KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent economic and market developments in Nepal reflect a mixed scenario of cautious recovery, infrastructure challenges, and strategic initiatives. While the NEPSE index fell by 6.55 points despite a late-day rebound, stable gold and silver prices suggest steady investor sentiment.
The start of direct Pokhara-Bhutan flights and collaborative efforts to boost exports to Europe highlight growing regional connectivity and trade ambitions. However, challenges persist with border closures disrupting festival trade, road blockages causing agricultural losses in Bajura, and slow progress on key infrastructure projects like the Saljhundi–Sandhikharka–Dhorpatan road due to budget constraints.
Financial governance is tightening, as seen in the confidential audit of major banks and regulatory changes in insurance investments, alongside government efforts to enhance digital payment transparency. Concerns over India’s GST reform indicate external pressures on Nepal’s economy, while local industries face closures, exemplified by Rupandehi’s rising business shutdowns.
Support to key sectors continues, with planned payments to dairy farmers and renewal of community forest plans in Bagmati Province. Together, these developments reveal an economy balancing growth opportunities with structural and regulatory challenges.
NEPSE drops as market recovers too late
On Thursday, the NEPSE index slipped 6.55 points to close at 2,719, despite a late rebound in the final 40 minutes. Earlier in the day, it had fallen to 2,703 around 2:20 PM before recovering. Intriguingly, the market was down by less than one point before the weighted-average adjustment; after calculation, the drop was around six points. Trading volume rose to Rs 514 million, up from Rs 472 million the previous day.
Gold and silver prices stable in Nepali market on Thursday
On Thursday, prices for gold and silver remained unchanged from the prior day. According to the Federation of Nepal Gold and Silver Dealers’ Association, minted gold traded at Rs 207,900 per tola, while silver held at Rs 2,480 per tola—the highest levels recorded to date.
Direct Pokhara–Bhutan charter flights to commence late September
Bhutan Airlines will operate four charter flights along the Paro–Pokhara–Paro route starting September 28. Universal Tours and Travels confirmed flights for September 28, October 2, 6, and 10 using a 126-seat aircraft. A four-night, five-day travel package is also being offered.
Full audit of 10 major banks advances—report to remain confidential
A detailed audit of 10 large commercial banks is underway, but the findings will not be made public. This follows an agreement between Nepal Rastra Bank, the IMF, and bankers who have long opposed full disclosure, fearing it would expose institutional weaknesses.
Draft payments and settlement amendment aims to improve digital transparency
The government has prepared the draft Payment and Settlement (First Amendment) Act, 2025, to resolve gaps and technical ambiguities in the existing system. The amendment proposes enhanced transparency and security measures for digital payment methods such as e-wallets.
Insurance companies need regulator approval only for subsidiary investments
Under the new “Insurance Investment Directive, 2025,” insurers must now only obtain regulatory approval from the Nepal Insurance Authority when investing in subsidiaries or other insurance firms. Investments in other sectors may proceed directly as long as they remain within prescribed limits.
India’s GST overhaul sparks concern among Nepali business community
Nepalese industrialists and traders have voiced concern over India’s recent simplification of its five-tier GST to two tiers—cutting daily-use taxes to just 5%. They warn this could lead to a spike in smuggling and disrupt trade across border checkpoints.
Dairy farmers to receive Rs 1.9 billion before Dashain
Dairy farmers will be paid almost Rs 1.9 billion before Dashain after a protest threat over Rs 3.5 billion in unpaid dues. The Ministry of Agriculture intervened, leading to a settlement and cancellation of the planned protest.
FEEN and NGCCI to collaborate to boost Nepali exports to Europe
The Federation of Export Entrepreneurs Nepal (FEEN) and the Nepal–German Chamber of Commerce and Industry (NGCCI) have signed an agreement to jointly promote exports to Europe and attract European investments.
Fertilizer imports kick off as paddy season ends
With the paddy season winding down, fertilizer imports under the 2025/26 quota have begun. Salt Trading Corporation imported 11,300 metric tons of DAP, while Agriculture Inputs Company Ltd. brought in 2,500 of the 3,000 MT contracted. These are now mostly set to serve winter crops.
Apples harvested in Bajura rotting due to blocked roads
Apple farmers in Bajura are seeing their produce rot as the Martadi–Kolti road remains closed since last June. With Bhadra harvest season ending, the fruit that cannot be transported risks spoiling in the orchards.
Nagdhunga tunnel may open for Dashain travel
The Ministry of Physical Infrastructure and Transport is reviewing plans to allow access through the Nagdhunga Tunnel during Dashain for outbound traffic from Kathmandu Valley. Trial operations are being discussed.
Border post closures disrupt pre-festival trade
Trade has been disrupted ahead of the festival season as Rasuwa and Tatopani border posts remain blocked. About 1,900 containers with ordered goods are stuck, unable to enter Nepal due to landslides and closures.
Rolpa exports 218,000 mt of agricultural produce in fy 2024/25
In fiscal year 2024/25, Rolpa exported about 218,000 metric tons of agricultural produce. Of this, agricultural goods worth Rs 30.03 million produced in the district were shipped to other areas, while 86,000 metric tons were consumed locally. The Agricultural Knowledge Center in Rolpa reported that nearly Rs 8.5 billion flowed into the district’s economy via agricultural exports last year. Rolpa’s key exports include green vegetables, followed by potatoes, fruits, millet, legumes, and other crops.
674 industries and businesses close in Rupandehi
Rupandehi witnessed the closure of 674 industries and businesses in fiscal year 2024/25—consisting of 426 industrial and 248 commercial firms. This marks an increase of 272 closures compared to the previous year, when 402 businesses shut down (354 industrial and 54 commercial) Rising NepalAarthik News English.
Bagmati Province to renew 1,800 community forest plans
Bagmati Province’s Ministry of Forests and Environment plans to renew the operational plans of 1,800 community forest user groups in fiscal year 2025/26. This initiative aims to boost revenue collection and lift legal restrictions on local use of forest products. Out of 4,500 community forests in the province, the plans for these 1,800 have already expired.
‘Saljhundi–Sandhikharka–Dhorpatan’ road progress slow due to low budget
The Saljhundi–Sandhikharka–Dhorpatan road—a crucial 197.2 km link covering five districts across two provinces—is developing slowly because of insufficient funding. The project, which began in fiscal year 2009/10, is expected to be completed in two years but faces severe delays.
Rights issue of Shiva Shree Hydropower opens
Shiva Shree Hydropower Company has launched its rights issue, offering shares in a one-to-one ratio. Investors holding shares as of July 31 are eligible to participate. The offering will remain open until September 24. The company’s current paid-up capital of Rs 1.47 billion will rise to Rs 2.95 billion post-issue.
World-class ‘xo club’ opens in Thamel
Thamel, Kathmandu, now hosts Nepal’s newest nightlife venue, the ‘XO Club,’ following an investment of approximately Rs 300 million. Pre-launch parties have already showcased a world-class experience, featuring state-of-the-art Adamson speakers tuned by Canada’s Carlos Salaberry.
Comment