May 21, 2024

In the fiscal year 2023/24 first quarter monetary policy review, the NRB lowered bank and  policy rates to stimulate borrowing, aiming to expand the economy. Real estate loan  adjustments aim to revitalise the sector, while eased regulations aid earthquake-affected  families in house reconstruction. Axiata's exit from Nepal by selling Ncell's shares to Spectrlite  UK Limited has stirred controversy amid suspicions of tax evasion. India's ban on onion  exports led Nepal to import from China, highlighting Nepal's reliance on Indian onions.
 

May 20, 2024

In October, remittance inflows surged by 22.1% reaching NPR 228.37 billion. New regulations requires hydropower companies to guarantee their capital and investment loans when obtaining licenses for hydropower projects. Securities Board of Nepal (SEBON) allows IPO issuing through book building. 

Mar 22, 2024

The government formed a high-level dialogue council involving the private sector to find options to revive the sluggish economy. The House of Representatives Finance Committee's recent decision to proceed with the licensing process of a new stock exchange has revived the debate over the need for a new exchange and possible kickbacks influencing policy decisions. The abrupt departure of Axiata Group from Ncell, attributing it to a decline in revenue, has triggered further controversy.
 

Nov 06, 2023

The recent update from the Nepal Rastra Bank (NRB) highlights a reduction in imports, a surge in remittance inflow, a decline in demand for loans despite ample funds in financial institutions, and a worrying increase in inflation. The Confederation of Nepalese Industries (CNI) and China Council for Promotion of International Trade (CCPIT) have established the Nepal-China Business Council to promote investment and bilateral cooperation, aiming to streamline commercial activities, research, and networking opportunities for enhancing economic ties and growth between the two nations. The price of sugar has increased tremendously in the recent times.

Sep 22, 2023

The government expects that the lifting of the ban on land fragmentation will boost the real estate market and increase revenue. India's onion export tax has disrupted Nepal's onion market and caused prices to soar, with smuggling a risk. As per the amended Integrated Directive of the Nepal Rastra Bank (NRB) infrastructure development banks now can create a subsidiary company to development infrastructure projects.
 

Aug 24, 2023

The Nepal Rastra Bank (NRB) has adopted a new, flexible monetary policy to bolster the economy while maintaining financial stability. Key measures include lowering the policy rate to 6.5%, reducing the deposit collection rate to 4.5%, and increasing the wide money supply limit to 12.5%. The central bank aims to achieve 6% economic growth and keep inflation at or below 6.5%. Additionally, the NRB will review risk weights in non-productive sectors and establish a separate regulatory body for cooperatives. Nepal reiterates its habit of bulk spending at the end of fiscal year. Indian ban on non-basmati rice exports affects Nepal's market, causing traders to exploit the situation and rising the price of rice.
 

Jul 19, 2023

Nepal faced a challenging period in FY 2019/20 due to the pandemic but achieved a remarkable turnaround in FY 2020/21 with a record-high remittance inflow of over Rs 1.5 trillion. Strategic measures, increased migrant worker participation, and currency devaluation contributed to this surge, resulting in a significant accumulation of liquidity in banks and decreased lending activities. Nepal's outstanding public debt has reached NPR 21.73 trillion, with NPR 10.99 trillion in domestic debt and NPR 10.73 trillion in external debt. The government plans to raise an additional NPR 4.52 trillion in debt for the next fiscal year. Nepal achieved a significant milestone in its electricity sector during Prime Minister Pushpa Kamal Dahal's visit to India. India's approval allows Nepal to use its transmission line for exporting electricity to Bangladesh, expanding Nepal's market reach and strengthening regional cooperation. Finally, the House of Representatives endorsed the annual budget for the fiscal year 2023/24.
 

Jun 21, 2023

The Finance Ministry's announcement of a reduced budget for the upcoming fiscal year, which includes limitations on capital expenditure, raises concerns about the potential impact on progress and development. However, amidst these constraints, the government plans to introduce new programs in the agriculture sector, aiming to address challenges and drive growth through this sector. Foreign investment declines and inflationary pressures impact market demand, but potential economic recovery expected with falling petroleum prices. Nepal Electricity Authority (NEA) has resumed electricity exports to India, with plans to increase production during the upcoming monsoon season, but faces challenges due to decreased budget allocation for transmission line projects in the next fiscal year.
 

May 09, 2023

Nepal's economy shows an increase in remittance inflows and a surplus in the Balance of Payment, but the decline in imports and exports, along with a GDP contraction and recession, presents a mixed economic scenario. Nepal's provinces face financial irregularities of NPR 27 billion 95 crores, posing concerns for the economy. Nepal's Supreme Court allows a second stock exchange, potentially diversifying investment opportunities. 

Apr 14, 2023

The Nepali government faces challenges formulating the upcoming fiscal year's budget. 

Mar 24, 2023

According to the mid-January macroeconomic reports published by Nepal Rastra Bank, the year-on-year inflation is limited to 7.26 percent, there is decreased exports and imports and an increase in remittance. The recent controversies surrounding Microfinance Institutions (MFIs) in Nepal have raised concerns about their lack of regulation and the possibility of profit-driven motives exploiting low-income individuals and groups. The long dry season has not only negatively impacted energy generation but will also decrease agricultural productivity. The recent protests by farmers in Chitwan have shed light on a significant issue in Nepal's agricultural industry, namely the unfair pricing of domestic products compared to exported products.
 

Feb 17, 2023

Nepal’s public debt has increased and in order to decrease the government's current expenses, the Ministry of Finance decided to cut the budget of the federal government. Frequent closures of borders at Tatopani and Rasuwagadhi have disrupted the Nepalese economy and the removal of cash margin provision during import will potentially lead to an increase in import activity and stimulate economic growth while declining the informal import inside the economy. Finally, in order to mop up the excess liquidity in the market, NRB issued a reserve repo after 18 months.

Jan 25, 2023

In order to fulfil the rising demand for electricity combined with a fall in production due to the dry season, NEA has resumed importing electricity from India. In order to cushion Nepal’s economy, an import ban was placed which now is uplifted as a result of improvement in a few indicators of the economy. A drop in revenue collection has worsened the capital, current and financial expenditure of the government.
 

Jan 05, 2023

Managing the power leakages, exports, and domestic consumptions, NEA has earned a profit of Rs.8.5 billion in the first three months of FY 2022/23. The IMF delayed the second instalment of 400 million USD to Nepal stating reservations over months-long import restrictions imposed by the Nepal government. Over-dependence on remittance puts Nepal into the top 11 countries in the world that receive the most remittance in proportion to GDP.

Dec 17, 2022

The month of June saw various sectors of the economy gradually commencing their operations following the easement of restrictive orders

Dec 16, 2022

Nepal continued to direct its remittance earnings on imports of agricultural products and commodities, unfazed by the COVID-19 pandemic and subsequent lockdowns.

Dec 16, 2022

The month of August saw the unveiling of the Monetary Policy for the Fiscal Year 2021/22 by the Governor of the Nepal Rastra bank,

Dec 16, 2022

On the economic front, due to the ongoing Covid-19 pandemic, Nepal’s government revenue, foreign exchange reserves

Dec 16, 2022

The Minister of Foreign Affairs appealed his Chinese counterpart to re-open Nepal-China trade and transit points.

Dec 16, 2022

Nepal Rastra Bank (NRB) launched the highly anticipated National Payment Switch (NPS) in a bid to ease digital payments and services across the nation.

Dec 13, 2022

In the front of Economy and development, the Nepali economy underwent some serious economic scares and crisis during the first month of 2022. With the imports bill hitting Nrs.

Dec 13, 2022

Nepal’s economy went through a series of changes over the past year. Looking closely at the sectors-agriculture, manufacturing and tourism sector were hit hardest,

Dec 12, 2022

In terms of Economy and Development, this review period saw the Nepali economy record a 64 months high price rate for daily consumption goods, making it exorbitant for the general public to buy basic necessities.

Dec 12, 2022

The month of March ended without a single bill being endorsed in the Parliament and without any general discussion on the impeachment motion against Chief Justice Rana as PM Sher Bahadur Deuba administration decided to prorogue the winter session of the parliament.

Dec 12, 2022

The month of April also saw the Nepali economy going through many changes as inflicted rising inflation rate, the tussle between the executive body and the central bank, and a ban on the issue of letters of credit (LC) to importers. With prices of most goods and services rising to unprecedented levels;

Dec 12, 2022

The most recent review period recorded the highest annual consumer inflation rate during the nine months of the current fiscal year. In particular, Nepal Oil Corporation’s hike of petroleum prices twice within eight days exacerbated spending woes of those at the bottom of the economic structure.

Dec 12, 2022

The upcoming fiscal year’s Rs. 1.79 trillion budget, a 10% increase from the previous, comes at a time when the country is grappling with deteriorating macroeconomic indicators. Provisions like reduction of the minimum threshold for foreign direct investment (FDI) from Rs.

Dec 12, 2022

The previous fiscal year, to battle the economic slump induced by COVID, NRB had put forth a liberal monetary policy. Credit expansion and loosened requirements for banks, coupled with a post-pandemic economic boom, contributed to increased imports and a liquidity crunch in th

Dec 12, 2022

With Nepal Electricity Association (NEA) reporting a profit of Rs. 16.1 billion in 2021/22, the prospect of reliving Nepal’s trade deficit problem through the expansion of its hydroelectricity sector is promising. Likewise, amid increased exports and investments,

Dec 12, 2022

After one and a half months, the border crossings with China at Tatopani in Sindupalchok and Rasuwagadhi in Rasuwa have reopened. The border crossing point had previously been closed by China reasoning the rise in COVID-19 cases in the Tibet Autonomous region. Before that,

Dec 12, 2022

Following a rise in the interest rates on deposits in early October, BFIs raised the interest rates on loans due to their rising costs. The government’s ban on the import of some luxury goods is bound to continue until mid-December.

Mar 31, 2023

In recent times, the Microfinance Institutions (MFIs) in Nepal have been criticized for their exorbitant interest rates, which have raised concerns about the relevance of microfinance as a poverty reduction tool.

Dec 12, 2022

Centre for Social Inclusion and Federalism (CESIF) organized a webinar on February 24, 2020, focusing on “Nepal’s trade relations with its neighbors and the role of economic diplomacy.”

Dec 12, 2022

The Sher Bahadur Deuba government has laid a new bill for Nepal’s annual financial plan. Finance Minister Janardan Sharma on September 10 

Dec 12, 2022

Nepal and India on 01 March 2022, signed a government-to-government (G2G) deal to procure chemical fertilizers for the next five years. The memorandum of understanding (MoU) signed by Govinda Prasad Sharma (Secretary at Nepal’s Ministry of Agriculture and Livestock Development) and Rajesh Kumar Chaturvedi (Secretary at India’s Ministry of Chemicals and Fertilizers) assures to provide

Dec 12, 2022

Prime Minister Sher Bahadur Deuba on 01 April 2022 embarked on a three-day official visit to India after taking over the premiership from KP Sharma Oli back in July of 2021. His entourage consisted of Dr. Narayan Khadka (Minister of Foreign Affairs), Ms. Pampha Bhusal (Minister of Energy and Water Resources), Mr. Birodh Khatiwada (Minister for Health and Population) and Mr. Mahindra Ray Yadav (Min

Dec 12, 2022

The world economy is undergoing the effects of the Covid-19 pandemic and the war in Ukraine which both provoked a shock in demand and supply globally.

Dec 12, 2022

A few weeks ago, Nepal Rastra Bank (NRB) published its monthly macroeconomic report for June, the penultimate month of the current fiscal year. The latest report shows a significant increase in the country’s foreign exchange (forex) reserve for the first time in 15 months. Such a consistently negative growth of the reserve is a remarkably rare occurrence, and it has brought into light the country’s vulnerability to a dire economic crisis.

Dec 12, 2022

Money and banking The United Kingdom government’s development finance institution, CDC Group announced a Nrs. 3.03 billion (USD 25 million) loan to Global IME Bank Ltd., to enhance the bank’s ability to provide credit to businesses across key economic sectors across the country. The capital facility is anticipated to assist the bank in providing credit…

Dec 12, 2022

Money and Banking Commenting on the current economic situation in the Public Accounts Committee of the parliament on 09 January 2022, Governor of the central bank (NRB) affirmed that attaining the economic growth target of 7 percent and maintaining an inflation rate of 6.5 percent will be a challenging task in the current fiscal year…

Dec 12, 2022

Money and Banking By introducing a ‘Financial Literacy Framework Directive’ on 17 January 2022, Nepal Rastra Bank (NRB) has made it mandatory for banks and financial institutions (BFIs) to invest at least one percent of their annual profits in financial literary programs to promote e-literacy across the nation. Similarly, NRB has also directed BFIs to…

Dec 12, 2022

Money and Banking According to Nepal Rastra Bank’s (NRB) six months data on refinancing, the central bank has injected Nrs. 13.61 billion (into the economy) within the first half of the current fiscal year (FY) 2021/22. In the financing injected, Rastriya Banijya Bank (RBB) has been identified as the largest refinancing bank with Nrs. 1.45…

Dec 12, 2022

Money and Banking Nepal Rastra Bank (NRB), on 31 January 2022 fixed the premium amount on interest rate of hire purchase loan being charged by companies. By issuing a directive, NRB has capped the premium interest rate for 4 percent. Similarly, in the same directive, NRB has also made it mandatory for hire purchase companies…

Dec 12, 2022

Money and Banking Nepal Rastra Bank (NRB) on 04 February 2022 issued a notice to the public regarding the risks involved in carrying financial transactions through electronic means. Through the notice, NRB has urged individuals to stay wary of temptation to cash lottery, misuse of mobile applications, solicitation of passwords and one-time password (OTP) while…

Dec 12, 2022

As a country at the cusp of least developed country (LDC) graduation, Nepal is committed to the development of infrastructure, and consequently, understanding how such infrastructure expenditures are financed has become a prominent topic of discussion in the country. According to the Public Debt Management Office, as of April 2022, Nepal’s total outstanding debt stood at NPR 1.86 trillion, 53% of which (NPR 0.976 trillion) is external and the rest (NPR 0.884 trillion) is internal. National debt most notably has seen a significant increase in the recent years; outstanding debt w