KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE Index rebounded on Thursday, rising by 78.17 points (2.99%) to close at 2,688.38, reversing a six-day decline.
Market activity included 318 companies and 103,462 transactions, with a turnover of Rs. 8.16 billion.
Meanwhile, gold prices fell slightly while silver prices increased, reflecting ongoing volatility in the precious metals market.
In Makawanpur, 610 industries closed due to economic challenges, though 701 new enterprises were registered.
For the upcoming festivals, discount stores will offer reduced prices on essentials starting September 23.
Additionally, the government’s performance for FY 2023/24 fell short, with only 42% of planned activities and 48.5% of milestones completed.
A new Inland Revenue Mobilization Strategy aims to overhaul the tax system and improve revenue collection through comprehensive reforms.
NEPSE recovers after six consecutive days of decline
The NEPSE Index on Thursday surged by 78.17 points, or 2.99%, ending the day at 2,688.38.
This increase followed a 22.73-point decline in the previous session.
The trading day started with the index at 2,625.46 points, dipped to a low of 2,604.83, and peaked at 2,688.52 during the session.
Market activity involved 318 companies through 103,462 transactions, resulting in a total turnover of Rs. 8.16 billion and 19,433,154 shares traded.
The market capitalization reached Rs. 42.74 billion, with the float market capitalization at Rs. 1.5 trillion.
Gold prices drop, silver rises amid global market trends
Gold and silver prices have shown notable volatility. On Thursday, gold decreased by 100 rupees, with the price falling to 153,300 rupees per tola from 153,400 rupees per tola the previous day.
Conversely, silver prices increased by 15 rupees, rising to 1,795 rupees per tola from 1,780 rupees per tola. In the international market, gold is currently valued at 2,518 USD per ounce, while silver is priced at 28.77 USD per ounce.
These local and global price changes reflect ongoing fluctuations in the precious metals market, influenced by varying investor sentiment and broader economic factors.
Makawanpur sees closure of 610 industries
In the fiscal year 2080/81 BS, Makawanpur saw the closure of 610 industries, attributed primarily to the economic recession and other challenges.
The Makawanpur Chamber of Commerce and Industry reported that 268 industries and 336 commercial firms were removed from the active list during this period.
This marks a significant increase compared to the previous fiscal year 2079/80 BS, when 283 firms were deregistered. Ram Prasad Bhusal, Office Chief, cited the economic slowdown, reduced bank lending, and insufficient capital as key factors contributing to the industry’s decline.
Despite these closures, 701 new enterprises were registered this fiscal year, comprising 366 industrial and 335 commercial entities, although this represents a decrease in new registrations compared to previous periods.
Discount price shops to open for festivals from September 23
Discount price shops will be operational from September 23 through Chhath, as directed by the Ministry of Industry, Commerce, and Supply.
Nepal Oil Corporation, Food Management and Trading Company, Salt Trading Corporation, and Dairy Development Corporation will set up these stores to offer reduced prices on essentials.
Food Management and Trading will have 61 locations across 42 districts with discounts such as Rs 5 off per kg on rice, pulses, and legumes, and Rs 7 off per kg on wheat flour and sugar.
Sunflower, soybean, and mustard oil will be reduced by Rs 7 per liter, and DDC ghee will see a Rs 10 per liter discount, with chicken and mutton at Rs 10 off per kg. Salt Trading will operate nine discount stores, including three mobile units in Kathmandu Valley and facilities in 22 additional districts.
Govt’s FY 2023/24 performance disappoints: Only 42% of activities and 48.5% of milestones completed
The progress on government-set activities and milestones for Fiscal Year (FY) 2023/24 has been underwhelming.
The Office of the Prime Minister and Council of Ministers (OPMCM) Annual Report reveals that only 42% of activities and 48.5% of milestones were completed.
Of 1,600 activities planned across 27 agencies, 41.7% were finished, while 40.5% are ongoing and 11% have not started.
The economic sector saw 167 out of 414 activities completed, infrastructure 109 out of 500, governance reforms 211 out of 392, and social sector 181 out of 293.
The Ministry of Federal Affairs and General Administration achieved the highest completion rate at 87%, whereas the Ministry of Urban Development had the lowest at 9%.
Issues such as inadequate human resources, changes in leadership, legal and procedural hurdles, land acquisition problems, and delays by contractors were cited as reasons for the incomplete milestones.
Government unveils Inland Revenue Mobilization Strategy 2024
The government has launched the Inland Revenue Mobilization Strategy, 2024, a medium-term plan covering Fiscal Year 2024/25 to 2028/29, aimed at overhauling the country’s tax system and administration.
Developed in line with the 16th periodic plan, the strategy seeks to balance revenue needs for economic and social development with private sector and taxpayer expectations.
Key objectives include boosting revenue from internal sources, encouraging voluntary compliance, improving risk management, and automating tax systems.
The strategy aims to increase the revenue-to-GDP ratio from 18.9% to 23.5% and the tax revenue-to-GDP ratio from 16.2% to 20.9% by FY 2028/29.
It also targets reducing the budget deficit-to-GDP ratio from 7.2% to 6.5%.
The strategy outlines a comprehensive reform blueprint to enhance tax policy, administration, and inter-governmental coordination.
(Prepared by Srija Khanal)
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