Weekly economic updates (29 November 2024–05 December 2024)
- Monetary Policy Review: Old Policy Regime Continues
Nepal Rastra Bank’s first quarterly review maintains a 5% policy rate, with remittance growth boosting foreign exchange reserves to cover 14.6 months of imports. Reserves are expected to remain adequate throughout the fiscal year.
(Source: https://ekantipur.com/business/2024/11/29/first-quarterly-review-of-monetary-policy-continuity-of-old-policy-regime-03-18.html)
2. NPR 141 billion Approved for Hydropower Projects
The Investment Board approved NPR 141.13 billion for three hydropower projects: Budhi Gandaki (NPR 70 billion), Jagdulla (NPR 23.59 billion), and Chainpur Seti (NPR 47.54 billion), alongside approving Samrat Cement’s revised share structure.
(Source: https://ekantipur.com/business/2024/11/29/1-trillion-41-billion-investment-approved-in-three-hydropower-projects-58-24.html)
3. 400 kV Substation in Bahrabise Nears Completion
A 400 kV Bahrabise substation, 70% complete, will connect hydropower to Nepal’s grid via the Khimti–Bahrabise–Lapsiphedi line, aiding winter power flow to Kathmandu and monsoon exports to India. Completion is expected by mid-2025.
(Source: https://ekantipur.com/business/2024/12/03/construction-of-400-kv-twelve-bay-substation-is-in-full-swing-37-23.html)
4. Unsecured Loans for Poor Families’ Hydropower IPO
The Nepali government will provide unsecured, low-interest loans of NPR 0.2–0.5 millionto poor families for hydropower IPOs, targeting disadvantaged citizens in project-affected areas, aiming to improve living standards and promote resource equity.
(Source: https://ekantipur.com/en/business/2024/12/03/unsecured-cheap-loans-to-the-poor-to-buy-shares-in-janata-jalvidyut-40-05.html)
5. Possibility of a New Telecom Operator in Nepal
The Nepal government is assessing the feasibility of a new telecom operator to challenge Nepal Telecom and Ncell’s duopoly, enhance competition, and explore licensing and 5G rollout strategies under the Nepal Telecommunications Authority’s guidance.
(Source: https://ekantipur.com/business/2024/12/05/feasibility-study-for-introduction-of-new-telecommunication-service-provider-56-14.html)
6. NEPSE Declines by 15.93 Points
NEPSE closed at 2,734.93, dropping 15.93 points on December 6, 2024, with hydropower and microfinance stocks rising over 9%. Financial stocks gained 3.67%, while other sectors declined, totaling NPR 8.36 billion in trading volume.
(Source: https://english.ratopati.com/story/37310)
7. Nepal’s Credit Rating Spurs Economic Reform Calls
Nepal’s BB-credit rating, celebrated as a milestone, sparked calls for economic reforms. Stakeholders emphasized boosting private sector confidence, addressing revenue issues, and tackling political instability to leverage the rating for growth.
(Source: https://theannapurnaexpress.com/story/51471/)
8. Super Kabeli ‘A’ Hydropower Begins Production
The 13.5 MW Super Kabeli ‘A’ hydropower project in Taplejung, built by Snow Rivers Limited for NPR 2.63 billion, began operations, connecting to the national grid and boosting Nepal’s growing hydropower capacity.
(Source: https://ekantipur.com/business/2024/12/04/production-of-super-kabeli-a-hydropower-project-started-28-50.html)
9. Nepal Invites Foreign Investments in Key Sectors
Minister Bhandari, at the 29th Partnership Summit, highlighted Nepal’s liberal FDI policies with up to NPR 500 million, lowered thresholds to NPR 20 million, streamlined processes, and growth opportunities in tourism, hydropower, and IT, urging global investors to prioritize Nepal.
(Source: https://risingnepaldaily.com/news/53008)
10. Nepal-China Cooperation Boosts Connectivity and Trade
Nepal and China agreed to boost ties, focusing on infrastructure, trade, energy projects, and trans-Himalayan railway development. Key initiatives include border ports, economic corridors, and cooperation in exports, tourism, and education for sustainable growth.
(Source: https://www.fiscalnepal.com/2024/12/04/18712/joint-statement-highlights-nepal-china-cooperation-in-connectivity-and-trade/)