KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Gold prices in Nepal have reached an all-time high of 156,300 rupees per tola, surpassing the previous record, while silver prices have also increased to 1,860 rupees per tola, reflecting a general rise in precious metal values.
Meanwhile, the Babai Irrigation Project is set to terminate its contract with Aman Construction due to significant delays, as the company has made minimal progress on the project.
In Ilam, regular flights have resumed at Sukilumba Airport after a monsoon-induced hiatus, providing crucial connectivity for travelers.
Entrepreneurs are pressing the government for more effective tourism promotion, criticizing the slow implementation of announced plans.
Additionally, the Nepal Electricity Authority is demanding Rs 6.7 billion in arrears from industries, intensifying an ongoing dispute over power charges.
Gold prices hit record high in Nepal, silver also sees notable increase
In a notable development in the Nepali market, gold prices have reached a historic high, surging by 3,000 rupees per tola on Friday to a record 156,300 rupees per tola, surpassing the previous peak of 153,400 rupees per tola.
This sharp increase highlights a significant milestone in gold pricing. Concurrently, silver prices have also risen, with a 65-rupee per tola increase bringing the current rate to 1,860 rupees per tola, according to the Nepal Gold and Silver Traders Federation.
The simultaneous rise in both gold and silver prices reflects a broader upward trend in precious metal values in Nepal.
Babai Irrigation Project moves to terminate contract with Aman Construction
The Babai Irrigation Project plans to terminate its contract with Aman Construction due to the company’s failure to advance work on key sections for over four years.
Despite signing the contract in 2020 to complete six sections, Aman Construction has made minimal progress, with only two sections partially finished and the rest untouched.
A notice issued on Wednesday demands an explanation from the company within 15 days to avoid termination. If no satisfactory response is provided, the contract will be formally ended.
Regular flights resume at Ilam’s Sukilumba Airport
Regular flights have resumed at Ilam’s Phalgunanda Sukilumba Airport after a three-and-a-half-month suspension due to the monsoon. Nepal Airlines is now operating weekly flights every Thursday with a 27-seater plane.
The resumption of flights comes as a boon for travelers heading to and from the region, especially with upcoming festivals like Dashain and Tihar.
The service will facilitate travel for residents of eastern Nepal’s hill districts and neighboring areas in India.
On the first day of resumed operations, six passengers flew from Kathmandu to Ilam, while eight traveled back.
Entrepreneurs demand action on tourism promotion
Entrepreneurs are urging the government to implement effective tourism promotion plans, expressing frustration over the lack of progress despite the formation of a new government two months ago.
Although Minister for Culture, Tourism, and Civil Aviation, Badri Pandey, announced plans for a new tourism policy and aviation fuel discounts for international airlines, stakeholders, including Binayak Shah from the Hotel Association Nepal (HAN), criticize the slow progress and lack of concrete action.
Shah emphasizes that mere announcements are insufficient and that practical steps are needed. Kumar Mani Thapaliya from the Nepal Association of Tour and Travel Agents (NATTA) underscores the importance of reforms in Nepal Airlines for tourism improvement.
Minister Pandey has acknowledged the need for a conducive investment environment and assures ongoing efforts to advance the tourism sector.
NEA demands Rs 6.7 billion in arrears from industries amid ongoing dispute
The Nepal Electricity Authority (NEA) has renewed its demand for industries to settle outstanding dues of approximately Rs 6.7 billion by October 24, following a directive from Prime Minister KP Sharma Oli to restore power supplies.
Despite resuming power on July 23, the NEA’s latest notice has intensified the ongoing dispute over Dedicated and Trunk Line charges, which has been unresolved for years and remains stalled in parliament.
Previous efforts to address the issue, including directives from the Lal Commission, have failed to resolve disputes between the NEA and industries over fair charges and billing practices.
The NEA’s recent reminders emphasize the urgency for payment and underline continued tensions in this longstanding issue.
(Prepared by Srija Khanal)
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