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A sharp slowdown in economic activities, slackened domestic demand and tighter monetary policy have taken a toll on the economy of all seven provinces of the country. The National Statistics Office (NSO) has forecasted lower economic growth for all the provinces for the current fiscal year. According to NSO, Gandaki Province will have the highest economic growth among the seven provinces in the current fiscal year. Making public the Province-wise Gross Domestic Product (GDP) Estimates on Tuesday, the NSO said that Gandaki's GDP is expected to grow by 3.3 percent in FY 2022/23. The GDP growth of Gandaki in the current fiscal has shrunk by almost 50 percent compared to 6.4 percent in the last fiscal year. The GDP of the Bagmati Province, where the country's federal capital and financial hub Kathmandu is located, is expected to grow at the slowest rate of 1.4 percent. With the growth of wholesale and retail trade becoming negative, the province's economic outlook is bleak. The share of wholesale and retail trade in Bagmati province's GDP is 23.6 percent. NSO has estimated the growth rate of Koshi Province to be 2 percent, Madhesh Province 1.7 percent, Lumbini Province 2.1 percent, Karnali Province 1.9 percent, and Sudurpaschim Province 1.8 percent in the current fiscal year While the NSO has forecasted the lowest GDP growth for Bagmati Province, it still accounts for the lion's share of the country's total GDP, contributing 36.8 percent. The province’s GDP is expected to reach Rs 1,981 billion in FY 2022/23, up from Rs 1,819 billion in 2021/22. The output of Gandaki province is expected to reach Rs 482 billion. The province’s contribution to the national GDP is expected to remain at 9 percent. The agriculture sector is the highest contributor to Gandaki’s economy, accounting for 25.9 percent of the province's GDP. According to NSO, the economic output of Karnali in the current fiscal year is estimated to reach Rs 221 billion. The share of Karnali in the total GDP is estimated to remain at 4.1 percent. The agriculture sector is a key contributor making up 30.8 percent of its GDP. NSO has estimated that Koshi Province's GDP will reach Rs 849 billion in FY 2022/23, up from Rs 780 billion in FY 2021/22. The contribution of Koshi Province to the national GDP is expected to be 15.8 percent. Agriculture accounts for 33.2 percent of the GDP of the province. The GDP of Lumbini Province is expected to reach Rs 762 billion in the current fiscal year from Rs 697 billion in the last fiscal year. The province contributes 14.2 percent to the national GDP. The agriculture sector contributes 29.8 percent to the provincial GDP. The GDP of Sudurpashchim Province is estimated at Rs 376 billion in the current fiscal year, up from Rs 345 billion in the last fiscal year. The contribution of the province to the national GDP has been estimated to remain at 7 percent. The Madhesh Province's GDP is expected to reach Rs 707 billion in FY 2022/23 from Rs 650 billion in FY 2021/22. The share of Madhesh in the national GDP is 13.1 percent in the current fiscal year. With a share of 35.2 percent, the agriculture sector is the highest contributor to the province's GDP.

With dynamic changes taking place in the energy sector, the government has started preparations to amend the Hydropower Development Policy, 2001. The two-decade-old policy is being revised in order to incorporate the latest developments and changes in the energy sector as Nepal gradually moves toward becoming a net energy exporter from a net energy importer. The Policy Research Institute (PRI), a government think tank, has been mandated with groundwork for a new hydropower development policy. For this purpose, PRI on Monday initiated discussions with the concerned stakeholders. Government officials said the current policy covers only the hydropower sector. With new technologies being practiced for electricity generation such as solar, and wind, there is a need to incorporate the concept of energy mix. "There is a need to increase domestic electricity consumption as well as investments in the sector," said Buddha Gurung, Joint Secretary at Prime Minister's Office. During the discussion organized by PRI, stakeholders stressed the need to make the policy private-sector friendly. "The investment of the private sector in hydropower has increased lately. But the government's policy is not private sector friendly," said Ganesh Karki, Vice-president of Independent Power Producers' Association, Nepal (IPPAN). "Currently, the private sector contributes 80 percent to the electricity production. Still, the private sector is ignored. If we fail to complete the hydro project on time, we have to pay a fine to the Nepal Electricity Authority. But when the NEA doesn’t construct a transmission line on time, our power goes wasted. Should we also be paid for the loss?” he said. "So the existing policy is just one-sided." Likewise, the private sector representatives also mentioned the need to allow the private sector to engage in power trading. "The participation of the private sector in electricity production has brought Nepal to this stage. Within a few years, Nepal's installed capacity will reach 8,000 MW, however, all the electricity generated will not be consumed in Nepal. It needs to be sold to India and Bangladesh, for which government initiative alone is not enough,” he said. "Now, we need the participation of the private sector to take a leap in the power trading business." During the discussion, private power producers highlighted the need to ease the overall process of hydropower development. According to them, developers have to visit multiple ministries and departments to get clearance for the hydropower project. According to them, there should be a one-desk policy. They also demanded the government bring policies to encourage the private sector to undertake large-scale power projects. Currently, hydropower projects are being developed at an average cost of Rs 200 million per MW, though in some projects it has reached up to Rs 400 million per MW. According to power producers, the private sector is ready to undertake major projects at a lower cost and the government should introduce policies to incentivize such initiatives. Speaking on the occasion, Gokarna Rajpanth, Secretary at Electricity Regulatory Commission, said the policy should be revised to cover not only hydropower but the entire energy sector. “Preparations are being made to introduce a new electricity act. The new policy should incorporate the issues not addressed by the new electricity act but also brought in such a way that would help in the implementation of the new act," he said. Netra Gyawali, CEO of Rastriya Prasaran Grid Co. Ltd. suggested that the new policy should incorporate the aspect of improving the electricity distribution system. "While we are now emphasizing increasing electricity consumption, our distribution system is not efficient," he said. "These issues should also be addressed by the new policy." Buddhi Paudel, Joint Secretary at Ministry of Forest and Environment was of the view that hydropower projects should also pay attention to water conservation. "If water and the environment are protected, the lifespan of hydropower projects will also be long," he said, "We are trying to amend the laws necessary to facilitate environmental impact assessment of hydropower projects." Arjun Kumar Gautam, CEO of HIDCL said power generation, transmission, distribution, and investment should be kept in one basket. "Earlier, the policy was introduced to increase electricity generation but the other parts were not cared for. That is why, electricity production has been increasing but consumption has not increased," he said, adding, "Along with power generation, equal focus should be given to transmission, distribution, consumption, and investment issues."

The price of gold has dropped by Rs 1, 100 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 110, 000 per tola today. The yellow metal was traded at Rs 111, 100 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 195, 500 per tola. Similarly, the price of silver has dropped by Rs 5 and is being traded at Rs 1,370 per tola today.

The price of gold has increased by Rs 100 per tola in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 111, 100 per tola today. The gold was traded at Rs 111, 000 per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 110, 450 per tola. Similarly, the silver is being traded at Rs 1,375 per tola today.