Weekly Economic Update (9 June 2022 to 16 June 2022)

1. The construction of a suspension bridge over Sanghe Stream is almost complete: The bridge that connects Byas Municipality-7 and Myagde Rural Municipality-6 is expected to be completed by the end of June. This project cost NPR 4.5 million. The government covered 85% of the costs while the Myagde Rural Municipality covered the remaining 15 percent. (Source — https://myrepublica.nagariknetwork.com/news/suspension-bridge-construction-project-nears-completion/)

2. BFI borrowers failed to receive loans due to Land Use Regulations: Land revenue offices refused to “put on hold” the transaction of lands that have been used as securities. According to the Land Use Regulation, only lands classified as agriculture or non-agriculture categories can be used as securities. (Source — https://myrepublica.nagariknetwork.com/news/borrowers-of-bfis-fail-to-receive-loans-on-land-collateral-due-to-mandatory-rule-of-classifying-land-plots/)

3. Gandaki has a budget of NPR 35.90 billion for next FY: The Gandaki Province has announced a budget of NPR 35.90 billion for fiscal year 2022/23, with a focus on agriculture, tourism, and health. The entire sum set aside is roughly NPR 6.40 billion higher than the amount set aside for the current fiscal year. (Source — https://myrepublica.nagariknetwork.com/news/gandaki-unveils-budget-of-rs-35-90-billion/)

4. Chitwan National Park temporarily suspends jungle safari: The park will be closed during the Monsoon season until further notice due to potential damages from the rain. The safari has been a major tourist attraction for tourists as 159,881 tourists visited the park this fiscal year, generating NPR 80 million in revenue. (Source — https://myrepublica.nagariknetwork.com/news/jungle-safari-in-chitwan-national-park-to-be-shut-down-temporarily/)

5. Nepal Investment Bank Limited (NIBL) and Mega Bank Nepal Limited (MBNL) signed an MoU to merge: Nepal Investment Bank Limited (NIBL) is merging with Mega Bank Nepal Limited (MBNL) after NIBL failed to merge with Himalayan Bank Limited (HBL). Upon the conclusion of the merger process, the banks will accumulate capital base of NPR 34.43 billion. (Source — https://myrepublica.nagariknetwork.com/news/nibl-inks-merger-deal-with-mbnl-after-failure-to-merge-with-himalayan-bank/)

6. All seven provinces on releasing their budgets for the next fiscal year: The combined budgets of the seven provinces for the upcoming fiscal year are NPR 305.46 billion, almost 17% more than this fiscal year’s budget. Bagmati has the largest financial expenditure of the seven provinces, whereas Karnali presents the smallest financing plan. (Source: https://kathmandupost.com/money/2022/06/16/all-provinces-present-their-budgets-targeting-economic-recovery)

7. Annapurna Circuit experiences a decrease in the number of tourists: The decrease in the inflow of tourists in the circuit can be credited to heavy monsoon rains and road problems which have decreased profits for tourism entrepreneurs in the area. Previously, the trek attracted over 600 tourists per day. (Source — https://myrepublica.nagariknetwork.com/news/jungle-safari-in-chitwan-national-park-to-be-shut-down-temporarily/)

8. Lumbini has presented a budget of NPR 42.63 billion: Current spending is set at NPR 13.32 billion, with capital spending set at NPR 24.47 billion. Minister Khadka noted that the fiscal transfer portion of the entire budget has been suggested 11.33%. (Source — https://myrepublica.nagariknetwork.com/news/lumbini-govt-presents-budget-of-rs-42-63-billion/)

9. Nepali Rupee has hit a new low of NRP 125.08 per US dollar: Nepal Rastra Bank fixes the exchange rate at NPR 125.08 per dollar on Wednesday. Last Thursday, the exchange rate stood at NPR 124.68 per dollar. Nepalese currency has further depreciated by 40 paisa in around a week’s time. (Source — https://myrepublica.nagariknetwork.com/news/nepali-rupee-plunges-to-record-low-of-rs-125-08-per-us-dollar/)

10. Nepal Rastra Bank (NRB) to be vigilant of transactions of high-profile individuals: Under the provision of money laundering, NRB has asked banks and financial institutions, travel agencies, and hotels to remain observant of suspicious activities in domestic and foreign banks. Any transactions made under large companies and businesses will also be scrutinized by the NRB. (Source –https://myrepublica.nagariknetwork.com/news/nrb-directs-bfis-and-agencies-carrying-out-financial-transaction-to-keep-vigil-on-bank-accounts-of-high-profile-persons/)