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Nepal’s Economy Stronger Than Expected Despite Political Uncertainty, Says Finance Minister Rameshwor Khanal

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4 min read

Nepal’s Economy Stronger Than Expected Despite Political Uncertainty, Says Finance Minister Rameshwor Khanal

Nepal’s Economy Stronger Than Expected Despite Political Uncertainty, Says Finance Minister Rameshwor Khanal Nepal’s macroeconomic indicators remain far more resilient than commonly perceived, even amid political turbulence and widespread public anxiety, Finance Minister Rameshwor Khanal has asserted. In a detailed analytical commentary published in the SEJON Smarika 2082, Khanal argues that the economy’s fundamentals are stronger than public sentiment suggests, and that recent policy decisions have helped stabilize key financial indicators despite disruptive national events. Khanal notes that citizens naturally desire faster economic growth, more jobs, and a more vibrant private sector, but emphasizes that Nepal’s current external sector performance is “far from weak.” Imports of raw materials used by domestic industries have risen—an indicator of expanding production capacity. Exports too have improved modestly. Together, these trends reflect a healthier external sector position compared to two or three years ago, he observes.

Dipesh Ghimire

3 Dec, 2025

Non-Life Insurance

3 min read

Non-Life Insurance Business Grows Nearly 13% in First Four Months, Micro-Insurance Sees Strongest Expansion

Non-Life Insurance Business Grows Nearly 13% in First Four Months, Micro-Insurance Sees Strongest Expansion Nepal’s non-life insurance industry has posted notable growth in the first four months of the current fiscal year 2082/83, reflecting increasing insurance awareness and expanding economic activity across key sectors. According to data released by the Nepal Insurance Authority, the non-life insurance business grew by 12.93 percent from Shrawan to Kartik compared to the same period last fiscal year. The growth trend is visible across both large and small insurance companies, though micro-insurers recorded a far stronger expansion. While large non-life companies posted an average growth rate of 12.42 percent, small and micro-insurance companies experienced an impressive 40.18 percent surge. This divergence highlights the rising penetration of micro-insurance products, particularly among rural and low-income households.

Dipesh Ghimire

3 Dec, 2025

Latest Blogs

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

Top

4 min read

Nepal’s Economy Stronger Than Expected Despite Political Uncertainty, Says Finance Minister Rameshwor Khanal

Dipesh Ghimire

3 Dec, 2025

Non-Life Insurance

3 min read

Non-Life Insurance Business Grows Nearly 13% in First Four Months, Micro-Insurance Sees Strongest Expansion

Dipesh Ghimire

3 Dec, 2025

Budget Implementation in First Quarter Remains Strikingly Weak, Only 2.4% of Private-Sector Measures Fully Executed

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3 min read

Budget Implementation in First Quarter Remains Strikingly Weak, Only 2.4% of Private-Sector Measures Fully Executed

Budget Implementation in First Quarter Remains Strikingly Weak, Only 2.4% of Private-Sector Measures Fully Executed Nepal’s budget implementation for the first quarter of the current fiscal year 2082/83 has performed dismally, raising serious concerns about the government’s execution capacity and policy consistency. According to a detailed report unveiled at the “Budget Watch” program—organized jointly by the Confederation of Nepalese Industries (CNI) and the Society of Economic Journalists Nepal (SEJON)—overall progress remains extremely weak, with only 2.4 percent of private-sector-oriented budget commitments fully executed.

Dipesh Ghimire

3 Dec, 2025

Personal Loans

3 min read

NRB Doubles Limit on Unspecified Personal Loans, Allowing Borrowers to Access Up to Rs 10 Million

NRB Doubles Limit on Unspecified Personal Loans, Allowing Borrowers to Access Up to Rs 10 Million In a move that significantly reshapes household lending practices, Nepal Rastra Bank (NRB) has doubled the ceiling for personal loans issued without a declared purpose. Until now, individuals could access a maximum of Rs 5 million under personal loans and overdraft facilities that did not specify the loan’s intended use. However, under the first quarterly review of the Monetary Policy for the ongoing fiscal year, NRB has amended the integrated directive, raising the limit to Rs 10 million (one crore).

Dipesh Ghimire

3 Dec, 2025

Cooperatives Barred From Using Personal Bank Accounts for Business Transactions: Department Tightens Oversight Amid Rising Financial Risks

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3 min read

Cooperatives Barred From Using Personal Bank Accounts for Business Transactions: Department Tightens Oversight Amid Rising Financial Risks

Cooperatives Barred From Using Personal Bank Accounts for Business Transactions: Department Tightens Oversight Amid Rising Financial Risks In a significant move aimed at strengthening financial transparency and preventing illicit financial activities, the Department of Cooperatives has issued a strict directive prohibiting cooperatives from conducting any business-related transactions through personal bank accounts. The directive, released on Tuesday, underscores growing regulatory concern over the misuse of cooperative funds and the increasing risk of money laundering through unmonitored individual accounts.

Dipesh Ghimire

3 Dec, 2025

NRB’s Loan Restructuring Policy Brings Major Relief to Borrowers, But Offers Limited Gains for Banks

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3 min read

NRB’s Loan Restructuring Policy Brings Major Relief to Borrowers, But Offers Limited Gains for Banks

NRB’s Loan Restructuring Policy Brings Major Relief to Borrowers, But Offers Limited Gains for Banks Nepal Rastra Bank’s (NRB) new provision on loan rescheduling and restructuring has emerged as a much-needed lifeline for borrowers affected by recent floods and landslides. However, financial experts observe that the directive does not substantially benefit banks and financial institutions, apart from offering them temporary relief in terms of reduced non-performing loans (NPLs). The move, they argue, is primarily designed to stabilize distressed borrowers rather than improve the balance sheets of banks.

Dipesh Ghimire

3 Dec, 2025

Nepal Risks Wasting Its Demographic Opportunity as Weak HR Practices Undermine Human Capital

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5 min read

Nepal Risks Wasting Its Demographic Opportunity as Weak HR Practices Undermine Human Capital

Nepal Risks Wasting Its Demographic Opportunity as Weak HR Practices Undermine Human Capital Nepal stands at a sensitive turning point in its economic transformation. On one hand, the country enjoys a rare demographic window, with a young and potentially productive population. On the other hand, the utilisation of that human potential remains worryingly low. Global research has repeatedly shown that effective human resource management (HRM) drives productivity, innovation and long-term growth. Yet in Nepal, HRM is still seen largely as an administrative formality rather than a strategic pillar of national development. At a time when the country is fighting unemployment, skill mismatch, labour migration and an unstructured labour market, experts say strategic HRM could be the missing link needed to convert human capital into economic strength.

Dipesh Ghimire

2 Dec, 2025

Banking Sector

5 min read

Mass Contract Cancellations Push Banking Sector Toward Deeper Stress as Government Targets Long-Pending Projects

Mass Contract Cancellations Push Banking Sector Toward Deeper Stress as Government Targets Long-Pending Projects Nepal’s banking system, already struggling under rising non-performing loans, is facing renewed pressure after the government began terminating multiple stalled infrastructure contracts. As the state enforces stricter discipline on long-delayed projects, banks that issued performance guarantees to construction firms are now preparing for a new wave of claims—an impact many bankers describe as “severe and immediate.” Over the past three years, the economic slowdown has weakened loan recovery across the banking sector. As businesses faltered and repayment capacity shrank, banks saw a steady rise in non-performing loans, forcing them to increase loan-loss provisioning and book more non-banking assets. The cancellation of large infrastructure contracts risks accelerating this trend. Bankers say the latest government move has created a new layer of challenges. While banks have struggled to maintain the quality of their fund-based loans, they now face growing liabilities on the non-fund side as well—particularly on performance guarantees issued to contractors handling major national projects.

Dipesh Ghimire

2 Dec, 2025

Public Investment

5 min read

Public Investment Under Strain as ‘GenZ Uprising’ Adds Massive Reconstruction Burden

Public Investment Under Strain as ‘GenZ Uprising’ Adds Massive Reconstruction Burden Nepal’s public investment system, already weakened by chronically low capital spending and poor implementation, has entered a deeper crisis following the destruction of major state properties during the ‘GenZ uprising’ of Bhadra 23 and 24. What was once a structural challenge has now escalated into a fiscal emergency. The country’s fiscal space—already narrowing due to sluggish revenue growth—now faces additional pressure as the government must rebuild public infrastructure damaged during the protests. Initial assessments suggest that assets worth more than Rs 100 billion may have been destroyed, and reconstruction costs are expected to be nearly double the current valuation due to inflation and new safety requirements. For a nation where capital expenditure has long been inadequate, the scale of the damage has exposed a widening gap between required infrastructure investment and the state’s ability to finance and execute it.

Dipesh Ghimire

2 Dec, 2025

Nepal Tightens Cash Transaction Limit to Rs. 500,000: A Major Step Toward Financial Transparency and FATF Compliance

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2 min read

Nepal Tightens Cash Transaction Limit to Rs. 500,000: A Major Step Toward Financial Transparency and FATF Compliance

Nepal has tightened the ceiling on cash transactions in an effort to curb money laundering and strengthen financial transparency. The government has decided that any transaction of Rs. 500,000 or more must now be conducted through banks, financial institutions or digital payment channels. Announcing the decision after Monday’s Cabinet meeting, government spokesperson and Minister for Information and Communications Jagdish Kharel said the move is aimed at aligning Nepal with international anti–money laundering standards and helping the country avoid being placed on the Financial Action Task Force’s grey list.

Dipesh Ghimire

2 Dec, 2025