KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and development landscape is showing signs of both momentum and transformation, as highlighted by recent events. The NEPSE index continued its bullish trend for the third consecutive day, indicating renewed investor confidence, while gold prices also spiked sharply, reflecting possible shifts in consumer sentiment amid economic uncertainty.
Policy reforms are gaining pace, with the Ministry of Finance tightening IPO regulations to enhance corporate transparency, and Nepal unveiling its first draft of a personal data protection policy to regulate its digital infrastructure.
On the aviation front, Nepal Airlines marks 67 years amid operational and financial challenges, including potential loss of its monopoly over ground handling. Meanwhile, development strides such as Humla’s long-awaited road connectivity, Palpa’s successful ginger export, Kavre’s robust dairy supply, and Sindhupalchok’s adoption of aeroponics signal progress in rural and agricultural sectors.
However, challenges like delayed rice transplantation in Mahottari and the fallout from the Dubai visa scandal, which slashed airfare, point to underlying vulnerabilities. Infrastructure projects and partnerships—such as the Koteshwor flyover plan, resumed Buddha Air flights, and multiple IPO developments—reflect ongoing efforts to balance growth with reform and resilience.
NEPSE index climbs for third straight day, crosses 2660 mark
The NEPSE index has continued its upward momentum for the third day in a row. On Tuesday, it gained 28.91 points, following earlier increases of 26 points on Sunday and 9 points on Monday. With this latest rise, the index has reached 2660 points. Trading volume also rose, with total transactions increasing from Rs 6.38 billion the previous day to Rs 7.03 billion. Of the listed companies, 217 saw share price increases, while 31 experienced declines. Most sector indices showed positive movement, with the investment group recording the highest gain at 2.38 percent.
Gold price jumps by Rs 2,400 per tola on Tuesday
The price of gold increased by Rs 2,400 per tola on Tuesday, reaching Rs 190,500 from Rs 188,100 the day before, according to the Federation of Nepal Gold and Silver Traders Association. However, this is still Rs 7,000 less than the price two weeks ago, when gold was Rs 197,500 per tola on Asar 2 (June 16). Silver prices also rose slightly, from Rs 2,150 to Rs 2,155 per tola.
Finance Ministry orders SEBON to approve IPOs only after detailed evaluation
The Ministry of Finance has directed the Securities Board of Nepal (SEBON) to approve Initial Public Offerings (IPOs) only after thoroughly evaluating the financial and managerial status of the issuing companies. This move comes nearly 18 months after the Commission for the Investigation of Abuse of Authority (CIAA) made a similar recommendation. Concerns over IPO approvals have been rising, prompting the ministry to issue a letter on June 23 instructing SEBON to ensure accurate company ratings and fair premium pricing.
Nepal unveils draft of personal data protection policy – 2025
Nepal is preparing to bring its digital data infrastructure under formal legal and policy oversight with the release of the draft ‘Personal Data Protection Policy – 2025.’ Announced on Tuesday, the policy was developed by the E-Governance Board under the Office of the Prime Minister and Council of Ministers. The draft aims to gather public input and includes several new provisions tailored to Nepal’s institutional and digital context.
Nepal Airlines marks 67 years amid financial woes and shrinking fleet
Nepal Airlines Corporation (NAC), the national carrier, has entered its 67th year of operation. It began in 1958 with a 28-seat Douglas DC-3 Dakota and now operates Airbus A330 and A320 aircraft on major international routes. While it still serves remote domestic destinations with two Twin Otter aircraft, its overall domestic presence has diminished due to a limited fleet. Additionally, the corporation is grappling with a debt burden of around Rs 50 billion, largely from loans taken to purchase wide-body aircraft, which continues to hinder its financial recovery.
Worries mount as NAC faces potential loss of ground handling services
Nepal Airlines Corporation (NAC) could lose its long-held monopoly over ground handling services for international flights. There has been growing debate and policy activity surrounding the introduction of competition in this sector. The Civil Aviation Authority of Nepal (CAAN) has repeatedly voiced support for ending NAC’s exclusive role. The government’s latest draft aviation policy includes provisions to make ground handling services competitive, which has sparked concern within NAC.
Customs Department collects Rs 440 billion from imports
The Customs Department has collected Rs 440 billion in revenue from the import of foreign goods in the current fiscal year, marking a 14% increase from last year’s Rs 386 billion. While overall internal revenue rose by 9%, customs revenue grew at a faster pace. Imports increased by 13%, with 15 key commodities contributing to more than 47% of the total customs revenue.
Dubai airfare drops sharply amid visit visa controversy
Airfare to Dubai has fallen significantly following the recent controversy surrounding the ‘Visit Visa Case.’ Accusations have emerged in Parliament against Home Minister Ramesh Lekhak, with opposition parties alleging his involvement. Though the government has set up a high-level inquiry, critics claim it lacks transparency. The fallout from the controversy, along with stricter visa policies from the UAE, has contributed to a steep decline in ticket prices to Dubai.
Birgunj checkpoint sees Rs 434.26 billion in imports over 11 months
In the first 11 months of the fiscal year, Nepal imported goods worth Rs 434.26 billion through the Birgunj customs point. According to Customs Chief Deepak Lamichhane, 76.80% of imports at this checkpoint came from India. The Birgunj checkpoint remains a vital hub for Nepal-India trade, handling the largest volume of bilateral commerce.
Koteshwor flyover and tunnel project estimated at Rs 3.9 billion
An estimated Rs 3.9 billion will be needed to construct two flyovers and a partial tunnel at Koteshwor Chowk to ease persistent traffic congestion. With financial backing from Japan, the plan is progressing under the guidance of the Japan International Cooperation Agency (JICA), which conducted a preparatory survey. The proposed tunnel will be partially underground and partially above ground, with land acquisition expected to make up a major portion of the cost.
Humla connected to national road network, ending years of isolation
Humla district has finally joined Nepal’s national road network, fulfilling a long-awaited aspiration of its residents. It was the last of Nepal’s 77 districts to be connected to the highway system, with the link completed in 2082 BS (around 2025 AD). Although the Bailey bridge over Chuwa Khola in Kharpu, Kharpunath Rural Municipality-5, is now complete, the official inauguration is scheduled for Asar 21 (July 5). Despite the lack of a formal opening, large trucks and tippers are already crossing the bridge regularly.
Kavre supplies 70% of its milk output to Kathmandu and neighboring districts
Kavre district, now self-sufficient in milk production, supplies about 70% of its output to Kathmandu and nearby areas. According to the District Livestock Service Office, the district produces roughly 149,280 metric tons of milk annually, a large portion of which is distributed outside the district.
Palpa women’s cooperative exports 14.5 tons of ginger to Germany
Galdha Social Entrepreneur Women’s Cooperative in Palpa exported 14,560 kilograms of dried, processed ginger to Germany this year. The ginger was grown and prepared by 272 farmers from Nisdi Rural Municipality-5, Galdha. According to manager Dil Maya Saru, the cooperative sold the ginger at NPR 493.90 per kilogram, generating a total revenue of NPR 7,191,184. The ginger is organically certified and processed before export.
Sindhupalchok begins seed potato production using aeroponics technology
The Potato Crop Development Center in Nigal, Sindhupalchok, has launched seed potato production using the advanced soilless method of aeroponics. This initiative was introduced during the center’s silver jubilee celebrations. Established in 1975, the center has long been producing high-quality nucleus seed potatoes and providing seeds and farming technology to growers across Nepal.
Rice planting in Mahottari delayed due to low rainfall and water shortage
In Mahottari district, rice transplantation has been delayed due to insufficient rainfall and a shortage of prepared seedlings. Out of the 71,000 hectares of cultivable land in the district, rice is typically grown on 45,000 to 50,000 hectares. However, this year’s delays in nursery preparation and water scarcity have significantly impacted planting activities, according to the Agricultural Knowledge Center.
Nepal Bank customers to get discounts on treatments at Let Me In
Nepal Bank Limited has signed an agreement with Let Me In Pvt. Ltd. to offer discounts on aesthetic treatments to its employees and account holders. Located in New Baneshwor, Let Me In provides services using Korean technology. According to the deal, customers and staff of the bank will receive discounts ranging from 8% to 15% on various treatments.
Buddha Air to resume Kolkata flights in September
Buddha Air plans to restart flights to Kolkata, India, in September. This will be the airline’s second attempt to operate on this route after suspending its services due to the COVID-19 pandemic. Spokesperson Dipendra Karna confirmed the resumption plan.
Him Star Energy to open IPO to public from July 8
Him Star Energy Company will launch its Initial Public Offering (IPO) for the general public starting Ashad 24 (July 8). The first phase of share allocation has already been completed for project-affected locals and Nepali workers abroad. NIC Asia Capital, the issue manager, announced that the application period will run until Ashad 27 (July 11).
Muktinath Capital to manage IPO process for Rising Hydropower
Muktinath Capital has signed a deal with Rising Hydropower to provide IPO issuance and institutional advisory services. The agreement was signed by Muktinath Capital CEO Kabindra Dhwaj Joshi and Rising Hydropower Chairman Shankar Bahadur Ghimire. The advisory services will support Rising Hydropower from the early stages of establishment through to public share issuance.
Three new executive members nominated to FNCCI
President Chandra Prasad Dhakal of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has nominated three business leaders as executive members: Rajkumar Neupane, Saraswati Rai, and Kamal Kumar Shrestha. Neupane is the former president of the Makwanpur Chamber of Commerce and Industry. Rai chairs the Nepal Herbs and Herbal Products Producers Association, and Shrestha is a former central executive member of FNCCI.
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