KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Majority of banks decrease interest rates
In the latest financial update, most commercial banks have announced revised interest rates for Jestha, with the Agricultural Development Bank (ADBL) being an exception.
This reveals a notable trend of decreasing interest rates among commercial banks for Jestha, except for the Agricultural Development Bank. Out of the twenty banks surveyed, nineteen have disclosed their rates, with nine maintaining rates from the previous month and eight opting for decreases.
NIC Asia Bank and Global IME Bank stand out for increasing their fixed deposit rates. NMB Bank and NIC Asia offer the highest FD rates for Jestha, with Everest Bank and Nabil Bank leading in rate reductions by 0.50% across individual and institutional categories.
Overall, this development indicates a strategic shift in financial positioning among banks.
NRB’s recommendations to shape fiscal policy for 2024/25 budget
Nepal Rastra Bank (NRB) has engaged in shaping the country’s fiscal policy for the upcoming year. NRB’s submission of 190 meticulously crafted recommendations to the Ministry of Finance underscores a thorough understanding of Nepal’s diverse economic landscape.
By drawing inputs from all seven provinces, the bank ensures that the suggestions cater to a wide array of regional needs. The recommendations, spanning key sectors such as tourism, agriculture, industry, and banking, reflect a comprehensive approach to addressing Nepal’s economic challenges.
NRB Governor Maha Prasad Adhikari has emphasized that the bank’s commitment to tackling provincial issues highlights a proactive stance towards governance. Through this collaborative effort, Nepal Rastra Bank aims to play a significant role in shaping the forthcoming budget, contributing to Nepal’s overall economic growth and development.
FM Pun engages with development partners on budget formulation
Finance Minister Barshaman Pun’s engagement with international development partners underscores Nepal’s proactive approach to budget formulation and economic development.
By convening representatives from key multilateral organizations and diplomatic missions, Minister Pun signals a commitment to leveraging external expertise and resources.
His emphasis on creating an attractive investment environment demonstrates an awareness of the importance of foreign direct investment and private sector involvement in driving economic growth.
Moreover, his acknowledgment of the limitations of internal revenue highlights a pragmatic understanding of Nepal’s fiscal landscape. Minister Pun’s articulation of Nepal’s strategic goals, including graduation to a developing nation and achievement of sustainable development objectives, indicates a clear vision for the country’s future trajectory.
PM’s vows to enhance production and job creation
Prime Minister Pushpa Kamal Dahal’s announcement of a special initiative to boost production and job creation via the upcoming fiscal year’s budget reflects a strategic approach to addressing key economic challenges in Nepal.
By emphasizing integrated projects targeting infrastructure development, rural economic empowerment, production expansion, and job creation, the government aims to stimulate economic growth and alleviate unemployment.
Moreover, his emphasis on evidence-based research and analysis highlights a commitment to effective project execution and fostering confidence in the government’s ability to deliver tangible results.
This initiative signals a proactive stance towards economic development and underscores the government’s determination to address pressing socio-economic issues facing the country.
NEPSE Index Surges 24.39 Points to Close at 1998.89 on Monday
The trading session on the Nepal Stock Exchange (NEPSE) on Monday witnessed a notable surge, with the NEPSE index climbing by 24.39 points, a robust 1.23% increase, closing at 1,998.89 points. This uptick follows a positive momentum from the previous session, where the index gained 8.26 points.
Throughout the trading day, the NEPSE index experienced fluctuations, ranging from an intraday high of 2,000.55 to a low of 1,970.54, reflecting the dynamic nature of market sentiment and investor activity.
Despite these fluctuations, trading activity remained vigorous, with 320 stocks exchanging hands in a total of 45,828 transactions. This highlights the market’s bullish sentiment towards these particular stocks, possibly driven by favorable company-specific news or broader sectoral trends.
Overall, the trading session reflects a positive market sentiment, characterized by notable gains in the NEPSE index and specific stocks, suggesting optimism among investors regarding the future trajectory of the Nepalese stock market.
Finance Minister Pun ensures tax rate stability in upcoming fiscal year
Finance Minister Barshaman Pun’s assertion of tax rate stability in the upcoming fiscal year underscores a commitment to economic stability and fairness.
By emphasizing clear justifications for any adjustments and a focus on national interest over partisan benefit, Pun aims to instill confidence in the government’s fiscal policies.
Moreover, his call for transparency and private sector involvement reflects a broader strategy for inclusive and sustainable economic growth aligned with democratic principles.
This approach signals a deliberate effort to balance economic stimulus with responsible governance, potentially fostering a conducive environment for investment and development in Nepal.
Gold prices dip by Rs 300 per tola
Gold price witnessed a reduction of Rs 300 per tola in the Nepali market on Monday. According to the Nepal Gold and Silver Dealers’ Association, fine gold was priced at Rs 138,100 per tola, whereas standard gold was traded at Rs 137,450 per tola.
This marked a decrease from Sunday’s prices, which were Rs 138,400 per tola for fine gold and Rs 137,750 per tola for standard gold. In contrast, the price of silver has remained steady at Rs 1,715 per tola. It’s important to note that a tola is approximately equivalent to 11.66 grams.
(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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