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Read our latest blogs to get the latest updates and news.

Budget

2 min read

Budget Formulation Process Begins with Focus on Project Quality and Coordination

Budget Formulation Process Begins with Focus on Project Quality and Coordination The budget preparation process for Nepal’s upcoming fiscal year 2026/27 (2083/84) has officially begun, with the National Planning Commission (NPC) initiating consultations with provincial and local governments. By calling for project proposals under federal matching and special grant schemes, the commission has signaled an early start aimed at improving coordination, planning discipline, and the quality of development spending.

Dipesh Ghimire

17 Dec, 2025

Government Moves to End Illegal Transit Charges, Aiming to Protect Farmers and Market Stability

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2 min read

Government Moves to End Illegal Transit Charges, Aiming to Protect Farmers and Market Stability

Government Moves to End Illegal Transit Charges, Aiming to Protect Farmers and Market Stability The Ministry of Finance has stepped in to curb the practice of levying taxes and fees on goods transported solely for transit, signaling growing concern over the economic burden placed on farmers and traders by some local governments. Through formal circulars issued to provincial and local authorities, the ministry has directed that no charges be imposed on goods merely passing through a jurisdiction, reinforcing constitutional and legal boundaries on taxation powers.

Dipesh Ghimire

17 Dec, 2025

Latest Blogs

Read our latest blogs to get the latest updates & news.

Budget

2 min read

Budget Formulation Process Begins with Focus on Project Quality and Coordination

Dipesh Ghimire

17 Dec, 2025

Top

2 min read

Government Moves to End Illegal Transit Charges, Aiming to Protect Farmers and Market Stability

Dipesh Ghimire

17 Dec, 2025

Rising FDI Commitments Signal Interest, but Structural Gaps Persist in Nepal’s Economy

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3 min read

Rising FDI Commitments Signal Interest, but Structural Gaps Persist in Nepal’s Economy

Rising FDI Commitments Signal Interest, but Structural Gaps Persist in Nepal’s Economy Nepal has witnessed a notable rise in foreign direct investment (FDI) commitments during the first five months of the current fiscal year, reflecting renewed international interest in the country’s economy. According to data from the Department of Industry, investment commitments worth over Rs 38.59 billion were approved between mid-July and mid-December. While the figures indicate growing confidence among foreign investors, a closer look reveals structural imbalances that continue to limit the long-term economic impact of these inflows.

Dipesh Ghimire

17 Dec, 2025

How Exchange Rates Are Determined in a World Without Gold-Backed Currencies

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2 min read

How Exchange Rates Are Determined in a World Without Gold-Backed Currencies

How Exchange Rates Are Determined in a World Without Gold-Backed Currencies In today’s global economy, most national currencies are no longer directly linked to physical assets such as gold or silver. Yet, despite the absence of a tangible backing, some currencies command stronger value than others in the international market. This raises a fundamental economic question: how are exchange rates determined in a modern monetary system? Economists explain that currency value is shaped not by metal reserves, but by a complex interaction of economic strength, policy decisions, and market forces.

Dipesh Ghimire

17 Dec, 2025

Foreign Exchange Reserves

2 min read

Foreign Exchange Reserves Climb to Record High, Offering Stability but Raising Structural Questions

Foreign Exchange Reserves Climb to Record High, Offering Stability but Raising Structural Questions Nepal’s foreign exchange reserves have climbed to a historic high in the first four months of fiscal year 2082/83 (up to mid-November 2025), significantly strengthening the country’s external buffer at a time of global uncertainty. According to data released by Nepal Rastra Bank, total reserves increased by 14.1 percent to Rs 3,055.52 billion, up from Rs 2,677.68 billion recorded at the end of mid-July. In US dollar terms, reserves rose by 10.3 percent to USD 21.52 billion, underscoring a sharp improvement in Nepal’s external liquidity position.

Dipesh Ghimire

16 Dec, 2025

External Sector Strengthens on Paper, But Growth Remains Remittance-Led

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2 min read

External Sector Strengthens on Paper, But Growth Remains Remittance-Led

External Sector Strengthens on Paper, But Growth Remains Remittance-Led Nepal’s external sector showed a marked improvement in the first four months of fiscal year 2082/83 (up to mid-November 2025), with both the current account and balance of payments recording significantly higher surpluses than a year earlier. Data released by Nepal Rastra Bank indicate that rising inflows—largely driven by remittances and transfers—have outweighed pressures from trade and service deficits, offering short-term stability to the economy. During the review period, the current account remained in surplus by Rs 279.65 billion, a sharp increase from the Rs 147.78 billion surplus recorded in the same period last year. In US dollar terms, the surplus nearly doubled to USD 1.99 billion, up from USD 1.10 billion. Economists say this improvement reflects a strong inflow of foreign currency at a time when import demand has begun to recover.

Dipesh Ghimire

16 Dec, 2025

Remittances

2 min read

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy Remittance inflows surged strongly in the first four months of fiscal year 2082/83 (up to mid-November 2025), once again emerging as the main pillar supporting Nepal’s external sector. According to figures released by Nepal Rastra Bank, remittance inflows increased by 31.4 percent to Rs 687.13 billion, a sharp jump compared to the 9.4 percent growth recorded in the same period last year. The pace of growth highlights the economy’s continued dependence on income earned by Nepali workers abroad. The data show that remittances remain the most reliable source of foreign currency at a time when the country is facing pressure from rising imports and a widening service account deficit. Despite improvements in exports, earnings from goods and services have not kept pace with outflows, leaving remittances to fill the gap in the balance of payments.

Dipesh Ghimire

16 Dec, 2025

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

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2 min read

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances Nepal’s service account has come under increasing strain in the first four months of fiscal year 2082/83 (up to mid-November 2025), as rapidly rising overseas spending—particularly on education—has far outpaced the growth of service income. Latest balance of payments indicators released by Nepal Rastra Bank show that the net service account recorded a deficit of Rs 32.91 billion, a sharp increase from the Rs 22.37 billion deficit in the same period last year. At the core of this widening gap is the imbalance between modest service exports and accelerating service imports. While some recovery is visible in tourism-related earnings, it has not been sufficient to offset the growing outflow of funds for foreign services, highlighting structural weaknesses in Nepal’s service sector.

Dipesh Ghimire

16 Dec, 2025

Trade Structure Tilts Toward Consumption as Export Composition Shifts

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2 min read

Trade Structure Tilts Toward Consumption as Export Composition Shifts

Trade Structure Tilts Toward Consumption as Export Composition Shifts Nepal’s foreign trade data for the first four months of fiscal year 2082/83 (up to mid-November 2025) reveal a clear shift in the structure of exports and imports, highlighting deeper changes in the economy beyond headline trade figures. While export values have risen sharply during the period, the underlying composition suggests that growth is increasingly driven by consumer goods rather than industrial or capital-based production, raising questions about long-term sustainability.

Dipesh Ghimire

16 Dec, 2025

Exports Post Record Growth, but Rising Imports Keep External Pressure Intact

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3 min read

Exports Post Record Growth, but Rising Imports Keep External Pressure Intact

Exports Post Record Growth, but Rising Imports Keep External Pressure Intact Nepal’s foreign trade performance in the first four months of fiscal year 2082/83 (up to mid-November 2025) presents a picture of strong momentum on the export front, tempered by a continued rise in imports that has widened the trade deficit. Latest figures released by Nepal Rastra Bank show that although exports have expanded at an unusually fast pace, the overall balance of trade remains heavily skewed toward imports, underscoring long-standing structural weaknesses in the economy. Merchandise exports during the review period rose by 77.5 percent to Rs 93.50 billion, marking one of the strongest four-month growth rates in recent years. By contrast, exports had increased by just 4.2 percent in the same period last year. The sharp rebound suggests improved external demand for selected Nepali goods and a partial normalization of supply chains that had been disrupted in earlier years.

Dipesh Ghimire

16 Dec, 2025