Weekly economic updates (28th June 2024–5th July 2024)
1.NOC Projects its Profit at NPR 1.80 billion per month- Nepal Oil Corporation (NOC) projects NPR 900 million in earnings in 15 days after raising petrol prices by NPR 2 per liter and diesel by NPR 5 per liter. The NOC has repeatedly garnered criticism for hiking prices and not reducing prices on par with international prices.
2. NPR 1.5 billion Investment Commitment in 11 months- Nepal received NPR 2.17 trillion in investment commitments across 383 new industries, with significant increases in both domestic and foreign investments. The investments, expected to create 26,027 jobs, include NPR 44.34 billion in foreign direct investment, surpassing estimates.
(Source: https://www.onlinekhabar.com/2024/07/1504078 )
3. Rastra Bank to Withdraw NPR 50 billion in Liquidity from the Banking System- Nepal Rastra Bank plans to collect NPR 50 billion using a 21-day reverse repo due to excess liquidity. With deposits of NPR 63.35 trillion and loans of NPR 51.49 trillion, the surplus has lowered inter-bank interest rates to 3%. Banks can participate in these deposit collection tools.
(Source: https://www.ratopati.com/story/435033/rastra-bank-to-draw-rs--billion-liquidity-from-banking-system )
4. Central Bank Permits QR Payment to India and Bhutan-Nepal Rastra Bank has allowed Nepali citizens to use QR code payments in India and Bhutan. The transaction limit is set at NPR 15,000 per day and NPR 100,000 per month.
(Source: https://kathmandupost.com/money/2024/06/28/nepal-permits-qr-code-payment-in-india-and-bhutan )
5. 57% rise in Suspicious Transaction Cases in 2023- Nepal Rastra Bank reported a 57% rise in suspicious financial transactions in 2023, with the Financial Investigation Unit recording 6,255 cases worth NPR 40 billion. The number of suspicious transactions has steadily increased over the last four years.
6. IME Group’s Major Acquisition to Revive Sastodeal- IME Group has acquired a 70% stake in the eCommerce platform Sastodeal, aiming to relaunch its operations by Shrawan 2081. The 70% of the shares includes the Dolma Impact Fund’s 60% equity stake valued at NPR 30 crore.
(Source: https://www.nepalitelecom.com/ime-group-buys-sastodeal )
7. Cooperatives Suspend Fertilizer Supply in Paddy Season- In Birgunj, cooperatives halted fertilizer supplies amid high demand during the crucial paddy transplantation season, causing panic among farmers. Despite adequate shipments and rainfall, cooperatives find quotas insufficient, leading to distribution conflicts.
(Source: https://kathmandupost.com/money/2024/07/04/cooperatives-halt-fertiliser-supply-in-paddy-season )
8. Over 583,000 Tourists Visit Nepal Within the First Six Months of 2024- According to the Nepal Tourism Board, nearly 600,000 foreign tourists arrived in Nepal via air in the first half of 2024, marking a 6.21% increase from June 2023. Tourist arrivals have steadily increased each month, with the government aiming to attract 1.6 million tourists in the fiscal year 2024/25.
(Source: https://myrepublica.nagariknetwork.com/news/over-583-000-tourists-visit-nepal-within-six-months/ )
9. NPR 100 billion Transacted in 60 kg Gold Smuggling Case- On July 17 last year, Nepal Police’s Central Investigation Bureau seized 60.72 kilograms of gold at Tribhuvan International Airport, It exposed a smuggling ring with transactions totaling NPR 124 billion, of which NPR 29 billion through illegal gateways.
(Source: https://myrepublica.nagariknetwork.com/news/rs-100-billion-transacted-in-60-kg-gold-smuggling-case/ )
10. Underutilized Cold Storages in Nepal Face Operational and Financial Challenges- Cold storage facilities in Nepal, constructed with government subsidies and private investments, are significantly underutilized, operating at only 40–50% of their 200,000 metric ton capacity due to poor planning, a lack of skilled manpower, and inadequate operational knowledge.
(Source: https://www.ratopati.com/story/434189/cold-storage-under-construction-sometimes-unusable )
