KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The economic landscape in Nepal is marked by several critical developments, including the entanglement of key infrastructure projects in World Bank loans and a rising debate within the Nepal Stock Exchange (NEPSE) about employees engaging in share trading.
While the provincial governments have taken the lead in capital expenditure, surpassing the federal government, concerns are mounting over the safety of World Bank-funded roads, as evidenced by the tragic landslide along the Tribhuvan Highway.
Meanwhile, the NEPSE saw a decline in stock market performance, despite strong trading activity, amidst growing controversy over insider trading.
Additionally, Nepal’s growing tourism industry, particularly in Upper Mustang, indicates a positive economic trend.
These developments reflect a complex economic environment, where infrastructure challenges, market regulation issues, and regional economic progress intersect.
Nepal’s key roads are entangled in World Bank loans, with the provincial government leading the charge in capital expenditure among the three levels of government.
Meanwhile, the Nepal Stock Exchange (NEPSE) saw a decline on the last day of stock trading this week.
Experts have differing views on the issue of NEPSE employees buying and selling shares.
Nepal’s lifeline turning into a deathtrap due to World Bank loans
On the night of September 27, a devastating landslide, including one in the Jhaple River along the Nagbeli hill road on the Kathmandu side of the Tribhuvan Highway, swept away passenger vehicles, killing at least 35 people.
Even hours after the disaster, rescue teams couldn’t access the site where the vehicles were buried.
The road, widened under World Bank conditions, was blocked by landslides from Nagdhunga, the starting point of the road.
Despite the mobilization of the entire state machinery, there was no way to clear the debris on that road.
NEPSE employees and share trading: A policy debate
A heated debate is currently ongoing within Nepal Stock Exchange Limited (NEPSE) about whether employees, including high-ranking officials, should be allowed to buy and sell shares.
The main concern is whether such trading should be viewed as insider trading and a conflict of interest.
Information received by Khabarhub reveals that some NEPSE employees actively trade shares.
Last Sunday, Khabarhub reported that Niranjan Phuyal, the second-highest-ranking official at NEPSE, had also been trading shares through broker number 50 using NEPSE’s data system.
Provincial govts leading in capital expenditure
The provincial governments have surpassed the federal government in capital expenditure.
According to the consolidated financial statements for the fiscal year 2080/081 BS released by the Office of the Comptroller and Auditor General, provincial governments led all three levels of government in capital expenditure.
In the last fiscal year, provincial governments had an actual current expenditure of NPR 72.27 billion, while capital expenditure amounted to NPR 112.32 billion, with total expenditures reaching NPR 184.11 billion.
Stock market drops after 6 consecutive days of growth
The Nepal Stock Exchange (NEPSE), which had risen for six consecutive days, saw a dip on Thursday.
On Thursday, NEPSE dropped by 18.14 points, closing at 2635.09 points.
Despite the decline of 0.68%, trading activity increased. A total of 15.7 million shares worth NPR 7.30 billion were traded.
Share prices of 55 companies rose, while 180 companies saw their prices fall. Seven companies saw their share prices remain stable.
8th edition of ‘Birat Expo’ Set for January 24
The Morang Industry Organization will host the eighth edition of the Birat Expo at the Degree Campus Grounds in Biratnagar from January 24.
The expo aims to support the national economy through industrial and economic development.
This year’s theme, ‘Digital Koshi: Bridging Innovation and Investment,’ focuses on fostering business exchanges, enhancing entrepreneurial relations, introducing new technologies, and inspiring youth to become entrepreneurs with the latest business ideas.
Upper Mustang sees surge in tourist arrivals
Upper Mustang witnessed a significant increase in tourist arrivals in 2024.
According to the Lomanthang office of the Annapurna Conservation Area Project (ACAP), the number of tourists visiting the area rose by 14.20% compared to 2023.
In 2023, as many as 3,484 foreign tourists visited Upper Mustang, while 4,061 foreign tourists visited the region in 2024.
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