KATHMANDU: Economic Digest (weekly) offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
A tripartite power trade deal was signed on Thursday in Kathmandu, allowing Nepal to export 40 megawatts of hydroelectric power to Bangladesh, marking a significant milestone in regional energy cooperation.
The agreement was signed by Kulman Ghising from the Nepal Electricity Authority, Mohammad Rezaul Karim from Bangladesh’s Power Development Board, and Renu Narang from India’s NVVN, with energy ministers from both countries present.
This deal promises economic benefits and enhanced energy security for both nations.
Additionally, the domestic gold market saw an increase in prices, with gold rising by Rs 100 per tola to Rs 160,900, reflecting positive sentiment.
Meanwhile, the Nepal Rastra Bank issued warnings to bank executives regarding strict measures against money laundering violations, amidst a significant rise in suspicious transactions.
Meanwhile, Shree Airlines announced the launch of commercial flights from Kathmandu to Bharatpur, starting with chartered services and regular flights scheduled for October 9, accommodating 50 to 60 passengers due to runway constraints.
Agreement signed to export Nepal’s power to Bangladesh
A long-awaited tripartite power trade deal was signed on Thursday in Kathmandu, enabling the export of Nepal’s hydroelectricity to Bangladesh. Under this agreement, Nepal will export 40 megawatts of power to its southern neighbor.
The contract was signed by Kulman Ghising, Executive Director of the Nepal Electricity Authority (NEA); Mohammad Rezaul Karim, Chairperson of Bangladesh’s Power Development Board; and Renu Narang, Chief Executive Officer of India’s NVVN, the nodal agency overseeing the arrangement.
The signing took place in the presence of Nepal’s Energy Minister, Dipak Khadka, and Bangladesh’s Minister for Forest, Environment, Climate Change, and Water Resources, Syeda Rizwana Hasan.
This landmark agreement marks a significant step in regional energy cooperation, promising economic benefits and enhanced energy security for both countries.
Gold price increases in domestic market
The price of gold has increased in the domestic market on Thursday.
Gold price rose by Rs 100 per tola, reaching Rs 160,900, according to the Nepal Gold and Silver Traders Federation. This follows a trading price of Rs 160,800 on Wednesday.
Additionally, silver prices also saw an increase today, rising by Rs 15 to Rs 1,950, as reported by the Federation.
Overall, the data points to a positive sentiment in the precious metals market, which may reflect investor confidence or reactions to external economic factors.
Observing these trends over time could provide insights into market stability and investment opportunities in the precious metals sector.
NRB warns BFIs executives of possible dismissal for ignoring money laundering issues
Nepal Rastra Bank (NRB) has warned executives of banks and financial institutions (BFIs) that they face serious consequences for overlooking money laundering issues.
A recent amendment to its directives mandates immediate action against officials violating money laundering laws, with potential penalties including fines of Rs 1 million to Rs 50 million, dismissal, or both.
To enforce compliance, the NRB has established a ‘Money Laundering Prevention Supervision Division.’
The move comes in response to a significant rise in suspicious transactions, with the NRB’s Financial Information Unit reporting 6,255 cases worth about Rs 40 billion in 2023—a 57 percent increase.
This follows a 68 percent rise in 2021 and more than double the previous year’s count in 2022.
Shree Airlines starting commercial flights from Kathmandu to Bharatpur
Shree Airlines is commencing its services from Kathmandu to Bharatpur starting today.
The airline has announced that its 80-seat Q400-8 aircraft will begin commercial flights on Friday.
Corporate Director Anil Manandhar confirmed that chartered flights will start on Friday, with regular flights scheduled to begin on October 9.
From October 9, Shree Airlines will operate two daily flights on the route.
To accommodate the shorter runway at Bharatpur Airport, the aircraft will carry only 50 to 60 passengers.
The one-way fare for this route has been set at Rs 4,500.
(Prepared by Srija Khanal)
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