Weekly economic updates (17 January 2025–23 January 2025)
- NPR 47.71 Billion Spent on Education Abroad
Nepal transferred NPR 47.71 billion for education abroad in five months of FY 2024/25, while travel payments rose 12.2% to NPR 85.01 billion as per Nepal Rastra Bank (NRB). The net services deficit widened to NPR 40.71 billion.
(Source: https://thehimalayantimes.com/business/rs-4771-billion-paid-for-abroad-study-in-five-months )
2. Six Months of Economy: Export Rises by 31%
Nepal’s economy improved in the first half of FY 2081/82, with exports up 31.8% to NPR 98.79 billion and imports rising 7.1% to NPR 822.37 billion, enhancing the import-export ratio to 8.3:1 and revenue grew 12.7%.
3. Commercial Banks’ Profit Declines by 4.66%
Commercial banks’ profits in Nepal dropped 4.66% in Q2 FY 2081/82 to NPR 27.36 billion. Prabhu Bank led with 84% growth, while NIC Asia Bank’s profit fell 92%. Rising bad loans and restricted credit expansion affected profitability.
(Source:https://www.setopati.com/kinmel/banking/348871 )
4. Nepal Hikes Everest Climbing Fee to USD 15,000
Nepal has raised Everest climbing fees to USD 15,000 for spring, effective September 1, 2025. New rules mandate guides for peaks over 8,000m, limit permits to 55 days, enforce waste management, and boost worker insurance, promoting safety and sustainability.
(Source: https://kathmandupost.com/money/2025/01/21/nepal-hikes-everest-climbing-fee-to-15-000 )
5. Central Bank Actions Against Three Banks
Nepal Rastra Bank (NRB) penalized Prabhu Bank for irregular director appointments and capital adequacy errors, NIC Asia Bank for exceeding interest rate limits for directors’ families, and Himalayan Bank for loan misclassification in Q2 FY 2081/82. CEOs of all three banks were cautioned.
(Source:https://www.setopati.com/kinmel/banking/349009 )
6. 65,000 Nepali Youths Migrating Monthly for Work
In the first half of fiscal year 2081/82, 393,067 Nepali youths received labor permits, averaging 65,511 monthly. UAE was the top destination with 122,829 workers. Despite significant outflow, challenges like unresolved disputes and exploitation persist.
7. Nepal’s Economy to Grow Amid Reconstruction Efforts
The International Monetary Fund projects over 4% growth for Nepal in FY 2024–25, aided by post-flood recovery. Flood losses totaled NPR 46.68 billion, but public spending boosts recovery. Inflation hit 6.1%, expected to ease. The IMF approved USD 40.6 million, recognizing financial reforms.
8. Paddy Imports Double as India Eases Export Duty
Nepal’s paddy imports doubled to 381,318 metric tons in FY 2024/25, following India’s export duty relaxation. Import duties rose 113% to Rs 1.768 billion, driven by reduced smuggling and steady domestic demand. Rice production remains sufficient for local consumption.
9. India, Nepal Expand Cross-Border Transmission Line Capacity
Nepal and India will upgrade the Dhalkebar-Muzaffarpur Transmission Line to 1,100 MW and build new 400 kV lines by FY 2028/29. Nepal plans to generate 28,500 MW by 2035, with 15,000 MW for export, backed by USD 46.5 billion in investments.
10. Tourism Sector Faces Economic Strain in Nepal
Nepal’s tourism industry struggles with low hotel occupancy, despite 1.1 million arrivals in 2024. Hotels contribute NPR 109.27 billion, falling short of their NPR 216.73 billion annual costs. Low occupancy in new areas threatens investments and growth.
(Source: https://thehimalayantimes.com/opinion/tourist-arrivals-reality-and-tourisms-future )