Weekly Economic Update (5 August 2022 to 11 August 2022)
1. KMC spent 44.24% of allocated budget — In the last fiscal year 2021/22, the Kathmandu Metropolitan City (KMC) spent only 44.24% of the allocated budget. KMC spent NPR 7.31 billion out of the designated fund of NPR 16.52 billion.
2. NOC’s loss reaches NPR 31 billion — The accumulated loss of Nepal Oil Corporation (NOC) has reached NPR 31 billion. According to the new fuel price list sent by Indian Oil Corporation, NOC is expected to incur a loss of NPR 636.5 million in the next 15 days.
(https://myrepublica.nagariknetwork.com/news/noc-s-accumulated-loss-reaches-rs-31-billion/)
3. Construction of Hetauda-Kathmandu road — The construction of the road section from Hetauda to Kathmandu has begun. The 20 kilometers road is being constructed at a cost of NPR 750 million.
(https://myrepublica.nagariknetwork.com/news/construction-of-hetauda-kathmandu-road-started/)
4. Nepal receives aid from Beijing — Chinese Foreign Minister Wang Yi announced a NPR 15 billion grant to Nepal to invest in projects selected by Nepal on August 10 2022. This aid is in addition to the aid provided by Chinese President Xi Jinping in October 2019.
(https://kathmandupost.com/politics/2022/08/11/beijing-announces-new-rs15-billion-aid-to-nepal)
5. Interest rate not to be changed — Commercial banks have agreed to not raise the interest rate on deposits until mid-October. Banks have been offering on average 11.3% per annum interest rate on fixed deposits of individuals and 9.03% per annum of institutional depositors.
6. NEA’s net profit increased in FY 2021/22 — Nepal Electricity Authority (NEA) earned net profit of NPR 16.09 billion in the last fiscal year 2021/22, which is more than double its earning in 2020/21. NEA’s earnings in 2021/22 crossed NPR 100 billion.
7. 69 local governments fail to release budget — A total of 69 local governments fail to unveil their budget within the June 24 deadline. 648 out of the 753 local governments have announced their budget so far.
8. Industrial area rent increases — About a dozen industrial estates are operating across Nepal, and the rent of the industrial plants in these industrial areas has increased by up to 687%.
(https://myrepublica.nagariknetwork.com/news/rent-increases-up-to-687-percent-in-industrial-areas/)
9. Airport in Pokhara coming into operation — The Pokhara Regional International Airport is set to officially come into operation from January 1, 2023. So far, 98% of the construction has been completed and flight calibration would take place in the coming October.
10. Import of furniture and wood increased — The import of furniture and wood has increased significantly in the country after the government’s decision to restrict selling of wood products from forests. NPR 18 billion was spent on import of furniture and wood in the FY 2021/22.
