KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The overall scenario described below highlights a range of economic and financial issues affecting various sectors in Nepal.
NIC Asia Bank’s decline despite its extensive presence in the country points to internal challenges, possibly due to operational inefficiencies or inability to maintain profitability amid increasing competition.
Meanwhile, the drop in the Nepal Stock Exchange (NEPSE) signifies broader market struggles, reflecting investor caution.
Additionally, the Prime Minister’s directive to address the fertilizer shortage and curb black market activity indicates ongoing agricultural supply issues.
Meanwhile, the demand for the passage of the Electricity Bill showcases tensions in the energy sector, especially regarding private sector investment.
The increase in gold prices and the collapse of copper mine tunnels signal rising concerns in commodities and traditional industries.
Additionally, the repair of a broken drinking water pipe amidst infrastructure development efforts shows the ongoing challenges in the country’s utilities and public services.
All these factors collectively paint a picture of Nepal’s economic hurdles, with pressing issues in governance, resource management, and industrial development.How did the NIC Asia Bank become weak?
NIC Asia Bank, once considered one of the strongest commercial banks in Nepal, has recently emerged as one of the weakest among the 20 commercial banks currently operating in the country.
Despite having the largest number of branches and a significant presence nationwide, the bank now finds itself earning the least profit, according to its latest financial statements.
NEPSE drops by 7 points; trading declines
The Nepal Stock Exchange (NEPSE) ended the week on a downward note. The index fell by 7.26 points, closing at 2678.47 points, marking a 0.27% decline. As a result, trading activity also decreased on Thursday.
A total of 15.87 million shares worth NPR 7.92 billion were traded on Thursday.
While the share prices of 76 companies increased, the share prices of 162 companies saw a decline, and 6 companies saw no change in their share prices.
PM instructs to prevent shortage of chemical fertilizers
Prime Minister KP Sharma Oli has directed the Ministry of Agriculture and Livestock Development to develop a concrete action plan to prevent a shortage of chemical fertilizers for farmers and to curb black marketing.
In a briefing at the Office of the Prime Minister and Council of Ministers today, Prime Minister Oli emphasized the need to make fertilizer supply and distribution faster and more transparent in order to avoid issues that have traditionally plagued farmers.
Demand to pass Electricity Bill to protect private sector investment
Stakeholders have stressed the importance of passing the Electricity Bill to safeguard private sector investment in the energy sector.
At an interaction program on the ‘Proposed Electricity Bill 2080 and Protection of Investment’ organized by the Nepal Infrastructure Journalists Society in the capital \, former Energy Secretary Anup Kumar Upadhyay pointed out that the current Electricity Act of 1992 is more favorable to private sector interests than the proposed bill currently under consideration in Parliament.
Finance Secretary Upadhyay takes oath as Director of NRB
Ghanashyam Upadhyaya, the Secretary of the Ministry of Finance, has taken an oath as a member of the Board of Directors of Nepal Rastra Bank.
The oath was administered by Chief Justice Prakash Man Singh Raut in a ceremony held at the Supreme Court on Thursday.
According to Section 14 of the Nepal Rastra Bank Act, 2058, the Secretary of the Ministry of Finance is required to be a member of the Board of Directors of Nepal Rastra Bank.
Significant increase in gold prices
Gold and silver prices saw a significant rise in the Nepali market on Thursday. According to the Federation of Nepal Gold and Silver Dealers, the price of gold increased by NPR 2,300 per tola.
The price of printed gold is trading at NPR 169,800 per tola, up from NPR 167,500 per tola on Wednesday.
Copper mine tunnels begin to collapse
The copper mine tunnels in Thandakhani, Raghuganga Rural Municipality-6, have started to collapse.
Mining, a traditional profession of the Chhantyal community, has been halted for years, and the tunnels that were once discovered by their ancestors are now at risk due to lack of protection.
Locals report that one of the two traditional copper mine tunnels has already collapsed, while the other is in the process of being buried.
Repair of broken drinking water pipe in Babarmahal
The Nepal Electricity Authority (NEA) has completed the repair of a broken drinking water pipe in Babarmahal while conducting ‘horizontal drilling’ to underground the electricity wires.
Ashok Kumar Poudel, CEO of Kathmandu Upatyaka Khanepani Limited (KUKL), confirmed that the pipe repair in the wholesale drinking water distribution system was completed after approximately 20 hours, following instructions from Minister for Water Supply Pradeep Yadav.
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