Economic Digest: Nepal’s Business News in a Snap

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

The latest economic and business developments in Nepal reflect a mixed landscape of market caution, structural ambition, and shifting socio-economic patterns. The NEPSE index continued its decline despite isolated gains, signaling broader investor uncertainty, while record-high gold prices highlight safe-haven demand amid global volatility.

Government efforts to boost energy production and improve regulatory efficiency—such as the new food licensing system and NRB’s liquidity management—suggest a push for long-term resilience. However, subdued festival-driven consumption and rising imports, especially of apples despite local production, point to persistent gaps in domestic competitiveness.

At the same time, rising female labor migration, localized natural gas discoveries, infrastructure expansion, and regional investment appeals underscore growing economic dynamism outside traditional centers, even as challenges such as industrial policy disputes and slow market stimulation persist.

NEPSE slips amid widespread market decline

The Nepal Stock Exchange (NEPSE) index dropped by 15.64 points to close at 2,726.33 on Wednesday—marking another downturn in the week. Total trading volume reached Rs 4.72 billion, with 11.34 million shares changing hands across 326 companies. Of these, 39 saw gains while 213 witnessed declines. Himstar Energy stood out as the top performer, hitting the positive circuit and closing higher. Nearly all sectoral indices—except mutual funds and trading—finished in the red.

Gold prices hit all-time high in Nepal

The price of gold in Nepal has reached a record high of Rs 207,900 per tola, up Rs 2,000 from the previous day, due to rising global prices. According to the Federation of Nepal Gold and Silver Dealers’ Association, this is the highest rate ever recorded. Meanwhile, silver prices fell by Rs 5 per tola.

Government aims for 28,500 MW electricity generation by 2035

The government has set a bold target of producing 28,500 megawatts (MW) of electricity by 2035, according to the Energy Development Roadmap. More than 84 private-sector hydropower projects, each over 2,000 MW, are in preparation and already hold Power Purchase Agreements (PPAs). An additional 240 projects totaling 11,000 MW are pending PPAs.

NRB withdraws Rs 50 billion in call auction

Nepal Rastra Bank (NRB) withdrew Rs 50 billion from the money market on Wednesday through a call auction. Funds withdrawn—including principal and interest—are set to be repaid by September 28. Bidding occurred in slabs ranging from Rs 100 million to Rs 50 million, with only licensed financial institutions in categories A, B, and C eligible to participate.

Department launches NeFILS for food licensing online

The Department of Food Technology and Quality Control introduced the Nepal Food and Feed Industry Licensing System (NeFILS)—an online platform for registering, issuing, and renewing food industry licenses. Launched as part of a push toward e-governance, the system streamlines procedures and improves transparency and convenience for businesses.

Dashain preparations ramp up with market monitoring and livestock sales

As Dashain approaches, the Department of Commerce, Supplies and Consumer Protection has stepped up monitoring—covering 76 institutions in just three days, compared to the usual 5–10 per day. Meanwhile, the Food Management and Trading Company is accepting advance online bookings for goats, billy goats, and mountain goats, offering them to the public at below-market rates through September 30.

Prefestival economic activity remains subdued

Contrary to expectations for a festival-driven boost, economic activity remains sluggish. Letters of Credit (LCs) for festival imports haven’t increased substantially. Although small imports through drafts and telegraphic transfers (TTs) are up, customs data shows limited change—just three weeks ahead of Dashain.

Apple imports grow despite local production

Though Nepal produces apples in six Himalayan provinces, imports continue to rise. In mid-July to mid-August 2025 alone, Nepal imported 9.294 million kg of apples worth Rs 1.05 billion—sourced mainly from China and India.

Female migrant worker numbers continue to rise

The number of Nepali women traveling abroad for employment is on the rise. In fiscal year 2023/24, 80,172 women obtained work permits, and the figure climbed to 94,455 in 2024/25—reflecting sustained growth in female participation in overseas labor markets.

Reform commission recommends IPOs post-production

The High-Level Economic Reform Suggestion Commission has recommended that hydropower companies issue IPOs only after generation begins, citing concerns over locked-in investor capital in BOT schemes and uncertainty about share handling once production licenses expire.

Teaching hospital in Dang to begin limited operations in November

Sanjivani Institute of Advanced Studies and Teaching Hospital in Ghorahi, Dang is expected to launch operations this November with a 100bed capacity. Ultimate plans include expanding to a 500bed facility, but Phase 1 is set to begin with 300 beds, starting with a limited rollout.

Exports of plywood and other goods rise at Krishnanagar customs

Exports of plywood, rosin, and turpentine oil have increased significantly via the Krishnanagar customs checkpoint—one of Nepal’s ten major customs points. In the last fiscal year (mid-July 2024 to mid-July 2025), plywood exports to India reached 1.694 million cubic meters, valued at Rs. 1.14 billion. Over Rs. 750 million worth of finished cement was also exported through the same point.

Sudurpaschim CM urges industrialists to invest in province

Chief Minister Kamal Bahadur Shah of Sudurpaschim Province has called on the Confederation of Nepalese Industries (CNI) to invest in high-potential sectors in the province. In a meeting with CNI officials, he invited them to participate in an upcoming investment conference and promised to create an investment-friendly environment through legal and policy reforms.

Natural gas discovery in Dailekh sparks local interest and job demands

Jaljale, just nine kilometers from Dailekh’s district headquarters, has become a center of attention following the discovery of natural gas. Located along the Mid-Hills Highway, the area has been sealed off and is now under the protection of the Armed Police Force. Despite limited activity at the site over the past eight months, travelers often stop to take photos and videos, and local residents are eager for development to begin.

Pokhara business group opposes DDC’s new milk plant plan

The Pokhara Industry and Commerce Association has voiced opposition to the Dairy Development Corporation’s (DDC) decision to establish a new milk processing plant in Pokhara. The association’s general secretary, Shobha Gautam, stated that the decision was unexpected and has urged the DDC to reconsider its move.

Nepal promoted at tourism expo in Thailand

Nepal was showcased at the PATA Travel Mart 2025 in Thailand. The Nepal Tourism Board and PATA Nepal Chapter, with support from Nepal Airlines and 14 private tourism companies, participated in the event. The ‘Nepal Pavilion’ focused on branding Nepal as a key travel destination in Asia.

Land ownership certificates distributed to landless families in Dang

Lamahi Municipality has expedited the distribution of land ownership certificates to landless families. On June 25, certificates were handed to 23 families in Ward-3’s Kanchigaun, who had been cultivating land without official ownership. According to land department head Prakash Bhandari, over 7,800 applications have been received, including 1,332 from landless individuals.

Global IME Securities holds second AGM

Global IME Securities, a subsidiary of Global IME Bank, held its second annual general meeting. The company’s chairman, Teknath Pokhrel, outlined future plans, while CEO Surendra Raj Regmi explained the institution’s purpose. The meeting approved the annual report, auditor’s financial statements, and amendments to the company’s charter.

Prabhu Bank named Nepal’s best digital bank for SMEs

Prabhu Bank has received the “Euromoney Award for Excellence 2025” under the category of ‘Nepal’s Best Digital Bank for SMEs’. The award, presented by global financial magazine Euromoney in Singapore, recognizes Prabhu Bank’s digital innovations targeting small and medium enterprises.