KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s handicraft exports exceed Rs 3.26 billion, with felt items leading. NEPSE sees a slight decline but high turnover. Gold prices remain stable. Bangladesh approves 40 MW electricity import from Nepal, signaling further energy cooperation and investment plans.
Nepal exports handicrafts worth Rs 3.26 billion in past 10 months
Over the past ten and a half months, Nepal has exported handicraft items worth more than Rs 3.26 billion.
According to the Federation of Handicraft Associations of Nepal (FHAN), felt items constitute the highest portion of these exports, as reported by Federation Director General Uttam Prasad Devkota to RSS.
As of May 28 (Jeth 15) in the current fiscal year, which began on July 17, 2023, Nepal has exported felt handicrafts valued at over Rs 1.28 billion.
Additionally, Nepal exports a variety of other handicrafts including products made from Allo (Himalayan nettle), bamboo, pote (glass beads), animal bones and horns, ceramic, Dhaka, metal, garments, paper, silk, silver, wood, wool, stone, plants, and Pashmina.
These items are supplied to various countries such as India, China, the US, Germany, Denmark, the Netherlands, Britain, Australia, and Singapore.
NEPSE decreases by 9 points on Thursday; records turnover of 6.5 billion
The Nepal Stock Exchange (NEPSE) witnessed a decrease in the last trading session of the week. Despite the decline, business activity surged, with NEPSE decreasing by 9.32 points on Thursday while the turnover reached approximately 6.5 billion.
NEPSE closed at 2112.29 points, down by 0.43 percent. On Thursday, a total of 1,42,94,712 shares worth 6,044,33,29,000 rupees were traded 77,400 times, with share prices of 93 companies increasing, 148 decreasing, and 5 remaining stable.
Gold prices hold steady
The price of gold demonstrated stability on Thursday with both fine gold and standard gold maintaining their previous rates at Rs 141,600 and Rs 140,900 per tola respectively.
Conversely, silver experienced a slight decline, dropping by Rs 10 per tola to reach Rs 1,810 per tola, compared to its previous rate of Rs 1,820 per tola. This consistent pricing trend in gold suggested a level of market equilibrium, possibly influenced by factors such as global economic indicators, investor sentiment, and currency fluctuations.
However, the decline in silver prices may have reflected shifting demand dynamics or changes in industrial usage patterns, warranting further analysis of market fundamentals.
Citizen Investment Fund to invest in Khimti-2 Hydropower Project
People’s Energy Limited has appointed Citizen Investment Fund as the guarantor for share management for the public issue of securities. Executive director Parbat Kumar Karki and executive chairman Krishna Prasad Acharya signed the agreement.
The 48.8 MW Khimti-2 hydropower project in Ramechhap, representing 20% of the issued capital of 3.3 billion rupees, will allocate 6.6 million shares at Rs 100 per share to the public, project-affected residents, collective investment fund investors, and company employees.
Bangladesh to import 40 MW electricity from Nepal
Bangladesh’s cabinet approved the import of 40 MW of electricity from Nepal for five years.
The decision to import 40 MW of electricity from Nepal for five years, priced at 8.17 Bangladeshi Taka per unit and transmitted via the Indian grid, follows previous agreements and signals further energy cooperation, including investment in Nepal’s hydropower projects and plans to purchase up to 9,000 MW by 2040, with upcoming talks aiming to finalize trilateral energy trade agreements involving India.
The proposal by the Power Division involves importing hydroelectricity through a deal with Nepal Electricity Authority (NEA), NVVN of India, and Bangladesh Power Development Board (BPDB).
Bangladesh also eyes investment in Nepal’s Sunkoshi 3 Hydropower Project and plans to buy up to 9,000 MW from Nepal by 2040. Bilateral talks in June aim to finalize agreements for trilateral energy trade involving India.
Tourism fair in Bhrikutimandap highlighting 16 nations
The International Tourism Fair at Bhrikutimandap, to be held in Kathmandu will showcase tourism entrepreneurs from 16 countries to enhance Nepal’s global tourism sector.
Organized by Summit Event and Market with support from NTB and KMC, the fair will have over 150 stalls representing various countries including Nepal, India, Korea, Taiwan, etc.
The event is expected to promote sustainable tourism and cultural exchange, with stalls from all seven provinces of Nepal offering a diverse tourism perspective.
It aims to promote Nepal’s tourism sector globally by bringing together entrepreneurs from 16 nations.
The fair is expected to present an opportunity to boost Nepal’s tourism industry, enhance international partnerships, and promote cultural understanding.
Environmental planning begins for Dodhara-Chandani Dry Port construction
Environmental planning is underway for the construction of Dodhara-Chandani dry port in Kanchanpur, with support from the Indian government and collaboration with the Ministry of Forest and Environment and Shuklaphanta National Park to address environmental concerns.
The project, scheduled for the upcoming fiscal year, aims to minimize tree felling on a proposed 25-hectare area, pending cabinet approval for land acquisition, following a bilateral memorandum of understanding signed during Prime Minister Pushpa Kamal Dahal Prachanda’s visit to India last year.
Forex: Stability for USD and QAR
The exchange rates set by Nepal Rastra Bank (NRB) for Friday, June 14, show stability for the US dollar and the Qatari riyal, while the euro and the British pound have increased.
The stable US dollar reflects ongoing confidence amid global economic conditions, and the steady Qatari riyal indicates a consistent economic environment in Qatar.
These changes impact Nepal’s importers, exporters, and remittance receivers, highlighting the importance for businesses and policymakers to monitor global financial trends.
The selling rate of the British pound rose above 171 rupees, according to NRB. The buying rate of one US dollar is 133 rupees 38 paisa, and the selling rate is 133 rupees 98 paisa.
Similarly, the buying rate of one euro is 143 rupees 94 paisa, and the selling rate is 144 rupees 59 paisa. The buying rate of one British pound is 170 rupees 34 paisa, and the selling rate is 171 rupees 14 paisa.
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.Top of Form
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