Weekly Economic Update (14th April 2022–21st April 2022)
1. NRB governor reinstated
The Supreme Court of Nepal has reinstated the formerly suspended NRB governor Maha Prasad Adhikari through a short-term stay order. The court also issued a show cause notice to the government to present reasons behind the suspension.
2. Fuel allowance for civil servants reduced
The Ministry of Finance has decided to reduce the fuel allowances provided to civil servants by 20% amidst increasing value of petrol imports. Following the decision, government offices can only spend 80% of the remaining budget under the fuel heading.
3. Decision for tourists to bring cash for on-arrival visa on hold
The government has taken back its decision of tourists to bring cash for their on-arrival visa following criticism. Rastriya Banijya Bank has subsequently installed two ATMs and POS machines to ease digital payment, which had become cumbersome due to an increase in number of tourists.
4. Government capital expenditure lower than targeted
Upto the third quarter of current fiscal year, the government has spent NPR 103.78 billion on development projects, accounting for only 27.45% of the total allocated capital budget.
5. Nepal Airlines Corporation to fly to Saudi Arabia
After receiving permission from the Civil Aviation Authority of Nepal, Nepal Airlines Corporations will fly to Riyadh, Dammam and Jeddah of Saudi Arabia from 22 April 2022 on a regular basis.
6. NPR 1 trillion worth of investment commitment received
The Investment Board Nepal has received NPR 1 trillion worth of investment commitments from domestic and foreign investors for 31 big projects in the country. Investments worth NPR 300 billion are expected to be received within the next 3 years.
7. Deposit decreased by NPR 10 billion in one day
The total deposits received by Banks and Financial Institutions (BFIs) decreased by NPR 10 billion on April 17 compared to the previous day. The banking system had NPR 49.62 trillion on April 16, which declined to NPR 49.52 trillion the following day.
8. Government revenue does not meet target
The Inland Revenue Department has only collected revenue of NPR 343 billion by the third quarter of current fiscal year, which is NPR 32 billion less than its target of NPR 373 billion. Revenue collection was lower than targeted in value added tax (VAT), income tax, and tax on interest of Banks and Financial Institutions.
9. Hotels remove uniform pay
The hotels of Nepal have decided to remove the uniform pay structure which was introduced during COVID-19 to avoid layoffs. The employees of hotels will be paid according to their pay grade.
10. Woolen carpets exports rising
The exports of woolen carpets reached NPR 5.89 billion in the first eight months of current fiscal year, which represents a 24% growth compared to the same period last year.