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Salman bin Abdulaziz Al Saud, the King of Saudi Arabia, has expressed his sorrow over the significant loss of life and property in the recent flooding and landslides in Nepal.

He extended his heartfelt condolences and sincere sympathy to President Ram Chandra Paudel, the families of the deceased, and the Nepali citizens.

He wished for the safe return of the missing to their families, and a swift recovery for the injured.

Similarly, in a separate message to the President, Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, has expressed his sorrow over the loss the country suffered in the disasters.   

A dry landslide damaged eight containers parked near Tatopani in Rasuwa on Tuesday night. 

The vehicles en route to Kerung for transporting goods were stopped on the roadside with the information that the roadway towards Kerung has been blocked by the recent landslide. 

These containers were left on the roadside in absence of a parking lot in the area. Though the Syafrubesi-Rasuwa road section that was earlier disrupted by the rains resumed on Tuesday, containers heading to Kerung were unable to proceed due to the road obstructions on the Chinese side. 

It is said the Rasuwa District Administration has been urged informed by the Kerung administration that it will take around 40-50 days to restore Rasuwagadhi-Kerung route at it has been significantly damaged by the landslide, according to District Police Office, Rasuwa's Chief Keshab Bhattarai.

Other containers presently stuck here have been urged to cancel the trips and return according to Bhattarao. With the resumption of the Syafrubesi-Rasuwagadhi section on Tuesday afternoon, 40 containers en route to Kerung entered Timure.  

The International Federation of Red Cross and Red Crescent Societies - IFRC has released over Rs 90 in emergency funds from IFRC-DREF to support the Nepal Red Cross action on the ground. 

IFRC Secretary General and CEO Jagan Chapagain has announced this. 

The floods in Nepal have taken a devastating toll, not only in terms of lives lost but also with entire communities—especially those south of the Kathmandu Valley—being cut off from the rest of the country due to landslides and destroyed infrastructure, he said.  "In response, hundreds of Nepal Red Cross volunteers are working tirelessly with evacuations, search and rescue operations, and distributing essential supplies."

The meeting of the Parliamentary Hearing Committee today has unanimously approved the nomination made to appoint Prakashman Singh Raut as the new Chief Justice.

In the meeting of the Committee held at Singha Durbar, the proposed Chief Justice Raut had presented a 24-point action plan to be implemented during his term as the head of the Supreme Court.

His name was recommended by the Constitutional Council on September 16. He was recommended to the Council as the senior-most justice of the apex court by the Judicial Council.

Raut will take over from incumbent Chief Justice of the Supreme Court, Bishwambhar Prasad Shrestha, who retires on October 5.

As per the Constitutional provision, Justice Raut will be formally appointed as the Chief Justice by the President, following the endorsement by the parliamentary hearing committee.

Also today, the Parliamentary Hearing Committee unanimously endorsed the nomination of the government to appoint Chitra Lekha Yadav as the next Nepali Ambassador to Australia.

With interest rates on savings coming down with every passing month, the proportion of fixed deposits in total deposits parked in banks and financial institutions (BFIs) is also declining.

This shows banks, awash with liquidity, are not making any efforts to attract fixed deposits where they need to provide higher interest rates.

Data released by the Nepal Rastra Bank (NRB) shows, BFIs had deposits totaling Rs 6,445bn in mid-August, of which fixed deposits accounted for 57.5 percent. This proportion was 61.3 percent in mid-Aug 2023.

With fixed deposits declining, the proportion of other saving products have increased. According to the NRB, regular savings products accounted for 26.7 percent of total deposits in mid-Aug 2023, which has increased to 30.3 percent in mid-August, 2024.

Bankers say the proportion of fixed deposits to total savings is declinding as BFIs earlier prioritized fixed deposits to increase their deposit base due to liquidity shortage in the banking system. With interest rates on deposits declining since the last fiscal year, the share of fixed deposits has also started to decrease. 

The banking system is in a liquidity surplus situation at present. The central bank has already absorbed nearly Rs 250bn from the banking system through different instruments since mid-July, with a plan to absorb another Rs 50bn underway. 

Central banks around the world injects money into the banking system when there is a liquidity shortage and absorbs from the system when there is excess liquidity. Bankers say banks are sitting on investable funds of approximately Rs 75bn.

As the liquidity situation improved, the Nepal Bankers’ Association—the association of commercial banks—ended the gentlemen’s agreement among Class ‘A’ banks in mid-July last year, allowing them to set interest rates on their own. The average interest rate on deposits fell to 5.66 percent in the first month of the current fiscal year 2024/25 (mid-Julty to mid-August) compared to eight percent in the same month of the previous fiscal year.

The proportion of fixed deposits rises when there is a shortfall of liquidity as banks compete with themselves to attract deposits by offering high interest rates. Since this is not the case now, banks, which are awash with loanable funds due to slow credit demand in the market, are not offering high interest rates on deposits.

According to the central bank’s directives, banks can offer a maximum of five percentage points higher interest on fixed deposits compared to the minimum interest rate on regular savings accounts. The difference between the maximum and minimum interest rates on all types of domestic currency deposit accounts, except for call deposits, should not exceed five percentage points.

Minister for Home Affairs Ramesh Lekhak directed all the authorities concerned and relevant mechanisms to remain highly alert and do the needful preparations as heavy rainfall is expected in some places of the Koshi and Bagmati Provinces.

The instruction comes in response to the weather forecast bulletin released by the Department of Hydrology and Meteorology regarding the probabilities of downpour in some parts of these two provinces.

Minister Lekhak called on all three security agencies, National Disaster Risk Reduction and Management Authority (NDRRMA), Chief District Officers and local governments for caution towards possible risks of disasters.

The Department has appealed to the public for alertness and readiness to mitigate the potential risks of the predicted rainfall and its consequences.

Emphasizing alertness and readiness in this context, Minister Lekhak said, "I have directed the Chief District Officers of Koshi Province and Bagmati Province and Chiefs of all security agencies in the disaster-prone provinces to remain alert."

Furthermore, the NDRRMA and Chiefs of security agencies under the Ministry of Home Affairs have been asked to coordinate efforts for early preparedness.

Minister Lekhak urged travelers to be careful while traveling, noting the conditions of major highways and roads due to recent series of rain-triggers landslide and flood while the risk of floods and landslides still persist in some parts.

Heavy rainfall in the past days has caused widespread flooding in Nepal, affecting thousands of children and their families, UNICEF has said. 

According to government estimates, around 224 people, including 35 children, have lost their lives, with many others injured or missing. Hundreds of houses have been damaged, displacing thousands of children and their families, leaving them vulnerable to the elements. In addition, landslides and rubble have blocked major roads and are hampering critical search and rescue efforts. The incessant rains, which lashed down non-stop since Sept 27, have been one of the heaviest rains Nepal has seen in the past few decades.

“On behalf of UNICEF Nepal, I offer my heartfelt condolences to the families who have lost loved ones, including children. Children and young people desperately need support. In addition to losing their homes, we cannot underestimate the trauma children have endured and the mental health support they need. At times like this, girls and boys are ever more vulnerable to violence, exploitation and abuse,” said UNICEF Representative to Nepal Alice Akunga. “UNICEF is on the ground and working around the clock with the government and partners to reach the most affected children and their families with life-saving supplies and services.”

The impact on children is already being felt. An estimated 13 hospitals have been damaged and water supply has been widely affected threatening children’s health and nutrition. Damage to 54 schools has deprived over 10,000 girls and boys of a safe space to learn, play and heal.

UNICEF is working closely with the Government of Nepal and other humanitarian partners to assess the situation and provide urgent response. Pre-positioned supplies—including hygiene kits, bed nets, buckets, water purification tablets and tarpaulin sheets—have been dispatched to children and their families.

“I am deeply worried about the children who will sleep outside tonight and in the coming days; we must act quickly,” said Akunga. “In UNICEF, the Government of Nepal and local partners have a trusted agency that is ready to step-up and scale-up the emergency response for every child so that, together, we mitigate the impact of this terrible weather event.”

Nepal's economic growth is projected to accelerate to 5.1 percent in FY 25 from 3.9 percent in FY 24, driven by anticipated high tourist arrivals, along with increased hydropower and paddy production, according to the World Bank’s latest economic update, Nepal Development Update: International Migration and Well-being in Nepal, released today.

The private sector is expected to contribute to the country’s growth, as it is anticipated to benefit from the central bank’s loosening of monetary policy and easing of regulatory requirements. Nepal’s economy is projected to grow by 5.5 percent in FY26.

However, the report identifies multiple risks to the outlook, including heightened vulnerabilities in the financial system such as a rise in non-performing loans that may limit private sector credit growth, potential policy discontinuity that could deter investment, delays in the execution of the capital spending budget affecting infrastructure development, and regional instability and trade disruptions that could reduce tourism and domestic demand.

"Nepal's economy is on a gradual recovery path," said Vice Chairman of the National Planning Commission Prof. Dr. Shiva Raj Adhikari. "Our focus on enhancing capital expenditure, particularly by completing nearly finished projects, along with reforms in the budgetary process, will strengthen macroeconomic stability, boost domestic productivity, and create more jobs."

Shocks in migrant-receiving countries such as the Gulf Cooperation Council countries and Malaysia, could also slow growth, impacting international remittances that are crucial for raising household consumption, reducing poverty, and developing human capital. However, migration from Nepal is costly, opportunities are unequal, and the process remains challenging for many. The report presents the latest evidence on the benefits and costs of Nepal’s emigration trend and highlights key policy interventions needed to build an inclusive migration management system aimed at ensuring sustainability and maximizing rewards, press release reads.

“Maintaining growth momentum is key to Nepal’s development. This requires continued reform in critical areas such as infrastructure, governance, human capital development, and developing an environment which encourages and supports the private sector,” said David Sislen, World Bank Country Director for Maldives, Nepal, and Sri Lanka. “Nepal has greatly benefited from remittances from overseas workers and improving the management of these inflows, better supporting Nepalis who choose to seek work abroad, and also building a vibrant domestic economy which allows for skilled Nepalis to be productive in Nepal is critical to the future of the country.”

According to press release, an inclusive migration management system would establish a transparent recruitment process, better prepare migrants to go abroad, ensure the safety and mobility of migrants in those labor markets, plan for long-term skills and destination diversification, and create an economic environment conducive to harnessing the capital and skills of returnees.

The Nepal Development Update, produced biannually, provides an in-depth analysis of significant economic developments over the past year, contextualizing them within a longer-term and global perspective.