Weekly Economic Update (22 September 2023–28 September 2023)
1) IBN signs agreement with Malaysian company
The Investment Board, Nepal, and Malaysian company Re-Nicola signed an agreement to conduct a feasibility study for a chemical fertilizer factory in Nepal, focusing on green ammonia and calcium ammonium nitrate. Re-Nicola has to submit a detailed study within 24 months of the agreement.
2) South Korea to assist Nepal in graduating from LDC
South Korea has said they would help Nepal graduate from the status of a Least Developed Country (LDC) by 2026. The Korean Ambassador to Nepal, Tea-Young Park said the Korean government has initiated development cooperation in various sectors including health, ICT among others.
3) Sebon introduces real-time interface
The Securities Board of Nepal (Sebon) approved allowing stock market investors to receive notifications about the status of their primary share purchase applications. This new system aims to prevent fraud applications by checking applicants’ bank balances in real time.
4) Tax authorities attribute a fall in revenue collection
Government tax authorities attribute a significant decline in revenue collection to rising smuggling, primarily through the open border with India. The current revenue is NPR 172.91 billion, down NPR 8 billion from the previous fiscal year.
5) Nepalis to get customs duty exemptions
TIA Customs Office has updated customs rules for Nepali workers returning from abroad. Those registered with Social Security Fund and 12 months of work can import TVs duty-free. The changes aim to balance exemptions and customs compliance.
6) NRB to distribute new currency notes for Dashain
Nepal Rastra Bank (NRB) will distribute NPR 18,500 in new currency notes per person for Dashain festival. Banks are gathering data to determine note quantities. The maximum limit has been NPR 18,500 per person for the past two years.
7) Govt’s fiscal year 2023/24 expectations challenged
The government’s fiscal year 2023/24 goals of boosting the economy and business has faced challenges. Imports and exports have dropped by 5.06% and 7.79%, indicating economic stagnation and concerns for revenue generation and sectors.
8) Nepal and China agree to revisit bilateral agreement
Nepal and China have agreed to revisit their decades-old Nepal-China Trade and Payments Agreement. During Prime Minister Pushpa Kamal Dahal’s visit to China, the two nations also signed multiple agreements covering various sectors.
9) TIA records surge significantly
Tribhuvan International Airport (TIA) saw a significant increase in air travelers in the first eight months of 2023, with over 5.46 million passengers and approximately 80,465 flights.
10) Nepal’s trade volume fall 5.32 percent
Nepal’s foreign trade volume declined by 5.32% in the first two months of the current fiscal year, with reduced imports and exports. The decline is attributed to revised taxation policies and economic slowdown. Imports fell by 5.06% and exports dropped by 7.79%. As a result, the trade deficit decreased by 4.74%.
