KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the fiscal year 2080-81 BS (2023-24), Nepal’s government fell short of its revenue collection and expenditure targets, reporting 74.29% of the revenue target and 80.44% of the budget spent by mid-July.
The Nepal Stock Exchange surged by 70.18 points, closing at 2310.59, rebounding from Monday’s decline attributed to the appointment of Finance Minister Bishnu Poudel.
Trading saw 258.36 million shares valued at Rs 9.14 billion, with significant activity in companies like Sindhu Development Bank and Mandakini Hydro.
Meanwhile, gold prices rose sharply by Rs 900 per tola, contrasting with a slight dip in silver prices.
Severe floods in Sindhupalchowk damaged the Indrawati III Hydropower Project, disrupting local infrastructure and causing power outages.
NEPSE surges by 70 points
The Nepal Stock Exchange (NEPSE) witnessed a significant surge today, rising by 70.18 points to close at 2310.59 on Tuesday, marking the third trading day of the week.
This increase comes after a decline on Monday following the appointment of the new Finance Minister Bishnu Poudel.
A total of 258.36 million shares from 315 companies were traded in 119,011 transactions, resulting in a substantial turnover of Rs 9.14 billion on Tuesday.
Notably, Sindhu Development Bank, Barun Hydro, Green Development Bank, Ankhu Khola Hydropower, and Mandakini Hydro hit positive circuit limits today.
NEPSE reported that the share prices of all traded companies saw an increase. Among the transactions, Ngadi Group recorded the highest trading volume, with transactions worth Rs 217.7 million.
Revenue collection and expenditures fall short of targets
The government’s revenue collection and expenditures failed to meet their annual targets in the fiscal year 2080-81 BS (2023-24).
According to the Office of the Auditor General, revenue collection reached 74.29% of the target, while budget expenditures amounted to 80.44%.
The government had allocated a total budget of Rs 1,751 billion for the fiscal year, but by mid-July, expenditures amounted to Rs 1,408 billion.
Specifically, expenditures under the current heading were Rs 952 billion, which is 83.41% of the allocated budget of Rs 1,141 billion.
Expenditures under the capital heading totaled Rs 1,917 billion, 63.47% of the allocated budget of Rs 3,020 billion.
Gold prices surge yet again
The Nepal Gold and Silver Dealers’ Association said the price of gold surged by Rs 900 per tola on Tuesday.
Fine gold commanded Rs 147,800 per tola, while standard gold was priced at Rs 147,100 per tola, representing notable increases from Monday’s rates of Rs 146,900 and Rs 146,200 per tola respectively.
This sharp rise underscores dynamic shifts in investor sentiment and market conditions, potentially influenced by global economic factors such as inflationary pressures or geopolitical tensions impacting commodity prices.
Concurrently, silver prices dipped slightly by Rs 10 per tola, settling at Rs 1,875 per tola. The contrast in price movements between gold and silver highlights distinct market behaviors and investor preferences amidst economic uncertainties.
Notably, the fluctuation in these precious metals’ prices holds implications for broader economic indicators and consumer purchasing power, warranting continued monitoring of market dynamics and their potential ramifications.
Floods cause severe damage to Indrawati III hydropower project
Floods in Yangri and Indrawati rivers in Sindhupalchowk district have severely damaged the Indrawati III Hydropower Project.
The dam at Tipeni in Panchpokhari, part of the 7.5 MW project, filled with sand, causing destruction to the substation and powerhouse.
This disruption has led to power outages in electoral constituency No.2 and blocked the road from Pitekhola to Tipeni, posing challenges for local residents, especially patients needing access.
Finance Minister pledges support to private sector
Finance Minister Bishnu Poudel assured the private sector of government support, emphasizing the need for a stable political environment to tackle economic hurdles.
Addressing the Nepal Bankers’ Association, Poudel pledged proactive measures to address sector-specific issues and urged bankers to bolster market confidence.
He attributed economic slowdown partly to global factors but underscored political instability as the primary concern.
Minister Poudel affirmed the government’s commitment to reforms and promised policy interventions where necessary.
Foreign currency exchange rates
The Nepal Rastra Bank (NRB) announced adjusted foreign currency exchange rates, revealing decreases for the US dollar, Euro, and British pound on Wednesday.
Specifically, the buying rate for the US dollar was set at 133 rupees 44 paisa, with a selling rate of 134 rupees 04 paisa. The Euro’s buying rate stood at Rs 145.40 paisa, and its selling rate at Rs 146.05 paisa.
Meanwhile, the British pound saw a buying rate of 172 rupees 96 paisa and a selling rate of 173 rupees 74 paisa.
The buying rate for the Qatari riyal also decreased, settling at 36 rupees 59 paisa, while the selling rate remained stable at 36 rupees 76 paisa, as per the NRB’s latest update.
(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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