Weekly Economic Update (19 January 2024– 25 January 2024)
1. Nepal Airlines Seeks Financing: The over-indebted Nepal Airlines Corporation, formally requested NPR 135 billion from global lenders, largest loan sought by Nepali company internationally with a fixed interest rate and 25-year repayment period.
2. Youths Seeking Foreign Employment Decline: Over 343,000 individuals acquired foreign work permits in the first half of fiscal year 2080/81, a 20% decrease from last year. Almost all Nepali migrant workers are between 18 and 44 years’ age group.
3. Nepal Government Unveils National Action Plan: Ministry of Labor, Employment and Social Security (MoLESS) has initiated the National Action Plan on Business and Human Rights for responsible business conducts and strengthening human rights norms, effective from 2024 to 2028.
4. Credit Flow to Industrial Sector Increases: The central bank’s latest report shows a 10.8% rise in industrial credit flow in current fiscal year 2022/23, a recovery from an 8.5% decline due to ease in liquidity crunch, reduced interest rates and refinancing facility.
(Source: https://www.newbusinessage.com/Articles/view/20052)
5. MoU on Cement Production: The government signed an MoU with Cement Producers’ Association aiming for sustainable cement production in Nepal utilizing limestone calcined soil technology, which promises a 40% reduction in carbon emissions along with decreased coal imports.
(Source: https://myrepublica.nagariknetwork.com/news/mou-signed-for-environment-friendly-cement-production/)
6. Nepal’s Per Capita Debt Crosses NPR 90,000: Nepal’s public debt reached Rs 2.384 trillion in the first half of the current fiscal year. The public debt accounted for 44.3 % of the country’s gross domestic product (GDP), while the per capita debt has crossed NPR 90,000.
7. Sixth Nepal Agritech Expo: The ‘Sixth Nepal Agritech Expo’ will be held on January 26–28 2024, aiming to create an international meeting point in Nepal for all stakeholders across the agricultural sector, promoting commercialization and modernization through technology adoption.
(Source: https://nepaldesk.com/news/sixth-nepal-agritech-expo2024)
8. Cabinet Approves Green Hydrogen Production: The government’s approval of Green Hydrogen Policy allows for the official production and utilization of green hydrogen in Nepal. Kathmandu University was piloting on hydrogen production with a laboratory, a hydrogen vehicle, and a refueling station. Top of Form
(Source: https://risingnepaldaily.com/news/37785)
9. MoFAGA Working on Enhancing Employment: The Ministry of Federal Affairs and General Administration (MoFAGA) is set to establish the legal and policy framework for ‘Domestic Employment Promotion Decade’ aiming to enhance employment agencies and their services.
10. Nepal’s Export Earnings: In the first half of the current fiscal year 2023/24, Nepal’s import-export ratio is 10.25%, indicating NPR 10.25 spent on imports for every NPR 1 earned from exports with the largest import expenditure on petroleum products.
