KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The week has seen notable developments across various sectors, with the NEPSE index making a 1.58% gain, reflecting positive market sentiment despite higher volatility compared to the previous week.
However, some sectors, like provincial budget spending, appear underperforming, with provinces utilizing only 16% of their annual budget halfway through the fiscal year.
On the corporate front, Unilever Nepal reported a solid rise in net profit, driven by healthy sales growth, although a drop in other income indicates some challenges.
Meanwhile, the government’s move to introduce a National AI Policy shows a forward-thinking approach to integrating technology into key sectors like education, health, and agriculture, aiming for significant socio-economic transformation.
Together, these developments reflect a mixture of economic stability, growth potential, and the need for strategic attention to address gaps in fiscal spending and policy implementation.
NEPSE ends the week with a 1.58% increase
The NEPSE Index closed at 2,699.81, marking an increase of 42.04 points (1.58%).
In comparison, it had closed at 2,657.77 last week, reflecting a slight 0.13% rise from the previous week.
Throughout the week, the index reached a high of 2,764.17 and a low of 2,662.01, indicating a volatility of 102.16 points.
In contrast, the previous week had a much smaller volatility of just 3.42 points.
The highest intraday gain was 69.81 points on Sunday, with a turnover of Rs. 12.95 billion. The total turnover for the week was Rs. 51.95 billion.
Unilever Nepal’s Q2 net profit surges to Rs. 47.78 crore
Unilever Nepal Limited (UNL) has posted a net profit of Rs. 47.78 crore for the second quarter (Q2) of the fiscal year 2081/82, marking a 13.49% increase from Rs. 42.10 crore in the same period last year.
The company’s revenue saw a growth of 5.41%, reaching Rs. 1.94 billion, indicating solid sales performance.
However, other income fell by 54.97% to Rs. 3.44 crore, and investments in fixed deposits decreased by 13%, totaling Rs. 1.89 billion, compared to Q2 2080/81.
Despite this, UNL remains financially stable, with a paid-up capital of Rs. 9.21 crore and retained earnings of Rs. 4.17 billion.
Budget spending of provinces stands at 16 per cent in six months
Provincial budget expenditure has been underwhelming in the first six months of the fiscal year 2024/25.
According to the government’s half-yearly review report, the provinces have utilized just 16.18% of their annual budget allocation.
With a total budget of Rs 278.69 billion for the year, only Rs 45.9 billion has been spent by January 13, 2025.
Madhes Province, which allocated Rs 43.89 billion for the fiscal year, has spent just Rs 2.46 million, amounting to only 5.61% of its budget.
Draft of National AI Policy prepared
The Ministry of Communications and Information Technology has developed a draft for the ‘National Artificial Intelligence Policy, 2081’, aimed at fostering the systematic development and application of AI technology in Nepal.
The policy seeks to drive socio-economic and administrative transformation by leveraging AI in various sectors such as education, health, agriculture, and disaster management.
With a focus on enhancing innovation, improving public services, and promoting research and development, the policy also emphasizes regulating AI to mitigate risks.
The ministry is now inviting feedback on the draft, which envisions a future where AI plays a pivotal role in shaping the country’s progress.
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