Weekly Economic Update: November 3, 2023 - November 9, 2023
1) Express bus service stalled
The Department of Road plans to spend NPR 2 million on enhancing the efficiency of the stalled express bus service in Kathmandu, with additional expenses for painting and heavy dividers.
2) NRB, FNCCI sign MoU to formulate economic policy
Nepal Rastra Bank and FNCCI have signed a Memorandum of Understanding to develop a comprehensive economic policy, enhance the industrial and business environment, establish a facilitation cell, and boost private sector participation.
3) Commercial banks’ profits declined
Nepal’s commercial banks’ profits declined 18.60% in Q1 due to decreased loan demand, while eight ‘A’ class financial institutions, including Himalayan Bank, saw a 98.35% increase in profits.
4) MoF fixes criteria for maintaining big projects
The Indian government has introduced the Multi-year Contract Work Procedure-2023 to address delays in large-scale projects, with national pride projects automatically considered and requiring MoF approval.
5) Government to expedite for Upper Arun Project
Nepal’s government and donor agencies aim to expedite the construction of the 1,161-megawatt Upper Arun Hydropower Project in Bhotekhola Rural Municipality, funded 70% through loans and 30% through equity.
6) India exports 25,000 tonnes of sugar to Nepal
India has agreed to export 25,000 tonnes of sugar to Nepal on a quota basis until the end of September next year to help with demand during the Tihar festival. The price of sugar has recently reached NPR 160 per kg and is in short supply in the country.
7) Nepal’s high-value exports see significant rise
Nepal saw an 18% rise in high-value exports during Q1 of the current fiscal year, due largely to an increase in iron and steel shipments, along with cardamom, cement and lentils. Export revenue from goods rose by NPR3.99billion YoY to NPR 26billion. (Source: https://kathmandupost.com/money/2023/11/06/nepal-s-export-of-high-value-products-rises-18-percent)
8) Corporate donations pour in for earthquake relief:
Several corporate businesses, including Surya Nepal, Buddha Air, among others have donated goods and money towards the earthquake survivors of Jajarkot and West Rukum, with amounts ranging from NPR 500,000 to NPR 15 million. (Source: https://kathmandupost.com/money/2023/11/09/corporate-sector-chips-in-for-earthquake-relief)
9) Middlemen an issue in MDMS implementation: Chairman of Nepal Telecommunication Authority, Parushottam Khanal, said that middlemen have been the cause of problems with the Mobile Device Management System’s (MDMS) implementation. Khanal believes that the MDMS will help prevent illegal mobile phone businesses in the country. (Source: https://myrepublica.nagariknetwork.com/news/nta-faces-challenge-in-implementing-mdms-due-to-middlemen/)
10) CIAA investigates alleged corruption in PIA: The Commission for Investigation of Abuse of Authority (CIAA) has started an investigation over the Pokhara International Airport(PIA) construction, including the doubling of project construction costs and manipulating the contract process for construction. https://myrepublica.nagariknetwork.com/news/ciaa-seizes-documents-of-pria-amid-allegations-of-financial-irregularities/ )
