Weekly Economic Update (May 5, 2023 — May 11, 2023)
1. Nepal Economic Growth Projection 2.16% — National Statistics Office (NSO) has projected the growth rate of Nepal at 2.16% in the basic price. Annual growth rate at consumer price 1.86%. (Source: https://thehimalayantimes.com/business/nepals-economy-projected-to-grow-216pc)
2. Customs Duty Exemption for Smartphones — The amendment in Baggage Rules 2016 has decided to allow migrants to bring an extra smartphone with customs exemption. The migrant workers have to present a legal work permit for at least six months.
3. Budget to Focus on Economic Growth — Finance Minister Prakash Sharan Mahat said on Sunday that next year’s budget for the fiscal year 2023–2024 will focus on boosting economic growth, improving job opportunities, and ensuring good governance. The congressional budget session started on Sunday, May 7th. (Source: https://kathmandupost.com/money/2023/05/07/the-forthcoming-budget-will-focus-on-economic-growth-says-finance-minister)
4. Partial Trading through the Tatopani Border — Export through the Tatopani border is still limited even though the border opened fully on May 1. Three containers loaded with utensils and handicraft goods for export to China and headed for Sigatse are stuck at Tatopani dry port this week. (Source: Tatopani transit point handling only limited export cargo — The Himalayan Times — Nepal’s №1 English Daily Newspaper | Nepal News, Latest Politics, Business, World, Sports, Entertainment, Travel, Life Style News)
5. NEA to construct high-capacity substations in Kathmandu Valley — Nepal Electricity Authority (NEA) is planning to build eight high-capacity substations to enhance power transmission and distribution to meet the rising electricity demand brought on by the growth in population density. Substations of 400, 200, and 132 KV capacities are under construction in the valley.
6. Internal Debt to be Raised — The government will be issuing new internal debt at NPR 12 billion. Treasury bills (T-bills) with varying maturity dates will be used to refinance approximately NPR 12 billion of domestic debt. (Source: https://myrepublica.nagariknetwork.com/news/govt-to-raise-rs-12-billion-internal-debt/)
7. Monthly Change in Interest Rate of Loan — Nepal Rastra Bank has removed the provision of changing the loan interest rate only once a quarter. From now on, the interest rate will change every month on the average base rate of three months.
(Source: https://www.onlinekhabar.com/2023/05/1303944)
8. IMF Approves Second Installment of Extended Credit to Nepal — The International Monetary Fund (IMF) will be providing USD 52.80 million under its Extended Credit Facility (ECF) to Nepal. Nepal has already received USD 110 million as the first installment. (Source: https://myrepublica.nagariknetwork.com/news/imf-approves-us-52-80-million-in-second-installment-of-extended-credit-facility-to-nepal/)
9. Pre-Budget Discussion: Decrease Administrative Costs — Finance Minister Prakash Sharan Mahat said that the administrative cost will be reduced in the current budget. The purchase of new vehicles, carpets, and furniture will be reduced at the center, provincial and local levels to lower administrative costs. (Source: Finance Minister Dr Mahat expresses commitment to reduce administrative costs as pre-budget discussion ends — myRepublica — The New York Times Partner, Latest news of Nepal in English, Latest News Articles (nagariknetwork.com))
10. Real GDP of Nepal 4.4%; IMF Projection — In the fiscal year 2022–2023, the International Monetary Fund (IMF) forecasted Nepal’s real GDP to rise by 4.4%, driven by the country’s resilient remittances, robust agriculture sector, and continuous tourism rebound. Inflation to decline to 7%. (Source: https://thehimalayantimes.com/business/imf-projects-nepals-economic-growth-at-44pc)
