Finance Ministry puts growth at 3.5 to 4 percent against a 7 percent target

Finance Ministry expects 3.5 to 4 percent growth, well short of its 7 percent target

The Finance Ministry expects Nepal's economy to grow 3.5 to 4 percent in FY 2083/84, the current fiscal year, OnlineKhabar reported on Wednesday from the ministry's annual economic bulletin. The government's own target for the year is 7 percent.

The bulletin expects the Bhotekoshi flood of Bhadau 10 (August 26) to cut revenue and push up spending this year. The flood knocked out 431 MW of generation, about a tenth of installed capacity, the bulletin says, as OnlineKhabar English reported. For the cost of rebuilding it repeats the Rs 723 billion that a government assessment put on it in September, as The Kathmandu Post reported then.

Lenders put out similar numbers earlier. The World Bank projected growth of 3.7 percent after the floods, Kantipur reported on October 6. The Asian Development Bank cut its forecast to 4.1 percent in September, Kantipur reported.

The reports do not say how the ministry built its range or whether it replaces an earlier ministry figure. The bulletin itself could not be opened for this digest.

Finance companies' two-month profit falls almost by half, Bizshala reports

Finance companies earned Rs 57.4 million together in Saun and Bhadau, against Rs 111.1 million a year earlier, Bizshala reported from central bank data. ICFC Finance alone made Rs 84 million; six companies made losses.

Machhapuchchhre Bank shareholders approve a 6 percent dividend

Machhapuchchhre Bank's annual meeting in Pokhara on Wednesday approved a 6 percent dividend for FY 2082/83, half in cash and half in bonus shares, Bizshala reported. The board had proposed it in September, ShareSansar reported then.

Citizen Investment Trust applies to buy 1.2 million Neco Insurance founder shares

Citizen Investment Trust has applied to buy 1.2 million founder shares of Neco Insurance at Rs 232 each, about Rs 278.4 million, Bizshala reported. Neco has asked the Nepal Insurance Authority to approve the transfer.

NEPSE gains 21.32 points as every sector index rises

NEPSE closed at 2,621.26 on Wednesday, up 21.32 points or 0.82 percent, according to Kantipur and Himalpress. It was the index's fifth gain in a row, and came after a dip to 2,592.33 during the session, Himalpress reported. Turnover slipped to Rs 4.14 billion from Rs 4.74 billion on Tuesday.

All 13 sector indices rose, Kantipur reported. Banking gained most, 1.45 percent, according to OnlineKhabar. Of the stocks traded, 188 rose, 80 fell and 9 were unchanged.

Government plans Rs 6.54 billion for buildings at 109 community schools

The government plans to spend Rs 6.54 billion this fiscal year on buildings at 109 community schools and has released Rs 5.34 billion for 89 of them, OnlineKhabar English reported, citing the Education Minister's secretariat. Each building is put at about Rs 60 million.

Prime minister's flood funds reach Rs 17.75 billion

The Prime Minister's disaster and relief funds held Rs 17.75 billion by Wednesday, the Prime Minister's Office said, as OnlineKhabar English reported, up from Rs 17.54 billion on Sunday (The Annapurna Express). Malaysia handed over US$1 million the same day, OnlineKhabar English reported.

Nepal Telecom SIM cards can now be ordered online for delivery by post

The Information and Communications Minister launched a postal SIM service on Wednesday: Nepal Telecom SIMs ordered online for Rs 90, plus Rs 70 for delivery, Kantipur reported. The arrangement was first announced in July, ShareSansar reported then.

Energy minister says private power trading policy has reached its final stage

Policy arrangements to let private companies trade electricity are in their final stage, Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha told a press conference on Wednesday, OnlineKhabar reported. Nothing has been decided or issued yet.

He described proposed criteria for power purchase agreements. They favour projects that can meet high evening demand in the dry season, support dry-season supply, keep monthly output steady and have transmission access, OnlineKhabar English reported. A subcommittee had recommended criteria earlier this month, Ratopati reported on October 8.

He also repeated two earlier decisions. The Nepal Electricity Authority has extended commercial operation deadlines for 27 projects of 540.47 MW, Republica reported on October 5. Higher cross-border transfer limits, 1,400 MW for imports and 1,650 MW for exports, were agreed with India in July, The Kathmandu Post reported then.

Why it matters: In July the minister said private participation in power trade was becoming necessary and that the government was studying whether existing law was enough, Kantipur reported. No date has been given for issuing the policy.