Weekly Economic Update (26 February 2024- 01 February 2024)
- IMF Predicts Growth Rate of Nepal
Nepal’s economic growth rate is expected to reach 5% in 2024, according to the International Monetary Fund’s (IMF) forecast in its World Economic Outlook published on January 30, 2024. Consumer price inflation in Nepal is expected to rise by 6.7% in 2024.
2. Hike in Fuel and Cooking Gas Prices
The Nepal Oil Corporation (NOC) has increased the price of fuel and cooking gas effective from February 2, 2024. The price of petrol has been increased by NPR 4, diesel-kerosene by NPR 2 and cooking gas by NPR 15 which has been revised as per the new rate received from Indian Oil Corporation.
https://english.onlinekhabar.com/price-of-fuel-and-cooking-gas.html
3. Karnali Corridor to Operate from 2081 BS
The Nepali Army are in the final stages to complete the Karnali Corridor which links the remote village of Karnali to China. The 11 km stretch of rugged terrain from Lalibagar to Dullikuna in Humla is set to begin operation from Baisakh 2081 BS (April-May 2024 AD) serving as a trilateral road connecting India and China.
https://myrepublica.nagariknetwork.com/news/karnali-corridor-to-become-operational-from-baishakh/
4. Government in Talks to Revive Hetauda Factory
Prime Minister Pushpa Kamal Dahal organized a high-level discussion and took a briefing on the feasibility study conducted by the Nepalese Army for the re-operation of the Hetauda textile industry.
5. Poor Budget Expenditure by Ministry of Finance
The Ministry of Finance has only spent 10.05% of the allocated budget by the government till the first six months of the current fiscal year FY 2023/24. The Ministry of Finance and its subordinate agencies were allocated Rs 40.45 billion.
6. Nepal Exports to Japan via China Trade Route
The noodles produced in Nepal have reached Japan through the Chinese port via the Tatopani border, according to the Department of Customs (DoC). It marks the export of Nepali goods to third countries using the Chinese ports.
7. Government Initiates Startup Procedure
The government has initiated a startup procedure aiming to help startups by providing loans to budding startups in 16 fields. The Ministry of Industry, Commerce, and Supply gave its approval to the Startup Enterprise Credit Working Procedure 2024.
https://english.onlinekhabar.com/startup-procedure-loan-nepal.html
8. NASDAQ to List Fusemachines
Fusemachines is being listed on the US Stock Exchange (NASDAQ) by the end of the second quarter of 2024. The company operated by Nepali entrepreneurs is going to be the first company of Nepali origin to be listed on the list.
https://english.onlinekhabar.com/fusemachines-listed-on-nasdaq.html
9. Sluggish Economy Impacting Nepal’s Banking Sector
The balance sheets of Nepal’s banks have been affected by the country’s sluggish economy. The number of industries and businesses being blacklisted are increasing and industrialists and businessmen have not been able to pay the interest on time. https://myrepublica.nagariknetwork.com/news/banking-sector-faces-impact-of-sluggish-economy-in-nepal/
10. Reinsurance Companies to Increase their Capital
Nepal Insurance Authority (NIA) instructs Nepali reinsurance companies to increase paid-up capital to NPR 20 billion in one year which is double of the existing amount. The reinsurers have been given a deadline of 15 days to come up with their plans to raise their capital bases.
