Weekly Economic Updates (19th July 2024–25th July 2024)
3 min readJul 26, 2024
- Nepal Reduces Government Expenditures to Address Revenue Pressures: The Nepalese government has cut expenditures by NPR 53 billion by reducing foreign visits, new purchases, allowances, and hotel programs, including a NPR 14.5 billion decrease in administrative costs and significant cuts in skill development and seminar expenses.
(Source: https://www.setopati.com/kinmel/economy/335063 ) - More than NPR 80 million worth of Medicinal Herbs Exported: Nepal exported medicinal herbs worth NPR 81 million through the eastern border at Kakarvitta this year, including 160 metric tons of Chiraito valued at NPR 46 million and 83 metric tons of Majitho worth NPR 16 million.
(Source: https://www.abhiyandaily.com/article/aatth-kroddko-jddiibuttii-niryaat ) - Nepal’s Customs Revenue Falls Short Amid Economic Slowdown: In FY 2023/24, Nepal’s customs revenue contributed 40% of the total, collecting NPR 420.16 billion, 66.93% of the target. Despite economic slowdown, revenue rose 7.54% from the previous year.
(Source: https://myrepublica.nagariknetwork.com/news/customs-revenue-made-up-around-40- ) - Rastra Bank to Liquidate NPR 40 Billion: The Rastra Bank will liquidate NPR 40 billion on July 9, 2081, through a 21-day deposit collection program. Banks must apply by 3 PM for amounts between NPR 100 million and NPR 50 billion.
(Source: https://www.ratopati.com/story/438506/rastra-bank-to-draw-rs--billion-liquidity-from-banking-system-today ) - Record Visits to Chitwan National Park Raise Conservation Concerns: Chitwan National Park had a record 300,000 visitors last fiscal year, with 58% being domestic. Revenue rose to NPR 367.29 million (USD 2.75 million), but conservationists are concerned about potential risks to wildlife.
(Source: https://kathmandupost.com/money/2024/07/22/wildlife-draws-record-tourists-alarms-conservationists ) - Tripartite Electricity Trade Agreement Among Nepal, India, and Bangladesh Nears Finalization: A tripartite electricity trade agreement among Nepal, India, and Bangladesh is set to finalize in late July. Bangladesh will import 40 megawatts of electricity from Nepal, earning Nepal NPR 1.23 billion during the peak season.
(Source: https://myrepublica.nagariknetwork.com/news/nepal-india-and-bangladesh-set-to-ink-tripartite-agreement-on-cross-border-power-trade/ ) - USAID Reports Exceptional Results in Nepal’s Economic Sector: USAID’s USD 62 million investment in Nepal boosted agricultural output by 139% and improved food security. A new five-year agreement will bring USD 659 million in aid, focusing on key areas like democracy and governance.
(Source: https://kathmandupost.com/money/2024/07/19/usaid-claims-better-than-expected-results-in-sectors-of-support-in-nepal ) - Government Plan to Revive Ailing Industries Stalls: Nepal’s plan to revive nine ailing industries has stalled due to political instability and bureaucratic delays. Despite efforts by the Ministry of Industry, key industries like Biratnagar Jute Mill and Janakpur Cigarette Factory remain inactive.
(Source: https://www.ratopati.com/story/438349/governments-plan-to-run-sick-industries-stalled) - Import of EVs increased three fold in the last fiscal year: In FY 2023/24, Nepal’s EV imports surged to 11,701 units, valued at NPR 29.482 billion, up from 4,050 units the previous year. The government earned NPR 13.2867 billion in revenue. China supplied 8,065 units, and India provided 3,377 units.
(Source: https://myrepublica.nagariknetwork.com/news/import-of-evs-increases-three-folds-to-11-701-units-worth-rs-29-billion-in-last-fy/ ) - Trade Volume Falls 1.33% in FY 2023/24 Amid Nepal’s Economic Slowdown: In FY 2023/24, Nepal’s trade volume decreased by 1.33% to NPR 1.745 trillion due to reduced private sector lending and government spending. Imports fell to NPR 1.592 trillion, and exports dropped to NPR 152.38 billion.
(Source: https://myrepublica.nagariknetwork.com/news/nepal-s-foreign-trade-volume-declined-1-33-percent-to-rs-1-745-trillion-in-fy-2023-24/ )
