KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Nepal Electricity Authority (NEA) has reported a remarkable turnaround, achieving an accumulated profit of Rs 47.41 billion after previously facing a Rs 34.61 billion loss.
This financial improvement coincides with a significant rise in electricity consumption from 3.32 billion to 10.23 billion units, reflecting enhanced infrastructure and access.
Meanwhile, the NEPSE Index saw a 0.39% increase last week, closing at 2,766.38 with a turnover of Rs 83.6 billion.
Gold prices surged by Rs 1,500 per tola, reaching Rs 148,100, while silver prices remained stable.
Additionally, hybrid apple farming is expanding in Manang, with farmers like Sol Bahadur Gurung benefiting from higher yields and a promising market.
NEA reports accumulated profit of Rs 47.41 billion
The Nepal Nepal Electricity Authority (NEA) has reported an accumulated profit of Rs 47.41 billion, a remarkable recovery from a previous accumulated loss of Rs 34.61 billion.
This reveals a substantial turnaround in its financial performance and highlights a successful transformation in NEA’s financial health over the past eight years.
Kulman Ghising, celebrating the third anniversary of his second term, emphasized the progress made during his leadership. The turnaround in NEA’s financial status is attributed to effective management strategies and policies implemented under his guidance.
In addition to financial improvement, NEA has seen a significant rise in electricity consumption, which has increased from 3.32 billion units to 10.23 billion units over the same period.
This growth not only reflects rising demand but also suggests successful efforts in expanding electricity access and infrastructure in Nepal.
NEPSE ends week with a 0.39% increase and a turnover of Rs 83.60 billion
The market was open for four days last week week due to Sunday being a public holiday for Bhote Jatra.
The NEPSE Index finished at 2,766.38, reflecting an increase of 10.76 points or 0.39%. Last week, the index closed at 2,755.62, marking a 7.30% rise from the week before.
During the week, the index reached a peak of 2,815.94 and a low of 2,630.86, resulting in a volatility of 185.03 points. This is a decrease compared to the previous week’s volatility of 199.17 points.
The largest intraday drop was 145.06 points on Tuesday, accompanied by a turnover of Rs 23.7 billion. Overall, the total turnover for the week was Rs 83.6 billion.
Gold price up by Rs 1,500 per tola
The increase in gold prices by Rs 1,500 per tola on Friday is quite notable and reflects a significant shift in the market.
The fine gold was priced at Rs 148,100 per tola, up from Rs 146,600 per tola just a day earlier.
This sharp rise could be indicative of several underlying factors, such as fluctuations in global gold prices, changes in economic conditions, or shifts in investor sentiment.
In contrast, the price of silver has remained stable at Rs 1,730 per tola, suggesting that the dynamics affecting gold prices might be specific to that metal.
This stability in silver prices highlights a divergence in the precious metals market, where gold and silver are not necessarily moving in tandem.
Hybrid apple farming expands across Manang district
The practice of hybrid apple farming is making substantial inroads in Manang, where a growing number of households are embracing this modern agricultural approach.
Traditionally, the district relied on subsistence farming, but farmers are increasingly shifting towards commercial hybrid apple cultivation due to its clear advantages.
One prominent example is Sol Bahadur Gurung from Tachai in Naso Rural Municipality-8. Gurung, like many others, has adopted hybrid apple farming because it offers a notably higher yield compared to traditional apple varieties.
This increase in productivity is a key factor driving the broader adoption of hybrid farming methods in the region.
Moreover, the market for hybrid apple varieties has been promising, which further stimulates interest among farmers.
Govt blacklists 20 contractors
The government has blacklisted 20 contractors and suppliers, as announced by the Public Procurement Monitoring Office (PPMO).
Effective from Friday, this action is in line with Section 63(1) of the Public Procurement Act, 2063.
The blacklist imposes a ban on these entities from participating in any public procurement activities during the period of their blacklisting.
This move reflects a stricter enforcement of procurement regulations, aimed at enhancing accountability and transparency in public contracts.
Nepal to begin electricity exports to Bangladesh this year
Nepal is set to commence electricity exports to Bangladesh this year, as announced by Kulman Ghising, Managing Director of the Nepal Electricity Authority (NEA).
In his address marking the third anniversary of his second term, Ghising emphasized the notable advancements in Nepal’s energy sector, citing over Rs 100 billion in investments in electricity production and distribution.
Additionally, NEA’s revenue has surpassed Rs 100 billion. The export initiative will involve routing electricity through India, with a formal power trade agreement pending resolution of the current crisis in Bangladesh.
(Prepared by Srija Khanal)
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