Weekly Economic Update (9th July 2021- 15th July 2021)
1. Nepal and India have signed a Letter of Exchange (LoE) to the India-Nepal Rail Services Agreement (RSA) 2004, which will allow all authorized cargo train operators to utilize the Indian railway network to carry Nepal’s container and other freight — both bilateral between India and Nepal or third country from Indian ports to Nepal.
2. Nepal Telecommunications Authority (NTA) is set to introduce the Mobile Device Management System, a security software that enables the regulator to implement policies that secure, monitor and manage end-user mobile devices from July 16. This is done with the aim of eliminating mobile imports from the grey market and phones sold without a bill and warranty.
3. The Department of Transport Management (DoTM) has hiked the public transport fares by 28% effective from July 16. In the revised rate, the fares of cargo vehicles in Hilly region and Terai region have also been increased by 20 % and 26% respectively.
4. The newly-appointed Finance Minister has decided to allocate NPR 5 billion to the Ministry of Health and Population (MoHP) for the procurement of COVID-19 vaccines.
5. IFIC Bank Limited, Bangladesh, the foreign partner in Nepal Bangladesh Bank (NBB) is seeking to exit its 40.09% stake in the bank. NBB has applied at Nepal Stock Exchange (Nepse) to sell 36.82 million unit shares of its foreign partner, after receiving an approval from the NBB Board.
6. Investment Board Nepal (IBN) on Sunday signed a Memorandum of Understanding (MoU) with SJVN Limited, India, to conduct a detailed project study of the 679 MW Lower Arun Hydroelectric Project. As per the agreement, the developer will have to present a detailed project report within the next 2 years to IBN.
7. Daraz, an online marketplace, announced the re-launch of its Daraz Sahayatri Program, a stimulus package to help SMEs recover from the economic impact of COVID -19. Through the program, new businesses moving online for the first time will be able to sell on Daraz without bearing any marketplace fee for the next three months up until the Daraz Dashain Dhamaka campaign.
8. Ministry of Finance is in the process of approving the Business Credit Flow Work Procedure 2021, which will provide entrepreneurs with NPR 2.5 million as seed capital at 1% interest. The work procedure would be implemented from the upcoming fiscal year 2021–22 starting July 16.
9. As COVID-19 cases drop in the country, the Cabinet has authorized to resume passenger flights on international sectors based on the country’s needs and travel demand as well as regular domestic flights at full capacity.
10. Given the outbreak of COVID-19, the manpower companies that could not send even 100 workers abroad in the current fiscal year will be renewed until fiscal year 2021/22.
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