Weekly Economic Update (July 28 — August 3, 2023)
1. NRB to refinance damaged hydropower projects– Nepal Rastra Bank (NRB) agrees to offer refinancing support to hydropower projects that were damaged by monsoon floods. The move aims to help these projects resume and recover operations. (Source: https://thehimalayantimes.com/business/nrb-agrees-to-provide-refinancing-to-flood-damaged-hydropower-projects)
2. New trade strategy expands promising exports list– Nepal Trade Integrated Strategy 2023 identifies 32 promising export item to enhance Nepal’s export potential and diversify its export basket. The strategy is designed to support Nepal’s graduation from Least Developed Country status to developing country. (Source: https://kathmandupost.com/money/2023/08/02/new-trade-strategy-lists-32-promising-exports)
3. Sichuan Airlines to boost flight frequency — Chinese company Sichuan Airlines aims to offer 7 flights per week starting from the last week of August. The airlines is also considering introducing regular flights from Pokhara Regional International Airport. (Source: https://myrepublica.nagariknetwork.com/news/sichuan-airlines-to-boost-flight-frequency-in-nepal-amid-increasing-demand/)
4. Startups and SMEs in stock exchange market — The Securities Board of Nepal has devised a separate regulation to incorporate SMEs and startups in NEPSE to increase their access to finance. (Source: https://myrepublica.nagariknetwork.com/news/sebon-mulls-incorporating-startups-and-smes-in-stock-exchange-market/)
5. Delay in flyover construction– Late budget approval of Satdobato and Ekantakuna flyover construction delays the project. If the project is approved, construction contract could be finalized within this year. (Source: https://myrepublica.nagariknetwork.com/news/flyover-construction-faces-delays-in-satdobato-and-ekantakuna/)
6. IRD to investigate 2000 taxpayers– The Inland Revenue Department (IRD) started investigations against 1,986 taxpayers for possible involvement in tax evasion amounting to Rs 9.93 billion. (Source:
7. Alternative to Narayanghat-Mugling road– Road Division Office proposed a new track from Gaindakot to Mugling via Tanahun as current route is plagued by landslides that disrupt transportation. The Narayanghat-Mugling road is a vital road connecting the federal capital Kathmandu with eastern and western regions of Nepal. (Source: https://myrepublica.nagariknetwork.com/news/alternative-being-sought-to-narayanghat-mugling-road/)
8. Provision to permit NRNs’ investment– The Security Board of Nepal plans to revise the laws necessary to allow Non Resident Nepali (NRN) to invest in the country’s secondary market. (Source: https://myrepublica.nagariknetwork.com/news/sebon-to-endorse-legal-provisions-to-permit-nrns-investment-in-secondary-market/)
9. Nepal-China border points resume– Chinese government resumes two-way trade through the Tatopan-Khasa border point after a 9-year hiatus. Traders are cautious and wait further clarification on customs regulation and overall trade environment. (Source: https://myrepublica.nagariknetwork.com/news/nepali-traders-cautiously-optimistic-as-nepal-china-border-points-resume-after-a-hiatus-of-years/)
10. SC rules against VAT on air ticket — The Supreme Court issued a temporary order to not implement VAT in response to writ petition filed by Nepal Association of Tours and Travels Agent (NATTA). NATTA has asserted that travel companies and passengers would bear the brunt of the VAT. (Source: https://myrepublica.nagariknetwork.com/news/sc-issues-interlocutory-order-to-not-implement-vat-on-air-ticket/)
