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Nepal Economic Digest (May 08, 2020)


08 May 2020  

Time taken to read : 4 Minute


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KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.

IMF pledges $214 million to Nepal to address Covid-19 pandemic

The IMF has approved a disbursement to Nepal of about USD 214 million to cover the urgent balance of payments and fiscal needs stemming from the Covid-19 pandemic.

The International Monetary Fund (IMF) said COVID-19 is having a severe impact on Nepal’s remittances, tourism, and domestic activity.

As such, it will substantially weaken the country’s GDP growth, the balance of payments, and fiscal position. During recent months, remittances have fallen considerably, tourist arrivals collapsed and domestic activity has taken a hit amid social-distancing measures, it said.

The IMF said Nepal’s immediate priority has been to deal with the human and economic impact of the COVID-19 pandemic.

Banks, financial institutes to provide full services from today

Banks and financial institutes are providing full services from today.

The government on Wednesday decided to allow industries, banking sector and financial institutes to run their services from today.

According to the decision, only one thirds of the staffers among those required for operating services can attend the office. Meanwhile, banks have agreed to provide services accordingly.

All the services could not be started from Thursday since it was a public holiday. All the services will begin from Friday, said Bhuwan Dahal, chairman of Bankers Association of Nepal and CEO of Sanima Bank.

Govt to open up 44 sectors and industries from Friday

The government has extended the nationwide lockdown until May 18.

However, the government has also decided to open up some sectors and industries considering the difficulties that people have been facing.

According to the government’s decision, it will open up 44 sectors and industries which will be allowed to open from Friday.

They include: Dairy products, food processing, drinking water, pharmaceuticals, brick, spices, cooking oil/ghee, fodder for livestock and fishery, juice and soft drinks; sugar, coffee, tea processing; bakery items, cookies and confectionaries, LP gas, noodles, and packaging materials.

Likewise, other industries include: rice and beaten rice, ginger and cardamom processing, poultry farming, swine farming, goat farming, and cow farming; lentil; cement; iron and steel; insecticides and agro vet products; sand processing and crusher; mining and mineral-based products.

Nepal drops in international rating on central government budget transparency

Nepal’s score on budget transparency has dropped in the 2019 round of biennial Open Budget Survey (OBS) – the research instrument using internationally accepted criteria to assess public access to central government budget information, formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions such as the legislature and auditor in the budget process.

“Nepal secured a budget transparency score of 41 out of 100 in the 2019 round survey which is an 11 point decline in comparison to 2017. The country scored 22 on public participation in the budgetary process while it is 48 on budget oversight front”, reveals the OBS-2019 summary report submitted to the Ministry of Finance.

With this Nepal’s ranking stands at 68 out of 117 countries assessed in the survey, the world’s only independent, comparative, and fact-based research instrument.

(Compiled and prepared by Swastik Aryal and Nitish Lal Shrestha)

Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.

Publish Date : 08 May 2020 08:04 AM

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