Weekly Economic Update (1 December 2022– 7 December 2022)
1. NRB rescinds the 100% margin provision — Nepal Rastra Bank (NRB) has withdrawn its decision to keep a 100% margin provision on selected items such as construction material and expansible polystyrene goods imports. (Source: https://kathmandupost.com/money/2022/12/03/central-bank-eases-100-percent-margin-provision-on-some-items)
2. Seven-month-old import ban on luxury goods lifted — To meet the conditions suggested by the International Monetary Fund, the Ministry of Industry, Commerce and Supplies has lifted restrictions on luxury goods such as liquor, mobile phones, two-wheelers, and automobiles because it was going against the free-market economy ethics. (Source: https://kathmandupost.com/money/2022/12/06/nepal-lifts-seven-month-long-import-ban-on-luxury-goods)
3. Tourist arrivals reach more than half a million — According to the Nepal Tourism Board data, 542,975 international tourists visited Nepal from January to November 2022. (Source: https://myrepublica.nagariknetwork.com/news/more-than-half-a-million-tourists-arrive-in-nepal-in-eleven-months/)
4. Remittance inflow projected to increase — As per the report by the World Bank, Nepal’s remittance inflow is expected to increase by USD 8.5 billion in 2022 from USD 8.2 billion in 2021 as the travel restrictions ease in Gulf Cooperation Council countries and vaccinations rise. (Source: https://myrepublica.nagariknetwork.com/news/remittance-earning/)
5. Beni Municipality start multiple projects — Equipped with the government budget amount of NPR 90.01 million, Beni Municipality commences pride projects for five road projects, three drinking water projects, a building construction project, a sports ground construction project and a chilling centre construction project. (Source: https://english.khabarhub.com/2022/07/284052/ )
6. Import of electric vehicles exceeds 1,000 units — According to the report by the DoC, the import of electric vehicles surpassed 1,000 units in the first four months of FY 22/23 due to the increased price of petroleum products. (Source: https://urjakhabar.com/en/news/0412345311)
7. NEA earns notable profit — As per the record by Nepal Electricity Authority (NEA), the governmental corporation gained a profit of NPR 8.50 billion in the first three months of FY 22/23, because of electricity leakage regulations and increased sales to domestic and international markets. (Source: https://myrepublica.nagariknetwork.com/news/nea-earns-profits-of-rs-8-50-billion-in-q1-leakage-reduction-and-energy-export-are-the-main-contributing-factors/)
8. Mountain climbing permits double revenue collection –The Department of Tourism after collecting 48 mountain climbing permits, generated revenue of NPR 93 million, which is more than twice the amount of revenue generated last year at NPR 40.6 million. (Source: https://myrepublica.nagariknetwork.com/news/revenue-collection-from-mountain-climbing-doubles-this-year/)
9. GBIA carried out foreign trade worth over Rs 22 million– As per the records by the Department of Customs (DoC), Gautam Buddha International Airport (GBIA) imported goods worth NPR 18.68 million and exported goods worth NPR 3.89 million during mid-July and mid-November 2022. (Source: https://myrepublica.nagariknetwork.com/news/gbia-carried-out-foreign-trade-worth-over-rs-22-million-during-mid-july-and-mid-november/)
10. Central Bank mandates risk matrix for banks — To combat money laundering and terror financing, NRB released new guidelines on 4 December 2022 that require banks and financial institutions to assess the risks and probability of vulnerability related to banking products, delivery channels, customers, and geographical locations. (Source: https://kathmandupost.com/national/2022/12/05/banks-told-to-prepare-risk-matrix-to-tackle-money-laundering-and-terror-financing)
