Kathmandu: Finance Minister Dr Swarnim Wagle presented the Economic Survey for the fiscal year 2025/26 to both houses of the federal parliament on Wednesday, painting a picture of a resilient economy showing marked improvement in several socio-economic indicators.
The report highlights significant strides in external sector stability, near-universal electricity access, and meaningful poverty reduction, though it does sound a note of caution regarding sluggish domestic investment and a slow pace of private sector credit growth.
One of the most striking achievements highlighted in the survey is Nepal’s record-breaking foreign exchange reserves, which have surged to Rs 3.41 trillion by mid-March. This unprecedented cushion is sufficient to cover imports of goods and services for over 18 months, providing a robust shield against global economic shocks.
This financial strength is largely driven by a massive 37.7 percent spike in remittance inflows, which reached nearly Rs 1.45 trillion, pushing the country’s Balance of Payments into a comfortable surplus of Rs 658 billion.
Adding to this positive momentum, the survey notes that Nepal’s international standing has been bolstered by its recent sovereign credit rating. In 2025, the country secured a ‘BB-’ rating with a ‘Stable’ outlook, a move that is expected to serve as a pivotal signal to global investors, boosting confidence in the country’s fiscal management and economic trajectory.
On the social front, Nepal’s Human Development Index has climbed to 0.622, accompanied by an increase in average life expectancy to 71.3 years. These improvements have translated into lower poverty levels, with absolute poverty dropping to 20.27 percent and multidimensional poverty falling to 13.4 percent.
Health outcomes have also seen a positive shift, with the maternal mortality rate declining to 151 per 100,000 live births and infant mortality dropping to 27 per 1,000 live births.
Infrastructure and financial inclusion have seen remarkable progress as well, with 99.1 percent of the population now having access to electricity. The banking sector has expanded significantly, with the total number of bank accounts exceeding 62 million and mobile banking users reaching nearly 30 million.
While digital payment systems are flourishing, evidenced by over Rs 125 billion in QR-based transactions, the report highlights a disconnect in the financial market; despite high liquidity and low interest rates in banks, private sector credit grew by a modest and sluggish 4.4 percent.
The tourism sector bounced back strongly in 2025, welcoming over 1.16 million visitors who stayed for an average of 16 days and spent about US$ 33 per day. Meanwhile, the national road network has expanded to over 104,900 kilometres, with a noticeable increase in paved road density across the country.
However, the survey does not shy away from the structural challenges facing the economy, particularly the widening trade deficit, which grew by 11.2 percent to cross the Rs 1.09 trillion mark. Exports remain a weak link, accounting for only 12.9 percent of the total foreign trade, indicating a persistent and heavy reliance on imports.
Industrial investment remains uneven among the 7,951 registered projects, with the mining sector receiving the least attention, capturing just 1.3 percent of the total investment. To stay on track for the Sustainable Development Goals, the survey estimates that Nepal needs to mobilize an additional Rs 755 billion in investment annually, a target that requires aggressive policy intervention and resource mobilization.
On a greener note, Nepal is successfully leveraging its environmental assets, earning US$ 36 million in revenue from carbon trading. The country continues to maintain a forest cover of 46.08 percent of its total land area, a figure that remains well above the global average and reflects Nepal’s commitment to climate change mitigation.
Ultimately, the latest data suggests that while Nepal’s economy is currently insulated from external pressures, the real task ahead lies in boosting domestic production, narrowing the trade gap, and re-energizing the private sector to ensure long-term, self-sustaining growth.
Comment Here