KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE Index on Tuesday dropped by 3.86% to 2,782.60 points amid a turnover of Rs. 18.64 billion, following a prior decline.
In the gold and silver markets, local gold prices remained steady at Rs. 152,300 per tola, while silver prices rose to Rs. 1,850 per tola, reflecting shifts in market dynamics.
Bagmati Province fell short of its revenue target by Rs. 9.33 billion for FY 2023/24, achieving only 81.85% of its goal, largely due to declines in various tax revenues and federal budget cuts.
The government is now accepting startup loan proposals through a 21-day submission window.
Additionally, Nepal Airlines has resumed A-320 flights after recent repairs.
NEPSE Index drops 3.86% with Rs. 18.64 billion turnover
The NEPSE Index saw a significant decline on Tuesday, closing at 2,782.60 points after dropping by 111.96 points, or 3.86%, from the previous day.
The previous session had also experienced a decline of 79.88 points, ending at 2,894.57 points.
Today’s trading began with the index at 2,899.8 points and saw notable fluctuations, peaking at 2,902.75 points and dipping to a low of 2,770.39 points before closing at 2,782.60.
The session was marked by heavy trading activity, with 330 stocks exchanged through 234,360 transactions.
This involved 43,868,970 shares and generated a turnover of Rs. 18.64 billion.
The market capitalization reached Rs. 4.41 trillion, and the float market capitalization stood at Rs. 1.56 trillion.
NRB allows MFIs to reschedule and restructure client loans
Nepal Rastra Bank (NRB) has authorized microfinance institutions (MFIs) to reschedule and restructure their clients’ loans for the next three years.
In a revision of the Unified Directives on Tuesday, the NRB instructed MFIs to implement these changes by mid-December 2024. However, these adjustments are only available to borrowers who have struggled to repay their loans due to financial difficulties.
According to the NRB’s circular, for loans categorized as non-performing, MFIs must maintain the loan loss provisions within the prescribed limits while rescheduling or restructuring.
The loan loss provisions cannot be adjusted until the debtors consistently make interest payments for the following year.
Vehicles ranging from Rs 19.96 lakh to Rs 168 lakh unveiled at NADA Auto Show
A dozen new brands and numerous models are showcased at NADA Auto Show, which will continue until September 1.
At Auto Show that began on Tuesday, electric vehicles are prominent, outshining petrol vehicles.
Within the electric vehicle segment, entry-level and mid-range models are particularly popular among customers.
In the petrol vehicle category, CG Motocorp introduced the latest model of the Shift, while Hyundai unveiled the new Creta.
The event is expected to generate over Rs 20 billion in turnover, a significant occasion for the auto industry.
Gold prices stable in Nepal; silver sees increase
Gold prices in the Nepali market, on Tuesday, remained stable at Rs 152,300 per tola, unchanged from the previous day, as reported by the Nepal Gold and Silver Business Federation.
In contrast, silver prices increased to Rs 1,850 per tola. Globally, gold was trading at $2,511 per ounce, while silver was priced at $30 per ounce.
The steady gold prices locally suggest market stability, while the rise in silver prices indicates a shift in the local market dynamics.
The difference between local and international prices highlights potential disparities in market conditions or exchange rates, which may impact future trading and pricing strategies.
Bagmati province revenue falls short by Rs 9.33 billion in FY 2023/24
Bagmati Province fell short of its fiscal year 2023/24 revenue target by Rs 9.33 billion, achieving Rs 39.22 billion against a goal of Rs 48.25 billion.
Revenue distribution reached only 81.85% of its Rs 26.68 billion target, totaling Rs 21.84 billion.
Internal revenue collections met 97.52% of their Rs 3.755 billion target, while federal grants amounted to Rs 13.717 billion, 77.01% of the Rs 17.812 billion expected.
This shortfall continues from the previous year, where collections were 17% below target.
Chief Hari Prasad Upadhyay attributed the revenue gap to declines in VAT, income tax, natural resource mining tax, and land revenue, exacerbated by federal budget cuts and economic downturns.
Govt invites startup loan proposals; 21-day submission window open
The government is now accepting project proposals for startup enterprise loans. The Industrial Enterprise Development Institute (IEDI) has announced a 21-day window for eligible entrepreneurs to submit their proposals.
According to the Startup Enterprise Loan Operation Procedure, those meeting the qualifications outlined in Schedule 1 must use the specified format from Schedule 3. Details and proposal formats can be found at www.iedi.org.np.
Nepal Airlines resumes A-320 flights after repairs
Nepal Airlines Corporation (NAC) resumed regular flights for its A-320 aircraft, 9N-AKW, on Tuesday.
The plane, which had been grounded on August 24 due to technical issues, was repaired with spare parts imported from Miami.
It returned to its schedule at 11 AM. NAC Spokesperson Ramesh Paudel explained that, although regular maintenance was conducted, an unforeseen technical problem led to the grounding. As a result, pre-scheduled flights were operated using alternative aircraft.
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