Weekly Economic Updates (January 10, 2025 — January 16, 2025)
3 min readJan 17, 2025
- Banks to Accept National ID for Opening Accounts
On 14 January 2025, Nepal Rastra Bank mandated banks to accept National ID for account openings, verify details electronically, and authenticate withdrawals for government payments, streamlining financial access and strengthening identity verification.(Source:https://ekantipur.com/business/2025/01/09/national-identity-card-mandatory-for-opening-new-bank-accounts-from-january-1-29-13.html) - Tenth Committee Created for Nepal Airlines Reform
A parliamentary subcommittee, the tenth reform committee since 2052 BS (1996 AD), has been created to recommend solutions for Nepal Airlines’ NPR 52 billion debt. The committee, led by MP Shishir Khanal, is instructed to report their recommendations within a month.(Source:https://ekantipur.com/business/2025/01/10/tenth-committee-to-reform-corporations-14-46.html) - Agricultural Decline and Economic Shift Witnessed in Koshi Province
Koshi Province’s agricultural land declined by 1.55% in FY 2080/81 BS (2023/24 AD) due to urbanization even though crop production rose by 1.13%. Meanwhile, bank deposits increased by 13.38%, loans by 3.81%, and irrigated land by 1.52%, despite an 8.1% industry employment drop.(Source:https://ekantipur.com/business/2025/01/13/rashtra-bank-study-crop-farming-area-has-decreaed-in-koshi-region-09-53.html) - New Cooperative Regulation Draft Introduced by NRB
On January 15, Nepal Rastra Bank (NRB) introduced new draft guidelines for savings and credit cooperatives. In it, NRB proposed a 6% interest spread, 90% deposit-to-loan cap, and collateral-free loan limits along with key measures such as transparency, liquid asset requirements, and restricted dividends. Feedback for the guidelines is open until mid-February.
(Source:https://thehimalayantimes.com/nepal/police-raise-revenue-over-rs-224-billion) - Digital Payments Soar in 2024
Digital payments in Nepal are surging, driven by QR codes, e-wallets, and platforms like ConnectIPS. In 2024, QR payments grew by 103.66%, while e-wallet users rose to 23.46 million, reflecting the transforming payment preferences nationwide.(Source:https://kathmandupost.com/money/2025/01/14/digital-payments-surge-as-nepalis-shift-away-from-atms-and-cheques ) - NRB Withdraws NPR 40 Billion to Absorb Liquidity
Nepal Rastra Bank (NRB) withdrew NPR 40 billion on January 15, using a 21-day deposit collection tool to manage excess liquidity. Banks could bid online with a minimum of NPR 10 million. Class ‘A’, ‘B’, and ‘ C’ institutions were eligible to participate.(Source:https://ekantipur.com/business/2025/01/15/rashtra-bank-is-withdrawing-40-billion-today-after-there-is-a-lot-of-money-in-the-market-36-12.html) - 84 Companies Await IPO Approval from Nepal Stock Exchange
84 companies are seeking approval from the Securities Board of Nepal (SEBON) to issue Initial Public Offerings (IPOs) worth NPR 51.51 billion. Among them, 43 hydropower companies aim to raise NPR 18.4 billion, increasing the number of listed hydropower firms to 133 and boosting market diversity. (Source:https://www.setopati.com/kinmel/banking/348475) - Tibet Border Reopening Boosts Nepal’s Carpet Exports
The Tiptala-Bhanjyang border reopening with Tibet has revitalized Nepal’s carpet trade, boosting demand and prices. Despite an 8.12% export decline last year, carpets worth NPR 4.96 billion were exported in five months.(Source:https://kathmandupost.com/money/2025/01/16/tibet-border-reopened-women-in-taplejung-dusted-off-their-looms-and-got-back-to-weaving) - NPR 5 Billion FDI Approved Last Month
In Poush 2081 (December/January 2024/25), Foreign Direct Investment (FDI) worth NPR 4.99 billion was approved for 35 projects, while the first six months of FY 2080/81 BS (2024/25 AD) saw NPR 25.27 billion commitments across 354 projects, with the tourism sector leading in investments, followed by the manufacturing, agriculture, infrastructure, and IT sectors. (Source:https://www.setopati.com/kinmel/economy/348564) - Revenue Collection Drops at Dry Port Customs
The Sirsiya Dry Port Customs Office collected NPR 23.34 billion in six months, achieving 38.87% of its target, with a revenue drop of NPR 1.45 billion compared to last year’s NPR 24.79 billion.(Source:https://ekantipur.com/business/2025/01/16/dry-port-customs-revenue-collection-declined-during-six-months-58-10.html)