Weekly Economic Updates (20 December 2024–26 December
2024)
- Commission Issue Delays QR Payment Launch for Nepalis in India
The launch of QR code payments for Nepali travelers in India has been delayed due to unresolved commission issues, pending Indian regulatory approval, and cost-sharing agreements, despite technical readiness and successful trials in 2023.
(Source: https://kathmandupost.com/money/2024/12/23/qr-code-payment-system-for-nepalis-in-india-delayed )
2. Investment Secured for Nepal’s Electricity System Improvement
Nepal secured NPR 72.93 billion from the Asian Development Bank, European Union, and Norway to upgrade electricity infrastructure, including 290 km of transmission lines, five substations, and smart meters in Kathmandu. The project enhances supply reliability, regional trade, and electrification in underdeveloped provinces.
3. Public Debt Soars, Interest Costs Surpass Development Budget
Nepal’s public debt has hit NRS 2.5 trillion (43.69% of GDP), with NPR 402 billion allocated for debt servicing this fiscal year. Interest payments now surpass the development budget. By mid-December, debt servicing reached NRS 170 billion, 4.5 times higher than capital spending, highlighting fiscal strain.
4. NPR 13.04 billion Worth of Electricity Exported to India in First Five Months of Current FY.
In five months of FY 2081/82 BS (2024/25 AD), Nepal exported NPR 13.04 billion worth of electricity to India at an average of NPR 7.39 per unit. Exports were disrupted by floods and infrastructure damage, halting in winter as imports resumed. Nepal aims for NPR 30 billion exports this year.
(Source: https://www.setopati.com/kinmel/banking/346769 )
5. Nepal Rastra Bank Sets Foreign Exchange Rates
Nepal Rastra Bank set foreign exchange rates, with the US Dollar at NPR 136.03 (buying) and NPR 136.63 (selling). The Euro, Yuan, and Riyal rose, while the Australian Dollar, Singapore Dollar, and Swiss Franc fell. Rates are subject to updates on the bank’s website.
(Source: https://www.setopati.com/kinmel/banking/346769 )
6. Government Caps Savings, Loans in Cooperatives
The government has capped individual savings and loans in cooperatives with a cap of NPR 50 million for multi-provincial cooperatives, NPR 25 million for multi-district, and NPR 10 million for single-district cooperatives. Additionally, savings above NPR 1 million need source disclosure, and loans are limited to 15% of primary capital.
7. Government Plans Roadmap to Generate 28,500 MW Power in a Decade
Nepal’s “Energy Development Roadmap” targets 28,500 MW of electricity by 2035, with 13,000 MW for domestic use and 15,000 MW for export to India. The plan requires NPR 6.1 trillion, emphasizing public-private partnerships and private sector roles.
8. Diesel Imports Decline, Petrol Imports Rise
Diesel imports via Birgunj dropped 1.13% in the first five months of FY 2081/82 BS (2024/25 AD), with revenue down by 6.91%. Meanwhile, petrol imports rose 16.23% in quantity and 12.52% in revenue. While diesel uses the Motihari-Amlekhgunj pipeline, petrol transport by pipeline is planned, with rising infrastructure boosting demand.
9. Chamber Expo 2025 Highlights Local Products
The eighth Chamber Expo 2025, running from January 30, 2024 to February 3, 2025 at Bhrikutimandap, Kathmandu, features 200+ stalls with handicrafts, vehicles, food, and electronics. Participants include Nepal, India, and China, with highlights like an auto pavilion and kids’ play zone.
10. Trading Halted for Karnali Development Bank
Nepal Rastra Bank took control of Karnali Development Bank, suspending share transactions from Thursday. The stock was last traded at NPR 810, with a range of NPR 320 to NPR 870 in the past year. This follows similar interventions in Nepal Bank and Nepal Bangladesh Bank.
(Source:https://www.ratopati.com/story/464476/karnali-bikas-bank-share-trading-halted )