Weekly Economic Updates (23 January 2025 — 30 January 2025)
- Nepal Struggles to Meet SDG Targets Amid Funding Gaps
Nepal achieved only 41.7% progress on Sustainable Development Goals from 2016–2024 due to a NPR 585 billion annual funding gap, inflation, and weak implementation. Key targets like poverty reduction and maternal health lagged, raising concerns about meeting the 2030 goals.(Source:https://myrepublica.nagariknetwork.com/news/nepal-achieves-only-417-percent-progress-in-sdgs-679287026373d.html )
2. Government Waives Airport Fees to Boost Pokhara, Bhairahawa Flights
The government removed the NPR 3,000 airport service fee for international flights from Pokhara and Bhairahawa until September 2026. The decision aimed to attract airlines, lower ticket prices, and decentralize air traffic from Kathmandu’s Tribhuvan International Airport.(Source:https://myrepublica.nagariknetwork.com/news/govt-waives-fees-for-travelers-at-pokhara-and-bhairahawa-intl-airports-6792848f0185b.html )
3. Bank and Financial Institutions (BFIs) Invest NPR 12.7 Billion in Hydropower
Banks invested NPR 12.7 billion in the 77.5 MW Ghunsa Khola Hydropower Project in Taplejung. The NPR 18.13 billion project allocated 49% shares for public investment, including 29% for migrant workers. Infrastructure development had already started.(Source:https://myrepublica.nagariknetwork.com/news/bfis-to-invest-rs-127b-in-ghunsa-khola-hydel-project-96-55.html )
4. Trump’s Aid Freeze Disrupts USAID Projects in Nepal
Trump’s aid freeze halted USAID projects in Nepal, affecting health, agriculture, and education. The suspension of USD 131 million strained Nepal’s budget, disrupting over 300 NGOs. The funding cut slowed economic development and poverty reduction efforts.
(Source: https://kathmandupost.com/national/2025/01/28/trump-s-aid-freeze-hits-four-usaid-projects-in-nepal )
5. Tax Contributions from Global Tech Giants in Nepal
Google, Meta, and Netflix earned NPR 2.75 billion in Nepal in FY 2080/81, paying NPR 417 million in taxes. The rising tax contributions reflected Nepal’s growing digital economy and improved tax enforcement on international tech companies.
(Source: https://ekantipur.com/business/2025/01/28/from-google-meta-paying-them-in-nepal-due-to-41-crore-58-06.html )
6. NRB to Withdraw Additional Rs 30 Billion for Liquidity Management
Nepal Rastra Bank withdrew NPR 30 billion through a 21-day bidding process to manage liquidity. This followed NPR 231 billion previously mopped up, as banks struggled to increase lending, signaling ongoing financial stabilization efforts.
(Source: https://myrepublica.nagariknetwork.com/news/nrb-to-mop-rs-30-billion-for-liquidity-management-14-14.html )
7. Private Sector Optimistic About Business-Friendly Policies
Business groups welcomed new laws easing company registration, reducing bureaucratic hurdles, and allowing IT firms to invest abroad. Non-resident Nepalis could now start businesses in Nepal without prior foreign investment clearance, improving the business environment.(Source:https://myrepublica.nagariknetwork.com/news/private-sector-upbeat-about-economic-recovery-61-94.html )
8. 66,000 Nepali Migrate Abroad for Permanent Residency
In 2024, 66,831 Nepalis migrated for permanent residency, slightly lower than 70,915 in 2023. Over 856,000 sought foreign jobs, leading to a net migration loss of 300,000 people annually. Temporary stays and family visits also increased.
(Source: https://www.setopati.com/kinmel/economy/349581 )
9. Digital Economy to Reach 5% of GDP
Nepal aimed to expand its digital economy to 5% of GDP within three years. The government eased IT regulations, promoted AI and software development, and highlighted tech reforms at Chamber Expo to support digital transformation.(Source:https://www.setopati.com/kinmel/economy/349762 )
10. NCHL Introduces Seamless QR Payments for Tourists
Nepal Clearing House Limited introduced QR payments for tourists from 10 countries, reducing reliance on ATMs. Fourteen e-wallets supported ‘Nepal Pay,’ benefiting travelers from China, South Korea, and Malaysia. The system integrated foreign transactions into Nepal’s banking network.(Source:https://myrepublica.nagariknetwork.com/news/nchl-accelerates-cross-border-digital-payments-26-92.html )