Weekly Economic Updates (21 February — 27 February)
3 min readFeb 28, 2025
- Government Achieves Only 4% of Annual Targets
In the first six months of FY 2024/25 AD (FY 2081/82 BS), the government met just 4.2% of its annual targets, down from 8.5% last year. Of 1,010 planned activities, only 27 were completed. The Ministry of Law performed best, while the Labour Ministry had the lowest completion rate at 25%.(Source:https://myrepublica.nagariknetwork.com/news/govt-meets-only-4-of-annual-targets-in-first-half-of-current-fy-11-13.html) - Nepal’s Agriculture Imports Rise Despite Subsidies
Nepal imported NPR 203 billion in agricultural goods in seven months, increasing dependency and trade imbalance. Despite NPR 107.66 billion in subsidies over five years, weak policies and shrinking farmland hurt domestic production. The government cut the agriculture budget, questioning subsidy effectiveness.
(Source:https://myrepublica.nagariknetwork.com/news/nepals-agro-imports-surge-to-rs-203-billion-closing-in-on-last-years-total-44-51.html ) - Nepal Added to FATF Grey List
Nepal joined the Financial Action Task Force (FATF) grey list due to weak anti-money laundering enforcement. FATF cited poor surveillance, government inaction, and lack of coordination. This may hurt foreign investment and banking. In response, Nepal pledged stricter regulations and improved investigations to exit the list.
(Source:https://myrepublica.nagariknetwork.com/news/weak-implementation-of-anti-money-laundering-laws-drags-nepal-into-fatf-gre-42-64.html ) - NRB Withdraws NPR 30 Billion Liquidity
Nepal Rastra Bank withdrew NPR 30 billion from the market to manage liquidity. Banks and financial institutions submitted bids for the process. The move aimed to control excess money supply, stabilize financial conditions, and support efficient monetary policy.
(Source:https://myrepublica.nagariknetwork.com/news/nrb-to-mop-rs-30-billion-from-market-for-liquidity-management-33-14.html ) - Upper Myagdi Hydropower Project Construction Begins
Construction of the 37 MW Upper Myagdi Hydropower Project started in Myagdi, aiming for completion by mid-April 2026. Estimated at NPR 6.699 billion, it includes a tunnel, dam, and powerhouse. Funded by major banks, it will supply 215.714 GWh to the central grid via a 132 kV line.
(source:https://myrepublica.nagariknetwork.com/news/37-mw-upper-myagdi-hydropower-project-construction-begins-14-30.html) - Japan, UNDP Collaborate on Jajarkot Earthquake Recovery
Japan and UNDP Nepal signed a partnership to support earthquake recovery in Jajarkot and Rukum West. Japan provided JPY 250 million (USD 1.7 million) to restore livelihoods, strengthen local governance, and improve disaster preparedness, enhancing long-term resilience in the quake-affected areas.
(Source:https://thehimalayantimes.com/nepal/japan-undp-join-hands-to-support-quake-recovery-in-jajarkot-rukum-west ) - Nepal’s Petroleum Imports Reach NPR 104.76 Billion
Nepal imported petroleum worth NPR 104.76 billion through the Birgunj border in the first seven months of FY 2024/25 AD (FY 2081/82 BS), up NPR 840 million from last year. The increase, driven by rising fuel demand and infrastructure projects, generated NPR 43.11 billion in customs revenue.
(Source:https://myrepublica.nagariknetwork.com/news/nepal-imports-petroleum-products-worth-over-rs-100-billion-68-13.html) - Nepal’s Surge in Foreign Work Permits
In the first seven months of FY 2024/25 AD (FY 2081/82 BS), 465,508 Nepalis received work permits for foreign jobs. The highest surge, 84,226 permits, occurred from mid-November to mid-December, following major festivals. This trend reflected seasonal employment patterns.
(Source:https://myrepublica.nagariknetwork.com/news/over-400000-secure-work-permits-for-foreign-jobs-in-seven-months-60-44.html ) - Nepal Airlines Grounds Planes, Disrupts Operations
Nepal Airlines grounds three international aircraft, causing flight disruptions and passenger delays. One wide-body plane needs repairs, and another remains in China due to technical issues. A grounded Twin Otter halts domestic flights. The airline forms a committee to investigate maintenance delays.
(Source: https://www.setopati.com/kinmel/tourism/352135 ) - Birgunj Customs Exports Double to NPR 40 Billion
Exports through Birgunj customs doubled in the first seven months of FY 2024/25 AD (FY 2081/82 BS), reaching NPR 40.35 billion, up from NPR 17.08 billion last year. Birgunj contributes 31.72% of Nepal’s total exports. Key exports include refined soybean oil, sunflower oil, and fruit juice, along with significant growth in iron, synthetic yarn, clothing, and cattle feed.
(Source:https://thehimalayantimes.com/business/exports-up-nearly-by-double-through-birgunj-customs)
