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South Korean President Yoon Suk Yeol has officially declared a "demographic national emergency" in response to the country's alarming demographic trends characterized by a record-low birth rate and an aging population.
The announcement comes as South Korea grapples with a total fertility rate of just 0.72, reflecting widespread socioeconomic challenges including high housing and education costs, coupled with demanding work environments.
President Yoon has outlined a comprehensive government strategy to address these issues, focusing on measures such as increasing parental leave benefits, expanding paternal leave options, implementing flexible work schedules, and reducing the financial burdens associated with raising children. This proactive stance aims to reverse the demographic decline and foster a more sustainable future for South Korea.
Nvidia has emerged as the world's most valuable company, surpassing Microsoft, with a market capitalization reaching $3.335 trillion on Tuesday after its shares rose 3.5 percent to $135.58.
This milestone comes shortly after Nvidia displaced Apple to become the second most valuable company globally. Meanwhile, Microsoft and Apple saw their shares decline by 0.45 percent and 1.1 percent, respectively. Nvidia's significant rally has not only driven record highs for the S&P 500 and Nasdaq indexes but also underscores its pivotal role in AI development, fueled by strong demand for its GPUs from tech giants like Microsoft, Meta, and Google.
The company's stock has surged by nearly 182 percent this year and more than tripled in 2023, solidifying its position as a leader in AI chip technology essential for data centers supporting AI models such as OpenAI's ChatGPT.
Hong Kong is set to end its decades-long practice of closing the stock market during typhoons and extreme weather. Chief Executive John Lee announced that the change has strong support from the financial sector and will align Hong Kong with other markets, such as mainland China's Shenzhen and Shanghai, which remain open during adverse weather conditions.
Lee stated at a news conference, "Shenzhen and Shanghai are now trading in bad weather. There is no reason why Hong Kong, as an international financial centre, should not follow suit." He added that continuous trading during inclement weather would enhance the competitiveness of the Hong Kong Exchange.
Hong Kong frequently experiences typhoons between June and October, and officials have warned of increasingly powerful and unpredictable storms in the future due to climate change. Last year, authorities issued the city's highest weather alert, T10, for Super Typhoon Saola, marking only the 16th time this alert level has been used since World War II. Despite this, last year's total of 11 storms of typhoon intensity or higher was below the average of about 15 storms per year recorded between 1961 and 2020, according to the Hong Kong Observatory.
The UK’s main stock market has regained its position as Europe’s most valuable for the first time in nearly two years, with the total value of companies listed on the London Stock Exchange (LSE) reaching $3.18 trillion on Monday, surpassing the $3.13 trillion value of companies listed in Paris, according to Bloomberg data.
Although both valuations remain close, analysts view this as a significant milestone, attributing the French market's decline to uncertainty surrounding its election, while the UK market is recovering from years of underperformance. The LSE had previously held the title of Europe’s largest stock market for many years until it was overtaken in November 2022 due to factors such as the fallout from former Prime Minister Liz Truss’ mini-Budget, a weak pound, recession fears, and Brexit.
In 2016, the LSE was worth about $1.4 trillion more than its Parisian counterpart. Analysts highlight that market investors generally dislike uncertainty, with concerns over the implications of the French snap election called by President Emmanuel Macron following Marine Le Pen's National Rally's victory in European elections.
The seven provincial governments of Nepal have announced a total budget of Rs 278.67 billion for the next fiscal year, a reduction of Rs 919.3 million from the current year's allocation. This marks the second consecutive annual decrease.
Bagmati Province, with the largest budget of Rs 64.54 billion, and Sudurpashchim Province have both increased their allocations. The combined budgets prioritize agriculture, employment, infrastructure, tourism, and entrepreneurship. Capital expenditure totals Rs 161.41 billion, recurrent expenditure is Rs 99.62 billion, and Rs 17.86 billion is allocated for debt financing and transfers.
Madhesh Province's Rs 43.89 billion budget designates 2082 BS as Tourism Year and focuses on literacy and environmental initiatives. Sudurpashchim and Karnali have budgets of Rs 31.62 billion and Rs 31.41 billion, respectively. Lumbini has allocated Rs 38.96 billion, Gandaki Rs 32.97 billion, and Koshi Rs 35.28 billion, with a focus on capital projects, electricity generation, and irrigation.
Nepal's government has spent only 44.68 percent of the funds allocated for development projects with just a month remaining in the current fiscal year, amounting to Rs 134.97 billion out of the Rs 302.07 billion budgeted for capital expenditure for FY 2023/24.
Historically, capital expenditure accelerates significantly in the final months of the fiscal year, with spending increasing from 16.3 percent in the first half to over 28 percent in the next five months, and Rs 37.6 billion spent in the past three months alone. Government agencies often inflate their development budget spending in the final days of the fiscal year, exemplified by Rs 2.40 billion in cash transfers between mid-April and mid-May.
This sluggish capital expenditure impacts economic growth and employment generation due to poor cash flow. Additionally, revenue collection has been disappointing, reaching only Rs 919.19 billion, or 64.62 percent of the targeted Rs 1.422 trillion, amid an economic slowdown. The government also struggled with grant receipts, achieving just 5.52 percent of the Rs 49.94 billion target, and recurrent expenditure reached 67.45 percent of the Rs 1.751 trillion target, with Rs 223.50 billion spent on debt servicing.
South Korean financial authorities announced an extension of the ban on short-selling until the end of March next year, citing the need for additional time to implement an electronic system to prevent illegal trading practices.
Originally imposed in November to address perceived inequalities between institutional and retail investors, the ban was set to expire this month. Vice Chairman Kim Soyoung of the Financial Services Commission highlighted concerns over potential large-scale illegal trades if short-selling were to resume without adequate electronic safeguards.
The commission plans to establish guidelines for institutional investors to voluntarily adopt preventive measures against illegal short-selling and intends for the Korea Exchange to implement a centralized system to detect "naked" short-selling activities. This decision follows revelations that nine global investment banks engaged in approximately 211.2 billion won worth of illegal short-selling trades between May 2021 and the end of 2023.
US Federal Reserve officials have signaled a cautious approach to interest rate cuts, with expectations now set for just one reduction this year, contrary to previous market expectations of two cuts.
Despite holding rates steady at 5.25 to 5.5 percent, the Fed's latest projections surprised analysts who had anticipated a more dovish stance based on earlier forecasts. This shift from the March "dot plot," which had indicated three potential cuts, underscores the Fed's ongoing concerns about inflation remaining above its 2 percent target. Fed Chair Jay Powell acknowledged recent consumer price index data showing some moderation in inflation, describing it as "encouraging," but emphasized the committee's cautious approach to adjusting rates.
The market initially responded with a rally in stocks and lower Treasury yields following the Fed's statement, though expectations for a September rate cut moderated later. This decision carries political implications as President Biden focuses on economic policies ahead of the upcoming election.
Nepal's foreign currency reserves surged to Rs 1.942 trillion by mid-May 2024, driven by a significant rise in remittance inflows and reduced import expenses. The Nepal Rastra Bank's report revealed an additional Rs 403.04 billion in foreign currency accumulation within the first ten months of the fiscal year, up from Rs 1.539 trillion in mid-July 2023.
In US dollar terms, reserves increased by 24.2 percent to $14.54 billion, sufficient for 15.1 months of merchandise imports and 12.6 months of total imports. Remittances grew by 19.2 percent to Rs 1.198 trillion, while merchandise imports fell by 2.4 percent to Rs 1.303 trillion, with a notable decline in imports from India and other countries, but a 34.4 percent rise from China.
Consequently, the current account recorded a surplus of Rs 193.25 billion, reversing a previous deficit. Despite a 17.2 percent drop in capital transfers and a modest net foreign direct investment of Rs 6.98 billion, consumer price inflation moderated to 4.4 percent, down from 7.41 percent a year earlier. Food and beverage prices rose by 6.27 percent, led by significant increases in vegetables, pulses, spices, cereals, and sugar.
Nepal will host the 21st meeting of the International Development Association (IDA) under the World Bank Group from June 18 to 21 in Kathmandu, inaugurated by Prime Minister Pushpa Kamal Dahal. This significant event, which Nepal secured over Tajikistan after six years of lobbying, will include three sessions and conclude with Finance Minister Barsha Man Pun as the chief guest.
Organized by a committee led by Secretary Madhukumar Marasini and a management committee headed by Shreekrishna Nepal, the meeting will see participation from World Bank President Ajay Banga, senior officials, and over 300 representatives from 60 donor and 90 partner countries. Discussions will focus on economic development, IDA's future tasks, and resource limits, while also raising global awareness of Nepal's development projects.
High-ranking officials will inspect ongoing World Bank-funded projects around Kathmandu post-meeting. The event follows extensive preparations by Finance Minister Pun, including discussions with World Bank officials during the Third Nepal Investment Summit and visits to the U.S. The previous IDA meeting in Japan committed $93 billion to low-income countries for pandemic recovery and green initiatives. Additionally, the World Bank is investing in Nepal's hydropower sector, including the 163 MW Upper Arun and 635 MW Dudhkoshi projects.
The International Monetary Fund (IMF) has raised concerns regarding Nepal's sluggish progress in economic and financial reforms, highlighting areas such as amending the Nepal Rastra Bank (NRB) Act, recommending international audits on bank credit, advocating for NRB autonomy by removing Ministry of Finance representatives from the NRB board.
Additionally, the IMF emphasized the importance of detailed reporting on tax collection fund utilization, scrutiny of financial risks, and the selection process in the national project bank. Collaborating with the government, the IMF aims to ensure that reform measures yield tangible results, including strategies for inland revenue mobilization, increasing capital expenditure, and enhancing financial transparency.
During a recent visit, the IMF confirmed Nepal's fourth installment under the Extended Credit Facility (ECF), a concessional loan approved during the COVID-19 pandemic for structural and policy reforms, with Nepal utilizing the loan for budgetary assistance.
Nepal’s third largest 400 kV substation has been completed in Thana Bharyang of Hetauda Sub-Metropolitan City-11, Makwanpur. This milestone signifies a significant advancement in Nepal's electrification efforts, bolstering the country's electricity transmission and distribution network.
Utilizing Gas Insulated System (GIS) technology, the substation, along with the 220 kV and 132/11 kV substations, plays a crucial role in the Nepal-India Transmission and Trade Project. Upon the completion of the Hetauda-Dalkebar-Inaruwa 400 kV transmission line project, it will facilitate the flow of 4,000 MW of electricity across the East-West corridor, strengthening domestic supply and enabling power trade with India.
Despite challenges, including construction delays and impacts from the Covid-19 pandemic, the project, funded jointly by the government, Nepal Electricity Authority (NEA), and World Bank concessional loans, demonstrates resilience, ensuring completion within the estimated budget.
The European Central Bank (ECB) has implemented its first interest rate cut since 2019, reducing the deposit rate from 4.0% to 3.75% due to progress in addressing inflation. In its recent forecasts released alongside this expected rate cut, the ECB projected that inflation would average 2.2% in 2025, up from the previous estimate of 2.0%, indicating that inflation will remain above the bank's 2% target into next year.
Although eurozone inflation has decreased to 2.6% from over 10% in late 2022, thanks to lower fuel costs and alleviated supply chain issues, recent data suggests that inflation may stay above target, creating uncertainty about further rate reductions. ECB President Christine Lagarde stressed that future rate decisions would be driven by data, considering domestic price pressures and wage growth. O
bservers are cautious, noting that actions by other central banks, particularly the U.S. Federal Reserve, could significantly influence the ECB's pace of future rate cuts.
The price of gold in the domestic market has reached another all-time high today, trading at Rs 144,000 per tola, an increase of Rs 1,800 per tola from yesterday. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of fine gold stood at Rs 142,200 per tola on Wednesday.
Similarly, the Federation has set the price of Tejabi gold at Rs 143,300 today, up from Rs 141,500 on Wednesday. This recent surge follows the previous highest recorded price for fine gold on June 4, 2024, which was Rs 142,700 per tola.
Likewise, silver is trading at Rs 1,850 per tola today, compared to Rs 1,825 per tola yesterday.
Nvidia has surpassed Apple to become the world’s second-most valuable company, driven by strong demand for its shares, which has pushed its valuation beyond $3 trillion. On Wednesday, Nvidia shares rose by 5.2 percent, closing at $1,224.40, and increasing the company’s market capitalization to $3.012 trillion.
This surge in Nvidia’s stock continues an impressive streak for the California-based company, whose graphics processing units have sparked a boom in artificial intelligence (AI). Over the past year, Nvidia’s revenues have skyrocketed by more than 260 percent as tech giants like Microsoft, Meta, Google, and Amazon compete to advance their AI capabilities.
Nvidia’s stock has more than doubled in value this year after tripling in 2023. The company recently announced a 10-for-1 stock split to make ownership more accessible to employees and investors. Conversely, Apple, the first company to surpass the $1 trillion and $2 trillion market capitalization milestones, is facing sluggish demand for its iPhones in China and concerns that it is lagging in AI adoption.
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has outlined plans to introduce a flexible monetary policy for the upcoming fiscal year, with a priority on supporting the private sector.
During a recent event, Governor Adhikari emphasized the necessity for the monetary policy to address challenges across various sectors of the economy, suggesting potential adjustments to both policy rates and bank rates. He also expressed confidence in the measures outlined in the annual budget to stimulate agricultural growth, projecting a six percent economic growth and a 5.5 percent inflation target for the next fiscal year.
Furthermore, Adhikari advised caution in lending practices to bankers, particularly as the NRB adopts an expansionary monetary policy approach.
Gold prices in Nepal have reached one all-time high after another, with fine gold soaring by Rs. 1,700 to an unprecedented Rs. 1,42,700 per tola on June 4, 2024, a substantial increase from its previous rate of Rs. 1,41,000, as reported by the Federation of Nepal Gold and Silver Traders' Association.
Similarly, the price of Tejabi gold experienced a remarkable uptick to Rs. 1,42,000 per tola, rising by Rs. 1,700 compared to the previous day's rate of Rs. 1,40,300. This latest surge surpasses the highest recorded price for fine gold, which was Rs. 1,42,200 per tola on May 31, 2024.
Additionally, the cost of silver has seen a slight increase of Rs. 25 per tola, with the new price standing at Rs. 1,860 per tola, up from yesterday's Rs. 1,835 per tola.
Indian stock markets soared to new record highs on Monday amid predictions of a decisive victory for Prime Minister Narendra Modi in the national elections. The Sensex and Nifty 50 indices, representing large and broad market performances respectively, each rose by more than 3% to close at their highest levels ever.
This surge followed the conclusion of India's extensive election process over the weekend. Modi, highlighting his economic achievements over the past decade, confidently anticipated reelection. Analysts, citing local exit polls, foresee a substantial increase from the 303 seats won by Modi's party in 2019, projecting around 370 seats this time, which has bolstered market optimism.
The stock market rally was also driven by India's robust economic growth, with an 8% expansion in the fiscal year ending in March, reinforcing its status as the fastest-growing major economy. Investors are optimistic that a strong majority for Modi will facilitate crucial land and labor reforms, essential for maintaining high growth rates and positioning India to become the world's third-largest economy by 2027, following the United States and China.
In May, Nepal experienced a notable surge in tourist arrivals by air, totaling 90,211 visitors, marking a 16.1 percent increase compared to the same period last year. India remained the primary source, contributing 38,288 tourists, representing a 4.7 percent uptick.
The United States followed with 8,527 arrivals, albeit with a marginal 0.2 percent decline. China notably surged with 8,381 visitors, a substantial 79.6 percent rise from the previous year. Bangladesh saw a significant increase of 59.8 percent, sending 3,458 tourists, while British arrivals slightly declined by 4.3 percent to 2,802.
Noteworthy increases were observed from Malaysia (37.3 percent), Germany (19.5 percent), South Korea (32.1 percent), and Russia (60.7 percent). France contributed 1,284 tourists, marking a 17 percent growth, and both Japan and Bhutan sent over 1,000 visitors each, with increases of 35 percent and 49.6 percent, respectively. This diverse mix of tourists signals a promising trend for Nepal's tourism industry.
Gautam Adani has reclaimed the title of the richest person in Asia following a surge in the stock prices of his conglomerate's listed companies, propelling him past Mukesh Ambani, the head of Reliance Industries. With a net worth of USD 111 billion, Adani now holds the 11th position on the global wealth list, surpassing Ambani, whose wealth amounts to USD 109 billion, according to the Bloomberg Billionaires Index.
Adani, the founder of the Adani Group, a prominent Indian infrastructure conglomerate headquartered in Ahmedabad, owns the country's largest private port and is a major player in global coal trading. The majority of Adani's wealth is attributed to his ownership stakes in six publicly traded companies within the Adani Group, which include Adani Enterprises (73%), Adani Power (72%), Adani Total Gas (37%), Adani Energy Solutions (73%), Adani Ports (66%), and Adani Green Energy (56%).
These companies, all headquartered in Ahmedabad, India, are publicly traded, with shares held by a consortium of individuals and entities that ultimately trace back to the Adani family's trust. These holdings are attributed to Gautam Adani, acknowledging his role as the founder of the conglomerate.
Nepal Rastra Bank (NRB) has introduced a 13-point Financial Inclusion Policy, 2024 to enhance financial access for the public. This policy promotes inclusive financial access, financial literacy, and awareness, and supports start-ups in digital technology as well as the growth of micro, small, and medium enterprises.
Additionally, NRB focuses on gender-based and environment-friendly banking, sustainable and broad-based economic development, and regulatory oversight of financial behavior. The policy also aims to develop financial infrastructure, foster partnerships and collaborations, and improve data collection, analysis, evaluation, and periodic surveys.
A study by NRB titled "Financial Access in Nepal" conducted in 2078 found that as of Asar 2077, 67.3 percent of the population had accounts in A, B, and C class financial institutions.
Nepal's gold and silver market has achieved a historic milestone, with prices reaching unprecedented levels on May 31, 2024. According to the Federation of Nepal Gold and Silver Traders' Association, the price of fine gold soared by Rs. 1,700 to an all-time high of Rs. 1,42,200 per tola, surpassing the previous rate of Rs. 1,40,500.
Tejabi gold also experienced a significant rise, increasing by Rs. 1,700 to Rs. 1,41,500 per tola from Rs. 1,39,800 per tola. This surge has eclipsed the previous record for fine gold, which was Rs. 1,41,800 per tola on May 20, 2024.
In contrast, the silver market saw a slight decline, with prices dropping by Rs. 25 per tola to Rs. 1,875 from the previous day's Rs. 1,900 per tola.
Prime Minister Pushpa Kamal Dahal 'Prachanda' announced the government's plan to implement an Employment Bank to leverage the nation's human resources based on their knowledge, skills, and technical expertise.
Speaking at the Koshi Province Shramadhan Employment Fair, the PM emphasized that the Employment Bank will address job demand and supply while fostering entrepreneurship, particularly by utilizing the labor, skills, and experiences of returnee migrants and domestic workers. The upcoming fiscal year's budget includes provisions to provide employment for up to 100,000 returnee migrants, ensuring their skills and capital are effectively utilized.
Additionally, the PM highlighted the government's commitment to worker welfare, aligning with the Sustainable Development Goals (SDGs) and related policies and programs to ensure good health and well-being for the workforce.
Russia has announced plans to raise taxes on businesses and the wealthy as it needs for additional revenue to fund its invasion of Ukraine. With government spending surpassing revenue since Moscow's military intervention in February 2022, exacerbated by sanctions impacting energy sales to Europe, the Ministry of Finance proposed new tax thresholds and a corporation tax hike.
These amendments, expected to generate about $29 billion annually, aim to establish a fairer tax system and bolster economic stability. President Vladimir Putin hinted at this shift towards progressive taxation before his recent reelection, marking a departure from the longstanding flat income tax rate.
Currently at 13 percent for most Russians, with higher earners taxed at 15 percent, these changes are set to be implemented in 2025. Meanwhile, the corporate tax is set to increase from 20 percent to 25 percent, contributing an additional 1.6 trillion rubles to the budget in 2025.
Finance Minister Barsha Man Pun presented the annual budget for the fiscal year 2024/25 in a joint session of the federal parliament, unveiling a total budget of Rs 1.860 trillion, surpassing the National Planning Commission's ceiling of Rs 1.8 trillion.
The budget reflects a 6.2 percent increase from the current fiscal year, with Rs 1.14066 trillion (61.31 percent) allocated for recurrent expenditure and Rs 352.35 billion (18.94 percent) for capital expenditure, compared to Rs 1.141 trillion and Rs 302 billion respectively in the current fiscal year.
Additionally, Rs 367.18 billion has been allocated for financing provision, representing a 19.4 percent increase from the previous fiscal year, attributed largely to a surge in both domestic and external loans, necessitated by inadequate revenue collection.
The government is set to unveil the fiscal year 2081/82 BS budget today, with Finance Minister Barshaman Pun scheduled to present it at a joint sitting of the federal parliaments at 3:00 pm.
The budget will outline the estimated annual spending and revenue, as confirmed by the parliament secretariat. According to Article 119 of the Constitution of Nepal, 2072, the government must present the annual budget to the joint meeting of the federal parliament.
This submission must include the expenditure allocated to each ministry in the previous financial year and details on whether the targets were achieved. The constitution mandates that revenue and expenditure estimates be submitted to the Federal Parliament on the 15th of every Jestha.
In Nepal, out of 44 public institutions, 26 were profitable in FY 2022/23, generating a total operating income of Rs 661.01 billion, with a net profit of Rs 48.51 billion, an increase from the previous fiscal year. Notably, the Nepal Oil Corporation (NOC) significantly contributed to this profit, reversing a previous loss of Rs 38.17 billion to a profit of Rs 11.72 billion.
Government investment in these institutions rose by 8.62% to Rs 661 billion, including Rs 379 billion in shares and Rs 281 billion in loans, and these institutions employed 32,180 people, leading to an accumulated profit of Rs 61.14 billion.
The Ministry of Finance reported administrative expenses of Rs 43.10 billion and identified the NOC, Nepal Electricity Authority, Nepal Telecommunications Authority, Citizen Investment Trust, and Deposit and Credit Guarantee Fund as the most profitable entities, while the Civil Aviation Authority, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement Industries Limited, and Nepal Television incurred the highest losses.
Despite persistent protests from the opposition, the government's policy and program successfully passed in the House of Representatives today. The Nepali Congress had been obstructing parliamentary proceedings, demanding an investigation into co-operatives allegations. Despite disruptions, discussions proceeded, and the policy and program were approved.
Similarly, the budget for the fiscal year 2024/25 will be presented on Tuesday, May 28 at 1 PM. Speaker Devraj Ghimire announced during a House of Representatives meeting on Sunday that a joint session of the Federal Parliament will convene for this purpose.
According to Article 119 of the Constitution, the budget must be presented at a joint meeting of the Federal Parliament on May 28. Finance Minister Barshaman Pun will deliver the budget for the upcoming fiscal year.
Nepal's outstanding public debt has reached nearly Rs 2.4 trillion, rising by Rs 98 billion in the last 10 months of the current fiscal year, according to the Public Debt Management Office (PDMO).
At the beginning of the fiscal year, public debt was Rs 2.299 trillion, accounting for 42.02 percent of GDP. Last month alone saw an increase of Rs 11.64 billion. Internal debt represents 20.76 percent of GDP, while foreign debt constitutes 21.26 percent.
The PDMO reported that the government collected Rs 264.63 billion in loans by the end of Baisakh, repaying Rs 166.55 billion in principal during the same period. Of the total loan recovery, Rs 191 billion was from internal loans, and Rs 73.63 billion was from foreign loans.
The Reserve Bank of India (RBI) has approved a record ₹2.11 lakh crore dividend payout to the central government for the 2023-24 fiscal year, more than doubling the previous year's amount.
This decision, taken at the 608th meeting of the Central Board of Directors chaired by Governor Shaktikanta Das, will help shore up government revenue ahead of a new administration taking office. The approved transfer of ₹2,10,874 crore significantly surpasses the ₹1.02 lakh crore budgeted for dividends from the RBI and other financial institutions for 2024-25.
Last year's payout was ₹87,416 crore, with the previous high being ₹1.76 lakh crore in 2018-19. This substantial dividend will aid in containing the fiscal deficit, projected at ₹17.34 lakh crore (5.1% of GDP) for the current financial year. The RBI board also reviewed the global and domestic economic scenarios and associated growth risks.
Bagmati Province is expected to lead in contributing to Nepal's GDP, while Karnali Province is projected to be at the bottom, according to the Provincial GDP Estimates for 2080/81 BS released by the National Statistics Office.
Bagmati Province is estimated to contribute 36.4 percent to the national GDP, followed by Koshi Province at 15.8 percent, Lumbini at 14.3 percent, Madhesh at 13.1 percent, Gandaki at 9.1 percent, and Sudurpaschim at 7.1 percent, with Karnali Province contributing the least at 4.3 percent. The revised estimates for the previous fiscal year, 2079/80, show a marginal decline in GDP contributions from Koshi, Madhesh, Karnali, and Sudurpaschim provinces, while others have seen slight increases.
The GDP at consumer price for the current fiscal year is estimated at Rs 575 billion. Since adopting federalism, the Office has monitored economic activities and produced data to support evidence-based policymaking and reduce socioeconomic disparities.
Falling gas and electricity prices have led to a significant decline in UK inflation, dropping to its lowest level in nearly three years at 2.3% in April from 3.2% the previous month, according to the Office for National Statistics. Despite this decrease, inflation remains above the Bank of England's target of 2%.
The possibility of interest rate cuts has been hinted at by the Bank, given the current rate stands at 5.25%, the highest in 16 years. Lower energy prices, primarily driven by a reduced price cap, contributed significantly to the inflation drop, with energy costs down by 27% compared to the previous year, notably with gas prices plummeting by 38%.
While some food items experienced price decreases, prime Minister Rishi Sunak views the situation as a positive turning point for the economy, emphasizing the need to adhere to economic improvement plans, while Labour's shadow chancellor Rachel Reeves urges caution, emphasizing the broader economic challenges that persist.
Nepal’s total foreign trade declined by Rs 36.69 billion in the first 10 months of the current fiscal year, with the total trade standing at Rs 1.429 trillion, down from Rs 1.466 trillion the previous year, due to an ongoing economic slowdown.
Both imports and exports decreased, with imports at Rs 1.303 trillion, down from Rs 1.335 trillion, and exports falling by 3.61 percent to Rs 126.17 billion. This led to a trade deficit of Rs 1.177 trillion, which, although slightly reduced by 2.26 percent from last year, highlights the significant gap where import spending vastly outweighs export earnings.
The export share was 8.83 percent of the trade volume, with imports at 91.17 percent, and an import-to-export ratio of 10.33. Monthly imports peaked during Dashain and Tihar but declined subsequently, impacting the government's revenue collection target, achieving less than 60 percent of the Rs 1.422 trillion goal with two months remaining in the fiscal year.
The gold and silver markets in Nepal have been reaching new heights daily, hitting a historic peak on May 20, 2024. According to the Federation of Nepal Gold and Silver Traders' Association, the price of fine gold surged by Rs. 900 to an extraordinary Rs. 1,41,800 per tola, a significant increase from the previous price of Rs. 1,40,900.
Similarly, the price of Tejabi gold rose to Rs. 1,41,100 per tola, up by Rs. 900 compared to the previous day's rate of Rs. 1,40,200 per tola. This peak was observed on May 19, 2024, when fine gold reached an all-time high of Rs. 1,41,800 per tola.
Additionally, silver prices have also increased, with a rise of Rs. 30 per tola, setting the new price at Rs. 1,940 per tola, up from the previous day's Rs. 1,910 per tola.
The gold and silver price in Nepal has surged to unprecedented heights, reaching a historic peak on May 19, 2024. The Federation of Nepal Gold and Silver Traders' Association has reported a remarkable surge in fine gold prices, soaring by Rs. 1,600 to an extraordinary Rs. 1,40,900 per tola, significantly higher than its previous price of Rs. 1,39,300.
Similarly, Tejabi gold has also seen a notable rise to Rs. 1,40,200 per tola, up by Rs. 1,550 compared to the previous day's rate of Rs. 1,38,650 per tola. This peak surge was observed on May 16, 2024, when fine gold hit an all-time high of Rs. 140,000 per tola.
Additionally, the cost of silver has experienced an uptick of Rs. 110 per tola, setting the new price at Rs. 1,910 per tola, an increase from yesterday's Rs. 1,800 per tola.
Nepal Rastra Bank (NRB) has announced its third quarterly review of monetary policy, maintaining the continuity of flexible guidelines while making strategic adjustments to address internal and external economic conditions.
Key decisions include retaining the existing policy rate and other crucial rates and ratios, alongside efforts to enhance the effectiveness of the interest rate corridor and bolster the capital base of financial institutions. Notable changes encompass a reduction in the risk weight for vehicle loans from 125% to 100%, allowed BFI's to sell up to 20% of their primary capital in an economic year from investments that have completed one year and a slight reduction in loan loss provisions for loans classified as good loans.
Moreover, facilitative measures have been introduced to support real estate loans through an increase in the debt service to income ratio requirement. Additionally, the bank has signaled a review of arrangements concerning the import and sale of silver.
Nepal's gold market has surged to unprecedented levels, reaching a historic peak on May 16, 2024. The Federation of Nepal Gold and Silver Traders' Association reported a remarkable rise in fine gold, soaring by Rs. 1,600 to an extraordinary Rs. 1,40,000 per tola, reflecting a substantial increase from its previous price of Rs. 1,38,400.
Similarly, Tejabi gold witnessed a surge to Rs. 1,39,300 per tola, marking a significant increase of Rs. 1,550 compared to the previous day's rate. This surge comes after the previous peak price recorded on April 19th, 2024, when fine gold reached an all-time high of Rs. 1,39,300 per tola.
Moreover, the price of silver has experienced an upward trend, rising by Rs. 60 per tola, with the new price standing at Rs. 1,805 per tola, compared to the previous day's rate of Rs. 1,745 per tola.
Pakistan's Prime Minister Shehbaz Sharif has announced a significant expansion in the country's privatization plans, declaring that all state-owned enterprises, except for strategic entities, will be privatized. This decision follows a meeting chaired by Sharif to discuss the privatization process of loss-making state enterprises.
The announcement coincides with talks initiated by an International Monetary Fund (IMF) mission in Islamabad for a new long-term Extended Fund Facility (EFF), highlighting Pakistan's commitment to addressing its fiscal challenges. Notably, this decision represents a departure from previous plans, as now both profitable and loss-making state-owned enterprises are slated for privatization.
The move underscores Pakistan's resolve to address its fiscal deficit and aligns with longstanding IMF recommendations. Furthermore, the privatization of Pakistan International Airlines, one of the largest loss-making enterprises, is reported to be in its final stages.
Nepal Rastra Bank (NRB) has submitted 190 recommendations to the Ministry of Finance for the budget of the next fiscal year 2024/25. Governor Maha Prasad Adhikari stated that these suggestions, spanning various sectors, were presented in the Economic Committee meeting under the House of Representatives.
The recommendations, sourced from all seven provinces, aimed to address challenges specific to each region. Among the suggestions are 19 concerning tourism, 25 on agriculture, animal husbandry, and forestry, 10 on industry, and an additional 10 on monetary and banking affairs.
Adhikari emphasized the NRB's consistent efforts in providing recommendations to tackle provincial challenges and expressed confidence in the proposed suggestions for the upcoming fiscal year.