KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic and infrastructural developments reflect a mix of cautious optimism and persistent structural challenges. The NEPSE’s slight rebound and increased gold prices signal a modest market recovery, while sectors like hydropower and insurance show profitability and growth momentum.
Government efforts to overhaul immigration policies and expand foreign employment oversight highlight a reactive approach to rising labor migration and unregulated visa practices. Meanwhile, infrastructure investments—from petroleum pipelines to major hydropower projects—suggest a long-term vision for energy independence and regional connectivity.
However, concerns over tourism decline, enforcement inconsistencies in vehicle fee policies, and weak participation in the Social Security Fund from informal sectors underscore governance and implementation gaps that could hinder broader economic stability.
NEPSE bounces back with 8.62-point gain after three-day decline
Following a three-day downward streak, the Nepal Stock Exchange (NEPSE) rebounded on Monday, posting an 8.62-point increase and closing at 2,867 points. The index had surged by nearly 16 points during the day, but a weighted average price adjustment in the final 15 minutes reduced the net gain. Last Tuesday, the index had reached a recent high of 3,002 points.
Gold price inches up in Nepali market
Hallmark gold prices rose slightly on Monday, increasing by Rs. 100 to reach Rs. 196,600 per tola, up from Sunday’s Rs. 196,500, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also experienced a modest increase.
Govt plans immigration overhaul amid rise in visit visa departures
In response to a growing number of Nepali citizens leaving the country on visit visas, the government is preparing both short- and long-term reforms to immigration policy. Mounting public and parliamentary concern over procedural gaps led to the formation of an investigative committee, which has begun its review.
Over 839,000 Nepalese secure foreign work permits in FY 2024/25
The Department of Foreign Employment reports that 839,266 Nepali citizens received labor permits for overseas jobs in fiscal year 2024/25. The majority were unskilled workers, including over 207,000 individuals with no formal training. Among them, roughly 202,000 were men, while more than 24,000 were women.
Social Security Fund enrolls over 2.4 million contributors
The contribution-based Social Security Fund (SSF) has now registered 2,418,088 contributors as of August 3, 2025. Of this, around 1.8 million are migrant workers. The formal sector accounts for 679,007 members, while only 727 belong to the informal sector and 444 are self-employed. Since its inception six years ago, the Fund has collected Rs 88.13 billion and paid out Rs 16.03 billion in claims. Despite this, participation from informal and self-employed groups remains very low.
NOC starts building second-phase petroleum pipeline to Chitwan
Nepal Oil Corporation has initiated construction on the Amlekhgunj–Lothar petroleum pipeline, part of its second-phase expansion. Work officially began last Friday near the Rapti River in Lothar. Project Chief Pradip Yadav inaugurated the site office and formally launched the construction activities.
Development banks and hydropower top investor returns
Development banking, hydropower, microfinance, and manufacturing sectors have delivered the highest returns over the past two years. However, analysts caution investors to avoid putting all their capital in one sector and instead recommend diversification to reduce risks tied to shifting market sentiment.
Finance and health ministries hold talks on budget execution
The Ministry of Finance held a discussion with the Ministry of Health and Population to address the rollout of the 2025/26 fiscal year budget. During the meeting, the health ministry proposed hiring 2,100 additional staff, including medical professionals, for federal hospitals to enhance specialized care and expand services.
Hotel occupancy plunges as tourism slows
Hotels across Nepal are experiencing a sharp drop in occupancy rates, with many reporting just 25% occupancy. Operators attribute this decline to lower tourist arrivals. While the number of hotels is rising, the influx of visitors has not kept pace. Monsoon-related travel issues and deteriorating road conditions have further impacted both domestic and foreign tourism.
CDSC to enforce separate ISINs for different share types
CDS and Clearing House (CDSC) is preparing to implement a rule requiring companies to assign separate International Securities Identification Numbers (ISINs) for founder and public shares. This provision is outlined in the draft of the ‘Securities Dematerialization Operating Guidelines, 2025,’ and applies to firms whose founding documents differentiate share categories.
Government considers mandatory quality checks for imports
The government is evaluating a proposal to enforce quality standards on all imported goods. Additionally, it is reviewing the possibility of lowering rental rates on land managed by Industrial Area Management Limited. These matters were discussed in a high-level meeting between Deputy Prime Minister and Finance Minister Bishnu Poudel and Industry Minister Damodar Bhandari.
Kulman Ghising criticizes NEA leadership over power disruptions
Former NEA Executive Director Kulman Ghising has blamed the current management of the Nepal Electricity Authority for ongoing power supply problems. During an event in Austin, Texas, as part of his ‘Ujyalo Nepal Abhiyan’ campaign, Ghising said that despite adequate power generation, poor leadership has caused inefficiencies in electricity distribution nationwide.
Rastriya Beema Company earns Rs 1.37 billion in premiums
Rastriya Beema Company Limited announced it had collected Rs 1.3792 billion in premiums during the previous fiscal year. CEO Dr. Shivahari Shrestha credited the growth to strong performance in non-life insurance, reinsurance revenue, and investment income during the company’s 12th-anniversary event.
Nepal’s cement exports maintain upward momentum
Nepal’s export of finished cement has risen for the third year in a row, reaching Rs 2.22 billion in the last fiscal year. However, clinker exports to India declined to Rs 697.3 million. In FY 2024/25, clinker exports were valued at Rs 1.88 billion, while finished cement exports stood at approximately Rs 1.97 billion.
Nepal to open first overseas tourism office in Delhi
The Nepal Tourism Board (NTB) is preparing to launch its first international office, with Delhi, India, selected as the debut location. This move is part of the NTB’s budget plan for the current fiscal year. A preliminary field assessment has already been completed in preparation for establishing the office.
Provincial authorities continue charging Indian vehicles despite federal waiver
Despite the federal government’s directive to waive route permit fees for Indian vehicles entering Nepal temporarily, some provincial administrations are reportedly still collecting the charges. These fees are being levied unofficially near the Bhairahawa Customs checkpoint, in defiance of national budget provisions.
Kailash Mansarovar pilgrimage drives spike in regional flights
The revival of Kailash Mansarovar pilgrimages for Indian travelers post-pandemic has triggered a sharp rise in air traffic between Nepalgunj and Simikot. According to the Nepalgunj airport office, daily flights have surged from an average of 10 to more than 50 due to the influx of tourists.
Construction begins on Mid-Kali Gandaki hydropower project
Work has officially begun on the 66.3-megawatt Mid-Kali Gandaki Hydropower Project, the first of its kind on the Kali Gandaki River. Located in Annapurna Rural Municipality of Myagdi, the project involves the construction of a 4,319-meter tunnel. Hydro Support Company and contractor Rasuwa-Multi JV are overseeing the work.
Mabilung Energy to issue IPO starting August 11
Mabilung Energy is launching its Initial Public Offering (IPO) on August 11. Of the 1,890,530 total shares, 1,248,904 will be made available to the general public at a face value of Rs. 100. Prior allotments were made for migrant workers, affected locals, and mutual fund investors.
Upper Chuwa Lurupya hydropower project gets expanded capacity
The planned capacity of the Upper Chuwa Lurupya Hydropower Project has been upgraded from 103 megawatts to 110.2 megawatts. The project will be built in Simkot and Kharpunath Rural Municipalities of Humla and is a collaboration between Nepal Portfolio Energy Pvt. Ltd. and Malaysia-based OHP Nepal Incorporated.
Singati Hydro Energy posts strong quarterly profit
Singati Hydro Energy recorded a net profit of Rs. 149.9 million in the fourth quarter of the last fiscal year, a substantial improvement from a Rs. 69.2 million loss during the same period the previous year. The company’s latest financial report shows a notable rebound in performance.
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