Weekly Economic Update (7 April 2023–13 April 2023)
1. 25% of capital expenditure in nine months- In the first nine months of current FY, only 25.88% of the allocated NPR 380 billion for capital expenditures has been spent, leading to expectations of delay in development projects and slowdown in the economy. (Source: https://myrepublica.nagariknetwork.com/news/nepal-sees-only-25-percent-capital-expenditure-in-first-nine-months-of-the-current-fy/)
2. Nepal requests China for preferential treatment for primary products- Nepal has requested China to grant preferential treatment to Nepal’s primary products in bilateral trade in an effort to address the widening trade deficit it has with China. The primary products include tea, coffee, herbal products, cooked buffalo meat, and other agricultural products. (Source: https://myrepublica.nagariknetwork.com/news/nepal-requests-china-to-grant-preferential-treatment-to-its-primary-products-to-address-widening-trade-deficit/)
3. Government to allocate NPR 49 billion for chemical fertilizer import- The government plans to increase budget allocation by nearly 27% and spend around NPR 49 billion to import chemical fertilizers for the next FY in order to ensure the timely availability of agricultural inputs. (Source: https://myrepublica.nagariknetwork.com/news/govt-announces-to-allocate-rs-49-billion-to-import-chemical-fertilizers-in-fy-2023-24/)
4. LMC to take legal action against Summit Apartments- LMC has intended to take legal action against Summit Apartments (formerly Summit Hotel) due to the apartments’ construction without design approval from the metropolis and the failure of conducting the Environmental Impact Assessment (EIA). (Source: https://myrepublica.nagariknetwork.com/news/lmc-to-take-legal-action-against-summit-apartments/)
5. Ministry of Culture, Tourism and Civil Aviation (MoCTCA) terminates the appointment of goodwill ambassadors- MoCTCA has decided to terminate the appointment of all ‘Tourism goodwill ambassadors’ by approving the Tourism Promotion Relating Procedures, 2079 BS. Earlier, they were appointed before the enactment of the procedure, but the new procedure has opened avenues for their reappointment as ‘Tourism promoters’ after fulfilling due processes. (Source: https://myrepublica.nagariknetwork.com/news/all-tourism-goodwill-ambassadors-appointment-terminated/)
6. Forex reserves hit a two-year high- Nepal’s foreign currency reserves reached a two-year high of NPR 1.421 trillion due to soaring remittance earnings of 25.3% in the first 8 months of the current FY, but imports declined 19.1% in the same period. (Source: https://myrepublica.nagariknetwork.com/news/nepal-s-forex-reserves-bounce-back-to-a-two-years-high-level-as-of-mid-march/)
7. KU to close several educational programs- According to Kathmandu University, around 30% of its current educational programs with fewer students out of the total 200 programs will be discontinued. Instead, effective, attractive, and new programs are being discussed for future implementation. (Source: https://myrepublica.nagariknetwork.com/news/ku-to-close-academic-programs-with-fewer-number-of-students/)
8. Interest rates to be reduced to single digits- The Nepal Bankers’ Association decided to reduce the interest rates on bank deposits to below 10% to be effective from 14 April 2023. The new interest rates on individual and institutional fixed deposits have been fixed at 9.99% and 7.99% respectively. The range for savings accounts is to be range between 5.4% to 7.4%. (Source: https://myrepublica.nagariknetwork.com/news/interest-rates-on-deposits-to-come-down-to-single-digit-for-the-first-time-in-the-past-20-months/)
9. Government seeks USD 200 million from ADB- The government has sought USD 200 million from the Asian Development Bank (ADB) in budgetary support to finance the resource gap amid falling revenue collection in the current fiscal year 2022–23. (Source: https://kathmandupost.com/money/2023/04/09/government-seeks-200-million-from-adb-to-tide-over-revenue-shortfall)
10. FEB launches re-integration programme- The Foreign Employment Board (FEB) has initiated the reintegration programme for the returnee Nepali migrant workers in coordination with the local levels. It aims to encourage entrepreneurship among returnee workers. (Source: https://thehimalayantimes.com/business/feb-launches-re-integration-programme-for-returnee-migrant-workers)
