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 presents a mixed picture this week, reflecting modest progress amid structural and external challenges. The NEPSE index slipped slightly by 8.24 points to 2,622.89, while gold prices held steady and tourism surged with over 128,000 arrivals in October, signaling strong post-pandemic recovery in the sector.
Fiscal performance showed resilience, with 88% of targeted revenue collected despite disruptions from the Gen Z protests. However, agriculture faced severe losses worth around Rs 5 billion due to unseasonal rains, and major urban development projects remain stalled, exposing governance and planning gaps. Labor migration continues to rise with over 210,000 permits issued, and foreign trade through Birgunj strengthened, particularly in vehicle imports.
On the corporate front, Mahalaxmi Development Bank announced dividends, NIC Asia appointed a new CEO, and several companies such as Jagdamba Synthetic reported growth, though Neoteric Nepal’s trade fell slightly. Meanwhile, the government advanced infrastructure initiatives—inviting foreign bids to operate Nepal’s first tunnel—and sought stakeholder input on Malaysia’s foreign employment guidelines, underscoring a cautious but adaptive economic outlook.
NEPSE index dips 8.24 points to 2,622.89
The Nepal Stock Exchange (NEPSE) index fell slightly by 8.24 points on Monday, closing at 2,622.89. According to NEPSE, 12,185,388 shares of 333 companies were traded through 54,892 transactions, totaling Rs 6.05 billion in turnover. Among the sub-indices, Development Banks gained 1.11%, Hotels and Tourism 0.01%, Manufacturing and Processing 0.25%, Mutual Funds 0.29%, Trading 0.93%, and Others 0.42%.
Gold price remains unchanged in domestic market
The price of gold in the Nepali market remained stable on Monday at Rs 239,700 per tola, the same as Sunday’s rate. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold per 10 grams stood at Rs 205,504, while silver was priced at Rs 3,060 per tola.
Over 128,000 tourists visit Nepal in October
Nepal welcomed 128,443 foreign tourists in October 2025, a peak month for tourism. According to the Nepal Tourism Board, arrivals included 29,060 from South Asia, 23,127 from other Asian countries, 40,500 from Europe, 6,814 from Oceania, 16,407 from America, 3,548 from the Middle East, 443 from Africa, and 8,444 from other regions.
Revenue collection reaches 88% of target between mid-September and mid-October
The Ministry of Finance reported that revenue collection between mid-September and mid-October reached 88% of the monthly target. Of the Rs 100.03 billion target, Rs 91.51 billion was collected. Despite disruptions caused by the Gen Z movement, including damaged customs offices and social unrest, officials noted that the trend in revenue collection remained positive. Previously, only 68% and 77% of targets had been achieved in the first two months of the fiscal year.
Agriculture suffers heavy losses from rain and floods
Unseasonal rain and landslides this year have caused extensive agricultural damage, particularly during the monsoon and harvest periods. The Ministry of Agriculture and Livestock Development estimated total losses of around Rs 5 billion, with Rs 3.5 billion in damages recorded between mid-September and mid-October alone. Preliminary data show losses across three provinces totaling approximately Rs 3.55 billion.
Labor ministry seeks feedback on Malaysia’s 10-point guidelines
The Ministry of Labor, Employment, and Social Security has sought input from manpower agencies regarding Malaysia’s newly issued 10-point operational guidelines. A letter sent to the Nepal Association of Foreign Employment Agencies requested their official response. Malaysia’s Ministry of Foreign Affairs has asked for a list of companies from Nepal and four other countries that meet the standards outlined in the guidelines.
Most urban development projects remain stalled
A majority of projects under the Ministry of Urban Development have been put on hold. The government has frozen budgets for 2,100 small-scale projects worth Rs 61.76 billion—ranging from Rs 100,000 to Rs 30 million—due to poor preparation and their exclusion from the Project Bank. According to ministry officials, many of these halted projects were added later under external pressure without proper groundwork.
Labor permits for foreign employment increase
The number of labor permits issued for foreign employment rose notably in the first quarter of the fiscal year 2025/26. Data from the Department of Foreign Employment shows that 210,516 individuals obtained permits and departed for overseas jobs—an increase of 39,913 compared to 170,603 during the same period last year.
Passport Department to issue 1,000 passports daily
The Department of Passports has announced that it will issue up to 1,000 passports per day, excluding public holidays, starting this evening. The department recently signed a procurement agreement with a new supplier for electronic passports in July, and new systems are being developed to begin full operations by February 13 next year.
Foreign company to operate Sisnekhola–Nagdhunga tunnel
Nepal’s first modern tunnel, the Sisnekhola–Nagdhunga Tunnel, will be operated by a foreign company. The Department of Roads’ Nagdhunga Tunnel Construction Project invited international bids on Sunday, with submissions open until December 17. The selected operator will manage the tunnel for the first five years. This marks Nepal’s first experience outsourcing tunnel operations to an international firm.
Cement prices rise across the country
Cement manufacturers have raised prices with the onset of the construction season. Over a dozen companies have increased prices by Rs 20 per bag for both OPC and PPC cement. Brands such as Shivam, Makwanpur, United, Hongshi, and CG Cement have already implemented the hike, while others—including Riddhi Siddhi, Hwasin, Tansen, Sarvottam, Jagdamba, Goenka, and Ambe Cement—are expected to follow suit soon.
Vehicle imports through Birgunj rise in first quarter
In the first three months of the current fiscal year, vehicles worth Rs 8.70 billion were imported via the Birgunj Customs Office, generating Rs 7.77 billion in revenue. Both import volume and revenue have risen compared to the same period last year, when vehicles worth Rs 6.19 billion were imported.
Madhesh province spends only 3.5% of budget in first quarter
The Madhesh provincial government has utilized only 3.5% of its Rs 46.9 billion budget in the first quarter of the current fiscal year. According to the Provincial Comptroller Office, just Rs 164 million has been spent so far, with Rs 16 billion allocated for recurrent and Rs 30 billion for capital expenditure.
Gandaki government signs road contracts worth millions
The Gandaki provincial government has signed several major road construction contracts, including Rs 360.05 million for the Ambukhaireni–Chhimekeshwari section, Rs 250.99 million for the Dulegawnda–Harkpur road, and Rs 200.37 million for the Bhanumarga–Chandrawati–Pilimarga–Kunchha–Kalimati route. However, progress remains slow, with seven projects in Tanahun district alone facing delays despite contracts being awarded long ago.
Neoteric Nepal trade declines by 4.5%
Golcha Group’s Neoteric Nepal reported a 4.5% drop in trade compared to last year. The company’s trade volume fell from Rs 3.66 billion in 2024 to Rs 3.495 billion in 2025. In 2023, it had recorded Rs 3.583 billion in trade.
Rajan Bikram Thapa appointed head of NRB governor’s office
Nepal Rastra Bank has appointed Rajan Bikram Thapa as the new head of the Governor’s Office. Previously serving as a director, Thapa was promoted to Executive Director through internal competition under Regulation 52 of the Nepal Rastra Bank Employee Service Regulations (Third Amendment).
Airbus promotes safety awareness in helicopter operations
Airbus Helicopters organized a discussion program in Nepal to raise awareness about safety and best practices in helicopter operations. Over 100 aviation professionals, operators, regulators, and safety experts participated, focusing on accident prevention and data-based safety systems. The event was jointly inaugurated by French Ambassador to Nepal Virginie Corteval and Civil Aviation Authority of Nepal (CAAN) Director General Pradeep Adhikari.
Jagdamba Synthetic posts Rs 2 billion in annual trade
Jagdamba Synthetic Pvt. Ltd. recorded Rs 2 billion in trade in the last fiscal year, up 19% from Rs 1.68 billion in 2024. The company reported a net profit of 5% after failing to generate profit the previous year. In 2023, its trade totaled Rs 1.70 billion.
Mahalaxmi Development Bank declares 10.37% dividend
Mahalaxmi Development Bank has announced a 10.37% dividend for shareholders following a board meeting held on Monday morning. The total dividend amounts to Rs 445.5 million, including a 5.37% cash dividend (tax included).
Sujit Kumar Shakya appointed CEO of NIC Asia Bank
NIC Asia Bank has appointed Sujit Kumar Shakya as its new Chief Executive Officer for a four-year term. The bank’s board of directors finalized the decision during a meeting on Monday. Shakya, currently Senior Deputy CEO at Nabil Bank, will assume his responsibilities within 30 days. With over three decades of experience in the banking sector, he succeeds the previous leadership at NIC Asia.
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