KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
With recent shifts in power, there is growing apprehension that the pending payment of 40 billion rupees owed by the state to construction contractors may face delays. Youth and Sports Minister Biraj Bhakta Shrestha has expressed concerns over this issue.
On Thursday, the Nepal Stock Exchange (NEPSE) witnessed a rise of 15.6 points, marking a positive end to the week.
Meanwhile, the Nepal Electricity Authority launched the operation of the power distribution system control and data center.
In further economic developments, the European Union (EU) announced a grant of Rs 12 million for Creation Nepal’s green shift project.
Moreover, Thursday’s market report indicates an increase in the prices of gold and silver in Nepal.
Gold prices surged by 1,600 rupees per tola to reach 144,300 rupees per tola. Additionally, the government has reached agreements on three key points with protesting crusher businessmen.
Meanwhile, the Ministry of Culture, Tourism, and Civil Aviation initiated an investigation into issues surrounding Nepal Airlines Corporation’s aircraft maintenance in Israel and Italy.
Furthermore, there are positive indicators for Nepal’s industrial sector investment environment compared to the previous fiscal year.
The Federation of Construction Association Nepal (FCAN) has highlighted that payments for completed projects remain outstanding, citing delays across various governmental development sectors such as roads, irrigation, drinking water, urban, and building construction.
Ravi Singh, President of FCAN, expressed concerns over the accumulation of unpaid obligations from fiscal year 2080-081 onwards.
He noted ongoing efforts by the government to address these liabilities gradually but emphasized that significant dues persist, particularly in road and irrigation projects.
Additionally, in Thursday’s National Assembly meeting discussing the Appropriation Bill, Minister Shrestha announced allocations for sports development.
Over 43.4 million rupees have been earmarked, including 4.34 crore rupees for specialized training of more than 200 athletes across 10 sports in preparation for international competitions.
Minister Shrestha also detailed allocations of 20.9 million rupees for international participation and 1.1 million rupees for the promotion of traditional sports like Bagchal, Dandibiyo, and horse riding.
NEPSE increases by 15.46 points
On Thursday, the Nepal Stock Exchange (NEPSE) saw a rise of 15.46 points. This increase resulted in a 0.73 percent rise in turnover, reaching 6.48 billion 2.546 thousand 980.
During Thursday’s trading session, the share prices of 148 companies rose, while 93 experienced declines.
The prices of shares in 6 companies remained unchanged. Total trading volume on NEPSE amounted to 2 crore 21 lakh 67 thousand 678 shares, with investors of Ankhukhola Hydropower Company registering the highest gains and Mailung Khola Hydropower Company investors experiencing the most losses.
Improved investment climate: Proposal for 2 billion investment
There has been noticeable improvement in Nepal’s industrial investment climate compared to the previous fiscal year.
Over the course of the current financial year’s first 11 months, proposals for investments totaling nearly 2 billion rupees have been submitted in Nepal’s industrial sector.
According to the Department of Industry, new investments amounting to 2 trillion 17 billion rupees have been proposed in Nepal’s industrial sector by the end of mid-May.
During this period, Nepal registered 383 new industries, comprising 49 large-scale, 50 medium-scale, and 284 small-scale industries. These registered industries have committed to creating job opportunities for 26,027 individuals, as per departmental data.
Furthermore, the Department of Industry has approved 355 foreign investments during the 11-month period.
Industries approved for foreign investment have indicated plans to employ 17,642 people, underscoring a positive trajectory in Nepal’s industrial development and employment landscape.
NEA’s Data Center enhances operational efficiency
The Nepal Electricity Authority (NEA) has commenced operations at its power distribution system control and data center.
Located in Suchatar, Kathmandu, this facility integrates an advanced international data center alongside the existing load pressure center.
This digital infrastructure represents a significant step towards managing the authority’s operations more efficiently and securely through digital means.
It safeguards critical data, including billing information, smart metering data, payment records, and other financial and operational metrics related to electricity generation, distribution, and consumption.
The newly operationalized server system ensures robust data management capabilities, facilitating detailed records of consumer electricity usage and payment transactions.
This initiative marks a pivotal shift towards enhancing the authority’s data management practices and institutional memory.
Gold and silver prices rise
The prices of gold and silver have increased in the Nepali market. On Thursday, the price of gold rose by 1600 rupees per tola to reach 144,300 rupees per tola.
This marks an increase from Wednesday’s trading price of 142,700 rupees per tola.
Additionally, the Nepal Gold and Silver Traders Federation reports that gold is currently being bought and sold at 143,600 rupees per tola.
Similarly, the price of silver also seen an uptick on Thursday, rising by 40 rupees per tola to trade at 1865 rupees, according to the Federation.
EUR gains amid stable USD
The foreign exchange market on July 5 showed stability for the US Dollar and Qatari Riyal, while the Euro and British Pound experienced varying degrees of appreciation against the Nepalese Rupee, driven by market dynamics and currency-specific factors.
The US Dollar (USD) maintained a stable position with a buying rate of 133.30 NPR and a selling rate of 133.90 NPR. This stability suggests balanced demand and supply in the market for USD.
The Euro (EUR) saw an increase in its exchange rate, with a buying rate of 143.92 NPR and a selling rate of 144.75 NPR. This rise was attributed to a decline in the value of the US Dollar and Qatari Riyal, indicating stronger demand for Euros on that day.
The British Pound (GBP) exhibited significant strength against the Nepalese Rupee, recording a buying rate of 170.02 NPR and a selling rate of 170.78 NPR. This appreciation reflects robust demand for Pounds, likely influenced by market sentiment or specific economic factors favoring the GBP.
(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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