Weekly economic updates (5th July 2024–11th July 2024)
3 min readJul 12, 2024
- BFIs Accumulate NPR 793 billion in Loanable Funds — Banks and financial institutions in Nepal have accumulated NPR 793 billion (USD 5.95 billion) in loanable funds due to low credit demand, with a credit-deposit ratio of 79.18%, below the NRB’s 90% ceiling.
(Source: https://myrepublica.nagariknetwork.com/news/bfis-accumulate-rs-793-billion-in-loanable-funds-due-to-slow-lending-and-excessive-deposit-collection/ ) - National Assembly Passes Upcoming Fiscal Year’s Budget- Nepal’s National Assembly has approved its budget, focusing on better capital expenditure and budget implementation. Key measures include banning project head transfers, dual shifts for priority projects, and new laws for project execution. The budget aims to boost employment, retain youth, and address provincial budget concerns.
(Source: https://www.karobardaily.com/news/261206 ) - Cooperative Fraud Investigation Panel Expedites its Work- A parliamentary committee in Nepal, led by CPN-UML lawmaker Surya Bahadur Thapa, has summoned operators of 29 cooperatives to address a fraud involving over NPR 200 billion. The committee has sought input from key officials and requested financial details from nine cooperatives.
(Source: https://myrepublica.nagariknetwork.com/news/cooperative-fraud-investigation-panel-expedites-its-work/ ) - NEA Secures Agreement to Export 40 MW to Bangladesh — The Nepal Electricity Authority (NEA) has signed a five-year deal with Bangladesh to sell 40 MW of electricity during the monsoon season at 6.40 US cents per unit. Bangladesh will cover transmission fees to ensure stable dollar payments and eliminate currency exchange risks.
(Source: https://myrepublica.nagariknetwork.com/amp/nepal-and-bangladesh-finalize-preparations-to-sign-40-mw-power-purchase-sale-agreement/ ) - Provincial and Local Level Government to Secure Internal Loans- Local and state governments in Nepal can now take internal loans under the new Public Debt Management Regulations 2080, effective from March 14, 2024. This regulation allows these governments to raise internal debt starting FY 2081/82 (2024/25 AD).
(Source: https://www.onlinekhabar.com/2024/07/1507004 ) - The IMF is Providing NPR 5.45 billion in Assistance to Nepal- The IMF will provide Nepal with the fourth installment of NPR 5.45 billion under the Extended Credit Facility, totaling NPR 32.69 billion received so far from a NPR 49 billion package. The funds aim to enhance financial and budgetary systems.
(Source: https://www.setopati.com/kinmel/economy/333989 ) - Nepal Gains NPR 250 Billion in Investments, Registers 383 Industries in 11 Months- The Department of Industry (DoI) confirmed over NPR 250 billion in investment commitments for FY 2023/24, registering 383 industries with NPR 200.17 billion in commitments. Additionally, 355 companies received FDI approval, creating 43,669 jobs.
(Source: https://myrepublica.nagariknetwork.com/news/nepal-receives-investment-commitments-worth-over-rs-250-billion-in-11-months-383-industries-registered/ ) - Government Pays NPR 33.61 billion on Final Payment Day- On the fiscal year’s last payment day, the Nepalese government disbursed NPR 33.61 billion, including NPR 9.85 billion for current expenses, NPR 14.40 billion for capital expenditures, and NPR 9.35 billion for financial management. This amount, 3% of the year’s total expenditure, matched the spending of the fiscal year’s first three months.
(Source: https://www.setopati.com/kinmel/economy/333823 ) - Kathmandu Metropolitan City Achieves Highest Budget Expenditure in 5 Years- Kathmandu Metropolitan City achieved its highest budget expenditure in five years, spending 51.04% of its NPR 24.02 billion budget for FY 2080/81. Capital expenditure rose to 42.35%, the highest in three years, due to better management and prioritization of plans.
(Source: https://www.setopati.com/kinmel/economy/333898 ) - Only a Quarter of Committed Foreign Aid Received- In the current fiscal year, Nepal received only a quarter of its pledged foreign aid: NPR 110 billion out of NPR 262.15 billion in grants and concessional loans. Delays in project implementation and reimbursement have caused this shortfall, with only 33% of committed aid obtained over the past five years.
(Source: https://www.setopati.com/kinmel/economy/333773 )
