KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape faces significant challenges, as the trade deficit has soared past Rs 460 billion within the first four months of the current fiscal year, according to the Customs Department.
During this period, imports reached Rs 513.38 billion, while exports were disappointingly low at Rs 52.67 billion, resulting in a staggering trade deficit of Rs 460.71 billion out of a total foreign trade of Rs 566.5 billion.
Notably, the trade deficit with India, Nepal’s largest trading partner, has exceeded Rs 281 billion, driven by substantial imports of diesel, petrol, and LP gas.
In terms of exports, carpets emerged as a key product, contributing Rs 3.6 billion, followed by soybean oil and tea.
On a brighter note, energy production is gaining momentum, with the successful connection of the Sanjen Hydropower Project to the national grid, which can generate 42.5 megawatts.
Additionally, three hydropower projects have been completed in Rasuwa, adding 168 MW to the national system.
Meanwhile, preparations for the Mundhum Trail Visit Year 2025 are underway, aiming to attract 100,000 tourists by promoting the newly explored trail in Bhojpur and surrounding districts, showcasing Nepal’s potential in both energy production and tourism.
Country’s trade deficit exceeds Rs 460 billion in four months
Country’s trade deficit has crossed Rs 460 billion in the first four months of the current fiscal year.
As per the details released by the Customs Department, the country has imported goods worth Rs 513.38 billion while the export was limited to just Rs 52.67 billion during the first four of the current fiscal year ending mid-November.
Out of the total Rs 566.5 billion of foreign trade, Nepal witnessed a trade deficit of Rs 460.71 billion in four months, the Department said.
According to the Department, the imports increased by 0.17 percent and exports by 4.16 percent compared to the same period of the last fiscal year.
Nepal’s trade deficit with India crosses Rs 281 billion
Nepal’s trade deficit with India, the largest trading partner, has crossed Rs 281 billion while the trade deficit with India is more than Rs 103 billion during the four months.
In the four-month period, Nepal imported diesel worth Rs 29.4 billion, petrol of Rs 21.56 billion and LP Gas of Rs 18.85 billion.
Likewise, iron related goods and smartphones also topped the rank of the imported goods.
Nepal exported carpet of Rs 3.6 billion in four months
Nepal exported carpet of Rs 3.6 billion as the key exportable goods in the four months followed by soyabean oil of Rs 3.41 billion, tea of Rs 2.21 billion and cardamom of Rs 1.9 billion.
Power from Sanjen Hydro Project connected to national grid
The power produced by the Sanjen Hydropower Project has been connected to the national grid.
The project based in Amachodingmo-5, Rasuwa has a capacity of producing 42.5 megawatts of power.
The first unit of the electricity generated from Sanjen has been connected to the national transmission line after all technical tests were successfully completed, shared the project’s sub-engineer, Robin Koirala.
Five megawatts of electricity were generated from one unit on Friday. Preparations are underway to test the remaining two units of the project and connect them to the central system by Sunday, said the company’s CEO Arpan Bahadur Singh.
Three hydropower projects completed in Chilime
The construction of three hydropower projects in Rasuwa, led by Chilime Hydropower, a subsidiary of the Nepal Electricity Authority (NEA), has been successfully completed.
The projects have collectively added 168 MW of electricity to the national transmission system, as reported by the Authority.
All three projects are now connected to the national grid via the 220/132/33 KV substation established by the NEA at Thambuchet, Amachhodingmo Rural Municipality in Rasuwa.
The completed projects include the 14.8 MW Upper Sanjen, the 42.5 MW Sanjen, and the 111 MW Rasuwagadhi hydropower plants.
Construction of 135 MW Manang Marsyangdi HP starts
Financial closure for the 135 MW Manang Marsyangdi Hydropower Project (MMHP) has been secured with the signing of the Loan Agreement with EXIM Bank, China.
Accordingly the EXIM Bank shall provide 175,250,000 USD while the remaining of estimated cost of 323,000,000 will be met through other sources.
Butwal Power Company Limited, Chinese investors SCIG International Ltd, Xincheng International Investment Co. Ltd, and QYEC International Co. Ltd. and their joint venture company SCIG International Nepal have joint investment in Manang Marsyangdi Hydropower Project Company Limited (MMHCPL).
Sinohydro Bureau 7 C0. Ltd., China has already started the construction of MMHP and is estimated to complete the project within 42 months.
Mundhum Trail Visit Year 2025 expect to attract 100,000 visitors
Preparations are going on in full-swing to launch the Mundhum Trail Visit Year 2025 on coming New Year Day, January 1.
The tourism-oriented campaign aims to attract at least 100,000 tourists within 2025 whilst promoting the newly explored trail that lies in Bhojpur and its adjacent districts such as Khotang, Solukhumbu and Sankhuwasabha.
The campaign is spearheaded by the Maiyung-Temke-Salpa-Silingchung Tourism Promotion Centre.
(Prepared by Srija Khanal)
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