Nepal News Evening Economic Brief – December 05, 2025
Summary
Nepal advances its economy with increased government investments, modernization of power infrastructure, and initiatives to boost tourism and investment despite challenges in manpower and budget cuts in provinces.
Key Points
- Government investment in public enterprises reached Rs 930.88 billion in fiscal year 2024/25, with major investments in NEA, CAAN, Nepal Telecom, Rastriya Banijya Bank, and Agricultural Development Bank.
- NEA automated seven older grid substations to modernize the power system, funded by a concessional loan from the Asian Development Bank.
- The government is pursuing a domestic funding model for the USD 1.75 billion Upper Arun Hydropower Project amid uncertainty over World Bank funding.
- Tourism in Lumbini saw increased international arrivals but decreased domestic and Indian tourist visits compared to last year.
- Bagmati Province cut the infrastructure budget for Dolakha by up to 30%, impacting key road and water projects.
