Weekly Economic Update (20 January 2023 to 26 January 2023)
1. NRB annuls cash margin requirement for import– Nepal Rastra Bank (NRB) has removed the provision of cash margin, which importers need to maintain against their letters of credit. Earlier, they were required to maintain a cash margin of 5–10% of the value of goods. (Source: https://myrepublica.nagariknetwork.com/news/nrb-annuls-cash-margin-requirement-for-import/)
2. Illegal crushers allowed to operate temporarily– The government has decided to allow “illegal” crusher plants to operate temporarily, as the shortage of riverbed materials was affecting the development work. However, the crushers have to be registered and pay taxes by mid-July of 2023. (Source: https://kathmandupost.com/money/2023/01/25/illegal-crusher-plants-allowed-to-operate-temporarily-as-construction-projects-come-to-halt)
3. Fuel dealers urged not to sell flammable products in jars– The District Police Range of Kathmandu has requested petroleum dealers to sell petroleum products only by directly filling the vehicles and not in jars/openly. Dealers were also warned of legal action under existing laws against anyone going against the request. (Source: https://thehimalayantimes.com/business/fuel-dealers-urged-not-to-sell-flammable-products-in-bottles-jars)
4. Silver Heritage Investment to remove illegal structures– Rupandehi District Court has ordered Silver Heritage Investment to remove all structures it constructed on government, public and community land. The Lumbini Nalkul Water Consumers’ Association had filed a writ demanding the recovery of 3,205m2 of public land. (Source: https://kathmandupost.com/money/2023/01/20/court-orders-removal-of-illegal-structure-built-by-silver-heritage-investment)
5. Cable television entrepreneurs warn of protests– Cable television entrepreneurs have warned of closing their businesses in protest. They have demanded that the committee’s recommendations regarding the use of electric poles and the payment of related rent to be immediately put into effect, and that the rent rate for mid-July to mid-August be maintained. (Source: https://myrepublica.nagariknetwork.com/news/cable-television-entrepreneurs-warn-to-handover-their-keys-to-govt-if-their-demands-are-not-met/)
6. NEA started the project in Tarakeshwar– Nepal Electricity Authority (NEA) has started the process for land acquisition in the Tarakeshwar Municipality. The land will be used to construct transmission lines and substations. (Source: https://myrepublica.nagariknetwork.com/news/nea-steps-up-effort-to-construct-transmission-lines-and-substations-in-kathmandu-s-tarakeshwar-municipality/)
7. Nepal to propose two new transmission lines with India– Nepal will propose developing two new Nepal-India cross-border transmission lines during the upcoming meetings of the joint secretary-level Joint Working Group and the secretary-level Joint Steering Committee in February. (Source: https://kathmandupost.com/national/2023/01/26/nepal-to-propose-two-new-cross-border-transmission-lines-with-india)
8. European Union’s technical team postpones visit– The European Union team that was planning to travel to Nepal for undertaking an ‘on-site evaluation’ of aviation safety has put off its plan as Nepal’s aviation authorities would be deployed for investigating the January 15 crash. (Source: https://myrepublica.nagariknetwork.com/news/eu-s-on-site-evaluation-team-not-to-travel-to-nepal-anytime-soon/)
9. China halts trade through Rasuwagadhi-Kerung– China has halted trade through Rasuwagadhi-Kerung till February 3 citing the celebration of the Chinese New Year. Nepal imports garments, apples, motor batteries and plastic products from the port, and also exports pashmina products, carpets and various food items. (Source: https://myrepublica.nagariknetwork.com/news/china-closes-rasuwagadhi-kerung-border-in-less-than-a-month-of-resuming-trade/)
10. Tila-Karnali hydropower project delayed for 12 years– The 880 MW Tila-Karnali Hydro Power has been delayed for the past 12 years due to technical and financial challenges of AC Power Company, which was entrusted with the construction of the project in 2011. The head of the company has stated the work will resume in February 2023. (Source: https://myrepublica.nagariknetwork.com/news/tila-karnali-hydropower-project-stalled-for-12-years/)
