Weekly economic updates (22 November 2024–28 November
2024)
3 min readNov 29, 2024
- Nepal Gets “BB-” Sovereign Credit Rating
Nepal’s successful “BB-” sovereign credit rating has eased the path for attracting foreign investment and securing loans at lower interest rates. Banks and financial institutions can now secure foreign loans at 1.5% lower costs. It also enhances transparency by presenting Nepal’s economic structure to global investors.
(Source:https://ekantipur.com/business/2024/11/22/after-the-rating-it-will-be-easy-for-nepal-to-get-foreign-investment-and-credit-minister-of-finance-07-55.html ) - Nepal Exports Tea Worth Rs 114 Million
The Nepal Multipurpose Cooperative exported tea worth NPR 114.3 million to India, processing 364,044 kg from 350 farmers. Operating three factories, NMC produces diverse teas, employs 52 people, and invests NPR 130 million in its business.(Source:https://ekantipur.com/en/business/2024/11/25/demand-of-tea-workers-of-darjeeling-to-stop-import-of-nepalese-tea-58-36.html ) - Darjeeling Tea Workers Demand Ban on Nepalese Tea Imports
Darjeeling tea leaders claim Nepali tea damages their market and reputation, urging India to ban imports. With 17 million kg exported in 2023, Nepali producers fear strategic restrictions, prompting calls for Nepal’s proactive response.(Source:https://ekantipur.com/en/business/2024/11/25/demand-of-tea-workers-of-darjeeling-to-stop-import-of-nepalese-tea-58-36.html ) - Gold Traders Applaud Reduced Gold Custom Duty
Nepal reduced gold customs duty, cutting prices by NPR 15,900 to NPR 151,300 per tola. Despite stock losses, traders welcomed the move to curb smuggling, stabilize markets, and revive border gold and silver businesses.
(Source:https://english.ratopati.com/story/36998) - Supreme Court Orders End of Gold Syndicate in Nepal
Nepal’s Supreme Court ordered end of the gold syndicate system, enabling traders to buy directly from banks without federation membership. The ruling, ensuring inclusivity and transparency, follows a petition against monopolistic practices under the 2011 Gold Distribution Procedure.
(Source: https://english.ratopati.com/story/37067 ) - Tourism, Agriculture, Medicinal Herbs Boosters for Karnali Economy
International IDEA Nepal identified tourism, agriculture, and medicinal herbs as Karnali’s economic drivers. Stakeholders emphasized organic farming, sustainable tourism, infrastructure, and marketing, stressing road networks, forest resources, and investments in agriculture, herbs, and micro-enterprises for development.
(Source:https://risingnepaldaily.com/news/52612 ) - ADB to Support Reconstruction of Kavre Integrated Water Supply Project
ADB will support reconstructing the NPR 218 million Kavre Valley Water Supply Scheme, damaged by floods. Serving 140,000 residents, the NPR 990.8 million project ensures 24-hour water supply for Banepa, Dhulikhel, and Panauti.
(Source:https://risingnepaldaily.com/news/52627 ) - Govt Issues Rs 2 Billion Citizen Saving Bonds
The government is issuing Rs 2 billion Citizen Saving Bonds 2086 (A) with 7.5% annual interest, five-year maturity, and semi-annual payments. Tradable and loan-collateralized, applications are open online from November 28 to December 29.(Source:https://myrepublica.nagariknetwork.com/news/govt-launches-rs-2-billion-citizen-saving-bonds-67469deaa453d.html ) - Construction Sector Slows as Government Struggles with Budget Spending
A CNI and SEJON study reveals Nepal’s struggle to utilize allocated budgets, hindering infrastructure growth. Despite NPR 11.2 trillion projected for investment, only NPR 300 billion is allocated annually, with 60% utilization. Experts call for reforms and better coordination.(Source:https://myrepublica.nagariknetwork.com/news/construction-sector-sluggish-as-govt-fails-to-spend-budget-674809a73c0f2.html ) - NEA Seeks Regulators’ Intervention for the Defaulting Industries
The Nepal Electricity Authority urged action against industrial defaulters after the government blocked power cuts. NEA requested Nepal Rastra Bank to freeze accounts and suspend share transactions, while the ERC reviews outstanding dues before further actions.(Source:https://myrepublica.nagariknetwork.com/news/nea-seeks-regulators-intervention-to-suspend-shares-transaction-of-defaulti...-67474a05ee419.html )
