Weekly Economic Update (20 May 2022 to 26 May 2022)
1. Local elections 2022: Balendra Shah, an independent candidate, has a lead in the Mayoral post in the Kathmandu Metropolitan City (KMC) with 59,149 votes, which is more than the number of votes still to be counted as of 26 May 2022 (12:15 hours). Among the 753 local units, KMC is the largest metropolis and has the highest budget of NPR 18.9 billion for the current FY 2020/21. (Source: https://kathmandupost.com/national/2022/05/26/balen-canes-parties-with-the-walking-stick)
2. Free services to foreign airlines: The GoN announced around USD 2000 worth of free services per flight to foreign airlines to attract them in its newly launched Gautam Buddha International Airport in Bhairahawa. The free services include costs for landing, parking, communication, navigation or security services. (Source: https://kathmandupost.com/money/2022/05/25/high-costs-of-fuel-and-ground-handling-keeping-airlines-away)
3. Auto-fuel pricing mechanism in airlines: Auto-fuel pricing mechanism will be implemented from mid-July 2022 in the airline sector as per the new policies and programs unveiled by the Government of Nepal for the FY 2022/23. (Source: https://kathmandupost.com/money/2022/05/25/high-costs-of-fuel-and-ground-handling-keeping-airlines-away)
4. Price hike in petroleum products: The prices of petrol, diesel and kerosene hiked by NPR 10 per liter each to reach at NPR 180, NPR 163 and NPR 163 per liter, respectively with effect from 23 May 2022 — a week after the same rate of increase was implemented on 17 May 2022. (Source: https://kathmandupost.com/money/2022/05/23/fuel-prices-up-again)
5. Low wheat harvest likely to batter the economy: Wheat, Nepal’s third largest cereal crop, is likely to face a low harvest and rise by less of 1% (2.02 million tonnes) due to the unplanned planting, leading to low growth and fluctuations in the country’s projected growth rate of 5.8%. (Source: https://kathmandupost.com/money/2022/05/21/wheat-harvest-likely-to-fall-below-forecast-due-to-rain)
6. Increase in Nepali workers seeking labor approval: The number of Nepali workers, including institutional and individual (new and legalized) workers, taking approval for foreign employment increased from 48,687 to 256,031 in nine months data of the current FY 2021/22 (ending mid-April 2022). (Source: https://www.nrb.org.np/contents/uploads/2022/05/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Nine-Months-data-of-2021.22.pdf)
7. New market opportunities established in Nepal: Given the increased popularity and demand for K-Foods in Nepal amidst the K-wave, MS Group/Millenia Global partnered with Orion India as its national distributor in Nepal to produce ‘Original Choco-Pie’ and other food products at affordable prices for the Nepali market. (Source: https://tkpo.st/3GngX1n)
8. New internet package launched by WorldLink Communications: WorldLink released a new 200 Mbps, three-month package for NPR 3,300 targeting customers who do not use Net TV. This package also provides ‘WiFi Mobility’, which allows customers to use unlimited data on more than 14,000 WorldLink WiFi hotspots through 5 devices. (Source: https://kathmandupost.com/money/2022/05/19/worldlink-launches-3-month-200-mbps-internet-package)
9. Top three labor destinations of Nepali workers: As per the data for nine months ending mid-April 2022, an increasing number of Nepali workers sought labor approvals for Saudi Arabia, Qatar, and United Arab Emirates (UAE) among many others. (Source: https://www.nrb.org.np/contents/uploads/2022/05/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Nine-Months-data-of-2021.22.pdf)
10. Depreciation of Nepali currency: Nepali currency visa-a-vis the USD depreciated 2.04% in mid-April 2022, against an appreciation of 0.48% in mid-July 2021, indicating how Nepali rupee is getting weaker due to which foreign investors may be hesitant to invest in Nepal. (Source: https://risingnepaldaily.com/news/11383)
