In order to analyze the economic effects of the Covid-19 pandemic in Nepal and examine the scenario of Nepalese business and industries after the lockdown, Nepal Rastra Bank did a survey of 674 business owners and industrialists of 52 districts. 23.7% of the businesses surveyed were startups less than three months into operation.
This is the profile of the businesses surveyed categorized based on sector:
Wholesale and Retails
Hotels and Restaurants
Agriculture, Forestry, and Fisheries
Transport and Storage
Health and Community Activities
Real Estate and Rent
Electricity, Gas, and Water
The survey reported that 61% of the business and industries from Jestha 26 to Ashad 10 were closed during the period. They have had to lay off a fourth of their employees and had to introduce a pay cut of 18.2%. The Hotel industry laid off most employees among other sectors.
The businesses and industries surveyed had the Debt to Total Asset Ratio of 48.7% on average. Among the businesses and industries surveyed, a massive 74.3% had taken loans from Banks and Financial Institutions and 8.7% had borrowed from microfinance companies. Meanwhile, only 12% had not taken a loan of any sort.
When asked how long it would take them to get back to normal, the participants surveyed reported that it will take them nine months on average.
Only 20% of them reported getting tax cuts from Nepal Rastra Bank. On the contrary, 76% of those surveyed expect tax relief from the government.