Nepal's trade deficit reaches Rs 532 billion in three months as imports rise 38 percent

Imports rise 38 percent in the first quarter and the trade deficit reaches Rs 532 billion

Nepal imported goods worth Rs 646.78 billion in Saun, Bhadau and Asoj, the first three months of FY 2083/84 (mid-July to mid-October), according to Department of Customs figures that Kantipur and OnlineKhabar reported on Wednesday. That is 38.2 percent more than the Rs 468.08 billion of the same months a year earlier. Exports grew faster. They rose about 57 percent, to Rs 114.28 billion from Rs 72.78 billion.

The trade deficit came to Rs 532.49 billion, against Rs 395.30 billion a year earlier, Clickmandu reported. The gap widened 34.7 percent. Imports were still about 5.7 times exports.

One product carries much of the export side. Crude soybean oil was the biggest import, at Rs 52.60 billion, and processed soybean oil the biggest export, at Rs 52.61 billion, Kantipur reported. That one export is about 46 percent of the quarter's total. Kantipur reads the near-equal figures as oil brought in from third countries, processed in Nepal and sold on.

Asoj alone brought in about Rs 245 billion of imports, Bizshala reported. Paddy, rice, broken rice and seed accounted for Rs 4.49 billion over the three months, or 56,893 tonnes, mostly from India, OnlineKhabar reported. Of that, 11,349 tonnes worth Rs 1.11 billion came in Asoj.

Why it matters: Customs gave no reason for the rise. OnlineKhabar put the import surge down to the festivals but gave no reason for the export jump, and none of the reports gives a year-earlier figure for soybean oil, so how much of that jump it accounts for cannot be worked out.

Flood insurers have paid about 4 percent of some Rs 21 billion in claims, Kantipur reports

Insurers had paid about Rs 820 million on claims of about Rs 21 billion from the Bhotekoshi flood by Asoj 30 (October 16), Kantipur reported on Wednesday, citing Insurance Authority figures. That is roughly 4 percent. The paper's figures by class of insurance differ slightly from its totals.

A month earlier the sum paid was far smaller. About Rs 6.75 million had gone out by Asoj 12, Kantipur reported on September 30. The Authority says the claims total may still rise, according to the latest report.

Separately, a government official told a parliamentary special committee on Wednesday that immediate recovery needs $57 million, OnlineKhabar English reported. The official repeated the initial estimate of $4.7 billion to $4.75 billion for rehabilitation and reconstruction, and said it could rise.

Nabil Bank applies to SEBON for a Rs 4 billion debenture issue

Nabil Bank has applied to SEBON to issue Rs 4 billion of 10-year debentures paying 5.5 percent a year, Bizshala reported on Wednesday. Rs 1.6 billion would be offered to the public and Rs 2.4 billion placed privately. The board has not yet approved it.

NEPSE gains 33.29 points to 2,664.06 as turnover reaches a six-week high

NEPSE closed at 2,664.06 on Wednesday, up 33.29 points or 1.27 percent, OnlineKhabar English and Kantipur reported. It was the index's highest close since August 15. Turnover was Rs 7.45 billion, up from Rs 5.80 billion on Tuesday and the most since September 16.

Gainers far outnumbered losers. 241 companies rose, 35 fell and 3 did not move. Hydropower led the sub-indices with a rise of 2.06 percent, and Trading was the only one to fall, by 0.44 percent.

Bank shares have been climbing for two months. The banking sub-index closed at 1,582, its highest since 1,590 on October 21, 2023, OnlineKhabar English reported. It is up about 11 percent from 1,426 on August 26, against 4.14 percent for NEPSE over the same stretch. The gain of about 25 percent in OnlineKhabar's Nepali headline is the largest rise in a single bank's share price, not profit.

Merchant bankers object to a SEBON draft clause that could apply new IPO rules to filed applications

Merchant bankers object to a clause in the Securities Board of Nepal's draft directive on general eligibility for public issues, 2083, Merolagani reported on Wednesday. The board published the draft around September 18, ShareSansar reported then.

The objection is to section 160(1). As Merolagani quotes it, the board may apply suitable provisions of the new directive, if it deems necessary, to applications registered before the directive takes effect. The bankers say that would change the rules for companies already in the queue. They estimate that 80 to 90 percent of the nearly 100 companies waiting would fail the new tests.

No banker is named in the report. It does not say how the estimate was made, or whether the board has replied.

Why it matters: Hydropower producers asked in September for applications already filed to be judged under the existing rules, with a transition period, The Kathmandu Post reported then.

Him Parbat Hydropower opens its IPO to Dolakha residents and Nepalis working abroad

Him Parbat Hydropower's IPO opened on Wednesday to project-affected residents of Dolakha and to Nepalis working abroad, Merolagani and Bizshala reported. It offers 5,915,000 shares at Rs 100 each, worth Rs 591.5 million, or 35 percent of its capital.

Citizens Super 50 mutual fund sets its public sale for Mangsir 2

Citizens Super 50, a closed-end mutual fund, will sell 85 million units at Rs 10 each to the public from Mangsir 2 (November 18), Bizshala reported on Wednesday. Its sponsor, Citizens Bank International, keeps 15 million of the 100 million units.

Supreme Court orders release of a manpower businessman held in the Malaysia dispute, Kantipur reports

The Supreme Court on Wednesday ordered the immediate release, unless he is held in another case, of a manpower businessman detained in the government's case against the 25 recruitment agencies Malaysia has chosen to work with, Kantipur reported. A joint bench issued a habeas corpus order. It found that the Foreign Employment Tribunal had no power to authorise his arrest or extend his detention, so he had been held unlawfully from the start, the paper said.

Kantipur names him as Ravin Gurung, of Manpower Trust Nepal. It does not say whether the order is interim or final. Nor does it say what happens to the tribunal's permission to arrest the other owners.

Malaysian health screening of Nepali job seekers has been halted since October 1, The Kathmandu Post reported on Wednesday, which freezes new visas. The labour ministry said the same day that diplomatic talks with Malaysia were continuing, OnlineKhabar reported.

Why it matters: About 400,000 Nepalis work in Malaysia, and the country sends nearly 20 percent of Nepal's remittance inflows, the Post reported, citing Nepal Rastra Bank. Nepal has proposed talks for November 18-19 or December 2-3.

Nepal Airlines cancels two Dammam flights over the security situation in Saudi Arabia

Nepal Airlines has cancelled its Kathmandu to Dammam flight of Kattik 14 (October 31) and the return of Kattik 15, citing the security situation in Saudi Arabia, Kantipur reported. Passengers can change the date free or take a full refund.

Keraun substation in Morang is built and due to be charged on Kattik 14 and 15

Construction of the 132 kV Keraun substation in Morang is complete, and officials plan to charge it on Kattik 14 and 15 (October 31 and November 1), OnlineKhabar reported. It has 148.5 MVA of capacity and an estimated cost of about Rs 1 billion.