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The NEPSE Journal

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Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

All Articles — Page 222

2793 posts

#NepalEconomy #PublicDebt #Dom1 min read
Domestic vs External Debt: Which Burden Is Heavier for Nepal?
Nepal’s public debt is split between domestic debt (20.8% of GDP, Rs. 1.27 trillion) and external debt (22.9% of GDP, Rs. 1.40 trillion). While domestic debt strains liquidity and crowds out private lending, external debt poses higher long-term risks due to currency and repayment vulnerabilities. The heavier burden lies with external debt, but both require careful management and stronger fiscal discipline to remain sustainable.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #CapitalExpendit1 min read
Capital Expenditure Still Below 4% of GDP – Why So Low?
Nepal’s capital expenditure remains below 4% of GDP (3.6% in FY 2024/25), largely due to bureaucratic delays, governance inefficiencies, and crowding out from recurrent costs. This undermines infrastructure development, job creation, and long-term growth. Unless project management and fiscal priorities improve, Nepal’s development spending will remain inadequate to support structural transformation.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #RevenueGDP #Fis1 min read
Revenue to GDP Ratio Below 20% – Challenges for Fiscal Space
Nepal’s revenue-to-GDP ratio has dropped to 19.6% in FY 2024/25, below the 20% threshold needed for fiscal flexibility. Heavy reliance on trade taxes and weak domestic tax mobilization are limiting fiscal space, leaving little room for capital spending and forcing reliance on debt. Without structural reforms to diversify revenue, fiscal sustainability risks will deepen.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #ExternalDebt #F1 min read
External Debt Nears Rs. 1.4 Trillion: Rising Dependency on Loans
Nepal’s external debt has risen to Rs. 1.40 trillion (22.9% of GDP), reflecting growing reliance on foreign loans to finance fiscal and development needs. While manageable for now, low efficiency in capital spending and reliance on remittance-driven reserves raise concerns about sustainability. Without channeling loans into high-return projects, Nepal risks falling into a cycle of rising debt dependency.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #DomesticDebt #F1 min read
Domestic Debt Tops Rs. 1.2 Trillion – Fiscal Sustainability Concerns
Nepal’s domestic debt has crossed Rs. 1.2 trillion, reaching 20.8% of GDP. While manageable for now, rising borrowing combined with weak revenue growth poses risks to fiscal sustainability. Heavy reliance on domestic debt could crowd out private investment unless borrowing is channeled into productive, growth-enhancing projects.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #PublicFinance #2 min read
Government Expenditure Rises by 15%: Is It Productive Spending?
Nepal’s government expenditure rose by 15.2% in early FY 2082/83, but most of it is absorbed by recurrent costs rather than productive capital investment. With capital expenditure stuck at just 3.6% of GDP, rising spending risks adding to fiscal pressure without significantly boosting growth. To be productive, Nepal must improve efficiency, governance, and channel funds into infrastructure and high-return projects.
Sandeep Chaudhary24 Sep, 2025
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#NepalEconomy #RevenueGrowth #1 min read
Revenue Growth Turns Negative in Early 2082/83: A Warning Signal?
Government revenue in Nepal fell by -10.8% in mid-August 2082/83, reversing last year’s growth. The decline reflects weak consumption and heavy reliance on imports for tax collection. This poses risks to fiscal stability and development spending, highlighting the urgent need for tax base diversification and structural reform.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #NEPSE #MarketCa1 min read
Market Capitalization/GDP Ratio Crosses 80% – Healthy Sign?
Nepal’s market capitalization-to-GDP ratio crossed 80% in FY 2082/83, signaling renewed investor confidence and stronger capital market activity. While this is a positive sign for financial development, the ratio remains concentrated in a few sectors and may reflect valuation gains more than real economic expansion. Sustained health will depend on diversifying listed companies and ensuring market stability.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #BaseRate #Banki2 min read
Base Rate Trends: Banking Sector Competition and Margins
Nepal’s base rate has fallen from 10% in FY 2022/23 to 5.78% by mid-August 2082/83, reflecting ample liquidity and cooling inflation. While this boosts credit affordability and competition among banks, it squeezes profit margins and limits spreads. Sustained low base rates could stimulate investment but also push banks to adapt their business models to safeguard profitability.
Sandeep Chaudhary24 Sep, 2025
#NepalEconomy #LendingRates #C2 min read
Lending Rates Drop Below 8%: Opportunities for Borrowers in Nepal
Nepal’s lending rates have dropped to 7.76% in mid-August 2082/83, creating opportunities for cheaper loans across industries, households, and SMEs. This environment can boost investment in hydropower, infrastructure, and productive sectors, but the benefits will depend on whether credit is channeled into growth-generating activities rather than speculation
Sandeep Chaudhary24 Sep, 2025

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 222

Domestic vs External Debt: Which Burden Is Heavier for Nepal?

Capital Expenditure Still Below 4% of GDP – Why So Low?

Revenue to GDP Ratio Below 20% – Challenges for Fiscal Space

External Debt Nears Rs. 1.4 Trillion: Rising Dependency on Loans

Domestic Debt Tops Rs. 1.2 Trillion – Fiscal Sustainability Concerns

Government Expenditure Rises by 15%: Is It Productive Spending?

Revenue Growth Turns Negative in Early 2082/83: A Warning Signal?

Market Capitalization/GDP Ratio Crosses 80% – Healthy Sign?

Base Rate Trends: Banking Sector Competition and Margins

Lending Rates Drop Below 8%: Opportunities for Borrowers in Nepal

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 222

Domestic vs External Debt: Which Burden Is Heavier for Nepal?

Capital Expenditure Still Below 4% of GDP – Why So Low?

Revenue to GDP Ratio Below 20% – Challenges for Fiscal Space

External Debt Nears Rs. 1.4 Trillion: Rising Dependency on Loans

Domestic Debt Tops Rs. 1.2 Trillion – Fiscal Sustainability Concerns

Government Expenditure Rises by 15%: Is It Productive Spending?

Revenue Growth Turns Negative in Early 2082/83: A Warning Signal?

Market Capitalization/GDP Ratio Crosses 80% – Healthy Sign?

Base Rate Trends: Banking Sector Competition and Margins

Lending Rates Drop Below 8%: Opportunities for Borrowers in Nepal