Nepal Weekly Update: Seismic Shocks, Economic Shifts, and Diplomatic Milestones

Since early April 2025, Nepal has navigated a whirlwind of events, from natural tremors to economic fluctuations and high-stakes diplomacy. Prime Minister K.P. Sharma Oli’s historic Thailand visit and meeting with Indian Prime Minister Narendra Modi have spotlighted Nepal’s evolving role on the regional stage.

Earthquakes and Environmental Concerns

On April 4, two earthquakes, the stronger at 5.5 magnitude, rattled western Nepal, with tremors felt in Surkhet, Dailekh, Kalikot, and northern India. No significant damage or casualties were reported, but Nepal’s seismic vulnerability remains a concern. Compounding challenges, wildfires drove hazardous air pollution levels in Kathmandu by April 3, prompting stay-indoors advisories.

Economic Highlights

The Nepal Stock Exchange (NEPSE) index surged to 2700 points on April 2, reflecting market confidence despite low trading volumes. However, remittance inflows, critical to Nepal’s economy, fell to 12.4% of GDP in the first half of FY25, driven by reduced migration to Malaysia, per X posts.

Deepening India-Nepal Ties

On April 1, India and Nepal signed 10 MoUs worth Rs. 625 million for community projects like schools and health posts, reinforcing India’s support. This paved the way for a significant diplomatic encounter during Oli’s Thailand visit.

Oli’s Thailand Triumph and Modi Meeting

Marking Nepal’s first prime ministerial visit to Thailand in 65 years, Oli attended the sixth BIMSTEC Summit in Bangkok starting April 1. On April 4, he held a “cordial and fruitful” meeting with Modi, focusing on energy, connectivity, culture, and digital ties. Modi emphasized Nepal’s priority in India’s “Neighbourhood First” policy, while Oli called the talks “meaningful” for advancing bilateral relations. The meeting, reported by The Kathmandu Post and The Print, signals progress toward Oli’s anticipated New Delhi visit to address recent tensions.

Oli also signed agreements with Thai Prime Minister Paetongtarn Shinawatra on culture, tourism, and agriculture, boosting Nepal’s regional profile, with X posts from @kathmandupost hailing the trip as a “historic success”.

Nepal’s April began with challenges—earthquakes, pollution, and economic dips—but Oli’s diplomatic engagements have strengthened its international standing. As the nation tackles domestic issues, its partnerships with India and Thailand offer a promising path forward in 2025.