KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal highlight a mix of economic and diplomatic progress.
The Nepal Stock Exchange (NEPSE) saw a modest increase of 17.80 points, closing at 2,775.85, signaling a positive market trend, with robust trading activity.
On the diplomatic front, Nepal received a significant boost from China, with the announcement of a 9 billion rupee grant to support various bilateral initiatives.
This follows a series of agreements signed during Prime Minister KP Sharma Oli’s visit to China, covering infrastructure, trade, and cultural exchanges.
Additionally, Nepal and India are advancing key petroleum pipeline projects, which promise enhanced cooperation between the two nations.
On the corporate side, Mountain Energy Nepal proposed a 15.7895% dividend for FY 2080/81, reflecting positive financial health, while cardamom prices surged due to reduced production, benefiting farmers despite past market challenges.NEPSE gains 17.80 points to close at 2,775.85 levels
The Nepal Stock Exchange (NEPSE) rose by 17.80 points, or 0.64%, to close at 2,775.85 on Tuesday, building on a gain of 19.97 points in the previous session.
The index opened at 2,772.74 and saw fluctuations throughout the day, reaching a low of 2,751.31 and a high of 2,793.03.
Trading remained robust, with a total turnover of NPR 8.52 billion, as 18,160,634 shares were traded across 307 companies in 88,775 transactions.
Nepal to receive 9 billion rupees in grant from China
The Chinese government has announced that it will provide Nepal with a grant of 500 million RMB worth 9 billion rupees. In today’s meeting between visiting Prime Minister KP Sharma Oli and Chinese President Xi Jinping, President Xi announced a grant assistance of 500 million RMB to Nepal.
Various issues of bilateral relations and interests were discussed in detail in the very cordial meeting that took place between Prime Minister Oli and President Xi.
Nepal and China sign several bilateral agreements
Several bilateral agreements were signed during Prime Minister KP Oli’s four-day official visit to China.
The visit, which began on Monday, followed a bilateral meeting between the two leaders, where a range of agreements were exchanged. Key agreements included an Agreement on Economic and Technical Cooperation, a Letter of Exchange on the Tokha-Chhahare Tunnel, a Memorandum of Understanding (MoU) on Trade Promotion Cooperation, and a Protocol detailing the requirements for the export of thermally processed buffalo meat from Nepal to China.
Further agreements included an MoU on the Development Plan for 2024-2029, a Letter of Exchange on Cash Assistance, and a Handover Certificate for the completion of the reconstruction of the nine-storey Basantapur Tower.
Other signed MoUs covered areas such as the provision of Volunteer Chinese Language Teachers and collaboration between Public Service Broadcasting Nepal Television and China Media Group.
The two sides also held discussions on a wide array of topics, including enhancing connectivity, industrial and infrastructure development, and cooperation in fields like health, agriculture, trade, tourism, investment, science, technology, sports, and disaster management.
Nepal, India hold discussions on key petroleum pipeline projects
Nepal and India discussed key petroleum pipeline projects and broader bilateral cooperation during a meeting between Nepal’s Minister for Industry, Damodar Bhandari, and India’s Minister for Petroleum, Hardeep Singh Puri, in New Delhi.
The talks focused on the Siliguri-Jhapa pipeline and the Amalekhgunj-Chitwan pipeline, along with the development of a gas pipeline in Sarlahi, the relocation of Tribhuvan International Airport’s petroleum depot, and agreements between Nepal Oil Corporation and Indian Oil Corporation.
Minister Puri assured India’s support for the projects once the integrated report from both corporations is submitted.
Mountain Energy Nepal suggests 15.7895% dividend for FY 2080/81
Mountain Energy Nepal (MEN) has proposed a 15.7895% dividend for FY 2080/81, consisting of 15% bonus shares and 0.7895% cash dividends.
The proposal is subject to approval by the Electricity Regulatory Commission and the company’s AGM.
The book closure date is set for Poush 11, meaning shareholders holding shares on that date will be eligible for the dividend and AGM participation. MEN’s stock closed at Rs. 719.00 on Monday.
Nepal, China to sign MoU on Trans-Himalayan Multi-Dimensional Connectivity Network
Nepal and China have expressed their readiness to sign a Memorandum of Understanding (MoU) on building the Trans-Himalayan Multi-Dimensional Connectivity Network and the Framework for Belt and Road Cooperation.
Both countries have committed to strengthening connectivity in areas such as ports, roads, railways, aviation, power grids, and telecommunications, with the aim of transforming Nepal from a landlocked country to a land-linked country.
Cardamom price surpasses Rs 100,000
Cardamom, often referred to as ‘Nepal’s black gold,’ is produced in only a few countries worldwide, with Nepal contributing to 60 percent of the global supply.
This year, the price of cardamom has surged significantly. Traders attribute the sharp increase in price to reduced production.
Currently, farmers are receiving prices ranging from 100,000 to 100,000 rupees per man (40 kg) as production continues to decline.
In past years, when farmers sold their cardamom, prices would typically be normal, later rising gradually, leaving farmers in a difficult position.
(Prepared by Srija Khanal)
Comment