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The Nepal Rastra Bank (NRB) has begun preparations for its monetary policy for the upcoming fiscal year 2025/26. The central bank on Monday sought input from stakeholders on the new policy. 

Then-Governor Maha Prasad Adhikari described his last monetary policy, for the current fiscal year 2023/24, as “cautiously flexible”. With Biswo Poudel now leading the central bank, there is growing curiosity about the direction of the upcoming policy. In a recent meeting with Finance Minister Bishnu Prasad Paudel, Governor Poudel said that the central bank would support the implementation of fiscal policy through monetary tools, while also strengthening its supervisory capacity to enhance the effectiveness of the financial sector. Finance Minister Paudel expressed confidence that the new governor would ensure better coordination between fiscal and monetary policies to address economic challenges.

Given Governor Poudel’s commitment to aligning monetary policy with fiscal objectives, the upcoming monetary policy is expected to support the priorities outlined in the 2025/26 budget. With the economy still under pressure, public attention is now focused on how monetary policy can help revive economic activity.

The new budget includes provisions for establishing an asset management company to address non-performing loans (NPLs) and implementing loan restructuring reforms. Although past budgets also made similar promises, they were not followed by concrete action. 

Banking expert Anal Raj Bhattarai said the monetary policy must prioritize setting up the asset management company to tackle the growing volume of NPLs in the banking sector. He added that rising NPLs across multiple sectors must be addressed through comprehensive policy reforms. “The policy may include detailed provisions on interest capitalization and extended timelines for interest payments,” Bhattarai said. He expects the upcoming monetary policy to focus on boosting liquidity and stimulating domestic demand.

“The Working Capital Loan Guidelines have made it difficult for businesses to operate, and non-performing loans are on the rise. The new policy is likely to address these challenges,” Bhattarai told ApEx. “Given the lack of momentum in the capital market, the policy could also introduce some easing measures.

Bhattarai also said the new monetary policy could introduce flexibility in the classification and provisioning of bad loans.

Currently, banks are required to make 100 percent provisions for NPLs within one year. Bhattarai proposed extending this timeline to two years, similar to India’s three-year model, to ease capital pressures and enable banks to issue new loans. Governor Poudel has been actively consulting stakeholders, indicating his intent to understand the challenges faced by businesses and the private sector.

Bhattarai expressed confidence in Poudel’s leadership, noting that previous governors, including Adhikari, introduced impactful and market-sensitive policies in their first year.

With Poudel now at the helm, Bhattarai anticipates a similarly pragmatic approach. Compared to the “cautiously flexible” policy of the current fiscal year, he expects the upcoming monetary policy to be flexible.

The price of gold has increased by Rs 1, 300 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 191, 300 per tola today. It was traded at Rs 190, 000 per tola on Tuesday.

Similarly, the silver is being traded at Rs 2, 165 per tola today.

A total of 14, 500 e-vehicles – manufactured in China–have been imported via Rasuwagadhi transit point in 10 years.

With the rise in its import, the electrical vehicles are being placed in Timure, Ghattakhola and Rasuwagadhi areas.

A large number of vehicles have been shelved when the importers fail to complete the customs process.

Information Officer at the Rasuwa Customs Office, Rabindra Pyakurel shared that the customs clearance of 2,570 vehicles has been completed so far. The vehicles with customs clearance are heading to Kathmandu.

Beside e-vehicles, other items such as shoes, sandals, ready-made garments and electrical goods are being imported from China.

During the 10 months of Fiscal Year 2024/25, remittance inflows increased 13.2 percent to Rs 1356.61 billion in the review period compared to an increase of 16.9 percent in the same period of the previous year.

The Nepal Rastra Bank (NRB) stated this in its report entitled 'Current Macroeconomic and Financial Situation of Nepal (Based on Ten Months Data Ending Mid-May 2024/25)' published today.

During mid-April to mid-May 2025 (Baisakh, 2082), remittance inflows stood at Rs 165.30 billion. In the same period of previous year, such inflows amounted to Rs 115.99 billion.

In the US Dollar terms, remittance inflows increased 10.5 percent to 9.96 billion in the review period compared to an increase of 14.8 percent in the same period of the previous year.

Net secondary income (net transfer) reached Rs1479.08 billion in the review period compared to Rs 1301.75 billion in the same period of the previous year, it is stated.

In the review period, the number of Nepali workers, both institutional and individual, taking first time approval for foreign employment stands at 405,610 and taking approval for renew entry stands at 280,314.

In the previous year, such numbers were 373,307 and 236,398 respectively.

Similarly, the current account remained at a surplus of Rs 255.93 billion in the review period compared to a surplus of Rs.193.31 billion in the same period of the previous year.

In US Dollar terms, the current account registered a surplus of Rs 1.89 billion in the review period against a surplus of Rs 1.45 billion in the same period last year.

In the review period, net capital transfer amounted to Rs 8.48 billion. In the same period of the previous year, such transfers amounted to Rs 5.26 billion.

Similarly, in the review period, Rs 10.6 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.7.05 billion.

Balance of Payments (BOP) remained at a surplus of Rs 438.52 billion in the review period compared to a surplus of Rs.392.64 billion in the same period of the previous year.

In the US Dollar terms, the BOP remained at a surplus of 3.23 billion in the review period compared to a surplus of 2.95 billion in the same period of the previous year.

Meanwhile, the NRB report showed that the gross foreign exchange reserves increased 23.1 percent to Rs 2512.95 billion in mid-May 2025 from Rs 2041.10 billion in mid-July 2024.

In the US dollar terms, the gross foreign exchange reserves increased 20.5 percent to 18.40 billion in mid-May 2025 from 15.27 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased 19.6 percent to Rs.2211.11 billion in mid-May 2025 from Rs 1848.55 billion in mid-July 2024.

Reserves held by banks and financial institutions (except NRB) increased 56.8 percent to Rs.301.83 billion in mid-May 2025 from Rs 192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 21.2 percent in mid-May 2025.