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Advanced RM Calculator Suite for Loan Assessment and Financial Risk Analysis

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Advanced RM Calculator Suite

Advanced RM Calculator Suite

📘 Financial Metrics Guide & Full Forms

This section explains key financial terms used across the RM tools — what they mean, where to find them, and how to interpret the results.

Term Full Form Where Found What It Tells You
EMI Equated Monthly Installment Loan Proposal / Sanction Sheet Monthly loan repayment obligation
FOIR Fixed Obligation to Income Ratio Based on self-declared income & EMI Shows % of income already committed to loans. Ideal < 50%
DSCR Debt Service Coverage Ratio P&L and Interest Details Cash available to repay debt. Ideal ≥ 1.2
TOL/TNW Total Outside Liabilities / Tangible Net Worth Balance Sheet Leverage indicator. Ideal < 2.0
EBITDA Earnings Before Interest, Taxes, Depreciation, Amortization P&L Statement Core business profitability before non-operating items
ROCE Return on Capital Employed Derived from Operating Profit / Capital Employed Efficiency in using capital. Ideal > 15%
NPA Non-Performing Asset Loan Recovery & Risk Monitoring Loan that has defaulted beyond 90 days

Use this guide to support your financial analysis and documentation with clients. Combine these ratios for holistic decision making.

📘 Glossary & Interpretation Guide

This section helps RMs understand the meaning of key financial ratios and indicators used across the tools above.

Term Full Form Meaning Found In Good Value Suggests
FOIR Fixed Obligation to Income Ratio % of income committed to fixed obligations Loan Assessment / NPA Tool Low debt burden
DSCR Debt Service Coverage Ratio Ability to repay debt from profit Loan Assessment / Scorecard Healthy loan servicing capacity
TOL/TNW Total Outside Liabilities / Tangible Net Worth Debt pressure on personal/business equity Loan Assessment Tool Strong financial cushion
EBITDA Earnings Before Interest, Taxes, Depreciation & Amortization Operational profitability Scorecard / P&L Tool High efficiency in operations
ROCE Return on Capital Employed Earnings over capital deployed Scorecard Tool Good capital utilization
Current Ratio — Short-term liquidity position Net Worth / Balance Sheet Tool Adequate working capital
Asset Turnover — Sales efficiency per rupee of assets Balance Sheet Tool Efficient asset utilization

RM Calculator Suite: Smart Tools for Loan Assessment, WC Gap & Project Viability

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Here is the all-in-one RM Calculator Suite—built for relationship managers and loan officers to assess loans, collateral value, working capital, and project viability. With tools like the Loan Assessment Module, WC Gap Estimator, and Break-Even Analyser, streamline your credit decisions using reliable financial logic and psychometric insights. 

This tool is perfect for initial screening and loan underwriting.


RM Toolkit Calculator

Relationship Manager's Calculator Suite


📘 Relationship Manager's Toolkit Guide

This blog explains how to use each tool in the RM Calculator Suite effectively. Learn how to interpret the results and make better loan decisions.

1. Collateral Valuation & Margin Calculator

This tool helps assess whether the proposed loan amount is adequately secured against the value of the property offered as collateral.

InputDescription
Property TypeSelect from options like Residential, Commercial, Industrial, etc.
Market Value (Rs.)Current fair market valuation of the property.
Loan Amount Proposed (Rs.)Total loan amount applied for by the borrower.
💡 Result Meaning: If Loan-to-Value (LTV) ≤ 80%, collateral is considered sufficient.
  • LTV > 80%: High risk; suggest additional security or reduce loan amount.
  • Margin: Represents the lender's risk buffer. Ideal: 20% or more.

2. Working Capital Gap Calculator

This tool helps determine if a business needs working capital (WC) financing based on its inventory, receivables, and payables.

InputDescription
TurnoverTotal annual sales of the business.
InventoryCurrent value of stock in hand.
ReceivablesOutstanding customer payments (credit sales).
PayablesOutstanding supplier payments (credit purchases).
📉 Result Meaning: WC Gap = Inventory + Receivables - Payables.
  • Positive WC Gap: Indicates a funding need. Recommend WC loan equivalent to gap.
  • Negative WC Gap: Business is self-sufficient or overfunded. No WC loan needed.

3. Project Viability & Break-Even Analysis

This calculator helps assess whether a new business or expansion project is financially viable.

InputDescription
Fixed CostsAnnual overheads like rent, salaries, admin.
Variable CostCost per unit sold (materials, packaging).
Selling PricePrice at which each unit is sold.
Total InvestmentCapital to be invested in project.
Expected Annual ReturnProjected net income per year.
Cash FlowNet annual inflow (simplified for IRR).
Project LifeExpected lifespan of the project in years.
📊 Result Meaning:
  • BEP (Break-Even Point): Units needed to recover costs.
  • ROI: Annual return as % of total investment. Good ROI is 15% or above.
  • IRR: Basic profitability over project life. IRR > cost of capital is favorable.

💼 Decision Support for Loan Managers

Each calculator provides actionable insights to strengthen your credit assessment process:

  • 🛡 Collateral Tool: Decide on collateral sufficiency and margin risk.
  • 💸 WC Gap: Quantify short-term fund requirement with accuracy.
  • 📈 Viability Tool: Support project financing with data-driven evidence.

Use these calculators as part of your preliminary appraisal or pre-sanction memo to enhance accuracy, reduce risk, and speed up decision-making.

Loan Assessment Tool for RM and Loan Managers in Nepal

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Loan Assessment Tool

Advanced Loan Assessment Tool

Personal/Business Information

Financial Details

Psychometric Profile

Loan Requirement

📘 How to Use the Loan Assessment Tool

This guide explains how to use the tool, what each field means, and how results are evaluated.

🔍 Step-by-Step Instructions

  • Name, Age, Occupation: Basic identity and risk profiling. Ideal age: 25–60.
  • Income & EMI: Used to calculate FOIR. EMI should be < 40–50% of income.
  • ITR & PAT: ITR shows declared income; PAT is profitability after taxes.
  • Interest, Liabilities, Net Worth: Used to assess debt load and risk.
  • Assets: Helps estimate repayment buffer and wealth status.
  • Gross Turnover & EBITDA: Business health indicators.

📊 Financial Ratios Calculated

  • FOIR: Fixed Obligation to Income Ratio. Ideal: < 50%
  • DSCR: Debt Service Coverage Ratio. Ideal: ≥ 1.2
  • TOL/TNW: Total Liabilities / Net Worth. Ideal: < 2
  • EBITDA Margin: EBITDA ÷ Turnover × 100. Ideal: > 10%

🧠 Psychometric Inputs

  • Credit Score: Ideal: 750 to 900
  • Job/Business Stability: 5+ years = low risk
  • Education: Higher education → better score
  • Repayment History: No default = +2 points
  • Behavioral Score (1–5): Rated by RM
  • Digital Footprint (1–5): Professional presence helps
  • Family Stability (1–5): Reflects support network

📈 Interpreting Results

  • Score 11–14: ✅ Low Risk → Eligible
  • Score 8–10: ⚠️ Moderate Risk → Caution
  • Below 8: ❌ High Risk → Avoid or require collateral

💡 Additional Tips

  • Verify all documents (KYC, CIC, Tax Receipt, Audit UDIN, Valuator's NEC No. etc.)
  • Don’t rely on one ratio; use the full picture
  • Use for quick screening, not final sanctioning
  • Consider manual override for special cases

Ask 9842334585 to enhance this tool further!

📚 Financial Full Forms & Their Use

This glossary explains commonly used financial terms, their full forms, meanings, and where to locate them in documents.

Abbreviation Full Form Meaning / Use Found In
FOIR Fixed Obligation to Income Ratio Indicates what % of income is already committed toward fixed obligations like EMIs Self-declared income & EMI details
DSCR Debt Service Coverage Ratio Measures ability to repay loan from business profit Profit & Loss Statement, Balance Sheet
TOL/TNW Total Outside Liabilities / Tangible Net Worth Shows total debt relative to net worth Balance Sheet
ITR Income Tax Return Declared annual income to Income Tax Dept. ITR Acknowledgement
PAT Profit After Tax Net profit remaining after tax deduction Profit & Loss Statement
EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization Used to assess core operational profitability Profit & Loss Statement
CIC Credit Information Centre Tracks credit score & history (300–900) Credit Report (CIC)
EMI Equated Monthly Installment Monthly repayment toward loans Loan Statements, Bank Account
WC Loan Working Capital Loan Loan used for daily operations of a business Sanction Letters, Application
OD Overdraft Facility to withdraw more than account balance Bank Account, OD Agreement

This glossary helps ensure clarity and transparency while reviewing or explaining loan eligibility. Always refer to audited financials or authenticated documents, Check UDIN too.

Potentiality of Hydroelectricity in Nepal

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Potentiality of Hydroelectricity in Nepal:


Nepal is rich in water resources. It ranks second in the world in terms of water resources. The main sources of water in Nepal are rivers, lakes, and groundwater. There are about 6000 rivers and rivulets in Nepal. Most of the rivers originate from the mountains and reach the Terai region with high speed. Therefore, electricity can be easily generated by building dams on these rivers.

The potentiality of hydroelectricity in Nepal is about 83,000 MW, which is 2.27% of the world’s total hydroelectricity potential. However, only 44,370 MW of the potential capacity is techno-economically viable. It is expressed in the following table:

River Basin

Theoretical

 Potentiality

Techno-economic

 Potentiality

1. Koshi

22,350 MW

10,860 MW

2. Gandaki

20,650 MW

5,270 MW

3. Karnali and Mahakali

36,000 MW

27,360 MW

4. Southern Rivers

4,000 MW

880 MW

Total

83,000 MW

44,370 MW


Moreover, it is possible to export electricity to India, Pakistan, Bangladesh, etc. Therefore, there can be no disagreement over Nepal’s development if it can be utilized to its full potential.

Sixteenth - 16th Periodic Plan of Nepal in English and Nepali (2024/25 A.D- 2028/29 A.D) (2081/82 B.S - 2085/86 B.S)

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Current 16th Periodic Plan of Nepal (2024/25 A.D- 2028/29 A.D) (2081/82 B.S - 2085/86 B.S)

Background

Nepal has a history of planned development starting from 1956, which includes the implementation of ten five-year plans and three three-year plans. The current plan, the Sixteenth Five-Year Plan (2081/82 - 2085/86), continues to address persistent issues such as poverty, economic disparity, and social exclusion. The overarching goal of this plan is to propel Nepal towards economic development, good governance, social justice, and prosperity, ultimately aiming for Nepal's graduation from a least developed country to a developing country.


Vision and Objectives of current 16th periodic plan of Nepal

The vision of the Sixteenth Plan is encapsulated in the slogan: "Good Governance, Social Justice, and Prosperity." The primary objective is to establish good governance across political, administrative, and judicial sectors. This involves eliminating structural barriers to development and ensuring social justice through structural transformation.


Strategies and Policies of current 16th periodic plan of Nepal

To achieve its vision and objectives, the plan outlines several strategies and policies:

  1. Economic Base Strengthening: Focus on reinforcing the primary and secondary sectors while ensuring the stability of the service sector.
  2. Financial System Development: Develop an accountable financial system, expand the scope of revenue, and stabilize external sectors.
  3. Resource Utilization: Efficiently utilize financial resources, boost production, and create employment opportunities.
  4. Supply Systems: Ensure reliable, timely, quality, and cost-effective supply systems to enhance production and productivity.
  5. Human Resource Development: Produce and mobilize skilled and efficient workforce as per market demand, leveraging demographic dividends.
  6. Economic Growth Targets: Aim for an economic growth rate of 7.3%, increase per capita income to $2351, reduce absolute poverty to 12%, and lower consumer inflation to 5% by the end of the plan period.
  7. Human Development Index (HDI): Increase HDI from 0.601 to 0.650 and reduce the economic and environmental risk index from 29.7 to 24.


Quantitative Targets of current 16th periodic plan of Nepal

Quantitative targets of the current Sixteenth Plan of Nepal (2024/25 - 2028/29)
S.N.IndicatorsSituation in FY 2079/80Five Years Plan's Target (FY 2085/86)
1Annual average economic growth rate (%)3.57.3
2Per capita GDP (in $ US)14562351
3Population below poverty line (%)20.312.0
4Consumer Price Inflation (%)7.75.0
5Human Development Index (HDI)0.6010.650
6Human Wealth Index76.378.0
7Economic and Environmental Risk Index29.724.0
8Literacy Rate (above 5 years) (%)76.285.0
9Life Expectancy (from birth) (Years)71.373.0
10Households with access to bank and financial institutions (%)6385
11Per Person Electricity Consumption (KW/hr)380700
12Population with access to electricity (%)96.7100
13Population with access to internet service (%)69.290.0
14Productivity of major agricultural crops (Metric Tons/hectare)3.33.7
15Gini Coefficient based on property0.240.22
16Gender Development Index0.8850.967

Source: NPC (Sixteenth Plan (2081/82 - 2085/86))


The Sixteenth Plan sets ambitious targets across various indicators, including:

  • Economic Growth: Increase the annual average economic growth rate from 3.5% to 7.3%.
  • Per Capita GDP: Raise from $1456 to $2351.
  • Poverty Reduction: Reduce the population below the poverty line from 20.3% to 12%.
  • Human Development Index: Improve from 0.601 to 0.650.
  • Electricity Access: Ensure 100% population access to electricity, with per capita consumption increasing from 380 KW/hr to 700 KW/hr.
  • Internet Access: Increase the population with internet access from 69.2% to 90%.
  • Agricultural Productivity: Enhance productivity of major agricultural crops from 3.3 metric tons per hectare to 3.7 metric tons per hectare.
  • Gini Coefficient: Improve from 0.24 to 0.22, indicating reduced income inequality.
  • Gender Development Index: Increase from 0.885 to 0.967.


Long-Term Vision and Strategies of current 16th periodic plan of Nepal

The long-term vision "Prosperous Nepal, Happy Nepali" aims to establish a prosperous, independent, and socialism-oriented economy with happy, healthy, and educated citizens enjoying equality of opportunities and high standards of living. The main national objectives and goals are prosperity and happiness, supported by accessible infrastructure, high and sustainable production, equitable national income, a healthy and balanced environment, and comprehensive democracy.


To achieve these goals, the following long-term strategies have been identified:


1. Rapid and Sustainable Economic Growth: Focus on employment-oriented growth.
2. Affordable Quality Health and Education: Ensure accessible and quality healthcare and education for all.
3. Infrastructure Development: Enhance internal and international connectivity and develop sustainable cities and settlements.
4. Productivity and Competitiveness: Increase production and productivity across sectors.
5. Social Security and Protection: Provide comprehensive and sustainable social security.
6. Natural Resource Conservation: Conserve natural resources and improve resilience.


Priority Areas of current 16th periodic plan of Nepal

To implement the long-term vision, priority areas include:

  • High-quality transport systems and communication infrastructure.
  • Quality human capital and entrepreneurial culture.
  • Growth in hydroelectricity production and green economy promotion.
  • Expansion of quality tourism services.
  • Systematic urbanization and housing development.
  • Strengthening provincial and local economies.

In conclusion, the Sixteenth Plan of Nepal aims to foster significant economic and social transformation through strategic policies, ambitious targets, and a commitment to good governance and social justice. With a clear vision and well-defined objectives, Nepal is set on a path towards sustainable development and prosperity.


Current 16th periodic plan of Nepal in Nepali

वर्तमान १६औं पञ्चवर्षीय आवधिक योजना (२०२४/२५ - २०२८/२९) (२०८१/८२ - २०८५/८६)

पृष्ठभूमि

नेपालमा १९५६ देखि योजनाबद्ध विकासको इतिहास छ, जसमा दस पञ्चवर्षीय योजना र तीन त्रैवार्षिक योजनाहरूको कार्यान्वयन समावेश छ। वर्तमान योजना, सोह्रौं पञ्चवर्षीय योजना (२०८१/८२ - २०८५/८६), गरिबी, आर्थिक असमानता र सामाजिक बहिष्करण जस्ता दीर्घकालीन समस्याहरूलाई समाधान गर्न जारी छ। यस योजनाको मुख्य उद्देश्य नेपाललाई आर्थिक विकास, सुशासन, सामाजिक न्याय र समृद्धितर्फ अगाडि बढाउने हो, जसको अन्तिम लक्ष्य नेपाललाई अल्पविकसित देशबाट विकासशील देशको श्रेणीमा स्तरोन्नति गर्नु हो।


सोह्रौं पञ्चवर्षीय योजनाको दृष्टिकोण र उद्देश्य

सोह्रौं योजनाको दृष्टिकोण "सुशासन, सामाजिक न्याय र समृद्धि" नारामा समेटिएको छ। मुख्य उद्देश्य राजनीतिक, प्रशासनिक र न्यायिक क्षेत्रमा सुशासन स्थापित गर्नु हो। यसमा विकास प्रयासहरूमा देखिएका संरचनात्मक बाधाहरूलाई हटाउने र सामाजिक न्याय सुनिश्चित गर्ने समावेश छ।


सोह्रौं पञ्चवर्षीय योजनाका रणनीतिहरू र नीतिहरू

यसको दृष्टिकोण र उद्देश्यहरू प्राप्त गर्न, योजनाले विभिन्न रणनीतिहरू र नीतिहरूलाई परिकल्पना गरेको छ:

१. आर्थिक आधार सुदृढीकरण: प्राथमिक र द्वितीयक क्षेत्रहरूलाई सुदृढ पार्दै सेवा क्षेत्रको स्थिरता सुनिश्चित गर्ने।
२. वित्तीय प्रणाली विकास: उत्तरदायी वित्तीय प्रणाली विकास गर्ने, राजस्वको दायरा विस्तार गर्ने, र बाह्य क्षेत्रहरूलाई स्थिर बनाउने।
३. स्रोतहरूको उपयोग: वित्तीय स्रोतहरूको कुशलतापूर्वक उपयोग गर्ने, उत्पादन बढाउने, र रोजगार सिर्जना गर्ने।
४. आपूर्ति प्रणालीहरू: उत्पादन र उत्पादकत्व बढाउन भरपर्दो, समयमै, गुणस्तरीय र लागत-प्रभावी आपूर्ति प्रणालीहरू सुनिश्चित गर्ने।
५. मानव संसाधन विकास: बजार मागअनुसार दक्ष र कुशल जनशक्ति उत्पादन गर्ने र परिचालन गर्ने, जनसांख्यिक लाभलाई उपयोग गर्दै।
६. आर्थिक वृद्धि लक्ष्य: ७.३% आर्थिक वृद्धि दर हासिल गर्ने, प्रति व्यक्ति आय $२३५१ मा बढाउने, गरिबीलाई १२% मा घटाउने, र उपभोक्ता मुद्रास्फीति ५% मा कम गर्ने लक्ष्य राख्ने।
७. मानव विकास सूचकांक (HDI): HDI लाई ०.६०१ बाट ०.६५० मा बढाउने र आर्थिक तथा वातावरणीय जोखिम सूचकांकलाई २९.७ बाट २४ मा घटाउने।


सोह्रौं पञ्चवर्षीय योजनाका गुणात्मक लक्ष्यहरू

सोह्रौं योजनाले विभिन्न सूचकहरूमा महत्वाकांक्षी लक्ष्यहरू निर्धारण गरेको छ:

क्र.स.सूचकहरूवर्तमान अवस्था (व. सं. २०७९/८०)पञ्चवर्षीय योजनाको लक्ष्य (व. सं. २०८५/८६)
1वार्षिक औसत आर्थिक वृद्धि दर (%)३.५७.३
2प्रति व्यक्ति GDP (USD मा)१४५६२३५१
3गरिबी रेखामुनि जनसंख्या (%)२०.३१२.०
4उपभोक्ता मूल्य मुद्रास्फीति (%)७.७५.०
5मानव विकास सूचकांक (HDI)०.६०१०.६५०
6मानव सम्पत्ति सूचकांक७६.३७८.०
7आर्थिक र वातावरणीय जोखिम सूचकांक२९.७२४.०
8साक्षरता दर (५ वर्ष माथिका) (%)७६.२८५.०
9जीवन प्रत्याशा (जन्मदेखि) (वर्ष)७१.३७३.०
10बैंक र वित्तीय संस्थाहरूमा पहुँच भएका घरपरिवार (%)६३८५
11प्रति व्यक्ति बिजुली खपत (KW/hr)३८०७००
12बिजुली पहुँच भएका जनसंख्या (%)९६.७१००
13इन्टरनेट सेवामा पहुँच भएका जनसंख्या (%)६९.२९०.०
14प्रमुख कृषिउपजहरूको उत्पादकत्व (मेट्रिक टन/हेक्टर)३.३३.७
15सम्पत्तिमा आधारित गिनी गुणांक०.२४०.२२
16लैंगिक विकास सूचकांक०.८८५०.९६७

श्रोत: राष्ट्रिय योजना आयोग, सोह्रौँ आवधिक योजना (२०८१/८२ - २०८५/८६)


दीर्घकालीन दृष्टिकोण र रणनीतिहरू

दीर्घकालीन दृष्टिकोण "समृद्ध नेपाल, सुखी नेपाली" ले सुखी, स्वस्थ र शिक्षित नागरिकहरूलाई समान अवसरहरू, गरिमा र उच्च जीवनस्तरको साथ एक समृद्ध, स्वतन्त्र र समाजवादी-उन्मुख अर्थतन्त्रको स्थापना गर्ने उद्देश्य राखेको छ। प्रमुख राष्ट्रिय उद्देश्यहरू समृद्धि र सुख समावेश छन्, जुन पहुँचयोग्य पूर्वाधार, उच्च र स्थिर उत्पादन, न्यायपूर्ण राष्ट्रिय आय, स्वस्थ र सन्तुलित वातावरण, र समावेशी लोकतन्त्रले समर्थित छ।


यसका लागि निम्न दीर्घकालीन रणनीतिहरू पहिचान गरिएका छन्:


१. राष्ट्रिय र अन्तर्राष्ट्रिय अन्तर्सम्बन्ध विकास: समावेशी र गुणस्तरीय पूर्वाधार विकास।
२. सर्वसुलभ र गुणस्तरीय स्वास्थ्य र शिक्षा: सबैका लागि पहुँचयोग्य र गुणस्तरीय स्वास्थ्य र शिक्षा सुनिश्चित गर्नु।
३. उत्पादन र प्रतिस्पर्धा बढाउनु: उत्पादन र उत्पादकत्व बढाउनु।
४. सामाजिक सुरक्षा र संरक्षण: समावेशी र दिगो सामाजिक सुरक्षा प्रदान गर्नु।
५. प्राकृतिक स्रोतहरूको संरक्षण: प्राकृतिक स्रोतहरूको संरक्षण र पुनर्स्थापना गर्नु।
६. सङ्गठित शहरीकरण र आवास विकास: व्यवस्थित शहरीकरण र आवास विकास।
७. प्रदेश र स्थानीय अर्थतन्त्रको सुदृढीकरण: स्थानीय अर्थतन्त्रलाई सुदृढीकरण गर्नु।


प्राथमिकताका क्षेत्रहरू

दीर्घकालीन दृष्टिकोणलाई कार्यान्वयन गर्न प्राथमिकता क्षेत्रहरूमा समावेश छन्:

  • उच्च-गुणस्तरीय यातायात प्रणाली र सञ्चार पूर्वाधार।
  • गुणस्तरीय मानव पूँजी र उद्यमशील संस्कृति।
  • जलविद्युत उत्पादन र हरित अर्थतन्त्रको वृद्धि।
  • गुणस्तरीय पर्यटन सेवाहरूको विस्तार।
  • व्यवस्थित शहरीकरण र आवास विकास।
  • प्रदेश र स्थानीय अर्थतन्त्रको सुदृढीकरण।

निष्कर्ष

सोह्रौं योजना नेपाललाई आर्थिक र सामाजिक रूपान्तरणको मार्गमा अग्रसर गराउन रणनीतिक नीतिहरू, महत्वाकांक्षी लक्ष्यहरू र सुशासन र सामाजिक न्यायको प्रतिबद्धता मार्फत महत्त्वपूर्ण आर्थिक र सामाजिक परिवर्तनको मार्गमा अग्रसर गर्ने उद्देश्य राख्दछ। स्पष्ट दृष्टिकोण र परिभाषित उद्देश्यहरूसँग, नेपाल दीर्घकालीन विकास र समृद्धितर्फ अग्रसर भएको छ।

General Evaluation of Immediate Past Plan of Nepal (15th Periodic Plan)

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General Evaluation of Immediate Past Plan of Nepal (15th Periodic Plan)

Background and Overview


The immediate past plan of Nepal is the 15th periodic plan. The Fifteenth Plan (2019/20–2023/24) of Nepal was formulated as a part of the country’s long-term development vision, aimed at transitioning Nepal to a high-income country by 2043/44. This plan emphasized generating prosperity and happiness by enhancing economic growth through robust economic, social, and physical infrastructures.

Key Objectives and Targets

The Fifteenth Plan had several key objectives:
  1. Economic Growth: Targeted an average economic growth rate of 10.3%.
  2. Per Capita Income: Aimed to increase per capita income from $1047 to $1595.
  3. Poverty Reduction: Sought to reduce the population living below the poverty line from 18.7% to 9.5%.
  4. Infrastructure Development: Planned significant investments in transportation, ICT, energy, education, healthcare, and urbanization.
  5. Social Development: Focused on improving literacy rates, healthcare access, and social security coverage.

Major Achievements

Despite facing numerous challenges, the Fifteenth Plan achieved notable progress in several areas:
  1. Internet Usage: There was a significant increase in internet users and the adoption of electronic economic transactions.
  2. Social Indicators: Improvements were seen in literacy rates and access to basic social security.
  3. Economic Sectors: Although the targeted growth in the primary and secondary sectors was not fully achieved, there was still progress in certain areas.

Challenges and Shortcomings

The Fifteenth Plan faced substantial challenges that hindered its overall performance:
  • COVID-19 Pandemic: The pandemic had a devastating impact on Nepal’s economy, resulting in an economic growth rate of -2.4% in FY 2076/77. The GDP loss was estimated at Rs. 2.89 trillion and Rs. 3.33 trillion in FY 2076/77 and FY 2077/78, respectively.
  • Natural Disasters: An earthquake in the western part of Nepal in FY 2080 caused significant economic and human losses.
  • Investment Environment: Adverse conditions, including long trade disruptions at southern border points, affected investment climate and economic stability.

Quantitative Evaluation of Immediate Past Plan of Nepal

The following table presents the major quantitative targets and their status by the end of the Fifteenth Plan:

S.N.IndicatorsStatus in FY 2018/19Target for FY 2023/24
1Economic growth (average) %6.810.3
2Per capita national income ($)10471595
3Population under the poverty line (absolute poverty) (%)18.79.5
4Gini coefficient based on property0.310.29
5Electricity generation (installed capacity MW)12505820
6National and provincial highways (up to two lanes KM)779433000
7Railroads (KM)422200
8Population with access to the internet (%)65.9100
9Literacy rate (above 15 years)5899
10Population with access to improved drinking water (%)8999
11Population covered by basic social security (%)17100
12Gender development index0.8970.990
13Human Development Index (HDI)0.5790.624

Lessons Learned

The evaluation of the Fifteenth Plan reveals several key lessons:
  1. Resilience and Adaptability: There is a need for plans to be more resilient and adaptable to unexpected challenges such as pandemics and natural disasters.
  2. Investment Climate: Improving the investment climate is crucial for sustained economic growth and development.
  3. Targeted Interventions: More focused and effective interventions are necessary in sectors like health, education, and infrastructure to achieve desired outcomes.

Conclusion

The Fifteenth Plan of Nepal had mixed outcomes, achieving significant progress in certain areas while falling short in others due to unforeseen challenges. The lessons learned from this plan are critical for informing and shaping future development strategies, including the current Sixteenth Plan, to ensure more robust and resilient economic and social development.

Problems and solutions for Transport and Communication problems in Nepal

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Problems and solutions for Transport and Communication problems in Nepal


Problems of Transport and Communication in Nepal:

1. Lack of Capital: A huge amount of capital is required to develop the transportation and communication sector. Hence, lack of capital and dependency on foreign capital are the problems in the development of the transportation and communication sector in Nepal.

2. Lack of Technology and Technical Knowledge: Both technology and technical knowledge are essential in order to develop transportation and communication sectors. All the tool and implements are to be implemented from abroad. Because of this reason, the cost of developing the transportation and communication sector rises which becomes a greater hurdle for countries like Nepal.

3. Lack of Efficient Manpower: There is a deficiency of physically and mentally efficient manpower in the development of large infrastructure related to the transportation and communication sector. This is also a problem in the development of transportation and communication sectors in Nepal.

4. Lack of Energy: For the development of the transportation and communication sector, energy is needed. Despite the great potentiality of producing hydroelectricity, Nepal is unable to produce hydroelectricity as per demand. In such a situation, it is difficult to develop the transportation and communication sector in Nepal.

5. Lack of Long term Planning: There is the absence of long term planning and vision in Nepal. This also serves as a problem in the development of the transportation and communication sector.

6. Political Instability: There is frequent change in government. When government changes priorities, programmes and policies of the government also change. There is also a problem with the continuation o existing projects. This creates uncertainty in the development of transportation and communication sectors.

Suggestions/Remedial Measures of transportation and communication problems in Nepal:

1. Increasing Involvement of the Private Sector: There is a lack of large amount of capital needed for the development of large projects of transportation and communication. In such a situation, the government should develop means of infrastructures by involving an investment of private sectors which is known as public private relationship.

2. Development of Technical Education: There is a lack of technical knowledge in Nepal. Without technical knowledge, it is impossible to develop transportation and communication sectors. Therefore, emphasis should be given to developing technical manpower in Nepal and for this technical education should be given according to the national need.

3. Attracting Labour Force: Mentally and Physically efficient manpower of Nepal is in foreign employment causing deficiency of labour in Nepal. Therefore, the government of Nepal should make a policy to attract the labour force in the national development.

4. Spread of People’s Awareness: People create hurdle in the development of infrastructures. They destroy the infrastructures and the main reason behind this is the lack of people’s awareness. Therefore, it is necessary to spread awareness and involve beneficiaries in the development of transportation and communication. The Participation of local people and beneficiaries in the development process helps to develop and protect infrastructures related to transportation and communication.

5. Maintaining Political Stability: Political parties and people themselves should be aware to maintain political stability in Nepal for the purpose of developing necessary infrastructures related to transportation and communication.
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