KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic landscape reflects a mix of fiscal strain, policy interventions, and sectoral resilience. The sharp fall in the NEPSE index and reduced market turnover indicate declining investor confidence, while rising gold and silver prices hint at a shift toward safer assets.
Nepal Rastra Bank is actively managing excess liquidity and financial risk, both through large-scale deposit absorption and new capital requirements for high-risk banks. Meanwhile, the country’s widening trade deficit and underwhelming capital expenditure by Kathmandu Metropolitan City highlight persistent structural inefficiencies.
On a more positive note, tourism is recovering post-pandemic, tea exports are increasing, and major infrastructure and energy projects—such as the Narayangadh-Butwal road and Bajhang Upper Seti Hydropower—are advancing with renewed financial backing.
However, the insurance and labor sectors show regulatory and social challenges, with major claims following natural disasters and a concerning number of migrant worker deaths.
These developments underscore the need for stronger policy implementation, better fiscal discipline, and continued investment in productive sectors.
NEPSE drops by 63.73 points, ends at 2,858 on Sunday
Nepal’s stock market opened the week with a significant decline on Sunday, as the NEPSE index fell by 63.73 points to close at 2,858. In the final 15 minutes of trading, the index dipped as low as 2,857, marking the day’s lowest point due to the lack of weighted average price calculation. Market turnover also declined from Rs 15.98 billion in the previous session to Rs 13.07 billion.
Gold and silver prices rise in domestic market
Gold and silver prices rose significantly in Nepal on Sunday. Hallmark gold surged by Rs 3,400 per tola to reach Rs 196,500, up from Rs 193,100 last Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also increased to Rs 2,250 per tola, compared to Rs 2,235 last Friday.
NRB to absorb Rs 50 billion to manage excess liquidity
With liquidity levels in banks remaining high, Nepal Rastra Bank (NRB) has announced it will absorb Rs 50 billion through deposit auctions this Sunday. The central bank aims to manage liquidity and control interest rates using deposit collection tools and its standing deposit facility, as total deposits have exceeded Rs 7.2 trillion.
Nepal posts Rs 1.527 trillion trade deficit in FY 2024/25
Nepal’s trade deficit reached Rs 1.527 trillion in the 2024/25 fiscal year, according to the Department of Customs. The country imported goods worth Rs 1.804 trillion while exports stood at just Rs 277.03 billion. Of the 163 countries Nepal traded with, only 37 had a trade surplus with Nepal, reflecting a growing imbalance in trade with most partners.
Finance Ministry holds talks on budget execution
The Ministry of Finance has started cross-ministry consultations on the execution of the 2025/26 fiscal budget. In a meeting with the Ministry of Industry, Commerce, and Supplies, officials also discussed moving forward with the Bhagat Sarvajit Entrepreneurship Development Program. This initiative aims to safeguard traditional skills of the Dalit community by providing modern technology, training, and market access to create jobs and income.
Government banks face high operational risk, NRB report reveals
An analysis by Nepal Rastra Bank shows that government-owned banks face increased operational risks based on third-quarter data for FY 2024/25. Privately owned banks operating at a loss were also found to be at higher risk. Consequently, NRB has directed NIC Asia, Kumari, and Prabhu Bank to allocate an additional 4% capital against risk-weighted assets and apply a 3% capital charge for operational risks.
IPPAN urges removal of dual ISINs for demat shares
The Independent Power Producers’ Association, Nepal (IPPAN) has called on regulators to eliminate the practice of assigning separate International Securities Identification Numbers (ISINs) for promoter and public shareholders when shares are dematerialized. After CDS and Clearing Limited (CDSC) proposed this system to SEBON, IPPAN has appealed to the Finance Minister, SEBON, Parliament’s Finance Committee, and CDSC to reconsider and scrap the provision.
Government reduces SEZ land lease by 75 percent
The government has slashed land lease rates in Special Economic Zones (SEZs) by 75 percent, effective from July 17 of the current fiscal year. The rate was cut from Rs 20 to Rs 5 per square meter following appeals from industrialists and recommendations from the SEZ Authority. The revised rates apply to SEZs in Simara, Bhairahawa, and Panchkhal.
NRB drafts regulatory sandbox to support fintech innovation
Nepal Rastra Bank is preparing to launch a ‘regulatory sandbox’ to support innovation in the fintech sector under a controlled framework. The Payment Systems Department has released draft guidelines aimed at ensuring safe testing of emerging digital technologies while improving access, functionality, and reliability in financial services.
Over 1,500 Nepali migrant workers died abroad in FY 2024/25
According to the Foreign Employment Board, 1,517 Nepali migrant workers with labor permits died in foreign countries during the fiscal year 2024/25. This figure is based on claims for financial aid received by their families. The actual number is believed to be higher, as it doesn’t include workers whose contracts had expired or those who went abroad without permits.
Nepal welcomes nearly 648,000 tourists in first seven months of 2025
Between January and July 2025, Nepal received 647,882 international visitors—the highest number since the pandemic. July alone saw 70,193 tourist arrivals, reflecting an 8.7% increase year-over-year. Nepal Tourism Board CEO Deepak Raj Joshi noted the country’s tourism industry is recovering and regaining global interest.
Nepal exports tea worth Rs 4.58 billion in FY 2024/25
Nepal exported 155.98 million kilograms of tea valued at Rs 4.5869 billion during fiscal year 2024/25, according to the Department of Customs. This marks an increase from the previous fiscal year, when 139.16 million kilograms were exported for Rs 3.62 billion.
Four insurers breach rules on migrant workers’ term insurance
Four life insurance companies have violated regulations regarding the distribution of foreign employment term life insurance. The Nepal Insurance Authority had instructed insurers to operate under a shared pool model and distribute the business equitably starting from July 16, 2024. However, these companies have refused to comply with the directive issued last Bhadra.
Final one-year extension granted for Narayangadh-Butwal road project
The deadline for completing the Narayangadh-Butwal road expansion has been extended by one final year, setting the new completion target for July 24, 2026. Project officials stated that 70% of the construction is currently completed and assured that the remaining work will be finished within the revised timeframe.
Insurance claims top Rs 840 million after Bhotekoshi flood
Following the July 8 flood in the Bhotekoshi River in Rasuwa, insurance claims totaling Rs 848.4 million have been filed for property and vehicle damages, according to the Insurance Board. Himalayan Everest Insurance alone received claims worth Rs 550 million, representing about 64.82% of the total.
Kathmandu Metropolitan City spent Rs 13.03 billion in FY 2024/25
Kathmandu Metropolitan City reported expenditures of Rs 13.03 billion in the fiscal year 2024/25—just over 52% of its Rs 25.86 billion budget. The city spent Rs 6.739 billion on capital projects and Rs 6.629 billion on recurrent expenses.
Financial agreement signed for Bajhang Upper Seti hydropower project
A financing agreement has been finalized for the 216 MW Bajhang Upper Seti Hydropower Project in Sudurpaschim Province. Kumari Bank is leading the loan investment, with NMB Bank as co-lead. Participating financial institutions include Machhapuchhre Bank, HIDCL, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Development Bank, Shangri-La Development Bank, Kamana Sewa Development Bank, and ICFC Finance.
Kalika Refinery logs Rs 3.41 billion in transactions over 10 months
Kalika Refinery Pvt. Ltd. recorded Rs 3.414 billion in transactions over the first 10 months of the previous fiscal year. This marks a continued rise from past years: Rs 2.092 billion in 2024, Rs 2.612 billion in 2023, Rs 2.811 billion in 2022, and Rs 440 million in 2021.
NIC Asia Mutual Fund announces dividends for four schemes
NIC Asia Mutual Fund has declared dividends for four investment schemes. The NIC Asia Flexi Cap Fund will offer a 10.10% dividend. The Balanced Fund will distribute 9.90%, the Select 30 Index Fund will give 8.65%, and the open-end Dynamic Debt Fund will provide a 5.55% cash dividend.
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