Weekly Economic Updates (28 February — 06 March)
- Nepal Plans NPR 1.9 Trillion Budget Amid Aid Cuts
Nepal’s FY 2025/26 budget, capped at NPR 1.9 trillion, faces pressure from US aid cuts, including MCC. Ministries must submit proposals by April 5, with public consultations from March 29 to April 22.
2. NEA Reports NPR 11.36 Billion Profit
Nepal Electricity Authority (NEA) earned NPR 11.36 billion in six months, generating NPR 70.44 billion from electricity sales and other sources. It spent NPR 59.08 billion on purchases and projects. NEA exported 1.77 billion units to India, earning NPR 13.9 billion, while importing electricity in winter. Despite past losses, NEA remained consistently profitable, earning NPR 14.46 billion last year.
3. Nepal Expands Pumped Storage Hydropower Projects
Nepal Electricity Authority advanced pumped storage projects for year-round power and cost reduction, selecting 33 of 156 sites. The first phase targets 510 MW and 336 billion units, enhancing energy security, feasibility studies, and high-priced exports to India.
4. Surge in Nepal’s Paddy and Rice Imports
In seven months of FY 2024/25 (FY 2081/82), Nepal imported 226.4 million kg of paddy worth NPR 8.68 billion, a 72% rise from last year. Rice imports reached 13.37 million kg, worth NPR 1.35 billion, while maize imports slightly declined to 57.71 million kg, worth NPR 2.96 billion.
5. Ministry Requests NPR 11 Billion for Expanding Provincial Airports
The Ministry of Culture, Tourism, and Civil Aviation requested NPR 11 billion for airport expansions in Karnali and Lumbini Provinces. The funds will support land acquisition and upgrades at Surkhet, Jumla, and Tarigaon airports, aiming to enhance connectivity, support tourism, and potentially revive Karnali Airlines.
6. Ministry Allocates Additional NPR 3.84 Billion for Health
The Ministry of Finance allocated NPR 3.84 billion for health programs, including NPR 3 billion for the Health Insurance Board, NPR 600 million for senior citizens’ treatment, and NPR 240 million for Shahid Gangalal National Heart Center. The funds aim to improve healthcare access.
(Source:https://myrepublica.nagariknetwork.com/news/additional-rs-384-billion-for-health-programs-51-52.html )
7. NRB Shortlists Firms for Bank Loan Review
Nepal Rastra Bank (NRB) shortlisted six consulting firms, including Deloitte (Sri Lanka) and KPMG (India), to assess ten commercial banks’ asset quality. The review addresses IMF and World Bank concerns over loan evergreening, aiming to ensure financial stability, transparency, and compliance with international banking standards
8. Empowering Women: Fonepay’s ‘Sakshyam Nari’ Initiative
Fonepay launched the ‘Sakshyam Naari’ campaign with six banks to promote women’s digital financial inclusion. The initiative offers training, incentives, and rewards, including diamond jewelry and shopping vouchers, aiming to bridge the digital gender gap and empower women for financial growth. The campaign runs until March 31, 2025.
(Source: https://www.setopati.com/kinmel/business/352611 )
9. PM Inaugurates Paper Industry in Mahottari
Prime Minister KP Sharma Oli inaugurated the ‘Nepal Pulp & Paper Industries’ in Mahottari, established by IME Group. The industry will produce paper from recycled materials, reducing imports and supporting self-sufficiency. Expected to create 300 jobs, it contributes to economic growth, industrial development, and paper production in Nepal.
(Source:https://www.karobardaily.com/news/281554 )
10. Nepalgunj Customs Collects 72% of Revenue Target
Nepalgunj Customs Office collected 72.29% of its seven-month revenue target, totaling NPR 10.95 billion, an 11% increase from last year. However, it missed monthly targets. Exports rose to NPR 1.51 billion, while imports hit NPR 42.34 billion, leading to a 96.42% trade deficit, with smuggling as a challenge.
(Source:https://www.karobardaily.com/news/281527 )
