Weekly economic updates (12th July 2024–18th July 2024)
3 min readJul 19, 2024
- Over Six Development Banks and Financial Institutions Penalized- Nepal Rastra Bank fined over six development banks and financial institutions for regulatory breaches in Q4 of fiscal year 2080/81. Penalties included fines and restrictions on dividends, branch expansion, and executive perks.
(Source: https://www.abhiyandaily.com/article/aadhaa-drjnbhndaa-bddhii-vikaas-baink-r-vittiiy-snsthaa-kaarbaahiimaa ) - IMF Warns of Economic Risk from Troubled Cooperatives in Nepal- The IMF warns of economic risks in Nepal due to issues in the savings and credit cooperative sector, citing cooperative failures, fraud, and poor governance. It recommends halting new registrations and improving regulation to protect depositors and prevent social unrest.
(Source: https://kathmandupost.com/money/2024/07/17/annex-on-imf-report-shows-nepal-cooperatives-risks-advises-actions ) - Flood Causes Damage to Indrawati III Hydropower Project- Floods in Sindhupalchowk damaged the Indrawati III Hydropower Project, disrupting power supply, blocking roads, and destroying bridges. The floods also threatened settlements and agricultural land, causing significant risk of further floods and landslides.
(Source: https://myrepublica.nagariknetwork.com/news/indrawati-iii-hydropower-project-suffers-damage-due-to-flood/ ) - NOC hikes prices of petroleum products again- Nepal Oil Corporation raised petrol prices by NPR 4 per liter and diesel by NPR 3 per liter, effective Monday midnight, due to increased costs from the Indian Oil Corporation. New prices in various regions range from NPR 168.50 to NPR 171 for petrol and NPR 157.50 to NPR 160 for diesel.
(Source: https://myrepublica.nagariknetwork.com/news/noc-hikes-prices-of-petroleum-products-3/ ) - Mustang Sees a Spike in Tourism- In FY 2080/81 BS, Mustang saw 427,271 tourists, a rise of 47,504 from the previous year, mainly via the Beni-Jomsom road. The increase is attributed to better road transport, global recognition of the Annapurna cycle path, effective publicity, and convenient hotels, with most foreign tourists being Indians.
(Source: https://www.onlinekhabar.com/2024/07/1510210 ) - Government Given a Week’s Time to Clear Dues — Nepalese contractors warn of decisive protests if the government doesn’t clear their NPR 60 billion dues by the fiscal year’s end. Delayed payments over two years have strained the economy, with only NPR 15 billion released of the NPR 35 billion needed.
(Source: https://myrepublica.nagariknetwork.com/news/contractors-give-govt-a-week-s-ultimatum-to-clear-their-dues-worth-rs-60-billion/ ) - Nepal Airlines Repays NPR 439 Million in Loan Installments- Nepal Airlines Corporation repaid NPR 439.55 million to the Employee Provident Fund and Citizen Investment Fund for loans used to purchase aircraft. The narrowbody aircraft loan is fully paid, and the widebody aircraft loan is partially paid. The airline seeks waived interest and more installments due to pandemic impacts.
(Source: https://myrepublica.nagariknetwork.com/news/nac-repays-over-rs-430-million-in-loans-to-epf-and-cit/ ) - Nepal Falls Short of Revenue and Expenditure Targets in Fiscal Year 2023/24- In FY 2023/24, Nepal’s government collected 74.29% of its revenue target and spent 80.44% of its allocated budget, totaling NPR 1.408 trillion out of NPR 1.751 trillion. Economist Keshab Acharya highlighted the need for realistic budgeting and project prioritization to address national needs.
(Source: https://thehimalayantimes.com/nepal/fy-2023-24-review-revenue-collection-expenditures-fail-to-meet-targets ) - Banks Struggle with Excess Liquidity and Miss Loan Targets- Nepal’s banks missed loan targets, achieving less than half of the annual goal, resulting in NPR 3.57 trillion in excess liquidity. Despite increased deposits, loans grew by only NPR 2.79 trillion. The loan-to-deposit ratio is 77.75%.
(Source: https://theannapurnaexpress.com/story/47187/ ) - New Finance Minister Takes the Office- CPN-UML chair KP Sharma Oli was sworn in as Nepal’s prime minister for the fourth time, forming a 22-member Cabinet with two deputy prime ministers. Hon. Bishnu Paudel replaced Barshaman Pun as the Finance Minister.
(Source: https://kathmandupost.com/politics/2024/07/16/president-swears-in-a-22-member-cabinet-of-ministers )
