Weekly economic updates (2nd August 2024–8th August 2024)
3 min readAug 9, 2024
- Kakarvitta Border Reopens to Third-Country Tourists After Four-Year Closure: Kakarvitta, a crucial Nepal-India border transit in Jhapa, reopened to third-country tourists after four years of COVID-19 closure. Tourists from over a dozen countries have since arrived, boosting tourism.
(Source: https://myrepublica.nagariknetwork.com/news/kakarvitta-border-point-opened-for-third-country-people/ ) - Rising Complaints Against Nepali Insurers for Delayed Claim Settlements: Nepali insurance companies are delaying claim settlements, resulting in a 57.41% rise in complaints to the Nepal Insurance Authority in FY 2023/24. Most involve non-life insurers and payout discrepancies.
(Source: https://myrepublica.nagariknetwork.com/news/complaints-related-to-insurance-claims-settlement-on-the-rise-nia/ ) - Government Plans Massive Domestic Debt Raise Amid Rising Public Debt Concerns: Nepal plans to raise NPR 1.15 trillion in domestic debt early in FY 2081/82, aiming to manage public debt costs. However, this may strain bank liquidity and private sector borrowing.
(Source: https://www.abhiyandaily.com/article/aantrik-rnn-philo-traimaasmai-1-khrbbhndaa-bddhii-utthaaun-srkaar-aghi-bddhyo ) - Indian TV Networks Halt Broadcast in Nepal Over Unpaid Dues: Indian TV networks halted broadcasts in Nepal over unpaid dues of NPR 1 billion by Nepali cable providers. The dispute centers on the ‘À la carte’ pricing system and payment issues.
(Source: https://myrepublica.nagariknetwork.com/news/four-indian-broadcasters-halt-70-associated-television-channels-in-nepal-over-rs-1-billion-dues/ ) - World Bank Grants Nepal USD 100 million for Road Network Improvement: The World Bank is providing Nepal USD 100 million to improve 3,000 km of roads, benefiting one million people in Sudurpaschim, Karnali, and Madhesh provinces, enhancing connectivity and safety.
(Soure: https://myrepublica.nagariknetwork.com/news/world-bank-to-provide-100-million-assistance-to-nepal-to-be-used-for-local-road-improvements/ ) - Heavy Rainfall Disrupts Khimti-Dhalkebar Transmission Line, Halts Power Exports: Heavy rainfall damaged the Khimti-Dhalkebar 220 KV transmission line, disrupting 300 MW of power supply and reducing Nepal’s electricity exports to India by up to 690 MW.
(Source: https://myrepublica.nagariknetwork.com/news/khimti-dhalkebar-transmission-line-disrupted-exports-to-india-reduced/ ) - Political Turmoil in Bangladesh Delays Nepal’s Electricity Export Agreement: The resignation of Bangladeshi Prime Minister Sheikh Hasina amid protests has delayed Nepal’s plan to export 40 MW of electricity to Bangladesh. Uncertainty now surrounds the tripartite deal and the Sunkoshi 3 hydropower project.
(Source: https://www.abhiyandaily.com/article/bnglaadeshmaa-bijulii-niryaat-jhn-anishcit ) - Government-Owned RACL to Build and Sell Homes in Nepal: Rastriya Awas Company Limited (RACL) will build and sell earthquake-resistant homes in Jhapa and Bardiya with a NPR 100 million budget, aiming to address land-use challenges and enhance profitability.
(Source: https://myrepublica.nagariknetwork.com/news/now-the-government-will-build-homes-and-sell-them/ ) - Nepal’s Budget Strained by Social Security Increase: Nepal’s social security allowances surged nearly 11-fold over the past decade to NPR 142 billion, straining the budget. Critics blame political competition for this unsustainable rise, now 8.16% of the total budget.
(Source: https://myrepublica.nagariknetwork.com/news/social-security-allowance-burden-soars-11-fold-over-a-decade/ ) - NRB Mops NPR 40 billion for Liquidity Management: The Nepal Rastra Bank (NRB) mopped NPR 40 billion for liquidity management using a 21-day bidding instrument, with NPR 37.6 billion still maturing, to stabilize the banking sector.
(Source: https://myrepublica.nagariknetwork.com/news/nrb-mops-rs-40-billion-from-system-to-manage-liquidity/ )
