Get a Quick Update on Nepal’s Business News with Khabarhub

Nepal’s economy faces challenges as foreign trade declines by Rs 36.69 billion in the first 10 months of the fiscal year. The total trade volume stood at Rs 1.429 trillion, with imports dominating at 91.17%. This significant drop in trade has hindered government revenue collection, achieving only 60% of the target. The country’s heavy reliance on imports, particularly for essential goods, poses a threat to its foreign exchange reserves and overall economic stability.

In a positive development, Nepal has ratified the BIMSTEC Charter after three decades, marking a significant milestone for the regional bloc. The Charter’s entry into force enables external partners, observers, and new members to join, enhancing collaboration and integration in the Asia-Pacific region. With seven member states and a substantial portion of the global population and economy, BIMSTEC is poised for expanded cooperation.

Meanwhile, the domestic gold market experienced a notable decline, with prices dropping for both fine gold and standard gold per tola. The decrease in silver prices further reinforces the trend of decreasing precious metal values, influenced by market demand and global economic conditions.

In Lumbini province, the decline in spring paddy farming has prompted farmers to switch to maize cultivation due to inadequate irrigation. Despite government efforts to expand paddy acreage, challenges persist, leading to a nationwide decline in cultivation. Additionally, Birgunj Metropolis faced a revenue shortfall amid an economic downturn, with land tax collection falling short of targets. The US dollar remained stable, while the Euro, Pound, and Australian dollar showed a decreasing trend, indicating potential fluctuations in currency exchange markets.