KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Recent developments in Nepal showcase a mix of economic, cultural, and policy-related shifts.
Gold prices have seen a Rs 700 increase per tola, influenced by international market fluctuations, while silver prices have remained stable.
Meanwhile, the Nepal Rastra Bank’s initiative to collect Rs 40 billion through an online bidding system for a 22-day period highlights ongoing efforts to manage the country’s financial resources.
In parallel, the PPMO has blacklisted 18 construction companies for violating procurement rules, aiming to ensure better standards in the sector.
The government’s focus on climate-responsive budgeting, with plans to increase its allocation to 20% over the next four years, demonstrates a strong commitment to green development.
On the reconstruction front, the Finance Ministry has allocated Rs 18.88 billion to rebuild 26 infrastructure projects damaged by floods and landslides.
Additionally, the stock market has seen a modest rise in activity, reflecting investor optimism.
However, challenges remain in the agricultural sector, particularly for honey farmers facing market demand issues.
Cultural celebrations, such as the Swayambhu Festival, are on the horizon, highlighting the city’s rich traditions.
Similarly, the Computer Association of Nepal has proposed a framework for the nation’s first AI policy, signaling the government’s recognition of the importance of technological advancements.
These developments reflect a dynamic landscape where Nepal is balancing its economic, environmental, and cultural priorities while addressing current challenges.
MCC projects in Nepal suspended following USAID halt
MCC projects in Nepal have also been halted following the suspension of USAID initiatives.
The Millennium Challenge Corporation (MCC), a U.S. aid agency, is facing setbacks as a result.
On February 14, the U.S. government sent a letter informing that the implementation of MCC projects should be paused.
According to the Ministry of Finance, the suspension is in line with a 90-day executive order issued by the U.S. President on January 20, 2025, which affects the activities tied to the compact signed between the Government of Nepal and MCC on September 14, 2017.
Gold price increases by Rs 700 per tola
KATHMANDU: The price of gold has increased by Rs 700 per tola in the local market today, following fluctuations in the international market.
According to the Nepal Gold and Silver Dealers Federation, gold, which was previously bought and sold at Rs 168,700 per tola on Monday, is now being traded at Rs 169,400 per tola.
Meanwhile, the price of silver remains stable at Rs 1,970 per tola.
In the international market, gold is being traded at 2,914 US dollars per ounce today.
Nepal Rastra Bank to collect deposits worth Rs 40 billion
Nepal Rastra Bank (NRB) is set to collect deposits totaling Rs 40 billion through a bidding process today.
The deposits will be collected for a period of 22 days, with the bidding process open until 3 p.m.
According to the central bank, the collection will take place through an online bidding system. The bidding terms specify that the minimum bid amount should be Rs 100 million, while the maximum is capped at Rs 50 billion.
PPMO blacklists 18 construction companies
The Public Procurement Monitoring Office (PPMO), functioning under the Prime Minister’s Office, has placed 18 construction companies on its blacklist.
In a notice released today, the office explained that the companies were blacklisted following recommendations from several organizations.
The blacklisting was done in accordance with Sub-section (1) of Section 63 of the Public Procurement Act, 2063, it said.
Nepal’s climate-responsive budget set to reach 20 percent in four years
Nepal is planning to increase the share of its climate-responsive budget to 20 percent of the total allocation within the next four years, up from the current 6 percent.
This decision was made following a secretarial-level discussion, where the Government of Nepal’s secretaries agreed to meet this target by the fiscal year 2085/086 BS.
The National Planning Commission has already outlined the seven-point conclusions of the ’16th Plan and Workshop on Green and Climate-Friendly Development.’
Additionally, the Commission submitted the ‘Report on Preliminary Estimates of National Resources and Expenditure Limit Determination, 2081’ to the Ministry of Finance, which will now estimate the expenditure limit and resources for the next three fiscal years based on this report.
Finance Ministry to reconstruct 26 projects damaged by floods and landslides
The Ministry of Finance has allocated Rs 18.88 billion for the reconstruction of 26 infrastructure projects, including roads and bridges, damaged by floods and landslides in the last week of September.
The decision was made after a request from the Ministry of Physical Infrastructure and Transport.
Stock market sees growth
The Nepal Stock Exchange (NEPSE), on Monday, witnessed a positive movement, increasing by 11.91 points to 2,739.82.
The market grew by 0.43 percent, with a turnover of Rs 10 billion more. A total of 18.23 million shares worth Rs 10.43 billion were traded, with share prices of 87 companies increasing, while 149 companies saw a decline in share prices.
Nepali honey faces marketing challenges
Nepali honey farmers are struggling due to a lack of market demand for their produce.
Dinesh Oli, President of the Nepal Beekeepers Association Dang, cited marketing issues and the import of foreign honey as key challenges.
Farmers are also facing difficulties due to insufficient pasture for bees, resulting in a decline in the number of beekeepers.
Swayambhu Festival to begin on Feb 22
Kathmandu Metropolitan City Ward No. 15 is preparing for the Swayambhu Festival, scheduled to begin on February 22.
The festival aims to showcase the area’s cultural, religious, and social traditions, as well as its historical landmarks, such as monasteries, chaityas, and ancient monuments.
Ward President Ishwarman Dangol confirmed that preparations are in the final stages.
CAN provides suggestions for Nepal’s first National AI Policy
The Computer Association of Nepal (CAN) has submitted a 10-point proposal to the government for the creation of Nepal’s first national Artificial Intelligence (AI) policy.
The recommendations were made to Minister for Communications and Information Technology, Prithvi Subba Gurung.
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