KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
16th plan estimated to cost Rs 11.1 trillion
The Nepal Planning Commission (NPC) announced that the projected expense for executing the 16th Plan stands at roughly Rs 11.1 trillion.
The plan stresses private sector partnerships for funding highlighting the focus on addressing structural obstacles to boost production, productivity, and competitiveness.
Dr. Min Bahadur Shrestha, NPC’s Vice Chairman, gave the plan’s details and the endorsed cost estimate and guaranteed that acquiring the necessary investment for implementation wouldn’t face any obstacles.
Similarly, NPC Spokesman Yamlal Bhusal emphasized that surpassing Rs 11.1 trillion would be necessary to achieve the 16th Plan’s objectives. He stressed the importance of strengthening ties with the private sector to ensure financial backing for the plan.
He highlighted that a primary approach of the 16th Plan is to tackle structural barriers in various developmental facets, aiming to enhance production, productivity, and competitiveness.
NEPSE dips 9.54 points, closes at 2,017.97 on Wednesday
The Nepal Stock Exchange (NEPSE) saw a decline of 0.47%, marking a loss of 9.54 points, ending the trading day, Wednesday, at 2,017.97 points. This follows a previous session’s gain of 28.62 points.
Throughout the day, starting at 2,030.87, the index fluctuated, reaching a high of 2,048.29 and a low of 2,012.56. Trading was active with 315 stocks exchanged in 55,862 transactions, totaling 8,490,722 shares traded.
The turnover reached Rs. 3.70 Arba. Market capitalization was recorded at Rs. 31.99 Kharba, with a float market capitalization of Rs. 10.83 Kharba.
Petrol to cost Rs 171 per liter from today
The Nepal Oil Corporation (NOC) has announced a reduction in petroleum prices, effective from today. Following a meeting of the NOC Board of Directors, it was decided that the price of petrol would be slashed by Rs 7 per liter, with diesel and kerosene seeing a reduction of Rs 5 per liter.
PM Dahal vows support for innovation and rntrepreneurship
Prime Minister Pushpa Kamal Dahal ‘Prachanda,’ has affirmed the government’s dedication to fostering innovation and entrepreneurship while streamlining the investment process.
Speaking at the inauguration of the ‘Nepal-EU Business Forum’ commemorating the 50th anniversary of Nepal-EU diplomatic relations, Prime Minister Dahal emphasized the government’s commitment to creating a conducive environment for business.
He underscored that Nepal’s strategy for building a robust economic framework fosters international collaboration and contributes to economic growth. Highlighting the significant participation of over 50 countries in Nepal’s recent investment summit, the PM conveyed a message of international interest and enthusiasm for investing in Nepal.
Gold prices surge by Rs 1,000 per tola
The domestic gold market on Wednesday witnessed a notable increase, with gold prices rising by Rs 1,000 per tola.
According to the Nepal Gold and Silver Dealers’ Association, fine gold is now priced at Rs 138,400 per tola, while standard gold is traded at Rs 137,750 per tola.
This marks an increase from Tuesday’s prices, which stood at Rs 137,400 for fine gold and Rs 136,750 for standard gold. Additionally, the price of silver also saw a rise of Rs 5, reaching Rs 1,745 per tola.
This upward trend suggests potential shifts in market demand and economic factors influencing precious metal prices.
Nepal confronts immediate climate crisis
The National Climate Change Survey of 2022 in Nepal has uncovered substantial economic repercussions, particularly impacting agriculture, water resources, and biodiversity.
Over a five-year period, economic losses have amounted to Rs415.44 billion, prompting an urgent call for intervention. While there remains a limited understanding of climate change among the populace, farmers are adapting by modifying cropping patterns.
However, access to early warning systems, especially in higher-altitude regions, remains deficient. Nationwide, concerns persist regarding drying water sources and diminished availability, alongside the ongoing impact of natural disasters like droughts, floods, and storms on households.
Nepal’s ambitious energy objectives highlight the critical need for climate resilience strategies.
Tamor Corridor Road Project warns construction firms over project delays
Five construction companies involved in the Tamor Corridor Road Project have received warnings for causing delays in road and bridge construction.
Gauri Parbati-Pratishta JV, Contech Pvt Ltd, and Sapna-Yakthumhang JV, among others, are responsible for four stalled projects. Despite previous warnings, these firms have not made satisfactory progress.
The project management has requested explanations for the delays within seven days, with the threat of contract termination looming if they fail to comply.
This action underscores the project’s commitment to ensuring timely completion of infrastructure projects and holding contractors accountable for their performance.
Govt reveals Five-Year Economic Growth Plan
The government unveiled its 16th five-year development plan, setting a bold target of achieving 7.3% economic growth by fiscal year 2085/86. Presented by the National Planning Commission, the plan aims to raise the Per Capita Income (PCI) to $2,351 from the current $1,456 within the next five years.
It also outlines ambitious objectives such as attaining an 85% literacy rate, maintaining a 5% unemployment rate, and ensuring universal access to electricity and the internet.
These targets reflect a strategic initiative to expedite Nepal’s socio-economic advancement in the foreseeable future.
The plan signifies the government’s commitment to driving economic growth and addressing key socio-economic challenges. The target of achieving a 7.3% economic growth rate by fiscal year 2085/86 demonstrates a proactive approach towards stimulating the country’s economy.
(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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