KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the most recent financial updates from Nepal, gold prices saw a substantial increase, rising by Rs 1,900 per tola to reach Rs 144,700 for fine gold and Rs 144,000 for standard gold. This surge marked a significant jump from Thursday’s rates highlighting rapid appreciation in a short period.
Meanwhile, Nepal’s Inland Revenue Department reported an 11.30% increase in revenue collection, totaling Rs 41.19 billion by mid-June of the current fiscal year, and Rasuwa Customs collected Rs 585.5 million in fines for duty evasion attempts. Additionally, Nepal’s sovereign debt surpassed Rs 2400 billion by mid-June 2024, showing an increase of Rs 101 billion over the past 11 months, with a composition of 49.68% internal debt and 50.32% external debt.
Nepal’s sovereign debt exceeds Rs 2400 billion
As of mid-June 2024, Nepal’s sovereign debt has exceeded Rs 2400 billion. This total includes Rs 1192.48 billion in internal debt and Rs 1207.86 billion in external debt. Compared to mid-July of the previous year, when the debt was Rs 2299.35 billion, an additional Rs 101 billion has been added during the current fiscal year (2023/24).
Of the total debt, 49.68% is from internal sources and 50.32% from external sources. Multilateral lenders account for Rs 1071 billion of the external debt, while bilateral lenders account for Rs 136.74 billion.
The largest component of the internal debt is development bonds, totaling over Rs 764.94 billion, followed by Treasury Bills at Rs 412.69 billion. During the current fiscal year, the government aimed to raise Rs 452.75 billion in loans, achieving 67.96% of this target as of mid-May, with Rs 145 billion yet to be collected.
Regarding debt payments, Rs 225.17 billion was allocated for both principal and interest payments. As of the given period, Rs 197.32 billion has been paid towards the principal and Rs 31.52 billion towards interest.
Gold prices surge by Rs 1,900 per tola
In a significant surge, the price of gold in Nepal’s market escalated by Rs 1,900 per tola on Friday, reaching Rs 144,700 for fine gold and Rs 144,000 for standard gold, as reported by the Federation of Nepal Gold and Silver Dealers’ Association.
This marked a sharp increase compared to Thursday’s figures of Rs 142,800 and Rs 141,500 per tola respectively, highlighting a rapid appreciation in gold prices within a short timeframe.
Simultaneously, silver was priced at Rs 1,865 per tola on that day. These daily adjustments reflected the Federation’s practice of aligning domestic prices with global market trends. The spike in gold prices likely reflected international market dynamics, such as fluctuations in global demand, geopolitical tensions, and economic uncertainties, all of which influence commodity prices worldwide.
IRD reports 11.30% revenue increase
The Inland Revenue Department (IRD) reported a notable increase in revenue collection in recent months. By June 14 of the current fiscal year, the IRD collected Rs 41.19 billion, reflecting an 11.30% rise from Rs 37 billion collected during the same period last fiscal year.
Over the past 11 months leading up to June 14, 2024, total revenue collection reached Rs 448 billion, marking a 9.64% increase compared to the previous fiscal year’s Rs 408 billion.
Director General Shiva Lal Tiwari highlighted income tax contributing Rs 232 billion (including rent and interest), VAT (internal) contributing Rs 112 billion, and excise duty contributing Rs 95 billion. An additional Rs 8 billion was collected from health services, education, and other sectors. As of June 14, revenue collection has achieved 78.5% of the fiscal year’s target, with ongoing efforts to meet the full target by July 15.
Rasuwa Customs collects Rs 585.5 million in fines from duty evasion attempts
The Rasuwa customs office reported collecting Rs 585.5 million in fines from traders who attempted to avoid customs duties by underreporting imported goods from China.
Chief Customs Officer Ram Prasad Pathak disclosed that this amount was amassed over the course of the last 11 months of the current fiscal year. He further noted that imports from China amounted to Rs 59.787 billion, with exports totaling Rs 1.847 billion through the Rasuwa customs office in Fiscal Year 2023/24.
Officer Pathak emphasized a substantial rise in revenue collection, surpassing expectations by 165 percent as the customs office garnered Rs 19.172 billion in revenue during this period. This underscores robust enforcement measures against duty evasion and significant economic activity at the Rasuwa border point.
(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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