KATHMANDU: Welcome to Nepal News’ Evening Economic Brief, your essential update on Nepal’s key financial developments. Stay ahead with concise insights on market trends, economic indicators, and policy shifts. Whether it’s stock movements, foreign exchange reserves, or major financial decisions, we deliver the most relevant data in a clear, digestible format. Designed for accuracy and impact, this briefing keeps you informed on Nepal’s evolving economic landscape. Here are today’s top updates:

IMF Approves $41.8M for Nepal, Urges Economic Reforms Amid Growth Challenges: The IMF has approved a $41.8 million disbursement for Nepal under the Extended Credit Facility (ECF), bringing total disbursements to $289.1 million. The IMF praised Nepal’s reform progress but warned of weak domestic demand, financial vulnerabilities, and political instability. Economic growth is expected at 4.2% in FY2024/25, aided by capital spending and hydropower. Inflation, which surged due to flood-related disruptions, is projected to stabilize at 5%. The IMF urged fiscal discipline, financial sector reforms, and stronger AML/CFT measures, especially after Nepal’s FATF grey listing. The government must improve capital spending and revenue mobilization for sustainable growth.

Nepal Faces Power Shortage Risk Amid Uncertain Electricity Supply from India: Nepal faces a potential power crisis as its electricity import agreement with India expires on March 16. Under the current deal, India supplies power 20 hours a day, but from Sunday, supply will be limited to 12 hours (6 AM to 6 PM). Nepal Electricity Authority (NEA) has urged the government to secure continued supply through diplomatic channels. Delays in approving a new agreement, along with political interference, have further complicated the situation, increasing the risk of power cuts, especially at night.

Industrial Load Shedding Persists Despite ‘End of Load Shedding’ Claims: Despite Nepal claiming to be load-shedding-free since 2018, industries still face 8–12 hours of power cuts daily. NEA chief Kulman Ghising takes credit for ending load shedding, but industrial demand remains unmet. With India restricting electricity exports to 6 AM–6 PM from March to May, shortages are worsening. Despite 99% household electrification, industries—requiring 40% of total demand—struggle. Ghising’s tenure nears its end, but Nepal’s power crisis persists, highlighting the failure of long-term energy planning.

Slow Capital Spending Despite Budget Allocation: Government capital expenditure remains sluggish, with only 23.37% of the allocated Rs 352.35 billion spent by Falgun, according to the Office of the Auditor General. Total government spending reached 45.12% of the annual budget, amounting to Rs 839.35 billion. Recurrent expenditure stood at 51.21%, while financial management spending reached 47.07%. Revenue collection has also been slow, with only 50.2% of the targeted Rs 1.47 trillion collected so far. Tax revenue stands at 49.74%, amounting to Rs 638.79 billion. The slow capital spending raises concerns over development project implementation.

Nepal Likely to See 800,000 Workers Abroad This Year: Nepal is set to witness a record-high in foreign employment, with the number of workers going abroad expected to reach 800,000 this fiscal year. According to the Department of Foreign Employment, 529,000 individuals obtained labor permits in the first eight months. On average, 66,125 people leave for foreign jobs every month. If this trend continues, the total could surpass 800,000. Last year, 741,000 Nepalis went abroad for work. The highest number of approvals this year was in December, with 81,010 permits issued. The rise is attributed to limited domestic job opportunities, pushing more Nepalis to seek employment overseas.

Real Estate Transactions Stable, Revenue Increases in Falgun: Despite stable real estate transactions in Falgun, revenue collection saw a 6.39% rise, according to the Department of Land Management and Records. A total of 46,061 transactions were recorded nationwide, similar to Magh’s 46,069. However, revenue increased from Rs 3.87 billion in Magh to Rs 4.12 billion in Falgun. Compared to last year’s 50,998 transactions in Falgun, this year saw a 9.68% decline. The government collects revenue from real estate through service tax, registration fees, and capital gains tax.

Nepal’s First Consumer Court Inaugurated to Strengthen Consumer Rights: Nepal’s first Consumer Court was inaugurated on March 15, 2025, by Chief Justice Prakashman Singh Raut, coinciding with World Consumer Rights Day. Established under the Consumer Protection Act 2018, the court aims to address unfair trade practices and substandard goods or services. Located in Tripureshwor, Kathmandu, it will initially handle cases from the Valley. Judge Ram Prasad Sharma will chair the court, with two under-secretaries as members. Chief Justice Raut emphasized the need for judicial activism to ensure credibility. Industry Minister Damodar Bhandari and Attorney General Ramesh Badal highlighted its role in consumer rights protection and fair market practices.

Birgunj Customs Collects Rs. 109.22 Billion in Eight Months: Birgunj Customs Office has collected Rs. 109.22 billion in revenue during the first eight months of the current fiscal year, against a target of Rs. 139.73 billion. Customs Chief Deepak Lamichhane stated that revenue collection is gradually improving, with expectations of further growth in the remaining four months. Petroleum products and vehicles remain the biggest revenue sources. The highest monthly collection was in Poush (Rs. 15.47 billion), followed by Magh (Rs. 14.44 billion) and Falgun (Rs. 14.63 billion).

Nepal-India Flour Millers Agree to Collaborate on Technology and Food Security: Nepali and Indian flour millers have agreed to collaborate on technology exchange, technical training, and food security. The agreement was signed at the Milling Vision 2030 seminar in Goa, organized by the Roller Mill Association of India. A 16-member Nepali delegation, led by Nepal Flour Mills Association President Kumud Dugad, participated in the event. Discussions covered wheat production, storage, processing, and advanced milling technologies. India also announced a technical training center in Lucknow and plans to export 200,000 tons of wheat to Nepal through its National Cooperative Export Limited. The Nepal Telecommunications Authority (NTA) has hinted at the need for mergers among internet service providers (ISPs) due to their high numbers but limited service coverage. NTA Chairman Bhupendra Bhandari stated that mergers are now essential for ISPs, though they may not be as effective for telecom companies.

NTA Pushes for ISP Mergers Amid Market Consolidation: Nepal has 107 registered ISPs, but only 20 are actively competitive. The internet market has grown from NPR 4 billion to NPR 26 billion, with a few dominant players. WorldLink leads with 31.78% market share and 973,000 customers, followed by Nepal Telecom (11.43%) and Dish Media Network. Despite the increasing ISP presence, many licensed companies fail to sustain operations. NTA suggests mergers to enhance service quality and ensure competitiveness in the expanding market.

Electric Microbus Fare Reduced on Pokhara-Baglung and Pokhara-Myagdi Routes: Dhawalagiri-Gandaki Transport Service Pvt. Ltd. has reduced fares for electric microbuses operating between Pokhara, Baglung, and Myagdi. Marking one year of service, the fare for Pokhara-Baglung has been lowered from Rs 450 to Rs 400, while Pokhara-Myagdi is now Rs 500, down from Rs 550. Currently, 20 microbuses serve Pokhara-Baglung, with additional routes to Narayangadh and Myagdi. Growing demand for electric vehicles has prompted fare adjustments. Transport operators emphasize the need for government support in expanding charging stations and infrastructure to promote eco-friendly travel.

Pathibhara Temple Donations Drop Amid Cable Car Protests: The Pathibhara Temple in Taplejung collected only Rs 1.3 million in cash offerings last month, a steep decline from Rs 5.57 million during the same period last year. Visitor numbers also dropped significantly, with only 7,400 devotees compared to 17,900 last year. The Pathibhara Area Development Committee attributes this decline to ongoing protests against a cable car project by Businessman Chandra Dhakal’s IME Group’s subsidiary. Opponents, including the Mukkumlung Struggle Committee, argue it threatens cultural heritage and the environment. Despite multiple negotiations, no resolution has been reached, while business groups accuse protestors of harming Nepal’s investment climate.

Expansion of Duna-Tapari Industry in Khotang: A duna-tapari (leaf bowl and plate) production business has started in Bamrang, Khotang, using sal leaves as an alternative to plastic. Entrepreneur Gyan Bahadur Rai aims to reduce plastic waste while creating local jobs. Similarly, a duna-tapari industry has been established in Halesi, targeting religious visitors. The municipality plans to mandate the use of locally produced duna-tapari at religious sites. This initiative is expected to promote sustainability, support local businesses, and help preserve traditional practices.