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Nepal

Author(s):
International Monetary Fund
Published Date:
September 2003
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Table 1.Nepal: Nominal Gross Domestic Product by Sector, 1996/97–2001/02
1996/971997/981998/991999/20002000/012001/02
(In billions of Nepalese rupees, at current prices)
Agriculture, fisheries, and forestry108.8112.5132.4145.1151.0160.1
Mining and quarrying1.51.61.71.81.92.1
Manufacturing24.827.030.333.635.532.8
Electricity and water4.54.44.65.97.07.4
Construction29.330.533.337.439.642.2
Trade, restaurants, and hotels30.633.739.342.944.640.5
Transport and communication19.322.624.629.333.334.7
Financial sector and real estate27.229.833.236.941.643.9
Community and social services23.727.830.633.339.040.8
GDP at factor cost269.6289.8330.0366.3393.6404.5
Agricultural GDP108.8112.5132.4145.1151.1160.1
Nonagricultural GDP160.8177.3197.6221.1242.5244.3
Net indirect taxes18.018.921.523.928.629.2
Less: Value of imputed banking services7.07.99.410.711.912.4
GDP at market prices280.5300.8342.0379.5410.3421.3
(Percentage share in nominal GDP at factor cost)
Agriculture, fisheries, and forestry40.438.840.139.638.439.6
Mining and quarrying0.60.50.50.50.50.5
Manufacturing9.29.39.29.29.08.1
Electricity and water1.71.51.41.61.81.8
Construction10.910.510.110.210.110.4
Trade, restaurants, and hotels11.311.611.911.711.310.0
Transport and communication7.27.87.58.08.58.6
Financial sector and real estate10.110.310.110.110.610.8
Community and social services8.89.69.39.19.910.1
Agricultural GDP at factor cost40.438.840.139.638.439.6
Nonagricultural GDP at factor cost59.661.259.960.461.660.4
(Annual percentage change)
Memorandum items:
Deflator for GDP at market prices7.14.28.84.63.23.2
Agriculture-sector deflator7.62.514.44.5−1.33.7
Nonagri culture-sectors deflator7.05.05.54.75.22.9
Sources: The Central Bureau of Statistics; Nepal Rastra Bank; and Fund staff estimates.
Table 2.Nepal: Real Gross Domestic Product by Sector, 1996/97–2001/02
1996/971997/981998/991999/20002000/012001/02
(In billions of Nepalese rupees, at 1994/95 prices)
Agriculture, fisheries, and forestry92.793.596.2100.9106.4108.8
Mining and quarrying1.31.41.41.51.51.6
Manufacturing22.823.624.926.627.624.9
Electricity and water3.53.33.54.04.44.5
Construction26.427.028.831.631.832.4
Trade, restaurants, and hotels26.528.029.131.031.528.2
Transport and communications15.917.218.419.620.921.2
Financial sector and real estate23.124.525.727.027.528.4
Community and social services20.822.423.924.828.128.5
GDP at factor cost233.0240.8251.8267.1279.8278.5
Agricultural GDP92.793.596.2100.9106.4108.8
Nonagricultural GDP140.3147.3155.6166.2173.4169.7
Net indirect taxes15.715.516.217.518.618.5
Less: Value of imputed banking services5.76.26.67.27.87.8
GDP at market prices243.0250.2261.4277.4290.6289.2
(Annual percentage change)
Agriculture, fisheries, and forestry4.40.92.84.95.52.2
Mining and quarrying6.81.33.74.54.51.0
Manufacturing7.13.45.37.23.8−10.0
Electricity and water1.8−4.15.714.39.61.7
Construction6.62.26.89.60.91.7
Trade, restaurants, and hotels4.15.83.96.81.6−10.4
Transport and communications7.78.16.87.06.21.9
Financial sector and real estate4.75.95.05.11.73.3
Community and social services3.67.66.64.013.11.7
GDP at factor cost5.03.34.66.14.7−0.5
Agricultural GDP4.40.92.84.95.52.2
Nonagricultural GDP5.45.05.66.84.3−2.1
Value of imputed banking services1.58.46.99.48.30.1
Net indirect taxes7.7−0.94.57.86.4−0.6
GDP at market prices5.32.94.56.14.8−0.5
Sources: The Central Bureau of Statistics; Nepal Rastra Bank; and Fund staff estimates.
Table 3.Nepal: Nominal Gross Domestic Product by Expenditure Components, 1996/97–2001/02
1996/971997/981998/991999/20002000/012001/02
(In billions of Nepalese rupees, at current prices)
GDP at market prices280.5300.8342.0379.5410.3421.3
Consumption241.4259.4295.5321.9349.3371.5
Public25.028.030.534.040.242.3
Private216.4231.4264.9287.9309.1329.2
Gross domestic investment71.174.770.192.398.3103.6
Gross fixed investment60.865.465.373.378.081.3
Public19.422.623.926.431.332.0
Private41.442.841.446.946.849.2
Change in stocks10.39.44.818.920.322.4
Net exports−31.9−33.2−23.5−34.7−37.3−53.8
Exports73.968.778.288.491.867.7
Imports105.8101.9101.6123.1129.1121.5
(Percentage share in nominal GDP)
Consumption86.086.286.484.885.188.2
Public8.99.38.98.99.810.0
Private77.176.977.575.975.378.1
Gross domestic investment25.324.820.524.324.024.6
Gross fixed investment21.721.719.119.319.019.3
Public6.97.57.07.07.67.6
Private14.814.212.112.411.411.7
Change in stocks3.73.11.45.04.95.3
Net exports−11.4−11.0−6.9−9.1−9.1−12.8
Exports26.322.822.923.322.416.1
Imports37.733.929.732.431.528.8
Sources: The Central Bureau of Statistics; Nepal Rastra Bank; and Fund staff estimates.
Table 4.Nepal: Saving and Investment, 1996/97–2001/02
1996/971997/981998/991999/20002000/012001/02
(In billions of Nepalese rupees, at current prices)
Gross national savings44.848.658.672.078.673.1
Public sector3.83.93.14.31.00.9
Private sector41.044.755.567.777.672.2
Gross domestic investment71.174.770.192.398.3103.6
Gross fixed investment60.865.465.373.378.081.3
Public sector19.422.623.926.431.332.0
Private sector41.442.841.446.946.849.2
Change in stocks10.39.44.818.920.322.4
Saving-investment gap−26.3−26.1−11.5−20.3−19.7−30.5
Public sector−15.6−18.7−20.8−22.1−30.3−31.1
Private sector−10.7−7.59.31.910.50.6
(In percent of nominal GDP)
Gross national savings16.016.217.119.019.217.4
Public sector 1/1.41.30.91.10.20.2
Private sector14.614.816.217.918.917.1
Gross domestic investment25.324.820.524.324.024.6
Gross fixed investment21.721.719.119.319.019.3
Public sector6.97.57.07.07.67.6
Private sector14.814.212.112.411.411.7
Change in stocks3.73.11.45.04.95.3
Saving-investment gap−9.4−8.7−3.4−5.3−4.8−7.2
Public sector−5.6−6.2−6.1−5.8−7.4−7.4
Private sector−3.8−2.52.70.52.60.1
Sources: The Central Bureau of Statistics; Nepal Rastra Bank; and Fund staff estimates.
Table 5.Nepal: Agricultural Production and Yields, 1996/97–2001/02
1996/971997/981998/991999/002000/012001/021997/981998/991999/002000/012001/02
(In thousands of metric tons)(Percentage change)
Production by major crops
Food grains6,4266,3606,4656,9857,1727,247−1.01.78.02.71.1
Paddy3,7113,6413,7104,0304,2164,165−1.91.98.64.6−1.2
Wheat1,0721,0301,0861,1841,1581,258−3.95.49.0−2.28.6
Maize1,3171,3671,3461,4451,4841,5113.8−1.57.42.71.8
Millet289285291295283283−1.32.21.2−4.1−0.1
Barley3737323130310.0−14.1−2.5−1.72.4
Cash crops2,7642,8653,2013,4283,6783,8773.611.77.17.35.4
Sugarcane1,6291,7631,9722,1032,2122,2488.211.86.75.21.6
Jute14161515161714.3−6.30.09.33.7
Oilseeds119110120123132135−7.68.82.87.62.0
Potato9979721,0911,1831,3141,473−2.512.38.411.012.1
Tobacco544444−21.6−2.52.6−0.7−6.0
Distribution of fertilizer 1/122109157148146141−10.844.0−5.7−1.4−3.4
Area under cultivation 2/
Food grains3,2673,2433,2533,3213,3143,296−0.70.32.1−0.2−0.5
Paddy1,5111,5061,5141,5511,5601,517−0.30.52.40.6−2.8
Wheat667640641660641667−4.00.23.0−2.94.1
Maize7947998028198258260.60.42.10.70.1
Millet2602622642632602580.80.8−0.4−1.1−0.8
Barley3536322828282.9−11.1−12.50.00.0
Cash crops3563613783903913981.44.73.20.31.8
Sugarcane4649545859596.510.27.41.70.0
Jute1112121511129.10.025.0−26.79.1
Oilseeds182179190190188188−1.66.10.0−1.10.0
Potato1111161181231291354.51.74.24.94.7
Tobacco654444−16.7−20.00.00.00.0
(In metric tons/hectare)(Percentage change)
Yields
Food grains2.02.02.02.12.22.2−0.31.35.82.91.6
Paddy2.52.42.52.62.72.7−1.61.46.04.01.6
Wheat1.61.61.71.81.81.90.15.35.90.74.4
Maize1.71.71.71.81.81.83.1−1.95.12.01.7
Millet1.11.11.11.11.11.1−2.11.41.6−3.00.7
Barley1.11.01.01.11.11.1−2.8−3.311.4−1.72.4
Cash crops7.87.98.58.89.49.72.26.73.87.03.5
Sugarcane35.436.036.536.337.538.11.61.5−0.73.41.6
Jute1.31.31.31.01.51.44.8−6.3−20.049.0−4.9
Oilseed0.70.60.60.60.70.7−6.12.52.88.72.0
Potato9.08.49.29.610.210.9−6.710.44.05.97.1
Tobacco0.90.81.01.01.00.9−5.921.92.6−0.7−6.0
Source: The Central Bureau of Statistics.
Table 6.Nepal: Manufacturing Production Indices, 1998/99–2001/02
Weights 1/1998/991999/002000/012001/021998/991999/002000/012001/02
(Indices 1996/97=100)(Percentage change)
Overall production100.0108.9116.1120.1112.25.36.63.5−6.6
Food26.2118.1127.3134.5127.35.97.85.7−5.4
Of which:
Sugar3.5110.2142.7119.495.66.029.4−16.3−19.9
Vegetable ghee1.5111.5118.9153.1188.5−3.66.728.823.1
Rice2.0131.4131.5131.0148.36.00.0−0.413.2
Soybean oil0.8131.1133.5146.3165.314.01.89.613.0
Processed milk3.0111.2114.5124.1135.83.02.98.49.4
Beverage10.5120.2131.1139.8117.57.89.06.7−16.0
Tobacco13.898.8108.0113.9112.17.29.45.4−1.6
Textile22.4107.0107.199.171.53.60.1−7.5−27.9
Of which:
Cotton cloth1.579.970.665.959.0−15.0−11.7−6.6−10.5
Synthetic cloth3.093.399.6101.5103.8−12.06.81.92.3
Woolen carpet16.7111.2109.799.361.98.1−1.3−9.5−37.7
Jute goods1.2116.3135.1130.9139.62.016.2−3.16.6
Ready made garments7.2103.7123.5122.188.78.019.1−1.1−27.4
Processed leather1.0111.2108.1134.6121.82.0−2.724.5−9.5
Wood products1.295.693.391.499.0−3.4−2.4−2.18.3
Paper1.9103.0111.3125.5123.62.08.112.7−1.5
Other chemical products6.8105.5114.5130.7148.66.98.514.213.7
Rubber products1.598.096.596.6101.22.2−1.50.14.8
Plastic products1.9111.3110.6148.6178.66.0−0.734.420.2
Nonmetallic mineral products8.2114.5120.6117.9124.59.45.3−2.25.6
Of which:
Bricks3.996.596.396.5100.916.3−0.20.24.6
Cement4.3130.6142,4137.1145.85.39.0−3.76.3
Iron and steel basic industries5.1107.4120.4134.1139.7−0.512.111.44.2
Electrical industrial machinery
apparatus, appliances, etc.1.8116.4121.0146.4151.53.04.021.03.5
Others0.589.398.992.6101.7−4.010.8−6.49.8
Source: The Central Bureau of Statistics.
Table 7.Nepal: Energy Consumption, 1996/97–2001/02
1996/971997/981998/991999/002000/012001/02
(In thousands of tons of coal equivalent)
Traditional6,2686,4036,5406,6816,8246,997
Of which:
Fuelwood5,5745,6945,8165,9416,0686,217
Commercial6917688111,0441,0881,169
Petroleum554625661709734758
Coal606161236253290
Electricity77838999108121
Total6,9597,1927,3767,7547,9548,205
(Annual percentage change)
Traditional1.32.22.12.22.12.5
Of which:
Fuelwood0.92.22.12.12.12.5
Commercial6.111.15.628.74.27.4
Petroleum9.312.85.87.33.53.3
Coal−16.71.70.0286.94.214.6
Electricity6.97.87.211.29.112.0
Total1.83.32.65.12.63.2
Source: Data provided by the Nepalese authorities.
Table 8.Nepal: Tourism Indicators, 1996–2002
1996199719981999200020012002 1/
Tourist arrivals (in thousands)393.6421.9463.7491.5463.0362.0216
(Percentage change)8.37.29.96.0−5.8−21.8−26.7
Of which:
Europe138.9143.4157.8171.6166.3137.8--
India 2/122.5133.4143.2140.795.964.3--
Japan28.935.037.338.841.028.9--
United States and Canada30.636.343.046.949.039.1--
Average days of stay13.510.510.812.812.012.012.0
Per capita expenditure--
(In Nepalese rupees) 3/24,34423,22631,28232,55032,16334,345--
(In U.S. dollars) 3/430402476479454467.3--
(Percentage change)−9.3−6.518.40.6−5.22.9--
Hotel-bed capacity25,63827,61228,87832,21434,95836,163--
(Percentage change)17.67.74.611.68.53.5--
Source: Data provided by the Nepalese authorities.
Table 9.Nepal: Consumer Price Index, 1997/98–2001/02 1/

(Average annual percentage change)

1997/981998/991999/20002000/012001/02
Overall national index8.311.43.42.42.9
By commodity
Food and beverages7.816.20.4−2.33.7
Food grains3.118.78.6−13.72.1
Milk and milk products7.79.53.65.71.2
Oil and fats8.329.0−22.6−4.78.3
Beverages14.78.73.72.05.0
Vegetables and fruits16.719.9−16.94.17.5
Other goods and services9.15.87.18.12.1
Cloth, clothing, and sewing services6.96.04.72.22.5
Fuel, light, and water7.62.813.322.3−0.9
Regional indices
Kathmandu7.48.13.73.22.0
Terai9.013.33.11.13.4
Hills8.011.53.75.22.5
Source: The Central Bureau of Statistics.
Table 10.Nepal: Monthly Wages in Major Sectors, 1996/97–2001/02
1996/971997/981998/991999/002000/012001/02
(In Nepalese rupees)
Agriculture
Kathmandu3,0003,0003,0003,0003,0003,000
Birgunj1,5001,5001,5001,6252,4252,550
Biratnagar1,3501,3501,5001,5001,5001,500
Industry 1/
Skilled1,6101,9601,9602,2762,2762,276
Unskilled1,4501,8001,8002,1162,1162,116
Construction 2/
Skilled
Kathmandu5,5505,7005,7005,7006,0006,300
Birgunj3,3003,3903.9004,0504,3134,500
Biratnagar3,6003,8504,4704,5004,5754,800
Semiskilled
Kathmandu4,6754,9504,9504,9505,0505,550
Biratnagar3,0003,1503,8703,9003,9754,200
Unskilled (labourer)
Kathmandu3,0003,0003,0003,0003,1123,450
Biratnagar1,8001,9202,3702,4002,4002,400
(In U.S. dollar)
Agriculture
Kathmandu52.648.543.842.240.639.0
Birgunj26.324.321.922.932.833.2
Biratnagar23.721.821.921.120.319.5
Industry 1/
Skilled28.231.728.632.030.829.6
Unskilled25.429.126.329.828.727.5
Construction 2/
Skilled
Kathmandu97.392.283.280.281.381.9
Birgunj57.954.856.957.058.458.5
Biratnagar63.162.265.363.362.062.4
Semiskilled
Kathmandu82.080.072.369.668.472.2
Biratnagar52.650.956.554.953.854.6
Unskilled (labourer)
Kathmandu52.648.543.842.242.244.9
Biratnagar31.631.034.633.832.531.2
Source: Data provided by the Nepalese authorities.
Table 11.Nepal: Summary of Government Operations, 1998/99–2001/02 1/
1998/991999/20002000/012001/02
(In billions of Nepalese rupees)
Total revenue and grants39.346.453.654.4
Total revenue35.040.746.848.6
Tax revenue28.833.238.939.3
Nontax revenue6.37.68.09.2
Grants4.35.76.85.8
Total expenditure52.859.872.172.7
Current 2/32.036.545.848.7
Capital and net lending 2/20.823.326.323.9
Overall balance before grants−17.8−19.0−25.3−24.1
Overall balance after grants−13.5−13.3−18.5−18.3
Financing13.513.318.518.3
Net foreign loans8.710.07.56.0
Gross disbursements11.913.712.010.8
Amortization3.23.74.54.8
Net domestic financing4.83.411.012.2
Net NRB financing−0.1−2.13.06.3
Net commercial bank2.45.57.24.0
Net nonbank2.5−0.10.72.0
(In percent of GDP)
Total revenue10.210.711.411.5
Tax revenue8.48.79.59.3
Nontax revenue1.82.01.92.2
Grants1.31.51.61.4
Total expenditure15.415.717.617.2
Current 2/9.39.611.211.6
Capital and net lending 2/6.16.16.45.7
Overall balance before grants−5.2−5.0−6.2−5.7
Overall balance after grants−3.9−3.5−4.5−4.3
Financing3.93.54.54.3
Net foreign loans2.52.61.81.4
Gross disbursements3.53.62.92.6
Amortization0.91.01.11.1
Net domestic financing1.40.92.72.9
Central bank financing0.0−0.60.71.5
Commercial Bank financing0.71.51.80.9
Nonbank financing0.70.00.20.5
Memorandum items:
Public savings (percent of GDP)0.91.10.20.0
Regular expenditure (percent of GDP) 2/7.77.79.09.8
Development expenditure (percent of GDP)7.78.08.55.4
Nominal GDP (billions of Nrs)342.0379.5410.3421.3
Sources: Data provided by Ministry of Finance; and Fund staff estimates.
Table 12.Nepal: Central Government Revenue, 1998/99–2001/02
1998/991999/20002000/012001/02
(In millions of Nepalese rupees)
Total revenue 1/35,00840,71146,83748,556
Tax revenue28,75133,15238,86539,330
Taxes on income and profits6,1707,4219,1148,920
Taxes on property1,1251,1346161,133
House and land registration1,0021,0116081,131
Taxes on goods and services11,93813,78416,58316,618
Value-added tax7,8829,85512,04811,948
Excise taxes2,9533,1283,7713,808
Other1,103801765862
Taxes on international trade9,51810,81312,55212,659
Import taxes7,9209,00910,56910,011
Indian excise refund1,2061,3321,4561,701
Export taxes378432493917
Other14403430
Nontax revenue 1/6,2577,5597,9719,226
Charges, fees, fines, etc.1,4461,7471,9311,987
Sales of goods and services1,0361,0681,1841,143
Dividends1,7832,5072,3362,513
Royalty and fixed asset sales202563950724
Interest receipts1,6861,5681,4401,220
Miscellaneous1031041311,639
(In percent of GDP)
Total revenue10.210.711.411.5
Tax revenue8.48.79.59.3
Taxes on income and profits1.82.02.22.1
Taxes on property0.30.30.20.3
Taxes on goods and services3.53.64.03.9
Value-added tax2.32.62.92.8
Excise taxes0.90.80.90.9
Other0.30.20.20.2
Taxes on international trade2.82.83.13.0
Nontax revenue1.82.01.92.2
Memorandum item:
Nominal GDP (in billions of Nrs)342.0379.5410.3421.3
Sources: Data provided by Ministry of Finance; and Fund staff estimates.
Table 13.Nepal: Central Government Expenditure by Economic Classification, 1998/99–2001/02
1998/991999/20002000/012001/02
(In millions of Nepalese rupees)
Total expenditure52,83159,75472,08772,572
Current expenditure32,01236,45645,83748,718
Goods and services23,72626,54735,42837,915
Wages, salaries, and benefits18,14219,77528,50629,921
Core civil service7,1247,70111,31210,015
Police salaries2,5782,8424,0505,022
Defense salaries2,4592,8723,6074,456
Teacher salaries5,9826,3609,53710,429
Retirement facilities1,1891,3142,0542,759
Other goods and services4,3955,4584,8695,235
Interest payments4,0804,8204,6985,770
Domestic2,5313,1802,9973,954
Foreign1,5491,6401,7011,816
Subsidies and transfers4,2075,0895,7125,033
Capital expenditure19,01719,35821,18820,932
Acquisition of fixed assets13,28813,13014,44713,811
Purchase of stocks1,5561,3151,1091,549
Capital transfers (grants)4,1734,9135,6325,573
Lending minus repayments1,8023,9405,0622,922
Investment in loans4,0446,1237,1194,811
Less: Repayment of loans2,2422,1832,0571,889
(In percent of GDP)
Total expenditure15.415.717.617.2
Current expenditure9.49.611.211.6
Goods and services6.97.08.69.0
Wages, salaries, and benefits5.35.26.97.1
Retirement facilities0.30.30.50.7
Other goods and services1.31.41.21.2
Interest payments1.21.31.11.4
Domestic debt0.70.80.70.9
Foreign debt0.50.40.40.4
Subsidies and transfers1.21.31.41.2
Capital Expenditure5.65.15.25.0
Acquisition of fixed assets3.93.53.53.3
Purchase of stocks0.50.30.30.4
Capital transfers (grants)1.21.31.41.3
Lending minus repayments0.51.01.20.7
Investment in loans1.21.61.71.1
Less: Repayment of loans0.70.60.50.4
Memorandum items:
Regular expenditure (in millions of Nrs) 1/26,47329,31137,07944,079
Development expenditure (in millions of Nrs) 2/26,35830,44335,00928,493
Nominal GDP (in billions of Nrs)342.0379.5410.3421.3
Sources: Data provided by Ministry of Finance; and Fund staff estimates.
Table 14.Nepal: Central Government Expenditure by Functional Classification, 1998/99–2001/02
1998/991999/002000/012001/02
(In millions of Nepalese rupees)
Total expenditure52,83159,75472,08772,572
Regular expenditure26,47329,31137,07944,079
Social services7,8768,88110,69213,454
Education6,0046,7178,22610,413
Health1,1371,3251,5472.115
Other735839919926
Economic services2,3212,4112,5332,965
Agriculture related431469524575
Forestry732791829965
Infrastructure8638919241,055
Communications560560560914
Transportation250250250270
Other295260255370
Defense2,9953,4823,8135,785
Interest payments4,0804,8204,6985,770
General administration4,5325,4548,02710,961
Other4,6694,2627,3165,144
Development expenditure26,35830,44335,00928,493
Social services9,66812,20212,87310.477
Education1,6412,5742,7842,266
Health1,6772,1271,9721.605
Drinking water1,9002,4232,4071,959
Other4,4505,0795,7094.647
Economic services16,69018,24122,13618,016
Agriculture related4,9055,6536,6245.391
Infrastructure11,39811,35012,77910.401
Other3871,2382,7322.224
(In percent of GDP)
Total expenditure15.415.717.617.2
Social services5.15.65.75.7
Of which:
Education2.22.42.73.1
Health0.80.90.90.9
Drinking water0.60.60.60.5
Economic services5.65.46.05.0
Of which:
Agriculture related1.61.61.71.4
Infra structure3.63.23.32.7
Defense0.90.90.91.4
Interest payments1.21.31.11.4
General administration1.31.42.02.6
Other1.41.11.81.2
(In percent of total expenditure)
Social services33.235.332.733.0
Of which:
Education14.515.515.317.5
Health5.35.84,95.1
Drinking water3.64.13.32.7
Economic services36.034.634.228.9
Of which:
Agriculture related10.110.29.98.2
Infrastructure23.220.519.015.8
Defense5.75.85.38.0
Interest payments7.78.16.58.0
General administration8.69.111.115.1
Other8.87.110.17.1
Sources: Data provided by Ministry of Finance; and Fund staff estimates.
Table 15.Nepal: Profits and Losses of Selected Nonfinancial Public Enterprises, 1998/99–2001/02 1/
1998/991999/002000/012001/02 2/
(In millions of Nepalese rupees, end of period)
Agricultural Input Corporation−26614−62−112
Nepal Drinking Water Corporation−24−48−80−114
Hetauda Cement Company17−27−117−11
Janakpur Cigarette Factory−3206030
Nepal Electricity Authority356817−71514
Nepal Food Corporation4226209372
Nepal Oil Corporation1,055101425672
Nepal Telecommunication Corporation (NTC)2,0452,02821471731
Royal Nepal Airline Corporation−5514−993−197
Others−141−400−2,699196
Total (excluding NTC)9811,430−3,497750
Total (including NTC)3,0263,458−1,3512,482
(In percent of GDP)
Agricultural Input Corporation−0.080.00−0.02−0.03
Nepal Drinking Water Corporation−0.01−0.01−0.02−0.03
Hetauda Cement Industry0.00−0.01−0.030.00
Janakpur Cigarette Factory0.000.010.010.01
Nepal Electricity Authority0.100.22−0.020.12
Nepal Food Corporation0.010.010.050.09
Nepal Oil Corporation0.310.270.060.02
Nepal Telecommunication Corporation (NTC)0.600.530.520.41
Royal Nepal Airline Corporation−0.020.00−0.24−0.05
Others−0.04−0.11−0.660.05
Total (excluding NTC)0.290.38−0.850.18
Total (including NTC)0.880.91−0.330.59
Memorandum items:
Number of profit-making enterprises14201922
Number of loss-making enterprises21151815
Total number of employees 3/35,57847,17845,721
Source: Data provided by the Nepalese authorities.
Table 16.Nepal: Interest and Dividend Payments of Public Enterprises to Government, 1998/99–2001/02

(In millions of Nepalese rupees)

1998/991999/20002000/012001/02 1/
InterestDividendTotalInterestDividendTotalInterestDividendTotalInterestDividendTotal
Agricultural Development Bank3403429029444044482082
Agricultural Inputs Corporation000
Cottage Handicraft Emporium000011
Credit Guarantee Corporation011011022022
Hctauda Cement Factory3803820020808
National Insurance Co.
Nepal Drinking Water Corporation6706743043
Nepal Electricity Authority7007048104811,14901,1491,25001,250
Nepal Industrial Development Corporation02020133013357057
Nepal Rastra Bank1,3001,3001,5001,5002,0002,0002,2502,250
Nepal Transport Corporation000
Royal Nepal Airlines000
Salt Trading Corp.
Securities Exchange Centre000
Others278148426
Total4201,4691,8896631,5012,1641,7172,0033,7201,3822,2523,634
Sources: Data provided by the authorities; and Targets and Performances of Public Enterprises, Ministry of Finance, 2002.
Table 17.Nepal: Monetary Survey, 1997/98–2001/02
1997/981998/991999/002000/012001/02
(In millions of Nepalese rupees, end of period)
Net foreign assets55,57365,02880,46887,79888,419
Assets66,11477,61194,856106,191106,996
Liabilities10,54112,58314,38818,39318,577
Net domestic assets70,89087,772105.653126,656135,569
Domestic credit112,820130,973154,351183,434200,311
Public sector29,81932,62536,40146,99358,596
Government (net)28,76131,05834,59344,77055,520
Nonfinancial public enterprises1,0591,5671,8082,2233,076
Private sector 1/83,00198,348117,950136,441141,714
Other items (net)−41,930−43,200−48,698−56,778−64,742
Broad money126,463152,800186,121214,454223,988
Narrow money45,16451,06260,98070,57777,156
Quasi-money81,299101,738125,141143,877146,832
(Annual percentage change)
Net domestic assets11.623.820.419.97.0
Domestic credit14.816.117.818.89.2
Public sector5.89.411.629.124.7
Private sector 1/18.418.519.915.73.9
Broad money21.920.821.815.24.4
Narrow money17.413.119.415.79.3
Quasi-money24.625.123.015.02.1
(12-month change in percent of broad money)
Net foreign assets14.87.510.13.90.3
Net domestic assets7.113.311.711.34.2
Domestic credit14.014.415.315.67.9
Public sector1.62.22.55.75.4
Private sector 1/12.412.112.89.92.5
Memorandum items:
Velocity (GDP/M2)2.42.22.01.91.9
Money multiplier2.72.93.13.02.8
Sources: Data provided by Nepal Rastra Bank; and Fund staff estimates.
Table 18.Nepal: Assets and Liabilities of Nepal Rastra Bank, 1998/99–2001/02
1998/991999/002000/012001/02
(In millions of Nepalese rupees, end of period)
Net foreign assets52,60865,28574,96581,094
Assets54,13966,64876,14481,795
Liabilities1,5311,3631,178700
Net domestic assets−382−4,281−4,399−2,125
Claims on public sector18,40716,42319,38426,269
Government (net)18,39916,41619,37726,261
Nonfinancial public enterprises8888
Claims on private sector 1/3,0113,7245,0144,874
Claims on commercial banks64561,043
Other items (net)−21,805−24,473−28,802−34,311
Reserve money52,22561,00470,56778,970
Currency outside banks34,98442,14348,29555,658
Currency held by banks3,3103,5074,1174,909
Bankers’ deposits11,85812,88115,98516,152
Private sector deposits2,0732,4732,1702,250
(12-month change in percent of reserve money at start of period)
Net foreign assets13.624.315.98.7
Net domestic assets−0.1−7.5−0.23.2
Reserve money13.516.815.711.9
Memorandum items:
Currency/deposits ratio29.729.329.133.1
Reserves/deposits ratio13.111.612.312.7
Sources: Data provided by Nepal Rastra Bank; and Fund staff estimates.
Table 19.Nepal: Assets and Liabilities of Commercial Banks, 1997/98–2001/02

(In millions of Nepalese rupees, end of period)

1997/981998/991999/002000/012001/02
Assets122,686148,196178,800209,185215,431
Reserves13,43315,16816,38820,10221,061
Foreign assets17,72123,47328,20830,04725,202
Claims on Government10,28112,65918,17725,39329,259
Claims on nonfinancial public enterprises1,0511,5591,8012,2163,069
Claims on financial public enterprises 1/5055981,0451,372806
Claims on business and individual79,69594,739113,182130,056136,034
Liabilities122,686148,196178,800209,185215,431
Demand deposits12,60114,00516,36420,11219,248
Savings deposits35,47048.11463,36477,60279,984
Fixed deposits44,02251,61259,77464,17865,060
Margin deposits1,8072,0112,0032,0981,788
Foreign currency deposit8,50211,05213,02517,21417,649
Borrowing from the central bank654561,044
Other items (net)20,27921,39724,22527,97630,658
Memorandum item:
Priority sector lending (in percent of total domestic credit)12.113.213.013.113.5
Sources: Data provided by Nepal Rastra Bank, and Fund staff estimates.
Table 20.Nepal: Assets and Liabilities of Finance Companies, 1998/99–2001/02

(End of period)

1998/991999/20002000/012001/02
Nrs millionsPercentNrs millionsPercentNrs millionsPercentNrs millionsPercent
Assets10,633100.013,050100.015,797100.018,452100.0
Cash1101.0960.71400.91700.9
Bank balance1,0239.61,63312.61,90912.12,69214.6
Investment1,26211.91,1298.61,2688.01,6238.8
Of which: government securities9328.88436.58375.31,1206.1
Loans and advances7,21967.99,06369.410,86568.811,95064.8
Term loans3,10529.24,24032.44,70429.85,29328.7
Housing loans2,00418.82,34018.02,96518.83,14417.0
Hire purchases1,30412.31,64012.62,15213.62,43613.2
Fixed deposit receipt loans4984.74753.64642.94792.6
Leasing2602.42351.82781.83642.0
Other480.51331.03021.92341.3
Other1,0199.61,2298.71,61510.22,01710.9
Liabilities10,633100.013,050100.015,797100.018,452100.0
Deposits8,03775.69,74974.611,65473.813,45472.9
Paid-up capital8387.99457.21,2217.71,5238.3
Borrowings830.81761.32151.42451.3
Reserves 1/3363.25443.87084.51,1396.2
Other1,33912.61,63613.11,99912.72,09111.3
Memorandum items:
Liquidity ratio (in percent)25.425.924.329.1
Loan/deposit ratio (in percent)89.993.093.288.8
Number of finance companies45464854
Source: Data provided by Nepal Rastra Bank.
Table 21.Nepal: Outstanding Bank Credit to Major Public Enterprises, 1996/97–2001/02

(In millions of Nepalese rupees, end of period)

1996/971997/981998/991999/002000/012001/02
Principal6,6037,0087,1628,3209,6919,348
Financial institutions5,4306,1695,9006,8788,0096,665
Agricultural Development Bank3,7514,2955,4476,3757,4436,169
Nepal Industrial Development Corporation1,1841,2632515150
Rural Development Banks4085214134304930
Other 1/8790155858496
Nonfinancial public enterprises1,1738391,2621,4421,6822,684
Agricultural Input Corporation320162420561
Agricultural Tools Factory18217615023210
Janak Educational Material Center83058935557
Cottage Industrial and Handicraft Emporium17105692
Himal Cement Company192527272931
Janakpur Cigarette Factory1461451211237673
Nepal Food Corporation317266427485389371
Raghupati Jute Mill10000-0
Royal Nepal Airline Corporation8386117611576
Hctauda Leather Factory2332290
Tobacco Development Corporation00000
Nepal Coal Limited500110
Other 1/1391651433564261573
Overdue interest426221301365535389
Financial institutions2246110
Nonfinancial public enterprises424219297359534380
Total outstanding credit7,0297,2297,4638,68510,2269,738
Source: Data provided by the Nepalese authorities.
Table 22.Nepal: Gross International Reserves, 1996/97–2001/02
1996/971997/981998/991999/002000/012001/02
(In millions of U.S. dollars, end of period)
Gross foreign assets of NRB6517167959461,0201,048
Foreign exchange reserves of NRB6367027819321,0071,035
Convertible475533709772710727
Nonconvertible16116972160297308
Other gross foreign assets of NRB151414141414
Gold 1/666666
Reserve tranche position888878
Foreign exchange reserves of commercial banks219262345401402323
Convertible203246304369364303
Nonconvertible161641323820
(In months of imports of goods and services)
Memorandum item:
Gross foreign assets of NRB4.45.34.95.67.06.7
Source: Data provided by the Nepalese authorities.
Table 23.Nepal: Nonperforming Bank Loans of Public Enterprises, 1998/99–2001/02

(In millions of Nepalese rupees, end of period)

1998/991999/20002000/012001/02 1/
PrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotal
Nepal Food Corporation74117512000000
Nepal Transportation Corporation202848192746000196988
Himal Cement Company202000000296190
Bhaktapur Tile and Brick Factory325235347162137
Rice Exporting Companies3323533235332353811
Cottage Industries and Handicraft Emporium0136136013613601361363136139
National Trading Limited000001000000
Agricultural Tools Factory0001378145000000
Hetadua Leather Factory32528228302333523436
Hetadua Clothes Factory3023237845371552000
Total682292972072474554522026572329401
Source: Data provided by the Nepalese authorities.
Table 24.Nepal: Structure of Interest Rates, 1996/97–2001/02

(Annual percentage rates, end of period)

1996/971997/981998/991999/002000/012001/02
Refinancing facilities of Nepal
Rastra Bank to commercial banks
Export bills11.09.09.06.56.52.0-4.5
Industrial sector11.09.09.07.57.53.0-5.5
Agricultural sector11.09.09.06.56.54.5-5.5
Service sector11.09.09.07.57.53.0-5.5
Commercial banks
Savings deposits7.5-8.06.5-8.05.75-8.04.0-6.53.0-6.52.5-6.25
Time deposits
3 months6.75-9.05.0-8.04.0-7.54.0-6.02.5-6.02.0-5.25
6 months7.25-9.06.0-8.56.0-8.05.0-6.753.5-6.752.5-6.0
1 year9.5-11.09.0-10.57.25-9.56.0-7.754.5-7.753.5-7.0
2 yearsnegotiable9.5-12.07.25-10.255.75-8.54.25-8.53.25-8.0
Loans
Industry15.0-17.513.5-17.011.5-17.010.5-15.59.5-15.07.0-14.5
Agriculture14.5-16.014.5-15.514.0-15.512.0-14.512.5-14.512.0-14
Services18.018.018.07.5-17.07.5-16.07.0-15.5
Export bills14.5-16.512.5-16.07.5-15.07.5-15.07.5-12.56.5-12.5
Commercial loans and overdrafts14.5-20.013.5-20.010.0-19.09.0-18.09.0-18.07.0-17.0
Agricultural Development Bank of Nepal
To cooperatives12.0-15.013.0-16.013.0-16.011.0-12.011.0-12.010.0-12.0
To others14.0-17.015.0-18.015.0-18.012.0-16.012.0-16.010.0-16.0
Nepal Industrial Development
Corporation15.5-18.015.5-18.015.5-18.015.5-18.015.5-18.013.5-14.5
Government securities
National savings certificates9.0-13.259.0-13.259.0-13.258.5-13.258.5-13.258.5-13.25
Treasury bills (3 month) 1/10.23.52.34.64.93.8
Treasury bills (1 year) 1/10.26.95.76.25.35.2
Development bonds3.0-12.03.0-12.03.0-12.03.0-10.53.0-10.53.0-8.0
25-year special bonds3.03.03.0
20-year special bonds5.05.05.05.05.05.1
Special loan1.0-13.01.0-13.01.0-9.51.0-9.51.0-9.51.0-9.0
Source: Nepal Rastra Bank.
Table 25.Nepal: Balance of Payments, 1998/99-2001/02

(In millions of U.S. dollars)

1998/991999/20002000/012001/02
IndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
Total
Trade balance−173−454−627−136−606−742−207−624−831−247−495−742
Exports, f.o.b.423340763557414971540402942512242754
Merchandise exports185340525307414721353402755376242618
Re-exports2380238250025018701871360136
Imports, c.i.f.5967941,3906931,0201,7137471,0261,7737597371,496
Services (net)3927431346227273451712162780108
Receipts140405545142371513133344477111250362
Payments101131232961442408817326284170254
Private transfers (net)108230338135362497158522680165613778
Receipts1222323541533715241755246991S9614803
Recorded private transfers66122188741502247321729083233316
Estimated remittances5611016679221300102307409106381487
Payments14216189271721924125
Current account balance (excluding grants)−26502445−1728−46965−55198144
Official grants19118137241091337879422121143
Current account balance (including grants)−716816169921613156159−33319287
Official capital grants and loans (net)22362383218221112012128587
Grants2109111373761171824648
Loans (net)01271270145145010310303939
Loans0174174019819801641640105105
Amortization04747053530616106666
Private capital grants03232032320656502222
Other investment, net and errors and omissions−66−229−29513−235−22280−386−30738−465−427
Overall balance−712071368510719284−45387−39−31
Memorandum item:
Current account balance (percent of GDP)−0.51.00.50.8−0.30.5−0.11.21.2−1.03.62.6
Source: Data provided by the Nepalese authorities.
Table 26.Nepal: Composition of Foreign Trade, 1998/99-2001/02 1/

(In millions of U.S. dollars)

1998/991999/20002000/012001/02
IndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
Total
Exports, f.o.b.423340763557414971540402942512242754
Merchandise exports185340525307414721353402755376242618
Food and live animals3025555476154116563770
Tobacco and beverages101101101202
Crude materials and inedibles5277181011012113
Animal and vegetable oil and fats50353424465325695398
Chemicals and drugs41041561575415542042
Manufactured goods, classified481511998114923012113625713193224
Machinery and transport equipment011336325415
Miscellaneous manufactured articles10158168632493125725030727137164
Commodities and transactions n.i.e. 1/000000000000
Re-exports2380238250025018701871360136
Imports, c.i.f.5967941,3906931,0201,7137471,0261,7737597371,496
Food and live animals813111210156157602181751792
Tobacco and beverages103139413941210111
Crude materials and inedibles20729222791013270102385189
Minerals, fuel and lubricants12899227129144273151206357197108305
Animal and vegetable oil and fats1484916364670760102102
Chemicals and drugs811031849111921090851756994163
Manufactured goods, classified154223377203295498245313558244180424
Machinery and transport equipment98168266101196297118194312100145245
Miscellaneous manufactured articles204363346397356298243963
Commodities and transactions n.i.e. 1/347213202202
Trade balance (percent of GDP)−3.4−9.0−12.5−2.5−11.0−13.5−3.7−11.2−14.9−4.5−8.9−13.4
Exports8.46.815.210.17.517.79.77.216.99.24.413.6
Imports11.815.827.612.618.631.213.418.431.813.713.327.0
Source: Data provided by the Nepalese authorities.
Table 27.Nepal: Exports of Major Commodities, 1997/98-2001/02

(In thousands of U.S. dollars)

1997/981998/991999/20002000/012001/02
Carpets136,970144,253142,495116,37880,775
Pashmina0090,00492,77724,463
Ready-made garments113,243142,780201,859177,769101,786
Hides and skins9,9216,6374,9349,6028,029
Jute goods11,62612,81815,98217,52921,203
Pulses17,06417,61415,30016,45115,804
Handicrafts2,5733,2383,6663,5643,150
Cardamon3,6763,4353,2294,0394,650
Catechu1,1251,7262,8852,0322,287
Ghee2,6965775446,375165
Mustard and linseed153283424513133
Raw jute81101,539103
Dried ginger670605861826887
Herbs1,0526031,1051,3191,237
Total300,850334,570483,288450,713264,672
Other exports143,706190,708238,365304,100353,699
Of which: Vegetable ghee25,50446,30539,71348,22391,625
Total merchandise exports444,556525,278721,653754,813618,371
Memorandum items:
Carpets (thousands of square meters)2,4472,5752,6242,2101668
Ready-made garments (thousands of pieces)34,95137,74746,83643,43134058
Pulses (metric tonnes)30,56728,5092,36515,0946022
Exchange rate (annual average mid-rate)61.9567.9569.0773.2476.88
Source: Data provided by the Nepalese authorities.
Table 28.Nepal: Average Customs Duty by Main Categories of Goods, 1999/2000-2001/02 1/
Chapter NumbersMain Category of Goods1999/002001/02
1–10Live animals5.010.5
11–20Grains, vegetable extracts, sugars15.616.7
21–30Beverages, tobacco, mineral fuels, pharmaceuticals11.713.6
31–10Fertilizers, cosmetics, soaps, chemicals, plastics15.320.6
41–50Rawhides, skins, wood, paper, silk10.911.7
51–60Wool, cotton, man–made fibres, carpets13.211.2
61–70Clothing, footwear, ceramics, glassware, stoneware21.120.1
71–80Iron, steel, copper, nickel, aluminium, lead, zinc, tin12.912.9
81–90Tools, machinery, vehicles, aircrafts11.911.9
91–97Clocks, musical instruments, arms, furniture, art20.621.1
Total number of items5,1985,321
Sum of duties68,31076,441
Average customs duty13.1414.36
Source: Ministry of Finance.
Table 29.Nepal: Services and Current Transfers, 1998/99 2001/02

(In millions of U.S. dollars)

1998/991999/20002000/012001/02
IndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
TotalIndiaThird

Countries
Total
Services and current transfers (net)1666227882056989032107809902148141,028
Services (net)3927431346227273451712162780108
Receipts140405545142371513133344477111250362
Freight and insurance000000000000
Transportation11455616486410465662733
Travel5312617955120175471121593775113
Investment income236382495195160132639
Compensation of employee21113214162121411516
Government, n.i.e.47144191359312836661023086116
Other254368324779295786242145
Payments101131232961442408817326284170254
Freight and insurance26329272292432716218
Transportation23436538434414573845
Travel433477333669324375344175
Investment income02626031310515106363
Compensation of employee101000000101
Government, n.i.e.099099369077
Other292554312859252954261945
Private current transfers (net)108230338135362497158522680165613778
Receipts122232354153371524175524699189614803
Private remittances66122188741502247321729083233316
Indian excise refund18019190191901922022
Other estimated remittances5611016679221300102307409106381487
Payments14216189271721924125
Official current transfers (net)19118137241091337879422121143
Receipts19118137241091337879422121143
Payments000000000000
Source: Data provided by the Nepalese authorities.
Table 30.Nepal: Composition of Imports and Import Duties, 1996/97-2001/02

(In millions of Nepalese rupees)

1996/971997/981998/991999/002000/012001/02
Imports from India29,94134,51842,66049,42154,56158,682
Of which: Dutiable imports23,77427,28225,46227,58744,73849,878
Import duties from India2,3592,7073,4304,2184,9675,794
As a percent of dutiable imports9.99.913.515.311.111.6
As a percent of total imports7.97.88.08.59.19.9
Imports from third countries71,51661,81249,15660,47160,10150,591
Of which: Dutiable imports50,70152,77031,33438,56750,00235,052
Import duties from third countries4,7484,5234,4794,9135,4195,573
As a percent of dutiable imports9.48.614.312.710.811.0
As a percent of total imports6.67.39.18.19.015.9
Total imports101,45696,33091,816109,892114,662109,273
Dutiable imports74,47580,05256,79666,15494,74083,219
Aid-related imports26,98116,27835,02043,73819,92226,054
Total import duties7,1077,2307,9099,13110,38711,367
As a percent of dutiable imports9.59.013.913.811.013.7
As a percent of total imports7.07.58.68.39.110.4
Sources: Department of Customs, Ministry of Finance.
Table 31.Nepal: External Debt and Debt Service, 1996/97-2001/02
1996/971997/981998/991999/20002000/012001/02
(In millions of U.S. dollars)
Debt outstanding 1/2,4822,5622,7032,8482,7862,933
Total medium and long term2,3612,4152,5332,6622,6302,808
Multilateral1,9832,0902,1692,2442,2512,394
AsDB8029109481,0121,0431132
EEC887666
IDA1,0591,0801,1071,1231,1021156
IFAD574458575557
IMF34252115107
NDF161820201920
OPEC769111616
Bilateral 2/378324363418379414
Austria554655
Belgium766548
Finland666766
France515248454044
Korea021010910
Kuwait1312111088
OECF (Japan)286229264309291317
Saudi Fund101314261616
Short-term debt 3/121147170186156125
Total debt service8486848398132
Amortization 4/556259576981
Of which: IMF 5/7.36.96.65.65.24.3
Interest 4/282425262951
Of which: IMF0.70.70.70.40.40.4
(In percent)
Debt-service ratio 6/4.84.75.04.76.17.5
Of which: IMF0.50.50.30.20.20.4
Debt/GDP50.552.853.751.849.952.9
Of which: IMF0.70.50.40.30.20.1
Sources: Data provided by Ministry of Finance and Nepal Rastra Bank; and Fund staff estimates.
Table 32.Nepal: Social Indicators
Latest Single YearSame Region/Income Group
1970–751980–851994–2000IndiaSouth

Asia
Low

Income
Total population, mid-year (millions)13.116.223.01,015.91,355.12,459.8
Growth rate (percent annual average)2.02.12.41.81.92.0
Urban population (percent of population)5.07.811.928.428.431.9
Total fertility rate (births per woman)6.25.94.33.13.33.6
Total labor force (millions)7114395851,085
Females in labor force (percent)3940323338
Labor force participation rate4848434350
Poverty (percent of population)
National head count index42.035.0
Urban headcount index23.030.5
Rural headcount index44.036.7
Income
GNP per capita (U.S. dollars)120170240450440410
Consumer price index (1995=100)1735137144142140
Food price index (1995=100)33144137
Income/consumption distribution
Gini index36.737.8
Lowest quintile (percent of income or consumption)7.68.1
Highest quintile (percent of income or consumption)44.846.1
Public expenditure
Health (percent of GDP)1.30.80.91.2
Education (percent of GNP)1.52.62.52.93.03.4
Social security and welfare (percent of GDP)0.10.10.4
Net primary school enrollment rate (percent of age group)
Total6078777786
Male8093838389
Female3763717082
Gross secondary school enrollment
Total12273249
Male19394559
Female4141839
Adult literacy (percent)2258686671
Female literacy33454252
Access to an improved water source (percent of population)
Total81888776
Urban85929288
Rural80868570
Access to electricity (percent)1554
Population per physician30,22113,6172,4592,500
Population per hospital bed5,7194,3081,5031,4291,152
Immunization rate (percent under 12 months)
Measles3473505357
DPT3276555757
Child malnutrition (percent under 5 years)69474749
Life expectancy at birth (in years)
Total455159636259
Male465259626258
Female445059636360
Mortality
Infant (per thousand live births)16011574697376
Under 5 (per thousand live births)2341801058896115
Adult (15-59)
Male (per 1,000 population)482376260222227294
Female (per 1,000 population)476395265209212261
Maternal (per 100,000 live births)830440
Sources: Staff reports; EDSS; and World Bank 2002 World Development Indicators.
Table 33.Nepal: Summary of the Tax System

(As of July 1, 2003)

TaxNature of TaxExemptions and DeductionsTax Rates
1. Taxes on income and profits
1.1 Taxes on business incomeLevied on net income from public, private, and joint-venture enterprises.Deductions:Business typeTax rates

(In percent)
a. All costs incurred during the year: by the person; and in the production of income from the business.Normal25
b. Donation.Special industry:1/
c. Retirement contribution.Employing 600+ Nepali18
d. Up to 5 percent reserve allowance in case of commercial banks as per the instruction of the NRB.Operating remote areas for ten years

Other
14-16

20
Financial institutions30
1.2 Taxes on employment incomeLevied on net income from individual’s remuneration from the employment of the individual during the year.Deductions:

a. Donation

b. Retirement contribution.

Exemption threshold:

Single Nrs 65,000

Married Nrs 85,000
Income bracket



Below Nrs 75,000

Above Nrs 75,000
Tax rates

(In percent)

15

25
1.3 Taxes on investment incomeLevied on profits and gains from investment, including dividend, interest, rent, royalty, and retirement payment.Deductions:

Same as prescribed in the above business income.

Exemptions:

a. Final withholding payments.

b. Amounts included in calculating the taxpayers’ income from any business or employment.

General exemptions:2/

a. amounts derived by a person entitled to privileges under a bilateral or a multilateral treaty concluded between the Nepalese government and a foreign country;

b. amounts derived by an individual from employment in the public service of the foreign government;

c. amounts derived from public funds of the foreign country by an individual who is not a citizen of Nepal;

d. amounts derived by an individual who is not a citizen of Nepal from employment by the Nepalese government;
Income type



Interest, other retirement payment, rent Interest to individuals on deposits

Retirement payment from approved source

Dividend, gains from investment insurance; or gains from other unapproved source
Tax rates

(In percent)

15

6

6

10
e. allowances paid by the Nepalese government to widows, elder citizens, or disabled individuals;
f. amounts derived by way of gift, bequest, or scholarship;
g. amounts derived by an exempt organization by way of (i) gift, or (ii) other contributions;
h. an agricultural income;i. incomes and dividends derived by cooperative societies;
j. income of an approved retirement fund; and
k. pension received by retired army or police service of foreign countries, paid by the public fund of that country.
2. Taxes on property
2.1 Tax on rural landLevied on the size of an individual’s land holdings. The tax rates vary with the location and type of the soil.There is full or partial remission of the land revenue tax in the presence of a drought or other natural calamity.For holdings of less than 1 hectare, Nrs 0.6 to 10 per hectare. For larger holdings, Nrs 2.6 to 105 per hectare.
2.2 Taxes on urban houses and landLevied on the property value.Property values of up to Nrs 1 million are exempted.Property valueMarginal tax rales
Next 1 millionNrs 300
Next 3 millions0.05 percent
Next 5 millions0.25 percent
Next 10 millions0.50 percent
Remaining1.50 percent
2.3 Registration feesLevied on the value of property at the time of sale, gifts, or on partition.Urban Areas

Sales deeds
Gifts within third generation2 percent
Gifts out of third generation10 percent
Sales6 percent
Non-urban Areas
Gifts within third generation1 percent
Gifts out of third generation5 percent
Sales3 percent
Partition Deeds
Value of propertyTax
0-50,000Nil
50,001-200,000Nrs 200
200,001-500,000Nrs 1,000
500,001-1,000,000Nrs 2,000
1,000,001-5,000,0000.25 percent
5,000,001-10,000,0000.50 percent
Above 10,000,0010.75 percent
3. Taxes on goods and services
3.1 Value-added taxLevied on goods and services at all stages of production and distribution.Exemption threshold: Nrs 2 million10 percent
Exemptions:

Exports, inputs used in the production of exports, and foreign aid projects.
Equipment for agricultural, fishery, and industrial activities; domestically produced cotton fabric, cotton textiles, and other textiles; cotton thread; woolen yarn; carpets; jute products; gold ornaments; unprocessed; aero planes, helicopters, fire fighters, and ambulances; battery operated three-wheeler; printed material; vaccines; food and medicine for animals; equipment for processing waste and for investment in alternative energy sources. Unprocessed mustard oil, primary agricultural products.
Additional goods exempted from VAT in the 2000/01 budget were sarees made of cotton and artificial fibres; organic tea.
3.2 Excise taxesLevied on some goods; the high-yielding are those on cigarettes and liquor.Liquor industries based on fruits receive a five-year exemption, with an additional three-year extension for locating in remote areas.Specific taxes
CigarettesPer 1,000 cigarettes
Nonfiltered cigarettesNrs 125
Filtered cigarettes by length
ShortNrs 300
Medium (70 mm to 75 mm)Nrs 385
Medium (75 mm to 85 mm)Nrs 530
Long (above 85 mm)Nrs 710
Liquor typesPer L.P. liter
WhiskyNrs 275
VodkaNrs 160
Low-quality liquorNrs 50
BeerNrs 38
Ad valorem taxes
Pick-ups15 percent
3.3 Tourism feeLevied on tourism services.2 percent
3.4 Motor vehicle taxAn annual tax based on the size of the vehicle and whether it is for own use or rented.Annual tax rates
Size of vehicleFor gasoline-fueled vehiclesFor diesel engine vehicles
Cars, jeeps, and vans up to 1,300 ccNrs 6,500Nrs 10,000
1,301 cc to 2,000 ccNrs 8,500Nrs 13,750
2,001 cc to 2,900 ccNrs 10,000Nrs 17,500
2,901 cc to 4,000 ccNrs 12,300Nrs 23,000
Above 4,001 ccNrs 15,000Nrs 28,000
4. Taxes on international trade
4.1 Import dutiesLevied on c.i.f. import values.Exemptions:

Imports by the government, educational institutions, and foreign aid projects. Equipment for agricultural and fishery activities, food and medicine for animals, inputs for the textile industry and for computers, medicine from India.
Commodity Groups



Roughly:
Basic Duty Rates (In percent)
Raw material and machinery2.5-153
Semi-processed materials15-25
Fully processed materials15-25
Consumer items10 and 40
Luxury items80 and 130
Deductions:
50 percent on industrial machinery, 80 percent on aluminum, copper, and brass in block or plates. Rebates of 10B20 percent on imports from India and Tibet and, 5 percent on imports from most favored countries.
Development tax that replaced the octroi tax.1.5
4.2 Export dutiesLevied on a limited range of exportsHalf percent service duty on exportsA combination of ad valorem and specific tax rates apply.

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