Weekly Economic Updates (31 January 2025–06 February2025)
3 min readFeb 7, 2025
- NEA Begins Underground Power Supply in Pokhara
Nepal Electricity Authority’s underground system in Pokhara, from Kundahar to Seti River Bridge, benefits 300 customers, enhancing aesthetics, reliability, and safety. Supported by Asian Development Bank, it integrates optical fiber and aims for completion by mid-July 2025.
(Source:https://myrepublica.nagariknetwork.com/news/nea-starts-underground-electricity-supply-in-pokhara-91-32.html ) - Tanahun Hydropower: Compensation Provided to Affected Families
Compensation was distributed to 101 of 118 affected families in Rishing and Beteni for the 140 MW Tanahun Hydropower Project. Amounts range from NPR 10,000 to 300,000. Meanwhile, dam drilling, concreting, and tower crane installation are ongoing.
(Source:https://myrepublica.nagariknetwork.com/news/tanahun-hydropower-affected-get-compensation-71-18.html ) - India Supports Upper Arun; World Bank Invests
India backs Nepal’s 1,063 MW Upper Arun project, with the World Bank leading investment. Estimated at NPR 285 billion, it required regional approval. Delayed by India’s elections, recent talks resolved concerns over Arun IV. Construction begins in 2026, targeting completion by 2032.
(Source:https://www.onlinekhabar.com/2025/01/1614583/india-positive-on-1063-mw-upper-arun-world-bank-ready-to-invest ) - Nepal Sets Ambitious IT Export Growth Target
Nepal declared an IT decade, targeting NPR 3 trillion in exports and 1.5 million jobs by FY 2024/25 (2081/82 BS). With USD 1 billion in annual exports, plans include IT parks, digital governance, and revising the Digital Nepal Framework. The informal sector is expanding, employing 80,000 people.
(Source:https://myrepublica.nagariknetwork.com/news/govt-sets-ambitious-it-exports-target-17-70.html ) - Dang Collects NPR 76 Million from Forest Products
Dang earned NPR 76.2 million from forest products in six months, with NPR 18.1 million from community forests. Sustainable management is key, and additional revenue from unmanaged wood and private forests supports provincial and federal funds.
(Source:https://www.karobardaily.com/news/278923 ) - Nepal’s Soyabean Oil Exports Surge Amid Tariff Manipulation Concerns
Nepal’s soyabean oil exports to India surged 45-fold in the first half of FY 2024/25, benefiting from zero-duty exports under the South Asian Free Trade Area (SAFTA). Experts warn this tariff-driven trade is unsustainable and may cause economic instability.
(Source:https://kathmandupost.com/money/2025/02/06/an-astronomical-jump-in-nepal-s-soyabean-oil-exports-baffles-experts ) - Hydropower Shares Lead Record Market Turnover in Nepal
In the first half of FY 2024/25 (2081/82 BS), Nepal’s stock market surged to over NPR 1.109 trillion in transactions, with hydropower shares accounting for 32.5%. Flexible monetary policy, margin lending, and government focus on hydropower development boosted investor interest.
(Source:https://myrepublica.nagariknetwork.com/news/hydropower-shares-record-325-percent-turnover-in-first-half-of-current-fy-16-30.html ) - Nepal Ends Solo Climbs on Everest, 8000ers
Nepal has banned solo expeditions on Everest and other 8,000-metre peaks, requiring guides. New rules raise climbing fees, wages for staff, and enforce stricter waste management and certification, marking a significant shift in mountaineering policies.
(Source:https://kathmandupost.com/money/2025/02/05/nepal-bans-solo-expeditions-on-everest-and-other-8000ers ) - Banks’ Deposits in Central Bank Declining
Banks and financial institutions are reducing funds in Nepal Rastra Bank (NRB), signaling increased loan disbursement. NRB deposits, which peaked at NPR 4 trillion, dropped to NPR 269 billion by Magh 22, 2081. Banks must still maintain 20% of assets as liquid reserves.
(Source:https://www.setopati.com/kinmel/banking/350244 ) - RECCO Expands SAR Helicopter Network to Nepal
RECCO has deployed its Search and Rescue (SAR) Helicopter Detector in Kathmandu, enhancing rescue operations. Trained pilots can scan one square kilometre in six minutes. From 2024, climbers above 6,000 meters must carry RECCO reflectors to meet new safety regulations.
(Source:https://thehimalayantimes.com/business/recco-expands-sar-helicopter-detector-network-to-nepal )
