Top3 min readSudurpashchim’s GDP Estimated to Reach Rs. 430 Billion, Agriculture Remains the Dominant SectorSudurpashchim’s GDP Estimated to Reach Rs. 430 Billion, Agriculture Remains the Dominant Sector Sudurpashchim Province’s Gross Domestic Product (GDP) is projected to reach Rs. 430 billion in the current fiscal year 2081/82, according to the latest Economic Activity Study Report published by Nepal Rastra Bank. The report estimates the province’s economic growth rate at 3.28 percent, reflecting a modest but stable economic expansion at a time when national growth remains subdued. Preliminary estimates indicate that Sudurpashchim Province will contribute 7.03 percent to Nepal’s total GDP this fiscal year. The province’s share in the national economy remains broadly similar to previous years. Based on the Broad Industrial Classification, agriculture continues to dominate Sudurpashchim’s economic structure, contributing 34.72 percent, while the administrative and support services sector holds the smallest share at 0.13 percent.Dipesh Ghimire·18 Nov, 2025
Foreign Investment in Nepal So4 min readForeign Investment in Nepal Soars: Over NPR 36 Billion Committed in First Four Months of the Fiscal YearForeign Investment in Nepal Soars: Over NPR 36 Billion Committed in First Four Months of the Fiscal Year Foreign direct investment (FDI) in Nepal has shown significant growth in the first four months of the fiscal year 2025/26, with a total of NPR 36.61 billion (approximately USD 276 million) committed across 380 industries. This is a promising indicator of increased investor confidence in Nepal's economy. According to the Ministry of Industry’s latest report on foreign investment, spanning the months from Shrawan to Kartik (July to October), foreign investors have shown growing interest in a variety of sectors, contributing to the country’s economic development.Dipesh Ghimire·17 Nov, 2025
Top3 min readNepal’s Economic Growth Shows Mild Recovery, But Investment and Savings Imbalance Raises Long-Term ConcernsNepal’s latest macroeconomic indicators reveal a mixed economic outlook, with modest improvements in GDP growth overshadowed by declining investment levels and persistent structural weaknesses. The data, covering fiscal years 2020/21 to 2024/25, show that while the economy is gradually recovering from past shocks, the pace of expansion remains below potential, and critical economic pillars—particularly capital formation and domestic savings—continue to lag behind. According to the estimates, real GDP at basic prices is expected to grow by 4.0 percent in 2024/25, a slight improvement from 3.4 percent in the previous fiscal year. Although this marks a recovery from the sharp slowdown seen in 2022/23, when real GDP fell to just 2.3 percent, economists argue that the current growth rate remains insufficient to generate meaningful employment or lift household incomes. Growth at purchasers’ prices is projected at 4.6 percent, again higher than last year but still below the momentum required to sustain long-term economic development.Dipesh Ghimire·16 Nov, 2025
Top3 min readInflation Falls Sharply as Food Prices Enter Deflation; Wage Growth Weakens Amid Slow Economic ActivityInflation Falls Sharply as Food Prices Enter Deflation; Wage Growth Weakens Amid Slow Economic Activity Nepal’s inflation dynamics have shifted significantly over the past year, with headline inflation moderating sharply and food prices entering deflation for the first time in several years. According to the latest macroeconomic indicators, the Consumer Price Index (CPI) has fallen to 2.20 percent in 2024/25, down from 3.57 percent last fiscal year and well below the peaks witnessed during the inflationary period of 2021/22 and 2022/23. While falling inflation offers relief to consumers, economists warn that such a steep decline may also signal weakening demand and a slowdown in overall economic activity. The most notable change appears in the Food CPI, which has plunged into negative territory, declining by –1.19 percent in 2024/25. The mid-October figure, however, shows a temporary spike to 7.20 percent, suggesting seasonal volatility and supply-side fluctuations. The projected figure for mid-October 2025/26, at –2.54 percent, points toward a possible return to food price deflation. Analysts caution that persistent deflation in food commodities could hurt farmers’ earnings while reflecting subdued purchasing power among consumers.Dipesh Ghimire·16 Nov, 2025
Top3 min readDeposits Surge but Loan Growth Stagnates, Exposing Deepening Stress in Nepal’s EconomyDeposits Surge but Loan Growth Stagnates, Exposing Deepening Stress in Nepal’s Economy Nepal’s banking sector is witnessing an unusual imbalance in financial flows as deposits continue to grow rapidly while loan expansion remains subdued. According to Nepal Rastra Bank’s (NRB) latest three-month data for FY 2082/83, deposits at banks and financial institutions (BFIs) increased by 3 percent, but private-sector lending grew by only 1.5 percent in the same period. This widening gap underscores the deepening fatigue within the economy, where liquidity remains plentiful but credit demand remains historically weak. On an annual point-to-point basis, the mismatch is even more evident. By the end of Ashoj 2082, total deposits at BFIs had risen by 13 percent, but private-sector credit expanded by only 7.3 percent. Economists say the disparity reflects weakening business confidence, political uncertainty, and slow capital expenditure that have collectively eroded the appetite for fresh borrowing.Dipesh Ghimire·16 Nov, 2025
Top3 min readHalf of Commercial Banks Cut Fixed Deposit Rates for Mangsir as Liquidity Surplus DeepensHalf of Commercial Banks Cut Fixed Deposit Rates for Mangsir as Liquidity Surplus Deepens Commercial banks have once again reduced their fixed deposit interest rates for the month of Mangsir, continuing a trend of declining deposit rates amid persistent liquidity surplus and weak credit demand. Newly published rate sheets from 20 commercial banks show that 10 banks lowered their individual fixed deposit rates, while the remaining 10 banks maintained the rates of Kartik without revision. The split decision reflects a sector grappling with excess funds but limited avenues for lending.Dipesh Ghimire·16 Nov, 2025
Top3 min readNepal Receives Record Remittance in Ashoj, Surging Past NPR 200 Billion in a MonthNepal Receives Record Remittance in Ashoj, Surging Past NPR 200 Billion in a Month Nepal’s remittance inflow has reached an unprecedented level, setting a new monthly record in Ashoj with over NPR 201.22 billion entering the country. According to the latest data released by Nepal Rastra Bank (NRB), this is the highest remittance ever recorded in a single month, surpassing all previous highs. The central bank attributes the surge to the festive season surrounding Dashain, Tihar and Chhath, during which Nepalis abroad traditionally send more money to support their families back home.Dipesh Ghimire·16 Nov, 2025
Top3 min readNepal’s Foreign Exchange Reserves Near NPR 30 Trillion: Strong External Stability Despite Slowing FDINepal’s Foreign Exchange Reserves Near NPR 30 Trillion: Strong External Stability Despite Slowing FDI Nepal’s foreign exchange reserves have reached their strongest level in recent years, rising to NPR 29.79 trillion by the end of Ashoj 2082, according to the latest macroeconomic update released by Nepal Rastra Bank (NRB). The reserves grew by 11.3 percent within three months—an expansion driven primarily by moderating imports, record-high remittance inflows, and a sharply improving current account position. Economists say the surge in reserves reflects a “remarkable strengthening” of Nepal’s external sector, though underlying trends in foreign investment and long-term capital inflows remain concerning.Dipesh Ghimire·16 Nov, 2025
Top3 min readKathmandu–Nijgadh Fast Track: A Multidimensional National Project Racing Against TimeKathmandu–Nijgadh Fast Track: A Multidimensional National Project Racing Against Time Amid a national climate dominated by political instability, protests, party disputes, and bureaucratic delays, the Kathmandu–Nijgadh Fast Track project has emerged as a rare symbol of hope. With only 17 months remaining before the revised deadline of Chaitra 2083, the project is once again under scrutiny as the Nepal Army reiterates its commitment to completing the long-awaited national pride project on time.Dipesh Ghimire·14 Nov, 2025
Top2 min readWorld Bank Projects Nepal’s Growth at 4.7% Next Year, Driven by Reconstruction ActivitiesWorld Bank Projects Nepal’s Growth at 4.7% Next Year, Driven by Reconstruction Activities The World Bank has projected that Nepal’s economy will achieve 4.7 percent growth in the coming fiscal year, primarily supported by reconstruction and rehabilitation activities. The global lender’s latest report indicates that although Nepal experienced economic strain this year, the pace of rebuilding could push the economy toward moderate recovery. According to the report, the service sector, which contributes the most to Nepal’s GDP, is expected to witness the largest negative impact during the review period. Tourism, retail, transportation, and hospitality sectors continue to suffer due to weak investor confidence, lower consumption, and slow economic activities. Despite these challenges, the World Bank believes that if Nepal ensures political stability and maintains sound economic management, the service sector could recover gradually and support overall economic growth.Dipesh Ghimire·14 Nov, 2025