Wednesday, November 13th, 2024

Economic Digest: Nepal’s Business News in a Snap


09 November 2024  

Time taken to read : 7 Minute


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

The Tribhuvan International Airport (TIA) in Kathmandu will be closed for 10 hours each day from 10:00 pm to 8:00 am for the next five months as part of a significant upgrade project.

This closure, which is a key aspect of the Air Transport Capacity Enhancement Project, aims to widen the southwest taxiway and expand both the international and hangar aprons.

The upgrades, costing Rs 15 billion, will modernize the airport’s facilities, but will temporarily disrupt air travel during the 10-hour closure, which conflicts with the airport’s usual operating hours of 6:00 am to 2:00 am.

This development comes amidst other economic movements, such as the rise in gold and silver prices in Nepal, where gold surged by 2,000 rupees per tola and silver increased by 20 rupees per tola.

On the employment front, over 170,000 Nepali nationals left for foreign jobs in the first quarter of the 2024/25 fiscal year, with the United Arab Emirates being the top destination.

Additionally, First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) reported a significant 38.68% drop in net profit for Q1 of fiscal year 2081/82, while Super Madi Hydropower Limited (SMHL) posted a 51% profit increase.

In the tourism sector, Nepal showcased its potential for adventurous tourism at the World Travel Market 2024 in London, highlighting the country’s rich cultural diversity and commitment to sustainable tourism practices.

TIA to remain closed for 10 hours

The Tribhuvan International Airport (TIA) in Kathmandu will be closed for 10 hours each day for the next five months.

The closure is part of a major upgrade project, according to the Civil Aviation Authority of Nepal (CAAN).

The Air Transport Capacity Enhancement Project includes the widening of the southwest taxiway, as well as expansions of the international apron (to the north) and the hangar apron (to the east). The total estimated cost of the upgrades is Rs 15 billion.

During the closure, which will be from 10:00 pm to 8:00 am, no flights will operate. This will affect the airport’s usual operating hours, which are from 6:00 am to 2:00 am.

Gold and silver prices experience upward trend today

Gold and silver prices both experienced an upward trend on Friday.

The Nepal Gold and Silver Dealers Federation reported that gold surged by 2,000 rupees per tola, reaching 166,500 rupees per tola. This followed a Thursday price of 164,500 rupees per tola.

Similarly, silver prices also saw a rise. Silver is now being traded at 1,980 rupees per tola, marking an increase of 20 rupees from the previous price, according to the Federation.

Over 170,000 Nepalis leave country for overseas employment in three months

Over 170,000 Nepali nationals left the country for foreign employment during the first quarter of the fiscal year 2024/25.

According to the Department of Foreign Employment (DoFE), a total of 170,593 people obtained labor permits to work abroad between mid-July and mid-October 2024.

The United Arab Emirates (UAE) emerged as the top destination for Nepali migrant workers during this period. In the month of mid-July to mid-August, as many as 59,575 Nepalis left for foreign work, with 17,541 heading to the UAE.

Similarly, in mid-August to mid-September, as many as 18,605 of 57,493 migrants chose the UAE, and in mid-September to mid-October, a total of 17,724 of 53,525 workers went there.

FMDBL Q1 net profit falls 38.68 percent

First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) posted a 38.68 percent decline in net profit for the first quarter of fiscal year 2081/82, amounting to Rs. 3.11 crore.

Despite the drop in profits, the company reported a 12.06 percent increase in retained earnings, which rose to Rs. 13.38 crore, and a 5.84 percent growth in reserves and surplus, reaching Rs. 30.19 crore, signaling a stronger equity base.

Borrowings decreased by 13.17 percent, falling to Rs. 6.05 arba, while loans and advances to microfinance institutions (MFIs) and cooperatives dropped by 15.29 percent, totaling Rs. 6.27 billion.

The company’s net interest income also declined by 25.12 percent, standing at Rs. 6.01 crore, which contributed to the reduced operating and net profits.

Super Madi Hydropower reports 51 percent profit growth

Super Madi Hydropower Limited (SMHL) has reported strong financial performance for the first quarter of 2081/82, with notable growth in key areas.

The company’s reserves and surplus grew by 86.91 percent, reaching Rs. 30.05 crore, reflecting a solid financial position.

Investments in property, plant, and equipment increased by 11.33 percent, totaling Rs. 8.56 billion, highlighting the company’s commitment to long-term asset development.

Nepal attends WTM-2024 with focus on its adventurous tourism

Nepal participated in the World Travel Market (WTM) 2024 in London advocating the need of international cooperation for promoting the country’s tourism sector.

Nepal attended the three-day event, which concluded on November 7, under the leadership of the Nepal Tourism Board.

At the event, Nepal presented its potential as a premier travel destination for adventurous travel with rich cultural diversity, and commitment to sustainable tourism.

The WTM 2024 brought together 43,000 participants from 184 countries and featured 82 sessions.

Ministerial discussions on checking airfare rise

An inter-ministerial meeting was held on the issue of the rise in international airfare.

Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey today held discussions with Minister for Foreign Affairs Dr Arzu Rana Deuba and Minister for Labour and Employment Sharat Singh Bhandari.

Tourism Minister Pandey had a discussion with the Minister for Foreign Affairs, Minister for Labour and Employment, and the representatives of the Overseas Employment Promotion Organization on the issues including financial burdens to the labourers bound to overseas employment due to the rise in airfare.

(Prepared by Srija Khanal)

Publish Date : 09 November 2024 08:49 AM

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