KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEA reports over Rs 11 billion profit in first nine months of fiscal year 2080/81
The Nepal Electricity Authority (NEA) reported a profit exceeding Rs 11 billion for the first nine months of the fiscal year 2080-81 BS (2024-25). Unprocessed data up to mid-April indicates a profit of Rs 11.06 billion, with total revenue of Rs 93.94 billion and expenditures amounting to Rs 82.88 billion.
This profit surpasses the Rs 8.88 billion reported in the same period last fiscal year. NEA has maintained profitability since 2072-73 BS (2015-16) after previous annual losses of Rs 8.89 billion, driven by reduced electricity leakage, increased domestic consumption, exports to India, and cost-cutting measures.
Net revenue from domestic power supplies was Rs 68.89 billion, with Rs 13.42 billion earned from exporting surplus power to India.
Nepal achieves key reforms: IM
The IMF stated that Nepal continues to progress and achieve reforms despite challenges, with economic growth expected to reach 4.9% in the fiscal year 2024-25, driven by stronger domestic demand.
The implementation of the Extended Credit Facility-supported program includes significant fiscal achievements such as the Ministry of Finance’s Domestic Revenue Mobilisation Strategy to enhance tax collection and the National Planning Commission’s action plan to improve budgeted capital project execution. Additional reforms to enhance fiscal transparency are also well advanced.
NEPSE ends week with 0.40 percent gain and Rs 20.78 arba turnover
This week, NEPSE recorded a 0.40% gain and a total turnover of Rs 20.78 arba. The highest intraday gain occurred on Sunday, with a rise of 13.51 points and a turnover of Rs 4.31 arba.
Throughout the week, over 4.36 crore unit shares were traded across 288,331 transactions. NEPSE’s current market capitalization stands at Rs 3,294,741.79 million, equivalent to Rs 32.94 kharba.
NRB announces forex rates
Nepal Rastra Bank (NRB) announced Sunday’s exchange rates for major foreign currencies, which remain unchanged from yesterday. The US Dollar is bought at 133.10 NPR and sold at 133.70 NPR. The Euro is trading at 144.99 NPR for buying and 145.64 NPR for selling.
The British Pound’s buying rate is 170.31 NPR, with a selling rate of 171.08 NPR. The Australian Dollar is bought at 88.68 NPR and sold at 89.08 NPR. The Kuwaiti Dinar is bought at 434.57 NPR and sold at 436.53 NPR, while the Bahraini Dinar is bought at 353.10 NPR and sold at 354.69 NPR.
This stability in exchange rates indicates no changes in the foreign exchange market from the previous day.
Construction of 400-KV Hetauda substation completes
The 400-KV Hetauda substation, capable of generating nearly 4,000 megawatts of electricity, has been completed in Hetauda sub-metropolis-11. This Gas Insulated System-based substation, the third largest in Nepal, began operations on Friday evening to enhance electricity transmission and distribution.
Additionally, 220-KV and 132/11 KV substations were completed at Thanabharyang under the Nepal-India Electricity Transmission and Trade Project.
The Hetauda substation is part of efforts to stabilize the east-west power supply, joining the Dhalkebar and Inaruwa substations, the country’s first and second largest GIS-based substations, respectively.
Minister proposes private ground handling at Gautam Buddha International Airport
Minister Hit Bahadur Tamang’s proposal to outsource ground handling services at Gautam Buddha International Airport to private airlines marks a notable shift in Nepal’s aviation sector, potentially enhancing efficiency and innovation through competition.
However, this move raises concerns about the impact on Nepal Airlines Corporation’s (NAC) expertise and service quality, as NAC has traditionally managed these responsibilities.
The proposal’s reliance on private airlines for regular operations introduces dependencies that could affect service reliability and pricing.
Minister Tamang’s push for increased direct flights through competitive bidding and his call for policy reforms and entrepreneurship promotion highlight the complexities of ensuring fair competition, optimal service standards, and sustainable growth in Nepal’s tourism industry.
(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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