People's Review

Nepal’s stock market and economic growth: Some Reflections

Published on: April 14, 2021

“Price is what you pay. Brother, you get it. ”- Warren Buffett

By Shankar Man Singh

In principle, the stock market promotes economic growth by increasing investment levels and productivity. They increase the savings rate and even increase the efficient allocation of savings. As a result, more savings go to the corporate sector and economic growth is expected. As a result, more savings go to the corporate sector and economic growth is expected. There is a positive correlation between stock market growth and economic growth, but even in the meantime, open questions sometimes arise.

Just to recapitulate, stock markets in Asian, African and European countries were at risk as a result of the 2008 global financial crisis, and the negative impact of economic growth was worrying.

Why is the stock market rising despite Covid-19?

Why are the stock market prices rising even though Nepal’s real economy is weak? One factor is almost clear: the stock market has a relatively large impact on small businesses and low-income service businesses. For example, as the stock market looks ahead, current stock prices may be boosted by optimism about the successful use, arrival, and fundamentally improved testing and treatment options for effective Covid-19 vaccines.

According to some investors, this is a good sign if investors are consciously reducing their attachment to politics. The stock market is affected not only by politics but also by other policy decisions around the world. However, as the instability of political instability is recurring in Nepal, even if it has an immediate impact on the stock market, it is also a message for the political parties to take the growing stock market as a message given to politicians by investors.

The situation between politics and the economy in Nepal is not so comfortable, but in recent months, the enthusiasm of the stock market seems to be creating such a situation. Similarly, investment in the share market has also increased in recent times due to lack of demand from the private sector in banks and financial institutions and accumulation of investable funds and cheaper interest rates. As the share market decreases when the interest rate rises and the share market rises when the interest rate decreases, the relationship between the interest rate and the share market is always opposite.

It is not clear that markets are right in expecting a never-ending continuation of low-interest rates. However, long-term adverse supply effects, especially from “de-globalization”, could lead to long-term structural changes once global demand improves.

The ratio of GDP to market capitalization – the best way to develop the stock market compared to changes in the stock price index – was that some emerging economies fell more than 40% in 2008. But does the rise or fall of the stock market make a difference to economic growth? Ordinary people who don’t know about the stock market often consider the stock market as a casino. However, due to adequate policies and reforms, the stock market can play an important role in the economic growth of these countries. It occupies such an influential place in the economic theory of capital production and distribution that it is natural that it should have at least an equally important place in the theory and practice of economic development. From a historical or analytical or policy point of view, it is a process of capital accumulation.

In general, it has been pointed out that with high positive and significant cooperation, economic growth and capital accumulation and addition to the capital market can facilitate rapid economic growth even in conditions that can be described as lack of capital.

The relationship between the above-mentioned economic growth process and the process of capital accumulation led to earlier theories of economic development, and even the work of modern economists is expected to be limited by whether capital is sufficient. A higher rate of capital formation usually leads to a faster increase in production and income, but additional capital formation in itself does not provide the same momentum in the growth of production. It also has a large impact on the way it is used in the capital market.

The capital market is important for all financial instruments, be it for the short or long term or commercial, industrial, and government financial instruments. Capital market refers to all institutions and medium and long term fundraising mechanisms, through various instruments available in stocks, debentures, bonds, etc.

Both the private sector and the public sector corporates raise thousands of crores of rupees in these markets. The key components of the capital market are stock exchanges, banks, investment funds and companies, specialized financial institutions or development banks, mutual funds, post office savings banks, non-banking financial institutions, international financial investors, and institutions.

The supply in this market comes from the savings of various sectors of the economy. These come from the following sources: individuals, corporates, governments, foreign countries, banks, futures funds, and financial institutions.

Besides, the establishment of the Nepal Stock Exchange has brought about a significant turn in the work of the capital market in Nepal, especially the liberalization policy adopted in the nineties and the automation of trading and central depository system a few years ago.

The growth of Nepal’s stock market, which has reached record highs, has also continued. The Nepse index, which measures the share market, has increased significantly and the transaction amount has also increased. Meanwhile, the Nepal Securities Board (SEBON) has stated that the participation of investors in the stock market has increased significantly as more than 85 percent of transactions are done through Nepse’s online trading system.

According to the board, the number of Demat accounts is more than 800,000 investors in the primary market of securities due to the securities market development and reform works carried out by the board. Which is about 7.25 percent of the total population. The Securities and Exchange Board of Nepal (SEBON) has issued a public notice asking the public to invest cautiously

The Securities and Exchange Board of Nepal (SEBON) has been urging investors to invest cautiously from time to time as the capital market has been setting new records day by day. The board has issued a press release urging investors to invest in the growing market with “vigilance and understanding” and not following “rumors and speculations”.

The Board’s suggestion that investors’ views on the regulatory body be made public should be made public. Investors will have to make investment decisions only after analyzing the overall financial and economic indicators of the organization. ”

The board also said that investors should analyze the financial situation of the world economy, national economy and listed organizations, the state of good corporate governance, and the ability of investors to bear the risk and invest in the market only with awareness and understanding of the security of their investment.

As some newspapers have written about the stock market heights in the contraction of the economy, Covid 19 said that the economic activity has been slowing down and the economy has been shrinking for the last year. Looking at the past fiscal years, the stock market has also seen high growth in the years when economic growth has been encouraging, i.e. there is a positive correlation between economic growth and the stock market.

However, it is estimated that the relationship between the stock market and the economic growth of the previous years will be reversed when the stock market rises in the current fiscal year, which is projected to be slower this time.

While the National Planning Commission, Central Statistics Office, and Nepal’s development partners like World Bank, Asian Development Bank, and International Monetary Fund are projecting that Nepal’s economic growth will be very good in the current fiscal year, it will be around 2 percent or almost zero percent. The record has been reached by reaching the historical issue. This suggests a need to redefine the relationship between economic growth and the stock market, which has been positive so far.

Neither the economic activity has increased nor the economy has shown any signs of slowing down. However, some stock analysts have attributed the recent departure of the former finance minister, who was known to be negative towards the stock market, and the arrival of a positive finance minister to the market. Investors determine stock prices by looking at future earnings. It’s all about income, growth, and potential.

Right now, there is a lot of hope that the economy will improve, and with that comes more jobs and more spending. Many investors are also optimistic about a practical coronavirus vaccine that will hopefully end the need for social distance and help improve some parts of the economy that are currently suffering the most (travel, food, hospitality, events, and personal recreation). Consumers have now changed their spending. Not all coronavirus epidemics have had a negative economic impact. But it has shifted how many people are spending their money. Nepal has developed and expanded the equity market sector in a very short time. Besides, there has been a significant increase in the number of listed companies, number of investors, etc. Market capitalization data through Nepal’s Nepse was reported in February 2021 as 3,40,92,56.0 million.

Cyclic nature

Investors say that going to the stock market is due to its cyclical nature. When they say cyclical, they mean that every few years, the market goes up and down. For example, after the first Constituent Assembly, the market was performing well with an index of 1,175. There was a lot of liquidity in the market as banks were in a position to lend easily. However, it crashed shortly after the 2008 financial crisis. In 2012, the index fell to less than 292.

Gradually, the situation started getting better again. Banks started merging and they started making profits. In 2013, as the second Constituent Assembly election approached, conditions began to improve. Liquidity began to improve as banks merged and in 2016 the index reached 1,800.

The cyclical nature again showed how volatile the market is, with the market falling to 1,100 in 2019. As before, the market continued to decline for about two years, after which it is no exaggeration to say that it is now in the “bull” phase.

Liquidity and remittances

Investment experts also say that the market is going up due to the abundance of liquidity in the market. Almost all commercial banks have achieved their deposit targets for the last financial year. Experts say it is proportional to market entry as people start investing in the stock market because there are no other investment opportunities

One of the reasons for the increase in liquidity is the increase in the receipt of remittances. According to the report, remittance inflows increased by 10.9 percent to Rs. 616.81 billion in the first five months of the current fiscal year. Nepal Rastra Bank and the World Bank had estimated that the remittance flow would be reduced due to Covid-19. However, the opposite has happened. But bankers and investors say the increase was made possible by the use of formal channels to send money to Nepal.The money that came through these formal channels had to be invested in places other than the black market. There are a lot of people in the stock market who believe that the amount has come as the time is uncertain until there is no place to invest.

Low loan rates and savings rates. This is also a major factor. Due to the large deposits of banks, they are giving fewer loans at 8 percent as compared to 13 percent in 2019.

Many people have started taking loans from banks of a margin nature to invest in stocks and believe that they will be repaid. If the risk is higher then it is positive

Nepse trading has gone online

Nepse officially launched its online trading system in November 2018. But people, who wanted to know, believed in going into business with brokers. Anyway, because of Covid 19, the pace accelerated. However, due to Covid 19, that changed as the Securities and Exchange Board of Nepal (SEBON) directed Nepse to encourage online trading. This means that more participation means anyone with a phone or laptop can trade without going to a broker. This access to the stock market meant everyone started investing. This goes hand in hand with the lack of liquidity and investment opportunities.

When people got stuck at home, they started investing in stocks. This also happened in India and Pakistan where the stock market started doing well after they started trading online.

Banks margin lending

Due to high liquidity, banks started lending margins (lending money backed by shares). As interest rates fell, so did various investors in the market. Lack of economic activity, stable industry, and lack of imports led banks to lend margin loans to interested investors.

The share price continued to rise after more money was thrown into the market. After that, more investors started borrowing from banks through margin lending to create a loop, which increased in Nepal’s stock market.

Banks are investing in financial institutions

Some time ago, banks were not allowed to invest in financial institutions. But, since the market started crashing in 2019, they have started investing in financial institution stocks. This trend continued as they saw potential in the market. Some stocks were worth less than their value. These stocks were used by these banks and financial institutions: one of the reasons why insurance companies have limited shares in the market and the share of microfinance, has increased.

This is an important factor, many investors claim. When the stock market plunged in 2010, many stocks in the market were likely to go up. Smart investors, who had researched these stocks, bought them. As prices rose, many quickly began to follow suit, resulting in market growth.

People were afraid of losing the opportunity to make money. For example, investing in one stock and earning one million a month. This human nature of jealousy has encouraged many people to invest in stocks. This is because if people don’t join this scene now, they will lose. An example of this can be seen in banks where hundreds of people are queuing up to open their Demat accounts to apply for IPOs.

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पानी पृथ्वीमा सबैभन्दा सामान्य पदार्थ होतर कुल प्रतिशत समुद्री पानी हो,जु मानव प्रयोगको लागि अयोग्यमनिन्छन I lताजा पानि छ तीन प्रतिशत, दुई तिहाई हिमनदी वा& ;वरिपरि हिउँ र हिउँमा पुरिएर रहेक छ। सम्पूर्ण विश्वको पानीको एक प्रतिशत मात्र मानव उपभोगको लागि उपलब्ध छ। पानी शाब्दिक रूपमा महत्त्वपूर्ण छ: यो बिना जीवन अस्तित्वमा रहन सक्दैनतर पृथ्वीको उपलब्ध पानीको एक प्रतिशत पानि सबैका लागि पर्याप्त हुनुपर्दछ।

पानी आपूर्ति

​नेपालमा खानेपानी र सरसफाई  क्षेत्र गतिशील छ, र सन् २०१५ मा नयाँ संविधान लागू भएपछि नेपाल अहिले विश्वका ती थोरै देशहरू मध्ये एक हो जहाँ नागरिकहरूको सुरक्षित पानी र सरसफाइ सेवामा पहुँच छ र स्वस्थ र स्वच्छ वातावरणमा बाँच्न पाउने अधिकारलाई नयाँ संविधानमा मौलिक मानव अधिकारका रूपमा स्पष्ट रूपमा उल्लेख गरिएको छ। यसको मतलब के हो, वास्तवमा, राज्यको दायित्व भनेको राज्यको क्षमता र स्रोतहरूको अधिकतमतामा आधारित पानि र ढलको  सेवामा बर्षेनी बृद्धि गर्नु हो। पानी र सरसफाईको अधिकारको बारेमा गलत धारणा छ कि मानिसहरु नि:शुल्क पानीको अधिकार दिन्छ जबकि तथ्य यो छ कि यी सेवाहरु सबैको लागी सस्तो हुनु पर्छ। व्यक्तिहरूले आर्थिक वा अन्यथा तिनीहरूले प्रयोग गर्न सक्ने हदसम्म योगदान गर्न अपेक्षा गरिन्छ।

Consolidating Nepal-Bangladesh Ties

On the occasion of the state visit of Rt. Hon’ble President Mrs. Vidya Devi Bhandari:

Consolidating Nepal-Bangladesh relations

Shanker Man Singh 

Former CEO of NEPSE and SEZ. Currently associated with private sector.

 ​President Vidya Devi Bhandari is on a two-day state visit to Bangladesh from March 22 to 23, 2021 at the friendly invitation of President Mohammad Abdul Hamid of Bangladesh. During the visit, President Bhandari will attend the birth centenary celebrations of Bangladesh’s “Father of the Nation “Bangabandhu Sheikh Mujibur Rahman in Dhaka. The purpose of the visit of the President of Nepal is to broaden the basis of mutual friendship, understanding, and trust between the two countries.

​Since the founding of Bangladesh in 1971, bilateral relations between the People’s Republic of Bangladesh and the Federal Democratic Republic have been progressive. These two countries are divided by the “Siliguri Corridor” – Bengal is between southern Nepal and northern Bangladesh. Both South Asian countries are members of the South Asian Association for Regional Cooperation (SAARC) and BIMSTEC, BBIN.

​Although Nepal maintained a neutral stance in the 1971 Indo-Pakistani war, the then State of Nepal became the first country to recognize Bangladesh on January 16, 1972, as a result of which Pakistan did not have easy relations with Nepal. Along with Bangladesh, Nepal saw an opportunity to promote foreign trade to gain access to ports in the Bay of Bengal – something that Nepal had sought for limited success when Bangladesh was part of Pakistan. 

​Bilateral relations have improved significantly since the 1975 military coup brought Bangladesh to power, and both countries have sought to curb the influence of their largest neighbor. On April 1, 1976, the two nations signed a bilateral agreement for the development of trade, transit, and civil aviation. Relations between the two countries are based on harmony, goodwill, mutual understanding, and cooperation. It can be felt that Nepal-Bangladesh has an important and distinct role to play in the promotion of trade, tourism, and investment in the bilateral, regional and international arena as well.

​Nepal and Bangladesh have recently had similar problems in the category of LDCs and Bangladesh has recently graduated from the status of a developing country. That is why both countries can solve common problems by learning from each other to use trade and other economic tools to address the needs of the people and our country collectively.

​As both Nepal and Bangladesh are member countries of the WTO, BIMSTEC, BBIN and SAARC, the use of such international and regional forums can enhance regional and bilateral trade and create investment opportunities. Earlier meetings of the SAARC Council of Ministers had decided to implement other projects connecting Kathmandu with Chittagong, India through Bangladesh. Nepal hopes that such an international transport connectivity project will further strengthen regional integration and alliances.

​ Although Nepal and Bangladesh are neighboring countries, trade and economic relations between the two countries are negligible. Nepalis are conscious of promoting trade and economic cooperation based on equality and mutual benefit, Nepal has not been able to expand her bilateral trade. Therefore, Nepal must launch an effective and joint program to increase the volume of our trade and economic ties. This possibility and potential has deepened after Covid-19.

​Nepal is participating in Bangladeshi trade fairs. Similarly, Bangladesh is organizing a single-country trade fair in Kathmandu. This is especially important when the economic situation of the country is not satisfactory. It not only promotes Bangladeshi products but also helps Nepali entrepreneurs to explore potential areas of the joint venture with their Bangladeshi counterparts.

​In the common interest of our economic development, Nepal, and Bangladesh, considering the existing problems, should make effective use of the Kakadvitta-Phulbari Banglaband route and extend it to the port of Mongla. The full use of the Banglabandha road connecting Mongla Port will not only increase the volume of third-country trade between our two countries, but it will also develop a new dimension in bilateral trade between Nepal and Bangladesh.

​Nepal portrays the potential of highly adventurous tourism and recreational tourism. Flights to Bangladesh from the eastern part of Bhadrapur, Nepal should also be regular and effective to encourage border tourists.

 ​As both the countries have decided to sign the Cargo Transport Modality Agreement, we can expect all types of public and private vehicles to come and go from Nepal and Bangladesh. Nepali agricultural products have a great opportunity to export to Bangladesh such as dairy products, spices, vegetables including tomatoes, green peas, cucumbers, sweet peppers, ginger, cardamom, apples, oranges, pears, strawberries, pulses, lentils, etc. But to be competitive in these products, Bangladesh should encourage imports from Nepal in terms of bilateral trade.

​Nepal can also export products such as stone, boulder, and freshwater fish to Bangladesh as Bangladesh has great potential to become a major market for these Nepali products. About investment in Nepal, Bangladesh’s foreign investment in the financial sector, information technology, tourism, etc. seems to have strong potential.

​Nepal’s private sector believes in people-to-people contacts to boost economic ties and trade between the two countries. To facilitate regular communication between Nepali and Bangladeshi people, it is necessary to visit and exchange information at the private sector level and also to increase participation in fairs/exhibitions organized in both countries.

​Nepal should learn a lesson from the successful use of Bangladesh’s microfinance concept. We have Dr. We thank Muhammad Yunus for his tireless efforts in this regard.

​In this regard, in a program organized a few years ago in Nepal, Prof. Yunus delivered a very remarkable speech that reminds us of the importance of bilateral relations. Another possibility to strengthen trade relations between the two countries is the construction of a gas pipeline from Bangladesh to Nepal. Adequate gas supply to Bangladesh will not only alleviate Nepal’s gas problem but will also help make neighboring Bangladesh prosperous. As the world goes through huge ups and downs, our allies, who have easy access to each other, need to be able to run their business easily.

​Nepal and Bangladesh have concluded a Memorandum of Understanding (MoU) to remove technical barriers (TBT) to expand trade between the two countries. Now, the two sides will observe quality certification procedures and lab operations to address issues related to product quality in each other’s countries, as the MoU paves the way for the signing of a Mutual Accreditation Agreement (MRA) for the recognition of each other’s laboratory certification in the coming days. Has done

​Nepal and Bangladesh have finalized the list of products that will provide primary market access to the respective countries. Nepal has agreed to provide primary market access for 500 Bangladeshi goods, while Bangladesh has agreed to provide similar treatment to 108 Nepali goods. The list of goods for market access has already been prepared and the implementation modality needs to be implemented effectively

​The Bangladesh government will improve the condition of the Jamuna Bridge connecting Mongala Port in Bangladesh.After the Government of India agreed to facilitate the movement of vehicles on the Phulbari-Bagalaband corridor, the two countries agreed to expand the volume of trade in the future and improve land customs facilities accordingly.

​Again, both the countries have agreed to bring Sinhabad (India) -Rohanpur (Bangladesh) rail transport facility (provided by India) into operation. Apart from Rohanpur-Singhabad transit, Nepal has urged Bangladesh to convert Radhikapur (India) -Birol (Bangladesh) railway line to a broad gauge. In response, Bangladesh seems to have intensified the work of converting the broad gauge railway line.

​Besides, the two countries seem to have agreed to simplify the visa and immigration process for tourists traveling through land routes to promote each other’s tourism. The two countries have also agreed to participate in each other’s trade fairs and have been participating in fairs and exhibitions.

​Kathmandu-Dhaka bus service was also included in the agenda of the talks. However, it is already being discussed under the BBIN (Bangladesh-Bhutan-India-Nepal) Motor Vehicle Agreement. Besides, vegetables and herbs are other items exported to Bangladesh. As the demand for vegetables and fruits increases, Nepal needs to focus on such products. Bangladesh has been increasing its exports to Nepal every year but Nepal has not been able to do so. Bangladesh exports more than 20 products including medicine, solar, raw jute, jam, powdered milk, and potatoes to Nepal.

Assistance in hydropower

​Bangladesh is keen to develop hydropower projects in the eastern part of Nepal based on joint ventures. The Prime Minister of Bangladesh said that Nepal’s huge hydropower potential could be utilized for the mutual benefit of the countries in the region. The Bangladesh Foreign Minister reiterated Bangladesh’s desire to import 1,000 MW of electricity from the Koshi High Dam project instead of Bangladesh to meet their ever-increasing demand for electricity. The meeting helped to understand the development, status, and demand of hydropower in the two countries for further assistance in the hydropower sector.

​Bangladesh has worked towards proposing and implementing Joint Working Groups (JWGs) from each country, including India, Bhutan, and Nepal.

 Bangabandhu and early trade policy

​A cursory review of history shows that under the glorious leadership of Bangabandhu Sheikh Mujibur Rahman, the people of Bangladesh fought valiantly and won the 1971 war of liberation by making Bangladesh an independent state in 1971.They then faced major challenges to a viable economy and a stable social and political system outside a war-torn country.

​On the unforgettable occasion of celebrating the birth centenary of the “Father of the Nation” of Bangladesh, Bangabandhu’s limited but remarkable achievements are especially appreciated for his efforts to develop a war-affected economy that is best designed for the salvation of mankind and lays a solid foundation.

​All of this would promote the growing development of Bangladesh as a developed welfare state so that Bangabandhu Sheikh Mujibur Rahman lovingly created the “Golden Bengal”.The newly independent country was established by the Pakistani army against the backdrop of occupation and oppression of Bangladesh’s economy. The infrastructure was destroyed. Millions of refugees flocked to the cities in search of help.

​International assistance was slowly coming in for political reasons, especially the crumbling and blocked infrastructure – for the arrival and departure of transport and communications – which exacerbated the situation.

​Immediately after liberation, the war-torn country was plunged into economic crisis, floods, and famine. One of the major causes of the crisis was global inflation, which hit the world in 1972. Extensive smuggling of relief goods, food items, and jute to India exacerbated the crisis.

​The smuggling operation had a significant impact on Bangladesh’s jute exports and the jute industry, which accounted for 85 percent of the country’s total foreign exchange at the time.

​According to an estimate by the Planning Commission of Bangladesh, floods in July and August 1974 damaged more than one million tonnes of food and crippled the economy by disrupting jute exports. 

Business and Cooperation Efforts:

​Insisting on earning some foreign exchange, Bangladesh signed a trade agreement with Cuba that violated the sanctions announced by the United States. As a result, in 1974, as the famine approached, US development aid was cut off. However, Bangabandhu Sheikh Mujibur Rahman visited the United States, Iraq, Egypt, and Kuwait to control the situation.

​As a result, Bangladesh received emergency assistance in the form of loans from various countries and international organizations. With these foreign grants, aid, and various other forms of assistance, Bangladesh began to accelerate the process of rebuilding its war-torn economy.

​Addressing the UN General Assembly, Bangabandhu’s visit to the United States was a historic milestone in US-Bangladesh relations. On June 10, 1974, the Security Council passed a resolution recommending Bangladesh’s accession to the General Assembly as a member of the world body. In September, Bangladesh was formally admitted to the General Assembly. On September 2, Bangabandhu addressed the General Assembly in Bengali as the Prime Minister of Bangladesh.

 ​   Despite strong reservations against Bangladesh. During a visit to the country in 1974, Dr. Henry Kissinger described Sheikh Mujibur Rahman as a “man of great ideas” and said that “Bangladesh would not exist without him.”

बंगबंधु र प्रारम्भिक व्यापार नीति

​इतिहास को सरसरी समिक्षा गर्दा देखिन्छ कि बंगबन्धु शेख मुजीबुर रहमानको गौरवशाली नेतृत्वमा बंगलादेशका जनताले बहादुरीपूर्वक लडे र १९७१ मा बंगलादेशलाई एक स्वतन्त्र राज्य बनाएर १९७१ को मुक्ति युद्ध जिते। त्यसपछि उनीहरूले एक व्यवहारिक अर्थव्यवस्था र एक युद्ध प्रभावित देशको बाहिर स्थिर सामाजिक र राजनीतिक व्यवस्था सम्बन्धि ठूला चुनौतीहरूको सामना गर्नुपर्‍यो। ।

​बंगलादेशका राष्ट्रपिताको जन्मशताब्दी मनाउने अविस्मरणीय अवसरमा बंगबन्धुको सीमित तर उल्लेखनीय उपलब्धिहरू विशेष गरी मानिसजातिको उद्धारको लागि सबैभन्दा राम्रोसँग डिजाइन गरिएको र ठोस आधारशिला राख्ने युद्ध प्रभावित अर्थव्यवस्था को विकास उनको प्रयासको लागि उच्च प्रशंसा गरिन्छ । यी सबै बंगलादेशको बढ्दो विकासलाई विकसित कल्याणकारी राज्यको रूपमा अगाडि बढाउने थिए ताकि बंगबन्धु शेख मुजीबुर रहमानले “गोल्डेन बंगाल”लाई मायालु ढंगले बनाएका थिए।

​नयाँ स्वतन्त्र देशलाई पाकिस्तानी सेनाले कब्जा र  बंगलादेशको अर्थव्यवस्थामा थिचो मिचो को पृष्ठभूमिमा स्थापित गरेको थियो। पूर्वाधार पूर्ण रूपमा ध्वस्त भइसकेको थियो। लाखौं शरणार्थीहरू मदतको आशामा शहरहरूमा ओइरिए। राजनीतिक कारणले अन्तर्राष्ट्रिय सहयोग बिस्तारै आउँदै  थियो , खास गरी ध्वस्त र अवरुद्ध पूर्वाधारहरु – यातायात र संचार को  आगमन र बहिर्गमन कार्गो को लागी – स्थिति लाई अझ विकराल बनायो।

​मुक्तिको लगत्तै युद्धले विध्वंश भएको देश आर्थिक स ्कट, बाढी र अनिकालमा डुबेको थियो। संकटको प्रमुख कारणहरू मध्ये एक विश्वव्यापी मुद्रास्फीति थियो जसले १९७२ मा विश्वलाई प्रभावित तुल्यायो। राहत सामग्री, खाद्यान्न सामग्री र भारतमा जूटको व्यापक तस्करीले संकटलाई बढायो। यस तस्करी अभियानले बंगलादेशको जूट निर्यात र जूट उद्योगलाई विशेष असर पुर्‍यायो जसले त्यस समयमा देशको कुल विदेशी विनिमयको ८५  प्रतिशत कमायो।

​बंगलादेशको योजना आयोगको एक अनुमान अनुसार जुलाई र अगस्ट १९७४ मा आएको बाढीले १० लाख टन भन्दा बढी खाद्यान्नलाई क्षति पुर्‍यायो र १० करोड अमेरिकी डलरदेखि ५ लाखसम्मको जूटको निर्यातमा अवरोध आएकोले अर्थव्यवस्थालाई अपांग बनायो।

व्यापार र सहयोग प्रयास: 

​केही विदेशी विनिमय कमाउन जोड गर्दै बंगलादेशले क्युवासँग व्यापार सम्झौता गरे जुन संयुक्त राज्य अमेरिकाले घोषणा गरेको प्रतिबन्धको उल्लंघन गरेको थियो। जसले गर्दा सन् १९७४ मा अनिकाल नजिकै आएको बेलामा अमेरिकी विकास सहायतालाई रोकियो । यद्यपि परिस्थितिलाई काबूमा राख्न बंगबंधु शेख मुजीबुर रहमानले अमेरिका, इराक, इजिप्ट र कुवेतको भ्रमण गरे। 

​यसको परिणाम स्वरूप बंगलादेशले आपतकालीन सहयोगका रूपमा विभिन्न देशहरू र अन्तर्राष्ट्रिय संस्थाहरूको ऋण को रूपमा सहयोग प्राप्त गर्यो। यी विदेशी अनुदान, सहायता र अन्य विभिन्न प्रकारका सहयोगको साथ, बंगलादेशले आफ्नो युद्धग्रस्त अर्थतन्त्रको पुनर्निर्माणको लागि बढावा दिने क्रम सुरु भएको थियो।

​संयुक्त राष्ट्र महासभालाई सम्बोधन गर्ने अवसरमा बंगबन्धुको अमेरिका भ्रमण अमेरिका र बंगलादेश बीचको सम्बन्धमा ऐतिहासिक सफलता थियो। जुन १०, १९७४ मा सुरक्षा परिषदले महासभालाई विश्व निकायको सदस्यको रूपमा बंगलादेशको प्रवेश सिफारिस गर्न प्रस्ताव पारित गर्‍यो। सेप्टेम्बरमा, बंगलादेशलाई साधारण सभाले औपचारिक रूपमा प्रवेश गर्‍यो। २ सेप्टेम्बरमा ब ्गलादेशका प्रधानमन्त्रीको रूपमा बंगबन्धुले बंगाली भाषामा महासभालाई सम्बोधन गरे।

​बंगलादेशको बिरूद्ध कडा आरक्षणको बाबजुद पनि डा. हेनरी किसि्गरले १९७४ मा त्यस देशको भ्रमणका क्रममा शेख मुजीबुर रहमानलाई “विशाल अवधारणाको मानिस” भनेर बयान गरे र भने कि “उनीबिना बंगलादेशको अस्तित्व नै हुँदैनथ्यो। “

व्यापारीहरूसँग पहिलेनै उनीहरूको आफ्नै मुद्दाहरू व्यवस्थित गर्न भारी कार्य बोझ “वर्कलोड”हरू संग जुधी रहेका हुन्छन । यसबाहेक, उनीहरूले कल्याणको प्रबर्धनका लागि यदि तिनीहरू चाहन्छन भने पर्याप्त रकमहरू खर्च गर्छन । अर्कोतर्फ, यदि व्यापारीहरू आफ्नो क्यारियरको अन्त्य गरेर राजनीतिमा सामेल हुन्छन् र उनीहरूको समय पूर्ण रूपमा राजनीतिमा खर्च गर्छन् भने तिनीहरू खेल परिवर्तनकर्ता वा गेम चेंजर हुन सक्छन्।

​नेपालमा व्यवसायिक रूपान्तरण गरिएका राजनीतिज्ञहरूका धेरै उदाहरण छन्। यो भन्न अत्यन्त गाह्रो छ एउटा व्यापारीले एक असल राजनीतिक भूमिका खेल्छ .. राजनीति व्यवसाय भन्दा फरक छ।

​यदि एक व्यक्ति व्यावासायिकता बाट राजनीतिमा आउँदछ जुन बारम्बार चिन्ताका हमलाहरूको सामना गर्न तयार हुन्छ, किनकि राजनीति क्षेत्र दिमागी खेल हो, तपाईले कसैलाई पनि विश्वास गर्नुहुन्न, र कुनै पनि परिस्थिति स्थिर छैन भनेर विश्वास गर्नुहुन्न।यदि तपाइँ  माथि जान चाहानुहुन्छ भने तपाइँको धन र पेशेवर आचार आदि लगायत तपाईले धेरै चीजहरू दाउमा वा गुमाउनु पर्ने सम्भावना प्रबल रहन्छ   ।

​हो यो हुन सक्क्ष कि , राजनीतिज्ञसँग राम्रोसँग सम्पर्कमा रहनुहोस् र हेर्नुहोस् र व्यवसायको अवसरलाई समात्नुहोस् .. किनकि यदि सत्तारूढ पार्टी गयो भने तपाईले आफ्नो नियमित राजनीति प्रभाबकारी रुपमा गर्न सक्नुहुन्न जबकि विपक्षी पार्टी सत्तारूढ हुँदैछ  भने .. I व्यवसायीले सरकारलाई भुक्तानीको रूपमाआफ्नो कडा परिश्रमबाट कमाएको  पैसा प्रयोग गर्दछ । समाजमा परिवर्तनहरू ल्याउने तर निर्णय एबम सरकारलाई पैसा कसरी प्रयोग गर्ने निर्देशन दिन र शक्तिको अधिकार व्यवसायीमा हुदैन I यी चीजहरूको शक्ति राजनीतिज्ञसँग छ जसले समाजलाई राम्रो निर्णयको साथ सकारात्मक प्रभाव पार्न सक्छ। तर राम्रो गर्ने सम्भावना तिनीहरूको ईमानदारीको आधारमा निर्भर गर्दछ भन्नुमा अत्युक्ति नहोला I