NRB marks 70 years; Acting Governor highlights progress, challenges and reforms

KATHMANDU: Acting Governor of Nepal Rastra Bank (NRB), Dr Neelam Dhungana Timsina, marked the central bank’s 70th anniversary on Sunday, acknowledging its foundational role in driving Nepal’s economic growth and maintaining financial stability. She extended gratitude to past governors, staff, and stakeholders of the central bank for their decades-long contributions.

In a statement issued by the central bank, Dr Dhungana highlighted the gradual recovery of Nepal's domestic economy, with inflation contained within target limits, improvements in trade dynamics, and enhanced credit flows. She noted that legislative reforms have facilitated a more favourable investment environment. However, she admitted that challenges remain, stating, “Challenges remain as the domestic economy returns to normal,” referencing issues such as limited credit flows to the private sector, delays in capital expenditure, and global uncertainties arising from geopolitical conflicts.

Referring to the International Monetary Fund’s (IMF) World Economic Outlook published in April 2025, Dr Dhungana cited projections of global economic growth slowing to 2.8% in 2025 from 3.3% in 2024. She also pointed out estimates for neighbouring India and China, projecting growth rates of 6.2% and 4.0% respectively. Domestically, figures from the National Statistics Office (NSO) revealed GDP growth of 3.54% at basic prices in last fiscal year 2023/24, with an estimated 5.1% growth in the second quarter of current fiscal year 2024/25. Remittance inflows rose by 9.4%, totalling Rs 1,051.77 billion, significantly bolstering foreign exchange reserves, now sufficient to cover 17.2 months of imports.

The Acting Governor underscored the rapid expansion of financial inclusion across Nepal, noting the establishment of commercial bank branches in all 753 local administrative levels. She also applauded the growing adoption of digital payment systems, which have contributed to improved financial access nationwide. Dr Dhungana reaffirmed NRB’s commitment to promoting green finance, modernising payment systems, and strengthening monetary policy tools.

In her closing remarks, Dr Dhungana expressed appreciation to NRB staff, government departments, and international partners for their support, while congratulating long-serving employees and award recipients. She called for continued efforts to uphold the central bank’s stature both nationally and globally. Dr Dhungana concluded by reiterating NRB’s commitment to ensuring economic stability and fostering sustainable growth amid evolving challenges.