KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
NTIA says Nepal’s textile industry on verge of collapse
Nepal Textile Industries Association (NTIA) has said that Nepal’s textile industry is close to collapse as no stimulus package has been offered in the 2020-21 budget for it.
NTIA stated that the textile sector is not included in the 44 industries allowed to open partially, even though it had been severely hit by the lockdown with 95 per cent of the factories closed.
The textile industry did not receive the incentives announced in the past and even the existing ones have been taken away, the association said. There are 250 small and large textile factories operating in the country that employ around 50,000.
India-Nepal-China link road near completion
The construction of the Jogbani-Kimathanka road is near completion with only 14 kilometers left.
This is the main trade route of Province-1 linking Jogbani of India to Kimathanka of Sankhuwasabha district on Nepal-China border.
Construction of the Jogbani-Kimathanka road, a national pride project, is in full swing, chief of the North-South Road Division Office Sankhuwasabha, Gautam Kumar Shrestha, said.
The road passes through Chepuwa, Hatiya, Makalu rural municipality, Chichila rural municipality, Khandbari municipality, Dharmadevi municipality, Dhankuta Mahalaxmi municipality, Pakhribas municipality, Dhankuta municipality, Sahid Bhoomi municipality, Bhedetaar, Sunsari Dharan, Itahari and Biratnagar of the Province-1.
Nepal Army has been assigned the responsibility of blasting off the rock face on the road alignment in Sankhuwasabha for facilitating the road construction.
IATA expects airlines globally to lose $84.3 billion in 2020
The International Air Transport Association (IATA) has said that airlines globally are expected to lose $84.3 billion in 2020.
As per IATA’s financial outlook for the global air transport industry, airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1 per cent.
The airline industry’s revenue is expected to fall by 50 per cent to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion, the forecast showed.
House of Representatives endorses budget
The budget presented by the government for the coming Fiscal Year 2020/21 (Appropriation Bill) on May 28 has been passed by a majority in the House of Representatives (HoR).
The size of the budget for the coming fiscal year has been reduced due to the coronavirus epidemic. For the current fiscal year 2020/21, Finance Minister Dr. Yuvaraj Khatiwada had last week presented a budget of Rs 1.474 trillion for the coming fiscal year.
Minister Khatiwada, in his budget speech, said a total of Rs 948.94 (64.4%) billion has been allocated for the recurrent expenditure.
Likewise, a total of Rs 352.91 (23.9%) billion was allocated for capital expenditure and 172 (11.7%) billion has been allocated for financial management in the next fiscal year.
Similarly, the budget 2020/21 has targeted to raise a total of Rs 889.62 billion through revenue collection.
(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.
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