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The current account remained at a surplus of Rs.166.80 billion in the review period compared to a surplus of Rs.162.52 billion in the same period of the previous year, Nepal Rastra Bank (NRB) stated in its 'Current Macroeconomic and Financial Situation of Nepal (Based on Seven Months Data Ending Mid-February, 2024/25) Report'.

In the US Dollar terms, the current account registered a surplus of 1.24 billion in the review period against a surplus of 1.22 billion in the same period last year. In the review period, net capital transfer amounted to Rs.5.83 billion.

In the same period of the previous year, such transfer amounted to Rs.3.80 billion. Similarly, in the review period, Rs.7.45 billion foreign direct investment (equity only) was received.

In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs.5.19 billion.

Balance of Payments (BOP) remained at a surplus of Rs.284.41 billion in the review period compared to a surplus of Rs.297.72 billion in the same period of the previous year.

In the US Dollar terms, the BOP remained at a surplus of 2.11 billion in the review period compared to a surplus of 2.24 billion in the same period of the previous year.

Foreign Exchange Reserves Gross foreign exchange reserves increased 16.1 percent to Rs.2369.08 billion in mid-February 2025 from Rs.2041.10 billion in mid-July 2024.

In the US dollar terms, the gross foreign exchange reserves increased 11.7 percent to 17.05 billion in mid-February 2025 from 15.27 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased 13.9 percent to Rs.2105.14 billion in mid-February 2025 from Rs.1848.55 billion in mid-July 2024.

Reserves held by banks and financial institutions (except NRB) increased 37.1 percent to Rs.263.93 billion in mid-February 2025 from Rs.192.55 billion in mid-July 2024.

The share of Indian currency in total reserves stood at 22.0 percent in mid-February 2025.

Foreign Exchange Adequacy Indicators Based on the imports of seven months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.2 months, and merchandise and services imports of 14.4 months.

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 41.5 percent, 120.3 percent and 32.5 percent respectively in mid-February 2025.

Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024.

Fertilizer shortages have been a recurring issue every year, particularly during the farming season when demand is highest. This year is no exception, as farmers are once again facing difficulties due to the failure to import fertilizer on time. The delay stems from the inability of the Agricultural Materials Company, responsible for fertilizer distribution, and its contracted suppliers to adhere to their agreement.

The company does not accept fertilizer shipments that arrive after the agreed deadline. Instead, such delays result in fines and blacklisting of suppliers. Due to a dispute between the Agricultural Materials Company and a contractor, 1,300 tons of urea fertilizer have remained stuck in a warehouse at the northern Tatopani customs checkpoint for 21 months.

According to Anirudra Thapa, the warehouse manager of the Tatopani customs dry port, 3,590 tons of urea fertilizer were imported from China daily between 1 June and 17 June 2023. Of this, approximately 2,290 tons were transported from the warehouse to the Agricultural Materials Company.

“Around 1,300 tons remain in the warehouse. We are unsure of what transpired between the importer and the agricultural company. Our role at the dry port is warehouse management—storing imported goods in containers until the responsible parties complete the necessary documentation, clear customs, and arrange transport. However, the fertilizer has been stuck in the warehouse, and the suppliers have ceased communication. We have heard that the matter has occasionally reached the court,” Thapa told Annapurna. The warehouse charges rent at a rate of 17 paisa per kilogram per day. “If the suppliers had come to collect it, we would have facilitated the process as much as possible, but they have not been in touch.”

As per customs regulations, unclaimed goods must be confiscated if they are not collected within 60 days of arrival. Despite this rule, the fertilizer has remained in storage for over eight months, increasing financial liabilities. Although the fertilizer has not yet deteriorated, prolonged storage increases the risk of degradation. Additionally, the prolonged presence of the fertilizer in the warehouse has caused logistical challenges for handling other goods arriving at the Tatopani dry port.

The government provides subsidies on such fertilizers. Silk Market Pvt Ltd, Sinomac, Globalmatics, and Bidh Pvt Ltd had jointly opened a letter of credit (LC) with a bank to import fertilizer from China. However, when the shipment failed to arrive on time as per contractual terms, the Agricultural Materials Company canceled the tender. Consequently, the fertilizer remained stranded at the customs yard. The issue has been reported in the media multiple times, yet no resolution has been reached. Meanwhile, as the Finance Committee reviews amendments to the Customs Act, concerned Members of Parliament have been inspecting customs points. On Sunday, 12 MPs, including Finance Committee Chairman Santosh Chalise, visited the Tatopani customs checkpoint. Upon witnessing the stockpiled fertilizer, Chairman Chalise contacted Agriculture and Livestock Minister Ramnath Adhikari and the Agriculture Secretary to address the matter.

Tatopani Customs Checkpoint Chief Kamal Kumar Bhattarai stated, “The Customs Act is currently under review by the Finance Committee. The monitoring team inspected the customs office and checkpoint, expressed concern over the prolonged storage of fertilizer, and raised the issue directly with the Agriculture Minister from my office. The team conducted their inspection on Sunday and returned on Monday.”

According to Bishnu Prasad Pokharel, Managing Director of the Agricultural Materials Company, three years ago, Silk Market Pvt Ltd, Sinomac, Globalmatics, and Bidh Pvt Ltd entered into a joint venture (JV) contract with the company. Even under the initial agreement, fertilizer deliveries were delayed. At the time, the company imposed legal penalties, confiscated deposits, and blacklisted the suppliers. In response, the companies sought legal intervention, and the court temporarily halted punitive actions.

Following the court's decision, the suppliers did not immediately deliver the fertilizer but eventually shipped it later. The original contract required the suppliers to import 25,000 tons of urea fertilizer. Subsequently, a revised agreement stipulated that the fertilizer already held at customs would be delivered to the Agricultural Materials Company within 30 days, while the remaining 21,500 tons would be supplied within 107 days.

“Despite the 30-day commitment, it took them 8–9 months to deliver just 1,300 tons. Even after 300 days, they failed to supply the remaining fertilizer. We extended deadlines multiple times, sent formal requests, and urged compliance. However, as no action was taken, we were compelled to impose penalties and blacklist the companies once again,” Pokharel explained.

The government is on track to miss its revenue targets yet again as collection has reached just 50.24 percent with just four months remaining in the fiscal year 2024-25.

According to the Financial Comptroller General Office (FCGO), revenue collection stood at barely half the annual target as of March 11, with the current fiscal year set to conclude in mid-July.

Tax revenue collection has reached 49.19 percent of the target, while non-tax revenue performance is comparatively better at 60.27 percent. However, the government’s performance in securing grants has been particularly poor, with only 17.43 percent of the targeted amount realized by March 11.

The government set an ambitious revenue target of Rs 1,419.30bn for the current fiscal year—a 34 percent increase over the Rs 1,039bn collected in 2023-24. So far, it has raised Rs 713.08bn.

The sluggish revenue mobilization is due to lower-than-expected tax collections and a shortfall in foreign grants. The government aims to collect Rs 1,284.20bn in tax revenue,
Rs 125.09bn in non-tax revenue and Rs 52.32bn in grants in the current fiscal year. However, it has so far collected only Rs 631.65bn in tax revenue, Rs 81.42bn in non-tax revenue and Rs 9.11bn in grants.

Despite gradual improvements in the economy—such as a nearly 10 percent increase in imports compared to the last year and growth in domestic production—revenue collection has not kept pace. Officials suspect that widespread revenue evasion is a key factor behind this shortfall.

Recognizing the shortfall, the Ministry of Finance has revised the revenue target downward to Rs 1,286bn through the mid-term review of the budget. However, achieving even this revised target is becoming challenging for the government. The government must collect nearly Rs 550bn in the remaining four months to meet the revised target. With average monthly revenue collection currently at just Rs 90bn, meeting the target will be difficult, even though revenue collection typically surges in the final month of the fiscal year (mid-June to mid-July).

This is not the first time the government has struggled to meet its revenue goals. In the previous fiscal (2023-24), it fell short by Rs 379bn, collecting only 74.29 percent of the
Rs 1,093bn target. Revenue mobilization was even worse in 2022-23, when the government collected just 68.23 percent of the Rs 1,403bn target—the poorest performance in the past five years. In contrast, the government achieved 90.24 percent of the Rs 1,180bn target in 2021-22 and 92.5 percent of the Rs 1,011bn target in 2020/21—the highest collection rates in recent years.

The first commercial chartered flight will be operating on the Pokhara- Chengdu (China) route from March 18 in a bid to regularise international flights at Pokhara Regional International Airport in Kaski.

The regular operation of international flights from the airport had not been possible since two years of the launch of the airport.

According to Pokhara Tourism Council Chair, Taranath Pahari, the first operation of a commercial charted flight is scheduled to take place on March 18 for Chengdu.

Efforts to this end have been made from the private sector, it is said. China Travels International, Chengdu, the Embassy of China in Nepal and the Sichuan Airlines have collaborated with the Council towards that end.

Likewise, the Council has the support of Nepal-based Chinese Overseas Association.

The step is expected to be a cause for the boom the Province tourism business. They aim to welcome around 1,250 Chinese tourists directly from Sichuan province in China at the airport in the next three months.