RATNA SANSAR SHRESTHA
You don't need to be a Nobel-laureate economist to deduce that Nepal is technically insolvent. Our balance of trade deficit in the last fiscal year (2009-10) amounted to Rs320 billion. It was only Rs216 billion the year before. Our balance of payment deficit during the same period was Rs 2.92 billion. It was favorable by Rs38 billion the previous year.
The business community, renowned economists and the "hydrocracy" argue that the only way out is to export hydropower. Susan Goldmark, the World Bank country director in Nepal, lent credence to this diagnosis by declaring that Nepal's GDP could be comparable to that of Saudi Arabia if we exported hydropower.
Actually, it is because Nepal for the past two decades concentrated on projects to export hydropower that we are suffering an energy crisis in both electricity and petroleum products. This situation will get worse unless policymakers refocus and realign the country's energy policy.
Actually, it is because Nepal for the past two decades concentrated on projects to export hydropower that we are suffering an energy crisis in both electricity and petroleum products. This situation will get worse unless policymakers refocus and realign the country's energy policy.