KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The digest highlights key developments in Nepal’s economy, focusing on remittance inflows, national pride projects, gold prices, and Unilever Nepal’s financial performance.
Remittances have grown by 4.1% in the first half of the fiscal year, but this increase is slower compared to last year’s surge, reflecting a cooling trend in overseas remittance growth.
National pride projects have underperformed, with only 25.7% of the allocated capital expenditure spent, signaling challenges in executing large-scale development initiatives.
Meanwhile, Prime Minister KP Oli has reaffirmed his commitment to timely project completion.
Additionally, gold prices, after a significant increase, have seen a slight dip, and Unilever Nepal’s Q2 profit rose by 13.49%, although a sharp decline in other income suggests some financial challenges.
These mixed economic indicators reflect both positive growth and underlying difficulties in various sectors.
Country receives Rs 763 billion in remittances in six months
The country has received Rs 763.08 billion in remittances during the first six months of the current fiscal year.
In its mid-term review report for the fiscal year, released on Thursday, the Ministry of Finance revealed that remittance inflows increased by 4.1 percent during this period compared to the same time last year.
In contrast, remittance inflows had surged by 22.2 percent during the same period last year.
Additionally, net secondary income, also known as net transfer, reached Rs 832.76 billion in the review period, marking a 4.2 percent increase.
National Pride Projects record 25.70% expenditure in six months
The progress of national pride projects, which were envisioned and initiated by the government to enhance public service delivery and promote economic growth, has been less than satisfactory due to several challenges.
One key issue is the low capital expenditure on these projects, despite the government’s efforts to provide all necessary resources and support.
Out of the total Rs 66 billion allocated for 19 of the 27 national pride projects in the current fiscal year (2024/25), only Rs 17 billion has been spent as of the end of the first six months, according to the Ministry of Finance.
PM Oli reaffirms commitment to timely completion of development projects
Prime Minister KP Oli has reiterated his dedication to finishing development projects on schedule, stressing that this is a key focus for the government.
In a post on his Facebook page, he shared that he had met with the chief ministers of all seven provinces to assess the status of ongoing projects.
The Prime Minister also mentioned that Rs 30 billion has been released to construction contractors, pointing out the significant progress compared to earlier times when contractors were not paid after completing their work.
Gold price drops after surge of Rs 5,700 in 3 days
After a rise of Rs 5,700 over the past three days, gold prices decreased on Friday.
The price of gold dropped by Rs 400 per tola, according to the Nepal Gold and Silver Dealers Federation.
Gold was bought and sold at Rs 168,100 per tola, down from Thursday’s price of Rs 168,500 per tola.
Unilever Nepal’s Q2 net profit jumps 13.49 percent to Rs. 47.78 crore
Unilever Nepal Limited (UNL) posted a net profit of Rs. 47.78 crore for the second quarter (Q2) of fiscal year 2081/82, marking a 13.49% increase from Rs. 42.10 crore in the same quarter last year.
The company’s revenue grew by 5.41%, reaching Rs. 1.94 billion, indicating stable sales performance.
However, there was a significant drop of 54.97% in other income, which totaled Rs. 3.44 crore.
Investments in fixed deposits also fell by 13%, amounting to Rs. 1.89 billion, compared to Q2 2080/81.
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