Kathmandu. Vice Chairman of the National Planning Commission, Dr. Gunakar Bhatta has said that Nepal has been suffering a huge economic loss due to natural disasters. He said that the loss and damage caused by the recent disaster is about 6 percent of the gross domestic product (GDP).
Speaking at the National Financial Literacy Program, Bhatta said that Nepal has been facing losses equivalent to two percent of the Gross Domestic Product (GDP) every year due to natural disasters other than earthquakes.
He said, “If we look at it, we used to see that Nepal is losing two percent of the GDP every year due to natural disasters other than earthquakes. But looking at the latest incident and the data available so far, which shows the loss and damage of Rs 400 billion, it shows that there is a loss of 6 percent. ’
He said that there is a need to link the risks posed by natural disasters and climate change with financial literacy. He said that financial service delivery and financial literacy promotion programs should be taken to the targeted groups by including environmental risks and effects of climate change.
He said that along with the target customers of financial services, the disadvantaged regions, communities and women entrepreneurs should also be informed about climate and disaster risks.
“So we need to promote financial literacy and provide financial services to the interconnectedness of these things with environmental risks and the consequences of climate change, and to reach out to the targeted customers of financial services, the communities and women entrepreneurs in an equally informative way.”
Similarly, Secretary of the Ministry of Finance, Dr. Ghanashyam Upadhyay said that although there is a huge potential in the financial sector in Nepal, it has not been fully utilized due to lack of financial literacy. He said that financial literacy is important not only for risk management but also for increasing the flow of money in the economy.
“Despite our huge potential in the financial sector, its use is low due to lack of financial literacy,” he said. Upadhyay said that financial literacy should not be seen only with risk management. He said that the flow of money in the financial system and its cycle will also benefit the economy.
He said, “Not only from the point of view of risk management, but also from the point of view of its cash flow and the cycle that it has, the more the money cycle grows, the more the economy will benefit.” Financial literacy is also important to increase the mobility of money. ’
