KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The text highlights several key economic developments in Nepal, reflecting a mix of positive growth and challenges.
Remittance inflows, a critical source of income for the country, saw a slower growth of 4.4% in the first five months of the fiscal year, compared to the previous year’s robust 24.2% rise.
This slower pace may indicate a shift in global or domestic factors influencing remittance flows.
Alongside this, inflation has increased, especially in food and beverages, which saw a notable jump to 9.99%, signaling pressure on consumer prices and the cost of living.
To curb financial risks, the Nepal Rastra Bank has also mandated national ID verification for microfinance accounts, a move to strengthen anti-money laundering measures.
Meanwhile, the gold and silver markets have experienced price hikes, indicating inflationary trends in precious metals.
Additionally, Mahila Laghubitta’s decision to withhold dividends reflects its financial caution, which, while prudent, may affect investor sentiment.
Prime Minister Oli’s remarks about the handicraft sector’s importance to employment and exports underscore the government’s ongoing support for key industries despite broader economic pressures.
Nepal receives Rs 640.43 billion in remittances in five months
Remittance inflows increased by 4.4 percent to Rs 640.43 billion in five months, compared to a 24.2 percent increase in the same period of the previous year.
In US dollar terms, remittances rose by 2.5 percent to USD 4.73 billion, compared to a 21.1 percent increase the previous year.
Consumer price inflation stands at 6.05 percent
Consumer price inflation stood at 6.05 percent in mid-December 2024, compared to 4.95 percent a year earlier, according to Nepal Rastra Bank (NRB).
In its report on the Current Macroeconomic and Financial Situation of Nepal (based on data for the five months ending mid-December 2024/25), the NRB stated that food and beverage inflation reached 9.99 percent, while non-food and service inflation stood at 3.92 percent during the review period.
NRB makes national ID mandatory to open microfinance accounts
Nepal Rastra Bank (NRB) has mandated the use of national identity cards for opening accounts in microfinance financial institutions starting January 14.
The move is aimed at bolstering customer identification and verification processes to align with anti-money laundering regulations.
In a recent directive, the central bank instructed microfinance institutions to verify national identity card details using electronic records before approving account openings.
This requirement is in accordance with the Money Laundering Prevention Act, 2008, and the Money Laundering Prevention Regulations, 2017, which emphasize stricter customer identification standards.
Gold prices rise for third consecutive day
The price of gold in Nepal has seen a steady increase for three consecutive days, with a notable rise of Rs 800 per tola on Friday, bringing the price to Rs 154,100.
This follows previous increases of Rs 500 on Wednesday and Rs 800 on Thursday.
Alongside gold, silver prices also rose on Friday, increasing by Rs 5 per tola to Rs 1,845. The price of silver was Rs 1,840 per tola on Thursday.
In the international market, gold is currently being traded at USD 2,673 per ounce, while silver is priced at USD 30.21 per ounce.
Mahila Laghubitta declines dividend distribution for FY 2080/81
Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) has announced that no dividends will be issued for the fiscal year 2080/81.
The decision was made during the board meeting held on 25th Poush, 2081. However, this resolution is pending approval from Nepal Rastra Bank and the company’s upcoming Annual General Meeting.
MLBSL currently has a paid-up capital of Rs. 21.75 crores, and its latest traded price (LTP) stands at Rs. 2,331.
Handicraft sector always in govt.’s priority: PM Oli
Prime Minister KP Oli has said the government would always put the handicraft sector in its priority.
Addressing the inaugural session of the 44th annual general assembly of the Federation of Handicraft Associations of Nepal (FHAN) here today, Prime Minister Oli assured of taking maximum initiatives from government sides in favour of the handicraft sector as this sector increase employment, production, entrepreneurship, and export in the country.
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