KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is set to finalize an electricity trade agreement with Bangladesh and India, allowing Bangladesh to import 40 megawatts of electricity from Nepal through Indian transmission lines during the monsoon season.
Meanwhile, gold and silver prices in the domestic market have dipped due to global fluctuations, with gold falling to Rs 149,500 per tola.
Wizz Air is proposing budget flights from Bhairahawa to Abu Dhabi, seeking government support for operational costs, while the reopening of the Tinkar border has revitalized trade activities with China.
Additionally, Siddhartha Hospitality is preparing to launch its initial public offering (IPO) with Muktinath Capital as its issue manager.
Nepal set to finalize electricity trade agreement with Bangladesh and India
Nepal is poised for a significant energy sector development as ministers from Bangladesh and India are set to visit on July 28 to finalize an electricity trade agreement.
This agreement, following an initial signing between Nepal and Bangladesh, will facilitate Bangladesh’s import of electricity from Nepal through Indian transmission lines.
Under the terms, Nepal plans to annually export 40 megawatts of electricity to Bangladesh during the six-month monsoon season, with implementation expected this year pending final approval at the upcoming ministerial meeting. Kulman Ghising, executive director of Nepal Electricity Authority (NEA), has confirmed all necessary procedures are complete for commencing electricity exports, projecting earnings of 6.40 cents per unit exported and reinforcing Nepal’s role in regional energy trade initiatives.
Gold prices dip in domestic market; silver follows suit
The domestic market witnessed a decline in gold prices, with a drop of Rs 300 per tola on Thursday.
Fine gold, valued for its purity, now stands at Rs 149,500 per tola, down from Rs 149,800 per tola the previous day, while standard gold is priced at Rs 148,800 per tola.
This downward trend in prices reflects global market fluctuations influenced by economic indicators and investor sentiment.
Factors such as changes in international gold prices, local demand dynamics, and supply fluctuations likely contributed to these adjustments.
Concurrently, the price of silver also decreased by Rs 35 per tola, currently trading at Rs 1,860 per tola compared to Rs 1,895 per tola on the preceding day.
Wizz Air proposes budget flights from Bhairahawa to Abu Dhabi
Wizz Air, a UAE-based budget airline, plans to launch flights from Gautam Buddha International Airport (GBIA) in Bhairahawa to Abu Dhabi, offering tickets at approximately Rs 13,000 ($100 USD).
To secure regular operations on this route, Wizz Air seeks discounts on takeoff costs from the Nepalese government.
Despite the risks associated with starting operations at a new airport lacking established international traffic, Wizz Air remains committed and has proposed specific business conditions.
Additionally, airlines like Jazeera, Air Arabia, and Air Astana, represented by Society International Travel, have requested various concessions, including VAT exemptions and subsidies, to support flight operations from Bhairahawa.
Tinkar border reopening boosts Nepal-China trade activities
The opening of the Tinkar transit point on the Nepal-China border in Darchula district has spurred increased cross-border trade activities.
Chief District Officer Yagya Raj Joshi reported that 27 traders, 15 from Chhangru and 12 from Tinkar, departed for Tibet Autonomous Region in China for business purposes last Wednesday.
A total of 187 traders from the district have obtained permits from the District Administration Office to enter China through this transit point.
Closed since the COVID pandemic, the Tinkar border check post has recently resumed operations, facilitating trade in local produce and daily consumer goods between local traders and Chinese citizens.
Siddhartha Hospitality prepares IPO launch
Siddhartha International Hotel Limited, a prominent player in Nepal’s hospitality sector, is gearing up to debut its initial public offering (IPO). The company has enlisted Muktinath Capital as its issue manager.
Chintamani Neupane, chairman of Siddhartha Hospitality Group, and Kabindra Dhoj Joshi, CEO of Muktinath Capital, formalized the agreement. Siddhartha International Hotel Limited operates upscale properties including Siddhartha Boutique Hotel in Baudha and Siddhartha Vilasa in Bhairahawa.
US dollar witnesses modest increase
The Nepal Rastra Bank has provided its daily foreign currency exchange rates, noting a slight uptick in the US dollar’s value. On Friday, the buying rate for the US dollar has been fixed at 133.55 Nepalese rupees, while the selling rate is set at 134.15 Nepalese rupees.
In contrast, the Qatari riyal experienced a decrease in its buying rate but saw a slight increase in its selling rate. Furthermore, the exchange rates for the Euro and British Pound declined from the previous day’s levels.
Specifically, the Euro was being bought at 145.98 Nepalese rupees and sold at 146.64 Nepalese rupees, while the British Pound had a buying rate of 173.37 Nepalese rupees and a selling rate of 174.15 Nepalese rupees.
These adjustments reflect the current dynamics in the foreign exchange market as observed by the Nepal Rastra Bank.
(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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