Weekly Economic Update (18 November 2022 to 24 November 2022)
1. DoT collects NPR 93 million in royalties– The Department of Tourism (DoT) has collected over NPR 93 million in royalties from issuing 1,435 climbing permits for this year’s autumn climbing season. (Source: https://thehimalayantimes.com/business/dot-collects-rs-93-million-in-royalties)
2. Import ban under review– Nepal is reviewing its import ban on luxury products after concerns were raised by the International Monetary Fund (IMF) on the long-run impacts of the ban. The IMF will start its own review of Nepal by November-end to release the second instalment of USD 55 million for the extended credit facility. (Source: https://kathmandupost.com/money/2022/11/24/nepal-reviewing-import-ban-after-imf-prodding)
3. Government to import fertilizer from Singapore — Swiss Singapore, a Singaporean company, has been selected to supply 50,000 metric tons of chemical fertilizers worth NPR 5 billion to Nepal. The government will also be receiving chemical fertilizers from India starting next week. (Source: https://myrepublica.nagariknetwork.com/news/swiss-singapore-to-be-awarded-contract-to-supply-fertilizer-worth-rs-5-billion/)
4. Imports of agro products fall — Imports of agricultural products have declined by 32% in the first three months of the current fiscal year to NPR 69.13 billion. Reasons for the decrease include government policies that discourage imports, increasing prices lowering demands and rising preference for domestic production. (Source: https://myrepublica.nagariknetwork.com/news/imports-of-agro-products-down-by-32-percent-in-q1-of-current-fy/)
5. Trade deficit declines– Nepal’s trade deficit has declined by 19.79% in the first four months of the current fiscal year due to a heavy fall in import expenses. The decline is attributed to the government-imposed restrictions on luxury items. The export earnings also decreased by one-third in the same period. (Source: https://myrepublica.nagariknetwork.com/news/nepal-s-trade-deficit-declines-19-79-percent-during-mid-july-to-mid-november/)
6. Electricity worth NPR 10.38 billion sold to India– Nepal has exported electricity worth NPR 10.38 billion to India in the five months since early June and mid-November. Electricity has become one of Nepal’s largest exports. (Source: https://kathmandupost.com/money/2022/11/23/inland-revenue-honours-big-taxpayers)
7. Slow progress in constructing new dry ports– The construction of a number of dry ports in the southern and northern border points has slowed down, mainly due to the impacts of the COVID-19 pandemic. Many are still in the initial phases, while the Rasuwa dry port and the Nepalgunj Integrated Check Post are seeing slow progress. (Source: https://kathmandupost.com/money/2022/11/23/construction-of-new-dry-ports-slows-down)
8. Swiss government to fund branding of yak dairy products– The Swiss government will be collaborating with the government of Province 1 to provide a fund for branding Solukhumbu’s yak dairy products. The fund has been awarded to the proposal of Yak and Chauri Traders Association Nepal. (Source: https://thehimalayantimes.com/business/swiss-government-to-provide-fund-for-branding-yak-dairy-products)
9. Grant to strengthen indigenous people and local communities– The World Bank and Rural Reconstruction Nepal have signed a USD 4.5 million five-year grant. It will be dedicated to supporting indigenous people and local communities to build livelihoods through small-scale forest and non-forest-based business and employment opportunities. (Source: https://kathmandupost.com/money/2022/11/20/yak-jerky-market-booms-in-nepal-s-himalaya)
10. NAC requests for ground handling rights — Nepal Airlines Corporation (NAC) has requested the Civil Aviation Authority of Nepal (CAAN) to give it the ground handling rights of the Pokhara Regional International Airport (PRIA). Currently, the corporation is operating flights to 10 different destinations. (Source: https://myrepublica.nagariknetwork.com/news/nac-requests-caan-to-provide-ground-handling-rights-of-pokhara-airport/)
