KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The government’s decision to cut the fiscal budget by 250 billion rupees highlights ongoing challenges in balancing expenditures and revenues, despite previous plans set under the prior government.
Meanwhile, the stock market has experienced positive gains, offering relief to shareholders, although the commercial banking sector has seen a significant downturn in profits.
On the trade front, Nepal has seen an encouraging 31.78% increase in exports, signaling growth in foreign trade, while the life insurance sector faces a decline in active policies.
Additionally, the state’s hold on students’ educational funds and the clarification of the Forest Ministry’s stance on development reflect ongoing socio-economic challenges and developments in various sectors, including education and infrastructure.
The Gandaki Provincial Government’s progress in road blacktopping is a notable achievement in local governance, showing a clear drive for improvement in physical infrastructure.
Govt to reduce budget by 250 billion rupees
The government is set to reduce the budget for the current fiscal year by at least 250 billion rupees, after struggling to meet expenditure and revenue targets.
Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel is expected to announce the budget revision during the mid-term review, which will be made public in the last week of Magh.
The previous government’s Finance Minister, Barshaman Pun, had introduced a budget of 1,860 billion 303 million rupees for the fiscal year.
Following the shift in power, UML Vice-Chairman Poudel took over as Finance Minister.
Market surge provides relief for shareholders
In the second trading week of the Nepali month of Magh, the stock market saw positive gains, with the Nepal Stock Exchange (NEPSE) rising by 53.14 points.
The index climbed from 2,601.21 points last Thursday to 2,654.35 points this Thursday.
The market experienced an upward trend for four out of five trading days, although it fell on the final day of the week. On average, NEPSE increased by 10.628 points per day.
Nepal’s foreign trade on the rise
Nepal’s foreign trade has grown compared to the first six months of the previous fiscal year.
According to data from the Customs Department, imports rose by 7.06%, while exports saw a significant 31.78% increase in the first half of the current fiscal year.
Commercial banks: Profits decline
Commercial banks have seen a decline in profits in the first six months of the current fiscal year compared to the same period last year.
Public data shows a 100% decline in profits across the banking sector.
Among the commercial banks, Prabhu Bank saw the most significant profit increase, while NIC Asia Bank experienced the largest decline.
State holds funds of students without visas
The state is holding educational service fees for thousands of students who used currency exchange facilities for foreign study purposes.
In the past year alone, 112,583 students obtained a foreign study permit (NOC).
According to Basu Nepal, president of the Independent Educational Consultancy Association of Nepal (FECON), students applying to universities in countries like those in Europe and Australia are required to pay fees in advance.
Forest Ministry clarifies its position on development
Forest Minister Ain Bahadur Shahi Thakuri stated that the Forest Ministry is not opposed to development.
Speaking at the eighth annual general meeting of the Tikauli Intermediate Community Forest Users Group in Ratnanagar Municipality-9, Chitwan, the Minister explained that while the ministry is often seen as anti-development, it is, in fact, a partner in development initiatives.
Gandaki Provincial government leads in road blacktopping
The Gandaki Provincial Government is currently leading in road blacktopping among all provincial governments.
The province has made significant strides in improving its road infrastructure.
Shrinking life insurance sector
The life insurance sector in Nepal has not seen significant improvement compared to the previous fiscal year.
Active insurance policies with major life insurance companies have declined when compared to the second quarter of the previous fiscal year.
Meanwhile, smaller insurance companies are experiencing growth in their operations.
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