KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On a day marked by significant volatility, the NEPSE Index saw a slight increase of 0.24%, closing at 2,830.16 amid robust trading.
The Birgunj Transport Management Office reported a revenue surge to over Rs 1.5 billion and the registration of 38,456 new vehicles in the fiscal year 2080/81 BS.
Meanwhile, gold and silver prices in Nepal remained stable, despite fluctuating international values.
In aviation, a contentious blame game between CAAN and pilots has overshadowed safety concerns, while Nepal Airlines faces a severe debt crisis, operational inefficiencies, and leadership issues, prompting potential changes in management.
NEPSE Index edges up 0.24% amidst volatile trading day
The Nepal Stock Exchange (NEPSE) Index on Tuesday increased by 6.90 points, or 0.24%, closing at 2,830.16.
This modest gain followed a significant rise of 127.32 points in the previous session, which saw the index end at 2,823.25.
The trading day exhibited considerable volatility, with the index opening at 2,834.42, reaching a high of 2,860.43, and a low of 2,802.92 before settling at the closing figure.
Trading was robust, involving 328 stocks across 144,197 transactions, with a total of 30,599,890 shares traded and a turnover of Rs. 13.57 billion.
Market capitalization rose to Rs. 4.49 trillion, and float market capitalization increased to Rs. 1.58 trillion.
Birgunj Transport Management Office boosts revenue to over Rs 1.5 billion, registers 38,456 new vehicles
In the fiscal year 2080/81 BS, the Transport Management Office of Birgunj reported a notable revenue collection exceeding Rs 1.5 billion, an increase of Rs 171.9 million from the previous fiscal year’s Rs 1.35 billion.
Chief Kamal Raj Gautam described this growth as encouraging. The revenue from vehicle-related fees was Rs 1.19 billion, with an additional Rs 150 million from vehicle permits.
During this period, the office registered 2,229 commercial vehicles (buses, trucks, and machinery), 645 non-commercial vehicles (cars, jeeps, microbuses, and ambulances), and 747 motorcycles and scooters.
Overall, 38,456 new vehicles were registered in the last fiscal year, reflecting a significant expansion in both revenue and vehicle registrations.
Gold and silver prices hold steady in Nepal amidst fluctuating international markets
In the Nepali market on Tuesday, both gold and silver prices have remained stable.
The Federation of Nepal Gold and Silver Traders reported that gold is maintaining its price at Rs 152,000 per tola, consistent with Monday’s rate.
Similarly, silver is priced at Rs 1,775 per tola. In contrast, the international market values gold at $2,494 per ounce and silver at $28.36 per ounce, as per global market data.
This stability in domestic prices reflects a period of equilibrium in the local precious metals market amidst fluctuating international values.
CAAN and pilots exchange blame for aviation accidents as safety concerns mount
The Civil Aviation Authority of Nepal (CAAN) and pilots are locked in a blame game over aviation accidents rather than focusing on prevention.
Recently, CAAN Director General Pradeep Adhikari blamed pilots for crashes, sparking criticism from the pilot community.
They argue that CAAN’s attempt to shift blame disregards other factors such as weather, air traffic control, and technical issues.
Despite acknowledging that multiple parties contribute to accidents, Adhikari attributed 98 of 109 total accidents to pilot errors.
The CAAN’s handling of aviation safety has faced scrutiny, especially after recent crashes and criticism of Adhikari’s leadership.
Calls for his suspension have emerged amid concerns over his capability and responsibility.
Nepal Airlines faces Rs 51 billion debt crisis amidst operational failures and leadership concerns
Nepal Airlines Corporation (NAC), the state-owned carrier, is burdened with Rs 51.26 billion in debt, exacerbated by its inability to expand operations and manage aircraft efficiently.
The debt, accumulated from unutilized Chinese aircraft, frequent grounding, and poor management, has led to defaults on loans from the Citizens Investment Trust (CIT) and Employee Provident Fund (EPF).
Despite recent payments of Rs 439.55 million, NAC has struggled to secure a concessional loan to alleviate its financial strain.
The airline’s operational issues include only two of four international aircraft in use and a reduced domestic market share.
The Ministry of Culture, Tourism, and Civil Aviation (MoCTCA) is considering leadership changes due to ongoing financial mismanagement and service disruptions under Executive Chairman Yubraj Adhikari.
(Prepared by Srija Khanal)
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