KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Nepal Bank Limited to conduct SGM via Zoom
The Nepal Bank Limited (NBL) is conducting the bank’s Special General Meeting (SGM) online on October 5, 2020 via Zoom.
The bank said that it will provide the shareholders will Zoom ID and passcode to participate in the SGM. According to the bank, the meeting will be streamed live from 11 am via the bank’s central office at Dharmapath in Kathmandu.
It has been said that the meeting will endorse the amendment of the bank’s existing rule.
Rs 48 billion revenue collected in two months
The Department of Customs (DoC) has collected Rs 48 billion in revenue in two months.
Revenue of Rs 47.83 billion was collected in mid-July to mid-September, according to the DoC. The collected amount is 94.33 percent of the target.
The target was to collect Rs 50.71 billion in two months. The department had collected more revenue than the target during mid-July to mid-August.
A total of Rs 22.84 billion was collected during that period. The highest revenue of Rs 8.59 billion has been collected from Birgunj Customs.
Similarly, the revenue of Rs 6.49 billion has been collected from Bhairahawa, Rs 2.56 billion from Biratnagar, Rs 2.51 billion from the dry port and Rs 1.46 billion from Nepalgunj.
Likewise, Rs 930 million has been collected from the Tribhuvan International Airport.
NCC bank puts up 500,000 units of shares for auction
NCC bank has issued 500,000 units of shares for auction starting Friday.
Owned by Nepal Insurance Company, the bank has fixed Rs 110 per unit of share as a minimum price.
Organizations, companies, individuals can file applications to procure the shares. Nepal Insurance Company has assigned NIBL Ace Capital, Kathmandu as the issue manager.
The applications should reach the office of NIBL Ace Capital by October 22. Individuals can apply for minimum of 1,000 units of shares to the entire amount of shares, according to the company.
The order of the auction will be made public at the office of NIBL Ace Capital, Lazimpat at 3 pm on November 5, 2020.
Cardamom processing in Nepal to begin from November
At a time when Nepal has been exporting huge quantity of its cardamom production, the post-harvest processing of the spice is likely to begin in the country.
Nepal’s cardamom would partly be processed in the country from coming November. A processing industry has been already set up at Arjundhara of Jhapa at the cost of Rs 30 million.
The centre is planning to purchase four categories of cardamom – large, middle, small and general for commercial processing, shared its proprietor Nirmal Bhattarai.
Till this date cardamom was being exported to international markets in a sack without packaging. This trend has created trouble from international export to price fluctuation.
Entrepreneurs involved in cardamom trade in Nepal have believed that such problems would be reduced following the setup of processing industry within the country.
Mainly Nepal’s cardamom is being exported to India, Pakistan, UAE, European countries and the United States though its big market is Nepal in itself.
Bhattarai claimed that the industry could process only 15 percent of country’s total production of cardamom.
MCC Compact will be endorsed: Foreign Minister Gyawali
Minister for Foreign Affairs Pradeep Gyawali has reiterated that the Millennium Challenge Corporation (MCC) Compact signed between Nepal and the US will be endorsed by the Parliament.
Minister Gyawali made the statement as the ruling Nepal Communist Party’s (NCP) Standing Committee meeting recently decided to endorse MCC by making necessary amendments.
Minister Gyawali said any concerns raised about the MCC Compact would be addressed before endorsing it. It should be noted that the ruling NCP is divided over the issues.
The party had formed a three-member task force comprising party senior leader Jhala Nath Khanal, Standing Committee member Bhim Rawal, and Pradeep Gyawali to recommend on the issue.
While Khanal and Rawal were against the idea of endorsing the MCC Compact, Gyawali has argued that Nepal should endorse it.
Train for Kurtha-Jayanagar arrives
The train, including the engine and coaches to run the railway service from Kurtha in Dhanusha district in Nepal to Jayanagar in India, has arrived.
The Kurtha-Jaynagar Railway measuring 35 kilometers in length section was constructed with India’s technical and financial support.
The railway is likely to come into operation after Dashain and Tihar festivals. The rail set was procured from the Konkan Company in India.
Meanwhile, the Bill relating to Railways is currently under deliberations in the parliament.
NRB makes receiving foreign currency earned from IT services, social media monetization easier
Nepal Rastra Bank (NRB) has made the transfer of foreign currency earned from e-commerce as well as social media platforms like YouTube easier.
NRB’s Payment Systems Department said that foreign currency earnings from the export of information technology services and expertise, contents posted on social media and retail-level international professional or business services could be received through bank accounts.
According to the notice, the foreign currency deposited in a domestic bank account can be transferred to the digital wallets or other payment instruments in local currency to the limit allowed by the central bank.
The Payment Systems Department also said that any customer has to transfer money abroad to pay fee or royalty while earning such foreign currency after following the directive issued by the central bank.
Each banking institution will have to submit all such transactions in a prescribed format to the Payment Systems Department within 15 days of the end of each month, according to the notice.
The new provision is aimed at facilitating the transfer of foreign currency that individuals and firms earn by providing their expertise or services related to information technology including the money earned through social media monetization.
Nepse breaks post lockdown high as BFIs advance
The stockes witnessed one of the best trading days in the last couple of months.
Stocks maintained positive bias throughout the trading session with the Nepal Stock Exchange (Nepse) index trading around 10 points higher in the beginning hour.
The index plateaued at mid-day but considerable strength in the latter hours pushed the index 30.78points higher to close at 1,572.18.
After witnessing range bound trading for the past couple of sessions, the index climbed well over 1,550 point’s mark to hit a fresh post lockdown high.
The current level is also only 4% lower against February’s multi-year closing high of 1,632 points. Notable enthusiasm seen in the banking sector along with hotel and hydropower segments has continued to drive the Nepalese equity market higher.
Total turnover also remained upbeat with more than Rs. 3.7 billion worth of shares being traded on the day.
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.
Comment