Category: Economy

Businesses fear disruptions in cross-border commerce amid unrest. Political unrest and recent leadership changes in Nepal have raised concerns about potential disruptions to trade with India, the country’s largest trading partner. Businesses in both nations have expressed worry about administrative delays and instability affecting the flow of goods across major border points. Trade experts note that Nepal’s reliance on India for fuel, food, and essential supplies makes uninterrupted commerce critical for economic stability. Any prolonged disruption could increase costs, create shortages, and put pressure on domestic markets. Indian authorities are…

Economists call for stronger fiscal discipline and investment diversification. Nepal’s economic outlook continues to be shaped by mounting public debt and inflationary pressures. Government borrowing has risen in recent years, driven by infrastructure spending and social programs, while inflation has eroded household purchasing power. Experts warn that overreliance on remittances and external loans is not sustainable, calling instead for policies that encourage domestic investment and industrial growth. Without decisive reforms, Nepal risks weakening its fiscal stability, making it vulnerable to external shocks. The Finance Ministry has stated that efforts are…

First-ever electricity exports to Bangladesh mark milestone in regional trade. Nepal has begun exporting electricity to Bangladesh through India’s transmission grid, marking a historic milestone in regional energy cooperation. The initial supply of around 40 megawatts reflects Nepal’s growing capacity to utilize its vast hydropower potential. Officials say the deal could generate millions in revenue annually while enhancing Nepal’s position as an energy hub in South Asia. The government hopes that success in this venture will attract further investment in the hydropower sector, which remains one of Nepal’s strongest economic…

Bank to prioritize infrastructure, green energy, and private sector growth. The World Bank has pledged its continued support for Nepal’s economic development despite ongoing political instability. In a recent meeting with Finance Ministry officials, the Bank highlighted key areas of cooperation, including infrastructure development, renewable energy expansion, and private sector growth. World Bank representatives noted that sustainable reforms, especially in fiscal management and governance, will be essential to unlocking higher economic growth. They also emphasized the importance of social protection programs to support vulnerable communities impacted by rising costs and…

Analysts warn economic activity may shrink if political unrest continues. Nepal’s economy faces mounting uncertainty as widespread youth-led protests disrupt daily business operations, tourism, and employment. Hotels, restaurants, and retail outlets in major cities have suffered losses as many remained closed during demonstrations. Economists caution that the country’s growth forecast could remain under 1 percent for the coming fiscal year if unrest persists. The private sector has expressed concern over declining consumer confidence and delayed investment decisions. Government officials have urged dialogue to restore calm, noting that stability is crucial…