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 currently marked by mixed signals: the stock market has suffered five consecutive days of decline, reflecting investor caution and potential macroeconomic unease, while gold prices rose modestly and silver remained stable, suggesting some hedging behavior.
At the policy level, consultations between Finance Minister Bishnu Poudel and opposition leader Sher Bahadur Deuba on budgetary discipline and the pending appointment of a new central bank governor highlight urgent fiscal and monetary concerns.
Meanwhile, traders are rushing to import electric vehicles ahead of expected tax hikes, and controversies like the Rs 10 billion Pokhara Airport corruption scandal have triggered political turmoil.
Despite setbacks, some sectors show momentum: soybean oil exports to India have surged, progress on the Kathmandu–Tarai Fast Track continues, and subsidized startup loans and dairy subsidies aim to boost grassroots economic activity.
However, social security compliance and customs revenue collections remain weak, and several infrastructure projects face delays due to administrative or environmental hurdles, underscoring the challenge of sustaining growth amid policy uncertainty and governance issues.
NEPSE index declines for fifth consecutive day
Nepal’s stock market continued its losing streak on Monday, marking five straight days of decline. The Nepal Stock Exchange (NEPSE) index dropped by 9.62 points to close at 2,610.76.
On Sunday, it had already fallen by 3.44 points. In the previous week, the index had dropped sharply on three consecutive days—by 14.53, 15.08, and 8.14 points respectively. A slight gain of 3.58 points was seen last Sunday. The total turnover on Monday was Rs 7.63 billion, down from Rs 8.95 billion on Sunday.
Gold price rises, silver remains stable
Gold prices increased by Rs 500 per tola on Monday, reaching Rs 184,600. Silver remained unchanged at Rs 1,910 per tola, according to the Federation of Nepal Gold and Silver Dealers Association.
Finance minister meets Deuba for pre-budget consultation
Finance Minister Bishnu Prasad Poudel visited Sher Bahadur Deuba at his residence in Budhanilkantha on Monday to discuss the upcoming budget. Deuba urged the minister to adopt fiscal discipline and ensure efficient use of public resources, especially considering the country’s current economic situation.
PM Oli and Deuba discuss appointment of new NRB governor
Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba held a detailed discussion on appointing a new governor for Nepal Rastra Bank (NRB), a post that has been vacant for almost a month. They met on Sunday evening for about 90 minutes.
The position has been unfilled since Maha Prasad Adhikari retired on Chaitra 24. Before Deuba’s recent Thailand visit, there had already been a recommendation to appoint NRB Executive Director Dr. Gunakar Bhatta as the next governor.
EV imports surge ahead of possible tax increase
Expecting a rise in electric vehicle (EV) taxes in the upcoming budget, importers have rushed to bring in EVs. Northern customs points, including Tatopani and Rasuwagadhi, are now congested with incoming EV shipments. Although EVs currently benefit from lower taxes, the government has started raising rates to recover lost revenue. A similar rush was seen last fiscal year when EV taxes increased following budget announcements.
Pokhara Airport corruption report stirs controversy in committee
A parliamentary committee meeting turned contentious after receiving an investigation report on the Pokhara Regional International Airport project. The report alleges corruption of over Rs 10 billion.
Former Tourism Minister Yogesh Bhattarai questioned potential conflicts of interest within the committee and stepped down. Other lawmakers, including RSP’s Manish Jha, also called for the resignation of Prem Ale, who led the subcommittee. With both Pokhara and Lumbini airport reports under scrutiny, controversy has deepened.
Soybean oil exports to India soar 76 times
Nepal’s refined soybean oil exports to India reached Rs 6.28 billion in the first nine months of 2021/22, increasing 76-fold. Crude oil is imported, refined locally, and re-exported. While this boosts export figures, economists warn about the sustainability of such trade growth.
Fast track project reaches 39% completion
The Kathmandu–Tarai–Madhesh Expressway (Fast Track) has achieved 39.34% financial progress by the end of Chaitra, according to the Nepali Army. Including mobilization costs, overall financial expenditure has reached 41.06%. The project is divided into 13 construction packages, but land acquisition issues persist, especially in Khokana–Bungmati. Compensation distribution and traffic management plans are still under discussion.
Nepal-India electricity deal approved by energy minister
Energy Minister Deepak Khadka has endorsed a power purchase agreement signed by Kulman Ghising with Indian states Bihar and Uttar Pradesh during a bilateral meeting in New Delhi. Nepal will import electricity via a 132 KV line at Rs 8.1 per unit, up from Rs 7.98. The agreement, effective from April 1 for one year, is pending cabinet and regulatory approval.
New government policy program boosts business morale
The government’s new policy and program for fiscal year 2082/83 B.S. (2025/26), presented in parliament by President Ramchandra Paudel, has raised optimism in the private sector. The plan prioritizes economic reform, infrastructure development, and job creation. It also aims to improve the investment climate, with energy, tourism, and IT marked as focus sectors.
Ncell honored as top tax-paying ICT firm
On National Information and Communications Technology Day, Ncell was recognized as the highest taxpayer in Nepal’s ICT sector. Prime Minister Oli awarded a certificate to the company for its fiscal contributions and efforts in expanding the ICT sector. Ncell paid the most taxes in fiscal year 2020/21.
Employer registration in social security fund drops sharply
According to GEFONT, the percentage of employers registered in the Social Security Fund has dropped from 69.4% last year to 47.8% this year. Regular contribution rates also fell from 70% to 44.4%. GEFONT says 55.6% of registered businesses are not making timely deposits.
Tree cutting begins for Dodhara Chandani dry port
Tree removal has started for the construction of a dry port in Dodhara Chandani, Kanchanpur. So far, 500 out of 1,593 trees have been felled. The Rs 4.1 million contract is part of a Nepal-India bilateral project under a 2023 agreement.
Karnali dairy subsidy helps mountain farmers
The Karnali provincial government’s dairy subsidy, which deposits money directly into farmers’ bank accounts, has proved beneficial. Farmers in high-altitude areas get Rs 10 per liter, while those in other districts receive Rs 5. The program began in fiscal year 2078/79 B.S. (2021/22).
661 startups approved for subsidized loans
The government has selected 661 startups for subsidized loans at 3% interest this fiscal year. Out of 1,314 eligible applicants, 1,073 were shortlisted, and 661 passed final selection. The Industrial Enterprise Development Institute has recommended them to Rastriya Banijya Bank for loan disbursement.
Kerung trade disrupted by pass restrictions
Traders are struggling to operate through the Kerung border with China due to local-only travel pass rules. Currently, only residents of Rasuwa can obtain passes, leaving others out. Despite repeated demands, the government has not addressed the issue, making cross-border trade difficult.
Koilabas customs collects just 64% of revenue target
Koilabas Customs Office has only collected 64.35% of its annual revenue target so far. Of the NPR 163.6 million target, it has brought in around NPR 104 million. Officials blame declining trade volume for the shortfall.
Work resumes on disputed transmission line in Banke
Construction of a 132 KV transmission line has resumed in Baniyabhar, Banke under security protection. Locals had previously blocked the project and filed a court case, which was dismissed. Only three towers remain to be built, but about 200 trees and 75 landowners are affected.
Hailstorm damages apple crops in Jumla
A severe hailstorm damaged flowering apple trees across Jumla, including 1,500 saplings planted by farmer Norbu Lama in Guthichaur-3. Farmers expressed frustration over frequent losses due to weather, calling for more government support.
Slow progress on Karnali water and energy projects in Rukum and Surkhet
Out of 1,273 projects planned by Karnali’s Ministry of Water Resources and Energy, 1,016 have been contracted. However, progress is weak in Rukum West and Surkhet, with physical work completion at just 20% and 25% respectively. In Dailekh, 120 of 145 projects have been contracted.
Jhapa transport office registers nearly 10,000 vehicles
Jhapa’s Transport Office collected Rs 82.16 million in revenue and registered 9,954 new vehicles in the first nine months of fiscal year 2024/25. Most income came from vehicle taxes, with the rest from transport fees and license services.
Comment