RAJESH KHANAL

The National Planning Commission (NPC) has set a budget ceiling of Rs 1.9 trillion for the upcoming Fiscal Year (FY) 2025/26.  

The US government has communicated its blanket decision to put on hold US-fundaed Millennium Challenge Corporation (MCC) projects for 90 days.

Nepal received foreign direct investment (FDI) pledges worth Rs 26.84 billion in the first seven months of the current Fiscal Year (FY), an 18.34 percent increase compared to the same period in FY 2023/24.  

The government owns 58.66 percent stake in the NEPSE. According to NEPSE, it has assets worth Rs 14 billion while its paid up capital is Rs 1 billion. Apart from the MoF, Laxmi Sunrise Bank, Prabhu Bank, Rastriya Banijya Bank, Employee Provident Fund and Nepal Rastra Bank are among its stakeholders.

The government has downsized the budget for the current fiscal year to Rs 1.692 trillion, which is 90.99 percent of the initial estimate. The government slashed the budget citing the slow capital expenditure, inadequate revenue collection and low realization of foreign loans.  

In July 2023, Nepal narrowly escaped being placed on the greylist by the FATF.

Govt’s treasury is in negative balance Rs 93 billion, while payments against loans liability is three-folds of development expenses 

The standoff between the contractors and the government regarding the settlement of dues for construction works is likely to take a toll on the country’s overall development projects.  

The trend of surrendering life insurance policy has surged by a notable rate in recent months due to the ongoing economic slowdown, increasing price of essentials and possible manipulations by the insurance agents.

Nepal’s export earnings bounced back with a 38-month high increment, as the figure rose 16.54 percent in the first five months of the current fiscal year (FY) compared to the export earnings in the corresponding period of last FY.