KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The provided text highlights various economic and developmental updates in Nepal, reflecting both progress and challenges.
The approval of an additional $50 million by the Millennium Challenge Corporation (MCC) demonstrates continued international commitment to enhancing Nepal’s infrastructure, particularly in strengthening its electricity grid, signaling long-term economic growth.
Meanwhile, the domestic market faces fluctuations, as evidenced by the rise in gold prices and the sharp decline in the Nepal Stock Exchange (NEPSE) due to the delisting of Karnali Bikas Bank, which has triggered investor panic.
However, there is a positive trend in tourism, with a notable increase in the number of foreign tourists arriving through Kakadvitta, signaling a recovery post-pandemic.
Additionally, the surge in paddy imports, reflecting a significant rise in trade and revenue collection, points to growing economic activity.
These mixed developments illustrate the complexities of Nepal’s economic landscape, with both challenges and opportunities emerging in various sectors.
MCC approves additional 50 millions US dollars for Nepal
The Millennium Challenge Corporation (MCC) Board of Directors has approved $50 million of additional funding for the Nepal Compact.
According to the MCC Board of Directors, the latest announcement underscores the shared commitment between MCC and Nepal to advancing Nepal’s development priorities through transformative, high-quality infrastructure projects.
“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford
Gold price ups Rs 2,000 per tola
The price of gold increased by Rs 2,000 per tola (11.66 grams) in the domestic market on Friday.
The price of hallmark gold was determined at Rs 153,000 per tola. It was traded at Rs 151,000 per tola on Thursday.
Similarly, the price of silver increased by Rs 20 per tola. The price of silver was fixed at Rs 1,810 per tola.
NEPSE plunges this week amid Karnali Bank delisting and market panic
The Nepal Stock Exchange (NEPSE) witnessed a significant decline of 44 points the past week, with market sentiment rattled by regulatory actions against Karnali Bikas Bank.
The drop occurred over four trading days, as concerns over the delisting of the bank spread panic among investors.
On December 25, Nepal Rastra Bank declared Karnali Bikas Bank as a problematic institution, taking over its management.
A day later, the Securities Board of Nepal suspended the bank’s trading on NEPSE until further notice, citing investor protection concerns.
These actions triggered widespread anxiety, particularly within the development and finance sectors.
Tourists’ arrival from Kakadvitta border ups
The number of tourists from third countries entering Nepal from Kakadvitta, land route has increased.
According to Indrakumar Rajbanshi, Information Officer of Immigration Office Kakadvitta, 6,111 tourists from third countries have entered Nepal in 2024.
In 2023, a total of 3,125 tourists from third countries came to Nepal through the border point.
Compared to the previous year, the arrival of tourists in 2024 has increased by 2,976 people.
After the Corona pandemic, India did not allow tourists from third countries to enter Nepal through Panitanki, the Indian border crossing of Kakadvitta, for no apparent reason.
Paddy import up from Birgunj
The import of paddy has increased in the first five months of the current fiscal year from Birgunj Customs Office.
In the period of five months of the current fiscal year, paddy import witnessed a growth of 60.28 percent compared to the same period of the last fiscal year.
According to the Customs Office, paddy worth Rs 3.93 billion was imported during the period.
Likewise, revenue collection from the paddy import has increased 45.23 percent.
In the first five months of the last fiscal year, paddy worth Rs 2.4 billion was imported.
(Prepared by Srija Khanal)
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