May 20
Weekly Economic Update (13 May 2022 to 19 May 2022)
1. Local elections 2022 held: Local elections were held on 13 May 2022 for electing people’s representatives to govern the 753 local governments for the next five years. The election was held in a single phase, with the Election Commission setting up 10,756 polling stations and 21,955 voting booths across the country. (Source: https://election.gov.np/admin/public//storage/Local%20Election/Press%20Release/Press%20Release.pdf)
2. Second international airport inaugurated: The Gautam Buddha International Airport in Bhairahawa, Nepal’s second international airport, was formally inaugurated on 16 May 2022, marking a historic occasion that reflects Nepal’s decentralization efforts. (Source: https://kathmandupost.com/visual-stories/2022/05/16/gautam-buddha-international-airport-comes-into-operation)
3. Limited sufficiency of foreign exchange reserves: Based on the surging imports in the current fiscal year, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 7.4 months. (Source: https://www.nrb.org.np/contents/uploads/2022/05/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Nine-Months-data-of-2021.22.pdf)
4. Price hike in petrol, diesel, and kerosene: The price of petrol, diesel and kerosene hiked by NPR 10 per liter each to reach at NPR 170, NPR 153, and NPR 153 per liter respectively in accordance with the government’s new auto pricing mechanism. (Source: https://kathmandupost.com/national/2022/05/17/government-hikes-public-transport-and-cargo-fares-again)
5. Plans for the budget of upcoming FY 2022/23: The Ministry of Physical Infrastructure and Transport intends to prioritize finalizing the multi-year big projects that are already under construction rather than proposing new big projects in the budget for the upcoming FY 2022/23. (Source: https://myrepublica.nagariknetwork.com/news/govt-to-give-priority-to-previous-year-s-big-projects-in-new-budget-physical-infrastructure-and-transport-ministry/)
6. Growth Enterprises Promotion Programme Work Procedure started: The Ministry of Industry, Commerce, and Supplies launched the Growth Enterprises Promotion Programme Work Procedure 2022, which aims to help small, micro, and cottage businesses grow into medium-sized businesses by increasing production, employment, and technology use. (Source: https://kathmandupost.com/money/2022/05/18/growth-enterprises-promotion-programme-work-procedure-comes-into-force)
7. Nabil bank to provide advisory services: Nabil Bank and the Office of Investment Board Nepal have entered into an agreement to promote Nepal’s economic growth by offering financial advisory services to foreign investors and attracting FDI by showcasing investment prospects in the country. (Source: https://english.khabarhub.com/2022/19/253117/)
8. Bilateral agreement signed between Nepal and India: Nepal and India signed a bilateral MoU for the construction of 490.2 MW Arun-4 hydropower project, under which Nepal has the right to purchase electricity generated by the project if it can afford it. (Source: https://thehimalayantimes.com/business/nepal-india-sign-mou-to-construct-arun-4-hydropower-project)
9. Price of gold surges: The price of gold has decreased by NPR 500 per tola and stands at NPR 96,300 per tola according to the Federation of Nepal Gold and Silver Dealers’ Association. (Source: https://english.khabarhub.com/2022/19/253116/)
10. Agreement signed for conserving heritages: Nepalese Heritage Society and NMB Bank signed an agreement to conduct programs connected to the conservation and promotion of national heritages to create a clean, culturally diverse, and environmentally friendly country. (Source: https://myrepublica.nagariknetwork.com/news/nhs-and-nmb-bank-sign-agreement-to-conserve-national-heritages/)
