Weekly Economic Update (1st April 2022 to 7th April 2022)
1. Weak financial access status in Karnali — The financial access status in Karnali Province is very weak, necessitating the establishment of more financial institutions as per a study conducted by Nepal Rastra Bank. (Source: https://risingnepaldaily.com/business/weak-financial-access-in-karnali-nrb)
2. Central Bank releases treasury — Nepal Rastra Bank issued an NPR 32.10 billion treasury bill for commercial banks, development banks, and finance firms on 4 April 2022. The total treasury to be sold is NPR 2 billion for 28 days, NPR 9 billion for 91 days, NPR 10 billion for 182 days, and NPR 11 billion for 364 days. (Source: https://english.khabarhub.com/2022/04/245340/)
3. Nepal implements an automatic pricing mechanism — The government implemented auto pricing mechanism from 3 April 2022 on transport fares, requiring carriers to hike fuel surcharge if diesel prices rise by more than 5% and decrease it if diesel prices drop. (Source: https://kathmandupost.com/money/2022/04/02/nepalis-buffeted-by-stagnant-incomes-and-high-inflation)
4. Price hikes in passenger fares — The Department of Transport Management allowed transport entrepreneurs to hike bus fares and freight charges on inter-provincial routes by 10–14% due to rising fuel costs, marking the second increase in less than a year. (Source: https://www.nepallivetoday.com/2022/04/03/govt-increases-fare-for-long-routes-and-cargo-vehicles/)
5. The price of gold increases — The price of gold increased by NPR 800 per tola in the Nepali market and is now fixed at NPR 99,700 per tola as per the Federation of Nepal Gold and Silver Dealer’s Association. (Source: https://english.khabarhub.com/2022/01/244829/)
6. Nepal records highest inflow of tourists — The inflow of 42,006 tourists in March, 2022 was the highest rate of foreign tourist arrivals in Nepal since the outbreak of COVID-19, representing a 180.5% rise over the same time the previous year. (Source: https://myrepublica.nagariknetwork.com/news/foreign-tourist-arrival-in-nepal-up-by-180-pc-in-march/)
7. The election Commission releases guideline — The Election Commission (EC) of Nepal urged national and international organizations, and individuals to register themselves with the EC if they want to observe the Nepal local elections slated for 13 May 2022. (Source: https://english.onlinekhabar.com/nepal-local-elections-observers.html)
8. Nepal and India sign four agreements — During Nepal Prime Minister’s recent visit to India, agreements on International Solar Alliance, railway assistance, petroleum product supply, and technical expertise exchange between oil corporations was signed. (Source: https://www.nepallivetoday.com/2022/04/02/nepal-india-sign-four-agreements/)
9. Government bans import of private vehicles — Due to the negative balance of payments and declining exchange reserves, Nepal Rastra Bank has directed all banks and financial institutions not to issue letters of credit (especially for import of non-essential items like private vehicles). (Source: https://english.khabarhub.com/2022/05/245530/)
10. China and Nepal sign duty-free treatment to goods — China agreed to grant duty-free treatment to items of Nepali origin covering 98% of tariff lines to promote exports and reduce Nepal’s trade deficit. There had been a decrease in exports to China since the pandemic began. (Source: https://kathmandupost.com/money/2022/04/01/experts-doubt-implementation-of-latest-trade-deal-with-china;https://mofa.gov.np/press-release-on-bilateral-talks-between-the-foreign-ministers-of-nepal-and-china/)
