KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic landscape reflects a mixed outlook, marked by financial market volatility, regulatory tightening, and emerging opportunities. The NEPSE index’s decline and decreased trading volume signal weakened investor confidence, contrasting sharply with record highs in gold prices and the U.S. dollar, suggesting capital is shifting to safer assets amid global and domestic uncertainties.
Meanwhile, the government is intensifying efforts to boost revenue collection and tackle regulatory gaps—evident in measures such as aggressive tax recovery drives, digitization of foreign employment ads, and proposed ISIN reforms. Infrastructure and energy sectors show promise, with major milestones like the Budhi Gandaki project’s financial closure and expanding VoLTE services.
However, systemic inefficiencies—including fertilizer distribution delays, labor dependency in industrial zones, and staff reshuffles disrupting services—highlight persistent governance challenges. Together, these trends underscore a transitional phase for Nepal’s economy, balancing structural reform and investment growth against institutional and market vulnerabilities.
NEPSE index falls by 41.35 points, closes at 2,834
Nepal’s stock market experienced a decline of 41.35 points on Tuesday, bringing the NEPSE Index down to 2,834. Although the index briefly climbed to 2,905 in the first 12 minutes of trading, it gradually dropped and remained negative throughout the session. Trading volume also saw a decrease, with daily turnover slipping from Rs 10.82 billion on the previous day to Rs 9.33 billion. Out of all listed companies, 46 registered gains while 204 saw their share prices drop.
Gold price reaches new all-time high
The price of hallmark gold has hit a record high of Rs 198,500 per tola (11.66 grams) as of Tuesday, rising Rs 1,900 from the previous day. According to the Federation of Nepal Gold and Silver Dealers’ Association, silver prices have also climbed, reaching Rs 2,280 per tola. The surge reflects ongoing volatility in global precious metal markets.
U.S. dollar hits all-time high against Nepali rupee
The exchange rate of the U.S. dollar has reached a record level against the Nepali rupee. According to Nepal Rastra Bank’s official figures on Tuesday, the buying rate was set at Rs 139.96 and the selling rate at Rs 140.56 per dollar. This surge reflects a strengthening U.S. dollar, which could impact the cost of imports and cross-border financial transactions.
Finance Minister announces strong tax collection campaign
Finance Minister and Deputy Prime Minister Bishnu Prasad Paudel stated that the government will launch a vigorous drive to recover overdue taxes to help meet the current fiscal year’s revenue target. Addressing parliament, Minister Paudel mentioned that comprehensive strategies and programs are in place to boost revenue and crack down on financial crimes, including money laundering.
Loan recycling persists despite NRB’s guidelines on working capital
Despite the implementation of the Working Capital Loan Guidelines by Nepal Rastra Bank, financial data suggests that businesses continue to use new loans to repay existing ones. In the final week of the last fiscal year, banks and financial institutions issued an additional Rs 18.62 billion in loans. This trend, particularly common at the end of the fiscal year, has raised concerns over loan recycling practices aimed at meeting repayment targets.
Budhi Gandaki project secures Rs 52.5 billion in financing
The 341 MW Budhi Gandaki Hydropower Project has reached financial closure with Rs 52.5 billion in funding from a consortium of ten domestic banks and financial institutions. This amount covers 75% of the total project cost, with the remaining 25% to be funded through equity. This marks a major milestone for the largest hydropower initiative led by the private sector in Nepal.
Foreign job ads must now be published online
The Ministry of Labor, Employment, and Social Security has mandated that all foreign employment vacancy announcements be posted on its “Shram Sansar Employment Portal.” This new rule complements the existing requirement of publishing such ads in national newspapers and aims to centralize information for job seekers while improving oversight of overseas employment processes.
Minister highlights government’s backing for private sector in green energy
Energy Minister Dipak Khadka emphasized that the government is working to make private sector investment in sustainable energy more effective. Speaking at the 25th anniversary event of the Nepal Solar Power Producers Association in Kathmandu, Khadka praised the sector’s contribution to delivering solar power to remote communities not yet connected to the national grid.
Demat account numbers near 7 million but trading activity remains low
The number of demat accounts in Nepal is approaching the 7 million mark, with 6,965,561 accounts currently registered, according to CDS and Clearing Limited. However, only 1,248,855 of the 4.18 million trading accounts were active in the past year, suggesting that a large portion of investors are not actively participating in the market.
CDSC proposes separate ISINs for founder and public shares
CDS and Clearing Limited has proposed a new directive that would require different International Securities Identification Numbers (ISINs) for founder and public shares. The move, currently under review by the Securities Board of Nepal (SEBON), aims to curb potential misuse of founder shares. However, critics argue it diverges from international norms, where a single ISIN is standard for all types of shares in a company.
Indian workers fill skills gap in Koshi industrial zone
Industries in the Sunsari-Morang Industrial Corridor are heavily reliant on Indian labor, despite a large number of Nepali workers seeking jobs abroad. Of the 50,000-plus workers in over 600 factories, around 20,000 are skilled Indian nationals. The growing dependency highlights a shortage of skilled domestic labor in Nepal’s industrial workforce.
Dozens of foreign reinsurers operating without offices in Nepal
A total of 49 foreign reinsurance broker companies are operating in Nepal without establishing local offices, violating regulatory requirements. As per Nepal Insurance Authority rules, these firms are supposed to open branch offices within six months of registration. Yet, only five out of the 54 registered brokers have complied with the rule so far.
Government begins road upgrades to ease Kathmandu traffic
The government has initiated road expansion and improvement efforts in Kathmandu Valley to help manage traffic more efficiently. The ‘Kathmandu Valley Urban Transport Management’ project has selected New Baneshwor and Lainchaur as pilot locations for traffic flow improvements. The project is being implemented with support from the Japan International Cooperation Agency (JICA) and aims to address congestion issues in the capital.
Tourist arrivals in Karnali show strong growth
Tourist visits to Karnali Province have significantly increased, according to a recent report by Nepal Rastra Bank’s regional office in Surkhet. The data reveals an 11.09% year-on-year rise in the number of domestic and foreign visitors. Around 550,000 tourists visited Karnali over six months in the last fiscal year, compared to a smaller number during the same period a year earlier.
Former minister Tamang’s construction firm blacklisted in Karnali
Kanchharam Construction, a company owned by Nepali Congress lawmaker and former Water Resources Minister Purna Bahadur Tamang, has been blacklisted by the Infrastructure Development Directorate of Karnali Province. The firm was penalized for failing to complete road improvement works under the Urban Road (Package) 10 project in the Birendranagar area. The company repeatedly missed deadlines, ignored official correspondence, and failed to attend scheduled meetings, prompting the directorate to take disciplinary action.
Ncell introduces VoLTE international roaming, a first for Nepal
Ncell has become Nepal’s first telecom operator to roll out Voice over LTE (VoLTE) international roaming services. The new service will allow Ncell users to make high-quality voice calls and access fast data while traveling abroad. Similarly, foreign visitors to Nepal using compatible networks can enjoy seamless connectivity.
Cigarette smuggling attempt foiled at Tribhuvan airport
Customs authorities at Tribhuvan International Airport have intercepted a large-scale cigarette smuggling attempt. A significant quantity of both foreign and domestic-brand cigarettes, intended for a flight to Qatar, was seized. The contraband had already cleared airport security, raising concerns about security lapses that are now under official review.
Staff reshuffle causes delays at company registrar’s office
The Office of the Company Registrar is facing operational setbacks following the transfer of multiple staff members amid service irregularity allegations. New employees are reportedly unfamiliar with the digital systems in place, leading to a processing backlog. This has forced the office to postpone deadlines for applications related to renewal exemptions, creating inconvenience for many businesses.
Biratnagar explores benefits from new Indian airport in Purnia
An airport in Purnia, India, located just 90 kilometers from Biratnagar, is preparing to begin operations. With Biratnagar well-connected to the Indian border, tourism stakeholders in Nepal are eyeing new opportunities. Rajen Shrestha, Vice President of the Nepal Association of Tour and Travel Agents (NATTA), noted that this development could offer significant advantages for cross-border tourism and travel.
Bureaucratic delay leaves Banke farmers without fertilizer
Farmers in Banke district are facing an acute shortage of urea, as roughly 6,000 sacks of fertilizer remain undistributed. The delay stems from the Ministry of Agriculture in Lumbini Province failing to issue a quota allocation letter. Though shipments have arrived, the Salt Trading Corporation’s local office has been unable to proceed with distribution due to the missing documentation.
Twenty-four casinos receive renewed licenses
The Department of Tourism has announced that 24 casinos and mini-casinos across Nepal have successfully renewed their operating licenses for the 2025/26 fiscal year. These casinos, operating in star-rated hotels, fulfilled all regulatory obligations, including royalty payments and service fees, as required under the Casino Regulation, 2025.
Habib Bank to sell shares in Himalayan Bank to National Life
Habib Bank Limited, based in Pakistan, has agreed to divest its stake in Himalayan Bank to National Life Insurance. The share sale, priced at Rs 118.80 per unit, is currently awaiting approval from Nepal Rastra Bank. The bank had previously informed its existing shareholders of the planned transaction.
Machhapuchchhre Bank reports 93% profit growth
Machhapuchchhre Bank has posted a net profit of Rs 2.01 billion for the 2024/25 fiscal year, marking a 93% increase from the previous year’s Rs 1.04 billion. The bank credits its improved performance to strategic expansion efforts and strong financial management.
Sagar Distillery opens IPO for migrant workers
Sagar Distillery will launch an initial public offering (IPO) targeted at Nepali migrant workers starting August 13. The company will offer 145,200 shares from its total 1.45 million shares. The offering, approved by the Nepal Securities Board, will remain open until August 17, with a possible extension if needed.
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