Kathmandu. Executive Director of Nepal Rastra Bank (NRB) Ram Sharan Kharel has said that the conflict in West Asia has once again posed a challenge to Nepal’s economy.

Nafeez said this at an interaction program on ‘Conflict in West Asia, Impact on Nepal’s Economy and Supply Chain’ today.

According to Kharel, the conflict in the Middle East has again added to the challenge at a time when there is excessive liquidity in the banking system, the interest rate of banks and financial institutions has been low and liquidity management is expected after the formation of the new government.

“Out of 17 countries in the Middle East, 15 countries have been receiving remittances. Of these, 41 percent of the total remittances will be affected by 41 percent if the conflict in Iran is not resolved in the short term,” Kharel said. ’

He said that although there is no immediate problem in the entire country, the problem will be seen immediately in the houses of those sending remittances. According to him, although the number of tourists coming from the Middle East is less than 6 lakh tourists in the period of six months, the impact of this will be seen in the tourism sector as well.

He argues that the conflict in the Middle East will increase the price of fuel and its impact will also be added to the price of production. He said that the conflict will also affect the demand for gold and silver and foreign exchange reserves.

“The geopolitical tension, floods and landslides and now the conflict in Iran are likely to affect the economy again before the economic situation does not return to normal from the coronavirus pandemic,” Kharel said, adding that the conflict has added more challenges to the economy as it was expected that the economy would gain momentum after the formation of a new government from the upcoming elections. ’

Commerce expert Rabi Shankar Sainju said Nepal should learn lessons from the Middle East and West Asia conflicts.

“What will be the impact of the Asian conflict on Nepal’s economy and what lessons we should learn from this incident. In fact, we should learn the lesson of taking the path of security and affecting the economy of what happened in another country,” Sainju said, “We should move forward by understanding the impact of the incident in another country on our economy.” ’

He said that tourism will also be affected due to the conflict.

“Air traffic will be affected due to the conflict and it will affect our tourism business. Now tourists have to stay at airports in different places,” he said, “Due to this situation, the number of tourists coming to Nepal is going to decrease.” ’

He said that such issues would affect Nepal’s tourism business as tourists give first priority to their safety.