Thursday, October 10th, 2024

Economic Digest: Nepal’s Business News in a Snap


22 August 2024  

Time taken to read : 6 Minute


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KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

On Wednesday, the Nepal Stock Exchange (NEPSE) ended with a slight gain of 2.11 points, reaching 2,968.44, after fluctuating throughout the day.

The market experienced a drop in trading volume to Rs 18.90 billion from Rs 28.83 billion, with 99 companies gaining and 140 losing. Key sectors such as finance and development banks saw gains, while non-life insurance indices fell.

Meanwhile, recent reports show only 25% of the previous year’s private sector budget plans were fully executed.

Prime Minister KP Oli advocated for low-capital industries and youth entrepreneurship to enhance domestic production.

Additionally, gold prices hit a record high in Nepal, and the FNCCI launched a Rs 10 billion investment fund to support start-up innovation.

NEPSE closes slightly higher after fluctuating trades

On Wednesday, the Nepal Stock Exchange (NEPSE) saw a modest increase of 2.11 points, closing at 2,968.44.

After a two-day break, the market opened at 2,966.33, peaked at 3,002.74, and then fell to 2,944.26 before recovering to end the day.

The sensitive index for ‘A’ class companies rose by 1.25 points. Trading volume dropped to Rs 18.90 billion from Rs 28.83 billion on Sunday.

Out of 239 companies, 99 gained and 140 lost. Key gainers included finance, development banks, and investment sectors, with the finance index rising the most by 186.89 points.

The non-life insurance index fell by 98.98 points. Himalayan Reinsurance Limited led in turnover with Rs 660.23 million, while Karnali Development Bank saw the largest losses.

Only 25% of private sector budget plans fully implemented

A new report shows that only 25% of the private sector plans from last year’s budget were fully implemented.

The ‘Budget Watch’ report by the Confederation of Nepalese Industries (CNI) and the Society of Economic Journalists of Nepal (SEJON) revealed that, out of 73 points related to the private sector in the fiscal year 2023/24 budget, 18 were fully enacted, 51 partially, and 4 not at all.

Chief Secretary Leela Devi Gadtaula emphasized the need for ministries and agencies to improve budget execution and highlighted new initiatives to be prioritized in the next 100 days.

CNI President Rajesh Kumar Agrawal acknowledged some progress but noted that overall implementation remains poor, largely due to incomplete legislation and procedural guidelines.

PM Oli advocates for low-capital industries and enhanced youth entrepreneurship

Prime Minister KP Oli has called for the growth of low-capital industries to boost domestic production and employment.

Speaking at the Start-Up Nation 2030 program, he urged that youth and women leverage innovation to create local job opportunities, reduce reliance on foreign work, and replace imports.

Oli stressed the need for banks to base loans on project feasibility rather than collateral and affirmed the government’s support for the cooperative sector despite some fraudulent issues.

He highlighted the importance of fostering nationwide entrepreneurship through technology, skills, and capital to achieve sustainable development and national prosperity.

Gold prices soar to record high in Nepal amid rising silver costs

On Wednesday, gold prices in Nepal surged to an unprecedented Rs 153,000 per tola, marking a significant increase of Rs 800 from the previous day and surpassing the prior high of Rs 152,600 set on Sunday.

This escalation follows a steady rise in recent days, with prices at Rs 152,200 on Tuesday.

Concurrently, silver prices have also climbed to Rs 1,835 per tola, up by Rs 25.

This ongoing upward trend in precious metal prices highlights growing market instability and inflationary pressures, reflecting broader economic uncertainties and potentially exacerbating financial strain on consumers.

FNCCI launches Rs 10 billion investment fund to boost start-up innovation

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has launched a new investment initiative to boost start-up entrepreneurship.

At the ‘Startup Nation 2030’ event, FNCCI President Chandra Prasad Dhakal announced the creation of an autonomous investment company with Rs 10 billion in capital to foster innovation.

Dhakal emphasized the importance of both domestic and foreign investment for national economic growth and proposed setting up an Incubation Center and Innovation Center for youth.

The FNCCI is also collaborating with the Sudurpaschim Province Government and the Kailali Chamber of Commerce to establish an Incubation Center.

Foreign currency exchange rates

The Nepal Rastra Bank has announced higher exchange rates for most foreign currencies today. The US dollar is now priced at NPR 133.98 for buying and NPR 134.58 for selling, up from NPR 133.78 and NPR 134.38 yesterday.

The European euro, British pound, Australian dollar, Kuwaiti dinar, and Bahraini dinar have also increased in value, with respective buying and selling rates for each currency being NPR 148.91 and NPR 149.58, NPR 174.60 and NPR 175.38, NPR 90.29 and NPR 90.69, NPR 438.32 and NPR 440.28, and NPR 355.53 and NPR 357.12.

(Prepared by Srija Khanal)

Publish Date : 22 August 2024 08:28 AM

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