KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The text highlights key sectors of Nepal’s economy: agriculture, energy, and local governance, revealing both positive trends and challenges.
The Ministry of Agriculture’s estimates show a promising 4.04% increase in rice production for the current fiscal year, despite a slight decrease in the land area dedicated to rice cultivation.
This indicates a potential boost in food security, though land usage efficiency might need attention.
In the energy sector, the government’s ambitious goal of generating 28,500 megawatts of electricity will require substantial investment, emphasizing the growing role of private sector involvement in infrastructure development.
However, at the local governance level, Lahan municipality’s poor capital spending of just 3.45% signals inefficiency in utilizing its allocated budget, raising concerns about the effectiveness of municipal financial management and timely project execution.
Govt targets asset laundering in crypto and casinos
The government has identified six offenses related to money laundering and assigned three regulatory bodies for their oversight, as per a notice published in the Nepal Gazette this week.
The decision, based on the Money Laundering Prevention Act, 2064, was made by the Cabinet in December 20, though the formal announcement came 13 days later.
The government, under Clause 7(A)(2) of the Act and following recommendations from the coordination committee, has designated Nepal Rastra Bank, the Department of Transport Management, and the Securities Board of Nepal (SEBON) as regulatory bodies.
Agriculture Ministry estimates 5.9 million metric tons rice yield
The rice production will be 5 million 955 thousand 476 metric tons in the country in the current fiscal year, according to the preliminary estimates of the Ministry of Agriculture and Livestock Development.
Ministry spokesperson Dr Matina Joshi Baidya said the rice yield in the current fiscal year will be 4.04 per cent more compared to the production last fiscal year.
“It is estimated that rice (planted during spring and monsoon) was cultivated in a total 1 million 420 thousand 636 hectares land in the current fiscal year, which is 1.28 per cent less as compared to the total area under rice cultivation last fiscal year,” she said.
Rs 6.5 trillion investment required to produce 28 thousand megawatts power
Investment of Rs 6.5 trillion is needed for producing 28,500 megawatts of electricity as per the government’s target.
Of this investment, Rs 4 trillion would remain within the country. This information was shared during the funding management agreement signing ceremony of the 49.95 megawatts Danakhola Hydropower Project promoted by the Lalupate Hydropower Company.
The Project is being constructed at Nasong Rural Municipality-2 in Manang district. Addressing the program, Minister for Energy, Water Resources and Irrigation Deepak Khadka said that the government is working towards the development of the energy sector through private sector participation.
Lahan municipality posts only 3.45 per cent capital spending
At a time when the current fiscal year has made nearly half way, Lahan municipality has posted only 3.45 per cent capital spending.
Mayor Mahesh Prasad Chaudhary presented details on it in the 15th winter municipal assembly.
Detailed review of expenditure in the past five months was shared on the occasion. Of the annual budget with the estimates of Rs 1.23 billion, only Rs 285.6 million was spent so far.
Of it, Rs 242 million (19.70 per cent) has been spent under recurrent expenditure while Rs 43.34 million (3.45 per cent) under capital expenditure.
(Prepared by Srija Khanal)
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