KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEPSE index down by 3.97 points, turnover exceeds Rs 4 billion
On Monday, the NEPSE index experienced a slight decline of 3.97 points, equating to a 0.19% drop, bringing the index down to 2,790.07. The day’s trading saw a turnover of Rs 4.4 billion, with 8.82 million shares being exchanged.
The market displayed mixed performance among companies, with 110 companies seeing an increase in their stock values, 129 companies experiencing a decrease, and 8 companies remaining stable.
Investors in Buddhabhoomi Hydropower Nepal Company enjoyed the highest gains, while those in NIBL Stable Fund faced the largest losses. This downturn in the index comes after a previous gain of 13.51 points on Sunday, indicating a recent period of volatility in the market.
Lawmakers deliberate on fiscal budget
Lawmakers on Monday discussed the federal budget for 2024/25, highlighting both its comprehensive scope and its shortcomings. While many of the lawmakers praised plans for regional development, other MPs criticized the budget for lacking focus on integrity, economic improvement, production growth, and employment.
Concerns were raised about the disparity between capital and current expenditure, and the absence of projects to curb youth emigration. Suggestions included reforms in the revenue system, increased capital expenditure, and a needs assessment for key sectors. The importance of effective budget implementation and innovation was also stressed. Discussions will continue on Tuesday as well.
NA Members air mixed views on fiscal budget
The National Assembly members’ perspectives on the fiscal budget for 2081-82 BS (2024-25) reveal a spectrum of views, highlighting both optimism and concerns.
While some members commend the budget’s realism and balance, others emphasize challenges in its implementation, such as addressing the economic crisis effectively and ensuring adequate funding for key sectors like agriculture.
There were differing opinions on the budget’s ambition, with calls for increased payroll alongside concerns about reduced agricultural allocations and foreign debt reliance.
Overall, there was a consensus on the importance of fulfilling commitments and addressing policy-level issues to facilitate budget implementation effectively.
Governor Adhikari emphasizes fiscal productivity and monetary policy flexibility
Nepal Rastra Bank (NRB) Governor Mahaprasad Adhikari expressed concerns about the unproductive nature of government capital expenditure and bank investments while pledging to maintain flexibility in monetary policy for the upcoming fiscal year.
He highlighted the bank’s implementation of flexible monetary policies in recent reviews and indicated discussions with relevant authorities for the upcoming policy.
Adhikari urged private sector investment in productive sectors, noting the budget’s focus on private sector engagement and agriculture sustainability. He stressed the importance of honest budget efforts and collaboration with the private sector for economic growth.
Gold prices plunge as Monday’s market sees Rs 1000 drop per tola
The gold market on Monday highlighted a shift, indicating a notable decrease in the price of gold within a single day. This change is reflected in the updated price of gold, which was fixed at Rs 141,000 per tola, marking a decline of Rs 1000 per tola compared to the previous trading day.
This decrease came after Sunday’s record high of Rs 142,000 per tola, emphasizing the volatility of gold prices. The involvement of the Federation of Nepal Gold and Silver Dealers’ Association in setting the price of standard gold underscores the organized nature of the gold market in Nepal and the importance of transparent pricing mechanisms.
Tuesday’s forex as per NRB
The prices of the US dollar and Qatari riyal have been stable for the past three days, while the Euro and British pound experienced increases on Monday, according to Nepal Rastra Bank (NRB).
The buying rate for one US dollar is 132 rupees 74 paisa, with the selling rate at 133 rupees 34 paisa on Tuesday. For the Euro, the buying rate stands at 143 rupees 92 paisa, and the selling rate is 144 rupees 57 paisa.
The British pound’s buying rate is 168 rupees 99 paisa, with a selling rate of 169 rupees 76 paisa. Additionally, the buying rate for one Qatari riyal is 36 rupees 42 paisa, while the selling rate is 36 rupees 58 paisa.
Lumbini Policy and Program Announcement
Lumbini Province Chief Amik Sherchan unveiled Lumbini Province’s policies for the fiscal year 2081-82, emphasizing agricultural development, education, health, tourism, and infrastructure.
Key initiatives include programs for farmers’ prosperity, commercial agriculture, soil improvement, and women’s empowerment. The government has aimed to complete ongoing projects, attract tourists, and promote entrepreneurship for economic growth.
Expired food items worth Rs 400,000 destroyed in Baiteswar
Baiteswar Rural Municipality in Dolakha conducted a market inspection in Chadke, resulting in the confiscation and destruction of over 400,000 NPR worth of expired non-edible daily consumables.
The operation carried out in collaboration with local authorities, police, and media, aimed to crack down on expired items and unlicensed businesses.
Chairman Chabi Lama highlighted the intensified efforts of the local administration in addressing this issue, while Rabindra Chaulagain noted the prevalence of expired goods in major food stores and village shops during the inspection.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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