KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest economic and financial updates from Nepal reveal a range of challenges and developments. The stock market continues to decline, with the NEPSE index dropping by 3.44 points, and trading volume decreasing further.
Meanwhile, gold prices also fell, continuing a downward trend. The government is taking steps to attract private investment for infrastructure, launching a Rs 100 billion fund, while also working on an action plan to exit the FATF grey list.
Nepal Rastra Bank has warned the public about rising digital financial frauds, and economic diplomacy efforts are hindered by inadequate funding. Additionally, issues like industry closures, power outages, and the delay in appointing an NRB Governor due to political disputes highlight ongoing concerns within the country.
On a more positive note, Nepal has seen a rise in luxury tourism and climbing expeditions, signaling potential growth in these sectors. However, the government’s handling of infrastructure projects and the regulatory environment continues to face scrutiny.
Stock market continues to decline, NEPSE index falls by 3.44 points
After a drop of 33 points the previous day, the stock market saw further decline on Tuesday, with the NEPSE index falling by an additional 3.44 points. This brought the index to a closing value of 2,666 points.
Although the final price calculation of listed companies showed an increase of 1.73 points, the weighted average price calculation resulted in a decrease of 3.44 points compared to the prior day. For the past two weeks, the index has been based on the weighted average price from the last 15 minutes of trading.
Trading volume also decreased from NPR 5.65 billion the previous day to NPR 5.30 billion. Of the 121 companies that saw stock price increases, 123 companies experienced declines.
Gold prices decline again in Nepali market
The price of gold in the Nepali market fell once more on Tuesday, continuing a downward trend that began last Friday. Gold dropped by NPR 400 per tola, following a reduction of NPR 700 per tola on Monday. Hallmark gold was traded at NPR 173,400 per tola.
Cabinet approves bill for alternative development financing
The Cabinet has approved a bill aimed at attracting private investment for public infrastructure development through alternative financing methods. Finance Minister Bishnu Prasad Paudel shared the approval, emphasizing the importance of both domestic and foreign private sector investment in driving infrastructure growth.
Nepal’s economic diplomacy faces setbacks due to insufficient funding
Nepal’s economic diplomacy efforts have been limited due to a chronic lack of funding, according to Ministry of Foreign Affairs Joint Secretary Kumar Raj Kharel. He shared at the “Himalayan Dialogue” in Kathmandu that only Rs 160 million was allocated this year, a sharp decline from the previous year’s Rs 120 million. The Ministry plans to establish a dedicated division to strengthen diplomatic efforts.
NRB warns the public about growing digital financial frauds
Nepal Rastra Bank has issued a public alert about increasing digital financial frauds. The bank cautioned against falling for fraudulent schemes such as offers of cheap mobile phones, lottery winnings, money-doubling promises, or crypto investments.
The bank emphasized that individuals who respond to such offers and share sensitive personal information, including citizenship details, may face significant financial losses. The NRB urged the public to remain cautious and to make decisions after thorough consideration.
Finance Minister guarantees no political interference in NRB’s policies
Finance Minister Bishnu Poudel reassured that Nepal Rastra Bank’s policies will remain free of political interference. Speaking at the ‘NADA Auto Dialogue’ organized by the NADA Automobiles Association of Nepal, Poudel clarified that the policies impacting the automobile sector were formulated by the central bank independently.
Poudel, also the Deputy Prime Minister, acknowledged concerns from auto dealers over the NRB’s decision to lower the loan-to-value ratio during its midterm review. However, he emphasized that the issue can be resolved through discussions.
Nepal to launch Rs 100 billion infrastructure fund to attract private investment
In a bid to attract private investment into infrastructure projects amid a tight budget, Nepal is setting up a Rs 100 billion Alternative Resource Management Fund. This fund will focus on sectors like energy, roads, railways, airports, and Special Economic Zones (SEZs).
The government will hold 51% of the fund, with the rest allocated to provident and social security funds, as well as insurance firms. The fund will be managed by a seven-member board and aims to promote job creation and economic growth through blended finance strategies.
Nepal takes steps to exit FATF Grey List
Nepal has begun working on an action plan to remove itself from the Financial Action Task Force (FATF) grey list. The action plan, developed by the Money Laundering Prevention Committee, outlines responsible agencies, actions, and deadlines.
Finance Minister Bishnu Poudel stressed the need for long-term reforms to prevent future listings. Law Minister Ajay Chaurasiya mentioned that while Nepal has the necessary legal frameworks, stronger implementation is needed.
Rs 4 billion worth of palm oil stuck at Kolkata Port
Palm oil worth Rs 4 billion is stranded at Kolkata Port due to a dispute over its classification. Nepal’s customs officials have reclassified the oil as a finished good, halting its import. Importers contend that it is crude oil meant for local processing. About 24,000 tonnes are currently stuck, resulting in penalties and interest charges.
Chitwan experiences surge in industry closures
In Chitwan, 279 industries have shut down since the beginning of this fiscal year, a notable increase compared to the 181 closures during the same period last year.
Most of these closures were in sectors such as manufacturing, agriculture, tourism, and services, with many businesses registered for foreign employment purposes.
Only 273 new industries were registered, compared to 329 last year, highlighting the challenges in the region’s business environment.
Pokhara International Airport closed due to fog
Pokhara International Airport remained closed due to dense fog, which has disrupted regular flights since Sunday afternoon. No flights have been operating since 3 PM on Monday, including a chartered flight from Sichuan Airlines from Chengdu, China.
National Geographic brings 78 high-spending tourists to Nepal
National Geographic’s luxury travel initiative brought 78 affluent tourists to Nepal on April 4 via chartered flight in partnership with Yeti Holidays. These tourists, staying at Hotel Dwarika’s, spent approximately USD 500 per person daily.
The tour, part of a larger 22-country journey, marks a shift towards high-end tourism, with many participants having visited Nepal before.
32 climbers successfully summit Annapurna on first day of Spring season
32 climbers, including both Sherpas and foreigners, successfully reached the summit of Annapurna (8,091m) during the first day of the spring climbing season. However, two Sherpas, Rima Sherpa and Nima Tashi, went missing after an avalanche, prompting a search operation.
This season, 66 climbers have received permits for Annapurna, a significant increase from last year’s 25 climbers.
Govt faces criticism over Rs 6 bBillion emergency contracts for BP Highway
The government has faced accusations of favoritism in awarding Rs 6 billion worth of emergency reconstruction contracts for damaged sections of the BP Highway.
The Ministry of Physical Infrastructure called tenders in large segments, which has limited competition and raised concerns about inflated costs. Experts suggest that breaking the contracts into smaller packages could improve transparency and reduce costs.
Ministry of Finance requests suggestions for FY 2082/83 budget
The Ministry of Finance has called for suggestions for the upcoming fiscal year 2082/83 budget. The ministry is seeking input from various stakeholders, including government bodies, political parties, experts, and the general public. All suggestions must be submitted by the end of Baisakh 2082.
RPP MP claims delay in appointment of NRB Governor due to party disputes
Dipak Bahadur Singh, an MP from the Rastriya Prajatantra Party (RPP), criticized the delay in appointing the Governor of Nepal Rastra Bank, claiming it was due to political conflicts over who would control the position. He argued that the delay was damaging the country’s economy and exacerbating corruption.
330 climbers receive permits for Spring Himalayan Expeditions
A total of 330 climbers from 35 groups have received permits for spring Himalayan expeditions, including 120 climbers aiming to summit Mount Everest. The Department of Tourism reports that permits have been issued for 15 different peaks, with Annapurna I also drawing significant interest.
Two experts nominated to Board of Food Management and Trading Company
Two new experts, Nirpa Bahadur Bohora and Nani Maharjan, have been recommended for appointment to the board of the Food Management and Trading Company Limited. These appointments were made following a recommendation committee’s decision, with Bohora selected from Doti and Maharjan from Kirtipur, Kathmandu.
NBA President Santosh Koirala calls for regulation in electric vehicle imports
Santosh Koirala, President of the Nepal Bankers’ Association (NBA), expressed concerns about the unregulated import of electric vehicles (EVs). He suggested that the government should determine eligibility criteria for EV importers and ensure the necessary infrastructure is in place to support the growing demand for electric vehicles.
Govt to implement GPS system in public vehicles to enhance safety
The government plans to implement a GPS system in public vehicles to improve safety and reduce road accidents. The Department of Transport Management is in the process of installing the system, which will help with vehicle regulation and improve search and rescue operations during accidents.
Nepali entrepreneur Nami Baral named Among ‘100 Global Women in AI’
Nepali entrepreneur Nami Baral has been recognized in the prestigious ‘100 Global Women in AI’ list, which celebrates leading women in the field of artificial intelligence. Baral, the CEO of Neural, a tech company based in New York, was honored for her contributions to the AI sector.
Public concern grows over power outages in Kathmandu
Frequent power outages across Kathmandu have sparked frustration among the public, with many questioning whether load-shedding has returned.
However, NEA spokesperson Rajabhai Shilpakar denied that the outages were due to load-shedding, citing technical faults and storms as the primary cause. Despite importing up to 800 MW from India, Nepal’s aging power transmission system remains vulnerable.
Comment