Weekly Economic Update(October 27 to November 2)
1) Hetauda-Dhalkebar-Inaruwa Project hampered
The Hetauda-Dhalkebar-Inaruwa 400 kV transmission line project faces delays due to local opposition, procedural complexities, and contractor performance, aiming to strengthen Nepal’s electricity system and enhance trade with India.
2) Nepal’s Trade Deficit Expands to NPR 366.88 Billion
Nepal’s trade deficit increased by 2.15% in FY 2023–24, with imports increasing by 1.69% to NPR 407.76 billion, and exports declining by 2.26% to NPR 40.87 billion. The highest trade deficits are with India and China.
https://thehimalayantimes.com/business/trade-deficit-widens-to-rs-36688bn
3) ADB to Grant a Concessional Loan of NPR 13 Billion
Nepal and ADB have signed a NPR 13 billion loan agreement for the Rural Connectivity Project-Additional Financing, aiming to improve rural road connectivity, infrastructure capacity, and climate resilience across five provinces.
3)Draft of E-Commerce Bill Approved
The National Assembly’s Legislative Management Committee approved the draft E-commerce Bill, 2080 BS, to regulate and organize electronic commerce, aiming to address the growing use of electronic methods.
https://thehimalayantimes.com/business/na-committee-endorses-draft-of-e-commerce-bill
5) Hetauda Cement Factory Ceases Operations
Hetauda Cement Industry halted production due to financial crisis, unable to buy coal on time. They plan to resume production with financial assistance and sell cement to generate income.
https://english.onlinekhabar.com/hetauda-cement-industry-halts-production-amid-coal-shortage.html
6) Tourist Arrivals Reach Historic High in October
Nepal saw a historic surge in tourist arrivals in October 2023, welcoming 117,306 tourists, breaking the previous record from 2019. Tourists mainly came from India, the USA, and the UK. In the first ten months of 2023, Nepal welcomed over 800,000 tourists.
https://myrepublica.nagariknetwork.com/news/october-2023-tourist-arrivals-to-nepal-set-new-records/
7) Foreign Investment Commitments in Nepal Decline
Nepal’s foreign investment commitments decreased by over NPR 21 billion in fiscal year 2022/23. A total of 327 foreign investment approvals were granted, with 151 industries committing NPR 16.6 billion and 40 industries committing NPR 1.98 billion.
8) 4 Million Garlands to be Traded During Tihar
The Tihar festival in Nepal is expected to use four million flower garlands, with domestic production meeting 80% of demand. The Floriculture Association Nepal predicts sale of 3.5 million marigold garlands, along with other varieties.
9) 2nd Longest Suspension Bridge Reaches Final Stage
A new 524-meter long single-span bridge is under construction in Nepal, connecting Bangechaur and Adubari. Costing NPR 82 million, it aims to reduce travel distance, promote agricultural product transportation, and serve as a tourist attraction.
10) Public Debt on the Increase
The government spent NPR 67.70 billion for interest payments and public debt servicing in the first three months of the fiscal year, exceeding development project expenses by nearly threefold. The country’s public debt reached NPR 2.354 trillion, indicating increased borrowing reliance.
