Weekly Economic Updates (27 December 2024–2 January
2025)

Nepal Economic Forum
3 min readJan 3, 2025

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  1. Five-Month Foreign Investment Commitment Reaches NPR 21 Billion

Nepal secured NPR 20.77 billion in FDI commitments over five months, with tourism (62%) and services (23%) leading. However, actual inflow was NPR 5.76 billion, due to phased approvals and delayed fund arrivals, according to Nepal Rastra Bank.

(Source:https://ekantipur.com/business/2024/12/27/21-billion-foreign-investment-commitment-in-five-months-02-09.html )

2. Government Approves G2G Railway Equipment Procurement

Nepal’s government approved G2G railway equipment procurement, hiring skilled manpower, and drafting a VIP services bill. It also formed an Insurance Authority committee, endorsed Motor Vehicles Rules-2081, and promoted Joint Secretary Madhu Prasad Bhetwal to Secretary for the Water and Energy Commission.

(Source:https://risingnepaldaily.com/news/54380 )

3. NPR 72.93 Billion Secured for Power Upgrade

Nepal secured NPR 72.93 billion from Asian Development Bank, European Union, and Norway to modernize power transmission, including 290 km of lines and smart meters. The projects aim to improve grid reliability, regional trade, and green energy exports, benefiting Karnali and Lumbini provinces.

(Source:https://ekantipur.com/news/2024/12/27/investment-raised-for-the-improvement-and-expansion-of-the-electricity-system-04-00.html )

4. Kiwi Jam and Wine Boost Farmers’ Income

Dupcheshwar Rural Municipality boosts farmers’ income by processing kiwi into jam and wine. Future plans include juice, candy, and pickles, with branding and certification to increase profits, building on last year’s rhododendron juice success.

(Source: https://www.setopati.com/kinmel/business/347163 )

5. Disclosure Required for NPR 1 Million Cooperative Savings

Nepal’s new ordinance requires fund source disclosure for savings over NPR 1 million, limits cooperative membership, shortens director terms, and classifies cooperatives. A National Cooperative Regulatory Authority ensures protection and addresses sector challenges.

(Source:https://kathmandupost.com/national/2024/12/30/source-a-must-to-save-over-rs1-million-in-a-cooperative )

6. State-Subsidized Loans for Startups in March

From March 2024, Nepal’s startups can access loans up to NPR 2.5 million at 3% interest. IEDI is shortlisting 5,000+ applicants, with NPR 1 billion allocated. The National Startup Policy 2024 aims to attract foreign investments and establish a Startup Fund.

(Source:https://kathmandupost.com/money/2024/12/30/startups-to-get-state-subsidised-loans-in-march )

7. Nepal’s Hospitality Industry: Key Economic Driver

Nepal’s hospitality industry generates NPR 326 billion annually, with 142,223 establishments and 387,747 employees. Bagmati contributes NPR 152 billion. Hotels have a 20% margin, assets worth NPR 543.25 billion, and wages of NPR 20.61 billion. Banks fund 40% of the sector.

(Source:https://kathmandupost.com/money/2025/01/02/hospitality-industry-contributes-rs326-billion-to-nepal-s-economy )

8. NEPSE Climbs to 2586 Points, NPR 4.6 billion Trade

The NEPSE index rose 4.63 points to 2586.23, with a trading volume of NPR 4.6 billion, up by NPR 1 billion. Of 315 securities, 156 gained value. Nyadi Hydropower surged 10%, while Support Microfinance dropped 10%. The Development Bank sector rose 2.4%, and the trade sector fell 2.03%.

(Source: https://www.setopati.com/kinmel/banking/347407 )

9. Government Blacklists 12 Contractors, Suppliers Nationwide

The government blacklisted 12 contractors for violations, banning them from procurement for 6 months to 3 years. The PPMO’s decision ensures accountability in public projects, affecting bodies like Nepal Telecom and the Department of Roads.

(Source: https://thehimalayantimes.com/business/govt-blacklists-12-contractor-companies-suppliers )

10. Nepal Welcomes Over 1.15 Million Tourists in 2024

In 2024, Nepal’s tourist arrivals rose 14% to 1,147,567, with March seeing the highest numbers. Events like the Nepal Premier League and Buddhist conferences helped surpass pre-pandemic levels.

(Source: https://ekantipur.com/business/2025/01/02/last-year-eleven-and-a-half-million-tourists-entered-nepal-32-51.html )

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Nepal Economic Forum
Nepal Economic Forum

Written by Nepal Economic Forum

NEF is a not for profit organization aiming to redefine the economic development discourse in Nepal.

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