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The gold is being traded at Rs 166, 000 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of silver has dropped by Rs 25 and is being traded at Rs 2,070 per tola today. 

The Nepal Stock Exchange (NEPSE) plunged by 18. 25 points to close at 2,627.14 points on Thursday.

Similarly, the sensitive index dropped by 2. 99 points to close at 474. 26 points.

A total of 12,283,623-unit shares of 317 companies were traded for Rs 5. 41 billion.

Meanwhile, Nepal SBI Bank Limited (SBI) was the top gainer today with its price surging by 9. 75 percent. Likewise, Rawa Energy Development Limited (RAWA) was the top loser with its price dropped by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 4. 17 trillion.

The Kaligandaki Corridor (Beni-Jomsom-Korala) road project, a vital part of Nepal’s national pride infrastructure, has made significant strides with 80 percent of the physical work completed, according to the latest project report. Financial progress stands at 75 percent. The project, initiated on 27 Nov 2016, aims to establish an all-weather road network connecting southern Nepal to the Korala border with China in the north.

A total of Rs 10bn was allocated for the construction and upgrading of 202 kilometers of road and bridges stretching from Maldhunga in Parbat to Koralanaka in Mustang. As of the last fiscal year, Rs 7bn has been contracted for the project. Initially projected for completion by the fiscal year 2022/23, the deadline has been extended to 2025/26 due to challenges such as natural disasters and construction delays.

Out of the 202 kilometers, 150 kilometers of road are under the contract management project. So far, 45.71 percent of the planned blacktopping is completed, with 48 kilometers finished. Additionally, 77 kilometers of gravel road have been completed, though the 25-kilometer Charang-Chooser stretch remains unfinished due to slow contractor performance and adverse weather.

Dhurba Jha, head of the Korala Road project, reported that of the 24 bridges needed along the route, 19 have been contracted, with 11 bridges already completed. The project has faced delays in bridge construction, with four contracts broken, but efforts are underway to enter new contracts for the remaining bridges.

Despite setbacks, the project has maintained momentum. Jha mentioned that five of the eight contracts from Maldhunga to Kagbeni are under construction, while some bridges have already been completed. The Korala road, once fully operational, is expected to boost trade and connectivity between Nepal and China, strengthening Nepal’s northern trade corridor.

Despite applying for government-announced subsidies two years ago, large Nepali industries exporting goods worth over Rs 500m have yet to receive the promised financial support. The subsidies, aimed at boosting exports and addressing the trade deficit, were introduced in Oct 2022 with a provision offering up to eight percent cash back for qualifying industries. However, bureaucratic hurdles and government delays have left industries waiting for payments, adding to their frustration.

Industries such as yarn, cement, clinker, steel, bottled water, information technology, and business process outsourcing had applied for the subsidies under the scheme. Despite their compliance with the application process, the government has failed to deliver on its pledge, citing lower-than-expected revenue as the reason for the delay. The unpaid subsidies are estimated to have exceeded Rs 2bn.

In addition to the export incentives, the government owes around Rs 50bn to the construction industry, Rs 13bn for covid insurance, and millions more for agricultural insurance. Industrialists have expressed their discontent, claiming that while they are expected to pay taxes on time, the government has not honored its subsidy commitments.

The subsidy process involves navigating through multiple government departments, including customs, the Department of Industry, Nepal Rastra Bank, and the Ministry of Finance. Some applications from last fiscal year remain unprocessed, further aggravating the situation.

A delegation from the Federation of Nepalese Export Association (FNEA), led by its chairman, Pawan Golyan, met with Finance Minister Bishnu Paudel to address the issue. While Paudel acknowledged the budget constraints, he promised to resolve the issue and set a deadline for the release of payments. However, no progress has been made so far, leaving industrialists disappointed with the lack of government action.

Many industrialists have criticized the government’s failure to deliver on its promises, questioning why the subsidies were announced in the first place if the government was not prepared to follow through. With the private sector initially welcoming the export promotion program, the continued delays have dampened their enthusiasm, hindering industrial growth and investment.