KATHMANDU: Economic Digest offers a concise yet comprehensive overview of latest business happenings in Nepal, presented in easily digestible summaries.

Department of Industry approves 10 foreign investment proposals

The approval of 10 foreign investment proposals by the Department of Industry suggests a positive trend in foreign investment approvals in Nepal following the implementation of the automatic route.

The effort to attract more foreign investment is evident from the total of 26 proposals received. The initiation of the process by 16 investors underscores the interest in investing in Nepal’s market.

The introduction of the automatic route during the Nepal Investment Summit seems to have played a significant role in facilitating smoother entry into sectors, as evidenced by the approved investments totaling Rs 9.13 billion.

This suggests a positive outlook for Nepal’s investment climate and demonstrates efforts to streamline procedures and attract foreign capital.

NA Committee pioners shift in financial practices

With the National Assembly’s Legislation Management Committee endorsing the bill pertaining to the Safe Transactions First Amendment Bill-2080, the far-reaching implications extend beyond conventional collateralization norms, heralding a progressive era in financial practices.

The genesis of this amendment traces back to the Safe Transactions Act of 2063 BS, marking a paradigm shift in financial transactions.

This allows for a broader range of movable assets, agricultural produce, and minerals, to serve as collateral in financial transactions, expanding beyond the traditional reliance on immovable assets.

NEPSE slumps despite surge in company shares

The Nepal Stock Exchange (NEPSE) on Wednesday experienced a marginal downturn, shedding 0.21 points to settle at 1960.60 points. Transactions were robust, totaling 58,74,967 shares valued at NPR 2,054 crores, 70 lakh, and 30 thousand, traded 41,137 times.

In the trading session, participation extended to 305 companies, with 124 witnessing an uptick in share prices, 107 observing a decline, and 12 maintaining stability. The sensitive index dipped by 0.17 points, while both the float index and sensitive float index saw marginal gains of 0.09 points each.

Across the 13 subgroups, 4 noted an increase, while 8 registered a decrease, notably in finance, hydro, microfinance, and trading sectors.

NPC Unveils Public Investment Action Plan

The National Planning Commission (NPC) launched a public investment management action plan (2081/82-2085/86) to enhance project spending efficiency across government, public corporations, and public-private investments.

This strategy aims to accelerate development projects, boost capital spending, and ensure the effectiveness of public investment. With a significant portion of infrastructure budgets remaining unspent at all levels of government, the action plan seeks to address persistent issues in this sector.

Kathmandu hosts ATI workshop for Tax Administration Improvement

A regional workshop held in Kathmandu, part of the Addis Tax Initiatives (ATI), involves 60 attendees from 16 ATI member nations. Aimed at enhancing transparency, accountability, and effectiveness in tax administration, it seeks to address financial challenges and review existing revenue mobilization policies.

This, as participants note, is pivotal for achieving inclusive and sustainable development goals through fiscal mobilization and collaboration among ATI nations.

Sunkoshi-Marin Diversion Tunnel undergoes breakthrough

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ initiated the breakthrough of the Sunkoshi-Marin Diversion Multi-purpose Project tunnel ahead of schedule on Wednesday.

The tunnel, spanning 13.3 kilometers from Kusumtar to Kanadhungri, features a 5.5-meter diameter and employs advanced technology and will play a vital role in the construction of a dam across the Sunkoshi river at Kanadhungri, redirecting water to generate 31.07 megawatts of electricity at Marinkhola stream.

PM Dahal assures ‘innovative’ budget approach

Demonstrating a proactive stance towards addressing socio-economic challenges and fostering inclusive development, Prime Minister Pushpa Kamal Dahal assured a proactive strategy aimed at overhauling policies, programs, and the budget for the upcoming fiscal year.

He stressed the importance of adopting innovative measures. To tackle economic disparities, Dahal proposed a comprehensive plan focused on building a more equitable society, with a long-term vision of strengthening the foundations for socialism. PM Dahal also made the commitment to engaging with a wide range of stakeholders to ensure a holistic and people-centric approach to policymaking.

Ministry of Finance allocates additional funds for by-election costs

The Ministry of Finance allocated an additional 10 million rupees to cover the expenses related to the by-elections conducted in Ilam and Bajhang on April 27.

This decision was made in response to the increased financial needs of the Election Commission, the Ministry of Finance provided extra funds beyond the regular budgetary provisions.

Stressing the unique circumstances of by-elections, the ministry underscored the need for additional financial assistance due to the absence of specific budget allocations for such events.

Gold prices hold firm, silver stable in Nepal market

The domestic gold market indicated a period of stability, with prices remaining constant from the previous day. Gold prices remained stable on both Tuesday and Wednesday, set by the Nepal Gold and Silver Dealers’ Association.

Fine gold was priced at Rs 136,400 per tola, while standard gold traded at Rs 135,750 per tola. Silver prices also stayed relatively unchanged at Rs 1,675 per tola. This consistency suggests a lack of significant market fluctuations, which could be influenced by various factors such as global economic conditions, demand-supply dynamics, and geopolitical events.

(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.