KATHMANDU: Stay informed with Nepal News’ Evening Economic Briefing, your daily roundup of Nepal’s key financial developments. This concise update delivers essential insights into market trends, economic indicators, and policy shifts, ensuring you stay ahead in an ever-evolving economy. Whether tracking stock movements, foreign exchange reserves, or major financial decisions, we bring you the most relevant data in a clear, digestible format. Designed for accuracy and impact, this briefing is your go-to resource for understanding Nepal’s economic pulse. Here are today’s top updates:

Government Faces Rs 101 Billion Deficit in Eight Months: The government has been unable to balance income and expenditure, recording a Rs 101 billion deficit in the first eight months of the current fiscal year.

According to the Financial Comptroller General Office, total revenue stood at Rs 738 billion, while expenditure reached Rs 839 billion. Revenue sources included Rs 720 billion from taxes, Rs 9.16 billion in grants, and Rs 9.31 billion from other budgetary support. Government spending comprised Rs 584 billion in recurrent expenses, Rs 82 billion in capital expenditure, and Rs 172 billion in financial management. With revenue collection at only 50.75% of the annual target, meeting the fiscal goal remains challenging.

Despite setting a Rs 547 billion borrowing target, the government has already raised Rs 290 billion in loans. As of January, Nepal’s total debt has reached Rs 2.61 trillion, with Rs 1.28 trillion in domestic loans and Rs 1.32 trillion in external debt.

Government Expenditure Exceeds Revenue in Second Quarter of FY 2024/25: The government’s expenditure has surpassed its income in the second quarter of the current fiscal year, with spending reaching Rs 839.36 billion against an income of Rs 738.82 billion, creating a deficit of Rs 153.47 billion, according to the Office of the Financial Comptroller General. Development spending remains low, with only 23.37% of the capital budget utilized. Revenue collection stands at 50.2% of the annual target, while foreign grant mobilization is weak at just 17.51% of the projected amount. Despite significant spending, the slow pace of development investment raises concerns about fiscal management.

Nepal Secures Over Rs 44.66 Billion in Foreign Investment Commitments in Eight Months: In the first eight months of the current fiscal year, Nepal received foreign investment commitments exceeding Rs 44.66 billion across 427 industries, according to the Department of Industry. These investments are expected to generate 11,475 jobs. In Falgun alone, the department approved Rs 17.79 billion for 40 industries. The service sector received the highest commitments, with Rs 22.36 billion for 54 industries, followed by the tourism sector, which secured Rs 17.90 billion across 180 industries. Additionally, commitments were received in manufacturing (Rs 2.63 billion), IT (Rs 950 million), agriculture (Rs 760 million), energy (Rs 25.5 million), and infrastructure (Rs 20 million).

Credit Investment Gaining Momentum:  Credit investment in Nepal is rising, with banks disbursing Rs 20 billion in Falgun, bringing total credit to Rs 3.03 trillion. Increased imports, stock market growth, and higher working capital loans have driven this rise. While Rs 700 billion is available for investment, banks are focusing on loan recovery. By Falgun’s end, deposits stood at Rs 6.74 trillion, with an average lending rate of 8.55%.

Impact of U.S. Aid Cut: Rhino Census Halted in Nepal: The rhino census, conducted every five years, has been suspended this year due to a lack of funds after USAID paused its support. The government has not allocated a budget for regular rhino monitoring, so parks will estimate rhino numbers through manual observations.

Nepal’s last census in 2021 recorded 752 rhinos: 694 in Chitwan, 38 in Bardiya, 18 in Shukla Phanta, and 3 in Parsa. Historic counts show fluctuations, with 800 rhinos in 1950, declining to 100 by 1965, and gradually increasing to 466 in 1995. Later counts recorded 612 (2000), 409 (2005), 435 (2010), 645 (2015), and 752 (2021). Despite financial constraints, officials aim to conduct a partial census using available park resources.

India to Supply Electricity Only for 12 Hours Daily from Sunday: Starting Sunday, India will supply electricity to Nepal only from 6 AM to 6 PM (12 hours). Currently, Nepal imports power for up to 20 hours daily, but with the reduction, load shedding in industrial areas is expected to increase.

According to Chandan Ghosh, chief of NEA’s Load Dispatch Center, India is following the existing agreement to supply electricity only during solar hours. He assured that Nepal would manage the situation through alternative sources like Kulekhani hydropower.

India had set March 15 to June 30 as the period to supply electricity only during solar hours. Peak-hour load shedding in industries may worsen, but discussions with India are ongoing.

A Project Steering Committee (PSC) meeting in February also set new power tariffs for 2025/26. The new rates, effective April 2025, await approval from NEA’s board and the Electricity Regulatory Commission.

PM Oli Urges NPC to Prioritize Poverty Alleviation Through Productivity and Entrepreneurship: Prime Minister KP Sharma Oli has directed the National Planning Commission (NPC) to prioritize poverty alleviation by increasing production, productivity, and entrepreneurship. In a meeting with NPC officials, he emphasized investing in skill development, employment, and entrepreneurship as infrastructure projects near completion. Oli urged ministries to present concrete plans to boost productivity, stating that economic growth depends on self-reliance. He also stressed effective monitoring of national-pride projects and governance. NPC Vice Chairman Prof. Dr. Shiva Raj Adhikari briefed on the 16th Plan, project reviews, and fiscal federalism. Economic advisor Dr. Yuba Raj Khatiwada and Chief Secretary Eaknarayan Aryal attended.

Nepal Rastra Bank Moves Toward Full Implementation of Basel III: Nepal Rastra Bank (NRB) is advancing toward full implementation of Basel III by introducing a new liquidity framework for commercial banks. The “Basel Framework on Liquidity Standards,” prepared by NRB’s Bank and Financial Institutions Regulation Department, has been released for feedback. This framework ensures financial institutions maintain adequate liquidity to prevent crises. It includes Liquidity Coverage Ratio (LCR) requirements, mandating banks to hold High-Quality Liquid Assets (HQLA) sufficient to cover 30 days of cash outflows. HQLA is categorized into Level 1 assets (such as cash reserves and government bonds, counted at 100%) and Level 2 assets (lower-rated bonds, counted at 85% or 50%).

Additionally, banks must align long-term lending with long-term funding sources. Reporting began in 2081 BS, with full implementation set for 2085 BS. The NRB aims for 70% compliance by mid-2082, 85% by mid-2083, and 100% by mid-2084.

PM Oli Directs Streamlining of ‘Sagarmatha Sambaad’ Scheduled for May: Prime Minister KP Sharma Oli has directed authorities to streamline preparations for the three-day Sagarmatha Sambaad (Sagarmatha Dialogue) set for May 16 in Kathmandu. After inspecting the Sagarmatha Sambaad Secretariat, he emphasized efficient coordination. A Directive Committee, led by Oli, oversees the event, with a Management Committee chaired by Foreign Minister Dr. Arzu Rana Deuba. The government has invited global leaders, including from India and China. Announced for the International Year of Glacier Preservation 2025, the dialogue focuses on climate change, mountains, and humanity’s future. A press meet will soon update on preparations.

Muglin-Pokhara Road: 73 km Blacktopped in Eastern Section: Under the Muglin-Pokhara Road Project, 73.11 km of blacktopping has been completed in the eastern section. Engineer Bishnu Prasad Pandey reported 78.95% physical and 59.25% financial progress. The contract, worth Rs 6.21 billion, was awarded to China Communication Construction. Additionally, the 315-meter-long Madi Bridge has reached 65.07% completion. This four-lane project, funded by the Asian Development Bank (ADB), aims to enhance connectivity.

1,300 Tonnes of Fertiliser Stranded at Tatopani Customs for Eight Months: Around 1,300 tonnes of chemical fertiliser has been stuck at Tatopani Customs for eight months due to a pricing dispute between the Agricultural Inputs Company Limited (AICL) and importers. Imported from China by a joint venture, the fertiliser is deteriorating in storage. A High Court ruling ordered both parties to resolve the issue, but no agreement has been reached. Farmers face shortages while the customs office, lacking seizure authority, awaits a resolution. Clearance will only be given after lab tests confirm usability, but delays continue to hinder storage and distribution.

Four Companies Bid for 106 MW Jagdulla Hydropower Project: Four companies—SIL-Three HC JV, Sino Hydro Corporation Ltd., JCE-ANK JV, and 2MG-FEWA JV—have applied for the 106 MW Jagdulla Hydropower Project. One will be selected after a technical evaluation. The project had earlier canceled bids from seven companies due to technical ineligibility. Initially planned under the EPC model, the project is estimated to cost NPR 23 billion, with NPR 16 billion in loans and NPR 7 billion in equity. Major shareholders include Nepal Electricity Authority (9%), Hydroelectricity Investment and Development Company (10%), and local governments (3%). Public investors will hold 33%, while affected locals and project staff will have dedicated shares. Led by Nepal Infrastructure Bank, financial management involves investments from Nabil Bank, HIDCL, Laxmi Sunrise Bank, and Everest Bank. The semi-reservoir project, with a gross head of 789m, will generate 623 GWh annually, featuring a 23m-high, 93m-long dam and a 6.1km tunnel in Hurikot, Jagdulla Rural Municipality-1.

Energy Ministry Criticizes NEA Over Misinformation on Power Tariff Deal with India: As tensions rise between Energy Minister Deepak Khadka and NEA Executive Director Kulman Ghising, the Energy Ministry has strongly objected to what it calls false information spread by the Nepal Electricity Authority (NEA). In a statement issued on Falgun 28, the ministry refuted NEA’s Falgun 13 claim that a 1.5% increase in power exchange rates with India for FY 2025/26 was agreed upon after consulting Minister Khadka and Secretary Suresh Acharya. The ministry labeled this claim as baseless and misleading, accusing NEA of procedural violations during the 16th Nepal-India Power Exchange Committee meeting in New Delhi.

Indian Embassy & Jagdamba Motors Distribute TVS Ntorq Scooters to Persons with Disabilities: In collaboration with the Indian Embassy, Jagdamba Motors provided five TVS Ntorq scooters to persons with disabilities, promoting inclusivity and accessibility. The event was held at the Indian Embassy Welfare Center, Sorhakhutte, reaffirming both organizations’ commitment to sustainable mobility.

Dignitaries including Major Navin Janu and TVS representatives attended. Jagdamba Motors Executive Director Akhil Gupta emphasized mobility as a fundamental right, ensuring independence for all. The initiative reflects TVS’s commitment to social responsibility, fostering empowerment and inclusivity.

Bhagirathi Bhattarai Gyawali Takes Oath as ERC Member: Bhagirathi Bhattarai Gyawali took the oath as a member of the Electricity Regulatory Commission in the presence of Energy Minister Deepak Khadka. She previously served on the commission (2076–2081) and held key regulatory roles. Minister Khadka emphasized Nepal’s goal of 28,500 MW electricity by 2035, urging swift tariff and transmission fee decisions. The ceremony included senior government officials and experts.

Gold Price Hits Record High at Rs 174,500 Per Tola: Gold prices in Nepal have reached a new record of Rs 174,500 per tola, rising by Rs 4,000 in a day, according to the Federation of Nepal Gold and Silver Dealers Association (Fenegosida). Silver is being traded at Rs 2,050 per tola. The surge is attributed to the rising US dollar value and global political factors.