MoFA Report Calls for Urgent Policy Measures to Reduce Fallout of West Asia Crisis

A high-level task force has recommended the government to formulate comprehensive policies and action plans to minimize the economic and social impacts of the ongoing tensions in West Asia.

According to the state-run national news agency RSS, the Ministry of Foreign Affairs made the recommendations public through a recent report prepared by an inter-ministerial high-level task force to study the West Asia crisis and its possible repercussions on Nepal.

Speaking at a press conference on Friday, Foreign Ministry Spokesperson Lok Bahadur Paudel Chhetri said the government was closely monitoring the evolving situation in the region and underscored the need for timely policy-level decisions to reduce adverse impacts.

According to the report, the conflict could have both direct and indirect effects on Nepal’s economy, agriculture, industry, tourism, trade, investment, foreign employment, remittance inflows, foreign currency reserves, balance of payments, and the supply of energy, fuel, food, and medicine.

“The repercussions of war affect developing countries like ours at different times,” RSS quoted Chhetri as saying, adding that prompt policy measures were necessary to avert potential crises triggered by the conflict.

The Ministry stated that around 1.8 million Nepalis work in Gulf countries and play a vital role in supporting the national economy through remittances. Chhetri said the livelihoods of many Nepalis were linked to the West Asia region and noted that the report had highlighted the impact of rising prices across sectors ranging from agriculture to industry.

Nepal has already started feeling the impact of the West Asia tensions, with Brent crude prices climbing above $100 per barrel. The rise in fuel prices pushed petrol prices in Nepal up from Rs 157 per litre to Rs 217 per litre. Subsequently, the government increased public transportation fares, while the country’s civil aviation regulator also raised airfares. The country is also facing higher prices for raw materials and difficulties importing fertilizers, developments that are expected to drive up overall prices further.