Weekly Economic Updates (16th August 2024–22nd August 2024)
3 min readAug 23, 2024
- MCC Secures USD 126 Million Contracts in Nepal: The MCC Nepal Compact awarded USD 126 million for three 400 kV substations. Despite land issues, officials, including US Ambassador Thompson, are confident in the timely completion to boost Nepal’s power and economy.
(Source: https://kathmandupost.com/national/2024/08/22/in-a-year-mcc-projects-have-made-significant-achievements-claim-officials) - Minister Bhandari Champions Startup Growth with New Policy: Minister Damodar Bhandari urged fostering Nepal’s startup culture at Startup Nation 2030, highlighting startups’ role in diversifying industries and advancing technology. The National Startup Policy 2081 provides legal, financial, and funding support to create a supportive environment.
(Source: https://www.onlinekhabar.com/2024/08/1527388) - Nepal to Amend Securities Act to Include Derivatives Trading: Nepal is amending the Securities Act of 2006 to include derivatives trading. Finance Minister Bishnu Paudel submitted the Securities Act (First Amendment) Bill 2081, which regulates foreign exchange derivatives and expands the Securities Board’s oversight. The amendment aims to boost long-term foreign investment and enhance supervisory roles.
(Source: https://www.onlinekhabar.com/2024/08/1526610) - Nepal Launches NPR 2.5 million Startup Loans at 3% Interest: Nepal’s new “Startup Enterprise Loan Procedure, 2081” offers loans up to NPR 2.5 million at 3% interest for startups registered within the last 10 years. Managed by the Industrial Enterprises Development Institute, loans are available for up to five years to businesses using local materials and creating jobs.
(Source: https://myrepublica.nagariknetwork.com/news/govt-to-provide-startup-loans-of-up-to-rs-2-5-million-at-three-percent-interest-rate/ - India to Import Additional 251 MW from Nepal: India will import an additional 251 MW of electricity from Nepal, raising total imports to nearly 1,000 MW. This expansion highlights improved bilateral relations and Nepal’s shift to a net electricity exporter. Last year, Nepal exported 1.94 billion units and aims for NPR 27 billion in export revenue this year, with an installed capacity goal of 10,000 MW by FY 2028/29.
(Source: https://kathmandupost.com/money/2024/08/20/india-raises-imports-of-nepal-s-energy-to-nearly-1-000-mw) - Nepal Proposes New Regulatory Framework for Financial Cooperatives: Nepal proposes a new regulatory framework for financial cooperatives, akin to banks. The draft “Financial Cooperative (Regulation and Supervision) Act, 2081” aims to categorize cooperatives into three classes and establish a dedicated regulatory authority to manage increasing risks in cooperative financial activities.
(Source: https://www.abhiyandaily.com/article/shkaariilaaii-bainkko-moddlmaa-vrgiikrnn-grne-prstaav) - Revenue Up 20% in First Month of FY: Revenue collection surged 20.58% in the first month of FY, reaching NPR 88.86 billion, up from NPR 73.69 billion last year. The government targets NPR 1.419 trillion for the year, a 34% increase. Despite the rise, the annual goal remains unmet. Capital expenditure and financial management have also improved. (Source: https://www.karobardaily.com/news/264862)
- CNI Launches Third ‘Budget Watch’ for Effective Budget Implementation: CNI launched the third edition of its “Budget Watch” initiative to support the effective implementation of the 2081/82 budget. Chief Secretary Leela Devi Gadtoula highlighted the budget’s role in economic growth. The event, in collaboration with SEJON, gathered government officials, industry leaders, and journalists to focus on public-private dialogue for policy execution.
(Source: https://nagariknews.nagariknetwork.com/economy/1446106-1724307401.html) - Kailali Industries Receive Provincial Subsidies for Upgrades: Kailali’s Cottage and Small Industries Office subsidized 33 industries with Rs 300,000 to Rs 500,000 each under the ‘One Constituency One Industry’ program. Funded 80% by the provincial government, the subsidies aimed to upgrade local industries using materials like dairy, furniture, and agriculture.
(Source: https://ekantipur.com/business/2024/08/16/the-ministry-of-finance-has-prepared-a-100-day-action-plan-33-00.html) - Finance Ministry Launches 100-Day Economic Reform Plan: The Finance Ministry’s 100-day plan includes forming an Economic Reform Commission, launching a Revenue Mobilization Strategy, curbing revenue leakage, offering a 10% VAT refund on digital payments, and improving customs and savings bonds operations.
(Source: https://www.karobardaily.com/news/264862)
