Importance Of Stock Market In Nepal

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In the new and challenging environment, stock market would have a relatively more important role in the allocation of resources and diversification of risks. The stock market is important not only to finance growth but also to provide economic stability. As an integral part and indicator of the nation’s development, the stock market represents a vital part of the financial market infrastructure which, together with the banking sector, supports the economic growth of the country. From a broader economic perspective, the stock market contributes directly to national economic growth in terms of employment and tax revenues, and indirectly through facilitating greater knowledge development. Given the information-and technology-intensive nature of…show more content…
Nepal is a country with the highest peak of the world surrounded by India in South, East and West and by China in the North. It is a landlocked country with 800 kilometer long open border with India. In terms of physical features, Nepal can be divided into three main regions with wide variations in altitude and climate: (i) the Himalayan region, (ii) the Mountainous region, and (iii) the Terai region. With a total area of 1,47,181 square kilometers and an arable land comprising 23 percent of the total area. Nepal is known as one the most beautiful countries of the world endowed with both natural scenic beauty and rich cultural…show more content…
Agriculture still plays a big role in the lives of the Nepalese as over 70 percent of the population depends on it for their livelihood. It is still the key sector contributing to the country’s Gross Domestic Product with over 33 percent. Agriculture sector is contributing at a lower rate due to increased number of workforce going abroad for employment, migration from the villages to urban areas leaving significant portion of land uncultivated as well as lack of sufficient irrigation facility leading seasonal cultivation. Professionalization in agriculture imparting modern farming techniques and adopting new farming technologies, commercialization of agriculture produces and irrigation to all arable land with sufficient investments are highly desired to promote agriculture for the increased economic growth of the country. Similarly, tourism has also been a key sector contributing in the economy. Despite the tourism sector being a key source to national income, its contribution to national income has yet to be visible and satisfactory as there is still absence of Nepal Tourism Information System and Satellite Account for the regular collection and analysis of quality data and information on tourism sector. Tourism infrastructures need to be built up by increased investments along with improving security situation of the country in order to develop tourism sector as a major contributor to the economic
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