KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Friday, gold and silver prices in Nepal dropped, with gold falling by 500 rupees to 151,400 rupees per tola and silver decreasing by 15 rupees to 1,815 rupees per tola, reflecting minor market adjustments.
Meanwhile, the Nepali government has requested China to convert a substantial loan for the Pokhara Regional International Airport into a grant due to difficulties in repayment and rising public debt.
Additionally, a new government bill proposes harsher penalties for insider trading and market manipulation, including fines up to Rs 30 million and prison terms of up to three years, alongside measures to improve oversight of the Securities Board of Nepal.
Gold and silver prices decline
On Friday, gold and silver prices both experienced declines in the Nepali market, according to the Nepal Gold and Silver Traders Federation.
The price of gold had fallen by 500 rupees per tola to 151,400 rupees, down from 151,900 rupees per tola the previous day, reflecting a minor adjustment of 0.33%.
Similarly, silver had decreased by 15 rupees per tola, trading at 1,815 rupees per tola, which represented a 0.82% drop.
These reductions could have indicated shifting market dynamics, such as changes in global commodity markets, variations in currency value, or fluctuations in supply and demand.
The observed trends in precious metal prices warranted close observation to understand their implications for the broader economic context.
Nepal requests China to convert Pokhara Airport loan into grant amid debt concerns
Amid growing public debt, the Nepali government has requested China to convert a significant loan for the Pokhara Regional International Airport (PRIA) into a grant.
The loan, amounting to approximately Rs 25.88 billion (1,338.74 million Chinese Yuan) from China’s Exim Bank, was secured in 2016 and has an annual interest rate of 2.75%.
With the airport not yet operational and difficulties in repaying the loan, Finance Secretary Ram Prasad Ghimire has formally asked China to reconsider the loan terms.
This request was formally submitted to Yang Weiqun, Vice Chairman of the China International Development Cooperation Agency (CIDCA), by Dhani Ram Sharma of the Ministry of Finance.
Despite criticisms over high-interest rates compared to other donors, the Chinese government had initially linked the project to its Belt and Road Initiative (BRI). The Nepali government remains hopeful for a positive response while continuing to engage China on other cooperative projects under the BRI framework.
Govt proposes stiffer penalties for insider trading and market manipulation
The government has proposed severe penalties for insider trading in the secondary market, including fines up to Rs 30 million and jail terms of up to three years.
Finance Minister Bishnu Prasad Paudel introduced a bill to amend the Securities Act, which aims to enhance penalties for stock market manipulation.
The bill suggests increasing the cash fine significantly and extending the jail term from one year to three years for offenders.
It also addresses fake trading, price manipulation, and misinformation, proposing fines between Rs 500,000 and Rs 5 million, with up to three years in prison.
Additionally, the bill includes measures to prevent high-ranking Securities Board of Nepal (SEBON) officials from taking executive roles in regulated organizations and revises board composition and experience requirements.
(Prepared by Srija Khanal)
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