KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal, the first country in South Asia to introduce third-generation mobile services (3G), is now significantly lagging behind in the implementation of fifth-generation (5G) internet services.
Meanwhile, according to the Office of the Comptroller and Auditor General, by mid-December, the government had achieved only 39 percent of its annual revenue target and spent 35 percent of its budgeted expenditure.
Additionally, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) alone is involved with at least 32 regulatory bodies and key state institutions. Meanwhile, gold prices in the Nepali market declined on Tuesday.
NRB proposes new standards to regulate cooperatives
Nepal Rastra Bank (NRB) has introduced a draft of new standards to regulate cooperatives engaged in savings and loan transactions, aiming to ensure transparency and financial discipline in the sector.
This move comes after the government issued a new law on cooperative sector management through an ordinance.
The draft outlines several key provisions to address the challenges faced by the cooperative sector.
One major change is the restriction on savings collection, allowing cooperatives to collect savings exclusively from their members.
13 percent dividend approved for Citizens’ Investment Fund shareholders
The 30th annual general meeting of the Citizens’ Investment Fund approved a seven percent bonus share issuance and a six percent cash dividend for its shareholders.
The meeting, chaired by Prof. Dr. Surya Bahadur Thapa, Chairman of the Fund’s Board of Directors, ratified these proposals for the fiscal year 2080/81.
Gold prices fall
Gold prices dropped in the Nepali market on Tuesday. According to the Nepal Gold and Silver Dealers Federation, gold was traded at Rs 155,000 per tola, down from Rs 155,800 on Monday.
Additionally, silver price also decreased, and was traded at Rs 1,820 per tola, compared to Rs 1,860 on Monday.
5G service delays
Nepal, which was the first country in South Asia to introduce 3G services, is now falling behind in the rollout of 5G.
While most South Asian nations have already implemented 5G networks, Nepal has made little progress.
Stakeholders attribute the delay to reluctance from service providers and a lack of government initiative to push for 5G service expansion in the country.
Business involvement in state bodies
Industrialists and businessmen have raised concerns over the Securities (First Amendment) Bill, 2081, which is currently under clause-by-clause review in the Finance Committee of the House of Representatives.
The bill includes provisions for representatives from the Institute of Chartered Accountants of Nepal (ICAN) and the Federation of Nepal Chambers of Commerce and Industry (FNCCI) to be included on the Securities and Exchange Board of Nepal (SEBON).
Budget Half-Year Review
Government revenue and expenditure have both fallen short of expectations in the first half of the current fiscal year.
According to the Office of the Comptroller and Auditor General, by mid-December, the government had achieved just 39 percent of its annual revenue target and spent 35 percent of its budgeted expenditure.
With a total budget of Rs 1,860.3 billion for the fiscal year, Rs 667.6 billion had been spent by December, representing 35.89 percent of the annual target.
Prachanda’s push for Tatopani checkpoint
Pushpa Kamal Dahal ‘Prachanda’, Chairman of the Maoist Center and former Prime Minister, has said he is actively pursuing efforts to restore the Tatopani checkpoint in Sindhupalchowk to full operation.
He mentioned that he had taken the initiative to reopen the Tatopani border crossing both during his tenure as Prime Minister and after.
Chairman Prachanda, who was in Sukute to inaugurate a beach volleyball tournament, stated in a press conference today that he had repeatedly engaged with the Chinese government regarding the operation of the Tatopani border crossing.
He emphasized that significant efforts and initiatives are required from the highest levels of both countries to ensure the smooth reopening of the border crossing.
Income of farmers in Barahakshetra
The yam production in Barahakshetra Municipality, the largest yam-producing area in Nepal, has dropped by 50 percent this year.
Farmers and traders in Prakashpur, Rajabas, and Chakraghatti report a significant decline in output compared to last year.
The decrease in production is attributed to excessive rainfall and the presence of borers immediately after planting the yam.
Farmers from Ward-6 to Ward-11 in Barahakshetra Municipality have been cultivating yam commercially for the past decade, making it the leading yam-producing region in the country.
Although located on the eastern bank of the Koshi River, the land lacks proper irrigation facilities, making it unsuitable for growing rice or other crops.
As a result, farmers have focused on cultivating yams as a profitable alternative, even without growing vegetables.
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