Weekly Economic Updates (7th March 2025 to 13th March 2025)
- NEA Inaugurates 33 kV Line in Kapilvastu
Nepal Electricity Authority MD Kulman Ghising inaugurated the 33 kV double circuit transmission line from Motipur to Taulihawa, ensuring reliable electricity in Kapilvastu. He praised government and security support. Officials emphasized policy adjustments, honoring key contributors.
2. Nepal’s Commercial Banks See Modest Profit Growth
Nepal’s commercial banks’ profits grew 1.6% to NPR 36.06 billion in seven months, despite rising non-performing loans (6.96%) and economic slowdown. Nine banks saw gains, 11 declined, impacted by stricter audits and provisioning policies.
3. Nepal’s Exports Surge 46.5%, But High-Value Goods Show Minimal Growth
Nepal’s exports surged 46.5% to NPR 127.2 billion, mainly due to a 5,886% rise in soybean oil. NTIS products grew only 3.75%. Honey exports soared 497.83%, while traditional goods like iron, steel, and garments declined.
4. eSewa & Himalayan Bank Partner for Digital Payments
eSewa and Himalayan Bank partnered to enable seamless fund transfers between eSewa wallets and bank accounts via the HI-MB app. This collaboration enhances digital finance, with eSewa now partnering with 49 financial institutions in Nepal.
(Source:https://www.setopati.com/kinmel/banking/353016 )
5. Nepali Students Spend NPR 64.15 Billion on Education Abroad
Nepali students remitted NPR 64.15 billion abroad for education in seven months. Total travel expenses rose 10.6% to NPR 115.88 billion. The service income deficit widened to NPR 50.22 billion, while tourism income grew 7.7%.
6. Consumer Price Inflation Moderates to 4.16%
Nepal’s inflation fell to 4.16% by mid-February 2025 from 5.01% last year, driven by stable food and non-food prices. Koshi had the highest inflation (6.15%), Bagmati the lowest (3.35%). The government targets under 5.5% inflation.
7. Nepal Receives NPR 900 Billion in Remittances
Nepal received NPR 900.58 billion in remittances in seven months of FY 2024/25, up 7.3%. Despite rising foreign employment, growth slowed. The highest inflow was NPR 144 billion from mid-September to mid-October.
8. Government Blacklists 10 Construction Companies
The Public Procurement Monitoring Office (PPMO) blacklisted 10 construction companies for failing contract obligations. Tara Laxmi Nirman Sewa and Mamata Manju Construction received 1.5-year bans, while others, including Sanam Nirman Sewa and Indrayani Builders, were banned for one year.
(Source:https://myrepublica.nagariknetwork.com/news/ppmo-blacklists-10-construction-companies-84-75.html)
9. Nepal’s Foreign Exchange Reserves Reach Record High
Nepal’s foreign exchange reserves hit a record high, growing by 16.1% to NPR 2,369 billion in the first seven months of the fiscal year. The Balance of Payments surplus is NPR 284.41 billion, with a current account surplus of NPR 166.8 billion.
10. US Cancels Aid Projects in Nepal Worth NPR 46.12 Billion
The US halted 34 USAID projects in Nepal, worth NPR 46.12 billion, impacting sectors like agriculture and health. This also affects the USD 500 million Millennium Challenge Corporation Nepal Compact due to a foreign aid review.
