Weekly Economic Updates (18 October 2024–24 October 2024)
1.The northern border has been closed for three weeks
Landslides in mid-October have nearly halted trade at Nepal’s Tatopani and Rasuwagadhi crossings with China. Perishable goods are spoiling, containers are stranded, and rising transportation costs are causing heavy losses for businesses ahead of Tihar.(Source:https://ekantipur.com/en/business/2024/10/17/the-northern-border-has-been-closed-for-three-weeks-55-06.html )
2. NAC pays back NPR 6.32 billion loan taken from EPF and CIT
Nepal Airlines repaid NPR 6.328 billion in loans to the Employees Provident Fund and Citizen Investment Trust for aircraft purchases. Amid COVID-19 impacts, NAC seeks interest and penalty waivers to ease further repayments.
(Source:https://myrepublica.nagariknetwork.com/news/nac-pays-back-rs-632-billion-loan-taken-from-epf-and-cit-6710cc51e56b0.html )
3. Tomato Prices Quadruple in Kathmandu Valley
Tomato prices in Kathmandu Valley surged fourfold, reaching NPR 200 per kg, due to supply disruptions from floods and landslides. Damaged farms and blocked highways have strained availability, with prices likely to remain high during upcoming festivals.(Source:https://kathmandupost.com/money/2024/10/21/tomato-prices-jump-fourfold-in-kathmandu-valley)
4. Tea worth NPR 1.71 billion exported in Q1
Tea exports through Mechi Customs increased by 36% in the first quarter, reaching 6,426 metric tonnes. The export value rose over 50% year-on-year to NPR 1.71 billion, according to Information Officer Ganapati Kandel.(Source:https://myrepublica.nagariknetwork.com/news/tea-worth-rs-171-billion-exported-in-q1-6715dd5fba638.html)
5. CGT collection plummets to NPR 586 million amid trading decline
Capital gains tax revenue from share transactions dropped sharply due to reduced stock trading. Between mid-September and mid-October, NPR 586.5 million was collected, only one-eighth of the amount collected in the fiscal year’s first month.(Source:https://myrepublica.nagariknetwork.com/news/cgt-collection-plummets-to-rs-586-million-amid-trading-decline-6715ae4c8d09b.html)
6. Nepal’s Public Debt Reaches Record Levels
Nepal’s public debt-to-GDP ratio reached 44.23% in Q1 FY 2024/25, the highest in 18 years, with debt rising to NPR 2.523 trillion. Analysts warn that unproductive spending and excessive debt could harm long-term economic growth.(Source:https://myrepublica.nagariknetwork.com/news/nepals-public-debt-to-gdp-ratio-reaches-4423-percent-with-an-additional-loa...-671706bde0c35.html)
7. Nepal Needs Inclusive Insurance for Protection
Experts emphasize Nepal’s low insurance coverage, at just 10%, despite frequent disasters. They stress the importance of microinsurance to protect vulnerable groups, reduce reliance on loan sharks, and support sustainable growth amid increasing climate-related risks.(Source:https://kathmandupost.com/money/2024/10/22/disaster-prone-nepal-has-low-insurance-base-experts)
8. Import of petroleum products from Birgunj declines by 25%
The construction sector slowdown has caused a 25% drop in diesel and petrol imports through Birgunj customs, leading to a 27.43% decline in revenue collection, according to the Birgunj customs office.(Source:https://myrepublica.nagariknetwork.com/news/import-of-petroleum-products-from-birgunj-declines-by-25-percent-67186891c7ad0.html)
9. Nepal’s Trade Declines in Fiscal Quarter
In Q1 of FY 2081/82, Nepal’s imports fell by 4.17% and exports by 6.11% year-on-year. Foreign trade totaled NPR 4.29 trillion, with a trade deficit of NPR 3.52 trillion, reflecting a 3.96% reduction in the deficit.
(Source: https://english.ratopati.com/story/35936)
10. Nepal’s imports rise during festival season
Nepal’s imports surged to NPR 128.21 billion last month due to Dashain and Tihar, making up 48.83% of Q1 imports. Despite this rise, overall imports fell by 4.17% and exports by 6.11%, leading to a NPR 352.37 billion trade deficit. Customs revenue increased making up 50.87% of the Q1 revenue .(Source:https://myrepublica.nagariknetwork.com/news/nepals-imports-saw-notable-rise-last-month-due-to-festivals-6719ad3e79883.html)
