Weekly economic updates (8 November 2024–14 November 2024)
3 min readNov 15, 2024
- NPR 1 Billion Budget for Startups, Loans to 1,000 Entrepreneurs
Nepal’s Industry Minister Damodar Bhandari announced an NPR 1 billion budget for startups, offering 3% interest loans to 1,000 entrepreneurs. The initiative supports diverse sectors, with funding from NPR 500,000 to NPR 2.5 million per entrepreneur.
(Source: https://ekantipur.com/en/business/2024/11/12/1-billion-budget-for-startups-loans-to-1000-entrepreneurs-48-21.html) - Lumbini Development Trust Approves Budget of Over NPR 775 Million
The Lumbini Development Trust approved an NPR 775.5 million budget for 2024–25, prioritizing pilgrimage, Lumbini promotion, and Master Plan implementation, funded by internal revenue and government grants, with an added focus on local collaboration and contract review.
(Source: https://risingnepaldaily.com/news/51801) - Government Increases Crop Insurance Subsidy for Small Farmers
The government revised crop and livestock insurance subsidies, offering up to 80% coverage for small farmers, to secure agricultural investments. The budget also funds sugarcane promotion, contract farming, and agricultural modernization, with oversight by a committee.
(Source: https://ekantipur.com/en/business/2024/11/13/in-agricultural-insurance-subsidy-is-more-for-small-farmers-less-for-big-farmers-48-54.html) - Nepalis to Use QR Payments in India from 2025
Starting in 2025, Nepalis may use QR code payments in India, thanks to a collaboration between Nepal’s Fonepay and India’s NPCI. This cross-border payment system aims to ease transactions for tourists and enhance economic integration.
(Source: https://kathmandupost.com/money/2024/11/13/nepalis-can-scan-and-pay-in-india-beginning-next-year) - Nepal Awaits India’s Response on Electricity Import
Facing a 900 MW winter shortfall, Nepal relies on annual electricity imports from India. The Nepal Electricity Authority has begun renewal talks, awaiting India’s response amid challenges from flood damages and production limits.
(Source: https://ekantipur.com/business/2024/11/08/india-has-not-responded-for-3-months-on-electricity-import-contract-renewal-00-39.html) - Nepal Urges World Bank to Fast-Track Upper Arun Hydropower Funding
The Government of Nepal has requested the World Bank to expedite funding for the delayed 1,063 MW Upper Arun Hydroelectric Project. Energy Minister Deepak Khadka emphasized urgency, while India’s Sutlej Jalvidyut Nigam seeks control of Arun basin projects.
(Source: https://myrepublica.nagariknetwork.com/news/nepal-requests-wb-to-expedite-financial-management-of-1063-mw-upper-arun-hy...-67340b0f01fa1.html) - Nepal Divided on Dairy Imports Amid Pressure
Nepal’s Industry Ministry advocates lifting the dairy import ban, but the Agriculture Ministry resists, citing risks to local farmers. Meanwhile, India’s pressure, including halted BIS certifications, complicates Nepal’s exports and fuels policy disagreements.
(Source: https://ekantipur.com/business/2024/11/11/the-ministry-of-industry-is-in-favor-of-opening-the-import-of-dairy-products-the-ministry-of-agriculture-is-not-open-24-14.html) - Despite NPR 1.25 Billion Loan, DDC Delays Payments to Farmers
The Dairy Development Corporation (DDC) received loans from Nepal’s Ministry of Finance but failed to pay farmers, who are owed NPR 1.5 billion. This delay, part of NPR 4 billion in arrears, leaves 200,000 farmers struggling financially.
(Source: https://ekantipur.com/business/2024/11/14/ddcs-negligence-to-pay-the-farmers-despite-taking-a-loan-of-15-billion-30-15.html) - Decline in Loans for the Underprivileged in Nepal
Loans to underprivileged groups in Nepal have decreased by NPR 6.5 billion, a 2.1% drop, while overall lending increased by 1.2%. Contributing factors include reduced microfinance lending due to high interest rates and economic slowdown.
(Source: https://ekantipur.com/business/2024/11/11/loans-of-poor-class-decreased-by-65-billion-13-43.html) - Rice Prices High Despite India’s Export Tax Removal
Despite India lifting its rice export ban, rice prices in Nepal remain high, with only a slight decrease in Jeera Masino rice. Increased rice smuggling and recent floods threaten Nepal’s food security and government revenue.
(Source: https://kathmandupost.com/money/2024/11/11/rice-prices-on-boil-despite-india-removing-export-taxes)
