Prime Minister Pushpa Kamal Dahal Prachanda is advocating for a budget expansion exceeding the National Planning Commission’s set ceiling by at least two billion rupees for the upcoming fiscal year. Despite concerns about resource strain and increased liabilities, the focus remains on distribution-oriented programs to fulfill populist promises, even as the government heavily relies on loans for financial obligations.
In the financial market, the Nepal Stock Exchange (NEPSE) has seen a four-day surge, with Wednesday marking a 15.54-point increase, reaching a total of 2131.49 points. While overall sentiment is positive, individual company performance varies, with 81 companies seeing an increase in share prices, 161 companies experiencing a decrease, and 5 companies remaining stable.
Bagmati Province emerges as the dominant economic powerhouse in Nepal, contributing 36.4 percent to the country’s total GDP, while Karnali province lags behind with a modest 4.3 percent contribution. The National Statistics Office notes regional variations in economic growth, with Gandaki province showing the highest growth rate at 4.55 percent and Karnali province exhibiting the lowest at 3.39 percent.
In the commodities market, gold prices dipped by 100 rupees in the Nepali market, while silver prices rose by 15 rupees per tola. The fluctuation in precious metal prices reflects dynamic market conditions influenced by global factors and local demand.
Meanwhile, vegetable prices surged by 16.99% in mid-April due to various factors, including changes in India’s export policy, new taxes in Nepal, poor rainfall affecting production, and rising agricultural input costs. The government’s leniency on industrial dues regarding dedicated feeder and trunk lines has sparked discontent within the Nepal Electricity Authority, highlighting ongoing challenges in the industrial sector.