Weekly economic updates (7 February 2025–13 February 2025)
- Nepal, India Approve Investment for Cross-Border Power Lines
Nepal and India finalized a joint investment for two 400 kV transmission lines, set for completion by 2030. This supports Nepal’s goal of exporting 16,000 MW by 2035. Feasibility studies for three more cross-border lines were also approved.
2. Banks Keep Interest Rates Steady Amid Low Loan Demand
Eighteen out of 20 commercial banks in Nepal have kept interest rates unchanged for Falgun, with one bank raising rates and another lowering them. Despite ample liquidity, loan demand remains weak, with business loans declining.
3. Women Entrepreneurs Partner with UK Companies to Diversify Supply Chains
From February 10–12 2025, five Nepali women entrepreneurs, led by Federation of Women Entrepreneurs Association of Nepal (FWEAN) President Shova Gyawali, participated in a UK trade mission through the SheTrades Commonwealth program, attending business-to-business meetings to expand market access and connect with British buyers.
4. Development Partners Commit NPR 205.84 Billion in Foreign Assistance
Nepal secured NPR 205.84 billion in foreign aid commitments, but only NPR 49.09 billion was mobilized, far below the NPR 270 billion target, due to project and reimbursement delays.
5. Parliament Approves Bill for Secured Transactions and Personal Lending
On February 10, Nepal’s Parliament passed the Secured Transactions (First Amendment) Bill, 2023, allowing banks to accept movable assets as collateral and establishing a registrar’s office for oversight. The bill aims to improve credit access and safety, pending presidential authentication.
6. Nepal’s IT Exports Reach NPR 28.5 Billion
In the first half of FY 2024/25, Nepal’s IT exports surpassed NPR 28.5 billion, up from NPR 15.8 billion in FY 2023/24. The government targets NPR 3 trillion in exports and 1.5 million jobs in the next decade.
7. Provinces’ Budget Expenditure Remains Low at 16%
In the first half of FY 2024/25(2081/82), Nepal’s provinces spent just 16.18% of their NPR 278.69 billion budget. Madhesh had the lowest at 5.61%, while Koshi led with 24.85%. Experts urge better fiscal management for effective public spending.
8. Nepal Cuts Budget by 9%
Nepal cut its FY 2024/25 (2081/82 BS) budget by 9% to NPR 1.69 trillion after spending only 35.89% in the first half. Finance Minister Paudel blamed poor planning. Priority goes to national pride projects, while new hires and structures are halted. Experts warn this may slow economic growth.
(Source:https://kathmandupost.com/money/2025/02/07/budget-trimmed-by-9-percent-citing-low-spending-capacity )
9. National Pride Projects See Slow Budget Utilization
In FY 2024/25 (2080/81), Nepal allocated NPR 66.75 billion for 19 National Pride Projects, spending only 25.70% by mid-January. Last year, NPR 60.39 billion was allocated, with 89.82% spent, but physical progress was just 57.50%, indicating delays.
10. Improvement in Urban Development Ministry’s Capital Expenditure
The Urban Development Ministry spent 12.22% (NPR 7.79 billion) of its NPR 63.78 billion budget by mid-Magh. Of 1,139 signed contracts, 60% are completed, including 36 admin buildings, 7 health buildings, 6.9 km of roads, and 124 suspension bridges. Several key projects are operational.
(Source:https://www.karobardaily.com/news/279190 )
