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’s growth projected to be tepid at 2.1 percent: World Bank

Economic growth of the country is estimated to contract sharply to 2.1 percent in Fiscal Year 2020/21 from the COVID-19 pandemic and related lockdown, despite efforts by the government to curb the economic fallout from the crisis, states the World Bank’s latest Nepal Development Update.

As a result, transitioning the economy from the relief stage through restructuring and resilient recovery requires a strategic approach to get the country back on a sustainable and inclusive growth path.

The report states that economic activity in the tourism sector will remain weak and remittances inflows will be moderate.

Supply chain disruptions will keep industrial and agricultural production low, says a statement issued by the WB Nepal Office.

Low economic activity and oil prices will also keep imports low and below the pre-crisis levels, leading to a projected narrowing of the current account deficit to 6.5 percent of GDP. Lower imports will continue to limit revenue collection.

However, fiscal measures announced as part of the FY2020/21 budget, including a revision of customs duties, will provide some support to the budget as spending levels on relief and recovery efforts remain elevated.

Taken together, the fiscal deficit is projected to marginally decline to 6.6 percent of GDP in FY2020/21.

Minister Pun urges Bangladesh to invest in Nepal’s hydropower

The government has urged the Bangladesh government and the private sector to invest in Nepal’s hydropower sector.

Minister for Energy, Water Resources and Irrigation Barshaman Pun urged the Bangladesh government and private sector investors to invest in the energy sector during a farewell meeting with Bangladeshi Ambassador to Nepal Mashfee Binte Shams at Singha Dubar.

Minister Pun also urged the Ambassador to be confident in investment security as an investment-friendly environment has been created in Nepal’s energy sector.

Recalling the agreement reached between Nepal and Bangladesh on cooperation in the energy sector, Minister Pun termed it as a milestone for energy trade between the two countries.

A bilateral agreement was signed between Nepal and Bangladesh at the Power and Energy Conference held in Dhaka on September 13, 2018 to purchase 9,000 MW of electricity from Nepal by 2040.

Earlier, a memorandum of understanding on energy co-operation was signed between Minister Pun and Bangladesh Energy Minister Nasrul Hamid.

Budget session of Province-1 ends

The budget session of Province-1 has been ended today. Speaker Pradeep Kumar Bhandari read out the letter regarding the end of the current session of the Province assembly in the House sent from the office of the Province Chief.

A total of 10 bills were passed unanimously in the budget session began from May 27, said Speaker Bhandari. Before this, the proposal presented by Minister for Social Development Jeevan Ghimire, seeking the passage of a bill designed to make arrangements regarding public health in Province-1-2076 BS was passed unanimously.

Responding to queries raised by members in the current session, Chief Minister Sherdhan Rai said that the government was serious and expressed the view that the Province assembly and government have been moving ahead in a friendly environment due to positive role of political parties.

Drinking water project at risk of flood, landslide

The under-construction Baribeni Broader Lifting Drinking Water Project located at Jaljala rural municipality-3 of Parbat district is at the risk of flood and landslide.

The drinking water project is under construction at a cost of Rs 130 million. The flood has damaged lifting connection chamber and technical building of the project. Advisor of the Project, Nagendra Thapa, said that the flood also swept away the wall of the project constructed for protection of drinking water structure.

Chairperson of Baribeni Drinking Water and Sanitation Users’ Committee, Loknath Regmi, shared that the project is at the risk as the landslide has been taking place above the project site due to upgrading of the Bhupi Sherchan highway and flood on Kaligandaki river following incessant rainfall.

The drinking water project is being constructed at 70 per cent investment of the government and 30 per cent investment of users since 2072 BS.

A total of 954 households of Jaljala- 2, 3 and 4 would be benefitted from the drinking water project. The project has set a target to lift water from Kaligandaki river through lifting system after purifying the water at houses of every user.

(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.