KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest economic and policy developments in Nepal reflect a mix of cautious progress, persistent bottlenecks, and public discontent. While the Finance Ministry gears up for swift budget implementation and provincial committees stress priority-based planning, structural inefficiencies remain evident — from server outages at customs offices to long-delayed ethanol blending policies.
The NEPSE index’s continued decline contrasts with a surge in silver prices, signaling mixed investor sentiment. Meanwhile, the central bank is advancing digital currency preparations, and large-scale infrastructure projects like the Muktinath cable car are moving forward.
However, rising fraud in foreign employment, opposition to the hydropower ‘Take and Pay’ model, and unresolved agricultural damages highlight gaps in governance and accountability.
The opening of IPOs and mutual funds indicates growing public investment opportunities amid ongoing economic restructuring.
Finance Ministry starts internal work for new budget rollout
The Ministry of Finance has initiated internal preparations for implementing the budget for fiscal year 2082/83 (2025/26). A coordination meeting was held to align programs, policies, and financial plans into a unified implementation roadmap. Finance Minister Bishnu Paudel directed officials to begin procurement processes for programs outlined in the budget to enable swift execution once it is approved.
NEPSE index extends decline, drops 5.99 points on Thursday
The Nepse index continued its downward trend this week, falling by 5.99 points on Thursday — a 0.22% drop — to close at 2,640.96. After a slight gain of 1.60 points on Monday, the index fell by 35.73 points on Tuesday and another 11.97 points on Wednesday. On Thursday, share prices of 94 companies rose, 153 declined, and one remained unchanged. The Nepal Stock Exchange recorded trades worth Rs 7.97 billion from 77,670 transactions.
Silver price reaches all-time high, gold holds steady
On Friday, gold prices remained unchanged at Rs 193,700 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Meanwhile, silver prices surged by Rs 75 per tola, setting a new record of Rs 2,150 — the highest ever recorded. Silver had been traded at Rs 2,075 the day before. Analysts expect further increases in both gold and silver prices globally.
Nepal Rastra Bank advancing toward digital currency
Nepal Rastra Bank (NRB) is progressing toward launching a Central Bank Digital Currency (CBDC) in response to increasing internet access and digital activity. The goal is to reduce costs tied to printing and distributing physical cash. NRB had earlier published a preliminary study on Ashoj 13, 2079 (September 29, 2022), and is now conducting internal preparations for future implementation.
Mandatory bank statement rule for land deals on hold
The rule requiring buyers and sellers to submit bank statements during land transactions is unlikely to be implemented immediately. Officials at the Ministry of Land Management said the Prime Minister’s Office raised concerns about the new directive, leading to internal discussions about its revision. The Department of Land Management and Archives had issued the directive on Jestha 13, 2082 (May 27, 2025), and sent instructions to land revenue offices nationwide the next day.
Study report on second stock exchange to be made public
A report recommending the licensing of a new stock exchange will soon be released. The Securities Board of Nepal (SEBON) decided to make public the findings of a committee led by Nepal Rastra Bank board member Chintamani Shiwakoti. The committee, formed in Magh 2080 (January 2024) under the Pushpa Kamal Dahal-led government, had submitted its report in Baisakh 2081 (April 2024), suggesting both NEPSE restructuring and a new exchange license.
Government greenlights Rs 57.64 billion for Muktinath cable car
The government has approved an investment of Rs 57.64 billion for the ambitious Muktinath Cable Car project, which is set to become one of the world’s longest cable car systems. The approval was granted during the 64th meeting of the Investment Board Nepal. A negotiation committee led by the board’s CEO Sushil Gyawali was also formed to begin talks on the Project Development Agreement (PDA), according to board spokesperson Pradhumna Prasad Upadhyay.
Independent Power Producers protest ‘Take and Pay’ model
Independent power producers have publicly opposed the newly announced ‘Take and Pay’ model in the upcoming budget for run-of-river (RoR) hydro projects. IPPAN organized a protest with black banners and demanded the resignation of Energy Minister Deepak Khadka. The producers claim that neither the Minister of Energy, the Finance Minister, nor NEA’s Managing Director have taken ownership of the controversial provision.
Complaints of foreign employment fraud surge by 27%
Cases of fraud in foreign employment have risen sharply. The Department of Foreign Employment received 9,866 complaints from Shrawan to Baisakh in FY 2081/82 (2024/25) — a 27% increase compared to 7,763 in FY 2080/81 (2023/24). The number was just 3,356 in 2079/80 (2022/23). So far this fiscal year, 166 cases have gone to court, with compensation demands totaling billions of rupees.
Ethanol-petrol blending still stalled despite 20-year-old plan
Although the government proposed ethanol blending with petrol nearly two decades ago, the policy has yet to be implemented. Experts say Nepal could reduce its annual fuel import bill by around Rs 12.5 billion through ethanol use. However, the lack of clear execution and political commitment has prevented progress, even as neighboring India has already adopted the practice successfully.
Sirsiya dry port customs office to be merged with Birgunj Customs
The federal government has decided to merge the Sirsiya Dry Port Customs Office in Parsa with the Birgunj Customs Office from Shrawan 1 (July 17). Currently, both the Integrated Check Post (ICP) and dry port customs are under Birgunj Customs. Chief of the Dry Port Customs Office, Dhan Bahadur Baruwal, said the merger will be implemented after the end of the current fiscal year, as both offices have separate revenue targets until then.
Bhairahawa Customs Office hit by three-day server outage
The customs office in Bhairahawa has been experiencing a server outage for the past three days, disrupting customs clearance for Indian cargo entering Nepal. Information officer Narendra Prasad Chaudhary reported that the ASYCUDA World system used by the office has been facing frequent issues, causing delays and halting operations.
Koshi Province finance committee urges budget to focus on priority areas
The Finance Committee of the Koshi Province Assembly has recommended that the upcoming budget for fiscal year 2082/83 (2025/26) be structured around clearly defined priority areas. The committee emphasized aligning the budget with the second periodic plan and minimizing idle or unspent allocations in accordance with the Financial Procedures and Fiscal Responsibility Act and related regulations.
Karnali Province sees modest improvement in economic growth
A recent report by the National Statistics Office indicates that Karnali Province’s economic growth has slightly improved, rising from 4.61% to 4.74%. Despite this growth, Karnali remains the province with the smallest economy, with a GDP of NPR 255.59 billion, compared to the national estimate of NPR 6.107 trillion. The modest growth is seen as a hopeful sign for the economically lagging province.
100kW solar mini-grid installed in Kalikot with joint investment
A 100-kilowatt solar mini-grid has been completed in Kalikot through a joint effort by Chankheli Energy Pvt. Ltd., the Alternative Energy Promotion Centre, and Shubha Kalika Rural Municipality. Chankheli Energy invested Rs 13 million, while AEPC contributed Rs 29.2 million. According to Chankheli chairman Jajaraj Shahi, the total investment reached Rs 62.5 million, with additional infrastructure support from local authorities and other partners.
Storm damages banana farms worth Rs 40 million in Chitwan
Severe storms in Chitwan have caused extensive damage to banana farms, with estimated losses surpassing Rs 40 million. Ghananath Mahato, head of the Chitwan Banana Producers’ Association, said around 30% of banana plants on the district’s 3,000 bighas of farmland were destroyed. Mahato also noted that previous years’ damages remain uncompensated despite promises of insurance payouts.
Lumbini Dream Garden guesthouse reopens in Dubai
After a three-month closure, the ‘Lumbini Dream Garden Guesthouse and Restaurant (LLC)’ in Bur Dubai has resumed operations. First established by a Nepali entrepreneur eight years ago, the guesthouse has reopened under a new concept. Operator Rajendra Guragain, who has lived in Dubai for over 20 years, said the guesthouse now focuses more on Nepali food and cultural experience.
Prabhu Mutual Fund opens for public investment
The Prabhu Systematic Investment Scheme, promoted by Prabhu Bank, has opened for public subscription. A total of 25 million mutual fund units are available at Rs 10 per unit. According to issue manager Prabhu Capital, applications can be submitted for a minimum of 100 units and up to 3.1 million units. The earliest closing date is Jestha 27, with Ashad 6 (June 20) as the final date if the issue remains undersubscribed.
Him Star Energy IPO opens for migrant workers and locals from June 13
Him Star Power Company will begin its initial public offering (IPO) on Jestha 30 (June 13), with shares initially available to project-affected locals and Nepali migrant workers. Out of Rs 373 million in total capital, 30% has been allocated to the public. From that, 186,500 shares are earmarked for locals and 93,250 for migrant workers. According to NIC Asia Capital, interested applicants can apply for between 10 and 10,000 shares.
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