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Economic Digest: Nepal’s Business News in a Snap

25 June 2024  

Time taken to read : 5 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.

KMC unveils Rs 25.63 billion budget

Kathmandu Metropolitan City unveiled a budget of Rs 25.63 billion for the fiscal year 2081/82. Deputy Mayor Sunita Dangol presented the budget during the Municipal Assembly’s third meeting of the 15th session.

The budget includes Rs 3.80 billion allocated to 11 metropolitan pride projects. Compared to the current year, the upcoming fiscal year’s budget is Rs 170 million higher.

The city expects to generate Rs 24.20 billion from its consolidated fund and Rs 1.50 billion from land consolidation projects.

Key allocations from the budget include Rs 190 million for economic development programs, Rs 3.49 billion for office operations and administrative areas, Rs 14.81 billion for infrastructure development, Rs 3.81 billion for the social sector, and Rs 1.89 billion for governance and related areas.

Nepal’s trade deficit hits Rs 1.3 trillion amid import dependency

Nepal’s trade deficit has surged to Rs 1.3 trillion, driven by heavy dependence on foreign imports, including items that could be produced locally. Imports for the current fiscal year reached Rs 1.454 trillion, overshadowing exports at Rs 139.26 billion, resulting in a significant deficit.

Trade with India dominates, with imports at Rs 982.9 billion against exports of Rs 94.51 billion. Efforts to boost exports, like subsidies for cement, aim to support local industries but face challenges amid declining export numbers. Nepal seeks to diversify trade and enhance domestic production to address its economic imbalance.

Gold prices surge in domestic market, Silver also up on Monday

The domestic gold market saw significant price increases on Monday, with fine gold rising by Rs 300 per tola to reach Rs 142,300, up from Rs 142,000 the previous day.

Similarly, standard gold also climbed to Rs 141,600 per tola from Rs 141,300. Concurrently, silver prices experienced a slight uptick of Rs 5 per tola, settling at Rs 1,820 per tola.

These movements highlight ongoing fluctuations in precious metal prices, influenced by global economic conditions, market demand, and investor sentiment. The rise in gold and silver prices indicates cautious market behavior, potentially driven by factors such as economic uncertainties or shifts in investor preferences towards safe-haven assets.

Such developments underscore the inherent volatility in commodity markets, necessitating vigilance among stakeholders regarding potential impacts on broader economic stability and financial markets.

Banks to finance 66.3 MW Mid Kaligandaki Hydropower Project

Nabil Bank and five other commercial banks are set to finance the Mid Kaligandaki Hydropower Project, a 66.3 MW initiative by IME Group’s Hydro Support Pvt Ltd in Myagdi. The project, located at Annapurna Rural Municipality, will feature a dam near Annapurna-3 and a powerhouse near Annapurna-2.

Totaling Rs 9.12 billion, the investment, led by Nabil Bank, includes Everest Bank, Nepal Investment Mega Bank, Nepal Bank, Rastriya Banijya Bank, and Prabhu Bank. Construction, scheduled to start in 2024 and conclude in four years, will begin with infrastructure development led by Nabil Bank.

Nepalgunj Sub-Metropolitan City presents Rs 1.5 billion budget for FY 2081/82

The Nepalgunj Sub-Metropolitan City in Banke has unveiled a budget of Rs 1,503,886,000 for the fiscal year 2081-82 BS. The budget, presented by Deputy Mayor Kamaruddin Rai in the 15th Convention chaired by Mayor Prashant Bista, marks a reduction of approximately Rs 350 million compared to the current fiscal year.

The federal government is set to contribute Rs 612.4 million through conditional grants, complemented by Rs 10 million and Rs 15 million from complementary and special grants respectively.

Additionally, the provincial government plans to allocate Rs 20.4 million via conditional grants and Rs 14 million through complementary grants.

(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.

Publish Date : 25 June 2024 08:10 AM

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