KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is grappling with significant development financing challenges due to rising public debt and low foreign direct investment (FDI), which hinder progress toward Sustainable Development Goals (SDGs), according to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.
He emphasized the need for innovative financing, better resource management, and increased private sector involvement to address these issues.
Additionally, Nepal faces fluctuating gold prices, with a recent decline following a record high, while silver prices remain stable.
The government is also focusing on enhancing operations at Gautam Buddha International Airport (GBIA) and Pokhara Regional International Airport (PRIA) through reduced fuel costs and incentives for airlines.
Meanwhile, Lamjung has seen a notable rise in cottage industries, with 218 new registrations and 412 renewals in the past year.
Nepal faces development financing challenges amid rising debt and low FDI
Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, addressed the challenges of development financing at UN-backed forum.
He highlighted Nepal’s low revenue collection and rising public debt as major barriers to achieving Sustainable Development Goals (SDGs).
Paudel stressed that shrinking investment due to high debt servicing and low foreign direct investment (FDI) hampers development efforts.
He called for innovative financing methods, better resource allocation, and increased private sector involvement.
Paudel also noted the urgent need for foreign capital and technology, emphasizing that Nepal aims to transition to a developing country by 2026.
Nepal’s gold prices drop after record-high
On Tuesday, gold prices in Nepal decreased by Rs 100 per tola to Rs 152,200, as reported by the Nepal Gold and Silver Traders Federation.
This decline followed a record high reached on Sunday, reflecting recent volatility in the gold market, which had been on an upward trajectory before this drop.
In contrast, silver prices remained unchanged at Rs 1,810 per tola, indicating a period of relative stability in the silver market amid the fluctuations in gold prices.
This stability in silver highlighted a divergence in trends between the two precious metals.
Govt launches action plan to boost operations at GBIA and PRIA
Nepal’s government is pushing to fully operationalize the Gautam Buddha International Airport (GBIA) and Pokhara Regional International Airport (PRIA) by introducing concessions for airlines and reducing aviation fuel costs.
The Cabinet’s recent action plan includes discounts on fuel and tickets until August 2026 to boost airport usage.
The Nepal Oil Corporation has cut fuel prices by $100 per kiloliter from August 17. Prime Minister KP Sharma Oli has called for measures to address operational issues and enhance air safety.
Thai AirAsia and Jazeera Airlines are set to resume flights at GBIA in September.
Lamjung sees 218 new cottage industries and 412 renewals in recent year
In Lamjung, 218 new cottage industries were registered from July 17, 2023, to July 15, 2024, as reported by the Tourism and Small Industries Development Office.
During the same period, 412 existing industries renewed their registrations. Of the new registrations, 176 were commercial enterprises, with a total of 552 commercial firms renewing their licenses.
This compares to 291 new cottage industries registered in the previous fiscal year 2023/24.
Securities Related (First Amendment) Bill, 2081 tabled in Parliament
The “Securities Related (First Amendment) Bill, 2081” was presented to Parliament, proposing substantial updates and new elements to the current Securities Act, 2063.
The bill seeks to modernize and expand the legal framework for securities in Nepal to better address evolving requirements and improve regulatory clarity.
A notable change is the inclusion of “central depository services” through the addition of clause (ga1) to Section 2 of the Securities Act, 2063.
This amendment defines the central depository service as an entity responsible for the electronic dematerialization of securities and the maintenance of a central record for organized institutions.
US dollar declines as Euro and Pound gain value
The Nepal Rastra Bank (NRB) has updated today’s foreign currency exchange rates, showing a continued decline in the value of the US dollar.
The buying rate for 1 US dollar is now 133.78 rupees, down from 133.90 rupees yesterday, while the selling rate is 134.38 rupees, compared to 134.50 rupees previously.
Conversely, the euro and British pound have appreciated, with the euro’s rates increasing to 148.19 rupees (buying) and 148.85 rupees (selling), and the pound’s rates rising to 173.85 rupees (buying) and 174.64 rupees (selling).
Other currencies like the Australian dollar, Kuwaiti dinar, and Bahraini dinar have also seen slight adjustments in their rates.
(Prepared by Srija Khanal)
Comment