KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal’s economic, labor, and infrastructure sectors reflect both momentum and ongoing systemic challenges. While the launch of the Koshi Investment Summit, new digital labor platforms, and major infrastructure milestones like the Narayanghat–Butwal road and Chimkhola hydropower project indicate a push toward modernization and investment attraction, other issues reveal structural inefficiencies.
The sharp decline in gold prices and fuel cost reductions highlight external market influences and state attempts to ease inflationary pressures. Meanwhile, regulatory lapses by banks, stagnating projects like the Soti water scheme, and unresolved leadership at Nepal Rastra Bank expose governance gaps.
On the labor front, a reported 10.84% drop in regular employment and stagnant workers’ rights underscore persistent vulnerabilities despite symbolic observances like International Workers’ Day. Overall, Nepal’s growth ambitions remain entangled with regulatory, labor, and execution bottlenecks.
Gold price drops sharply by Rs 4,600 per tola in Nepal
Gold prices in Nepal saw a steep drop of Rs 4,600 per tola on Thursday, traded at Rs 183,500, down from Rs 188,100 the day before. Silver also dropped by Rs 50 per tola, priced at Rs 1,915, according to the Federation of Nepal Gold and Silver Dealers’ Association.
PM inaugurates first Koshi investment summit, calls for investment in the province
Koshi Province kicked off its first-ever investment summit on Thursday in Biratnagar. Aiming to attract nearly Rs 180 billion in investments, the provincial government presented 71 projects spanning tourism, agriculture, industry, infrastructure, and healthcare.
Prime Minister KP Oli inaugurated the summit at Birendra Sabha Griha, emphasizing that Koshi offers a conducive environment for investments across all sectors.
He noted that legal reforms have eased the investment process and assured government backing for entrepreneurship. “Pursue entrepreneurship—the government is behind you,” he stated.
IFC and FNCCI discuss collaboration
The International Finance Corporation and the Federation of Nepalese Chambers of Commerce and Industry held discussions on enhancing Nepal’s economic development and employment landscape.
IFC South Asia Region Head Gregory Smith and FNCCI Vice President Hem Raj Dhakal met at the FNCCI Secretariat to explore joint initiatives. Smith expressed IFC’s readiness to support Nepal through capacity building, knowledge sharing, and employment creation for youth.
Report shows 10.84% drop in regular jobs for workers in Nepal
As Nepal marks International Labour Day, a labor audit by GEFONT reveals a 10.84% decline in regular employment compared to last year. The 2081 Labor Audit Report shows that only 53.35% of workers are in regular jobs, down from 59.72% in 2080 BS.
Nepal Rastra Bank penalizes five commercial banks for regulatory violations
Five commercial banks have faced penalties from Nepal Rastra Bank for non-compliance during the third quarter of fiscal year 2081/82. Standard Chartered Bank was fined Rs 148.5 million for failing to meet lending targets in agriculture, energy, and MSMEs.
Rastriya Banijya Bank and Nepal Bank were also fined, with the CEO of Rastriya Banijya Bank receiving a warning for misclassifying loans and improper risk calculations after overdue payments.
NEA to import additional 600 MW electricity from India
The Nepal Electricity Authority has received approval to import 600 megawatts of electricity from India for up to 15 hours daily, an increase from the previous 12 hours.
The Muzaffarpur-Dalkebar transmission line will now supply power from 2 AM to 5 PM. This comes after India had already approved 654 megawatts, though Nepal had not been receiving the full allotment due to rising Indian demand.
PM Oli launches ‘Shram Sansar portal’, vows equal job access
On the occasion of the 136th International Labour Day, Prime Minister KP Sharma Oli launched the Ministry of Labour, Employment and Social Security’s new digital platform, ‘Shram Sansar Portal’.
He underscored its potential in addressing foreign employment issues and providing domestic labor services efficiently. Oli announced that the portal will be integrated into the Nagarik App to enhance accessibility, ensuring that every citizen benefits from services like skill training and concessional loans.
Nepal Rastra Bank without full-time Governor for 23 days
Nepal Rastra Bank has been without a permanent governor for 23 days, with Deputy Governor Dr. Neelam Dhungana Timsina serving in an acting capacity since Chaitra 25.
The post has remained vacant since Maha Prasad Adhikari’s term ended. Political disagreements have stalled the appointment process. While Dr. Timsina’s appointment was made under Section 27 of the NRB Act, legal experts question its validity for normal term completions. Concerns are mounting over the impact on the central bank’s operations and regulatory strength.
Nepal Oil Corporation slashes fuel prices
Nepal Oil Corporation has reduced fuel prices effective from Wednesday night. Petrol now costs Rs 2 less per liter, while diesel and kerosene dropped by Rs 1 per liter.
Domestic aviation fuel fell by Rs 4 per liter, and international aviation fuel prices for Kathmandu-bound flights declined by USD 29 per kiloliter. Prices for flights to Pokhara and Bhairahawa remain at break-even, while LPG prices are unchanged.
Traders oppose mandatory MRP labeling on consumer goods
Retailers have voiced concerns over the mandatory MRP labeling rule that took effect on Chaitra 20. They argue that fixed pricing complicates operations, especially due to fluctuating transport costs and seasonal price variations.
A business delegation met with the Minister for Industry, Commerce and Supplies to request reconsideration. The Consumer Protection Act, 2075 mandates six key details, including MRP, batch number, and manufacturing date, even for imported items.
Nepal Oil Corporation stalls depot relocation in Sudurpaschim
Plans to move Nepal Oil Corporation’s Dhangadhi depot to Godawari Municipality have stalled. Although a technical study was completed and potential sites were evaluated, no decision has been finalized. Earlier, officials had announced a relocation to Kailali district, but the project remains on hold pending further government direction.
Record progress achieved on Narayanghat–Butwal road in past month
The Narayanghat–Butwal road project made its highest monthly progress in April 2025, reaching 3.63% physical completion. This surpasses the 3.26% target and marks the project’s best performance so far. With 82% of the road paved, the total project completion now stands at 64%. Nighttime traffic restrictions are helping speed up construction.
NIMB Stock Markets Ltd launches new trade management system
NIMB Stock Markets Ltd has rolled out a new Trade Management System from Baisakh 14, aiming to make stock trading more efficient and secure. The system supports real-time order placement, mobile access, and portfolio tracking, marking a major step toward the digitalization of Nepal’s capital markets.
Chimkhola hydropower plant in Myagdi set to begin trial production
The 37.5 MW Chimkhola–Mangale–Rahughat hydropower project in Raghu Ganga Rural Municipality, promoted by Tudi Power Company Ltd, is nearly complete. Engineer Prakash Timilsina confirmed that trial production will start within 15 days. A 14 km 220 kV transmission line has already been installed to connect to the national grid.
Blacktopping begins at Majhgaun Airport in Kanchanpur
Blacktopping has started at the under-construction Majhgaun Airport in Bhimdatta Municipality-16, Kanchanpur. The contractor, Anmol Construction and Kanchharam Kumar Shrestha JV, began work from the apron area, which will extend to the runway after aircraft parking areas are completed.
Soti drinking water project in Myagdi’s Pahadi region abandoned for four years
The Soti Lifting Drinking Water Project in Bihadi Rural Municipality has remained unfinished for four years. Despite a Rs 40 million budget from the Gandaki Province Government and a two-year timeline, the project has yet to be completed. Around 300 households continue to depend on distant, drying water sources, especially after the seasonal springs dried up in Chaitra.
Baitadi contractor delays eight projects for five years
A contractor in Baitadi, who won eight projects during fiscal year 2076/77 by bidding below estimated costs, has failed to complete them even after five years. Though contracts worth Rs 1.14 billion were awarded (against an estimate of Rs 1.49 billion), delays have led to Rs 57.1 million in price adjustments and Rs 46.5 million in variation costs. No action has been taken so far.
Nepal observes 136th International Workers’ Day amid persistent labor rights issues
Nepal joined global celebrations of International Workers’ Day on May 1, commemorating the 1886 labor movement in Chicago that demanded an eight-hour workday.
Though events highlight workers’ demands such as fair wages, social security, and career development, Nepal has seen minimal progress in actual labor rights. The annual observance serves as a reminder of these long-standing issues.
Comment