KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top economic news highlights:
Nepal’s Public Debt Hits Rs 2.667 Trillion as Debt Servicing Soars Past Rs 250 Billion:
Nepal’s public debt rose to Rs 2.667 trillion—46.75% of GDP—by mid-April 2025, up by Rs 233.17 billion since the fiscal year began, according to the Public Debt Management Office. The government raised Rs 366.09 billion in public debt in nine months, spending Rs 252.48 billion on debt servicing. Domestic debt accounted for Rs 291.14 billion raised and Rs 212.93 billion serviced. External debt stands at Rs 1.365 trillion, with servicing costs reaching Rs 39.43 billion. Exchange rate fluctuations added Rs 70.09 billion to Nepal’s external debt burden, as foreign loans are managed under the SDR currency basket system.
Nepal’s Industrial Sector Shows Signs of Recovery Amid Rising Capacity and Revenue:
Nepal’s industrial sector is showing early signs of recovery, with capacity utilization rising to 62.35% in Q2 of FY 2024/25, up from 60.26% in Q1, according to a Confederation of Nepalese Industries (CNI) report. Surveyed firms reported a 12.33% revenue increase and a 19.67% rise in demand, signaling improved market activity. The manufacturing sector led these gains, while services saw a slight dip. Despite short-term caution, 62.5% of industrialists plan to invest next quarter. These trends align with a 5.1% economic growth projection, reflecting cautious optimism for Nepal’s economic recovery after years of weak demand.
NEPSE Index Rises by 52 Points, Market Sees Surge in Trading Volume and Capitalization:
The share market operated for four days this week, with the NEPSE index gaining on three of them. The index closed at 2,722.73 points—up 52.03 points from last week’s 2,670.70. Trading volume reached Rs 32.88 billion, a notable increase from Rs 21.09 billion the previous week. Market capitalization rose to Rs 4.526 trillion, boosting investor wealth by Rs 87 billion. The market rebounded after the end of fiscal pressure from Chaitra month. Technical indicators show NEPSE has crossed the 50-day moving average, with strong momentum expected to continue if it sustains above the 2,735 pivot level next week.
Nepal Rastra Bank Introduces New Measures for Transparent and Regulated Interest Rates:
Nepal Rastra Bank has implemented new policies to ensure transparency and regulation in interest rate determination by banks and financial institutions. Key provisions include publishing annual interest rates clearly, limiting interest rate differences between deposit types to 5 percentage points, and restricting rate changes to within 10% of the previous month’s averages. Institutional fixed deposits must offer at least 1 percentage point less than public deposits. Remittance savings accounts must earn at least 1 percentage point extra. Interest rates on loans cannot fall below base rates, and interest rate differences for similar deposits and loans cannot exceed 2 percentage points.
Banks Expand Lending by Rs 63.9 Billion in Chaitra; Deposits Rise by Rs 81.3 Billion:
In Chaitra, Nepali banks increased lending by Rs 63.9 billion, with Global IME Bank leading at Rs 9 billion, followed by Rastriya Banijya Bank (Rs 7.9 billion) and Nabil Bank (Rs 7.1 billion). Machhapuchchhre Bank had the lowest expansion at Rs 1.1 billion. Loan investments declined in Prabhu, Kumari, and NIC Asia banks. Notably, 36% of total lending occurred on the last day of Chaitra. Meanwhile, commercial banks collected Rs 81.3 billion in deposits, led by Rastriya Banijya Bank (Rs 12.7 billion). While 15 banks saw deposit growth, five—including Citizens, NIC Asia, and Sanima—experienced declines.
Property Insurance Faces Highest Claims from Royalist Protest Damage in Kathmandu:
Following the royalist protests on March 28 in Kathmandu’s Koteshwar and surrounding areas, property insurance recorded the highest number of claims among non-life insurers. As of Baisakh 3, 21 property damage claims were filed across 12 insurers, totaling Rs 27.8 million in potential payouts. Companies have settled Rs 3.2 million so far. Motor (private) insurance followed with 22 claims worth Rs 10.6 million, though only Rs 92,382 has been paid. Engineering, public motor, and miscellaneous insurance categories also saw limited but notable claims. In total, 50 riot-related claims worth Rs 45.9 million were filed, with Rs 3.3 million already disbursed.
Shaligram Museum in Baglung Draws 150,000 Visitors, Becomes Key Religious Site:
The Shaligram Museum in Kundule, Baglung Municipality-4, has become a prominent religious attraction, housing around 125,000 sacred Shaligram stones inside a 100-meter tunnel. Revered by Hindus, these stones—some weighing up to 300 kg—are believed to bring prosperity and are found along the Kali Gandaki River. Curator Rishi Prapannacharya noted a surge in Indian, especially South Indian, pilgrims alongside Nepali visitors. In fiscal year 2024/25, the museum welcomed about 150,000 visitors—up by 50,000 from last year. Opened just four years ago, it now serves as a major stop for pilgrims heading to Muktinath.
Fertiliser Delays Force Morang Farmers to Use Costly, Substandard Indian Urea:
Fertiliser import delays have forced Morang farmers to rely on substandard Indian urea, costing up to Rs 1,500 per 50-kg sack, compared to the subsidised Nepali rate of Rs 940. Government-imported fertilisers through AICL and STC have either just reached Kolkata Port or are still being processed. AICL is importing 25,000 tonnes, with 6,500 tonnes for Koshi Province. Farmers say Indian urea requires double the quantity for the same yield, highlighting the urgent need for timely fertiliser distribution.
Budhigandaki Hydropower Project to Start Next Fiscal Year with Domestic Investment:
After years of delay, the 1,200 MW Budhigandaki Hydropower Project will begin in FY 2082/83 with domestic investment. The government has finalized a new modality, separating dam and powerhouse construction under two companies to reduce financial risk. Completion is targeted by FY 2090/91. An estimated Rs 398 billion will be required, with 75% funded through loans. The project promises an equity internal rate of return of 11.25% and a 17.54% return on equity, with significant government and public investment.
Nepal Bank Posts Rs 2.78 Billion Profit in Nine Months:
Nepal Bank Limited reported a net profit of Rs 2.78 billion in the first nine months of the current fiscal year, with Rs 2.32 billion earned in the third quarter alone. This marks a significant rise from just Rs 130 million in the same period last year. The increase is attributed to Rs 2.24 billion recovered from overdue interest and relaxed loan restructuring policies. The bank’s bad loan ratio rose to 5.45%, while its base rate stands at 5.96%.
China-Imported EVs Worth Rs 7.05 Billion Enter Nepal via Tatopani:
By mid-March, Nepal imported 2,724 electric vehicles worth Rs 7.058 billion from China through the Tatopani border. Of these, 700 are awaiting inspection at the customs yard and are expected to reach the capital by April. According to the Tatopani Customs Office, Rs 3.756 billion in revenue has been collected. EVs include electric buses, microbuses, minibuses, and cars of various capacities. Brands like Omoda, Deepal, Leapmotor, MG, and DFSK have entered Nepal through this key checkpoint.
Pre-Monsoon Paddy Plantation Thrives in Dang’s Banglachuli Municipality:
Farmers in Banglachuli Rural Municipality of Dang are increasingly planting pre-monsoon paddy, thanks to fertile fields and irrigation from Arjun Khola and Suka Khola. In Ward-8 Khaireni, Sher Bahadur Budhathoki and Chuma Rana’s family are actively engaged in paddy farming, benefitting from year-round water availability. Ward Chair Das Bahadur Dangi noted that farmers in Wards 3, 4, and 8 are turning to early paddy cultivation for higher earnings. The trend is growing in Khaireni, Gahatera, and nearby areas.
