Weekly Economic Update (8 July 2022 to 14 July 2022)
3 min readJul 14, 2022
- Himalayan Bank and Civil Bank sign MoU- The two banks have agreed to merge with the swap ratio at 100:81. The deputy Chief Executive Officer of the unified bank will be employed by Civil Bank, while the bank will carry out transactions under the name of Himalayan Bank. (Source: https://myrepublica.nagariknetwork.com/news/hbl-and-cbl-ink-agreement-for-acquisition/)
- Public transportation prices increase: The Department of Transport Management raised transport fares again citing the increase in fuel prices. Fares for passenger vehicles increased by 1.79%, fares for vehicles on hilly roads increased by 2.34%, and freight vehicle fares on Terai roads increased by 2.6%. (Source: https://myrepublica.nagariknetwork.com/news/public-transport-fares-increased-again/)
- Chobhar dry port begins export: The newly established Chobhar dry port in Kathmandu exported EUR 43,467 worth of home-made woolen items. This marks the beginning of exports from the dry port which has imported NPR 73 million worth of goods since its inauguration in April 2022. (Source: https://myrepublica.nagariknetwork.com/news/export-via-chobhar-dry-port-begins/ )
- Petroleum import up by 88.7%: Nepal imported NPR 292.77 billion worth of petroleum in the first 11 months of the current fiscal year. Petroleum imports were only NPR 155.14 billion in the same period of the previous fiscal year. (Source: https://myrepublica.nagariknetwork.com/news/nepal-spent-rs-292-77-billion-to-import-petroleum-products-in-11-months-of-fy-2021-22/ )
- Public land lease period increases to 40 years- Nepali government has released three provisions for renting public land. Under the short-term provision, land can be leased out for 5 years. For medium-term provision, the lease can go up to 15 years, and under the long-term provision, the lease period can be extended to 40 years. (https://myrepublica.nagariknetwork.com/news/public-land-can-be-leased-out-for-a-maximum-of-40-years-in-single-contract/)
- Inflation rate close to double digits: The Consumer Price Index (CPI) increased by 8.56% in the first 11 months of the current fiscal year. The inflation in Kathmandu Valley stood at 8.32% last month whereas the inflation in Himalayan region was 8.92%, Hilly region was 9.28%, and Terai region was 8.29%. (Source: https://myrepublica.nagariknetwork.com/news/consumer-inflation-closer-to-double-digit-point-of-8-56-percent-during-mid-may-and-mid-june/ )
- Remittance inflow increased by 3.8% in NPR: Remittance of NPR 904 billion was received by Nepal in the first 11 months of the current fiscal year. Remittance in USD terms reached USD 7.51 billion in the first 11 months of the current fiscal year, representing a 1.5% increase from the same period of previous fiscal year. (Source: https://myrepublica.nagariknetwork.com/news/rs-904-billion-remittance-inflow-recorded-in-11-months/ )
- Taxing sanitary pads to be further addressed: The Government of Nepal introduced a 90% waiver on the customs tax imposed on the import of sanitary pads in the annual budget for 2022/23. This announcement was made in response to the demand of activists. (Source: https://myrepublica.nagariknetwork.com/news/issue-of-taxing-sanitary-pads-yet-to-be-fully-addressed-lawmakers-say/)
- Half of all credit from BFIs increases trade deficit- A report from the Confederation of Banks and Financial Institutions Nepal shows that an increase of NPR 100 in bank credit to the private sector increases the deficit by NPR 50 in the long run. (https://myrepublica.nagariknetwork.com/news/half-of-credit-amount-issued-by-banks-contributing-to-widen-nepal-s-trade-deficit-cbfin-report/)
- Cement export expected to cover trade deficit: Nepal Cement Producers Association expects Nepali cement manufacturers to export cement worth NPR 1.5 trillion in the coming fiscal year. Incentives provided by the government through the new budget and the assistance of government in construction of transmission lines and roads to industrial mines have encouraged cement producers in the country. (Source: https://myrepublica.nagariknetwork.com/news/indications-that-cement-could-cover-current-trade-deficit/ )
