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

Nabil Bank launches ‘Festive Offer’ on fixed deposits

Nabil Bank has launched highly attractive offers on Individual Fixed Deposits, Small & Medium Enterprise (SME) Loan, Mortgage Loans and Retail Home Loans by providing the best possible interest rates.

The festive offers are expected to help all Nepalis to either earn higher interest rates on their hard-earned Fixed Deposits or reduce their borrowing costs to reduce the economic pains inflicted by the pandemic.

The Bank is offering highly attractive rate of 9% p.a. on individual fixed deposits for the tenure of 13 months to 24 months.

One year FDs can be opened at 8.5% p.a., FDs for more than 2 years upto 5 years can be opened at 9.25% p.a. and FDs for more than 5 years can be opened at 9.50% p.a.

The Bank is offering one of the lowest interest rate of 7.49% p.a. on Retail Home Loans, with SME Loan up to Rs. 1 Crore also to be provided at 7.49% p.a.

Furthermore, the bank has continued to offer lucrative interest rate of 7.99% p.a. on Mortgage Loans, with SME Loans above Rs. 1 Crore also priced at 7.99% p.a. The above lending rates will be fixed for a period of 1 year.

Industrial village construction gains pace in Doti

Construction of an industrial village has gained momentum at Jorayal rural municipality-2, Budar in Doti district despite the transmission of coronavirus pandemic.

Physical infrastructures are being built for the industrial village in the area in line with the government’s decision to set up the industrial village at Dharapani, Budar.

The industrial village is being constructed in the plot stretching over 50 ropanis. Preparations are underway to further acquire 500 ropanis considering the establishment of potential industries.

The Ministry of Industry, Commerce and Supplies and Jorayal rural municipality had signed a memorandum of understanding some six months ago for the declaration of industrial village.

Chandragiri Cable Car resumed its operations

Chandragiri Cable Car that had remained closed since the last six months has resumed its operations from yesterday.

Hit by lockdown and prohibitory orders for a long time, the management of the company is bringing it into operations adopting health safety measures.

Talking to Khabarhub, General Manager of Chandragiri Hills Ltd., Abhishek Bikram Shah said the company is resuming services by following all health safety standards set by the World Health Organization (WHO) and the Ministry of Health and Population.

“We are resuming services by keeping only half of the passengers in the cable car, ensuring that all the passengers will put on masks, gloves, use sanitizer and maintain social distancing,” said Shah.

MCC will be ratified with revisions: Minister Gyawali

Minister for Foreign Affairs and Government Spokesperson Pradeep Kumar Gyawali has said that the Millennium Challenge Corporation (MCC) will be endorsed with amendments.

Speaking at a press meet organized by the Federation of Nepali Journalists, Gulmi, on Thursday, Gyawali claimed that the government was preparing to pass the US aid project with revisions.

Minister Gyawali said that some points would be modified as there was some ambiguity about the project. He said that a lot of rumors have been spread about MCC and urged not to follow it.

Airlines companies disagree to resume services with only 50% of passengers

Airlines companies have said they cannot operate services only with 50 percent of passengers even though the government decided to resume domestic flights from today.

The government had decided to allow operations of domestic airlines services based on the number of seats from Thursday.

Even though the Ministry of Culture, Tourism and Civil Aviation on Wednesday decided to allow the domestic airlines to resume services from today, the companies have disagreed to do so stating that to operate services carrying only 50 percent of passengers is not practical.

“The airlines companies have disagreed with the government’s decision to operate services carrying only 50 percent of passengers. It is impractical,” said General Secretary of Airlines Operators Association of Nepal Manoj Karki.

Covid-19 threatens progress in human capital development: World Bank report

Covid-19 pandemic has threatened gains in health and education over the past decade, especially in the poorest countries, a new World Bank Group analysis has found.

Investment in human capital — the knowledge, skills, and health that people accumulate over their lives — is key to unlocking a child’s potential and to improving economic growth in every country.

The World Bank Group’s 2020 Human Capital Index shows that pre-pandemic, most countries have made steady progress in building human capital of children, with the biggest strides made in low-income countries.

In Nepal, a child born today will be 50 percent as productive when she grows up as she would be if she enjoyed complete education and full health.

This is higher than the average for the South Asia region and higher than the average for countries with similar levels of income.

This is largely due to an improvement in school enrollment and institutionalization of the measurement of student learning. This is a sign of warning as investing in human capital is equally crucial.

Several foreign assistance-funded road projects halted

Several foreign assistance-funded road projects have been halted due to the coronavirus pandemic.

The Butwal-Pokhara road expansion, Nagdhunga Muglin road and the road to Trishuli, Galchhi-Trishuli-Mailung-Syabrubensi road have been affected.

Similarly, the second section of the Koteshwor-Kalanki road funded by the Government of China and construction of flyover bridges at Jadibuti and New Baneshwor funded by the Japan International Cooperation Agency have also been affected.

“Construction of all the projects has been closed. There is no possibility to resume work on these projects until the situation created by the infection normalizes,” said Arjun Jung Thapa, chief of the assistance coordination division of the Department of Roads.

Almost 1,000 cargo trucks stuck at Nepal-China border points

It has been reported that more than 1,000 Nepal-bound cargo trucks have remained stuck at the Nepal-China borders as the Chinese authorities are reluctant to allow cargo movement via the land routes.

Both Nepal-China border points of Rasuwagadhi-Kerung and Tatopani-Khasa have remained closed since late January to prevent the possible spread of coronavirus which was first detected in Wuhan of Hubei Province of China in late 2019.

Over the period, these trade points were opened only for a few days allowing the movement of a limited number of cargo trucks carrying medical kits in particular.

An official of Singati Hydropower Project said that their imported equipment has been stuck in Kerung for the last eight months.

“The construction work of the project has been halted while the cost also seems to soar up heavily,” said the official on condition of anonymity.

Officials at the Ministry of Industry, Commerce and Supplies said the northern neighbor paid no response despite repeated requests for reopening these border points.

Citing the spike in coronavirus cases in Nepal along with weak mechanisms to tackle the pandemic, the Chinese authorities have been avoiding the issue of reopening the borders any time soon, according to the officials.

According to traders, the cargo trucks have been carrying mainly construction equipment, electronic devices and Dashain-targeted goods.

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.