KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Gold and silver prices on Friday fell in the Nepalese market, with gold dropping by 300 rupees per tola to 152,900 rupees and silver decreasing by 10 rupees per tola to 1,820 rupees, reflecting potential market shifts.
Meanwhile, the MCC Nepal Compact awarded a $12.36 million contract to build an 18-kilometer cross-border transmission line, enhancing regional energy trade.
Additionally, an agreement was reached to resolve delays in the Middle Bhotekoshi Hydropower Project’s transmission line construction, which will resume soon.
Meanwhile, Nepal’s public debt has risen to Rs 2.472 trillion due to increased borrowing and currency depreciation, with debt now comprising 43.34% of GDP and a significant rise in recent years raising sustainability concerns.
Gold and silver prices fall in Nepalese market on Friday
On Friday, the Nepalese market experienced a decline in the prices of both gold and silver.
According to the Federation of Nepal Gold and Silver Traders, gold prices dropped by 300 rupees per tola to 152,900 rupees, down from 153,200 rupees the previous day.
Similarly, silver prices decreased by 10 rupees per tola, bringing the current rate to 1,820 rupees.
This reduction in gold, which is relatively significant, may indicate shifts in market sentiment or external economic influences, potentially affecting investment strategies and market stability.
The smaller drop in silver prices suggests adjustments within that market, which could have implications for its industrial and investment applications.
MCC Nepal compact awards $12.36 million contract for key cross-border transmission line
The Millennium Challenge Corporation (MCC) Nepal Compact has signed a $12.36 million contract with Transrail Lighting Ltd to build an 18-kilometer cross-border electricity transmission line, linking the New Butwal Substation to the Nepal-India border.
This project, marking the one-year anniversary of the Compact’s entry into force, is a crucial part of the Electricity Transmission Project aimed at boosting regional energy trade.
Expected to complete in 21 months, this segment is pivotal for Nepal’s energy infrastructure and regional cooperation with India.
The contract signing, attended by key officials, highlights continued progress under the MCC Nepal Compact, with preparations underway for the remaining 297 kilometers of the transmission line.
Agreement reached to resolve transmission line delays for middle Bhotekoshi Hydropower Project
An agreement has been reached to resolve obstacles in the construction of a transmission line for the 102-megawatt Middle Bhotekoshi Hydropower Project in Sindhupalchowk.
The deal, finalized in a meeting with key stakeholders, will address the two kilometers of the transmission line obstructed by local residents for 14 months.
The project will now provide financial aid to Bahundanda Municipal Hospital and compensate affected landowners.
Construction is set to resume immediately, with completion expected within a month.
Once finished, the project’s power will be integrated into the national grid via the Bhotekoshi and Lamosanghu substations.
Nepal’s public debt rises to Rs 2.472 trillion amid increased borrowing and currency depreciation
Nepal’s public debt rose by Rs 41.11 billion last month, pushing the total debt to Rs 2.472 trillion.
The government borrowed Rs 43.59 billion between mid-July and mid-August, with Rs 40 billion sourced domestically and Rs 3.59 billion externally.
During this period, it repaid Rs 19.27 billion in principal and interest, including Rs 17 billion for domestic loans and Rs 2.27 billion for external ones.
However, the strengthening US dollar added Rs 16.79 billion to the debt burden. Public debt now represents 43.34% of GDP, with external loans comprising 22.24%.
The debt has doubled over the past five years, raising concerns about sustainability.
The government plans to borrow Rs 547 billion this fiscal year, with Rs 330 billion from domestic sources and Rs 217 billion externally.
(Prepared by Srija Khanal)
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