Number 1138 1312 1242 62 (b) INGOs 75 53 85 Approved Amount (a) NGOs Rs. in 8735990 11022085 1310380 6218108 (b) INGOs Thousands 2601753 3483846 12291337 24853000 Source: Ministry of Women, Children and Social Welfare *Of the first eight months Drinking Water and Sanitation

13.123 It is very essential to have adequate access to the clean and safe drinking water and sanitation remained on the main basis of healthy human society and social development. National water plan, 2005 has the target of making the basic level drinking water service and sanitation facility available to all the Nepali people by 2017.

Table 13 (al) : Basic Drinking Water and Sanitation Status

Target set by National Water Project 2005 Achievement Indicators Upto 2015 2012 2017 2027 (Percent)

Basic Drinking Water Service (As percent total beneficiaries) 90.0 100.0 - 85.0

Basic Sanitation (As percent of total beneficiaries) 90.0 100.0 - 81.0

Upper-medium level Drinking water l (As percent of total 15.0 27.0 50.0 15.3 beneficiaries)

Source: Department of Water Supply and Sewerage

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13.124 Sanitation movement has been taken ahead as a social movement to reach the goal of declaring Open Defecation Free Area by 2017. Until recently 2 thousand 96 VDCs, 86 Municipalities, 34 districts have been declared Open Defecation Free. In the current fiscal year 3 hundred 22 VDCs, 14 Municipalities, 8 districts have been declared as Open Defecation Free. Table 13 (am): Status of Drinking Water and Sanitation, Rural and Small Town Drinking Water

S. Fiscal Year Particular Unit No. 2012/13 2013/14 2014/15* 1 Drinking Water and Sanitation No. 1137 1138 - Project Beneficiary Number Person 1193,481 3350,000 45,000 2 Completed Schemes under Successive No. 2239 -- - Projects Beneficiary Number Person 1122,293 -- - 3 Drinking Water and Sanitation Improvement Expansion Project Person 770,463 442,000 - (Beneficiary Number) 4 Completed Drinking Water Processing No. 99 992 - System Beneficiary Number Person 776,300 116,196 - 5 Community Community Rain Water Rain Water Community Rain Harvesting Harvesting Water Harvesting Rain Water Harvesting Project No. Project 4 Project 6 and Project 1 and 4 and 16 20 Community Community Community School School School

Beneficiary Number (Students and Person 12839 4000 500 Pilgrims) 6 Declaration of Open Defecation Free Zone (A total of 2096 VDC, 86 Municipalities and 34 Districts has been declared as Open Defecation Free Zone)

(a) VDCs No. 5528 2289 3322 (b) Municipalities No. 77 559 114 (c) Districts No. 77 112 88 Source: Department of Water Supply and Sewerage * Of First Eight Months 13.125 To promote the public toilets in the Open Defecation Free declared areas post ODF programs are being conducted and the policy of promoting the toilets in the public places before the declaration of the Open Defecation Free area in the areas that not been declared has been adopted. In addition, organizing the complete cleaning/sanitation program in cooperation and participation with the concerned agencies and stakeholders and to develop the Open Defecation Free area solo

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cleaning/sanitation program has been operated. Because of the complete cleaning/sanitation program improvement in the environment has been observed by Open Defecation Free reduction in water, land and air pollution. 13.126 By the first eight months of the current fiscal year 32 tube wells has been fitted in Rautahat and Dhanusha districts to solve the problem of Arsenic in the drinking water in Terai districts.

13.127 By the first eight months of the current fiscal year, additional 45 thousand people have benefitted from the drinking water and sanitation program. Under this program, a total of 2 thousand 7 hundred 66 projects are in operation. Melamchi Drinking Water

13.128 Melamchi drinking water project is a comprehensive inter-watershed drinking water supply project. This project has the objective of solving the long time drinking water problem of the Kathmandu Valley by diverting the Melamchi River flowing through Sindhupalchowk district to Kathmandu Valley. With the objective to meet the demand of the drinking water of the urban area of Kathmandu Valley the project in the first phase, the capacity of the project can be increased gradually, is targeted to bring in 170 million liters of water every day to the Kathmandu Valley through 26.5 kilometers of tunnel from the headwork constructed at Ribarma in Sindhupalchowk District's Helambu VDC's Melamchi river to Sundarijal of Kathmandu District. The target is to bring in 170 million liters of water from each river, Yangri and Larke, total of 510 million liters of water in the second and third phase of the project.

13.129 In the first eight months of the current fiscal year, 1.544 kilometers of the tunnel construction has been completed. Until now construction of the total of 14.57 kilometers tunnel in the different sections of the main tunnel has been completed. The construction of the 2 hundred 4 meters of diversion tunnel required for construction of head works has also been completed.

13.130 The construction work of the processing center with the processing capacity of 85 million liters of water daily is in progress. RCC work of 15 thousand 4 hundred cubic meters has been completed through various

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units of the water Processing Center. So far, 77.50 percent of the water processing center has been completed. Rural Drinking Water And Sanitation

13.131 "Rural drinking water and sanitation program" implemented in the investment of Government of Nepal in 75 districts of the country with the objective of making sustainable, reliable and adequate quantity of drinking water facility available to all the population of the country. Under this project apart from gravity drinking water, tube well fitting, rain water harvesting and toilet construction and environment cleaning, awareness programs and guiding the local agencies to conduct programs according to the WASH (Water Supply, Sanitation and Hygiene) concept has also been done. In the fiscal year 2014/15, 1 thousand 2 hundred 80 successive and gravity drinking water completed, one rain water harvesting, 2 deep tube well and shallow tube well were installed. About 51 thousand 1 hundred 74 individuals were benefitted from this. The works on the successive and new drinking water project, rain water harvesting program, installation of deep tube well and shallow tube well are underway in fiscal year 2015/16. Rural Water Resource Management

13.132 In the grant assistance of Government of Nepal and Government of Finland with the objective of improving the environment condition and improving life standard of the people by managing the drinking water and sanitation from the fiscal year 2006/07, works on the water resource master plan, arsenic reduction, gravity drinking water, irrigation, micro hydro electricity, Waste management sectors have been carried out in 1 hundred 13 VDCs of 10 districts including Humla, Dailekh, Kailali, Doti, Achham, Bajura, Bajhang, Darchula, Baitadi and Dadeldhura of Far and mid western development regions.

13.133 In the fiscal year 2014/15, 1 hundred 52 drinking water system and sanitation project schemes, 14 multi utility of water schemes, 31 stand alone drinking water schemes, 22 irrigation schemes and 21 micro hydro electricity have been completed. In the first eight months of the current fiscal year 2015/16, survey design estimate has been completed for the drinking water system and sanitation project scheme, multi utility of water scheme, stand alone drinking water scheme, household level livelihood schemes, post construction scheme, micro- hydro electricity scheme while these schemes are in the process of singing an agreement.

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Western Nepal Rural Drinking Water and Sanitation

13.134 In the grant assistance of the Government of Nepal and Government of Finland in 12 districts; Tanahun, Syanjha, Parbat, Baglung, Mustang, Myagdi, Gulmi, Kapilvastu, Rupandehi, Nawalparasi, Pyuthan nad Rolpa rural drinking water and sanitation program has started from the fiscal year 2008/09. The main objectives of the program are to increase access to drinking water and sanitation facility in 6 hilly districts and to reduce the arsenic contents in other 3 districts of Terai.

13.135 In the fiscal year 2014/15 1 thousand 2 hundred 83 drinking water and sanitation schemes were completed along with 27 public toilets. Similarly, support was provided for the toilet construction to the 12 thousand 3 hundred 52 households to declare open defecation free zone. In the first eight months of the current fiscal year 13 drinking water projects, 15 public toilet construction and 3 water tank construction have been completed. Damage Rendered By Earthquake To Water Supply And Sanitation Sector

13.136 Almost 5 thousand 2 hundred drinking water projects have been fully and partially damaged due to devastating earthquake of 25 April 2015 and its subsequent aftershocks. About 220 thousand private toilets are estimated to have damaged. As per the preliminary estimate, the damaged rendered by earthquake is close to Rs. 10.4 billion. The analysis has been made that the water sources has been drying up. There has not been smooth supply in the construction materials required for reconstruction and recovery projects. Youth and Sports

13.137 National Youth Council has been established to involve youths in nation building initiative through their overall development. National Youth Policy, 2015 has been issued by revising National Youth Policy,2009. Youth vision 2025 has been drafted came into execution.

13.138 Youth utilization program including skill and employment oriented programs are being carried out in collaboration and partnership of organizations, institutions involved youth sector by identifying their needs for their skill and entrepreneurship development. As per Nepal's commitment to organize 13 th South Asian Games, infrastructure development and upgrading works are in progress.

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13.139 The damage rendered by devastating earthquake of 25 April and 12 May to sports related infrastructures is estimated at Rs. 1.79 billion while such loss for Dashrath Stadium premises alone is calculated at Rs. 1.25 billion. National Youth Mobilization

13.140 With the objective to increase active participation of youth in the nation building initiative, National Youth Mobilization program has been in operation since past years. According to the program to gradually strengthen the youth information centers established at all districts in this fiscal year, upgrading of 16 information centers has been completed. The psychological counseling against the drugs abuse to the youth has started. Action plan to involve youths in disaster management has been prepared while training on disaster management has been continued through Nepal Scout.

Table 13 (an): National Youth Mobilization Program Details Fiscal Year S. Program Unit No. 2011/12 2012/13 2013/14 2014/15 2015/16*

Local Youth Partnership 1 Number 640 653 715 437 437 Program Youth Experience Sharing 2 Program operating under Person 99 50 50 98 - Bilateral Agreement Material Support Program 3 for Disabled Youths - - - 200 200 84 Youth Information Center 4 District 75 75 75 75 75 Operation Program Upgradation/Strengthening 5 of Youth Information Center District — 5 15 10 16 Youth Training and Support 6 Person - 57 661 1003 1040 Program Youth Talent Award Person/ 7 3 3 5 9 9 Program Institution Youth Communication 8 Center/Times 1 1 1 1 1 Program Source: Ministry of Youth and Sports *Of first eight months

13.141 National youth mobilization program has positive impacts on different youth sector. After organizing Local Youth Partnership Program, it has supported in enhancing youths' skill, capacity and awareness. Useful information for youth has been disseminated through Youth information and communication program. Youth talent honor program has encouraged the youths in exploration, research, entrepreneurship and

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social services. Skill and employment oriented training and subsequent support program provided has helped to create employment opportunities and reduce poverty by enhancing employment, self employment and entrepreneurship of youths. Sports Development

13.142 For the development of the sports, constituencies, districts, development regions, central level running shield tournaments, secondary school level boys/girls football and cricket tournaments are being organized since past years. Awareness programs have been conducted in all five development regions to raise the awareness among the trainers and players against the anti-doping in sports and to discourage the use of illegal drugs.

13.143 With the intention of making differently abled people healthy by attracting them towards sports, financial assistance has been provided for the operation of para and special sports. Talented players, institutions and medal winning players in international tournaments are being awarded every year. Table 13(ao): Sports and Extra-Curricular Activities Details

S. Fiscal Year Program Unit No. 2011/12 2012/13 2013/14 2014/15 2015/16* 1 Presidential Running Shield Tournament a District Level District 68 68 70 74 56 b Regional Level Region 5 5 5 5 - c Central Level Center 1 1 1 1 - 2 Secondary High School Level Times 1 1 1 1 - Football Tournament 3 Secondary High School Level Cricket Times - 1 1 1 - Tournament 4 Para-Sports Support Program Times 1 1 1 1 1 5 National Talent Award on Sports Person 3 3 5 9 10 6 Anti Doping Awareness Program Person - 32 144 130 120 7 Awards to Medal Winning Athletes Person - - - 115 45 in Internal Sports 8 Nepal Scout Building Repair Center 1 1 1 5 7 9 District Based Scout Building 3 (under Number - - 3 3 Construction construction) Source: Ministry of Youth and Sports *Of First Eight Months

13.144 Sports infrastructure construction and reform, organizing national/ international level tournaments and participation, providing training to the players on the regular basis and motivation programs are being conducted. Programs like lifelong allowance, insurance facility and for treatments of players in accidental cases.

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Table 13 (ap) :Programs under National Sports Council Fiscal Year S. Program Unit No. 2011/12 2012/13 2013/14 2014/15 2015/16* ToT and Refresher Trainings for 1 players from Sports Academy, Trainers Center 120 1915 1810 1765 260 and other sports related Manpower Operation of Sports Medicine and 2 Center 1 1 1 1 1 Research Center International Training, Seminar, 3 Person 16 60 200 106 40 Workshops, Team Interactions 4 Life-time Allowance for Players Person 2 2 5 5 5 Regional Level Tournaments 5 Region 5 5 5 5 - Conducted 6 District Level Tournaments Conducted District 75 75 75 75 75 Special Trainings for National Team 7 Players on Various Sports Person 61 200 170 235 170 Players’ Medical Treatments and 8 Person 15 20 16 25 - Medical Support in Accidental Cases Grants Awarded to National Sports 9 Federation for conducting sports Number 46 45 50 57 60 activities Supporting the organizers on 10 Indigenous, Traditional sports Institution 1 15 15 10 2 Organization of International 11 Times - 15 6 7 10 Tournaments and Participation Mountaineering Sports Competition 12 Sports - 4 10 10 11 Organized Reconstruction and Maintenance of 13 Number 5 7 9 6 - Physical infrastructure of Stadiums Cash Prize Distributed for Motivating 14 Person 58 77 30 30 96 Players Construction and Maintenance of 15 Number 3 9 5 33 - Covered Halls 16 Construction of Sports Ground Number 74 54 45 282 358 Construction and Upgrading of Cricket 17 Number 2 3 4 20 10 Grounds Constructions of Various Sport 18 Number 1 2 3 3 3 Academies (Ongoing) Source: National Sports Council *Of first eight months Major Achievements In The Sports Sector In The Current Fiscal Year

13.145 In the 12 th South Asian Games organized in India, Nepal bagged 3 gold, 23 Silver and 34 bronze medals and has stood at 6 th position. After the Nepal national football team won the gold medal in the 6 th South Asian Games in Bangladesh, Dhaka in 1993 it had no remarkable achievement while after 23 years in 2016 12 th South Asian Games the team was successful in winning Gold medal. Similarly, in January 2016 reputed Bangabandhu Cup organized by Bangladesh, Nepal defeated Bahrain in finals and has bagged gold medal and has relieved the long draught of medals in the Nepal's sports history.

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13.146 In 1 st South Asian Games 1983, Nepal had bagged 3 bronze medals in swimming and was unable to win any medals for long until 8 th South Asian Games in Kathmandu 1999 with 1 gold medal and after a long gap Nepal again bagged total of 4 medals including 1 silver and 3 bronze in 12 th South Asian Games.

Table 13 (aq) : 12th SAG Games Medal Table

S.N Country Gold Silver Bronze Total Medals 1 India 188 90 30 308 2 Sri Lanka 25 63 98 186 3 Pakistan 12 37 57 106 4 Afghanistan 7 9 19 35 5 Bangladesh 4 15 56 75 6 Nepal 3 23 34 60 7 Maldives 0 2 1 3 8 Bhutan 0 1 15 16 Total 239 240 310 789 Source: Ministry of Youth and Sports

13.147 Nepal Cricket team was in division 3 till 2010 while in 2014 it played T20 world cup remaining in the division 3 in 2014 and in 2015 it was able to reach division 1 and competed for the world cup qualifiers in Bangladesh. Recently Nepal defeated Namibia in both 2 matches organized in Nepal for the World cricket league selection. Impact Analysis On The Sports Sector Through The Operation Of Sports Related Programs

13.148 President running shield and school level cricket and football tournaments operation have supported in search and development of the sports talents at local level. Para and special sports programs have been able to support the differently able people to realize their sporting desires and to demonstrate their talents. The awareness program against the use of the doping in the sports have provided information and raised the awareness among the players regarding anti-doping.

13.149 The cash prizes awarded to the players bagging medals in the international sport competitions has encouraged the players to be dedicated to the sports. The annual grant amount provided to Nepal Scout has been supporting for the operation and development of scouting related activities.

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13.150 Construction and development of sports related infrastructures have provided support for the operation of sport activities. Trainings, coaching programs related to sports have been supporting the players to develop the skills and capacity. The financial assistance being awarded to the various national sport unions/federations has supported the development and extension of the related sports. Likewise, it has helped to organize and participate in various national and international level tournaments.

13.151 Programs like Players' insurance, players' treatment, emergency accident support and lifelong allocation of the allowance provision have helped to encourage players' dedication towards sports. Cash prizes and recognition to the players achieving winning medals in the national and international sport tournaments have motivated them towards sports. Social Development Works From Local Bodies

13.152 Social development programs are being conducted with a view to ensure the social security related management of the senior citizens of the society, single women, Dalits, endangered indigenous caste and differently abled citizens and to facilitate their livelihood. Vital Registration Program

13.153 Different programs are being organized to raise awareness related to the vital event like birth, death registration. The work of MIS design for the Data migration of the vital event and Social Security Software existing in the market and entry of description of the beneficiaries receiving the social security from the Karnali zone in the MIS is in progress after the agreement reached with MIS Firm. Likewise, the draft of the amendment of the Birth, death and other Vital Event Registration Act, 1976 has been prepared in order to simplify the solutions of the different problems related to the vital events.

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Source: Ministry of Federal Affairs and Local Development

13.154 In the first eight months of the current fiscal year, vital events of 16 VDCs and 24 Municipalities of 9 districts have been registered through online. By the end of previous fiscal year 2014/15, Birth and death registration account for 876 thousand 1 hundred 93 and 114 thousand 3 hundred 52 respectively. Table 13 (ar) : Vital Statistics Registration Details

Vital Event Description 2011/12 2012/13 2013/14 2014/15 2015/16 (Mid-March) Registration

Female 258089 385536 488802 421503 15518 Birth Male 297857 429485 540879 456090 18289 Registration Total 559440 822429 1029681 866193 33807 Female 34097 43045 48270 47707 1994 Death Registration Male 85396 69823 74087 66645 8382

Total 120394 113368 121849 114352 10376 Marriage Registration 178196 208211 137316 224826 9942 Divorce Registration 407 557 1104 1355 26 Migration Registration 90558 81946 94613 121429 6329

Persons Migrated in 152812 137499 141871 173454 10232

Persons Migrated out 171560 158901 167034 193560 12062 Total Number of Migrants 324889 296251 308981 196170 22294 Source: Ministry of Federal Affair and Local Development Note: Total number may vary data due to unsegreated data made available on birth and death registrations of males and females

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Social Security (Senior Citizen, Differently Abled People, Endangered People and Single Women Security Provision)

13.155 As directed by the Social Security Program Working Procedure, the monthly allowances are distributed at different specified rates to the total of 2 million 265 thousand 5 hundred 35 individuals including 1 million 49 thousand 8 hundred 19 senior citizens, 660 thousand 1 hundred 28 widows and single women above the age of 60, 23 thousand 3 hundred 46 endangered people, 30 thousand 9 hundred 12 completely disabled, 31 thousand 4 hundred 8 partially disabled and 469 thousand 9 hundred 22 children under the age of five from the Karnali zone and Dalit family.

13.156 From the current fiscal year, the new provision has been made available of distributing Rs. 5 hundred per month as treatment expenses to the senior citizens above age of 70 falling under any targeted group besides their regular monthly allowance. 905 thousand 7 hundred 25 senior citizens have been benefitted from this provision. Table 13 (as): Social Security Allowance Distribution (In Numbers) Monthly Fiscal Year Target Group Rate (Rs.) 2012/13 2013/14 2014/15 2015/16* Senior Citizen 500 663693 655737 688930 792379 Senior Citizen ( Dalits ) 500 170825 244646 234634 230085 Senior Citizen (Karnali) 500 29626 28797 27855 27355 Single Women above 60 Years 500 361350 341106 231352 172842 Widows below 60 Years 500 219933 313613 417201 487286 Fully Disabled Persons 1000 22138 25492 27203 30912 Partially Disabled Persons 300 6774 6863 6375 31408 Endangered People 1000 18825 19223 20308 23346 Children 200 551916 537118 506718 469922 Grand Total 2045080 2172595 2160576 2265535 Senior Citizens above 70 years (Treatment Allowance – Rs. 500) 905725 Source: Ministry of Federal Affair and Local Development *First eight months

13.157 The details of the Social Security allowance recipients of 26 districts have been registered in the Social Security and Vital Statistics Management Information System (MIS) with the initiation of delegation of authority for this purpose. The use of this system has supported to allocate realistic budget and delegate authority thereby reducing expense burden to the government.

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Table 13 (at) : Progress in Social Allowance Distribution

Effect of MIS on Distribution of Social Allowances (Of 26 Districts)

S.No. Number of DDC Service Beneficiary Obtained Number from MIS

1 836446 709719

Reduced in Total Number (%) 15.15 Source: Ministry of Federal Affairs and Local Development

Golden Thousand Days and Multi - Sector Nutrition

13.158 With the objective of improving habit and concept relating to nutrition of reproductive aged women and children below two years in the active participation of community for nutrition, "Golden Thousand Days Project" has been brought into implementation since July 2012 in 25 percent (292 VDC) of 15 districts including Okhaldhunga, Khotang, Udayapur, Saptari, Sunsari, Siraha, Sindhuli, Ramechhap, Dhanusha, Mahottari, Makawanpur, Bara, Parsha, Rautahat, and Sarlahi. This project shall remain in implementation until 30 June 2017. Likewise, "Multi – sector nutrition program" has been implemented in 28 districts. The program had started in 6 districts since fiscal year 2013/14. Environment Management Environment Friendly Local Governance Program

13.159 From the fiscal year 2014/15, in 33 municipalities and 60 VDCs of the 12 districts in the Koshi and Gandaki Watershed areas of Nepal environment friendly local governance program had begun. In the fiscal year 2015/16, program has been extended to additional 2 districts benefiting a total of 54 municipalities and 60 VDCs of Saptari, Siraha, Udayapur, Dhanusha, Sharlahi, Rautahat, Sindhuli, Kavrepalanchowk, Chitawan, Nawalparasi, Gorkha, Lamjung, Tanahun, Kaski districts.

13.160 In the fiscal year 2014/15, 99 ponds conservation, 7 hundred 43 solar street light installation, 3 hundred 20 household solar light installation, 56 park construction, 21 park conservation, 44 public toilet construction, 1 thousand 1 hundred 88 toilets (household) construction, 71 thousands 7 hundreds 59 plantation (Public land and Road corridors), 46 nursery construction, 57 river and landslides control program and 5 memorial garden construction have been completed. In the first eight months of the

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current fiscal year, local bodies are being involved for the operation of about 1 thousand 3 hundred different activities. Inclusive Development

13.161 Different programs are being implemented from the preceding years with a view of achieving inclusive development by bringing marginalized and backward groups into the main stream of development. As development of the women is indispensible for the overall development of the state the policy to include the women friendly and gender equality oriented equitable programs in all the plans and programs has been adopted.

13.162 Under the inclusive development "Endangered Indigenous/tribes Upliftment and Chepang Development Program", "Excluded, Deprived and Dalit upliftment program", "Backward Community Upliftment Development Program, Remote and special Zone Development Program", Buddhist Doctrine Promotion and Monastery Development Program" and " Badi Community Upliftment Development Program" are in operation. These programs are expected to provide support for making economic development inclusive through development of marginalized and backward groups and zones.

13.163 By the end of FY 2014/15, a total of 6 hundred 39 students have been awarded scholarship in higher education under "Excluded, Deprived and Dalit Upliftment Development Program. Civil service preparation classes for 2 hundred 50 individuals and employment oriented training for 2 hundred individuals were conducted while 15 drinking water and toilets were constructed through the same program. Similarly, in the first eight months of the current fiscal year, 6 hundred 33 individuals received higher education scholarship. Likewise, Civil service preparation classes for 80 individuals and employment oriented training for 1 hundred 50 individuals have been conducted with the construction of 1 hundred 60 toilets. Similarly, 10 awareness programs have been conducted.

13.164 By mid-March, 2016, civil service preparation class, vocational education scholarship distribution for backward community, awareness programs against dowry and witchcraft practices has been conducted Under"Backward Community Upliftment Development Program", which is being implemented in 26 districts.

13.165 Under the "Remote and Special Zone Development Program" implemented in total of 22 districts that came after 1991 AD, 16

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suspension bridges and 51 kilometers of horse trail were constructed in the fiscal year 2014/15. Similarly, in the same year, 29 irrigation projects, 21 drinking water projects, 11 electrification projects and 21 different community infrastructure projects (school building, library, embankment, modern mills, herbal development etc.) were completed. In the first eight months of the current fiscal year, under this program, the construction of 5 suspension bridges and 39 kilometers of horse trail have been completed. Similarly, during this period, 2 irrigation projects, 2 drinking water projects, 4 electrification projects and 3 other community infrastructure projects have been completed.

13.166 In the fiscal year 2014/15, capacity building training to 1 hundred 46 individuals, 75 toilets construction, 10 drinking water tap fitting and wire distribution for the electrification at 80 household under " Badi Community Upliftment Development" have been completed. In the first eight months of the current fiscal year 2015/16, 67 toilet construction, 2 drinking water tap fitting, civil service preparation classes to 9 individuals and awareness seminar on the health and hygiene to 33 individuals have been completed and conducted.

13.167 By the end of fiscal year 2014/15, Solar distribution to 14 Monasteries, Buddhist Doctrine study for one time and 'Dharma Deshana’ religious sermon for one time were conducted under "Buddhist Doctrine promotion and monastery development program". Buddhist philosophy study for one time, 'Dharma Deshana' religious sermon program, solar distribution and monastery management training program to 14 Monasteries have been completed during first eight months of the current fiscal year 2015/16.

13.168 In the first eight months of the current fiscal year, monitoring program of the racial discrimination and untouchability related incidents werw conducted for 15 times. Similarly, racial discrimination and touchability (crime and punishment) act, 2011 (2068) has been broadly publicized through electronic media in 7 districts. Similarly, health/relief program for the Dalit community people 30 times, Interaction and advocacy program in 10 districts and racial certificate distribution through mobile camp in one district have been completed. In the fiscal year 2014/15, account management training, Dalit journalist empowerment program and racial certificate distribution program through mobile camp have been completed.

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13.169 In the fiscal year 2014/15, organizing of seminar on the gender inclusion and equality of Muslim community, situation study of the religious traditional heritage, program related to the study of the situation and effectiveness of Madarasha education were conducted while in the first eight months of the current fiscal year, the training on the gender inclusion and equality of the Muslim women and service entry orientation have been completed. Local Governance And Community Development

13.170 Local Governance and Community Development Program, implemented in all DDCs, municipalities and VDCs, has been implemented through local bodies, community and nongovernmental organizations. This program aims at contributing to poverty reduction through local good governance and community development.

13.171 By the first eight months of the current fiscal year, the ward civil forum has been formed at every wards of each VDCs and municipalities and these forums have been involved in the process of formulating, prioritizing, implementing and monitoring plans and programs to make participatory development efforts more meaningful in local governance system through the direct involvement of the citizens of all levels and classes. Table 13 (au): Status of Social Mobilization

Total/ Particulars Number Ward Civil Forum 31586 VDCs 28927 Municipalities 2659 Official associated with Ward Citizen Forum 785683

Citizen Awareness Center (Targeted to Community living under poverty line) 6826

Social Mobilizors at VDCs and Municipalities (through NGOs- No. ) 4600 Reflect Classes being Conducted 150432

Trainings/Orientation on various subjects to members of Ward Civil Forum (No.) 4556

Ward Civil Forum Involved in Public Delivery Services 4543 NGOs Selection and Mobilization for Social Mobilization 510 Citizen Awareness Center associated with other institutions with increased access to resources 404 Public Hearing 524 Quality Test Laboratory Establishment 33 Source: Ministry of Federal Affairs and Local Development

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Problems and challenges

13.172 Inability to develop the infrastructure pursuant to the set minimum standards in the community schools, the lack of required posts in all lower secondary and secondary level, inability to involve the children of the deprived community in educational activities by bringing them to school, persistence of the lack of financial and human resources in the extension and development of technical education in the school education, inability to make the schools fitted with information technically and inability of extending the access to meet the increasing demand of the technical education and training are the major problems of the education sector.

13.173 Accessibility extension, improvement in the quality, use of information and technology, construction of infrastructure and capacity building are the major challenges of the education sector.

13.174 Making all levels of education relatively inclusive, expanding early childhood development program, creating child friendly environment in school, enhancing the internal efficiency of the education and managing adequate resources and materials to make the basic and secondary level education free and mandatory have remained as major challenges.

13.175 Enhancing the quality of the community schools by narrowing gap inherent in educational management and achievements between community and institutional schools and restricting dropout rate and declining trends of students at higher level education have remained as challenges.

13.176 There lie the challenges in adjusting teachers in the community schools on the basis of number of students, ensuring adequate availability of teachers' posts as stipulated in the Education Act and Regulation and making timely institutional reform in educational administrative structure.

13.177 Enhancing the quality of education at all levels and organizing education related statistics management system to make it trustworthy and reliable from central/ district to local level schools have remained as challenges.

13.178 Despite the regular effort of the government, deficiency in nutrition is still prevalent in almost half of the children under the age of 5 and women of reproductive age. Likewise, obesity has continued to grow in the urban areas. Similarly, climate change, increased food insecurity,

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epidemic and natural disaster and emergence of infectious diseases are the major factors causing problems in human health.

13.179 The private sector's investment couldn't be increased in health sector to make it effective for the benefit of general mass. Similarly, lack of adequate coordination between institutions generating human resource and those utilizing human resource in health sector has also remained a problem.

13.180 Increasing access of health insurance program to all citizens across the country by making all the health institutions competent at the local level has remained as major challenge.

13.181 The expectation of women, children, senior citizens, differently abled people and socially deprived classes from minority, sex and gender perspectives has been increasing day by day. Therefore, it has remained as major challenge to meet their expectations.

13.182 As there is no direct line agency of the Ministry of Youth and Sport at the local level, there exists problem in monitoring of local level implemented programs. Inability to provide adequate resource for the construction, repair and maintenance of infrastructure for the development of the sports sector has become a problem. Similarly, sport sector in Nepal has not been able to utilize adequately the modern technology developed in the world.

13.183 As the issues of youths are related to various ministries, there remain challenges to set integrated program, formulate programs in addressing and utilizing youths and making them self-employed and entrepreneurs. Similarly, it is a challenge to make arrangements for their spontaneous mobilization in disaster management by motivating them for the volunteer works. It is also challenging to address specific common problems and expectations of all age groups.

13.184 It has remained a challenge to operate the scattered social security programs in an integrated manner.

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14. Public Enterprises 14.1 Objectives behind establishment of Public Enterprises (PEs) have been to make easy availability of essential goods and services to consumers at fair prices; building basic structures and infrastructure for sustainable development; generating inspiration for vibrant economy; and promoting social justice through contribution to economic growth and the people's welfare. 14.2 Following the adoption of liberal economic policy in Nepal and subsequent formulation of law thirty (30) Public Enterprises (PEs) have been privatized as per the government policy of their gradual privatization for reducing government investment in PEs. Despite the disinvestment policy of the Government of Nepal that targets gradual privatization of PEs, there is a challenge of effective privatization amid the necessity of providing essential services to the people while operating the businesses in profit. 14.3 There are 37 PEs operating under full or partial ownership of Government. The net operating income of these 37 PEs has reached Rs. 270,484.70 millions in fiscal year 2014/15. This amount is higher by 5.06 percent as compared to that of previous fiscal year. The net operating income of these enterprises in fiscal year 2013/14 was Rs. 257,817.30 million. Such growth in net operating income indicates that financial working skill of PEs has improved. 14.4 Among 37 PEs operating by fiscal year 2014/15, twenty (20) of them were operating in net profit while 14 at net loss. Details of Nepal Engineering Consultancy Service Center Ltd. and National Construction Company Nepal Ltd could not be received because of the staff retirements. However, data availability of Janakpur Cigarette Factory has been limited due to employees retirement. PEs, that had recorded net profit of Rs. 505.03 million in fiscal year 2013/14 earned net profit of Rs. 33,922.7million in fiscal year 2014/15. Net profit recorded significant growth during this period as compared to preceding fiscal year mainly due the fact that Nepal Oil Corporation that was operating in loss in previous fiscal years remained in profit with about Rs, 15 billion in FY 2014/15 and Nepal Telecommunication Company Ltd., Rastriya Banijya Bank and Agricutlure Development Bank also earned notable profits during this period.

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14.5 By fiscal year 2014/15, Government’s total share investment in 37 PEs totaled Rs. 126,160.03 million while total loan investment during the same period amounted to Rs. 129,961.8.million. By FY 2013/14, share investments of the government in PEs stood at Rs. 115,814.5 million and loan investment Rs. 111,681.7 million. Thus, the share investment and loan investment of the Nepal government in FY 2014/15 remained higher by 8.93 percent and 16.37 percent respectively as compared to previous fiscal year. 14.6 The total shareholder’s fund of Public Enterprises (PEs) totaled Rs. 173,379.3 million by fiscal year 2014/15. In the previous fiscal year, such shareholder’s fund stood at Rs. 105,989.5million. As compared to fiscal year 2013/14, shareholder’s fund of enterprises has increased by 63.58 percent in its succeeding year. 14.7 The net fixed assets of Public Enterprises that totaled Rs. 126,270.03 million in 2013/14 went up to Rs. 244,138.8 million in its subsequent year. Auditing of lands and buildings PEs’ own are yet to be carried out, which has made the task of assessing the actual value of these assets. Hence, this has prompted the necessity of PEs to get their accounts of such assets audited. 14.8 Dividend to Government of Nepal from PEs that totaled Rs. 6,618.7 million in fiscal year 2013/14 dropped slightly to Rs. 6,458.4 million in fiscal year 2014/15 and this is calculated at 5.12 percent of the share investment of Rs. 126, 160.3 million. In this period, GoN has received dividend from Nepal Telecom Company Ltd., Industrial Estate Management Ltd. and National Housing Company Ltd. 14.9 The unfunded liability of PEs has been growing every year due to various facility entitlements to PE employees upon their retirement such as gratuity, pension, medical treatment, insurance, payment against accumulated leave etc. Such unfunded liability of PEs that totaled Rs. 27,019.1 million in fiscal year 2013/14 decreased by 4.49 percent to Rs. 25806.8 million in its subsequent fiscal year 2014/15. Long-term liabilities of the PEs is on declining trend with rise in the trend of PEs towards establishing funds to meet their respective long-term liabilities, the amount of unfunded liability is still quite large. Hence, there is a need to establish a separate fund to meet such impending liabilities. 14.10 Net accumulated loss of 37 PEs stood at Rs. 26,922.7 million by fiscal year 2013/14 while net accumulated profit remained at Rs.13220.03 by

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fiscal year 2014/15. Enterprises with accumulated loss of over Rs. one (1) billion totaled ten (10) including Nepal Electricity Authority Rs. 25.20 billion, Nepal Oil Corporation Rs. 17.80 billion, Rastriya Banijya Bank Rs. 6.25 billion, Nepal Orind Magnesite Pvt Ltd Rs. 4.15 billion, Udaypur Cement Factory Ltd Rs. 3.71 billion, Nepal Airlines Corporation Rs. 1.88 billion, Nepal Drugs Ltd. Rs. 1.19 billion, Nepal Television Rs. 1.15 billion, Food Corporation Rs. 1.10 billion and National Trading Ltd Rs. 1.09 billion. PEs with accumulated profit of over Rs. one (1) billion totaled five (5) including Nepal Telecom Company Ltd Rs. 65.99 billion, Nepal Civil Aviation Authority Rs. 5.67 billion, Rastriya Bima Sansthan Rs. 3.37 billion, NIDC Development Bank Ltd Rs. 1.67 billion and Agriculture Development Bank Ltd Rs. 1.50 billion. Contribution of PEs to Revenue and GDP 14.11 PEs’ net operating income contributed 12.75 percent to revised GDP of Rs. 2120.00 billion in FY 2014/15. Of the total PEs, trade sector shared most with 7.12 percent to GDP while social sector has the least contribution to this with only 0.07 percent. 14.12 The share of dividend that Government of Nepal received from PEs is 1.59 percent of its total revenue collection of Rs.405.87 billion in fiscal year 2014/15. The return i.e. dividend of 5.12 percent received by Government of Nepal in proportion to share investment has been lower than the prevailing interest rate. However, PEs role in income tax, value added tax and non-tax revenue mobilization seemed to be significant. 14.13 In fiscal year 2014/15, the government had lent Rs. 17.37 billion to PEs which was 3.37 percent of total government expenditure of Rs. 515.71 billion of the same fiscal year while 14.88 percent was the share of government’s lending to its total capital expenditure for the same fiscal year.

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Chart 14 (a) : Sector-wise Net Profit Status of Public Enterprises

Sector-wise Analysis of Public Enterprises Industries Sector 14.14 Of the seven PEs operating under industries sector, the operating income of these PEs has stood at Rs. 6, 628.0 million in FY 2014/15 which is higher by 7.79 percent compared to its previous fiscal year. Janakpur Cigarette Factory Ltd. remained closed after providing retirement to its employees, Nepal Orind Magnesite Pvt. Ltd. failed to run its operation while Nepal Drugs Limited has limited production. Dairy Development Corporation and Hetauda Cement Factory Limited have been able to raise their operating income by 9.72 percent and 14.60 percent respectively. 14.15 In fiscal year 2014/15, net loss of PEs under this sector fell by 21.40 percent to Rs. 608.9 million as compared to its previous year. Total accumulated loss of this sector stood at Rs. 10616.4million by fiscal year 2014/15. The net fixed assets of PEs under the industries sector has depreciated by 6 million to Rs. 3,270.06 million from Rs. 3,666.6 million of fiscal year 2013/14. 266

14.16 The Outstanding debt of PEs operating in the industries sector has reached Rs. 645.03 million in fiscal year 2014/15 with an increase of Rs. 597.6 million to that of fiscal year 2013/14. Among the PEs to borrow large amount are Janakpur Cigarette Factory Ltd with Rs. 2.39 billion, Udaypur Cement Factory Limited with Rs. 2.21 billion, and Nepal Orind Magnesite Pvt. Ltd. with Rs 760 million. Likewise, shareholder’s fund has remained negative by Rs. 4,784.1 million with negative growth of Rs. 714.2million as compared to that of previous fiscal year. 14.17 Among the total 7 PEs under Industries Sector, Dairy Development Corporation and Hetauda Cement Factory Ltd have their accounts audited up to fiscal year 2014/15 while the rest 5 of them are yet to have their accounts audited only timely basis. A total of 2,252 individuals are employed in PEs under this sector whereas total annual administrative expenditures stood at Rs. 626.5 million and unfunded liability for employee’s retirement amounted Rs. 2,365.1 million. By fiscal year 2014/15, Government of Nepal has not been able to receive any dividend on its share investment of Rs. 5,425.6 million in PEs under this sector. Trade Sector 14.18 A total of six (6) PEs are operating under the trade sector including Agriculture Inputs Company Ltd, National Seeds Company Ltd, National Trading Limited, Nepal Food Corporation, Nepal Oil Corporation Ltd, and The Timber Corporation of Nepal Ltd. PEs under this sector earned operating income of Rs. 150,930.4 million with net income of Rs. 15,098.5 million in fiscal year 2014/15. Operating income of PEs amounted to Rs. 145,959.7 million and their net loss stood at Rs. 8,590.3 million in preceding fiscal year. Similarly, net loss of Nepal Oil Corporation that totaled Rs. 8.30 billion in FY 2013/14 earned profit of Rs.15.04 billion in its subsequent fiscal year 2014/15 which rendered positive impact to the profit/loss account of overall trade sector. In this fiscal year, despite sharp decline in the price of crude oil in international market, prices of petroleum products in domestic market were not adjusted in line with such decreased oil prices international market thus leading to rise of net profit volume of Nepal Oil Corporation. 14.19 The total outstanding debt of PEs operating in trade sector which stood at Rs. 34,696.0 million in fiscal year 2013/14 fell sharply to Rs. 13,555.8 million in fiscal year 2014/15. By fiscal year 2014/15, Nepal Oil Corporation has borrowed Rs. 20.28 billion from Employee’s Provident

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Fund and Citizen Investment Trust on the guarantee of the Government of Nepal which has already been repaid. 14.20 The net fixed asset of PEs under this sector totaled Rs. 1,980.7 million by fiscal year 2014/15. Agriculture Inputs Company Ltd. holds the top position in terms of the size of its net assets worth Rs.813.4 million. Overall shareholders' fund of PEs operating under this sector has negative balance of Rs. 13,760.7 million which is due to Nepal Oil Corporation’s negative shareholder’s fund of Rs. 14685.6 million. 14.21 Among six (6) PEs of this sector, only three of them have conducted their final audit up to FY 2014/15, while Nepal Food Corporation and National Trading Limited have completed their audits up to fiscal year 2012/13 and National Seed Company Limited up to 2013/14. The number of personnel employed in PEs of this sector totaled 1,678 with administrative expenses of Rs. 1,698.2 million and unfunded liability amounting to Rs. 935.5 million by the fiscal year 2014/15. Though the government of Nepal by fiscal year 2014/15 has made loan investment of Rs. 13,555.8 million and share investment of Rs. 1,608.5 million in PEs of this sector, dividend receipt appeared to be nil. Services Sector 14.22 Among Seven (7) PEs (Nepal Civil Aviation Authority, Nepal Airlines Corporation, Industrial Estate Management Ltd, Nepal Transit and Warehousing Co. Ltd, National Productivity and Economic Development Center Ltd, National Construction Company Nepal Ltd and Nepal Engineering Consultancy Service Center Ltd.) operating under the services sector in the past, National Construction Company Nepal Ltd and Nepal Engineering Consultancy Service Center Ltd as have not carried out any transactions after employees of these PEs were paid off with retirement benefits. The operating income of PEs under this sector totaled Rs. 12315.0 million in fiscal year 2013/14 whereas such income rose by 3.9 percent in fiscal year 2014/15 reaching Rs. 12,796.4 million. Nepal Airlines Corporation and Nepal Civil Aviation Authority have earned the largest operating income of Rs. 7,888.8 million and Rs. 4,161.7 million respectively in the same fiscal year. 14.23 Net profit of PEs under this sector that totaled Rs. 1,344.8 million in fiscal year 2013/14 has gone up to Rs. 1,430.1million in fiscal year 2014/15. Nepal Civil Aviation Authority, Nepal Airlines Corporation, Industrial Estate Management Ltd., and Nepal Transit and Warehousing

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Co. Ltd. have earned net profits while National Productivity and Economic Development Center Limited is operating in net loss in FY 2014/15. However, Nepal Engineering Consultancy Service Center Limited and National Construction Company Nepal Ltd seemed to have no transactions. 14.24 The net fixed assets of PEs under the service sector totaled Rs. 23,211.2 million and Shareholders’ fund of PEs under this sector stood at Rs. 26467.6 million by fiscal year 2014/15. By this period, the debt liability of the service sector reached Rs. 2,988.8 million. Of such debts, Nepal Civil Aviation Authority shares Rs. 2,293.3 million, Nepal Airlines Corporation Rs. 561.4 million and that of Nepal Transit and Warehousing Co. Ltd. is Rs. 122.5 million. The unfunded liability of PEs under this sector reached to Rs. 661.6 million by fiscal year 2014/15. Of this, Nepal Airlines Corporation has the highest share of Rs. 649.1million. In this fiscal year, a credit of Rs. 10 billion has been disbursed to Nepal Airlines Corporation from Employees Provident Fund against the guarantee of GoN for purchase of two narrow body airbus aircrafts which have already been imported. 14.25 By fiscal year 2014/15, the Government of Nepal has made share investment of Rs. 17,943.2 million and loan investment of Rs. 2,988.8 million in PEs under this sector. The Nepal government has received dividend only from Industrial Estate Management Ltd. in FY 2014/15. Of the PEs under this sector, Industrial Estate Management Limited and Nepal Transit and Warehousing Management Company Limited have their accounts audited until FY 2014/15 while Nepal Airlines Corporation and Nepal Civil Aviation Authority have conducted so until 2013/14 but National Productivity and Economic Development Center Limited has its accounts audited only up to FY 2008/09.The number of employees of PEs working under this sector until FY 2014/15 stands at 2426 with total administrative expenses of Rs. 2,301.9 million. Social Sector 14.26 This sector comprises a total of 5 (five) PEs including Cultural Corporation, Gorkhapatra Corporation, Janak Education Materials Center Ltd, Nepal Television and National Housing Company Ltd. The net loss of PEs of this sector that had stood only at Rs.200 thousand in FY 2013/14 rose sharply to Rs. 120.5million in fiscal year 2014/15. The net loss of overall social sector happened to rise due to the fact that Gorakhapatra Corporation that had registered net profit of Rs. 150.7 million in FY 2013/14 could earn net profit of only Rs. 434 thousand in

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FY 2014/15 and at the same time , Nepal Television that had net profit of Rs. 248 thousand in 2013/14 bore net loss of Rs. 823 thousand in its subsequent fiscal year. 14.27 The net operating income of PEs of this sector stood at Rs 1430.8 million and net fixed asset at Rs. 1113.2 million in fiscal year 2014/15 which were Rs. 1074.5 million and Rs. 879.6 million respectively in preceding fiscal year. Despite Nepal government’s share investment of Rs. 2852.0 million and loan investment of Rs. 1007.5 million in this sector by FY 2014/15, so far, it has received dividend of only Rs. 1.1 million from National Housing Company Limited. 14.28 Shareholders’ fund of PEs of the service sector totaled Rs. 3530.5 million by fiscal year 2014/15. Nepal Television is the only among the PEs in this sector to have its account audited up to FY 2014/15 while other four (4) PEs are found to have failed to complete their audits within the stipulated time-frame. A total of 1,463 employees are working until FY 2014/15 and the unfunded liability of PEs amounted to Rs. 474.5 million by the end of fiscal year 2014/15 wherein Gorkhapatra Corporation has the largest share of Rs. 300 million. Public Utilities Sector 14.29 Public Utilities Sector comprises three (3) PEs including Nepal Telecom Company Ltd, Nepal Electricity Authority (NEA) and Nepal Water Supply Corporation. The net operating income of these PEs that amounted to Rs. 64,175.2 million in FY 2013/14 increased by Rs. 5827.7 million to Rs. 70002.9 million in FY 2014/15. Nepal Telecom has earned the highest operating income of Rs. 39290.1 million. The net fixed assets of PEs in this sector stood at Rs. 211,757.9 million while total shareholders’ fund remained positive by Rs. 105691.3 million by the end of fiscal year 2014/15. 14.30 In FY 2014/15, net profit of PEs of the public utilities sector totaled Rs. 9,572.6 million. Nepal Telecom Ltd. earned the highest net profit of Rs. 14,556.3 million in FY 2014/15 while Nepal Electricity Authority is among the PEs under this sector to lose the most with net loss of Rs. 4961.9 million. Nepal Drinking Water Supply Corporation witnessed a net loss of Rs. 21.8 million in FY 2014/15. However, PEs under the utilities s sector earned overall net profit of Rs. 9,572.6 million after their overall profit/ loss adjustments. Despite writing off accumulated loss totaling Rs. 27,530 million of Nepal Electricity Authority in fiscal year 2010/11, its accumulated reached Rs. 25.20 billion succeeding in

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last four years while its due amount remained close to Rs. 10 billion during the same period. 14.31 Government of Nepal has made total share investment of Rs.74306.3 million and loan investment of Rs. 103,420.8 million in PEs under this sector in FY 2014/15. GoN has received dividend of Rs. 6450.3 million only from Nepal Telecom in FY 2014/15. Total debt liability of PEs in this sector has reached Rs. 103,420.8 million in FY 2014/15 from Rs.85,367.0 million of its preceding fiscal year 2013/14. NEA has the highest debt liability of Rs. 98,156.5 million. 14.32 The number of employees working at PEs under the public utilities sector totaled 14,329 in 2014/15 where NEA has the greatest number of employees totaling 8,434. The total administrative expenses of PEs under this sector stood at Rs. 10,035.1 million while unfunded liability those PEs of this sector reached Rs. 20,497.3 million by FY 2014/15, in which NEA shares Rs. 18,195.8million, Nepal Telecom Rs. 1,855.1 million while the share of Nepal Water Supply Corporation stands at Rs. 446.4 million. Financial Sector 14.33 Nine PEs (Agriculture Development Bank Ltd., Rastriya Beema Sansthan, NIDC Development Bank Ltd., Rastriya Banijya Bank Ltd., Deposit and Credit Guarantee Corporation Ltd. Nepal Housing Finance Ltd., Nepal Stock Exchange Ltd., Citizen Investment Trust and Hydroelectricity Investment and Development Company Ltd.) are operating under the financial sector. The total operating income of this sector in FY 2014/15 stood at Rs.28,696.1 million, which is higher by 3.28 percent than that of previous fiscal year. Eight of these PEs except Rastriya Bima Sansthan of this sector have earned net profit in FY 2014/15. The net profit of PEs in this sector that stood at Rs. 6,368.7 million in FY 2013/14 went up to Rs.8,550.7million in FY2014/15. PEs of this sector which earned profit of above Rs. 1 billion in FY 2014/15 are Rastriya Banijya Bank with Rs.4,643.9 million, Agriculture Development Bank Ltd. with Rs. 4,321.2 million. 14.34 In fiscal year 2013/14, the net fixed asset of PEs of this sector stood at Rs. 2, 805.3 million and shareholders’ fund of all PEs in this sector has remained positive with Rs.56,234.7 million. GoN has made a total share investment of Rs.24,024.7 million and loan investment of Rs. 2538.5 million in PEs under financial sector by FY 2014/15. During this period, Deposit and Credit Guarantee Corporation Ltd., has made share investment of additional Rs. of 1 billion to boost its capital. Nepal 271

government has not received any dividend from its investment in PEs under this sector in FY 2014/15. The loan/investment of PEs under this sector stood at RS. 225,692.1million in FY 2013/14 while such investment grew to Rs. 269,590.6 million in its succeeding fiscal year. The trust of general public to this sector has increased due to the availability of provision to guarantee amounts deposited to certain extent by small depositors. 14.35 Among the PEs in this sector, Rastriya Beema Sansthan have its account audited till FY 2009/10, while Agriculture Development Bank and Citizen Investment Trust have conducted audit up to FY 2012/13 and the rest of the PEs have completed their audit up to FY 2014/15. A total of 5,714 employees are working in PEs under the financial sector of which Rastriya Banijya Bank and Agriculture Development Bank and have the highest number of employees with 2,672 and 2584 respectively. The total annual administrative expenditure of PEs in this sector stood at Rs. 7,699.0 million. The liabilities of Rastriya Banija Bank amounted to Rs.6, 580.7 million with unfunded liability of Rs.847.0 billion and potential liabilities of Rs.5,733.7 million. Likewise, unfunded liabilities of Nepal Stock Exchange stood at Rs. 6.6 million while the total liability of Deposit and Credit Guarantee Corporation stood at Rs. 300,019.2million including unfunded liability of Rs. 19.2 million and impending liability of Rs300 billion. PEs other than these under this sector have no unfunded liabilities. Problems and Challenges 14.36 The government of Nepal has adopted disinvestment policy to effectively operate PEs that are considered vital for delivering services and facilities to the general public and to privatize PEs in areas where private sectors are found more competent and aggressive. Liberal policy seems to have failed to produce desired results. Hence, task of achieving objectives of the liberal policy remains a challenge. 14.37 Public Enterprises operating under the full and partial ownership of the Government of Nepal totaling 37 are formed under five (5) different Acts. As there are different Acts relating to formation of PEs, their objectives are also different. Situation exists where PEs have to move forward through the delicate borderline of meeting their social responsibilities on the one hand while making themselves commercially viable on the other. Likewise, there is no uniformity on the management side especially on appointment of organization chiefs, working procedures, and monitoring and evaluation processes. Difficulties are

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being faced on effective implementation of varied management provisions incorporated in public enterprises while maintaining clarity of their inherent objectives. 14.38 Plethora of reports with suggestions that were furnished by various Committees; Study Task Forces; and Commissions formed from time to time with objectives of making PEs competent to achieve their targets by operating them on business principles have just been limited to formalities. Problems are getting worse than solved due to failure in putting such recommendations into practice. A Public Enterprise Directive Board was formed lately in line with Public Enterprises Directive Board (Formation and Operation), Directives, 2011. This Board seemed to have not carried out coordination, monitoring, and evaluation works at the desired level, but limited to recommending appointments of executive chiefs. Our efforts on improvement are more complex since the Board that was formed to bring effectiveness in PEs itself is in the necessity of a study on its own effectiveness. 14.39 PEs have to face competition in the process of accomplishing their responsibilities in a market oriented economy by embracing universally accepted market principle including professionalism, modernity and consumers’ interest among others. Those entrepreneurs are able to sustain in the market, who are strong, firm, and competent are able to earn profit by delivering desired goods and services to consumers/service seekers by adopting universally accepted market principles. The size of accumulated loss and unfunded liabilities of PEs have continued to grow as a result of weakening professional and managerial capacities and efficiencies as demanded by the market oriented economy. Government’s huge investments could not yield desired result owing to the failure of PEs to exploit their assets, human resource and capacities to their full extent. Task of building value based PEs so as to deliver effective services by maintaining clarity in their objectives and working guidelines seems to be complex. 14.40 There lacks a clear cut business work-plans in all PEs. Likewise, factors like failure to utilize means and resources including manpower, inability to adopt modern technology, absence of improved quality of goods and services, persistent rise in unproductive expenses among others have caused PEs to face multifaceted problems. Activities of active Employees’ Trade Unions in PEs are also found to have not remained creative as expected. Addressing these basic aspects in order to make PEs result oriented seems to be lacking.

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15. Post-Earthquake Reconstruction and New Building 15.1 The devastating earthquake of April 25, 2015 and subsequent aftershocks have resulted in huge loss of human lives, physical infrastructure, and natural resources. The death toll from such devastating tremble is estimated to have reached 8,969 while 22,302 people sustained injuries with about 300 accounted as still missing. About 17,000 large livestock (quadrupeds) and some 40,000 small ones got perished in the earthquake. Likewise, 779,582 homes have been completely destroyed, while 302,774 homes have been partially damaged. Of the quake affected 31 districts, 14 districts bore the full brunt while 17 received partial impact. Damages rendered by the quake are estimated at around Rs. 706 billion. Of this, property damage is calculated at Rs. 517 billion while production damage is estimated at Rs. 189 billion.

Table 15 (a): Damage from Earthquake Property Property Damage- Damage- Public Government No. of Households Unidentified Male Male Injured Total Injured Partial Partial Female Injured Male Male Casualties Total Casualties Complete Complete Female Causalities Population 2011/12 Development Region

Eastern 1231505 5811555 28 32 0 60 214 238 452 345 1654 37957 62705

Central 1964045 9656985 4768 3662 3 8433 9831 10736 20537 1922 1263 633330 151885

Western 1066362 4926765 241 223 0 464 647 593 1240 415 693 105386 80159

Mid 695419 354668 0 2 0 2 16 25 41 5 159 222 4188 Western

Total 5427302 26494504 5037 3919 3 8959 10709 11593 22302 2687 3776 776895 298998 Source: Government of Nepal, Ministry of Home Affair 15.2 Because of the earthquake, great numbers of physical infrastructures especially private and government buildings, cultural heritages, schools, health institution buildings, rural roads, bridges, drinking water, power houses and sports infrastructures received heavy damages. Likewise, natural resources, agricultural lands, and tourists trekking routes have also suffered massive damages. 15.3 The effect of earthquake is likely to drive 2.5 percent to 3.5 percent of Nepalese population back to poverty adding 700,000 people more to the country’s total poor population. Likewise, multidimensional poverty is estimated to receive penetrating impact due to obstructions in drinking water and sanitation services, school and health amenities, and increased food security.

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15.4 GDP that was expected to grow by 3.04 percent in FY 2014/15 got contained at 2.32 percent due to shrinkage brought to the economy by the devastating earthquake. GDP in current fiscal year 2015/16 is estimated to stagnate at 0.77 percent owing to devastating earthquake and obstructions in supplies thereby affecting entire sectors of the economy. 15.5 Damages caused by the devastating earthquake are estimated at Rs. 706.5 billion. Of this, social sector accounts for 57.8 percent followed by the productive sector 25.2 percent, infrastructure sector 9.5 percent, and other cross cutting sectors by 7.5 percent. Likewise, private sector is estimated to have suffered loss/damage of Rs. 540 billion (76.0 percent) followed by the government sector Rs. 166.1 billion (24.0 percent). Table 15 (b): Damaged Caused by Earthquake (Sector-wise Detail) (In Rs. 10 Million) Sector Damage Loss Total Social Sector 35502.8 5359.7 40862.5 Resident and Human Settlement 30363.2 4690.8 35054.0 Health 642.2 112.2 754.4 Education 2806.4 325.4 3131.8 Cultural Heritage 1691.0 231.3 1922.3 Productive Sector 5807.4 12004.6 17812.0 Agriculture 1640.5 1196.2 2836.7 Irrigation 38.3 - 38.3 Commerce 901.5 793.8 1695.3 Industry 839.4 1087.7 1927.1 Tourism 1886.3 6237.9 8124.2 Finance 501.5 2689.0 3190.5 Infrastructure Sector 5246.0 1432.3 6678.3 Electricity 1780.7 343.5 2124.2 Communication 361.0 508.5 869.5 Community Infrastructure 334.9 - 334.9 Transportation 1718.8 493.0 2211.8 Water and Sewerage 1050.6 87.3 1137.9 Cross Cutting 5187.2 106.1 5293.3 Law and Order 1875.7 - 1875.7 Natural Disaster Risk Reduction 15.5 - 15.5 Forestry and Environment 3296.0 106.1 3402.1 Total 51743.4 18902.7 70646.1

Source:Government of Nepal

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15.6 Low economic growth, high demand, and expansionary budget, hindered supply situation, and administrative weaknesses resulting from the earthquake and obstruction in supplies may exert additional inflationary pressure in current fiscal year. Augmented flow of financial resources from both the private and the government sectors for reconstruction wroks will exert consumer inflationary pressure. As greater demand will be created for construction materials and human resource, non- agriculture and services sectors also may face higher price inflation. Besides, there is a possibility of inflationary pressure on agricultural produces due to adverse effect of weather on the agriculture sector. Cost push inflation is expected due to possible price rise of goods and services resulting from escalation in labor wages due to shortage of labors created by surge in demand for human resource in the construction sector. 15.7 Balance of Payment is estimated to be adversely impacted as imports will grow on the face of inability of domestic production towards meeting the escalated demand for construction materials (steel, fitting accessories, cement, bricks, and timber etc.) required for reconstruction works. 15.8 As per the preliminary estimate of the damage caused by the earthquake, reconstruction and recovery could cost Rs. 669.5 billion. Of this, share of the social sector will be the highest amounting to Rs. 407 billion (60.9 percent) followed by the productive sector Rs. 115.6 billion (17.3 percent), infrastructure sector Rs. 74.3 billion (11.1 percent) and other cross cutting sectors requires Rs. 71.9 percent (10.7 percent). The reason for the housing sector to absorb highest share (49 percent) for reconstruction and new constructions is colossal damages rendered by the earthquake to private, government and school buildings.

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Table 15 (c) : Resources for Reconstruction and Recovery (In Rs. 10 Million) Sector Amount Required Share (Percent) Social Sector 40774.7 60.9 Housing 32776.2 49.0 Health 1469.0 2.2 Nutrition 503.6 0.8 Education 3970.6 5.9 Cultural Heritage 2055.3 3.1 Productive Sector 11561.8 17.3 Agriculture 1556.1 2.3 Irrigation 46.7 0.1 Commerce 2005.1 3.0 Industry 735.7 1.1 Tourism 3871.0 5.8 Finance 3347.2 5.0 Infrastructure Sector 7426.6 11.1 Electricity 1858.6 2.8 Communication 493.9 0.7 Community Infrastructure 445.0 0.7 Transportation 2818.5 4.2 Water and Sewerage 1810.6 2.7 Cross Cutting 7187.3 10.7 Law and Order 1844.2 2.8 Natural Disaster Risk Reduction 820.4 1.2 Forestry and Environment 2519.7 3.8 Employment and Living Standard 1254.7 1.9 Social Security 639.8 1.0 Gender and Social Inclusion 108.6 0.2 Total 66950.5 100 Source: PDNA Report, National Planning Commission 15.9 National Reconstruction Authority has developed institutional structure and implementation procedures including policy arrangement, rules and

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guidelines. Based on this, it has initiated Grant Agreements in Dolakha district on 13 th March, 2016 Of the 14 quake affected districts, survey works in 11 districts outside Kathmandu valley is in final stage. Grant Agreement and Reconstruction of Private Homes 15.10 Decision had been taken prior to the formation of National Reconstruction Authority to distribute Rs. 200 thousand in three installments to earthquake victims for the rebuilding their homes. Installment provision has been revised with a view to ease such rebuilding works. Distribution of grants was initiated from Singati resource center of Dolakha District with enrollment of 641 homeowners of Lamidanda and Laduk VDCs by signing grant agreements and availing grant amounts through their individual bank accounts. So far, such agreements have been concluded with more than 6 thousand homeowners, while signing of agreements is continuing. Enrollment list of 300,961 homeowners from the selected 383 VDCs for agreements has also been published. Reconstruction works of private homes are in progress in Dolakha, Ramechhap, Okhaldhunga, Sindhupalchowk and Gorakha following the initiation for signing of second phase of an agreements on April 13, 2016. 15.11 By 2 May 2016, lists have been published for signing grant agreements in line with the decision and work plans of District Coordination Committees and Sub-Committees of worst affected 11 districts. 15.12 Works undertaken in 79 VDCs of Rasuwa, Dhading, Makwanpur and Kavre Districts are in final stages. List of homeowners of the remaining VDCs and Municipalities to receive grants will be published subsequent to the receipt of additional detailed survey report and data analysis. Name lists approved by the Authority after completion of survey shall be forwarded to the concerned districts for signing grant agreements. In forthcoming days, such agreement shall be extended to VDCs by VDCs. Table 15 (d): List of Homeowners Entitled to Receive Grant SN. District Homeowners (Number) 1 Okhaldhunga 15005 2 Sidhuli 21114 3 Ramechhap 30519 4 Dolakha 49751 5 Sindhupalchwok 35308 6 Kavre 40264 7 Nuwakot 38235

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8 Rasuwa 5417 9 Dhading 23440 10 Makwanpur 7412 11 Gorkha 34496 Total 300961 Source: National Reconstruction Authority 5.13 A total of 17 earthquake resilient home models have been designed for rebuilding homes. In addition, there is also a provision for building earthquake resistant homes in consonance with local needs and geography. .Likewise, arrangements have been made to provide checklists for standards to abide by while constructing earthquake resilient homes. Similarly, as per revised working guidelines, grants may be provided in cases where homes are constructed by adopting earthquake resilient technology, and if found appropriate upon inspection by technicians. Detailed Household Surveys 5.14 By 2 May 2016, the housing reconstruction data collection process has completed detailed surveys in earthquake affected 548 VDCs. About 1600 Engineers have been deployed for surveys in worst hit areas. Survey has been completed for 2,574 homeowners of eight Wards of Bungmati and Khokana of Karyavinayak Municipality. Questionnaires have been improvised with a view to complete survey in prompt and efficient manner in Kathmandu Valley.

Box 15 (a) : Household Survey

• About 1600 Engineers deployed for household survey

• Survey completed in most of the worst hit areas of 11 districts • Survey completed in eight wards of Karyabinayak Municipality of Lalitpur • Homeworks are underway for making the survey works prompt and efficient

Expenditure Authorization 5.15 As per the structure constituted by National Reconstruction Authority (NRA), ministries have been issued with expenditure authorization for Rs. 19.72 billion including Rs. 13.50 billion in recurrent and 6.22 billion

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in capital expenditures. Of the released fund, a sum of Rs. 14 billion is meant for disbursement of grants to those homeowners in VDCs and Municipalities whose names have been published. Foreign Grants 5.16 Development partners, at the donor conference held last year, had committed to provide credits and grants of about Rs. 400 billion for reconstruction works. Of this commitment, agreements and understandings have been reached for the receipt of grants equivalent to Rs. 50 billion from China and Rs. 25 billion from India. Similarly, including this amount, understandings and agreements have been reached with various donor agencies and friendly nations for the receipt of about Rs. 188 billion as loans and grants while consultations are underway for receipt of amounts so committed. Likewise, the process for reaching an agreement with India for the receipt of additional Rs. 75 billion as concessional loan assistance is in final stage. After receipt of this amount it is estimated to reach about 64 percent of the commitments. Central Project Implementation Units (CPIU) 5.17 Central Project Implementation Unit have been established in four different Ministries by conferring the department level authority and work responsibilities for leading the reconstruction and resettlement works. Central Project Implementation Unit under the Ministry of Urban Development has initiated reconstruction of settlements, residential and government building works. Works are being carried out through CPIU based at the Ministry of Culture and Civil Aviation for rebuilding of historical, cultural and archaeological heritages, while CPIU based at the Ministry of Education is carrying out rebuilding works of school and educational buildings. Likewise, CPIU based at the Ministry of Federal Affairs and Local Development is actively engaged in reconstruction works of damaged local infrastructures and distribution of grants for building private homes. Reconstruction and resettlement works are being carried out through other Ministries including Ministries of Health and Agriculture as well. As per the target of the Ministry of Urban Development to recruit about 2,600 Engineers, 1346 of them have been working at concerned VDCs and Municipalities after receiving trainings. Ministry of Urban Development has been making necessary preparations so as to appoint all Engineers and Assistant Engineers and imparting them with Training of Trainers trainings.

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Reconstruction of Archaeological and Cultural Heritages 5.18 Necessary processes for the reconstruction of heritages of historical and archaeological importance are in progress. Design selection process for reconstruction of Dharahara is underway. Likewise, process for receiving deposits at Rastriya Banijya Bank’s account for its reconstruction is ongoing. The campaign “I will construct my Dharara” has begun to lead the task of reerecting Dharahara which is regarded as country’s common landmark and asset. Tender process for 40 archaeological projects is in progress. Likewise, reconstruction of other historical and cultural heritages including Ranipokhari has also begun. Reconstruction of Health and Education Buildings 5.19 Reconstruction of earthquake damaged educational institutions has begun in various districts. Tender has been invited for the construction of 3 school buildings in Kavre district and 5 in Lalitpur district. So far, agreements have been reached to construct 600 school buildings while reconstruction works have been initiated under the support of government and partner organizations. Likewise, there has been understanding with the partner organization to rebuild health institutions at an investment of Rs. 7 billion. Policy and Institutional Arrangements 5.20 Reconstruction works are being carried out in line with Reconstruction and Resettlement Policy, 2016, while six working guidelines have been developed to make the reconstruction efforts simple and easy. Likewise, clarity is brought in the institutional structure and implementation procedures of NRA by forming structures from the Central level all the way through district level down to the village level. Village Development Committees and Municipalities have been made more accountable to carry out as per the Agreements. Box 15 (b): Policy Arrangement

• Housing Grant Distribution Guidelines

• Environment Impact Assessment Guidelines • Land Acquisition Guidelines • Land Registration Guidelines • Public Procurement Guidelines

• Non-Government Organization Mobilization Guidelines

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Reconstruction Community Committee and Volunteer Mobilization 15.21 Work procedures for formation of Reconstruction Community Committees at each settlement and village of earthquake affected areas are being prepared with a view to increase the involvement of local people and their ownership of reconstruction efforts. Likewise, homeworks are being done for making arrangement of temporary shelters to the people living under the makeshift tents, permanent structures to the people living at temporary shelters and shared buildings save them from risk in earthquake worst hit areas. Volunteers are mobilized to make these efforts effective while necessary guidelines are being developed accordingly. Five-Year Plan 15.22 A Five-Year Plan and Post Disaster Recovery Framework-PDRF has been prepared and made public. This plan has set the time-frame and cost required for reconstruction activities in upcoming years. On the other hand, this framework has remained as a major foundation for international support mobilization in reconstruction initiatives. Since five-year plan has been formulated on the basis of Post Disaster Need Assessment (PDNA), this will provide critical support for fiscal mobilization together with program identification and their prioritization in coming years. As per this five-year plan, about Rs. 8.32 billion is estimated for the post-quake reconstruction and new building works.

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ANNEXES

List of Tables Page 1. Economic Activity Table 1.1: Gross Value Added by Industrial Division (at current prices) 1 Table 1.2: Gross Value Added by Industrial Division (at2000/01 prices) 2 Table 1.3: Gross Output by Industrial Division (at current prices) 3 Table 1.4: Annual Growth Rate of GDP by Economic Activities (at constant prices) 4 Table 1.5: Composition of GDP by ISIC Division (at current prices) 5 Table 1.6: GDP, GDP Growth Rate, Deflators and Composition 6 Table 1.7: GDP by Expenditure Category (at current prices) 7 Table 1.8: GDP by Expenditure Category (at 2000/01 prices) 8 Table 1.9: Intermediate Consumption by Industrial Division (at current prices) 9 Table 1.10: Gross Disposable Income and Saving (at current prices) 10 Table 1.11: Gross Domestic Product Deflator by Industry Division 11 Table 1.12: Summary of Macroeconomic Indicators 12 2. Public Finance Table 2.1: Public Income and Expenditure 13 Table 2.2 : Tax Revenue 14 Table 2.3 : Non-Tax Revenue 15 Table 2.4 : Functional and Service Description (Current Expenditure) 16 Table 2.5 : Functional and Service Description (Capital Expenditure) 17 Table 2.6 : Principal Repayment, Loan and Share Investment in Public Enterprises 18 Table 2.7: Foreign Aid Commitment by Sources 19 Table 2.8: Foreign Aid Disbursement by Source 19 Table 2.9: Functional and Service Description of Foreign Grants Received 20 Table 2.10: Functional and Service Description of Foreign Loan received 21 Table 2.11: Foreign Loan and Debt Servicing 22 Table 2.12: Ownership Pattern of Government Bonds and Treasury Bills 23 3. Price and Supply Table 3.1: Overall Urban Consumers' Price Index 24 Table 3.2 (a): National Urban Consumers' Price Index by Commodities Group 25 Table 3.2 (b): National Urban Consumers' Price Index by Commodities Group (First 26 Eight Months) Table 3.2 (c): Urban Consumers' Price Index by Commodities Group, Kathmandu 27 Table 3.2 (d): Urban Consumers' Price Index by Commodities Group, Terai 28 Table 3.2 (e): Urban Consumers' Price Index by Commodities Group, Hill 29 Table 3.3(a): National Wholesale Price Index, Annual 30 Table 3.3 (b): National Wholesale Price Index (First Eight Months) 31 Table 3.3 (c): National Wholesale Price Index (Annual Average) 32 Table 3.4(a): National Salary and Wage Rate Index, Annual 33 i

Table 3.4(b): National Salary and Wage Rate Index, first Eight Months 34 Table 3.4(c): National Salary and Wage Rate Index (Annual Average) 35 Table 3.5: Average Retail Price of Some Major Commodities 36 Table 3.6 (a): Price Situation of Petroleum Products in FY 2014/15 37 Table 3.6 (b): Price Situation of Some Petroleum Products (Kathmandu valley) 38 Table 3.7 Supply Situation of Some Petroleum Products 39 4. Money and Banking Table 4.1 Monetary Survey 40 Table 4.2 (a): Factors Affecting Money Supply 41 Table 4.2 (b): Factors Affecting Money Supply (Annual change in percent) 42 Table 4.3: Sources and Uses of Banks and Financial Institutions 43 Table 4.4: Sources and Uses of Fund of Commercial Banks 44 Table 4.5: Sectoral Outstanding Loan of Commercial Banks 45 Table 4.6(a): Sources and Uses of Fund of Development Banks ("B"- Class FIs) 46 Table 4.6 (b): Sources and Uses of Fund of Development Banks ("B"- Class FIs) 46 Table 4.7: Sources and Uses of Fund of Finance Companies ("C"- Class FIs) 47 Table 4.8: Sources and Uses of Fund of Micro-Finance Development Banks (including 48 Grameen Bikas Banks) Table 4.9: Sources and Uses of Fund of Cooperatives Approval from NRB 48 Table 4.10: Sources and Uses of Fund of Employees Provident Fund 49 Table 4.11: Sources and Uses of Fund of Citizen Investment Trust 50 5. Capital Market Table 5.1 Status of Primary Market Trend 51 Table 5.2 Status of Secondary Market Trend 52 6. External Sector Table 6.1: Direction of Foreign Trade 53 Table 6.2: Commodity Trade by SITC Group 54 Table 6.3(a):Export of Major Commodities to India 55 Table 6.3(b):Export of Major Commodities of China 56 Table 6.3(c): Export of Major Commodities to Other Countries 57 Table 6.4 (a): Import of Selected Commodities from India 58 Table 6.4 (b): Import of Selected Commodities from China 59 Table 6.4(c): Import of Selected Commodities from Other Countries 60 Table 6.5: Income and Expenditure of Convertible Foreign Exchange 61 Table 6.6: Gross Foreign Assets of Banking System 62 Table 6.7: Balance of Payments Summary 63 7. Poverty Alleviation and Employment Table 7.1: Status of Foreign Employment by Country 64 8. Agriculture, Industry and Tourism Table 8.1: Area, Production and Yield of Principal Food Crops 65 Table 8.2: Area, Production and Yield of Principal Cash Crops 65 ii

Table 8.3: Other Crops Production 66 Table 8.4: Livestock Production 66 Table 8.5: Quantity index of Agriculture Commodities 67 Table 8.6: Use of Chemical Fertilizer, Improved Seeds and Insecticides 68 Table 8.7: Extension of Additional Irrigation Facilities 68 9. Industry Sector Table 9.1: Number of Registered Cottage and Small Scale Industries and Fixed Capital Investment 69 Table 9.2: Detail on in Industrial Area 70 Table 9.3: Tourists Arrival and Length of Stay 71 Table 9.4:Tourists Arrival by Purpose of Visit 72 Table 9.5: Tourist Arrivals by Major Countries 73 Table 9.6: Foreign Exchange Earnings from Tourism 74 Table 9.7: Number of Hotels and Hotel Beds 75 Table 9.8: Mountaineering Expedition Teams 75 Table 9.9: Hotel Management and Tourism Training 76 10. Urban Development Table 10.1: Status of Energy Consumption 77 Table 10.2: Status of Electricity Generation and Consumption 78 Table 10.3: Consumption of Petroleum Products 79 11. Transport and Communication Table 11.1: Extension of Road Facilities 80 Table: 11.2(a): Number of Vehicles Registered 80 Table 11.2 (b): Vehicles Registration 81 13. Social Sector Table 13.1: Technical and Vocational Education Programs 82 Table 13.2: Ratio of Student Per Teacher (Academic Year 2015) 83 Table 13.3 : Region-Wise Detail of Affiliated Higher Secondary Schools 84 Table 13.4 (a) : Numeric Detail of Teachers Training at the Basic levels (Academic 85 Year 2015) Table 13.4 (b) : Numeric Detail of Teachers Training at the Secondary Levels 85 (Academic Year 2015) Table 13.5: Number of Teachers 86 Table 13.6 : Number of Schools and Students 87 Table 13.7 (a) : Region-Wise distribution of Primary (1-5) Schools, Students and 88 Teachers Under Public, Community and Private Sector Table 13.7 (b) : Region-Wise Distribution of Lower Secondary (6-8) Schools, Students 89 and Teachers Under Public, Community and Private Sector Table 13.7 (c): Region-Wise Distribution of Secondary (9-10) Schools, Students and 90 Teachers Under Public, Community and Private Sector Table 13.8 : Number of Students appeared and Passed in SLC 91 Table 13.9 : Number of Students Enrolled in Higher Level of Education 92

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Table 13.10 : Number of Graduate Students in TU 93 Table 13.11: Major Health Indicators and Achievements 94 Table 13.12 : District-Wise Statistics of Child Care Homes and benefited Children's 95 Table 13.13 : Details of benefited Senior Citizens from Elderly Home in FY 2014/15 96 Table 13.14 : Extension of Drinking Water and Sewerage Facilities 97 14. Public Enterprises and Privatization Table 14.1: Financial Performance of Public Enterprises 98

Table 1.1 : Gross Value Added by Industrial Division (At Current Price) Rs. Ten Million Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P Agriculture and forestry 22353.6 24332.3 30547.7 39151.9 47327.0 50046.5 52786.9 58595.1 61423.9 65146.9 Fishing 328.7 386.8 407.6 423.6 487.9 581.9 664.6 865.9 932.8 1048.7 Mining and quarrying 341.7 437.5 508.4 592.6 695.6 816.6 956.9 1100.3 1187.5 1225.6 Manufacturing 5217.2 5718.5 6544.7 7092.4 8053.1 9116.4 10031.2 11299.5 11898.1 11556.6 Electricity, gas and water 1484.1 1521.9 1462.9 1524.4 1600.2 1751.8 2055.3 2136.2 2162.0 2121.5 Construction 4509.9 5413.4 6374.1 7728.9 8935.6 9853.9 10948.8 12636.4 13928.9 14377.1 Wholesale and retail trade 9264.8 10530.6 12412.1 16106.7 17930.6 19816.4 22987.2 27157.3 28867.6 29712.6 Hotels and restaurants 1004.3 1150.3 1394.3 1734.7 2105.7 2530.7 2988.6 3530.9 4047.9 4348.6 Transport, storage and communications 6955.5 7681.8 9261.8 9530.4 10583.4 12235.4 14073.5 15576.5 16497.6 17591.6 Financial intermediation 2846.7 3353.9 3910.0 4608.3 5011.1 5852.9 6218.3 7936.3 9140.6 10356.2 Real estate, renting and business activities 7079.1 7363.6 8162.5 9374.7 10623.6 12321.3 13915.7 15298.4 16694.7 19132.5 Public administration and defence 1222.7 1435.2 1855.6 2169.5 2483.0 3054.7 3223.6 4432.4 5142.1 5439.7 Education 4093.9 4872.2 6264.2 6138.4 6773.9 8179.7 9156.6 11525.4 12936.3 14115.1 Health and social work 856.8 1096.3 1374.4 1538.2 1708.7 2043.1 2232.7 2772.5 3340.7 3699.5 Other community, social and personal service activities 2177.4 2650.0 3408.9 4142.3 4694.7 5546.1 5802.6 7354.1 8001.8 8996.0 Gross value added 69736.4 77944.2 93889.0 111857.1 129014.2 143747.4 158042.6 182217.3 196202.6 208868.2 Financial intermediation services indirectly measured ( FISIM) 2150.5 2418.5 2936.2 3515.6 4166.0 4999.2 5520.5 6343.5 7261.6 8140.7 Gross value added at basic prices 67585.9 75525.7 90952.8 108341.5 124848.2 138748.2 152522.1 175873.8 188941.0 200727.5 Taxes less subsidies on products 5196.8 6040.1 7874.4 10935.8 11847.2 13986.2 16979.0 20580.2 23106.0 24141.6 Gross domestic product at producers price 72782.7 81565.8 98827.2 119277.4 136695.4 152734.4 169501.1 196454.0 212047.0 224869.1 P = Preliminary, R = Revised Note : Nepal Standards Industrial Classification (NSIC) Major Division 16 & 17 estimates are included in Major Division 15. Source: Central Bureau of Statistics Table 1.2 : Gross Value Added by Industrial Division (At 2000/01 Prices) Rs. in ten million Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 18195.8 19251.4 19825.7 20219.6 21127.1 22095.0 22331.0 23344.8 23509.5 23776.5 Fishing 283.8 304.5 320.7 332.1 351.6 378.1 388.3 407.4 436.2 487.5 Mining and Quarrying 238.3 251.3 253.1 258.5 263.7 277.0 282.5 315.9 323.3 302.2 Manufacturing 3989.1 3954.5 3913.2 4029.1 4192.3 4344.5 4505.9 4788.8 4806.8 4332.9 Electricity gas and water 1306.5 1320.4 1275.0 1298.9 1356.4 1469.0 1473.1 1521.3 1536.6 1511.1 Construction 3145.3 3304.3 3337.1 3543.0 3712.6 3720.7 3811.9 4158.0 4276.6 4106.4 Wholesale and retail trade 6429.2 6696.2 7048.1 7523.7 7629.8 7896.7 8469.3 9391.8 9590.1 9482.1 Hotels and restaurants 827.8 885.1 905.6 964.6 1024.4 1100.0 1160.5 1239.1 1280.4 1218.3 Transport, storage and communications 4409.4 4822.6 5158.5 5465.7 5750.4 6216.0 6691.5 7042.0 7480.7 7671.5 Financial intermediation 2210.3 2414.2 2463.2 2532.7 2616.3 2707.1 2682.5 2781.8 2862.6 2957.2 Real estate, renting and business activities 4124.0 4554.4 4642.1 4781.8 4889.4 5034.6 5296.1 5488.9 5531.3 5737.3 Public Administration and defence 926.2 931.9 1001.2 1040.5 1080.6 1120.3 1182.2 1241.8 1309.1 1384.8 Education 3073.8 3271.6 3623.3 3863.8 3979.9 4201.9 4450.5 4664.6 4839.2 5162.7 Health and social work 688.8 747.4 819.1 858.1 901.2 959.1 1002.1 1047.2 1157.1 1259.5 Other community, social and personal service activities 1664.3 1820.4 2052.0 2296.6 2459.9 2616.3 2741.6 2872.2 2997.8 3165.6 Agriculture 18479.6 19555.9 20146.4 20551.7 21478.6 22473.0 22719.3 23752.2 23945.7 24264.0 Non Agriculture 33033.1 34974.4 36491.4 38457.0 39856.9 41663.1 43749.6 46553.5 47991.5 48291.6 Total GVA including FISIM 51512.7 54530.3 56637.7 59008.6 61335.5 64136.2 66469.0 70305.7 71937.2 72555.6 Financial intermediation indirectly measured 2147.6 2304.3 2372.5 2432.7 2582.1 2672.5 2691.9 2883.0 2952.4 3036.5 GDP at basic prices 49365.1 52226.0 54265.2 56575.9 58753.4 61463.7 63777.1 67422.7 68984.8 69519.1 Taxes less subsidies on products 3838.8 4225.7 4745.5 5277.0 5216.0 5564.3 6018.3 6552.8 7006.6 6898.4 Gross domestic product at producers price 53203.8 56451.7 59010.7 61852.9 63969.4 67027.9 69795.4 73975.4 75991.5 76417.5 P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 1.3 : Gross Output by Industrial Division (at current prices) Rs. In ten million

Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 29938.50 32940.10 40998.70 51487.10 62330.28 66574.67 70213.24 78286.7538 82005.8357 86680.2995

Fishing 379.00 437.30 458.30 474.56 546.58 651.90 744.60 970.1 1045.08873 1174.95146

Mining and Quarrying 429.60 550.80 639.70 746.10 875.10 1026.40 1206.89 1388.93536 1498.99063 1541.92021

Manufacturing 18649.60 20410.70 23340.80 25286.89 28900.39 32749.98 36008.08 40566.7008 42675.7636 41114.2574

Electricity gas and water 2510.60 2641.80 2627.30 2947.77 3149.23 3491.92 4095.13 4446.52108 4667.39728 5051.76526

Construction 9174.60 11163.90 13127.80 15872.77 18261.44 19934.90 22032.08 25586.445 28060.7941 28616.6936

Wholesale and retail trade 11032.51 12540.20 14875.90 19303.57 21490.67 23750.18 27546.17 32540.3046 34589.2667 35365.5902

Hotels and restaurants 3242.23 3753.63 4531.10 5604.14 6837.61 8263.37 9508.02 10894.3358 12040.7206 13032.9326

Transport, storage and communications 12179.90 13312.52 15924.50 16402.37 18270.60 20986.98 23756.89 26013.7892 27467.6999 29535.743

Financial intermediation 3689.70 4390.74 5111.00 5999.46 7139.52 8668.76 9711.37 11066.6636 12682.952 14009.949

Real estate, renting and business activities 10057.50 10788.72 12129.30 13958.10 15720.33 18050.08 20142.92 21979.296 24254.7551 26930.2971

Public Administration and defence 1652.40 1922.40 2403.00 2887.90 3307.00 3992.80 4073.21 5124.5 6024.5 6439.6

Education 5332.80 6326.30 8088.90 8249.48 9274.07 10950.19 12138.35 14378.7108 15808.0265 17034.9112

Health and social work 1265.20 1535.70 1900.90 2186.27 2472.68 2895.50 3116.87 3741.09977 4375.43504 4834.0747

Other community, social and personal service activities 3095.90 3745.30 4727.80 5862.87 6647.32 7837.17 8294.74 10683.1606 11270.8434 12720.5618 Gross output at basic prices 112630.04 126460.11 150885.00 177269.36 205222.82 229824.82 252588.56 287667.316 308468.069 324083.547 Note : NSIC Division 16 & 17 are included in the Division 15. P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 1.4 : Annual Growth Rate of GDP by Economic Activities (at constant prices) In percentage Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 0.94 5.80 2.98 1.99 4.49 4.58 1.07 4.54 0.71 1.14 Fishing 3.01 7.29 5.31 3.55 5.88 7.53 2.71 4.90 7.09 11.76 Mining and Quarrying 1.48 5.46 0.72 2.14 2.01 5.03 1.98 11.85 2.34 -6.54 Manufacturing 2.55 -0.87 -1.05 2.96 4.05 3.63 3.72 6.28 0.37 -9.86 Electricity gas and water 13.00 1.06 -3.44 1.87 4.43 8.30 0.28 3.27 1.01 -1.66 Construction 2.49 5.06 0.99 6.17 4.79 0.22 2.45 9.08 2.85 -3.98 Wholesale and retail trade -5.59 4.15 5.25 6.75 1.41 3.50 7.25 10.89 2.11 -1.13 Hotels and restaurants 3.46 6.92 2.31 6.52 6.20 7.38 5.50 6.77 3.33 -4.85 Transport, storage and communications 4.98 9.37 6.97 5.95 5.21 8.10 7.65 5.24 6.23 2.55 Financial intermediation 11.39 9.23 2.03 2.82 3.30 3.47 -0.91 3.70 2.91 3.30 Real estate, renting and business activities 11.76 10.44 1.93 3.01 2.25 2.97 5.19 3.64 0.77 3.72 Public Administration and defence 1.35 0.62 7.43 3.93 3.85 3.67 5.53 5.04 5.42 5.78 Education 7.33 6.44 10.75 6.64 3.01 5.58 5.92 4.81 3.74 6.69 Health and social work 6.46 8.51 9.59 4.77 5.02 6.43 4.48 4.50 10.49 8.85 Other community, social and personal service activities 19.45 9.38 12.72 11.92 7.11 6.36 4.79 4.77 4.37 5.60 Agriculture 0.97 5.82 3.02 2.01 4.51 4.63 1.10 4.55 0.81 1.33 Non Agriculture 4.36 5.88 4.34 5.39 3.64 4.53 5.01 6.41 3.09 0.63 Total Gross Value Added including FISIM 3.12 5.86 3.86 4.19 3.94 4.57 3.64 5.77 2.32 0.86 Financial intermediation services indirectly measured (FISIM) 12.41 7.30 2.96 2.54 6.14 3.50 0.72 7.10 2.41 2.85 GDP at basic prices 2.75 5.80 3.90 4.26 3.85 4.61 3.76 5.72 2.32 0.77 Tax less subsidies on products 12.74 10.08 12.30 11.20 -1.16 6.68 8.16 8.88 6.93 -1.54 GDP at producers' prices 3.41 6.10 4.53 4.82 3.42 4.78 4.13 5.99 2.73 0.56 P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 1.5 : Composition of GDP by ISIC Division (at current prices) In percentage Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 32.05 31.22 32.54 35.00 36.68 34.82 33.40 32.16 31.31 31.19

Fishing 0.47 0.50 0.43 0.38 0.38 0.40 0.42 0.48 0.48 0.50

Mining and Quarrying 0.49 0.56 0.54 0.53 0.54 0.57 0.61 0.60 0.61 0.59

Manufacturing 7.48 7.34 6.97 6.34 6.24 6.34 6.35 6.20 6.06 5.53

Electricity gas and water 2.13 1.95 1.56 1.36 1.24 1.22 1.30 1.17 1.10 1.02

Construction 6.47 6.95 6.79 6.91 6.93 6.86 6.93 6.93 7.10 6.88

Wholesale and retail trade 13.29 13.51 13.22 14.40 13.90 13.79 14.54 14.90 14.71 14.23

Hotels and restaurants 1.44 1.48 1.49 1.55 1.63 1.76 1.89 1.94 2.06 2.08

Transport, storage and communications 9.97 9.86 9.86 8.52 8.20 8.51 8.90 8.55 8.41 8.42

Financial intermediation 4.08 4.30 4.16 4.12 3.88 4.07 3.93 4.36 4.66 4.96

Real estate, renting and business activities 10.15 9.45 8.69 8.38 8.23 8.57 8.81 8.40 8.51 9.16

Public Administration and defence 1.75 1.84 1.98 1.94 1.92 2.13 2.04 2.43 2.62 2.60

Education 5.87 6.25 6.67 5.49 5.25 5.69 5.79 6.33 6.59 6.76

Health and social work 1.23 1.41 1.46 1.38 1.32 1.42 1.41 1.52 1.70 1.77

Other community, social and personal service activities 3.12 3.40 3.63 3.70 3.64 3.86 3.67 4.04 4.08 4.31 P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 1.6 : GDP, GDP Growth Rate, Deflators and Composition (by Broad Industry Group) Rs. In ten million Fiscal Year Descripiton 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P GDP at basic prices (current) 67585.9 75525.7 90952.8 108341.5 124848.2 138748.2 152522.1 175873.8 188941.0 200727.5 Primary Sector 23024.0 25156.6 31463.7 40168.1 48510.5 51445.0 54408.4 60561.3 63544.2 67421.2 Secondary Sector 11211.2 12653.8 14381.6 16345.7 18588.9 20722.1 23035.3 26072.1 27989.0 28055.3 Tertiory Sector 35501.2 40133.8 48043.6 55343.3 61914.8 71580.3 80598.9 95583.8 104669.5 113391.8 GDP at basic price (constant) 49365.1 52226.0 54265.2 56575.9 58753.4 61463.7 63777.1 67422.7 68984.8 69519.1 Primary Sector 18717.9 19807.2 20399.5 20810.2 21742.4 22750.0 23001.8 24068.1 24269.0 24566.2 Secondary Sector 8440.9 8579.2 8525.3 8871.0 9261.3 9534.2 9790.9 10468.1 10620.0 9950.5 Tertiory Sector 24353.9 26143.8 27713.0 29327.5 30331.9 31852.0 33676.3 35769.4 37048.2 38038.9 Annual GDP (constant price) Growth Rate 2.8 5.8 3.9 4.3 3.8 4.6 3.8 5.7 2.3 0.8 Primary Sector 1.0 5.8 3.0 2.0 4.5 4.6 1.1 4.6 0.8 1.2 Secondary Sector 4.0 1.6 -0.6 4.1 4.4 2.9 2.7 6.9 1.5 -6.3 Tertiory Sector 4.5 7.3 6.0 5.8 3.4 5.0 5.7 6.2 3.6 2.7 Implicit GDP Deflator 135.4 142.9 165.8 189.6 210.3 224.1 237.8 259.2 272.7 287.9 Primary Sector 123.0 127.0 154.2 193.0 223.1 226.1 236.5 251.6 261.8 274.4 Secondary Sector 132.8 147.5 168.7 184.3 200.7 217.3 235.3 249.1 263.5 281.9 Tertiory Sector 145.8 153.5 173.4 188.7 204.1 224.7 239.3 267.2 282.5 298.1 Composition of GDP (in percentage) Primary Sector 33.0 32.3 33.5 35.9 37.6 35.8 34.4 33.2 32.4 32.3 Secondary Sector 16.1 16.2 15.3 14.6 14.4 14.4 14.6 14.3 14.3 13.4 Tertiory Sector 50.9 51.5 51.2 49.5 48.0 49.8 51.0 52.5 53.3 54.3 P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 1.7 : GDP by Expenditure Category (at current prices) Rs. in ten million Fiscal Year Expenditure 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P Gross Domestic Product at producers price 72782.7 81565.8 98827.2 119277.4 136695.4 152734.4 196454.0 196454.0 212047.0 224869.1 Total consumption 65637.4 73547.0 89504.2 105618.5 117603.0 135953.9 173031.2 173031.2 193404.6 213052.0 Government consumption 6694.9 8066.3 10652.7 11918.9 13091.7 16437.0 20191.5 20191.5 23253.2 24614.6 Collective Consumption 4373.9 5499.6 6983.8 7747.3 8607.2 10957.0 14205.2 14205.2 17632.4 19247.8 Individual Consumption consumption 2321.0 2566.7 3668.9 4171.6 4484.5 5480.0 5986.3 5986.3 5620.8 5366.8 Private consumption 57691.1 64108.5 77276.2 91699.3 102212.6 116786.1 149337.5 149337.5 166296.2 184371.5 Food 34037.7 38503.7 48455.2 57499.1 65078.6 75415.6 97613.2 97613.2 110069.4 122930.7 Non-food 16557.3 17999.9 20323.2 24116.4 25672.2 28528.8 35684.5 35684.5 38986.9 43163.7 services 7096.0 7604.9 8497.8 10083.9 11461.8 12841.8 16039.9 16039.9 17239.9 18277.1 Nonprofit institutions 1251.5 1372.1 1575.3 2000.2 2298.7 2730.7 3502.2 3502.2 3855.2 4065.9 Actual final consumption expenditure of household 61263.5 68047.4 82520.4 97871.2 108995.8 124996.9 158826.0 158826.0 175772.2 193804.1 Gross capital formation 20877.9 24727.2 31302.9 45648.9 51926.8 52688.9 80875.8 80875.8 82230.3 76355.6 Gross fixed capital formation 15333.7 17844.6 21103.9 26488.8 29273.0 31718.5 46201.3 46201.3 58834.5 56245.8 Government 2464.5 3299.3 4427.8 5366.5 6380.6 7155.5 9497.9 9497.9 11025.4 13277.4 Private 12869.2 14545.3 16676.1 21122.3 22892.4 24562.9 36703.4 36703.4 47809.1 42968.3 Change in stock * 5544.2 6882.6 10199.0 19160.2 22653.8 20970.4 34674.4 34674.4 23395.8 20109.9 Net exports of goods and services -13732.6 -16708.4 -21979.9 -31990.0 -32834.5 -35908.4 -57453.1 -57453.1 -63587.9 -64538.5 Imports 23089.3 27129.1 34253.6 43419.8 45005.9 51294.8 80055.2 80055.2 88344.4 88504.9 Goods 19043.7 21796.3 27922.8 36669.3 38837.1 45465.3 69637.3 69637.3 76177.3 75952.9 Services 4045.6 5332.8 6330.8 6750.6 6168.7 5829.5 10417.9 10417.9 12167.1 12552.0 Exports 9356.7 10420.7 12273.7 11429.8 12171.4 15386.3 18118.0 22602.2 24756.5 23966.4 Goods 6148.8 6197.1 6990.7 6317.8 6870.2 8151.2 8599.0 10096.1 9827.6 7991.3 Services 3207.9 4223.6 5283.0 5112.1 5301.3 7235.2 9519.1 12506.1 14928.8 15975.2 R = Revised *Since Change in stock is derived residually; statistical discrepancy /error is also included Source: Central Bureau of Statistics Table 1.8 : GDP by Expenditure Category (at 2000/2001 Prices) Rs. in ten mllion Fiscal Year Expenditure 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P Gross Domestic Product at producers price 53203.8 56451.7 59010.7 61852.9 63969.4 67027.9 69795.42 73975.4 75991.5 76417.5 Total consumption 48565.7 49284.9 52291.0 55267.6 56313.8 65264.6 73975.4 69487.5 71833.0 71070.2 Government consumption 5071.9 5237.8 5746.2 5822.0 6585.2 7634.3 69487.5 7828.3 8408.9 7951.9 Collective consumption 3313.6 3571.1 3767.1 3784.3 4329.5 5089.1 7828.3 5507.4 6376.3 6218.1 Individual consumption 1758.3 1666.7 1979.1 2037.7 2255.7 2545.2 5507.4 2320.9 2032.6 1733.8 Private consumption 42541.9 43076.3 45546.8 48298.4 48524.9 56327.5 2320.9 60301.4 62024.4 61642.1 Food 25099.7 25135.1 27114.5 27889.3 27520.2 30639.9 60301.4 33151.7 34098.9 33888.8 Non-food 12209.5 12549.9 12920.1 14219.6 14361.4 17471.3 33151.7 18457.1 18984.5 18867.5 Services 5232.7 5391.4 5512.2 6189.5 6643.3 8216.3 18457.1 8692.6 8940.9 8885.8 Nonprofit institutions 951.9 970.7 998.0 1147.3 1203.6 1302.7 8692.6 1357.8 1399.7 1476.2 Actual final consumption expenditure of households 45252.1 45713.8 48523.9 51483.3 51984.3 60175.5 1357.8 63980.1 65456.7 64852.1 Gross capital formation 12732.7 16503.5 17920.5 24091.9 24155.4 18927.3 63980.1 28707.5 30965.3 33651.4 Gross fixed capital formation 10694.0 10892.2 10945.9 12764.7 12672.3 11976.5 28707.5 15531.0 18570.6 16290.2 Government 1718.8 2013.8 2215.2 2420.5 2762.2 2701.8 15531.0 3192.8 3480.1 3845.5 Private 8975.2 8878.3 8730.7 10344.2 9910.1 9274.6 3192.8 12338.2 15090.6 12444.8 Change in stock 2038.6 5611.3 6974.6 11327.3 11483.1 6950.8 12338.2 13176.5 12394.7 17361.2 Net exports of goods and services -8094.5 -9336.7 -11200.7 -17506.7 -16499.8 -17163.9 13176.5 -24219.6 -26806.9 -28304.2 Imports 15852.3 17150.9 19317.5 24776.2 23615.6 24416.1 -24219.6 33721.9 36954.9 38171.1 Goods 13074.7 13779.5 15747.2 20924.2 20378.0 21641.3 33721.9 29333.6 31865.4 32757.6 Services 2777.6 3371.4 3570.3 3852.0 3237.7 2774.8 29333.6 4388.4 5089.6 5413.5 Exports 7757.8 7814.2 8116.8 7269.5 7115.8 7252.2 8001.0 9502.4 10148.0 9866.9 Goods 5098.1 4647.0 4623.1 3848.9 3847.7 3808.3 3822.9 4234.4 3903.2 2977.0 Services 2659.7 3167.2 3493.7 3420.6 3268.2 3443.9 4178.2 5268.0 6244.8 6889.9 R = Revised Source: Central Bureau of Statistics Table 1.9 : Intermediate Consumption by Industrial Division (at current prices) Rs. in ten million Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 7584.9 8607.8 10451.0 12335.2 15003.3 16528.2 17426.4 19691.6 20582.0 21533.4 Fishing 50.3 50.5 50.7 50.9 58.7 70.0 80.0 104.2 112.3 126.2 Mining and Quarrying 87.9 113.3 131.3 153.5 179.5 209.8 250.0 288.6 311.5 316.4 Manufacturing 13432.4 14692.2 16796.1 18194.5 20847.3 23633.6 25976.8 29267.2 30777.7 29557.7 Electricity gas and water 1026.5 1119.9 1164.4 1423.4 1549.1 1740.1 2039.8 2310.3 2505.4 2930.2 Construction 4664.7 5750.5 6753.7 8143.9 9325.8 10081.0 11083.3 12950.1 14131.9 14239.5 Wholesale and retail trade 1767.7 2009.6 2463.9 3196.9 3560.0 3933.8 4559.0 5383.0 5721.6 5653.0 Hotels and restaurants 2237.9 2603.4 3136.7 3869.4 4731.9 5732.7 6519.4 7363.4 7992.8 8684.4 Transport, storage and communications 5224.4 5630.7 6662.8 6871.9 7687.2 8751.6 9683.3 10437.3 10970.1 11944.1 Financial intermediation 843.0 1036.9 1201.0 1391.1 2128.4 2815.9 3493.0 3130.4 3542.3 3653.7 Real estate, renting and business activities 2978.4 3425.2 3966.8 4583.4 5096.7 5728.7 6227.2 6680.9 7560.1 7797.8 Public administration and defence 429.7 487.2 547.4 718.4 824.0 938.1 849.6 692.1 882.4 999.9 Education 1238.9 1454.1 1824.7 2111.1 2500.2 2770.5 2981.8 2853.4 2871.7 2919.8 Health and social work 408.4 439.4 526.5 648.1 763.9 852.4 884.2 968.6 1034.7 1134.6 Other community, social and personal service activities 918.5 1095.3 1318.9 1720.5 1952.6 2291.0 2492.1 3329.0 3269.0 3724.6 Intermediate consumption at purchasers' prices 42893.6 48515.9 56996.0 65412.2 76208.6 86077.4 94545.9 105450.0 112265.5 115215.3 P = Preliminary, R = Revised ######## Note : NSIC Division 16 & 17 are included in the Division 15. Source: Central Bureau of Statistics Table 1.10 : Gross Disposable Income and Saving (at current prices) Rs. in ten million Fiscal Year Particulars 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Compensation of employees 36583.90 42876.30 50594.00 42876.30 50594.00 64452.25 91339.26 80058.61 86607.03 91339.26

Taxes less subsidies on production 71.20 86.20 59.30 86.20 11914.53 14070.27 140.94 129.39 144.70 140.94

Taxes less subsidies on products 7874.40 10935.80 12199.70 10935.80 11847.18 13986.19 24141.65 20580.15 23106.04 24141.65

Operating surplus/ mixed income 54297.70 65469.60 74089.90 65379.10 74186.88 74211.84 109247.27 95685.81 102189.24 109247.27

Gross domestic product at producers' price 98827.20 119367.90 136943.00 119277.40 136695.41 152734.36 224869.11 196453.96 212047.01 224869.11

Primary income, net 1175.00 911.70 754.90 911.70 754.94 1229.14 4396.24 3275.17 3424.25 4396.24

Gross national income (GNI) 100002.10 120279.60 137697.90 120189.10 137450.35 153963.50 229265.35 199729.13 215471.26 229265.35

Current transfers, net 24948.70 28264.80 30785.90 28264.80 30785.87 42277.21 80357.17 63150.03 70995.65 80357.17

Gross National disposable income (GNDI) 124950.80 148544.40 168483.80 148453.90 168236.22 196240.71 309622.52 262879.16 286466.91 309622.52

Final consumption expenditure 89504.20 105618.50 125142.10 105618.50 117603.03 135953.88 213051.97 173031.22 193404.62 213051.97

Gross domestic saving 9323.00 13749.40 11800.80 13658.90 19092.37 16780.47 11817.14 23422.74 18642.39 11817.14

Gross national saving 35446.60 42925.90 43341.70 42835.40 50633.18 60286.82 96570.55 89847.94 93062.29 96570.55

Gross capital formation 31302.90 45739.50 44532.20 45648.90 51926.82 52688.90 76355.63 80875.79 82230.31 76355.63

Lending/Borrowing (Resource gap) (+/-) 4143.70 -2813.50 -1190.60 -2813.50 -1293.64 7597.92 20214.93 8972.15 10831.98 20214.93 R = Revised Source: Central Bureau of Statistics Table 1.11 :Gross Domestic Product Deflator by Industry Division

Fiscal Year Industries 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Agriculture and forestry 1.157 1.229 1.264 1.541 1.936 2.240 2.265 2.51 2.61 2.74 Fishing 1.13 1.16 1.27 1.27 1.28 1.39 1.54 2.13 2.14 2.15 Mining and quarrying 1.33 1.43 1.74 2.01 2.29 2.64 2.95 3.48 3.67 4.06 Manufacturing 1.23 1.31 1.45 1.67 1.76 1.92 2.10 2.36 2.48 2.67 Electricty gas and water 1.14 1.14 1.15 1.15 1.17 1.18 1.19 1.40 1.41 1.40 Construction 1.33 1.43 1.64 1.91 2.18 2.41 2.65 3.04 3.26 3.50 Whole-sale and retail trade 1.32 1.44 1.57 1.76 2.14 2.35 2.51 2.89 3.01 3.13 Hotels and restaurants 1.17 1.21 1.30 1.54 1.80 2.06 2.30 2.85 3.16 3.57 Transport, storage and communications 1.46 1.58 1.59 1.80 1.74 1.84 1.97 2.21 2.21 2.29 Financial intermediation 1.11 1.29 1.39 1.59 1.82 1.92 2.16 2.85 3.19 3.50 Real estate, renting and business activities 1.63 1.72 1.62 1.76 1.96 2.17 2.45 2.79 3.02 3.33 Public Administration and defence 1.20 1.32 1.54 1.85 2.09 2.30 2.73 3.57 3.93 3.93 Education 1.22 1.33 1.49 1.73 1.59 1.70 1.95 2.47 2.67 2.73 Health and social work 1.21 1.24 1.47 1.68 1.79 1.90 2.13 2.65 2.89 2.94 Other community, social and personal service activities 1.21 1.31 1.46 1.66 1.80 1.91 2.12 2.56 2.67 2.84 Implicit GDP deflator 1.26 1.35 1.43 1.66 1.90 2.10 2.24 2.59 2.73 2.88 R = Revised Source: Central Bureau of Statistics Table 1.12 : Summary of Macroeconomic Indicators

Fiscal Year Description 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15R 2015/16P

Percapita GDP (NRs) 27524.9 30170.7 38172.0 45435.0 51593.9 56879.7 62283.0 71225.2 75854.5 79369.8 Percapita GNI (NRs) 27806.0 30464.6 38626.0 45782.0 51878.8 57337.4 62763.5 72412.6 77079.4 80921.5 Percapita GNDI (NRs) 32684.2 37226.9 48262.0 56549.0 63498.5 73081.9 81051.5 95307.9 102476.4 109284.4 Percapita GDP at constant price 20120.6 20881.1 22793.0 23561.0 24144.4 24961.8 25646.0 26820.1 27184.0 26972.3 Percapita GNI at constant price 20539.6 21313.3 23301.0 24152.0 24664.1 25582.4 26396.8 27939.3 28261.0 28110.1 Percapita GNDI at constant price 24143.0 26044.2 29114.0 29831.0 30188.3 32607.1 34088.3 36773.1 37572.7 37962.7 Annual Change in nominal percapita GDP (%) 8.8 9.6 19.5 19.0 13.6 10.2 9.1 14.4 6.5 4.6 Annual change in real percapita GDP(%) 1.1 3.8 3.1 3.4 2.5 3.4 2.7 4.6 1.4 -0.8 Percapita GDP (USD) 390.5 464.0 497.0 610.0 713.9 702.0 708.1 725.2 762.4 751.6 Percapita GNI in (USD) 394.5 468.6 502.0 614.0 717.8 707.7 713.5 737.3 774.7 766.3 Percapita GNDI (USD) 463.7 572.6 628.0 759.0 878.6 902.0 921.5 970.4 1030.0 1034.9 Gross domestic saving as percentage of GDP 9.8 9.8 9.4 11.5 14.0 11.0 10.6 11.9 8.8 5.3 Gross national saving as percentage of GDP 28.6 33.2 35.9 35.9 37.0 39.5 40.7 45.7 43.9 42.9 Exports of goods and services as percentage of GDP 12.9 12.8 12.4 9.6 8.9 10.1 10.7 11.5 11.7 10.7 Imports of goods and services as percentage of GDP 31.7 33.3 34.7 36.4 32.9 33.6 37.5 40.8 41.7 39.4 Resource Gap as percentage of GDP (+/-) -0.1 2.9 4.2 -2.4 -0.9 5.0 3.4 4.6 5.1 9.0 Gross Fixed Capital Formation as percentage of GDP 21.1 21.9 21.4 22.2 21.4 20.8 22.6 23.5 27.7 25.0 P = Preliminary, R = Revised Source: Central Bureau of Statistics Table 2.1: Public Income and Expenditure (Rs in '000) 2011/12 2012/13 2013/14 2014/15 2015/16* Heading Actual Atual Actual Actual Estimate Revenue and Grants 287,796,801 333,172,151 396,315,164 448,331,205 585,941,507 Renenue 244,374,099 296,021,153 356,620,779 405,866,514 475,012,100

Taxes 211,722,611 259,214,937 312,441,263 355,955,770 427,011,000 Non Tax Revenue 32,651,488 36,806,217 44,179,516 49,910,744 48,001,100 Difference 2,612,420 1,921,192 5,734,220 6,090,462 0 Grants 40,810,282 35,229,805 33,960,165 36,374,229 110,929,407

Grants 40,810,281 35,229,805 33,960,165 36,374,229 110,929,407 Expenditure 294,850,724 302,053,897 370,226,473 428,251,114 693,143,617 Recurrent 243,460,007 247,455,472 303,531,746 339,407,600 484,266,375

Compensation of employees 65,965,530 66,046,004 84,356,671 88,543,139 104,246,160 Use of goods and services 23,751,004 23,285,326 29,950,338 31,823,730 78,746,417 interest, Services an d Bank Corr 15,160,827 13,736,699 12,037,868 9,263,198 21,442,871 Subsidies 4,640,459 4,227,337 1,145,530 1,018,731 2,599,252 Grants 103,679,916 102,489,890 134,941,040 157,690,886 207,045,336 Social Security 30,140,281 37,544,252 40,802,391 50,757,816 69,246,810 Other Expenditure 121,990 125,963 297,907 310,100 939,529 Capital 51,390,717 54,598,425 66,694,727 88,843,514 208,877,242

Capital Expenditure 51,390,717 54,598,425 66,694,727 88,843,514 1,208,877,242 Budget Surplus (-)/Deficit (+) 7,053,923 31,118,253 -26,088,691 20,080,091 107,202,110 Financing -3,371,967 24,816,477 23,140,738 38,425,807 -58,639,437 Net Internal Loan 11,876,688 11,796,792 12,927,909 26,257,386 48,911,740

Internal Loan 12,063,693 12,552,099 13,497,720 28,338,968 50,911,740 Less Internal Loan Refund 187,005 755,307 569,811 2,081,582 2,000,000 Net Investment 12,093,805 8,901,813 9,451,003 10,510,427 11,946,790

Domestic Share Investments 12,093,805 5,356,545 9,412,265 8,524,012 11,946,790 Foreign Share Investments 0 3,545,268 38,738 1,986,415 0 External - Net Borrowing 2,449,355 2,220,635 -4,407,730 -3,404,413 -72,601,347

External Amortizations 13,532,427 14,190,079 16,724,637 17,027,868 22,363,357 Less External Borrowing 11,083,072 11,969,444 21,132,367 20,432,281 94,964,704 Domestic Net Borrowing -29,791,815 1,897,237 5,169,556 5,062,407 -46,896,620

Domestic Amortization 6,626,836 20,940,092 25,152,451 47,429,985 41,103,380 Less Domestic Borrowing 36,418,651 19,042,855 19,982,895 42,367,578 88,000,000 Under(+)/Over(-) 3,681,956 6,301,776 -2,947,953 -18,345,716 -48,562,673 Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.2: Tax Revenue Rs. in Ten Million Fiscal Year First Eight Months Revenue Heading 2011/12 2012/13 2013/14 2014/15 2015/16* 2014/15 2015/16 11100 Taxes on income, profits and capital gains 5,130.30 6,418.67 7561.36 8616.56 10564.88 2444.62 4922.93 11110 Payable by individual and sole traders 1,229.28 1,554.15 1943.40 2255.78 2689.91 1025.3 1474.91 11120 Payable by entrerprizes and corporations 3,049.44 3,706.72 4542.30 5203.37 6396.5 978.21 2579.49 11130 Taxes on investment and other income 851.58 1,157.80 1075.66 1157.41 1478.47 441.11 868.53 11200 Taxes on payroll and workforce 155.50 188.06 244.99 292.58 342.58 148.81 181.59 11210 Social Security Taxes on payroll 155.50 188.06 244.99 292.58 342.58 148.81 181.59 11300 Taxes on property 358.84 534.02 667.11 939.94 1204.41 362.87 0.29 11310 Recurrent taxes on immovable property 2.94 0.37 2.85 2.19 3.31 0.88 0.29 11340 Taxes on financial and capital transactions 355.90 533.64 664.26 937.75 1201.1 361.99 11400 Taxes on Goods and Services 11,056.10 12,927.05 15771.84 18002.52 21976.44 10614.21 10674.01 11410 VAT 7,093.04 8,341.84 10110.46 11252.18 14089.17 6473.5 6403.56 11420 Excise 3,001.61 3,623.47 4541.26 5353.82 6581.2 3294.66 3403.38 11440 Taxes on specific services 49.02 65.53 87.35 103.19 147.71 60.73 78.68 11450 Taxes on use of goods and on permission to use goods 912.43 896.21 1032.77 1293.33 1158.36 785.32 788.39 11500 Taxes on international trade and transactions 4,339.06 5,693.18 6798.05 7484.13 8329.18 4815.71 4153.67 11510 Customs and other import duties 4,090.59 5,432.79 6412.54 7052.67 7858.25 4540.34 3919.28 11520 Taxes on exports 86.15 43.91 106.65 31.46 84.63 21.09 12.79 11560 Other taxes on international trade and transactions 162.32 216.48 278.86 400.00 386.3 254.28 221.6 11600 Other taxes 132.38 160.52 200.77 259.84 283.61 129.2 139.15 11610 Registration Fee 52.67 62.34 87.22 118.50 146.05 47.17 63.41 11620 Ownership Certificate Charge 79.71 98.18 113.55 141.34 137.56 82.03 75.74 Grand Total 21,172.18 25,921.49 31244.13 35595.57 42701.1 18515.42 20071.64 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ

Table 2.3: Non Tax Revenue Rs. in ten Million Fiscal Year First Eight Months Revenue Heading 2011/12 2012/13 2013/14 2014/15 2015/16* 2014/15 2015/16 14100 Property Income 1765.24 1760.84 2067.52 2270.87 2158.52 491.92 848.11 14110 Interest 175.02 52.79 165.55 193.00 117.68 0.32 71.57 14120 Dividends 942.97 1084.37 1299.21 1373.17 1312.70 20.02 222.64 14150 Rent and Royalty 647.25 623.69 602.75 704.70 728.14 471.58 553.90 14200 Sale of Goods and Services 691.316 1124.70 1164.53 1223.06 1304.49 496.93 849.15 14210 Sale of Goods 460.436 537.41 629.79 729.52 732.54 174.68 517.94 14220 Administrative Fees 230.88 587.29 534.75 493.54 571.95 322.25 331.21 14300 Penalties, Fines and Forfeiture 31.56 33.82 45.28 125.43 51.45 26.33 38.99 14310 Penalties, Fines and Forfieture 31.56 33.82 45.28 125.43 51.45 26.33 14400 Voluntary Transfers other than Grants 0.08 0.51 0.24 0.50 0.14 0.36 0.22 14410 Voluntary Transfers other than Grants 0.08 0.51 0.24 0.50 0.14 0.36 0.22 14500 Miscellaneous Revenue 776.92 760.7 1140.39 1371.21 1285.51 688.05 852.36 14510 Administrative Fee - Immigration and Tourism548.19 676.42 1052.79 1243.48 1171.41 614.22 791.28 14520 Other Revenue 228.01 83.23 87.06 127.33 113.53 73.59 60.85 14530 Capital Revenue 0.72 1.09 0.54 0.40 0.57 0.24 0.23 Total 3265.116 3680.62 4417.95 4991.07 4800.11 1703.59 2588.83 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.4: Functional and Service Description (Current Expenditure) Rs. in ten million Fiscal Year First Eight Months S.N. Particulars 2011/12 2012/13 2013/14 2014/15 2015/16* 2014/15 2015/16 1 General Public Services 5455.04 6052.36 6268.55 13777.07 14991.78 3357.61 5731.70 Executive and legislative organs, 1.1 financial, fiscal affairs 2667.17 3745.88 3720.41 8882.29 9564.59 2055.61 3116.19 1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.34 88.89 0.00 1.3 General services 174.61 162.44 188.06 1189.61 1364.99 0.00 873.60 1.4 R&D General public services 0.00 0.00 1.86 1.68 1.39 1.19 0.92 1.5 General public services n.e.c. 37.16 38.42 39.62 354.94 613.14 24.41 251.53 1.6 Public debt transaction 1233.00 1073.35 867.27 1850.76 1623.37 483.92 420.33 Transfers of a general character 1.7 between levels of government 1343.10 1032.27 1451.33 1497.79 1823.96 703.59 1069.12 2 Defence 2077.98 1847.69 2577.82 2581.73 2932.34 1740.86 2.1 Military defence 2077.91 1846.72 2577.49 2576.33 2926.25 1740.85 2084.81 2.2 Civil defence 0.00 0.00 0.00 4.70 5.81 0.00 0.00 2.3 Defence n.e.c. 0.07 0.96 0.33 0.70 0.28 0.01 0.18 3 Public Order and Sefety 3607.53 3483.20 3985.41 2945.24 3150.03 2625.54 2045.96 3.1 Police services 2167.43 1969.95 3173.17 2040.61 2245.93 2131.27 1602.91 3.2 Fire-protection services 0.41 0.44 0.53 0.58 0.69 0.28 0.98 3.3 Law courts 174.93 180.72 266.24 324.60 372.47 152.36 195.86 3.4 Prisons 64.27 69.70 82.79 86.53 100.27 55.23 71.11 3.5 Public order and sefety n.e.c. 1200.49 1262.39 462.69 492.93 430.67 286.39 175.10 4 Economic Affiars 3473.68 3596.49 5068.08 6059.93 10183.19 2775.08 3195.43 General economic, commercial and 4.1 labour affairs 670.52 721.17 815.76 956.07 929.58 427.44 479.57 Agriculture, forestry, fishing and 4.2 hunting 1604.51 1718.38 2549.91 3234.33 3680.89 1543.23 1863.95 4.3 Fuel and energy 171.75 175.12 335.27 413.09 587.44 121.20 104.36 4.4 Mining, manufacturing and construction 5.16 4.61 6.19 6.39 8.65 4.18 5.25 4.5 Transport 623.63 580.05 810.74 691.49 691.85 390.72 299.04 4.6 Communication 267.16 241.95 314.76 346.44 366.92 192.10 247.27 4.7 Other industries 91.40 121.56 181.74 258.57 316.76 89.88 107.94 4.8 R&D Economic affairs 37.63 32.08 50.57 143.99 3589.22 4.96 85.28 4.9 Economic affairs n.e.c. 1.93 1.57 3.13 9.56 11.88 1.38 2.77 5 Environmental Protection 46.51 29.16 152.14 382.55 397.64 126.05 179.34 5.1 Waste management 0.54 1.56 8.71 4.85 6.18 8.47 0.56 5.2 Waste water management 0.32 0.33 1.85 13.83 10.14 4.79 4.88 5.3 Protection of biodiversity and landscape 0.02 0.61 2.63 1.53 0 0.00 0.00 5.4 0.00 0.00 0.00 0.00 2 0.00 1.13 5.5 Environmental protection n.e.c. 45.62 26.66 138.95 362.35 379.32 112.79 173.90 6 Housing and Community Ammnities 323.41 230.65 604.64 322.18 497.33 198.81 108.24 6.1 Housing development 24.54 16.29 110.68 118.70 208.94 45.96 33.45 6.2 Community development 6.21 9.60 0.00 69.77 136.53 0.00 4.90 6.3 Water supply 261.84 174.52 465.94 124.77 143.37 143.16 64.61 6.4 Housing and community amenities n.e.c. 30.82 30.24 28.02 8.94 8.49 9.68 5.28 7 Health 1949.54 1891.83 2336.20 3309.01 3792 1263.20 1710.02 7.1 Medical products, appliances and equipment49.92 59.16 47.80 46.84 20.84 23.03 7.22 7.2 Out-patient services 226.32 251.75 189.92 509.00 598.42 65.85 57.84 7.3 Hospital services 636.88 624.35 859.47 1046.59 1185.53 503.25 785.45 7.4 Public health services 875.22 778.21 1010.65 1225.77 1501.24 562.32 699.72 7.5 R&D Health 161.21 178.35 228.36 480.82 485.97 108.75 159.79 8 Recreation, Cultural and Religion 186.42 225.59 360.64 339.38 401.04 151.46 251.50 8.1 Recreational and sporting services 81.85 65.52 118.25 147.77 185.14 68.46 132.05 8.2 Cultural services 85.61 143.09 221.31 165.32 188.63 70.62 100.67 8.3 Broadcasting and publishing services 18.95 16.99 26.29 27.27 12.39 18.79 9 Education 6191.42 6229.07 7769.93 8586.01 4743.28 5054.73 9.1 Pre-primary and primary education 2085.57 2181.34 2540.06 2942.30 3129.46 1676.55 1937.02 9.2 Secondary education 1034.69 1081.73 1296.79 1540.70 1501.29 876.38 968.90 9.3 Educaiton not definable by level 1973.36 1697.99 2168.91 2418.70 3123.5 1300.13 888.98 9.4 Subsidiary services to education 1087.89 1239.56 1676.13 1511.26 1885.67 863.81 1201.68 9.5 Educaiton n.e.c. 9.92 28.45 88.04 173.05 207.47 26.42 58.14 10 Social Protection 1034.47 1159.50 1229.77 1592.00 2233.84 749.06 1035.00 10.1 Family and children 72.44 14.72 33.81 113.28 337.19 12.65 49.67 10.2 Social exculsion n.e.c. 861.62 1046.81 1063.46 1299.46 1675.07 666.69 888.17 10.3 R&D Social protection 10.75 26.21 6.50 10.82 17.39 5.85 5.01 10.4 Social protection n.e.c. 89.67 71.76 125.99 168.45 204.19 63.87 92.14 Total 24346.00 24745.54 30353.17 39895.12 48426.58 17730.96 21396.92 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.5: Functional and Service Description (Capital Expenditure) Rs. in ten million Fiscal Year First Eight Months S.N. Particulars 2011/12 2012/13 2013/14 2014/15 2015/16* 2014/15 2015/16 1 General Public Services 125.44 209.63 4684.58 6710.75 9403.82 4060.71 102.17 Executive and legislative organs, financial, 1.1 fiscal affairs 84.40 169.32 2135.04 2992.58 4953.35 1201.13 55.30 1.2 0.00 0.00 0.00 0.00 20.00 0.00 0.00 1.3General services 18.91 9.53 11.53 135.91 194.71 33.43 23.32 1.4 R&D General public services 0.00 0.00 0.37 0.01 0.04 0.01 0.04 1.5General public services n.e.c. 22.03 30.69 22.38 90.18 80.74 20.74 7.08 1.6Public debt transaction 0.00 0.00 2515.25 3454.49 4110.34 2791.56 0.00 Transfers of a general character between levels 1.7 of government 0.10 0.09 0.01 37.57 44.64 13.84 16.43 2 Defence 187.77 242.23 658.80 554.13 816.97 142.47 2.1Military defence 174.42 230.40 520.58 295.78 327.01 141.77 60.22 2.2 Civil defence 0.00 0.00 132.43 255.18 487.22 0.00 0.34 2.3 Defence n.e.c. 13.35 11.84 5.79 3.17 2.74 0.70 0.11 3 Public Order and Sefety 319.04 293.09 511.42 501.63 772.75 184.45 110.05 3.1Police services 139.15 119.60 226.08 92.14 366.71 90.11 37.18 3.2Fire-protection services 0.02 0.00 0.03 0.02 0.02 0.02 0.01 3.3 Law courts 44.84 40.29 81.39 103.17 112.06 20.39 16.17 3.4 Prisons 12.12 8.91 11.86 15.15 17.06 5.69 4.68 3.5Public order and sefety n.e.c. 122.90 124.29 192.05 291.15 276.90 68.24 52.01 4 Economic Affiars 3387.92 3629.10 5986.82 10959.90 18742.63 3341.66 1940.89 General economic, commercial and labour 4.1 affairs 30.67 25.62 43.50 283.38 638.38 102.31 139.71 4.2 Agriculture, forestry, fishing and hunting 1056.22 1167.01 1496.37 2162.46 3001.22 803.74 637.47 4.3Fuel and energy 18.23 22.44 1486.19 3309.16 4539.27 917.24 17.15 4.4 Mining, manufacturing and construction 0.83 148.02 136.58 261.63 256.23 84.46 47.16 4.5 Transport 2184.76 2179.49 2643.79 4423.94 5535.03 1364.22 1050.82 4.6Communication 25.74 28.92 51.73 79.13 89.70 21.37 15.20 4.7Other industries 70.41 53.67 99.50 379.12 720.76 29.44 31.03 4.8R&D Economic affairs 0.03 3.64 11.80 26.97 3923.41 2.13 2.14 4.9Economic affairs n.e.c. 1.02 0.29 17.36 34.11 38.63 16.75 0.21 5 Environmental Protection 45.21 32.94 105.08 696.58 1118.13 107.68 31.46 5.1Waste management 5.54 3.43 53.94 263.16 593.54 2.01 1.73 5.2Waste water management 6.93 5.00 4.78 193.61 123.77 91.01 8.67 5.3 Protection of biodiversity and landscape 0.00 0.14 0.18 0.22 0.00 0.00 0.00 5.4 R&D Environmental protection 0.00 0.00 12.00 80.50 200.70 0.00 0.44 5.5Environmental protection n.e.c. 32.74 24.38 34.18 159.10 200.12 14.66 20.62 6 Housing and Community Ammnities 678.45 708.51 822.82 1912.06 2201.45 512.84 362.96 6.1Housing development 113.01 94.04 167.59 285.77 356.94 105.43 51.37 6.2Community development 0.66 0.00 0.00 130.80 185.67 0.00 5.65 6.3 Water supply 290.10 362.46 587.99 1401.27 1516.18 391.34 275.09 6.4 Housing and community amenities n.e.c. 274.69 252.00 67.23 94.22 142.66 16.07 30.85 7 Health 337.47 295.34 315.64 467.64 341.84 132.89 93.66 7.1 Medical products, appliances and equipment 4.12 29.72 30.40 43.45 41.02 22.31 7.10 7.2Out-patient services 4.22 4.46 13.72 44.58 40.66 4.35 0.71 7.3Hospital services 25.04 30.81 39.78 46.75 42.63 12.56 5.28 7.4Public health services 294.09 224.83 204.51 317.67 201.93 92.61 79.47 7.5 R&D Health 10.01 5.51 27.24 15.18 15.60 1.06 1.10 8 Recreation, Cultural and Religion 20.19 15.60 30.59 58.78 72.57 9.53 13.48 8.1Recreational and sporting services 4.99 0.08 0.25 0.61 0.25 0.09 0.05 8.2Cultural services 12.24 10.55 17.86 28.44 45.71 5.57 7.99 8.3Broadcasting and publishing services 2.96 4.97 29.74 26.61 3.87 5.44 9 Education 13.88 13.91 12.64 17.39 3.61 3.13 9.1Pre-primary and primary education 0.09 0.22 0.15 0.16 0.12 0.05 0.00 9.2Educaiton not definable by level 8.03 8.89 10.28 8.25 12.70 1.71 2.17 9.3Subsidiary services to education 4.26 3.45 1.88 5.46 1.98 1.39 0.91 9.4Educaiton n.e.c. 1.51 1.35 0.33 3.52 2.08 0.46 0.05 10 Social Protection 23.69 19.50 23.65 36.02 33.18 7.33 9.90 10.1Family and children 0.00 0.00 2.56 4.05 0.48 0.00 0.00 10.2Social exculsion n.e.c. 0.00 0.00 1.14 6.12 3.38 2.60 0.55 10.3R&D Social protection 0.29 0.28 1.93 1.78 1.57 0.51 0.07 10.4Social protection n.e.c. 23.40 19.22 18.02 24.07 27.75 4.22 9.28 Total 5139.07 5459.84 13152.05 21914.88 33520.22 8503.17 2728.37 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.6 : Principal Repayment, Loan and Share Investment in Public Enterprises Rs. in ten million Code Fiscal Year First Eight Months Heading No. 2011/12 2012/13 2013/14 2014/15 2015/16* 2014/15 2015/16 31111 Internal Loan to Corporations 1206.37 813.00 1360.32 25905.09 1096.07 952.72 730.72 31211 Share Investments- Corporations 1209.38 880.18 934.55 1608.59 282.89 239.06 188.59 2415.75 1693.18 2294.87 27513.68 1378.96 1191.78 919.31 32111 External Amortization 1353.24 1419.01 1672.46 1704.18 2183.50 949.00 947.75 32211 Domestic Amortization 662.68 2094.01 2515.25 4742.99 4100.20 2627.81 2226.69 2015.92 3513.02 4187.71 6447.17 6283.70 3576.81 3174.44 * Estimated Source: Financial Comptroller General Office

Table 2.7 : Foreign Aid Commitment by Sources Rs. In Ten Million Fiscal Year First Eight Month Source 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* 2013/14 2014/15 2015/16 1. Bilateral 1770.61 1310.64 2719.65 3690.00 3182.00 5291.30 3851.99 5527.20 17836.90 10409.55 4274.29 15895.24 7260.29 Grant 1770.61 562.09 2365.50 3690.00 2482.00 3146.00 2330.99 4868.50 8034.00 5933.85 3901.49 5851.34 4990.59 Loan 0.00 748.55 354.15 0.00 700.00 2145.30 1521.00 658.70 9802.90 4475.7 372.80 10043.90 2269.7 2. Multilateral 1931.68 3607.98 2077.88 5970.90 7427.67 4526.57 7663.69 7817.20 4745.03 9040.87 2760.40 8069.25 8358.97 Grant 1315.41 3544.33 1944.08 3335.78 3991.38 2687.68 3059.11 2423.30 1126.31 1572.57 1095.40 5499.83 1195.17 Loan 616.27 63.65 133.80 2635.12 3436.29 1838.89 4604.58 5393.90 3618.72 7468.3 1665.00 2569.42 7163.8 3. Total 3702.29 4918.62 4797.52 9660.90 10609.67 9817.87 11515.68 13344.50 22581.93 19450.42 7034.70 23964.49 15619.26 Grant 3086.02 4106.42 4309.57 7025.78 6473.38 5833.68 5390.10 7291.80 9160.31 7506.42 4996.89 11351.17 6185.76 Loan 616.27 812.20 487.95 2635.12 4136.29 3984.19 6125.58 13421.62 11944 2037.80 12613.32 9433.5 * Estimated Source M mInistry of Finance

Table 2.8 : Foreign Aid Disbursement by Sources Rs. In Ten Million Fiscal Year Headings 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 1. Bilateral 1,020.77 933.31 2,290.15 2,585.04 3,208.77 2600.97 2940.72 2195.31 Grant 957.56 872.02 1,835.09 2,173.80 2,883.33 2343.52 2616.67 1852.55 Loan 63.21 61.29 455.06 411.24 325.44 257.45 324.05 342.76 2. Multilateral 1,909.29 2,701.86 2,686.79 3,214.73 1,980.57 2118.96 3079.74 4195.39 Grant 1,074.51 1,766.26 2,019.51 2,418.41 1,197.70 1179.46 1603.91 1976.59 Loan 834.78 935.60 667.28 796.32 782.87 939.49 1475.83 2218.80 3. Total 2,930.06 3,635.17 4,976.94 5,799.78 5,189.34 4719.92 6020.46 6390.70 Grant 2,032.07 2,638.28 3,854.60 4,592.22 4,081.03 3522.98 4220.58 3829.14 Loan 897.99 996.89 1,122.34 1,207.56 1,108.31 1196.94 1799.88 2561.56 Source: Financial Comptroller General Office

Table 2.9: Functional and Service Description of Foreign Grants Received Rs. in ten million Fiscal Year First Eight Months S.N. Particulars 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* 2013/14 2014/15 2015/16 1 General Public Services 723.76 589.45 300.94 360.37 397.67 664.36 117.25 347.46 135.55 Executive and legislative organs, financial, 304.07 235.19 467.65 107.38 273.25 1.1 fiscal affairs 375.38 380.28 279.12 114.58 1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.3 General services 1.00 14.17 21.75 18.67 51.37 194.51 5.59 28.89 19.17 1.4 Basic research 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.5 R&D General public services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.6 General public services n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.7 Public debt transaction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Transfers of a general character between 37.63 111.12 2.20 4.28 1.8 levels of government 347.38 195.00 0.07 1.80 2 Defence 0.00 0.00 0.00 19.22 17.46 28.88 0.00 0.00 0.00 2.1 Military defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.2 Civil defence 0.00 0.00 0.00 19.22 17.46 28.88 0.00 0.00 0.00 2.3 Foreign military aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.4 R&D Defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.5 Defence n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 Public Order and Sefety 96.30 261.00 230.25 209.82 130.29 362.78 144.58 0.00 0.78 3.1 Police services 0.00 0.00 0.00 0.00 0.00 219.78 0.00 0.00 0.00 3.2 Fire-protection services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.3 Law courts 4.47 3.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.4 Prisons 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.5 R&D Public order and safety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.6 Public order and sefety n.e.c. 91.83 257.95 230.25 209.82 130.29 143.00 144.58 0.00 0.78 4 Economic Affiars 1843.27 1140.11 1073.16 1542.04 1670.78 6981.84 355.81 456.94 380.47

General economic, commercial and labour 183.12 377.06 737.60 57.61 164.17 4.1 affairs 517.21 270.11 254.46 158.47 4.2 Agriculture, forestry, fishing and hunting 221.90 248.29 270.56 481.81 447.78 772.87 164.41 146.96 157.50 4.3 Fuel and energy 219.84 180.20 215.79 312.49 294.49 475.37 27.48 90.40 3.58 4.4 Mining, manufacturing and construction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.74 0.00 4.5 Transport 884.32 441.51 329.19 553.03 519.22 1041.47 102.45 43.38 59.33 4.6 Communication 0.00 0.00 0.00 0.79 9.34 6.26 0.29 8.63 1.10 4.7 Other industries 0.00 0.00 0.00 0.00 14.46 316.97 0.00 0.00 0.00 4.8 R&D Economic affairs 0.00 0.00 3.17 10.81 8.42 3629.55 3.56 2.67 0.50 4.9 Economic affairs n.e.c. 0.00 0.00 0.00 0.00 0.00 1.75 0.00 0.00 0.00 5 Environmental Protection 29.82 4.05 1.83 46.62 94.74 287.17 22.73 42.88 50.08 5.1 Waste management 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.2 Waste water management 0.00 0.00 0.00 0.98 4.25 58.97 4.28 4.25 4.03 5.3 Pollution abatement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.4 Protection of biodiversity and landscape 0.00 0.02 0.75 2.81 0.00 0.00 0.00 0.00 0.00 5.5 R&D Environmental protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.6 Environmental protection n.e.c. 29.82 4.03 1.09 42.83 90.49 228.21 18.45 38.63 46.04 6 Housing and Community Ammnities 278.64 291.28 205.11 218.01 152.34 427.56 55.56 43.87 17.62 6.1 Housing development 0.00 10.48 8.89 16.16 17.69 66.62 10.12 18.67 8.15 6.2 Community development 0.00 0.00 0.00 0.00 19.70 235.27 0.00 0.00 0.18 6.3 Water supply 128.78 102.40 61.99 138.48 110.00 118.35 26.20 25.20 9.29 6.4 Street lighting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.5 R&D Housing and community amenities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.6 Housing and community amenities n.e.c. 149.86 178.40 134.23 63.37 4.95 7.32 19.24 0.00 0.00 7 Health 559.50 570.02 568.28 503.72 403.74 774.19 193.08 152.73 17.16 7.1 Medical products, appliances and equipment 35.35 45.12 25.90 56.09 32.58 26.95 27.35 3.86 0.00 7.2 Out-patient services 190.69 155.48 148.01 92.20 450.21 14.93 16.00 1.95 7.3 Hospital services 22.18 36.14 52.05 25.27 22.54 19.94 14.03 0.61 7.4 Public health services 273.83 301.60 325.02 290.14 229.59 158.23 126.32 112.22 13.22 7.5 R&D Health 37.45 31.68 17.29 24.07 26.83 115.87 4.55 6.62 1.38 7.6 Health n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8 Recreation, Cultural and Religion 1.81 1.24 4.45 12.37 11.48 24.58 0.92 4.68 4.69 8.1 Recreational and sporting services 0.48 0.25 0.02 0.46 0.53 1.20 0.27 0.21 0.00 8.2 Cultural services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.3 Broadcasting and publishing services 1.33 0.99 4.43 11.91 10.95 23.38 0.65 4.47 4.69 8.4 Religious and other community services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.5 R&D Recreation, culture and religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.6 Recreation, culture and religion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Education 1032.60 1223.60 1137.28 1285.43 890.26 1328.45 820.35 353.24 525.92 9.1 Pre-primary and primary education 32.31 4.65 33.56 18.41 26.46 37.70 3.12 2.73 2.60 9.2 Secondary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.4 Tertiary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.5 Educaiton not definable by level 965.49 1119.45 947.83 973.53 835.39 1238.62 701.65 337.68 518.40 9.6 Subsidiary services to education 34.80 88.28 126.23 210.91 12.41 33.67 89.21 6.10 4.39 9.7 R&D education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.8 Educaiton n.e.c. 0.00 11.22 29.65 82.58 16.00 18.46 26.36 6.72 0.53 10 Social Protection 26.40 0.28 1.69 22.98 60.40 213.12 1.22 28.47 25.12 10.1 Sickness and disability 0.00 0.00 0.00 0.00 0.00 173.36 0.00 0.00 0.00 10.2 Old age 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.3 Survivors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.4 Family and children 20.95 0.00 0.05 15.55 45.59 0.00 0.69 27.34 14.37 10.5 Umemployment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.6 Housing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.7 Social exculsion n.e.c. 0.00 0.00 0.43 1.35 2.32 0.00 0.00 0.00 0.00 10.8 R&D Social protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.9 Social protection n.e.c. 5.45 0.28 1.20 6.08 12.49 39.76 0.53 1.13 10.75 Total 4592.10 4081.03 3522.98 4220.58 3829.16 11092.94 1711.50 1430.28 1157.38 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.10: Functional and Service Description of Foreign Loan Received Rs. in ten million

S.N. Particulars Fiscal Year First Eight Months 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* 2013/14 2014/15 2015/16 1 General Public Services 100.82 93.42 3.62 5.69 23.97 158.26 2.81 5.01 41.47 Executive and legislative organs, 0.00 0.00 0.00 0.00 0.00 0.00 1.1 financial, fiscal affairs 100.82 89.92 0.00 1.2 Foreign economic aid 0.00 0.00 0.00 0.00 0.00 16.00 2.81 0.22 0.00 1.3 General services 0.00 3.50 2.42 5.69 6.13 29.23 0.00 4.79 8.79 1.4 Basic research 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.5 R&D General public services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.6 General public services n.e.c. 0.00 0.00 1.19 0.00 17.84 13.03 0.00 0.00 5.86 1.7 Public debt transaction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Transfers of a general character between 0.00 0.00 100.00 0.00 0.00 26.82 1.8 levels of government 0.00 0.00 0.00 2 Defence 0.00 0.00 0.00 113.21 236.90 272.80 0.00 0.00 0.00 2.1 Military defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.2 Civil defence 0.00 0.00 0.00 113.21 236.90 272.80 0.00 0.00 0.00 2.3 Foreign military aid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.4 R&D Defence 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.5 Defence n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 Public Order and Sefety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.1 Police services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.2 Fire-protection services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.3 Law courts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.4 Prisons 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.5 R&D Public order and safety 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.6 Public order and sefety n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 Economic Affiars 843.14 766.46 893.10 1266.08 3197.04 7199.35 325.37 375.56 365.37 General economic, commercial and 185.92 201.87 139.45 66.97 71.06 4.1 labour affairs 207.37 50.58 145.84 211.12 4.2 Agriculture, forestry, fishing and hunting 72.25 106.25 76.64 175.32 370.57 525.37 63.05 74.04 90.31 4.3 Fuel and energy 505.02 501.03 423.19 376.90 1722.98 2622.46 0.00 100.00 23.03 4.4 Mining, manufacturing and construction 0.00 0.00 53.31 40.34 0.00 95.63 6.46 17.18 16.71 4.5 Transport 58.50 108.60 185.62 446.31 688.60 1346.37 116.40 100.89 148.82 4.6 Communication 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.7 Other industries 0.00 0.00 0.00 0.00 195.97 157.62 0.00 0.00 0.00 4.8 R&D Economic affairs 0.00 0.00 0.00 0.00 0.00 2218.00 0.00 0.00 1.03 4.9 Economic affairs n.e.c. 0.00 0.00 8.50 16.08 33.00 32.02 0.00 16.50 14.41 5 Environmental Protection 27.51 26.94 88.07 72.57 569.29 887.38 63.99 183.14 364.76 5.1 Waste management 0.00 12.00 79.47 0.00 155.42 509.20 0.00 0.00 222.46 5.2 Waste water management 0.00 0.00 0.00 0.00 150.00 0.00 0.00 87.22 0.00 5.3 Pollution abatement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 91.80

0.00 0.00 0.00 0.00 0.00 0.00 5.4 Protection of biodiversity and landscape 0.00 0.00 0.00 5.5 R&D Environmental protection 0.00 0.00 0.00 10.00 59.85 175.00 0.00 0.00 0.00 5.6 Environmental protection n.e.c. 27.51 14.94 8.60 62.57 204.02 203.18 63.99 95.92 50.51 6 Housing and Community Ammnities 111.67 80.60 108.19 238.48 585.62 652.92 11.25 35.47 81.66 6.1 Housing development 0.00 0.00 0.00 0.33 10.13 127.01 0.00 0.00 57.62 6.2 Community development 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.3 Water supply 90.19 45.40 90.00 238.15 575.49 525.91 11.25 35.47 24.04 6.4 Street lighting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 R&D Housing and community amenities 0.00 0.00 0.00 0.00 0.00 0.00 6.5 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 6.6 Housing and community amenities n.e.c. 21.48 35.20 18.19 7 Health 67.64 72.39 98.14 71.36 204.68 0.00 6.89 80.67 0.00 Medical products, appliances and 30.00 0.00 0.00 22.00 0.00 7.1 equipment 15.31 3.70 42.56 12.39 7.2 Out-patient services 2.78 41.16 42.29 0.00 0.00 0.00 0.00 0.00 7.3 Hospital services 15.91 14.68 0.02 9.17 0.00 1.63 0.00 0.00 7.4 Public health services 33.64 12.85 13.28 49.80 174.68 0.00 5.26 58.67 0.00 7.5 R&D Health 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.6 Health n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8 Recreation, Cultural and Religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.1 Recreational and sporting services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.2 Cultural services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.3 Broadcasting and publishing services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.4 Religious and other community services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.5 R&D Recreation, culture and religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.6 Recreation, culture and religion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Education 43.22 56.18 0.00 29.74 112.97 190.28 16.91 51.45 49.39 9.1 Pre-primary and primary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.2 Secondary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.4 Tertiary education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.5 Educaiton not definable by level 43.22 56.18 0.00 24.29 0.00 0.00 16.40 0.00 0.00 9.6 Subsidiary services to education 0.00 0.00 0.00 0.02 0.00 0.00 0.51 0.00 0.00 9.7 R&D education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.8 Educaiton n.e.c. 0.00 0.00 0.00 5.43 112.97 190.28 0.00 51.45 49.39 10 Social Protection 13.42 12.22 5.82 2.76 22.41 135.49 0.07 4.71 10.68 10.1 Sickness and disability 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.2 Old age 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.3 Survivors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.4 Family and children 0.00 0.00 0.01 2.76 22.41 135.49 0.07 4.71 10.68 10.5 Umemployment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.6 Housing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.7 Social exculsion n.e.c. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.8 R&D Social protection 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.9 Social protection n.e.c. 13.42 12.22 5.81 0.00 0.00 0.00 0.00 0.00 0.00 Total 1207.42 1108.21 1196.94 1799.88 4952.88 9496.47 427.29 736.02 913.33 * Estimated Note: Government of Nepal has started to record its revenue and expenses using Government Financial Statistic (GFS) 2001 since the fiscal year 2011/12. The Data of previous Fiscal Years may therefore differ Source: Financial Comptroller General Office

Table 2.11 : Foreign Loan and Debt Servicing Rs. In Ten Milllion Fiscal Year First Eight Month S. No. Heading 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16 Direct 1 Outstanding Upto Last Year 23396.86 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34681.91 34326.18 Increase/Decrease due to 2 Exchange Rate Fluctution 0.00 3263.20 2943.11 -1730.81 67.74 4756.69 2176.50 896.98 -1577.97 -2442.70 2104.23 3 Borrowing 1185.68 857.39 776.42 725.40 1384.92 1570.08 1657.95 2113.24 2926.42 1421.18 2448.45 4 Repayments 753.88 786.94 1012.03 1074.30 1221.81 1353.24 1419.01 1672.46 1704.18 949.00 947.75 5 Interest Payments 205.57 214.53 237.37 245.81 232.19 283.08 300.32 336.52 303.61 174.96 171.94 6 Net Outstanding 21662.89 24996.54 27704.04 25624.23 25955.18 30928.71 33344.15 34681.91 34326.18 32711.39 37931.11 Indirect 1 Outstanding Upto Last Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Borrowing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 Repayments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 Interest Payments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 Net Outstanding 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Foreign Loan 1 Outstanding Upto Last Year 21231.09 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34681.91 34326.18 Increase/Decrease due to 2 Exchange Rate Fluctution 3263.20 2943.11 -1730.81 67.74 4756.69 2176.50 896.98 -1577.97 -2442.70 2104.23 3 Borrowing 1185.68 857.39 776.42 725.40 1384.92 1570.08 1657.95 2113.24 2926.42 1421.18 2448.45 4 Repayments 753.88 786.94 1012.03 1074.30 1121.81 1353.24 1419.01 1672.46 1704.18 949.00 947.75 5 Interest Payments 205.57 214.53 237.37 245.81 232.19 283.08 300.32 336.52 303.61 174.96 171.94 6 Net Outstanding 21662.89 24996.54 27704.04 25624.33 25955.18 30928.71 33344.15 34681.91 34326.18 32711.39 37931.11 Note : Outstanding may differ due to exchange rate fluctuation. Source: Financial Comptroller General Office.

Table 2.12 : Ownership Pattern of Government Bonds and Treasury Bills Rs. In Ten Million S. Fiscal Year First Eight Month Description No. 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 2015/16 1 Treasury Bills a Nepal Rastra Bank 920.93 1376.88 1757.90 2254.86 3047.74 2817.89 2507.29 1296.89 2204.89 1796.89 1772.44 2146.89 2146.89 1601.99 b Commercial Banks 5164.58 5861.15 6496.63 6105.48 6810.95 8646.11 10204.92 12149.14 11336.03 10072.92 11054.42 11374.39 10266.77 8945.80 c Others 211.52 206.50 248.77 291.17 345.68 570.07 450.20 200.78 105.89 116.00 335.55 125.53 83.15 958.12 Sub-Total 6297.03 7444.53 8503.30 8651.51 10204.37 12034.07 13162.41 13646.81 13646.81 11985.81 13162.41 13646.81 12496.81 11505.91 2 Development Bonds a Nepal Rastra Bank 151.86 151.86 29.65 30.23 30.91 34.82 38.20 31.92 0.00 0.00 38.32 31.92 0.00 0.00 b Commercial Banks 627.10 628.03 701.67 1073.67 1472.87 1932.22 2678.06 2573.87 2300.68 3563.39 2639.06 2809.47 2206.18 3335.39 c Financial Institutions 413.18 463.65 660.81 784.24 898.29 1227.97 1336.26 1271.66 710.67 1541.45 1529.64 1222.90 952.35 d Provident Fund 263.51 405.64 496.54 636.52 653.91 653.91 781.98 666.98 719.09 836.86 741.98 827.95 676.07 836.86 e Govt. Business Enterprise 1.25 1.25 9.10 0.00 188.33 188.33 240.38 239.13 157.91 534.17 240.38 212.01 157.91 50.71 f Private Business Enterprise 28.95 34.25 218.98 0.00 52.68 262.16 262.16 185.75 166.91 50.71 252.16 185.75 153.20 148.37 g Individuals 214.30 59.45 10.75 56.86 0.00 9.66 9.66 1.47 0.31 0.31 9.24 1.47 0.31 0.31 h Non-profit Organizations 95.77 173.59 46.05 366.33 254.96 42.88 139.36 125.72 94.53 10.89 139.36 112.89 94.53 8.02 Sub-Total 1795.92 1917.71 2173.54 2947.85 3551.94 4351.94 4149.80 5161.09 4711.09 5707.00 5601.94 5711.09 4511.09 5332.00 3 National Savings Certificate a Nepal Rastra Bank 26.60 27.95 44.72 7.69 0.00 0.76 1.50 1.74 1.87 2.14 1.68 1.84 2.14 0.87 b Commercial Banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 c Financial Institutions 20.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 d National Insurance Company 32.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 e Provident Fund 12.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 f Govt. Business Enterprise 23.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 g Private Business Enterprise 12.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 h Individuals 19.56 0.00 0.00 0.00 0.00 1002.06 1471.63 1471.63 1491.63 1491.63 1471.63 1491.63 1491.63 1110.72 i Non-profit Organizations 240.80 123.74 66.98 14.00 0.00 65.18 94.88 94.64 165.16 164.89 94.70 165.19 164.89 147.06 Sub-Total 387.68 151.69 111.69 21.69 0.00 1068.00 1568.01 1568.00 1658.65 1658.65 1568.00 1658.65 1658.65 1258.65 4 Public Saving Card 5.53 6.27 56.27 115.51 263.50 313.55 275.33 241.12 a Nepal Rastra Bank (Secondary Market) 126.54 50.76 249.11 186.40 50.76 30.60 b Private Sector (Individual) 162.36 132.83 245.16 327.85 248.79 149.36 136.97 77.26 25.14 254.86 103.19 61.98 20.91 250.01 c Forign Employment Bond 0.00 0.00 0.00 0.00 0.40 0.74 1.60 5.89 13.53 21.50 1.60 8.53 13.53 21.50 Sub-Total 167.89 139.10 301.44 443.36 512.69 463.65 413.90 324.27 165.20 327.12 353.91 256.91 71.67 302.12 5 Special Bonds. 0.00 a. Five years special bonds (N.R.BK) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 b IMF Promisory Note (N.R.BK) 475.58 447.22 480.04 480.04 520.00 487.11 487.11 1334.55 487.11 487.11 487.11 1334.55 487.11 487.11 CB PASS 20 years Special Bond and 346.98 277.35 33.94 22.96 16.97 15.80 15.76 c. others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 Nepal Rastra Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Commercial Banks. 94.46 94.46 15.76 15.76 15.76 15.76 15.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 Employee's Provident Fund 147.35 147.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 Individuals 105.17 35.54 18.18 7.20 1.21 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sub-Total 822.56 724.57 513.98 503.00 536.97 502.91 502.87 1334.55 487.11 487.11 487.11 1334.55 487.11 487.11 6 Total a Nepal Rastra Bank 1580.50 2010.19 2368.58 2888.33 3862.15 3654.13 3309.43 2906.22 2820.40 2336.90 2548.66 3701.60 2686.89 2120.57 b Commercial Banks 5886.14 6583.64 7214.06 7194.91 8299.58 10594.09 12898.74 14723.02 13636.70 13636.31 13693.48 14183.86 12472.95 12281.19 c. Others 2004.44 1783.78 2021.31 2484.17 2644.25 4172.36 5190.96 4405.48 4211.75 4192.48 4931.23 4722.55 4079.01 4484.03 Grand Total 9471.08 10377.60 11603.95 12567.41 14805.97 18420.57 21399.13 22034.72 20668.86 20165.68 21173.37 22608.01 19238.86 18885.78 Note : Including CB pass 20 years special bonds and forest compensation special Bonds. Source: Nepal Rastra Bank

Table 3.1 : Overall Urban Consumers' Price Index (Nepal) (Base Year 2014/15 = 100)

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16*

Mid August 59.2 65.2 71.4 76.8 85.9 92.69 99.64 106.52 Mid September 60.1 65.6 71.3 77.3 86.0 92.85 99.87 107.05 Mid October 60.4 65.7 71.4 77.8 85.9 93.17 100.16 108.37 Mid November 60.1 65.6 71.1 77.1 85.2 93.67 100.37 110.85 Mid December 58.7 64.8 70.9 76.3 84.2 92.83 99.38 110.88 Mid January 58.2 64.4 71.7 76.5 84.1 92.23 98.58 110.46 Mid February 58.9 65.3 71.9 77.0 84.8 92.22 98.66 109.80 Mid March 59.3 65.2 72.1 77.1 85.0 92.55 99.04 109.20 Mid April 59.7 65.5 72.4 77.9 85.2 93.30 99.68 - Mid May 61.2 66.7 72.9 79.3 86.2 94.60 101.30 - Mid June 61.5 66.6 72.3 79.5 86.1 94.22 101.18 - Mid July 61.3 66.8 73.2 81.6 87.9 95.01 102.21 - Annual 59.9 65.6 71.9 77.8 85.5 93.30 100.00 Annual Growth 12.6 9.6 9.6 8.3 9.9 9.10 7.20 - (Percentage) * Provisional Source : Nepal Rastra Bank. Table 3.2 (a): National Urban Consumers' Price Index by Commodities Group (Average) (Base Year 2014/15 = 100) First Eight Month Average Commodities and Groups Weights (%) 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2014/15 2015/16* % change Overall Index 100.00 59.9 65.6 71.9 77.8 85.5 93.3 100.0 99.5 109.1 9.7 Food and Beverage 43.91 52.4 60.4 69.3 74.6 81.7 91.2 100.0 99.3 110.5 11.3 Cereals Grains & their products 11.33 59.3 65.3 74.4 74.6 81.4 90.4 100.0 98.6 108.6 10.1 Legume Varieties 1.84 61.9 78.0 72.1 72.1 81.1 85.0 100.0 96.5 132.9 37.8 Vegetables 5.52 36.6 44.1 59.6 74.0 78.3 94.3 100.0 105.4 111.9 6.2 Meat & Fish 6.75 49.1 59.4 64.6 69.4 79.4 93.9 100.0 98.6 109.2 10.7 Milk Products and Egg 5.24 52.3 58.5 67.0 76.2 82.7 88.6 100.0 98.1 109.4 11.5 Ghee and Oil 2.95 77.6 74.0 75.9 86.9 98.8 99.7 100.0 99.6 123.0 23.4 Fruits 2.08 43.3 52.1 62.3 72.8 77.4 87.9 100.0 96.3 104.9 9.0 Sugar & Sweets 1.74 48.2 70.0 83.7 91.4 103.9 100.0 100.0 100.5 105.0 4.4 Spices 1.21 55.4 70.6 86.9 79.0 83.0 90.9 100.0 99.7 112.3 12.7 Soft Drinks 1.24 61.9 73.5 81.1 84.7 94.1 96.4 100.0 99.8 104.0 4.2 Hard Drinks 0.68 52.9 59.3 63.1 66.0 71.3 83.3 100.0 99.9 111.5 11.6 Tobacco Products 0.41 41.6 46.8 53.1 58.9 67.0 79.6 100.0 99.9 107.2 7.3 Restaurant & Hotel 2.92 46.9 56.4 65.2 72.9 81.6 90.2 100.0 99.3 107.9 8.7 Non-Food and Services 56.09 67.2 70.4 74.3 80.9 89.1 95.1 100.0 99.6 108.1 8.6 Clothing & Footwear 7.19 52.2 56.1 63.6 73.0 81.9 91.0 100.0 99.6 112.6 13.0 Housing & Utilities 20.3 72.0 74.3 79.8 84.7 93.7 98.5 100.0 99.9 111.2 11.3 Furnishing & Household Equipment 4.3 58.7 62.4 65.9 74.7 84.7 92.4 100.0 99.6 105.2 5.6 Health 3.47 73.5 76.0 79.1 82.7 88.3 94.8 100.0 99.9 101.7 1.8 Transport 5.34 69.7 66.4 73.1 84.5 93.7 98.7 100.0 101.2 102.8 1.6 Communication 2.82 123.6 123.6 110.5 101.5 99.4 99.9 100.0 99.9 104.9 5.0 Recreation and Culture 2.46 72.2 77.5 75.7 81.5 88.3 94.1 100.0 99.9 103.6 3.7 Education 7.41 60.9 67.8 71.5 78.5 88.0 94.7 100.0 97.1 109.2 12.4 Miscellaneous Goods & Services 2.81 62.7 67.4 71.4 78.4 86.3 92.6 100.0 99.8 102.5 2.7 * Provisional Source : Nepal Rastra Bank. Table 3.2 (b): National Urban Consumers' Price Index by Commodities Group (First Eight Months) (Base Year 2014/15 = 100)

Weights 2008/09 2008/09 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 Percent Change** Commodities and Groups (%) Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March 2014/15 2015/16 Overall Index 100.00 61.3 65.2 66.8 72.1 73.2 77.1 81.6 85.0 87.9 92.6 95.0 99.0 102.2 109.2 7.0 10.2 Food and Beverage 43.91 56.5 59.6 62.7 69.9 70.3 72.9 78.7 81.1 85.3 89.9 94.7 98.4 103.5 108.5 9.5 10.3 Cereals Grains & their products 11.33 60.0 67.1 68.9 76.1 73.0 74.3 76.1 83.8 85.0 93.6 91.1 100.9 102.7 110.2 7.8 9.2 Legume Varieties 1.84 63.6 79.4 71.6 72.9 65.7 71.7 72.3 80.7 78.0 86.2 82.6 100.6 112.4 132.5 16.7 31.6 Vegetables 5.52 52.3 35.3 47.5 61.2 69.0 64.3 94.9 70.4 91.7 80.1 111.1 84.0 101.7 89.7 4.8 6.8 Meat & Fish 6.75 56.1 63.3 62.8 68.2 66.1 72.2 73.9 84.5 85.4 95.9 99.0 105.4 105.2 112.2 9.9 6.5 Milk Products and Egg 5.24 53.9 56.6 64.1 62.5 72.9 73.5 80.5 78.8 85.0 84.1 94.3 98.2 105.7 109.8 16.7 11.9 Ghee and Oil 2.95 72.6 75.0 72.1 77.4 78.4 87.6 93.7 99.8 96.9 100.1 97.2 99.7 101.0 118.4 -0.4 18.8 Fruits 2.08 48.4 48.1 51.2 64.2 64.8 70.5 74.3 74.1 80.3 84.6 100.8 93.3 108.7 101.9 10.3 9.2 Sugar & Sweets 1.74 56.1 82.3 66.8 88.0 83.1 93.2 94.6 104.4 99.6 100.8 98.7 100.7 98.9 107.4 -0.1 6.7 Spices 1.21 56.1 70.5 80.3 86.1 79.9 75.7 74.9 79.8 84.2 88.2 88.5 98.8 102.4 115.2 12.0 16.6 Soft Drinks 1.24 64.5 72.7 72.0 79.2 77.5 84.0 83.2 94.0 89.3 96.2 92.4 100.3 100.5 105.0 4.3 4.7 Hard Drinks 0.68 50.4 57.9 55.8 59.2 58.2 64.6 65.3 67.5 71.6 82.7 85.5 100.1 100.2 114.6 21.0 14.5 Tobacco Products 0.41 38.0 44.4 41.8 52.0 48.8 56.6 57.5 63.1 63.2 79.0 78.0 100.1 100.3 108.0 26.7 7.9 Restaurant & Hotel 2.92 49.3 57.2 57.4 66.2 65.7 73.7 74.1 82.8 82.4 90.6 89.1 100.9 101.6 110.8 11.3 9.9 Non-Food and Services 56.09 65.8 70.3 70.6 74.1 76.0 81.1 84.5 88.6 90.6 94.9 95.4 99.6 101.2 109.7 4.9 10.2 Clothing & Footwear 7.19 51.0 55.7 55.1 63.3 64.7 73.0 74.4 81.4 81.8 91.4 88.8 100.5 100.9 115.9 10.0 15.3 Housing & Utilities 20.30 69.6 76.0 77.5 80.9 80.6 85.9 89.8 94.3 95.5 99.1 99.0 99.9 100.4 113.1 0.8 13.1 Furnishing & Household Equipment 4.3 57.6 61.5 61.9 66.0 67.8 74.9 76.7 84.5 85.6 92.4 90.6 100.6 100.8 107.5 8.9 6.8 Health 3.47 72.4 75.5 74.7 77.7 77.9 82.7 84.2 88.0 89.6 96.0 94.5 100.1 100.3 102.5 4.3 2.5 Transport 5.34 66.2 66.5 66.2 74.0 78.3 86.6 89.8 93.9 95.3 98.4 99.3 98.9 97.3 102.3 0.5 3.4 Communication 2.82 123.0 123.4 123.0 110.6 103.0 101.6 99.0 99.5 99.8 99.6 99.6 99.9 100.4 105.6 0.3 5.7 Recreation and Culture 2.46 70.8 77.3 75.2 75.8 74.7 82.5 81.1 87.6 87.1 94.2 92.0 100.1 100.2 104.8 6.2 4.8 Education 7.41 62.6 66.5 70.0 69.7 79.8 75.9 89.9 85.4 96.9 92.1 102.2 97.1 109.1 109.2 5.4 12.4 Miscellaneous Goods & Services 2.81 59.8 67.1 65.7 70.7 71.5 77.7 77.5 86.1 84.0 91.7 89.1 99.3 99.5 107.4 8.3 8. 1 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank. Table 3.2 (c): Urban Consumers' Price Index by Commodities Group, Kathmandu (First Eight Months) (Base Year 2014/15 = 100) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Percent Change** Commodities and Groups Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2014/15 2015/16 Overall Index 63.75624354 72.6 76.7 85.0 92.4 98.9 111.5 7.1 12.7 Food and Beverage 56.4 68.3 70.6 79.3 88.9 98.0 112.1 10.3 14.4 Cereals Grains & their products 63.5 72.3 72.0 81.6 92.1 100.9 111.2 9.6 10.2 Legume Varieties 86.0 72.5 73.1 81.2 87.6 100.7 137.4 15.0 36.4 Vegetables 28.7 58.5 58.2 65.2 76.2 84.7 99.8 11.1 17.9 Meat & Fish 64.7 69.0 72.3 83.9 97.4 104.5 115.0 7.2 10.1 Milk Products and Egg 58.7 63.2 74.7 79.6 83.8 97.9 109.2 16.9 11.5 Ghee and Oil 74.7 80.0 89.4 101.0 99.6 99.1 130.0 -0.5 31.2 Fruits 44.4 56.4 60.8 64.3 80.9 90.3 118.2 11.5 30.9 Sugar & Sweets 52.7 86.3 89.6 100.0 98.6 100.9 110.1 2.4 9.1 Spices 64.6 85.7 71.6 80.4 87.3 97.7 114.8 11.9 17.6 Soft Drinks 83.9 78.4 82.6 95.2 96.8 100.4 104.3 3.6 3.9 Hard Drinks 68.9 62.3 68.5 74.7 82.1 100.1 111.5 21.8 11.4 Tobacco Products 50.8 54.2 56.9 68.0 87.0 100.0 107.4 14.9 7.4 Restaurant & Hotel 57.8 66.8 73.3 80.8 88.8 100.2 113.8 12.8 13.5 Non-Food and Services 71.5 77.0 83.0 90.7 95.6 99.5 111.0 4.1 11.6 Clothing & Footwear 59.1 66.8 74.7 84.2 92.8 100.4 113.1 8.2 12.6 Housing & Utilities 72.2 77.8 80.1 91.6 96.5 100.1 117.0 3.7 17.0 Furnishing & Household Equipment 61.1 68.8 75.8 87.1 93.2 100.3 107.0 7.6 6.6 Health 68.3 76.3 80.3 84.9 94.6 99.8 103.9 5.5 4.1 Transport 87.0 85.9 98.9 107.6 102.4 98.8 100.6 -3.5 1.8 Communication 119.5 107.5 100.2 99.2 98.7 100.0 103.6 1.3 3.6 Recreation and Culture 64.5 74.5 83.7 88.1 95.7 100.1 104.8 4.5 4.8 Education 71.6 78.2 83.4 86.9 92.7 96.7 109.4 4.3 13.1 Miscellaneous Goods & Services 68.4 73.1 80.3 90.5 93.1 99.3 106.0 6.6 6.8 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank. Table 3.2 (d): Urban Consumers' Price Index by Commodities Group, Terai (First Eight Months) (Base Year 2014/15 = 100)

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Percentage Change** Commodities and Groups Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2014/15 2015/16 Overall Index 66.5 71.7 76.7 84.5 92.6 99.0 107.5 6.9 8.6 Food and Beverage 61.3 69.6 72.3 80.3 89.2 98.1 106.3 10.0 8.4 Cereals Grains & their products 68.7 77.2 73.6 83.4 94.4 101.0 110.9 7.0 9.8 Legume Varieties 76.5 72.8 69.8 79.8 85.8 101.0 131.2 17.7 29.9 Vegetables 41.2 60.9 65.5 69.8 78.8 82.0 80.4 4.1 -2.0 Meat & Fish 63.2 67.6 71.1 85.1 95.2 106.1 110.9 11.5 4.5 Milk Products and Egg 55.2 59.4 70.2 75.3 81.1 98.4 110.9 21.2 12.7 Ghee and Oil 75.9 76.1 87.7 100.0 101.1 99.9 119.4 -1.2 19.5 Fruits 47.7 67.8 74.7 78.9 86.4 94.2 95.9 9.0 1.8 Sugar & Sweets 98.2 85.8 92.1 103.8 99.6 100.4 106.3 0.8 5.8 Spices 74.3 87.3 77.9 79.3 90.0 99.3 112.5 10.3 13.3 Soft Drinks 66.1 79.2 83.3 92.6 94.1 100.4 106.0 6.6 5.6 Hard Drinks 53.9 56.8 60.8 62.2 84.6 100.0 113.3 18.3 13.3 Tobacco Products 42.0 53.7 59.4 64.4 76.1 100.0 109.8 31.5 9.8 Restaurant & Hotel 55.6 65.2 71.2 79.3 89.1 101.3 106.9 13.7 5.5 Non-Food and Services 70.6 73.2 80.2 87.9 95.1 99.6 108.4 4.7 8.9 Clothing & Footwear 55.6 62.7 71.5 79.5 90.8 100.5 115.1 10.7 14.5 Housing & Utilities 80.4 84.6 92.0 99.1 102.8 99.9 110.6 -2.8 10.7 Furnishing & Household Equipment 61.2 66.7 76.1 85.7 92.3 100.6 106.5 9.0 5.8 Health 79.3 80.5 83.7 90.0 97.3 100.1 101.5 2.9 1.4 Transport 57.2 67.7 79.5 86.0 96.2 98.8 102.2 2.7 3.5 Communication 122.3 107.9 102.1 99.8 100.2 99.9 106.4 -0.2 6.5 Recreation and Culture 85.1 72.9 79.0 85.6 93.5 100.0 103.8 7.0 3.7 Education 65.1 66.2 71.4 83.6 92.1 97.3 109.3 5.6 12.3 Miscellaneous Goods & Services 67.3 70.9 77.8 85.9 90.5 99.3 106.1 9.8 6.9 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank. Table 3.2 (e): Urban Consumers' Price Index by Commodities Group, Hill (First Eight Months) (Base Year 2014/15 = 100)

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Percent Change** Commodities and Groups Mid March Mid March Mid March Mid March Mid March Mid March Mid March* 2014/15 2015/16 Overall Index 64.7 72.2 78.3 85.9 92.7 99.3 109.6 7.1 10.4 Food and Beverage 60.8 72.4 76.6 84.7 91.9 98.9 108.9 7.6 10.1 Cereals Grains & their products 69.2 79.1 78.3 87.5 94.3 100.7 108.5 6.8 7.7 Legume Varieties 76.6 73.9 73.1 81.8 85.3 100.0 130.5 17.2 30.5 Vegetables 34.9 64.2 69.6 77.4 86.7 85.8 98.2 -1.1 14.5 Meat & Fish 62.1 68.5 74.0 84.6 95.6 105.5 111.9 10.4 6.1 Milk Products and Egg 56.3 67.0 77.3 83.5 89.3 97.9 109.4 9.6 11.8 Ghee and Oil 73.6 76.2 85.2 97.7 98.9 99.7 109.9 0.9 10.2 Fruits 53.3 67.7 75.8 78.8 85.3 94.9 97.2 11.1 2.5 Sugar & Sweets 104.8 94.2 99.8 111.1 105.5 100.9 106.3 -4.4 5.4 Spices 71.4 84.2 76.6 79.6 85.9 98.7 119.4 15.0 21.0 Soft Drinks 71.7 80.0 86.7 95.0 99.1 100.1 104.4 1.0 4.3 Hard Drinks 53.1 59.5 66.7 68.4 80.2 100.2 116.9 24.9 16.8 Tobacco Products 41.4 46.8 52.1 55.7 75.0 100.3 106.2 33.7 5.9 Restaurant & Hotel 59.3 67.1 78.8 91.6 95.4 101.0 113.4 5.9 12.3 Non-Food and Services 68.4 72.0 80.1 87.1 93.6 99.6 110.3 6.4 10.7 Clothing & Footwear 52.1 60.4 73.5 81.4 90.7 100.7 119.9 11.1 19.1 Housing & Utilities 73.6 78.5 83.5 89.9 96.1 99.7 111.2 3.7 11.5 Furnishing & Household Equipment 62.5 61.9 71.9 79.4 91.5 101.0 110.1 10.3 9.0 Health 78.3 74.7 83.6 88.4 95.5 100.3 103.3 4.9 3.0 Transport 61.7 71.6 85.0 92.0 97.4 99.3 104.8 1.9 5.6 Communication 130.4 119.3 102.5 99.5 99.9 99.7 106.2 -0.1 6.5 Recreation and Culture 82.1 82.5 87.2 90.6 93.7 100.3 107.1 7.0 6.8 Education 63.3 66.1 74.9 86.7 91.3 97.3 108.7 6.6 11.7 Miscellaneous Goods & Services 65.2 67.5 74.6 81.4 92.1 99.5 111.4 8.0 12.0 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank. Table 3.3 (a) :National Wholesale Price Index, Annual (Base Year 1999/00=100) Fiscal Year Month 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* July /August 122.1 133.5 142.4 160.0 177.9 201.4 218.4 230.70 257.9 273.2 293.5 309.2 August/September 123.1 134.8 147.1 163.5 180.3 203.0 219.6 235.20 259.1 278.8 299.2 314.5 September/October 123.4 135.0 149.0 164.3 179.6 206.1 222.5 236.00 260.1 279.7 299.8 317.6 October/November 122.6 136.4 150.5 161.3 176.1 208.7 224.1 235.30 258.5 281.8 300.8 322.1 November/December 119.0 134.3 146.3 155.2 170.9 203.2 226.0 235.70 255.2 278.8 297.2 320.7 December/January 119.7 129.5 143.0 150.8 172.9 200.6 226.4 233.70 255.0 277.7 292.8 315.2 January/February 121.0 128.9 145.1 151.3 174.0 198.7 222.2 232.60 254.6 275.1 290.2 310.2 February/March 123.2 130.8 146.7 156.4 175.6 197.0 221.4 235.40 256.6 277.9 293.1 309.1 March/April 123.7 133.1 143.2 156.6 178.1 197.6 220.3 234.80 254.5 277.4 292.0 April/May 125.2 136.9 145.4 160.1 184.9 200.4 221.9 239.70 259.2 282.8 297.1 May/June 126.5 138.2 146.0 164.9 193.0 205.2 223.4 244.00 260.4 284.2 299.5 June/July 129.9 139.9 151.8 171.8 198.0 211.8 227.2 251.00 267.9 288.9 304.4 Annual 123.3 134.3 146.4 159.7 180.1 202.8 222.8 237.00 258.3 279.7 296.6 Annual Growth (Percentage) 7.3 8.9 9.0 9.1 12.8 12.6 9.9 6.37 9.0 8.3 6.1 * Provisional Source : Nepal Rastra Bank Table 3.3 (b): National Wholesale Price Index (First Eight Months) (Base Year 1999/00 = 100)

Weights 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 Percent Change** Commodities and Groups (%) Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March 2014/15 2015/16 Overall Index 100.00 211.8 221.40 227.20 235.40 251.00 256.60 267.90 277.88 288.88 293.03 304.40 309.14 5.45 5.50 Agricultural Commodities 49.59 233.9 241.10 244.30 245.30 271.60 275.50 297.10 306.75 323.36 332.66 354.51 362.85 8.45 9.08 Foodgrains 16.59 207.5 219.30 202.30 206.20 205.80 225.50 234.70 253.69 248.82 271.72 274.90 276.98 7.11 1.94 Cash Crops 6.09 241.8 221.80 251.40 243.70 340.30 323.80 349.10 333.86 369.07 376.70 349.74 390.01 12.83 3.53 Pulses 3.77 289.4 281.20 248.20 271.50 278.20 293.70 292.50 293.91 305.63 330.96 418.28 487.40 12.61 47.27 Fruits and Vegetables 11.18 195.1 202.00 241.00 229.90 275.60 249.10 286.60 249.23 300.84 293.72 366.28 321.21 17.85 9.36 Spices 1.95 245.4 281.10 258.10 226.50 216.30 234.10 282.80 310.11 314.31 321.18 330.14 387.36 3.57 20.61 Livestock Production 10.02 293.1 309.70 309.20 322.00 342.90 359.50 385.20 446.51 452.52 453.14 456.81 483.34 1.48 6.66 Domestic Manufactured Commodities 20.37 184.2 198.00 205.30 216.90 221.00 224.40 227.10 239.57 245.48 253.99 256.18 269.92 6.02 6.27 Food-Related Products 6.12 180.0 180.60 189.70 206.40 211.30 219.50 222.70 230.94 236.88 234.65 235.92 241.76 1.60 3.03 Beverages and Tobacco 5.69 182.8 211.10 220.20 231.70 235.60 237.00 241.20 260.85 269.26 290.61 291.88 315.96 11.41 8.72 Construction Materials 4.50 237.7 241.20 246.30 257.20 263.10 260.30 262.40 280.29 284.75 290.37 293.33 299.94 3.60 3.30 Others 4.07 133.2 158.10 162.50 167.30 168.40 174.60 175.00 177.73 181.71 191.60 195.56 214.62 7.80 12.02 Imported Commodities 30.03 194.1 204.90 213.70 231.60 237.20 247.00 247.30 256.18 261.40 254.06 254.37 247.07 -0.83 -2.75 Petroleum Products and Coal 5.40 347.4 372.30 398.60 458.60 490.00 529.70 529.70 557.59 574.20 492.18 492.93 429.13 -11.73 -12.81 Chemical Fertilizers and Chemical Goods 2.46 187.3 197.90 204.20 206.90 206.90 228.10 228.10 232.63 232.63 250.92 250.92 252.82 7.86 0.76 Transport Vehicles and Machinery Goods 6.97 164.5 175.80 180.30 188.20 188.40 188.50 188.50 186.09 188.63 190.05 190.08 202.91 2.13 6.77 Electric and Electronic Goods 1.87 100.5 98.70 99.10 110.80 110.80 110.80 110.80 124.57 124.57 124.32 124.94 124.94 -0.20 0.50 Drugs and Medicine 2.73 131.5 137.20 137.40 141.70 146.10 146.10 146.10 139.42 147.66 153.99 153.99 155.55 10.45 1.01 Textile-Related Products 3.10 134.2 136.50 141.80 170.60 170.50 171.30 171.30 177.03 177.03 191.79 191.79 196.81 8.34 2.61 Others 7.45 184.3 193.00 200.70 204.70 202.80 206.20 207.10 220.15 223.72 238.30 238.22 239.72 8.30 0.59 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank Table 3.3 (c): National Wholesale Price Index (Annual Average) (Base Year 1999/00 = 100)

Percent Change Commodities and Groups Weights (%) 2007/08 2008/09 2009/10 2010/112011/12 2012/13 2013/14 2014/15 2013/14 2014/15 Overall Index 100.00 159.7 180.1 202.8 222.8 237.0 258.3 279.7 296.6 8.3 6.1 Agricultural Commodities 49.59 159.1 181.3 222.7 246.7 252.8 279.6 311.1 338.7 11.3 8.8 Foodgrains 16.59 148.9 161.5 189.3 214.0 203.7 222.7 244.5 266.9 9.8 9.2 Cash Crops 6.09 191.8 199.6 275.4 245.4 279.7 351.3 353.4 393.0 0.6 11.2 Pulses 3.77 186.1 226.6 278.6 275.6 266.1 299.7 291.6 343.4 -2.7 17.8 Fruits and Vegetables 11.18 146.7 166.7 182.4 225.4 251.3 253.3 285.7 321.8 12.8 12.7 Spices 1.95 129.2 143.9 198.0 273.4 229.7 237.1 307.5 307.2 29.7 -0.1 Livestock Production 10.02 165.9 209.6 274.5 309.3 318.7 360.3 432.1 447.5 19.9 3.6 Domestic Manufactured Commodities 20.37 148.7 164.9 179.0 195.2 213.9 224.9 238.4 251.7 6.0 5.6 Food-Related Products 6.12 138.0 153.8 173.1 183.0 202.7 219.8 230.5 235.5 4.9 2.2 Beverages and Tobacco 5.69 143.3 160.0 181.5 207.4 231.4 238.4 258.9 284.3 8.6 9.8 Construction Materials 4.50 196.1 217.9 226.6 238.3 250.9 261.7 276.3 288.6 5.6 4.5 Others 4.07 120.2 129.9 131.8 148.8 165.3 173.1 179.6 189.8 3.7 5.7 Imported Commodities 30.03 168.0 188.4 186.2 202.1 226.6 245.6 255.9 257.7 4.2 0.7 Petroleum Products and Coal 5.40 298.9 330.0 314.2 364.0 441.2 523.6 557.9 522.3 6.5 -6.4 Chemical Fertilizers and Chemical Goods 2.46 194.6 209.9 189.1 198.3 206.7 223.0 232.4 246.5 4.2 6.1 Transport Vehicles and Machinery Goods 6.97 138.1 165.4 163.0 172.4 185.9 188.4 188.2 190.8 -0.1 1.4 Electric and Electronic Goods 1.87 95.2 100.1 97.0 99.9 111.2 110.8 120.3 124.3 8.6 3.3 Drugs and Medicine 2.73 116.2 123.0 132.2 134.4 138.1 146.1 144.0 154.1 -1.4 7.0 Textile-Related Products 3.10 108.1 125.0 128.8 135.7 167.3 171.3 176.5 187.4 3.1 6.2 Others 7.45 154.6 173.0 180.1 192.0 202.1 206.4 216.5 233.0 4.9 7.6 Source : Nepal Rastra Bank Table 3.4 (a) : National Salary and Wage Rate Index, Annual (Base Year 2004/05=100) Fiscal Year Month 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* July /August 122.8 132.8 162.3 185.4 241.9 271.4 296.3 333.7 354.0 August/September 123.3 134.6 162.6 187.9 245.3 273.7 305.3 333.9 355.2 September/October 123.5 134.7 164.5 190.2 247.0 274.3 305.3 334.0 360.9 October/November 123.5 135.8 165.9 190.6 247.0 275.8 305.3 334.0 361.0 November/December 123.3 141.3 165.9 190.6 249.7 275.8 308.2 340.1 361.5 December/January 124.8 144.0 169.5 190.6 251.7 277.5 323.7 346.5 362.0 January/February 124.7 145.3 169.5 197.5 256.9 277.5 324.5 346.5 362.0 February/March 125.1 149.2 169.6 202.0 257.7 277.7 324.5 346.5 362.3 March/April 125.4 150.8 171.7 214.3 259.9 279.0 324.5 347.5 April/May 125.5 152.0 171.7 214.3 262.8 281.3 324.5 347.9 May/June 127.6 155.0 175.7 216.6 262.8 282.1 324.5 348.9 June/July 132.6 157.0 181.8 216.6 270.4 287.7 324.9 350.5 Annual 125.2 144.4 169.2 199.7 254.4 277.8 316.0 342.5 Annual Growth (Percentage) 9.7 15.3 17.2 18.0 27.4 9.2 13.7 8.4 * Provisional Source : Nepal Rastra Bank Table 3.4 (b) : National Salary and Wage Rate Index, first Eight Months (Base Year 2004/05 = 100)

Weights 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013/14 2013/14 2014/15 2014/15 2015/16 Percent Change** Commodities and Groups (%) Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March Mid July Mid March* 2014/15 2015/16 Overall Index 100.00 202.0 216.6 257.7 270.4 277.7 287.7 324.5 324.9 346.5 350.5 362.3 6.8 4.6 Salary Index 26.97 157.0 157.0 187.3 187.3 187.3 187.3 236.8 236.9 254.7 254.7 256.7 7.6 0.8 Civil Service 2.82 199.3 199.3 236.5 236.5 236.5 236.5 310.6 310.6 340.7 340.7 340.7 9.7 0.0 Public Corporations 1.14 164.1 164.1 210.0 210.0 210.0 210.0 268.0 268.9 288.1 288.1 290.1 7.5 0.7 Bank & Financial Institutions 0.55 204.1 204.1 290.6 290.6 290.6 290.6 429.1 429.1 447.5 447.5 457.7 4.3 2.3 Army & Police Forces 4.01 180.2 180.2 227.9 227.9 227.9 227.9 306.5 306.5 332.4 332.4 332.4 8.5 0.0 Education 10.55 174.5 174.5 207.8 207.8 207.8 207.8 271.2 271.2 295.8 295.8 300.2 9.1 1.5 Private Organizations 7.90 102.5 102.5 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 0.0 0.0 Wage Rate Index 73.03 218.6 238.6 283.7 301.1 311.0 324.8 356.9 357.4 380.4 385.8 401.2 6.6 5.5 Agricultural Labourer 39.49 251.9 279.8 320.1 345.4 360.2 380.5 400.1 400.1 431.8 441.0 456.1 7.9 5.6 Male 20.49 258.8 280.5 321.0 344.8 353.6 366.7 384.4 384.4 430.5 439.1 449.4 12.0 4.4 Female 19.00 244.4 279.0 319.2 346.2 367.2 395.3 417.0 417.0 433.3 443.1 463.4 3.9 6.9 Industrial Labourer 25.25 176.5 182.4 237.1 243.1 248.3 255.1 309.8 309.8 318.2 318.2 329.6 2.7 3.6 Highly Skilled 6.31 174.3 179.5 222.4 229.8 233.3 241.3 289.0 289.0 301.9 302.1 321.7 4.5 6.6 Skilled 6.31 171.4 178.3 232.6 237.2 241.5 251.8 306.8 306.8 314.5 314.5 326.9 2.5 3.9 Semi Skilled 6.31 171.5 176.9 236.7 242.3 247.7 249.3 307.0 307.0 315.9 315.9 322.1 2.9 2.0 Unskilled 6.32 188.9 194.9 256.6 263.1 270.7 278.1 336.2 336.2 340.4 340.5 347.5 1.2 2.1 Construction Labourer 8.29 187.9 213.7 251.9 266.8 267.8 271.9 294.5 299.3 325.0 329.0 358.1 10.4 10.2 Mason 2.76 177.8 201.8 238.2 245.5 248.4 250.3 272.7 278.4 302.8 305.4 333.5 11.0 10.1 Skilled 1.38 176.0 197.3 227.6 235.5 239.7 243.4 263.1 267.5 293.7 295.2 320.1 11.6 9.0 Unskilled 1.38 179.5 206.3 248.7 255.4 257.1 257.1 282.3 289.4 311.9 315.6 346.9 10.5 11.2 Carpenter 2.76 170.3 189.9 229.5 245.5 243.6 244.3 257.1 262.0 285.9 288.5 319.1 11.2 11.6 Skilled 1.38 168.5 185.7 218.4 236.2 235.1 236.4 247.8 253.3 279.1 280.3 313.8 12.6 12.4 Unskilled 1.38 172.1 194.2 240.7 254.9 252.2 252.2 266.3 270.7 292.6 296.7 324.4 9.9 10.9 Worker 2.77 215.7 249.3 288.0 309.2 311.3 321.0 353.4 357.4 386.0 392.8 421.4 9.2 9.2 Male 1.38 217.6 251.6 293.0 312.7 314.5 325.9 357.2 359.9 396.4 402.8 428.1 11.0 8.0 Female 1.39 213.8 247.0 283.0 305.7 308.1 316.2 349.7 355.0 375.8 382.9 414.8 7.5 10.4 * Provisional ** Point to Point Change (Mid March) Source : Nepal Rastra Bank Table 3.4(c) : National Salary and Wage Rate Index (Annual Average) (Base Year 2004/05 = 100) Percent Change S.N. Groups/Sub-groups Weight % 2007/08 2008/09 2009/10 2010/112011/12 2012/13 2013/14 2014/15 20113/14 2014/15 Overall Index 100.00 125.2 144.4 169.2 199.7 254.40 277.8 316.0 342.5 13.7 8.4 1 Salary Index 26.97 118.2 130.6 157.0 157.0 187.30 187.3 234.8 254.6 25.4 8.4 1.1 Civil Service 2.82 135.8 161.2 199.3 199.3 236.50 236.5 309.6 340.7 30.9 10.0 1.2 Public Corporations 1.14 121.2 138.4 164.1 164.1 208.60 210.0 263.4 287.3 25.4 9.1 1.3 Bank & Financial Institutions 0.55 170.5 186.0 204.1 204.1 290.60 290.6 417.6 446.2 43.7 6.8 1.4 Army & Police Forces 4.01 121.8 146.9 180.2 180.2 227.90 227.9 304.9 332.4 33.8 9.0 1.5 Education 10.55 122.8 134.5 174.5 174.5 207.80 207.8 268.1 295.8 29.0 10.3 1.6 Private Organizations 7.90 99.8 101.2 102.5 102.5 111.30 111.3 111.3 111.3 0.0 0.0 Wage Rate Index 2 73.03 127.8 149.4 173.8 215.5 279.20 311.2 345.9 374.9 11.1 8.4 2.1 Agricultural Labourer 39.49 126.7 155.9 187.3 247.8 320.00 360.6 392.4 422.7 8.7 7.7 Male 20.49 125.1 155.6 190.3 251.8 322.40 354.4 377.8 416.1 6.6 10.1 Female 19.00 128.6 156.3 184.0 243.4 317.40 367.2 408.1 429.8 11.0 5.3 2.2 Industrial Labourer 25.25 131.8 142.8 158.3 173.3 225.00 248.2 293.1 317.4 18.1 8.3 Highly Skilled 6.31 122.4 131.4 144.8 169.5 214.00 233.8 272.6 300.4 16.6 10.2 Skilled 6.31 129.3 140.1 155.1 168.6 220.40 242.2 290.0 314.3 19.7 8.4 Semi Skilled 6.31 133.5 145.6 161.5 169.5 221.80 246.9 290.1 315.8 17.5 8.9 Unskilled 6.32 142.2 154.2 171.7 185.6 243.70 269.8 319.7 339.3 18.5 6.1 Construction Labourer 2.3 8.29 120.2 138.6 156.6 189.9 250.30 268.1 285.9 322.9 6.6 12.9 Mason 2.76 119.3 134.4 151.3 179.2 235.30 248.8 264.1 300.9 6.1 13.9 Skilled 1.38 118.2 132.2 149.9 177.0 226.10 240.5 255.7 291.1 6.3 13.8 Unskilled 1.38 120.4 136.6 152.8 181.3 244.50 257.1 272.6 310.8 6.0 14.0 Carpenter 2.76 114.9 130.1 144.6 169.8 227.50 243.5 252.6 284.3 3.7 12.6 Skilled 1.38 114.7 126.7 141.4 167.0 217.70 234.9 244.2 276.7 3.9 13.3 Unskilled 1.38 115.1 133.4 147.7 172.0 237.20 252.2 261.0 291.9 3.5 11.8 Worker 2.77 126.5 151.3 173.8 220.0 288.10 311.8 340.7 383.3 9.2 12.5 Male 1.38 124.2 149.7 171.6 221.7 292.20 315.2 345.6 392.5 9.6 13.6 Female 1.39 128.8 152.9 176.0 219.5 283.90 308.4 335.8 374.1 8.8 11.4 Source : Nepal Rastra Bank

Table 3.5 : Average Retail Price of Some Major Commodities Rs. Per. Kg. Mustard Oil Rs. Per. Ltr. 2013/14 2014/15* 2015/16* Commodities Unit Hill Terai National Hill Terai National Hill Terai National Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Aug/Sep Mar/Apr Rice Coarse Per.Kg 38.3 41.1 49.5 37.3 43.9 39.2 30.5 46.1 24.2 27.9 27.4 37.0 45.6 48.1 39.0 34.9 42.3 41.5 Wheat Flour Per.Kg 43.6 45.2 34.0 37.3 38.8 41.2 31.9 49.6 22.8 32.8 27.4 41.2 47.3 53.5 38.0 41.0 42.6 47.3 Black Gram Per.Kg 115.9 125.0 115.5 103.3 115.7 114.1 89.8 142.3 65.4 105.2 77.6 123.7 167.3 193.3 171.3 227.2 169.3 210.3 Rahar Per.Kg 131.4 133.2 131.8 133.0 131.6 133.1 69.1 137.1 55.6 115.2 62.4 126.2 175.3 187.5 194.7 256.4 185.0 222.0 Mustard Oil Per.Kg 171.8 165.3 174.8 168.8 173.3 167.0 116.3 179.3 110.0 146.2 113.1 162.7 177.7 220.7 170.7 204.4 174.2 212.6 Ghee (Purified) Per. Lt. 635.8 687.5 770.0 775.0 702.9 731.3 293.8 655.0 480.0 492.0 386.9 573.5 728.3 740.0 777.3 799.7 752.8 769.8 Mutton Per. Kg 568.6 628.6 520.0 555.0 544.3 591.8 356.3 609.4 390.0 500.0 373.1 554.7 658.3 673.3 640.0 659.0 649.2 666.2 Potato Per.Kg 34.4 32.0 31.0 23.3 32.7 27.6 28.3 37.3 27.4 15.6 27.8 26.4 39.5 37.7 28.3 22.2 33.9 30.0 Dried Onion Per.Kg 61.5 42.0 68.8 36.3 65.1 39.1 38.3 73.3 35.0 37.4 36.7 55.3 74.0 45.7 83.3 34.7 78.7 40.2 Ginger Per.Kg 159.1 131.6 180.0 127.5 169.6 129.5 117.0 97.1 128.0 80.3 122.5 88.7 134.7 97.7 133.3 53.3 134.0 75.5 * Provisional Source : Department of Agriculture, Marketing Development Division Table 3.6 (a) : Price Situation of Petroleum Products in FY 2015/16 (Wholesale price )

Places Petrol Diesel Kerosene ATF (Duty paid) L.P. Gas F.O. S.N.

Depo of Corporation/ Customs point Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre Rs. Per Kilo Litre 1 Biratnagar 93841.57 71090.71 71088.02 109000.00 57393.69 2 Birgunj 93841.57 71090.71 71088.02 3 Amlekhgunj 93841.57 71090.71 71088.02 59844.77 4 Kathmandu 95288.45 72547.92 72543.13 109000.00 5 Pokhara 94806.15 72062.18 72058.10 109000.00 6 Bhairahawa 93841.57 71090.71 71088.02 109000.00 7 Nepalgunj 93841.57 71090.71 71088.02 109000.00 8 Surkhet 95288.45 72547.92 72543.13 109000.00 9 Dang 94806.15 72062.18 72058.10 10 Dhangadi 93841.57 71090.71 71088.02 109000.00 11 Dipayal 95288.45 72547.92 72543.13 12 Charali 93841.57 71090.71 71088.02 13 Mahendranagar, Janakpur 93841.57 71090.71 71088.02 14 Manthali 15 Barauni 80380.11 16 Haldiya 75435.66 17 Mathura 76261.87 Average Retail Price in Kathandu Valley (Rs. As per litre) Source: Nepal Oil Corporation Table 3.6 (b) : Price Situation of Some Petroleum Products (Kathmandu Valley) @ Price in Rs.

13 15 16 18 Items Unit 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2013/14 19 2015/16**

Petrol Litre 67.009 67.259 100.00 77.5014 80.0 97.0 120.0 123.00 134.5 109.0 99.0

Diesel Litre 46.009 53.15 70.00 55.0015 61.0 68.5 89.0 99.00 105.5 86.5 75.0

Kerosene Litre 39.009 47.65 65.00 55.0015 61.0 68.5 89.0 99.00 105.5 86.5 75.0

Kerosene (Subsidized) Litre ----

Aircraft Turbine Fuel Litre 55.009 68 100.0012 70.0015 75.0 90.0 109.0 120.00 143.0 133.0 109.0

Light Diesel Oil Kilo Litre 45515.75 46889.46 61585.89 53,456.4 59,488.0 70,830.5 89,029.7 95402.58 - -

Furnace Oil Kilo Litre 46080.78 43667.82 72935.72 50,525.3 60,449.5 71,994.8 96,050.7 82847.78 - 64941.0

L. P. Gas M. Ton 50612.27 49389.78 69215.82 63,281.52 71,315.1 76,606.4 99,644.0 86808.85* - 79856.6 80380.1

@ Prices of Kathmandu Valley only 13 Since May 2008 18 Since 20 March 2014 15 Since March 2009 19 Since 14 March 2014 16 Since 14 March 2009 * Barauni Price Source: Nepal Oil Corporation. ** Mid-March (Latest Price) Table 3.7 : Supply Situation of Some Petroleum Products

Unit Fiscal Year First Eight Months Product 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2013/14 2014/15 2015/16

Petrol Kilo Litre 98,435 101,624 128,372 162,276 188082 202467 223087 251451 283567 168187 180027 117789

Diesel Kilo Litre 299,419 303,214 489,219 612,504 652764 653560 721203 811100 901393 503257 549324 346

Kerosene Kilo Litre 192,576 152,166 77,799 55,782 43399 41609 24065 19064 18628 13573 12140 6883

Light Diesel Oil Kilo Litre 180 308 380 317 228- 260- - - -

Furnace Oil Kilo Litre 4,624 2,940 2,188 2,589 1434 440 2456 2172 - 1530.83** 304 -

Air Turbine Fuel Kilo Litre 63,650 68,534 74,306 82,631 99990 109904 115896 123527 139404 86922 92769 37158

L.P. Gas M.Ton 93,562 96,837 115,813 141,171 159286 181446 207038 232660 258299 151210 165975 101392 Total 752,446 725,623 888,077 1,057,270 1,145,183 1,189,426 1,294,005 1,439,974 1,601,291 918,041 1,000,539 609,602 Source: Nepal Oil Corportation ** in Metric Ton Table 4.1 : Monetary Survey Rs. in ten million Mid July First Eight Months Sn Description 2006 2006 2007 2008 2009 2010*! 2011*! 2012*! 2013*! 2014*! 2015*! 2013/14*! 2014/15*! 2015/16*! 1 Net Foreign Assets 13943.91 13943.9 13190.9 17145.6 22456.2 21652.50 22126.60 38377.20 46823.80 59922.00 74728.74 58018.33 63535.48 93079.42 2 Net Domestic Assets 20798.25 20738.5 26360.9 32392.2 40595.9 60446.20 70077.80 74719.70 84713.80 96674.70 113051.41 87734.73 105823.18 116239.25 3 Domestic Credit 30206.99 32268.38 36055.8 43727.0 55567.6 79659.80 91257.60 99454.70 116586.60 128961.00 152734.56 120210.24 139829.70 161206.22 4 Domestic Credit# 31311.65 32268.4 37658.2 12076.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 Net Claims on Government 7056.80 7097.1 7834.4 8708.0 10486.8 13652.30 16343.90 16288.20 16778.80 11729.50 12721.14 8933.10 7120.25 5026.96 a. Claims on Government 7056.80 7097.1 8146.6 9102.6 10486.8 13652.30 16343.90 16525.50 16797.30 16547.20 16102.45 17167.83 15222.93 14635.78 b. Govt. Deposits 0.00 0.0 312.3 394.6 0.0 0.00 0.00 237.30 18.50 4817.70 3381.31 8234.73 8102.68 9608.82 6 Claims on Govt. Enterprises 1712.19 636.9 682.8 731.7 646.8 847.30 1177.40 1206.00 1270.60 2149.10 1336.15 1297.10 1301.23 1295.74 a.Financial 1266.10 180.8 171.3 167.0 137.6 259.70 542.70 199.00 131.70 1107.40 326.07 132.26 267.45 341.40 b. Non Financial 446.09 456.1 511.5 564.6 509.2 587.60 634.80 1007.10 1138.90 1041.70 1010.08 1164.85 1033.78 954.34 7 Claims on Non-Financial Govt.Enter 5.93 177.4 190.9 303.9 598.5 1305.20 1004.00 977.90 1234.50 958.60 1282.79 1891.66 2025.82 1586.62 8 Claims on Private Sector 21432.13 24357.0 27347.7 33983.4 43835.4 63855.00 72732.20 80982.60 97302.60 115082.50 137394.49 108088.38 129382.40 153296.90 Claims on Private sector # 22536.70 24357.0 28950.1 344.2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Net-Non Monetary Liabilites 9408.73 11529.9 9694.9 11334.8 14971.7 19213.60 21179.80 24735.00 31872.80 32286.30 39683.15 32475.51 34006.52 44966.97 Net-Non Monetary Liabilites# 10513.39 11529.9 107612.4 14971.7 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Broad Money, M 2 (11+12) 34742.16 34682.4 39551.8 49537.7 63052.1 82098.70 92204.30 113097.00 131537.60 156596.70 187780.15 145753.06 169358.67 209318.67

11 Narrow Money, M 1 11438.86 11306.1 12688.8 15434.4 19645.9 21209.70 22307.50 26437.30 30159.00 35483.00 42474.46 33446.52 37960.66 50989.22 a. Currency 7792.63 7778.0 8355.3 10017.5 12575.8 13928.10 14193.10 17049.20 19587.40 22753.70 27008.04 22618.98 25481.88 31162.11 b. Demand Deposits 3646.23 3528.0 4333.4 5416.9 7070.1 7281.60 8114.30 9388.10 10571.60 12729.30 15466.42 10827.54 12478.78 19827.11 12 Time and Saving Deposits ±± 23303.30 23376.3 26863.0 34103.3 43406.2 60889.00 69896.90 86659.70 101378.60 121113.70 145305.69 112306.54 131398.01 158329.45 * Provisional ! Inclduing development banks and finance companies since mid-July 2010. # Adjusting loan write-off of Rs 11.05 billion in the series of Mid-July 2006 and loan write-off of Rs 2869.3 million (Rs 821.7 million principal and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest) by RBB as at mid Dec-2006 // Included consolidated Balance sheet of ADB/N ++ Including Margin Deposits Source: Nepal Rastra Bank Table 4.2 (a) : Factors Affecting Money Supply Rs.in ten million Changes Over Previous Year First Eight Months Sn Description 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2013/14 2014/15 2015/16* 1 Net Foreign Assets@ 2559.76 590.42 2967.47 4475.84 -311.00 408.97 13162.66 6893.96 12712.71 14503.60 10281.37 3507.14 15818.30 2 Net Domestic Assets@ 2138.40 4278.99 7018.43 9038.56 12055.20 9624.36 7735.56 11613.44 12346.38 16679.84 3934.06 9254.82 5720.21 3 Domestic Credit 2182.95 3787.43 7671.17 11840.58 13002.60 11362.67 8446.66 17117.48 12374.39 21304.07 3623.61 8399.21 8471.66 4 Domestic Credit# 3287.615389.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 Net Claims on Government 667.35 737.30 873.60 1778.81 2987.30 2691.64 -55.73 490.60 -5049.40 -1477.81 -7845.73 -7078.70 -7694.18 a. Claims on Government 667.35 1049.56 955.99 1384.17 2987.30 2691.64 181.55 271.79 -250.11 -446.58 370.55 -1326.10 -1466.67 b. Govt. Deposits 0.00 312.25 82.39 -394.64 ०.० 0.00 237.28 -218.83 4799.24 1031.23 8216.28 5752.60 6227.51 6 Claims on Govt. Enterprises -217.6 45.9 48.9 -84.8 642.20 12.97 277.27 133.10 -80.20 145.65 26.45 110.74 -40.41 a.Financial -7.0 -9.5 -4.3 -29.4 331.00 -37.06 -95.03 4.14 17.02 177.31 0.52 118.69 15.33 b. Non Financial -210.5 55.4 53.2 -55.4 311.10 50.03 372.30 128.97 -97.18 -31.66 25.93 -7.95 -55.73 7 Claims on Non-Financial Govt.Enter 2.7 13.6 113.0 294.6 -19.90 -219.15 -25.22 173.73 -275.95 324.20 657.11 1067.23 303.83 8 Claims on Private Sector 1730.4 2990.7 6635.7 9852.0 9685.60 8877.21 8250.34 16320.02 17779.85 22312.03 10785.77 14299.94 15902.42 Claims on Private Sector # 2835.1 4593.1 0.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Net-Non Monetary Liabilites@ 44.5 -491.6 652.7 2802.0 947.50 1738.31 711.10 5504.04 28.01 4624.23 -310.45 -855.61 2751.45 Net-Non Monetary Liabilites# 1149.2 1110.8 0.0 ०.० 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 Broad Money, M 2 (11+12) 4698.2 4869.4 9985.9 13514.4 11744.10 10033.34 20898.22 18507.40 25059.09 31183.44 14215.43 12761.95 21538.52

11 Narrow Money, M 1 1418.3 1382.7 2745.6 4211.5 2624.30 1025.42 4135.44 3788.40 5324.00 6991.46 3287.50 2477.66 8514.76 a. Currency 914.2 577.3 1662.2 2558.3 10181.10 265.02 2856.02 2538.25 3166.32 4254.30 3031.56 2728.14 4154.07 b. Demand Deposits 504.1 805.4 1083.4 1653.2 1061.30 760.41 1279.42 1250.19 2157.67 2737.16 255.94 -250.49 4360.69 12 Time and Saving Deposits ±± 3279.9 3486.7 7240.3 9302.9 9119.80 9007.90 16762.79 14718.95 19735.10 24191.98 10927.93 10284.29 13023.76 13 Exchange Valuation gian(+)/Loss(-) 609.9 -1343.4 987.1 834.8 -789.20 65.08 3088.00 1552.63 385.46 303.17 913.16 106.38 2532.37 * Provisional @ Adjustment of exchange valuation gain/loss # Adjusting credit write-off of Rs 11.05 billion in the series of Mid-July 2006 and credit write-off of Rs 2869.3 million (Rs 821.7 million principal and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest) by RBB as at mid Dec-2006 ++ Including Margin Deposits Source: Nepal Rastra Bank Table 4.2 (b) : Factors Affecting Money Supply (Annual change in percent)

Fiscal Year First Eight Months Sn Heads 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2013/14* 2014/15* 2015/16* 1 Net Foreign Assets@ 5.3 23.8 4.2 22.5 26.1 -1.6 1.90 59.50 18.0 27.2 24.2 22.0 5.9 21.2 2 Net Domestic Assets@ 10.3 11.1 20.6 26.6 27.9 22.8 16.00 11.00 15.6 14.6 17.3 4.6 9.6 5.1 3 Domestic Credit 13.8 7.8 11.7 21.3 27.1 17.2 14.60 9.30 17.2 10.6 16.2 3.1 6.4 5.5 4 Domestic Credit# 16.7 0.0 0.0 0.0 0.00 0.00 0.0 0.0 0.0 0.0 0.0 0.0 5 Net Claims on Government 11.3 10.4 10.4 11.2 20.4 26.9 19.70 -0.30 3.0 -30.1 -10.4 -46.8 -49.9 -60.5 a. Claims on Government 9.9 10.4 14.8 11.7 15.2 26.9 19.70 1.10 1.6 -1.5 -2.7 2.2 -8.0 -9.1 b. Govt. Deposits 0.0 26.4 0.0 0.0 - - -92.2 26010.0 43.9 44529.0 244.8 184.2 6 Claims on Govt. Enterprises 18.7 -11.3 12.1 7.2 -11.6 23.0 1.50 32.20 11.7 69.1 12.2 2.1 9.3 -3.0 a.Financial -4.6 1.1 -2.5 -17.6 82.8 -14.30 -42.70 3.2 12.9 119.2 0.4 79.8 4.7 b. Non Financial 125.3 -32.1 -5.3 10.4 -9.8 6.9 8.50 58.40 12.8 -8.5 -3.0 2.3 -0.8 -5.5 7 Claims on Non-Financial Govt.Enter 85.3 7.6 59.2 96.9 54.5 -23.10 -2.30 16.4 22.4 33.8 64.1 111.3 23.7 8 Claims on Private Sector 14.2 8.8 12.3 24.3 29.0 14.2 13.90 11.30 20.2 18.3 19.4 11.1 12.4 11.6 Claims on Private Sector# 14.4 18.9 0.0 0.0 0.0 0.00 0.00 0.0 0.0 0.0 0.0 0.0 0.0 9 Net-Non Monetary Liabilites@ 21.5 0.5 -4.3 6.7 24.7 1.7 9.90 3.40 22.2 7.8 13.3 -1.0 -2.5 6.9 Net-Non Monetary-Liabilites# 13.1 9.6 0.0 0.0 0.0 0.00 0.00 0.0 0.0 0.0 0.0 0.0 0.0

10 Broad Money, M 2 (11+12) 8.3 15.6 14.0 25.2 27.3 14.1 12.30 22.70 16.4 19.1 19.9 10.8 8.1 11.5

11 Narrow Money, M 1 6.6 14.2 12.2 21.6 27.3 11.0 5.20 18.60 14.4 17.7 19.7 10.9 7.0 20.0 a. Currency 8.8 13.3 7.4 19.9 25.5 13.0 1.90 20.10 14.9 16.2 18.7 15.5 12.0 15.4 b. Demand Deposits 2.2 16.0 22.8 25.0 30.5 7.6 11.40 15.90 13.4 20.4 21.5 2.4 -2.0 28.2 12 Time and Saving Deposits ±± 9.2 16.4 14.9 27.0 27.3 15.5 14.80 24.00 17.0 19.5 20.0 10.8 8.5 9.0 * Provisional @ Adjustment of exchange valuation gain/loss # Adjusting credit write-off of Rs 11.05 billion in the series of Mid-July 2006 and credit write-off of Rs 2869.3 million (Rs 821.7 million principal and Rs 2047.6 million interest) as at mid Oct-2006 by Nepal Bank Ltd. and Rs 13.2 billion (Rs 4055.2 million principal and Rs 9099.3 million interest) by RBB as at mid Dec-2006 ++ Including Margin Deposits Source: Nepal Rastra Bank Table 4.3: Sources and Uses of Banks and Financial Institutions & Rs. in ten Million 2012 2013 2014 2015* First Eight Month S.No. Details Mid July Mid July Mid July Mid July 2013/14 2014/15 2015/16* 1 Total Deposits 101182.29 118809.02 140676.95 168882.99 130355.59 151339.07 183062.43 2 Current 9490.03 11369.30 12968.92 15929.00 11300.13 12898.16 16576.58 3 Savings and call 39716.86 46948.52 58970.59 71247.12 54180.63 64530.58 80809.73 4 Fixed 36822.35 42099.46 45294.19 50920.11 43937.43 48242.98 52109.82 5 Call 14472.99 17476.06 22338.14 29571.74 19742.13 24447.42 32061.79 6 Margin 680.07 915.69 1105.11 1215.02 1195.26 1219.93 1504.51 7 Borrwoing from Nepal Rastra Bank 47.33 275.76 193.30 326.15 130.22 227.54 236.75 8 Foregin Liabilities 250.79 295.43 0.41 0.00 311.53 0.00 0.00 9 Other Liabilites 15403.89 18456.84 19145.31 20391.65 18878.65 19645.66 16858.45 10 Assets=Liabilites 116884.31 137837.05 160015.97 189600.78 149675.98 171212.26 200157.63 11 Liquid Funds 20118.88 23051.62 28682.63 35337.29 23745.00 25619.01 31164.96 12 Cash in Hand 3072.28 3487.21 4112.99 4729.20 3171.77 3855.78 4875.47 13 Balance with Rastra Bank 11002.43 11772.98 15621.40 19223.92 10591.33 11023.27 13203.16 14 Foregin Currency in Hand 68.81 85.21 78.87 133.69 96.43 155.84 126.83 15 Balance Held Abroad 5975.37 7706.22 8869.38 11250.48 9885.48 10584.11 12959.49 16 Loans and Advances 96765.42 114785.44 131333.34 154263.49 125930.98 145593.25 168992.67 17 Claims on Governemnt 13703.16 15225.60 14215.77 14249.79 14800.77 13023.14 13002.31 18 Claims on Governemtn Corporations 1123.26 1244.16 1138.30 1092.27 1270.62 1118.94 1051.86 Fianncial 116.20 108.35 99.66 85.29 108.87 88.26 100.62 Nonfiancial 1007.06 1135.81 1038.63 1006.98 1161.74 1030.68 951.24 19 Claims on Non-government Fiancial Enterprises 1059.22 1232.95 956.99 1281.19 1890.06 2024.22 1585.02 20 Claims on Private Sector 80530.75 96843.91 114669.92 136924.91 107651.91 128899.02 152839.28 21 Foreign Bills Purcahsed and Discounted 349.04 238.82 352.36 715.34 317.62 527.93 514.20 22 Credit Deposit Ratio (in percent)# 82.10 83.80 83.30 82.90 85.25 87.60 85.20 & Including A Class Bank, B & C class Financial Institution * Provisional Source Nepal Rastra Bank Table 4.4 : Sources and Uses of Fund of Commercial Banks Rs. in ten million Mid July First Eight Months Purpose 2004 2005 2006 2007$ 2008 2009 2010 2011 2012 2013 2014 2015 2012/13 2013/14 2015/16* 1 Total Deposits 23257.63 25046.5 28997.6 33445.3 42152.4 55067.7 62060.9 68023.0 86169.0 101557.8 119647.9 145274.9 111221.4 130100.4 157032.3 2 Demand Deposits 3303.87 3412.0 3571.6 4269.2 5412.4 6949.0 7915.0 7820.4 9113.5 10731.0 12254.5 15044.3 10679.3 12261.1 15551.0 3 Savings Deposits 11410.63 13001.4 15171.1 17463.4 21140.6 25987.2 33575.5 23069.3 30471.2 35880.5 45076.9 55935.1 41498.1 50621.2 64102.6 4 Fixed Deposits 8326.82 8413.7 10006.8 11403.2 15236.4 21685.5 20066.2 36619.6 45926.3 54057.5 61243.4 73115.4 57878.0 66029.0 75896.4 5Margin Deposits 216.31 219.4 248.1 309.5 362.9 446.0 504.2 513.7 658.0 888.8 1073.1 1180.1 1166.0 1189.1 1482.3 6 Borrowings from Nepal Rastra Bank 47.79 172.4 32.9 187.1 66.1 0.0 396.5 524.7 47.3 218.8 193.3 326.2 130.2 227.5 233.0 7Foreign Liabilities 52.14 2.8 0.8 162.8 191.2 167.1 193.3 186.8 217.6 295.4 0.4 0.0 311.5 0.0 0.0 8 Net Other Sources 4504.44 5887.4 7908.9 6733.3 7515.7 9094.6 9991.9 11728.5 10959.1 13210.6 13553.5 13885.5 12957.6 13095.9 10203.1 9 Sources = Uses 27862.00 31109.0 36940.1 40528.5 49925.3 64329.3 72642.6 80463.0 97393.0 115282.6 133395.1 159486.5 124620.7 143423.8 167468.4 10Liquid Funds 5038.46 5022.28 6181.73 6493.03 7901.05 12265.89 13086.3 13151.9 18618.3 21472.3 26702.5 32785.9 21991.6 23548.8 28348.5 11 Cash in Hand 428.38 477.3 605.4 736.0 1265.2 1501.6 1686.4 1994.6 2576.2 2929.3 3394.2 3938.3 2572.7 3174.1 4058.1 12 Balance with Nepal Rastra Bank 2486.71 2103.0 2396.2 2318.4 2489.9 4685.9 5139.3 5427.8 10013.8 10735.6 14348.1 17494.0 9402.1 9675.4 11237.0 13Foreign Currency in Hand 43.51 37.5 39.9 45.4 35.9 82.3 43.7 50.0 62.9 80.1 70.0 125.2 90.9 141.7 118.1 14Balance held Abroad 2079.86 2404.5 3140.2 3393.3 4110.1 5996.1 6216.9 5679.5 5965.4 7727.4 8890.1 11228.4 9925.8 10557.6 12935.3 15 Loans & Advances 22823.49 26086.73 30758.39 34035.49 42024.26 52063.46 59556.3 67311.1 78774.8 93810.3 106692.7 126700.6 102629.1 119875.1 139119.9 16Claims on Government 4379.63 4855.1 5886.2 6585.0 7210.0 7194.9 8299.6 10594.1 12898.7 14723.0 13636.7 13636.3 14183.9 12473.0 12281.2 17 Claims on Govt. Enterprises 1469.07 1799.4 538.1 616.1 687.4 625.9 726.6 833.5 1092.5 1215.8 1104.4 1062.7 1226.7 1068.8 1010.9 18 Claims on Non-Governmental Financial Inst. 0.0 171.4 187.0 300.7 595.3 1598.3 1284.9 1098.4 1000.4 914.0 1104.8 1835.0 2268.7 1467.8 19 Claims on Private Sector 16869.28 19327.0 24036.2 26536.1 33678.1 43491.3 48857.8 54425.2 63336.1 76632.7 90685.2 110181.5 85065.9 103536.7 123845.8 20Claims on Private Sector% 19327.0 24036.2 28138.4 35280.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 21 Foreign Bills Purchase & Discounted 105.51 105.3 126.4 111.3 148.0 156.1 74.1 173.5 349.0 238.4 352.4 715.3 317.6 527.9 514.2 22 Credit-to-Deposits Ratio (%)# 79.30 84.8 85.8 82.1 82.6 81.5 82.6 83.4 76.4 77.9 77.8 77.8 79.5 82.5 80.8 * Provisional, Source: Nepal Rastra Bank. Table 4.5 : Sectoral Outstanding Loan of Commercial Banks+ Rs. in ten million Fiscal Year First Eight Months Sector 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2013/14 2014/15 2015/16 Agriculture ** 457.20 1388.20 1388.00 1337.63 1429.09 1419.20 2340.70 3153.10 4027.00 5070.62 3718.76 4736.74 5439.95 Mines 47.77 131.50 195.50 170.94 201.98 220.50 235.90 348.70 325.50 306.41 382.38 342.14 306.23 Production 5647.50 6237.00 7488.98 8787.80 9471.37 11518.60 14397.20 17666.20 20742.80 23972.28 20126.88 23891.47 26257.45 Construction 1342.80 1977.00 3236.88 4486.70 4956.80 5159.10 6131.20 7171.30 8874.10 11517.57 8251.38 10826.68 12352.12 Metal, Productions, Machinery & Electrical Tools & Fittings 159.09 291.90 506.94 653.46 587.78 641.90 840.20 1004.40 1092.90 1240.22 1139.96 1243.61 1453.65 Transportation, Equipment Production and Fittings 265.87 324.30 434.02 697.77 1054.64 1201.40 1278.40 1266.60 1548.90 1437.72 1438.32 1363.96 1716.73 Communication and Public Services 1169.45 1313.00 1612.90 1843.28 2227.60 1981.20 2517.50 3015.20 3141.10 4128.95 3028.26 3769.44 5374.69 Wholesalers & Retailers 3510.33 4563.60 5573.20 6880.83 8858.41 10921.20 12924.90 16158.80 20541.50 25625.25 18988.13 24515.35 28696.20 Finance, Insurance and Fixed Assets 1002.40 1391.80 2491.35 3888.27 5409.33 5793.40 6218.50 6608.00 7281.40 8922.03 6807.80 7965.55 10145.88 Service Industries 1416.30 1836.70 2116.33 2335.78 2960.54 3650.50 4581.10 5685.50 6863.00 8843.80 6331.01 8278.90 9478.45 Consumable 584.80 812.00 943.71 1471.62 2269.49 2236.00 2704.70 3348.40 3936.60 4303.57 3414.09 4128.67 4580.50 Local Government 0.00 0.00 0.00 197.24 308.77 110.70 127.20 117.60 109.60 162.18 109.57 146.82 153.55 Others 2054.30 2917.30 4665.60 7426.48 7197.39 7769.60 7956.30 10165.20 11616.50 14783.68 10263.73 14100.97 16763.34 Total 17657.81 23184.30 30653.41 40177.80 46933.18 52623.10 62253.70 75709.10 90100.90 110314.29 84000.28 105310.30 122718.73 + Sectoral Classification as per new formats * Provisional ** Including ADB/N since Mid July 2006 Source: Nepal Rastra Bank. Table 4.6 : Sources and Uses of Fund of Development Banks ("B"- Class FIs) Rs. In ten million Mid-July Mid-Jan Percent Change Description 2002 2003 2004 2005 2006@ 2007 2008 2009 2010 2011* 2009/10 2010/11** Liabilities Capital Funds 214.30 346.40 284.70 367.40 279.50 406.00 655.11 1084.40 1521.10 1981.00 40.3 30.2 Deposits 2467.70 2880.20 2942.70 3395.80 879.10 1537.00 2574.99 4893.60 7744.90 8738.00 58.3 12.8 Borrowing 593.20 588.90 596.00 511.80 163.40 223.19 253.26 395.70 424.10 604.00 7.2 42.4 Other Liabilities 509.00 885.50 966.80 1506.60 70.10 166.61 565.34 499.40 956.04 1126.00 91.4 17.8 Profit and Loss A/c 11.50 -66.98 -61.83 40.30 226.18 121.00 461.2 -46.5 Assets = Liabilities 3784.20 4701.00 4790.20 5781.60 1403.60 2265.82 3986.87 6913.40 10872.32 12570.00 57.3 15.6 Assets Liquid Funds 362.90 414.90 405.40 456.30 238.50 373.13 996.78 1594.30 2627.80 2755.00 163.6 4.8 Investment 279.20 237.90 231.20 199.10 68.50 153.66 332.47 504.40 695.90 714.00 38.0 2.6 Loans and Advances 2755.50 3102.70 3190.50 2989.40 865.90 1537.38 2367.05 4307.80 6568.00 7816.00 52.5 19.0 Other Assets 386.60 945.50 963.10 2136.80 101.50 126.07 217.18 410.20 960.42 1257.00 134.1 30.9 Profit and Loss A/c 129.20 75.58 73.39 96.70 20.20 28.00 -79.1 38.6 * Provisional ** First six months @ Excluding ADB/N form 2006 Source: Nepal Rastra Bank Table 4.6 (a): Sources and Uses of Fund of Development Banks ("B"- Class FIs) Rs. Ten Million 2012 2013 2014 2015* First Eight Month S. No. Details Mid July Mid July Mid July Mid July 2013/14 2014/15 2015/16* 1 Total Deposits 12212.80 15522.49 20032.89 23072.53 17655.68 19839.26 24246.53 2 Current 325.09 308.37 422.83 553.94 333.16 398.31 755.80 3 Savings 6076.73 8294.56 10835.75 12064.08 9601.67 10634.08 12950.08 4 Fixed 3717.84 4502.83 5539.51 6221.27 5168.51 5591.08 6409.05 5 Call 2075.34 2391.38 3204.05 4199.70 2524.53 3186.29 4110.91 6 Margin 17.79 25.34 30.75 33.54 27.80 29.50 20.69 7 Borrwoing from Nepal Rastra Bank 0.00 57.00 0.00 0.00 0.00 0.00 0.00 8 Foregin Liabilities 33.21 0.00 0.00 0.00 0.00 0.00 0.00 9 Other Liabilites 3008.62 3192.94 3765.24 4154.98 3827.86 4342.53 4205.90 10 Assets=Liabilites 15254.62 18772.43 23798.14 27227.51 21483.54 24181.79 28452.43 11 Liquid Funds and Bank Balance 985.03 1183.04 1464.17 1868.33 1279.99 1463.41 2039.31 12 Cash in Hand 360.85 478.71 612.57 689.41 502.49 578.45 705.90 13 Balance with Rastra Bank 599.10 677.32 822.14 1148.38 750.71 844.31 1288.05 14 Foregin Currency in Hand 3.71 5.09 8.84 8.45 5.48 14.14 8.71 15 Balance Held Abroad 21.38 21.93 20.61 22.09 21.31 26.52 36.65 16 Loans and Advances 14269.59 17589.38 22333.97 25359.18 20203.54 22718.38 26413.12 17 Claims on Governemnt 450.72 290.96 274.43 308.78 311.27 263.94 348.48 18 Claims on Governemtn Corporations 28.17 24.23 27.37 19.59 25.30 32.85 20.05 Fianncial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Nonfiancial 28.17 24.23 27.37 19.59 25.30 32.85 20.05 19 Claims on Non-government Fiancial 3457.63 4116.10 5051.45 5404.17 4611.15 4533.86 4914.01 20 Claims on Private Sector 10333.07 13157.64 16980.71 19626.63 15255.82 17887.73 21130.58 21 Foreign Bills Purcahsed and 0.00 0.45 0.00 0.00 0.00 0.00 0.00 22 Credit Deposit Ratio (in percent)# 113.20 111.40 110.10 108.60 112.67 112.67 107.50 * Provisional # Claims on Government not included Source Nepal Rastra Bank Table 4.7 (b): Sources and Uses of Finance Companies Rs. Ten Million 2012 2013 2014 2015* S. No. Details First Eight Month Mid July Mid July Mid July Mid July 2013/14 2014/15 2015/16* 1 Total Deposits 7539.89 6816.51 7208.08 7163.62 7326.10 7339.32 7784.63 2 Current 448.52 541.02 582.49 542.64 529.96 539.38 526.04 3 Savings 3415.89 2893.03 3118.47 3375.50 3201.77 3340.09 3898.19 4 Fixed 3606.61 3289.62 3395.27 3155.00 3492.10 3370.15 3251.80 5 Call 64.58 91.32 110.63 89.08 100.81 88.34 107.05 6 Margin 4.29 1.52 1.23 1.39 1.46 1.37 1.55 7 Borrwoing from Nepal Rastra Bank 0.00 0.00 0.00 0.00 0.00 0.00 3.79 8 Foregin Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Other Liabilites 2491.54 2591.80 2688.70 2891.02 2780.72 3170.90 3294.12 10 Assets=Liabilites 10031.43 9408.31 9896.78 10054.64 10106.82 10510.22 11082.54 11 Liquid Funds and Bank Balance 528.81 457.43 557.37 683.06 535.07 606.83 789.97 12 Cash in Hand 135.21 97.28 106.19 101.45 96.54 103.26 111.52 13 Balance with Rastra Bank 389.54 360.10 451.11 581.55 438.48 503.52 678.09 14 Foregin Currency in Hand 2.21 0.03 0.04 0.04 0.03 0.02 0.01 15 Balance Held Abroad 1.84 0.03 0.03 0.03 0.03 0.03 0.35 16 Loans and Advances 9502.62 8950.88 9339.27 9371.57 9571.75 9903.34 10292.58 17 Claims on Governemnt 353.70 211.63 304.63 304.70 305.64 286.25 372.65 18 Claims on Governemtn Corporations 2.60 4.18 6.53 9.94 18.61 17.28 20.89 Fianncial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Nonfiancial 2.60 4.18 6.53 9.94 18.61 17.28 20.89 19 Claims on Non-government Fiancial Enterprises 2284.71 1681.52 2024.09 1940.13 1917.29 2125.23 2036.12 20 Claims on Private Sector 6861.61 7053.55 7004.02 7116.81 7330.20 7474.58 7862.92 21 Foreign Bills Purcahsed and Discounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 Credit Deposit Ratio (in percent)# 121.30 128.20 125.30 126.60 126.48 131.04 127.40 * Provisional # Claims on Government not included Source Nepal Rastra Bank Table 4.8 : Sources and Uses of Fund of Micro-Finance Development Banks (including Grameen Bikas Banks) Rs. in Ten Million Mid July Mid March Description 2003 2004 2005 2006@ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 2016* Liabilities Capital Funds+ 51.50 54.10 73.97 83.04 111.85 162.65 193.98 217.40 243.7 281.10 380.10 580.97 620.35 582.00 845.47 Deposits 62.50 70.00 74.88 93.25 110.31 154.00 200.06 257.40 353.4 512.80 722.50 1119.99 1605.80 1369.80 2066.22 Borrowing 239.10 283.30 340.25 532.49 694.42 840.06 897.28 1075.40 1303.8 1657.50 2021.40 2858.13 3849.70 3305.80 4503.40 Other Liabilities 72.30 89.00 131.85 98.99 104.23 101.56 233.21 314.20 376.8 472.40 366.10 385.36 526.81 743.30 737.73 Profit and Loss A/c 9.05 11.97 7.33 19.31 26.70 50.1 57.80 84.90 114.00 260.41 163.10 222.71 Assets = Liabilities 425.40 496.40 630.00 819.74 1028.14 1258.27 1543.84 1891.10 2327.8 2981.50 3575.10 5058.45 6863.07 6164.00 8375.52 Assets Liquid Funds 44.10 62.10 64.83 132.18 174.65 116.31 285.50 216.90 333.9 564.90 633.00 979.38 682.47 565.00 897.06 Investment 104.80 123.10 151.61 167.26 235.06 350.40 206.81 251.50 165.9 219.10 308.00 47.03 247.81 240.50 295.13 Loans and Advances 242.70 282.20 353.76 430.30 557.87 707.82 822.27 1111.60 1465.0 1770.00 2339.20 3642.60 5532.73 4800.50 6730.20 Other Assets 33.80 29.00 38.91 67.90 42.81 68.07 201.33 287.10 355.2 415.90 281.70 374.92 395.45 556.20 452.62 Profit and Loss A/c 0.00 0.00 20.89 22.10 17.75 15.67 27.93 24.00 7.8 11.80 13.20 14.52 4.62 1.80 0.51 * Provisional Source: Nepal Rastra Bank Table 4.9 : Sources and Uses of Cooperatives Approval from NRB Rs. In Ten Million Fiscal Year Description Mid-March 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Liabilities Capital Funds+ 20.50 27.80 32.48 35.50 40.08 44.70 58.00 64.7 80.90 117.70 140.15 165.9633 156.88 182.30 Deposits 166.70 172.40 201.16 254.50 301.82 351.30 372.70 546.7 872.80 1140.30 1587.35 1859.591 1487.80 2097.89 Borrowing 4.10 4.60 7.07 14.00 20.67 25.80 22.70 31.2 48.40 93.80 135.56 145.1585 148.54 145.54 Other Liabilities 42.80 36.70 40.73 48.10 68.02 66.70 87.90 144.5 125.00 145.80 203.09 233.9618 230.66 309.32 Profit and Loss A/c 0.00 -0.50 6.28 7.00 5.46 8.04 11.60 20.5 38.10 44.00 36.85 49.7332 26.43 20.03 Assets = Liabilities 234.10 241.00 287.72 359.10 436.05 496.54 552.90 807.6 1165.20 1541.50 2103.00 2454.408 2067.02 2782.03 Assets Liquid Funds 41.30 42.40 49.32 49.00 76.03 77.60 83.50 154.2 333.30 374.30 658.70 649.8988 382.24 686.95 Investment 18.20 14.20 16.15 17.80 22.30 27.60 26.00 24.7 77.50 114.70 125.92 218.1637 181.82 246.91 Loans and Advances 129.80 143.10 166.54 223.00 266.22 312.70 362.40 509.2 655.80 945.80 1182.38 1434.405 1342.71 1627.97 Other Assets 44.80 41.30 55.71 69.30 71.50 78.64 81.00 119.4 91.90 106.70 125.83 151.94 143.53 193.27 * Provisional + Profit and Loss adjusted Source: Nepal Rastra Bank Table 4.10 : Sources and Uses of Fund of Employees Provident Fund Rs. Ten Million Fiscal Year Description Mid March 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15* 2015/16* Sources Provident Funds 4251.1 4814.49 5450.07 6279.38 7264.97 8670.47 10232.8 12144.00 14071.00 16354.86 18756.53 17938.70 20552.63 Reserve Funds 262 294.12 319.38 371.54 452.45 317.52 315.1 297.10 347.80 420.29 462.80 485.80 392.13 Other Liabilities and Provision 124.44 153.14 182.48 194.52 51.04 110.5 134.20 151.50 193.89 224.99 205.80 238.47 Sources = Uses 4513.10 5233.05 5922.59 6833.40 7911.94 9039.03 10658.4 12575.30 14570.30 16969.04 19444.32 18630.30 21183.23 Bank and Cash Balance 91.30 163.05 137.96 186.34 312.45 207.30 237.5 473.90 389.00 738.10 801.48 494.90 638.02 Loan and Investment 4440.30 4823.59 5480.03 6224.17 7238.20 8635.00 10194.4 11839.90 13900.80 15944.70 18325.25 17874.50 20233.76 Loan to Savers 2142.10 2517.80 2978.67 3590.40 4378.70 5504.0 6663.20 7976.60 9157.60 10411.60 10134.60 11581.84 Fixed Deposit in Banks 1851.80 2089.50 2414.40 2545.00 3091.00 2598.0 2388.00 2780.00 2666.00 3687.00 3249.00 4283.55 Government Securities 422.86 550.95 496.54 662.13 702.76 1347.0 1495.00 1370.40 1413.00 1522.64 1370.00 1856.10 Project Loan 367.75 278.41 334.56 0.10 362.54 633.5 1073.80 1556.40 2486.00 2481.96 2898.80 2290.22 Shares 39.80 43.37 86.95 90.57 100.03 111.9 219.80 217.40 222.10 222.05 222.05 222.05 Fixed Assets 82.40 49.80 52.1 47.80 48.10 32.90 32.03 30.70 39.38 Other Assets -18.50 246.41 304.60 335.94 278.90 146.90 174.4 213.70 232.50 253.40 285.56 230.20 272.07 * Provisional Source: Employees Provident Fund Table 4.11 : Sources and Uses of Fund of Citizen Investment Trust Rs. in Ten Million Description Fiscal Year Mid March

Liabilities 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Capital Funds 8.60 10.89 13.56 15.99 25.53 66.24 93.1 106.20 135.20 190.74 229.56 229.33 171.70 Deposits 526.90 671.60 857.36 1236.62 1646.54 2014.16 2508.3 3285.60 4032.50 5409.86 6723.00 6043.13 7457.50 Borrowing 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.00 0.00 0.00 0.00 0.00 0.00 Other Liabilities 47.70 43.27 83.20 114.94 341.24 184.38 242.0 178.50 107.70 992.48 97.23 95.78 92.64 Assets = Liabilities 583.20 725.76 954.12 1367.55 2013.31 2264.78 2843.4 3570.30 4275.40 6593.08 7049.79 6368.24 7721.84 Assets

Liquid Funds 69.20 86.60 104.34 45.70 50.00 80.00 70.0 47.50 118.50 1085.10 1059.50 309.72 1682.90 Investment 361.60 513.59 660.06 958.60 1615.00 1690.48 2053.5 2159.70 2729.30 2649.13 4172.34 4350.03 4044.39 Loans and Advances 101.40 74.33 101.55 259.25 181.20 354.10 314.1 1103.40 1174.10 1825.92 1737.37 1628.37 1226.70 Other Assets 51.00 51.24 88.17 104.00 167.11 140.20 405.8 259.70 253.40 1032.99 80.57 80.12 767.85 *Provisional Source: Citizen Investment Trust Table 5.1 Status of Primary Market Trend Rs. in ten million Fiscal Year First Eight Month Description 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16

1 Capital Mobilization 244.33 229.55 996.82 1682.85 1082.24 685.4 295.01 1068.52 726.68 1443.53 889.31 1227.16

a)Ordinary Shares 57.98 38.02 92.48 181.57 264.93 172.88 129.85 318.74 157.35 697.74 400.62 811.45

b)Rights Shares 101.35 126.53 609.34 1426.28 817.3 507.52 45.16 393.52 424.33 230.79 288.69 335.71

c)Preferential Shares - 40 ------

d)Debentures 85 25 295 75 - 5 120 355.00145.00 290 99 -

e)Citizens' Unitary Plan 148.63 170.23 98 95.34 100.88 31.54 32.7 – -

f)Mutuall Fund ------– 80.00 225 100 80 No of Association of Capital 2 29 34 64 64 61 47 25 34.00 45.00 48 30 30 Mobilizers' Source: Securities Board of Nepal Table 5.2 Status of Secondary Market Trend Rs. in ten million Particular Fiscal Year First Eight Months 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16

Share Transaction Value 345.1 836.0 2282.1 2168.1 1185.1 666.5 1027.3 2204.9 7729.9 6533.2 5043.1 7011.9

Number of Listed Securities (000') 227040.0 243504.0 321131.0 637868.0 821746.0 1061091.0 - - 159717.5 121178.0 137336.5

No. of Shares Transacted (000') 12222.0 18147.0 28599.8 30547.2 26231.4 26240.4 41879.0 81571.7 214143.6 477278.0 375192.0 429180.0

Number of Transaction 97374.0 120510.0 150800.0 209091.0 213733.0 302364.0 293489.0 292366.0 566389.0 98940.4 100403.0 142091.1

Market Capitalization Value 9681.4 18630.1 36624.8 51293.9 37687.1 32348.4 36826.2 51449.2 105716.0 6.6 5.0 4.9

Market Capitalization as percent of GDP 14.8 25.6 44.9 51.9 32.2 19.5 23.4 30.2 40.0 46.6 63.2 **

Paid-up Capital Value of Listed Shares 2000.9 2179.9 2946.5 6114.0 7935.6 10023.8 11061.0 12648.9 14754.0 21058.9 15657.1 25543.7

Number of Listed Companies 135.0 135.0 142.0 159.0 176.0 209.0 216.0 230.0 233.0 232.0 232.0 230.0 No. of Companies under Transaction 110.0 116.0 136.0 170.0 198.0 222.0 230.0 230.0 269.0 271.0 254.0 255.0 (Script Tranded) NEPSE Index (In point) * 386.9 684.0 963.4 749.1 477.7 362.9 389.7 518.3 1036.1 961.2 978.4 1318.9 * Base Year 1993, Point 100 Source: Securities Board of Nepal, Nepal Stock Exchange and Central Bureau of Statistics Table 6.1 : Direction of Foreign Trade Rs. in ten million Fiscal Year First Eight Months Description 2004/05# 2005/06# 2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13 2013/14 2014/15 2014/15 2015/16* Export F.O.B. 5870.57 6023.41 5938.31 5926.65 6769.75 6082.40 6433.85 7426.10 7691.72 9199.13 8531.91 5686.75 4273.06 India 3891.69 4071.47 4172.88 3855.57 4100.59 3999.37 4336.04 4961.60 5099.98 5961.37 5586.46 3650.87 2391.04 China ------208.58 284.07 222.99 187.69 101.46 Other countries 1978.88 1951.94 1765.43 2071.08 2669.16 2083.03 2097.81 2464.50 2383.16 2953.69 2722.46 1848.19 1780.57 Import C.I.F. 14947.36 17378.03 19469.46 22193.77 28446.96 37433.52 39617.55 46166.80 55674.03 71436.59 77468.42 50591.85 43580.11 India 8867.55 10714.31 11587.23 14237.65 16243.76 21711.43 26192.52 29939.00 36703.12 47794.70 49165.59 31992.17 25821.76 China ------6245.13 7331.86 10016.64 7170.11 7029.98 Other countries 6079.81 6663.72 7882.23 7956.12 12203.20 15722.09 13425.03 16227.80 12725.78 16310.02 18286.19 11429.57 10728.37 Trade Balance -9076.79 -11354.62 -13531.15 -16267.12 -21677.21 -31351.12 -33183.70 -38740.70 -47982.31 -62237.46 -68936.51 -44905.10 -39307.05 India -4975.86 -6642.84 -7414.35 -10382.08 -12143.17 -17712.06 -21856.48 -24977.30 -31603.14 -41833.33 -43579.13 -28341.30 -23430.72 China ------6036.55 -7047.79 -9793.65 -6982.42 -6928.52 Other countries -4100.93 -4711.78 -6116.80 -5885.04 -9534.04 -13639.06 -11327.22 -13763.30 -10342.62 -13356.33 -15563.73 -9581.38 -8947.80 Total volume of Trade 20817.93 23401.44 25407.77 28120.42 35216.71 43515.92 46051.40 53592.90 63365.75 80635.72 86000.33 56278.60 47853.17 India 12759.24 14785.78 15760.11 18093.22 20344.35 25710.80 30528.56 34900.60 41803.10 53756.07 54752.05 35643.04 28212.79 China ------6453.71 7615.93 10239.63 7357.79 7131.44 Other countries 8058.69 8615.66 9647.66 10027.20 14872.36 17805.12 15522.84 18692.30 15108.94 19263.71 21008.65 13277.76 12508.94 Share in Total Trade % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 India 61.29 63.18 62.03 64.34 57.77 59.08 66.29 65.10 65.97 66.67 63.66 63.33 58.96 China ------10.18 9.44 11.91 13.07 14.90 Other countries 38.71 36.82 37.97 35.66 42.23 40.92 33.71 34.90 23.84 23.89 24.43 23.59 26.14 * Privisional # China's data is included in other countries' data Source : Nepal Rastra Bank Table 6.2 : Commodity Trade by SITC Group Rs. in ten million Fiscal Year First Eight Months SITC Group 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Export 5870.57 6023.41 5938.32 5926.65 6769.75 6082.40 6433.85 7426.10 7691.70 9199.10 8531.91 5686.75 4273.06 Food & live Animals 699.35 719.20 705.58 1316.49 1914.53 1315.52 1453.18 1593.00 1808.90 2166.70 2020.90 1256.44 938.11 Tobacco & Beverage 3.16 2.50 2.33 2.43 35.42 1.84 0.17 10.20 21.40 199.10 234.67 180.13 34.80 Crude Materials & Inedibles 88.16 122.34 136.80 135.07 197.31 246.96 192.33 258.70 327.90 499.20 327.42 214.57 108.83 Mineral Fuels & Lubricants 0.42 0.32 0.00 0.00 4.17 0.00 0.00 0.00 0.80 0.60 0.01 0.00 0.10 Animals & Vegetable Oil & Fats 507.03 428.46 445.49 206.20 36.29 26.72 40.90 33.20 15.60 24.30 11.12 4.45 2.08 Chemicals & Drugs 367.76 368.69 409.16 282.35 308.73 167.69 267.95 273.70 385.20 469.10 487.26 296.81 247.07 Classified by Materials 2859.06 2853.30 3041.22 2964.33 2824.16 3339.52 3349.65 3900.90 3985.80 4377.30 4107.84 2814.76 2036.60 Machinery & Transport Equipment 20.76 120.19 124.09 91.29 62.53 72.50 37.97 27.80 51.90 68.10 38.62 13.62 34.57 Miscellaneous Manufactured Articles 1323.96 1408.16 1073.65 928.17 1385.97 911.65 1091.11 1328.40 1093.80 1394.30 1304.05 905.96 870.73 Not Classified 0.91 0.25 0.00 0.32 0.64 0.00 0.59 0.30 0.30 0.40 0.00 0.00 0.18 Import 14947.36 17378.03 19469.46 22193.78 28446.96 37433.52 39617.55 46166.80 55674.00 71436.60 77468.42 50591.85 43580.11 Food & live Animals 982.07 1329.87 1289.59 1583.83 2047.11 2376.55 2926.34 4078.30 6111.90 8965.40 9961.96 6230.83 6579.31 Tobacco & Beverage 101.56 116.18 95.79 123.83 141.28 285.49 216.71 308.20 444.90 483.00 504.14 310.50 348.84 Crude Materials & Inedibles 1120.7 1056.23 882.93 836.51 1254.30 1988.89 1948.02 1777.30 2136.50 3181.00 3233.23 2247.31 1892.00 Mineral Fuels & Lubricants 2992.73 3644.70 3636.20 4396.85 4529.37 5678.11 8123.45 10277.10 11947.10 14782.70 12695.13 8496.03 4015.89 Animals & Vegetable Oil & Fats 601.63 1019.66 1213.76 939.91 900.43 932.05 1473.38 1791.80 1755.20 2233.70 2250.38 1516.30 1188.68 Chemical & Drugs 1917.97 2475.02 2699.59 2686.33 3157.99 3966.96 4527.21 4901.70 6424.30 8418.10 9155.53 5911.14 6228.05 Classified by Materials 3704.74 4060.05 4814.53 5744.84 7607.00 11612.98 9133.78 11478.20 10956.60 14003.80 17576.20 11774.48 9214.18 Machinery & Transport Equipment 2626.21 2619.46 3635.74 4800.64 6800.95 8451.72 8533.15 8241.40 10020.30 12490.10 17237.84 10879.59 9865.53 Miscellaneous Manufactured Articles 755.18 1041.78 1175.50 1072.62 1997.73 2136.66 2723.48 3297.20 3265.90 4399.40 4215.05 2864.47 2833.76 Not Classified 144.57 15.08 25.83 8.42 10.80 4.11 12.03 15.50 2611.40 2479.40 638.96 361.20 1413.86 * Provisional Source: Nepal Rastra Bank Table 6.3 (A): Exports of Major Commodities to India Rs. in ten million Fiscal Year First Eight Months Description 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Rice (Husked) 0.00 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Maize 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mustard & Linseeds 4.43 4.75 2.33 3.51 2.17 1.10 2.60 0.60 0.30 1.70 4.73 4.11 2.50 Herbs 13.24 13.35 10.56 14.86 20.66 23.90 17.20 9.00 31.30 24.50 50.03 38.02 19.95 Ghee 8.31 10.30 11.09 10.17 10.64 12.70 32.20 37.10 13.60 15.60 15.47 11.85 8.85 Dried Ginger 8.01 6.22 4.96 5.40 6.80 9.10 0.30 0.20 1.20 0.40 0.05 0.02 0.68 Pulses 66.71 64.32 30.69 31.48 38.16 2.80 0.90 20.30 0.10 0.40 12.71 12.64 0.00 Kutch 1.41 4.21 0.63 0.85 5.08 Live Animals 5.60 5.80 2.17 5.22 2.44 3.70 6.60 24.90 41.00 23.40 20.46 12.28 10.47 Flour 0.04 0.00 0.00 0.35 8.24 4.10 1.00 0.00 0.00 0.00 0.00 0.00 0.00 Ginger 16.10 27.52 54.13 54.32 33.51 35.40 30.20 38.70 131.20 46.90 46.14 25.64 29.61 Oil Cake 31.71 29.16 31.81 40.50 53.27 49.80 51.00 64.30 63.80 70.60 61.31 35.00 55.02 Catechu 43.87 38.24 54.28 54.37 121.71 168.20 111.40 100.30 0.00 0.00 0.00 0.00 0.00 Rice Bran Oil 19.90 11.26 17.83 19.65 14.33 11.20 7.70 19.10 13.40 19.50 7.25 2.52 0.69 Salseed Oil 0.00 0.00 0.00 0.01 0.00 Raw Jute 0.00 0.05 0.16 3.11 14.63 6.50 0.00 0.00 4.40 4.40 0.17 0.17 0.33 Jute Cutting 0.13 4.82 0.00 1.08 5.67 62.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Jute Goods 269.35 263.68 275.68 258.25 128.25 289.70 399.80 406.50 410.80 430.20 427.31 267.32 263.40 a) Hessian 18.61 46.45 37.51 52.88 20.71 36.40 89.40 109.50 0.00 0.60 1.07 0.75 4.24 b) Sacking 145.62 126.54 140.86 121.99 45.88 201.70 186.60 210.20 367.30 357.90 374.65 236.93 234.34 c) Twines 105.12 90.69 97.31 83.38 61.66 51.60 123.80 86.80 43.50 71.80 51.59 29.63 24.81 Cardamom 60.70 60.81 84.81 103.48 121.60 131.60 191.50 327.60 385.00 426.70 383.97 210.51 308.21 Noodles 36.93 41.47 23.74 52.29 80.32 57.60 51.80 45.80 35.70 52.20 62.12 40.92 20.98 Cattlefeed 54.74 45.46 8.09 17.69 35.05 14.40 6.40 8.30 2.70 26.70 61.71 36.06 21.02 Tooth Paste 128.30 73.08 66.34 47.56 81.32 67.30 97.30 109.90 93.60 113.30 98.48 55.77 52.66 Polyster Yarn 189.63 347.63 224.10 261.80 249.98 339.80 264.10 365.70 474.20 515.30 501.82 325.94 213.05 Medicine (Ayurvedic) 19.75 30.11 15.63 13.21 16.34 13.90 57.60 84.80 67.10 89.50 90.72 59.35 52.97 Soap 36.80 36.36 50.27 42.42 59.10 40.40 37.20 24.40 6.20 2.60 2.18 1.56 0.38 Veg. Ghee 463.59 386.17 413.65 213.23 0.91 0.50 1.90 0.00 0.00 0.00 0.00 0.00 0.00 Pashmina 34.15 21.07 4.83 4.40 6.59 6.10 4.70 4.20 5.50 6.80 4.95 3.86 4.79 Thread 221.37 189.83 405.59 413.48 252.54 277.20 335.10 262.80 10.50 18.00 18.04 7.09 4.78 Copper wire Rod 53.01 30.58 20.60 61.74 57.18 64.40 30.30 121.30 118.40 142.70 126.06 81.20 53.73 M.S. Pipe 31.66 10.57 76.19 97.95 57.12 69.50 94.30 79.80 0.00 21.30 17.35 12.45 3.52 Plastic Utensils 136.16 80.83 41.51 30.26 51.34 18.20 61.00 72.10 98.60 35.80 34.39 23.49 12.91 Zinc Sheet 307.03 240.90 357.99 441.69 282.17 179.50 389.50 334.30 494.80 617.70 438.75 377.76 156.13 G.I. Pipe 42.40 51.93 12.78 24.27 109.84 56.80 80.70 159.30 356.30 303.10 299.37 192.79 53.81 Textiles 299.66 215.46 305.69 211.48 319.35 336.20 373.40 513.00 561.80 577.90 512.92 353.12 211.88 Juice 109.13 113.96 159.13 183.64 195.22 175.00 236.30 302.70 380.20 443.20 477.33 266.80 143.46 Chemical 140.75 105.75 95.02 27.57 29.01 15.20 14.80 0.90 0.00 0.00 16.62 13.42 5.08 Total 2854.57 2565.65 2862.28 2751.29 2470.54 2546.60 3020.90 3537.90 3801.60 4460.80 4219.71 2738.97 1974.26 Others 1037.12 1505.82 1310.60 1104.28 1630.05 1452.80 1315.10 1423.70 1298.40 1500.60 1366.75 911.90 416.78 Grand Total 3891.69 4071.47 4172.88 3855.57 4100.59 3999.40 4336.00 4961.60 5100.00 5961.40 5586.46 3650.87 2391.04 * Provisional Source: Nepal Rastra Bank Table 6.3 (B): Exports of Major Commodities to China

Rs. in ten million Fiscal Year First Eight Months Description 2012/13 2013/14 2014/15 2014/15 2015/16* Agarbatti 3.10 4.34 1.40 0.51 0.02 Aluminium, Copper and Brass Utensils 12.83 0.00 0.00 0.00 0.00 Handicraft (Metal and Woolen) 13.11 26.09 20.20 13.13 24.09 Herbs 0.00 0.00 0.00 0.00 0.00 Human Hair 0.06 1.08 1.72 1.18 1.33 Musical Instruments, Parts and Accessories 0.04 0.00 0.01 0.01 0.00 Nepalese Paper & Paper Products 0.01 0.00 0.00 0.00 0.00 Noodles 5.54 4.91 4.73 4.48 0.47 Other handicraft goods 2.68 2.01 5.74 3.21 3.37 Pashmina 2.98 3.98 2.81 2.17 2.93 Readymade Garments 8.88 2.81 4.39 3.44 0.55 Readymade Leather Goods 0.08 0.21 0.04 0.03 0.00 Rudrakshya 0.96 0.00 1.01 1.01 0.00 Silverware and Jewelleries 0.07 0.71 0.43 0.38 0.00 Tanned Skin 40.75 24.79 30.69 25.25 11.35 Tea 0.51 0.83 1.34 1.28 1.09 Vegetables 0.17 0.00 0.00 0.00 0.00 Wheat Flour 10.74 11.01 2.23 1.86 0.48 Woolen Carpet 8.52 11.97 14.93 9.25 14.56 B. Other 97.53 189.32 131.31 120.50 41.20 Total (A+B) 208.58 284.07 222.99 187.69 101.46 * Provisional Source: Nepal Rastra Bank Table 6.3 (C) : Export of Major Commodities to Other Countries Rs. In ten million Fiscal Year First Eight Months Description 2004/05# 2005/06# 2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13 2013/14 2014/15 2014/15 2015/16* Pulses 10.65 19.17 48.85 145.84 624.71 395.20 335.80 249.70 267.13 204.39 113.16 93.21 49.08 Cardamon (Large) 20.53 10.92 12.96 6.50 6.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Medicinal Herbs 5.47 1.90 4.35 9.79 41.20 23.94 12.60 19.80 0.90 19.72 6.06 2.86 11.60 Catechu 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Wollen Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Nepalese Paper & Paper Products 23.98 25.70 19.06 34.71 36.12 55.33 39.90 58.70 24.30 28.92 21.78 16.52 19.00 Hides & Skins 23.58 31.04 27.91 24.87 5.82 30.70 43.40 72.40 49.06 75.24 64.66 41.76 25.60 Carpets (Hand Knotted Wollen) 586.87 583.87 560.02 504.82 573.55 407.87 486.00 693.80 598.82 728.00 676.01 450.53 503.80 Readymade Garments 612.46 620.41 521.29 475.58 490.47 389.07 306.30 400.60 307.81 422.29 395.97 265.16 288.78 Handicrafts 64.42 43.09 25.02 19.40 107.78 108.28 45.80 51.00 8.12 11.04 8.48 6.03 6.27 Ornaments 36.32 28.24 32.54 26.94 26.24 12.66 9.10 11.00 7.53 27.01 10.25 6.60 11.81 Pasmina 104.98 157.78 93.10 64.34 152.69 126.76 227.30 323.00 162.53 272.44 211.77 149.99 180.71 Total 1489.26 1522.12 1345.10 1312.79 2064.97 1549.81 1506.10 1880.00 1426.21 1789.04 1508.13 1032.64 1096.64 Others 489.62 429.82 420.33 758.29 604.19 533.22 591.70 584.50 956.95 1164.65 1214.33 815.55 683.93 Grand Total 1978.88 1951.94 1765.43 2071.08 2669.16 2083.03 2097.80 2464.50 2383.16 2953.69 2722.46 1848.19 1780.57 * Privisional # China's data is included in other countries' data before 2011/12 Source : Nepal Rastra Bank Table 6.4 (A) : Import of Selected Commodities from India Rs. in ten million Fiscal Year First Eight Months Particulars 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Electrical Goods 112.95 156.13 236.52 358.73 394.25 608.95 722.37 701.00 657.40 766.56 1072.03 613.69 544.86 Threads 110.63 216.69 315.88 305.63 259.72 302.27 285.53 413.30 388.80 959.42 721.05 535.74 429.24 Tobacco 59.11 59.96 64.63 73.22 106.16 181.71 184.68 191.70 206.80 213.42 203.77 132.93 185.21 Transport Equipments 513.31 521.37 979.87 1187.46 1615.86 2377.66 2068.14 1705.10 2629.80 3298.31 4412.63 2848.68 2859.77 Medicine 369.16 438.90 444.25 543.41 655.81 796.28 980.78 1038.30 1333.70 1529.63 1784.66 1138.44 1171.87 Chemical Fertilizer 38.92 105.23 62.40 31.57 13.02 295.11 307.34 450.70 848.60 803.52 595.47 367.39 142.42 Cloths (cotton and others) 219.51 205.17 175.38 166.36 246.19 244.07 196.61 241.10 290.00 380.96 381.67 262.98 275.22 Vegetable 94.94 113.96 103.58 145.73 129.08 207.94 209.66 259.00 454.90 696.94 798.87 441.40 503.51 Cement 141.02 193.36 251.99 233.70 422.66 441.45 437.28 330.00 942.50 971.83 1012.55 676.83 535.13 Paper 40.68 60.32 80.69 72.93 113.93 138.95 207.41 227.80 367.80 481.75 514.04 343.12 303.74 Horlicks & other milk products 36.06 57.19 107.31 44.53 86.02 70.85 99.91 97.90 360.00 483.26 465.98 327.20 267.52 Chemical liquids 340.19 328.14 259.09 271.98 278.46 313.34 312.35 407.30 255.90 302.31 309.51 203.93 189.75 Agricultural tools & spair parts 52.74 67.16 107.31 148.38 249.06 337.28 316.23 414.60 738.00 858.25 940.71 608.42 497.77 M.S. Ware Rod 148.00 106.52 141.87 259.53 248.74 610.76 500.38 676.10 409.00 648.03 539.20 274.91 537.59 M.S. billet 339.38 388.34 438.42 814.54 645.73 1372.07 1833.72 1943.70 2230.40 2467.48 2633.56 1765.80 1160.04 Steel Plate 45.97 2.02 0.26 0.01 0.00 0.00 0.00 0.90 2.00 4.52 5.28 1.79 5.40 Aluminum Ingut 44.32 25.99 42.46 65.47 51.96 108.70 118.17 129.00 161.60 196.00 319.76 198.33 167.83 Hot Rollsheet (in quail) 56.86 114.48 205.27 357.59 282.41 411.13 545.94 554.30 568.90 1168.18 1325.92 851.22 785.01 Clod Rollsheet (in quail) 408.45 79.77 207.96 400.58 703.85 680.26 823.55 746.80 269.20 652.46 715.30 492.92 498.66 Other mechinery spairparts 301.08 388.34 355.63 468.20 726.38 841.69 979.31 834.20 1201.40 1596.68 1889.29 1176.29 999.53 Petroleum Products 2665.36 3365.72 3356.76 4081.57 4135.67 5161.04 7508.08 9225.60 10713.90 13173.65 11005.78 7419.71 3084.14 Other 2728.91 3719.55 3649.69 4206.54 4878.80 6269.92 7555.07 9350.90 11672.70 16141.55 17518.56 11310.45 10677.55 Total 8867.55 10714.31 11587.23 14237.65 16243.76 21771.43 26192.52 29939.00 36703.10 47794.71 49165.59 31992.17 25821.76 * Provisional Source: Nepal Rastra Bank Table 6.4 (B) : Import of Selected Commodities from China Rs. in ten million

Fiscal Year First Eight Months Description 2012/13 2013/14 2014/15 2014/15 2015/16* Aluminium Scrap, Flake, Foil, Bars, & Rods 78.16 107.63 143.77 101.90 111.20 Chemical 94.57 100.83 118.73 79.72 71.78 Chemical Fertilizer 234.57 470.00 762.00 488.47 1074.43 Electrical Goods 544.44 654.80 909.13 565.17 477.28 Medical Equipment & Tools 57.59 79.53 159.84 136.11 87.61 Medicine 46.69 41.07 47.55 27.68 25.48 Metal & Wooden furniture 51.28 65.08 70.36 46.05 52.58 Office Equipment & Stationary 56.66 64.41 75.07 55.89 32.43 Other Machinery and Parts 470.57 504.03 832.34 645.66 412.00 Pipe and Pipe Fittings 268.94 15.36 49.26 36.60 10.85 Plywood & Particle board 20.35 24.90 35.50 28.80 18.16 Polyethylene Terephthalate (Plastic pet chips/Pet Resin) 1.76 13.48 5.03 3.91 0.00 Raw Silk 42.08 148.57 153.79 109.45 101.68 Raw Wool 44.03 54.40 51.76 39.68 48.67 Readymade Garments 478.08 608.82 408.04 342.72 397.74 Seasoning Powder & Flavour for Instant Noodles 3.34 5.76 5.09 3.06 2.52 Shoes and Sandles 194.19 222.03 168.57 137.91 174.24 Smart Cards 17.14 24.49 22.52 12.97 4.19 Solar Pannel 32.38 82.55 70.91 47.82 34.10 Steel Rod & Sheet 3.58 3.48 54.83 51.11 2.72 Storage Battery 52.83 56.56 104.70 34.83 28.39 Telecommunication Equipments and Parts 1189.62 1120.48 1539.74 1064.25 1126.15

Threads - Polyster 10.24 28.25 34.89 28.83 17.55 Toys 36.61 43.77 51.07 39.38 37.75 Transport Equipment & Parts 79.58 119.35 132.24 89.24 86.16 Tyre, Tubes and Flapes 29.25 16.69 19.80 14.76 8.28

Video Television & Parts 254.36 326.96 444.06 304.94 264.42 B. Other Commodities 1852.25 1933.50 3062.69 2274.86 2006.44 Grand Total 6245.12 7331.86 10016.64 7170.11 7029.98 Table 6.4(C) : Import of Selected Commodities from Other Countries Rs. in ten million Fiscal Year First Eight Months Particulars 2004/05# 2005/06# 2006/07# 2007/08# 2008/09# 2009/10# 2010/11# 2011/12# 2012/13 2013/14 2014/15 2014/15 2015/16* Gold 0.49 0.29 351.99 375.05 1657.46 4163.58 1135.76 2577.0 0 2611.39 2479.41 638.96 361.20 1413.85 Silver 21.22 5.31 0.12 44.67 117.54 325.09 372.56 437.10 878 .31 1271.12 2469.93 1681.50 511.54 Petroleum products 21.56 54.88 57.22 52.30 95.57 169.36 165.99 168.20 225.28 182.79 203.55 140.90 118.39 Other Machinery & Parts 269.59 283.07 200.74 390.20 597.23 765.61 640.92 719.80 371.91 572.95 595.56 359.62 354.59 Electrical goods 132.64 287.27 296.58 394.52 824.16 683.77 650.55 731.20 124.71 155.62 191.33 93.32 118.56 Threads 99.83 161.08 125.68 139.58 217.30 273.52 194.29 188 .70 149.52 260.92 264.13 169.81 144.99 Raw Wool 205.98 151.11 163.08 139.48 35.59 87.33 91.27 65.7 0 60.97 100.41 94.08 59.49 50.08 Transportation equipments 175.15 215.57 270.50 439.18 550.21 423.59 421.52 285.90 286.89 496.69 477.23 315.16 271.45 Medicine 70.12 110.81 153.69 126.30 311.73 335.80 213.54 19 7.60 218.54 281.17 531.29 194.97 726.19 Chemical Fertilizer 17.05 38.91 61.73 1.96 7.98 70.35 236.81 229.10 249.31 138.27 95.68 64.47 0.00 Paper 19.85 83.20 79.26 103.97 101.97 142.65 178.89 175.80 1 33.83 172.62 187.71 136.11 114.08 Computer parts 122.70 135.38 270.10 226.97 376.97 534.11 617.83 615.00 129.10 134.36 136.04 95.08 80.46 Aeroplane spare parts 98.05 107.13 146.28 104.99 202.04 221.82 247.24 140.60 206.27 217.90 1698.44 685.67 677.77 Telecommunication accessories 186.07 172.05 95.41 497.94 406.44 852.19 949.32 845.90 249.96 338.41 385.62 268.94 258.31 Cloths (cotton & others) 176.80 285.43 245.57 196.66 292.73 191.05 260.91 127.50 63.79 90.21 86.90 63.13 38.22 Polithene granules 197.27 369.67 295.97 371.89 361.65 578.76 470.12 578.70 450.18 779.14 657.96 448.88 506.04 Crude Palm Oil 208.55 405.11 712.15 574.68 294.93 202.64 609.66 31.30 339.08 413.36 510.42 340.04 174.57 Crude Soyabean Oil 83.46 157.29 192.42 160.00 365.86 433.75 650.76 996.20 1062.75 1477.85 1284.39 823.47 799.01 Copper Wire Rod,Scrape & Sheets 138.72 208.91 187.88 194.11 181.36 177.62 131.28 187.50 116.83 299.33 253.14 204.09 108.60 Raw Silk 5.73 10.76 2.54 0.55 4.10 3.18 0.00 0.00 1.16 0.73 1. 71 1.71 0.20 Others 3828.98 3420.49 3973.32 3421.12 5200.38 5086.32 5185.81 6928.90 4795.99 6446.78 7522.12 4922.01 4261.45 Total 6079.81 6663.72 7882.23 7956.12 12203.20 15722.09 13425.03 16227.80 12725.77 16310.02 18286.19 11429.57 10728.35 * Provisional # China's data is included in other countries' data before 2011/12 Source: Nepal Rastra Bank Table 6.5: Income and Expenditure of Convertible Foreign Exchange Rs. in ten million

Fiscal Year First Eight Months Description 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* Income 12326.84 15729.75 17996.76 23692.71 32439.19 34637.07 38030.10 53691.00 62965.60 77075.15 87212.40 58551.51 59786.56 - Services 7688.38 10927.45 12693.59 16679.33 23445.49 24880.12 25594.30 36842.20 43272.10 54323.52 62589.78 42008.03 41345.76 Gorkha+ 6178.48 9274.86 10741.74 13942.15 19421.56 21399.89 22590.90 33336.70 39434.90 49030.25 54005.32 35088.87 38259.60 Tourist's Expenditure 1181.48 1171.09 1264.58 2033.99 3458.98 2938.59 2540.90 3180.10 3420.50 4611.47 7729.90 6414.27 2625.94 Intrest on Investment Abroad 328.42 481.50 687.27 703.20 564.95 541.64 462.50 325.40 416.70 681.79 854.56 504.89 460.23 - Merchandise Export 2085.19 2173.85 2236.68 2866.32 4049.65 4439.55 3985.30 5298.30 6432.50 7482.21 7354.55 5058.72 3548.44 - Diplomatic Mission 350.52 528.16 779.40 1072.63 1318.82 539.13 548.10 936.90 1839.00 2634.77 3248.11 1847.73 2548.83 - Foreign Aid 2039.75 1671.35 1662.23 2364.24 2819.79 3298.39 2966.50 4100.70 3566.70 4053.31 2485.44 1945.09 5030.63 - Miscellaneous 162.99 388.51 624.85 710.19 805.45 1479.88 4935.90 6512.80 7855.30 8581.33 11534.53 7691.95 7312.91 Expenditures 10865.57 13518.50 16547.14 23340.27 28630.47 35141.99 17491.70 19399.40 24196.70 29595.42 31541.59 19673.30 23953.62 - Services 1973.51 2178.885 2601.26 2528.75 3236.82 4099.16 3793.20 3265.70 4526.20 5951.24 6750.75 4246.82 5065.10 Amortization 737.47 712.425 848.13 911.72 1124.88 1209.78 1547.20 1631.70 1936.90 2068.92 2123.30 1541.84 1365.20 Others 1236.04 1466.46 1753.12 1617.03 2111.94 2889.38 2246.00 1634.00 2589.30 3882.32 4627.45 2704.98 3699.90 - Merchandise Import 6308.67 6768.438 7488.18 9372.72 13293.12 14125.85 13275.00 15675.00 19031.20 22724.45 24060.22 15047.65 18192.66 - Diplomatic Missions 62.15 64.97 40.34 60.08 96.47 183.39 168.80 165.00 85.40 158.92 188.84 98.97 129.88 - Miscellaneous 2521.24 4506.204 6417.36 11378.72 12004.07 16733.59 254.60 293.70 553.90 760.81 541.78 279.86 565.98 Surplus or Deficit (-) 1461.27 2211.25 1449.62 352.45 3808.72 -504.92 20538.40 34291.60 38768.90 47479.72 55670.81 38878.21 35832.94 * Provisional + Before FY 1994/95 Remittances mostly used to be Gorkha Remittances Source: Nepal Rastra Bank Note: Revised data included since F.Y. 2010/11 Table 6.6 : Gross Foreign Assests of Banking System Rs. in ten million Nepal Rastra Bank Commercial Banks Year/Mid- Total IMF Gold Special Foreign Con- Incon- Foreign Conver- Inconver- Total Month (2+3+4+5) Gold Tranche Drawing Exchange vertible vertible Exchange tible tible (1+8) Rights (6+7) (9+10) 1 2 3 4 5 6 7 8 9 10 11 2003 July 8804.30 48.22 59.27 0.20 8696.61 7675.20 1021.41 2126.33 2024.92 101.41 10930.63 2004 July 10907.68 47.83 62.76 5.50 10791.59 9623.59 1168.00 2228.92 2073.48 155.44 13136.60 2005 July 10544.42 38.34 0.00 63.71 10442.37 10082.36 360.01 2547.27 2315.49 231.78 13091.69 2006 July 13303.63 40.50 0.00 66.37 13196.76 12414.72 782.04 3306.54 3179.07 127.47 16610.17 2007 July 13021.39 0.00 0.00 58.75 12962.64 12375.53 587.11 3549.96 3168.10 381.86 16571.35 2008 July 17031.42 0.00 0.00 63.06 16968.36 14284.88 2683.48 4293.99 3882.71 411.28 21325.41 2009 July 25578.66 3104.10 0.00 55.53 22419.03 20175.60 2243.43 6234.52 5875.03 359.49 31813.18 2010 July 24488.12 3319.46 0.00 631.53 20537.13 16599.27 3937.86 6353.58 5822.22 531.36 30841.71 2011 July 27209.01 5226.44 0.00 673.06 21309.51 16525.75 4783.76 5905.80 5550.33 355.47 33114.81 2012 July 39204.47 915.20 0.00 736.82 37552.45 28568.19 8984.26 6393.22 5714.40 678.82 45597.69 2013 July 47379.11 1420.17 0.00 659.49 45299.45 33994.00 11305.45 8030.25 7407.99 622.26 55409.36 2014 July 59375.30 1588.28 0.00 546.93 57240.09 42613.29 14626.80 9300.61 8737.23 563.38 68675.91 2015 July 72668.39 1952.71 0.00 409.59 70306.09 51745.67 18560.43 12099.51 11484.34 615.17 84767.90 2016 March* 90078.21 2672.81 320.34 17.80 87067.26 66230.82 20836.44 13600.52 13139.54 460.98 103678.73

* Provisional Source : Nepal Rastra Bank Table 6.7 : Balance of Payments Summary Rs in ten million Fiscal Year First Eight Months Particulars 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16* A. Current Account 1154.46 1422.45 -90.22 2367.96 4143.73 -2813.52 -1293.64 7597.92 5706.07 8972.15 10831.98 1164.66 13855.11 Goods : Exports F.O.B. 5995.61 6148.24 6148.84 6197.11 6990.68 6317.75 6870.15 8151.18 8598.98 10096.06 9827.63 6468.67 4485.88 Oil 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other 5995.61 6148.24 6148.84 6197.11 6990.68 6317.75 6870.15 8151.18 8598.98 10096.06 9827.63 6468.67 4485.88 Goods : Imports F.O.B. -14571.82 -17154.08 -19043.71 -21796.28 -27922.78 -36669.25 -38837.14 -45465.31 -54729.43 -69637.33 -76177.30 -49985.58 -42753.79 Oil -2665.36 -3365.72 -3356.76 -4081.57 -4135.67 -5160.72 -7507.62 -9225.56 -10713.89 -13297.64 -11204.46 -7555.72 -3202.56 Other -11906.46 -13788.36 -15686.95 -17714.71 -23787.11 -31508.53 -31329.52 -36239.75 -44015.54 -56339.69 -64972.84 -42429.86 -39551.23 Balance on Goods -8576.21 -11005.84 -12894.87 -15599.17 -20932.10 -30351.50 -31966.99 -37314.13 -46130.45 -59541.27 -66349.67 -43516.91 -38267.92 Services Net -203.42 -681.83 -837.73 -1109.20 -1047.80 -1638.53 -867.46 1405.70 758.58 2088.22 2761.75 1060.42 419.22 Services : Credit 2600.19 2646.97 3207.89 4223.61 5283.01 5112.05 5301.25 7235.15 9519.08 12506.12 14928.84 9378.48 8606.41 Travel 1046.38 955.58 1012.53 1865.31 2795.98 2813.86 2461.07 3070.38 3421.06 4637.49 5342.86 3431.33 2609.30 Government N.I.E. 680.49 744.15 1233.64 1330.18 1273.44 663.56 553.46 1007.14 1838.97 2435.28 3248.11 1858.06 2384.09 Other 873.32 947.24 961.72 1028.12 1213.59 1634.63 2286.72 3157.63 4259.05 5433.35 6337.87 4089.09 3613.02 Services : Debit -2803.61 -3328.80 -4045.62 -5332.81 -6330.81 -6750.58 -6168.71 -5829.45 -8760.50 -10417.90 -12167.09 -8318.06 -8187.19 Transportation -1060.22 -1259.23 -1455.74 -2267.59 -2211.62 -2296.46 -1860.47 -2229.23 -3327.67 -3982.20 -4399.63 -3061.19 -2794.13 Government N.I.E. -969.19 -1196.08 -1578.50 -2086.20 -3139.63 -3228.82 -2764.29 -2576.97 -3961.19 -4217.56 -5319.02 -3652.31 -3539.12 Other -774.20 -873.49 -1011.38 -979.02 -979.56 -1037.85 -1428.49 -866.61 -1353.85 -2055.57 -2250.96 -1462.75 -1725.09 Balance on Goods and Services -8779.63 -11687.67 -13732.60 -16708.37 -21979.90 -31990.03 -32834.45 -35908.43 -45371.87 -57453.05 -63587.92 -42456.49 -37848.70 Income Net 163.65 495.55 743.18 794.68 1174.95 911.74 754.94 1229.14 1307.88 3275.17 3424.25 1555.29 1643.43 Income : Credit 775.16 1143.23 1450.08 1344.77 1650.66 1491.79 1750.40 2252.13 2332.01 3953.98 4283.15 2176.99 2310.24 Income : Debit -611.51 -647.68 -706.90 -550.09 -475.71 -580.05 -995.46 -1022.99 -1024.13 -678.81 -858.90 -621.70 -666.81 Balance on Goods, Services and Income -8615.98 -11192.12 -12989.42 -15913.69 -20804.95 -31078.29 -32079.51 -34679.29 -44063.99 -54177.88 -60163.67 -40901.20 -36205.27 Current Transfer Net 9770.44 12614.57 12899.20 18281.65 24948.68 28264.77 30785.87 42277.21 49770.06 63150.03 70995.65 42065.86 50060.37 Current Transfer : Credit 10131.01 13086.17 13319.68 18546.29 25746.13 28777.06 31115.67 42780.57 50506.82 63485.48 71252.22 42204.89 50242.73 Grants 2107.19 1885.11 1821.82 2099.32 2679.62 2667.36 2578.00 3622.71 3418.05 4851.98 5285.54 2358.55 4542.32 Workers' Remittances 6554.12 9768.85 10014.48 14268.27 20969.85 23172.53 25355.16 35955.44 43458.17 54329.41 61727.88 37099.55 42737.30 Pensions 1250.22 1200.76 1293.70 1878.99 1775.54 2585.07 2899.34 2834.36 3532.67 4137.31 4238.80 2746.79 2963.11 Other 219.48 231.45 189.68 299.71 321.12 352.10 283.17 368.06 97.93 166.78 0.00 0.00 0.00 Current Transfer : Debit -360.57 -471.60 -420.48 -264.64 -797.45 -512.29 -329.80 -503.36 -736.76 -335.45 -256.57 -139.03 -182.36 B. Capital Account (Capital Transfers) 157.36 310.70 444.99 791.25 623.10 1257.83 1590.61 1824.17 1034.83 1706.35 1481.14 763.26 971.68 Total (Group A plus B) 1311.82 1733.15 354.77 3159.21 4766.83 -1555.69 296.97 9422.09 6740.90 10678.50 12313.12 1927.92 14826.79 Contd.. Fiscal Year First Eight Months Particulars 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16*

C. Financial Account (exclu.group E) -2553.69 -132.45 -236.21 1103.26 2120.17 784.66 321.25 2891.28 1249.63 1114.80 1772.07 858.88 -326.78 Direct investment in Nepal 13.60 -46.97 36.23 29.39 182.92 285.20 643.71 919.54 908.19 319.46 438.26 267.20 233.89 Portfolio investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other investment : assets -2186.32 -1400.88 -1069.00 -1139.61 -1767.51 -1825.39 -2576.22 -1571.96 -2284.64 -2133.16 -3458.45 -2134.41 -2210.02 Trade credits -32.38 -162.95 -512.76 85.32 -302.42 -100.90 -613.34 -513.74 -514.74 -162.00 -223.43 -133.02 -274.71 Other -2153.94 -1237.93 -556.24 -1224.93 -1465.09 -1724.49 -1962.88 -1058.22 -1769.90 -1971.16 -3235.02 -2001.39 -1935.31 Other investment : liabilities -380.97 1315.40 796.56 2213.48 3704.76 2324.85 2253.76 3543.70 2626.08 2928.50 4792.26 2726.09 1649.35 Trade credits -448.90 923.25 172.78 1248.36 1955.46 2196.89 1829.25 2644.23 1443.46 2368.61 2291.23 1804.95 -157.73 Loans 74.44 52.69 145.56 339.15 -289.90 -393.35 261.20 103.68 -128.18 419.24 1185.73 341.65 1579.53 General Government 130.04 70.37 215.07 345.59 -283.24 -390.15 263.16 104.76 -121.89 440.78 1191.94 345.13 1500.71 Drawings 725.37 769.10 968.97 1132.55 728.79 684.16 1384.92 1344.53 1370.10 2113.24 2896.12 1283.85 2448.46 Repayments -595.33 -698.73 -753.90 -786.96 -1012.03 -1074.31 -1121.76 -1239.77 -1491.99 -1672.46 -1704.18 -938.72 -947.75 Other Sectors -55.60 -17.68 -69.51 -6.44 -6.66 -3.20 -1.96 -1.08 -6.29 -21.54 -6.21 -3.48 78.82 Currency and deposits -6.51 339.46 478.22 625.97 2039.20 -103.13 123.17 844.62 1430.11 273.34 1431.86 643.11 620.34 Nepal Rastra Bank 4.62 -11.65 0.24 -0.56 -0.34 4.49 -0.78 3.70 -1.17 -3.67 -2.02 -2.12 3.62 Deposit Money Banks -11.13 351.11 477.98 626.53 2039.54 -107.62 123.95 840.92 1431.28 277.01 1433.88 645.23 616.72 Other liabilities 0.00 0.00 0.00 0.00 0.00 624.44 40.14 -48.83 -119.31 -132.69 -116.57 -63.63 -392.79

Total (Group A through C) -1241.87 1600.70 118.56 4262.47 6887.00 -771.03 618.22 12313.37 7990.54 11793.30 14085.19 2786.80 14500.01

D. Net Errors and Omissions 1809.57 1298.54 950.09 -669.03 -371.96 356.86 -86.08 1693.91 333.54 1192.76 1850.27 1363.46 1938.63

Total (Group A through D) 567.70 2899.24 1068.65 3593.44 6515.04 -414.17 532.14 14007.28 8324.07 12986.05 15935.46 4150.25 16438.64

E. Reserves and related items -567.70 -2899.24 -1068.65 -3593.44 -6515.04 414.17 -532.14 -14007.28 -8324.07 -12986.05 -15935.46 -4150.25 -16438.64 Reserve assets -646.22 -2899.23 -1341.02 -3700.20 -6506.97 84.29 -491.87 -13958.78 -8204.90 -12853.63 -15819.20 -4086.77 -16438.64 Nepal Rastra Bank -325.13 -2129.71 -1096.32 -2963.68 -4575.13 418.28 -943.84 -13478.70 -6576.34 -11599.22 -13035.30 -2125.46 -14952.92 Deposit Money Banks -321.09 -769.52 -244.70 -736.52 -1931.84 -333.99 451.97 -480.08 -1628.56 -1254.41 -2783.90 -1961.31 -1485.72 Use of Fund credit and loans 78.52 -0.01 272.37 106.76 -8.07 329.88 -40.27 -48.50 -119.17 -132.42 -116.26 -63.48 0.00

Change in Net Foreign Assets (- Surpuls) -574.21 -2559.78 -590.43 -2967.47 -4475.84 311.04 -408.97 -13162.66 -6894.0 -12712.71 -14503.60 -3507.14 -15818.30 * Provisional Source : Nepal Rastra Bank Table 7.1 : Status of Foreign Employment by Country

Fiscal Years S.N. Country 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* 2015/16**

A. From 1993/94 to 2005/06 558675 558675 B. From 2006/07

1 Qatar 59705 85442 76175 55940 102966 105681 103486 128874 124368 86585 929222

2 Malaysia 74029 50554 35070 113982 105906 98367 158212 214149 202828 42976 1096073

3 Saudi Arabia 39279 42394 48749 63400 71116 80455 96995 86876 98246 93346 720856

4 U.A.E. 25172 45342 31688 33188 44464 54482 58447 54965 53699 34975 436422

5 Kuwait 2441 1967 2291 8255 15187 24575 17273 19353 9668 6749 107759

6 Baharain 1200 5099 6360 4234 4647 5865 4218 4185 4165 2034 42007

7 Oman 509 2626 4247 3285 2442 3163 3973 3435 2300 2274 28254

8 S. Korea (Including EPS) 765 146 2909 2532 3728 5627 4440 2125 5158 2119 29549

9 Lebnan 0 2563 3379 3788 151 243 589 1117 598 126 12554

10 Israil 405 110 3378 316 273 574 140 674 450 125 6445

11 Afganistan 182 1400 1538 735 655 823 356 605 1501 922 8717

12 Japan 0 1306 1827 516 603 1144 1228 2098 2836 2892 14450

13 Other Countries 846 10102 2354 3923 2578 3666 4186 9358 7070 5112 49195

Total 204533 249051 219965 294094 354716 384665 453543 527814 512887 280235 4040178 * First Eight Months ** Total Number of upto Fiscal Year Source: Department of Foreign Employment Table 8.1 : Area, Production and Yield of Principal Food Crops Area : Thousand Hectare Production: Thousand M.T. Yield: M.T./Hectare Fiscal Year Food Crops 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Area 1440 1549 1556 1481 1496 1531.00 1420.0 1487.0 1425.4 1362.91 Paddy Production 3681 4299 4524 4024 4460 5072.00 4504.0 5047.1 4788.6 4299.08 Yield 2.56 2.77 2.90 2.72 2.98 3.31 3.2 3.4 3.4 3.15 Area 870 870 875 876 906 871.00 849.0 928.8 882.4 891.58 Maize Production 1820 1879 1931 1855 2067 2179.00 1999.0 2283.0 2245.3 2231.52 Yield 2.09 2.16 2.20 2.12 2.28 2.50 2.4 2.5 2.4 2.5 Area 703 706 695 731 767 765.00 759.0 754.0 762.4 753.47 Wheat Production 1515 1572 1344 1556 1746 1846.00 1882.0 1883.0 1975.6 1811.89 Yield 2.16 2.22 1.93 2.13 2.75 2.41 2.5 2.5 2.6 2.4 Area 27 26 26 27 28 27.30 29.0 28.0 28.1 28.17 Barley Production 28 28 23 28 30 35.00 37.0 35.0 37.4 35.32 Yield 1.06 1.07 0.90 1.03 1.07 1.25 1.3 1.2 1.3 1.25 Area 265 265 266 268 270 278.00 274.0 271.0 268.1 266.8 Millet Production 285 291 293 299 303 315.00 305.0 304.0 308.5 302.4 Yield 1.07 1.09 1.10 1.11 1.12 1.13 1.1 1.1 1.5 1.13 Buck Area 10.3 10.30 10.7 10.5 10.8 10.84 Wheat Production 8.84 10.00 10.1 10.3 10.9 11.64 ** Yield 0.85 0.97 0.9 1.0 1.0 1.07 Total Area 3040 3151 3152 3383 3477.3 3484.00 3482.6 3479.0 3377.1 3314.57 Total Production 7044 7778 7822 7762 8614.8 9457.00 9457.0 9562.4 9366.2 8691.84 * Preliminery Estimate ** Included from FY 2010/11 Source : Ministry of Agriculture and Co-operatives Table 8.2 : Area, Production and Yield of Principal Cash Crops Area : Thousand Hectare Production: Thousand M.T. Yield: M.T./Hectare Fiscal Year Cash Crops 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Area 64 63 58 58 63 64.00 64.0 65 66.6 67.34 Sugercane Production 2600 2485 2354 2495 2718 2869.00 2930.0 3020 3063 3148.764 Yield 40.61 39.47 40.52 43.01 43.14 14.33 45.4 46.46 45.99 46.718 Area 184 180 181 199 214 218.00 215.0 216.4 217.22 221.62 Oil Seeds Production 136 134 135 155 176 181.00 179.0 184 194.54 199.01 Yield 0.74 0.74 0.75 0.78 0.82 0.83 0.8 0.85 0.89 0.898 Area 2.73 2.69 2.54 2.53 1.13 1.11 1.8 1.77 1.72 1.67 Tobacco Production 2.65 2.61 2.50 2.50 1.24 1.20 2.4 2.2 2.23 2.17 Yield 0.97 0.97 0.98 0.98 1.09 1.08 1.4 1.28 1.29 1.295 Area 154 157 182 185 183 187.00 188.0 205.72 190.23 195.72 Potato Production 1943 2055 2424 2518 2508 2682.00 2753.0 2817.51 2842 2875.088 Yield 12.66 13.11 13.3 13.61 13.7 14.33 14.6 13.69 14.94 14.898 Area 11.72 11.59 11.40 10.50 10.56 10.54 11.3 11.35 11.4 11.45 Jute Production 16.81 16.98 15.70 12.96 14.42 14.42 15.5 15.75 16.53 16.668 Yield 1.43 1.46 1.38 1.23 1.36 1.37 1.4 1.39 1.45 1.455 Total Area 416.5 414.3 434.94 455.03 461.26 480.65 480.1 500.24 487.17 497.8 Total Production 4698.46 4693.59 4931.20 5183.36 5403.37 5747.62 5879.9 6039.46 6118.3 6241.7 * Preliminary Estimate Source : Ministry of Agriculture and Co-operatives Table 8.3 : Other Crops Production in thousand metric ton Fiscal Year Other Crops 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Pulses 274.37 269.77 255.38 262.35 318.36 327.15 356.70 2817.51 2842.00 352.41 Fruits 575.09 630.56 686.21 707.00 831.60 885.52 1086.85 965.04 1186.37 1096.77 Vegetables 2298.68 2538.90 2754.40 3004.00 3203.00 3400.90 3409.70 3472.06 3629.00 3700.97 Total Production 2873.77 3169.46 3440.61 3711.00 4034.60 4613.57 7249.60 7254.62 7657.37 5150.15 * Preliminary Estimate Source : Ministry of Agriculture and Co-operatives

Table 8.4 : Livestock Production in thousand metric ton Fiscal Year Description 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Meat 227.11 233.90 241.69 249.00 277.62 288.50 295.50 298.24 300.90 309.94 Milk & Milk Products 1351.39 1388.73 1445.41 1496.00 1556.50 1622.75 1681.10 170.00 172.48 181.55 Egg (in Million) 614.85 631.25 629.94 643.20 704.13 787.01 838.90 872.92 899.50 948.43 Fish 46.78 48.75 48.23 49.73 52.07 54.36 53.96 65.77 69.40 77.67 * Preliminary Estimate Source : Ministry of Agriculture and Co-operatives Table 8.5 : Quantity index of Agriculture Commodities (Base Year 2000/01=100) Weight Fiscal Year Agricultural Commodities (Percent) 2007/08 2008/09 2009/10* 2010/11 2009/10 2010/11 2011/12 2012/13 2013/14* 2014/15** 1 Cereals and other crops 49.41 108.13 116.10 118.05 117.00 125.73 133.68 128.06 137.47 133.63 131.19 Paddy 20.75 87.30 101.96 107.29 95.43 105.78 120.30 104.92 117.56 111.54 100.14 Maize 6.88 122.63 126.58 130.09 125.00 144.70 146.84 139.89 159.78 150.13 156.13 Wheat 7.14 130.86 135.77 116.06 134.43 127.55 134.03 136.65 136.72 143.43 136.26 Millet 1.37 100.69 102.92 103.48 105.89 110.27 114.78 111.33 110.79 112.38 110.16 Barley 0.22 92.80 92.11 76.17 90.48 94.79 80.56 78.14 73.61 78.98 76.61 Potato 4.67 147.92 156.41 184.52 191.65 190.91 193.09 202.51 214.47 196.87 205.73 Sugarcane 1.24 117.54 112.37 106.45 117.21 122.90 132.47 132.47 149.92 138.49 142.64 Jute 0.17 93.74 103.64 95.74 127.90 87.96 87.99 94.56 77.23 100.84 100.84 Tobacco 0.06 66.65 65.79 62.85 62.70 31.16 36.17 61.16 25.28 56.05 56.05 Soyabeans 0.19 119.98 117.97 120.78 116.75 162.10 161.82 167.26 161.63 162.10 162.10 Pulses 4.42 112.18 110.29 104.42 109.48 128.47 129.11 142.85 136.59 137.38 137.78 Others 2.29 95.97 93.59 93.83 102.09 104.34 103.70 93.05 112.44 128.21 166.22 2 Vegetables, Horticultural and Nursery products etc 9.71 140.89 153.66 164.89 176.92 190.67 193.15 197.04 207.26 212.96 223.60 Vegetables 9.70 140.87 153.65 164.87 176.92 190.78 193.26 196.57 206.79 212.31 222.93 Others 0.01 167.28 167.72 179.26 179.71 187.93 188.18 515.01 521.16 647.38 675.11 Fruit, nuts beverage and 3 spice crops 7.10 135.68 142.22 155.60 161.14 187.23 207.72 209.40 211.51 223.89 231.31 Orange 0.97 146.10 157.63 167.16 177.28 239.98 216.07 196.16 195.08 199.49 209.47 Mango 1.56 113.51 110.79 117.49 113.94 147.24 215.65 223.49 205.30 227.54 238.91 Banana 0.40 108.86 117.45 124.56 132.09 228.41 323.96 372.04 383.79 478.98 502.92 Apple 0.42 108.62 117.19 124.28 131.80 134.27 144.47 134.62 147.51 136.78 143.62 Citrus Fruits 1.79 193.35 200.56 212.69 225.56 259.27 271.92 247.28 260.83 284.09 284.09 Tea 0.05 225.97 243.45 267.25 293.38 262.70 282.10 310.15 316.36 322.30 322.30 Coffee 0.00 402.25 561.80 629.21 704.72 451.12 477.53 411.24 421.35 520.87 520.87 Others 1.85 112.36 121.22 136.64 142.28 208.79 206.57 146.95 152.40 137.47 144.35 4 Farming of domestic animals 23.25 117.53 120.42 122.27 124.03 127.13 129.38 132.15 132.84 134.73 136.44 Buffaloes' Meat 4.42 117.77 121.11 125.45 129.93 134.46 137.86 140.28 139.29 139.38 139.73 Mutton 3.24 117.59 121.62 126.32 129.71 136.69 138.28 144.02 152.52 157.14 164.72 Milk 12.36 119.96 123.18 128.17 132.63 137.96 140.54 146.04 147.51 149.51 150.45 Others 3.23 107.66 107.55 91.11 77.19 113.83 113.83 55.82 48.00 49.19 49.82 5 Other animals production 2.43 82.37 122.90 127.93 119.64 168.55 180.70 200.00 199.82 206.11 212.51 Pigs' Meat 0.50 105.24 107.97 111.50 111.99 117.61 119.94 122.77 126.44 132.13 138.34 Poultry Meat 0.67 93.52 125.08 124.67 123.67 250.93 284.66 317.63 320.10 337.30 350.81 Eggs 0.81 94.74 124.43 124.17 126.78 138.79 146.03 174.65 172.06 173.36 177.60 Hides and skins 0.35 144.01 151.57 183.48 120.40 183.48 184.11 178.46 174.07 174.07 174.07 Others 0.11 89.48 90.59 95.14 94.49 87.46 86.50 84.01 84.30 83.77 84.23 6 Forestry Production 8.10 104.42 102.96 102.69 102.42 74.77 76.73 103.68 107.87 119.20 128.92 Overall Index 100 115.72 122.01 125.06 127.73 133.46 140.05 141.07 147.35 148.37 150.13 * Revised Estimate ** Preliminary Estimate Note: Index revised and updated from FY 2000/01 Source : Central Bureau of Statistics 8.6. Use and Sales of Chemical Fertilizer in metric ton Fiscal Year Description 2011/12 2012/13 2013/14 2014/15 2015/16* 1. Chemical Fertilizer a) Urea (Metric Ton) 99196 108553 145622 118093 89192 b) D.A.P. (Metric Ton) 43724 65722 81520 58105 42425 c) Potash (Metric Ton) 2733 2688 5046 3924 3876 Total 145653 176963 232188 188122 135493 * First eight month estimation Source: Agriculture Inputs Company Ltd and National Seeds Company Ltd.

Table 8.7 : Extension of Additional Irrigation Facilities in hectare Fiscal Year Irrigation Tyoes 2009/10 1010/2011 1011/12 1012/13 2013/14 2014/15 Total irrigation area 24880 26919 32565 19561 19310 18083 Ground water Irrigation 5507 6099 9395 2016 3514 1586 Cannels Irrigation 19014 20120 22560 17180 15135 15939 New Technology Based 359 600 610 365 661 558 Irrigation * Provisional Source: Department of Irrigation and Agriculture Development Bank Table 9.1 : Number of Cottage and Small Industry Registered and Fixed Capital Investment

Type and Number of Industry Fixed Capital Fiscal Year Investment Amount Private Firm Private Limited Partnership Total (In Rs. 10 Million) 2004/05 6972 559 499 8030 1100.73 2005/06 7322 536 372 8230 670.00 2006/07 7587 731 385 8703 1471.28 2007/08 8231 847 316 9394 823.00 2008/09 16238 943 541 17722 1532.00 2009/10 11250 1116 654 13020 1532.88 2010/11 12359 1114 1145 14618 1475.00 2011/12 15831 1225 952 18008 1727.40 2012/13 17116 1179 1078 19373 1714.00 2013/14 19226 1496 1432 22154 2116.97 2014/15 20505 1081 1456 23042 3237.00 2015/16* 9962 381 653 10996 1955.00

* Of first eight months based on primary data Source: Department of Cottage and Small Industry and Cottage and Small Industry Development Committee Table 9.2 : Detail on Industrial Area Gajendra Pokhar Industrial Area Balaju Patan Hetauda Dharan Nepalgunj Butwal Bhaktapur Birendranagar Dhankuta Narayan Total a Singh Establishment Year 1960 1963 1963 1973 1973 1974 1976 1979 1981 1984 1986

Assistance America India America India India Germany Netherland India

Area (Ropani) 670 293 2829 202 233 501 434 71 90 63 294 5680 Completed 670 293 2506 202 233 501 406 71 90 - 171 5143 Leased Out 540 220 1904 134 189 397 348 58 66 - 17 3873 Remaining - - - 6 ------13 19 Land Used by Service 130 73 602 62 44 104 58 24 - 141 1251 Area Government Area 6 4 5 1 2 3 2 2 2 1 5 33 Private Area 312 170 502 30 195 183 270 59 2 - 4 1726 Number of Industry 131 112 100 34 35 76 71 37 28 - 4 628 Industry in Operation 97 102 63 24 30 61 62 35 22 - 2 498 In the Process of 26517 9 4520 6 - 1 75 Construction Shut down 8 5 14 1 1 10 7 2 0 - 1 49 In Operation after --6------6 leasing out Other 10710 271 2 1 - - 40 Employment 3506 1586 2415 706 867 1945 1480 825 163 1 29 13523 Electricity 6000 2500 5000 1000 1000 2000 2300 900 500 - 25 21125 Consumption (KVA) Water Production/Consumpt 630 21 288 45 75 744 104 - 48 - 8 1963 ion Road (KM) 5 5 18 2 2 3 2 Source: Industrial Area Management Limited Table 9.3 : Tourist Arrival and Length of Stay Annual Average Growth Rate Year Tourist Arrival Length of Stay in Tourist Number of Tourist Arrival via Land Route Per Tourist ( In Number (In Tourist Via Air Route (In Number) Days) Percentage)

2004 Mid-Jan 338132 275428 62704 9.6 22.7 2005 Mid-Jan 385297 297335 87962 13.51 13.9 2006 Mid-Jan 375398 277346 98052 9.1 -2.6 2007 Mid-Jan 383926 283819 100107 10.2 2.3 2008 Mid-Jan 526705 360713 165992 11.96 37.2 2009 Mid-Jan 500277 374661 125616 11.78 -5 2010 Mid-Jan 509752 379622 130130 11.6 1.9 2011 Mid-Jan 602867 448800 156067 12.67 18.21 2012 Mid-Jan 736215 545221 190994 13.12 22.1 2013 Mid-Jan 803092 598258 204834 12.87 9.08 2014 Mid-Jan 797616 594848 202768 12.51 -0.7 2015 Mid-Jan 790118 585981 204137 12.44 -0.94 2016 Mid-Jan* 538970 407412 131558 13.1 -32 *Estimated Note: Number of Indian Tourist entered via land route (except Kodari Point) has not been included in this. Source: Ministry of Culture, Tourism and Civil Aviation Table 9.4 : Tourist Arrival by Purpose of Visit Travel Trekking and Meeting/ Study/Empl Entertainment Rafting Business Official Visit Religious Trip Other Unspecified Total Objective Mountaineering Conference oyment Year 2005Mid-Jan 167262 69442 13948 17088 45664 - 71893 385297 Percent43.4 18 3.6 4.4 11.9 18.7 100 2006Mid-Jan 160259 61488 21992 16859 47621 - 67179 375398 Percent42.7 16.4 5.9 4.5 12.7 17.9 100 2007Mid-Jan 145802 66931 21066 18063 59298 - 72766 383926 Percent38 17.4 5.5 15.4 19 100 2008Mid-Jan 217815 101320 65 24487 21670 52594 8019 78579 22156 526705 Percent41.4 19.2 0.012 4.6 4.1 10.0 1.5 14.9 4.2 100 2009 Mid-Jan 148180 104822 243 23039 43044 45091 6938 99391 29529 500277 Percent29.6 21 0.05 4.6 8.6 9 1.4 19.9 5.9 100 2010 Mid-Jan 140992 132929 285 22758 24518 51542 9985 186849 40098 609956 Percent23.1 21.8 0.05 3.7 4 8.5 1.6 30.6 6.6100 2011 Mid-Jan 263938 70218 730 21377 26374 101335 9627 5101 46516 57651 602867 Percent43.8 11.6 0.13.5 4.4 16.81.6 0.85 7.7 9.6100 2012 Mid-Jan 425721 86260 2181 17859 24054 63783 10836 5235 29895 70391 736215 Percent57.8 11.7 0.3 2.4 3.3 8.7 1.5 0.71 4.1 9.6100 2013 Mid-Jan 379627 105015 1750 24785 30460 109854 13646 18975 27815 91165803092 Percent47.3 13.1 0.23.1 3.8 13.71.7 2.4 3.5 11.4100 2014 Mid-Jan 410934 102001 1396 28183 37386 71610 15552 10369 54326 65858797616 Percent51.5 12.8 0.23.5 4.7 91.9 1.3 6.8 8.3100 2015 Mid-Jan 395849 97185 1580 24494 32395 98765 13432 10272 41876 74271 790118 Percent50.1 12.3 0.23.1 4.1 12.51.7 1.3 5.3 9.4100 2016 Mid-Jan 386065 12087 - 20876 21479 14996 9038 14928 59501 - 538970 Percent 71.6 2.2 - 3.9 4 2.8 1.7 2.8 11 100 *Estimated Source: Ministry of Tourism and Civil Aviation Table 9.5 : Tourist Arrival by Major Countries Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Mid-Jan Country 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* Australia 9671 7093 8231 12369 13846 15461 16243 19949 22030 202469 26406 18619 (2.50) (1.90) (2.10) (2.30) (2.80) (3.00) (2.70) (2.70) (2.70) (3.50) (3.10) (3.45) Austria 4341 3007 3474 4473 3540 3245 3389 3885 3797 3131 3320 2676 (1.10) (0.80) (0.90) (0.80) (0.70) (0.60) (0.60) (0.50) (0.50) (0.30) (0.40) (0.50) Canada 4825 4168 4733 7399 8132 8965 9322 10705 13507 12132 11610 - (1.30) (1.10) (1.20) (1.40) (1.60) (1.80) (1.50) (1.50) (1.70) (1.70) (1.50) - Chaina 13326 22377 17538 28618 35166 32272 46360 71861 113173 123805 66984 (3.50) (6.00) (4.60) (5.40) (7.00) (6.30) (7.70) (8.40) (8.90) (11.40) (15.70) (12.43) Denmark 2633 1770 1956 3157 3847 4464 4359 5955 7118 5320 5150 3159 (0.70) (0.50) (0.50) (0.60) (0.80) (0.90) (0.70) (0.80) (0.90) (0.90) (0.70) (0.59) France 18938 14108 14835 20250 22402 22154 24550 26131 28805 21842 24097 16405 (4.90) (3.80) (3.90) (3.80) (4.50) (4.30) (4.10) (3.50) (3.60) (3.50) (3.00) (3.04) Germany 16025 14345 14361 21323 18552 19246 22583 26866 30409 22263 18028 12728 (4.20) (3.80) (3.70) (4.00) (3.70) (3.80) (3.70) (3.60) (3.80) (3.50) (2.30) (2.36) India 90326 95685 93722 96010 91177 93884 120898 147037 165815 180974 135343 75124 (23.40) (25.50) (24.40) (18.20) (18.20) (18.40) (20.10) (20.00) (20.60) (23.20) (17.10) (13.94) Italy 12376 8785 7736 11243 7914 7982 10226 12257 14614 9974 10347 5609 (3.20) (2.30) (2.00) (2.10) (1.60) (1.60) (1.70) (1.70) (1.80) (1.20) (1.30) (1.04) Japan 24231 18239 22242 27058 23383 22445 23332 25856 28642 26694 25829 17613 (6.30) (4.90) (5.80) (5.10) (4.70) (4.40) (3.90) (3.50) (3.60) (3.30) (3.30) (3.27) Netherland 11160 8947 7207 10589 10900 11147 13471 16343 15445 10516 12320 7515 (2.90) (2.40) (1.90) (2.00) (2.20) (2.20) (2.20) (2.20) (1.90) (1.30) (1.60) (1.39) Spain 11767 8891 10377 15672 13851 13006 13712 15593 14549 10412 13110 6741 (3.10) (2.40) (2.70) (3.00) (2.80) (2.60) (2.30) (2.10) (1.80) (1.30) (1.70) (1.25) Switzerland 3788 3163 3559 5238 5186 5281 5320 11772 7046 4903 6447 - (1.00) (0.80) (0.90) (1.00) (1.00) (1.00) (0.90) (1.60) (0.90) (0.60) (0.80) - Sri Lanka 16124 18770 27413 49947 37817 36362 45531 59785 69476 32736 37546 44367 (4.20) (5.00) (7.10) (9.50) (7.60) (7.10) (7.60) (8.10) (8.70) (4.10) (4.80) (8.23) United States 20680 18539 19833 29783 30076 32043 36425 41971 48985 47355 49830 42687 (5.40) (4.90) (5.20) (5.70) (6.00) (6.30) (6.00) (5.70) (6.10) (5.90) (6.30) (7.92) United 24667 25151 22708 32367 33658 35382 35091 36981 41294 35668 36759 29730 Kingdom (6.40) (6.70) (5.90) (6.10) (6.70) (6.90) (5.80) (5.00) (5.10) (4.50) (4.70) (5.52) Other 113745 124737 120732 176312 171989 172846 214950 270639 214638 125203 217296 190113 (29.50) (33.20) (31.40) (33.50) (34.40) (33.90) (35.70) (36.80) (26.70) (15.70) (27.50) (35.27) Unspecified 0 0 4005 3515 4007 6043 3465 4490 5061 64218 34765 - 0.00 0.00 (1.00) (0.70) (0.80) (1.20) (0.60) (0.60) (0.60) (8.10) (4.40) - Total 385297 375398 383926 526705 500277 509956 602867 736215 803092 797616 790118 538970 (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) *Estimated Note: Figure in bracket denotes percentage. Source: Ministry of Culture, Tourism and Civil Aviation Table 9.6 : Foreign Exchange Earning from Tourism Sector Ratio to Foreign Ratio to Foreign Ratio to Total Currency Foreign Currency Foreign Earning from Currency Earned via Ratio to GDP Fiscal Year Currency Tourism Earned during Export of (In Percent) Earned (In Sector ( In Rs. Fiscal Year Goods and Percent) Million) (In Percent) Service (In Percent) 2004/05 1046.4 17.5 12.2 6.1 1.8 2005/06 955.6 15.5 10.9 4.6 1.5 2006/07 1012.5 16.1 10.7 4.5 1.4 2007/08 1865.3 30.1 17.9 6.7 2.3 2008/09 2796 40 22.8 6.5 2.8 2009/10 2813.9 44.5 24.6 8.1 2.4 2010/11 2461.1 35.8 20.2 9 1.8 2011/12 3070.4 37.7 20 4.7 2 2012/13 3421.1 39.8 18.9 4.8 2 2013/14 4637.5 45.9 20.5 5.2 2.4 2014/15 5342.9 54.4 21.6 5.3 2.5 2015/16* 2030.04 72 24.1 4.8 - *Of first eight months Source: Nepal Rastra Bank Table 9.7 : Number of Hotel and Hotel Beds Star Level Other than star Total Year (upto) Hotel Number of Bed Hotel Number of Bed Number of Hotel Number of Bed 2012 Mid-Jan 106 9323 721 21457 827 30780 2013 Mid-Jan 107 9371 746 22286 853 31657 2014 Mid-Jan 117 9506 909 25017 1026 34523 2015 Mid-Jan 118 9554 957 26625 1075 36179 2016 Mid-Jan 116 9710 960 27240 1073 36950 Source: Department of Tourism

Table 9.8 : Mountaineering Expedition Teams Amount of Royalty Number of Number of Temporary to Government (In Year Month Team Mountainers Employment Thousand) 2012 Mid-Jan 259 1951 2616 232532 2013 Mid-Jan 300 2566 1938 345161 2014 Mid-Jan 296 2266 2874 340821 2015 Mid-Jan 320 2500 2450 390180.56 2016 Mid-Jan 380 4003 1621 336745.75 Source: Ministry of Tourism and Civil Aviation Table 9.9 : Hotel Management and Tourism Training

S. No. Description 31 Years* 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16** Grand Total 1 Master of Hospitality Management 0 0 0 00 0 0 40 28 25 36 39 0 168 2 Bachelor in Hotel Management 170 37 72 77 78 80 80 80 120 121 125 168 168 1376 3 Bachelor in Travel and Tourism 22 27 23 24 30 79 80 81 80 80 84 125 126 861 4 Food Preparation and Control 1061 73 66 163 80 144 101 67 37 72 146 83 0 2093 5 Food Beverage 1366 60 27 32 34 60 21 24 10 15 33 17 0 1699 6 Housekeeping 1125 18 23 29 25 21 17 21 0 0 0 0 0 1279 7 Front Office 1159 35 18 2532 24 27 0 0 0 0 0 1320 8 Bakery Indian Sweet 82 00000 0 000 00 0 82 9 Hotel Maintenanc Training 243 0 0000 0 000 00 0 243 10 Hotel Book Keeping 42 00000 0 000 00 0 42 11 Tourist Guide 1927 74 54 72 80 136 205 181 0 163 312 227 0 3431 12 Local Guide of Various Area 285 0 0 30 0 0 68 113 35 21 18 11 14 595 13 Accomodation Operation 33 00000 0 000 00 0 33 14 Travel Agency and Ticketing 703 0 0720 0 0 0 0 0 0 0 0 775 15 Cook and Waiter for Trekers 462 0 0000 0 000 00 0 462 16 Trekking Guide 3711 592 332 362 420 512 673 953 698 968 1551 1772 38 12582 17 Trekking and Tourist guide leader 30 00000 0 000 00 0 30 18 Rafting Guide 395 0 0 0 0 68 77 72 0 34 44 66 47 803 In service training for 19 tourism/seminars/high level/public 1268 229 229 376 411 281 252 286 315 246 302 105 77 4377 relation & hospitality training 20 Mobile Team training 5023 231 98 59 317 144 249 129 0 87 67 133 175 6712 21 Home Stay Management Training 0 0 0 0 0 0 108 142 377 0 66 108 0 801 22 International Freight Forwarding Cargo 93 00000 0 000 00 0 93 23 Tourist Guide Refresher Course 76 00000 0 000 00 0 76 24 Skill Test Program 358 0 0000 0 000 00 0 358 25 Agri Tourism 0 0 00026 58 000 0 0 0 84 26 Hospitality and Food Safety Standards 0 0 0 00 26 0 0 0 0 0 418 27 471 27 Poter Guide 0000000000 00 47 47 Total 19634 1376 942 1321 1507 1601 1989 2216 1700 1832 2784 3272 719 40893 Note: 1 * Total for FY 1982/83 to FY 2003/04 2 **First eight months progress of current fiscal year Source: Ministry of Tourism and Civil Aviation Table 10.1 : Status of Energy Consumption (toe: tones of oil equivalent)

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Source (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) (000 toe) Traditional 7556 7698 7854 8015 8185 8342 8500 7032 8017 8983 9104 6069 Firewood 6732 6862 6999 7149 7301 7467 7606 6274 7153 8154 8264 5509 Agricultural 327 329 337 337 344 324 331 310 353 403 408 272 Residues Cow Dung 497 507 518 529 540 551 563 448 511 426 432 288 Commercial 1014 1093 1031 1038 1139 1464 1580 1679 1854 1958.96 5256.9 4609.77 Coal 152 243 144 193 182 286 293 348 415 320 465 192 Petroleum 705 686 709 655 775 965 1058 1083 1182 1264 4294.62 4143.46 Products Electricity 157 164 178 190 182 213 229 248 257 374.96 397.28 274.31 Renewable 46 53 59 59 64 70 75 109 166 291 291.64 291.86 Total 8616 8844 8944 9112 9388 9876 10155 8820 10037 11232.96 14652.54 10970.63 *Of first eight months Source: Ministry of Energy Note: 1. The status of energy consumption has been presented in TOE instead of Coal Energy. While doing this, 1 TOE is assumed to be equivalent of 1.454288 Coal Energy. Table 10.2 : Status of Electricity Generation and Consumption (In Million KW per Hr) Generation and Under Exchange Electricity Generation High Demand Consumption Domestic Industrial Commercial Export Other Total Agreement Loss and Import (MW) Fiscal Year Import Export 2003/04 676.40 689.80 108.10 141.20 196.70 1812.20 569.30 2381.50 515.20 185.60 141.20 2004/05 758.20 764.00 109.30 110.70 222.20 1964.40 678.40 2642.80 557.50 241.40 110.70 2005/06 805.70 785.60 120.30 96.60 224.40 2032.60 748.30 2780.90 603.28 266.22 96.60 2006/07 893.30 849.10 141.70 76.90 292.10 2253.10 798.70 3051.80 648.40 328.80 76.90 2007/08 931.35 901.09 154.40 60.38 263.40 2310.62 875.63 3185.95 721.73 425.22 60.10 2008/09 908.67 845.68 146.29 46.38 257.57 2204.59 926.20 3130.79 812.50 356.46 46.38 2009/10 1109.29 1008.37 193.12 74.48 292.57 2677.83 1011.44 3689.27 885.28 612.58 74.48 2010/11 1143.18 1012.87 204.92 31.10 294.92 2686.99 1071.38 3758.37 946.10 694.05 31.11 2011/12 1311.07 1192.06 227.06 50.00 384.50 3164.69 953.71 4119.03 947.00 800.00 50.00 2012/13 1397.46 1141.07 237.91 0.00 379.56 3156.00 756.00 4220.19 1094.62 790.14 0.00 2013/14 1526.84 1246.70 285.16 0.00 385.56 3444.26 853.83 4681.10 1200.98 1070.46 0.00 2014/15 1688.50 1362.61 302.57 3.17 415.78 3772.62 1194.04 4966.67 1291.80 1367.66 0.00 2015/16* 1057.06 666.52 168.73 1.95 250.38 2144.63 1284.27 3428.90 1385.30 1003.62 0.00 * Estimate till Mid-Feb 2016 Source: Nepal Electricity Authority Table 10.3 : Consumption of Petroleum Products

Furnace Oil Total Fiscal Year Petrol (KL) Diesel (KL) Petrol (KL) A.T.F. (KL) L.D.O. (KL) LPG (MT) (KL) Excluding LPG

2015/16* 88423 254103 5870 33239 - - 381635 73440 2014/15 283567 901393 18628 139404 - - 1342992 258299 2013/14 251451 811100 19064 123527 - - 1205142 232660 2012/13 221676 716747 24721 115786 258 2450 1081638 207038 2011/12 199749 648513 41808 108908 0 435 999413 181411 2010/11 187641 655128 49495 101314 227 1415 995220 159286 2009/10 162275 612505 55788 82631 238 2589 916026 141171 2008/09 124169 446468 70089 68935 377 2171 712209 115813 2007/08 100842 302706 155216 68938 306 2919 630927 96837 2006/07 101912 306687 197850 63778 179 4558 674964 93562 2005/06 80989 294329 226637 64335 290 3695 670275 81005 Total 1802694 5949679 865166 970795 1875 20232 9610441 1640 522 * Of first eight months Source:Nepal Oil Corporation Table 11.1 : Extension of Road Facilities In Kilometre Road Fiscal Year Black-Topped Gravelled Fair Weathered Total 2004/05 4,911 4,707 7,661 17,279 2005/06 5,048 4,727 7,658 17,433 2006/07 5,402 4,529 7,851 17,782 2007/08 5,845 4,711 8,591 19,147 2008/09 6,094 4,772 8,892 19,758 2009/10 6,669 5,007 9,417 21,093 2010/11 9,902 5,670 7,637 23,209 2011/12 10,192 5,787 8,410 24,389 2012/13 10,659 5,940 8,666 25,265 2013/14 11,197 6,086 9,163 26,446 2014/15 11,798 6,287 9,411 27,496 2015/16* 11,890 6,419 9,681 27,990 * First Eight Months Source : Department of Road.

Table: 11.2 (a) : Number of Vehicles Registered In Numbers Fiscal Year Type 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Bus/Minibus 2190 1459 1231 2436 4938 2980 3255 4591 4188 6007 3194 Truck/Tanker 2263 1730 2104 3643 5524 9169 1333 3332 2789 4236 1745 Jeep/Car 5114 3015 3127 6857 13268 8510 8711 9595 11372 13560 10867 *First Eight Months Source : Department of Transport Management. Table 11.2 (b) : Vechiles Registration

Crane/Dozer Minibus/Min Car/Jeep Tractor/ Total as Fiscal year Bus /Exczvator/ Pickup Microbus Tempo Motorcycle Others Total iTruck /Van PowerTiller of Now Truck 1990/91 458 437 834 2353 0 0 856 5697 965 1549 13149 89527 1991/92 531 455 1524 2637 0 0 1207 9336 1342 435 17467 106994 1992/93 606 185 1491 2266 0 0 62 8513 751 381 14255 121249 1993/94 1168 121 1740 3049 0 0 213 10550 1396 372 18609 139858 1994/95 850 83 1629 3043 0 0 241 11401 1814 353 19414 159272 1995/96 486 82 1151 3974 0 0 117 12357 2183 58 20408 179680 1996/97 608 175 907 4521 0 0 185 15739 1278 352 23765 203445 1997/98 899 130 1291 4139 0 0 344 12306 1265 51 20425 223870 1998/99 872 19 978 2507 0 0 388 17090 2248 37 24139 248009 1999/2000 494 122 829 3647 0 0 789 19755 2542 102 28280 276289 2000/01 1203 250 1271 5152 0 0 232 29291 3519 77 40995 317284 2001/02 868 475 1798 4379 0 0 248 36117 3189 86 47160 364444 2002/03 432 298 1212 2906 581 232 17 29404 2485 43 37610 402054 2003/04 732 237 1477 7079 478 884 16 26547 2191 58 39699 441753 2004/05 753 285 1592 4781 0 584 48 31273 1374 21 40711 482464 2005/06 1528 663 2263 5114 36 66 60 44610 635 - 54975 537439 2006/07 1564 806 3278 5156 736 138 12 72568 2942 1535 88735 626174 2007/08 1419 1179 3594 4741 1588 31 18 68667 3297 206 84740 710914 2008/09 1843 593 3643 6857 1287 128 20 83334 4663 202 102570 813484 2009/10 1888 780 4524 12268 1975 145 9 168707 11460 31 201787 1015271 20010/11 1610 1370 1969 8510 3087 115 2 138907 7937 133 163640 1178911 2011/12 2085 1170 1333 8711 2981 155 10 145135 8413 91 170084 1348995 2012/13 3263 1328 3332 9595 5422 158 57 175381 9795 152 208483 1557478 2013/14 2776 1412 2789 11372 5668 178 17 163945 10070 116 198343 1755821 2014/15 3737 2270 4236 13560 6057 932 1541 196383 10524 343 239583 1995404 2015/16* 2125 1069 1745 10867 3734 134 13 123373 4675 47 147782 2143186 Total 32673 14925 50685 142317 29896 3746 6709 1533013 98278 6784 2066808 * First eight months Table 13.1: Technical and Vocational Education Programs Fiscal Years Program Indicator Unit 2012/13 2013/14 2014/15 2015/16* Regular Teaching Constituent Technical SLC Enrollment Person 1278 1084 1150 959 Production Person 899 907 372 253 Diploma Certificate level Enrollment Person 1220 1275 1549 1202 Production Person 640 685 505 310 Technical education in 73 Enrollment Person 2645 2421 3067 3334 community Schools Production Person 1902 1603 1603 '- On Community School Side Commencement of Technical No 73 73 73 73 Technical Education in SLC Grade 9 and 10 Affiliations Granted Private Schools Technical SLC Enrollment Person 10040 12880 13258 15167 Production Person 654 4514 7143 7143 Diploma and Certificate Enrollment Person 11910 11240 12211 14432 Level Production Person 5727 7772 5447 6913 Technical School/Polytechnic Extension Affiliated School Side School No. 18 17 13 16 Extension Affiliation Granted Private School 1) Permanent Affiliation- School No. 4 50\60 124\20 - Technical SLC-Diploma Extension Certificate Level 2) Granting Short-Term Developing No. 1 44 118 - Affiliation and Approval Skills Vocational Training Program Assessing skills after Developing Person 1440 3100 3060 100 providing short-term Skills Training Vocational Training for Developing Person /Week 3014 3277 - - Livelihood Skills Scholarship Programs for Target Group Diploma/Certificate Level Social Person 225 225 225 225 Security Technical SLC Level Social Person 150 150 125 125 Security Community Service 17743 - Human Health Service Service Person 11338 14325 14325 - Veterinary Service Service No. 7875 11500 11500 '- Technical Service and Service Person 2180 4550 4550 '- Counseling to Farmers Health Camp Mobile No. 0 9 8 '- Service Skill Assessment and Verification Person 36159 55491 59996 13940 Verification Training for Technical Verification Person - 3382 3296 883 Trainners * Of first eight months Source: Ministry of Education Table 13.2: Ratio of Student Per Teacher (Academic Year 2015) Per Teacher Student Ratio Private /Government Total Only Government (All Community Schools) Development Region Lower Lower Primary Secondary Primary Secondary Secondary Secondary Nepal 22 35 24 25 42 31 Eastern Region 20 36 27 23 42 32 Mountain 16 28 24 17 29 24 Hill 15 31 25 16 32 26 Terai 26 44 29 33 58 40 Central Region 26 31 19 31 42 29 Mountain 14 28 22 15 29 24 Hill 16 30 21 18 35 28 Terai 50 60 37 55 73 43 Valley 17 19 11 16 21 16 Western Region 15 29 19 16 34 24 Mountain 3 7 5 3 8 5 Hill 12 27 19 12 29 22 Terai 23 35 21 30 48 32 Mid-Western Region 28 51 38 29 55 43 Mountain 21 42 35 23 43 36 Hill 30 53 43 31 56 44 Terai 28 51 34 30 58 47 Far-Western Region 23 42 39 26 43 38 Mountain 17 30 27 18 31 27 Hill 22 33 28 24 34 29 Terai 31 66 66 37 65 63

Source: Department of Education Table 13.3 : Region-Wise Detail of Affiliated Higher Secondary Schools

Development Geographical 2013 2014 2015 Region Region Community Private 10+2 Campus Total Community Private 10+2 Campus Total Community Private 10+2 Campus Total Mountain 64 2 0 4 70 66 2 0 4 72 66 3 0 4 73 Hill 262 10 3 4 279 262 10 3 4 279 262 12 3 4 281 Eastern Terai 233 101 28 15 377 233 110 28 15 386 234 112 28 13 387 Total 559 113 31 23 726 561 122 31 23 737 562 127 31 21 741 Mountain 94 1 0 2 97 95 1 0 2 98 106 0 1 1 108 Hill 403 233 81 48 765 408 241 81 48 778 410 237 75 47 769 Central Terai 270 59 24 16 369 272 62 24 16 374 261 64 24 15 364 Total 767 293 105 66 1231 775 304 105 66 1250 777 301 100 63 1241 Mountain 400044000440004 Hill 503 90 7 20 620 510 93 7 20 630 522 98 6 18 644 Western Terai 140 65 5 11 221 144 69 5 11 229 144 66 8 10 228 Total 647 155 12 31 845 658 162 12 31 863 670 164 14 28 876 Mountain 56 1 0 2 59 59 1 0 2 62 60 1 0 0 61 Hill 188 10 0 3 201 191 11 0 3 205 191 11 0 0 202 Mid Western Terai 98 40 5 3 146 98 41 5 3 147 99 42 5 3 149 Total 342 51 5 8 406 348 53 5 8 414 350 54 5 3 412 Mountain 80 0 0 1 81 82 0 0 1 83 83 0 0 1 84 Hill 140 4 1 2 147 142 1 2 149 143 4 1 3 151 Far Western Terai 113 37 5 5 160 113 40 5 5 163 115 41 4 4 164 Total 133 41 6 8 388 337 44 6 8 395 341 45 5 8 399 Grand Total 2648 653 159 136 3596 2679 685 159 136 3659 2699 692 155 123 3669 Source: Higher Secondary Education Board Table 13.4 (a) : Numeric Detail of Teachers Training at the Basic levels (Academic Year 2015)

Primary Lower Secondary Basic Training Status Female Male Total Female Male Total Female Male Total Trained 76178 104571 180749 11905 31358 43263 88083 135929 224012 Percent 94.77 95.20 95.02 80.15 81.56 81.17 92.49 91.66 91.99 Partially Trained 1644 3006 4650 463 1634 2097 2107 4640 6747 Percent 2.05 2.74 2.44 3.12 4.25 3.93 2.21 3.13 2.77 Untrained 2556 2264 4820 2485 5456 7941 5041 7720 12761 Percent 3.18 2.06 2.53 16.73 14.19 14.90 5.29 5.21 5.24 Total 80378 109841 190219 14853 38448 53301 95231 148289 243520

Source:Department of Education

Table 13.4 (b) : Numeric Detail of Teachers Training at the Secondary Levels (Academic Year 2015)

Secondary (9-10) Higher Secondary (11-12) Secondary (9-12) Training Status Female Male Total Female Male Total Female Male Total Trained 6470 30622 37092 2382 12062 14444 8852 42684 51536 Percent 91.98 93.77 93.45 76.40 73.34 73.83 87.19 86.97 Partially Trained 276 978 1254 170 957 1127 446 1935 2381 Percent 3.92 2.99 3.16 5.45 5.82 5.76 4.39 3.94 4.02 Untrained 288 1057 1345 566 3427 3993 854 4484 5338 Percent 4.09 3.24 3.39 18.15 20.84 20.41 8.41 9.13 9.01 Total 7034 32657 39691 3118 16446 19564 10152 49103 59255

Source: Department of Education Table 13.5: Number of Teachers (Primary, Lower Secondary and Secondary School) Primary Lower Secondary Secondary Grant Total Academic Year Total Trained Total Trained Total Trained Total Trained 2003 112360 19535 29895 7979 23297 9286 165552 36800 2004 101483 30967 25962 7818 20232 9727 147677 48512 2005 91679 34857 22817 7813 16130 9635 130626 52305 2006 95503 57191 26716 12398 19386 12909 141605 82498 2007 116846 77630 27903 14606 20674 14478 165423 106714 2008 143574 96298 37068 20035 26925 19202 207567 135535 2009 153536 113096 40259 23021 29109 23193 222904 159310 2010 167212 134991 46032 29265 33835 28780 247083 193036 2011 173714 160788 48848 37745 35675 30737 258237 229470 2012 178534 166765 50389 40013 37048 32286 265971 239064 2013 183922 172117 51653 41271 38363 33677 273938 247065 2014 187684 177217 52348 42182 38858 35128 278890 254527 2015* 190219 180749 53302 43263 39691 37092 283212 261104 Partial Trained Teachers have not been included in Trained Teachers

* Flash 1 Report, 2015 Source : Ministry of Education Table 13.6 : Number of Schools and Students (Primary, Lower Secondary and Secondary) Students no. (In thousand) Primary Lower Secondary Secondary Academic Year School Student School Student School Student 2002 26638 3928 7917 1133 4541 458 2003 27268 4025 8249 1210 4741 511 2004 24746 4030 7436 1445 4547 588 2005 27525 4502 8471 1375 5039 587 2006 27901 4515 8880 1301 5329 679 2007 29220 4419 9739 1444 5894 671 2008 30924 4782 10636 1467 6516 715 2009 31655 4901 11341 1604 6928 790 2010 32684 4952 11939 1700 7559 812 2011 33881 4783 13791 1813 8233 849 2012 34298 4577 14447 1823 8416 878 2013 34743 4402 14867 1828 8726 897 2014 34335 4335 14952 1835 8825 901 2015 34362 4265 15091 1863 8968 939 Source : Ministry of Education Table 13.7 (a) : Region-Wise distribution of Primary (1-5) Schools, Students and Teachers Under Public, Community and Private Sector

School Types by Academic Year 2011 Academic Year 2012 Academic Year 2013 Academic Year 2014 Academic Year 2015 Secotral Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers Distribution NEPAL 33881 4782885 173714 34298 4576693 178534 34743 4401780 183922 34335 4335355 187684 34362 4264942 190219 PUBLIC 24067 3580398 102350 24434 3409998 101950 24875 3289308 101950 24687 3270037 101950 24687 3270037 101950 COMMUNITY 4831 531281 29321 4672 475451 30429 4592 434735 34913 4293 395622 37972 4161 341389 40023 PRIVATE 4983 671206 42043 5192 691244 46155 5276 677737 47059 5355 669696 47762 5514 653516 48246 Eastern Region 7291 996777 36162 7361 892194 36966 7485 849772 38073 7468 831603 38831 7468 811457 39360 a. Public 5461 807374 23627 5466 698036 23627 5577 685063 23627 5578 672653 23627 5578 672653 23627 b. Community 872 83173 5575 875 71702 5176 861 62873 6126 827 57063 6764 820 42684 7236 c. Private 958 106230 6960 1020 122456 8163 1047 101836 8320 1063 101887 8440 1070 96120 8497 Central Region 10027 1641005 53081 10077 1614518 53831 10260 1555982 55449 9944 1532127 56389 9841 1518637 57408 a. Public 6483 1164204 29369 6664 1164470 29369 6864 1134874 29369 6743 1125369 29369 6743 1125369 29369 b. Community 1429 182646 7286 1292 156833 7253 1266 146508 8536 1037 135847 9265 951 118248 9960 c. Private 2115 294155 16426 2121 293215 17209 2130 274600 17544 2164 270911 17755 2147 275020 18079 Western Region 7530 844166 42354 7550 803705 45090 7603 768981 46471 7563 765251 47323 7591 743568 48103 a. Public 5895 628316 23896 5867 582987 23496 5911 544955 23496 5867 547679 23496 5867 547679 23496 b. Community 504 35210 7270 530 36837 7358 509 31144 8445 499 26447 9122 463 13101 9705 c. Private 1131 180640 11188 1153 183881 14236 1183 192882 14530 1197 191125 14705 1261 182788 14902 Mid-Western Region 5252 778559 23137 5350 750396 23667 5417 24373 5392 720269 25001 5481 711329 25171 a. Public 3681 587728 14923 3775 570899 14923 3845 548835 14923 3830 551863 14923 3830 551863 14923 b. Community 1129 127934 4463 1108 116371 5228 1095 105806 5869 1075 96750 6402 1066 91565 6609 c. Private 442 62897 3751 467 63126 3516 477 74013 3581 487 71656 3676 585 67901 3639 Far-Western Region 3781 522378 18980 3960 515880 18980 3978 498391 19556 3968 486105 20140 3981 479951 20177 a. Public 2547 392776 10535 2662 393606 10535 2678 375581 10535 2669 372473 10535 2669 372473 10535 b. Community 897 102318 4727 867 93708 5414 861 88404 5937 855 79515 6419 861 75791 6513 c. Private 337 27284 3718 431 28566 3031 439 34406 3084 444 34117 3186 451 31687 3129 Source : Ministry of Education Table 13.7 (b) : Region-Wise Distribution of Lower Secondary (6-8) Schools, Students and Teachers Under Public, Community and Private Sector

School Types by Academic Year 2011 Academic Year 2012 Academic Year 2013 Academic Year 2014 Academic Year 2015 Secotral Distribution Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers

NEPAL 13791 1812680 48848 14447 1823192 50389 14867 1828351 51653 14952 1835313 52348 15091 1862873 53302

PUBLIC 6442 1176230 25772 6797 1158238 25772 7000 1180263 25772 7082 1203027 25773 7082 1203027 25772

COMMUNITY 4032 370417 8628 4053 378929 9496 4086 364395 10523 4024 341212 10998 4133 358589 11313

PRIVATE 3317 266033 14448 3597 286025 15121 3781 283693 15358 3846 291074 15577 3876 301257 16217

Eastern Region 2855 401604 9694 2974 384071 10000 3094 384103 10252 3121 378361 10387 3108 380243 10562 a. Public 1463 286826 6138 1495 261430 6138 1543 276051 6138 1577 269929 6138 1577 269929 6138 b. Community 851 79000 1706 877 79790 1818 869 73267 2043 856 72184 2150 850 73721 2215 c. Private 541 35778 1850 602 42851 2044 682 34785 2071 688 36248 2099 681 36593 2209 Central Region 4367 561119 17537 4575 573388 17768 4690 567964 18215 4732 569284 18471 4742 579558 18843 a. Public 1839 339247 7360 1965 341973 7360 2060 337802 7360 2105 356078 7360 2105 356078 7360 b. Community 926 87286 2063 915 89032 2215 917 87134 2529 889 70678 2662 908 72817 2759 c. Private 1602 134586 8114 1695 142383 8193 1713 143028 8326 1738 142528 8449 1729 150663 8724 Western Region 3010 361384 11530 3109 365599 12004 3190 363619 12300 3202 367730 12465 3307 371202 12690 a. Public 1554 228135 6066 1567 224610 6066 1601 224601 6066 1589 227228 6066 1589 227228 6066 b. Community 679 62560 2006 718 63311 2054 711 60093 2288 703 60658 2398 805 63494 2468 c. Private 777 70689 3458 824 77678 3884 878 78925 3946 910 79844 4001 913 80480 4156 Mid-Western Region 1946 296581 5348 2045 297328 5695 2130 5839 2129 307467 5914 2174 313319 6014 a. Public 842 200420 3415 943 200170 3415 967 209052 3415 981 212161 3415 981 212161 3415 b. Community 870 79015 1201 851 82176 1525 886 79251 1656 870 73257 1721 872 78405 1764 c. Private 234 17146 732 251 14982 755 277 16663 768 278 22049 778 321 22753 835 Far-Western Region 1613 191992 4739 1744 202806 4922 1763 207699 5047 1768 212471 5111 1760 218551 5193 a. Public 744 121602 2793 827 130055 2793 829 132757 2793 830 137631 2794 830 137631 2793 b. Community 706 62556 1652 692 64620 1884 703 64650 2007 706 64435 2067 698 70152 2107 c. Private 163 7834 294 225 8131 245 231 10292 247 232 10405 250 232 10768 293

Source : Ministry of Education Table 13.7 (c): Region-Wise Distribution of Secondary (9-10) Schools, Students and Teachers Under Public, Community and Private Sector

School Types by Secotral Academic Year 2011 Academic Year 2012 Academic Year 2013 Academic Year 2014 Academic Year 2015 Distribution Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers Schools Students Teachers NEPAL 8233 848569 35675 8416 878047 51131 8726 896919 38363 8825 900585 38858 8968 938897 39691

PUBLIC 3398 532741 19584 3604 548045 19584 3734 541700 19584 3802 539313 19584 3802 539313 19584

COMMUNITY 2141 175413 3241 2201 174100 17464 2195 185314 4238 2209 189143 4541 2326 218407 4750

PRIVATE 2694 140415 12850 2611 155902 14083 2797 169905 14541 2814 172129 14733 2840 181177 15357

Eastern Region 1601 188469 6669 1629 184327 8575 1677 191568 7010 1708 188908 7099 1713 190159 7242

a. Public 738 130606 4424 767 122285 4424 771 126085 4424 795 121416 4424 795 121416 4424

b. Community 454 39238 625 471 38453 2345 464 39778 724 465 41385 790 469 42518 835

c. Private 409 18625 1620 391 23589 1806 442 25705 1862 448 26107 1885 449 26225 1983

Central Region 2942 271906 13873 2953 288367 22739 3084 289094 15333 3122 288856 15538 3139 300094 15896

a. Public 950 154430 5868 1025 166751 5868 1119 162564 5868 1155 159343 5868 1155 159343 5868

b. Community 545 42707 950 568 41426 8944 575 45081 1277 558 45983 1371 566 52974 1443

c. Private 1447 74769 7055 1360 80190 7927 1390 81449 8188 1409 83530 8299 1418 87777 8585

Western Region 1890 182063 9041 1918 181884 12785 1988 183546 9586 2012 186413 9708 2096 197913 9905

a. Public 943 120793 4967 956 119430 4967 972 118463 4967 974 119916 4967 974 119916 4967

b. Community 373 24772 727 395 24153 4289 365 24415 976 396 24740 1051 478 33250 1102

c. Private 574 36498 3347 567 38301 3529 651 40668 3643 642 41757 3690 644 44747 3836

Mid-Western Region 973 120895 3394 1020 127877 4156 1062 3611 1062 133346 3657 1094 136847 3733

a. Public 427 76364 2311 471 80142 2311 483 78347 2311 487 81185 2311 487 81185 2311

b. Community 391 37211 399 385 38048 1176 397 39524 608 393 40479 645 407 43760 666

c. Private 155 7320 684 164 9687 669 182 12778 692 182 11682 701 200 11902 756

Far-Western Region 827 85236 2698 896 95592 2876 915 102062 2823 921 103062 2856 926 113884 2915

a. Public 340 50548 2014 385 59437 2014 389 56241 2014 391 57453 2014 391 57453 2014

b. Community 378 31485 540 382 32020 710 394 36516 653 397 36556 684 406 45905 704

c. Private 109 3203 144 129 4135 152 132 9305 156 133 9053 158 129 10526 197

* Flash 1 Report, 2014

Source : Ministry of Education Table 13.8 : Number of Students appeared and Passed in SLC

Year Appeared No. Passed No. Passed % 2003 175418 81008 46.18 2004 216303 83747 38.72 2005 225031 104653 46.51 2006 274210 160802 58.64 2007 307078 195689 63.73 2008 342632 234602 68.47 2009 385146 247689 64.31 2010 397559 220766 55.53 2011 419121 199714 47.65 2012 403936 167935 41.57 2013 394933 173436 43.92 2014 405338 192267 47.43 2015 456136 Result yet to be published Source: Ministry of Education Table 13.9 : Number of Students Enrolled in Higher Level of Education Fiscal Year Educational Institution 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 A. Tribhuvan University 1. Engineering 4094 4050 4571 5098 5017 5513 5368 5580 5752 13207 12353 3338 2. Agriculture & Animal Science 570 643 668 676 817 860 1181 1201 1092 1453 1472 2212 3. Medicine 1685 1543 1570 1719 1888 1955 1945 1993 2136 7128 5421 1291 4. Forestry 441 457 573 889 482 484 520 490 636 724 666 1060 5. Science & Technology 11951 12218 13441 14120 15229 17066 15016 11016 12851 21777 16251 16315 Total of Technical Education 18741 18891 20823 22502 23433 25878 24030 20280 22467 44289 36163 24216 6. Law 898 830 1214 1052 1609 2347 2583 2134 3391 5515 2235 6406 7. Management 31341 36578 41803 33311 44854 39194 45941 27686 32200 198088 130843 130161 8. Education 18814 25394 32915 24165 42204 43508 54828 30151 49056 247316 170097 90130 9. Humanities & Social Science 49345 51084 56113 49632 59521 60667 59498 36029 36785 109229 66003 48077 b. General Education 100398 113886 132045 108160 148188 145716 162850 96000 121432 560148 369178 274774 c. Affiliated Total ------229947 273349 141181 104188 Grand Total 119149 132777 152868 130662 171621 171594 186880 116280 373846 604437 405341 298990 B. Nepal Sanskrit University 3610 2958 2667 3774 3339 5446 5436 - 3772 4039 3862 3412 C. Kathmandu University 1. School of Science 786 867 538 612 676 697 663 - 829 965 1060 1194 2. School of Engineering 521 523 511 533 569 632 884 - 1058 1140 1182 1208 3. School of Management 120 158 782 1127 1305 1355 1287 - 1760 1825 1965 2136 4. School of Education 128 143 338 351 387 381 336 - 488 556 686 767 5. School of Arts 98 143 510 665 725 728 687 - 913 969 1091 1168 6. School of Medical Science 586 642 3603 3819 4460 4944 4522 - 6262 7882 8725 9336 7. Law 43 Total 2239 2476 6282 7107 8122 8737 8379 11200 11310 13337 14709 15852 D. Purbanchal University 1. Humanities - 1978 957 1319 1228 719 728 728 751 746 663 591 2. Management - 1218 2412 3684 4026 4078 6579 6579 7947 8413 8447 7996 3. Education - 2588 1436 2293 3013 3469 5955 5955 6967 5786 4692 3546 4. Science & Technology - 200 282 3958 4575 4646 5759 5759 6054 6200 1705 1362 5. Law - - - 399 377 343 692 692 822 799 786 810 6. Agriculture - - 656 ------421 755 7. Engineering ------3964 3876 8. Medical (Nursing, BPH) - - - 1158 1659 2286 9978 9978 4426 3776 3763 4603 Total - 5984 5743 12811 14878 15541 29691 29691 26967 25720 24441 23539 E. Pokhara University 1. Science & Techonology 362 2406 2516 2353 1727 3416 5027 6356 7355 9958 9958 2199 2. Management 2064 2159 2974 2690 3722 4127 8030 10097 12674 15043 15048 15037 3. Engineering 2119 ------7956 4. Humanities & Social Science 69 101 125 100 120 95 1174 213 200 281 284 339 Total 4614 4666 5615 5143 5569 7638 13171 16666 20229 25282 25290 25531 F. Lumbini Buddhist University ------17 17 116 256 215 G. B.P. Health Institute of ------Health Sciences 1192 1155 1155 1435 351 H. National Academy of Medical ------Sciences (Bir Hospital) 203 203 298 465 546 I. Patan health Science Academy ------60 65 60 241 295 J. Mid-Western University ------2472 1944 2522 K. Agriculture and Forestry University ------180 446 1565 L. Far-Western University ------951 2461 1829

Grand Total (A+B+C+D+E+F+G+H+I) 136000 121670 173175 159497 203529 208956 243557 179284 437564 678047 480891 374647

Source : Tribhuvan University, Mahendra Sanskrit University, Kathmandu University, Eastern University, Pokhara University and University Grant Commission Table 13.10 : Number of Graduate Students in TU Fiscal Year Indicators of Study and Research Programme 2008/09 2009/10 20010/11 2011/12 2012/13 2013/14 2014/15 1. Institute of Engineering a) Certificate level 2638 3850 463 624 554 650 - b) Diploma level 5208 8832 1053 1022 1089 1655 1924 c) Master level 179 357 119 130 113 181 160 c) Ph.D. - 4 4 Total 8025 13039 1635 1776 1756 2490 2088 2. Institute of Agriculture and Animal Science a) Certificate level - -- b) Diploma level 124 125 128 172 292 144 183 c) Master level 57 71 81 81 97 116 81 d) Phd - - - 2 2 3 5 Total 181 196 209 255 391 263 269 3. Institute of Medicine a) Lower level - 41 - - - -- b) Certificate level 289 598 303 303 263 289 286 c) Diploma level 182 175 481 400 920 890 846 d) Master level 109 170 131 164 128 153 188 e) M. Phil 0 1 1 - - - 3 Total 580 985 916 867 1311 1332 1323 4. Institute of Foresty a) Certificate level 74 82 79 87 - 51 - b) Diploma level 59 82 85 56 96 84 122 c) Master level 12 22 24 29 26 41 10 d) Phd - - - 2 2 - 1 Total 145 186 188 174 124 176 133 5. Institute of Science and Technology a) Certificate level 1759 1971 1674 1781 929 -- b) Diploma level 1305 1971 2337 2532 2947 2429 3869 c) Master level 377 575 692 764 993 1183 1206 d) Phd 6 7 10 4 - 3 11 Total 3447 4524 4713 5081 4869 3615 5086 6. Faculty of Law a) Certificate level 0 25 29 - - -- b) Diploma level 329 255 215 223 477 445 523 c) Master level 41 32 30 23 47 35 46 d) Phd 2 1 1 - - 3 1 Total 372 313 246 246 524 483 570 7. Faculty of Management a) Certificate level 3415 3739 1703 1386 1504 - - b) Diploma level 6187 9326 8652 14276 14976 11576 13369 c) Master level 1110 2360 2676 1288 4004 2875 2601 d) M. Phil 21 30 23 16 28 52 10 e) Phd 4 7 6 4 7 5 5 Total 10737 15462 13060 16970 20519 14508 15985 8. Faculty of Education a) Certificate level 3155 3249 2859 3793 2798 - - b) Diploma level 5455 12193 13089 22427 21073 16708 20941 c) Master level 422 1151 1477 1931 5272 3529 3699 d) M. Phil 7 9 9 11 12 24 9 e) Phd 4 2 3 4 2 2 6 Total 9043 16604 17437 28166 29157 20263 24655 9. Faculty of Humanities and Social Sciences a) Other 1921 653 - - - 32 - b) Certificate level 5919 6239 4654 5697 4654 -- c) Diploma level 5891 7160 6515 9605 8491 6547 7558 d) Master level 1909 3620 3283 2361 6471 4337 4162 e) M. Phil 0 10 - - - 91 64 f) Phd 37 32 40 32 - 45 43 g) Others 246 Total 15677 17714 14492 17695 19616 11052 12073 Source : Ministry of Education/Tribhuvan University. Table 13.11: Major Health Indicators and Achievements Achievements Target Health Indicators Unit 1991 1996 2001 2006 2009 20112015 2016 Maternal mortality ratio (per Person 539.0 539.0 415.0 281.0 229.0 250.0190.0 190.0 100,000 live births) Total Fertility Rate Person 5.3 4.6 4.1 3.1 2.9 3.02.3 2.3 Adolescent birth rate (births per Percentage - 127.0 110.0 98.0 - 98.071.0 70.0 1,000 women aged 15-19 years) Contraceptive prevalence rate Percentage 24.0 26.0 35.0 44.0 45.1 48.047.0 50.0 (modern methods) Under-five Child mortality rate (per Person 158.0 118.3 91.0 61.0 50.0 55.038.0 37.0 1,000 live births) Proportion of one-year-old children Percentage 42.0 - 71.0 85.0 85.6 -88.0 90.0 immunised against measles Infant mortality rate (per 1,000 live Person 106.0 78.5 64.0 48.0 41.0 44.033.0 32.0 births) New born infant mortality rate (Per Person - 49.9 43.0 33.0 20.0 30.023.0 22.0 1000 live births) New HIV Infection Number Person ------1483.0 1200.0 Access of PMTCT Service to Percentage ------30.0 40.0 Pregnant Women New TB Case Detected Percentage - 48.0 70.0 65.0 71.0 75.0 82.0 83.0 Proportion of TB cases cured under directly observed treatment short Percentage - 79.0 89.0 89.0 88.0 89.0 90.0 90.0 course (DOTS) Annual Malaria Infected Number Person ------1380.0 1000.0 Proportions of Birth Attended by Percentage 7.0 - 11.0 19.0 - 36.055.0 60.0 Skilled Birth Attendant Source: Ministry of Health/NDHS Survey Table 13.12 : District-Wise Statistics of Child Care Homes and benefited Childrens

No. of Child S.N. Distirct Benefited Boys Benefited Girls Total Care Homes 1Sankhuwasabha 6 19 23 42 2 Saptari 1 19 0 19 3 Illam 1 19 2 21 4Udayapur 1 19 4 23 5Jhapa 6 19 45 64 6Morang 4 19 48 67 7Dhankuta 1 19 6 25 8Siraha 1 19 5 24 9Sunsari 5 19 96 115 10Chitawan 30 477 570 1047 11 Dolakha 1 8 0 8 12Parsa 5 132 0 132 13Sarlahi 5 53 44 97 14 Mahottari 1 18 12 30 15Sindhuli 3 65 62 127 16Bara 1 8 8 16 17Dhading 8 143 110 253 18Kathmandu 201 2933 3321 6254 19Rautahat 1 22 3 25 20Sindhupalchok 4 48 42 90 21Makawanpur 10 141 117 258 22Kabhre 11 148 194 342 23Bhaktapur 22 420 286 706 24Dhanusa 1 2 6 8 25Lalitpur 130 1427 1641 3068 26Nuwakot 1 29 12 41 27Lamjung 2 13 18 31 28Palpa 1 15 14 29 29 Kapilvastu 1 22 0 22 30Myagdi 1 4 6 10 31Tanahu 2 12 12 24 32Kaski 59 687 769 1456 33 Nawalparasi 3 122 93 215 34Rupandehi 8 170 122 292 35Surkhet 5 147 156 303 36 Dailekh 1 2 3 5 37Humla 4 20 76 96 38Banke 10 127 88 215 39Dang 3 204 256 460 40Bardiya 2 53 32 85 41Jumla 1 0 12 12 42 Kailali 7 52 69 121 43Achham 1 12 6 18 44Kanchanpur 5 82 22 104 Total 577 7989 8411 16400 Source: Ministry of Women, Children and Social Welfare/Kewakas, 2072 Table 13.13 : Details of benefited Senior Citizens from Elderly Home in FY 2014/15 S.N. Elderly Homes Female Male Total 1 Samajkalyan Kendra Elderly Home, Pashupati Kathmandu 116 95 211 2 Shree Galeshwordham Senior Citizen Home, Myagdi 48 5 53 3 Tarakeshwor Elderly home, Aslewa, Gulmi 46 5 51 4 Pokhara Elderly Home, Kaski 35 24 59 5 Radhakrishna Elderly Home, Lekhnath, Kaski 30 18 48 6 Radha Damodar Senior Citizen Gram, Keladighat, Syangja 23 9 32 7 KhoriyaGhat Senior Citizen Gram, Syangja 6 6 12 Siddababa Durga Bhawani Shiva kumari Saiju Elderly Home Butawal, 6 4 10 8 Rupandehi 9 Shree Satya Sai Elderly Home, Basantapur, Rupandehi 9 5 14 10 Lions Sarbodaya Senior Citizen Sewagram, Tarkughat, Lamjung 5 5 10 11 Padambhuwaneshowri Elderly Home, Sarlahi 17 23 40 12 Samajkalyan Kendra, Devghat, Tanahu 24 10 34 13 Nisahaya Sewa Sadan, Baneshwor, Kathmandu 37 5 42 14 Nijanand Elderly Home Taudaha, Kathmandu 13 2 15 15 Bridashram Service Committee, Sindhupalchok 5 9 14 16 Matatirtha Elderly Home, Kathmandu 22 — 22 17 Vishranti Mandir Mulghat, Dhankuta 27 16 43 18 Women and Elderly Service Centre, Kanchanpur 32 18 50 19 Bheri Elderly and Disable Service Centre, Banke 4 5 9 20 Om Elderly Home, Hetauda, Makawanpur 11 17 28 21 Virateshwor Elderly Home Service Committee, Morang 25 22 47 22 Janaki Elderly Home, Janakpur 18 — 18 23 Mai Bhagwati Elderly Home, Illam 8 4 12 24 Senior Citizen Samman Elderly Home, Patalaiya, Bara 6 4 10 25 Shree Ram Shanti Nikunja Mahila Sewa Anath Ashram, Sunsari 12 — 12 26 Ram Janaki Elderly Home, Sunsari 10 — 10 27 Manakamana Senior Citizen Gram, Sankhuwasabha 16 20 36 28 Prashanti Elderly Home, Uttarganga, Surkhet 7 6 13 29 Manav Kalyan Elderly Home Service Committee, Gulmi 5 2 7 Total 623 339 962 Source: Ministry of Women, Children and Social Welfare Table 13.14 : Extension of Drinking Water and Sewerage Facilities Fiscal Year Description Unit 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 A. Additional Facilities Extended By Water Supply & Sewerage Department Rural Area a. Additional Population Benefited In Thousands 190 124 160 500 224 265 315 162 335 268 308 350 45 from New Projects

b. Additional Population Benefited In Thousands - - - - 67 82 54 Na 42 73 70 42 - from Repaired Projects

c. Total Available Water Thousands Lt/Day 8550 5580 7200 22500 19545 15615 16605 7290 20050 15345 17010 17640 2025

Urban Areas a. Population Benefited In Thousands - - 10 100 260 191 16 Na 83 - 11.5 196 7.4 Thousands b. Available Water - - 1000 8000 28600 21120 1040 Na 16000 - 1035 17640 666 Lt/Day B. Additional Facilities Extended By Nepal Water Supply Corporation a. Available Water Million. Lt/Day 3 4 18.4 3 7.5 2 4 9 16 7 15 - - b. Population Benefited Thousands Lt/Day 20 45 25 25 110 14 28 56 83 35 80 - - c. Modern Sewerage Facilities k.m. 1 9 5 4 ------

Source : Ministry of Drinking Water and Sanitation, Water Supply and Sewerage Department & Nepal Water Supply Corporation Table 14.1 : Financial Performance of Public Enterprises Rs. in ten million Operating Profit of Various Fiscal Year Types of PEs 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Manufacturing -15.75 -34.02 -18.01 -59.97 -78.43 -49.94 -54.35 -100.47 -56.98 -77.47 -57.51 -60.89 Trading -264.10 -418.71 -190.17 -586.72 303.31 -26.96 -547.77 -1005.14 -155.34 -859.03 -999.12 1509.85 Services 74.04 -5.70 49.95 38.82 195.80 234.81 81.30 227.48 144.3 134.48 94.26 143.01 Social 4.33 4.79 -4.80 -17.45 -29.25 -12.41 -19.76 -4.27 -18.56 -0.02 6.02 -12.05 Public Utilities & Others 234.42 397.91 688.78 788.65 503.24 707.28 539.84 -14.53 651.05 670.20 633.28 957.26 Financial 180.09 224.60 364.49 58.92 105.66 145.46 241.90 297.25 575.58 636.87 647.03 855.07 Total 213.03 168.87 890.24 222.25 1000.33 998.24 241.16 -599.68 1140.05 505.03 323.96 3392.25

Net Capital Investment of Various Fiscal Year Types of PEs 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Manufacturing 395.14 545.88 -38.70 351.31 238.84 200.90 495.54 257.85 -24.81 -84.55 -24.89 -210.34 Trading 53.10 -371.84 -353.29 -105.91 546.98 -152.98 -449.58 -1279.75 300.05 306.61 209.82 616.48 Services# 1079.21 1036.15 1112.14 1188.94 1173.35 2059.67 2086.28 2335.60 2421.07 2561.65 451.45 4040.50 Social 197.34 176.19 185.17 170.60 159.05 137.70 109.31 95.53 131.95 237.14 172.57 451.27 Public Utilities & Others 9747.37 10515.23 10452.40 10980.59 12153.94 13370.59 15016.01 15846.76 15419.07 16213.75 15843.44 20619.15 Financial 6195.22 6944.81 4941.74 6312.50 7993.04 7754.87 9544.69 15252.36 8858.57 5252.81 10188.87 4631.20 Total 17667.38 18846.42 16299.46 18898.03 22265.20 23370.75 26802.25 32508.35 27105.9 24487.41 26841.26 30148.26

Percentage of Net Capital Investment in Operating Profit of Various Fiscal Year Types of PEs 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Manufacturing -3.99 -6.23 - -17.07 -32.84 -24.86 -10.97 -38.96 -229.65 91.63 -231.06 -99.63 Trading -497.39 112.61 - - 55.45 17.62 121.84 78.54 -51.77 -280.17 -476.18 244.92 Services# 6.86 -0.55 4.49 3.27 16.69 11.40 3.90 9.74 5.96 5.25 20.88 3.54 Social 2.19 2.72 -2.59 -10.23 -18.39 -9.01 -18.08 -4.47 -14.07 -0.01 3.49 -2.67 Public Utilities & Others 2.40 3.78 6.59 7.18 4.14 5.29 3.60 -0.09 4.22 4.13 4.00 4.64 Financial 2.91 3.23 7.38 0.93 1.32 1.88 2.53 1.95 6.5 12.12 6.35 18.46 Total 1.21 0.90 5.46 1.18 4.49 4.27 0.90 -1.84 4.21 2.06 1.21 11.25 * Estimated # The amount in service sector may differ due to the unavailability of revised estimate received form Nepal Civil Aviation Authority. Source : Ministry of Finance

Government of Nepal Ministry of Finance Singhadurbar, Kathmandu Phone No.: 4211326, Fax No.: 4211325 Email: [email protected] URL: http://www.mof.gov.np