KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy in the first half of the fiscal year 2025 shows mixed trends, with remittance growth slowing significantly—just a 4.1% increase compared to last year’s 22.2%.
The subdued growth in US dollar remittances (1.1%) reflects global challenges, though foreign exchange reserves saw a notable increase of 13.5%, helping to cushion the economy.
On the policy front, the government is addressing unsettled payments to construction entrepreneurs, with assurances from Finance Minister Bishnu Paudel that these will be settled.
Meanwhile, the arrest of Myagdi DCC Chief Thapa for embezzling Rs 1.5 billion from a cooperative raises concerns about corruption.
The power sector is seeing positive developments as IPPAN signs an MoU to acquire International Renewable Energy Certificates, signaling growth in private sector involvement in energy production.
Additionally, the gold market has remained steady, with gold prices unchanged at Rs 162,800 per tola, while the silver price dropped slightly.
Nepal Rastra Bank’s move to withdraw Rs 40 billion from the banking system highlights concerns over excess liquidity.
On a positive note, the orange industry in Tanahun is thriving, with farmers earning Rs 425 million, reflecting a strong harvest and increased production.
Overall, Nepal’s economy shows signs of both resilience and challenges amid various sectors adjusting to new dynamics.
Nepal receives Rs 763 billion in remittances in six months
Nepal’s remittance inflow in the first six months of the current fiscal year showed a modest 4.1% increase, reaching Rs 763.08 billion, signaling a slowdown compared to the 22.2% surge during the same period last year.
The growth in US dollar remittances was even more subdued at 1.1%, reflecting a significant decline from the previous year’s 19.5% rise.
While remittance growth has slowed, Nepal’s foreign exchange reserves saw a notable increase of 13.5%, reaching Rs 2.31 trillion (USD 16.84 billion) by mid-January 2025.
This suggests a more stable but less robust inflow of funds, with reserves held by Nepal Rastra Bank and other financial institutions increasing, providing some cushioning for the economy amidst a global slowdown in remittance growth.
Finance Minister pledges payment to construction entrepreneurs
Deputy Prime Minister and Minister for Finance Bishnu Paudel assured that the government would pay the outstanding amount claimed by the construction entrepreneurs in accordance with the law.
DPM Paudel said that incumbent government was experiencing sheer inconvenience due to payment obligations left unsettled by the previous government.
He, however, optimistically added that the incumbent government was now in a position to settle all due payments as per the law.
He claimed that no payment demanded as per law has been withheld so far.
Myagdi DCC Chief Thapa arrested for embezzling over Rs 1.5 billion from Cooperative
Rajkumar Thapa, the Chief of the District Coordination Committee (DCC) Myagdi, has been arrested in connection with the alleged embezzlement of over Rs 1.5 billion from a cooperative.
Thapa, along with others, is accused of misappropriating Rs 1.5 billion in savings from the Kumari Multi-Purpose Cooperative Organization based in Beni, Myagdi’s headquarters.
IPPAN signs MoU to acquire International Renewable Energy Certificates
The Independent Power Producers’ Association, Nepal (IPPAN) has signed a memorandum of understanding in acquiring the International Renewable Energy Certificates (I-RECs).
This agreement is seen with significance in the context of the share of private sector gradually increasing in the country’s power production.
The MoU was signed by IPPAN Chairman Ganesh Karki and ProClime CEO Kavin Kumar Kandasamy at a function held here recently, according to IPPAN.
Gold price steady at Rs 162,800 per tola
Gold prices in the domestic market remain unchanged on Sunday.
The Nepal Gold and Silver Dealers Federation stated that fine gold was traded at Rs 162,800 per tola, which is the same price as last Friday.
In contrast, the price of silverhas dropped by Rs 5 per tola and was traded at Rs 1,910.
Nepal Rastra Bank to withdraw Rs 40 billion from market
Nepal Rastra Bank (NRB) is set to withdraw 40 billion rupees from the banking system due to excess liquidity in the market.
The bank has scheduled the bidding process for 21 days, starting at 2 pm today (Sunday).
Bids can range from a minimum of 100 million rupees to a maximum of 50 million rupees, up to the total amount specified.
Oranges worth Rs 425 million sold in Tanahun
Farmers in Tanahun have earned Rs 425 million from the sale of oranges this year, marking a significant increase compared to the Rs 300 million earned last year.
According to authorities, both orange production and cultivation have risen this year.
Oranges were cultivated over 1,657 hectares of land, with 968 hectares yielding fruit, producing a total of 5,831 metric tons of oranges. In comparison, last year’s harvest amounted to 3,750 metric tons.
Authorities highlighted that the production is particularly strong in Devghat, Shuklagandaki, and Myagde rural municipalities.
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