Weekly Economic Updates (14 February — 20 February)
- Nepal’s Export Grows 46% in Seven Months
Nepal’s exports surged 46% in the first seven months of FY 2024/25 (FY 2081/82), reaching NPR 127 billion, driven by higher soybean and sunflower oil exports. Imports rose by 10%, totaling NPR 988 billion.
2. NPC Sets NPR 1.9 Trillion Budget Ceiling
The National Planning Commission (NPC) proposed an NPR 1.9 trillion budget ceiling for FY 2025/26 (FY 2082/83), recommending it to the Finance Ministry. The current FY 2024/25 (FY 2081/82) budget was reduced from NPR 1.86 trillion to NPR 1.692 trillion. Final discussions are expected before the May 29 deadline.
3. UK’s BII Signs USD 15 Million Loan for Nepal’s Renewable Energy
British International Investment (BII) signed a USD 15 million loan with Sanima Bank to support Nepal’s renewable energy, aiding imports for hydropower, manufacturing, and agriculture, and advancing the 15GW electricity target by 2035.
4. NPR 19 Billion Approved for Reconstruction
The Finance Ministry has allocated NPR 18.88 billion for reconstructing 26 road and bridge projects damaged by last October’s floods and landslides. The funds will cover 13 roads, 13 bridges, and post-earthquake reconstruction in Jajarkot.
(Source:https://www.karobardaily.com/news/280223 )
5. Government to Raise NPR 10 Billion Loan
The government plans to raise NPR 10 billion through a nine-year public debt bond, Development Bond 2090, launching on Falgun 8, 2081. The interest rate will be set by bidding, with semi-annual payments. 85% of the bond is allocated to banks, and 15% to the public.
(Source:https://www.setopati.com/kinmel/banking/351387 )
6. Nepal’s Agricultural Land Shrinks to 22.59%
Nepal’s agricultural land has decreased to 22.59%, while forest and shrubland areas have grown to 46.08%. A 1.75% decline in agricultural land is due to land abandonment, infrastructure, and urban migration, with increased forest cover.
7. Khalti and IME Pay Merger Boosts Competition
The merger of Khalti and IME Pay, Nepal’s first digital wallet consolidation, seeks to challenge eSewa’s market dominance. With new regulations, it will enhance market efficiency, attract investments, and drive financial inclusion, transforming Nepal’s fintech sector.
8. Revenue Collection Below 50% of Revised Target
Government revenue collection for FY 2024/25 (FY 2081/82) reached NPR 642.85 billion, falling short of the revised target by 45.29%. Contributing factors include an economic slowdown, reduced imports, ineffective market monitoring, and higher tax subsidies.
9. Nepal’s New Trade Bill to Modernize Laws
Nepal introduced the Export and Import (Regulation) Act, 2025, replacing outdated trade laws. It includes EXIM codes, export incentives, and promotion funds to boost trade efficiency. However, experts criticize the bill for lacking sustainability standards and consumer protections.
(Source:https://kathmandupost.com/money/2025/02/14/bill-to-modernise-trade-laws-lands-in-house )
10. Nepal Airlines, Japan Airlines Expand Connectivity
Nepal Airlines and Japan Airlines signed an interline agreement, allowing global travel via Japan with seamless baggage check-in. This partnership boosts tourism, trade, and business for Nepal, while Nepal Airlines plans fleet expansion to enhance its global network.
