KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal’s economy highlight a mix of positive and concerning trends.
The lifting of India’s wheat export ban is a welcome relief for Nepal, ensuring a stable wheat supply despite global disruptions caused by the Russia-Ukraine conflict.
In business, a promising 1,314 projects have been shortlisted for startup loans, signaling potential growth in entrepreneurship, though the integrity of the Nepal Stock Exchange (NEPSE) remains in question due to a data security breach.
Gold prices dropped in the Nepali market, reflecting fluctuations in international markets, while NEPSE showed modest improvement.
Meanwhile, challenges persist for farmers in Sarlahi who are struggling to harvest yam ahead of the Maghe Sankranti festival, a crucial time for sales.
These events collectively paint a picture of economic fluctuations and growth potential alongside emerging risks.
The ban on wheat exports to Nepal, imposed by its southern neighbor India, has now been lifted. Additionally, gold prices dropped in the Nepali market on Sunday.
Additionally, out of the 1,314 projects that applied for startup loans, all 1,314 have been shortlisted. The Nepal Stock Exchange (NEPSE) recorded a modest gain on Sunday.
Loophole in NEPSE’s IT system
Concerns have been raised regarding data security at the capital market regulator, Nepal Stock Exchange (NEPSE), after it was revealed that a high-ranking NEPSE employee sold shares using a user ID.
The employee accessed the data system and made transactions under their name, raising questions about the reliability of the system and public trust in investing in the stock market.
India lifts wheat export ban for Nepal
India has lifted the ban on wheat exports to Nepal. As part of this, India has authorized the export of 200,000 tons of wheat to Nepal.
The ban was initially imposed after the global wheat market was impacted by the ongoing conflict between Russia and Ukraine, which caused wheat prices to soar worldwide.
Nepali Ambassador to India, Dr. Shankar Sharma, confirmed that Nepal will receive the wheat through the National Cooperative Export Limited, with the Indian government granting permission at the request of Nepal.
1,314 projects shortlisted for startup loans
A total of 1,314 projects have been shortlisted for startup loans. The Industrial Business Development Foundation selected these projects from the proposals received for loans intended to support new enterprises.
On Poush 19, the foundation issued a notice inviting operators of the shortlisted projects for presentations, with the necessary details provided in the notice.
Gold prices drop
Gold prices dropped in the Nepali market on Sunday. The price fell by Rs 1,500 per tola due to fluctuations in the international gold market and domestic supply-demand management.
On Friday, gold was traded at Rs 153,500 per tola, but it was priced at Rs 152,000 per tola on Sunday, according to the Nepal Gold and Silver Dealers Federation.
Minor improvement in NEPSE
The Nepal Stock Exchange (NEPSE) experienced a slight improvement on Sunday.
The index rose by 5.32 points, reaching 2,591.56 points, a 0.20% increase. On the day, 9,386,721 shares were traded, valued at Rs 4.86 billion, along with 200,000 worth of shares.
Guardian Micro’s IPO opens
The ordinary shares (IPO) of Guardian Micro Life Insurance Limited opened to the public as of Sunday. The company has made 18,45,000 shares available at Rs 100 per share.
Farmers in Sarlahi struggling to harvest yam
As Maghe Sankranti approaches, farmers in Sarlahi’s Bagmati region are facing difficulties in harvesting yam.
Dal Bahadur Lungeli, a yam farmer from Tekani in Bagmati Municipality-5, mentioned that the rush to dig up yam for the festival has increased since the second week of Poush.
Lungeli has cultivated yam across five katta of land on the Bagmati River. He plans to sell his harvest by the third week of Poush, as the price of yam is typically higher during Maghe Sankranti.
The cold weather enhances the health benefits of yam, driving demand and price increases during this period.
BP Highway reconstruction estimated at Rs 9.66 billion
The reconstruction of various sections of the BP Highway, which were damaged by landslides in the last week of September 2024, is expected to cost approximately Rs 9.66 billion.
A post-flood study reveals that a substantial amount of money will be required for the reconstruction.
According to the Divisional Road Office in Bhaktapur, this estimate covers the reconstruction of several locations along the BP Highway, from Bhakunde to Nepalthok.
(Prepared by Srija Khanal)
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