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Finance Minister Prakash Saran Mahat today said the budget under the capital expenditure was reduced due to increasing liability for social security. "The size of budget under the capital expenditure has been small as the liability for principal and interests of loan has increased along with that for social security," said the minister while inaugurating the 66th annual general meeting of the Morang Trade Association here.  The budget under the capital expenditure for the next fiscal year, 2023/24 has accounted for 17.25 percent. The minister has also stressed the need to increase capital expenditures to make economic dynamics while for the government to improve the monetary and fiscal policies. The budget for the next fiscal year is pro-people as it has been prepared independently, he claimed. Saying that the government would focus on constructing the Ring Road in Biratnagar, he pledged its support to promote industry and trade in the city. Similarly, former minister Minendra Rijal said Biratnagar city was lagging behind without the viability of trade and industry. He also stressed the need for upgrading Biratnagar airport as of an international standard. Also speaking on the occasion, Biratnagar Metropolitan City Mayor Nagesh Koirala demanded that the government release the budget for the local level soon.  

The Nepal Rastra Bank (NRB) is learnt to have been preparing to issue a digital currency. Central bank's Executive Director Guru Prasad Paudel said that so far 11 countries in the world have their digital currency and the bank too is studying the requirements and making preparations for issuing its own digital currency. He was speaking at a program organized to sign and exchange a Memorandum of Understanding about finance and digital literacy between the Machhapuchhre Bank and the Private and Boarding School Organisation of Nepal (PABSON) here today. The latest data about digital transactions shows a significant volume of it. On average, Nepal sees monthly digital transactions of Rs 40 billion. In the month of Baisakh (mid-April-mid May, 2023), 8.6 million people made transactions worth over Rs 26 billion through QR codes. The use of digital transactions is increasing, suggesting the need for issuing a digital currency, it is said. The NRB observes the current fiscal year as the Digital Payment Promotion Year.

The Chinese tech brand Xiaomi has launched the Mi 23.8” Desktop Monitor 1C and the Mi Desktop Monitor 27” in the Nepali market. Xiaomi Nepal in a press statement said that the cutting-edge monitors are designed to elevate the desktop computing experience with their exceptional features and advanced technology. “The Mi 23.8” Desktop Monitor 1C is crafted to provide users with an immersive visual experience. The 23.8-inch IPS FHD display offers clear and realistic picture details as well as a 178° viewing angle, making it ideal for both work and entertainment purposes,” reads the statement. According to Xiaomi Nepal, the Mi Desktop Monitor 27” takes desktop computing to the next level with its stunning display and powerful performance. “The 27-inch IPS FHD display offers clear and realistic picture details with a 178°viewing angle,” it said. The company informed that the Mi 23.8” Desktop Monitor 1C ensures a 3-side borderless screen to provide an immersive viewing experience. “With an ultra-slim body and a thickness of at least 7.3mm, this monitor not only offers a sleek and modern look but also saves valuable desk space. On the other hand, the Mi Desktop Monitor 27” ensures a 3-side borderless screen to provide an immersive viewing experience,” said Xiaomi Nepal. “With an elegant and ultra-slim body with at least 7.5mm thickness, this monitor exhibits a sleek and modern design that adds a touch of sophistication to any workspace or home environment.” The Mi 23.8” Desktop Monitor 1C’s versatile connectivity options, including HDMI and VGA ports, allow users to connect multiple devices effortlessly, enhancing productivity and convenience. Similarly, the Mi Desktop Monitor 27” offers multiple connectivity options, including HDMI, VGA, and Audio ports allowing users to connect various devices simultaneously and expand their possibilities. The market prices of MI 27” Desktop Monitor and MI 23.8” Desktop Monitor 1C are Rs 22,999 and Rs 19,999 respectively. “We are excited to unveil the Mi 23.8” Desktop Monitor 1C and the Mi Desktop Monitor 27” to our customers. These monitors exemplify our commitment to providing exceptional visual experiences, optimal performance, and user-centric design. We believe that these products will redefine the way people interact with their desktops, whether it’s for work or play,” said Amit Kumar Panda, Country General Manager, Xiaomi Nepal.

The increase in the cost of doing business due to rising interest rates, hike in cost of raw materials, growing inflation along with the decline in market demand have badly affected the operational efficiency of industries in Lumbini Province. As industries grapple with multiple issues, their capacity utilization has declined 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 Lumbini Province stood at 42.33 percent in the first half of FY 2022/23 compared to 49.22 percent during the same period of the last fiscal. The report titled ‘Provincial Economic Activities Report-Lumbini Province’ states capacity utilization of the plastic industries was the highest at 89.64 percent while dry syrup industries had the lowest at 3.91 percent. The capacity utilization of industries such as paper, tablets, aluminum, rosin, and animal feed was above the average, the report said. The decline in the capacity utilization of dry syrup, electric wire, cable, concrete, rice, beverages, GI pipe, and pharmaceutical production industries led to a decline in the average capacity utilization of the industries in Lumbini Province. Except for the rosin and paper industries, all the other major industries’ production has declined in this fiscal year. Among the industries included in the study, the production of rosin increased by 30.66 percent compared to the same period last fiscal year. The easy availability of raw materials and high demand in other countries including India helped the increment of rosin production. Paper production surged by 30.59 percent in the first half of FY 2022/23, particularly due to the increased demand for Nepali paper. Lumbini Province has been at the center of Nepal’s cement production. However, cement production in the province declined by 54.09 percent in the current fiscal year. “Cement production decreased mainly due to a decline in demand, problems in electricity supply, and a surge in prices of coal and petroleum products in the international market,” reads the report. Out of the 60 cement industries operating in Nepal, 45 are in Lumbini province. According to NRB, while there is a demand for clinker and cement produced from Lumbini Province in the Indian market, there has been a decrease in the production of cement, clinker, and rods during the review period due to a lack of ease in exports, obstacles in limestone mining and lack of internal demand. The NRB study shows the production of aluminum decreased by 65.47 percent, rice production by 58.79 percent, concrete production by 52.09 percent, electric wires, and cables by 48.64 percent, wheat flour by 36.31 percent, tablet by 29.39 percent, noodle by 16.59 percent, dry syrup by 19.49 percent, liquor by 10.95 percent, and capsule by 10.33 percent. Meanwhile, the disbursement of loans by banks and financial institutions (BFIs) to the industrial sector increased marginally in the first half of FY 2022/23. The BFIs’ loan disbursement to industries increased by 6.09 percent to Rs 126.03bn in the first half of the current fiscal year compared to a growth of 4.43 percent during the corresponding period of FY 2021/22. According to NRB, of the total loans, Rupandehi district has the highest share of 58.92 percent while Rukum East district has the lowest share of 0.03 percent. In the review period, the BFIs’ loans to mining industries surged by 194.15 percent, the electricity sector by 191.10 percent, and the agriculture sector by 0.58 percent. The share of the industrial sector in total loans is 22.91 percent.