KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape showed a mixed picture this week, marked by significant developments in the financial, infrastructure, and policy sectors. The stock market saw sharp declines for two consecutive days, with the NEPSE index closing at a low of 2,922 points amid falling turnover, reflecting investor caution. Commodity markets followed suit, as gold and silver prices dropped in line with global trends.
Meanwhile, the government approved Rs 35 billion in concessional loans for key infrastructure projects, even as long-delayed ventures like the Kathmandu-Tarai Fast Track continued to strain public resources. Reforms were also prioritized, with new agendas targeting labor regulation, foreign aid scrutiny, and budget management.
At the provincial level, concerns surfaced over underperformance in revenue collection and fund utilization, while private sector momentum was seen through IPOs, trade board appointments, and a rising fuel retail sector. These developments signal both structural challenges and efforts toward economic stabilization and reform.
Stock market drops on last trading day of the week
The Nepal Stock Exchange (NEPSE) index declined by 31.50 points on Thursday, adding to a nearly 48 point drop on Wednesday. With these losses, the index closed at 2,922 points. Market sentiment remained volatile throughout the trading session. The intraday high reached 2,967 points at 11:24 AM, but the index closed at its day’s low. Trading volume slipped as well, falling from Wednesday’s turnover of Rs 16.44 billion to Rs 15.98 billion today. Share prices of 52 companies rose, while 198 declined.
Gold price drops by Rs 800 per tola
The price of gold fell by Rs 800 per tola on Thursday, according to the Federation of Nepal Gold and Silver Dealers Association. Gold is now priced at Rs 193,600 per tola, down from Rs 194,400 the day before. The decline mirrors falling rates in international markets. Silver prices also fell, dropping Rs 40 per tola.
Cabinet approves Rs 35 billion concessionary loans for major projects
The government has approved concessional loans amounting to Rs 35 billion, among 18 resolutions passed in the Cabinet meeting on July 28. Key decisions include accepting a $137 million World Bank loan (about Rs 18.92 billion) for phase three of the Rani Jamara Kulariya Irrigation Project and another $86.7 million loan for upgrading and strengthening the electricity distribution system.
Labour ministry unveils 22 point reform agenda
The Ministry of Labour, Employment, and Social Security has launched a 22 point reform agenda targeting labour administration, domestic and foreign employment, social security, skills training, and institutional reform. The commitments were revealed during the 2024/25 annual review of the Ministry, Foreign Employment Department, Social Security Fund, Foreign Employment Board, and Labour and Occupational Safety Department.
Delay in Kathmandu Tara i fast track raises cost burden on state
The Kathmandu Tarai/Madhes Fast Track project remains delayed, increasing its financial burden on the state. Although scheduled for completion in four years, less than 50% of the work has been done in eight years. The Ministry of Physical Infrastructure handed the project to the Nepal Army on August 11, 2017. The total cost is estimated at Rs 211.93 billion, with Rs 80.54 billion already spent.
Minister Dahal instructs fast tracking of Thankot Chitlang road upgrade
Transport Minister Devendra Dahal has ordered acceleration of the Thankot Chitlang road project. After visiting the section on Thursday, he said the shorter route linking Kathmandu will support economic development. He expressed confidence it will facilitate transport of agricultural goods from Makwanpur to Kathmandu and promote tourism.
Government to accept foreign aid only for well prepared projects
The government will now approve foreign aid only for thoroughly prepared projects. Citing failures in unplanned initiatives and concerns about official capacity, the Ministry of Finance has introduced a foreign aid evaluation checklist. The ministry noted that most current aid projects have required extensions or additional funding as preparations began only after financing deals were signed.
Committee recommends revising laws for LDC graduation
To graduate from Least Developed Country status to developing-nation status, Nepal must substantially amend its legislation. A report by the National Assembly’s Development, Economic Affairs, and Good Governance Committee recommends repealing five laws, amending 29, and introducing three new acts.
Industry ministry appoints three experts to board of trade
The Ministry of Industry, Commerce, and Supplies has named three private sector experts—Kush Kumar Joshi, Bidushi Rana, and Jyotsna Shrestha—to the Board of Trade under Clause 13 of the 2024 Trade Policy, according to the minister’s secretariat.
Finance Ministry forms taskforce for budget management law
The Ministry of Finance has established a taskforce, led by Mahesh Baral of the Financial Federalism Coordination Division, to draft legislation enhancing budget management and implementation across federal, provincial, and local levels. The initiative aims to streamline allocation processes, improve public financial efficiency, and manage federal reserve cash flow.
Skilled migrant workforce drops by 11 %
While the overall number of migrant workers abroad rose over the past four years, skilled worker migration declined by 11 % in fiscal year 2024/25 compared to the previous year. The Department of Foreign Employment reported that skilled workers accounted for 46 % of migrants in 2022/23, rising to 72 % in 2023/24.
CDSC plans two tier classification for dematerialised securities
CDS and Clearing Limited (CDSC) is preparing to divide listed dematerialised securities into two categories: founder and public. To this end, it has drafted the “Securities Dematerialization Operation Directive 2025” and has submitted it to the Securities Board for approval.
Nine petrol stations cross Rs 1 billion in fuel sales last fiscal year
Nine petrol stations in Nepal made over Rs 1 billion in fuel sales during the last fiscal year. According to Nepal Oil Corporation spokesperson Manoj Thakur, the nation has 1,736 fuel stations: 1,548 regular, 51 model, and 137 remote area vendors relying on drum sales.
National tourism council prioritises wellness tourism strategy
In its first meeting, the National Tourism Council resolved to develop a strategic concept paper focusing on wellness tourism. Chaired by Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey, the council emphasized prioritising wellness tourism in policy for inclusive, long term sector growth.
Two South Asian investment and leadership forums kick off in Nepal
Hosted by JCI Nepal, the JCI South Asia Business and Investment Meet and the South Asian Academy for International Leadership began on Thursday at Hotel Aloft in Thamel. The forums will run from August 1 to 4, focusing on investment and youth leadership.
Karnali Province falls short of internal revenue goal
The Karnali Province Government has failed to meet its internal revenue target for the fiscal year 2024/25. While economic growth was projected at 5.47%, the province had aimed to collect Rs 834.65 million in internal revenue. A budget of Rs 31.41 billion was based on this estimate, with the remainder of funding dependent on federal and external grants.
Lemon farmer in Tanahun struggles to reach market
Manish Malla, a commercial lemon farmer in Devghat Rural Municipality-2 of Tanahun, is facing difficulties due to a lack of market access. He has cultivated lemons across 20 ropanis of land, but despite the crop being ready for harvest, the fruits remain unsold in the field due to poor market linkages.
Nepalgunj trade deficit surpasses Rs 74 billion
The Nepalgunj customs office has reported a trade deficit of over Rs 74.32 billion for fiscal year 2024/25. The large gap between imports and exports through the Jamunaha border contributed to the deficit, with imports far outweighing exports. The customs office noted that 96% of trade through this point resulted in a deficit.
Kanchanpur returns over Rs 1.80 billion in unused funds
Kanchanpur district returned more than Rs 1.80 billion in unspent budget at the end of the 2024/25 fiscal year. Out of a total budget of Rs 17.14 billion, Rs 15.34 billion was utilized, amounting to a spending rate of 89.49%. The remaining Rs 1.80 billion was sent back, according to records from the Federal Treasury and Accounts Control Office and the Provincial Accounts Unit.
Nepal Reinsurance Company to issue 100% rights shares
Nepal Reinsurance Company is preparing to issue 100% rights shares to its existing shareholders. The decision was made by the board of directors following approval from the Ministry of Finance. The rights issue aims to help the company meet the regulatory requirement of maintaining a minimum paid-up capital of NPR 20 billion by mid-February 2026. The proposal will be tabled at the upcoming general assembly.
Daramkhola Hydro Energy opens IPO to public
Daramkhola Hydro Energy has launched its initial public offering (IPO) for general investors. Starting Thursday, members of the public can apply for shares. The company is offering 38.33% of its Rs 1.03 billion capital. After allocations to migrant workers and those affected by the project, 2,423,185 shares remain available to the general public.
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