Nirdhan Utthan Bank Ltd (NUBL) received formal recognition as “National Level Microfinance Development Bank” from the central bank of Nepal, Nepal Rastra Bank (NRB).
The recognition came after the NUBL fulfilled the minimum capital requirement of NPR 100 million as paid-up equity. NUBL is first microfinance bank of Nepal to be recognized as National level microfinance bank.
Being a national level microfinance bank, it can now expand its service all over the country by establishing its branch network in all 75 districts of Nepal.
The journey of NUBL started with the inception of “Nirdhan” as an NGO in 1993 with establishment of project office in Siktohan VDC of Rupandehi, Nepal. Later, NUBL was created as a limited company to operate microfinance activities under Development Bank Act of Nepal. Now, operating under Bank and Financial Institution Act, Nirdhan Utthan Bank limited operates in 24 districts with 75 branch network.
Sunday, December 6, 2009
Tuesday, December 1, 2009
Global FDI flow increases in second quarter of 2009
Global foreign direct investment (FDI) flows experienced a rebound during the second quarter of this year compared with those in the first quarter. However, this flow of FDI is much lower in comparison to the same period last year. The Global FDI Quarterly Index in the second quarter of 2009 was 45 points lower than that a year ago, it said adding that initial indicators for the third quarter show no signs of a further pick-up in FDI flows.
According to the UNCTAD’s Global FDI Trend Monitor, the global FDI quarterly index rose to 115 from 70 in the second quarter.
“The rebound was reflected in G20 economies with a 38 per cent increase in FDI inflows as compared to the first quarter of this year,” said the report. But this rebound was not uniform. For example, the pick-up in the second quarter was particularly marked in some European Union economies such as France, Germany, Spain, Ireland and Sweden, while flows remained relatively low in economies such as the United States or, in a few cases, even declined (e.g. the United Kingdom). In emerging economies, slight increases were observed in Brazil, India and the Russian Federation, while inflows remained practically unchanged in China.
Two factors, however, suggest that the pick-up in the second quarter of 2009 should be treated with some caution. First, the absolute level of FDI flows was considerably lower than that in the same period of 2008 (figure 1), which puts the rebound in perspective. Second, this pick-up seems to be mostly attributable to an increase in intra-company flows and reinvested earning, while equity flows remained unchanged, and at a low level. As equity flows are the FDI component, most directly related to TNCs’ longer-term investments strategies, this suggests that companies remain cautious about their international expansion.
However, this flow of FDI is much lower in comparison to the same period last year. The Global FDI Quarterly Index in the second quarter of 2009 was 45 points lower than that a year ago, it said adding that initial indicators for the third quarter show no signs of a further pick-up in FDI flows.
The report said that overall, global FDI for this year – as a whole is likely to remain sluggish and significantly lower than in last year despite gradual improvement in world business outlook.
In order to provide the international investment community with a timely periodic assessment of global FDI flows, UNCTAD’s Investment and Enterprise Division has launched today the Global Investment Trends Monitor (GITM). The Monitor will be released every quarter of the year (in mid- January, mid-April, mid-July and mid-October). Each issue of the Monitor will provide 1) FDI trends for the latest quarter for which definite data are available, as well as 2) an early indication of trends for the quarter ending just prior to the publication of the Monitor. In order to present the global investment trends clearly, with a view to user requirements, UNCTAD has developed the Global FDI Quarterly Index. This index is based on quarterly data of FDI inflows for 67 countries and economies,2 which together account for roughly 90% of global FDI flows. The index has been calculated from the year 2000 onwards and calibrated such that the average of quarterly flows in 2005 is equivalent to 100.
The current inaugural issue of the Monitor covers global FDI trends in the second quarter of 2009 and also FDI estimates for the third quarters of 2009.
Global FDI Flow Quarterly Index
(2005 = 100)
2008 Q2 – 159.6
2008 Q3 – 132.9
2008 Q4 – 136.2
2009 Q1 – 69.6
2009 Q2 – 114.5
According to the UNCTAD’s Global FDI Trend Monitor, the global FDI quarterly index rose to 115 from 70 in the second quarter.
“The rebound was reflected in G20 economies with a 38 per cent increase in FDI inflows as compared to the first quarter of this year,” said the report. But this rebound was not uniform. For example, the pick-up in the second quarter was particularly marked in some European Union economies such as France, Germany, Spain, Ireland and Sweden, while flows remained relatively low in economies such as the United States or, in a few cases, even declined (e.g. the United Kingdom). In emerging economies, slight increases were observed in Brazil, India and the Russian Federation, while inflows remained practically unchanged in China.
Two factors, however, suggest that the pick-up in the second quarter of 2009 should be treated with some caution. First, the absolute level of FDI flows was considerably lower than that in the same period of 2008 (figure 1), which puts the rebound in perspective. Second, this pick-up seems to be mostly attributable to an increase in intra-company flows and reinvested earning, while equity flows remained unchanged, and at a low level. As equity flows are the FDI component, most directly related to TNCs’ longer-term investments strategies, this suggests that companies remain cautious about their international expansion.
However, this flow of FDI is much lower in comparison to the same period last year. The Global FDI Quarterly Index in the second quarter of 2009 was 45 points lower than that a year ago, it said adding that initial indicators for the third quarter show no signs of a further pick-up in FDI flows.
The report said that overall, global FDI for this year – as a whole is likely to remain sluggish and significantly lower than in last year despite gradual improvement in world business outlook.
In order to provide the international investment community with a timely periodic assessment of global FDI flows, UNCTAD’s Investment and Enterprise Division has launched today the Global Investment Trends Monitor (GITM). The Monitor will be released every quarter of the year (in mid- January, mid-April, mid-July and mid-October). Each issue of the Monitor will provide 1) FDI trends for the latest quarter for which definite data are available, as well as 2) an early indication of trends for the quarter ending just prior to the publication of the Monitor. In order to present the global investment trends clearly, with a view to user requirements, UNCTAD has developed the Global FDI Quarterly Index. This index is based on quarterly data of FDI inflows for 67 countries and economies,2 which together account for roughly 90% of global FDI flows. The index has been calculated from the year 2000 onwards and calibrated such that the average of quarterly flows in 2005 is equivalent to 100.
The current inaugural issue of the Monitor covers global FDI trends in the second quarter of 2009 and also FDI estimates for the third quarters of 2009.
Global FDI Flow Quarterly Index
(2005 = 100)
2008 Q2 – 159.6
2008 Q3 – 132.9
2008 Q4 – 136.2
2009 Q1 – 69.6
2009 Q2 – 114.5
Friday, November 27, 2009
Nepal targets overhaul of power network to reduce shortages, boost growth
Years of underinvestment in electricity infrastructure has left Nepal with one of the most unreliable power supplies in South Asia, putting a brake on the country’s economic growth.
In response, Asian Development Bank’s (ADB) Board of Directors has approved a loan of $65 million equivalent to strengthen and expand electricity transmission and distribution facilities in a bid to cut network losses and reduce frequent supply interruptions and outages, said the manila-based bank in its press release.
Funds will also be used to upgrade two hydropower plants, introduce compact fluorescent lamps, and install solar and solar-wind powered streetlights in a push to boost energy efficiency, increase the use of clean renewable technologies, and take some of the strain off the national grid. Public-Private franchising partnerships will be developed in selected urban areas to improve service quality to consumers, providing a model that could be replicated in future.
The Energy Access and Efficiency Improvement Project will support the Government of Nepal’s long-term vision to provide universal coverage using grid-based and off-grid supplies by 2027. Installed generating capacity at the end of 2008 was 615 MW with just 33 per cent of households connected to the national grid.
“The project will strengthen and increase supply capacity, increase consumer connections, improve the finances of the state-owned Nepal Electricity Authority, and eventually allow for increased cross-border energy trade, giving the economy a boost,” said Priyantha Wijayatunga, Energy Specialist in ADB’s South Asia Department.
An estimated 20,000 additional households are expected to directly benefit from the distribution improvements, while all 1.5 million grid-connected electricity consumers will receive more reliable power supplies. The installation of 1,000 solar and solar-wind streetlights in municipal areas of Bhaktapur, Kathmandu and Lalitpur will improve safety, particularly for women and children, while the project is expected to reduce an estimated 15,000 to 20,000 tons of carbon dioxide emissions annually.
ADB’s loan from its concessional Asian Development Fund covers 69% of the project cost of $93.7 million. The loan has a 32-year term, including a grace period of 8 years. Interest is charged at one per cent per annum during the grace period and 1.5 per cent per year for the rest of the term.
Grants totaling $4.5 million from the Climate Change Fund and Multi-Donor Clean Energy Fund, administered by ADB, will also be provided. The Government and Nepal Electricity Authority will supply the balance of $24.2 million. Nepal Electricity Authority is the executing agency for the project which is due for completion around September 2014.
In response, Asian Development Bank’s (ADB) Board of Directors has approved a loan of $65 million equivalent to strengthen and expand electricity transmission and distribution facilities in a bid to cut network losses and reduce frequent supply interruptions and outages, said the manila-based bank in its press release.
Funds will also be used to upgrade two hydropower plants, introduce compact fluorescent lamps, and install solar and solar-wind powered streetlights in a push to boost energy efficiency, increase the use of clean renewable technologies, and take some of the strain off the national grid. Public-Private franchising partnerships will be developed in selected urban areas to improve service quality to consumers, providing a model that could be replicated in future.
The Energy Access and Efficiency Improvement Project will support the Government of Nepal’s long-term vision to provide universal coverage using grid-based and off-grid supplies by 2027. Installed generating capacity at the end of 2008 was 615 MW with just 33 per cent of households connected to the national grid.
“The project will strengthen and increase supply capacity, increase consumer connections, improve the finances of the state-owned Nepal Electricity Authority, and eventually allow for increased cross-border energy trade, giving the economy a boost,” said Priyantha Wijayatunga, Energy Specialist in ADB’s South Asia Department.
An estimated 20,000 additional households are expected to directly benefit from the distribution improvements, while all 1.5 million grid-connected electricity consumers will receive more reliable power supplies. The installation of 1,000 solar and solar-wind streetlights in municipal areas of Bhaktapur, Kathmandu and Lalitpur will improve safety, particularly for women and children, while the project is expected to reduce an estimated 15,000 to 20,000 tons of carbon dioxide emissions annually.
ADB’s loan from its concessional Asian Development Fund covers 69% of the project cost of $93.7 million. The loan has a 32-year term, including a grace period of 8 years. Interest is charged at one per cent per annum during the grace period and 1.5 per cent per year for the rest of the term.
Grants totaling $4.5 million from the Climate Change Fund and Multi-Donor Clean Energy Fund, administered by ADB, will also be provided. The Government and Nepal Electricity Authority will supply the balance of $24.2 million. Nepal Electricity Authority is the executing agency for the project which is due for completion around September 2014.
Tuesday, November 24, 2009
IFC helps Nepal plan expanding financial services
IFC, a member of the World Bank Group, is helping microfinance institutions and banks in Nepal discuss strategies for expanding financial access by mobilizing deposits and using banking technologies such as payment cards, mobile phones, and retail agents. Microfinance institutions, banks, payment providers, regulators, and development partners from Nepal along with institutions from Bangladesh and India participated in the discussions at a workshop hosted by IFC at the request of the Nepal Rastra Bank (NRB).
Senior executives from Nepal Rastra Bank, Nirdhan Bank, Everest Bank, Bangladesh’s BRAC Bank, and Indian firms BASIX and FINO, were among those participating in the workshop on Expanding Access to Finance in Nepal: The Opportunity of Deposits and Banking Technologies. The conference was organized by SouthAsia Enterprise Development Facility, managed by IFC in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development Cooperation. Participants shared experiences, best practices, and innovations in other developing and emerging economies to explore opportunities for deposit mobilization and use of innovative technology in Nepal.
Bijaya Nath Bhattarai, governor of the Nepal Rastra Bank (NRB), said, “By engaging in a dialogue involving all the stakeholders, the workshop provides an opportunity to exchange ideas and determine how financial services can be extended beyond the current coverage of 30 percent of Nepal’s population. “
Microfinance institutions and banks discussed technologies that can transform and expand financial services. They also outlined the needed business models and regulatory framework required and shared experiences in Nepal and the South Asia region.
Speaking at the workshop, Anil Sinha, IFC General Manager for Advisory Services in South Asia, said: "The workshop provides a platform for microfinance institutions and banks to make financial services accessible to underserved people in Nepal, particularly those in rural areas who lack access to banks.”
By working closely with microfinance institutions, banks, and payment providers across South Asia, IFC assists in strengthening financial institutions and supporting appropriate regulatory frameworks.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by supporting institutions to extend financial services to underserved communities in Nepal.
To learn more about IFC’s activities in South Asia, visit www.ifc.org/southasia.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis.
Senior executives from Nepal Rastra Bank, Nirdhan Bank, Everest Bank, Bangladesh’s BRAC Bank, and Indian firms BASIX and FINO, were among those participating in the workshop on Expanding Access to Finance in Nepal: The Opportunity of Deposits and Banking Technologies. The conference was organized by SouthAsia Enterprise Development Facility, managed by IFC in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development Cooperation. Participants shared experiences, best practices, and innovations in other developing and emerging economies to explore opportunities for deposit mobilization and use of innovative technology in Nepal.
Bijaya Nath Bhattarai, governor of the Nepal Rastra Bank (NRB), said, “By engaging in a dialogue involving all the stakeholders, the workshop provides an opportunity to exchange ideas and determine how financial services can be extended beyond the current coverage of 30 percent of Nepal’s population. “
Microfinance institutions and banks discussed technologies that can transform and expand financial services. They also outlined the needed business models and regulatory framework required and shared experiences in Nepal and the South Asia region.
Speaking at the workshop, Anil Sinha, IFC General Manager for Advisory Services in South Asia, said: "The workshop provides a platform for microfinance institutions and banks to make financial services accessible to underserved people in Nepal, particularly those in rural areas who lack access to banks.”
By working closely with microfinance institutions, banks, and payment providers across South Asia, IFC assists in strengthening financial institutions and supporting appropriate regulatory frameworks.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by supporting institutions to extend financial services to underserved communities in Nepal.
To learn more about IFC’s activities in South Asia, visit www.ifc.org/southasia.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis.
Tuesday, November 17, 2009
MAURITIUS BUDGET 2010: People on Finanace Minister’s mind
PORT LOUIS: When the Finance minister reads out his budget speech on Wednesday he will keep ‘people’ in mind. His focus might also be on accelerating growth across various sectors.Since this is the last budget of this government, there is a high probability that it will "put people first" and therefore attempt an early harvest even though the financial space created was used to sustain the economy. Do not also expect any new reforms to be initiated, though existing reform programmes are doing fine.
Priority will thus have to be the safeguard of employment through various supports to businesses like continuation of stimulus packages and the maintenance of heavy public investment in infrastructure and other projects. This, unfortunately, could be at the cost of not bringing down the budget deficit to a manageable level.
The GDP growth should be propped back to its average level of five per cent so that jobs could be created and the debt-servicing eased through tax buoyancy.
That the economy is back on normal growth pattern and some more measures have been taken on the social front such as wage compensation, a betterment of the purchasing power and eradication of absolute poverty are pluses for the minister.
One can expect that the government to focus on utilities, particularly water supply and wastewater disposal programmes.
At the same time, investments in infrastructure and the stimulus package are keys to ensure job preservation and creation. The stimulus package that the government has offered has been fruitful. So it should be maintained as a shock observer for a traditional economy like ours that is still suffering from the global economic downturn. However, the government might review some of the programmes without disturbing the social dimension.
The MID (Maurice Ile Durable) fund could be reactivated in the context of the Copenhagen conference on climate changes and so would food security through regional initiatives.
The last budget has predicted budget deficit to GDP to rise to 4.8 per cent in December 2009 and it seems to be close to reality as the government spending continues to oil the wheel of the economy.
To eradicate poverty, the government has put in a lot of effort. The implementation of the two per cent Corporate Social Responsibility (CSR) Levy will soon be a reality and will go a long way towards poverty alleviation.
The major MID programme needs more regulatory framework for alternative forms of energy. This is more the priority as the price of oil looks to rocket further and electric cars seem to be of lesser priority.
Developing large infrastructure projects is a must to propel the economy. Infrastructure needs of this island country are high compared to available resources. This gap remains and therefore the focus will remain.
As Mauritius is a welfare state, the government has given a lot of emphasis on social security programme. The reinforcement of Mauritius as a Welfare State will and should continue as it will help those below the poverty line.
Among the sectors that might benefit could be the Small and Medium Enterprises (SMEs) segment that needs a re-look as it faces many challenges. Another sector expected to benefit would be the crisis-hit tourism industry.
Finally the common man will benefit as more jobs would be created and preserved, and social security benefits could be enhanced.
The budget could also have some surprises as there could be revised legislation to ensure a level playing field and any loophole is plugged for the new regulations in IRS/RES projects.
Though the government has been talking a lot about Knowledge Hub, Ile Durable, 24/7 working environment, it should also add a new working culture with a new mindset to be able to take the economy to the next level.
The reforms initiated since minister Sithanen’s first budget, if completed, will ensure that the country moves to the next level.
(In conversation with BDO De Chazal Du Mée's CEO Yacoob Ramtoola, corporate finance partner Afsar Ebrahim, and consultant Dr Babu Rajpatti.)
Rama Krishna Sithanen
Vice-Prime Minister and Minister of Finance and Economic Empowerment
Education: B Sc Economics (with First Class Honours), an MSc Economics (with a Mark of Distinction) at the London School of Economics and a PhD in Political Science from Brunel University
Tenure: Minister of Finance ( Sep 1991 to Dec 1995, 2005 to present). Elected to the National Assembly for Belle-Rose/Quatre Bornes (2005)
Distinction: Chosen by the Switzerland-based World Economic Forum in 1994 as one of the 100 Global Leaders for Tomorrow
Friday, November 13, 2009
Price hike starts to cool down
The price hike that has zoomed up last year has started to cool down.
According to Nepal Rastra Bank (NRB), the year-on-year (y-o-y) inflation -- as measured by the consumer price index -- moderated to 9.3 per cent in Mid-October 2009 against 14.1 per cent in the same period last year.
The food and beverage group -- especially Vegetables, sugar and sugar related products -- have become more expensive than last year.
Sugar and sugar related products have become more expensive as it increased by a whopping rate of 42 per cent in compared to an increase of 39.5 per cent in the same period last year. Similarly, the price indices of vegetables and fruits increased by 37.5 per cent in sharp contrast to last year's decline of 10.1 per cent.
Similarly, the price indices of pulses as well as meat, fish and eggs sub-groups also increased by 25.1 per cent and 22.7 per cent respectively compared to an increase of 24.7 per cent and 22 per cent in the same period last year, said the NRB.
Though, the prices of food and beverages have not come down, the prices of non-food and services group came down by over six times. “The price index of food and beverages group increased by 15.6 er cent but the index of non-food and services group rose only by two per cent,” said the central bank said adding that the index of food and beverages and non-food and services group had risen by 15.2 per cent and 12.9 per cent respectively in the first three months of last fiscal year.
Within the group of non-food and services, the index of tobacco and related products rose up by 17 per cent against to a rise of 12.7 per cent during the same period last year. However, the price index of transport and communication declined by 8.7 per cent in comparison to an increase of 23.1 per cent during the same period last year.
Surprisingly, the prices in Kathmandu Valley, Tarai and Hills have moderated as the price index of Kathmandu Valley rose by 9.7 per cent and followed by 9.4 per cent in Tarai and 8.5 per cent in Hills against 14.5 per cent, 14 per cent and 13.9 per cent last year.
The y-o-y core inflation also moderated to 10.9 per cent from 13.1 percent a year ago, the central bank’s data revealed.
Similarly, the salary and wage rate index also rose by more than a double to 22.1 per cent in comparison to a rise of nine per cent a year ago. “The increase in basic salary and allowances of civil servants and its simultaneous effect on salary of the private sector contributed to such an increase in salary index,” concluded the NRB report.
According to Nepal Rastra Bank (NRB), the year-on-year (y-o-y) inflation -- as measured by the consumer price index -- moderated to 9.3 per cent in Mid-October 2009 against 14.1 per cent in the same period last year.
The food and beverage group -- especially Vegetables, sugar and sugar related products -- have become more expensive than last year.
Sugar and sugar related products have become more expensive as it increased by a whopping rate of 42 per cent in compared to an increase of 39.5 per cent in the same period last year. Similarly, the price indices of vegetables and fruits increased by 37.5 per cent in sharp contrast to last year's decline of 10.1 per cent.
Similarly, the price indices of pulses as well as meat, fish and eggs sub-groups also increased by 25.1 per cent and 22.7 per cent respectively compared to an increase of 24.7 per cent and 22 per cent in the same period last year, said the NRB.
Though, the prices of food and beverages have not come down, the prices of non-food and services group came down by over six times. “The price index of food and beverages group increased by 15.6 er cent but the index of non-food and services group rose only by two per cent,” said the central bank said adding that the index of food and beverages and non-food and services group had risen by 15.2 per cent and 12.9 per cent respectively in the first three months of last fiscal year.
Within the group of non-food and services, the index of tobacco and related products rose up by 17 per cent against to a rise of 12.7 per cent during the same period last year. However, the price index of transport and communication declined by 8.7 per cent in comparison to an increase of 23.1 per cent during the same period last year.
Surprisingly, the prices in Kathmandu Valley, Tarai and Hills have moderated as the price index of Kathmandu Valley rose by 9.7 per cent and followed by 9.4 per cent in Tarai and 8.5 per cent in Hills against 14.5 per cent, 14 per cent and 13.9 per cent last year.
The y-o-y core inflation also moderated to 10.9 per cent from 13.1 percent a year ago, the central bank’s data revealed.
Similarly, the salary and wage rate index also rose by more than a double to 22.1 per cent in comparison to a rise of nine per cent a year ago. “The increase in basic salary and allowances of civil servants and its simultaneous effect on salary of the private sector contributed to such an increase in salary index,” concluded the NRB report.
Thursday, November 12, 2009
Government's failure inspending on development works leaves whopping Budget surplus
In the first two months of the current fiscal year 2009-10, government budget surplus stood at Rs 556.6 million in comparison to a surplus of Rs 3.4 billion in the same period last year, however the government spending has gone up by 69.8 per cent to Rs 26.6 billion in comparison to an increase of 40.4 per cent
“The increase was mainly on account of a rise in the growth of recurrent expenditure,” said the current macroeconomic situation based on the first two month's data of the current fiscal year published by the central bank.“Recurrent expenditure rose by a whopping rate of 108.1 per cent to Rs 17.6 billion, compared to a moderate rise of 11.9 per cent to Rs 8.4 billion in the same period last year,” the report said attributing the rise mainly to an upward revision in the salary and allowances of the civil servants and teachers.
Meanwhile, revenue mobilisation also grew by 54.5 per cent to Rs 22.6 billion compared to an increase of 17.5 per cent in the corresponding period of the previous year. Government's firm commitment to control the leakage in the revenue as well as tax administration reforms in conjunction with increasing import and consumption by virtue of high remittances inflow contributed to such an increase in the revenue mobilisation, said the report.
The government received foreign cash loans amounting to Rs 158.9 million and foreign cash grants amounting to Rs 2.72 billion, where as it had received foreign cash loans of Rs 625.1 million and foreign cash grants of Rs 2.12 billion in the same period of last fiscal year.However, exports fell by 15.2 per cent in contrast to a rise of 35.7 per cent in the same period last year. “Of the total exports, export to India declined by 13.2 per cent in contrast to a rise of 6.7 per cent. Exports to other countries plummeted by 17.4 per cent as against a rise of 94.7 percent in the same period of last fiscal year,” the Nepal Rastra Bank said.
The decline in the exports to India was attributed to the decline in the exports of readymade garments, zinc sheet, thread, copper wire rod and aluminum section, among others. Similarly, exports to other countries went down due to the decline in the export of woolen carpets, readymade garments, pulses, tanned skin and silverware and jewelleries.At the same time, total imports expanded by 20.3 per cent compared to a higher growth of 45.5 per cent in the corresponding period of the previous year. While imports from India rose by 17.3 per cent in the review period compared to a growth of 35.4 per cent, imports from other countries soared by 24.2 per cent in the review period compared to a significant growth of 60.7 per cent during the same period last year.
The Balance of Payment (BoP) deficit has also doubled to Rs 3.76 billion against the deficit of Rs 1.89 billion in the same period of the previous year. “The current account also posted a deficit of Rs 5.07 billion compared to a deficit of Rs 2.57 billion in the same periodlast year,” the report said.
Nepal received Rs 34.99 billion remittance
KATHMANDU: Nepal received Rs 34.99 billion in the first two months of the current fiscal year. “Under transfers, workers' remittances increased by 19.7 per cent in comparison to the growth of 59.4 per cent in the same period last fiscal year,” said the central bank report.
“The increase was mainly on account of a rise in the growth of recurrent expenditure,” said the current macroeconomic situation based on the first two month's data of the current fiscal year published by the central bank.“Recurrent expenditure rose by a whopping rate of 108.1 per cent to Rs 17.6 billion, compared to a moderate rise of 11.9 per cent to Rs 8.4 billion in the same period last year,” the report said attributing the rise mainly to an upward revision in the salary and allowances of the civil servants and teachers.
Meanwhile, revenue mobilisation also grew by 54.5 per cent to Rs 22.6 billion compared to an increase of 17.5 per cent in the corresponding period of the previous year. Government's firm commitment to control the leakage in the revenue as well as tax administration reforms in conjunction with increasing import and consumption by virtue of high remittances inflow contributed to such an increase in the revenue mobilisation, said the report.
The government received foreign cash loans amounting to Rs 158.9 million and foreign cash grants amounting to Rs 2.72 billion, where as it had received foreign cash loans of Rs 625.1 million and foreign cash grants of Rs 2.12 billion in the same period of last fiscal year.However, exports fell by 15.2 per cent in contrast to a rise of 35.7 per cent in the same period last year. “Of the total exports, export to India declined by 13.2 per cent in contrast to a rise of 6.7 per cent. Exports to other countries plummeted by 17.4 per cent as against a rise of 94.7 percent in the same period of last fiscal year,” the Nepal Rastra Bank said.
The decline in the exports to India was attributed to the decline in the exports of readymade garments, zinc sheet, thread, copper wire rod and aluminum section, among others. Similarly, exports to other countries went down due to the decline in the export of woolen carpets, readymade garments, pulses, tanned skin and silverware and jewelleries.At the same time, total imports expanded by 20.3 per cent compared to a higher growth of 45.5 per cent in the corresponding period of the previous year. While imports from India rose by 17.3 per cent in the review period compared to a growth of 35.4 per cent, imports from other countries soared by 24.2 per cent in the review period compared to a significant growth of 60.7 per cent during the same period last year.
The Balance of Payment (BoP) deficit has also doubled to Rs 3.76 billion against the deficit of Rs 1.89 billion in the same period of the previous year. “The current account also posted a deficit of Rs 5.07 billion compared to a deficit of Rs 2.57 billion in the same periodlast year,” the report said.
Nepal received Rs 34.99 billion remittance
KATHMANDU: Nepal received Rs 34.99 billion in the first two months of the current fiscal year. “Under transfers, workers' remittances increased by 19.7 per cent in comparison to the growth of 59.4 per cent in the same period last fiscal year,” said the central bank report.
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