News Digest Economy and Development (June 24 – 30, 2021)

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Nepal’s total export reaches NPR 121 billion-

Department of Customs (DoC) revealed that Nepal exported goods worth NPR 121.25 billion in the first 11 months of the current fiscal, which is 37.78 percent more as compared to the previous figure of last fiscal. The import statistics stood at NPR 1,383.36 billion during the same review period, which is an increment by 25.67 percent as compared with the previous figure of last fiscal. With this, share of import and export (in the country’s foreign trade) stand at 91.94 percent and 8.06 percent, respectively; with diesel, iron products (steel), legume oil, mobile phone, cooking gas, and petrol being the top imports and legume oil, cardamom, carpet, tea, and jute carpet being the top exports.

Soybean oil export to India reaches NPR 42.34 billion-

Nepal’s soybean oil exports to India hit a staggering NPR 42.34 billion in the first 11 months of the current fiscal, which is a fourfold jump from NPR 10.12 billion as compared to the same time period in the last fiscal. This jump has made soybean oil Nepal’s number one export item to India. Nepal is currently importing crude soybean oil at zero tariff privilege exporting around 246,376 tonnes of processed soybean oil to India at the same zero tariff privilege; enabling traders to enjoys net profit of 45 percent, excluding other profits. However, despite this impressive export, experts and statisticians worry that the trade will contribute very little to the national economy or towards mass job creation as the industry imports raw materials, refines and exports the final product; with no labour intensive or factory operation expenses. 

SC to revisit its own verdict on BBSM tax fraud-

Supreme Court (SC) has decided to review its own verdict in the Bhatbhateni Supermarket ‘s 10-year-old VAT fraud case. A division of bench consisting of Justices Tej Bahadur KC, Bam Kumar Shrestha and Manoj Sharma have granted permission for the review of the verdict. BBSM on 2013 was found to have evaded NPR 724.04 million in tax payments by presenting fake VAT bills from 2007 to 2013. However, sensing contradictions in the previous verdict, the bench on June 25th had decided to review the previous verdict, which if proven, BBSM will be liable to pay an amount of NPR 226.7 million for each year.

Nepal relaxes travel restrictions for arrivals-

The government has eased travel protocols allowing fully vaccinated arrivals to isolate at home and has also reduced the 10 days mandatory hotel quarantine to 7 days for those who have not been vaccinated. Travellers are now required to produce a photo attached barcode or OR code, including a negative PCR report within 72 hours before departure, at the check-in counters.

Swayambhu temple in Kathmandu in full art and beauty. With the lockdown eased, devotees coming here are slowly increasing. Photo: RSS

NEPSE and SEBON-

Nepal Stock Exchange decreased by 47.49 points to reach 2828.00 points on 29 June. A total of 14.044 million shares of 233 companies were traded resulting in a turnover of NPR 6.72 billion on the third trading day of the week. Meanwhile, Securities Board of Nepal (SEBON) permitted Terathum Hydropower Company to issue 1,200,000 units of initial public offering (IPO), with NIBL Ace Capital as the issue manager. The company will issue 30 percent of the total capital to the public, while the remaining 70 percent is to be retained by the founders. Likewise, Union Life Insurance Company has received approval for the issuance of 6.45 million IPO lots, with Prabhu Capital as the issue manager. The company will also issue 30 percent of its total capital to the public.

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