Nepal Rastra Bank Releases Annual Macroeconomic and Financial Report on Nepal's 2024/25 Situation

Nepal Rastra Bank, the central bank of Nepal, has unveiled the current macroeconomic and financial situation of Nepal based on Annual data for FY 2024/25.

Overall
Nepal Rastra Bank estimated that the inflation remained at 4.06 percent on a year-over-year basis. The gross foreign exchange reserves stood at 19.50 billion in USD terms, whereas the total imports and exports increased 13.3 percent and 81.8 percent, respectively.

The NEPSE index stood at 2794.79 in mid-July 2025 compared to 2240.41 in mid-July 2024.

Inflation

The y-o-y consumer price inflation stood at 2.20 percent in mid-July 2025 compared to 3.57 percent a year ago.
The annual average wholesale price inflation stood at 3.84 percent in 2024/25 compared to 3.92 percent a year ago. The y-o-y wholesale price inflation stood at 1.05 percent in mid-July 2025 compared to 4.41 percent a year ago.

Import and Export

During 2024/25, merchandise exports increased 81.8 percent to Rs. 277.03 billion against a decrease of 3.0 percent in the previous year. Destination-wise, exports to India, China, and other countries increased 117.8 percent, 1.6 percent, and 6.7 percent respectively. Exports of soyabean oil, polyster yarn and thread, jute goods, tea,and shoes and sandals among others increased whereas exports of palm oil, zinc sheet, juice, ginger, and readymade garments among others decreased in the review year.

During 2024/25, mercandise imports increased 13.3 percent to Rs.1804.12 billion against a decline of 1.2 percent a year ago. Destination-wise, imports from India, China, and other countries increased 7.5 percent, 14.2 percent, and 31.7 percent respectively. Imports of crude soyabean oil, transport equipment, vehicle and spare parts, rice/paddy, edible oil, and sponge
iron among others increased whereas imports of petroleum products, aircraft spareparts, gold, chemical fertilizer, and electrical equipment among others decreased in the review year.

Total trade deficit increased 6.0 percent to Rs.1527.09 billion in 2024/25. Such deficit had decreased 1.0 percent in the previous year. The export-import ratio increased to 15.4 percent in the review year from 9.6 percent in the previous year.

Services and Remittance

Net services income remained at a deficit of Rs.90.94 billion during 2024/25 compared to a deficit of Rs.55.86 billion in the previous year.

Remittance inflows increased 19.2 percent to Rs.1723.27 billion during 2024/25 compared to an increase of 16.5 percent in the previous year. During mid-June to mid-July 2025 (Asar month), remittance inflows stood at Rs. 189.11 billion. In the same period, such inflows were Rs. 117.78 billion.

Inter-bank Transaction

In the review year, BFIs’ interbank transactions amounted Rs.1723.59 billion including Rs.1571.86 billion inter-bank transactions among commercial banks and Rs.151.73 billion among other financial institutions (excluding transactions among commercial banks). In the previous year, such transactions was Rs.4226.48 billion including Rs.3863.48 billion among commercial banks and Rs.363 billion among other financial institutions (excluding transactions among commercial banks).

Price of Oil and Gold

The price of oil (Crude Oil Brent) in the international market decreased 19.38 percent to US dollar 69.67 per barrel in mid-July 2025 from US dollar 86.42 per barrel a year ago. The price of gold increased 37.28 percent to US dollar 3323.80 per ounce in mid-July 2025 from US dollar 2421.25 per ounce a year ago.

Foreign Exchange Reserves and Adequacy Indicator

Gross foreign exchange reserves increased 31.2 percent to Rs.2677.68 billion in mid-July 2025 from Rs.2041.10 billion in mid- July 2024. In the US dollar terms, the gross foreign exchange reserves increased 27.7 percent to 19.50 billion in mid-July 2025 from 15.27 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased 30.6 percent to Rs.2414.64 billion in mid-July 2025 from Rs.1848.55 billion in mid-July 2024. Reserves held by banks and financial institutions (except NRB) increased 36.6 percent to Rs.263.04 billion in mid-July 2025 from Rs.192.55 billion in mid-July 2024. The share ofIndian currency in total reserves stood at 23.1 percent in mid-July 2025.

Based on the imports of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 18.2 months, and merchandise and services imports of 15.4 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025. Such ratios were 35.8 percent, 108.6 percent, and 29.3 percent respectively in mid-July 2024.

Exchange Rate

Nepalese currency vis-à-vis the US dollar depreciated 2.66 percent in mid-July 2025 from mid-July 2024. It had depreciated 1.64 percent in the previous year. The buying exchange rate per US dollar stood at Rs.137.00 in mid-July 2025 compared to Rs.133.36 in mid-July 2024.

Nepal Government Expenditure and Revenue

According to the Ministry of Finance, Financial Comptroller General Office (FCGO), the total expenditure of the Government of Nepal stood at Rs. 1523.11 billion during 2024/25. The recurrent expenditure, capital expenditure, and financial expenditure amounted to Rs.980.38 billion, Rs.222.68 billion, and Rs.320.04 billion respectively in the review period..

In the review period, total revenue mobilization of the Government of Nepal (including the amount to be transferred to provincial and local governments) stood at Rs.1178.82 billion. The total revenue comprises of tax revenue amounting Rs.1049.88 billion and non-tax revenue Rs.128.94 billion in the review period .

Cash Balance of Government

Cash Balance at various accounts (including balance of previous year) of the GoN maintained with NRB remained Rs.130.73 billion (including Provincial Government and Local Government Accounts) in mid-July 2025. Such balance was Rs.93.96 billion in mid-July 2024.

Banking

Monetary Sector's claims on the private sector increased 8.1 percent in the review year compared to a growth of 6.1 percent in the previous year.

Deposits at Banks and Financial Institutions (BFIs) increased 12.6 percent (Rs.811.49 billion) in the review year compared to an increase of 13.0 percent (Rs.742.37 billion) in the previous year.

Private sector credit from BFIs increased Rs.423.73 billion (8.4 percent) in the review year compared to an increase of Rs.276.94 billion (5.8 percent) in the previous year.

Interest Rates
The average base rate of commercial banks, development banks and finance companies stood 6.02 percent, 8.03 percentand 8.97 percent respectively in the last month of 2024/25. Such rates were 8.00 percent, 9.71 percent and 11.21 percent respectively in the corresponding month a year ago.

Balance of Payments
Balance of Payments (BOP) remained at a surplus of Rs.594.54 billion in the review year compared to a surplus of Rs.502.49 billion in the previous year. In the US Dollar terms, the BOP remained at a surplus of 4.37 billion in the review year compared to a surplus of 3.77 billion in the previous year.