Weekly Economic Update 10 September — 16 September 2021
1. The Government of Nepal and the World Bank signed an NPR 5.87 billion agreement for the development of Nepal’s education sector and strengthen the health sector.[1]
2. The Nepal Electricity Authority and Power Grid Corporation of India signed an agreement on 8 September 2021 to jointly invest in building the Indian portion of the 400 kV Butwal-Gorakhpur cross-border transmission line.[2]
3. With the House of Representatives failing to pass the budget replacement bill on 14 September, Nepal is facing a “Budget Holiday”, meaning that the government would not be able to spend from the state coffers until the bill is passed.[3]
4. As per the Department of Tourism, over NPR 23 million has been collected as revenue from the issuance of autumn climbing permits in the current fiscal year. 25 expeditions for 230 climbers have been given the autumn climbing permits as of 14 September 2021.[4]
5. Following the amendment in the Nepal-India railway service agreement, the first container train operated by India’s private sector arrived in Sirsiya dry port on 15 September 2021, ending the 17- year monopoly of state-owned Container Corporation of India.[5]
6. The Nepal Rastra Bank issued the “Unified Directive on Payment System- 2078” on 15 September, relaxing the daily transaction limit for digital payments in Nepal. Users will now be able to transfer up to NPR 200,000 per day through mobile banking/ QR codes and NPR 2 million per day via internet banking.[6]
7. Presenting a replacement bill in the parliament on 10 September, the Deuba government downsized the federal budget of NPR 1.64 trillion brought by the Oli government to NPR 1.63 trillion.[7]
8. The Nepal Rastra Bank issued a notice on 9 September deeming cryptocurrency trading and mining in Nepal illegal and punishable as per existing laws.[8]
9. The energy secretary-level joint committee of Nepal and Bangladesh on 14 September agreed on carrying out short term cross-border electricity trade using Indian transmission lines.[9]
10. As per the revised federal budget for FY 2021/22, the government has decided to levy a 1% advanced tax on any income generated through uploading any type of audio-visual content on social media platforms.[10]
Sources:
[1] https://myrepublica.nagariknetwork.com/news/world-bank-to-provide-assistance-of-rs-5-87-billion-to-nepal/
[2] https://kathmandupost.com/money/2021/09/10/nepal-india-sign-deal-to-build-butwal-gorakhpur-power-line
[3] https://myrepublica.nagariknetwork.com/news/nepal-faces-budget-holiday-from-wednesday-midnight/
[4] https://english.khabarhub.com/2021/16/209568/
[5] https://kathmandupost.com/money/2021/09/15/first-private-container-train-from-india-arrives-in-birgunj
[6] https://thehimalayantimes.com/business/nepa-rastra-bank-increases-cap-on-digital-transaction
[7] https://thehimalayantimes.com/business/govt-downsizes-budget-size-to-rs-163-trillion-chronic-patients-to-receive-rs-5000-montly
[8] https://english.khabarhub.com/2021/10/208401/
[9] https://myrepublica.nagariknetwork.com/news/nepal-b-desh-agree-on-cross-border-power-trade/
[10] https://thehimalayantimes.com/business/youtube-generated-income-subject-to-one-per-cent-advanced-taxation
