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Global Headwinds Cool Nepal’s Growth to 3.85% Amid Agricultural Slump, Economic Survey Reveals

Finance Minister Dr. Swarnim Wagle’s FY 2082/83 Economic Survey projects a growth slowdown to 3.85% as a sharp dip in farming offsets mild service sector gains, prompting calls for immediate structural reforms.

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Global Headwinds Cool Nepal’s Growth to 3.85% Amid Agricultural Slump, Economic Survey Reveals

Finance Minister Dr. Swarnim Wagle presented the Economic Survey for the current fiscal year 2082/83 to the House of Representatives on Wednesday, projecting Nepal’s economic growth to decelerate to 3.85 percent. This marks a contraction from the 4.43 percent expansion recorded in the previous fiscal year, even as the nation’s total Gross Domestic Product (GDP) is estimated to expand to Rs 66 trillion 9 billion. The deceleration is primarily driven by a sharp downturn in the primary sector, with agricultural growth plummeting from 3.05 percent last year to just 1.58 percent, undermining the minor acceleration observed in the non-agricultural sector, which nudged up to 4.54 percent. Regionally, the economic landscape remains highly centralized; only Bagmati and Gandaki provinces are projected to outpace the national average growth rate, leaving the remaining five provinces lagging behind. The structural composition of the economy continues to mirror a decade-long drift away from production toward services, with non-agriculture commanding 76 percent of the GDP against agriculture’s declining share of 24 percent. Furthermore, consumption remains the overwhelmingly dominant driver of economic activity, accounting for 90.3 percent of the GDP, with the private sector fueling 91.26 percent of that aggregate spend. On the social indicator front, the survey recorded notable advancements: per capita income is expected to touch USD 1,535, absolute poverty has receded to 20.27 percent, and average life expectancy has reached 71.3 years. However, Dr. Wagle paired these domestic social milestones with a stern geopolitical warning, cautioning lawmakers that widening conflicts in West Asia, escalating global commodity prices, and persistent supply chain bottlenecks pose acute risks to monetary stability and inflate import bills via rising petroleum costs.

Nepal Rastra Bank Publishes Thursday's Foreign Exchange Rates; US Dollar at Rs. 149.61

Nepal Rastra Bank (NRB) has published the official foreign exchange rates for Thursday. The buying rate of one US dollar has been fixed at Rs. 149.61 and the selling rate at Rs. 150.21. The British Pound Sterling has recorded the highest value among the major currencies listed, with a selling rate of Rs. 200.16.

Gold Price Plunges by Rs. 5,900 Per Tola on Dhanteras; Silver Also Declines

Gold and silver prices recorded a sharp decline in the Nepali market on Friday, Kartik 20, coinciding with Dhanteras. Gold fell by Rs. 5,900 per tola to Rs. 283,000, while silver dropped by Rs. 110 per tola.

Nepal's VAT Collection Exceeds Target as Consumer Reward Scheme Boosts Tax Compliance

Nepal's VAT collection exceeded its first-quarter target in FY 2083/84, reaching Rs. 41.04 billion, up 10% compared to the same period last year. The increase comes after the Inland Revenue Department introduced a consumer reward scheme encouraging people to demand bills when making purchases.

Nepal Estimates $5 Billion Needed for Reconstruction After Bhotekoshi-Trishuli Disasters

Finance Minister Dr. Swarnim Wagle has estimated that Nepal will require approximately $4.7 billion to $5 billion for reconstruction following the disasters in the Bhotekoshi and Trishuli regions. The government is preparing a phased financing plan, including financial support from India, China, the World Bank and the Asian Development Bank (ADB).

Maya Khola Hydropower's Net Profit Surges 124.52% to Rs 6.38 Crore in Q1

Maya Khola Hydropower Company Limited (MKHC) has reported a 124.52 percent increase in net profit, earning Rs 6.38 crore in the first quarter of FY 2083/84, compared to Rs 2.84 crore in the same period last year. Higher electricity sales revenue and lower interest expenses supported the company's improved profitability.

Khani Khola Hydropower Turns Profitable, Reports Rs 3.65 Crore Net Profit in Q1

Khani Khola Hydropower Company Limited (KKHC) has made a remarkable financial turnaround, reporting a net profit of Rs 3.65 crore in the first quarter of FY 2083/84, compared to a net loss of Rs 1.89 crore in the same period last year.