Weekly Economic Updates (13 December 2024–19 December
2024)
1.Nepal’s BoP Surplus Hits NPR 258.3 Billion
Nepal’s Balance of Payments surplus reached NPR 258.3 billion in four months, driven by a 4.2% export rise and 0.2% import growth. Current account surplus hit NPR 143.42 billion; FDI inflows rose to NPR 5.76 billion.
2. Jyoti Group Transformed into Padma Jyoti Group
Jyoti Group rebrands as Padma Jyoti Group, emphasizing quality, innovation, and adaptability. Led by Padma Jyoti, Saurabh Jyoti, and family, the group aims to explore opportunities and drive future-focused development.
(Source:https://ekantipur.com/business/2024/12/16/jyoti-group-transformed-into-padma-jyoti-group-26-27.html )
3. Government Revenue and Expenditure Performance in FY 2024/25
In the first five months of 2024/25, Nepal’s revenue collection reached 28% of the target, expenditure 30%, and capital spending only 11.58%. Fiscal management spent 41.32%, mainly on debt payments, while foreign grants remained unused.
4. Power Cuts in Industry Amid Energy Shortfall
The NEA announced evening power cuts for industries due to reduced hydropower output and halted Indian imports. The 456 MW Upper Tamakoshi plant is non-operational, while residential consumers remain unaffected.
(Source:https://english.ratopati.com/story/37641 )
5. Sanjjen Hydropower Begins Commercial Electricity Production
Sanjjen Hydropower Project (42.5 MW) in Rasuwa began operations after delays from the 2015 earthquake and COVID-19. Featuring advanced cascade technology and a storage pond, it enhances Nepal’s energy balance and sustainable development.
6. FNCCI, KOIMA Pact to Boost Nepali Exports
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Korea Importers Association (KOIMA) signed an MoU to promote Nepali products in Korea and boost investment, celebrating 50 years of Nepal-Korea ties. The agreement aims to reduce Nepal’s NPR 7 billion trade deficit and foster economic collaboration.
(Source:https://risingnepaldaily.com/news/53969 )
7. NEA’s Profit Surpasses NPR 9 Billion in Three Months
The NEA reported a pre-tax profit of NPR 9.11 billion in Q1, with NPR 41.80 billion in revenue and NPR 32.69 billion in expenses. Electricity sales contributed NPR 28.95 billion, with NPR 21.09 billion spent on procurement.
(Source:https://thehimalayantimes.com/nepal/neas-profit-exceeds-rs-9-billion-in-three-months )
8. US Dollar Hits Record High in Nepal
The US dollar hit a record high in Nepal, with a buying rate of NPR 135.54 and selling at NPR 136.14. Other currencies, including the euro (NPR 142.80) and pound (NPR 172.82), also rose.
(Source:https://nepalnews.com/s/business/forex-us-dollar-sets-a-record-break-today )
9. Upper Tamakoshi Hydropower Restoration Progressing Swiftly
Nepal’s 456 MW Upper Tamakoshi Plant, damaged by landslides, targets partial 130 MW production by January 10 and full 456 MW by February. Repairs near completion, aiding winter load management and electricity supply.
10. 60% Nepalis in the US Send Remittance
An IIDS study found 60% of Nepalis in the US remit an average of USD 8,666 annually, totaling USD 1.28 billion in 2023. Funds support Nepal’s real estate and financial sectors, despite modest remittance levels.