Weekly Economic Updates (14th March 2025 to 20th March 2025)
3 min readMar 21, 2025
- Nepal Faces Increased Load Shedding from March
Starting March 15, Nepal will import electricity from India only between 6 AM and 6 PM, increasing industrial load shedding to 12 hours. This follows India’s decision to limit exports, causing concerns over rising costs and supply restrictions.
(Source:https://www.onlinekhabar.com/2025/03/1641446/now-electricity-from-india-will-only-be-available-during-the-day-causing-load-shedding-in-industries-for-up-to-12-hours ) - 23% Capital Spending, 50.75% Revenue Collected
In FY 2024/25’s first eight months, the government spent 23% of its NPR 352.35 billion capital budget, with a NPR 105 billion deficit. Revenue reached 50.75% of the NPR 1.419 trillion target, and foreign grants hit 17%.
(Source:https://myrepublica.nagariknetwork.com/news/govt-spent-only-23-of-capital-expenditure-in-first-eight-months-of-current--66-95.html ) - NOC Starts Petrol Imports via Pipeline
Nepal Oil Corporation now imports petrol through the Motihari-Amlekhgunj pipeline, improving efficiency. Upgrades expanded storage and automation. The 69.2 km pipeline, with a 300 kiloliters/hour capacity, ensures stable fuel supply and will extend to Chitwan.
(Source:https://myrepublica.nagariknetwork.com/news/noc-begins-petrol-imports-from-india-via-pipeline-45-90.html ) - Esewa Money Transfer Partners with Social Security Fund
Esewa Money Transfer partnered with the Social Security Fund to enable overseas contributions to Nepal’s social security system. The collaboration streamlines payments, making them more accessible and efficient for Nepalis abroad.
(Source:https://myrepublica.nagariknetwork.com/news/esewa-money-transfer-partners-with-social-security-fund-66-77.html ) - Nepal Sees Sharp Rise in FDI Commitment
Nepal received NPR 17 billion in FDI commitments in Falgun (mid-February to mid-March), totaling NPR 44 billion from mid-July to mid-March. The service sector accounted for 50%, with tourism and IT leading. Business visa approvals rose to 2,407.
(Source:https://myrepublica.nagariknetwork.com/news/nepal-receives-fdi-commitment-worth-rs-17-billion-in-falgun-40-66.html ) - Urban Development Ministry Spends 18% of Budget
The Urban Development Ministry spent 17.93% (NPR 12.24 billion) of its NPR 91.35 billion budget this fiscal year. Only 1,098 contracts were signed out of 3,716 programs, with 124 projects completed. Dharahara attracted 130,000 visitors, generating NPR 23.7 million.
(Source:https://www.karobardaily.com/news/282403 ) - Nepali Banks’ Loan and Deposit Growth
Nepali commercial banks issued NPR 22.74 billion in new loans last month, bringing total lending to NPR 4.85 trillion by mid-March. Deposits rose to NPR 6.03 trillion. NPLs increased to 4.73%, with non-banking assets reaching NPR 35.82 billion.
(Source:https://myrepublica.nagariknetwork.com/news/commercial-banks-issued-new-loans-worth-rs-2274-billion-last-month-98-61.html ) - Nepal’s Public Debt Reaches NPR 2.676 Trillion
Nepal’s public debt rose to NPR 2.676 trillion, increasing by NPR 241.93 billion in eight months. Government spending reached NPR 841.14 billion, with only NPR 82.56 billion for capital investment. External loans make up 50.83% of the debt.
(Source:https://myrepublica.nagariknetwork.com/news/public-debt-soars-to-4691-percent-of-nepals-gdp-due-to-governments-rampant--95-50.html) - NRB Withdraws NPR 25 Billion for Liquidity
Nepal Rastra Bank plans to withdraw NPR 25 billion from the banking system for 21 days, following a NPR 40 billion withdrawal on March 16. Despite rising deposits, loan demand remains low, with NPR 6.762 trillion in deposits.
(Source:https://myrepublica.nagariknetwork.com/news/nrb-to-mop-rs-25-billion-from-bfis-96-34.html ) - Sudurpaschim Struggles with Low Budget Spending
Sudurpaschim Province spent only NPR 6.62 billion (21%) of its NPR 31.53 billion budget by the end of Falgun (mid-February to mid-March), due to a 71-day “budget holiday.” Protests by accounting officers halted payments, affecting salaries and projects.
(Source:https://www.karobardaily.com/news/282468 )
