KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Decline of tourist arrivals in 2019 raises concerns for VN 2020
The ‘significant’ decline rate of tourist arrival in Nepal in 2019 has raised doubts over the possibility of fulfilling the target of bringing in over 2 million tourists in Visit Nepal Year 2020. Tourism entrepreneurs are partly blaming the pollution in India as several tourist packages include both Nepal and India.
Currently, India is not an attractive tourist destination because of which there has been a slowdown in tourist flow in Nepal as well. Similarly, the coronavirus is preventing Chinese tourists to travel.
Sunkoshi-Marin project gets national pride status
The government has decided to enlist Sunkoshi-Marin Diversion Multipurpose Project as a ‘national pride project’. The government has been allocating over Rs 130 billion annually for the national pride projects.
But, as the performance of these projects has seen slow progress despite getting appropriate budgetary allocation, the government is also considering allocating the funds to other projects that need to be built without delay.
The government has earmarked Rs 2.5 billion for the project in the current fiscal year. Sunkoshi-Marin will be the second inter-basin infrastructure project to fix a tunnel boring machine after the Bheri Babai Diversion Multipurpose Project in Surkhet.
The expenditure of the irrigation component of the multipurpose project is predicted to be Rs 37.2 billion, while hydropower is expected to cost Rs 46.19 billion.
Banking in Nepal: A shift from ‘cash to cashless’
Despite frequent news about cyber-crime and the possible chances of getting the account swept by the hackers, the tech-friendly people seem unmoved towards their resolution of things their wallets substituting cash with ATMs.
At least the increasing users of ATMs show they are still assured of the safety and security of the electric wallet. According to Nepal Rastra Bank, the governing body of banks and financial institutions in Nepal, more than 6.785 million customers have debit cards while 123,146 use credit cards.
The number of ATM machines has reached 3,316 in the country. Likewise, 8.347 million customers of Banks and Financial Institutions (BFIs) use the service of mobile banking while 900,000 have subscriptions for internet banking.
Within 3 years the number has reached to 900,000 from 500,000. Similarly, 207.867 million people have accounts in different financial institutions in Nepal.
Gold dearer by Rs 200
The price of gold increased by Rs 200 on Thursday. According to the Federation of Nepal Gold and Silver Dealers Association (FENEGOSIDA), the bullion price has reached Rs 75,000 per tola on Thursday.
It was sold for Rs 84,800 per tola on Wednesday. Similarly, the price of silver today is Rs 885 per tola, according to FENEGOSIDA.
Himalaya Airlines starts direct flight to Chongqing
Himalaya Airlines has initiated scheduled flights to Chongqing from Thursday. The airline – a joint venture between Nepali and Chinese companies – will run Airbus A320 aircraft for the flight.
The flight will be operated three times a week – on Mondays, Thursdays and Saturdays. This is the fifth direct flight of Himalaya Airlines to China after Beijing, Guiyang, Changsha, and Shenzhen. The new service is anticipated to offer greater options for both business and leisure travelers.
Only 10 local levels without bank access: NRB
The government’s objective of reaching access to commercial banks to all local levels across the country is close to materialization.
According to a Nepal Rastra Bank (NRB) report, only 10 local levels are without a bank. The 10 local levels are not able to set up bank branches due to geographical and logistics difficulties. A single local level out of a total of 137 is beyond the access of banks in State-1.
Similarly, only one out of a total of 136 local levels in State-2 does not have a bank. Similarly, two local levels out of a total of 119 local levels have yet to get access to a bank in Bagmati State. Likewise, only one out of a total of 85 local levels is waiting for establishing a bank branch in Gandaki state.
It may be noted that all local levels have bank access in State-5. In Karnali State, 78 local levels out of 79 have bank access while four out of 88 local levels don’t have bank branches in Sudurpaschim State.
Nepal Airlines pilots resign en-masse
As many as 25 pilots of Nepal Airlines have tendered their resignation. They tendered their resignation en-masse accusing the management of discriminating against them in favor of foreign pilots over pay and benefits.
They have given a three-month deadline warning the management to end the existing discrimination or approve their resignations. In the resignation, they have demanded to replace all the foreign pilots by giving training within three months. Pilots at Nepal Airlines have been expressing grievances for a long time.
US firm makes down payment, confirming the purchase of Boeing 757
CSDS Aircraft Sales and Leasing Inc, a US-based firm has made a down payment to purchase the last remaining aircraft of Nepal Airlines, Boeing 757.
The firm deposited $281,000 which is 5% of the total cost of the aircraft. The signing of the agreement will be done by January and then the remaining amount will be received.
Govt may probe ill-gotten gains stashed in foreign lands
The Prime Minister’s Office has signed a bill that allows the Commission for the Investigation of Abuse of Authority (CIAA) to allow to investigate property held in foreign countries and retrieve it if it is found to have been acquired through corrupt means.
Sajha asked to return funds to government
Sajha Yatayat has been asked to return the Rs 3 billion it had received from the government six months ago. The funds were made available to them for the purchase of 300 electric buses.
In a cabinet meeting held last week, it was decided that Sajha Yatayat should be asked to return the funds along with interest on the funds. In May last year, the government had made Rs 3 billion available to Sajha Yatayat Sahakari Sanstha Ltd as share capital to purchase 300 electric buses for the capital.
The decision the retrieve the money comes three months after an intervention by the Ministry of Physical Infrastructure and Transport to block Sajha Yatayat’s initiative to secure a fleet of clean vehicles. The government has over 50 percent stake in the cooperative.
Budget implementation in Nuwakot disappointing
The use of the budget made available for the development of the Nuwakot district has been deemed disappointing. In the first six months of the fiscal year, the offices under the federal government have spent 27.5 percent and the state government offices have spent 5 percent.
According to the Treasury Control Office in Nuwakot, the federal government’s 46 offices in Nuwakot made public spending amounting to Rs 880.7 million out of the Rs 3.31 billion budget made available for the fiscal year.
Office Chief Diwakaran Ghimire said that 20 government offices under the state governments and local governments have spent 103.9 million out of Rs 1.99 billion, further indicating the disappointing state of public spending in Nuwakot.
(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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