Top Economic news for this week- 16th Magh to 22th Magh


Magh 23, 2072- Last week's main events that provide insight into current Nepalese economic environment have been briefly presented below:

  • According to the Inland Revenue Department (IRD), contribution of the Information Technology (IT) industry to the state coffer has jumped by eight times over the past six years. The department further stated that, IT industry contributed Rs.15.1 billion to the state coffer in Fiscal Year 2013/14, compared to Rs.2.3 billion in Fiscal Year 2009/10. It is estimated the contribution to exceed Rs.16 billion in this fiscal year – a growth of eight times in just six years.


  • Jewellers have urged the government to increase gold import quota to 40 kg per day during peak season (May-September) and at least 25 kg per day during other months at the earliest as increasing gold smuggling was affecting domestic jewelry industry. The government has been supplying 15 kg of gold to jewellers ever day through different commercial banks. However, the existing quota is insufficient to meet even half of the demand.


  • Nepal's plan to import petroleum products from China by signing a commercial deal is losing steam, as the government seems to have put the agenda on the backburner following improved supply from India. Indian Oil Corporation (IOC), which supplied merely 15 percent of Nepal's petroleum demand in the early months of the blockade which began in September, is currently supplying nearly 45 percent of Nepal's fuel demand. Officials also say the issue got sidelined also because of the government's decision to split Ministry of Commerce and Supplies (MoCS) into Ministry of Commerce (MoC) and Ministry of Supplies (MoS) and the split has created confusion among officials regarding their roles and responsibilities.


  • Former president of the Federation of Nepalese Chambers of Commerce and Industry Kush Kumar Joshi has resigned as board chairman of Nepal Purwadhar Bikash Company Limited (NPBCL) after failing to mobilize investments for the Kathmandu-Kulekhani-Hetauda Tunnel Highway. However, Joshi has cited personal reasons for his resignation.


  • The Sanima Mai Hydropower Project has generated seven megawatt electricity from its cascade project based at Danabari and Chisapani VDCs in Ilam district. The project has started its test production recently by completing the entire construction works. Official at the project said that the power generated from the project would be connected to the national transmission grid after fixing the technical pitfalls traced in course of the test production.


  • At a time when hotel occupancy has fallen below 30 percent making it difficult for existing hotels to sustain, a new hotel – The Amadablam Hotel – has started operation Kathmandu with investment of Rs.250 million.


  • With increasing insecurity and an ailing economy, some 300,000 Nepali migrant workers in Malaysia have asked the government to help them return home. Nepal received Rs.617.27 billion in remittance last year, out of which Malaysia's contribution stood at one-third. This current situation is going to hit the remittance flow and Nepal's economy as a whole.


  • Chief Executive Officer of the newly-formed National Reconstruction Authority (NRA), has proposed to convene a second international donor conference to collect additional funds for the reconstruction and rehabilitation of infrastructure destroyed by the earthquakes last year.


  • In a bid to diversify the market for domestic products and promote their exports, the government is preparing separate profile of markets in 10 countries with export potential. Unveiling its 100-day plan on Tuesday, Ministry of Commerce (MOC) said that 'focused profile' of 10 countries with high export potential for Nepali goods will be prepared soon. The ministry will prepare profiles of India, China, Bangladesh, USA, Germany, United Kingdom, France, Japan, Italy and Canada.


  • Frustrated by the delay in getting the promised loan and technical support from the government to build homes, quake survivors of Nuwakot district, who were rendered homeless by the devastating 7.8 magnitude earthquake of April 25, have started constructing traditional mud and stone houses of late.


  • The Office of the Prime Minister (PMO) and Council of Ministers on Thursday directed Nepal Oil Corporation to reduce fuel prices citing continuous drop in crude oil prices in the international market. In addition to that, the office of the Prime Minister also ordered Department of Transport Management (DoTM) to reduce fares of public transportation.


  • A two-day meeting of labor ministers of SAARC region is to be held in Kathmandu from May 3 to make a common concept for the protection of migrant workers. The meeting would prepare a common concept regarding rights, welfare and security of migrant workers of the SAARC region.
  • Visionary industrialist Lun Karan Das Chaudhary has passed away at Norvic Hospital on Thursday at the age of 93. He was suffering from heart ailment and diabetics. He is survived by his three sons, Binod Chadhary, Basanta Chaudhary and Arun Chaudhary, and a daughter Kusum Agrawal. The founder of the Chaudhary Group, which is the only Nepali company that has made it to the Forbes' list of billion dollar companies, Lun Karan Das is viewed as the pioneer of international trade and industrialization in Nepal.


  • The World Bank has agreed to provide total of USD 22.5 million as loan assistance to the government for the implementation of Power Sector Reform and Sustainable Hydropower Development Project.  The loan assistance covers World Bank's assistance of USD 20 million and South Asia Water Initiative Multi donor Trust Fund of USD 2.5 million for the implementation of Power Sector Reform and Sustainable Hydropower Development Project.


  • Nepal Airlines Corporation (NAC) has finalized its plan of establishing air connectivity with China. To begin with, the national flag carrier will start scheduled flight to Guanzhou within few months.


  • Nepal Stock Exchange (Nepse) index climbed 9.29 points on Thursday to close at record high of 1,251.42 points. The stock market has turned bullish in recent days as investors have become hopeful of Tarai turmoil and Indian blockade coming to an end soon. According to analysts, the stock market growth is also due to full-fledged implementation of dematerialized form of shares trading enforced by Nepse as part of its modernization plan. They also said liquidity surplus in the banking system has also fueled stock market growth.


  • The Birgunj blockade has been lifted after four months on Friday. With the long standing blockade lifted, cargo trucks have started entering into Nepal. Nepal Oil Corporation (NOC) is planning to send 35 fuel tankers to India via Birgunj on Friday night for the first time after India imposed the blockade.


  • The Commission for Investigation of Abuse of Authority has named education as the most corruption-prone sector. Out of the 31,231 corruption complaints registered at the anti-graft body in the fiscal year 2071-2072, the highest number of them was related to education.

"This summarized news has been written on the basis of news published on The Kathmandu Post and My Republica"