KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The fiscal year 2082/83 budget has signaled a progressive shift in Nepal’s economic and governance landscape, with key reforms aimed at liberalizing investment flows, empowering provincial development, and enhancing youth employment.
Notably, the government’s decision to allow Non-Resident Nepalis (NRNs) to trade in the secondary stock market and permit Nepali investors to invest abroad has been hailed as a historic step toward market diversification and global integration, despite concerns over foreign exchange sustainability.
Simultaneously, provincial governments like Karnali and Gandaki have introduced socially and structurally ambitious policy agendas, while initiatives like Kathmandu’s Skill Fair target growing youth unemployment.
The rising burden of domestic and foreign debt servicing underscores fiscal pressure, even as infrastructure investments, such as PM Oli’s launch of 64 road projects in Madhes, aim to spur regional connectivity.
Collectively, these developments reflect a budget that blends economic ambition with structural decentralization amidst underlying financial challenges.
NRNs to be allowed in Nepal’s stock market: Experts call it a welcome move
The government’s budget for the upcoming fiscal year 2082/83 has proposed a provision to allow Non-Resident Nepalis (NRNs) to trade in the secondary stock market. If implemented, NRNs will be able to invest directly in the Nepal Stock Exchange (NEPSE).
Many developing countries, like Nepal, have been cautious about opening their capital markets to foreign investors. Given Nepal’s small economy, limited sustainable income sources, and dependency on remittances, concerns have been raised about the potential risks of allowing foreign investors to repatriate profits in foreign currency.
Nevertheless, experts believe that with proper regulations, NRN participation could help diversify the market and bring much-needed liquidity.
The budget outlines that investments in equity, bonds, and other securities tied to nationally prioritized industries will be encouraged. Specifically, it states that “arrangements will be made to allow non-resident Nepalis to trade in the secondary market.”
Karnali Province announces bold slogan: ‘Residence in the village, future in one’s own place’
The Karnali provincial government has unveiled its policy and program for fiscal year 2082/83 (2025/26) with the slogan: “Socialism-oriented system with social, economic, physical and human development: good governance, social justice, and prosperous Karnali.”
In a session of the provincial assembly, Chief Minister Nazir Miyan presented the government’s vision aimed at creating employment, reducing poverty, and ensuring long-term prosperity and happiness for the people of Karnali.
Gandaki Province brings a new slogan to an old policy framework
Gandaki Province has announced its policy and program for the upcoming year, mixing familiar plans with fresh slogans.
Presenting the policy, Provincial Chief Dilliraj Bhatta emphasized the government’s intention to reform its structure based on recommendations from the Administrative Restructuring and Position Review Committee. The reform considers administrative experience, internal revenue capacity, and the broader national and global context.
The province, which just suspended ride-sharing regulations on federal instructions, has pledged to improve ride-sharing services. It also plans to transfer responsibilities of the now-dissolved Science and Technology Academy to Gandaki University.
Youth participation rises in Kathmandu Metropolitan’s Skill Fair
The second edition of the Skill Fair 2082 (2025), organized by Kathmandu Metropolitan City at Tundikhel, has seen strong youth participation, including youth with disabilities. The fair aims to equip around 2,082 participants with practical skills and motivate them toward self-employment, addressing the country’s growing youth unemployment.
Government to pay over Rs 15.57 billion in interest to foreign lenders
In the fiscal year 2082/83 (2025/26), the Nepal government will pay Rs 15.57 billion in interest to 12 foreign lenders — both bilateral and multilateral. Out of this, Rs 11.71 billion will go to eight multilateral institutions and Rs 3.86 billion to four bilateral partners.
This information is based on the Integrated Expenditure and Fiscal Budget Estimates prepared by the Ministry of Finance. The rising cost of foreign debt servicing is expected to strain the Federal Consolidated Fund.
Additionally, the government will pay Rs 92.96 billion in interest for domestic debt — nearly six times more than its foreign debt interest obligations.
Why are Nepali businessmen excited about investing abroad?
Private sector representatives have expressed enthusiasm over the government’s recent budget announcement allowing Nepalis to invest abroad.
Reacting to the budget, many described the move as “historic” and welcomed the new investment opportunity. While the budget addresses several private sector issues, this specific provision allowing foreign investment has garnered the most attention and praise.
It is believed that leaders from various business umbrella organizations have lauded the budget primarily because of this reform, which they see as a step toward global economic integration and investment diversification.
Kiran Pandit appointed spokesperson of Nepal Rastra Bank
Nepal Rastra Bank has appointed Executive Director Kiran Pandit as its new spokesperson. A special-category officer, Pandit began his career at the central bank in 2062 BS and is currently serving in the Payment Systems Department.
Over the years, he has also worked in the Supervision Department, the Bank and Financial Institutions Regulation Department, and the Financial Inclusion and Customer Protection Division.
The central bank made the announcement on Thursday, recognizing Pandit’s extensive experience in regulatory and operational roles.
Nabil Bank: From handwritten records to digital banking
There was a time in Nepal’s banking sector when transactions were slow, entirely paper-based, and limited to branch visits. Signatures took an entire day to verify, and the market was dominated by a handful of state-owned banks like Nepal Bank Limited, Nepal Banijya Bank, and Krishi Bikas Bank.
Then came 1984, a turning point. With private and foreign investment, Nepal Arab Bank—now known as Nabil Bank—was established. Starting operations in a modest building, the bank gradually introduced modern banking systems, eventually driving the shift from manual records to digital services.
Today, Nabil Bank stands as a pioneer of the banking revolution in Nepal, ushering in efficiency, competition, and customer-centric innovation in the financial sector.
PM Oli lays foundation stone for 64 major road projects in Madhes Province
Prime Minister KP Sharma Oli has digitally inaugurated the foundation stone for 64 major paved road projects under the Madhes Province Government.
At a special ceremony organized by the Ministry of Physical Infrastructure Development in Janakpurdham, the Prime Minister launched the ambitious initiative using digital technology.
This historic event marks the beginning of the expansion and upgrading of key road infrastructure in the province. The projects will cover 320 kilometers of paved roads, with each of the 64 provincial constituencies across eight districts set to receive five kilometers of improved road connectivity.
The Madhes government hailed the occasion as a proud milestone in its development journey and extended gratitude to Prime Minister Oli for his support.
Comment