Weekly Economic Update (11 April 2024- 16 April 2024)
3 min readApr 17, 2024
- MoALD allocates Rs.15 Billion for fertilizer procurement — The Ministry of Agriculture and Livestock Development (MoALD) stated that Rs 15 billion has been set aside for the procurement of chemical fertilizers. It aims to prevent any potential scarcity during the forthcoming paddy planting season. (Source :https://myrepublica.nagariknetwork.com/news/govt-earmarks-rs-15-billion-and-calls-for-tender-bids-to-import-chemical-fertilizers/)
- Partnering with the private sector to foster economic growth — Minister for Industry, Commerce and Supplies,underscored the necessity of cooperation with the private sector to achieve economic prosperity. He pledged that the government would view it as a key stakeholder, rather than just a partner. (Source: https://onlineradionepal.gov.np/en/2024/04/10/375747.html)
- E-commerce struggles in Nepal’s volatile business environment — The effects of the economic downturn, which have reduced people’s incomes, are evident in online marketplaces, with many ceasing operations and reducing their workforce. ( Source: https://kathmandupost.com/money/2024/04/14/back-to-physical-stores-e-commerce-falters-in-nepal-s-topsy-turvy-business-climate
- Global conversation on mountains, communities, and climate — In May, Nepal will be the venue for an international conference focusing on mountains and climate change. Named the ‘International Dialogue on Mountain, People, and Climate,’. It aims to gather representatives from mountainous countries, experts, and partner organizations. (Source: https://myrepublica.nagariknetwork.com/archive/154192/Nepal-to-host-Int%E2%80%99l-Dialogue-on-Mountains-and-Climate-in-May)
- Nepal’s economy expected to expand by 3.6% — Nepal’s economy is projected to expand by 3.6% in the ongoing fiscal year, compared to 1.9% growth in the previous fiscal year, as per the Asian Development Bank. ADB stated that exports are poised to increase as Nepal expands its production in the realm of electricity exports . (Source: https://kathmandupost.com/money/2024/04/11/nepal-to-grow-by-3-6-percent-in-2023-24-adb-says#:~:text=The%20report%20projects%20annual%20average,decline%20in%20inflation%20in%20India.)
- BoP positive yet domestic economy struggles -The Balance of Payment (BoP) is positive and foreign exchange reserves are at an eight-year high, the domestic economic situation is still challenging. Domestic demand is at its lowest, leading to the closure of some SMEs and putting others at risk. Large-scale industries are facing similar challenges. (Source: https://english.aarthiknews.com/economy-is-being-dogged-by-downward-spiral-in-industrial-growth)
- Women-Led tech businesses surge in Nepal’s innovation scene — Nepal is becoming a hub for innovation, led by more women. Despite being traditionally male-dominated, Nepali women entrepreneurs are breaking barriers and driving a noticeable increase in women-owned technology businesses. ( Source :https://www.b360nepal.com/detail/22169/women-impacting-the-technology-landscape-in-nepal-2024-Apr-10-959200)
- Economic slowdown challenges bank lending — Due to reduced demand in the economy, banks have had trouble increasing lending and recovering loans. During the review period, the credit-deposit ratio dropped below 80 percent, below the central bank’s limit of 90 percent. (Soruce — https://myrepublica.nagariknetwork.com/news/economic-slowdown-and-soaring-bad-debts-hit-banks-profits/
- FDI commitments increase — In the assessment period, there was a slight rise of Rs 1.98 billion in FDI commitments. A promise has been made by Foreign investors to invest a total of Rs 30.09 billion, in the first nine months of the current fiscal year. (Source: https://myrepublica.nagariknetwork.com/news/nepal-received-fdi-commitment-worth-rs-30-09-billion-in-q3/
- Nepal’s energy aspirations — Nepal is striving for energy independence, aiming to reach 20,000 megawatts of electricity production by 2029, with an excess supply, particularly during the monsoon season. (Source — https://www.dynamikeseidhseis.gr/en/nepals-bold-vision-for-energy-surplus-power-by-2029/
