Weekly Economic Update (27 March 2024–02 April 2024)
3 min readApr 3, 2024
- International tourism campaign launched — The second international tourism campaign, a collaboration between USAID, the Nepal Tourism Board, and Steller, aims to present Nepal’s extensive tourism possibilities, diverse cultural heritage, and vibrant history to a worldwide audience. (Source: https://myrepublica.nagariknetwork.com/news/usaid-and-nepal-tourism-board-launch-the-2024-international-tourism-campaign/)
- Budget 2024/25 drafting started — Finance Minister has formed a budget drafting committee under the leadership of joint secretary Dhaniram Sharma to draft the fiscal budget for the year 2024/25 which is set to be presented to the federal parliament by Jestha 15. (Source: https://myrepublica.nagariknetwork.com/news/budget-drafting-process-begins-finance-ministry-employees-urged-to-refrain-from-attending-meetings-unless-absolutely-necessary/)
- High value exports rise — Nepal’s high value export rises by 4.85% in the first eight months of the current fiscal year after a surge in exports of iron and steel products, cement, ginger, readymade garments, and medicinal herbs according to the Department of Customs. (Source: https://kathmandupost.com/money/2024/03/29/exports-of-high-value-nepali-products-rise-5-percent)
- Nepal’s economic expansion- According to The World Bank forecasts, Nepal’s economy will grow by 3.3% in the fiscal year 2024. This growth is attributed to the revival of tourism and an increase in hydropower exports. Private consumption will be a key driver of growth, fueled by a significant rise in remittance inflows. (Source: https://thehimalayantimes.com/nepal/world-bank-projects-nepals-economic-growth-to-be-33-percent-in-fy24)
- Increase in remittance- Over the past few months, Nepal has experienced a significant rise in remittance inflows, consistently exceeding Rs. 100 billion per month. This has resulted in increase in Foreign currency reserves leading to improved surpluses in Nepal’s balance of payments and current accounts. (Source: https://risingnepaldaily.com/news/40869)
- Economic growth for Gandaki province: Gandaki Province aims for an economic growth target of 8% by the year 2085 BS. A concept paper was published for the second five-year plan, outlining their goal to make the province self-reliant, carbon-neutral, and economically prosperous. (Source: https://myrepublica.nagariknetwork.com/news/gandaki-province-sets-economic-growth-target-of-8-by-2085-bs/)
- Newly appointed chief economic advisor: Prof. Dr. Surya Bahadur Thapa has been appointed as the chief economic advisor by Finance minister Barshaman Pun. Thapa, currently serves as a Professor of Economics in the Faculty of Education at Tribhuvan University. (Source: https://myrepublica.nagariknetwork.com/news/finmin-pun-appoints-prof-dr-surya-bahadur-thapa-as-chief-economic-advisor/)
- Report on tax system reforms: The government has received the study report from the High-level Recommendation Committee on Tax System Reforms. The report adresses several economic aspects, such as boosting revenue generation, generating new job opportunities, revising tax laws, tax rates, tax administration, and revenue structure. (Source: https://nepalnews.com/s/business/high-level-committee-on-tax-system-reforms-submits-report-to-government)
- Possible investment ties with Bangladesh: A state minister of Bangladesh, Nasrul Hamid attended the preliminary seminar organized by the Nepali Embassy in Dhaka, for the Third Nepal Investment Summit 2024. He highlighted Nepal’s investment potential and expressed Bangladesh’s interest to deepen investment ties with Nepal. (Source: https://nepalnews.com/s/business/pre-event-seminar-on-investment-summit-organized-in-bangladesh)
- Agriculture in Nepal: Agriculture only makes up about 27% of Nepal’s GDP. Farmers deal with challenges like changing climate conditions, limited access to markets, and reliance on traditional farming methods, which affect productivity and sustainability. (Source: https://khatapana.com/blogs/140/revolutionizing-agriculture-in-nepal-navigating-fi)
