Quick Update on Nepal’s Business News: Khabarhub

NEPSE, the Nepal Stock Exchange, saw a modest increase of 3.93 points, closing at 2,113.27, despite a decrease in daily turnover to Rs 3.89 billion. The market started the day at 2,109.34 points, dropped to a low of 2,097.58 points, then rose to a high of 2,124.5 points before closing for the day.

In other news, the government has yet to recover Rs 286 million in royalties from various hydropower projects. The Office of the Auditor General recommended imposing interest and penalty charges for late royalty payments to ensure timely recovery.

Banks have also failed to fully refund excess interest charged on loans, contrary to Nepal Rastra Bank directives. The report highlights the impact of higher premium rates on bank profits and income tax revenue, calling for comprehensive monitoring and action against non-compliance.

On a positive note, the government received a dividend of Rs 13.75 billion from its Rs 379.72 billion investment in public enterprises. Despite a 9.19 percent increase in share investment, the government only secured a 3.62 percent return.

Nepal’s tea sector continues to thrive, with exports reaching Rs 2.463 billion in the first eight months of FY 2023/24, showcasing a significant trade surplus. However, 15 public enterprises, including Nepal Airlines Corporation, are operating at a deficit, according to a parliamentary report.

Lastly, the government is unveiling the fiscal budget for 2024/025 today, with expectations of a total budget of around Rs. 2 trillion for the upcoming fiscal year.