Weekly Economic Updates (02 November 2024–08 November 2024)
3 min readNov 8, 2024
- Currency Outflows for Studies Rise Sharply
Currency outflow for overseas studies increased by NPR 28.25billion in just two months, a NPR 5 billion rise over the previous years period according to Nepal Rastra Bank. Experts stress the need for government measures to retain talent domestically.
(Source:https://ekantipur.com/news/2024/11/05/28-billion-in-foreign-studies-in-two-months-27-56.html) - Gautam Buddha International Airport Expands International Flight Operations
Gautam Buddha International Airport is seeing an increase in international airlines like Thai Air Asia and Fly Dubai, which are launching routes to Bhairahawa. The airport’s international connectivity is expected to grow significantly.(Source:https://myrepublica.nagariknetwork.com/news/gbia-sees-hope-for-boost-in-international-flights-after-slow-start-67297531851c8.html) - Nepal Completes 220kV Chilime — Trishuli Transmission Line
The 220kV Chilime-Trishuli transmission line project has been completed after seven years of work. The development in the energy sector is expected to open doors to electricity trade with China.(Source:https://kathmandupost.com/money/2024/11/05/nepal-completes-220kv-chilime-trishuli-transmission-line) - Dam Construction for 100MW Super Trishuli Project Begins
The work on constructing a 24.5 meter high dam for the 100MW Super Trishuli Hydropower project on the Trishuli river, the largest private sector undertaking, has started. The plant consists of three turbines, two each with 33.33MW output and one with 33.34MW optimum capacity.
(Source:https://kathmandupost.com/money/2024/11/06/dam-construction-for-100mw-super-trishuli-project-begins) - Inaccessible Roads Hinder Farmers and Tourists
Despite increased foreign and domestic tourism to Dhorpatan, road construction on the Saljhandi-Dhorpatan route remains incomplete after 16 years, creating travel challenges. This affects tourism, hampers transportation of goods and obstructs farmers reaching markets.(Source:https://ekantipur.com/business/2024/11/06/saljhandi-dhorpatan-road-blocked-farmers-and-tourists-suffer-03-41.html) - NPR 500 Million Flower Sales During Tihar Festival
In this Tihar, flower sales in Nepal reached NPR 500 million, with the most sales in Kathmandu. Floriculture Association President reported stable sales compared with last year each garland priced around NPR 100. Despite increased demand of 15–20% annually, domestically production only rises about 10%.(Source:https://ekantipur.com/business/2024/11/06/flower-sales-worth-rs-50-crore-during-tihar-59-00.html) - Rising Dollar Sets Record Against Nepali Rupee
The Nepali rupee reached a new low, with one US dollar valued at NPR 135.15, the highest exchange rate so far. This trend is partly due to global market dynamics and former president Trump’s re-election. While this benefits remittance and FDI, it increases education and healthcare expenses abroad.(Source:https://ekantipur.com/business/2024/11/07/another-new-record-in-the-us-dollar-135-rupees-for-one-dollar-33-50.html) - Nepal Accelerates Five Major Projects Preparation
Nepal’s Finance Ministry has decided to fast track preparations for five major projects worth NPR 72 billion supported by the World Bank. Ministries will coordinate with stakeholders, aiming for completion by February 2025. Once finalized proposals will be submitted to the World Bank Board in March 2025 for approval.(Source:https://ekantipur.com/business/2024/11/07/preparation-of-five-major-projects-on-fast-track-16-52.html) - TIA’s reduced flight hours could stall economic growth
Economists argue that it is still too early to measure the full impact, but the ten-hour closure of Nepal’s main international airport starting Friday is expected to result in significant economic losses. The country’s economic momentum, already weakened by the floods in late September, could face further challenges due to this government decision.
(Source:https://kathmandupost.com/money/2024/11/08/tia-s-reduced-flight-hours-could-stall-economic-growth) - Government Probes Tax Evasion in OTC Trading
Nepal’s Inland Revenue Department is investigating potential capital gains tax evasion in NEPSE’s OTC market, where prices are mutually set. NEPSE, which requires tax-paid invoices, is cooperating fully amid concerns over accurate transaction records.(Source:https://www.newbusinessage.com/article/government-investigating-potential-tax-evasion-in-otc-stock-trading )
