KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Government unveils 16th five-year plan
The government unveiled the full text of the 16th Five-Year Plan.
The government’s 16th Five-Year Plan, presented by the National Planning Commission, will commence from the Nepali month of Shrawan and span the next five years.
The plan outlines 40 national goals aimed at achieving prosperity, categorized into three primary areas: good governance (10 goals), social justice (10 goals), and economic prosperity (20 goals). Key economic targets include boosting the GDP from USD 1,496 to USD 2,381 and increasing per capita income from USD 1,410 to USD 2,413.
The plan projects an average economic growth rate of 6.6 percent over the period, with an ultimate goal of reaching a 7.1 percent growth rate by the final year.
NEPSE drops by 5.58 points
The Nepal Stock Exchange (NEPSE) on Wednesday experienced a decline, dropping by 5.58 points, which is a 0.26 percent decrease, settling at 2079.71 points.
The day’s trading involved a substantial volume, with transactions worth Rs 3.99 billion, encompassing 8,042,767 shares traded across 49,733 transactions.
Out of the 306 companies listed, the share prices of 83 companies increased, while 158 companies saw their share prices decrease, and 6 companies’ share prices remained stable.
Additionally, various indices reflected the market’s overall downward trend. The Sensitive Index fell by 0.41 points, the Float Index by 0.48 points, and the Sensitive Float Index by 0.21 points.
Among the 13 market sectors, 1 sector remained unchanged, 4 sectors witnessed an increase in their indices, and 8 sectors experienced a decline. This data indicates a mixed market performance with a general downward trend on this trading day.
Finance Minister claims budget a booster to economy
Finance Minister Barshaman Pun asserted that the newly unveiled Rs 1.86 trillion budget for the fiscal year 2024/25 is designed to boost the national economy.
The budget aligns with the constitution, the 16th periodic plan, and international commitments, incorporating feedback from lawmakers and government policies. Pun emphasized that the budget will invigorate the economy by enhancing private sector morale and mobilizing financial resources for economic activities and projects.
He assured a six percent economic growth through effective policy implementation and highlighted increased capital spending and resource allocation.
The budget prioritizes national pride projects, climate change, and a balanced tax system, aiming for a productive rather than distributional approach, with improved revenue administration capacity, he claimed.
Draft of National Strategy Against Money Laundering endorsed
The government has drafted a five-year “National Strategy and Action Plan for Fiscal Investment on Anti-Money Laundering and Terrorist Activities,” endorsed today by the Anti-Money Laundering Direction Committee.
Set to be implemented in the fiscal year 2024-25, the strategy aims to protect the economy from financial crimes, discourage corruption, and address issues like cryptocurrency trading, drug smuggling, and terrorist financing.
This follows recommendations from the Asia Pacific Group (APG) and the Financial Action Taskforce (FATF) after their 2022 evaluation, prompting legal and policy reforms in Nepal to avoid falling into the FATF’s gray list.
Gold price slides Rs 500 per tola
Today, the price of gold in the domestic market has seen a reduction of Rs 500 per tola, bringing it down to Rs 142,200 per tola on Wednesday.
This marks a decrease from the previous trading day’s price of Rs 142,700 per tola. Additionally, the Federation of Nepal Gold and Silver Dealers’ Association has set the price of standard gold slightly lower, at Rs 141,500 per tola.
The decrease in gold prices can be attributed to various factors including international market trends, currency exchange rates, and domestic market conditions.
This adjustment in gold prices could potentially influence consumer behavior, with lower prices possibly driving increased demand among buyers.
NRB sets Thursday’s foreign exchange rate
The Nepal Rastra Bank (NRB) has set the exchange rates for foreign currencies for today, June 6.
This adjustment indicates a normal fluctuation in the foreign exchange market following a previous increase.
According to NRB, the exchange rates for the US dollar, Euro, British pound, and Qatari riyal, which had increased on Wednesday, have decreased slightly on Thursday.
For the US dollar, the buying rate is 133 rupees 10 paisa, and the selling rate is 133 rupees 70 paisa. The euro has a buying rate of 144 rupees 59 paisa and a selling rate of 145 rupees 24 paisa.
The British pound’s buying rate is 170 rupees 0 paisa, and the selling rate is 170 rupees 76 paisa. The Qatari riyal’s buying rate is 36 rupees 51 paisa, and the selling rate is 36 rupees 67 paisa.
(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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