Weekly economic updates (15 October 2024–18 October 2024)
- Import of Motorcycles via Birgunj Customs is up by over 76%
Motorcycle imports through Birgunj Customs rose by 76.86% in the first two months of this FY 2024/25 AD, with 7,120 units imported. Despite a decline in four-wheeler imports, two-wheeler imports surged significantly.
(Source: https://english.aarthiknews.com/news/detail/17311/)
2. Dodhara Chandani Dry Port Project Advances
The Dodhara Chandani dry port project in far western Nepal has received land clearance to use 43 hectares of Mayapuri community forest. Valued at NPR 15 billion, it aims to boost Nepal-India trade and industrial development, reducing transportation costs.
(Source: https://kathmandupost.com/money/2024/10/16/dodhara-chandani-dry-port-project-gets-land-clearance)
3. NPR 4 trillion FDI Pledged in 10 Years, Only NPR 1.26 trillion Realized
In the past decade, Nepal received NPR 3.95 trillion in FDI commitments, but only 37.89% (NPR 1.26 trillion) was invested. Despite increased commitments, actual FDI remains low, prompting the government to lower the minimum to NPR 20 million and remove IT sector restrictions.
4. Nearly NPR 15 billion Spent on Studying Abroad in One Month
In July of FY 2024/25 (2081/2082 BS), Nepal spent NPR 14.92 billion on foreign studies, a 39% increase from FY 2023/24 (2080/81 BS). Over the past decade, NPR 1.25 trillion has been spent abroad, while foreign students spent NPR 17 million studying in Nepal last fiscal year.
5. Q1 Revenue Collection Stands at 17.49% of the Annual Target
In the first quarter of the current fiscal year, the government’s revenue collection reached only 17.49% of its annual target of NPR 1.419 trillion, totaling NPR 248.26 billion. This includes NPR 219.68 billion in tax revenue, NPR 28.57 billion in non-tax revenue, and NPR 4.75 billion from ‘other receipts.’
6. Commercial Banks Reduce Interest Rates on Deposits
The commercial banks have reduced the interest rate on deposits for the month of mid-October to mid-November (Kartik by an average of 0.21%. In the month of Ashoj, the average interest rate on the maximum personal term of these commercial banks was 6.39%. However, it decreased to 6.18% in Kartik.
7. BFIs Issued NPR 9.67 billion in Share Loans
In the first two months of FY 2024/25 AD, Banks and Financial Institutions (BFIs) provided NPR 9.67 billion in loans against shares, marking a 10.7% growth from mid-July to mid-September. As of the end of the last fiscal year, total lending in this segment was NPR 90.09 billion.
8. BFIs’ Private Sector Lending Grew 1.4 % in the first two months of FY 2024/25 AD
Private sector lending by BFIs increased by 1.4% in the first two months of this fiscal year, with NPR 73.39 billion issued, following a reduction in interest rates, according to Nepal Rastra Bank’s latest report.
9. NPR 4 billion Insurance Claims for Flood Damage
As of October 2024, insurance claims from continuous rainfall reached NPR 3.81 billion across 1,374 claims, with a potential rise to NPR 7.5 billion. Bagmati Province reported the highest claims, and total infrastructure damage is estimated at NPR 11 billion.
10. NIA estimates insurance claims from recent floods and landslides at NPR 7.5 billion
Following the late September floods, insurance claims are estimated to reach NPR 7.5 billion. As of October 8, 1,375 claims totaling NPR 3.817 billion were filed, with NPR 7.865 million already disbursed for 70 claims, reports the NIA.
