Kathmandu, Aug. 27
With the shrinking economic and business activities in the country in
the past few years, the financial indicators, including the current account,
capital transfers, and Balance of Payments (BOP), showed positive growth that
doubled their position in the Fiscal Year 2025/26 compared to FY 2024/25.
Current account surplus went up by more than a double in 2025/26 to
reach Rs. 923.56 billion from Rs. 409.84 billion in FY 2024/25. In US Dollar terms, the current account registered a surplus of 6.33
billion in the review year against a surplus of 3.01 billion in the previous
year, the Nepal Rastra Bank (NRB)'s annual macroeconomic situation report published
on Wednesday.
Last year, Net capital
transfer amounted to Rs. 18.50 billion which is also almost double of Rs. 9.84
billion of FY 2024/25. Nepal received equity-based Foreign Direct Investment
(FDI) of Rs. 28.49 billion last year against Rs. 12.02 billion of the previous
year.
Likewise, the Balance
of Payments (BOP) remained at a surplus of Rs. 1027.04 billion last year compared
to a surplus of Rs.594.54 billion in the previous year.
Meanwhile, the
government mobilised domestic debt of Rs. 358.66 billion and made principal
repayment of Rs. 250.56 billion thereby mobilising net domestic debt of Rs. 108.10
billion in 2025/26. Net domestic debt mobilisation stands at 1.6 per cent of
GDP.
The government mobilised
external loans of Rs. 88.50 billion during the year. The NRB reported that the
outstanding public debt amounted to Rs. 2927.90 billion in mid-July 2026. Of
which, foreign and domestic debt stood at Rs. 1599.48 billion and Rs. 1375.42
billion, respectively.
With this, the
ratio of total outstanding public debt to GDP reached 45.07 per cent in
2025/26, which was 43.06 per cent in 2024/25.
According to the
report, deposits at Banks and Financial Institutions (BFIs) increased by 13.9
per cent (Rs.1,013.05 billion) reaching Rs. 8,276.93 billion in 2025/26
compared to an increase of 12.6 per cent (Rs.811.49 billion) in the previous
year.
The share of
demand, saving, and fixed deposits in total deposits stood at 8.1 per cent,
47.0 per cent and 35.3 per cent, respectively, in mid-July 2026. The share of
institutional deposits in total deposit of BFIs stood at 33.9 per cent in
mid-July 2026. Such a share was 36.1 per cent a year ago.
Likewise private
sector credit from BFIs increased by 6.5 per cent (Rs. 359.36 billion) to Rs.
5,857.06 billion last year compared to an increase of 8.4 per cent (Rs. 423.73
billion) in 2024/25. The shares of private sector credit from the BFIs to
non-financial corporations and households stood at 62.1 per cent and 37.9 per cent,
respectively, in mid-July 2026.
Last year,
private sector credit from commercial banks, development banks, and finance
companies increased by 6.5 per cent, 7.0 per cent, and 5.4 per cent,
respectively.
Out of the total
outstanding credit of the BFIs, 15.1 per cent is against the collateral of
current assets (such as agricultural and non-agricultural products) and 62.9
per cent against land and building. Such ratios were 14.5 per cent and 64.7 per
cent, a year ago.
The report noted
that the outstanding loan of the BFIs to construction sector increased by 18.6
per cent, consumable sector by 17.8 per cent, transportation, communication and
public sector by 15.0 per cent, industrial production sector by 5.2 per cent,
finance, insurance and fixed assets sector by 5.0 per cent, and service
industry sector by 4.4 per cent, while agriculture sector decreased by 1.8 per cent.
Similarly, the
weighted average 91-days Treasury bills rate was 2.32 per cent in mid-July 2026
against 2.95 per cent in mid-July 2025. The weighted average inter-bank rate
among the BFIs, which was 2.96 per cent in mid-July 2025, decreased to 2.75 per
cent in mid-July 2026.
The average base
rate of commercial banks, development banks, and finance companies stood at
4.83 per cent, 6.58 per cent, and 7.09 per cent, respectively, in mid-July
2026.
Published in The Rising Nepal on 28 August 2026.
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