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Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains
Top

4 min read

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains Nepal’s development trajectory, once propped up by billions in foreign assistance, now teeters on the edge. A sweeping wave of budget cuts and project suspensions by key international development partners has exposed the country’s chronic over-reliance on external support — and an alarming lack of contingency planning. Among the most severe setbacks has come from the United States Agency for International Development (USAID), long considered a pillar of foreign development efforts in Nepal. From education and healthcare to agriculture, governance, and climate resilience, USAID-funded projects have reached millions. Their sudden freeze — involving nearly Rs. 15 billion worth of programs — has sent shockwaves through every layer of Nepal’s social infrastructure.

Dipesh Ghimire

·

23 May, 2025

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed
Top

4 min read

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed As the countdown to Nepal's federal budget announcement for the fiscal year 2082/83 nears its final 7 days, the government finds itself grappling with a perfect storm of fiscal pressure, project overload, and systemic inefficiencies. With the National Resource Estimate Committee capping the spending limit at around NPR 1.9 trillion, the government is facing an uphill battle to fund even its prioritized development projects.

Dipesh Ghimire

·

22 May, 2025

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Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains
Top

4 min read

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains Nepal’s development trajectory, once propped up by billions in foreign assistance, now teeters on the edge. A sweeping wave of budget cuts and project suspensions by key international development partners has exposed the country’s chronic over-reliance on external support — and an alarming lack of contingency planning. Among the most severe setbacks has come from the United States Agency for International Development (USAID), long considered a pillar of foreign development efforts in Nepal. From education and healthcare to agriculture, governance, and climate resilience, USAID-funded projects have reached millions. Their sudden freeze — involving nearly Rs. 15 billion worth of programs — has sent shockwaves through every layer of Nepal’s social infrastructure.

Dipesh Ghimire

·

23 May, 2025

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed
Top

4 min read

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed As the countdown to Nepal's federal budget announcement for the fiscal year 2082/83 nears its final 7 days, the government finds itself grappling with a perfect storm of fiscal pressure, project overload, and systemic inefficiencies. With the National Resource Estimate Committee capping the spending limit at around NPR 1.9 trillion, the government is facing an uphill battle to fund even its prioritized development projects.

Dipesh Ghimire

·

22 May, 2025

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges
Top

4 min read

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges

r. Bishwanath Paudel Nepal Rastra Bank Governor Appointment The Government of Nepal appointed Dr. Bishwanath Paudel as the 18th Governor of Nepal Rastra Bank, filling a leadership vacancy after over one and a half months. Dr. Paudel is an experienced economist with a Ph.D. in Economics from the University of California and has served as Vice-Chairman of Nepal’s National Planning Commission. He has international exposure from roles at the World Bank and International Labour Organization. His appointment followed political controversy but was cleared by the Supreme Court. The financial markets responded positively, with the NEPSE index rising nearly 50 points. Key challenges ahead include: Managing high liquidity but low credit growth in Nepal’s banking sector Tackling rising Non-Performing Loans (NPLs) Controlling inflation and maintaining price stability Strengthening banking regulations and governance Promoting financial inclusion and consumer-friendly banking services Dr. Paudel’s leadership is expected to bring monetary policy reforms, address banking sector weaknesses, and improve financial stability to support Nepal’s economic growth. Suggested English Search Keywords: “Bishwanath Paudel Nepal Rastra Bank Governor” “Nepal central bank new governor 2025” “Nepal Rastra Bank monetary policy reforms” “Nepal banking sector liquidity issues” “Non-performing loans Nepal banking” “Nepal financial market reaction 2025” “Nepal economic stability and inflation control” “Financial inclusion in Nepal”

Dipesh Ghimire

·

20 May, 2025

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform
Top

3 min read

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform Nepal’s economy today stands at a delicate crossroads, entangled in a web of internal inefficiencies and external shocks. The aftermath of the pandemic, coupled with weak financial governance, skewed credit flows, and underperforming institutions, has left the economic foundation shaky and uneven. One of the most critical threats has emerged from poor oversight in key financial sectors such as microfinance and cooperatives. Their growing instability is no longer isolated — it’s rippling through the wider financial system, threatening long-term macroeconomic health.

Dipesh Ghimire

·

19 May, 2025

The Appointment of the Central Bank Governor: Challenges and Expectations
Top

3 min read

The Appointment of the Central Bank Governor: Challenges and Expectations

The Appointment of the Central Bank Governor: Challenges and Expectations Following the expiration of Governor Maha Prasad Adhikari’s term on Chaitra 6, Nepal Rastra Bank remained without a formal Governor for an extended period—a delay that not only signaled institutional paralysis but also breached the provisions outlined in the Nepal Rastra Bank Act, 2058. During this interim period, a Deputy Governor was temporarily tasked with leading the institution. Legally, the Governor is to be appointed by the Council of Ministers for a five-year term, based on recommendations from a selection committee established under the Act. The central bank is a cornerstone of economic governance, and its leadership demands deep expertise in macroeconomics and monetary policy. It is generally expected that the Governor should be a seasoned economist, capable of crafting and steering policy to maintain price stability and manage inflation. Globally, many central banks have moved toward inflation targeting, setting clear benchmarks to maintain economic balance. Nepal too must embrace this forward-looking approach. A prominent case is India’s RBI Governor Shaktikanta Das, who was ranked among the top central bankers worldwide by Global Finance magazine. His recognition was based on his success in managing inflation, ensuring currency stability, and guiding interest rate policies—areas in which any central bank leader must excel.

Dipesh Ghimire

·

19 May, 2025

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion
Top

3 min read

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion In recent years, Nepal's banking and financial institutions have seen a significant rise in non-banking assets, which have now reached a staggering NPR 45 billion. This increase has been driven by an escalating number of assets being auctioned off as a result of defaulted loans, indicating a growing problem of non-performing loans (NPLs) within the sector. According to the Nepal Rastra Bank (NRB), as of the end of the fiscal year 081/82 (mid-April 2024), non-banking assets held by banks and financial institutions amounted to NPR 44.8 billion. The primary reason behind this increase is the surge in bad loans, where borrowers are unable to repay their debts, leading to the auction of collateral assets such as land, buildings, and vehicles, which are often held as security for loans.

Dipesh Ghimire

·

12 May, 2025

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified
Top

2 min read

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified The Government of Nepal has amended the Banking Offenses and Punishment Act, 2064 (2008 AD), bringing sweeping changes to how cheque bounce cases are handled—ranging from the legal process, investigation mechanism, limitation periods, and penal provisions. 1. Police-Only Complaint System Introduced As per the revised law published in the Nepal Gazette on Wednesday and now in effect, cheque bounce complaints must first go through police investigation. Previously, aggrieved parties could directly file cases in court, bypassing law enforcement. The amendment removes that option. Additionally, the Negotiable Instruments Act, 2034, particularly Section 107(A), which previously governed cheque dishonor penalties, has now been repealed to avoid overlapping jurisdiction. Now, the Banking Offense Act will serve as the sole applicable law for such offenses.

Dipesh Ghimire

·

9 May, 2025

Nepal’s Economic Journey: From Struggles to Transformative Growth
Top

4 min read

Nepal’s Economic Journey: From Struggles to Transformative Growth

Nepal’s Economic Journey: From Struggles to Transformative Growth For over three and a half decades, Nepal’s economy has faced numerous challenges, deeply influenced by political turmoil, natural disasters, and external blockades. After the restoration of democracy in the early 1990s, the country underwent a series of political upheavals that included the introduction of multi-party democracy, a decade-long Maoist insurgency, the monarchy, and finally, the establishment of a republic. These political changes disrupted the economy, preventing it from finding a steady rhythm and making significant progress.

Dipesh Ghimire

·

7 May, 2025

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency
Top

3 min read

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency Over the past few years, Nepal has witnessed a remarkable transformation in its energy infrastructure. Once plagued by chronic load-shedding, the country now produces surplus electricity during the monsoon season—an achievement primarily credited to the growth of hydropower production. Landmark projects like the Upper Tamakoshi have become national symbols of pride. However, beneath the surface of this apparent progress lies a deeper, unresolved conflict. While nearly all electricity generated in Nepal is renewable, over 90% of the country’s total energy consumption still comes from imported fossil fuels and traditional biomass. This contradiction between production and consumption exposes a fundamental flaw in Nepal’s energy transformation strategy.

Dipesh Ghimire

·

4 May, 2025

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals
Top

3 min read

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals Despite bold slogans like "Prosperous Nepal, Happy Nepali" and ambitious long-term goals, Nepal's economic indicators paint a worrying picture. According to the latest Economic Survey 2080/81 and periodic plan evaluations, the country is falling significantly short in income generation, domestic savings, and capital investment. These weaknesses could derail Nepal's aspirations of reaching middle-income status by 2030.

Dipesh Ghimire

·

4 May, 2025

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Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains
Top

4 min read

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains Nepal’s development trajectory, once propped up by billions in foreign assistance, now teeters on the edge. A sweeping wave of budget cuts and project suspensions by key international development partners has exposed the country’s chronic over-reliance on external support — and an alarming lack of contingency planning. Among the most severe setbacks has come from the United States Agency for International Development (USAID), long considered a pillar of foreign development efforts in Nepal. From education and healthcare to agriculture, governance, and climate resilience, USAID-funded projects have reached millions. Their sudden freeze — involving nearly Rs. 15 billion worth of programs — has sent shockwaves through every layer of Nepal’s social infrastructure.

Dipesh Ghimire

·

23 May, 2025

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed
Top

4 min read

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed As the countdown to Nepal's federal budget announcement for the fiscal year 2082/83 nears its final 7 days, the government finds itself grappling with a perfect storm of fiscal pressure, project overload, and systemic inefficiencies. With the National Resource Estimate Committee capping the spending limit at around NPR 1.9 trillion, the government is facing an uphill battle to fund even its prioritized development projects.

Dipesh Ghimire

·

22 May, 2025

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges
Top

4 min read

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges

r. Bishwanath Paudel Nepal Rastra Bank Governor Appointment The Government of Nepal appointed Dr. Bishwanath Paudel as the 18th Governor of Nepal Rastra Bank, filling a leadership vacancy after over one and a half months. Dr. Paudel is an experienced economist with a Ph.D. in Economics from the University of California and has served as Vice-Chairman of Nepal’s National Planning Commission. He has international exposure from roles at the World Bank and International Labour Organization. His appointment followed political controversy but was cleared by the Supreme Court. The financial markets responded positively, with the NEPSE index rising nearly 50 points. Key challenges ahead include: Managing high liquidity but low credit growth in Nepal’s banking sector Tackling rising Non-Performing Loans (NPLs) Controlling inflation and maintaining price stability Strengthening banking regulations and governance Promoting financial inclusion and consumer-friendly banking services Dr. Paudel’s leadership is expected to bring monetary policy reforms, address banking sector weaknesses, and improve financial stability to support Nepal’s economic growth. Suggested English Search Keywords: “Bishwanath Paudel Nepal Rastra Bank Governor” “Nepal central bank new governor 2025” “Nepal Rastra Bank monetary policy reforms” “Nepal banking sector liquidity issues” “Non-performing loans Nepal banking” “Nepal financial market reaction 2025” “Nepal economic stability and inflation control” “Financial inclusion in Nepal”

Dipesh Ghimire

·

20 May, 2025

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform
Top

3 min read

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform Nepal’s economy today stands at a delicate crossroads, entangled in a web of internal inefficiencies and external shocks. The aftermath of the pandemic, coupled with weak financial governance, skewed credit flows, and underperforming institutions, has left the economic foundation shaky and uneven. One of the most critical threats has emerged from poor oversight in key financial sectors such as microfinance and cooperatives. Their growing instability is no longer isolated — it’s rippling through the wider financial system, threatening long-term macroeconomic health.

Dipesh Ghimire

·

19 May, 2025

The Appointment of the Central Bank Governor: Challenges and Expectations
Top

3 min read

The Appointment of the Central Bank Governor: Challenges and Expectations

The Appointment of the Central Bank Governor: Challenges and Expectations Following the expiration of Governor Maha Prasad Adhikari’s term on Chaitra 6, Nepal Rastra Bank remained without a formal Governor for an extended period—a delay that not only signaled institutional paralysis but also breached the provisions outlined in the Nepal Rastra Bank Act, 2058. During this interim period, a Deputy Governor was temporarily tasked with leading the institution. Legally, the Governor is to be appointed by the Council of Ministers for a five-year term, based on recommendations from a selection committee established under the Act. The central bank is a cornerstone of economic governance, and its leadership demands deep expertise in macroeconomics and monetary policy. It is generally expected that the Governor should be a seasoned economist, capable of crafting and steering policy to maintain price stability and manage inflation. Globally, many central banks have moved toward inflation targeting, setting clear benchmarks to maintain economic balance. Nepal too must embrace this forward-looking approach. A prominent case is India’s RBI Governor Shaktikanta Das, who was ranked among the top central bankers worldwide by Global Finance magazine. His recognition was based on his success in managing inflation, ensuring currency stability, and guiding interest rate policies—areas in which any central bank leader must excel.

Dipesh Ghimire

·

19 May, 2025

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion
Top

3 min read

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion In recent years, Nepal's banking and financial institutions have seen a significant rise in non-banking assets, which have now reached a staggering NPR 45 billion. This increase has been driven by an escalating number of assets being auctioned off as a result of defaulted loans, indicating a growing problem of non-performing loans (NPLs) within the sector. According to the Nepal Rastra Bank (NRB), as of the end of the fiscal year 081/82 (mid-April 2024), non-banking assets held by banks and financial institutions amounted to NPR 44.8 billion. The primary reason behind this increase is the surge in bad loans, where borrowers are unable to repay their debts, leading to the auction of collateral assets such as land, buildings, and vehicles, which are often held as security for loans.

Dipesh Ghimire

·

12 May, 2025

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified
Top

2 min read

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified The Government of Nepal has amended the Banking Offenses and Punishment Act, 2064 (2008 AD), bringing sweeping changes to how cheque bounce cases are handled—ranging from the legal process, investigation mechanism, limitation periods, and penal provisions. 1. Police-Only Complaint System Introduced As per the revised law published in the Nepal Gazette on Wednesday and now in effect, cheque bounce complaints must first go through police investigation. Previously, aggrieved parties could directly file cases in court, bypassing law enforcement. The amendment removes that option. Additionally, the Negotiable Instruments Act, 2034, particularly Section 107(A), which previously governed cheque dishonor penalties, has now been repealed to avoid overlapping jurisdiction. Now, the Banking Offense Act will serve as the sole applicable law for such offenses.

Dipesh Ghimire

·

9 May, 2025

Nepal’s Economic Journey: From Struggles to Transformative Growth
Top

4 min read

Nepal’s Economic Journey: From Struggles to Transformative Growth

Nepal’s Economic Journey: From Struggles to Transformative Growth For over three and a half decades, Nepal’s economy has faced numerous challenges, deeply influenced by political turmoil, natural disasters, and external blockades. After the restoration of democracy in the early 1990s, the country underwent a series of political upheavals that included the introduction of multi-party democracy, a decade-long Maoist insurgency, the monarchy, and finally, the establishment of a republic. These political changes disrupted the economy, preventing it from finding a steady rhythm and making significant progress.

Dipesh Ghimire

·

7 May, 2025

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency
Top

3 min read

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency Over the past few years, Nepal has witnessed a remarkable transformation in its energy infrastructure. Once plagued by chronic load-shedding, the country now produces surplus electricity during the monsoon season—an achievement primarily credited to the growth of hydropower production. Landmark projects like the Upper Tamakoshi have become national symbols of pride. However, beneath the surface of this apparent progress lies a deeper, unresolved conflict. While nearly all electricity generated in Nepal is renewable, over 90% of the country’s total energy consumption still comes from imported fossil fuels and traditional biomass. This contradiction between production and consumption exposes a fundamental flaw in Nepal’s energy transformation strategy.

Dipesh Ghimire

·

4 May, 2025

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals
Top

3 min read

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals Despite bold slogans like "Prosperous Nepal, Happy Nepali" and ambitious long-term goals, Nepal's economic indicators paint a worrying picture. According to the latest Economic Survey 2080/81 and periodic plan evaluations, the country is falling significantly short in income generation, domestic savings, and capital investment. These weaknesses could derail Nepal's aspirations of reaching middle-income status by 2030.

Dipesh Ghimire

·

4 May, 2025

More Blogs

Explore more blogs

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains

Dipesh Ghimire

·

23 May, 2025

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains

Nepal at the Crossroads as Major Foreign Aid Cuts Jeopardize Development Gains Nepal’s development trajectory, once propped up by billions in foreign assistance, now teeters on the edge. A sweeping wave of budget cuts and project suspensions by key international development partners has exposed the country’s chronic over-reliance on external support — and an alarming lack of contingency planning. Among the most severe setbacks has come from the United States Agency for International Development (USAID), long considered a pillar of foreign development efforts in Nepal. From education and healthcare to agriculture, governance, and climate resilience, USAID-funded projects have reached millions. Their sudden freeze — involving nearly Rs. 15 billion worth of programs — has sent shockwaves through every layer of Nepal’s social infrastructure.

Top

4 min read

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed

Dipesh Ghimire

·

22 May, 2025

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed

Government Faces Severe Budgeting Crisis Ahead of FY 2082/83: Thousands of Projects Likely to Be Axed As the countdown to Nepal's federal budget announcement for the fiscal year 2082/83 nears its final 7 days, the government finds itself grappling with a perfect storm of fiscal pressure, project overload, and systemic inefficiencies. With the National Resource Estimate Committee capping the spending limit at around NPR 1.9 trillion, the government is facing an uphill battle to fund even its prioritized development projects.

Top

4 min read

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges

Dipesh Ghimire

·

20 May, 2025

Nepal Appoints Dr. Bishwanath Paudel as New Nepal Rastra Bank Governor Amid Crucial Economic Challenges

r. Bishwanath Paudel Nepal Rastra Bank Governor Appointment The Government of Nepal appointed Dr. Bishwanath Paudel as the 18th Governor of Nepal Rastra Bank, filling a leadership vacancy after over one and a half months. Dr. Paudel is an experienced economist with a Ph.D. in Economics from the University of California and has served as Vice-Chairman of Nepal’s National Planning Commission. He has international exposure from roles at the World Bank and International Labour Organization. His appointment followed political controversy but was cleared by the Supreme Court. The financial markets responded positively, with the NEPSE index rising nearly 50 points. Key challenges ahead include: Managing high liquidity but low credit growth in Nepal’s banking sector Tackling rising Non-Performing Loans (NPLs) Controlling inflation and maintaining price stability Strengthening banking regulations and governance Promoting financial inclusion and consumer-friendly banking services Dr. Paudel’s leadership is expected to bring monetary policy reforms, address banking sector weaknesses, and improve financial stability to support Nepal’s economic growth. Suggested English Search Keywords: “Bishwanath Paudel Nepal Rastra Bank Governor” “Nepal central bank new governor 2025” “Nepal Rastra Bank monetary policy reforms” “Nepal banking sector liquidity issues” “Non-performing loans Nepal banking” “Nepal financial market reaction 2025” “Nepal economic stability and inflation control” “Financial inclusion in Nepal”

Top

4 min read

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform

Dipesh Ghimire

·

19 May, 2025

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform

Navigating Nepal's Economic Turmoil: A Call for Strategic Reform Nepal’s economy today stands at a delicate crossroads, entangled in a web of internal inefficiencies and external shocks. The aftermath of the pandemic, coupled with weak financial governance, skewed credit flows, and underperforming institutions, has left the economic foundation shaky and uneven. One of the most critical threats has emerged from poor oversight in key financial sectors such as microfinance and cooperatives. Their growing instability is no longer isolated — it’s rippling through the wider financial system, threatening long-term macroeconomic health.

Top

3 min read

The Appointment of the Central Bank Governor: Challenges and Expectations

Dipesh Ghimire

·

19 May, 2025

The Appointment of the Central Bank Governor: Challenges and Expectations

The Appointment of the Central Bank Governor: Challenges and Expectations Following the expiration of Governor Maha Prasad Adhikari’s term on Chaitra 6, Nepal Rastra Bank remained without a formal Governor for an extended period—a delay that not only signaled institutional paralysis but also breached the provisions outlined in the Nepal Rastra Bank Act, 2058. During this interim period, a Deputy Governor was temporarily tasked with leading the institution. Legally, the Governor is to be appointed by the Council of Ministers for a five-year term, based on recommendations from a selection committee established under the Act. The central bank is a cornerstone of economic governance, and its leadership demands deep expertise in macroeconomics and monetary policy. It is generally expected that the Governor should be a seasoned economist, capable of crafting and steering policy to maintain price stability and manage inflation. Globally, many central banks have moved toward inflation targeting, setting clear benchmarks to maintain economic balance. Nepal too must embrace this forward-looking approach. A prominent case is India’s RBI Governor Shaktikanta Das, who was ranked among the top central bankers worldwide by Global Finance magazine. His recognition was based on his success in managing inflation, ensuring currency stability, and guiding interest rate policies—areas in which any central bank leader must excel.

Top

3 min read

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion

Dipesh Ghimire

·

12 May, 2025

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion

Non-Banking Assets of Banks and Financial Institutions in Nepal Soar to NPR 45 Billion In recent years, Nepal's banking and financial institutions have seen a significant rise in non-banking assets, which have now reached a staggering NPR 45 billion. This increase has been driven by an escalating number of assets being auctioned off as a result of defaulted loans, indicating a growing problem of non-performing loans (NPLs) within the sector. According to the Nepal Rastra Bank (NRB), as of the end of the fiscal year 081/82 (mid-April 2024), non-banking assets held by banks and financial institutions amounted to NPR 44.8 billion. The primary reason behind this increase is the surge in bad loans, where borrowers are unable to repay their debts, leading to the auction of collateral assets such as land, buildings, and vehicles, which are often held as security for loans.

Top

3 min read

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified

Dipesh Ghimire

·

9 May, 2025

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified

Nepal Enacts New Law on Cheque Bounce Cases: Police Investigation Made Mandatory, Punishment Reclassified The Government of Nepal has amended the Banking Offenses and Punishment Act, 2064 (2008 AD), bringing sweeping changes to how cheque bounce cases are handled—ranging from the legal process, investigation mechanism, limitation periods, and penal provisions. 1. Police-Only Complaint System Introduced As per the revised law published in the Nepal Gazette on Wednesday and now in effect, cheque bounce complaints must first go through police investigation. Previously, aggrieved parties could directly file cases in court, bypassing law enforcement. The amendment removes that option. Additionally, the Negotiable Instruments Act, 2034, particularly Section 107(A), which previously governed cheque dishonor penalties, has now been repealed to avoid overlapping jurisdiction. Now, the Banking Offense Act will serve as the sole applicable law for such offenses.

Top

2 min read

Nepal’s Economic Journey: From Struggles to Transformative Growth

Dipesh Ghimire

·

7 May, 2025

Nepal’s Economic Journey: From Struggles to Transformative Growth

Nepal’s Economic Journey: From Struggles to Transformative Growth For over three and a half decades, Nepal’s economy has faced numerous challenges, deeply influenced by political turmoil, natural disasters, and external blockades. After the restoration of democracy in the early 1990s, the country underwent a series of political upheavals that included the introduction of multi-party democracy, a decade-long Maoist insurgency, the monarchy, and finally, the establishment of a republic. These political changes disrupted the economy, preventing it from finding a steady rhythm and making significant progress.

Top

4 min read

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency

Dipesh Ghimire

·

4 May, 2025

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency

Nepal's Energy Paradox: Between Hydropower Progress and Structural Dependency Over the past few years, Nepal has witnessed a remarkable transformation in its energy infrastructure. Once plagued by chronic load-shedding, the country now produces surplus electricity during the monsoon season—an achievement primarily credited to the growth of hydropower production. Landmark projects like the Upper Tamakoshi have become national symbols of pride. However, beneath the surface of this apparent progress lies a deeper, unresolved conflict. While nearly all electricity generated in Nepal is renewable, over 90% of the country’s total energy consumption still comes from imported fossil fuels and traditional biomass. This contradiction between production and consumption exposes a fundamental flaw in Nepal’s energy transformation strategy.

Top

3 min read

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals

Dipesh Ghimire

·

4 May, 2025

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals

Nepal’s Economy Faces Deep Trouble: Low Growth, Weak Savings, and Investment Gap Threaten Development Goals Despite bold slogans like "Prosperous Nepal, Happy Nepali" and ambitious long-term goals, Nepal's economic indicators paint a worrying picture. According to the latest Economic Survey 2080/81 and periodic plan evaluations, the country is falling significantly short in income generation, domestic savings, and capital investment. These weaknesses could derail Nepal's aspirations of reaching middle-income status by 2030.

Top

3 min read