Skip to content
|Loading...
Share Gyan home
EBook

Policy Uncertainty Dragging Nepal's Economy, NRB Study Warns

A new Nepal Rastra Bank (NRB) study has found that economic policy uncertainty significantly weakens Nepal's economy by reducing GDP growth, discouraging investment, slowing bank lending, and increasing volatility in the stock market. The report emphasizes that predictable policies and clear communication are essential to maintaining investor confidence and ensuring long-term economic stability.

Published By Share Gyan
Policy Uncertainty Dragging Nepal's Economy, NRB Study Warns

A new study by the Nepal Rastra Bank (NRB) has found that economic policy uncertainty is weakening Nepal's economy by discouraging investment, slowing economic growth, and increasing volatility in the stock market. The report, based on data from 2011 to 2026, estimates that a rise in policy uncertainty could reduce Nepal's real GDP by around 2 percent, while the NEPSE index may fall by 5–10 percent. It also highlights negative impacts on private sector lending and imports. The study identifies annual budgets, monetary policy announcements, political changes, foreign exchange pressures, and major events such as the COVID-19 pandemic as key sources of uncertainty. NRB recommends predictable policymaking, transparent communication, and a stable investment environment to strengthen investor confidence and support sustainable economic growth.

Related News

SEBON Approves 50% Right Share Issuance of NIC Asia Bank Worth Rs 7.45 Billion

The Securities Board of Nepal (SEBON) has granted preliminary approval to NIC Asia Bank Limited to issue 50 percent right shares at a 1:0.50 ratio. The bank will issue 74,587,835 shares worth Rs 7.45 billion at a face value of Rs 100 per share.

NRB to Sell Gold Coins and Silver Medallions for Tihar from November 5

Nepal Rastra Bank (NRB) will sell 2.5-gram gold coins and 10-gram silver medallions featuring Goddess Laxmi and Lord Ganesh on November 5 and 6 (Kartik 19 and 20) from its Minting Division in Babarmahal, Kathmandu.

Himalayan Laghubitta Proposes 5% Dividend for FY 2082/83

Himalayan Laghubitta (HLBSL) has proposed a 5% dividend for shareholders, comprising 4.75% bonus shares and 0.25% cash dividend for the fiscal year 2082/83.

Rastriya Banijya Bank Reports 175.52% Growth in Q1 Net Profit

Rastriya Banijya Bank Limited has reported a remarkable 175.52% year-on-year growth in net profit, earning Rs. 1.64 billion in the first quarter of FY 2083/84, compared to Rs. 598.73 million in the corresponding period of the previous fiscal year. The significant growth was driven by a sharp increase in net interest income and a substantial decline in impairment charges.

Kumari Bank Reports Rs. 1.07 Arba Net Profit in Q1; Operating Profit Jumps 32.39%

Kumari Bank Limited (KBL) has reported a modest 1.70% year-on-year growth in net profit, earning Rs. 1.07 billion in the first quarter of FY 2083/84, compared to Rs. 1.06 billion in the corresponding period last fiscal year. Despite a decline in net interest income, the bank recorded strong growth in operating profit, supported by a significant reduction in impairment charges and operating expenses.

NMB Bank Reports 27.11% Growth in First-Quarter Net Profit

NMB Bank Limited has reported a 27.11% year-on-year increase in net profit, earning Rs. 1.16 billion in the first quarter of FY 2083/84, compared to Rs. 915.98 million in the corresponding period of the previous fiscal year. The growth was supported by higher operating income, increased net interest income, and a significant decline in impairment charges.