KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the first two months of fiscal year 2024/25, Nepal’s trade report indicates a troubling trend with a widening trade deficit of approximately 1.78%.
Imports increased by 1.08% to Rs. 26.2 trillion, while exports fell by 5.12% to Rs. 25.09 billion, despite strong performance in sectors like coffee, tea, and carpets.
Conversely, the IMF noted early signs of economic recovery during a recent visit, highlighting positive growth in imports and tax collections.
Meanwhile, gold prices surged to a new record high of Rs. 159,700 per tola. In infrastructure, the Energy Minister urged expedited construction of the Trishuli 3B sub-station to mitigate financial losses due to delays.
Additionally, the Department of Food Technology and Quality Control has intensified market monitoring to ensure quality and fair pricing ahead of the festive season.
First two months of FY 2024/025 witnesses trade deficit
Nepal’s trade report reveals troubling trends in the economy in the first two months of the fiscal year 2024/25.
The trade deficit, defined as the gap between imports and exports, has widened by approximately 1.78 percent.
During this time, imports rose by about 1.08 percent, totaling around Rs. 26.2 trillion, compared to Rs. 25.9 trillion in the same period last year.
In contrast, exports amounted to Rs. 25.09 billion through mid-August-mid-September, primarily driven by sectors such as coffee, tea and spices, carpets, and man-made staple fibers, which saw the highest export volumes.
However, exports have fallen by approximately 5.12 percent compared to last year’s Rs. 26.44 billion.
IMF sees signs of recovery in Nepal’s economy
KATHMANDU: Nepal’s economy is showing early signs of recovery, according to an official from the International Monetary Fund (IMF) at the conclusion of a recent staff visit to the country.
Led by Sarwat Jahan, the IMF team visited Kathmandu from September 11 to 22, 2024, to discuss recent macroeconomic developments and the implementation of the Extended Credit Facility (ECF)-supported program.
Jahan noted that incoming high-frequency data indicates positive growth in imports, improved tax collections, and an increase in public investment.
Gold price surges to new all-time highs
The price of gold has once again hit an all-time high, setting a new record.
After consistently reaching record levels throughout September, gold prices have continued to rise daily in the last week of September.
On Sunday and Monday, gold traded at notably high rates, with an increase of Rs 500 per tola since Monday.
According to the Nepal Gold and Silver Traders Federation, the price of gold today stands at Rs 159,700 per tola, up from Rs 159,200 yesterday.
Energy Minister directs for prompt construction of Trishuli 3B sub-station
Minister for Energy, Water Resources and Irrigation, Dipak Khadka, has directed the bodies concerned to complete the construction activities of Trishuli 3B Hub 220/132/33 kV sub-station and transmission line soon.
Carrying out onsite visit of the substation today, Minister Khadka urged the bodies concerned to complete the construction activities soon by resolving problems surfaced in course of expansion of the transmission line even by recruiting more human resources as the State have to bear a huge loss every day following the delay in the activities of expansion of the transmission line.
Market monitoring intensifies ahead of festival season
With the festive season approaching and markets thriving, the Department of Food Technology and Quality Control (DFTQC) has ramped up its market monitoring efforts to ensure that goods sold are of high quality and fairly priced.
Three monitoring teams have been mobilized by the Department in accordance with the Food Purity and Quality Act, 2081.
On Monday, the inspection team visited several locations, including Gautam Sweets at New Road, Swastik Sweets and Snacks at Indrachwok, and Corner Fresh Gundpak at New Road, as reported by spokesperson Mohan Krishna Maharjan.
(Prepared by Srija Khanal)
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