KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Finance Ministry has reported a significant 65% increase in capital expenditure over the first three months of the current fiscal year compared to the previous year, indicative of a robust investment strategy aimed at bolstering infrastructure and economic growth under the new government.
Additionally, revenue collection rose by 13%, reflecting improved fiscal management.
Meanwhile, foreign exchange reserves reached a record high of Rs 2,152 billion, signaling economic stability and investor confidence, complemented by a 15% increase in remittances and a decrease in interest rates to 6.15%, which may stimulate borrowing.
In the commodities market, gold prices surged to a historic high of 164,400 rupees per tola, driven by strong demand and market volatility, while silver prices also rose.
This trend towards precious metals suggests investors are seeking safe-haven assets amid economic uncertainties.
On the corporate front, National Life Insurance Company Limited (NLICL) has listed 20,04,666.57 units of 4% bonus shares on NEPSE, expanding trading opportunities with a last traded price of Rs. 637.00.
Meanwhile, local infrastructure in the Makawanpur district will see temporary disruptions as the Kulekhani-Phakhel and Sisneri-Dakshinkali road sections close for three days to facilitate necessary repairs, with authorities encouraging the use of alternative routes to minimize travel disruption.
Capital expenditure increases by 65 percent in three months: Finance Ministry
The Finance Ministry has reported a 65 percent increase in capital expenditure in the first three months of the current fiscal year compared to the previous year, reflecting a strong investment strategy for infrastructure and economic growth under the new government. Revenue collection also grew by 13 percent, indicating improved fiscal management.
Foreign exchange reserves reached a record high of Rs 2,152 billion, signaling economic stability and investor confidence, while remittances rose by 15%. Additionally, the interest rate decreased to 6.15%, potentially encouraging borrowing and investment.
Gold prices soar to record high
Gold prices surged to an unprecedented level, hitting 164,400 rupees per tola, reflecting a significant increase of 2,000 rupees on Friday from the previous day’s price of 162,400 rupees per tola.
This record rise indicates strong demand and market volatility, likely influenced by factors such as global economic conditions, inflation concerns, and shifts in investor sentiment.
In addition to gold, silver prices have also experienced an upward trend, increasing by 30 rupees to reach 1,980 rupees per tola.
This simultaneous rise in both precious metals suggests a broader trend in the commodities market, where investors may be seeking safe-haven assets amid economic uncertainties.
National Life Insurance Company’s 4 percent bonus share listed in NEPSE
A total of 20,04,666.57 units of bonus shares from National Life Insurance Company Limited (NLICL) have been listed on NEPSE.
During its 36th Annual General Meeting held recently, the company approved a 4% bonus share distribution amounting to Rs. 20.04 crores, drawn from a paid-up capital of Rs. 5.01 billion.
These bonus shares are now available for trading on NEPSE, with NLICL currently having a Last Traded Price (LTP) of Rs. 637.00.
Roads to Kulekhani, Sisneri to remain closed for three days
The Kulekhani-Phakhel and Sisneri-Dakshinkali road sections in Makawanpur district have been closed for three days to facilitate repairs of hume pipes in Simkhola.
This closure necessitates alternative travel routes for drivers, specifically the Hetauda-Bhainse-Palung-Kathmandu and Hetauda-Thingan-Kathmandu routes. The proactive communication from local authorities aims to minimize disruption and ensure safe travel during the repair period.
(Prepared by Srija Khanal)
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