Weekly economic updates (06 December 2024–12 December
2024)
3 min readDec 13, 2024
- Tanahun Hydropower Project Nearing Completion
Nepal’s 140 MW Tanahun hydropower project is 63% complete, targeting May 2026. Co-funded by ADB, JICA, and EIB, it includes a 140m dam, 1493m tunnel, and 220 kV transmission line, generating 587.7 GWh annually.
(Source:https://kathmandupost.com/money/2024/12/12/nepal-s-third-storage-type-project-expected-to-be-completed-by-may-2026 ) - Pipeline Imports Kerosene After Petrol Success
After successful petrol tests, 1,000 kilolitres of kerosene were imported via the Raxaul-Amlekhgunj pipeline. Starting December, the pipeline will expand to include petrol and kerosene. Upgrades at Amlekhgunj depot ensure zero losses, reduced costs, and improved fuel quality.(Source:https://ekantipur.com/business/2024/12/12/after-diesel-and-gasoline-kerosene-from-the-pipeline-22-13.html ) - ADB and NEA Monitor Tanahun Hydropower Project
ADB and NEA inspected the 140 MW Tanahun Hydropower Project, discussing construction progress, land acquisition, and social-environmental measures. 63% complete, with a focus on the main dam, the $505 million project targets completion by 2026.(Source:https://ekantipur.com/business/2024/12/10/the-team-of-electricity-authority-and-adb-monitored-the-tanahun-hydropower-project-44-47.html ) - Tree Felling Delays Dodhara Chandani Dry Port
The NPR 15 billion Dodhara Chandani dry port project, crucial for Nepal-India trade, faces delays over compensatory tree-planting issues. The Nepal Intermodal Transport Development Board proposes NPR 150 million in cash compensation. Completion is targeted in three years.(Source:https://kathmandupost.com/money/2024/12/10/dodhara-chandani-dry-port-construction-stalls-again-over-tree-felling-issues ) - Uniform Tax Systems Urged to Curb Smuggling
Smuggling between Nepal and India has surged due to tax system disparities. Birgunj’s industrialists urge aligning Nepal’s customs with India’s GST to curb illegal trade. The Armed Police Force seized goods worth Rs 178.23 million in four months.(Source:https://english.ratopati.com/story/37451 ) - Kathmandu Launches Agro Pooling Initiative
Kathmandu Metropolitan City launched the “Agro Pooling Program” to streamline fresh produce distribution by collaborating with surrounding municipalities. The program promotes local agriculture, ensures quality, and offers affordable prices through agreements with producers, cooperatives, and distributors.(Source:https://ekantipur.com/business/2024/12/09/collecting-vegetables-from-other-municipalities-and-selling-them-in-kathmandu-metropolis-46-01.html ) - FNCCI’s Achievements Focus on Investment Reforms
The FNCCI highlighted 18 months of achievements, including amending eight laws, forming a high-level commission, digitizing tax operations, and promoting Nepal globally through international summits. It also advocated for economic reforms and private sector autonomy.(Source:https://ekantipur.com/business/2024/12/09/the-federation-published-the-details-of-one-and-a-half-year-achievements-emphasis-on-investment-friendly-environment-42-29.html ) - Coordinated Efforts to Combat Revenue Leakage
Kathmandu authorities aim to curb revenue leakage by interlinking tax systems like VCTS, ASYCUDA, and IRS for better audits and surveillance, targeting tax evasion, suspicious transactions, and business malpractice through joint patrols and stricter monitoring.(Source:https://english.ratopati.com/story/37402 ) - Remittances Worth NPR 521.63 Billion Flow into Country
Nepal received NPR 521.63 billion in remittances in the first four months of the fiscal year, marking a 9.1% increase. Labour approvals totalled 147,478, with net secondary income rising to NPR 568.26 billion.
Source:(https://myrepublica.nagariknetwork.com/news/remittances-worth-rs-52163-billion-flow-into-the-country-675baefee509d.html ) - Nepal’s BoP Surplus Hits NPR 258.3 Billion
Nepal’s Balance of Payments (BoP) surplus reached NPR 258.3 billion in the first four months of the fiscal year, up from NPR 150.24 billion last year. Exports rose by 4.2%, while imports increased slightly. The current account surplus and foreign investment inflows also grew.
Source:(https://myrepublica.nagariknetwork.com/news/nepals-bop-surplus-reaches-rs-2583-billion-675bad85d7745.html )