Nepal’s latest economic outlook: Why are people not taking loans?

In recent times, Nepal has witnessed enhancement in its external and monetary indicators, marking a significant turnaround in its economic landscape. A notable improvement is found in the current account and balance of payment, as the rising inflow of remittance paired with strengthened gross foreign reserves have resulted in a strong external sector of Nepal.

As of mid-December 2023, the gross foreign exchange reserve was USD 13.3 billion, which was a 36.7 per cent increase from that of the same period in 2022. The balance of payment has also seen a surplus of 210.6 billion rupees along with the remittance being Rs 613.25 billion.