INTERNATIONAL SCHOOL OF MANAGEMENT AND RESEARCH

ECONOMICS
ASSIGNMENT: - 2
MBA
(2018 – 2020)

Submitted to submitted BY
DR. manju punia CHOPRA Akshara. P
 NEPAL
INTRODUCTION
Nepal is a landlocked country in South Asia and is bordered by China and India.

It is located in the Himalayas and contains eight of the world's ten highest peaks.

The government system is a federal democratic republic; the chief of state is the president,
and the head of government is the prime minister.

Nepal has a traditional economic system in which the majority of the population engages
in subsistence agriculture, and the allocation of available resources is made on the basis of
primitive methods.

Nepal is a member of the South Asian Association for Regional Cooperation (SAARC).

LOCATION
Located in the continent of Asia, Nepal covers 143,351 square kilometers of land and 3,830
square kilometers of water, making it the 94th largest nation in the world with a total area
of 147,181 square kilometers.

LATITUDE
28.3949

LONGITUDE
84.1240

NEIGHBORING COUNTRIES
1. India
2. Tibet
3. China
COASTLINE
Coastline, 0 km (0 mi). Borders, Total land borders: 2,926 km (1,818 mi) China (PRC):
1,236 km (768 mi) India: 1,690 km (1,050 mi). Highest point, Mount Everest 8,848 m
(29,029 ft). Longest river, Karnali. Largest lake, Rara Lake · Nepal measures about 800
kilometers (497 mi) along its Himalayan axis by 150 to 250 kilometers (93 to 155 mi)
across. Nepal has an area of 147,181 square kilometers (56,827 sq mi).

CLIMATE
Nepal climate is influenced by maritime and continental factors and has four distinct
seasons. Spring lasts from March to May, and is warm with rain showers, and temperatures
around 22°C. Summer, from June to August, is the monsoon season when the hills turn lush
and green.

AREA
147,181 km²

NATURAL RESOURCE
Nepal is rich in various natural resources. Some of them are as follows:

1. Forest
2. Soil
3. Mineral
4. Water

LAND
143,351 sq km

WATER
3,830 sq km
POLITICAL PROFILE
POLITICAL SYSTEM AND GOVERNMENT
The politics of Nepal function within a framework of a republic with a multi-party system.
Currently, the position of President of Nepal(head of state) is occupied by Bidhya Devi
Bhandari. The position of Prime Minister (head of government) is held by Khadga Prasad
Oli. Executive power is exercised by the Prime Minister and his cabinet, while legislative
power is vested in the Parliament.

The Government of Nepal or Nepal Government, is the executive body and the central
government of Nepal. Prior to the abolition of the monarchy, it was officially known as His
Majesty's Government.

ADMINISTRATIVE DIVISIONS
14 zones (anchal, singular and plural); Bagmati, Bheri, Dhaulagiri, Gandaki, Janakpur,
Karnali, Kowsi, Lumbini, Mahankali, Mekhi, Narayani, Rapti, Sagarmatha, Seti

CONSTITUTION
history: several previous; latest approved by the Second Constituent Assembly 16
September 2015, signed by the president and effective 20 September 2015
amendments: proposed as a “bill” by either house of the Federal Parliament; bills affecting
a state border or powers delegated to a state must be submitted to the affected state
assembly; passage of such bills requires a majority vote of that state assembly
membership; bills not requiring state assembly consent require at least two-thirds majority
vote by the membership of both houses of the Federal Parliament; parts of the constitution
on the sovereignty, territorial integrity, independence, and sovereignty vested in the
people cannot be amended; amended January 2016 (2017)

EXECUTIVE BRANCH
head of state: President Bidhya Devi BHANDARI (since 29 October 2015); Vice President
Nanda Bahadar PUN (since 31 October 2015)
head of government: Prime Minister Sher Bahadur DEUBA; Deputy Prime Ministers Bijay
Kumar GACHHADAR, Krishna Bahadur Minister Pushpa Kamal DAHAL resigned on 25 May
2017 as part of a rotational power-sharing arrangement between the CPN-MC and NC
cabinet: Council of Ministers appointed by the prime minister; cabinet dominated by the
CPN-MC and the NC
elections/appointments: president indirectly elected by an electoral college of the
Federal Parliament and of the state assemblies for a 5-year term (eligible for a second
term); prime minister indirectly elected by the Federal Parliament
election results: Bidhya Devi BHANDARI elected president; Constituent Assembly vote -
Bidhya Devi BHANDARI (CPN-UML) 327, Kul Bahadur GURUNG (NC) 214; BHANDARI is
Nepal's first woman president. MAHARA, Gopal Man SHRESTHA; note - Prime

LEGISLATIVE BRANCH
bicameral Federal Parliament consists of the National Assembly (59 seats; 56 members,
including at least 3 women, 1 Dalit, 1 member with disabilities, or 1 minority indirectly
elected by an electoral college of state and municipal government leaders, and 3 members,
including 1 woman, nominated by the president of Nepal on the recommendation of the
government; members serve 6-year terms with renewal of one-third of the membership
every 2 years) and the House of Representatives (275 seats; 165 members directly elected
in single-seat constituencies by simple majority vote and 110 members directly elected in a
single nationwide constituency by party-list proportional representation vote; members
serve 5-year terms)
elections: first election for House of Representatives held on 26 November and 7
December 2017 (next to be held in 2022); first election for the National Assembly to be
held on 8 February 2018
election results: percent of vote by party - NA; seats by party - CPN-UML 121, NC 63, CPN-
MC 53, FSFN 16, other 4, independent 1

JUDICIAL BRANCH
highest court(s): Supreme Court (consists of the chief justice and up to 20 judges)
judge selection and term of office: the Supreme Court chief justice appointed by the
president on the recommendation of the Constitutional Council, a 5-member,high-level
advisory body headed by the prime minister; other judges appointed by the president on
the recommendation of the Judicial Council, a 5-member advisory body headed by the chief
justice; the chief justice term of office is 6 years; judges serve until age 65
subordinate courts: High Court; Court of Appeal; district courts
note: Nepal's judiciary was restructured under its 2007 Interim Constitution

CHIEF OF STATE
The current president is Bidhya Devi Bhandari

HEAD OF GOVERNMENT
Bidhya Devi Bhandari
DEMOGRAPHY PROFILE
POPULATION

28,982,771

POPULATION GROWTH RATE

1.09% (2018)

RELIGIONS
Nepal is famous, as the world's only Hindu Kingdom. However, it is an intricate and
beautiful tapestry formed by the interweaving of Hinduism, Buddhism and other beliefs.

LANGUAGES
1. Nepal
2. Maithili
3. Bhojpuri

LITERACY
65.9 %

MALE
14,226,000

FEMALE
15,079,000

SUFFRAGE
18 years of age; universal

LIFE EXPECTANCY
71.6 years
Economic Profile
NEPAL Economy
Economic development in Nepal has been complicated and affected by the constant change
in political scenarios which has ranged from monarchy to being ruled by the Communist
party in present context. An isolated, agrarian society until the mid-20th
century, Nepal entered the modern era in 1951 without schools, hospitals,
roads, telecommunications, electric power, industry, or civil service. The country has,
however, made progress toward sustainable economic growth since the 1950s and opened
the country to economic liberalization leading to economic growth and improvement in
living standards than compared to the past. The biggest challenges faced by the country in
achieving higher economic development are the frequent changes in political leadership as
well as corruption

 Gross Value Added (GVA) Composition by Sector

Service;40%
Industry; 35%
Agriculture; 60%

 Forex Reserves
9.1 USD billion

 Gross Fixed Capital Formation (GFCF) at current Price

271870 NPR Million

 Value of Exports
US$ 660 million

 Export Partners
Nepal mainly exports carpets, beverage, textile, tea and plastic. Its main export
partners include India, the US, Bangladesh and Germany. Nepal mainly imports fuel,
apparel, gold, iron and steel, machinery and equipment. India, China, the
UAE, Indonesia and Thailand are main import partners.

 Currency
Nepalese rupee
 Exchange Rate
0.0091 United States Dollar
  Fiscal Year
1 October 2017 and will end on 30 September 2018

 Share of Top Investing Countries FDI Equity Inflow

Foreign Direct Investment in Nepal increased by 13503.90 NPR Million in 2017. Foreign
Direct Investment in Nepal averaged 3374.48 NPR Million from 2001 until 2017, reaching
an all-time high of 13503.90 NPR Million in 2017 and a record low of -469.70 NPR Million
in 2006.