KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Govt to allocate budget for Cooperative Credit Protection Fund
The government is set to allocate a budget to establish a cooperative savings and credit protection fund. This initiative will be included in the budget for the next financial year, ensuring the protection of savings and investments in the cooperative sector through various programs and allocations.
The government’s allocation of 5 billion rupees to establish a cooperative savings and credit protection fund is a strategic move to enhance financial security within the cooperative sector.
By providing a substantial budget and backing it with the Cooperative Act, 2074, the initiative aims to protect savings and investments, reduce risks, and promote stability.
The proposed 60-40 investment model between the government and cooperatives fosters a collaborative approach, ensuring shared responsibility and better governance.
Additionally, the establishment of a cooperative loan information center and a loan recovery judiciary underscores the government’s commitment to transparency and effective financial management.
Gold prices witness decline
Nepal witnessed a decline in fine gold prices, along with a decrease in the price of Tejabi gold and silver in the last three days. The mention of the peak surge in gold prices on a specific date adds context to the price fluctuations.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the cost of fine gold dropped by Rs. 1,800 per tola.
On Thursday, fine gold was traded at Rs. 1,38,700 per tola, marking a decrease from its previous closing rate of Rs. 1,40,500 per tola.
Similarly, Tejabi gold was priced at Rs. 138,050 per tola, reflecting a Rs. 1,750 decrease from its closing price of Rs. 1,39,800 per tola on Wednesday.
The peak surge in fine gold prices occurred on May 20, 2024, when it reached an all-time high of Rs. 141,800 per tola.
Both domestic and international markets have experienced declines in prices. The latest update reveals the global gold rate at $2,359.30 per ounce, while silver demonstrates negative momentum internationally, with prices reaching $30.12 per ounce.
Bagmati leads, Karnali lags: Provincial GDP trends highlight economic disparities
Bagmati Province is projected to lead national GDP contribution, with Karnali Province expected to rank the lowest. According to the National Statistics Office’s Provincial GDP estimates for 2080/81 BS, Bagmati is anticipated to contribute 36.4% to the nation’s GDP, followed by Koshi at 15.8%, Lumbini at 14.3%, Madhesh at 13.1%, Gandaki at 9.1%, and Sudurpaschim at 7.1%.
Karnali Province is forecasted to have the smallest share at 4.3%. Minor fluctuations in GDP contribution have been noted compared to the previous fiscal year, with some provinces experiencing slight declines while others see modest increases.
The estimated GDP at consumer price for the current fiscal year is Rs 575 billion. The National Statistics Office has been actively monitoring economic activities since the adoption of federalism to facilitate evidence-based policy decisions and alleviate socioeconomic disparities.
Cancellation of NADA EV auto show for this year
The NADA EV Auto Show, originally planned for this year, has been called off.
NADA has proposed two dates for the event and conducted a survey among auto dealers.
According to Surendra Kumar Upetri, the general secretary of NADA, the decision to cancel the EV Auto Show was based on the survey’s findings, which indicated that hosting two consecutive auto shows would not be feasible.
The last NADA EV Show took place on September 22, 2022, and the NADA Auto Show was held in September 2023, where most EVs were showcased. This year’s NADA Auto Show is anticipated to be equally impressive, with a notable increase in new EV models expected.
Birgunj Metropolis witnesses surge in investment spending
During the initial ten months of the ongoing fiscal year, Birgunj Metropolitan City has utilized Rs 1.74 billion in expenditures. This accounts for 52.7 percent of the budget allocated for the fiscal year 2080/081 BS.
Notably, the capital expenditure has shown a considerable rise compared to the previous fiscal year. The total budget designated for the current fiscal year amounts to Rs 3.46 billion. Among the expenditures, Rs 1.34 billion has been utilized for current expenses, while Rs 392.2 million has been directed towards capital expenditure.
Although the revenue collection fell short of expectations, there has been a slight improvement in capital expenditure, indicating proactive investment measures.
Thai Airways resumes flights to Nepal
Following a hiatus of over two-and-a-half years, Thai Airways, Thailand’s premier flag carrier, has made the decision to reinstate its services in Nepal. The airline has resumed its route from Bangkok to Kathmandu via Calcutta, which was suspended due to the Coronavirus pandemic.
This reconnection provided by Thai Airways, linking Nepal with global destinations and facilitating inbound traffic to the Nepalese market, was interrupted in March 2022 amid the pandemic.
However, Thai Airways resumed operations on 29 October 2023, appointing Society International Travel Services as its General Sales Agent (GSA) for Nepal.
Since its inception in Nepal, Thai Airways has played a significant role in promoting cultural exchange and economic growth.
(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.
Comment