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Nepali authorities and the International Monetary Fund (IMF) team have reached a staff-level agreement for the fifth review of Nepal’s economic reform program supported by the IMF’s Extended Credit Facility (ECF) arrangement.

The agreement is subject to approval by the IMF Executive Board which will give Nepal access to about $40.6 million in financing.  The agreement is subject to approval by the IMF’s Executive Board. Upon completion of the Executive Board Review, Nepal would have access to SDR 31.4m (about $40.6m), bringing the total IMF financial support disbursed under the ECF to SDR 219.7m (about $283.9m), from a total of SDR 282.42m, according to the statement.

The economic recovery that began in the fiscal year 2023-24 was disrupted by the severe floods in September 2024, which caused widespread damage across critical sectors and further dampened the still-weak domestic demand. Inflation accelerated to 6.1 percent in Dec 2024 due to a spike in food prices following the floods, the statement says.

Nepal’s external position continued to strengthen, bolstered by robust remittances and subdued imports. Accordingly, revenue growth remained modest. Amid the ongoing correction from the post-pandemic credit boom, vulnerabilities in the financial sector are increasing, with the banking sector's non-performing loans reaching 4.4 percent in October 2024, and the financial health of the savings and credit cooperatives (SACCOs) sector deteriorating.

“Growth is expected to gather pace, exceeding 4 percent in 2024-25, supported by stronger public capital expenditure, including on post-flood recovery and reconstruction efforts.

Relatedly, imports are expected to rebound in the second half of the year. Flood-driven food inflation is expected to ease as transport networks are repaired and agricultural output recovers improving the food supply. However, the outlook is subject to important downside risks, including under-execution of growth-enhancing capital projects, an increase in financial sector vulnerabilities, and potential disruption to policy continuity and reform implementation.

Against this background, policies and reforms envisaged under the ECF-supported program remain well-placed to help preserve macroeconomic stability and strengthen Nepal’s policy framework. Growth-friendly fiscal consolidation—by accelerating capital expenditure coupled with stronger revenue mobilization—is critical to boost sustainable and inclusive economic growth.

Timely execution of spending will further support this effort. Monetary policy should continue to follow a data-driven approach to maintain price and external stability while supporting growth. With amendments to the AML Law enacted, the next steps would be to focus on the effectiveness and application of the new legal framework. Amendments of the NRB Act are key to strengthening the central bank’s independence and governance.

In order to draw the attention of the international community toward the adverse impact of climate change in the Himalayas, Nepal has decided to organize Sagarmatha Sambaad, a global dialogue, on May 16-18 in Kathmandu.

Prime Minister KP Sharma Oli made this announcement at a special function organized in Singhadurbar in the presence of Minister for Foreign Affairs Arzu Rana Deuba and other high-level government officials. According to officials, the government plans to organize Sagarmatha Sambaad every two years to highlight key issues facing the country.

The theme for this year’s dialogue is ‘Climate Change, Mountains and the Future of Humanity’ and PM Oli has requested the international community to take part in the dialogue. Nepal plans to invite high-level government officials, representatives from multilateral organizations and other climate stakeholders for the dialogue.

Over the years, Nepal has tried to draw the attention of the international community toward the adverse impact of climate change on her Himalayas and beyond, with little success. 

Nepal’s snow-capped mountains have shed a considerable mass of ice due to global warming, adversely impacting biodiversity, local communities, livelihoods and accentuating risks of water supply disruptions. The dialogue was initially planned in 2019 when KP Oli was in power, only to be postponed at the 11th hour due to the covid-19 pandemic. Successive governments after 2019 did not take any initiative to organize such a dialogue.

This dialogue, if it materializes, will be the first global dialogue with Nepal as the host at a time when countries across the world are organizing their own dialogues to raise their agendas in the global arena. 

According to government officials, it is a multi-stakeholder dialogue forum committed to deliberating on the most prominent issues of global, regional and national significance. The dialogue is named after the world's tallest mountain Sagarmatha (Mt Everest), which is a symbol of friendship and is meant to promote the notions of common good and collective well-being of humanity, which relies heavily on freshwater sources like Sagarmatha and other Himalayas for survival.  

The price of gold has increased by Rs 1, 900 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 160, 000 per tola today. It was traded at Rs 158, 100 per tola on Tuesday.

Similarly, the price of silver has increased by Rs 20 and is being traded at Rs 1, 895 per tola today.

Foreign Minister Arzu Rana Deuba has congratulated Marco Rubio on his appointment as the 72nd US Secretary of State. 

The Foreign Minister today took to social site X to congratulate Rubio on his appointment as the US Secretary of State.

"We look forward to working together to further strengthen the ties between Nepal and the United States," Foreign Minister Rana posted on X.  

The 53-year-old Rubio has represented Florida in the US Senate since 2011.

According to international news sources, President Donald Trump's proposal to appoint him on the post was unanimously confirmed in a 99-to-0 vote.

The price of gold has increased by Rs 1, 000 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 158, 000 per tola today. It was traded at Rs 157, 000 per tola on Monday.

Similarly, the price of silver has increased by Rs 15 and is being traded at Rs 1, 860 per tola today.

President Ram Chandra Paudel has called the winter session of the Parliament.

He summoned the meeting of both Houses of the Parliament at 1 pm on January 31 (Friday) as per the recommendation of the Cabinet meeting held on Monday, the President’s Office spokesperson Shailaja Regmi Bhattarai informed.

“As per Article 93 (1) of the Constitution of Nepal, President Paudel has called the session of both Houses of the federal Parliament at the International Conference Center in New Baneshwor at 1:00 pm on January 31,” according to the Office of the President.

Nepal Rastra Bank (NRB) has provided over Rs 25.5bn in interest subsidies for concessional loans until mid-December of the fiscal year 2024/25. The government issued integrated procedures for interest subsidies on concessional loans in 2018. It initially covered seven categories with 5-6 percent interest subsidies. This was later amended to include 10 sectors.

The central bank has been providing interest subsidies for 10 different types of loans under the subsidized loan program. The NRB provides subsidies on commercial agriculture and livestock loans both with and without collateral. Similarly, it offers interest subsidies on educated youth self-employment loans, migrant returnee youth project loans, women entrepreneurship loans, Dalit community business development loans, and higher technical and vocational education loans, among others. The NRB has also provided interest subsidies for private housing construction loans for earthquake victims, textile industry operation loans, loans for training provided by institutions recognized by the Council for Technical Education and Vocational Training (CTEVT), and youth self-employment loans.

These loans are distributed through different commercial banks, development banks, finance companies and microfinance institutions. However, banks and financial institutions haven't disbursed concessional loans for the past six months. Central bank officials say they have informally instructed bank and financial institutions (BFIs) not to disburse such loans as funds provided by the government for the program have been used up.

According to the NRB, 113,148 borrowers have availed of loans totaling Rs 172.29bn by mid-December under the interest subsidy program. Commercial banks have disbursed Rs 147.17bn to 96,372 borrowers and development banks extended Rs 22.42bn to 15,166 borrowers. Likewise, finance companies and micro finance institutions approved Rs 2.64bn to 1,550 borrowers and Rs 59m to 60 borrowers, respectively, in subsidized loans.

BFIs cannot charge more than two percent points above their base rate for these subsidized loans. They are also prohibited from charging additional fees except for loan interest, credit information fees, insurance premiums and loan security charges. Interest subsidies are available for up to five years. However, banks are free to determine the total loan period. Women entrepreneurship loans receive a six percent interest subsidy, while other categories receive five percent.

Commercial agriculture and livestock loans are capped at Rs 50m, educated youth self-employment at Rs 700,000 and migrant returnee youth project loans at Rs 1m. Similarly, women entrepreneurship loans are limited to Rs 1.5m, Dalit community business loans to Rs 1m and higher technical education loans to Rs 500,000. BFIs are allowed to disburse up to Rs 300,000 on private housing loans for earthquake victims, while textile industry loans are capped at Rs 50m, CTEVT-recognized training loans at Rs 200,000 and youth self-employment loans at Rs 500,000.

President Ram Chandra Paudel has extended felicitation to Donald J Trump upon his assumption of the office as the 47th US President.

Taking to social media (X) today, President Paudel said, "My warm felicitations to His Excellency Mr Donald J Trump for assuming the office as the 47th President of the United States of America and my best wishes for the successful tenure."

He expressed hope that the cordial relations, subsisting between Nepal and the United States, would be further deepened and expanded in the days to come.