KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape is marked by a mix of cautious optimism and structural challenges. The stock market experienced a notable decline amid falling trade volumes, reflecting investor uncertainty, while gold and silver prices surged, indicating a shift toward safe-haven assets.
Meanwhile, concerns are growing within key sectors: power producers oppose new restrictive contractual terms, and exporters have pressed the government for urgent reforms to boost trade. Infrastructure remains a central focus, with officials pledging more efficient budget use and prioritization of large-scale projects.
Encouraging signs include rising tourist stay durations, a modest rise in Sudurpashchim’s per capita income, and new investments such as Bhatbhateni’s garment factory. Yet, unresolved issues—from stalled hydropower projects and delays in bond market reforms to pressures on oil exports and regulatory friction in cooperatives—underscore the need for coherent policy execution and sustained economic governance.
NEPSE index drops by 11.97 points as market activity slows
The Nepal Stock Exchange (NEPSE) index on Wednesday declined by 11.97 points, closing at 2,646. The downturn was accompanied by a decrease in trading volume, which fell to NPR 5.16 billion from the previous day’s NPR 6.67 billion. Of the listed companies, 66 saw gains in share prices, 181 declined, and one remained unchanged.
Most sectoral indices fell, with the finance group seeing the biggest drop at 0.90%. Other declining sectors included banking (-0.59%), development banks (-0.71%), hotels and tourism (-0.47%), hydropower (-0.39%), investment (-0.08%), life insurance (-0.48%), microfinance (-0.82%), and non-life insurance (-0.68%).
Gold prices jump by Rs 5,400 per tola in one week
Gold prices in Nepal have surged by Rs 5,400 per tola over the past week. On Jestha 15 (May 29), gold was priced at Rs 187,800 per tola, which rose to Rs 193,200 by June 4. Just on Wednesday, the price climbed Rs 500 from the previous day’s Rs 192,700. Silver prices also increased by Rs 30 per tola, from Rs 2,045 to Rs 2,075, according to the Federation of Nepal Gold and Silver Dealers’ Association.
IPPAN urges govt to drop take-and-pay provision in power agreements
The Independent Power Producers’ Association, Nepal (IPPAN) has called on the government to scrap the take-and-pay provision in hydropower power purchase agreements included in the new budget. Submitting a memorandum to Energy Minister Deepak Khadka, IPPAN warned that such a provision could severely damage the energy sector. Minister Khadka admitted that introducing the clause after presenting a 28,500 MW power generation roadmap was a serious policy error.
Govt vows to implement infrastructure budget effectively, says finance minister Poudel
Finance Minister Bishnu Prasad Poudel affirmed the government’s commitment to ensuring the effective use of the infrastructure budget. Speaking at an event on “budget implementation in infrastructure,” hosted by the Nepal Infrastructure Journalists Society, Minister Poudel emphasized the importance of maintaining budget credibility and financial discipline. He acknowledged previous shortcomings in capital spending but expressed a firm resolve to achieve better results in the current fiscal year.
No projects under Rs 30 million in next budget, says infrastructure minister Dahal
Minister for Physical Infrastructure and Transport Devendra Dahal has stated that the upcoming budget will exclude projects costing less than Rs 30 million. Speaking at a joint discussion organized by the Nepal Infrastructure Journalists Society and the Federation of Contractors’ Associations of Nepal, he said the government aims to focus on larger projects—ideally those exceeding Rs 50 million—to facilitate more efficient and impactful budget allocation.
Exporters submit seven-point demand to PM Oli to boost trade and economy
A team of Nepali exporters led by Govinda Bahadur Ghimire, newly elected president of the Federation of Export Entrepreneurs Nepal, met with Prime Minister KP Sharma Oli on Wednesday. During the meeting at the Prime Minister’s residence in Baluwatar, the delegation presented a seven-point proposal aimed at enhancing exports, creating jobs, and increasing domestic capital.
They urged the government to effectively implement export-promoting measures included in the recent national budget and called attention to unresolved issues, requesting strong policy support for export-led growth and reduced import dependency.
Kiran Pandit named spokesperson of Nepal Rastra Bank
Executive Director Kiran Pandit has been appointed the new spokesperson of Nepal Rastra Bank. Previously head of the Payment Systems Department, Pandit will now serve in a dual role, retaining his departmental responsibilities while acting as the central bank’s spokesperson. This change follows the reassignment of former spokesperson Ramu Paudel to the Bank Supervision and Printing Departments by Governor Biswo Nath Poudel.
Both parties must present bank statements for land deals
The Department of Land Management and Archives has mandated that both buyers and sellers must submit bank statements when conducting land transactions. All land revenue offices have been instructed to follow this directive. Buyers must prove that payments were made directly into the seller’s bank account. Additionally, both parties are required to complete customer identification forms at their respective banks.
Forest Ministry receives record budget increase
The Ministry of Forests and Environment has seen a significant budget increase, the highest since Nepal’s new constitution was implemented. Minister Ain Bahadur Shahi stated that the budget allocation rose by 18.5% compared to last year. In contrast, last year’s increase was just one percent, according to ministry figures.
Imports from Bangladesh via Kakarbhitta reach Rs 4.75 billion
By the end of Baisakh in fiscal year 2081/082 (2024/25), Nepal had imported goods worth Rs 4.75 billion from Bangladesh through Kakarbhitta, while exports stood at Rs 356.3 million. According to Subash Pandey, chief of the Kakarbhitta branch of Nepal Transit and Warehousing Company Limited, the top import was raw jute, valued at Rs 1.78 billion. Other imported goods included batteries, poultry feed additives, cosmetics, hydrogen peroxide, jute yarn, electronics, medicines, potatoes, paper, glass, and various food and beverage items.
Minister Khadka seeks Uruguayan cooperation in solar and wind energy
Energy Minister Deepak Khadka has expressed interest in collaborating with Uruguay to develop Nepal’s solar and wind energy sectors. In a meeting with Uruguay’s non-resident ambassador to Nepal, Alberto A. Guani, held at the ministry in Singha Durbar, Minister Khadka praised Uruguay’s achievements in renewable energy and proposed partnerships for investment and technical cooperation.
National Cooperative Federation pushes for easing of new regulatory rules
Barely a week after new financial regulations were issued for cooperative savings and loan institutions, the National Cooperative Federation has begun lobbying to ease them. The Federation has raised concerns over nearly 18 provisions in the “regulatory standards 2082” issued by the Cooperative Regulatory Authority. Federation chairperson Om Devi Malla expressed disagreement with key provisions such as the requirement for 15% mandatory liquidity, restrictions on cooperatives with more than 15% non-performing loans, and a ban on using third-party assets as collateral.
Talks continue on trading government bonds in the secondary market
Despite repeated mentions in budget speeches, Nepal has yet to operationalize the trading of government bonds in the secondary market. The authority to do so lies with the Public Debt Management Office, which has not yet initiated the process. Finance Minister Bishnu Prasad Paudel has once again proposed enabling secondary market trading of government bonds in the upcoming fiscal year 2082/83 budget as a step toward broader financial reform.
UAE hosts 40% of Nepali migrant workers, says economic survey
According to the Economic Survey 2081/82 (2024/25) released by the Ministry of Finance, around 40 percent of Nepali migrant workers are employed in the United Arab Emirates (UAE). As of the end of Falgun this fiscal year, labor permits issued for the UAE totaled 317,063—representing 39.36% of all approvals. This marks a sharp rise from the same period last year when the UAE accounted for 28% of 285,382 labor permits. Director General of the Department of Foreign Employment, Kamal Prasad Bhattarai, said the surge is due to the revival of the UAE’s tourism industry following the Covid-19 pandemic.
Govt raises chemical fertilizer budget by Rs 870 million
For fiscal year 2082/83 (2025/26), the government has increased the chemical fertilizer budget by Rs 870 million, bringing the total to Rs 28.82 billion. The fertilizer import quota has also been raised to 600,000 metric tons, up from 550,000 metric tons allocated in the current year. Previously, Rs 27.95 billion was set aside for fertilizer procurement. The increased allocation aims to strengthen supply and ensure timely availability for farmers.
Budhiganga Hydropower Project stalls due to decades of delay and donor objections
The Budhiganga Hydropower Project has remained inactive for nearly 30 years due to state neglect, passive political leadership from Achham, and persistent interference from foreign donors. Located in Sanfebagar Municipality–10, the 20-MW project was supposed to be financed through loans from Qatar and Saudi Arabia. Project chief Surendra Ghimire stated that despite the project’s potential to reduce power outages and promote local development, progress has been blocked by multiple hurdles. The project is situated roughly 900 kilometers from Kathmandu.
Budhigandaki Hydropower Project stuck despite company formation
Although the government formed Budhigandaki Hydropower Company Limited on 17 Bhadra 2079 (September 2, 2022) to develop the 1,200-MW Budhigandaki Hydropower Project using domestic investment, the project remains at a standstill. Progress has been delayed due to unresolved disagreements over the investment model. Despite repeated discussions and proposals, no consensus has been reached, and the project continues to face uncertainty.
Nepali oil industries prepare strategy after India slashes edible oil tariffs
Nepali vegetable oil producers are strategizing to tackle the impact of India’s recent decision to cut basic customs duties on raw edible oils. India reduced tariffs on soybean, sunflower, and palm oil from 27.5% to 10%, posing a significant challenge to Nepali industries that primarily export to the Indian market. Around two dozen Nepali oil producers are currently holding discussions to address the expected difficulties caused by the sharp reduction in tariffs.
Per capita income in Sudurpashchim rises by $42, still trails national average
Sudurpashchim Province’s per capita income has increased by $42 in the current fiscal year 2081/82 (2024/25), reaching $1,153, according to the Economic Survey. Despite the rise, it remains $343 below the national average. Madhesh Province reports the lowest per capita income at $932, while Bagmati Province leads at $2,601. Other figures include Karnali ($1,089), Lumbini ($1,201), Koshi ($1,401), and Gandaki ($1,620).
Foreign tourists spending more time in Nepal
The average length of stay for foreign tourists in Nepal has increased, reaching 13.30 days in 2024, up from 13.20 days in 2023, according to the Ministry of Culture, Tourism and Civil Aviation. This is the highest average in the past three years, although it remains lower than the 2021 average of 15.50 days. The data excludes Indian tourists entering via land. In 2024, Nepal received 123,611 land-arriving tourists and 1,023,937 air-arriving tourists, totaling 1,147,548 foreign visitors.
Everest Bank introduces IBL virtual credit card service
Everest Bank Limited has launched the IBL Virtual Credit Card service starting Jestha 20, 2082 (June 3, 2025), enhancing its digital offerings. The fully digital card is accessible via the bank’s mobile app and can be used for payments such as PhonePe QR transactions. Eligible customers can receive a virtual credit limit ranging from NPR 50,000 to NPR 500,000.
Bhatbhateni group to open advanced garment factory in Bhairahawa
Bhatbhateni Group is establishing a high-tech garment factory in Bhairahawa, with the foundation stone laid on Wednesday by chairman Min Bahadur Gurung and other business leaders. COO Panu Poudel said the project reflects Bhatbhateni’s business diversification and marks a positive step in Nepal’s industrial growth. The factory is expected to generate around 1,200 jobs, employing local workers and boosting the regional economy.
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