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Nepal’s economy is projected to grow 4.5 percent in FY25, up from 3.9 percent in FY24, despite significant natural disasters in late 2024. Growth is expected to be driven by increased domestic trade, hydropower generation and paddy production, according to the World Bank’s latest Nepal Development Update: Leveraging Resilience and Implementing Reforms for Boosting Economic Growth, released on Thursday.

The report also forecasts that Nepal’s economy will grow at an average annual rate of 5.4 percent in FY26 and FY27, driven largely by the services sector.

“Boosting private sector-led economic growth is critical to creating the jobs that Nepal needs. To achieve this, Nepal can build on its impressive track record of resilient growth backed by implementing key structural reforms,” said David Sislen, World Bank Country Division Director for Maldives, Nepal, and Sri Lanka.

The report highlights downside risks to the economic outlook, including geopolitical and trade-related uncertainty. It also points to the potential further deterioration of asset quality in Nepal’s financial sector, the risk of policy inconsistency arising from frequent bureaucratic changes in the government, and delays in the execution of the capital expenditure budget.

“The Nepal Development Update provides valuable insights on recent economic developments and highlights Nepal’s resilient growth. Boosting growth further to meet the country’s 16th Plan targets requires effective execution of the capital budget and timely completion of ongoing projects,” said the Vice-chairperson of the National Planning Commission, Shiva Raj Adhikari. The Nepal Development Update, produced biannually, offers a comprehensive analysis of key economic developments over the past year, placing them within a long-term global context.

The sixth Summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) kicked off at Hotel Shangri-La in Bangkok.

Chief of the governments from BIMSTEC member states had a photo session and entered the agenda.

Paetongtarn Shinawatra, Prime Minister of Thailand, the event host country, welcomed the delegations.

Prime Minister KP Sharma Oli and other delegations are addressing the Summit today.

Following a ceremony signing on the 'BIMSTEC Maritime Transport Cooperation', the heads of the delegations Bangladesh, Bhutan, India, Myanmar, Nepal and Sri Lanka are addressing the event.

Nepali-American singer Adrian Pokharel has released a song titled 'I am an American soldier'.

SUNO AI made the video for the song ‘I am an American soldier’ written by Pokharel.

Earlier in 1997, he had released the album 'Maya Timro Maya Pawana’.

“Since my childhood, I have loved writing songs, singing and acting,” Pokharel said.

When he was in America, he had performed in many plays and films.

Born in Dharan, Sunsari, Ashish Pokharel aka Adrian was a candidate of the Democratic Party for the US House of Representatives from Virginia 10 in 2024.

The Nepal Stock Exchange (NEPSE) gained 3. 35 points to close at 2,703.39 points on Thursday.

Similarly, the sensitive index surged by 2. 30 points to close at 450. 08 points.

A total of 15,502,998-unit shares of 324 companies were traded for Rs 7. 84 billion.

Meanwhile, Green Ventures Limited (GVL) was the top gainer today, with its price surging by 9. 99 percent.

Likewise, Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) was the top loser as its price fell by 7.85 percent.

At the end of the day, total market capitalization stood at Rs 4. 48 trillion.

Nepal has taken a significant leap toward financial sovereignty with the launch of the second phase of national payment switch and domestic card scheme—NepalPay. 

The initiative, led by Nepal Clearing House Ltd (NCHL), will end the existing reliance on international networks such as Visa and Mastercard for card payments.

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari officially inaugurated the Nepal Pay card by making a point-of-sale (POS) payment using a new NepalPay card. 

NCHL had signed an agreement with ACI Worldwide for the establishment and operation of National Payment Switch (NPS) that includes interoperability of card-based transactions (NPS National Card Switch or NPS-NCS) and the rollout of NepalPay domestic card scheme.

The introduction of the domestic card scheme is a milestone in Nepal’s financial journey as it ensures that transaction data remains within the country while enhancing security, affordability and efficiency.

So far, banks and financial institutions in Nepal have been dependent on international payment gateways for processing debit and credit card transactions. Such transactions incurred significant costs to banks in foreign currency which is ultimately passed on to consumers. With the introduction of NepalPay, the country can retain more of its financial resources, leading to a more self-sufficient and cost-effective banking environment.

One of the primary advantages of Nepal Pay is its ability to store customer transaction data within Nepal. This reduces the risk of external data breaches, providing enhanced security and greater control over financial transactions. Additionally, as the national payment switch charges lower routing fees, banks and financial institutions can pass on cost savings to customers.

“Payments processed through international providers used to incur additional fees, but with a domestically operated card, those expenses will be saved,” Governor Adhikari said during the inauguration ceremony.
NepalPay cards will function like the existing debit and credit cards issued by banks and financial institutions, allowing users to make transactions at ATMs and POS terminals. Banks and financial institutions interested in issuing NepalPay cards can do so by entering into agreements with NCHL.

Since November 2021,NCHL has been implementing the first phase of the national payment switch, enabling transactions through bank accounts, e-wallets, and quick response (QR) codes. The launch of Nepal Pay further strengthens this digital infrastructure, paving the way for a more streamlined financial system.

Several banks and financial institutions have already partnered with NCHL to issue NepalPay cards. These include Citizens Bank, Goodwill Finance Limited, Himalayan Bank, Machhapuchhre Bank, Muktinath Bikas Bank, NMB Bank, Prabhu Bank, Shangrila Development Bank, and Siddhartha Bank.

NCHL plans to introduce credit, prepaid and virtual cards in phases. The long-term vision includes integrating NepalPay with bank switches and exploring international expansion.

As US President Donald Trump has been imposing tariffs on its trading partners worldwide, Nepal could not remain immune to it.

The Trump administration has slapped a 10 percent tariff on Nepal, a developing country in the Asia Pacific region.

Nepal exports mainly readymade garments, woolen carpets, pashmina products, leather products, pulses, handicrafts, spices and floricultural products to the United States.

In 2024, the trade between Nepal and the US was around USD 241. 4 million with Nepal exporting the goods worth around USD 120. 5 million.

Nepal's total exports to the US in November 2024 were USD 8.987 million, compared to USD 14.865 million in October 2024.

In 2023, Nepal exported goods a total of USD 1.21 million becoming 156 exporters in the world.

India ($811M), United States (USD 140 million), Germany (USD 38.8 million), China (USD 28.2 million), and United Kingdom (USD 26.4 million) are the most common destinations for exports of Nepal.

Nepal’s southern neighbor, India, was slapped with a 26 percent reciprocal tariff, which will come into effect from April 9, the White House said in a statement.

The announcement made by Trump to slap a 26 percent tariff on India was his wider plan to impose a 10 percent baseline tariff on all imports from April 5.

Similarly, the Trump administration has also decided to add 34 percent reciprocal tariffs to existing 20% duties on all the goods imported from China, the northern neighbor of Nepal, to the US.

After he assumed the office as the President of the US, Trump had already levied two tranches of 10 percent additional tariffs on all Chinese imports.

Meanwhile, world leaders have criticized Trump’s move to impose tariffs as “major blow”.

The criticism comes a day after Trump announced a universal 10% tariff on all imports into the US from  April 5.

Around 60 countries will be hit hard with the tariffs slapped by the US. The decision will come into effect from April 9.

Hungary’s government has announced it will withdraw from the International Criminal Court (ICC), just before Prime Minister Viktor Orban was to receive his Israeli counterpart Benjamin Netanyahu, the subject of an ICC arrest warrant, BBC reported.

The announcement comes as Israeli Prime Minister Benjamin Netanyahu arrives in Budapest early Thursday morning for his first trip to Europe since 2023, defying the ICC's arrest warrant against him.

Last November, one day after the ICC issued the arrest warrant for Netanyahu for alleged war crimes in Gaza, Hungarian Prime Minister Viktor Orban extended an invitation to him, according to BBC.

Despite being an ICC member, Orban swore that the EU member would not execute the warrant, seeing the court's decision as "intervening in an ongoing conflict for political purposes."

The tourism industry is struggling to reach the pre-covid numbers, with tourist arrivals via air dropping by 2.01 percent in the first quarter of 2025. 

According to the Nepal Tourism Board (NTB), a total of 298,558 international visitors arrived between January and March 2025, down from 304,693 in the same period of 2024. The decline, particularly pronounced in March, has been attributed to multiple factors, including a nighttime shutdown of Tribhuvan International Airport, Nepal’s primary gateway, from November to March. The airport’s reduced operations to facilitate runway upgrades limited flight schedules during peak travel months, resulting in shortage of flights, lengthy transits and exorbitant ticket prices. Industry people say this forced tourists to divert to other destinations. 

While January 2025 showed a slight improvement in arrivals compared to January 2024, the momentum faltered in February and March. The most significant decline occurred in March when international arrivals fell to 121,687—a 5.05 percent drop from the 128,167 recorded in March 2024. This figure also fell short of the pre-pandemic benchmark of 127,351 visitors in March 2019.

March marks the beginning of the spring tourism season which is considered the best for trekking and mountaineering. The spring season sees a lion’s share of mountaineering expeditions coming to Nepal. Most of the expeditions on Mt Everest, the tallest peak on earth, are organized in this season.

According to tourism entrepreneurs, tourist numbers will continue to increase till May which marks the end of the climbing season and the beginning of monsoon rains. While tourist numbers dip during the three months of June, July, and August, it starts picking up once the autumn season begins in September. The autumn season continues through December. 

Tourist arrival figures released by NTB show March witnessed declines across most regions compared to the previous year. While arrivals from China fell by 5.4 percent, the number of visitors from South Asian (SAARC) countries fell by 13.4 percent and those from Europe decreased by 10.5 percent. India remained the top source country in the review month with 21,412 visitors, followed by China (11,443) and the United States (11,092). Other notable contributors included Sri Lanka (8,886), the United Kingdom (5,995), Thailand (4,986), Germany (4,709), Australia (4,228), Myanmar (3,754) and Bangladesh (3,576).

In terms of region, SAARC countries accounted for 35,287 tourists (29 percent), followed by Asian nations (except SAARC nations) 31,353 (25.8 percent), Europe 25,742 visitors (21.2 percent), the Americas 13,907 (11.4 percent), Oceania 4,643 (3.8 percent) and the Middle East 2,732 (2.2 percent).