Weekly Economic Updates (18 August 2023- 24 August 2023)
1. NTA Allocates NPR 11 Billion for Telecom Expansion
Nepal Telecommunications Authority (NTA) plans a budget of NPR 11 billion to boost and expand telecom services in FY 2080/81. The authority identified 13 different areas for budget allocation to enhance and extend telecom services nationwide.
Source: https://www.nepalitelecom.com/2023/08/nta-budget-fy-2080-81-for-telecom-service.html
2. Remittances worth NPR 1.2 trillion collected
As per Nepal Rastra Bank, Nepal recorded an average monthly amount of NPR 100 billion in remittances during FY 2079/80 Bs (2022/23). The total received NPR 1.2 trillion annually till mid-July 2022/23. The increase was 21.2 percent from last year.
3. Government raises minimum wages
A formal notice by the Ministry of Labour, Employment and Social Security states the minimum wage for workers in the informal sector is raised to NPR 17,300. The earlier minimum wage was NPR 15,000 per month.
Source: https://myrepublica.nagariknetwork.com/news/minimum-wages-of-informal-sector-workers-upped/
4. MCC Compact Agreement to be implemented
The Millennium Challenge Corporation (MCC) Compact is set to be fully implemented from August 30. This follows a USD 500 million grant agreement signed between the US Government’s MCC and the Government of Nepal in September 2017.
Source: https://myrepublica.nagariknetwork.com/news/mcc-compact-agreement-to-come-in-full-fledged-implementation-from-august-30/
5. VAT rules changed for firms
In changed regulations, companies conducting transactions more than NPR 10 million are required to pay VAT on a monthly basis, while those with transactions less than NPR 10 million should make quarterly VAT payments.
Source: https://myrepublica.nagariknetwork.com/news/companies-doing-transaction-less-than-rs-10-million-can-now-pay-vat-on-quarterly-basis/
6. Climbing permits issuance yields over NPR 583 million
The Department of Tourism (DoT) gathered over NPR 583 million from 2427 climbing permits in 2022. Additionally, the government plans to amend the Tourism Act 1978 to raise climbing permit prices from 2025.
Source: https://thehimalayantimes.com/business/dot-collects-over-rs-583-million-in-royalties-from-issuing-climbing-permits
7. India’s Export Tax Impacts Supply to Nepal
India’s 40 percent export tax raises onion prices in Nepal. Coupled with Nepal’s added taxes, including Agricultural Infrastructure and Reform Tax, plus a 13% VAT, has caused onion costs to surge by around NPR 24 per kilogram impacting supply to Nepal. India’s export tax will continue until December.
Source: https://myrepublica.nagariknetwork.com/news/indian-tax-policy-makes-nepali-kitchen-dearer/
8. Private Sector Lending by BFIs Slows in FY 2022/23
Private sector lending by BFIs in Nepal slowed due to economic challenges impacting businesses in the last fiscal year. Nepal Rastra Bank’s data for FY 2022/23 reveals 3.8 percent growth, a decrease from the previous year’s 13.1%.
Source: https://myrepublica.nagariknetwork.com/news/private-sector-lending-by-bfis-slowed-in-fy-2022-23-amid-economic-recession-and-government-restrictions/
9. Nepal Achieves USD 2.21 Billion BoP Surplus
Nepal’s Balance of Payments (BoP) recorded a surplus of NPR 290.52 billion in the recent fiscal year. The Nepal Rastra Bank (NRB) report shows an improved BoP, reaching a surplus of USD 2.21 billion in FY 2022/23.
Source: https://myrepublica.nagariknetwork.com/news/nepal-improves-its-balance-of-payments-gains-a-surplus-of-2-21-billion-in-fy-2022-23/
10. Government Approves Relaxed IPO Rules
The government’s approval of the Securities Registration and Issuance (Seventh Amendment) Regulations 2080 relaxes IPO rules. Firms with over one billion rupees in paid up capital can issue premium primary shares after going public, while those with less than one billion maintain a three-year waiting period.
Source: https://merolagani.com/NewsDetail.aspx?newsID=94683
