Tensions in the Middle East may have a negative impact on the overall economy

Kathmandu. Concerns have been expressed that the tension between Israel, the United States and Iran will have a negative impact on Nepal’s overall economy.

At an interaction on ‘West Asia Conflict: Impact on Nepal’s Economy and Supply-system’ organized by the Association of Economic Journalists-Nepal (NAFIJ) here today, economists and entrepreneurs pointed out the possibility of long-term impact on employment and income.

Executive Director of Nepal Rastra Bank, Ram Sharan Kharel, said that the conflict has once again posed a challenge to Nepal’s economy, adding that the conflict may affect employment of Nepalis abroad.

“It was expected that the country’s economy would gain momentum after the elections but the conflict has added more challenges,” he said, “Efforts were being made to bring economy into rhythm after the Genji movement. ”

Although there is excessive liquidity in the banking system, low interest rates of banks and financial institutions, and liquidity management is expected after the new government comes to power, this conflict has added to the challenges.

President of the transit committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and petroleum entrepreneur Shiva Prasad Ghimire warned that the conflict would lead to a decrease in production, create problems in the supply chain and spread fear of shortage of petroleum products.

Economist Rabi Shankar Sainju said the current conflict in the Middle East and West Asia would have deep impact on the economic and social life of the country and stressed the need of creating environment for self-reliant economy by increasing national production.

Menuka Karki, president of NAFIJ, said that the government should be sensitive as the conflict has the potential to have a big impact on the price of petroleum products, food and other essential goods, foreign investment, remittance, employment and GDP.