KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal has seen notable activities across various sectors. The country exported electricity worth Rs 12.72 billion to India in the first quarter of the current fiscal year, capitalizing on surplus power generated during the rainy season.
Meanwhile, Nepal’s public debt has increased by Rs 84 billion in the first four months of fiscal year 2081-82, now reaching over 44% of GDP, with both internal and external debt seeing significant rises.
Additionally, the stock market also experienced slight growth, with the Nepal Stock Exchange (NEPSE) rising by 9.09 points despite fluctuations in trading.
Similarly, the price of gold surged by Rs 900 per tola, continuing its upward trend from previous days, while silver saw a minor decline.
In the corporate sector, Suryodaya Womi Laghubitta announced a 7% dividend for FY 2080/81, which includes both bonus shares and a cash dividend, pending approval.
On the agricultural front, the Agriculture Development Directorate has earmarked Rs 15 million to promote commercial potato farming across the Gandaki province.
Meanwhile, Chhyangdi Hydropower Company has scheduled its 10th and 11th AGMs for December 20, 2024, to discuss and approve various financial matters, including reports for the past fiscal years.
These developments reflect a dynamic blend of energy exports, financial shifts, market activity, and agricultural progress in Nepal’s economy.
Nepal exports electricity worth Rs 12.72 billion to India
In the first quarter of the current fiscal year, Nepal supplied electricity worth Rs 12.72 billion to India.
According to the Nepal Electricity Authority (NEA), one billion 667 million and 892 thousand units of electricity, the surplus during the rainy season, was exported to India.
The export rate per unit was Rs 7.63. The NEA sells surplus power to Haryana and Bihar states of India through the Day Ahead and Real Time Market of Indian Energy Exchange (IEX) at a competitive rate under the bilateral mid-term electricity sale agreement.
Public debt increases by Rs 84 billion in three months
Around Rs 84 billion public debt has been added in the first four months of the current fiscal year 2081-82 BS (2024-25).
According to the Public Debt Management Office, Nepal’s total public debt has exceeded 44 percent of the Gross Domestic Product (GDP).
At the beginning of the current fiscal year, the size of public debt was Rs 2434 billion 90 million and it rose by Rs 83 billion 950 million till November 15 to reach Rs 2518 billion 50 million, the Office said in its report.
This constitutes 44.94 percent of the GDP. According to the Office, of the total public debt, the internal debt responsibility amounts to Rs 1252 billion 161.8 million while the external debt responsibility is 1265 billion 897.2 million.
On the basis of the GDP, the internal debt makes up 21.95 percent and the external debt makes up 22.19 percent.
NEPSE rises by 9.09 points
The Nepal Stock Exchange (NEPSE) on Wednesday saw a slight increase of 9.09 points (0.33%), ending at 2,711.75. This uptick follows a significant decline of 51.11 points in the previous trading session.
The market opened at 2,705.17 and experienced fluctuations throughout the day, reaching an intraday low of 2,683.79 and a high of 2,713.93.
The total turnover amounted to Rs. 7.09 billion, with 15,464,552 shares traded across 323 companies in 74,303 transactions.
Gold prices surge by Rs 900 per tola on Wednesday
The price of gold, which rose by Rs 2,000 per tola on Tuesday, has increased again today (Wednesday).
According to the Nepal Gold and Silver Dealers Federation, gold has gained Rs 900 per tola today, bringing the price to Rs 163,000.
Yesterday, gold had risen by Rs 2,000 per tola, Rs reaching 162,100.
Just last Monday, the price was Rs 160,100, meaning gold has increased by a total of Rs 2,900 over the past three days.
In contrast, the price of silver has decreased by 5 rupees per tola today. After reaching 1,955 rupees, silver has fallen to 1,950 rupees, according to the Federation.
Suryodaya Womi Laghubitta Proposes 7% Dividend for FY 2080/81
Suryodaya Womi Laghubitta has announced a 7 percent dividend for the fiscal year 2080/81, totaling Rs. 73 million.
During the 228th board meeting held on Mangsir 4, the directors decided to allocate the dividend based on a paid-up capital of Rs. 1.04 billion.
The proposed distribution includes 6% in bonus shares (valued at Rs. 62 million) and a 1 percent cash dividend (for tax purposes) amounting to Rs. 10.4 million. The dividend will be issued pending approval from the central bank and confirmation at the company’s upcoming AGM.
Rs 15 million appropriated for commercial potato farming
The Agriculture Development Directorate has appropriated Rs 15 million for promoting commercial potato farming. According to the Agriculture Knowledge Centre, potato will be cultivated commercially in 110 hectares of land in all seven municipalities of the district this year.
The Gandaki province government has implemented this programme since last year to attract farmers towards potato farming, and making the district self-sufficeint in potato production.
As informed, potato was cultivated on 152 hectares of land in the fiscal year 2080÷81 BS.
Chhyangdi Hydropower Company to hold 10th and 11th AGMs on Dec 20
Chhyangdi Hydropower Company Limited (CHL) has scheduled its 10th and 11th Annual General Meetings (AGMs) for December 20, 2024.
The meetings will be held at Agrawal Bhawan, Kamalpokhari, Kathmandu, starting at 9 AM.
During the AGMs, the company plans to discuss and approve the financial reports for the fiscal years 2079/80 and 2080/81, along with the auditor’s report, including profit and loss statements, financial reports, and cash flow statements.
The appointment of the auditor for the fiscal year 2081/82 will also be up for approval.
(Prepared by Srija Khanal)
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