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The acute shortage of liquidity, rising interest rates, and declining demand have badly affected the operational efficiency of industries in Bagmati Province. As industries grapple with multiple issues, their capacity utilization grew marginally in the first half of the current fiscal year. According to the latest report of the Nepal Rastra Bank (NRB), the average capacity utilization of industries in Bagmati Province stood at 47 percent in the first half of FY 2022/23 compared to 45.6 percent during the same period of the last fiscal. The report titled "Provincial Economic Activities Report-Bagmati Province", states capacity utilization of the noodles industry was highest at 95.02 percent while it was lowest for the ointment industry at 6.58 percent. In the review period, the production of the processed milk industry grew by 18.6 percent, soft drink industry by 7.3 percent, cigarette industry by 6.7 percent, pashmina industry by 10.5 percent, garment industry by 8.1 percent, tablet industry by 83.5 percent, and dry syrup industry by 4.9 percent. However, the production of animal feed declined by 3 percent, noodles by 4.5 percent, beer by 13 percent, paint by 23.5 percent, capsules by 27.8 percent, ointment by 34.9 percent, soap by 20.1 percent, and cement by 9.1 percent, according to the report. Meanwhile, the disbursement of loans by banks and financial institutions (BFIs) to the industrial sector also dipped in the first half of FY 2022/23. The BFIs' loan disbursement to industries decreased by 7.2 percent to Rs 902.87 billion in the first half of the current fiscal year compared to a growth of 24.3 percent during the corresponding period of FY 2021/22. In the first six months of the last fiscal year, BFIs disbursed a total of Rs 973.12 million to the industrial sector. According to the report, of the total loans, Kathmandu district has the highest share of 87.7 percent. The BFIs disbursed Rs 791.38 billion in loans to the industries in Kathmandu while Sindhupalchowk district has the lowest share of 0.1 percent (Rs 630 million). In the review period, the BFIs' loans to mining industries surged by 178.3 percent, the electricity sector by 16.3 percent, and the agriculture sector by 13 percent. However, loan disbursement to the construction sector fell by 51.5 percent. Though the Bagmati Province accounts for the largest share of the country's real estate business, the number of real estate registration decreased by 57.3 percent in the current fiscal year. The revenue collection from realty transactions also plunged by 64.1 percent to Rs 5.66 billion in the first half of this fiscal. Such revenue increased by 115.3 percent during the same period last year.

Two mergers in the insurance sector are coming to a logical conclusion this week. After completing the merger process, Prime Life Insurance, Gurans Life Insurance, and Union Life Insurance started an integrated operation as Himalayan Life Insurance Company on Tuesday. Similarly, IME General Insurance and Prudential Insurance will begin integrated operation on Wednesday as IGI Prudential Insurance. The mergers are among the eight successful unions in the Nepali insurance sector after Nepal Insurance Authority (NIA) pushed for consolidation. Of the 10 MoUs signed between various companies for mergers, eight have been concluded. With the successful merger between IME General and Prudential, there have been five successful mergers among non-life insurers and three among life insurance companies. The consolidation in the insurance sector has brought down the number of insurance companies; the number of non-life insurance companies has declined to 15 from earlier 20, while the number of life insurance companies came down to 15 from 19. Prime Life, Union Life, and Gurans Life signed a final merger agreement to form Himalayan Life Insurance Company Limited in the second week of January on a swap ratio of 1:1:1. The paid-up capital of Himalayan Life Insurance has reached Rs 7.69 billion. Sulav Agrawal has been named as the chairman of the new entity formed after the merger and Manoj Lal Karn has taken charge of the company as the CEO. The IME General and Prudential Insurance have agreed to merge on an equal basis of a 1:1 swap ratio. Hem Raj Dhakal and Yugesh Bhakta Bade Shrestha have been named as chairman and CEO of IGI Prudential Insurance, respectively. Among the insurance companies having inked merger MoUs, only Ajod Insurance and United Insurance have yet to begin their integrated business. They are planning for integrated business by the first week of June. With NIA pushing for a consolidation drive by raising the minimum paid-up capital requirements for both life and non-life insurers, insurance companies have ratcheted their merger initiatives. The regulator has increased the paid-up capital of non-life insurance companies to Rs 2 billion while it is Rs 5 billion for life insurance companies. "The merger drive will bring a synergetic effect in the insurance sector," said Shamba Raj Lamichchhane, Deputy Director at NIA. "We have set the mid-July deadline for insurance companies to increase their paid-up capital. While those completing mergers will get some flexibility to increase their capital, others will have to increase their capital within the deadline."

The price of gold has increased by Rs 400 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 111, 600 per tola today. The gold was traded at Rs 111,200 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 111, 050 per tola. Similarly, the silver is being traded at Rs 1,445 per tola today.

A total of 8,220 tourists visited the Himalayan district Manang from January to May 7 this year. According to Chief of Annapurna Conservation Area Project (ACAP) Lekhnath Gautam, 5,056 men and 3,163 women visited Manang in the first four months of 2023. Tourists from 42 countries had entered the district. In the month of January, 2023, as many as 318 nationals of 42 countries visited Manang. Inflow of tourists has increased in Nepal after the post-Covid situation. Most tourists entering the country especially prefer trekking along the Annapurna route. ACAP Chief Gautam said mostly foreign tourists visited the area for trekking. According to the data, the district drew the highest number of tourists (69) from South Korea in January this year.