KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflects a blend of challenges and momentum. The stock market dipped slightly, with NEPSE falling nearly 20 points amid broad declines, even as notable banks and energy firms posted gains. Simultaneously, inflationary pressure was evident as gold hit a record high.
On the policy front, the government introduced a Rs 10 billion development bond and new frameworks to regulate critical payment systems, while also planning major imports like 40,000 metric tons of wheat to address food security. Infrastructure and investment news was mixed—financial closure for the 44.52 MW Sanibheri Hydropower Project signals progress, but the MCC transmission line faces persistent delays due to unresolved land issues.
Industrial activity appears promising, with large-scale investments and new IPOs like Sagar Distillery, while efforts to modernize labor migration via South Korea’s E-7 visa offer new mobility for skilled workers. Meanwhile, social protection measures like tea worker wage hikes and Dashain fair-price shops aim to ease everyday burdens.
However, institutional hurdles such as NADA’s disputed AGM and the underutilized powdered milk factory in Bagmati highlight ongoing governance and operational inefficiencies.
NEPSE falls 19.89 points, Rs 4.44 billion worth of shares traded
The Nepal Stock Exchange (NEPSE) index declined by 19.89 points to close at 2,741.97 on Tuesday, with turnover reaching Rs 4.4382 billion. Decliners dominated the market: 29 companies gained, 221 lost, and none remained flat. Himstar Energy led the gainers, rising 9.98%, while financial institutions like Global IME Bank, Rastriya Banijya Bank, and Standard Chartered Bank also saw significant advances.
Gold price hits record high in Nepal
Gold prices reached a record high of Rs 205,900 per tola in Nepal on Tuesday, up by Rs 600 from Monday’s Rs 205,300. Silver prices rose Rs 15 to Rs 2,485 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Government launches Rs 10 billion development bond
The Public Debt Management Office will issue a nine-year development bond worth Rs 10 billion on Thursday. Bidding is open to banks, financial institutions, non-bank financiers, insurance firms, and Nepali citizens, who can apply via the office’s website.
NRB unveils framework to regulate essential payment systems
The Nepal Rastra Bank has introduced a framework for identifying and regulating systemically important payment systems—those whose disruption could undermine financial stability. The mechanism classifies systems based on six criteria, and meeting any single criterion now triggers enhanced oversight.
Government to import 40,000 metric tons of wheat from India
To address local shortages, the government plans to import 40,000 metric tons of wheat from India’s National Cooperative Export Limited (NCEL). Food and flour industries were invited to submit proposals within seven days to facilitate the import.
Finance Minister Paudel meets World Bank VP to discuss economic growth and infrastructure
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel held a courtesy meeting with Johannes Zutt, World Bank Vice President for South Asia, at the Ministry of Finance. They discussed Nepal’s economic performance, urban and physical infrastructure, investment, tourism, and environmental issues. Paudel noted significant improvement in key economic indicators compared to the previous year, crediting policy, institutional, and implementation reforms.
Large industrial investments signal promise for Nepal’s economy
Between mid-July 2024 and mid-July 2025, eleven large-scale industries—each costing more than Rs 5 billion—were registered in Nepal. These developments in the industrial sector point to encouraging signs for job creation and economic expansion.
MCC project’s land acquisition yet to be completed after two years
Though the Millennium Challenge Corporation (MCC) grant project was enacted on 30 August 2023, required land acquisition for transmission lines remains incomplete. With only three years left for project completion, this delay raises serious concerns. While land has been secured for substations and roads under the MCC grant, transmission-related land remains unresolved.
Skilled Nepali youth now eligible for South Korea’s E 7 visa
Nepali workers can now apply for South Korea’s E 7 visa under a newly amended procedure, enabling skilled labor migration via the private sector. Previously, Nepalis were limited to E 9 visas under the government-to-government Employment Permit System (EPS). This change marks the end of a 19-year G2G era and opens a new legal pathway for skilled migration.
Government collects over Rs 638 million in mountaineering revenue
Nepal’s government earned Rs 638,294,979 last year in royalties from mountain climbing. At Mount Kanchenjunga alone, where 41 climbers reached the summit between March 1 and April 21, earnings totaled Rs 19,746,460.
Nepal’s carpet and garment exports to US remain robust
Nepalese carpets worth Rs 5.69 billion (314,764 square meters) and readymade garments valued at Rs 9 billion were exported to the United States last fiscal year. Approximately 200 carpet and 500 garment industries—primarily based in Kathmandu and cities like Biratnagar, Birgunj, and Butwal—are behind this strong export activity.
Tea workers’ wages increased following agreement
After nine rounds of negotiations, the Nepal Tea Producers Association and worker unions agreed to raise the minimum wage for tea workers. The agreement was signed in Bhadrapur by J.P. Sharma (on behalf of the association) and Santa Kumar Rai (representing the Nepal Tea Coffee Workers’ Union).
NADA special AGM uncertain after administrative objection
The NADA Automobiles Association of Nepal’s (NADA) special annual general meeting, scheduled for September 9, faces uncertainty. The District Administration Office has intervened, halting the meeting after NADA announced plans to transform into a federation amid unresolved conflicts over its statutes. The administration issued a letter seeking clarification within seven days on why the AGM was called without statutory compliance and requesting an explanation of the amendment disputes.
Government to open fair price shops for Dashain starting September 15
In preparation for Dashain, the government will open fair-price shops beginning September 15. The Food Management and Trading Company will manage outlets in 45 districts, while Salt Trading Corporation will oversee shops in 29 districts. In the Kathmandu Valley, 13 shops will be opened across Kathmandu, Lalitpur, and Bhaktapur.
New mountaineering fee system comes into effect
A fresh fee structure for mountaineering took effect in September under the latest Mountaineering Regulations. Foreign climbers will now pay up to USD 15,000, while Nepali climbers will pay up to Rs 150,000 for Everest expeditions. Fees vary by season and route, with the USD 15,000 rate applicable for spring ascents via the southeast route—the most commonly used path.
Financial closure reached for 44.52 MW Sanibheri hydropower project
Expert Hydro Investment Company’s 44.52 megawatt Sanibheri Hydropower Project has achieved financial closure. A consortium led by Citizens Bank will finance the project, with contributions of Rs 2.5 billion from Citizens Bank, Rs 1.5 billion from Nabil Bank, Rs 1.2 billion from Nepal Investment Mega Bank, and Rs 1 billion each from Sanima Bank and Siddhartha Bank.
First-ever apple festival to debut in Kathmandu
For the first time, apples from Karnali’s high hills will be showcased in Kathmandu to promote regional branding and give consumers direct access to local produce. The Apple Festival will run from September 5–7 at Kala Ghar, Shankhamul, from 11 a.m. to 6 p.m. Organized by Kala Ghar with support from Karnali Ghar, the event will feature more than a dozen varieties, including Delicious, Royal, Golden, Gala, and Fuji.
Bagmati’s powdered milk factory still lacks operational plan after two years
Despite an investment of around Rs 470 million and completion nearly two years ago, Bagmati Province’s powdered milk factory remains non-operational. The Province Dairy Development Board has not finalized an operating model, resulting in only trial production over the past 18 months. The facility was constructed starting in 2020 and began trial operations in November 2023.
Forest clearance delay stalls Myagdi transmission line construction
Construction of the Dandakharka–Rahughat transmission line in Myagdi is delayed due to the Division Forest Office’s failure to issue tree-felling permits. While the project is 80 percent complete, it faces a looming November 16, 2025, deadline. The Cabinet had approved using 25.62 hectares of forest land in February 2024, but the permit lag has held up progress over the area’s 3,936 trees.
Industrialist Rajendra Khetan acquires 14 percent stake in FonePay
Industrialist Rajendra Khetan will acquire a 14 percent stake in digital payments provider FonePay, as part of a 22.37 percent collective acquisition valued at around Rs 1.5 billion by him and nine other investors. The Nepal Rastra Bank has approved the proposed change in FonePay’s shareholding structure, and formal notification will follow upon completion of administrative steps.
Garima Development Bank honored as ‘best bank’
Garima Development Bank Limited received the “Best Bank” award at South Asia’s Emerging Asia Banking Conclave and Awards, held in New Delhi. The Indian Chamber of Commerce also awarded the bank for “Best AI–ML Implementation,” and Garima earned runner-up honors in the MSME category.
Sagar Distillery to launch IPO from September 10
Sagar Distillery will open its initial public offering (IPO) on September 10, offering 1,190,640 shares priced at Rs 100 each. Investors can apply for a minimum of 10 and a maximum of 10,000 shares.
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