KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Finance Minister Dr. Khatiwada expects high economic growth in Nepal
Finance Minister Dr. Yuba Raj Khatiwada believes that all the economic indicators of the country will point towards high economic growth. Sectors such as agriculture, industry, trade, banking have all incorporated in economic growth. Dr. Khatiwada maintained that each province has achieved a growth rate of 6-8% in the last fiscal year. The government’s target growth rate for the current fiscal year is 8.5% while the World Bank projects a growth rate of only 6.4% for Nepal.
Finance minister willing to help local entrepreneurs
In an Annual General Meeting (AGM) of Birgunj Chamber of Commerce and Industries, Finance Minister Dr. Yuba Raj Khatiwada said the government has no intention of punishing entrepreneurs. He assured that the government is not only focused on collecting revenue but has been emphasizing economic growth and development.
Rs 1.68 million in expedition royalties collected this winter
The Department of Tourism presented data that showed the government has collected Rs. 1.68 million as royalty from mountaineers. The data shows that the highest number of climbers are attempting to climb Mt Amadablam (15 climbers) followed by Mt Everest (10 climbers), Mt Nuptse (5 climbers) and Mt Rokpai (2 climbers). The months of December, January and February are defined as the winter season for expedition mountains in which 414 peaks have been opened. However 86 of them remain unclimbed.
India’s ban on imports of refined palm oil could kill Nepal’s biggest export
The restrictions imposed by India on imports of refined palm oil can have major setbacks for Nepal’s biggest export, experts have warned. They say that the restriction was just a matter of time. This restriction could potentially wipe out exports worth Rs 22 billion or more annually, based on current export figures. Dr. Posh Raj Pandey, trade expert, and an economist said, “For sustainable trade, the country must focus on domestic products, palm oil was a gamble, and traders lost.”
India says its businesses can still buy processed palm oil from Nepal
A day after India imposed restrictions on imports of refined palm oil, in what was seen as a retaliatory move against Malaysia, the Indian Ministry of External Affairs said the alternative for Indian businesses to purchase the product from any other country remains open. This means that Nepali traders cannot export refined palm oil to India, but the Indian traders who have a special permit can purchase the processed edible oil from Nepal. India’s foreign ministry spokesman, Raveesh Kumar told a media briefing in New Delhi that the verdict revolving around palm oil was not country-specific, but, product-specific.
10 percent VAT rebate on electronic payments
Consumers who make payments via electronic means will henceforth be allowed a 10 percent rebate on the 13 percent VAT payment that they have made to the government. The Inland Revenue Department (IRD) said that sellers or suppliers will be returning 10 percent of the VAT back to consumer’s bank accounts when purchases made are paid for electronically. Officials say that the VAT rebate scheme is expected to promote the use of electronic payments and aid in a shift toward a cashless future. The minimum and maximum limits of the VAT rebate have been fixed at Rs 1,000 and Rs 100,000 respectively.
Prices of lentils, dried beans, edible oil, flour up by one-third in the last 15 days
The prices of lentils, dried beans, edible oil, and flour have increased by up to 30 percent in the last 15 days due to market anomalies, a consumer rights activist said. Wholesalers and retailers have been upping commodity prices on their own, on different pretexts. The government body is not as active in controlling the price increases and regulating the prices of daily essentials. But, Rajkumar Shrestha, President of the Nepal Retailers Association claimed the higher domestic prices are because of the fears of international conflict as well as the higher cost of import of the legumes from third countries.
NOC announces a month’s pay bonus to staffers
On the occasion of the 50th anniversary of Nepal Oil Corporation (NOC), the state-owned facility has announced to provide a month’s pay as a bonus to all employees.
Minister Pun’s take on the country’s energy problem
Minister for Energy, Barshaman Pun has said that Nepal and Bhutan face similar problems in the energy sector. Energy Minister said that the risks of flooding caused by the melting of mountains due to climate change might affect hydropower projects. Pun added that Nepal now has the appropriate opportunity and environment for foreign investment in the energy sector.
Kathmandu Stock Market index jumps a critical level
Nepal Stock Exchange (NEPSE) index increased critically and jumped 47 points week-on-week at the end of the second trading week of 2020 as investors bought into some of the attractively-valued microfinance and non-life insurance stocks, said brokers. Civil Bank Ltd Promoter Share was the star of last week’s trading in terms of both value and volume. Market participants claim a lack of liquidity as their biggest worry and the main reason behind the domestic stock market’s underperformance.
Construction of Upper Mailung Hydroelectricity stalled
The on-going construction of the Upper Mailung Hydroelectricity Project at Uttargaya Rural Municipality-1 has been halted owing to the obstruction from local residents putting forth three demands. They have demanded compensation for the lands that the project has taken up, action against local representatives who permitted unmindful use of excavators and employment of local residents. The project has a capacity of 14.3 MW. The electricity generated here will be connected to the 3B hub being built by Nepal Electricity Authority.
Mirjang Bridge shut down again
The Mirjang bridge of Jogbani was closed on Thursday from the Indian side for the second phase of maintenance. The old steel structure bridge is expected to remain closed for 12 days. According to Bhim Ghimire, the Chairperson of the Chamber of Industries Morang, India is willing to allow trucks that have products imported from third countries and re-route the trucks from Bhimnagar border point of Sunsari but re-route permission for products imported from India has been denied. Problems with the closure of the bridge is a common obstacle for Industrial entrepreneurs of Sunsari-Morang Industrial Corridor.
Dairy cooperatives in Chitwan venture into fodder production
Dairy farms of Chitwan have started operating a fodder factory at Bhandara in eastern Chitwan in a bid to supply livestock feed to farmers at lower prices. The factory can produce one tonne of fodder per hour. Rapti Municipality has supplied raw materials worth Rs1.8 million to the cooperatives for kick-starting production of livestock feed. And the factory operators also plan to procure maize, a raw material for producing livestock feed, from the farmers who are linked with the cooperatives.
New policy to address concerns raised by India, China
In a bid to address concerns from neighboring countries, the Social Welfare Council is drafting a policy “to discourage” international non-governmental organizations from running programs that can jeopardize Nepal’s relations with India and China. The new policy is in the drafting stage and some of its provisions are to be addressed by a new law on the registration of non-governmental organizations. The proposed policy is aimed at addressing the concerns of the neighboring countries about the activities of non-governmental organizations, the possible existence of strategic rivals in the bordering regions through the medium of national and international non-governmental organizations and to discourage the non-governmental organizations from undertaking activities that are related to religious conversion and those which can disrupt social harmony.
(Compiled and prepared by Swastik Aryal, Akash Shrestha, Nitish Lal Shrestha, Diana Zulkifli)
Economic Digest is a daily morning email digest, basically relatable summations of the most important business news and happenings from Nepal into easy-to-understand summaries. By realizing that readers are faced with a packed calendar, the Institute for Strategic and Socio-Economic Research (ISSR), Nepal’s independent think tank, and Khabarhub — Nepal popular news portal — have joined hands to disseminate news from Nepal by creating news summaries in the form of Economic Digest.
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