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Interest rates on bank loans have been steadily declining over the past few months with banks, flush with loanable funds, not getting sufficient demands for credit.

Despite a gradual improvement in credit disbursement, the base rate—the minimum interest rate used to determine loan pricing—has continued to drop. According to the Nepal Bankers’ Association, commercial banks disbursed Rs 4,850bn in loans over the first eight months of the current fiscal year (mid-July to mid-March), marking a 6.12 percent increase. As of mid-July last year, total outstanding loans stood at Rs 4,570bn. Nepal introduced the base rate system in the fiscal year 2012-13 to enhance transparency in interest rate determination. It includes clearly identifiable cost components, ensuring competitive and fair loan pricing.

The average base rate of commercial banks for the month of Chaitra (mid-March to mid-April) has dropped to 6.48 percent from 6.62 percent in the previous month (mid-February to mid-March). Four banks now have base rates below six percent, with Standard Chartered Bank offering the lowest at 5.03 percent. Rastriya Banijya Bank follows at 5.28 percent, while Everest Bank and Nepal Bank stand at 5.46 percent and 5.96 percent, respectively. NIC Asia has the highest base rate at 7.41 percent, while the base rates of 14 Class ‘A’ banks remain below seven percent. Prime Commercial Bank Ltd is the only other institution with a rate above seven percent.

All commercial banks reduced their base rates for Chaitra (March 14-April 13). Machhapuchhre Bank saw the sharpest cut (0.22 percent), lowering its rate from 6.9 percent to 6.68 percent, while Citizens Bank International made the smallest adjustment (0.06 percent), reducing its rate from 7.01 percent to 6.95 percent.

The decline in base rates is driven by surplus liquidity in the banking system, which has also led to a rapid reduction in deposit interest rates. Since loan interest rates are calculated by adding a premium to the base rate, the drop has made borrowing cheaper.

Despite lower interest rates, loan demand remains weak, leaving banks with over Rs 600bn in surplus investable funds. To attract borrowers, many are offering loans with minimal premium charges. Meanwhile, deposits grew by 4.9 percent to Rs 6,037bn in eight months—up from Rs 5,754bn in mid-July last year.

Oftentimes, it appears that Nepal’s prolonged peace process is getting nowhere, that it has forgotten the victims of a decade-long war that left behind a trail of deaths, destruction and disappearances. After the cessation of hostilities between the then Maoist rebels and the government and signing of a comprehensive peace accord on 21 Nov 2006, much water has flown down the perennial rivers of Nepal. The period since then has witnessed developments like the entry of the Maoists into the mainstream politics, the declaration of the country as a federal secular democratic republic (28 May 2008), completion of the disarmament process of the Maoist army (2012) and the promulgation of a constitution through a Constituent Assembly (2015) in its second term.

These developments notwithstanding, transitional justice remains as a sticking point.

Why would it not? After all, according to estimates, more than 17,000 Nepalis died in the decade-long war, many sustained injuries, hundreds became victims of enforced disappearances and infrastructure worth billions of rupees vaporized, literally, pushing Nepal decades back in terms of development.

In the hearts of the victims and their relatives sits a fear. The victims fear that the leaders of the three major political parties—the Nepali Congress, CPN-UML and the CPN(Maoist Center)—won’t bother to address their concerns, that the top brass will make a compromise to serve their petty interests and save their heads instead.

It is a given that no amount of ‘justice’ can bring a life back, no amount of ‘justice’ can heal the wounds of a war.

That fact aside, the victims have been demanding that there should be no amnesty in cases of heinous crimes like murder, rape and indiscriminate killings.

Against this backdrop, CPN (Maoist Center) Chair Pushpa Kamal Dahal ‘Prachanda’, addressing an interaction on transitional justice in Kathmandu on Thursday, said there never was and will never be a disagreement among the three major parties on taking the remaining tasks of the peace process to a logical conclusion.

He stressed the need to give topmost priority when it comes to delivering justice to the victims, pointing out at the passage of the Truth and Reconciliation Bill and the formation of a recommendation committee for giving shape to a Truth and Reconciliation Commission.

 Past assurances of justice for the victims have proved hollow, stressing a crying need to walk the talk, which may be easier said than done. The top political leadership would do well to not ignore the victims’ concerns. 

The Trump administration is planning to end funding for Gavi, a global health organization that helps provide vaccines and other life-saving care to developing countries, The Guardian reported.

A 281-page spreadsheet obtained by the New York Times lists the Trump administration’s plans for thousands of foreign aid programs, including financial cuts to the organization that buys vaccines for children, as well as scaling back on programs that combat malaria in developing countries.

Gavi is estimated to have saved the lives of 19 million children since it was set up 25 years ago with the US contributing 13% of its budget, the Times said.

“The US has historically been one of Gavi’s biggest donors and I hope that longstanding champions on Capitol Hill will urge the administration to reverse course,” said Janeen Madan Keller, policy fellow and deputy director of the global health policy program at the Center for Global Development, according to The Guardian.

She added: “Gavi is one of the most impactful global health initiatives. We know that vaccinating children is one of the most cost-effective ways to improve health and save lives – which is exactly why Gavi has enjoyed bipartisan support to date.

“This latest move will turn back years of hard-won progress and stymie Gavi’s efforts to stop the spread of infectious disease outbreaks before they reach the US border.”

The government’s decision to dismiss Kulman Ghising, the managing director of Nepal Electricity Authority (NEA), has triggered widespread public anger. Opposition parties—and even senior leaders from ruling coalition partners—have condemned the move, with only the CPN-UML standing firmly behind the unpopular decision. Protests have erupted both in the Parliament, where opposition lawmakers voiced dissent, and on the streets, where Ghising’s supporters gathered in solidarity.

Ghising has now approached the Supreme Court, seeking an interim order for his reinstatement. Over the past decade, he gained recognition for his role in ending Nepal’s chronic power cuts, though critics argue that increased electricity imports from India were the real solution—a point echoed by Energy Minister Deepak Khadka in the parliament last week.

Meanwhile, royalist forces are rallying for the restoration of the monarchy and the Hindu state, with a major protest planned in Kathmandu’s Tinkune area. Initially led by businessman Durga Prasai, the movement has since gained backing from various royalist groups, including the Rastriya Prajatantra Party (RPP), which had initially hesitated. RPP Chairman Rajendra Lingden has announced plans for an indefinite nationwide protest starting in April. Former King Gyanendra Shah, offering tacit support, recently visited Gorkha, where he was greeted by enthusiastic crowds. In response, opposition groups, including the CPN (Maoist Center)-led Samajbadi Morcha, are preparing counter-demonstrations, raising concerns of potential clashes.

In diplomatic developments, Prime Minister KP Sharma Oli is set to make a historic visit to Thailand—the first by a Nepali head of government since the two nations established diplomatic ties in 1959. Oli will attend the 6th BIMSTEC Summit (April 1-5), where leaders are expected to adopt the BIMSTEC Vision 2030, a blueprint for regional cooperation. On the sidelines, he is likely to meet Indian Prime Minister Narendra Modi, their first encounter since last year’s UN General Assembly. Notably, there has been little discussion in Kathmandu about Oli’s long-pending official visit to India, with Foreign Minister Arzu Rana Deuba remaining silent on the matter.

On the development front, the US government has permitted a partial resumption of Millennium Challenge Corporation (MCC) projects in Nepal, which had been paused during a review of foreign assistance under the Trump administration. While the review remains ongoing, select activities under the Nepal Compact can proceed, though officials caution that this does not guarantee full approval. Nepali authorities remain hopeful, citing bipartisan US support for the MCC.

The government has also renewed its demand for social media companies to register in Nepal or face bans, requiring them to appoint local representatives, grievance officers and compliance monitors. So far, only TikTok and Viber have complied.

Economically, Nepal has made notable progress in reducing poverty, nearly eradicating extreme poverty—a success largely driven by remittances, according to a recent World Bank report. However, the country’s economic growth remains sluggish, averaging just 4.2 percent since 1996, lagging behind regional peers due to low productivity, declining exports, and industrial stagnation. With limited domestic job opportunities, youth migration for foreign employment continues unabated.

In international forums, Nepal’s presence at China’s Boao Forum for Asia (March 25-28) will be low-key, with Ambassador Krishna Prasad Oli representing the country instead of high-level officials. Meanwhile, the Trump administration has signaled a tougher stance against Chinese influence in the Indo-Pacific, with US Defense Secretary Pete Herseth outlining an updated strategy that builds on the 2017 Indo-Pacific framework while adapting to current geopolitical realities.