Weekly Economic Update ( 08 December 2023- 14 December 2023)
1) Economic conditions force the closure of 177 SMEs
Parsa’s economic conditions have negatively impacted SMEs, with 177 factories closing in 2022/23 due to lack of loans and capital, and 75% of Nepal’s cottage and small enterprises closing.
https://english.onlinekhabar.com/economy-closes-smes-parsa.html
2) Nepal generates NPR 15 billion worth of electricity
The Nepal Electricity Authority (NEA) has exported NPR 15.238 billion worth of electricity to India in six months, despite a daily demand deficit of 1,700 megawatts.
https://english.onlinekhabar.com/nepal-monsoon-electricity-export.html
3) NRB unveils first quarter review of monetary policy
The Nepal Rastra Bank has revised its monetary policy for the current fiscal year, reducing bank rates from 7.5% to 7%, maintaining policy rates at 5.5%, and decreasing counting debentures provision.
https://english.onlinekhabar.com/nrb-review-monetary-policy.html
4) Government allocates funds for employment
The government plans to invest NPR 6 billion in a local initiative to create 60,000 job opportunities, offering minimum wages of NPR 668 per day for up to 100 days.
5) Government delays payment to farmers
Nepal sugarcane farmers face delays in receiving NPR 520 million in subsidies, with political connections exacerbated. The full amount remains pending, with Sarlahi, Nawalparasi, and Kanchanpur districts unsupported.
6) Revenue collection falls short
Nepal’s government faces financial difficulties due to a deficit exceeding subsidies, necessitating public debt raising and domestic debt mobilization.
7) Tea industry in crisis due to government policies
Nepal’s tea industry faces challenges such as not being classified as an agricultural product, electricity tariff issues, and the absence of an auction market, causing concerns about its future.
https://english.onlinekhabar.com/tea-industry-faces-crisis.html
8) Government to receive NPR 5.9 billion grant
The German government is set to provide NPR 5.9 billion in grant assistance to Nepal, finalizing loan agreements from the World Bank, Saudi Arabia, and the Indian government.
https://myrepublica.nagariknetwork.com/news/govt-to-receive-rs-5-9-billion-grant-from-germany/
9) NTA revokes internet licenses of three companies
The Nepal Telecommunication Authority (NTA) has revoked the internet service licenses of United Telecom Limited, Max Net Solutions Pvt Ltd, and Chitwan Network Pvt Ltd for non-renewal of permits.
10) Banks reduce interest rates
Commercial banks like NIC Asia Bank and NMB Bank have reduced fixed deposit rates by one percentage point following Nepal Rastra Bank’s policy adjustments, aiming to respond to economic slowdown pressures.
