KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest developments in Nepal’s economy reflect a mix of progress and challenges across different sectors.
The Nepal Stock Exchange (NEPSE) showed a positive recovery, rising by 19.97 points with strong trading activity amounting to Rs. 10.54 billion, signaling investor confidence despite previous fluctuations.
Meanwhile, the gold market faced a significant downturn, with prices of fine and Tejabi gold dropping by Rs. 1,200 per tola, signaling a shift in commodity trends possibly influenced by global economic factors.
On the development front, Industry Minister Damodar Bhandari highlighted efforts to boost foreign investments, with a new online platform for FDI and reduced thresholds for investments, aiming to improve Nepal’s economic standing.
However, the Seti Highway, a critical National Pride Project intended to improve connectivity in the Far West, is moving forward at a slow pace, raising concerns about the timely realization of infrastructure goals.
Despite these hurdles, events like the ‘Nepal India China Expo’ in February offer hope for boosting Nepal’s tourism sector, while companies like SKBBL are making strides with a proposed 14% dividend, reflecting the resilience of the financial sector.
NEPSE climbs 19.97 points with Rs. 10.54 billion in trades
The Nepal Stock Exchange (NEPSE) on Monday rose by 19.97 points (0.72%), closing at 2,758.04, recovering from a decline of 9.99 points in the previous session.
The market opened at 2,749.27 and experienced fluctuations throughout the day, reaching a low of 2,746.47 and a high of 2,773.47. Trading activity was strong, with a total turnover of Rs. 10.54 billion, resulting from the exchange of 23,011,361 shares across 314 companies in 103,481 transactions.
Gold price declines by Rs. 1,200 per tola
The Nepali gold market experienced a significant decline on Monday, with the price of fine gold dropping by Rs. 1,200 per tola, and priced at Rs. 149,300.
Similarly, Tejabi gold also saw a reduction of Rs. 1,200, bringing its price to Rs. 148,600 per tola. This drop marks a contrast to the record high of Rs. 171,000 per tola that fine gold reached on October 31, 2024.
Alongside gold, silver prices also saw a slight dip, falling by Rs. 25 per tola to Rs. 1,815. This downturn in precious metal prices reflects fluctuations in market trends, possibly influenced by global economic factors and local demand.
Nepal India China Expo from February 24
The ‘Nepal India China Expo (NICE-2025)’, scheduled for February 24-26 in Pokhara, aims to promote Nepal’s tourism potential in two of the world’s fastest-growing economies—India and China.
Supported by key stakeholders such as the Nepal Tourism Board and local tourism organizations, the expo’s goal is to attract more tourists from these neighboring countries while fostering business opportunities in the hospitality sector.
With the theme “NICE for MICE and More,” the event is expected to bring together over 1,000 delegates, including 150 regional buyers, 100 exhibitors, and 25 media invitees, helping to strengthen Nepal’s position as a major destination for tourism and business events in the region.
SKBBL proposes 14% dividend for FY 2080/81
Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) has proposed a 14% dividend amounting to Rs. 53.28 crores for the fiscal year 2080/81.
This proposal was made during the 47th board meeting on Mangsir 16, based on a paid-up capital of Rs. 3.80 billion.
The proposed dividend includes 13.30% in bonus shares, valued at Rs. 50.62 crores, and a 0.7% cash dividend, amounting to Rs. 2.66 crores, to be distributed for tax purposes.
The dividend will be finalized after receiving approval from the central bank and confirmation at the company’s next AGM. As of now, SKBBL’s Last Traded Price (LTP) stands at Rs. 929.00.
Industry Minister Bhandari encourages foreign investments in Nepal
Industry Minister Damodar Bhandari of Nepal encouraged foreign investors to prioritize Nepal during his speech at the 29th Partnership Summit in New Delhi, India.
He announced that foreign investors can now apply for investments up to Rs 500 million in Nepal.
Additionally, Bhandari highlighted the implementation of an automated pre-approval system for foreign investment proposals through an online platform. He also revealed that the threshold for Foreign Direct Investment (FDI) has been reduced to Rs 20 million from Rs 50 million, with no threshold for investments in the IT sector.
Construction of priority project, Seti Highway, in limbo
The construction of the Seti Highway, a priority project for the government, is progressing slowly despite its significance for the development of Far West Nepal.
Initiated in the fiscal year 2065-66 BS, the National Pride Project aims to enhance connectivity in Sudur Paschim Province by linking its northern and southern borders.
The highway will connect to Taklakot in Tibet through several districts, including Baunia, Tikapur, Kailali, Chainpur, Doti, Achham, Bajura, and Bajhang, but its construction remains sluggish.
Poor people to get concessional loan to invest in hydropower
The Ministry of Energy, Water Resources and Irrigation is to make arrangement of concessional loan to poor citizens without collateral.
It is going to make such arrangements to ensure that the poor people can get hydropower project shares under ‘People’s hydropower project’ to make the country prosperous by improving the living standard of poor citizens across the nation.
As per the arrangement, a poor household can invest after getting a concessional loan from Rs 200,000 to Rs 500,000 without collateral as per the capacity of the hydropower projects.
(Prepared by Srija Khanal)
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