KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Wednesday, NEPSE experienced a significant decline of 27.32 points, closing at 2,536.11, down 1.06% from the previous day after a recent 6-day surge.
Despite opening at 2,573.23 and briefly touching 2,600.41, the index failed to maintain its high, reflecting volatile trading with 311 scrips and 188,865 transactions totaling Rs. 16.20 billion.
Meanwhile, gold prices surged by Rs 1,100 per tola in the domestic market, with fine gold reaching Rs 147,400 and standard gold at Rs 146,700 per tola, highlighting dynamic market conditions.
Customs revenue for FY 2023/24 totaled Rs 420.16 billion, falling short of the Rs 627.75 billion target due to economic slowdown impacts, despite a year-over-year increase.
India increased its grant to Nepal to INR 7 billion for FY 2024/25, reflecting growing bilateral financial commitments.
Additionally, Nepal proposed international standards for Chhurpi to meet rising global demand, emphasizing quality and safety for export commodities.
NEPSE fell 27.32 points to close at 2,536.11, down 1.06% on Wednesday from the previous day, following a 6-day surge.
On Tuesday, it gained 75.33 points. The index opened at 2,573.23 and fluctuated between 2,513.43 and 2,600.41 before settling.
Despite attempts to surpass 2,600, it closed below. Trading involved 311 scrips in 188,865 transactions, with 40,747,226 shares traded, totaling Rs. 16.20 billion.
Market capitalization was Rs. 40.24 trillion, with a float of Rs. 13.83 trillion.
Gold prices surge by Rs 1,100 per tola in domestic market
The domestic price of gold on Wednesday surged by Rs 1,100 per tola, marking a significant increase in a single day.
According to the Nepal Gold and Silver Dealers’ Association, fine gold was priced at Rs 147,400 per tola, while standard gold was trading slightly lower at Rs 146,700 per tola.
This uptick followed Tuesday’s rate of Rs 146,300 per tola for fine gold, indicating a notable rise in a short span.
This price movement reflected dynamic market conditions influenced by global trends and local demand-supply dynamics, underscoring the volatility and sensitivity of precious metal prices in the economic landscape at that time.
Customs revenue falls short of target despite year-over-year increase
Customs revenue accounted for approximately 40% of the government’s total revenue in FY 2023/24, totaling Rs 420.16 billion.
Despite this, the amount collected fell short of the target by Rs 207.59 billion, reaching only 66.93% of the expected Rs 627.75 billion.
However, the customs revenue showed a 7.54% increase compared to the previous fiscal year when Rs 390.70 billion was collected.
Economic slowdown was cited as the primary reason for missing revenue targets, affecting overall revenue collection and customs revenue, which constitutes a significant portion of the country’s financial resources.
India increases grant to Nepal to INR 7 billion for FY 2024/25
India has announced a grant of INR 7 billion for Nepal in the current fiscal year, which represents an increase of more than INR 500 million compared to the previous fiscal year.
The announcement was made as part of India’s FY 2024/25 budget unveiled by Finance Minister Nirmala Sitharaman following the formation of a new coalition government led by Prime Minister Narendra Modi.
In the previous fiscal year, India initially announced a grant of INR 5.50 billion (Rs 8.80 billion) for Nepal, which was later revised to INR 6.50 billion (Rs 10.40 billion).
Nepal proposes international standards for chhurpi amid rising export demand
Nepal’s quality regulator has proposed new standards for Chhurpi, a popular fermented hard cheese, to align with international norms amid increasing global demand.
Known for its protein-rich content and chewy texture, Chhurpi is a traditional delicacy in the highlands of Nepal, eastern India, and Bhutan, gaining popularity among American and Canadian pet owners.
The Department of Food Technology and Quality Control has forwarded the sanitary and phytosanitary details to ensure safety, with the draft sent to the World Trade Organisation for notification.
Once approved, these standards will also apply to dog chews, another emerging export from Nepal, emphasizing quality and safety in response to rising international demand.
(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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