Weekly Economic Update (24 June 2022 to 30 June 2022)
1. Production of paddy up by 20% in Chitwan — Production of paddy has increased in Chitwan due to mechanization and better seeds. The area of the plantation has decreased by 57 hectares in the past four years. Paddy is being cultivated on 30,500 hectares of land during the rainy season for cultivation. (Source: https://myrepublica.nagariknetwork.com/news/production-of-spring-paddy-up-by-20-percent-in-chitwan/)
2. Govt. to allocate a certain quota of IPOs for Nepali migrant workers — With the beginning of the 2022/23 fiscal year, 10% of the issued public offerings will be reserved for migrant workers. The initiative is a way forward to create an environment facilitating Non-resident Nepalis (NRNs) to invest in the country’s share market. (Source: https://myrepublica.nagariknetwork.com/news/govt-allocating-10-percent-of-issued-ipos-to-migrant-workers-beginning-next-fiscal-year/)
3. Electricity worth NPR 120 million sold daily — Nepal has been exporting electricity worth NPR 100 to 120 million in India on a daily basis. Minister Bhusal claims there is a possibility of exporting more than NPR 70 billion worth of electricity every year in the next five years. (Source: https://myrepublica.nagariknetwork.com/news/electricity-worth-rs-120-million-sold-daily/)
4. Birgunj Customs exceeds target revenue — More than NPR 234.93 billion has been collected as revenue from the two customs offices in Birgunj in the first 11 months of the current fiscal year. The revenue collection is also a result of the large influx of oil from the Motihari Raxaul-Amlekhgunj pipeline, an official at the BCO says. (Source: https://myrepublica.nagariknetwork.com/news/birgunj-customs-collects-rs-236-31-billion-as-revenue/)
5. Birgunj transit sees 73% rise in exports in 11 months — Nepal’s main trade transit, Birgunj witnessed a rise in exports by 73%. The revenue collection has increased by 23%. The total export amount in 11 months of the current FY stands at over 76.55 billion, an increment of over NPR 32.31 billion, compared to last year’s NPR 44.24 billion. Exports include refined soybean oil, palm oil, sunflower oil, fruit juice, and clothes. (Source: https://myrepublica.nagariknetwork.com/news/birgunj-transit-sees-73-percent-rise-in-exports-to-third-countries-in-11-months/)
6. Commercial banks struggle to maintain CD ratio — Banks and financial institutions (BFIs) collected deposits of NPR 5 billion in the past month. The average credit-deposit ratio (CD ratio) of the BFIs stands at 89.26 %, down from 89.37 % a month ago. Still about a dozen of banks have failed to maintain the CD ratio. (Source: https://myrepublica.nagariknetwork.com/news/half-of-commercial-banks-struggle-to-bring-down-the-cd-ratio-below-mandatory-90-as-fiscal-year-inches-closer-to-end/)
7. NAC to revise its 10 — year business plan — Nepal Airlines (NAC) has decided to review its business plan of strategic importance. The national flag carrier will also unveil its new website on the occasion of its 64th anniversary, which falls on July 1 in Kathmandu. NAC’s newly-appointed General Manager Dipuraj Juharchan. (Source: https://myrepublica.nagariknetwork.com/news/nac-to-revise-10-year-business-plan/)
8. Stockbrokers permitted to operate their own TMS — Nepal’s stock brokerage firms have been allowed to operate their own Trade Management System (TMS). TMS is a means of connecting investors to the system of brokers and trading platform of the Nepal Stock Exchange (Nepse). This allows investors to enter purchase and sale orders in the secondary market. (Source: https://myrepublica.nagariknetwork.com/news/stockbrokers-permitted-to-operate-their-own-tms-for-online-trading-of-shares/)
9. Scarcity of chemical fertilizers due to negligence — Mahindra Raya Yadav, the Minister for Agriculture and Livestock Development, has accused the contractor of the chemical fertilizer shortage in the country. Speaking at an event to commemorate the 19th National Paddy Day, he said that the manure contracting system was ineffective. (Source: https://myrepublica.nagariknetwork.com/news/scarcity-of-chemical-fertilizers-due-to-negligence-of-contractor-minister-yadav/)
10. Bharatpur-Bardaghat 220 kV transmission line partially comes into operation — Electricity will flow from Bharatpur substation to the Arun River via the new 220 kV line and then to Bardaghat Substation via the existing 132 KV line. About 25 MW of load can be sent to Kawasoti and other areas. NEA: Upgrade helps improve strength of energy supply in the area while reducing electricity import from Tanakpur. Construction work had come to halt since March 2021 following an order by the Supreme Court. (Source: https://myrepublica.nagariknetwork.com/news/bharatpur-bardaghat-220-kv-transmission-line-partly-comes-to-operation-power-supply-of-western-region-to-improve/)
