Nepal’s foreign exchange reserves hit Rs3.2 trillion as investment stalls
Summary
Nepal's foreign exchange reserves reached a record Rs3.2 trillion amid stagnant investment and sluggish economic growth, driven mainly by soaring remittances and low consumption.
Key Points
- Nepal’s foreign exchange reserves surged to Rs3.20 trillion by mid-December 2025, exceeding half of the country’s GDP.
- The reserve increase is largely fueled by high remittance inflows as youth outmigration rises, while domestic investment and consumption are weak.
- Low private sector confidence and political instability are cited as key reasons for stalled investments and job creation in Nepal.
- Economists warn that without political stability and coherent policies, Nepal risks missing the opportunity to convert reserves into sustainable growth and employment.
