Weekly Economic Update (19 August 2022 to 25 August 2022)
1. Electricity worth nearly NPR 2 billion exported: The Nepal Electricity Authority (NEA) exported electricity worth NPR 1.84 billion in the first month of FY 2022/23 (mid-July to mid-August) to India. The NEA has managed to earn an average of NPR 59.3 million per day from the electricity export.
2. Ten construction companies blacklisted: The Public Procurement Monitoring Office (PPMO), on August 24, barred 10 companies from participating in public procurement for one to three years. Shailung Construction has been barred from participating in public procurement for the next three years.
3. Sharp decline in imports of EVs above 100 kW: Following the government’s decision to levy excise duty on top of the existing customs duty on electric vehicles (EVs) above 100 kW capacity, the imports of EVs above 100 kW declined by 90% in the first month of the current fiscal year.
(Source: https://www.customs.gov.np/page/fts-fy-207980)
4. Himalayan Vegan Festival 2022: World Vegan Organization Nepal is organizing the “Himalayan Vegan Festival 2022” in Lumbini, Kathmandu, and Pokhara from September 12 to 20 to increase public awareness of the benefits of a plant-based diet and to advance plant-based culinary tourism in Nepal.
5. 50% discount on ground handling fees at GBIA: In an effort to entice firms to operate their flights from Gautam Buddha International Airport (GBIA)in Lumbini, the Civil Aviation Authority of Nepal (CAAN) has decided to offer a 50% discount on ground handling fees to international airline companies operating regular flights to and from GBIA.
6. Nepali nurses to work in the UK’s health sector: Nepal and the United Kingdom have signed a memorandum of understanding (MoU) to recruit Nepali healthcare professionals in the UK’s health sector. The application process will start by the first half of 2023.
7. US to provide USD 15 million to address food crisis: The United States Agency for International Development (USAID) will be providing USD 15 million to Nepal to help avert food crisis as part of US President Joe Biden’s pledge to address the crisis during the G7 Leaders’ Summit in Germany.
(Source: https://kathmandupost.com/money/2022/08/22/us-extends-15-million-to-nepal-to-tackle-food-crisis)
8. Nepal’s trade deficit decreases: In the first month of FY 2022/23, Nepal’s trade deficit dropped 10.38% to NPR 116.47 billion, compared to the same period in FY 2021/22. Nevertheless, while Nepal’s import decreased by 12.90%, exports decreased by 28.68% in the first month of FY 2022/23.
9. Samsung to manufacture its TVs in Nepal: South Korean multinational company Samsung has announced its collaboration with Nepali company Him Electronics for the construction of a TV manufacturing factory in Nawalparasi, Nepal. The plant is set to start production in 2023.
10. NRB puts cap on working capital loans: The Nepal Rastra Bank (NRB) has tightened the noose on working capital loans issued by banks and financial institutions (BFIs) for businesses with up to NPR 20 million in annual transaction to 20%. The BFIs can, however, issue such loans of up to 40% of total yearly transaction volume in special cases.
