KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Commercial banks required to report suspicious transactions via goAML
Nepal Rastra Bank (NRB), the country’s central bank, has issued directives asking commercial banks to report suspicious transactions within three days from the date of transaction, and transactions over the government-mandated Rs1 million threshold within 15 days.
Since NRB has made it compulsory for commercial banks to report suspicious transactions above the governmental threshold through the goAML software, the Financial Information Unit, put into effect since Wednesday, will no longer receive manual reports.
Installing goAML software is part of automating the Financial Information Unit, which also happens to be one of the Nepal government’s commitments to the Financial Action Task Force (FATF), a global anti-money laundering body.
Extra charge by shipping companies cost Nepali importers Rs 1 billion annually
Lately, Nepali importers are being exploited by the shipping companies. Shipping companies have been found to charge extra under different headings apart from the basic sea freight charge.
Shipping companies have been found to have been taking advantage of Nepali importers as they have limited options for transportation of the goods. Shipping companies collect Rs 1.47 billion annually from Nepali importers.
78% of annual revenue target met in 6 months
In just six months, Rasuwa Customs Office has secured 78% of its revenue target for the year. Customs officials say that the progress was helped by different factors such as higher imports, well-enforced laws with tighter customs valuation and also smooth commute along the Trishuli-Rasuwagadhi road.
The customs office collected over Rs 7 billion in the first six months of fiscal year 2019/20. In fiscal year 2018/19, Rasuwa Customs Office posted revenue growth as well. The target set for them for this fiscal year 2019/20 is Rs 9.35 billion.
Last fiscal year’s target was Rs 9.5 billion and they reported a revenue of Rs 10.6 billion. Apples, clothes, electronics, construction materials, footwear, and eyewear are Nepal’s main imports through the Rasuwagadhi Customs Office.
16 companies to issue shares worth Rs 29 billion
Sixteen companies have got permission to issue shares worth Rs 20 billion by the second week of January. This is excess by 21.2 percent compared to the same period of the current fiscal year 2019/20.
Of the total shares allowed for public issues by January 16, the Securities Board of Nepal (SEBON) had permitted to issue shares worth Rs 16.5 billion.
With the Nepal Rastra Bank’s provision allowing the companies to issue 25 percent of the letter for a loan of the paid-up capital, the amount of the letter for a loan has gone up, according to SEBON.
Pokhara to assemble three tourism projects in PPP model
Pokhara Metropolitan City (PMC) has revealed its plan to build three tourism infrastructure projects under the Public-Private Partnership (PPP) model.
Officials at the metropolitan city are hopeful that the new projects will help to increase tourist numbers in the lake city.
Here, the metropolitan city will initiate the Seti River Gorge Adventurous Tourism Infrastructure Development Project, Patale Chango (Davi’s Fall) Glass Bridge, and Other Infrastructure Development Project, and Sarangkot Tourism Infrastructure Development Project under PPP model and its estimated cost are around Rs. 2 million.
No new stock exchange not in the offing immediately
The new stock exchange is not coming into effect immediately. Initiated by Finance Minister Yuvraj Khatiwada, the securities board is working to bring in a new exchange company.
Minister Khatiwada said that Nepse has been giving a positive sign while speaking at the 38th Annual General Meeting of Nepal Stock Exchange (Nepse) on Wednesday.
The securities board has demanded the application for a new exchange company saying Nepse could not work effectively. Since the new company is an internationally sophisticated technology, they claim to have significant support in the modernization of the capital market.
Autumn travel rush pulls Nepal Airlines back from the brink
The autumn travel rush has brought Nepal Airlines back from the brink of bankruptcy as full-fare passengers filled its flights, allowing the teetering national flag carrier to repay creditors waiting to be paid.
After missing three quarterly installments, Nepal Airlines said it paid Rs572 million to the Citizens Investment Trust on Wednesday and allocated aside Rs 440 million for the Employees Provident Fund to whom payment is due on January 29th.
In November 2018, the airline announced it was running out of cash and close to bankruptcy. Subsequently, the corporation started defaulting on loans. It was the first time the airline had failed to pay on a debt payment even though it has a long history of poor financial performance in the past several years.
The airline has been looking for a bailout fund of Rs20 billion from the Finance Ministry. Currently, the corporation’s loans from various institutions stand at Rs40 billion, and this translates into Rs3.66 billion in interest payments annually.
Employment Program to be implemented in Karnali Province
The implementation phase of the Chief Minister Employment Program is expected to begin soon. The program will look to employ unemployed people of Karnali Province aiming to improve the living standards of people affected by poverty.
Local units have been asked to submit their programs for the implementation of the project. According to the provincial government, the local units have been asked to suggest projects that are labor-intensive and also meet the needs of the local level.
The Principal Secretary of Karnali Provincial Government, Kewal Prasad Bhandari said that Rs 280 million has been set aside for the implementation of the program.
Agreement shows hope to bring up to US$50m under Green Climate Fund
The Alternative Energy Promotion Center (AEPC) has signed the Accreditation Master Agreement with the UN’s Green Climate Fund (GCF) for facilitating financing for climate change related-projects and programs in Nepal. AEPC has become the first Nepali national entity to be accredited by the GCF.
AEPC Director Nawa Raj Dhakal informed that the AEPC would now be able to access funding for the projects valued up to the US $50 million. This agreement is expected to open new avenues for mobilizing climate finance for developing and implementing climate change-related projects in all thematic sectors prioritized by the government.
(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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