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Despite a notable rise in remittance inflow this fiscal year, Nepal is spending more foreign currency on imports and overseas education. According to recent data, the country received Rs 1.19trn in remittances in the first nine months of the current fiscal year—a 10 percent increase compared to the same period last year.

However, the outflow of foreign currency has been even greater, primarily due to a surge in imports and spending on foreign education. Nepal’s total imports rose by 12.2 percent during this period, reaching Rs 1.39trn. Last year, imports had declined by 2.8 percent in the same timeframe.

Imports from India, China, and other countries increased by 7.7 percent, 14.4 percent, and 24.9 percent respectively. The major import items included raw soybean oil, rice, vehicles and spare parts, edible oil, and sponge iron. Meanwhile, imports of petroleum products, crude palm oil, aircraft parts, chemical fertilizers, and paper declined.

On the export front, the country earned Rs 188.2bn from goods exports—a 65.2 percent rise. While this indicates a slight improvement in foreign currency earnings through exports, the trade deficit remains significant. The trade deficit increased by 6.4 percent to Rs 1.21trn.

Another major drain on foreign currency is overseas education. In the first nine months of this fiscal year alone, Nepal spent Rs 103.84bn on education abroad, accounting for 60.94 percent of the total travel-related expenditure. The amount is a steep rise from Rs 95.85bn in the same period last year, and nearly Rs 15bn was spent in just one month (mid-February to mid-March).

Travel expenditure under the services account rose by 19 percent to Rs 170.39bn during this period, with education-related expenses comprising the largest share.

Economists have raised concerns about this trend. Economist Dilliraj Khanal said while remittance helps in the short term, its long-term impact is questionable if it is not utilized productively. He warned that relying heavily on foreign employment while failing to create domestic opportunities is making productive land idle and hindering national development. “If foreign employment stops due to global instability, it could have disastrous consequences,” he cautioned.

Despite these concerns, the rise in remittance has contributed to improved foreign exchange reserves and banking liquidity. By mid-April, Nepal’s foreign exchange reserves had increased by 18.9 percent to Rs 2.43trn, sufficient to cover 17.1 months of merchandise imports and 14.2 months of goods and services imports, according to the Nepal Rastra Bank.

The overall balance of payments remained positive, with a surplus of Rs 346.23bn. The current account also posted a surplus of Rs 210.22bn, compared to Rs 179.83bn in the same period last year. Additionally, foreign direct investment (equity only) reached Rs 8.96bn, up from Rs 6.49bn last year.

Meanwhile, consumer inflation eased, providing some relief to the public. According to central bank data, point-to-point inflation in mid-April stood at 3.39 percent, down from 4.61 percent a year ago. Prices of food and beverages, spices, and fish and meat decreased, contributing to overall price stabilization. However, prices of ghee and oil, fruits, pulses and legumes, and non-alcoholic beverages went up. In the non-food category, annual inflation in miscellaneous goods and services rose by 8.69 percent, clothing and footwear by 7.01 percent, alcoholic beverages by 6.07 percent, household furnishings by 5.59 percent, and tobacco products by 4.83 percent.

The Ministry of Refugees and Repatriation reports that 330 Afghan inmates jailed in Pakistan had been released and returned to Afghanistan in the last week. The returnees entered the nation via the Spin Boldak crossing in Kandahar province, according to Xinhua.

Pakistan has released thousands of Afghan captives in the last year and continues to repatriate them. Currently, around 7m Afghan refugees live abroad, primarily in Iran and Pakistan, with many lacking documentation.

The Pakistani government plans to expel Afghan nationals in 2025. Meanwhile, the Afghan interim government has urged its citizens to return and help rebuild the country, Xinhua reported.

Pakistan's military stated Tuesday that a border clash with India killed 51 people, including 11 soldiers and 40 civilians, despite a truce accord announced by US President Donald Trump over the weekend.

The army accused India of breaking the truce, which was intended to reduce tensions between the nuclear-armed neighbors. Indian officials have yet to react on the incident, Reuters reported.

The price of gold has dropped by Rs 2, 000 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 184, 800 per tola today. It was traded at Rs 186, 800 per tola on Monday.

The price of silver, however, has increased by Rs 10 is being traded at Rs 1, 970 per tola today.

Payment for 10 suspension bridges completed across various districts of Karnali Province remains pending, despite completion of construction within 10 months of the contract, a representative of Himshikhar Hira Construction, Kumar KC, has said.

The bridges were contracted in July 2024 with a completion deadline of 18 months. However, eight of them—built in Jumla (2), Dailekh-Achham (1), Dailekh (1), Mugu (1), Humla (2), and Kalikot (1)—were completed early, yet the government has not released the payment amounting to Rs 110m (including VAT), according to KC.

Six of the bridges were reportedly completed as early as Dec 2024, but a dispute over the Dojam bridge in Humla slightly delayed overall formalities. KC said the non-payment has forced about 30 workers to file a complaint with the district police.

Humla’s Chief District Officer Narayan Pandey confirmed the issue, stating, “The contractor completed work eight months ago. Payments should have been made by now. Contractors who finish work on time deserve recognition, not delay.”

Engineer Nirajan Adhikari from the Local Infrastructure Development Office, Surkhet, said the payment delay was due to pending fund transfers from the Ministry of Finance. “As soon as the funds are transferred, the contractors will be paid within this month,” he assured.

The United Nations aviation agency has ruled Russia to be responsible for the downing of Malaysia Airlines Flight MH17 in 2014, which killed all 298 persons on board. The ICAO ruled Russia violated international air law by failing to prevent the use of a Russian-made missile against a civilian aircraft, BBC reported.

MH17 was flying from Amsterdam to Kuala Lumpur when it was shot down over eastern Ukraine, amid conflict between Ukrainian and pro-Russian separatists.

The case was brought by Australia and the Netherlands, whose residents comprised the majority of the victims. Both applauded the decision as a step toward justice, according to BBC.

In 2022, a Dutch court convicted three men linked to Russia in absentia, sentencing them to life in prison.

The banking sector is witnessing a steady rebound in credit growth, buoyed by rising foreign trade and increased loan demand across key sectors. According to a recent report from the Nepal Rastra Bank (NRB), private sector credit from banks and financial institutions grew by seven percent, reaching Rs 5,534.77bn, during the first nine months of the current fiscal year 2024-25. This reflects a credit disbursement of Rs 361.3bn between mid-July 2024 and mid-April 2025.

Credit growth had stood at 5.1 percent in the same period of the previous fiscal year, pushing the total credit portfolio to Rs 5,167.17bn in mid-April last year. On a year-on-year basis, credit disbursement grew by 8.3 percent in mid-April.

This uptick marks a turnaround from the sluggish loan expansion seen in recent years, which had eroded bank profitability. Amid a deposit surge and subdued credit growth, the banking system was left with excess liquidity, pushing interest rates to historic lows. In mid-April, the average interest rate on loans from commercial banks fell to 8.22 percent, down from 10.55 percent a year earlier. Development banks and finance companies saw similar declines, with average lending rates dropping to 9.59 percent and 10.40 percent, respectively.

Slow credit expansion in previous fiscal years was largely attributed to the phased rollback of covid-era relief measures, including loan moratoriums and subsidized interest rates, by the central bank. As the economy stabilized, these supports were withdrawn, leading to cautious lending practices and tepid credit demand from businesses.

However, the latest data signals renewed momentum in credit expansion. Foreign trade has surged, with merchandise exports rising by 65.5 percent to Rs 188.2bn, and imports increasing by 12.2 percent to Rs 1.309trn in the nine-month period. This has triggered a spike in demand for import loans, which grew by a robust 60.6 percent by mid-April. Working capital loans and margin-based loans also recorded strong growth of 17 percent and 37.8 percent, respectively. In addition, credit expansion was driven by increased borrowing in real estate, stock market investments, and vehicle purchases.

Credit flow to the production sector rose by 9.6 percent, construction by 11.4 percent, transportation, communication and public services by 10.2 percent, and service industries by 8.6 percent. During the review period, term loans increased by 4.9 percent, margin nature loans by 37.8 percent, trust receipt (import) loans by 60.6 percent, hire purchase loans by 4.1 percent, cash credit loans by 5.2 percent and real estate loans (including residential personal home loans) by 4.9 percent.

Despite the rebound in credit activity, banks continue to grapple with excess liquidity. The banking system recorded a 5.7 percent increase in deposits, totaling Rs 368.47bn, while remittance inflows rose by 10 percent to Rs 1,191bn during the same period. This has left banks and financial institutions with a stockpile of loanable funds.

The NRB absorbed a total of Rs 17,186.15bn from the market, comprising Rs 2,212.05bn through deposit collection auctions, Rs 14,974.1bn via the Standing Deposit Facility (SDF) and Rs 2.7bn utilized under the Overnight Liquidity Facility, over the first nine months of the current fiscal year. In contrast, the central bank had absorbed Rs 766.19bn in net liquidity through various monetary operations in the same period of the previous fiscal year.

The UN Support Mission in Libya (UNSMIL) has urged all parties to de-escalate tensions in Tripoli following reports of armed mobilization.

In a statement on X, UNSMIL called for restraint and dialogue, stressing the need to protect civilians and support local peace efforts, according to Xinhua.

Local media reported seeing military vehicles and fighters throughout the city. There have been no official statements made.

Since Muammar Gaddafi's fall in 2011, Libya has been divided between opposing regimes in the east and west, Xinhua reported.