Nepal Economic Digest (Sept 16, 2020)

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September 16, 2020

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Nepal Economic Digest (Sept 16, 2020)
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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.

ADB projects Nepal’s growth rate to slump to 1.5 percent

On the contrary to the government’s prediction of the economic growth rate of 7% for this year, Nepal’s long time development partner Asian Development Bank (ADB) has predicted it to remain around 1.5 percent.

Analyzing the developmental and other economic activities of the country, ADB in its third prediction made this year has calculated Nepal to achieve 1.5 percent growth rate on Tuesday.

Earlier, ADB in its projection of April and June had expected the growth rate to be 6.4% and 3.1% respectively.

In the meantime, the prediction made by another development partner World Bank is also far below the government target.

In its prediction made earlier, World Bank had predicted Nepal’s economic growth rate to be 2.1% this year.

The predictions of both development partners working in Nepal since long have predicted it far below the government’s projection.

India’s ban on onion export might hit Nepali consumers

Indian government’s decision to impose a ban on export of all varieties of onion is likely to hit local consumers hard as the price of onion has already seen a steady rise in the domestic market.

Issuing a public notice on Monday, the Ministry of Commerce and Industry of India prohibited the export of all varieties of onion.

According to the Indian media, the authority took the decision after the prices of this agriculture produce trebled to INR 30 per kg in the local market within a month after excessive rainfall heavily damaged crops in most of the southern states of the country.

With short supply of Indian onion, prices of this produce in the local market is likely to witness a sharp rise in the coming days as festive season is just around the corner.

According to the Kalimati Fruits and Vegetable Market Development Board, the wholesale price of the product in Kalimati market has reached Rs 75 per kg from Rs 42 per kg in the past two weeks alone.

The records of the Department of Customs shows that Nepal imported dried onion worth Rs 329.41 million during mid-July to mid August this year.

MAW Vriddhi launches Foton Tunland E and View CS2L in Nepal

MAW Vriddhi Commercial Vehicle Pvt. Ltd., the authorised distributor of Foton Motor in Nepal, has today launched Foton Tunland E and Foton View CS2L, both of which are Foton’s second pickup and second van for Nepal market.

Tunland E is powered by a 2.8L inline 4 cylinder, electrically controlled high pressure common rail with Turbocharger & Intercooler 4 WD and 5 speed MT engine that produces a maximum power of 85 KW at 3600 rpm and torque of 280Nm at 1600- 2400 rpm.

Tunland has a cargo box of 1.52mX1.58mX0.44m which is the best in class. Similarly, its payload capacity is 1 ton and fuel tank capacity is 76 litres.

For the comfort of the passengers, It is equipped with upper and lower A-arm (Double Wishbone, coil spring) at front and dependent suspension with shock absorbers at rear. It has alloy wheels with 245/70 R16 tubeless radial.

Safety is the highest priority at Foton. Dual airbag, Front ventilated disc, ABS with EBD, Central locking and seat belt warning are some safety features in the list.

Similarly, Tunland E is provided with tilt and telescopic power steering, air conditioner, heater, electrically adjustable rear view mirror and others. The price of Tunland E is kept at Rs 59,50,000/- for Nepal.

Ex-Minister Khatiwada appointed PM’s Special Economic Adviser

The government has decided to appoint former Finance Minister Dr. Yubaraj Khatiwada as Special Economic Adviser to Prime Minister KP Oli.

The Council of Ministers decided to appoint Khatiwada to the post and provide minister-level facilities, government Spokesperson Pradeep Gyawali said.

Former Minister for Finance, Communication and Information Technology Khatiwada has resigned on September 4.

Bookings for domestic flights to start from Thursday

With the commitment from the government to let the domestic flights resume from September 21, the airlines are planning to open booking from Thursday.

The bookings are being opened even though the concerned authorities are still undecided on destinations.

According to Deputy Director-General of the Civil Aviation Authority of Nepal (CAAN) Raj Kumar Chhetri, the government has not fixed the destinations to which the flights will be allowed.

“We have not got the list of destinations yet, once we get the list we will permit the airlines accordingly,” Chhetri said, “Most probably, only one-third flight be opened in the first phase, we will provide the permit on the same ratio.”

Earlier, the government had decided to resume flights from August 17. Accordingly, CAA had also agreed to grant a permit to 33 percent of flights in the first phase, but the prohibitory orders issued in major cities including the capital valley to curb wide-spreading pandemic disturbed former plan.

However, the Monday’s meeting of the Council of Minister has decided to open the flights from September 21.

India gifts 2,000 Remdesivir vials to Nepal

Indian Ambassador to Nepal Vinay M. Kwatra handed over 2,000 vials of Remdesivir to Foreign Minister Pradeep Kumar Gyawali on behalf of the government of India on Tuesday.

The medicines are part of the government of India’s ongoing assistance to Nepal in meeting the challenge posed by the COVID-19 pandemic, Indian Embassy in Kathmandu said in a statement.

It follows on earlier support extended to Nepal in the form of ICU ventilators on August 9, COVID-19 Test Kits (RT-PCR) on May 14 and essential medicines including Paracetamol and Hydroxychloroquine on April 22.

As a close friend and neighbor, India stands in solidarity with the Government and people of Nepal in their fight to prevail over the pandemic, the statement further stated.

Remdesivir medicine is regarded as a broad-spectrum antiviral medication for treating moderate to severely ill patients on oxygen therapy.

Nepal to allow mountaineering for foreigners from Oct 17

The government of Nepal has decided to allow mountaineering and trekking activities for foreigners from October 17.

Minister for Foreign Affairs and Spokesperson of the Government Pradeep Gyawali said that it has been decided to allow tourists to visit Nepal from October 17.

Every foreign national coming to Nepal has to bring a PCR negative report 72 hours before boarding. Meanwhile, eighteen people, including the Prince of Bahrain, are coming to Nepal on Wednesday for mountaineering.

However, with the increasing risk of Covid-19 transmission, the said decision is hard to be implemented.

(Compiled and prepared by 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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