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Premium IPO Deadlock Forces Companies to Rethink Capital Plans
Top

3 min read

Premium IPO Deadlock Forces Companies to Rethink Capital Plans

Premium IPO Deadlock Forces Companies to Rethink Capital Plans Kathmandu. The prolonged freeze on premium-priced initial public offerings (IPOs) has begun to reshape corporate fundraising strategies in Nepal, with several companies abandoning premium pricing and opting instead for issue-at-par offerings. The shift comes as the Nepal Securities Board (SEBON) has not granted approval for premium IPOs for nearly two years, leaving dozens of applications stuck in limbo. Companies that had applied to issue shares above face value say the regulatory uncertainty has made premium pricing impractical. With approvals nowhere in sight, firms are now prioritizing timely access to capital over valuation upside, even if it means raising funds at a lower price. Market participants say this trend reflects growing frustration with regulatory indecision rather than a lack of investor appetite.

Dipesh Ghimire

·

21 Dec, 2025

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment
Top

3 min read

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment Kathmandu. Nepal’s insurance companies are increasingly calling for permission to invest a portion of their funds in international markets, as persistently low bank interest rates at home continue to erode returns and pressure profitability. With limited domestic investment instruments and the absence of large-scale infrastructure bonds, insurers argue that overseas exposure has become a necessity rather than a choice. For years, insurers have parked the bulk of their investments—nearly 80 percent on average—in banks and financial institutions. However, historically low deposit rates have sharply reduced income from fixed deposits, the sector’s primary source of steady returns. Compounding the problem, excess liquidity in the banking system has made banks reluctant to absorb large deposits from insurers, even at lower rates, leaving companies struggling to place funds efficiently.

Dipesh Ghimire

·

21 Dec, 2025

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Premium IPO Deadlock Forces Companies to Rethink Capital Plans
Top

3 min read

Premium IPO Deadlock Forces Companies to Rethink Capital Plans

Premium IPO Deadlock Forces Companies to Rethink Capital Plans Kathmandu. The prolonged freeze on premium-priced initial public offerings (IPOs) has begun to reshape corporate fundraising strategies in Nepal, with several companies abandoning premium pricing and opting instead for issue-at-par offerings. The shift comes as the Nepal Securities Board (SEBON) has not granted approval for premium IPOs for nearly two years, leaving dozens of applications stuck in limbo. Companies that had applied to issue shares above face value say the regulatory uncertainty has made premium pricing impractical. With approvals nowhere in sight, firms are now prioritizing timely access to capital over valuation upside, even if it means raising funds at a lower price. Market participants say this trend reflects growing frustration with regulatory indecision rather than a lack of investor appetite.

Dipesh Ghimire

·

21 Dec, 2025

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment
Top

3 min read

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment Kathmandu. Nepal’s insurance companies are increasingly calling for permission to invest a portion of their funds in international markets, as persistently low bank interest rates at home continue to erode returns and pressure profitability. With limited domestic investment instruments and the absence of large-scale infrastructure bonds, insurers argue that overseas exposure has become a necessity rather than a choice. For years, insurers have parked the bulk of their investments—nearly 80 percent on average—in banks and financial institutions. However, historically low deposit rates have sharply reduced income from fixed deposits, the sector’s primary source of steady returns. Compounding the problem, excess liquidity in the banking system has made banks reluctant to absorb large deposits from insurers, even at lower rates, leaving companies struggling to place funds efficiently.

Dipesh Ghimire

·

21 Dec, 2025

Budget Formulation Process Begins with Focus on Project Quality and Coordination
Budget

2 min read

Budget Formulation Process Begins with Focus on Project Quality and Coordination

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

3 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

16 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

16 Dec, 2025

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy
Remittances

2 min read

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy

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

Dipesh Ghimire

·

16 Dec, 2025

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances
Top

2 min read

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

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

Dipesh Ghimire

·

16 Dec, 2025

Trending Blogs

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Premium IPO Deadlock Forces Companies to Rethink Capital Plans
Top

3 min read

Premium IPO Deadlock Forces Companies to Rethink Capital Plans

Premium IPO Deadlock Forces Companies to Rethink Capital Plans Kathmandu. The prolonged freeze on premium-priced initial public offerings (IPOs) has begun to reshape corporate fundraising strategies in Nepal, with several companies abandoning premium pricing and opting instead for issue-at-par offerings. The shift comes as the Nepal Securities Board (SEBON) has not granted approval for premium IPOs for nearly two years, leaving dozens of applications stuck in limbo. Companies that had applied to issue shares above face value say the regulatory uncertainty has made premium pricing impractical. With approvals nowhere in sight, firms are now prioritizing timely access to capital over valuation upside, even if it means raising funds at a lower price. Market participants say this trend reflects growing frustration with regulatory indecision rather than a lack of investor appetite.

Dipesh Ghimire

·

21 Dec, 2025

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment
Top

3 min read

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment Kathmandu. Nepal’s insurance companies are increasingly calling for permission to invest a portion of their funds in international markets, as persistently low bank interest rates at home continue to erode returns and pressure profitability. With limited domestic investment instruments and the absence of large-scale infrastructure bonds, insurers argue that overseas exposure has become a necessity rather than a choice. For years, insurers have parked the bulk of their investments—nearly 80 percent on average—in banks and financial institutions. However, historically low deposit rates have sharply reduced income from fixed deposits, the sector’s primary source of steady returns. Compounding the problem, excess liquidity in the banking system has made banks reluctant to absorb large deposits from insurers, even at lower rates, leaving companies struggling to place funds efficiently.

Dipesh Ghimire

·

21 Dec, 2025

Budget Formulation Process Begins with Focus on Project Quality and Coordination
Budget

2 min read

Budget Formulation Process Begins with Focus on Project Quality and Coordination

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

3 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

17 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

16 Dec, 2025

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

2 min read

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

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

Dipesh Ghimire

·

16 Dec, 2025

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy
Remittances

2 min read

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy

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

Dipesh Ghimire

·

16 Dec, 2025

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances
Top

2 min read

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

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

Dipesh Ghimire

·

16 Dec, 2025

More Blogs

Explore more blogs

Premium IPO Deadlock Forces Companies to Rethink Capital Plans

Dipesh Ghimire

·

21 Dec, 2025

Premium IPO Deadlock Forces Companies to Rethink Capital Plans

Premium IPO Deadlock Forces Companies to Rethink Capital Plans Kathmandu. The prolonged freeze on premium-priced initial public offerings (IPOs) has begun to reshape corporate fundraising strategies in Nepal, with several companies abandoning premium pricing and opting instead for issue-at-par offerings. The shift comes as the Nepal Securities Board (SEBON) has not granted approval for premium IPOs for nearly two years, leaving dozens of applications stuck in limbo. Companies that had applied to issue shares above face value say the regulatory uncertainty has made premium pricing impractical. With approvals nowhere in sight, firms are now prioritizing timely access to capital over valuation upside, even if it means raising funds at a lower price. Market participants say this trend reflects growing frustration with regulatory indecision rather than a lack of investor appetite.

Top

3 min read

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment

Dipesh Ghimire

·

21 Dec, 2025

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment

Low Interest Rates Squeeze Insurers, Fuel Push for Overseas Investment Kathmandu. Nepal’s insurance companies are increasingly calling for permission to invest a portion of their funds in international markets, as persistently low bank interest rates at home continue to erode returns and pressure profitability. With limited domestic investment instruments and the absence of large-scale infrastructure bonds, insurers argue that overseas exposure has become a necessity rather than a choice. For years, insurers have parked the bulk of their investments—nearly 80 percent on average—in banks and financial institutions. However, historically low deposit rates have sharply reduced income from fixed deposits, the sector’s primary source of steady returns. Compounding the problem, excess liquidity in the banking system has made banks reluctant to absorb large deposits from insurers, even at lower rates, leaving companies struggling to place funds efficiently.

Top

3 min read

Budget Formulation Process Begins with Focus on Project Quality and Coordination

Dipesh Ghimire

·

17 Dec, 2025

Budget Formulation Process Begins with Focus on Project Quality and Coordination

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

Budget

2 min read

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

Dipesh Ghimire

·

17 Dec, 2025

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

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

Top

2 min read

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

Dipesh Ghimire

·

17 Dec, 2025

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

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

Top

3 min read

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

Dipesh Ghimire

·

17 Dec, 2025

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

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

Top

2 min read

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

Dipesh Ghimire

·

16 Dec, 2025

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

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

Foreign Exchange Reserves

2 min read

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

Dipesh Ghimire

·

16 Dec, 2025

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

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

Top

2 min read

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy

Dipesh Ghimire

·

16 Dec, 2025

Remittances Accelerate Sharply, Masking Deeper Structural Pressures in the Economy

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

Remittances

2 min read

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

Dipesh Ghimire

·

16 Dec, 2025

Rising Overseas Education Costs Deepen Service Account Deficit Despite Strong Remittances

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

Top

2 min read