This issue of Nefport takes into account news updates from June 1, 2025 to August 31, 2025.
The USD conversion rate for this issue is NPR 138.14 to a dollar, the quarterly average for this issue.
Reproduction is authorized provided the source is acknowledged.
The views and opinions expressed in the article/publication are those of the author(s) and do not necessarily reflect the official opinion of Nepal Economic Forum. Neither the organization nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.
Executive Board Members:
Alpa B. Shakya
Shayasta Tuladhar
Sudip Bhaju
Sujeev Shakya
Advisory Board:
Elisabeth von Capeller
Francois-Xavier Leger
Giuseppe Savino
Kenichi Yokoyama
Kul Chandra Gautam
Mahendra Krishna Shrestha
Saloni Sethia
Shraddha Gautam
Sneh Rajbhandari
Senior Fellows:
Aman Pant
Apekshya Shah
Bibhakar Shakya
Sijan Thapa
Suman Basnet
Editorial
The review period for this edition of the NEFport, from June to August 2025, was marked by a complex interplay of political maneuvering, economic challenges, and social tension in Nepal. While the nation continued its efforts to stabilize governance and pursue reforms initiated in previous years, public dissatisfaction over corruption, service delivery, and policy implementation persisted. Amidst these ongoing structural challenges, discussions around social accountability, democratic participation, and institutional reforms remained central to both public discourse and policymaking.
Just as we were getting ready to publish our quarterly review for this period, however, Nepal saw an unprecedented turn on events on September 8 and 9, 2025. An uprising of the youth, popularly called the Gen Z movement, against corruption and triggered by a social media ban, gripped the nation. At what started out as peaceful protests across the nation on September 8, government security forces used live ammunition and killed 19 protestors. The following day, protestors defied curfew orders to demand accountability for the killings, including the resignation of the Prime Minister. While the Prime Minister eventually resigned, public and private property continued to be destroyed, prisoners escaped, and the protests were allegedly infiltrated by arsonists and people with political agendas. At least 72 people were killed and more than 2,000 injured in those two days. Meanwhile, public and private property losses are still being estimated.
As a result of the Gen Z movement, an interim government was established with former Chief Justice Sushila Karki appointed as the interim Prime Minister. The Parliament was also dissolved, and general elections have been scheduled for March 6, 2026. Under Prime Minister Karki’s leadership, a Cabinet is being formed comprising technocrats and reform-oriented leaders, including Rameshore Khanal as the Minister of Finance. Khanal, a former Finance Secretary and Chair of the government’s High-Level Economic Reforms Commission (HLERC), had previously written about his experience leading the HLERC in our quarterly report, NEFport 61 – ‘Reforms 2.0: Unpacking the HighLevel Economic Reforms Commission.’
The interim government’s priorities are clear. They must investigate the killings, hold perpetrators accountable, address systemic corruption, and ensure that elections are held in a free, fair, and credible manner.
Despite the enormity of these challenges, Nepal’s history is one of resilience and recovery. Past crises have tested the nation’s institutions, social fabric, and civic engagement, yet Nepalis have consistently pushed through. So the current moment, while deeply painful, also presents an opportunity for reflection, reform, and renewal. By strengthening governance, reinforcing accountability, and engaging citizens constructively, Nepal can emerge from this crisis stronger, ensuring that democracy, justice, and equity guide the path forward.
As this edition of NEFport covers the review period from June to August 2025, the recent political upheaval has not been included. It will be comprehensively analyzed in the next edition to ensure adequate context and coverage. NEFport 62, meanwhile, covers the topic of Nepal-Bangladesh relations, a topic that we explored through two joint roundtables with the Centre for Policy Dialogue (CPD) – one of Bangladesh’s leading think tanks. The first roundtable was held in Kathmandu on June 13, 2025, and the second was held in Dhaka on August 3, 2025. The events brought together participants from the private sector, government, and development agencies to discuss ties between the two countries and potential areas of cooperation. The four articles in this edition of the NEFport draw on insights from these roundtables as well as experiences from experts to chart a path for the future of Nepal-Bangladesh relations. Dr. Fahmida Khatun (Executive Director, Centre for Policy Dialogue) and Afrin Mahbub (Programme Associate, Centre for Policy Dialogue) make the case for moving beyond a Preferential Trade Agreement (PTA) toward a Comprehensive Economic Partnership Agreement (CEPA). H.E. Ghanshyam Bhandari (Ambassador of Nepal to Bangladesh) provides the diplomatic perspective on current initiatives and future priorities. Dr. Shikha Thapa Magar (Executive Director, Nepal Development Research Institute) identifies opportunities in power trade, product diversification, and climate cooperation. Finally, Sudip Bhaju (Executive Board Member, Nepal Economic Forum) explores opportunities in non-traditional sectors that bypass structural trade barriers between the two countries. Together, these contributions offer a comprehensive perspective on unlocking the untapped potential between these two next-door neighbors.
As always, we would like to express our gratitude to everyone who has contributed voluntarily, as well as to our readers and patrons who have supported and engaged with us throughout our journey.
We are working continuously on recalibrating our NEFports to make them more useful to our readers. Please feel free to write to us at info@nepaleconomicforum. org or to any of our social media handles for further comments or feedback.
Sujeev Shakya Chair, Nepal Economic Forum
1 General Overview
Political Overview
Nepal’s political and governance landscape in the review period, from June to August 2025, was marked by highstakes diplomacy, internal party upheavals, and significant legislative reforms. The India-China agreement reopening trade routes, including Lipulekh, without Nepal’s consent reignited long-standing sovereignty disputes. As a result, then-Prime Minister KP Sharma Oli’s visits to China and India mostly highlighted Nepal’s commitment to asserting its territorial rights and strengthening diplomatic ties. Meanwhile, in internal politics, the Nagarik Unmukti Party (NUP) grappled with leadership tensions, culminating in the Election Commission’s reinstatement of Ranjita Shrestha as chairperson. On the legislative front, Nepal took a historic step by passing the Nepal Citizenship (Second Amendment) Bill, allowing children to claim citizenship through their mothers.
LEGISLATIVE UPDATES
Nepal Objects to Lipulekh Agreement
In August 2025, during Chinese Foreign Minister Wang Yi’s visit to New Delhi, India and China signed an agreement to reopen traditional trade routes, including Lipulekh, Shipki La, and Nathu La, without consulting Nepal. By including Lipulekh in their bilateral deal, the two countries effectively bypassed Nepal’s claim over the region, reigniting an old dispute.7 Nepal viewed the move as a violation of its sovereignty and lodged diplomatic notes of protest with both governments. The Ministry
of Foreign Affairs reiterated that Lipulekh, along with Limpiyadhura and Kalapani, is an integral part of its territory, reaffirming its stance following the reopening of the Lipulekh Pass for border trade.8 Politicians across party lines also denounced the agreement, arguing that it disregards Nepal’s territorial rights.9 Meanwhile, India maintained that trade through Lipulekh existed since 1954 and rejected Nepal’s claim as unilateral, while China did not directly responded to Nepal’s concerns.10
Internal Conflict Troubles Nagarik Unmukti Party
In the review period, the Nagarik
Unmukti Party (NUP) plunged into internal conflict following the removal of Ranjita Shrestha from the position of chairperson by the party’s national conference on July 30, 2025.11 The party’s disciplinary committee accused Shrestha of violating the party statute and failing to respond to a clarification notice regarding her alleged involvement in the Pokhara litchi orchard land controversy.12 Tensions further escalated when Shrestha unilaterally appointed Shiva Bastola as acting chair, a move rejected by party patron Resham Chaudhary, who said the party’s constitution did not authorize such a decision. Amid the dispute, discussions
emerged about appointing Lalbir Chaudhary, Resham Chaudhary’s father and a sitting lawmaker from Bardiya, as the new chairperson.13 However, his candidacy faced legal complications with him not being a founding member of the party. In the end, the Election Commission of Nepal later intervened, reaffirming Ranjita Shrestha as the official chairperson under existing party and electoral laws.14
JSP and Rastriya Mukti Party Form Functional Alliance 15
The Janata Samajbadi Party (JSP), led by Ashok Rai, and the Rastriya Mukti Party, headed by Rajendra Mahato, announced a working alliance on August 14, 2025, at a joint program in Kathmandu.16 The two parties agreed to coordinate through media visibility, abide by shared codes of conduct, and strengthen unity among communities across the mountains, hills, and Terai to advance political stability and prosperity. Leaders from both sides, including Rai and Mahato, emphasized that this cooperation was the first step toward a complete party merger.17 The alliance aimed to integrate provincial, district, and local committees and organize joint nationwide programs, rallies, assemblies, and policy discussions advocating for amendments to what they described as Nepal’s “incomplete and discriminatory” constitution.18
Observers viewed the alliance as a potential fracture within the Federal Democratic Front (FDF), a Madhesh-based coalition formed in April. While Rai and Mahato’s alliance was
presented as independent of the FDF, analysts noted it reflected ongoing realignments among regional forces amid internal rifts.19 The deal also highlighted the enduring fragmentation of Madhesh politics, as parties continue cycles of unification and division in response to changing electoral strategies. Despite the turbulence, both parties claimed the partnership was driven by a shared vision of inclusive democracy and proportional representation.20
National Assembly Endorses Federal Civil Service Bill
On September 2, 2025, the National Assembly passed the Federal Civil Service Bill after multiple deliberations on its policies.21 The bill, which was registered in the Parliament in March 2024 and was passed in the House of Representatives on June 29, 2025, faced many hurdles in the process. Following the endorsement from the House of Representatives, the bill faced strong resistance from top bureaucrats due to its primary provision regarding a cooling-off period for senior civil servants before being able to take up roles in constitutional bodies, ambassadorial posts, or roles in other government offices.22 As a result of this, the National Assembly’s Legislation Management Committee debated on the matter and ultimately endorsed a two-year cooling-off period for senior civil servants. The negotiation came after weeks of debate with CPNUML favoring a one-year limit, the Maoist Centre pushing for three years, and the Nepali Congress supporting a two-year limit. Lawmakers noted that the rule
aims to reduce undue influence and discourage recently retired officials from moving directly into powerful political posts.23
Nepal Approves Citizenship Through Mothers
The Nepal Citizenship (Second Amendment) Bill marked a turning point in reforming citizenship laws.24 On June 28, 2025, the House of Representatives endorsed the bill, allowing children of Nepali mothers to obtain citizenship in their mothers’ name. The National Assembly’s Legislation Management Committee backed the provision on August 18, and by August 22, the Upper House unanimously approved the bill, completing its passage.25 Despite the milestone, however, concerns remain. Advocacy groups called for broader inclusivity, as the bill allows for citizenship through mothers only in cases where fathers are absent.26 It mandates mothers to make selfdeclarations about fathers, and criminalizes false declarations, while no such conditions exist for fathers.27 The reform is thus seen as both a breakthrough and a cautious step, reflecting progress tempered by ongoing inequalities.
JUDICIAL UPDATES
Judicial Council Reshuffles Judges
In the past quarter, the Judicial Council of Nepal conducted a large-scale reshuffle, transferring 120 judges across special, high, and district courts. Council meetings led by Chief Justice Prakash Man Singh Raut also recommended four new Special Court members.28 The existing
members were transferred to various high courts following the practice of rotating judges after two years. In particular, the reshuffle accommodated appointments made on August 7, which included 27 new high court judges, drawn from district courts, judicial service, and the legal profession.
The move sparked criticism from the Nepal Bar Association, which condemned the appointments as lacking transparency and inclusivity. The Bar argued that the Judicial Council ignored constitutional principles of proportional representation, merit, and competence, particularly the representation of women, geographic regions, and marginalized communities. Calling the revised rules “discriminatory,” the association warned that such practices undermine public trust in the judiciary and that it would not endorse appointments until reforms ensuring fairness and inclusion are implemented. 29
BILATERAL / MULTILATERAL UPDATES
Nepal and India Agree to Complete Border Work in Three Years
Senior officials from Nepal and India met in New Delhi during the 7th meeting of the NepalIndia Boundary Working Group (BWG) and agreed to complete the remaining technical boundary work within three years, excluding the disputed areas of Susta and Kalapani. The meeting, led by Director General of Nepal’s Department of Survey and, Surveyor General of India, decided to resume joint fieldwork immediately and set
a new deadline after previous ones in 2015 and 2017 were missed due to funding shortages, the Covid-19 pandemic, and boundary-related disputes.30 Both sides agreed to hold the 12th Survey Officials’ Committee (SOC) meeting in Nepal to finalize the roadmap for implementation.
The two sides also decided to construct new boundary pillars, repair damaged ones, and prepare an inventory of crossborder property holdings and encroachments within ‘no-man’s land’.31 Additionally, they agreed to upgrade and update the NepalIndia Boundary Global Navigation Satellite System (NIB GNSS) to ensure accurate mapping.32 The meeting concluded with the signing of agreed minutes and a joint commitment to adopt new technologies to enhance the efficiency of boundary inspection and maintenance. The decision marked a significant step in resuming stalled border management efforts after a sixyear hiatus since the last BWG meeting in 2019.33
Indian Foreign Secretary Vikram Misri Visits Nepal
Indian Foreign Secretary Vikram Misri paid a two-day official visit to Nepal from August 17–18, 2025, at the invitation of his Nepali counterpart Amrit Bahadur Rai. Misri arrived in Kathmandu on Sunday morning and held highlevel meetings with President Ramchandra Paudel, former Prime Minister KP Sharma Oli, former Foreign Minister Arzu Rana Deuba, and leaders of major political parties, including Sher Bahadur Deuba and Pushpa Kamal Dahal.34 The visit took place ahead of Prime Minister
Oli’s planned trip to India on September 16, with Misri officially handing over Prime Minister Narendra Modi’s invitation and discussing the agenda and logistics of the forthcoming visit.35
During delegation-level talks, both sides reviewed ongoing bilateral cooperation and explored opportunities for further collaboration in areas such as connectivity, defense, digital partnership, and energy cooperation. Misri also met Nepal’s Chief of Army Staff, General Ashok Raj Sigdel, and handed over defense stores and equipment, including Light Strike Vehicles and critical care medical supplies.36 The visit reaffirmed India’s commitment to its “Neighborhood First” policy and helped advance bilateral relations by strengthening dialogue on shared strategic and developmental priorities between the two nations.37
Former PM Oli Visits China for SCO Summit
Former Prime Minister KP Sharma Oli’s visit to China from August 30 to September 3, 2025 for the 25th Shanghai Cooperation Organization (SCO) Summit in Tianjin underscored Nepal’s diplomatic priorities, regional concerns, and development goals. During the visit, Prime Minister Oli raised Nepal’s territorial claim over Lipulekh, referencing the 1816 Sugauli Treaty and Nepal’s constitutional map. In talks with Chinese President Xi Jinping, he urged recognition of Lipulekh as Nepali territory.38 President Xi acknowledged the concern but advised resolving the issue bilaterally with India.
During his visit, Oli also sought Chinese support for Belt and Road Initiative (BRI) projects in fertilizer, petroleum exploration, climate resilience, and human resource development. He further held bilateral meetings with leaders from Vietnam,
Outlook
Cambodia, the Maldives, and Laos to strengthen trade and investment ties, proposing joint action on climate resilience “from the mountains to the sea”.39
Clarifying Nepal’s foreign policy, Oli reaffirmed support only for China’s Global Development
Initiative (GDI) while rejecting the Global Security and Civilization Initiatives, underscoring Nepal’s non-aligned stance and focus on development and territorial integrity.40
Looking forward, Nepal’s advanced key legislative and diplomatic initiatives aimed at strengthening governance and asserting sovereignty. The Federal Civil Service Bill introduced a two-year coolingoff period for senior bureaucrats to prevent conflicts of interest. The Nepal Citizenship (Second Amendment) Bill allowed children to obtain citizenship through their mothers, marking progress in gender equality despite procedural gaps. On foreign policy, Nepal protested the India-China Lipulekh agreement, reaffirming its territorial claim. Diplomatic engagements included Indian Foreign Secretary Vikram Misri’s visit and KP Sharma Oli’s participation in the SCO Summit in China. Oli sought Chinese support for BRI projects while endorsing only the Global Development Initiative (GDI). These developments reflected Nepal’s balancing act between India and China. The coming months will test its ability to sustain reform momentum and diplomatic equilibrium.
International Economy
The global economy faced mounting uncertainty in the review period, from June to August 2025, accounting to the rise in trade tensions, rising tariffs, and policy instability slowing growth across major economies. While the World Bank downgraded the global growth forecast to 2.3% which is the weakest since 2008, the IMF and OECD projected modest growth of 3% and 2.9% respectively. Trade wars due to US led tariff hikes intensified geopolitical strains and disrupted global trade slowed to 1.8%. Additionally, China’s growth weakened amid industrial output and consumer demand, prompting fiscal stimulus measures. Furthermore, despite a modest 1.5% rise in global trade reported by United Nation Commission for Trade and Development, job losses in manufacturing heavy economies and shifting export priorities underscoring widespread vulnerability. Meanwhile, the Intergovernmental Negotiating Committee under the United Nations Environmental Program (UNEP) advanced toward a legally binding treaty on plastic pollution signaling that amid economic fragility, multilateral cooperation on global environmental challenges remain possible.
ECONOMIC UPDATES
Rising Trade Tensions, Policy Uncertainty and Risks of Slowing Growth
In June 2025, the World Bank significantly downgraded its global economic growth forecast for the year to 2.3%, down from 2.8% in 2024.46 This marked the slowest pace of global expansion since 2008, excluding periods of
outright global recessions. The primary factors contributing to this revision included escalating trade tensions, increased trade barriers, and heightened policy uncertainty. The United States' implementation of widespread 10% tariffs disrupted international trade dynamics, leading to retaliatory measures from other nations and increased domestic costs.47
These developments introduced significant uncertainty into the global economic landscape, dampening business confidence and investment. The World Bank further reported that income gaps between emerging markets and developing economies (EMDEs) and advanced economies will widen as Foreign Direct Investment (FDI) into EMDEs is estimated to fall to less than half
its 2008 peak with little recovery. Moreover, global trade growth was projected to slow to 1.8% in 2025, down from 3.4% in 2024 and far below the 5.9% average of the 2000s, due to trade wars and policy uncertainty.48 Looking ahead, the World Bank warned that without coordinated action, protectionist policies could lower living standards globally.
Furthermore, several major international institutions issued cautious forecasts for global growth in this quarter of 2025, highlighting challenges posed by trade tensions, inflation, and policy uncertainties. The International Monetary Fund (IMF), in its World Economic Outlook Update released on July 29, 2025, projected global growth at 3.0%, citing fiscal expansion and resilience in emerging markets.49 The OECD, in its Economic Outlook of June 3, 2025, expected slightly slower growth of 2.9%, noting that trade barriers and uncertainty in policy could weigh on global GDP.50 Meanwhile, the United Nations’ Department of Economic and Social Affairs (UNDESA) warned that developing countries remain vulnerable to shocks, projecting modest recovery rates and emphasizing the need for inclusive, sustainable growth strategies.51
The Asian Development Bank (ADB) added a regional perspective, projecting AsiaPacific growth at 4.7% for 2025, slightly below prior forecasts, due to slower export demand and supply chain disruptions.52 Together, these reports underscore a global economic environment that is cautiously optimistic but fragile. Analysts
from these institutions stressed coordinated policy action, investment in infrastructure, and careful management of trade and financial risks to sustain growth and mitigate emerging uncertainties.
U.S.-India Tariff Tensions Rise Over Russian Oil Imports
In August 2025, the Trump administration increased tariffs on many Indian imports to 50%, effective August 27, and this was among the highest rates the U.S. has imposed on any trading partner.53 The U.S. justified the tariffs by citing India's continued purchase of Russian crude oil, which it argued undermined Western sanctions and supported Russia's economy amid ongoing aggression in Ukraine.54 India, which was purchasing about 1.75 million barrels of crude oil per day from Russia in the first six months of 2025, rejected U.S. demands to cease these imports, emphasizing its strategic autonomy and energy security needs.55 The tariff tensions have prompted India to reassess its foreign policy, culminating in strengthened diplomatic engagements with China and Russia as part of a broader strategic diversification effort.56 In August 2025, highlevel diplomatic engagements were initiated, including meetings between Indian Prime Minister Narendra Modi and Chinese Foreign Minister Wang Yi, signaling a shift towards a more diversified strategic approach.57 This unfolding tariff dispute underscored deep strategic differences and energy priorities, leaving the future trajectory of India-U.S. economic and diplomatic relations uncertain in
the evolving global order.
China Witnesses Economic Slowdown
China’s economic growth slowed significantly in July 2025, revealing emerging challenges amid global and domestic pressures.58 Industrial production rose 5.7% year-on-year, down from 6.8% in June and below forecasts, impacted by complex and severe international environment and trade tensions. Similarly, retail sales growth dropped to 3.7%, the slowest since late 2024, reflecting weakening consumer demand despite government subsidy efforts.59 The government acknowledged the trade war with the U.S., rising tariffs, and industrial overcapacity as key factors slowing growth.60 As a result, policymakers introduced stimulus measures, including increased budget deficits, record bond issuance, and support for banks and local governments, and credit support to shore up demand, aiming to meet the official growth target of around 5% for 2025.61
INTERNATIONAL TRADE UPDATES
Global Trade Rises Amidst Policy Uncertainties
In July 8, 2025, United Nations Trade and Development (UNCTAD) reported a rise in global trade by about 1.5% in the first half of 2025 in its “The Global Trade Update”, with expansion of trade volume worth USD 300 billion (NPR 42 trillion).62 This rise is noted to be caused by rise of imports in United States by 14% and in European Union Exports by 6% despite lowered imports in developing nations
by 2% compared to previous years.63 As per Organization for Economic Cooperation and Development (OECD), the G20 countries showed a modest growth in merchandise trade and accelerated growth in service trade despite trade uncertainty due to policy restrictions.64 This trade outcome is influenced by the depreciation of the U.S. Dollar against other currencies and rising trade uncertainty, following new tariff announcements.65
U.S. Tariffs Shift Labor Markets and Priorities Across the World
The tariffs imposed by the United States under the Trump administration, including duties as high as 25% on steel and 10% on aluminum have far-reaching consequences in the global economy.66 These implications primarily have trickled down in forms of employment shift alongside evolving export priorities. In Canada alone, the rise in tariffs have hit hard on the manufacturing sector, leading to the loss of tens of thousands of jobs in the sector.67 Similarly, the ripple effects are significant
Outlook
in European Union with Ireland, Italy and Germany collectively witnessing the loss of 5.2 million jobs.68
The mounting pressure has led to the changing priorities to tackle U.S. Tariffs. On the other hand, governments also looked to shift their export markets to tackle the U.S. tariffs.69 For example, this was particularly seen in the case of Indonesia, that moved to export shrimp to China, the European Union, and Middle Eastern markets post 19% tariffs set by the U.S. government.70 With U.S. imposing a 19 % tariff on shrimp imports, holds a possibility of 30 % drop in Indonesian shrimp exports this year and threaten the livelihoods of approximately 1 million workers.71
GLOBAL EVENTS
5th Session of Intergovernmental Negotiating Committee to form Legally Binding Instrument on Plastic Pollution Held
From August 5-15, 2025, the second part of fifth session of the Intergovernmental
Negotiating Committee (INC) by United Nations Environment Program was held to develop a legally binding instrument on plastic pollution was held at Palais des Nations in Geneva.72 The large-scale international forum brought together 2,600 delegates, including over 1,400 government representatives from 183 countries and 1,000 observers from 400 organizations. 73 It was structured around informal roundtables and intensive discussions to encourage interactive dialogue, knowledge exchange, and consensus-building among diverse stakeholders.74 The outcome of this committee included a progress towards a legally binding international agreement addressing plastic pollution across lifecycle.75 The members agreed on structure of draft treaty, key implementation mechanisms, and roadmap for further negotiations signaling collective commitment despite ongoing differences on financial and technological support.76
The global economic outlook for the upcoming quarter remains fragile and uncertain with trade tensions, slowed growth in major economies and rise in protectionist measures. While fiscal expansion and selective regional resilience may offer limited support, broader trajectory points indicate towards subdued investment, weakened trade and widened inequalities between advanced and developing economies. The trade tariffs are likely to dampen global demand and investor confidence. As a result, policymakers will face the urgent task of restoring stability through coordinated action, rebuilding trust in multilateral frameworks and inclusive and sustainable recovery. Without such cooperation, the upcoming quarter is likely to move towards economic fragmentation and prolonged uncertainty.
2 Macroeconomic Overview
Macroeconomic Overview
During this review period, from June to August 2025, Nepal's macroeconomic performance showcased stability, supported by steady foreign exchange reserves and remittance inflows. It witnessed the release of annual data for FY 2024/25 AD (2081/82 BS) which provided a wealth of data on the country’s macroeconomic situation. According to it, the Gross Domestic Product (GDP) at current prices reached NPR 6.107 trillion (USD 44.21 billion), reflecting sustained economic activity. Gross foreign exchange reserves surged to NPR 2.67 trillion (USD 19.33 billion), boosted by remittance inflows of NPR 1.74 trillion (USD 12.64 billion), which significantly strengthened Nepal’s capacity to cover 18.2 months of merchandise imports. However, net Foreign Direct Investment (FDI) remained modest at NPR 12.02 billion (USD 87.03 million), indicating cautious investor sentiment. Meanwhile, the government’s expenditure totaled NPR 1.52 trillion (USD 11.00 billion), while revenue collection rose to NPR 1.18 trillion (USD 8.54 billion), reflecting efforts to enhance fiscal capacity. Additionally, inflation remained subdued, with year-on-year Consumer Price Index (CPI) at 2.2%, though food and beverage inflation was higher at 4.69% compared to non-food and services at 3.71%. On the trade front, total exports stood at NPR 277.03 billion (USD 2.01 billion), while imports amounted to NPR 1.80 trillion (USD 13.03 billion), resulting in a trade deficit of NPR 1.52 trillion (USD 11.00 billion). However, the balance of payments remained positive at NPR 594.54 billion (USD 4.30 billion), signaling external sector stability. Furthermore, the quarter witnessed the release of Nepal Rastra Bank’s (NRB’s) monetary policy for FY 2025/26 AD (2082/83 BS).
Gross
Domestic Product (GDP)
According to the ‘Current Macroeconomic and Financial Situation’ report by the Nepal Rastra Bank (NRB), Nepal’s Gross Domestic Product (GDP) at current prices reached NPR 6.107 trillion (USD 44.21 billion)
in FY 2024/25 AD (2081/82 BS), compared to NPR 5.709 trillion (USD 41.32 billion) in FY 2023/24 AD (2080/81 BS).78 The services sector was the largest contributor at 62.01%, with agriculture at 25.16% and industry at 12.83%. While the economic growth for
FY 2024/25 AD (2081/82 BS) was estimated at 4.61% by the National Statistics Office (NSO), the budget and monetary policy for FY 2025/26 AD (2082/83 BS) targeted an economic growth of 6% for this fiscal year.79
Figure 1. GDP in current prices over the last five years (in NPR trillion)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS))80
Inflation
Nepal’s consumer price inflation on a year-on-year basis declined to 2.2% in mid-July 2025, down from 3.57% in the previous year. Similarly, the annual average consumer price inflation fell to 4.06% in FY 2024/25 AD (2080/81 BS) from 5.44% in the prior fiscal year.81 This decline was primarily driven by lower inflation in non-food and services sectors, particularly in housing, utilities, and restaurant services. However, food and beverage inflation remained high, driven by rising vegetable prices, despite the FY 2024/25 AD (2081/82 BS) budget’s decision to eliminate value-added tax (VAT) on
2020/21 AD (2077/78 BS)
2021/22 AD (2078/79 BS)
2022/23 AD (2079/80 BS)
certain produce.82 Within the food and beverage category, prices increased significantly for vegetables (+10.71%), ghee and oil (+8.72%), and pulses and legumes (+7.9%), whereas prices declined for spices (-2.62%) and meat and fish (-0.34%). In the non-food items category, price increases were notable for miscellaneous goods and services (+9.39%) and clothes and footwear (+6.09%), with insurance and financial services (+0.2%) seeing the smallest rise.83
In terms of regions, inflation was recorded at 4.89% in the mountain areas, 3.77% in Kathmandu Valley, 3.86% in the Hill, and 4.14% in the Terai regions.
2023/24 AD (2080/81 BS)
2024/25 AD (2081/82 BS)
Inflation trends in Nepal and India were comparable, with inflation rates of approximately 2.2% in Nepal and 1.55% in India by mid-July 2025. Additionally, the Asian Development Bank (ADB) anticipated inflation to rise to 5.2% in 2025 and 5% in 2026.84
The World Bank projected a similar outlook, forecasting inflation at 5% in 2025, followed by a gradual decline to 4.5% in 2026 and 4.3% in 2027.85
Table 1. Consumer Price Index over Two Consecutive Years (in percentage)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2023/24 AD (2080/81 BS) to FY 2022/23 AD (2079/80 BS))86
Monetary Policy Highlights for FY 2023/24 AD (2081/82 BS)
The monetary policy for FY 2082/83 BS (2025/26 AD) adopted a cautiously supportive approach to foster sustained economic growth amid prevailing geopolitical uncertainties, trade disruptions, and volatility in crude oil prices. The policy established objectives to maintain consumer price inflation at approximately 5%, ensure foreign exchange reserves sufficient to cover a minimum of seven months of merchandise and services imports, and achieve an economic growth rate of 6%.87 Additionally, the policy projected a broad money supply growth of 13% and an increase in private sector credit of 12% for FY 2082/83 BS (2025/26 AD). However, rising non-performing loans (NPLs) and non-banking assets of Banking and Financial Institutions (BFIs) exerted significant pressure on their capital reserves, thereby constraining the capacity to expand credit. Consequently, the policy prioritized financial stability by enhancing the credit expansion capacity and strengthening the capital fund.88
To increase the credit flow, the bank rate, representing the upper bound of the interest rate corridor, was reduced to 6% from
6.5%. The deposit collection rate, which is considered the lower bound of the interest rate corridor, on the other hand, was reduced to 2.75% from 3%. Likewise, the policy rate was reduced from 5% to 4.5%.89 In addition, the credit ceiling for the construction or purchase of private residential housing was elevated from NPR 20 million (USD 144.7 thousand) to NPR 30 million (USD 217.16 thousand), and the single obligor limit for margin-based loans secured by share collateral was increased from NPR 150 million (USD 1.085 million) to NPR 250 million (USD 1.809 million).90
The new monetary policy also recognized the transformative shift in the financial sector, driven by rapid advancements in technology. To align with this dynamic landscape, the NRB introduced forward-looking provisions to facilitate the establishment of a “Neobank,” aiming to integrate the digital banking system into the financial ecosystem. Furthermore, NRB undertook initiatives to identify Domestic Systemically Important Banks (DSIB) and Systemically Important Payment Systems (SIPS) in response to emerging technological and systemic demands. 91
GOVERNMENT FIGURES
Government Reserves
Nepal’s gross foreign exchange reserves experienced a significant increase of 31.2%, rising to NPR 2.67 trillion (USD 19.33 billion) by mid-July 2025 as compared to NPR 2.04 trillion (USD 14.77 billion) as of mid-July 2024.92 The reserves held by the NRB increased by 30.6%, reaching NPR 2.41 trillion (USD 17.45 billion), while those held by banks and financial institutions increased by 36.6%, totaling NPR 263.04 billion (USD 1.90 billion). These reserves are estimated to cover 18.2 months of merchandise imports and 15.4 months of combined merchandise and services imports.93 Key financial ratios also improved, with reservesto-GDP, reserves-to-imports, and reserves-to-M2 money supply ratios advancing to 43.8%, 128.1%, and 34.1%, respectively, compared to 35.8%, 108.6%, and 29.3% in the previous year.94
Figure 2. Gross Foreign Exchange Reserves in MidJuly of the Last Five Years (in NPR trillion)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS))95
Government Debt
During the fiscal year 2024/25 AD (2081/82 BS), the Government of Nepal secured NPR 329.99 billion (USD 2.39 billion) through domestic borrowing and made principal repayments totaling NPR 243.91 billion (USD 1.77 billion). This led to a net domestic debt mobilization of NPR 86.08 billion (USD 620 million), representing 1.4% of the nation’s GDP.96
Table 2. Outstanding Domestic Debt as of midJuly in the last three years (in NPR billion)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS) to FY 2022/23 AD (2079/80 BS)99
Furthermore, the government acquired external loans totaling NPR 125.40 billion (USD 910 million).97 As of mid-July 2025, the total outstanding public debt rose to NPR 2.67 trillion (USD 19.33 billion), compared to NPR 2.44 trillion (USD 17.66 billion) in FY 2023/24 AD (2080/81 BS). The total outstanding public debt included foreign debt of NPR 1.401 trillion (USD 10.14 billion) and domestic debt of NPR 1.268
trillion (USD 9.18 billion). The total outstanding public debtto-GDP ratio stood at 43.71% in FY 2024/25 AD (2080/81 BS). In comparison, the ratio was 42.71% in FY 2023/24 AD (2080/81 BS) and 42.84% in FY 2022/23 AD (2079/80 BS), indicating consistent debt levels relative to economic output.98
Government Spending
According to the Financial Comptroller General Office (FCGO), the Government of Nepal’s total expenditure in the fiscal year 2024/25 AD (2081/82 BS) reached NPR 1.52 trillion (USD 11.01 billion), an increase from NPR 1.39 trillion (USD 10.06 billion) in the prior fiscal year.
This total federal expenditure was categorized into three segments: recurrent expenditure, which amounted to NPR 980.38 billion (USD 7.10 billion); capital expenditure, totaling NPR 222.68 billion (USD 1.61 billion); and financing expenditure, reaching NPR 320.04 billion (USD 2.32 billion).101 In comparison, last year, the recurrent expenditure
increased from NPR 929.12 billion (USD 6.73 billion), capital expenditure increased from NPR 192.02 billion (USD 1.39 billion), and financing expenditure increased from NPR 272.24 billion (USD 1.97 billion).102
Table 3. Government Expenditure of the Last Two FYs (in NPR billion)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS) to FY 2023/24 AD (2080/81 BS)100
On the revenue front, the government’s total revenue collection increased to NPR 1.178 trillion (USD 8.53 billion) in the fiscal year 2024/25 AD (2081/82
Figure 3. Government Revenue of the Last Two FYs (in NPR billion)
Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS) to FY 2023/24 AD (2080/81 BS)104
BS). The total revenue was NPR 1.05 trillion (USD 7.60 billion) in the previous year. This revenue is composed of tax revenue, which amounted to NPR 1.04 billion (USD 7.60 billion), and non-tax revenue, totaling NPR 128.94 billion (USD 930 billion), during the review period.103
FINANCE STATUS Investments
In FY 2024/25 AD (2081/82 BS), the net Foreign Direct Investment (FDI) increased to NPR 12.02
Figure 4. Net Foreign Direct Investment until mid-July (annual data)
Source: Current Macroeconomic and Financial Situation, Annual data for FY 2024/25 AD (2081/82 BS)107
FOREIGN ASSISTANCE
During the fiscal year 2024/25 AD (2081/82 BS), total foreign aid disbursements for the period reached NPR 148.93 billion (USD 1.078 billion), reflecting a slight increase from the previous year's
Table 4. Foreign Assistance during the Last Five FYs (in NPR million)
Source:
for FY 2024/25 AD (2081/82 BS)110
billion (USD 87.03 million) from NPR 8.47 billion (USD 61.32 million) in the previous FY 2023/24 AD (2080/81 BS).105 According to the Department of Industries (DoI), 717 projects of foreign investment
were registered in FY 2024/25 AD (2081/82 BS) compared to 539 projects in the previous FY 2023/24 AD (2080/81 BS).106
total of NPR 142.3 billion (USD 1.030 billion).108 This amount consisted primarily of foreign loans, which accounted for NPR 125.4 billion (USD 907.78 million). Grants, on the other hand, contributed a smaller share of NPR 23.53 billion (USD 170.36 million). Moreover,
while the level of foreign grants remained consistent with the previous year, foreign loans saw a notable increase from NPR 119.06 billion (USD 861.86 million).109
(Annual Series)
Aid Disbursements from Donor Agencies
During the review period, Nepal received development aid disbursements from numerous bilateral and multilateral agencies. According to the Ministry of Finance's aid management system, the Japan International Cooperation Agency (JICA) remained one of the top contributors so far in 2025, with a total disbursement of USD 17.2 million (NPR 2.38 billion) and total commitment of USD 3.3 million (NPR 455.86 million).111 Other key bilateral donors included the European Commission with 91 ongoing projects, the United States Agency for International Development (USAID) with 59 ongoing projects, and the China International Development Cooperation Agency (CIDCA) with five ongoing projects. The United States Agency for International Development (USAID), which had been one of the largest contributors in recent years, saw a significant decline in its commitments by 2025 as a result of the Trump administration’s decisions to pull back on aid. After reaching a peak of USD 885.9 million (NPR 122.38 billion) in 2022 AD (2079 BS), its committed amount fell to USD 188 million (NPR 25.97 billion) in 2024.112 On the multilateral front, the Asian Development Bank (ADB) led the disbursements with USD 305.5 million (NPR 42.20 billion) in 2025 AD (2082 BS), followed by significant contributions from various United Nations Agencies.113
BILATERAL AND MULTILATERAL AID
Grant and Concessional Loans
World Bank Approves USD 257 Million (NPR 35.5 Billion) Loan for Energy and Irrigation
On June 1, 2025, the World Bank approved a USD 257 million (NPR 35.5 billion) concessional loan to Nepal.114 The funding aims to improve electricity supply reliability and irrigation services to boost agricultural productivity. As a result of the aid, the Electricity Sector Development Project will expand the national grid, support renewable energy integration, and strengthen cross-border trade potential. Meanwhile, the Irrigation Modernization Project will rehabilitate existing schemes and increase water efficiency in farming communities. The Government of Nepal expects these interventions to reduce outages, enhance rural connectivity, and improve crop yields, supporting both economic growth and resilience against climate challenges. 115
Nepal to Receive NPR 50.51 Billion (USD 369 Million) Soft Loan from World Bank
On June 18, 2025, the Government of Nepal announced it would receive a soft loan worth NPR 50.51 billion (USD 369 million) from the World Bank after the Cabinet approved the concessional financing to strengthen infrastructure including bridges and strategic road networks.116 The loan carries low interest rates and long repayment terms, making it suitable for supporting largescale development projects. According to the Ministry of Finance, this financing will
help close infrastructure gaps, improve trade corridors, and promote economic growth. However, specific timelines for disbursement and project completion were not provided at the time of the announcement.117
REMITTANCE AND MIGRATION
Surge Witnessed in Remittances and Record Foreign Exchange Reserves
During the fiscal year 2024/25 AD (2081/82 BS), remittance inflows surged by 19.2% to USD 12.64 billion (NPR 1745.25 billion) compared to USD 10.86 billion (NPR 1499.07 billion) during the same review period in FY 2023/24 AD (2080/81 BS).118 This surge was driven by a higher volume of migrant workers, totalling the number of individuals taking first-time approval for foreign employment at 505,957 and those taking approval for renewed entry at 333,309, and a stronger US dollar against the Nepali rupee, with the NPR depreciating by 2.66% against the US dollar.119 This increase greatly contributed to the country's gross foreign exchange reserves, which reached a record NPR 2677.7 billion (USD 19.38 billion), with central bank reserves at NPR 2414.64 billion (USD 17.47 billion) and reserves held by banks and financial institutions at NPR 263.04 billion (USD 1.90 billion).120 As a result, the banking sector's foreign exchange reserves are sufficient to cover prospective merchandise and services imports for about 15.4 months.
Figure 5. Workers' Remittances and Gross Foreign Exchange Reserves
Source: Current Macroeconomic and Financial Situation of Nepal from FY 2019/20 AD (2075/76 BS) to FY 2023/24 AD (2080/81 BS) (first six months data)121
Top Ten Labor Destinations
In FY 2024/25 AD (2081/82 BS), over 505,000 Nepali migrant workers sought employment abroad, which marked a 10% increase from the previous year's figure of over 460,102.122
The Gulf region remained the primary destination for Nepali migrant workers, with notable increases in labor influx to the United Arab Emirates (53.5%) and Kuwait (33.7%). In addition, Romania emerged as a top destination with an increase of migrant workers by 76.2%. Japan was also steady on the list as the top destination with consistent growth of around 78%.123 On the other hand, migration to Malaysia continued to decline, falling by 87.4% in comparison to the previous year.
Table 5. Top 10 Labor Destinations of Nepali Migrant Workers of the Last Three FYs
TRADE STATUS
Foreign Trade Scenario
During FY 2024/25 AD (2081/82 BS), Nepal's total foreign trade increased to NPR 2.08 trillion (USD 15.06 billion) from NPR 1.75 trillion (USD 12.67 billion) in FY 2023/24 AD (2080/81 BS).125 The rise in overall trade was a result
of the growth in both imports and exports. Imports continued to substantially overtake exports, with imports amounting to NPR 1.80 trillion (USD 13.03 billion), while exports amounted to only NPR 277.03 billion (USD 2.01 billion).126
In terms of trading partners, India remained Nepal's largest trading
partner, making up 62.27% of total trade, followed by China with 16.52% and other countries with 21.22%.127 In particular, the total foreign trade with India witnessed a surge of 17.82% compared to the previous FY 2023/24 AD (2080/81 BS), catalyzed by the growing export of soybean oil.128
Figure 6. Total Annual Foreign Trade for the Past Three FYs
Source: Current Macroeconomic and Financial Situation, Annual data for FY 2024/25 AD (2081/82 BS).129
Top Imports and Exports
Continuing the trend in the last year, petroleum products were the leading import commodity accounting for 15.95% of total imports, followed by crude soybean oil (5.99%), transport equipment and vehicle parts (5.33%), machinery and parts (4.56%), and sponge iron (2.70%) during the FY 2024/25 AD (2081/82 BS).130 In terms of exports, the top five commodities were soybean oil (38.55%), polyester yarn and thread (4.90%), woolen carpets (3.89%), zinc sheets (3.65%), and woolen carpets (6.9%) respectively.131 The largest growth in terms of the top imports was in crude soybean
oil (703.31%), while in exports it was soybean oil (11,741.90%).132
On the other hand, gold (23.17%), chemical fertilizer (14.37%), and electrical equipment (10.98%) witnessed the largest decline in imports, while palm oil (61.90%), zinc sheet (14.75%), and juice (11.03%) witnessed a huge decline in exports.133
Balance of Trade
Nepal continued to face a considerable trade deficit this year as well. As presented in Figure 7, in FY 2024/25 AD (2081/82 BS), the trade deficit stood at NPR -1.53 trillion (USD -11.07 billion), compared to NPR -1.44 trillion (USD -10.42 billion)
in the previous FY 2023/24 AD (2080/81 BS).134 The volume of exports significantly increased this year, but it was overtaken by an increase in imports, resulting in a trade deficit again.
Meanwhile, the export-toimport ratio of 15.36% indicated the subpar performance of exports compared to the bulging imports.135 According to the Department of Customs (DoC), Nepal registered a trade deficit with 127 out of its 164 trading partners.136 The share of the trade deficit with India decreased to 55.43% in FY 2024/25 AD (2081/82 BS) from 62.02% in the previous FY 2023/24 AD (2080/82 BS).137 On the other
7. Total Annual Imports, Exports, and Trade Balance of the Last Five Fiscal Years
Source: Current Macroeconomic and Financial Situation, Annual data for FY 2024/25 AD (2081/82 BS).141
hand, the share of the trade deficit with China increased to 22.17% in FY 2024/25 AD (2081/82 BS) from 20.56% in the previous FY 2023/24 AD (2080/81 BS).138 In terms of trade deficit with other countries, there was an increase of 22.40% in FY 2024/25 ad
(2081/82 BS) from 17.42% in the previous FY 2023/24 AD (2080/81 BS).139
Gold/Silver Updates
According to the Federation of Nepal Gold and Silver Dealers’
Association, the price of standard gold (24K) was NPR 2,03,600 (USD 1,474) for 11.66 grams (One Tola) as of the end of August 2025.140 This was the highest price of gold ever recorded in Nepal.
8. Gold Import over the Last Four Fiscal Years (in NPR billion)
Source: Current Macroeconomic and Financial Situation, Annual data for FY 2024/25 AD (2081/82 BS).142
Figure
Figure
Exchange Rate
The Nepali currency depreciated by 2.45% against the US dollar from mid-July 2024 to mid-July 2025.143 The buying exchange rate
Figure 8. Average Selling Rate of USD in NPR over the Last Five Fiscal Years
Source: Current Macroeconomic and Financial Situation, Annual data for FY 2024/25 AD (2081/82 BS).146
for the US dollar was NPR 137.15 in mid-July 2025, compared to NPR 133.31 in mid-July 2024.144 Out of the total foreign exchange reserves, those held by the central bank rose by 30.62%,
reaching NPR 2.42 trillion (USD 17.51 billion) in mid-July 2025, up from NPR 1.85 trillion (USD 13.39 billion) in mid-July 2024.145
Outlook
Based on the latest review period, Nepal's macroeconomic outlook remains stable yet faces distinct opportunities and challenges. Strong remittance inflows and robust foreign exchange reserves, sufficient to cover over 18 months of imports, provide a solid foundation for external sector stability and mitigate risks associated with the significant trade deficit. The accommodative stance of Nepal Rastra Bank’s monetary policy for FY 2025/26 also aims to leverage high liquidity and low inflation to stimulate investment and economic growth. However, persistently modest levels of foreign direct investment signal caution among investors, which may potentially constrain the economy's medium-term growth prospects. Furthermore, although revenue collection has improved, raising public expenditure remains essential to address infrastructure gaps and sustain economic development. Therefore, increasing productivity and export competitiveness will be the key to addressing the trade imbalance and strengthening the economy's long-term resilience.
3 Sectoral Review
Agriculture and Livestock
Nepal’s agriculture and livestock sector faced persistent challenges along with policy progress to rejuvenate the sector in the review period. The quarter was particularly marked by drought, fertilizer shortage, outbreak of lumpy skin disease, and delayed payments to farmers. However, despite such challenges, the market saw a consistent supply of milk and even an oversupply of honey. Furthermore, government subsidies for crops and livestock insurance provided some relief to farmers by covering their losses. In addition, the time-bound action plans to promote the agriculture and livestock sector, as recommended by the High-Level Economic Reform Advisory Commission, pointed to the government’s plans to achieve sustainable sectoral growth in the coming quarters.
PRODUCTION UPDATES
Drought in Madhesh Province Affects Paddy Plantation
On July 23, 2025, the Cabinet declared Madhesh province as a disaster-hit zone due to severe drought.161 The province experienced a severe shortage of rainfall, which lowered groundwater levels and created irrigation water scarcity. As of August 17, 2025, Madhesh recorded the lowest paddy plantation rate among all seven provinces at 86.35%, a 10% decrease as compared to last year.162 The International Center for Integrated Mountain Development (ICIMOD) estimated that Madhesh will produce approximately 400,000-450,000 metric tons less rice this year due to the drought.163 Since Madhesh is Nepal’s largest rice producer and rice is the country’s
Top 3 agricultural commodities imports (based on annual data ending in mid-July 2025)159
Top 4 agricultural commodities exports (based on annual data ending in mid-July 2025)160
Jute goods: NPR 8.22 billion (USD 59.5 million)
Juice: NPR 7.70 billion (USD 55.7 million)
staple food, the drought posed a significant threat to national food security.
Market Faces Honey Surplus
In the current FY 2025/26 AD (2082/83 BS), around 21 tons of honey are unsold in the market compared to around 61 tons in the last fiscal year.164 This is due to weak domestic market demand as consumers are reluctant to buy Nepali honey because of it to its faster crystallization rate caused by higher glucose level. To promote the honey market, Nepal Beekeepers’ Association organized the 6th National Honey Fair in Kathmandu from June 5 to June 7.165 Honey farmers from across the country showcased their products to make consumers aware about the benefits of consuming honey.166
India Lowers Basic Custom Duty on Edible Crude Oil
On May 30, 2025, India lowered basic customs duty on crude edible oil from 20% to 10% to reduce the retail price of refined edible oil.167 Thus, because it has become cheaper for Indian refineries to import crude edible oil now, it is expected that they will import more crude oil and produce more refined edible oil at home. As a result, India is likely to decrease the import of refined edible oil. This will lower the export of refined edible oil from Nepal to India as well. Nepal’s export of refined soybean oil to India alone accounts for 37.8% of the country’s total export value.168 It poses a greater economic risk as Nepal’s export is too concentrated on a single product and a single country
Farmers
Face Chemical Fertilizer Shortage Yet Again
Nepali farmers suffered yet another fertilizer shortage during the paddy plantation season in the monsoon.169 The Government of Nepal provides subsidies on the three most used chemical fertilizers: DAP, Urea and Potash. However, since Nepal does not produce these chemical fertilizers, the Government of Nepal has to procure the fertilizer through a global tender process, a time-consuming process with bureaucratic hurdles.170 An official of the Ministry of Agriculture and Livestock Development even pointed out that it takes 226 days to deliver the fertilizer to farmers due to such bureaucratic hurdles.171 As a result of this, because of the untimely supply of sufficient amount of fertilizers, farmers are forced to buy expensive fertilizers from the market.172
LIVESTOCK UPDATES
Dairy Payment Still Overdue to Farmers
The dairy sector continued to face financial strain during this quarter due to mounting outstanding payments. On June 27, 2025, the government directed agencies to clear approximately NPR 3 billion (USD 21.7 million) owed to dairy farmers before the close of the fiscal year, warning that prolonged delays threatened both production and supply stability.173 However, the problem continued, with farmers reporting significant outstanding dues from private processors. Earlier, on June 9, the Dairy Development Corporation (DDC)
announced plans to liquidate 600 metric tons of surplus stock, half butter and half skimmed milk powder, at adjusted prices.174 The measure was designed to relieve cold-storage pressures but also reflected the magnitude of unpaid obligations as DDC itself owed over NPR 1 billion (USD 7.241 million) to farmers, while private dairies together owed more than NPR 4 billion (USD 28.964).175
Sufficient Milk Supply Received Even During the Off-Season
Milk supply trends took an unexpected turn this season. On June 16, 2025, contrary to the usual off-season decline, output remained buoyant thanks to timely monsoon rains which improved access to green fodder.176 For example, the Lumbini Distribution Centre raised its daily milk collection from 2,500 liters in 2024 to 7,000 liters this year, with surpluses processed into probiotic yogurt, buttermilk, and bulk ghee sold at discounted rates.177
In a bid to ensure such milk production continues, toward the end of the quarter, on August 25, Gorkha’s Veterinary Hospital and Livestock Service Expert Centre announced a subsidy program worth NPR 1.5 million (USD 10,857) to promote milk production for greater selfsufficiency.178 The scheme, aiming to support milk production of up to 300,000 liters in FY 2025/26 AD (2082/83 BS) will provide NPR 5 (USD 0.036) per liter of milk through cooperatives across Gorkha Municipality, Palungtar, and Siranchowk.179
Lumpy Skin Disease Resurfaces
Lumpy Skin Disease (LSD), a viral infection that is characterized by nodules on cattle skin and other body parts, re-emerged as a major challenge this quarter.180
By June 27, Jhapa district alone had recorded more than 6,000 cases and 54 cattle deaths. By July 10, infections had surpassed 10,000, despite the vaccination of 31,600 cattle from a stock of 72,500 doses.181 Unfortunately, the problem was not confined to Jhapa alone. Koshi Province reported 139 cattle deaths in a single week by July 16.182 The problem extended into July, with 34 LSD cases reported in Nawalparasi on July 17, affecting several local municipalities. In response, Bagmati Province launched a week-long vaccination campaign beginning on August 16, and Chitwan authorities reported vaccinating 6,600 animals by August 27.183
The spread underscored the persistent nature of the disease and the burden it places on smallholder cattle farmers.
GOVERNMENT PLAN UPDATES
Stakeholders Gather to Strengthen the Dairy Sector
On August 11, 2025, under CGIAR’s Sustainable Animal and Aquatic Foods (SAAF) Science Program, more than 50 stakeholders, including researchers, government agencies, cooperatives, and private companies, gathered in Kathmandu to co-develop a Theory of Change for sustainable dairy value-chain development.184 The plan envisions raising dairy cattle productivity by 50% and
buffalo productivity by 30% by 2035 through a mix of genomic tools, climate-resilient practices, and digital dairy services. Similarly, earlier in the quarter, on July 15, the Department of Livestock Services and Adventist Development and Relief Agency (ADRA) Nepal co-hosted a national workshop in Lalitpur, which brought together senior officials from Ministry of Agriculture and Livestock Development (MoALD), Department of Livestock Services (DLS), Nepal Agricultural Research Council (NARC), National Dairy Development Board (NDDB), Dairy Development Corporation (DDC), cooperatives, and private dairies.185 The meeting underscored the importance of standardizing milk quality, scaling value-chain investments, and accelerating innovation to safeguard the sector’s competitiveness in the decade ahead.
Disproportionate Insurance Benefits for Livestock than for Broader Agriculture
On June 2, 2025, the government confirmed that NPR 1.6 billion (USD11.585 million) was disbursed in premium subsidies for agriculture and livestock insurance in FY 2080/81 BS (2023/24 AD), providing critical relief to farmers affected by disease outbreaks.186 However, as of August 20, 99.9% of agricultural insurance policies only covered livestock, leaving crop farmers largely excluded from the scheme.187 The livestock loss is easier to quantify and assess relative to crop loss. The data pointed to a system where livestock producers benefit disproportionately, while
broader agricultural risks remain underinsured. The Insurance Board has issued directives requiring non-life insurers to expand coverage for crops, livestock, and poultry with subsidies ranging from 50% to 90%.188 Yet uptake has remained slow, particularly among crop farmers.
Government Releases TimeBound Action Plan for Various Sectors Including Agriculture
On May 23, 2025, the Government of Nepal released an action plan based on recommendations of the High-Level Economic Reforms Advisory Commission, an entity created by the government to provide suggestions on to the government to restructure the economy and boost economic activities.189 The plan, which includes a total of 408 action items, had 37 items that focused on the agriculture sector with clear specification about what needs to be done, which government body is responsible for implementation and facilitation, the deadline, and the envisioned outcome. Key initiatives within the agriculture sector included allowing foreign investment in agriculture, providing agricultural subsidies through local authorities, issuing credit cards to farmers, and increasing customs fees on imported agricultural goods within one year. Additionally, according to the plan, within two years, the government aims to establish legal provisions for contract farming and regulate agricultural markets and, within three years, farmer welfare funds will be created at the local level to provide subsidized loans to farmers.
KEY DEVELOPMENTS
Monetary Policy Attempts to Ease Agriculture Loans
On July 11, 2025, Nepal Rastra Bank (NRB), released the Monetary Policy for FY 2025/26 AD (2082/83 BS).190 Among its various provisions, this year’s policy allows Banks and Financial Institutions (BFIs) to self-evaluate
Outlook
collaterals and issue loans up to NPR 1 million (USD 7,241) to smallscale agriculture businesses. The policy also mentions that loan processing will be simplified for such businesses, but does not specify how that will take place. Besides this, according to the policy, provisions will be made to issue loans to produce agricultural goods belonging to the crops/species
recommended by the Nepal Agriculture Research Council (NARC). Such crops/species have higher yield, are less prone to disease and more profitable to farmers. It will also facilitate the practical implementation of NARC’s research.
The persistent challenges of the agriculture and livestock sector are likely to create short-term production shocks this year. The drought and fertilizer shortage during the monsoon season, a peak time for paddy plantation, will lower rice production and will likely increase its price. Similarly, the outbreak of lumpy skin disease in cattle might affect the production of animal-based products such as milk and meat. Most of the livestock producers are insured while a significant portion of crop farmers are yet to be insured. On the other hand, the honey surplus and the vulnerability of refined edible oil exporters show the need for market diversification. Producers should not only depend on the domestic or Indian market. Looking forward, the time-bound action plan of the government on agriculture will strengthen the sector if implemented effectively.
Education
In the review period from June to August 2025, the education sector in Nepal experienced various shifts, spanning legislative reforms, examination outcomes, scholarship initiatives, and challenges in teacher recruitment. Amidst this, the Parliamentary Committee’s endorsement of the School Education Bill represented a step in defining the regulatory framework for both public and private schools. Simultaneously, improvements in Secondary Education Examination (SEE) and Grade 12 results indicated progress in student performance, even as structural challenges such as shortages of qualified subject teachers in rural areas continued to affect learning outcomes.
Parliamentary Committee Endorses Nepal’s School Education Bill Amid Opposition
Nearly two years after the registration of the bill, the Parliamentary Education, Health and Information Technology Committee endorsed the School Education Bill on August 21, 2025 amid reservation from opposition parties.196 The CPN (Maoist Centre), Rastriya Swatantra Party (RSP), and Rastriya Prajatantra Party (RPP) registered dissent over provisions related to Early Childhood Development (ECD) facilitators and free hostel facilities for scholarship students.197 The bill aims to provide free and compulsory education up to Grade 8, strengthen local government authority in school management, and define basic (up to Grade 8) and secondary (Grades 9–12) education levels. It revised teacher qualifications and recruitment standards,
mandated scholarships in private schools (10–15%) for merit-based and disadvantaged students, and required some residential schools to offer free hostel facilities. The bill also set the medium of instruction for core subjects and made two years of Early Childhood Development (ECD) compulsory, including free hostel facilities for 3% of disadvantaged scholarship students.198 It redefines basic education as ECD to Grade 8 and secondary education as Grades 9 to 12, allows schools to teach in Nepali, mother tongue, or English. Private schools can continue to operate under the Company Act, while new foreignaffiliated schools are barred from registration, and the gradual conversion of private schools into nonprofits remains a point of contention.199
In addition to this, the bill sets guidelines for teacher
recruitment, with 60% of positions filled internal competition and 40% through open competition, and mandates a teaching license while removing the requirement for a degree in education.200 In response to the endorsement of the bill, private school operators have protested provisions on scholarships and nonprofit conversion, but the bill is expected to be tabled in the House of Representatives for final approval.201
SEE Results Improve in Comparison to Last Year
The National Examination Board (NEB) published the Secondary Education Examination (SEE) results on June 27, 2025, with 61.81% of 438,896 examinees graded (271,299 students), up from 47.87% in 2024.202 Exams were held from March 20 to April 1, 2025. The Board reported that there were 167,597 non-graded
students, referring to students who would have to retake their SEE exams due to various reasons. Grade distribution skewed higher than last year, with 48,177 students in the GPA 3.6–4.0 bracket. 203 NEB also cancelled 126 examinations. Mathematics had the most NG students (128,215), followed by English, Nepali, Social Studies and Science.204 Bagmati Province performed the best and had the lowest non-graded share (about 17% non-graded), while Madhesh Province recorded the highest share (about 71% non-graded).205
NEB officials linked the improvement in SEE results in comparison to last year to improved coordination across government tiers. However, education analysts questioned whether classroom conditions improved enough to explain the jump in pass rates.206 They pointed to shortage of education budget leading to vacant positions of subject teachers especially for Mathematics, English, and Science as well with highest failure rates in these subjects.207 Some commentary also linked the unusual jump to the April teachers’ protests, which delayed SEE answer-sheet evaluation, creating concerns about process integrity. 208
Rise in Grade 12 Board Examination Results
On August 4, 2025, NEB published the results of the Grade 12 board exams held from May 4 to May 16, 2025. A total of 61.17% students of regular category passed (242,465 of 396,347), while 36.49% students of partial category, meaning students who
appeared for supplementary exams (114,640 out of 41,840) passed; while 153,882 students were non-graded (NG).209 Following the results, gradeimprovement exams were scheduled for September 13–14, 2025 to improve their grades if they received an "NG" (Not Graded) in a subject. The Board noted that most failures were in English, Accountancy, Social Studies, and Nepali. Results were supposed to be out by July 31, 2025 under the academic calendar but were delayed by a 29-day teacher’s protest that started on April 2, 2025.210 Compared to 2024, when 52.16% of Grade 12 examinees met the minimum GPA threshold, the 2025 pass rate rose by roughly 9%.211 The grade distribution showed that 13,502 students scored GPA 3.61–4.00, 55,896 scored GPA 3.21–3.60, 94,268 scored GPA 2.81–3.20, 69,812 scored GPA 2.41–2.80, 8,964 scored GPA 2.01–2.40, and 23 scored GPA 1.61–2.00. However, there were 153,882 non-graded students.212
Kathmandu University Expands Provincial Full-Tuition Scholarships
Kathmandu University (KU) expanded its provincial scholarship program, effective from this academic session, offering 100% tuition for students who secured the highest scores in Grade 12 across all seven provinces.213 As a result of the expansion, 42 students (six students from each province) were chosen as beneficiaries of the scholarship program for this intake.214 However, notably, the
award only waives tuition fees due to which students must cover other university fees such as registration, development, security deposit, health insurance as per KU regulations.215 The initiative was led by the ViceChancellor and implemented through the Registrar’s Office along with School of Science and School of Engineering with an aim to partner with various provincial ministries such as the Ministry of Social Development (MoSD) in Koshi, Bagmati, Lumbini, Karnali, and Sudurpashchim; the Ministry of Education and Culture in Madhesh; and the Ministry of Social Development, Youth and Sports in Gandaki.216
Sudurpashchim Declared a Literate Province
On June 26, 2025, Sudurpashchim Province became the fourth province to be declared a literate province after meeting the national threshold of over 95% literacy among people aged 15-60. The announcement was made at a public event in Dhangadhi led by Chief Minister Kamal Bahadur Shah and the Ministry of Social Development (MoSD).217 Provincial officials said 96.19% of the 1.69 million people in the 15-60 age group are now literate, meeting eligibility rules that certify a person as literate upon fulfilling at least six of twelve benchmarks.218 The benchmarks are, for example, being able to read and write letters/alphabets in Nepali or one’s mother tongue, write and read one’s own and family members’ names and ages, write digits 0–9 and count 1–100, etc. The declaration followed a stepwise campaign in which
wards, municipalities, and then districts were certified before the province-wide announcement.
Shortage of Subject Teachers in Rural Schools Continues
Rural schools across several districts such as Gulmi, Bardiya, and Kapilvastu continued to struggle to fill vacancies for subject teachers in the past quarter, especially in mathematics,
Outlook
science, and English.219 Despite repeatedly publishing vacancy announcements, some as many as 15 times, municipalities and schools failed to attract applicants. As a result, lowerlevel teachers were assigned to teach higher classes, increasing their workload and affecting the quality of education.220 Education officials noted that the crisis stems from a lack of interest in teaching careers
among those trained in technical subjects. Most graduates in math and science pursue fields like medicine, engineering, or IT, while others migrate abroad. Those who remain often avoid rural postings, leaving schools with no qualified candidates. This has led to declining student performance, with mathematics seeing the highest failure rates in national examinations.221
Looking ahead, the trajectory of Nepal’s education sector will depend heavily on the effective implementation of the School Education Bill, particularly its provisions on scholarships, teacher recruitment, and the governance of private schools. However, the final approval of the bill is still pending, and its full impact will rely on how well the provisions are translated into practice at both local and provincial levels. Notably, Sudurpashchim Province became the fourth province to be declared literate, with over 95% of people aged 15–60 meeting literacy benchmarks.
Addressing persistent shortages of subject teachers in rural areas; especially in mathematics, science, and English will also be critical to sustaining recent improvements witnessed in student outcomes, such as higher SEE and Grade 12 pass rates. Beyond staffing, ongoing monitoring and evaluation of these reforms, coupled with strengthened coordination between federal and provincial authorities, will be essential to ensure equitable access to quality education, improve retention and literacy rates, and support the development of human capital across all provinces. In the coming years, the sector’s progress will hinge not only on legislative measures but also on practical interventions that address infrastructure gaps, teacher capacity, and inclusive policies for disadvantaged and rural students.
Energy and Environment
As usual, the monsoon season brought its expected challenges, but this quarter’s severe events stood out with happenings driven not by rainfall but by climate change. In particular, the devastating Bhotekoshi flood caused by the sudden outburst of a glacial lake highlighted Nepal’s increasing vulnerability to climate risks beyond typical weather patterns. In response, Nepal secured a major international grant to reduce glacial flood risks and improve disaster preparedness. Despite the setbacks witnessed in the quarter, the energy and environment sectors made notable progress, with new hydropower projects boosting electricity exports to India and Bangladesh, and rising investments in solar power both by the army and private companies. Furthermore, the issuance of Nepal’s first-ever public green energy bond highlighted efforts to finance sustainable growth.
ENVIRONMENT
Nepal Secures a USD 36.1 Million (NPR 4.99 Billion) Grant to Reduce Glacial Lake Outburst Risks
Nepal will receive USD 36.1 million (NPR 4.99 billion) in grants from the Green Climate Fund (GCF) to lower the water levels of four highrisk glacial lakes (Thulagi, Lower Barun, Lumding Tsho, and Hongu 2).235 The 42nd board meeting of GCF held on July 1, 2025 in Port Moresby, Papua New Guinea, approved Nepal’s project titled “Protecting Lives and Property from Climate-Induced Landslides and Glacial Lake Outburst Floods in Himalayan River Basins.” The project, developed over seven years, is expected to serve as
a model for mitigating glacial lake outburst floods (GLOFs).236
Additionally, the Government of Nepal, the United Nations Development Programme (UNDP), and the Independent Power Producers’ Association of Nepal (IPPAN) committed USD 13.8 million (NPR 1.91 billion) in co-financing. The project will be led by Nepal’s Department of Hydrology and Meteorology and UNDP, benefiting about 2.2 million people in the Koshi and Gandaki river basins. Lowering the water levels of four highrisk glacial lakes, expanding early warning systems, planting over 150 hectares of riverside forest for natural protection, and enhancing disaster preparedness and climate resilience are key activities under this project.237
Bhotekoshi Flood Wreaks Havoc
On July 8, 2025, the flash flood that entered the Bhotekoshi River in Rasuwa through the Lhende river claimed nine lives and 19 went missing. It damaged key infrastructures like Friendship (Miteri) Bridge, a key trade route that connected Nepal and China, and various hydropower projects, suspending more than 200 MW of electricity production.238 According to two separate reports by the Department of Hydrology and Meteorology and the International Centre for Integrated Mountain Development (ICIMOD), an outburst of a previously unnoticed supraglacial lake, located in Tibet above the Rasuwagadhi border point, was responsible for the devastating flood on the Bhotekoshi River.239 In recent years, the incidents of Glacial Lake Outburst Flood (GLOF) have soared, which highlights Nepal’s vulnerability amidst the increasing climate crisis.
NIFRA Issues Green Energy Bond
On June 10, 2025, the Nepal Infrastructure Bank (NIFRA), assisted by Korea International Cooperation Agency (KOICA) and Global Green Growth Institute (GGGI), issued Nepal’s first public green bond - an NPR 5 billion (USD 36.19 million) Green Energy Bond.240 The bond, approved by the Securities Board of Nepal (SEBON) has a 6% annual interest rate and maturity of seven years. It will be spent to support hydropower projects with a production capacity of less than 25 MW and solar
energy development projects, particularly those that ensure environmental and climate benefits. The bond is divided into two segments, where NPR 2 billion (USD 14.48 million) will be contributed by the general public, while the remaining NPR 3 billion (USD 21.71 million) will be funded by private investors.241
HYDROPOWER
New Hydropower Projects Join the National Grid
In the midst of expanded hydropower development in the past few years, this quarter saw the further strengthening of grid capacity in Nepal. On July 3, 2025, the Rastriya Prasaran Grid Company Limited (RPGCL) signed an agreement with five hydropower developers to integrate an additional 607 MW into the national grid.242 These projects include the integration of the 440 MW Tila-91 project and other projects in Bajhang, Taplejung, and Gorkha, supported by dedicated high-voltage transmission lines. Besides this, the Rele Khola Hydropower Project in Myagdi was also connected to the grid via the Kali Gandaki Corridor in June.243
RENEWABLE ENERGY
Nepal Expands Solar Footprint Avenues
The review period, from June to August 2025, saw various entities in Nepal accelerating their shift towards solar energy as part of a broader strategy to diversify beyond hydropower. As of August 2025, survey licenses were issued for 96 solar projects with a combined capacity of 2,089.49 MW, while construction
licenses have been granted to 11 projects totaling 74.4 MW, indicating growing interest across institutional and private actors.244 Within this, a national solar initiative was put forward by the government that aims to add 960 MW to the grid, with 170 MW already under contract across eight companies.245 On the other hand, for the first time, the Nepali Army entered the energy sector with plans to develop three solar projects totaling 23.5 MW in Syangja.246 Developed through the Army Welfare Fund, these plants (5 MW, 10 MW, and 8.5 MW) received survey licenses in the past quarter and are preparing for power purchase agreements (PPA) and further regulatory approvals. Once the PPA is signed, construction is expected to move forward at full speed. This venture is part of a broader diversification strategy by the Army Welfare Fund, which already manages hotels, agriculture farms, and hydropower assets. Meanwhile, private sector engagement also gained pace. Bhatbhateni Supermarket partnered with Renew Holdings to install 12.75 MW of solar power by utilizing the rooftops and vacant spaces of its rooftop across its 27 stores nationwide.247 It also announced plans to set up 51 stores within the next five years, with a focus on using renewable energy in all its structures.
EVs Make Up 73% of FourWheeler Imports
Nepal’s transition to electric mobility reached a major milestone, with electric vehicles (EVs) accounting for 73% of all four-wheeled passenger vehicle imports in FY 2024/25
AD (2081/82 BS).248 A total of 16,701 EVs, primarily from China, entered the country, valued at NPR 41.23 billion (USD 298.56 million). This represented a significant increase from the 236 units imported five years ago. The shift began modestly, with the government’s first EV purchase in 2017, but has since gained strong momentum. Today, over 50 companies are importing EVs into Nepal, meeting demand from private buyers, institutions, and increasingly, public transport operators.249
NON-RENEWABLE ENERGY
Nepal Oil Corporation (NOC) Initiates Work on Amlekhgunj–Lothar Petroleum Pipeline
Following a bilateral agreement signed between Nepal and India, the Nepal Oil Corporation (NOC) commenced construction of the 62-kilometer Amlekhgunj-Lothar petroleum pipeline in early August, a major step towards improving the country’s fuel transport infrastructure.250 The project, developed in partnership with Indian Oil Corporation (IOC), will replace fuel tanker transport with a high-capacity underground pipeline, significantly cutting costs, time, and theft risks. The pipeline will extend from NOC’s Amlekhgunj facilities in Bara to a new greenfield terminal in Lothar, Chitwan, where a large fuel storage complex is being built on land acquired in 2016. With a total storage capacity of 91,900 kiloliters, the site will accommodate petrol, diesel, kerosene, aviation fuel, and trans mix tanks.251 Under a businessto-business agreement, IOC will finance pipeline construction while NOC covers terminal
development. The pipeline is expected to transport fuel at a rate of 273 kiloliters per hour and be completed within 54 months.
PLANS AND PROGRAMS
Nepal’s Hydropower Sector Shaken by Budget Shift to ‘Take-and-Pay’
In early June 2025, Nepal’s energy sector was thrown into turmoil following the announcement of a new budget provision of FY 2025/26 AD (2082/83 BS), mandating that future power purchase agreements (PPAs) for run-of-river hydropower projects be based on a take-and-pay model.252 Unlike the previously practiced take-or-pay system, where the Nepal Electricity Authority (NEA) was obliged to buy all electricity once a PPA was signed regardless of whether the NEA used the power or not, the new provision allows NEA to pay only for the electricity it uses.253 This shift alarmed private power producers, who warned that the provision jeopardizes over 300 projects representing around 17,000 MW of capacity and risks over NPR 66.22 billion (USD 479.02 million) already invested. With no alternative buyers currently allowed and limited export mechanisms in place, producers fear energy waste and financial losses. Following protests, the Energy Ministry acknowledged the policy as a mistake and committed to correcting it. But on June 17, the finance minister confirmed the provision would remain, deepening uncertainty across the sector.254
Nepal Opens Door for Private Sector to Trade Electricity
On June 19, 2025, Nepal’s
Electricity Regulatory Commission (ERC) approved a draft directive called ‘Open Access Directive,’ which opened the country’s electricity trading system to private sector participation.255 The move aimed to break the Nepal Electricity Authority’s (NEA) monopoly by allowing private producers, large consumers, and licensed traders to buy and sell electricity independently, both domestically and across borders. The directive set a minimum transaction volume of 5 MW for domestic use and 10 MW for cross-border trade, and outlined infrastructure usage charges for using NEA’s grid. It further noted that Captive plants above 1 MW and consumers connected to 33 kV or higher lines will be eligible.256 The draft also defined shortterm, medium-term, and longterm open access, with NEA’s System Operation Department designated as the nodal agency to manage these operations. The directive will be finalized after public consultation and detailed procedures, including metering and settlement codes, will be issued within six months.257
Nepal marked a significant milestone in its energy journey in FY 2024/25 AD (2081/82 BS), becoming a net exporter of electricity by capitalizing on seasonal hydropower surplus and strengthened cross-border energy partnerships.258 For the first time, electricity exports outpaced imports, as shown in Figure 9 generating NPR 17.45
billion (USD 126.35 million) in revenue including NPR 17.19 billion (USD 124.42 million) from India and NPR 266.6 million (USD
1.93 million) from Bangladesh. This shift not only underscored improved domestic generation capacity but also highlighted
the country's growing role in the regional power market.
Source: Nepal Electricity Authority259
Outlook
In this quarter, Nepal demonstrated notable progress in the energy and environment sectors, underpinned by a firm commitment to clean energy through both ongoing and upcoming projects. Yet, as a nation on the frontlines of climate vulnerability, the risk of climate-induced disasters threatens to undermine these advancements. Thus, the contribution promised by the Green Climate Fund can greatly help Nepal to prevent these climatic adversaries. Nepal should seek more of these funds from the international community to combat climate disasters like the recent Bhotekoshi flood and drought in Madhesh Province. Despite the upsurge in demand of electric vehicles, the Nepal’s dependence on non-renewable energy remains unshaken resulting in the further expansion of petroleum pipeline. But Nepal’s stands firm in its commitment to diversify the energy sector with considerable increase in investment in solar energy. The growing participation of the private sector has boosted investment, increased energy production, expanded opportunities for exports and has placed Nepal as the net energy exporting country. Moving forward, building resilience and enhancing adaptation will be critical, alongside regulatory and policy reforms that can accelerate sustainable growth in the sector.
Import (NPR Billion) Export (NPR Billion)
Figure 9. Nepal's Electricity Trade Volume Over the Past Four Years
Health
From June 1 to August 31, 2025, Nepal’s health sector recorded notable achievements while facing persistent risks, like the previous quarter. The World Health Organization (WHO) confirmed the elimination of rubella as a public health problem in Nepal, and the Human Papillomavirus (HPV) vaccination campaign conducted by WHO, UNICEF, and Gavi, with support from the Government of Nepal, reached 1.46 million girls nationwide, strengthening long-term disease prevention. Meanwhile, health system modernization advanced with the introduction of an Electronic Medical Record (EMR) system at the Armed Police Force (APF) Hospital, while a high-level dialogue between WHO and the Ministry of Health and Population (MoHP) set the path for Primary Health Care (PHC) reform. Gandaki Province further prioritized health by allocating 10% of its budget to build a provincial medical hub. However, risks persisted, with Nepal recording its first COVID-19 death in more than two years and a World Bank study identifying air pollution as the country’s top health risk.
PLANS
AND PROGRAMS
High Level Dialogue Sets Path for Primary Health Care Reform in Nepal
The World Health Organization (WHO) and the Ministry of Health and Population (MOHP) jointly convened a High-Level Dialogue on June 19, 2025, to address challenges and opportunities in strengthening Primary Health Care (PHC).266 The session, with participants from the government, civil society,
development partners, and academia, identified key areas for reform, including improving accessibility, adapting PHC strategies to emerging diseases, and prioritizing preventative care and community-based services for non-communicable diseases.267 Participants concluded the dialogue by committing to the development of accessible, equitable, and resilient PHC in Nepal, establishing a foundation for future reforms based on identified challenges and opportunities.268
Gandaki Province Sets Sights on Becoming Nepal’s Premier Medical Hub
During the inauguration of the Gorkha Narayani Polyclinic Institute (NPI) Hospital at the district headquarters of Gorkha District, Chief Minister Surendra Pandey shared a vision for developing Gandaki Province as a premier medical hub.269 Establishment of the institution is further underscored with a higher priority set by the province on healthcare, allocating 17.2% of the
overall budget for development of the health sector in Fiscal Year 2082/83 BS (2025/26 AD), as opposed to 16.68% in FY 2081/82 BS (2024/25 AD).270 271 This health care development is expected to be achieved through the creation of employment opportunities in the health sector, particularly targeting specialist doctors, nurses, and health workers to lower out-migration of health professionals by ensuring sustainable employment generation.272 The government has also worked with private companies to improve medical infrastructure and services.273 The government have also been supporting sustainable healthcare by development of green facilities, natural wellness center and eco-friendly clinics, assisting in growth of health tourism in the province through creation of jobs and supporting local economy.274
HEALTH RISKS
Nepal Records First COVID-19 Death in More Than Two Years
On June 25, 2025, Nepal reported its first COVID-19 fatality since April 2023.275 According to the MoHP, the deceased was a 39-year-old woman with underlying health conditions who succumbed to complications caused by an Omicron subvariant.276 While Nepal had largely controlled COVID-19 transmissions since 2023, the emergence of new variants led to sporadic cases.277 Health officials emphasized the importance of continued vigilance, testing, and vaccination, particularly among vulnerable populations.278 Furthermore, health workers emphasize that they have asked
infected people at border entry points to stay in isolation for five days before returning home.279 Hospitals were also directed to strengthen preparedness to manage potential outbreaks.280 Meanwhile, experts highlighted the need for regular genome sequencing to track evolving variants and for citizens to maintain preventive measures as The case served as a reminder of COVID-19’s lingering threat despite overall improvements in Nepal’s pandemic response.
Air Pollution Remains Nepal’s Top Health Risk, Resulting in 26,000 Deaths Annually
The World Bank, in its report released in June 2025 titled ‘Towards Clean Air in Nepal: Benefits, Pollution Sources, and Solutions,’ quoted that air pollution is the leading cause of premature deaths and disability in Nepal.281 The study found that air pollutionrelated health risks reduced life expectancy by 3.4 years and caused approximately 26,000 premature deaths annually.282 A study was conducted utilizing a comprehensive set of data, including air quality data from the national air quality monitoring network, emission inventory, administrative energy statistics, technology effectiveness and costing inventory, and employed advanced atmospheric, economic, and effectiveness modeling. Air pollution surpassed other risk factors such as malnutrition and poor water quality, highlighting the urgent need for policy interventions.283 Here, the report particularly identified vehicle emissions, industrial activity, open burning, and household solid fuel use as
key contributors to high pollution levels.284 Furthermore, it also recommended investments in cleaner technologies, better enforcement of environmental standards, and integrated air quality management.285 In the end, the Government of Nepal was urged to prioritize pollution control policies as part of its health and environmental strategy.286
KEY DEVELOPMENTS
Nepal Eliminates Rubella as a Public Health Problem
The WHO confirmed that Nepal successfully eliminated rubella as a public health problem.287 This milestone made Nepal the sixth out of 11 countries of the WHO South-East Asia region to achieve rubella elimination.288 The confirmation followed verification by the WHO Regional Verification Commission after years of sustained immunization efforts and surveillance.289 The Government of Nepal, with technical and financial support from WHO and Gavi, the Vaccine Alliance, a public-private partnership and health organization that focuses on increasing access to immunization in low-income countries, implemented nationwide measles-rubella immunization campaigns and integrated rubella vaccines into the routine immunization system in August, 2025.290 The elimination is expected to significantly reduce child mortality and morbidity, particularly congenital rubella syndrome, which causes lifelong disabilities.291 This success also aligns with Nepal’s broader commitments to achieve Universal Health Coverage
and meet global immunization targets.292
HPV Vaccination Campaign Reaches 1.46 Million Girls
Nepal completed a milestone Human Papillomavirus (HPV) vaccination campaign on June 18, 2025, reaching over 1.46 million girls between 10 and 14 years of age.293 Conducted by MoHP, with support from WHO and Gavi, the Vaccine Alliance, the campaign achieved 94% administrative coverage nationwide.294 The vaccines were administered across all provinces through schools, health facilities, and community
Outlook
outreach programs.295 Earlier in 2023, the programme included girls aged between 10 and 14. 296The initiative aimed to prevent cervical cancer, one of the leading causes of cancer-related deaths among women in Nepal despite its relative preventability as compared to other types of cancers.297
WHO Hands Over Electronic Medical Record
(EMR)
System to APF Hospital
On July 4, 2025, the WHO handed over an Electronic Medical Record (EMR) system to the Armed Police Force (APF) Hospital in Kathmandu.298 The
system was designed to improve patient record-keeping, enhance data security, and strengthen the hospital’s capacity to deliver efficient healthcare services.299 According to WHO, the EMR system will help reduce errors, enable faster access to patient histories, and improve decisionmaking in clinical care.300 The initiative was part of a larger digital health strategy, aiming to modernize healthcare delivery in line with Nepal’s Universal Health Coverage goals. Officials confirmed that similar systems are planned for gradual rollout in other healthcare facilities.301
This quarter, the health sector showed remarkable progress, characterized by reforms including the WHO-MoHP dialogue on Primary Health Care and Gandaki Province’s plan to become a premier medical hub, portraying accessible, resilient, and green health systems. Alongside milestone achievements, including the elimination of rubella, the HPV vaccination campaign and the rollout of digital health system present long-term gains in the field of public health. However, despite significant progress noted in the quarter, the emergence of the first COVID-19 death in over two years and implications of air pollution on lowered life expectancy by three years signal the need for sustained vigilance, preventive strategies, and policy response to ensure the protection and scaling of Nepal’s health gains.
Information and Communication Technology
During the June–August 2025 quarter, Nepal’s ICT sector reflected a growing recognition by the government of the importance of the digital landscape and the need to regulate it effectively. While the momentum of digital expansion remained strong, the focus this quarter shifted toward building a safer and more accountable ecosystem. Regulators and policymakers introduced key measures around cyber security, Artificial Intelligence (AI), online fraud prevention, and digital payments, signaling a more mature approach to digital governance. Efforts such as strengthening oversight by the Nepal Rastra Bank (NRB), introducing new IT and Cyber Security legislation, and tightening controls on digital transactions also align with Nepal’s broader goal of meeting international standards and moving closer to exiting the Financial Action Task Force (FATF) grey list. Overall, the quarter highlighted a period of consolidation and regulatory action aimed at ensuring that the country’s rapid digital growth is both secure and sustainable.
Number of QRBased Payments (Mid-July 2025–Mid-August 2025)309
Figure 10. Market Share of Telephone Operators (based on SIM subscriptions)
Figure 11. Market Share of Internet Service Providers (ISPs) in Nepal
Nepal Achieves Milestone in Cross-Border Digital Payments
In a significant advancement for Nepal's digital economy, Fonepay announced, on July 14, 2025, that the number of transactions by Indian users making payments through QR codes in Nepal surpassed one million since the introduction of the facility, amounting to payments of over NPR 2 billion (USD 14.48 million).315 The facility to Indian users was first introduced on March 1, 2024 after Fonepay, Nepal’s leading Payment Service
Operator (PSO), and NPCI International Payments Ltd (NIPL), the international arm of the National Payments Corporation of India, decided in September316 to launch the first QR code-based payment solution between Nepal and India.317 However, while Indian visitors have been able to avail this facility for more than one and a half years, Nepali users still lack reciprocal access in India due to disputes over commission structures and uncertainty regarding who would bear the service costs
for Nepali banks facilitating the payments.318 This highlights an asymmetry in cross-border digital transactions.
Online Fraud Cases Rise by 307%
Nepal recorded a sharp rise in online fraud cases in FY 2081/82 BS (2024/25 AD), with 675 cases filed, marking a 307% increase compared to FY 2080/81 BS (2023/24 AD) when 166 cases were registered.319 While losses worth NPR 347.2 million (USD 2.51 million) were reportedly incurred due to fraud cases in FY
2080/81 BS (2023/24 AD), fraud in FY 2081/82 BS (2024/25 AD) amounted to NPR 835.9 million (USD 6.05 million). This reflected a staggering 141% increase in the total amount scammed.320 Officials cautioned that these figures only accounted for reported cases, suggesting the real number of incidents could be much higher. As a result of the report, according to police data, 220 individuals were arrested in connection with online fraud last year, including 33 foreign nationals.321 This rise in fraud cases was attributed by the police to the exploitation of platforms such as mobile banking, digital wallets, online shopping, and social media.322 On the other hand, experts attributed the rise in cases to factors like limited public knowledge and awareness as well.323
E-Commerce Platforms Fail to Comply with Nepal’s New Law
The Electronic Commerce Act, 2081 (2025) came into enforcement on April 15, 2025 and provided online businesses three month, till mid-July, to register in order to bring domestic and international businesses under regulatory oversight.324 However, by the July 18 deadline under the E-commerce Act, 2025, only 950 e-commerce businesses across Nepal registered with the department of Commerce, Supplies, and Consumer Protection, far fewer than the department had expected given the high volume of digital transactions.325 The Act requires registration for all online businesses buying and selling of goods and aims to address consumer issues such as receiving wrong or
damaged products, refund difficulties, and online fraud by bringing online businesses under formal regulatory oversight, strengthening consumer refund rights, ensuring proper mechanisms for receiving and resolving customer complaints, and improving transparency.326 Even intermediary platforms are required to sign formal contracts with their vendors.327 The law also applies to sales conducted through Facebook, Instagram, TikTok, WhatsApp, and similar platforms.328 The E-commerce Act also extends to foreign platforms, mandating a local office or official representative to sell goods to Nepali consumers.329 However, no international e-commerce company registered during the designated period, making purchases from Amazon and similar websites technically illegal under the law.330 According to the department, e-commerce businesses operating without registration face fines of up to NPR 200,000 (USD 1,447.81).331
Following the July 18 notice, the Department has clarified that businesses may still register even after the initial deadline.332
Government of Nepal Bans Telegram
On July 18, 2025, the Government of Nepal officially banned the popular messaging app Telegram, citing a sharp increase in online fraud and money laundering activities conducted via the platform.333 The move occurred on the basis of the National Coordination Committee for the Prevention of Money Laundering and Financing of Terrorist Activities under the Office of the Prime Minister and Council of Ministers initiating
the ban process and instructing the Ministry of Communication and Information Technology (MoCIT) to ban the app. Following a formal letter sent to MoCIT, the entity instructed the Nepal Telecommunications Authority (NTA), the country’s telecom regulator, to direct all Internet Service Providers (ISPs) to immediately block access to Telegram nationwide.334 The ban follows concerns raised by Nepal Police and other security agencies over regulation challenges and the platform’s exploitation for illegal purposes.335 The decision also follows Nepal’s inclusion on the FATF grey list and was made five months after Nepal was re-listed in the grey list.336
NRB Issues Guidelines to Strengthen Monitoring of Online Transactions
In February 2025, for the second time, Nepal was listed under ‘Jurisdictions under Increased Monitoring’ (commonly known as the grey list) by the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog. As a result, on August 11, 2025, NRB issued the “Guidelines on Targeted Financial Sanctions for Payment Service Providers” to strengthen oversight of online financial transactions.337 The Targeted Financial Sanctions (TFS) is designed to block designated parties from funding terrorism, supporting activities that undermine international security, or financing the development of weapons of mass destruction.338 This step is part of the nation's efforts toward full compliance with international anti-money laundering standards
and exiting the FATF grey list.339 Under the new guidelines, the central bank delegated the responsibility of monitoring suspicious transactions to Payment Service Providers (PSPs), such as wallet companies like Khalti, eSewa, and MyPay.340
As per the guidelines, these providers must now regularly screen transactions against the United Nations’ integrated sanction lists and individuals flagged by the Ministry of Home Affairs (MoHA). Additionally, PSPs are now required to halt suspicious transactions, such as transactions that appear to involve funds from illegal sources, evade legal reporting, or lack a legitimate purpose, within 24 hours of notification and report them to the Financial Information Unit of NRB. Failure to comply may lead to the cancellation of operational licenses and fines.341
Council of Ministers Approve National AI Policy
The Council of Ministers formally approved the National Artificial Intelligence (AI) Policy, 2025 during its cabinet meeting on August 11, 2025.342 This policy envisions propelling Nepal toward technological advancement through the development of AI systems and their active, inclusive, and ethical application.343 To achieve this vision, the policy outlines several strategies. It promotes the use of AI in key sectors such as information technology, health, education, energy, transportation, tourism, and industry to enhance production and productivity.
Specific measures include introducing AI-related subjects in school curricula; promoting technologies such as weatherbased farming, smart irrigation, and e-agriculture markets; and improving the accessibility and quality of healthcare services in remote areas. Use of smart grids and smart switching systems in energy sector for production, transmission, and distribution is another such example. Additionally, the policy aims to integrate AI technology into public service.344 To ensure inclusion, the policy also calls for a range of measures, including coordinated efforts across federal, provincial, and local levels. These include improving digital literacy, conducting awareness and orientation programs, and providing skill development and capacity-building training, among others.345 Finally, the policy emphasizes the safe, ethical, and responsible use of AI through a robust governance framework that incorporates regulation, monitoring, evaluation, and continuous orientation measures.346 Overall, the policy has acknowledged the transformative role that use of AI can have on social and economic progress achievement and has laid out several strategies to propel towards it.
HoR Passes Information Technology and Cyber Security Bill-2082
The House of Representatives (HoR) unanimously passed the Information Technology and Cyber Security Bill-2082 in its
meeting on August 14, 2025.347
The bill aims to strengthen digital governance, platform regulation, and online security by consolidating and modernizing laws related to technology and cybercrime. It replaced the outdated Electronic Transactions Act, 2063, and provides legal recognition to electronic records, digital signatures, and cyber security services.348 Despite its progressive goals, however, the bill faced criticism from digital rights advocates who expressed concerns over vague provisions affecting free speech, privacy, and data protection.349 While the bill includes strict punishments for cyber offenses and measures to enhance cyber security infrastructure, experts urged further amendments to ensure rights protections and compliance with international standards.
Outlook
Nepal’s digital landscape is at a turning point. The surge in cross-border QR transactions shows how quickly digital payments are reshaping tourism and retail, but the lack of reciprocal access for Nepalis in India underlines gaps in regional cooperation. At the same time, a dramatic rise in online fraud has exposed the risks that come with rapid digital adoption, reminding policymakers that technology alone cannot substitute for strong awareness and enforcement. The government has responded with sweeping measures, from requiring e-commerce registration to banning Telegram and issuing new financial monitoring guidelines. The passage of the IT and Cyber Security Bill also signals intent to modernize governance, though concerns remain over privacy and free expression. The rollout of the National AI Policy reflects that Nepal is building a regulated, ethical AI ecosystem to drive national development and digital transformation. Together, these developments highlight both the promise and the pitfalls of Nepal’s digital transformation. The months ahead will determine whether regulation can keep pace with innovation while protecting consumers and fundamental rights.
Infrastructure and Real Estate
From June to August 2025, Nepal’s infrastructure sector noted many developments. In energy, Millennium Challenge Account-Nepal (MCA-Nepal) signed USD 154.5 million (NPR 20.67 billion) worth of contracts to build 315 km of transmission lines and three substations under the Nepal Compact, aimed at reducing bottlenecks and enabling cross-border power trade. Meanwhile, in digital infrastructure, Nepal secured USD 29 million (NPR 3.87 billion) to expand broadband access, aligned with the Digital Nepal Framework. On the connectivity front, the Government of Nepal announced plans to construct 200 suspension bridges in FY 2082/83 BS (2025/26 AD) to improve rural mobility. On the other hand, the real estate sector remained uncertain. New Know Your Customer (KYC) and bank statement rules were introduced but quickly revoked, while property transaction volumes rose to 56,010 in mid-May to mid-June 2025, even as revenue declined. This suggested falling prices and highlighted the sector’s fragile growth outlook.
INFRASTRUCTURE UPDATES
MCA-Nepal Signs USD 154.5 Million Contracts for Transmission Project
On July 28, 2025, the United States announced the resumption of a previously paused USD 500 million (NPR 69.07 billion) fund from the Millennium Challenge Corporation (MCC).351 The project will fund two major infrastructure areas: building a power transmission line to
enhance energy trade with India and improving Nepal’s road network.352 This fund had been put on hold since January this year by the United States’ Trump administration, along with other foreign development assistance programs.353
Following the resumption of the program, on August 14, 2025, Millennium Challenge AccountNepal (MCA-Nepal) signed contracts worth USD 154.5 million (NPR 20.67 billion) with multiple firms to construct 315
km of 400 kV transmission lines and three substations.354 These projects are part of the USD 697 million (NPR 93.2 billion) Nepal Compact, funded jointly by the Millennium Challenge Corporation (MCC) of the United States and the Government of Nepal.355 Once completed, the project will enhance power evacuation, reduce transmission bottlenecks, and enable crossborder electricity trade with India.356 Officials emphasized that the project is expected to be completed within five years.357
Nepal Receives USD 29 Million (NPR 3.87 Billion) Investment for Broadband Expansion
On July 9, 2025, Nepal secured an investment of USD 29 million (NPR 3.87 billion) led by the International Finance Corporation (IFC), in partnership with Standard Chartered Bank Nepal Limited (SCBNL), to finance WorldLink Communications Limited, one of Nepal’s leading Internet Service Providers (ISPs).358 The investment will enable WorldLink to expand its fiber-optic network and establish sustainable, EDGEcertified data centers across the country.359 The funding aims to improve digital connectivity and expand broadband access, particularly in underserved rural areas.360 According to IFC, the financing package comprises both debt and equity components, with IFC and SCBNL co-investing to support WorldLink’s infrastructure expansion and digital inclusion goals.361 The project aligns with the Government of Nepal’s Digital Nepal Framework, which prioritizes the development of ICT as a driver of inclusive economic growth.362 Once completed, the initiative is expected to enhance digital access, foster e-commerce, and facilitate services such as digital banking, remote education, and telemedicine in rural communities.363
Government Plans to Build 200 Suspension Bridges in FY 2082/83 BS (2025/26 AD)
On July 2, 2025, the Ministry of Urban Development announced plans to build 200 suspension bridges in FY 2082/83 BS (2025/26 AD).364 The Ministry
of Physical Infrastructure and Transport confirmed that the bridges will be constructed through coordination between the provincial and local governments across all provinces to improve rural connectivity and access to markets, schools, and health facilities.365 Officials noted that the program is part of the government’s long-term infrastructure development strategy, focusing on reducing geographic isolation in remote areas.366 Suspension bridges are considered cost-effective and durable solutions for river crossings in rural Nepal that lead to enhanced mobility which reduces travel times, increases access to services, and contributes to rural economic development.367
New KYC and Bank Statement Requirements for Property Registration Introduced and Revoked
On June 3, 2025, the Ministry of Land Management introduced new regulations requiring buyers and sellers to present bank statements and Know Your Customer (KYC) documents for property registration.368 The rules aimed to curb money laundering and improve financial transparency in the real estate sector.369 However on June 10, 2025 the Office of the Prime Minister and Council of Ministers revoked the requirements following criticism from stakeholders.370 Critics argued that the provisions were impractical and could hinder property transactions.371 The reversal highlighted ongoing tensions between the government’s efforts to tighten financial oversight and the real
estate sector’s push for less restrictive practices.372
ADB and World Bank Approve New Projects to Improve Nepal’s Infrastructure Sector
On June 18, 2025 (FY 2081/82 BS), the Asian Development Bank (ADB) announced its Country Partnership Strategy (CPS) 2025–2029, committing USD 2.3 billion (NPR 317.72 billion) in funding to support green, inclusive, and resilient infrastructure development in Nepal.373 The CPS emphasizes strengthening private sector–led green growth, improving urban and transport infrastructure, and expanding access to quality public services.374 The strategy is particularly significant for Nepal’s infrastructure sector as it seeks to enhance climateresilient investments, modernize energy systems, and promote sustainable transport ahead of the country’s upcoming graduation from Least Developed Country (LDC) status.375 In parallel, on June 17, 2025, the World Bank approved two infrastructure projects totaling USD 257 million (NPR 35.49 billion).376 The first, worth USD 120 million (NPR 16.58 billion), aims to strengthen electricity distribution networks across Koshi, Bagmati, Karnali, and Sudurpashchim provinces, including the installation of modern substations, automated grid systems, and advanced monitoring technologies.377 The second project, worth USD 137 million (NPR 18.91 billion), will expand irrigation coverage for 17,500 hectares of farmland in Kailali District, supporting agricultural productivity and rural livelihoods.378
Climate Disruption Severed Trade Link
On July 8, 2025, a glacial lake outburst flood in Tibet led to the flooding of the Bhotekoshi River which destroyed the Friendship Bridge at Rasuwagadi, Nepal’s main trade link with China.379 At least eight people were killed, dozens went missing, and 55 were rescued by rescue teams, including airlifts by the Nepal Army.380 The collapse abruptly halted cross-border trade via this corridor, forcing reliance on longer routes through India. The flooding not only washed away the bridge but also destroyed nearby infrastructure, including hundreds of electric vehicles and cargo containers at the dry port and customs yard in Timure.381 The sudden deluge also damaged roads, under-construction hydropower projects, and customs facilities.382 Rescue units retrieved eight bodies, with some still unaccounted for. Among the missing were both Nepali and Chinese nationals, some of whom were reportedly working on a Chinese-assisted construction project.383 The destruction of the bridge brought all Nepal–China cross-border trade via this route to a standstill.
REAL ESTATE UPDATES
Real Estate Faces Increased Transactions and Unclear Growth
Nepal’s real estate market in the FY 2024/25 AD (2081/82 BS) recorded 538,128 property
transactions, a 0.15% increase from the previous year.384 Notably, the month of Asar (mid-June to mid-July) alone generated Rs 6.55 billion in property revenue, an impressive 20.2% year-onyear jump.385 Data for Jestha 2082 BS (mid-May to midJune 2025) showed a total of 56,010 real estate transactions across Nepal. While the figure marked an increase from April–May, total government revenue from property transactions fell from NPR 4.54 billion (USD 34.8 million) to NPR 3.33 billion (USD 25.5 million).386
The decline suggests a fall in property prices despite higher transaction volumes.387 Analysts noted that buyers are likely adopting a cautious approach due to uncertain market trends, high interest rates, and stricter bank lending practices.388 Although the increase in transactions indicates demand for land and housing remains, declining revenue reflects slowing growth momentum.389 Market observers emphasized that sustained growth will depend on stable policy frameworks, credit availability, and broader macroeconomic conditions.390
NRB Makes Housing Finance Easier
On July 11, 2025, Nepal Rastra Bank released the monetary policy for FY 2082/83 BS (2025/26 AD) which, among its various provisions, raised the housing loan ceiling for first-
time buyers from NPR 20 to 30 million (USD 145,000 to 217,000). This increased the loan-to-value ratio, an indicator to show the borrowed portion from the total amount, from 70% to 80%.391 This flexibility now allows banks and financial institutions (BFIs) to cover up to 80% of the property’s assessed value for first-time homebuyers, and 70% for land and property purchasers.392 The policy was introduced as a measured expansion of credit access aimed at reviving activity in the housing and broader real estate markets. These changes make home ownership more accessible to the middle class and are expected to sustain growth in the housing market.393
Outlook
There were several major infrastructure and investment announcements this quarter. MCC funding was resumed, with contracts worth USD 154.5 million (NPR 20.67 billion) signed for new transmission lines and substations that are expected to support cross-border electricity trade in the years ahead. Early work on the MCC-funded transmission lines is expected to begin in the next quarter, broadband rollout will continue, and planning for the suspension bridge program will move forward. Investments were also directed toward broadband expansion, rural suspension bridges, and hydropower projects such as Tanahu and Arun-3. Development partners, including ADB and the World Bank, committed new financing for energy distribution, irrigation, and climate resilience. At the same time, a glacial lake outburst flood in July 2025 destroyed the Friendship Bridge at Rasuwagadhi, disrupting Nepal–China trade and damaging nearby infrastructure. On the other hand, hydropower construction will remain a key focus, with projects gradually shaping Nepal’s role in regional power trade. In real estate, transaction volumes rose while revenue declined, though prices and revenue will depend on lending conditions and overall economic trends..
Tourism
Nepal’s tourism industry recovered steadily yet unevenly in the past quarter. The first half of 2025 saw a slight dip in arrivals compared to the previous year, but July brought hope with a near full recovery to the pre-pandemic levels. Beyond numbers, this quarter was marked by significant developments including the launch of the Tourism Policy 2025, aimed at steering growth toward sustainability and inclusivity, and the release of NTB’s record budget, focused on global promotion and domestic upgrades. New mountaineering routes, cultural diplomacy abroad, and rising foreign investment commitments further contributed to the momentum, even as challenges such as workforce shortages and operational hurdles at Pokhara Airport reminded us of the road ahead.
Tourist Arrivals Decline
Nepal recorded the arrival of over 647,000 international tourists from January to July of the year 2025, according to the Nepal Tourism Board (NTB).404405 Based on the half-yearly statistics published by the Nepal Tourism Board (NTB), a total of 577,689 foreign tourists visited the country between January and June 2025.406 During the same period last year, 583,016 tourists visited Nepal.407 Comparing the half-yearly statistics of 2024 and 2025, there has been a slight decline of 0.91% in tourist arrivals from January to June 2025.408 Despite the slight decline in the first six months of the year compared to 2024, there has been an improvement in the number of tourist arrivals
in July 2025 compared to the corresponding period last year. July 2025 alone saw the arrival of 70,193 international visitors compared to 64,598 tourists in July 2024, which accounts for a 108.7% growth.409
Notably, the tourist arrival figure for July this year represents a 99% recovery compared to prepandemic levels in July 2019, reflecting a steady recovery and growing global interest in Nepal as a travel destination.410
The tourism sector in Nepal is recovering gradually postpandemic; however, the growth is slower than expected. The tourism officials have attributed this slow progress to limited promotion, high airfare, global conflicts, and travel difficulties.411 Through the span of the first seven
International Visitor Arrivals394 (January-June 2025)
577,689
Proposed FDI Commitments in Tourism (FY 2024/25)395
41% of total FDI
NPR 26.82 billion (USD 195.15 million)
Number of FDI Projects in Tourism (FY 2024/25)396 304
Average Length of Stay (2024)397 13.3 days
Foreign Exchange Earnings from Tourism (mid-July 2024 to midMay 2025)398
NPR 69.73 billion (USD 524.19 million)
Total Tourism Revenue (2024)399
NPR 86.12 billion (USD 623.40
Number of Registered Travel Agencies (2024)403
months of this year, monthly arrival data show a peak in March with 121,687 visitors, followed by a steady decline through July.412 Despite the decline in tourist
arrivals in the first six months this year compared to the previous year, India remained the largest source of visitors, sending 147,839 tourists, followed by
the United States (58,326), China (52,514), Bangladesh (28,956), and the United Kingdom (27,068).413
Figure 13. Tourist Arrivals to Nepal in July (from 2019 to 2025 AD)
Source: Tourist Arrivals to Nepal in July (from 2019 to 2025 AD)414
MOUNTAINEERING UPDATES
Nepal Opens 97 Remote Peaks to Expand Mountaineering Tourism
In July 2025, Nepal opened 97 previously restricted peaks in the western provinces of Karnali and Sudurpashchim, inviting climbers and adventure tourists to explore untouched regions. Access to these peaks, ranging from 5,870 to 7,132 meters, aim to diversify mountain tourism beyond the overcrowded Everest region while creating jobs and income for local communities in remote areas with limited economic activity.415 Among the tallest peaks that were Saipal (7,030 m), Api (7,132 m), and Api
West (7,076 m), with 77 peaks in Karnali and 20 in Sudurpashchim. To encourage underexplored expeditions, the government also waived royalties for these peaks for the next two years, opening new opportunities for climbers to experience Nepal’s untouched landscapes.416 This initiative is part of a broader strategy to strengthen the tourism sector and follows various steps taken by the government to improve mountaineering in Nepal. For example, earlier in the year, the government announced that, under the Integrated Tourism Bill, climbers aiming for Mount Everest must first summit a 7,000-metre peak within Nepal, making these newly opened peaks ideal training grounds.
POLICIES, PLANS, AND PROGRAMS
Nepal Launches Tourism Policy 2025 to Drive Sustainable Growth
On July 23, 2025, the Government of Nepal introduced the Tourism Policy 2025 (2082 BS), replacing the 2008 framework to strengthen tourism’s economic role and establish Nepal as a distinctive global destination. The new policy prioritizes sustainable growth through ecofriendly infrastructure, stronger governance, and community participation, while diversifying tourism into adventure, wellness, religious, educational, and film segments.417 It calls for improved air and road connectivity,
simplified visa procedures, digital promotion, and public-private partnerships to attract foreign investment. Key provisions include establishing a National Tourism Council and a Tourism Satellite Account to track sectoral progress. The policy also anchors the “Visit Nepal Decade” (2025–2035), with 2025 declared a special tourism year.418
NTB and Nepali Embassies Host Events to Promote Tourism in Nepal Internationally
This past quarter, multiple events were held internationally to promote tourism in Nepal. On June 6, 2025, the Embassy of Nepal in London and the Nepal Tourism Board (NTB) jointly staged “Nepal Night,” a storytelling event held at the Embassy.419 The Ambassador of Nepal to the UK urged the attendees to explore Nepal’s rich heritage. The event featured presentations and a thematic storytelling on mountain climbing, Kathmandu’s heritage, and wildlife conservation.420 A short documentary showcasing Nepal’s natural beauty, culture, and cuisine was also screened, followed by engaging cultural performances.421
In mid-June 2025, Nepal promoted its tourism in Bangladesh through two major events - the “Bridging Peaks and Coasts: Nepal–Bangladesh Tourism Dialogue” in Chattogram (June 19) and the “Nepal–Bangladesh Tourism Meet” in Dhaka (June 22).422423 The event was organized by NTB and the Embassy of Nepal in Dhaka and highlighted Nepal’s diverse attractions under the themes “Destination Nepal: From the Bay of Bengal to the Himalayas”
and “Neighbourly Nepal: Land of Lifetime Experiences”.424425 Both events featured presentations by NTB officials, inspiring stories from mountaineers, and remarks from officials. Both the events also combined business-tobusiness (B2B) networking and cultural performances, underscoring tourism’s role in strengthening people-to-people and industry ties between the two nations.426427
Similarly, on June 23, 2025, the Embassy of Nepal in Scotland, NRNA Scotland, and local Nepali community groups organized the inaugural “Nepali Mela” in Edinburgh.428 The event that started as a colorful parade transformed into a lively cultural fair in Princes Street Gardens.429 The event attracted over 3,000 attendees, including Nepalis from across the UK and nonNepali visitors like scientists, artists, entrepreneurs, students, and media.430 The fair showcased Nepali cuisine, cultural performances, and heritage displays.
NTB Unveils Historic Budget to Drive Global Promotion and Sustainable Tourism
Continuing Nepal’s vibrant tourism outreach from dynamic events in Bangladesh to cultural diplomacy in Europe, NTB took a bold step forward in mid-July 2025 by approving a record NPR 1.59 billion (USD 11.51 million) budget for the FY 2082/83 (2025/26 AD) during its Executive Committee meeting on June 27, 2025.431 This marks the first time in NTB’s history that the annual budget was unveiled right at the start of the fiscal cycle, signaling a more strategic and proactive
planning approach.432 Among its various provisions, the budget set a target to increase tourist arrivals by at least 15% this year.433434 Approximately 70% of the budget (around NPR 1.1 billion) was allocated to international marketing and promotion, with ambitious plans like opening a permanent NTB office in India and marketing through various channels like global tourism fairs, digital marketing, diaspora engagement, influencer outreach, and cine-tourism campaigns under the “Nepal: Lifetime Experience” brand.435436
On the domestic front, NTB’s budget also supports critical infrastructure development like updating trekking trails, establishing heritage sites and “Namaste Centers,” promoting festivals like the Pokhara Travel Mart and Road Festival, enhancing green hospitality, and reinforcing systems like the Tourism Information Management System (TIMS) and disaster response capabilities.437438439
KEY DEVELOPMENTS
Nepal’s Hospitality Boom Faces a Human Resource Crisis
On February 11, 2025, the Hotel Association Nepal (HAN), in collaboration with the government and the ENSURE Project, convened the HR Meet 2025 in Kathmandu to address a pressing challenge threatening the country’s tourism growth: a shortage of skilled hospitality manpower.440 Despite an increase in star-rated hotels and a surge in tourists from India and China, only about one-third of hotels operate at full capacity due to workforce gaps. The issue
is particularly severe in districts like Rupandehi, where thousands of hospitality jobs have been created, but retaining staff has become a struggle. Many employees, even after receiving on-site training and benefits, leave within months for betterpaying foreign jobs or casino work. Hotel owners reported that only 27-30% of their staff remain long-term, resulting in repeated costly retraining and affecting service quality.441 During the event, industry leaders stressed the need for updated vocational curricula, industryaligned training, and stronger government–private sector partnerships. The program concluded with the formation of a Hospitality HR Club to coordinate capacity building, policy advocacy, and retention strategies, aiming to retain talent in Nepal and sustain the hospitality sector’s growth.442
Outlook
Pokhara International Airport Faces Operational and Connectivity Challenges
In the past quarter, Pokhara International Airport experienced significant operational challenges. Flight movements declined notably, with the total number of flights dropping by 7.6% year-over-year by mid2025. Meanwhile, the number of passengers grew minimally by 0.9%, signaling poor load factors despite slightly higher seat utilization compared to the previous fiscal period.443 Private airlines also suspended their Pokhara to Jomsom services for two months, starting in July and August, due to low passenger demand and unfavorable monsoon weather.444
Despite these challenges, Sichuan Airlines applied in late August 2025 to launch direct
flights to Australia via Chengdu, expected to begin in September once regulatory approvals are finalized. This development promises a significant expansion of international connectivity for Pokhara.445446 Meanwhile, generous government incentives, including waivers of passenger service fees, landing charges, navigation fees, and 75% discounts on ground handling, have failed to attract more international flights. The airport hosted only one weekly international flight, contributing to financial strain that jeopardizes its ability to cover even operating costs and loan repayments.447
Nepal’s tourism sector continues its gradual recovery, but the past quarter has underscored persistent challenges. International arrivals grew unevenly, with a promising rebound in July offset by slow growth earlier in the year. Connectivity issues, particularly at Pokhara International Airport where flight frequencies remain limited despite heavy incentives, highlight infrastructure inefficiencies. Similarly, the hospitality sector faces a severe human resource shortage, as trained workers increasingly seek better opportunities abroad, undermining service quality and retention. Rising costs, global conflicts, and limited promotion have also weighed on growth, keeping the sector below its full potential.
Moving forward, the NTB’s fiscal plan for FY 2082/83 BS (2025/26 AD) and the Tourism Policy 2025 are designed to address these structural weaknesses. NTB’s record budget places emphasis on international marketing and domestic infrastructure upgrades, while the Tourism Policy 2025 provides a long-term framework focused on sustainability, better governance, and private sector engagement. Together, these initiatives are expected to expand connectivity, diversify tourism products, and ensure that tourism contributes more consistently to jobs, foreign exchange earnings, and inclusive growth. However, their success will depend on effective implementation, coordination among stakeholders, and the ability to adapt to global uncertainties.
4 Market Review
Financial Market
During the review period, from June 1, 2025 to August 31, 2025, based on the annual data of FY 2024/25 AD (2081/82 BS), Nepal's Balance of Payments (BoP) recorded a surplus of NPR 594.54 billion (USD 4.30 billion), an improvement compared to the same period last year. The monetary policy’s cautiously accommodative stance, announced after the appointment of the new NRB governor, aims to support economic momentum by lowering the cost of domestic debt mobilization for both the private sector and the Government of Nepal, thereby facilitating capital formation. While the policy contains expansionary elements to revive activity, regulators have taken a careful posture on financial stability. Additionally, the government advanced AML/CFT reforms to help Nepal exit the FATF grey list and the EU’s high-risk list by implementing guidelines on Targeted Financial Sanctions for Financial Institutions. The period thus reflected a policy balancing act of stimulating growth while shoring up governance and risk controls.
Fourth Quarter Performance Analysis of Commercial Banks449
As per the unaudited fourthquarter results of commercial banks for FY 2024/25 AD (2081/82 BS), operating profit of commercial banks rose by 16.22%, while net profit increased by 12.96% compared to the same period in previous FY 2023/24 AD (2080/81 BS).
In the fourth quarter of FY 2024/25 AD (2081/82 BS), Nabil Bank reported the highest net profit of NPR 7.13 billion (USD 51.61 million), followed by Nepal
Investment Mega Bank (NIMB) with NPR 6.76 billion (USD 48.94 million) and Global IME Bank with NPR 6.20 billion (USD 44.88 million). Additionally, compared to the same period in the last FY 2023/24 AD (2080/81 BS), Nepal Bank saw the most significant year-on-year growth in net profit of 127.72% at NPR 3.77 billion (USD 27.29 million), while NIC Asia Bank recorded the lowest net profit of NPR 161.57 million (USD 1.17 million).
In terms of reserves and surplus, Rastriya Banijya Bank led with NPR 37.48 billion (USD 271.32 million), followed by Nepal
FACTSHEET448
Gross Foreign Exchange Reserve (mid-July 2025)
Buying Exchange Rate per USD (mid-July 2025)
137.00 Weighted Average 91-day
Investment Mega Bank (NIMB) at NPR 32.74 billion (USD 237.01 million), and Nabil Bank at NPR 31.91 billion (USD 230.99 million).
In total, eight banks surpassed the reserves and surplus industry average of NPR 17.36 billion (USD 125.67 million).
Overall, according to the annual data of FY 2024/25 AD (2081/82 BS), deposits at commercial banks grew by 13.74%, compared to the corresponding period in FY 2023/24 AD (2080/81 BS). Global IME Bank mobilized the highest deposits of NPR 550.63 billion (USD 3.99 billion), followed by Nabil Bank with NPR 524.63
billion (USD 3.80 billion) and Rastriya Banijya Bank with NPR 500.41 billion (USD 3.62 billion). Whereas, Standard Chartered Bank reported the lowest deposits from customers at NPR 125.34 billion (USD 907.34 million). Contrarily, compared to the same period in the previous FY 2023/24 AD (2080/81 BS), Everest Bank recorded the highest deposit growth of 28.63%, reaching NPR 298.82 billion (USD 2.16 billion).
Total credit growth expanded by 7.35% compared to the same period in the previous FY 2023/24 AD (2080/81 BS). Nabil Bank held the largest loan portfolio of NPR 412.80 billion (USD 2.99 billion), followed by Global IME Bank at NPR 411.79 billion (USD 2.98 billion) and NIMB at NPR 326.93 billion (USD 2.37 billion). Meanwhile, Standard Chartered Bank had
Figure 14. Deposit Mix at Banks and Financial Institutions by mid-July (Percentage Share)
Source: Current Macroeconomic and Financial Situation based on annual data, Nepal Rastra Bank, FY 2024/25 AD (2081/82 BS)451
Similarly, in the review period, credit provided to the private sector by BFIs witnessed a rise of 8.4%, compared to the corresponding period last year.
the lowest credit disbursement of NPR 72.71 billion (USD 526.35 million).
Lastly, the average NonPerforming Loan (NPL) ratio of commercial banks rose to 4.22% from 3.57% in the same period last FY 2023/24 AD (2080/81 BS), while the average cost of funds declined to 4.38% from 6.09%. Similarly, the average base rate stood at 6.06% during the review period, down from 8.08% in the same period in FY 2023/24 AD (2080/81 BS). NIC Asia Bank recorded the highest base rate at 7.04%, and Rastriya Banijya Bank had the lowest at 4.78%.
KEY INDICATORS
Some of the key banking sector indicators as per the Current Macroeconomic and Financial Situation report published by
NRB are highlighted below. These are based on the annual data of FY 2024/25 AD (2081/82 BS) ending in mid-July of 2025 AD.450
Deposit and Credit Mobilization
The deposits at BFIs grew by 12.6% in the review period as compared to 13% in the same period last FY 2023/24 AD (2080/81 BS). Among the total number of deposits, demand deposits, saving deposits, and fixed deposits accounted for 7.1%, 36.8%, and 48.3% respectively. These proportions have experienced a notable change compared to a year ago when the respective shares were 5.8%, 30.3%, and 56.4%.
This increase contrasts with the annual data of FY 2024/25 AD (2080/81 BS), where credit grew by 5.8%.
Additionally, BFIs witnessed an increase in outstanding loans to various sectors. The industrial production sector witnessed a rise of 7.9%; the wholesaler
Figure 15. Sectorwise Outstanding Credit of Banks and Financial Institutions (Amount in NPR billions)
Source: Current Macroeconomic and Financial Situation based on annual data, Nepal Rastra Bank, FY 2024/25 AD (2081/82 BS)452 and retailers sector increased 3.4%; while the transportation, communication, and public sectors observed a growth of 15.5% in outstanding loans,
Compared to last FY 2023/24 AD (2080/81 BS), trust receipt loans for imports witnessed an increase of 51.1%, while margin nature loans increased by 56.2%. Moreover, term loans increased by 7.1%, real estate loans, including residential personal home loans, by 5.9%, and hire purchase loans by 3.7%. On the other hand, overdraft loans decreased by 10.4%.
Liquidity Management
According to the annual data of FY 2024/25 AD (2081/82 BS), NRB absorbed a total liquidity of NPR 24.65 trillion (USD 178.44 billion) on transaction basis. This liquidity absorption consisted of NPR 3.14 trillion (USD 22.73 billion) through the deposit collection auction and NPR 21.51 trillion (USD 155.71 billion) through the Standing Deposit Facility (SDF). Meanwhile, the central bank injected NPR 2.70 billion
compared to the annual data of last FY 2023/24 AD (2080/81 BS). Moreover, as compared to the same period last fiscal year, outstanding loans to the service industry increased by 12.68%, while loans to the agriculture sector decreased by 0.2%.
(USD 19.55 million) through the Overnight Liquidity Facility (OLF). In the corresponding period of the previous year, NPR 3.87 trillion (USD 28.02 billion) net liquidity was absorbed through various instruments of monetary operations.
Moreover, NRB injected liquidity amounting to NPR 787 billion through the net purchase of USD 5.83 billion from the foreign exchange market. In comparison, in the corresponding period of the previous year, a liquidity of NPR 783.47 billion was injected through the net purchase of USD 5.89 billion.
Additionally, NRB purchased Indian currency (INR) equivalent to NPR 567.61 billion through the sale of USD 4.16 billion. Comparatively, in the corresponding period last year, INR equivalent to NPR 535.07
billion was purchased through the sale of USD 4.02 billion.
Foreign Exchange Reserves and Adequacy
According to the annual data of FY 2024/25 AD (2081/82 BS), the total value of foreign exchange reserves rose by 31.2% to NPR 2.68 trillion (USD 19.40 billion) in mid-July 2025, compared to NPR 2.04 trillion (USD 14.77 billion) in mid-July 2024. Moreover, the reserves held by BFIs, excluding the NRB, increased by 36.6% to NPR 263.04 billion (USD 1.90 billion) in mid-July 2025 from NPR 192.55 billion (USD 1.40 billion) in mid-July 2024. Within this, the proportion of Indian currency in the total reserves amounted to 23.1% as of mid-July 2025.
Table 6. Foreign Exchange Adequacy Indicators
Source: Current Macroeconomic and Financial Situation based on annual data, Nepal Rastra Bank, 2024/25 AD (2081/82 BS)453
Based on the imports of FY 2024/25 AD (2081/82 BS), the foreign exchange reserves of the banking sector have been deemed sufficient to cover approximately 18.2 months of prospective merchandise imports and 15.4 months of both merchandise and services imports.
Interest Rates
The weighted average rate for the 91-day treasury bills remained steady at 2.95% as of mid-July 2025 AD, compared to 3% in the corresponding month of the previous fiscal year. Meanwhile, the weighted average inter-bank transaction rate among BFIs, which was 2.99% a year ago, decreased to 2.96% as of midJuly 2025.
In the same period, the average base rate of commercial banks experienced a decrease, falling from 8% a year ago to 6.02% by mid-July 2025. Furthermore, the weighted average deposit rate and lending rate of commercial banks stood at 4.19% and 7.85%
2023/24 AD (2080/81 BS) (Mid-July)
2024/25 AD (2081/82 BS) (Mid-July)
respectively. Comparatively, these rates were 5.77% and 9.93% respectively a year ago.
Balance of Payment
According to the annual data of FY 2024/25 AD (2081/82 BS), ending in mid-July 2025 AD, the Balance of Payment (BoP) was at a surplus of NPR 594.54 billion (USD 4.30 billion), which witnessed an increase of 18.32% compared to the corresponding period of the previous year, where the BoP was at a surplus of NPR 502.49 billion (USD 3.64 billion).
KEY DEVELOPMENTS
NRB to Review Loans of 10 Major Banks
In August 2025, Nepal Rastra Bank (NRB), acting on the International Monetary Fund’s (IMF’s) condition under the Extended Credit Facility, launched a comprehensive loanportfolio audit of ten leading Nepali commercial banks that were chosen based on their financial health assessment in
mid-April 2025.454 The banks involved are Global IME Bank, Nabil Bank, Nepal Investment Mega Bank, Rastriya Banijya Bank, Kumari Bank, Laxmi Sunrise Bank, Prabhu Bank, Nepal Bank Limited, Himalayan Bank, and NIC Asia Bank. These banks will undergo scrutiny by a Bangladeshi audit firm Howladar Yunus & Co. which was chosen among six applicants according to NRB’s stringent technical criteria.455 The firm is expected to complete the loan quality review within approximately three months.456
Banks’ NPLs Surge Despite Strong Earnings
Non-performing loans (NPLs) rose sharply in the past quarter even as banks reported strong earnings. Despite holding about NPR 800 billion (USD 5.79 billion) in surplus funds, lending remained sluggish, with the credit-to-deposit (CD) ratio at just 78.45%, well below the 90% limit.457 This excess liquidity pushed deposit rates down to 4.37% and lending rates to 8.11%, prompting the Nepal Rastra Bank
(NRB) to absorb around NPR 400 billion (USD 2.90 billion) through fixed deposit facilities to keep interbank rates stable. However, weak loan demand and slow credit expansion led to a rise in bad loans with average NPLs exceeding 5%, reaching up to 7% in some banks.458 As a result, capital adequacy ratios fell below 8% in several institutions, forcing banks like Himalayan Bank, Kumari Bank, NIC Asia, and Rastriya Banijya Bank to focus more on loan recovery than new lending. Rastriya Banijya Bank, for instance, faced capital pressure despite issuing NPR 2.5 billion (USD 18.10 million) in debentures, with a CD ratio of only 64.30%. In contrast, Everest Bank, Machhapuchhre Bank, and NMB Bank remained more active in lending, supported by stronger capital bases and CD ratios above 83%.459
EU Flags Nepal as High-Risk for Money Laundering, Elevating Global Oversight
In June 2025, Nepal was officially added to the European Union’s updated list of highrisk third-country jurisdictions notorious for deficiencies in anti-money laundering (AML) and counter-terrorist financing (CFT) controls.460 Anti-Money Laundering (AML) and CounterTerrorism Financing (CTF) frameworks are structured systems of laws, regulations, policies, and procedures designed to prevent financial systems from being used for illicit purposes, specifically to detect, disrupt, and report money laundering and the financing of terrorist activities. In its June 10, 2025 Delegated Regulation, the European Commission
added Nepal alongside Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, and Venezuela to the list, all flagged for strategic weaknesses in their AML/CFT frameworks.461
The inclusion mandates enhanced due diligence for financial transactions involving Nepal by EU-based institutions, signaling heightened global scrutiny of Nepal’s financial governance. While this move does not equate to punitive sanctions, it raises costs and complexity around cross-border transactions and correspondent banking relationships. Nepal’s placement follows its re-entry onto the Financial Action Task Force (FATF) “grey list” back in February 2025, a designation for jurisdictions requiring increased monitoring, after deficiencies were found in enforcement, supervision, and prosecution of financial crimes.462
Parliament Greenlights
Alternative Development Finance Mobilization Bill for Infrastructure
On August 22, 2025, the House of Representatives (HoR) passed the Alternative Development Finance Mobilization Bill 2025, empowering the government to establish an NPR 100 billion (USD 724.34 million) fund dedicated to targeted development initiatives.463 The bill received unanimous backing, incorporating 66 amendments into its original draft which had been presented in April 2025 following scrutiny by the Parliamentary Finance Committee. This new legislation envisions setting up a fund with an authorized capital of NPR 100 billion (USD 724.34 million)
and a paid-up capital of NPR 25 billion (USD 181 million), aimed at mobilizing alternative financing sources to support high-return infrastructure projects. The bill’s framework allows for the appropriate use of both domestic and foreign investment, diverse financial instruments, and a robust institutional structure equipped with effective monitoring and evaluation mechanisms.464 Funds raised under this law will be channeled toward a wide array of infrastructure sectors, including electricity generation and distribution, roads, railways, airports, tunnel highways, cable cars, and podways. It also covers investments in industrial infrastructure such as special economic zones, industrial parks, dry ports, and information technology parks. By facilitating innovative financing pathways, this law seeks to address the dwindling availability of conventional funding and accelerate Nepal’s infrastructure development agenda.465
NRB Tightens Dividend Rules for BFIs
NRB strengthened controls over dividend approvals for BFIs in the past quarter. The new guidelines specify that dividends from unredeemable non-cumulative preference shares can only be distributed from current year profits, following adjustments to the profit and loss account.466 Additionally, cash dividends may now only be declared from amounts exceeding the minimum core capital, capital buffers, and supervisory adjustments. Dividend decisions for commercial banks and national-level development banks must adhere to the
Capital Adequacy Framework 2015, while infrastructure development banks must follow the 2018 framework when setting dividend levels.467 Additionally, development banks, finance companies, and microfinance institutions must boost their core capital by an additional 0.5 percentage points before issuing any dividends. Besides this, according to the new rules, finance companies are required to maintain a core capital ratio of at least 6.5% and a total capital fund of 11%.468 Microfinance institutions, meanwhile, must uphold a capital fund of at least 9%, alongside a buffer of 0.5% of core capital.469 BFIs that fail to maintain the required average interest rate spread, or settle
promoter-pledged loans after five years, will be prohibited from distributing dividends. In merger scenarios where paid-up capital diminishes, the difference must be logged in capital reserve funds, failure to do so results in a ban on dividend payouts.470
Monetary Policy for FY 2025/26 AD (2082/83 BS) Unveiled471
On July 11, 2025, NRB unveiled its monetary policy for FY 2025/26 AD (2082/83 BS), adopting a cautiously accommodative stance to support economic momentum while maintaining stability. With inflation subdued and foreign exchange reserves at comfortable levels, the policy aims to boost economic activity and facilitate capital
formation by easing the cost of domestic debt mobilization for both the private sector and the Government of Nepal. It sets out measures to improve credit access and quality, reduce credit concentration risks, and reinforce financial stability. The framework also advances reforms in foreign exchange management, financial sector regulation, payment systems, microfinance, and financial inclusion, alongside consumer protection and enhanced anti–money laundering (AML) measures. A flexible, supportive approach underpins these initiatives to help revive a sluggish economy.
Key Highlights from the Monetary Policy for FY 2025/26 AD (2082/83 BS)472
The estimated inflation rate set by NRB for FY 2025/26 AD (2082/83 BS) is at 5%, with an economic growth target of 6%.
The upper limit of the bank rate within the interest rate corridor was reduced from 6.5% to 6%, while the policy rate was adjusted from 5% to 4.5%
The deposit collection rate, which serves as the lower limit of the interest rate corridor, was reduced from 3% to 2.75%.
The foreign exchange limit for Nepali travelers was raised from USD 2,500 to USD 3,000 per person.
BFIs may increase their capital as required, subject to NRB approval, while the limit on non-deliverable forwards based on primary capital by BFIs will be raised from 20% to 25%.
The maximum limit on individual margin loans was increased from NPR 15 crore to NPR 25 crore, with banks allowed to lend up to 70% of the average market price or the last 180-day average price of shares, whichever is lower.
Key Highlights from the Monetary Policy
Housing finance rules were relaxed, allowing first-time buyers to borrow up to NPR 30 million (USD 217,170.99). Banks can now provide housing loans for up to 70% of a property’s value (up from the previous 50%), and the loan-to-value ratio may go up to 80% for first-time construction or purchase.
Restrictions on Class C national-level finance companies deploying deposits up to 15 times their primary capital will be lifted, and the provisions allowing microfinance institutions to distribute annual dividends exceeding 15% (cash or bonus) will be reviewed.
The Guideline on Targeted Financial Sanctions for Financial Institutions was implemented for reporting entities to strengthen AML measures.
NRB will review the capitalization of interest on loans extended to the energy production sector.
Outlook
Nepal’s financial sector is under pressure as NPLs surge, weakening banks’ capital and slowing new lending. Despite high liquidity, credit demand remained low and credit-to-deposit ratios trail far below the limit, leaving funds idle. The situation was compounded by the EU placing Nepal on its list of high-risk jurisdictions, citing gaps in financial transparency and compliance. In response, the government and NRB introduced measures to restore stability. On the other hand, the FY 2025/26 AD (2082/83 BS) monetary policy prioritized stronger capital buffers, tighter risk management, and improved governance. The NRB, following IMF recommendations, also initiated a loan portfolio audit to assess asset quality. Additionally, broader reforms are being implemented to address FATF and EU compliance requirements, focusing on anti–money laundering, beneficial ownership, and oversight standards. Though development financing costs rose, with the World Bank doubling loan rates, these reforms aim to rebuild confidence, unlock liquidity, and support sustainable credit growth.
Capital Market
During the review period, from June 1, 2025, to August 31, 2025, the secondary market recorded a 2.05% rise, reversing the 6.82% decline of the previous quarter. The historic milestone in NEPSE market capitalization of NPR 5.01 trillion (USD 36.26 billion) on July 29, 2025 reflected broad sectoral gains, stronger earnings, and renewed investor confidence, momentum that accelerated after the Monetary Policy for FY 2025/26 AD (2082/83 BS) was unveiled on July 11, 2025, which eased the cost of domestic debt mobilization. Increased liquidity and cheaper borrowing spurred transactions and portfolio flows, but the upswing was tempered by regulatory friction prompting greater caution among some investors. Overall, the period combined expansionary policy stimulus with heightened regulatory scrutiny, signaling both opportunity and a need for prudent market governance.
Table 7. Key Market Indicators
Source: Nepal Stock Exchange476
Secondary Market
During the review period, from June 2, 2025, to August 31, 2025, the NEPSE index closed at 2,749.83 points, reflecting a rise of 55.17 points (2.05%) with a peak on July 29, 2025, at 3002.07 points. Within this, the total market capitalization at the end of the review period was NPR 4.60 trillion (USD 33.30 billion).477 Among the main indices, the Sensitive index rose by 2.53%
to 472.64 points, and the Float Index rose by 2.09% to 187.91 points. In the sub-indices, the Banking sub-index increased by 1.10%, Development Banking sub-index by 2.91%, Finance subindex by 0.63%, Microfinance sub-index by 5.75%, Hydropower sub-index by 1.42%, Hotels and Tourism sub-index by 0.20%, Manufacturing and Processing sub-index by 3.59%, Mutual Funds sub-index by 6.37%, and Others sub-index by 14%.
Meanwhile, the Life Insurance sub-index decreased by (2.29%), Non-Life Insurance sub-index by (0.09%), Trading sub-index by (4.46%), and Investment subindex by (2.80%). Figure 16 shows the daily changes of NEPSE index during the review period
Closing Date Source: Nepal Stock Exchange (NEPSE)478
KEY DEVELOPMENTS
SEBON Introduces Stricter IPO Criteria for Investment Companies
On June 22, 2025, the Securities Board of Nepal (SEBON)
announced stricter regulations for investment companies seeking to launch Initial Public Offerings (IPOs), aiming to enhance transparency, investor protection, and financial discipline in Nepal’s capital market.479
Under the revised framework, only companies meeting specific eligibility criteria will be allowed to go public. Among the criteria, the guidelines require a minimum paid-up capital of NPR 50 million (USD 0.362 million) and at least
Figure 16. NEPSE Movement Over the Review Period
three years of operational track record, with profits reported in the last two consecutive fiscal years.480 Investment companies are also mandated to allocate capital toward productive sectors such as energy, agriculture, communications, tourism, and manufacturing, ensuring that public funds contribute to economic growth. Additionally, applicants must obtain a credit rating above the baseline level, reinforcing financial credibility and operational stability.481 SEBON emphasized that these measures are designed to filter out weak or opaque investment companies, allowing only financially sound and transparent firms to raise funds through IPOs. The move is expected to strengthen investor confidence, improve market quality, and promote long-term stability.482
Finance Ministry Approves Brokerage Firms to Issue IPOs
In mid-July 2025, the Ministry of Finance (MoF) granted approval for brokerage firms in Nepal to issue IPOs, aiming to bolster their capital bases.483 This decision follows the sixth amendment to the Securities Businessperson (Securities Broker and Securities Dealer) Regulations 2007, which the MoF authorized the SEBON to implement. Under the new provisions, brokerage firms with a paid-up capital exceeding NPR 1 billion (USD 7.24 million) are permitted to offer their shares to the public.484 Additionally, the MoF extended the deadline for brokerage companies to raise their capital bases by nine months, setting a new target to increase their paid-up capital to NPR 200 million (USD 1.45 million) by mid-April 2026. As
per the latest reports, 28 out of 50 licensed brokerage firms have met the revised capital requirements, while 22 firms still fall short. Furthermore, MoF authorized all stockbroker companies to engage in margin trading, allowing them to lend money to clients for purchasing securities through margin accounts.485
NEPSE Mandates National ID for Stock Trading to Enhance Transparency and Combat Money Laundering
NEPSE implemented a new policy requiring all Nepali citizens to provide their National Identity Card (NID) or NID number when opening new stock trading accounts.486 Announced via a directive released in August 2025 and issued in compliance with SEBON, the move aims to strengthen Know Your Customer (KYC) protocols and align Nepal's financial sector with international Anti-Money Laundering (AML) standards. The policy mandates that all new stock trading accounts be linked to a verifiable national identity, enhancing the transparency of market transactions.487 This initiative is expected to significantly reduce illicit financial activities, such as money laundering, by ensuring that all market participants are properly identified. Following the release of the policy, NEPSE instructed its trading members, especially those operating their own Trading Management Systems (TMS), to integrate this new requirement into their platforms promptly. This move is part of a broader effort to digitize and strengthen Nepal's capital markets.488
SEBON Approves Banks to Issue Perpetual Preference Shares
From July 2025, SEBON authorized BFIs approved by NRB to issue perpetual nonconvertible preference shares, which are special shares that provide investors fixed yearly returns without voting rights and have no maturity date or option to convert into regular shares. This move follows the 9th amendment to the Securities Issuance and Allotment Directive and aims to provide banks with an alternative method to raise long-term capital without diluting ownership or breaching regulatory capital thresholds.489 According to the amendment, the issuance must be conducted through private placement, limited to fewer than 50 institutional investors. Dividends on these shares cannot be withheld if the issuing institution has distributable profits, except when explicitly restricted by the regulator. Further, the shares must be dematerialized through the Central Depository System (CDSC), and listing and trading must follow the procedures set by the stock exchange.490 Only institutional investors are allowed to trade these securities thereby barring retail investors, licensed brokers, and mutual funds from participating. This initiative is expected to alleviate capital pressure on banks, enabling them to strengthen their capital base and continue lending activities without compromising ownership control.491
From mid-July to mid-August 2025, the Government of Nepal collected a remarkable NPR 2.15 billion (USD 15.6 million) in capital gains tax (CGT) from stock market transactions.492 This surge in tax revenue reflects heightened trading activity and increased
Outlook
investor profits during the period, as confirmed by data from the Depository and Clearing System CDS and Clearing. Although noteworthy, this figure still falls short of the record collection of NPR 4.24 billion (USD 30.7 million) achieved in the same period in the previous year, highlighting variation in market dynamics over time.493 For context, in FY 2024/25 AD (2081/82 BS), the
total capital gains tax collected from the stock market amounted to NPR 16.54 billion (USD 120 million). In Nepal, capital gains from stock trading are taxed at 7.5% for short term holdings up to one year and 5% for long term holdings above one year, helping explain how increased turnover directly bolsters tax revenues.494
Nepal’s capital market has entered a phase of regulatory tightening and structural adjustment. Recent measures have raised the bar for new issuers, expanded the types of institutions allowed to raise capital, and strengthened compliance through stricter identity verification and disclosure norms. These shifts reflect an effort to align the market with international standards, improve governance, and restore investor confidence after a period of volatility and uneven growth. In the immediate term, the market may see slower momentum in new listings as companies adapt to higher compliance thresholds. Trading activity could also be temporarily dampened as intermediaries and investors adjust to regulatory changes. However, liquidity remains sufficient, and institutional investors are expected to play a larger role in supporting stability. Looking ahead to the next quarter, confidence is likely to improve gradually, with stronger frameworks paving the way for healthier capital formation and more resilient market growth.
5
Special Section
Nepal-Bangladesh Relations
Introduction
Nepal and Bangladesh have maintained diplomatic relations since 1972 with Nepal being the seventh country to recognize Bangladesh’s independence. And while relations between the two countries have been marked by goodwill and mutual respect, this has not particularly translated into economic trade and investment. Despite being separated by only a 21-22 kilometer stretch of Indian territory, these two nextdoor neighbors have not been able to unleash the potential of their relationship. Recent developments, however, have marked a turning point. The beginning of Nepal’s export of electricity to Bangladesh, following an October 2024 trilateral power trade agreement between Nepal, India, and Bangladesh, has opened a new chapter in bilateral relations.
As both nations prepare to graduate from the Least Developed Country (LDC) status in 2026, the need for better ties between the two countries has become more urgent than ever. Faced with similar opportunities and challenges, the transformation of bilateral cooperation into tangible economic ties can greatly benefit both nations.
Understanding this, Nepal Economic Forum (NEF) and Centre for Policy Dialogue (CPD) conducted two roundtables on the topic ‘Bangladesh-Nepal Relations: A Renewed Outlook’ in Kathmandu on June 13, 2025, and in Dhaka on August 3, 2025. The discussions brought together participants from the private sector, government, and development agencies to discuss ties between the two countries and potential areas of cooperation. The insights from these roundtable discussions and the expertise of our guest authors form the basis of this Special Section of NEFport 62. Collectively, the four articles in this section explore the state of relations between Nepal and Bangladesh through historic, diplomatic, policy, and private-sector lenses, and chart a path forward to unlock bilateral potential:
• 'Strengthening Nepal-Bangladesh Trade: What Policy Reforms Are Needed to Unlock Bilateral Potential?' by Dr. Fahmida Khatun (Executive Director, Centre for Policy Dialogue) and Afrin Mahbub (Programme Associate, Centre for Policy Dialogue) makes the case for moving beyond a Preferential Trade Agreement (PTA) toward a Comprehensive Economic Partnership Agreement (CEPA) that addresses tariffs, investment, services, and regulatory harmonization.
• 'Nepal-Bangladesh Relations: From Historical Ties to New Economic Partnership' by H.E. Ghanshyam Bhandari (Ambassador of Nepal to Bangladesh) provides a diplomatic perspective on current initiatives in trade negotiations, connectivity, energy cooperation, and people-to-people exchanges while calling for policies aligned with mutual benefit.
• 'A New Chapter for Neighbors: Unlocking the Untapped Trade Potential Between Nepal and Bangladesh' by Dr. Shikha Thapa Magar (Executive Director, Nepal Development Research Institute) identifies opportunities in power trade, product diversification, enhanced connectivity, and climate cooperation.
• 'Next-door Neighbors: Diversifying Nepal–Bangladesh Trade for a Shared Future' by Sudip Bhaju (Executive Board Member, Nepal Economic Forum) explores non-traditional sectors, including tourism, information technology, processed foods, cosmetics, and hospitality services, that offer pathways for economic integration beyond formal trade agreements.
Strengthening Nepal-Bangladesh Trade: What Policy Reforms Are Needed to Unlock Bilateral Potential?
Dr. Fahmida Khatun Executive Director, Centre for Policy Dialogue
Bangladesh and Nepal share common geographical, cultural, and linguistic linkages. However, trade and investment between the two countries have historically remained relatively limited. For instance, Bangladesh’s exports to Nepal remained modest from the 1980s through the early 2000s.495 Although a notable expansion occurred after 2014, with export volumes rising from approximately USD 20 million to USD 105.48 million in 2021, this upward trend was not sustained, as exports declined to USD 40 million in 2024, indicating underlying challenges in maintaining consistent trade growth. Similarly, imports from Nepal into Bangladesh reached a peak of USD 66.5 million in 2008 but have experienced a steady decline, thereafter, amounting to only USD 6 million in 2024.496 This persistent downward trajectory suggests structural
Afrin Mahbub Programme Associate, Centre for Policy Dialogue
constraints that hinder Nepal’s export competitiveness in the Bangladeshi market.
Agricultural products, textiles, and electrical machinery, alongside various processed foods and manufactured goods, dominated trade between Bangladesh and Nepal in 2022.497 However, according to the International Trade Centre (ITC) export potential map, there lies significant untapped export potential for both countries, particularly in products such as jute, cotton apparel, cardamom, and yarn.498 This implies that diversifying into these highpotential goods can further strengthen and broaden bilateral trade relations between Bangladesh and Nepal.
Tariffs and non-tariff barriers continue to impede trade between Bangladesh and Nepal.
Additional charges and insurance requirements are imposed on traders, while the absence of efficient and direct transport links adds to logistical expenditure. This also limits people-topeople connectivity, hindering tourism and medical travel. Although Bangladesh offers concessions under the Most Favored Nations (MFN)1 clause of the World Trade Organization (WTO) and the South Asian Free Trade Area (SAFTA), exports from Nepal continue to face a high trade cost due to tariffs coupled with Other Duties and Charges
1 MFN refers to a fundamental principle of the WTO that prohibits member states from discriminating among their trading partners. It states that an advantage concerning trade, such as a reduced tariff or preferential treatment, granted to one member must be provided impartially to all other WTO members
(ODCs).499 Bangladesh maintains an extensive list of sensitive products, which includes goods excluded from preferential tariff concessions under SAFTA when imported from member countries. Additionally, as a result of ODCs2, products with low or zero customs duties as per the SAFTA agreement are often subjected to a high overall tax burden.500 Consequently, the overall tax burden remains exorbitantly high for Nepali exports, further reducing their competitiveness in Bangladesh’s market. This is particularly evident for products like cardamom, where Bhutan faces duty-free access, while Nepal is subjected to a significant tax burden. This poses an additional constraint on its export potential. Given these circumstances, Bangladesh and Nepal have initiated negotiations for a Preferential Trade Agreement (PTA), which began in 2020.501
However, rather than pursuing a PTA, Bangladesh and Nepal would derive greater advantages from establishing a Comprehensive Economic Partnership Agreement (CEPA). In general, a PTA focuses on issues concerning trade, whereas a CEPA emphasizes not only trade, but also generating foreign direct investment. Trade and investment are integral components of economic growth.502 Therefore, a bilateral CEPA between Bangladesh and Nepal can provide an effective avenue to address the
2 ODCs or para-tariffs are additional charges such as Regulatory Duty (RD), Supplementary Duty (SD), Value Added Tax (VAT), Advance Income Tax (AIT), and Advance Trade VAT (AVAT), which increase the cost of imports.
current impediments to trade in goods and trade in services, encompassing both tariff and non-tariff barriers, while also fostering a conducive business environment to generate substantial investment in both economies.503 For instance, the Indo-Japan CEPA, which came into effect in 2011, demonstrates how a phased reduction in tariffs can be beneficial for both economies while still ensuring that sensitive domestic sectors are protected.504 According to the agreement, India pledged to eliminate tariffs on approximately 90% of its imports from Japan. On the other hand, Japan committed to abolishing tariffs on approximately 97% of its imports from India by 2021. This incremental reduction in tariffs, encompassing 4,500 tariff lines, illustrates a harmonized strategy of providing significant market access while also limiting flexibility for sensitive products.505 A similar approach can be considered when negotiating a comprehensive agreement between Bangladesh and Nepal, where tariffs can be reduced in phases, prioritizing products with higher trade value and greater export potential that are currently subjected to high trade barriers. Strategic access to the market while safeguarding the specific sector will further ensure that trade facilitation coincides with the development objectives of both countries. Such an agreement also provides further avenues to facilitate the movement of people between the two countries, while laying the groundwork for a progressive framework that fosters conducive bilateral cooperation, enabling both countries to further
integrate into regional and global value chains.
Drawing on insights from similar agreements, a CEPA between Bangladesh and Nepal could be divided into several modules, encompassing inclusive market access and regulatory principles.506 Ensuring expanded market access will entail reducing tariffs and para-tariffs between Bangladesh and Nepal, improving customs procedures, and promoting trade facilitation. Concurrently, this could also include stipulations to liberalize trade in services concerning sectors pertaining to tourism and hospitality, education, financial and professional services, further improving people-to-people connectivity. This will also facilitate crossborder investment opportunities while aiding a transfer of skills and knowledge. Furthermore, a comprehensive set of rules and regulations will help moderate border procedures and behindthe-border policies related to commerce, investment, production, and enterprise activities.507 This module will not only include prevailing rules outlined by the WTO, such as the Rules of Origin and Sanitary and Phytosanitary measures, but may also address other regulatory issues like intellectual property rights, e-commerce, competition policy, technical cooperation, and support for small and medium enterprises (SMEs).508 These arrangements will be particularly crucial for both Bangladesh and Nepal as they aim to diversify exports, strengthen trade, and enhance the competitiveness of the private sector in preparation for the upcoming graduation from
the Least Developed Country (LDC) status.
However, to truly unlock and strengthen trade ties between Bangladesh and Nepal, it is crucial to enhance investment and streamline the business environment in both countries. Foreign direct investment (FDI) from Nepal to Bangladesh remained minimal during the early 2000s, with the first recorded positive inflow occurring in 2005 at USD 0.07 million.509 A substantial increase was observed in 2021, when FDI inflows rose to USD 6.82 million.510 By 2024, FDI increased to USD 7.03 million, marking the highest level of investment recorded between 2005 and 2024.511 To sustain and expand this positive trajectory of FDI growth in Bangladesh, it is essential to mitigate further barriers to investment through structured policy frameworks and foster cross-border
collaboration, thereby creating avenues for mutually beneficial economic growth. Furthermore, by leveraging regulatory reforms, initiatives to build Special Economic Zones (SEZs) can facilitate investment flows between Bangladesh and Nepal, deepening bilateral economic cooperation.
It is also essential to emphasize that exporters from Nepal encounter challenges in securing advanced payments in Bangladesh, and the necessity of rerouting goods through thirdcountry customs incurs both additional costs and delays. Therefore, the development of a cross-border digital payment system and improved infrastructure can facilitate transactions, encourage private sector participation, and increase trade volumes between Bangladesh and Nepal. It is noteworthy that Bangladesh
and Nepal are members of multiple regional and subregional platforms, including the South Asian Association for Regional Cooperation (SAARC), Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC), South Asia Subregional Economic Cooperation (SASEC), and Bangladesh, Bhutan, India, and Nepal (BBIN), where they often share common perspectives. More effective utilization of these frameworks could serve as a strategic means of fostering deeper bilateral trade and economic cooperation between the two countries. Addressing tariff and non-tariff barriers, improving connectivity, and diversifying export baskets could help reverse these trends and create a more stable and mutually beneficial trade relationship between the two countries.
General Overview
Nepal-Bangladesh Relations: From Historical Ties to New Economic Partnership
H.E. Ghanshyam Bhandari Ambassador of Nepal to Bangladesh
As close neighbors, Nepal and Bangladesh have always enjoyed excellent relations characterized by tremendous goodwill, solidarity, and respect. Nepal was the seventh country to recognize independent Bangladesh in 1971. Although formal diplomatic relations were established in 1972, the connections between our peoples, through trade and cultural ties, predate that milestone. Our relationship is grounded not only in geographic proximity but also in shared language, culture, traditions, and way of life.
Our two countries have always stood by each other in times of need, while acknowledging each other’s aspirations and sensitivities. Rooted in a true spirit of neighborliness, our relationship is also about a similar development story. We are co-authors of an evolving story of efforts and adventures, and challenges. These efforts and adventures have been at times modest and at times ambitious but always deeply aligned, and in sync.
Having said that, whenever we reflect on Nepal-Bangladesh relations, we often speak of the immense potential
and possibilities but also acknowledge the limited progress achieved thus far. There is a shared understanding that much remains to be done. In this context, it will be useful to identify clear guideposts aligned with the present realities and future priorities.
To unlock the true potential of this relationship, we must be willing to rethink, reform, and realign our policies and institutional frameworks. This requires a fresh and forward-looking approach — one that prioritizes the mutual benefit of our people.
Trade and Connectivity
While it is true that our current economic engagements remain modest in scale, we have nonetheless made significant headway in several key areas, including trade, investment, connectivity, and tourism.
We have been negotiating a Preferential Trade Agreement (PTA) aimed at boosting our bilateral trade. A dedicated Trade Negotiation Committee (TNC) has been tasked with negotiating the PTA text and finalizing product lists.
In addition to this, it is essential to enhance trade and investment linkages, including by eliminating or reducing the other duties and
charges (ODCs) and addressing logistical and procedural challenges. In parallel, we must also work towards harmonization and standardization of customs procedures, trade regulations, digital standards, and environmental policies, which are critical to fostering a more seamless and efficient trading environment.
These efforts gain added urgency as both our countries are set to graduate from the Least Developed Country (LDC) category by 2026. Of course, while graduation is a major development milestone for both our countries, it also brings challenges, including due to the loss of international support measures. So, we continue to share our experiences and lessons learned, particularly in regards to smooth transition strategies, and work together for a smooth, sustainable, and irreversible graduation.
We all know, as is any other bilateral context, connectivity is the beating heart of our relationship. At present, two airlines – Biman Bangladesh and Himalaya Airlines – are operating as many as 13 direct flights per week between Kathmandu and Dhaka. However, on the trade front, the Kakkarvitta-Fulbari-
Banglabandha corridor remains the only operational land route.
We appreciate Bangladesh’s gesture in granting Nepal access to Mongla and Chittagong seaports. Yet, utilization of these ports has thus far been limited, primarily due to distance and higher transshipment costs. But we are exploring ways to better utilize these ports for third-country trade and broader connectivity goals.
On the sub-regional level, ongoing negotiations under the Bangladesh, Bhutan, India, Nepal (BBIN) framework on the movement of cargo and passenger vehicles represent a vital step for connectivity. We believe that the successful conclusion of these discussions, by addressing each other’s concerns, if any, will be a significant milestone towards achieving seamless road connectivity in the sub-region.
Energy Cooperation
When we deliberate on NepalBangladesh ties, energy cooperation is seen as a promising avenue. The implementation of the first-ever trilateral powersales agreement among Nepal, Bangladesh, and India signed on the October 2, 2024 and the historic power flow of 40 MW hydroelectricity from Nepal to Bangladesh via the Indian grid has opened a new chapter in our economic partnership. With this, regular transmission of power is scheduled to occur for five months annually from mid-June to mid-November, aligning with Nepal’s peak energy generation period.
We know that this is just a small step but it carries
symbolic significance as it has the potential to generate new momentum for cooperation in the power sector both at bilateral and sub-regional levels. With a view to building on this momentum, talks are underway for a joint venture agreement between our two governments for the development of the 683 MW Sunkoshi III hydropower project. Additionally, Bangladesh authorities are negotiating with the GMR Company of India in finalizing the deal for importing 500 MW of electricity from the 900 MW Upper Karnali Hydropower Project.
Given Nepal’s immense hydropower potential and Bangladesh’s growing needs, energy cooperation is indeed a ‘sunrise industry’. So, it is imperative that we move beyond this symbolic beginning and strive to promote hydropower cooperation as the centerpiece of our bilateral relations.
Tourism and People-to-People Contacts
Cultural ties and people-topeople connections have long been the bedrock of our enduring friendship. These bonds are rooted in history and shared values; and consolidated by continuous exchange over the centuries.
Great Bengali scholars and philosophers such as Atish Dipankar and Vanaratna travelled to Nepal centuries ago to spread the teachings of Buddhism. It was in 1908 when renowned Bengali scholar Haraprasad Shastri discovered a palmleaf manuscript of the the Charyapada — a collection of
ancient Bangla poems — in the Royal Court of Nepal.
Our shared linguistic heritage is further evident in the fact that Sanskrit serves as the linguistic origin of both Nepali and Bangla languages. We celebrate common festivals, enjoy similar cuisines, and uphold many shared customs and traditions.
A vibrant example of our growing people-to-people connections is the tradition of Nepali students pursuing higher education in Bangladesh, especially in the field of medical studies. Currently, about 2700 Nepali students are studying in various universities across Bangladesh. Likewise, Nepal continues to be a favored destination for Bangladeshi tourists, with close to 50,000 visitors recorded in 2024.
These grassroot-level connections and exchanges have played a vital role in deepening our warm and friendly ties. We aspire to see these interactions grow in both directions. To this end, we must facilitate easier travel, expand scholarship opportunities for our students, and promote further cultural linkages, ensuring that our friendship is not only between governments, but also deeply rooted in strong people-topeople connections.
Need for Renewed Outlook
It is indeed a matter of satisfaction that Nepal Economic Forum (NEF) and the Centre for Policy Dialogue (CPD) have come together to undertake a study on ‘Nepal-Bangladesh Relations- A Renewed Outlook’. I commend both institutions for their commitment to fostering
dialogue, generating knowledge, and strengthening bilateral cooperation. I am confident that the study will delve into all critical aspects of our partnership, offering fresh insights and actionable recommendations to enhance collaboration between our two countries.
Of course, we all understand that this is easier said than done. It is often said that in diplomacy, we think and talk in ‘poetry’ but act
in ‘prose’ because the challenges we face are real, and at times, formidable. Yet, we now stand at a pivotal moment to shape the future of Nepal–Bangladesh relations in a manner that is both ambitious and anchored in grounded realities. I hope the research team will rise to the occasion and do full justice to this opportunity.
I wish them every success in their endeavor.
This article is based on Ambassador Bhandari’s remarks at the Dhaka Roundtable on August 3, 2025, entitled “Nepal–Bangladesh Relations: A Renewed Outlook.”
A New Chapter for Neighbors: Unlocking the Untapped Trade Potential Between Nepal and Bangladesh
Shikha Thapa Magar (PhD) Executive Director, Nepal Development Research Institute
Nepal and Bangladesh share a history of goodwill, with diplomatic ties stretching back to 1972.512 Despite their close geographic proximity, separated by a mere 22-kilometer stretch of Indian territory known as the "Siliguri Corridor," their economic relationship has remained a fraction of its true potential. For too long, bilateral trade has been hindered by a web of bureaucratic, infrastructural, and regulatory challenges, preventing it from flourishing. The time has come for both nations to move beyond the traditional narrative and embrace a deeper, more dynamic partnership built on economic integration.
The current state of trade reflects this untapped potential. In the fiscal year 2022-2023, the total trade volume hovered around a modest USD 49 million. The balance is heavily skewed in Bangladesh's favor, with its exports to Nepal, including pharmaceuticals, readymade garments, and jute products, valued at roughly USD 44.33 million. In stark contrast, Nepal's exports to Bangladesh, which are primarily agricultural goods like lentils, spices, and medicinal herbs, amounted to a mere USD 4.34 million.
The Roadblocks to a Thriving Partnership
The reasons for this trade imbalance are numerous and were a central theme of recent roundtable dialogues in Kathmandu and Dhaka coorganized by the Centre for Policy Dialogue (CPD) and Nepal Economic Forum (NEF), which brought together policymakers and experts from both nations.
A major barrier is the high tariffs and other duties and charges (ODCs) levied on Nepali goods by Bangladesh. As a report from South Asia Watch on Trade, Economics and Environment (SAWTEE) noted, these tariff and para-tariff barriers are the primary constraint on Nepal's exports. A proposed Preferential Trade Agreement (PTA) is being negotiated to address this, but it faces its own hurdles. For instance, Nepal is seeking concessions on 75 products, while Bangladesh has so far only offered a preferential rate on 20.7% of them. The negotiations are further complicated by a geopolitical challenge: any concessions Nepal grants must also be extended to India.513
Beyond tariffs, logistics and infrastructure pose a formidable
challenge. The lack of direct connectivity between the two countries means that most trade must pass through India, which adds significant time and cost to transactions. While a transit route via the KakarbhittaPhulbari-Banglabandha corridor exists, it is underutilized due to cumbersome border procedures. This has led to an astonishingly high trading cost for Nepal, which stands at an estimated 270%. Simply put, inefficient infrastructure makes trade expensive and slow, hindering its growth.
Unlocking the Potential: New Avenues for Collaboration
Despite these challenges, the outlook is far from bleak. The conversations between experts, including those from the Nepal Development Research Institute (NDRI), CPD, NEF, and SAWTEE, underscore the immense opportunities that lie ahead.
The single biggest game-changer is power trade. Nepal, a land rich in hydropower potential, and Bangladesh, a nation with a rapidly growing energy demand, are perfect partners. A pilot project to export 40 MW of electricity from Nepal to Bangladesh is already in the
works, but the long-term goal is much more ambitious.514 With a target of trading 9,000 MW by 2040, a full-fledged power trade agreement could not only meet Bangladesh’s energy needs but also provide a stable, long-term source of revenue for Nepal.
Diversification of products and industries is another key area. The current trade basket is narrow, but both nations have products with significant untapped export potential. Nepal could increase its exports of highvalue agricultural products like large cardamom and ginger, as well as industrial goods like palm oil and yarn. Bangladesh, in turn, could explore investments in Nepal, particularly in sectors that complement its own strengths, such as the garment industry. A strategic partnership could see Bangladeshi companies invest in Nepal to utilize its abundant hydropower for manufacturing, creating a joint industrial value chain.
Enhanced connectivity and people-to-people exchanges are also critical. While physical transit remains an issue, both countries can capitalize on other forms of connectivity.515 Increasing the number of flights between Dhaka and Kathmandu from the current 13 per week would boost tourism and business exchanges.
There's also immense potential for educational exchanges, with many Nepali students already studying medicine and engineering in Bangladesh, and a growing opportunity for Bangladeshi students to pursue degrees in hospitality and management in Nepal. Digital finance presents another new frontier, with discussions around cross-border payment platforms to ease business and tourism transactions.
Climate Change Cooperation is a new and crucial area of collaboration. Nepal, with its expertise in mountain ecosystems and communitybased adaptation strategies, can partner with Bangladesh, a country facing significant climate risks in its delta region. By conducting collaborative research and presenting a unified position at international forums like Conference of the Parties (COP) summits, the two nations can not only address the impacts of climate change in their respective regions but also position themselves as leaders in climate resilience and adaptation on the global stage.
A Shared Path to Prosperity
As both Nepal and Bangladesh prepare to graduate from Least Developed Country (LDC)
status in the coming years, the nature of their relationship will naturally shift from aid to trade and investment. This transition presents a perfect opportunity to move past political hurdles and focus on economic integration, as urged by H.E. Mr. Ghanshyam Bhandari, the Ambassador of Nepal to Bangladesh.516
The policy recommendations from the roundtable are clear: finalize a meaningful PTA that addresses ODCs, upgrade infrastructure and logistics, and engage with India to find better transit solutions. By working together on these fronts, Nepal and Bangladesh can build a dynamic economic partnership that not only benefits their own people but also contributes to the greater prosperity of the South Asian region. It’s a partnership based not just on shared history and culture, but on a shared vision for a more prosperous future.
Next-door Neighbors: Diversifying Nepal–Bangladesh Trade for a Shared Future
Sudip Bhaju Executive Board Member, Nepal Economic Forum
Despite being next-door neighbors separated by just a narrow 21-kilometer stretch across India’s Siliguri Corridor, famously called the “chicken’s neck” which Aman Pant, a Senior Fellow at Nepal Economic Forum (NEF), aptly compares to running a half marathon to reach Bangladesh, Nepal and Bangladesh continue to be surprisingly unfamiliar with one another. For many Nepalis, Bangladesh is often reduced to medical college, garments, traffic, and floods. Similarly, for many Bangladeshis, Nepal is only Everest, trekking, Buddha, and earthquake. The two nations share a common pattern of a young population, aspirational middle classes, a passion for cricket and enduring legacies of medical student exchanges and academic ties. The relationship between Nepal and Bangladesh requires more attention and exploration because both countries face the twin challenges of diversifying their economies and graduating from the Least Developed Country (LDC) status by 2026. In today’s increasingly disordered world, bilateralism and regional integration have become ever more necessary and important.
The trade relationship between Nepal and Bangladesh shows great promise but remains minimal. Nepal’s exports to Bangladesh peaked at USD 66.5 million in 2008517 but have since declined, reaching barely USD 3.3 million in 2023/24518 — a drop of nearly 20% from the previous year. The import data shows a similar pattern with USD 27.7 million519 in the same year representing a 36% decrease. Geographic proximity between the two has failed to translate into a tangible trade relationship.
In recent years, energy cooperation appears as a promising opportunity backed by the trilateral agreement between Nepal, India, and Bangladesh. Nepal exported its first 40 MW of electricity to Bangladesh in 2023 and has plans to expand the agreement for an additional 40 MW.520 Bangladesh needs clean power to green its readymade garments sector because of its large demand and Nepal has surplus hydro during the wet season which makes it seem like a perfect match. The concept of “green garments” which refers to Bangladeshi clothing produced through Nepali hydroelectric power has been proposed as
a potential branding strategy for both nations. The situation in goods trade appears more concerning than in other areas. The export prospects of black cardamom, yarn, and lentils which were once promising products for Nepal have vanished from the export basket of Nepal. The combination of high tariffs and complicated procedures and special treatment for Bhutan's similar products have reduced Nepal's competitive edge which has resulted in a weak export of these products which is highly sensitive to market changes.
The symbolic agreements fail to resolve the core structural issues which persist in the system. The ongoing Free Trade Agreement (FTA) negotiations between the two nations are engulfed in its own complexities as any tariff concession to Bangladesh automatically extends to India under the IndiaNepal Trade Treaty. The situation creates a genuine challenge because preferences designed for Bangladesh might end up providing undue advantages to India. This situation should play down our expectations regarding the FTA and we should work on establishing sectoral
partnerships that avoid these structural barriers.
Looking Beyond the Traditional Sectors
Unlocking bilateral trade between Nepal and Bangladesh needs to be explored through newer and more resilient areas of complementarity instead of awaiting the results of a FTA that is caught up in complexities and seeks to expand a traditional export basket with limited opportunities for enhanced trade.
Tourism: Adventure, Wellness, and Youth Appeal. Bangladesh contributes significantly to tourist arrivals in Nepal, but the potential is much larger. With a youthful and aspirational population and growing interest in adventure travel, nightlife, and wellness getaways, Nepal can be a premier destination for Bangladeshi tourists. Similarly, in the tourism sector of Bangladesh that continues to expand, Nepalis can choose to visit Sunderbans, Cox’s Bazar, and St. Martin’s Island showing the potential for two-way tourism.
The current flight schedule includes around 12 weekly direct flights between Dhaka and Kathmandu which serve as the main entry point because road travel remains limited for Bangladeshi visitors. The air connectivity should be utilized through improved packages and competitive fares and bundled travel experiences to make tourism a powerful force for strengthening bilateral relations.
Information Technology and Digital Services. The IT sector is another area which demonstrates
strong potential for future growth. The Government of Nepal has prioritized and designated 2024–34 as its “IT Decade” to achieve export targets of USD 25 billion.521 The financial sector of Bangladesh operates with energy yet it has not achieved complete digital transformation. Collaborations like the recent Filps partnership with Bangladeshi banks illustrate how firms promoted by Nepalis can provide agility and global connections while Bangladesh offers scale and a large domestic market.
The digital platforms operating in Bangladesh, including Daraz for e-commerce and Pathao for ride-sharing and logistics, demonstrate how consumerfacing apps can facilitate crossborder trade and services. If Nepali IT companies engage with these platforms to enter Bangladesh's market by implementing backend solutions and digital payment integration and developing cross-border services, they could leverage Bangladesh’s scale while creating regional pathways for growth.
The collaborative work between Nepal and Bangladesh shows how the two nations can build their digital economies through expanded digital market access for regional entrepreneurs.
Processed
Foods and Pickles. Nepali companies have already started exporting their products such as noodles, snacks, and pickles to foreign markets with Wai Wai going global and Yashoda Foods entering the border towns of India and Bhutan. Research shows Nepali products will succeed in the market when supply chains and branding
strategies are properly aligned. The growing pickle industry in Nepal shows potential to enter the urban market of Bangladesh. Furthermore, the introduction of halal-certified dry meat and processed meat products to Bangladesh is possible because these products already have export markets in Gulf countries where halal certification is mandatory for consumers.
Cosmetics and Lifestyle Products.
The Nepali cosmetics and herbal products market which use ayurvedic and natural ingredients show promise for expansion into Bangladesh's increasing middle-income population. Organic and natural brand popularity among consumers creates a chance for Nepali products to differentiate themselves from standard imported goods. The emerging lifestyle industry, if paired with branding around purity and authenticity, could find significant uptake among young Bangladeshi consumers.
Hospitality Services and Gastronomy. Hospitality services are also emerging as vibrant connectors. The upscale neighborhoods of Dhaka including Baridhara, Banani, and Gulshan experience growing demand for high-end dining and lifestyle services from both the affluent local middle class and expatriate communities. This creates space for Nepali restaurant ventures, hotel chains, and service businesses like Himalayan Java, Dalle, and Jimbu Thakali to establish themselves not as casual eateries but in the upscale dining and lifestyle segment.
Bridging Beyond the FTA
If Nepal-Bangladesh relations are to evolve into a more tradedriven and true economic partnership, both sides must act with pragmatism. The FTA negotiations encounter regional obstacles, but Nepal maintains access to current sectoral market opportunities in hydropower, IT, food processing, tourism, and education. The improvement of logistics and connectivity stands as equally important because trading through Banglabandha and Mongla continues to be expensive and impractical even after transit agreements were established thereby requiring
immediate action to optimize customs procedures for SMEs. The Bangladesh, Bhutan, India, Nepal (BBIN) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) regional frameworks serve as testing grounds for cross-border energy grid projects as well as the development of digital payment systems and tourism routes. The integration process does not need to rely solely on tariff schedules because entrepreneurs and consumers, along with shared aspirations, can drive it. Both countries share a dual connection to their historical past and their potential
for development because they currently face identical challenges in their quest to leave the LDC category behind. The trade statistics indicate poor performance, but the will to diversify and deepen ties is common. As neighbors who have too often looked past each other, this is the moment to look across — beyond the chicken’s neck, beyond the narrow baskets of lentils and textiles — and start creating a new partnership.
Learn more about other work produced by Nepal Economic Forum
NEF’s publication, ‘Introspecting Change’ probes into Nepal’s socioeconomic journey from 2006 to 2021 – of what has been achieved and what is yet to be achieved. The publication presents a wealth of data spanning over a decade, covering diverse sectors such as tourism, agriculture, energy, and more.
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The Nefsearch titled, “Dissecting Nepal’s Trade: Trends, Challenges, and Future Potentials” analyzes the trends of trade in Nepal along with its future prospects.This Nefsearch has been authored by Pooja Suwal, Pratisha Lakhey and Sagar Jung Karki.
Click here to read the report.
NEFport 61, titled "Reforms 2.0: Unpacking the High-Level Economic Reforms Commission", delves into the formation, objectives, and proposed actions of the Commission established by the Government of Nepal in October 2024. This issue captures the momentum around reform implementation and includes key economic and policy updates from March 1 to May 31, 2025.
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NEF has launched its Economic Dashboard - NEFData! It covers three sectors with a vast array of economic data. Additionally, for the first time, get insights into capital and recurrent expenditure for defense.
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"NEFmeet 2024, ‘Towards Connected Economy’ concluded on November 11 with experts discussing the current scenario and prospects of an increasingly interdependent world.
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Endnotes
1 “Democracy Index,” Our World in Data, 2024, https://ourworldindata.org/grapher/democracy-indexeiu?tab=chart&country=~NPL.
2 “Nepal: Freedom in the World 2024 Country Report,” Freedom House, n.d., https://freedomhouse.org/country/nepal/freedomworld/2024.
4 “The Heritage Foundation, “Index of Economic Freedom: All Country Scores,” The Heritage Foundation, February 2025, https://www. heritage.org/index/pages/all-country-scores. https://www.heritage.org/ index/pages/all-country-scores.
5 “The Fund for Peace,” Fragile States Index, https:// fragilestatesindex.org/country-data/.
6 “2024 Corruption Perceptions Index - Explore Nepal’s Results,” Transparency.org, February 11, 2025, https://www.transparency. org/en/cpi/2024/index/npl.
7 “India and China Agree to Reopen Lipulekh Trade Route,” The Kathmandu Post , August 20, 2025, https://kathmandupost.com/ national/2025/08/20/india-and-china-agree-to-reopen-lipulekh-traderoute.
8 “Nepal Sends Diplomatic Notes to India, China on Lipulekh,” The Kathmandu Post , August 23, 2025, https://kathmandupost.com/ national/2025/08/23/lipulekh-nepal-sends-diplomatic-notes-to-indiachina.
9 Ibid
10 “India-China Lipulekh Deal Sparks Political Debate,” Setopati, 2025, https://en.setopati.com/political/165057.
11 “NUP Chairperson Ranjita Shrestha removed from party,” HimalPress, July 30, 2025, https://en.himalpress.com/nup-chairpersonranjita-shrestha-removed-from-party/
12 “Ranjita Shrestha Steps Aside Amid Intra-Party Tensions; Bastola Named Acting Chair,” My Republica, July 27, 2025, https://www. myrepublica.nagariknetwork.com/news/ranjita-shrestha-steps-asideamid-intra-party-tensions-bastola-named-acting-87-86.html
13 “Nagarik Unmukti Party Removes Ranjita Shrestha as Chairperson,” Setopati, July 30, 2025, https://en.setopati.com/ political/164956
14 “Election Commission Recognises Ranjita Shrestha as Nagarik Unmukti Party Chair,” The Kathmandu Post, August 13, 2025, https:// kathmandupost.com/national/2025/08/13/election-commissionrecognises-ranjita-shrestha-as-nagarik-unmukti-party-chair
15 Ibid
16 “JSP forges working alliance with Rastriya Mukti Party,” My Republica, August 15, 2025, https://myrepublica.nagariknetwork.com/ news/jsp-forges-working-alliance-with-rastriya-mukti-party-59-93.html
17 Ibid
18 “JSP and Rashtriya Mukti Party announce working unity, eye full merger,” Khabarhub, August 14, 2025, https://english.khabarhub. com/2025/14/490899/
19 Purushottam Poudel, “Madhesh-based parties’ Front faces setback within months of formation after Rai-Mahato deal,” The Kathmandu Post, August 21, 2025, https://kathmandupost.com/ politics/2025/08/21/madhesh-based-parties-front-faces-setbackwithin-months-of-formation-after-rai-mahato-deal
20 Ibid
21 “Civil Service bill, 2024,” House of Representatives, Nepal, Accessed on October 12, 2025, https://hr.parliament.gov.np/en/ bills/0uAfbFqR
22 “Upper House Committee Agrees to Impose Two-Year
Cooling-Off Period,” The Kathmandu Post, August 31, 2025, https:// kathmandupost.com/politics/2025/08/31/upper-house-committeeagrees-to-impose-two-year-cooling-off-period
23 Ibid
24 “Nepal Endorses Citizenship Bill Allowing Use of Either Parent’s Name,” Onlinekhabar, 2025. https://english.onlinekhabar.com/nepalendorses-citizenship-bill-allowing-use-of-either-parents-name.html
27 “Nepal’s Citizenship Bill Eases Process but Gender Bias Remains,” The Kathmandu Post, July 9, 2025, https://kathmandupost.com/ national/2025/07/09/citizenship-bill-eases-process-but-gender-biasremains
28
“Judicial Council transfers judges in bulk,” The Kathmandu Post, August 16, 2025, https://kathmandupost.com/national/2025/08/16/ judicial-council-transfers-judges-in-bulk
29 Ibid
30 Anil Giri, “Nepal and India to Finish Boundary Work in Three Years, Barring Kalapani and Susta,” The Kathmandu Post, July 30, 2025, https://kathmandupost.com/national/2025/07/30/nepal-india-to-finishboundary-work-in-three-years-barring-kalapani-and-susta
31 Ibid
32 “Press Release: 7th Meeting of Nepal–India Boundary Working Group,” Ministry of Foreign Affairs, Government of Nepal, July 30, 2025, https://mofa.gov.np/content/1618/press-release--7th-meeting-of-nepalindia-boundary/#:~:text=The%20BWG%20is%20a%20joint,pillars%20 and%20other%20technical%20tasks
33 Ibid
34
“Visit of Foreign Secretary Shri Vikram Misri to Nepal (August 17–18, 2025),” Ministry of External Affairs, Government of India, August 17, 2025, https://www.mea.gov.in/press-releases.htm?dtl/40006/ t+of+Foreign+Secretary+Shri+Vikram+Misri+to+Nepal+August+1718+2025
35 Anil Giri, “Indian Foreign Secretary Misri Arrives in Kathmandu on Two-Day Visit,” The Kathmandu Post, August 17, 2025, https:// kathmandupost.com/national/2025/08/17/indian-foreign-secretarymisri-arrives-in-kathmandu-on-two-day-visit-1755404068
36
“Visit of Foreign Secretary Shri Vikram Misri to Nepal (August 17–18, 2025),” Ministry of External Affairs, Government of India, August 17, 2025, https://www.mea.gov.in/press-releases.htm?dtl/40006/ it+of+Foreign+Secretary+Shri+Vikram+Misri+to+Nepal+August+1718+2025
37 Ibid
38
“Prime Minister Oli Attends Reception Hosted by Chinese President Xi,” The Kathmandu Post, August 31, 2025, https:// kathmandupost.com/national/2025/08/31/prime-minister-oli-attendsreception-hosted-by-chinese-president-xi
39 “Press release Engagements of the Rt. Hon. Prime Minister,” Ministry of Foreign Affairs, Government of Nepal, https://mofa.gov.np/ content/1662/engagements-of-the-rt--hon--prime-minister/
40
“Oli Expresses Optimism to Global Governance Initiative Proposed by Xi,” The Kathmandu Post. September 2, 2025, https:// kathmandupost.com/national/2025/09/02/oli-expresses-optimism-toglobal-governance-initiative-proposed-by-xi
41 “World Economic Outlook”, International Monetary Fund, accessed on April 23, 2025. https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025
42 ibid
43
“Total Population by Sex”, United Nations Data Portal Population Divisions, accessed on February 22, 2025. https://population.
44 “FAO Food Prices Index”, Food and Agriculture Organization of the United Nations, February 7, 2025. https://www.fao.org/ worldfoodsituation/foodpricesindex/en/
45 Era Dabla-Norris, Davide Furceri, Raphael Lam and Jeta Menkulasi. “Global Public Debt Is Probably Worse Than it Looks”, International Monetary Fund, October 15, 2024. https://www.imf.org/en/ Blogs/Articles/2024/10/15/global-public-debt-is-probably-worse-thanit-looks
46 World Bank, Global Economic Prospects – June 2025, Washington, D.C.: World Bank, June 10, 2025, https://openknowledge. worldbank.org/server/api/core/bitstreams/ae99c04a-95cd-4847-bbdd824975f21c02/content
47 International Monetary Fund. World Economic Outlook Update, July 2025: Global Economy: Tenuous Resilience amid Persistent Uncertainty. Washington, D.C.: International Monetary Fund, July 29, 2025. https://www.imf.org/en/ Publications/WEO/Issues/2025/07/29/worldeconomic-outlook-update-july-2025
48 World Bank, Global Economic Prospects, June 2025, Washington, D.C.: World Bank, 2025, https://doi.org/10.1596/978-1-46482193-6
49 International Monetary Fund. World Economic Outlook Update, July 2025: Global Economy: Tenuous Resilience amid Persistent Uncertainty. Washington, D.C.: International Monetary Fund, July 29, 2025. https://www.imf.org/en/Publications/WEO/Issues/2025/07/29/worldeconomic-outlook-update-july-2025
50 Organization for Economic Co-operation and Development (OECD), OECD Economic Outlook, Volume 2025 Issue 1: Tackling Uncertainty, Reviving Growth, No. 117, Paris: OECD Publishing, 2025, https:// www.oecd.org/en/publications/oecd-economic-outlook-volume-2025issue-1_83363382-en.html
51 United Nations Department of Economic and Social Affairs (UN DESA), MB190, 2025, https://www.un.org/development/desa/dpad/ wp-content/uploads/sites/45/MB190.pdf
52 Asian Development Bank, Asian Development Outlook: July 2025 Supplement, July 2025, accessed August 25, 2025, https://www.adb. org/outlook/editions/july-2025
53 “Trump Targets India with 25% Tariff, Penalties over Russian Oil Imports,” BBC News, July 30, 2025, https://www.bbc.com/news/articles/ c1dxr1g4y7yo
54 “U.S. Accuses India of Profiteering from Russian Oil,” CNBC, August 19, 2025, https://www.cnbc.com/2025/08/19/us-accuses-indiaof-profiteering-from-russian-oil.html
55 “Trump Hits India with Extra 25% Tariff for Buying Russian Oil,” BBC, August 6, 2025, https://www.bbc.com/news/articles/c1dxr1g4y7yo
56 “Amid U.S. Tariff Friction, India Engages China and Russia in High-Stakes Diplomacy,” New Indian Express, August 13, 2025, https://www.newindianexpress.com/nation/2025/Aug/13/amid-us-tarifffriction-india-engages-china-and-russia-in-high-stakes-diplomacy
57 “India’s Modi Meets China’s Top Diplomat Wang as Asian Powers Rebuild Ties,” Al Jazeera, August 19, 2025, https://www.aljazeera. com/news/2025/8/19/indias-modi-meets-chinas-top-diplomat-wangas-asian-powers-rebuild-ties
58 “China’s Industrial Output, Retail Sales and FAI (Fixed Asset Investment),” Statista, August 2025, https://www.statista.com/ chart/34994/chinas-industrial-output-retail-sales-and-fai/ 59 Ibid
60 UOB Kay Hian, “China Economic Slowdown Deepens in July 2025 as Trade War Pressures Mount – Industrial Production, Retail Sales & FAI Miss Expectations,” Minichart, August 19, 2025, https://www.minichart. com.sg/2025/08/19/china-economic-slowdown-deepens-in-july-2025as-trade-war-pressures-mount-industrial-production-retail-sales-faimiss-expectations/
61 “China Targets ‘Around 5%’ Growth in 2025 and Lays Out Stimulus Measures as Trade Worries Mount,” CNBC, March 5, 2025, https://www.cnbc.com/2025/03/05/china-reportedly-targets-around-
62 United Nations Conference on Trade and Development. “Global Trade Grew $ 300 Billion in the First Half of 2025, Led by US Imports and EU Exports.” United Nations Conference on Trade and Development, July, 8, 2025. https://unctad.org/news/global-trade-grew300-billion-first-half-2025-led-us-imports-and-eu-exports
63 Ibid
64 Organization for Economic Cooperation and Development. “G20 merchandise trade showed modest growth in Q2 2025, while services trade growth accelerated amid increased trade uncertainty.” Organization for Economic Cooperation and Development, August 26, 2025. https://www.oecd.org/en/data/insights/statisticalreleases/2025/08/international-trade-statistics-trends-in-secondquarter-2025.html
65 Ibid
66 David P Ball. “Trump’s tariffs forge ‘feeling of big betrayal in Canada’s manufacturing.” Al Jazeera, July 30, 2025. https://www.aljazeera. com/economy/2025/7/30/trumps-tariffs-forge-feeling-of-big-betrayalin-canadas-manufacturing
67 Al Jazeera. “Canada Sheds Tens of Thousands of Jobs as Trump Tariffs Hit.” Al Jazeera, August 8, 2025. Accessed August 28, 2025. https://www.aljazeera.com/economy/2025/8/8/canada-sheds-tens-ofthousands-of-jobs-as-trump-tariffs-hit
68 Centre for Economic Policy Research. “EU Jobs and US Trade: Navigating Change.” VoxEU, August 2025. Accessed August 28, 2025. https://cepr.org/voxeu/columns/eu-jobs-andus-trade-navigating-change#:~:text=Eurostat%20(2024)%2C%20 %E2%80%9CMacroeconomic,Footnotes
69 Reuters. “Hit by US Tariffs, Indonesia Plans to Sell Shrimp to China Instead.” Reuters, August 6, 2025. Accessed August 28, 2025. https://www.reuters.com/world/china/hit-by-us-tariffs-indonesiaplans-sell-shrimp-china-instead-2025-08-06/?taid=68935fea32f354 0001d069c4&utm_campaign=trueAnthem:+Trending+Content&utm medium=trueAnthem&utm_source=twitter
70 Ibid
71
72
“Road to Geneva | Plastic Pollution INC-5.2.” Geneva Environment Network, August 25, 2025. Accessed August 28, 2025. https://www.genevaenvironmentnetwork.org/resources/updates/road-togeneva-plastic-pollution-inc-5-2/
73 Ibid
74 Ibid
75 Ibid
76 Ibid
77
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
78 Ibid
79
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
80
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
81 Ibid
82 “Nepal Development Update,” World Bank Group, April 2025, https://documents1.worldbank.org/curated/en/099951004022532326/ pdf/IDU-c2bf0781-1145-4639-8b64-321016ade046.pdf
83
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
84 “Asian Development Outlook (ADO),” Asian Development
Bank, April 2025, http://dx.doi.org/10.22617/FLS250135-3
85
“Nepal Development Update,” World Bank Group, April 2025, https://documents1.worldbank.org/curated/en/099951004022532326/ pdf/IDU-c2bf0781-1145-4639-8b64-321016ade046.pdf
86
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
87 “Monetary Policy for 2024/25”, Nepal Rastra Bank, https://www.nrb.org.np/contents/uploads/2025/08/Monetary Policy_2082-083_English.pdf
88 Ibid
89 Ibid
90 Ibid
91 Ibid
92
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
93 Ibid
94 Ibid
95 Ibid
96
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
97 Ibid
98 Ibid
99
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
100 Ibid
101 Ibid
102 Ibid
103 Ibid
104 Ibid
105
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
106
“Annual Report on Industry Registration and Foreign Investment, FY 2024/25,” Department of Industry, July 23, 2025, https:// doind.gov.np/uploads/notices/Notices-20250723121644561.pdf
107
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
108 Ibid
109 Ibid
110 Ibid
111 “Nepal Development Finance Information Management System (DFIMS),” Ministry of Finance, Accessed August 29, 2025, https:// dfims.mof.gov.np/development-partner/All
112 Ibid
113 Ibid
114
“Nepal: World Bank Approves $257 Million to Improve Electricity and Irrigation Services,” World Bank, June 1, 2025, https:// www.worldbank.org/en/news/press-release/2025/06/01/nepalworld-bank-approves-257-million-to-improve-electricity-andirrigation-services#:~:text=WASHINGTON%2C%20June%201%2C%20 2025%E2%80%94The%20World%20Bank's%20Board,improving%20 irrigation%20services%20to%20boost%20agricultural%20productivity
115 Ibid
116
“Govt to Receive Rs 50.51 Billion Soft Loan from the World Bank,” The Himalayan Times, June 18, 2025, https://thehimalayantimes. com/nepal/govt-to-receive-rs-5051-billion-soft-loan-from-the-worldbank
117 Ibid
118
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
125
“Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2024/25)”, Nepal Rastra Bank, Accessed August 28, 2025, https://www.nrb.org.np/category/current-macroeconomic-situa tion/?department=red&fy=2081-82&subcategory=annual
136 "Foreign Trade Statistics 2081/82", Department of Customs, July, 22, 2025, https://customs.gov.np/content/10/statistics-a and-2081-82/
137
”Current Macroeconomic and Financial Situation-Tables (Based on Annual Data of 2024/25)”, Nepal Rastra Bank, August, 24, 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2081-82&subcategory=annual
140
“Federation of Nepal Gold and Silver Dealer’s Association”, https://www.fngsgja.org.np/
142
”Current Macroeconomic and Financial Situation-Tables (Based on Annual Data of 2024/25)”, Nepal Rastra Bank, August, 24, 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2081-82&subcategory=annual
147
“Current Macroeconomic and Financial Situation – English (Based on Annual Data of 2024/25),” Nepal Rastra Bank, August 24, 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2081-82&subcategory=annual
156 Ibid
157 Ibid
158 Ibid
159 Ibid
160 Ibid
161 “Cabinet declares Madhesh Province a disaster crisis zone,” The Kathmandu Post, July 23, 2025, https://kathmandupost. com/national/2025/07/23/cabinet-declares-madhesh-province-adisaster-crisis-zone#:~:text=The%20Cabinet%20meeting%20on%20 Wednesday,the%20Ministry%20of%20Home%20Affairs.
162 ”Pronvincial Level Planting Summary,” Department of Agriculture, August 19, 2025, https://doanepal.gov.np/ noticedetail/164/2025/85257799
163 Sravan Shrestha, Sarthak Shrestha and Vuyasi Rajbhandari, "Drought in the grain basket: A silent agricultural crisis in Nepal’s Madhesh Province," ICIMOD, August 14, 2025, https://blog.icimod.org/cryospherewater-risks/drought-in-the-grain-basket-a-silent-agricultural-crisis-innepals-madhesh-province/#:~:text=Drought%20in%20the%20grain%20 basket,transplantation%20and%20threatening%20food%20security.
164 "Nepali honey facing market problem with 21 tonnes stuck in stock," Republica, June 7, 2025, https://myrepublica.nagariknetwork.com/ news/nepali-honey-facing-market-problem-with-21-tonnes-stuck-instock-13-73.html.
165 Grishma Tamang, "6th National Honey Fair Commences at Bhrikutimandap," Taksar News, June 5, 2025, https://en.taksarnews. com/2025/06/3397/.
166 Ibid
167 "Centre reduces Basic Custom duty (BCD) on major imported Crude edible Oils from 20% to 10%," Ministry of Consumer Affairs, Food & Public Distribution, June 11, 2025, https://www.pib.gov.in/ PressReleasePage.aspx?PRID=2135774.
168 Ibid
169 "Lawmakers call on govt to provide fertilizer to farmers," Republica, August 14, 2025, https://myrepublica.nagariknetwork.com/ news/lawmakers-call-on-govt-to-provide-fertilizer-to-farmers-75-25. html
170 "Public Procurement Act blamed for delayed fertilizer delivery," Republica, August 15, 2025, https://myrepublica.nagariknetwork. com/news/public-procurement-act-blamed-for-delayed-fertilizerdelivery-76-93.html
171 Ibid
172 "Fertiliser shortage pushes Lumbini farmers to lean on costly imports," The Kathmandu Post, June 1, 2025, https://kathmandupost.com/ money/2025/06/01/fertiliser-shortage-pushes-lumbini-farmers-to-leanon-costly-imports
173 “Govt. Urges Bodies Concerned to Clear Dues of Dairy Farmers Immediately,” The Rising Nepal, June 27, 2025, https://risingnepaldaily com/news/64227
174 “DDC to Adjust Prices for Sale of 600 Metric Tons of Dairy Products amid Surplus,” Republica, June 25, 2025, https://myrepublica. nagariknetwork.com/news/ddc-to-adjust-prices-for-sale-of-600metric-tons-of-dairy-products-amid-sur-47-31
175 Ibid
176 “Milk Production Remains Ample in Off-Season,” The Rising Nepal, June 16, 2025, https://risingnepaldaily.com/news/63629
177 Ibid
178 “Gorkha Dairy Farmers to Receive Cash Incentives for Milk Production,” The Himalayan Times, August 25, 2025, https:// thehimalayantimes.com/business/gorkha-dairy-farmers-to-receivecash-incentives-for-milk-production
179 Ibid
180 Paul Gibbs, “Lumpy Skin Disease in Cattle,” MSD Manual, September 24, 2025, https://www.msdvetmanual.com/integumentarysystem/pox-diseases/lumpy-skin-disease-in-cattle
181 “Lumpy Skin Disease Spreads in Jhapa Again, Over 6,000 Cattle Infected and 54 Dead,” The Kathmandu Post, June 27, 2025, https://
“Agriculture Insurance Could Not Come Out of Livestock Insurance, Almost 100 Percent Insurance of Livestock,” Insurance Khabar, August 20, 2025, https://insurancekhabar.com/en/agriculture-insurancecould-not-come-out-of-livestock-insurance-almost-100-percentinsurance-of-livestock-2
188 “In Nepal, Farmers Get Rs. 10,000 per Year Due to Measles and Parasitic Diseases. Loss of Rs 15 Billion,” Insurance Khabar, August 27, 2025, https://insurancekhabar.com/en/in-nepal-farmers-get-rs-10000-peryear-due-to-measles-and-parasitic-diseases-loss-of-rs-15-billion-2
189 "Economic Reform Implementation Action Plan, 2082," Office of Prime Minister and Council of Ministers, May 23, 2025, https://www opmcm.gov.np/wp-content/uploads/2025/05/Action-Plan_final-1.pdf
190 "Monetary Policy for 2025/26," Nepal Rastra Bank, August 20, 2025, https://www.nrb.org.np/contents/uploads/2025/08/Monetarypolicy-in-English-2025_26.pdf
191 “Economic Survey 2023/24,” Ministry of Finance, 2024. https:// mof.gov.np/content/281/economic-survey-2023-2
197 House Committee Passes Education Bill Despite Opposition Dissent,” The Himalayan Times, August 22, 2025, https:// thehimalayantimes.com/kathmandu/house-committee-passeseducation-bill-despite-opposition-dissent
198 “House Committee Passes Education Bill Despite Opposition.” 2025. The Kathmandu Post. August 22, 2025. https://kathmandupost.com/ politics/2025/08/22/house-committee-passes-education-bill-despiteopposition
199 What Kind of Changes is the School Education Bill Trying to Make?” 2025. eKantipur. August 19, 2025. https://ekantipur.com/ Education/2025/08/19/en/what-kind-of-changes-is-the-schooleducation-bill-trying-to-make-09-55.html
200 House Committee Passes Education Bill Despite Opposition, Dissent.” 2025. The Himalayan Times. https://thehimalayantimes. com/kathmandu/house-committee-passes-education-bill-despiteopposition-dissent
201 Ibid
202 “SEE results out: 61.81 percent students secure grades.” The Kathmandu Post, June 27, 2025, https://kathmandupost.com/ national/2025/06/27/see-results-out-61-81-percent-students-securegrades
203 “SEE Result 2081 Published.” Edusanjal, June 27, 2025, https://
edusanjal.com/news/see-result-2081-published/
204 Biken K. Dawadi, “SEE results improve this year with over 61 percent examinees graded.” Republica, June 27, 2025, https:// myrepublica.nagariknetwork.com/news/see-results-improve-this-yearwith-over-61-percent-examinees-graded-15-12.html
205 Ibid
206 Ibid
207 Ibid
208 Ibid
209 “NEB Publishes Grade 12 Results: Over 61% of Regular Students Pass.” The Himalayan Times, August 4, 2025, https://thehimalayantimes. com/kathmandu/neb-publishes-grade-12-results-over-61-of-regularstudents-pass
210 Khabarhub. “Grade 12 results published, 61.17% of students passed.” Khabarhub, August 4, 2025, https://english.khabarhub. com/2025/04/489175/
211 Khabarhub. “Grade 12 results published, 61.17% of students passed.” Khabarhub, August 4, 2025, https://english.khabarhub. com/2025/04/489175/
217 “Sudurpashchim Declared a Literate Province.” Pardafas, June 26, 2025, https://english.pardafas.com/sudurpashchim-declared-aliterate-province/
218 “Sudurpaschim Declared a Literate Province with Over 96% Literacy Rate.” Dinesh Khabar, June 26, 2025,. https://dineshkhabar.com/ article/122399
219 Subject Teachers Shortage Hits Rural Schools.” 2025. The Kathmandu Post. August 26, 2025. https://kathmandupost.com/ 220 Ibid
221 Ibid
222 "Current Macro-Economic and Financial Situation (Based on Eleven Months Data of 2081/82)," Nepal Rastra Bank, July 8, 2025, accessed August 7, 2025, https://www.nrb.org.np/category/ current-macroeconomic-situation/?department=red&fy=208182&subcategory=eleven-months.
225 “Nepal’s Electricity Capacity Reaches 3,602 MW; 99% of Population Now Has Access to Power,” ShareSansar, May 29, 2025, https:// www.sharesansar.com/newsdetail/nepals-electricity-capacity-reaches3602-mw-99-of-population-now-has-access-to-power-2025-05-29.
227 “Nepal Receives Approval to Import Up to 1,004 MW of Electricity from India’s IEX Market,” Urja Khabar, January 7, 2025, https:// www.urjakhabar.com/en/news/070144792.
229 “Electricity export of 17 and a half billion per year,” eKantipur, August 6, 2025, https://ekantipur.com/en/news/2025/08/06/electricityexport-of-17-and-a-half-billion-per-year-31-30.html
230 “Present Status and Future Plan of Clean Cooking Technologies in Kathmandu Valley,” Water and Energy Commission Secretariat, accessed August 7, 2025, https://wecs.gov.np/source/
Present%20status%20and%20future%20plan%20of%20clean%20 cooking%20technologies%20in%20Kathmandu%20valley%20%281%29. pdf
231 “Nepal Electricity Authority,” Nepal Electricity Authority, accessed on August 7, 2025, https://www.nea.org.np/
232 Ibid
233 Ibid
234 “Power Plants :: Hydro (More than 1MW),” Department of Electricity Development, updated on August 1, 2025, accessed August 7, 2025, https://doed.gov.np/pages/powerplantsmorethan1/
235 “Green Climate Fund Approves $36.1 Million to Help Nepal Protect Lives and Livelihoods from Glacial Flood Risks,” United Nations Development Programme, July 31, 2025, https://www.undp.org/nepal/ press-releases/green-climate-fund-approves-361-million-help-nepalprotect-lives-and-livelihoods-glacial-flood-risks.
236 “Green Climate Fund to Provide $36.1 Million in Grant for Nepal,” Rising Nepal, July 2, 2025, https://risingnepaldaily.com/ news/64438.
237 Pragati Dhakal, “हिमतालको
,” Setopati, July 2, 2025, https://www.setopati.com/social/363031
238 Diptina Sapkota, “A hidden glacier lake caused the deadly Bhotekoshi flood, scientists say,” The Farsight Nepal, July 22, 2025, https:// farsightnepal.com/news/a-hidden-glacier-lake-caused-the-deadlybhotekoshi-flood-scientists-say/.
239 Arjun Poudel, “Supraglacial lake outburst in Tibet caused Bhotekoshi flooding,” The Kathmandu Post, July 11, 2025, https:// kathmandupost.com/province-no-3/2025/07/11/supraglacial-lakeoutburst-in-tibet-caused-bhotekoshi-flooding.
240 “NIFRA issues public green bond worth Rs 5 billion aiming to finance green energy production,” Republica, June 11, 2025, https:// myrepublica.nagariknetwork.com/news/nifra-issues-public-green-bondworth-rs-5-billion-aiming-to-finance-green-e-81-44.html.
241 “First Public Green Bond issued in Nepal with support from South Korea,” The Rising Nepal, June 10, 2025, https://risingnepaldaily.com/ news/63360
242 “607 MW to be linked to National Grid,” Republica, July 3, 2025, https://myrepublica.nagariknetwork.com/news/607-mw-to-belinked-to-national-grid-49-53.html
243 “Rele Khola Hydropower Project Connected to National Grid,” Republica, June 17, 2025, https://myrepublica.nagariknetwork.com/news/ rele-khola-hydropower-project-connected-to-national-grid-14-49.html
244 “Survey License: Solar,” Department of Electricity Development (Nepal), Accessed on August 11, 2025, https://doed.gov.np/ license/15 https://doed.gov.np/license/23
245
,” Karobar Daily, JulyAugust, 2025, Accessed on August 11, 2025, https://www.karobardaily. com/news/292158
246 “First Time in Nepal’s Energy Market: Nepali Army to Build Three Solar Projects with 23.5 MW Capacity,” Fiscal Nepal, July 31, 2025, https://www.fiscalnepal.com/2025/07/31/21612/first-time-in-nepalsenergy-market-nepali-army-to-build-three-solar-projects-with-23-5mw-capacity/
247 “Bhatbhateni Supermarket, Renew Holdings to Collaborate for Solar Power Production,” New Business Age, https://newbusinessage.com/ news/41371/bhatbhateni-supermarket-renew-holdings-to-collaboratefor-solar-power-production/
248 “Nepal Shifts Gears as EVs Hit 73 Percent of 4-Wheeler Imports,” The Kathmandu Post, July 28, 2025, https://kathmandupost. com/money/2025/07/28/nepal-shifts-gears-as-evs-hit-73-percent-of4-wheeler-imports
249 “China Gains from Nepal’s EV Stride as India Loses Out,” The Financial Express, August 7, 2025,. https://www.financialexpress.com/ auto/industry/china-gains-from-nepals-ev-stride-as-india-losesout/3937388/
250 “NOC Initiates Construction of Amlekhgunj–Lothar Petroleum Pipeline,” Republica, August 5, 2025, https://myrepublica.nagariknetwork. com/news/noc-initiates-construction-of-amlekhgunj-lothar-petroleum-
pipeline-33-80.html
251 Ibid
252 “Nepal’s Energy Sector Rocked by ‘Take-and-Pay’ Budget Policy,” The Kathmandu Post, June 5, 2025, https://kathmandupost.com/ national/2025/06/05/nepal-s-energy-sector-rocked-by-take-and-paybudget-policy
253 “Finance Minister Paudel Firm on ‘Take and Pay’ Provision,” Republica, June 17, 2025, https://myrepublica.nagariknetwork.com/news/ finance-minister-paudel-firm-on-take-and-pay-provision-32-37.html
254 “
Abhiyan Daily, Accessed on August 11, 2025, https://www.abhiyandaily.com/ news/450502/vidyut-khriidmaa-ttek-endd-peko-vyvsthaa-snshodhn/
255 Jiwan Basnet, “
,” Karobar Daily, Accessed on August 11, 2025, https://www. karobardaily.com/news/290501
256 “Govt Unveils Draft Law Allowing Private Firms to Sell Electricity Directly to Clients,” Republica, June 19, 2025, https:// myrepublica.nagariknetwork.com/news/govt-unveils-draft-law-allowingprivate-firms-to-sell-electricity-directly--11-76.html
257 “ERC Approves Framework to Involve Private Sector in Electricity Trade,” The Annapurna Express, June 20, 2025, https:// theannapurnaexpress.com/story/55321/
258
,” Ratopati, Accessed on August 11, 2025, https://www.ratopati.com/ story/501514/electricity-exports-worth-around-17-billion-to-india-andbangladesh-in-a-year
259 “Electricity Export of 17 and a Half Billion per Year,” eKantipur, August 6, 2025 https://ekantipur.com/en/news/2025/08/06/electricityexport-of-17-and-a-half-billion-per-year-31-30.html
260 “Economic Survey 2081/82.” Government of Nepal, Accessed on August 20, 2025. https://mof.gov.np/content/1520/economicsurvey-2081-82/
261 Ibid
262 Ibid
263 Ibid
264 Ibid
265 Ibid
266
“Reimagining Primary Health Care for UHC Sparks Constructive Dialogue on Strengthening Health Care Systems in Nepal,” World Health Organization, June 19, 2025, https://www.who.int/nepal/ news/detail/19-06-2025-reimagining-primary-health-care-for-uhcsparks-constructive-dialogue-on-strengthening-health-care-systemsin-nepal.
267 Ibid
268 Ibid
269 “Gandaki province to be Developed as a Medical Hub: CM Pandey,” The Rising Nepal, August 17, 2025. https://risingnepaldaily.com/ news/66883
270 Laxman Kafle, "All Provinces Unveil Annual Budgets," The Rising Nepal, June 16, 2024. https://risingnepaldaily.com/news/44479.
271 Ibid
272 “Gandaki Province Aims to Become Nepal’s Premier Health Hub,” Travel and Tour World, August 18. 2025, https://www. travelandtourworld.com/news/article/gandaki-province-aims-tobecome-nepals-premier-health-hub/
273 Ibid
274 Ibid
275 “Nepal Reports First Covid Death in Two Years,” The Kathmandu Post, June 25, 2025, https://kathmandupost.com/ health/2025/06/25/nepal-reports-first-covid-death-in-two-years?utm_ source
276 “Nepal Records First Covid Death in over Two Years amid Omicron Sub-Variant Surge,” Telangana Today, June 25, 2025, https:// telanganatoday.com/nepal-records-first-covid-death-in-over-twoyears-amid-omicron-sub-variant-surge
277 Ibid
278 Ibid
279 Ibid
280 Ibid
281 “Air Pollution Is the Number One Health Risk Factor in Nepal,” World Bank, June 17, 2025. https://www.worldbank.org/en/news/pressrelease/2025/06/17/air-pollution-is-the-number-one-health-risk-factorin-nepal?utm_source
282 Ibid
283 “Air Pollution Is Top Cause of Death and Disability in Nepal,” The Kathmandu Post, June 18, 2025, https://kathmandupost.com/ health/2025/06/18/air-pollution-is-top-cause-of-death-and-disabilityin-nepal
284 “Air Pollution Is Top Health Risk in Nepal: World Bank,” The Himalayan Times, June 18, 2025, https://thehimalayantimes.com/ environment/air-pollution-is-top-health-risk-in-nepal-world-bank
285 Ibid
286 Ibid
287 “Nepal Eliminates Rubella as a Public Health Problem,” WHO | South-East Asia, August 18, 2025. https://www.who.int/southeastasia/ news/detail/18-08-2025-nepal-eliminates-rubella?utm_source
288 Ibid
289 Ibid
290 “Nepal Eliminates Rubella, Boosting Child Health and Immunization Drive,” UN News, August 18, 2025. https://news.un.org/en/ story/2025/08/1165672
291 Ibid
292 Ibid
293 “HPV Vaccination Campaign Reaches 1.46 Million Girls,” WHO | Nepal, June 18, 2025. https://www.who.int/nepal/news/detail/18-06-2025nepal-vaccinates-over-1.46-million-girls-with-the-hpv-vaccine
294 Ibid
295 Ibid
296 Marty Logan, "HPV Vaccine in Nepal," Nepali Times, August 14, 2023. https://nepalitimes.com/news/hpv-vaccine-in-nepal
297 Pragya Timsina, “Over a Million Girls Turn Out for Nepal’s First HPV Vaccine Campaign,” VaccinesWork (blog), February 21, 2025. https://www.gavi.org/vaccineswork/nepals-first-large-scale-humanpapillomavirus-campaign-success
298 “WHO Hands Over Electronic Medical Record System to APF Hospital.” WHO | Nepal, July 4, 2025. https://www.who.int/nepal/ news/detail/04-07-2025-who-hands-over-electronic-medical-recordsystem-to-apf-hospita
299 Ibid
300 Ibid
301 Ibid
302
Telecommunication Indicators Shrawan, 2082, Nepal Telecommunications Authority, Accessed on September 9, 2025, https://nta.gov.np/uploads/contents/MIS_%202082%20%20Shrawan.pdf
303 Ibid
304 Ibid
305 Ibid
306 Ibid
307 Ibid
308
Monthly Payment Systems Indicators: Saun, 2082 (Mid-August 2025), Nepal Rastra Bank, September 16, 2025, https://www.nrb.org.np/ contents/uploads/2025/09/2082_04_PS-Updated-Format-1.pdf
309 Ibid
310 Ibid
311 Ibid
312 Telecommunication Indicators Shrawan, 2082, Nepal Telecommunications Authority, Accessed on September 8, 2025, https://nta.gov.np/uploads/contents/MIS_%202082%20%20Shrawan.pdf
313 Ibid
314 Ibid
315
“Fonepay Surpasses 1 Million Cross-Border UPI Transactions, Strengthening Regional Digital Integration,” ShareSansar, July 15, 2025, https://www.sharesansar.com/newsdetail/fonepay-surpasses-1million-cross-border-upi-transactions-strengthening-regional-digitalintegration-2025-07-15
316 “Fonepay and NIPL launch cross border QR payment between Nepal and India,” The Kathmandu Post, September 7, 2023, https://kathmandupost.com/money/2023/09/07/fonepay-and-nipllaunch-cross-border-qr-payment-between-nepal-and-india
317 Sangam Prasain and Krishana Prasain, “Indian Travellers Can Now Scan and Pay in Nepal,” The Kathmandu Post, March 1, 2024, https://kathmandupost.com/money/2024/03/01/indian-travellers-cannow-scan-and-pay-in-nepal
318 Krishana Prasain, “Indians paying by QR in Nepal for a year but Nepalis still lack access in India,” The Kathmandu Post, July 16, 2025, https://kathmandupost.com/money/2025/07/16/indians-paying-by-qrin-nepal-for-a-year-but-nepalis-still-lack-access-in-india
319 “Online Fraud Cases Rise by 307 Percent,” Republica, August 6, 2025, https://myrepublica.nagariknetwork.com/news/online-fraudcases-rise-by-307-percent-30-97.html
320 Ibid
321 Ibid
322 Ibid
323 Ibid
324
“Unregistered Online Sellers Now Illegal in Nepal Under New E-Commerce Law,” The Kathmandu Post, July 20, 2025, https://kathmandupost.com/money/2025/07/20/unregistered-onlinesellers-now-illegal-in-nepal-under-new-e-commerce-law
325 Ibid
326 Ibid
327 Ibid
328 Ibid
329
“An Overview of the Electronic Commerce in Nepal (E-Commerce Act, 2025),” Vidhi Legal, March 27, 2025, https://vidhilegal.com/an-overview-of-the-electronic-commerce-innepal-e-commerce-act-2025/
330 “Unregistered Online Sellers Now Illegal in Nepal Under New E-Commerce Law,” The Kathmandu Post, July 20, 2025, https://kathmandupost.com/money/2025/07/20/unregistered-onlinesellers-now-illegal-in-nepal-under-new-e-commerce-law
331 Krishana Prasain, “Nepal’s Online Sellers Must Register or Pay Up to Rs. 200,000 Fine,” The Kathmandu Post, July 8, 2025, https://kathmandupost.com/money/2025/07/08/nepal-s-online-sellersmust-register-or-pay-up-to-rs200-000-fine
332
Department of Commerce, Supplies & Consumer Protection, July 18, 2025 https://doc.gov.np/content/52/re-information-to-list-on-electric-trade-e-workers-/
333 “Nepal Bans Telegram over Online Fraud Concerns,” The Kathmandu Post, July 18, 2025, https://kathmandupost.com/ national/2025/07/18/nepal-bans-telegram-over-online-fraud-concerns.
335 Gaurav Pokharel, “Nepal moves to shut down Telegram over crime concerns,” Online Khabar, July 18, 2025, https://english.onlinekhabar. com/shut-down-telegram-over-crime.html
336 “Nepali Authorities Consider Action Against Telegram,” New
Business Age, July 18, 2025, https://newbusinessage.com/news/44707/ nepali-authorities-consider-action-against-telegram/
337 “Guidelines on Targeted Financial Sanctions for Payment Service Providers,” Nepal Rastra Bank, August 11, 2025, https://www.nrb.org. np/contents/uploads/2025/08/TFS-PSD_.pdf
338 Ibid
339 “Nepal orders payment service providers to freeze terroristlinked assets to exit FATF grey list,” The Kathmandu Post, August 12, 2025 https://kathmandupost.com/money/2025/08/12/nepal-orders-psps-tofreeze-terrorist-linked-assets-to-exit-fatf-grey-list
340 “Nepal Rastra Bank (NRB) Gives Digital Payment Company the Right to Seize Account Money,” Insurance Khabar, August 13, 2025. https://insurancekhabar.com/en/nepal-rastra-bank-nrb-gives-digitalpayment-company-the-right-to-seize-account-money-2/.
341 Ibid
342 Krishana Prasain, “Nepal rolls out ambitious AI policy,” The Kathmandu Post, August 16, 2025, https://kathmandupost.com/money/2025/08/16/nepal-rolls-outambitious-ai-policy
343
, ”Ministry of Communication and Information Technology,” August 19, 2025, https://giwmscdnone.gov.np/media/pdf_upload/AI-new_ce2eme0.pdf
344 Ibid
345 Ibid
346 Ibid
347 “Bill on 'Information Technology and Cyber Security' endorsed,” Republica, August 14, 2025, https://myrepublica. nagariknetwork.com/news/bill-on-information-technology-and-cybersecurity-endorsed-41-82.html
348 Sajana Baral and Rajesh Mishra, “The new bill includes fines and imprisonment for everything from AI abuse to PIN code theft,” eKantipur, June 15, 2025, https://ekantipur.com/en/news/2025/06/15/the-new-bill-includesfines-and-imprisonment-for-everything-from-ai-abuse-to-pin-codetheft-41-50.html
349 “IT and Cybersecurity Bill Raises Free Speech Concerns,” The Kathmandu Post, August 18, 2025, https://kathmandupost.com/ national/2025/08/18/it-and-cybersecurity-bill-raises-free-speechconcerns.
350 Government of Nepal. (2025). Economic Survey 2081/82 (FY 2024/25). Ministry of Finance. https://giwmscdntwo.gov.np/media/ pdf_upload/आध्क%20सिनेक्ण%202081-82_ksjdgmv.pdf
351 Krishana Prasain, “MCA-Nepal Signs $154.5 Million Contracts for Electricity Transmission Project,” The Kathmandu Post, August 14, 2025, https://kathmandupost.com/national/2025/08/14/mca-nepalsigns-154-5-million-contracts-for-electricity-transmission-project
352 “MCA-Nepal Signs $154.5 Million Contracts to Advance Electricity Transmission Project.” ShareSansar, August 15, 2025. https:// www.sharesansar.com/newsdetail/mca-nepal-signs-1545-millioncontracts-to-advance-electricity-transmission-project-2025-08-15
353 “MCA-Nepal Signs $154 Million Contracts to Build 180km Transmission Lines.” Bizness News English, August 2025. https://english. biznessnews.com/posts/mcanepal-signs-154-million-contracts-tobuild-180km-transmission-lines
354 “MCC Projects Resume as MCA-Nepal Signs $154.5 Million Transmission Line Deal.” My Republica, August 15, 2025. https:// myrepublica.nagariknetwork.com/news/mcc-projects-resume-as-mcanepal-signs-us-1545-million-transmission-line-de-77-84.html
355 “$154.4 Million Contracts Signed to Build Two High-Capacity Transmission Lines under MCC.” New Business Age, August 2025. https:// www.newbusinessage.com/news/45065/-154-4-million-contractssigned-to-build-two-high-capacity-transmission-lines-under-mcc/
356 Ibid
357 Ibid
358 Krishana Prasain, “Nepal Receives $29 Million Investment to Expand Broadband and Data Infrastructure,” The Kathmandu Post, July 9, 2025, https://kathmandupost.com/nepali-diaspora/2025/07/09/nepalreceives-29-million-investment-to-expand-broadband-and-datainfrastructure
359 “Nepal Embarks on Digital Transformation with Landmark Investment in Broadband.” International Finance Corporation (IFC), July 9, 2025. https://www.ifc.org/en/pressroom/2025/nepal-embarks-on-digitaltransformation-with-landmark-investment-in-broadband-and-
360 “IFC and Standard Chartered Invest $29 Million to Boost Nepal’s Digital Connectivity.” WorldLink Communications Limited, July 9, 2025. https://worldlink.com.np/news/%F0%9D%90%87%F0%9D%9 0%A2%F0%9D%90%AC%F0%9D%90%AD%F0%9D%90%A8%F0%9D %90%AB%F0%9D%90%A2%F0%9D%90%9C-29%F0%9D%90%8C%F0%9D%90%8F%F0%9D%90%9A%F0%9D%90%AB%F0%9D%90%AD %F0%9D%90%A7%F0%9D%90%9E%F0%9D%90%AB/
361 “IFC, SCBNL Inject $29M into WorldLink to Drive Nepal’s Digital Infrastructure and Inclusion.” ShareSansar, July 9, 2025. https://www. sharesansar.com/newsdetail/ifc-and-scbnl-inject-29m-into-worldlinkto-drive-nepals-digital-infrastructure-and-inclusion-2025-07-09
362 Ibid
363 Ibid
364 “My Republica,” “Government Plans to Build 200 Suspension Bridges in FY 2025/26,” My Republica, June 30, 2025, https://myrepublica. nagariknetwork.com/news/govt-plans-to-build-200-suspensionbridges-in-fy-202526-30-11.html
365 Ibid
366 Ibid
367 Ibid
368
“Tough Land-Deal Rules Axed under PMO’s Pressure,” The Kathmandu Post, June 10, 2025, https://kathmandupost.com/ national/2025/06/10/tough-land-deal-rules-axed-under-pmo-spressure
369 I “Government Aims to Construct 200 Suspension Bridges in Next Fiscal Year.” Singha Darbar, July 2, 2025. https://singhadarbar.com/ en/government-aims-to-construct-200-suspension-bridges-in-nextfiscal-year-2/
370 “The Annapurna Express,” “Government Withdraws New KYC and Bank Statement Requirements,” The Annapurna Express, June 2025, https://theannapurnaexpress.com/story/54939
371 I “Government to Build 200 Suspension Bridges in FY 2025/26.” Hamro Patro News, July 2, 2025. https://www.hamropatro.com/ news/details/10865686576050376?ns=
372 I “The Government Will Build 200 Suspension Bridges in the Coming Year.” eKantipur, July 2, 2025. https://ekantipur.com/en/ news/2025/07/02/the-government-will-build-200-suspension-bridgesin-the-coming-year-56-45.html
373 “ADB Unveils USD 2.3 Billion Strategy to Drive Green Growth in Nepal,” The Kathmandu Post, June 18, 2025, https://kathmandupost.com/ money/2025/06/18/adb-unveils-2-3-billion-plan-to-boost-green-jobrich-growth-in-nepal
374 “ADB Launches New 5-Year Strategy for Economic Transformation in Nepal.” Asian Development Bank (ADB), June 18, 2025. https://www.adb.org/news/adb-launches-new-5-year-strategyeconomic-transformation-nepal
375 “ADB Unveils $2.3 Billion Country Partnership Strategy for Nepal (2025–2029).” ShareSansar, June 18, 2025. https://www.sharesansar. com/newsdetail/adb-unveils-23-billion-country-partnership-strategyfor-nepal-2025-2029-2025-06-18
376 “World Bank Approves USD 257 Million for Energy and Irrigation Projects,” The Himalayan Times, June 17, 2025, https://thehimalayantimes. com/business/world-bank-approves-two-projects-worth-257-millionfor-nepal
377 “Nepal: World Bank Approves $257 Million to Improve Electricity and Irrigation Services.” World Bank, June 1, 2025. https://www. worldbank.org/en/news/press-release/2025/06/01/nepal-world-bankapproves-257-million-to-improve-electricity-and-irrigation-services
378 “World Bank Approves USD 257 Million Loan for Electricity and Irrigation Projects in Nepal.” Diplomat Nepal, June 2, 2025. https:// diplomatnepal.com/news/world-bank-approves-usd-257-million-loanfor-electricity-and-irrigation-projects-in-nepal/
379 Reuters, “Dozens Missing after Floods on Nepal–China Border,” July 8, 2025, https://www.reuters.com/sustainability/climate-energy/ dozens-missing-after-floods-nepal-china-border-2025-07-08/
380 Ibid
381 The Annapurna Express, “Floods on Nepal–China Border: Rescue Efforts Underway,” July 2025, https://theannapurnaexpress.com/ story/55794/ 382 Ibid
383 Reuters, “Dozens Missing after Floods on Nepal–China Border.” https://www.reuters.com/sustainability/climate-energy/dozens-missingafter-floods-nepal-china-border-2025-07-08/
384 Department of Land Management and Archive, “Monthly Transaction Report – Ashadh 2082,” August 2025. https://www.dolma.gov. np/office/dept/content/monthly-transaction-report-1706595104; Fiscal Nepal, “Nepal’s Real Estate Market Rebounds Strongly: Over 538,000 Land and Housing Deals Recorded in FY 2081/82,” July 20, 2025, https:// www.fiscalnepal.com/2025/07/20/21428/nepals-real-estate-marketrebounds-strongly-over-538000-land-and-housing-deals-recorded-infy-2081-82/
385 Ibid
386 Bizness News. “Real Estate Deals Improving, but Growth Still Unclear.” June 2025. https://english.biznessnews.com/posts/-real-estatedeals-improving-but-growth-still-unclear?utm_source
387 Ibid
388 Ibid
389 Ibi
390 Ibid
391 Nepal Rastra Bank, “Monetary Policy,” July 2025, https://www. nrb.org.np/category/monetary-policy/
392 Ibid
393 Khabarhub English, “Nepal Policy and Governance Update,” November 2, 2025, https://english.khabarhub.com/2025/11/484941
394 “Tourism Insight: June 2025”, Nepal Tourism Board, accessed on August 13, 2025. https://trade.ntb.gov.np/wp-content/ uploads/2025/07/Tourism-Insight-June.pdf
395 Monthly Report of Foreign Direct Investment Approval of Ashadh FY 2081/82 (Shrawan–Ashadh). Department of Industry (Foreign Investment & Technology Transfer Section), Ministry of Industry, Commerce and Supplies, August 3, 2025. Accessed August 13, 2025 https://doind.gov.np/uploads/notices/Notices-20250803121031649.pdf
396 Ibid.
397 “Nepal Tourism Statistics 2024”, Nepal Tourism Board, Ministry of Culture, Tourism and Civil Aviation, Accessed on August 13, 2025. https://www.tourism.gov.np//files/publication_files/366.pdf
398 “Nepal Tourism Insights – June 2025”, Nepal Tourism Board, August 2025. https://trade.ntb.gov.np/wp-content/uploads/2025/07/ Tourism-Insight-June.pdf
399 “Nepal Tourism Statistics 2024”, Nepal Tourism Board, Ministry of Culture, Tourism and Civil Aviation, Accessed on August 13, 2025. https://www.tourism.gov.np//files/publication_files/366.pdf
400 Ibid
401 Ibid.
402 Ibid.
403 Ibid.
404 ShareSansar, “Tourist Arrivals in Nepal Reach 647,000 in Seven Months, but Growth Remains Sluggish,” ShareSansar, August 4, 2025 https://www.sharesansar.com/newsdetail/tourist-arrivals-in-nepal-reach647000-in-seven-months-but-growth-remains-sluggish-2025-08-04
405 “Tourism Insight: July 2025”, Nepal Tourism Board, August 2025, accessed on August 13, 2025. https://trade.ntb.gov.np/wp-content/ uploads/2025/08/Tourism-Insight-July-2025.pdf
406 “Tourism Insight: June 2025”, Nepal Tourism Board, accessed on August 13, 2025. https://trade.ntb.gov.np/wp-content/ uploads/2025/07/Tourism-Insight-June.pdf
407 Ibid
408 The Rising Nepal, “Over 577,000 Tourists Visited Nepal in First Half of 2025,” The Rising Nepal, July 3, 2025, https://risingnepaldaily.com/ news/64485
409 “Tourism Insight: July 2025”, Nepal Tourism Board, August 2025, accessed on August 13, 2025. https://trade.ntb.gov.np/wp-content/ uploads/2025/08/Tourism-Insight-July-2025.pdf
410 Ibid
411 ShareSansar, “Tourist Arrivals in Nepal Reach 647,000 in Seven Months, but Growth Remains Sluggish,” ShareSansar, August 4, 2025. https://www.sharesansar.com/newsdetail/tourist-arrivals-in-nepal-reach647000-in-seven-months-but-growth-remains-sluggish-2025-08-04
412 “Tourism Insight: June 2025”, Nepal Tourism Board, accessed on August 13, 2025. https://trade.ntb.gov.np/wp-content/ uploads/2025/07/Tourism-Insight-June.pdf
413 Ibid
414 Ibid
415 Esha Das Gupta, “Nepal Opens 97 Remote Peaks for Free Climbing”, Travel and Leisure Asia, August 11, 2025 https://www travelandleisureasia.com/in/news/nepal-opens-97-remote-peaks-forfree-climbing/
416 Sangam Prasain, “Everest fees rise, but Nepal’s ‘hidden peaks’ are now free, The Kathmandu Post, August 9, 2025. https://kathmandupost. com/money/2025/08/09/everest-fees-rise-but-nepal-s-hidden-peaksare-now-free
417 Ministry of Culture, Tourism, and Civil Aviation. 2025. Tourism Policy 2082 (2025). Kathmandu: Government of Nepal. Accessed September 2, 2025. https://molcpa.gov.np/content/359/tourismpolicy-2082/
418 Ibid
419 OnlineKhabar English. 2025. “’Nepal Night’ in London Promotes Tourism Through Stories, Culture, and Conservation.” June 11, 2025. https:// english.onlinekhabar.com/nepal-night-in-london.html.
420 Ibid
421 Ibid
422 Nepal Tourism Board. 2025. “Bridging Peaks and Coasts: Nepal–Bangladesh Tourism Dialogue Held in Chattogram.” Press Release, June 19, 2025, accessed on August 25, 2025. https://trade.ntb.gov.np/ bridging-peaks-and-coasts-nepal-bangladesh-tourism-dialogue-heldin-chattogram/
423 Nepal Tourism Board. 2025. “Nepal-Bangladesh Tourism Meet.” Press Release, June 22, 2025. Accessed August 25, 2025. https://trade.ntb. gov.np/nepal-bangladesh-tourism-meet/
424 Ibid
425 Nepal Tourism Board. 2025. “Bridging Peaks and Coasts: Nepal–Bangladesh Tourism Dialogue Held in Chattogram.” Press Release, June 19, 2025, accessed on August 25, 2025. https://trade.ntb.gov.np/ bridging-peaks-and-coasts-nepal-bangladesh-tourism-dialogue-heldin-chattogram/
426 Ibid
427 Nepal Tourism Board. 2025. “Nepal-Bangladesh Tourism Meet.” Press Release, June 22, 2025. Accessed August 25, 2025. https://trade.ntb. gov.np/nepal-bangladesh-tourism-meet/
428 Embassy of Nepal, London. 2025. “The Embassy Organised Nepali Mela in Edinburgh, Scotland on 23 June 2025.” Press Release, June 23, 2025, accessed on August 25, 2025. https://uk.nepalembassy.gov.np/ content/51/the-embassy-organised-nepali-mela-in-edinburgh-/
432 The Himalayan Times. 2025. “NTB Unveils Rs 1.59 Billion Budget for FY 2082/83, a First at Start of Fiscal Year.” The Himalayan Times, July 17, 2025 https://thehimalayantimes.com/nepal/ntb-unveils-rs-159-billionbudget-for-fy-208283-a-first-at-start-of-fiscal-year
433 Ibid
434 Republica. 2025. “NTB Allocates 70 % of Budget for Overseas Promotion, Plans to Open Office in India.” Republica, July 18, 2025. https:// myrepublica.nagariknetwork.com/news/ntb-allocates-70-of-budget-foroverseas-promotion-plans-to-open-office-in-i-62-43.html
437 The Himalayan Times. 2025. “NTB Unveils Rs 1.59 Billion Budget for FY 2082/83, a First at Start of Fiscal Year.” The Himalayan Times, July 17, 2025. https://thehimalayantimes.com/nepal/ntb-unveils-rs-159-billionbudget-for-fy-208283-a-first-at-start-of-fiscal-year
438 The Diplomat Nepal. 2025. “Nepal Tourism Board Unveils Rs 1.59 Billion Budget to Focus on Global Promotion and Sustainable Growth.” The Diplomat Nepal, July 20, 2025. https://diplomatnepal.com/diplomacy/ tourism/nepal-tourism-board-budget-to-focus-on-global-promotionand-sustainable-growth/ 439 Republica. 2025. “NTB Allocates 70 % of Budget for Overseas Promotion, Plans to Open Office in India.” Republica, July 18, 2025. https:// myrepublica.nagariknetwork.com/news/ntb-allocates-70-of-budget-foroverseas-promotion-plans-to-open-office-in-i-62-43.html
440 “Nepal’s Tourism Growth Threatened by Labor Shortage, Says Hotel Association”, Fiscal Nepal, July 15, 2025. https://www.fiscalnepal. com/2025/07/15/21348/nepals-tourism-growth-threatened-by-laborshortage-says-hotel-association/ 441 Ibid.
442 Dipendra Baduwal, “Hotels Struggle to Retain Staff as Trained Workers Flock Abroad”, The Kathmandu Post, July 3, 2025. https:// kathmandupost.com/money/2025/07/03/hotels-struggle-to-retain-staffas-trained-workers-flock-abroad
443 Insurance Khabar. 2025. “Flights from Pokhara International Airport Shrink, Number of Passengers Increased.” Insurance Khabar, June 11, 2025. https://insurancekhabar.com/en/flights-from-pokharainternational-airport-shrink-number-of-passengers-increased-2/
444 MyRepublica. 2025. “Pokhara–Jomsom Flights Suspended for Two Months.” MyRepublica, June 26, 2025. https://myrepublica. nagariknetwork.com/news/pokhara-jomsom-flights-suspended-for-twomonths-88-93.html
445 OnlineKhabar English. 2025. “Pokhara–Australia Flights to Start Soon.” OnlineKhabar, August 28, 2025. https://english.onlinekhabar.com/ pokhara-australia-flights-to-start-soon.html
446 Khabarhub. 2025. “Flights from Pokhara to Australia Set to Begin Soon.” Khabarhub, August 28, 2025. https://english.khabarhub com/2025/28/493048/ 447 MyRepublica. 2025. “Pokhara–Jomsom Flights Suspended for Two Months.” MyRepublica, June 26, 2025. https://myrepublica. nagariknetwork.com/news/pokhara-jomsom-flights-suspended-for-twomonths-88-93.html
448 “Current Macroeconomic and Financial Situation of Nepal Based on Annual data Ending Mid-July, 2024/25”, Nepal Rastra Bank, August 24, 2025, https://www.nrb.org.np/contents/uploads/2025/08/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-Annualdata-of-2024.25.pdf
450 “Current Macroeconomic and Financial Situation of Nepal Based on Annual data Ending Mid-July, 2024/25”, Nepal Rastra Bank, August 24, 2025, https://www.nrb.org.np/contents/uploads/2025/08/Current-
455 “Bangladeshi Firm Selected to Conduct Loan Portfolio Review of Nepal’s 10 Largest Banks,” New Business Age, July 24, 2025, https:// www.newbusinessage.com/news/44776/bangladeshi-firm-selected-toconduct-loan-portfolio-review-of-nepals-10-largest-banks/
456 “NRB selects Nepal’s 10 large banks for loan portfolio review”, myRepublica, August 12, 2025.
457 “Nepal’s Banks Grapple with High Liquidity, Rising Bad Loans, and Capital Shortages”, Fiscal Policy, June 13, 2025. https://www.fiscalnepal.com/2025/06/13/20690/nepals-banks-grapplewith-high-liquidity-rising-bad-loans-and-capital-shortages/ 458 Ibid
459 Ibid
460 “EU includes Monaco in updated list of high-risk jurisdictions for money laundering”, Reuters, June 10, 2025
“NRB asks BFIs to comply with strict rules to distribute their dividends”, August 31, 2025.
https://myrepublica.nagariknetwork.com/news/nepal-rastra-bank-45-34. html
467 Ibid
468 Ibid
469 Ibid
470 Ibid
471
“Monetary Policy 2082-83”, Nepal Rastra Bank, July 11, 2025. https://www.nrb.org.np/contents/uploads/2025/07/Monetary_ Policy_2082-083-1.pdf
472 Ibid
473
“Current Macroeconomic and Financial Situation (Based on Annual Data Ending Mid-July 2025)”, Nepal Rastra Bank, August 24, 2025. https://www.nrb.org.np/contents/uploads/2025/08/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-Annualdata-of-2024.25.pdf
474 Ibid
475 Ibid
476
“Datewise Indices”, Nepal Stock Exchange, August 31, 2025.
https://www.nepalstock.com.np/indices
477
“Market Capitalization”, Nepal Stock Exchange, August 31, 2025. https://www.nepalstock.com.np/marcap
478 Ibid
479
“SEBON Introduces Stricter Criteria for Investment Companies Seeking IPOs”, Share Sansar, June 22, 2025. https://www.sharesansar.com/newsdetail/sebon-introduces-strictercriteria-for-investment-companies-seeking-ipos-2025-06-22
480 Ibid
481 Ibid
482 Ibid
483 “Finance ministry agrees allowing brokerage firms to issue their IPOs”, MyRepulica, July 15, 2025. https://myrepublica.nagariknetwork.com/news/mof-agrees-allowingbrokerage-firms-to-issue-their-ipos-69-56.html
484 Ibid
485 Ibid
486
“NEPSE Enforces National ID For Stock Trading: Ensuring Transparency and AML Compliance”, August 3, 2025. https://ictframe.com/nepse-national-id-stock-trading-transparencyaml/
487 Ibid
488 Ibid
489
“SEBON allows banks to issue perpetual preference shares under new directive amendment”, July 7, 2025. https://www.fiscalnepal.com/2025/07/07/21192/sebon-allows-banks-toissue-perpetual-preference-shares-under-new-directive-amendment
490 Ibid
491 Ibid
492
“Capital gains tax from stock market hits Rs 2.15 billion in Shrawan”, August 19, 2025 https://myrepublica.nagariknetwork.com/news/capital-gains-tax-fromstock-market-hits-rs-215-billion-in-shrawan-21-27.html
493 Ibid
494 Ibid
495
“Direction of Trade Statistics (DOTS),” IMF, Accessed on September 1, 2025, https://legacydata.imf.org/?sk=9d6028d4-f14a-464ca2f2-59b2cd424b85
496 Ibid
497
“ITC Trade Map,” ITC (2022a), Accessed on January 8, 2024, https://www.trademap.org/498 “ITC Trade Map,” ITC (2022b), Accessed on January 8, 2024, https://www.trademap.org/Bilateral_499 Kshitiz Dahal and Paras Kharel, “An assessment of Nepal-Bangladesh merchandise trade: Towards a preferential trade agreement” South Asia Watch on Trade, Economics, and Environment (SAWTEE), July 2025, https://sawtee.org/publications/Nepal-Bangladesh%20trade.pdf
500 Ibid
501 Ibid
502 Shahid Ahmed, “India-Korea CEPA: An Assessment,” Korea and the world economy, 12(1), 45-98, April 2011, Accessed on September 2, 2025, from http://www.akes.or.kr/wp-content/uploads/2018/03/12.1.3_ Ahmed.pdf ;
Hendra Manurung, “Improving Free Trade Agreement (FTA) Between Indonesia-European Union (EU) Through Comprehensive Economic Partnership (CEPA),” Journal of Asia Pacific Studies, 2(1), 23–44, June 9, 2018, https://doi.org/10.33541/japs.v2i1.667 ;
Kiki Verico, “Analysing Bilateral Comprehensive Economic Partnership Agreement (CEPA) Impacts,” Indonesia's International Economic Strategies, pp. 137–158, https://doi.org/10.1007/978-981-99-8458-9_5 ; Saba Ismail and Shahid Ahmed, “Economy-wide Impacts of India–UAE CEPA: A CGE Analysis,” The Indian Economic Journal, 73(4), May 13, 2024, https://doi.org/10.1177/00194662241251511
503 Ibid
504 Shaikh Mohd Mouzam, “Indo-Japan CEPA and Agro-trade:
Opportunities and Challenges for India,” Indian Journal of Economics and Development, 17(2), 321–330, June 14, 2021, https://doi.org/10.35716/ IJED/20095
505 Ibid
506 Bin Sheng and Chenxin Jin, “An Evaluation of the Regional Comprehensive Economic Partnership Agreement: Market Access and Trading Rules,” China and World Economy, 30(5), 49–74, September 16, 2022, https://doi.org/10.1111/cwe.12437
507 Ibid
508 Ibid
509
“Foreign Direct Investment and External Debt,” Bangladesh Bank, Accessed on September 2, 2025, https://www.bb.org.bd/en/index. php/publication/publictn/1/30
510 Ibid
511 Ibid
512
“Nepal-Bangladesh Relations,” Ministry of Foreign Affairs, Accessed on September 15, 2025, https://old.mofa.gov.np/nepalbangladesh-relations/
513 Kshitiz Dahal and Paras Kharel, “An assessment of NepalBangladesh merchandise trade,” SAWTEE, July 30, 2025, https://www. sawtee.org/category/in-focus/an-assessment-of-nepal-bangladeshmerchandise-trade
514
“Nepal resumes electricity export to Bangladesh,” The Kathmandu Post, June 15, 2025, https://kathmandupost.com/ national/2025/06/15/nepal-resumes-electricity-export-to-bangladesh 515
“Nepal-Bangladesh tourism meet held in Dhaka to boost bilateral travel ties,” Republica, June 21, 2025, https://www.myrepublica. nagariknetwork.com/news/nepal-bangladesh-tourism-meet-held-indhaka-to-boost-bilateral-travel-ties-60-64.html
516
“Strengthening Bangladesh-Nepal Economic Ties for Mutual Prosperity,” Centre for Policy Dialogue, August 3, 2025, https://cpd.org.bd/ strengthening-bangladesh-nepal-economic-ties-for-mutual-prosperity/ 517 Kshitiz Dahal and Aayush Poudel, “Tariff burdens Nepal’s merchandise exports to Bangladesh,” SAWTEE, February 2, 2024, https://sawtee.org/category/opinion-in-lead/tariff-burdens-nepalsmerchandise-exports-to-bangladesh
518
“Nepal-Bangladesh Trade Resumes after Brief Disruption,” New Business Age, August 15, 2024, https://newbusinessage.com/article/ nepal-bangladesh-trade-resumes-after-brief-disruption
519
520
Ibid
“Bangladesh to receive 40MW electricity from Nepal for 5 months,” The Daily Star, February 23, 2025, https://www.thedailystar.net/ news/bangladesh/news/bangladesh-receive-40mw-electricity-nepal-5months-3831636
521
“Nepal sets IT export target of Rs 3 trillion over next decade,” The Kathmandu Post , May 28, 2024, https://kathmandupost.com/ money/2024/05/28/nepal-sets-it-export-target-of-rs-3-trillion-overnext-decade
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