KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a cautiously optimistic recovery, with the Asian Development Bank forecasting a 4.4% growth for the fiscal year, driven by improved agricultural yields, rising hydropower output, and a rebound in the service sector.
Positive momentum is mirrored in financial indicators such as a surge in foreign exchange reserves, increased remittance inflows, and a modest uptick in private sector lending.
The stock market also showed gains, while gold prices spiked in line with global trends. Key policy shifts—like loan restructuring for the construction sector and new initiatives such as the Digital Nepal Framework 2.0—indicate strategic responses to structural challenges.
However, setbacks like decreased electricity exports due to natural disasters and slow project operations, such as GBIA, underscore ongoing vulnerabilities.
Overall, the economy is gradually stabilizing, supported by infrastructure investment, remittance-driven liquidity, and international cooperation.
ADB forecasts Nepal’s economic growth at 4.4% for current fiscal year
The Asian Development Bank (ADB) has projected Nepal’s economy to grow by 4.4% this fiscal year, slightly higher than the 3.9% recorded last year. This estimate, released in the Asian Development Outlook 2025, attributes the growth to a steady recovery in critical sectors.
Factors such as increased hydropower output, improved wheat harvests, and a rebound in services have contributed to this optimistic forecast. The report indicates that continued improvements in structural and sectoral areas are supporting the nation’s economic recovery.
NEPSE index climbs by 9.66 points
The Nepal Stock Exchange (NEPSE) index, on Wednesday, rose by 9.66 points, closing at 2,676.28—reflecting a 0.36% uptick from the previous day.
Out of all listed companies, 154 saw their stock prices rise, 90 experienced a decline, and one remained unchanged. Over 45,000 trades took place, involving 1.73 million shares, with the total transaction amount reaching Rs 4.48 billion.
Gold prices jump by Rs 2,000, silver also inches up
The price of gold in Nepal surged by Rs 2,000 on Wednesday, bringing the rate for fine gold to Rs 175,400 per tola, up from Rs 173,400 the day before.
Silver prices also rose slightly to Rs 1,835 per tola from Rs 1,830. The increases are in line with global market trends, which continue to influence precious metal prices locally.
Foreign exchange reserves surge 18%
Nepal’s foreign currency reserves rose by 18% to Rs 24.09 trillion at the end of Fagun 2081, compared to Rs 20.41 trillion at the end of Asar 2081. In U.S. dollars, reserves increased by 13.1%, reaching $17.27 billion.
The Nepal Rastra Bank’s share rose 15.2% to Rs 21.3 trillion, while reserves held by commercial banks jumped 44.9% to Rs 2.79 trillion. These reserves are now sufficient to cover 17.2 months of goods imports and 14.3 months of combined goods and services imports.
Loan restructuring allowed for construction sector projects
Nepal Rastra Bank has revised its directive to permit the restructuring or rescheduling of loans for construction firms awaiting payment from government bodies. This option is only available for ongoing or completed projects with confirmed payment sources.
To qualify, borrowers must pay at least 10% of the interest due, and the restructuring process must be completed by the end of Ashar 2082. Loans classified before Mangsir 2081 are also exempt from penalty interest.
Govt targets 28,500 MW of electricity generation in a decade
Energy Minister Deepak Khadka announced plans to generate 28,500 megawatts of electricity over the next ten years. He highlighted the sector’s potential to drive national prosperity during the inauguration of the Sanjen Khola Hydropower Project.
The minister also emphasized Nepal’s strategic energy partnerships with India and China and welcomed growing domestic and international investment in hydropower.
NRB to absorb Rs 20 billion from market for liquidity control
On Wednesday, Nepal Rastra Bank (NRB) announced its intention to withdraw Rs 20 billion from the financial system through a 21-day deposit collection measure, part of its ongoing liquidity management strategy.
These operations are routinely carried out on Sundays and Wednesdays, and banks can participate by submitting bids via the central bank’s online auction platform.
Slight growth in bank deposits and private sector lending
As of the end of Magh, deposits in banks and financial institutions rose by 4.3%, totaling Rs 2.77 trillion—slower than the previous year’s 7.6% growth. Loans to the private sector increased by 6%, reaching Rs 304.82 billion, compared to a 4.2% growth last year.
The deposit structure also shifted slightly, with savings and fixed deposits comprising a larger share. Institutional deposits accounted for 35.4%, down slightly from 36.5% the previous year. Commercial banks reported a 6.3% increase in loans to the private sector.
Remittance inflows hit record high with 9.4% growth
Nepal received Rs 1.5 trillion in remittances by the end of Magh this fiscal year, showing a 9.4% year-on-year increase. Dollar-denominated remittances reached $7.74 billion—up 6.9%.
The increase is partly due to a weakened Nepali rupee and a rise in labor migration, with over 317,000 new foreign employment permits issued by February.
Rupandehi business groups demand immediate pperation of GBIA
Business leaders in Rupandehi are calling for the urgent operation of Gautam Buddha International Airport (GBIA) in Bhairahawa. At a press event, organizations including the Siddhartha Industry Commerce Association pledged to begin protests to press their demand.
Planned actions include sit-ins and the formation of a united protest committee to mobilize all sectors in the region.
Govt to introduce Digital Nepal Framework 2.0 after initial failure
A revised version of the Digital Nepal Framework is in the works, after the original 2019 initiative failed due to political instability, funding issues, and poor inter-agency coordination.
The new version—Digital Nepal Framework 2.0—aims to address past shortcomings. Public feedback has already been collected to shape the updated plan, according to Communications Minister Pritvi Subba Gurung.
Floods and landslides reduce electricity exports
Nepal’s electricity exports to India fell by Rs 2.56 billion year-on-year in the first eight months of FY 2081/82, totaling Rs 10.46 billion. The decline is largely due to flood and landslide damage from heavy rainfall in October.
The Upper Tamakoshi Hydroelectric Project, which was offline for 88 days due to the damage, played a significant role in the decreased export revenues.
ISVG Nepal and Chinese firm partner to create jobs for Nepalis
The International Scout Volunteer Group (ISVG) Nepal has partnered with Shanghai Haixian Group to provide employment opportunities for Nepalis, focusing on Chinese language training and skill development.
Signed on Wednesday in Kathmandu, the agreement runs from 2025 to 2028 and aims to facilitate job placements for Nepalis in China.
Bhairahawa Tax Office collects Rs 7.28 billion in first eight months
The Internal Revenue Office in Bhairahawa collected Rs 7.28 billion in taxes during the first eight months of the current fiscal year—90.5% of its annual goal of Rs 8.09 billion. The office’s performance has shown notable improvement compared to past years.
Nepal to host 3rd International Transport Conference on April 11–13
Nepal will host the third International Transport Conference from April 11 to 13, 2025, organized by the Society of Transport Engineers Nepal (SOTEN) in collaboration with the Ministry of Physical Infrastructure and Transport and the Ministry of Urban Development.
The event will spotlight sustainable and safe transportation policies, bringing together local and global experts to strategize for a modern, eco-friendly transport network.
Sanvi Energy to launch IPO on April 18
Sanvi Energy will open its Initial Public Offering (IPO) on Baisakh 5 (April 18), initially targeting local communities affected by its projects and Nepalis working abroad.
Applications for both groups will be accepted until Baisakh 19 (May 2), with a final deadline of Jestha 3 (May 17). The IPO includes 3.79 million shares priced at Rs 100 each. Applicants can request between 10 and 20,000 shares.
Pokhara tourism entrepreneurs push for Chengdu Airport as transit hub
Tourism businesses in Pokhara are advocating for Chengdu International Airport in China to serve as a transit hub for Nepali travelers heading to destinations with large Nepali communities.
During a ceremony celebrating the first charter flight from Pokhara to Chengdu, entrepreneurs stressed that a regular transit route could boost tourism and make international travel more accessible for Nepalis.
National Horticulture Expo to begin today in Kathmandu
The second edition of the National Horticulture Expo 2081 will kick off Thursday at Bhrikutimandap, running until April 13. The Nursery Association of Nepal is organizing the event, which will feature a large display of nursery products, including flowers, fruits, herbs, and trees.
Coordinator Rabin Kumar Gautam noted that this year’s event will be a comprehensive showcase for the horticulture and nursery industry.
Herbal Company suffers Rs 280 million loss in major fire
A devastating fire at a herbal production and processing company resulted in an estimated loss of Rs 280 million. The fire destroyed manufacturing and administrative buildings, machinery, four vehicles, and stored herbal products.
Roughly Rs 2 million worth of processed tonic bottles were also lost. The incident is believed to be an arson attack by a royalist group on March 28.
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