KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Private sector demands operation of businesses maintaining precautionary measures
The private sector of Nepal has urged the government to allow businesses to operate by maintaining the safety protocols prescribed by the government against COVID-19.
Representatives of three private sector organizations – Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries and Nepal Chamber of Commerce – presented their concern over the struggling business environment created amid the five months lockdown with Prime Minister KP Oli.
They urged the government to take 33 percent of the liability of the employees’ salary and to provide loans at 50 percent subsidized interest rate to the small and medium businesses.
The entrepreneurs also sought an effective coordination among the three layers of government to address the problems created by the current difficult situation.
The government should seriously think about reviving the economy by providing some relief as much as they are capable of.
Private sector is a backbone of a country’s economy and this should not be underestimated by the government.
Reliance Life Insurance’s shares listed; trading starts today
With the listing of the shares of Reliance Life Insurance Limited in NEPSE, the trading is commencing today.
The company has set the first transaction price in the range of Rs. 107.59 to Rs. 322.77.
The range has been set by NEPSE based on the company’s net worth per share. The Sunrise Capital Limited has been appointed as its share registrar.
EVs promote environmentally-friendly development: PM Oli
Prime Minister KP Oli has said that the electric vehicles (EVs) have helped promote environmentally-friendly development thanks to the use of power generated within the country.
In a message of best wishes to Sundar Yatayat on its first year of EVs operation in Kathmandu valley, the Prime Minister said that such efforts reduce the use of imported fuels and help in the making of self-reliant economy.
The Prime Minister has also said that the government was making efforts to bring development and service sectors back to normalcy by combating the COVID-19 pandemic.
Bagmati State govt starts establishing electric vehicle charging stations
The Bagmati State government has initiated the process of establishing electric vehicle charging stations in the State.
The government has aimed at replacing fuel vehicles with electric vehicles from big cities of the state by 2085 BS, according to Minister for Physical Infrastructure Development Rameshwor Phuyal.
The electric transport system, he said, will be operated through the private partnership model for accessible, facilitated, safe and environment-friendly transport.
It should be noted that the policies and programs presented by the government for the fiscal year, 2020/21 has prioritized renewal energy and the replacement of fuel vehicles with electric vehicles by 2085 BS.
However the interesting thing is that, the government’s budget for FY 2078/79 has significantly increased tax on electric vehicles.
With this the announcement of the government to prioritize renewal energy and the replacement of fuel vehicles with electric vehicles by 2085 BS seems to be conflicting and over ambitious.
No fact distortion on economic growth: CBS
The Central Bureau of Statistics (CBS) has objected to the false publicity regarding economic growth rate of fiscal year 2019/20.
The CBS has expressed its reservation to the distortion of facts. The CBS has said that there is no amendment to the prior projection of economic growth rate of 2.27 per cent in the base price made for the fiscal year 2019/20.
The Bureau has also termed the recent media reports carried out by some media outlets as the false rumor. The preliminary annual National Accounts Statistics of 2019/20 was published on April 28 with a projection that the effect of internal and external initiatives taken to reduce the impacts of coronavirus pandemic might affect the country’s economy, said the CBS.
However, as the lockdown is getting prolonged, the GDP growth with definitely experience some more deduction. If the situation is to be similar, it will not take more time for the GDP growth rate to go negative.
However, the Bureau has not published any annual National Accounts Statistics amending except it.
NEPSE closed at 1,487.18 on Monday
The NEPSE index on Monday fell 12.17 points closing at 1,487.81.
Overall 19.76 points volatility was witnessed during the trading session – the lowest being 1,483.62.
As many as 5,595,551 shares produced a total turnover of Rs. 2.16 Arba.
Likewise, the float index lost 1.01 points.
RMDC Laghubitta proposes 20% dividend
The RMDC Laghubitta Bittiya Sanstha Limited proposed distribution of 20 percent dividend for the fiscal year 2076/77.
A meeting of its board members decided to distribute 15 percent bonus shares and a 5 percent cash dividend to its shareholders.
The company had distributed a 25 percent dividend in the fiscal year 2075/76. The dividend will be distributed after the approval of the General Meeting and Nepal Rastra Bank.
NADA to defy prohibitory orders from Sept 10
KATHMANDU: The NADA Automobile Association of Nepal has warned of defying the prohibitory order if the government prolonged the order from September 10.
A meeting of the NADA office bearers on Monday decided to defy the prohibitory order.
Chairperson of NADA Krishna Prasad Dulal warned they would be compelled to defy the lockdown if the government paid no heed to their demand of lifting the prohibitory order.
He warned of dire consequences if the government did not lift the prohibitory order from September 10.
(Compiled and prepared by Nitish Lal Shrestha)
Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.
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