KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mix of cautious optimism and ongoing structural challenges. The NEPSE index saw moderate gains alongside high transaction volumes, reflecting investor engagement despite mixed stock performance. At the same time, gold prices rose, suggesting continued public interest in safe-haven assets.
The government made notable strides in fiscal policy by significantly broadening the tax base and pursuing foreign employment opportunities through labor agreements with European countries. However, only 46% of the development budget has been utilized, highlighting persistent inefficiencies in public spending.
While foreign aid commitments and bank loan recovery have improved—indicating external support and better liquidity—concerns remain over administrative bottlenecks, such as the lack of plant quarantine facilities and political interference in budget allocations.
Additionally, new regulatory measures for vehicle imports and financial instruments like the Swastik Microfinance IPO hint at growing formalization in both transport and capital markets. Together, these developments reflect a transitioning economy balancing growth efforts with longstanding governance and infrastructure hurdles.
NEPSE gains 9.14 points, transactions cross Rs 9.64 billion
On the final trading day of the week, the Nepal Stock Exchange (NEPSE) index rose by 9.14 points, with total transactions amounting to Rs 9.64 billion and 5.55 million shares. Among 247 listed companies, 122 saw share-price gains while 125 experienced losses. All sectoral indices except hotel and tourism, hydropower, investment, microfinance, and trading posted positive movement. Investors in Nepal Finance recorded the highest profits, while shareholders of Saptakoshi Development Bank suffered the biggest losses.
Gold price climbs to Rs. 192,100 per tola in Nepali market
The price of gold in Nepal rose by Rs. 400 to reach Rs. 192,100 per tola on Thursday, according to the Federation of Nepal Gold and Silver Traders Association. On Wednesday, the rate was Rs. 191,700 per tola. Silver prices also increased, rising from Rs. 2,145 to Rs. 2,170 per tola in a single day.
Government expands tax net significantly this year
The government has notably widened the tax base this year, adding 573,682 new taxpayers in the first nine months of fiscal year 2024/25. According to the Ministry of Finance, there are now 6,799,895 PAN holders in Nepal—covering approximately 23 percent of the nation’s population.
Nepal proposes labor agreements with 13 new European countries
The government is preparing labor agreements with 13 additional European countries to promote new destinations for Nepali workers. Minister Sharatsingh Bhandari said advisory groups have been exploiting applicants for jobs in regions like Japan and Europe. He confirmed that formal processes are underway to legally send workers abroad.
NRB Governor says access to bank loans should be a ‘natural right’
Nepal Rastra Bank Governor Dr. Biswo Nath Poudel stated that obtaining bank loans should be considered a “natural right” for every citizen. He made the comment on Thursday in response to lawmakers during scrutiny of amendments to the Bank and Financial Institution Act (BAFIA) in the HoR Finance Committee. Governor Poudel called for a fundamental debate on the banking system’s traditional definitions and practices.
Only 46 percent of development budget spent as fiscal year nears end
With the fiscal year 2024/25 drawing to a close, only 46.59 percent of the NPR 352 billion development budget had been spent by July 2—totaling just NPR 164 billion. According to the Financial Comptroller General Office, this is below last year’s 48.57 percent spending at the same time.
Foreign-aid commitment rises by 117 percent this fiscal year
Foreign-aid commitments have surged by 117.3 percent in FY 2024/25. A finance ministry bulletin reports that by the end of Chaitra, commitments totaled NPR 221 billion—up from NPR 102 billion the previous year. Loans comprise 74.3 percent of this total, with grants making up the remaining 25.7 percent.
Bank loan recovery improves in current fiscal year amid better cash flow
Banks have seen improved loan recoveries this fiscal year as borrowers’ cash flows have strengthened. The economic fallout from COVID-19 had lifted non-performing loans (NPLs) in earlier years, pushing banks to boost loan-loss provisions and cut dividends. Bankers report promising signs this year after those lean years.
Chinese Embassy requests currency exchange for excess Nepali rupees in China
The Chinese Embassy has asked Nepal Rastra Bank to facilitate currency exchange, citing an accumulation of Nepali rupees in China. An official confirmed the ambassador’s request and suggested the matter be discussed directly with the central bank, which has acknowledged receiving the request.
Vehicle importers and assemblers to face minimum requirements under new guidelines
The Department of Transport Management has finalized the Vehicle Import, Production, and Assembly Guidelines 2025. These require that vehicles imported or assembled in Nepal meet international standards, hold recognized quality certification, and that importers provide spare parts and skilled technical personnel.
India’s SJVN signs deal to sell Arun III power to Uttar Pradesh
Indian state-owned SJVN has signed a power purchase agreement with Uttar Pradesh Power Corporation Limited to sell electricity from Nepal’s under-construction Arun III hydropower plant, expected to generate 900 MW. Further details were not disclosed, according to PTI reports.
Second batch of caregiver contracts issued for Israel’s long term care centers
The Department of Foreign Employment has received contract letters for 66 caregivers selected for employment in Israel’s long term care centers, marking the second batch of contracts. As security concerns in Israel have eased, candidates are asked to report to the department on July 4 for visa processing.
Urban ministry forced to include fragmented projects under political pressure
Facing political pressure from lawmakers as the 2025/26 budget was being finalized, the Ministry of Urban Development included thousands of fragmented projects below NPR 30 million—despite a Cabinet and finance-minister directive to exclude them—from the upcoming fiscal year’s budget.
Tourist arrivals dip slightly despite peak spring season
Despite spring being the peak tourist season, international arrivals in Nepal declined slightly. In the first half of 2025, a total of 577,689 foreign visitors entered the country. According to the Nepal Tourism Board, 76,425 tourists arrived in June alone—a 0.9% drop compared to the same period in 2024, when 583,016 tourists had visited.
First helicopter to be imported via Tatopani customs point
For the first time, a helicopter is being imported through the Tatopani customs point. Mountain Helicopters Company purchased the aircraft from China. Chief Customs Officer Rajendra Prasad Chudal confirmed that the helicopter has arrived but customs clearance is still underway. “The helicopter has reached the customs yard, but clearance is pending due to ongoing procedural requirements,” he stated.
Invert construction completed at Siddhababa Tunnel
The invert construction of the 1,089-meter-long Siddhababa Tunnel has been completed, according to Engineer Sabita Gyawali from the Tunnel Project Office. Currently, 834 meters of lining work have also been finished. Situated in Tinau Rural Municipality-3 of Palpa district along the Siddhartha Highway, the national pride project has achieved 56.3% physical and 50.24% financial progress. Work has accelerated since the tunnel breakthrough milestone.
Nagdhunga–Naubise road expansion reaches 85% progress
The 12.26-kilometer road expansion project between the Nagdhunga Tunnel and Naubise has made nearly 85% physical progress, according to Madhav Paudel, information officer for the project’s eastern section. The first layer of asphalt paving is complete across the full stretch, and about half of the second layer has been laid. Officials aim to finish the second layer before the onset of monsoon rains. The third layer will be applied post-monsoon.
Traders forced to travel due to lack of plant quarantine at Madar customs
Due to the absence of plant quarantine facilities at the Madar Customs Office in Siraha, agricultural traders are being forced to travel to Biratnagar or Jaleshwar for clearance. Although the Ministry of Agriculture and Livestock Development had announced plans to establish such services in Siraha, Maheshpur, and Suthouli back in 2021, implementation has yet to begin.
Bagmati Province announces full tax amnesty for vehicle owners
The Bagmati Province government has launched a full tax amnesty scheme for vehicle owners with outstanding dues. In the upcoming fiscal year’s budget, Minister for Internal Affairs and Planning Kundan Raj Kafle announced that if owners pay taxes from the past three years, they will receive a 100% exemption on all earlier vehicle-related taxes, fees, and penalties. The policy aims to streamline tax collection and manage older vehicles more effectively.
Yak breeding center to be established in Jumla
A Chauri (yak) breeding center is being set up in Maurilek, Ward No. 1 of Guthichaur Rural Municipality, Jumla. The area’s largest yak-raising community in Chotra village will receive support to become a regional supply hub. With provincial government support, the Jumla District Veterinary Hospital and Livestock Services Office has provided 40 yaks to the Himalayan Hilsa Chauri Pocket Group. Group Chair Til Bahadur Mahatara accepted the handover, according to Chief Veterinary Officer Gyanendra Budhathapa.
Sanghai family-run firms record NPR 3.68 billion in trade
Two companies operated by the Sanghai family registered combined trade of over NPR 3.68 billion in FY 2024. Triveni Spinning Mills accounted for NPR 2.43 billion, while Triveni Dal & Oil Industries saw NPR 1.25 billion. This marks a slight increase from 2023, when the spinning mill’s trade volume was NPR 2.38 billion.
Dodhara Chandani dry port construction advances after tree clearance
Construction of the long-delayed Dodhara Chandani Dry Port in Kanchanpur has resumed following the completion of tree clearance at the site. The Nepal Intermodal Transport Development Committee confirmed that NPR 150 million was transferred to Shuklaphanta National Park for this purpose. The port is being developed under a Nepal–India agreement signed on June 1, 2023. Nepal has completed all preparatory steps within two years of the deal.
Swastik Microfinance IPO for migrant workers to open on Asar 27
Swastik Microfinance will launch its Initial Public Offering (IPO) on July 11, initially targeting Nepali migrant workers abroad. The company will issue 23,100 shares to overseas workers in the first phase. Afterward, it will offer 195,195 ordinary shares to the general public.
Ashok Steel’s trade volume falls by 46% in FY 2024
Ashok Steel Industries reported a 46% decline in trade volume in FY 2024, with business totaling NPR 3.58 billion—down from NPR 6.66 billion in 2023 and NPR 6.88 billion in 2022. The company cited market challenges for the drop.
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