Weekly Economic Update (02 February 2024–08 February 2024)
1. Legal Challenge in Power Trade Agreement
A Supreme Court petition argued that the 10,000 MW 25-year Nepal-India power trade agreement endangers Nepal’s interests, allowing India to exploit its water resources and also raising questions about whether the bilateral relation is being politicized.
2. Investment in Gender and Climate Financing
To increase financial access for smaller business in Nepal, International Finance Corporation (IFC) is investing NPR 7.4 billion in Global IME Bank Limited (GIBL), Nepal’s largest commercial bank, for gender, climate and for on-lending to SMEs.
3. Government Aims GDP Growth for Next Five Years
The National Planning Commission, in its draft of the 16th Plan, has set a target of raising the country’s GDP to around NPR 8.5 trillion by fiscal year 2028/29, with the economic growth target at 7 to 8.5%.
4. Ride-Sharing Service Gets Legal Status
The ride-sharing service, which was launched in 2017, has been listed as a service-oriented industry under the ‘Industrial Enterprises Act 2020’ giving the ride-sharing companies a legal status.
Source: https://kathmandupost.com/national/2024/02/06/ride-sharing-service-gets-legal-status-in-nepal
5. More Spending on Studying Abroad Than on Tourism
Nepal spent nearly 50% more in financing students to study abroad (NPR 58.94 billion) than earning from foreign tourists (NPR 39.50 billion) during the first half of the current 2023/24 fiscal year.
6. FNCCI urges NRNs to invest in Nepal
Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged the Non-resident Nepalis (NRNs) in Qatar to invest in in tourism, infrastructure development, renewable energy and agriculture sectors in Nepal, capitalize and make profits.
Source: https://www.msn.com/en-xl/asia/nepal/fncci-prez-urges-nrns-in-qatar-to-invest-in-nepal/ar-BB1hlBBm
7. Remittance jumps by 25%
Remittance inflows to Nepal surged by 25.3% to NPR 733.22 billion year-on-year in first quarter of fiscal year 2023/24, linked to increased migrant worker departures and the appreciation of the US dollar against the Nepali rupee.
Source: https://kathmandupost.com/money/2024/02/07/money-foreign-workers-send-home-jumps-by-25-percent
8. Hetauda Cement Industry resumes production
Hetauda Cement Industry resumed cement production after a 3.5-month hiatus, halted by a coal shortage amid a financial crisis. To address capacity issues from worn-out machines, the industry plans to install new equipment.
Source: https://myrepublica.nagariknetwork.com/news/hetauda-cement-industry-resumes-production/
9. NCHL rolls out card payment central infrastructure
NCHL has chosen ACI Enterprise Payments Platform for the establishment and operation of National Payment Switch (NPS) that includes interoperability of card-based transactions and the rollout of a domestic card scheme for Nepal (NEPALPAY).
10. Financing for the start-up enterprises
Start-ups can now access subsidized loans up to NPR 2.5 million at 3% annual interest rate across 16 eligible areas attributed to the ‘Start-up Enterprises Credit Operation Working Procedure 2023’ implementation.
