KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic indicators present a mixed outlook, with stock market volatility underscored by an 11.32-point drop in the NEPSE index, contrasting sharply with record-breaking gold and silver prices that suggest rising investor caution. Despite this, the financial sector shows resilience, with mutual funds injecting Rs 58.96 billion into the market and deposit insurance coverage reaching Rs 1.57 trillion.
Infrastructure gains—such as 1,235 km of road blacktopping and expanding hydropower ambitions—are offset by regulatory and environmental bottlenecks, particularly with 179 energy projects stalled in protected zones. Trade disruptions continue, as over 1,500 containers remain stuck at the China border ahead of festivals, and domestic concerns rise over India’s GST cuts potentially impacting Nepali industries.
Meanwhile, local economies display strength through strong agri-exports like cardamom and citrus, and strategic initiatives like Madhesh Province’s planned investment summit and IPO launches signal a push for formal capital mobilization.
However, structural inefficiencies persist, from inactive cooperatives in Koshi to delayed Dashain travel preparations, revealing systemic coordination gaps amid broader economic momentum.
NEPSE index slumps by 11.32 points as trading week begins
The Nepal Stock Exchange (NEPSE) index on Sunday experienced a notable drop, shedding 11.32 points to close at 2,708.45. This downturn reflected a 0.41% decline from the previous trading day, alongside a total turnover of approximately NPR 440.27 million. While 79 companies managed to post gains—most prominently Himstar Hydro, which surged 9.97%, and Nepal Investment Bank’s investment plan, which climbed 5.83%—the majority of firms struggled. A significant number of stocks declined, with United Power Company registering a steep 5.12% fall, contributing to a mixed but bearish market sentiment.
Gold and silver prices hit new all-time highs
Gold prices surged again on Sunday, setting a new record at Rs 212,000 per tola—an increase of Rs 1,600 from the previous trading day’s rate of Rs 210,400. Silver also reached an all-time high, trading at Rs 2,500 per tola. The continued rise reflects growing investor interest and global market trends.
Deposit insurance coverage hits Rs 1.57 trillion
Deposit insurance for individuals’ accounts—spanning current, call, savings, and fixed deposits—now totals approximately Rs 1.57 trillion across classes ‘A’ to ‘D’ financial institutions. As of fiscal year 2023/24, 4.5795 million accounts were insured for Rs 1.43046 trillion out of a total base of 5.7136 million accounts—a testament to enhanced consumer protection within the financial sector.
Mutual funds rally with Rs 58.96 billion injection into markets
By the end of the first month of the current fiscal year, mutual funds had mobilized over Rs 58.959 billion, channeling investments into both the stock and broader money markets. The total net worth of share mutual funds reached Rs 68.96 billion, with investments in securities markets alone amounting to Rs 53.36 billion—highlighting that most of these funds are committed to listed company equity.
GST reduction in India raises alarm among Nepali border traders
With India trimming its Goods and Services Tax (GST) to just 5% and 18%, down from four previously existing slabs, Nepali entrepreneurs near the border are increasingly concerned. They fear that falling prices in India could flood into Nepal through legal and illicit means alike, potentially damaging domestic industries and curbing government revenue due to heightened smuggling across the open border.
Fourteen candidates vie for chair of Nepal Insurance Authority
Following the resignation of Sharad Ojha—removed by Cabinet on August 18 over qualification concerns—the chairperson’s position at the Nepal Insurance Authority has attracted 14 applicants. The recommendation committee had invited applications for one week starting August 29 and has now released the list of candidates.
Hydropower projects in protected areas face high stakes
The Department of Electricity Development reports that 104 hydropower projects—together valued at about 5,608 MW—are located within protected zones such as national parks, placing billions in investment at risk, as construction cannot move forward. Among these, 34 projects have applied for construction permits, and 26 have obtained survey licenses and are undergoing study. In total, 179 projects intrude upon protected and border areas, although IPPAN cites a broader figure of 237 projects, with a combined capacity of 19,736 MW, as being affected.
Dashain travel disruption looms with no advance bookings open
With Dashain only 15 days away, advance ticket bookings for long-distance passenger transport have still not begun—a departure from past years when such reservations opened at least a month in advance. Saroj Sitaula, senior vice president of the Nepal National Transport Entrepreneurs Federation, indicated that the delay coincides with expected heavy monsoon activity.
Over 1,500 containers stranded at Chinese border ahead of festivals
At the Rasuwa and Sindhupalchok borders with China, over 1,500 containers filled with fruits, clothing, electronics, and hydropower equipment remain stalled—delaying goods intended for Dashain, Tihar, and the winter season. Specifically, 400 containers packed with ready-made items and fruit are stranded in Khasa and Nyalam, according to Buddharaj Basnet, chairperson of the Sindhupalchok Chamber of Commerce and Industry.
Road infrastructure sees massive boost with 1,235 km blacktopped
The fiscal year 2024/25 marked a significant leap in road development, with 1,235.42 km of national roads blacktopped—an impressive 63.41% increase over the previous year’s 756 km. While the initial target had been 930 km (800 km two-lane and 130 km four-lane), the goal was later raised to 1,551 km.
Traditional rice varieties fade away in Bardiya region
Once celebrated as Nepal’s ‘granary,’ Bardiya is witnessing a shift toward commercial farming at the expense of traditional rice varieties like Burma, Kanjira, Suhawat, Talagandha, and Kalanamak. Although these heirloom strains were once popular for their health benefits and local consumption, farmers are increasingly adopting higher-yielding modern varieties.
Dhankuta sees cardamom exports climb over Rs 85 million
Known locally as “black gold,” cardamom exports from Dhankuta reached Rs 8,50,63,000 in fiscal year 2024/25—a rise of about 5.2 metric tons or over Rs 10.04 million compared to the previous year—highlighting significant growth in the regional spice trade.
Madhesh Province plans investment summit for January 2026
The government of Madhesh Province is moving ahead with plans to host an investment conference aimed at boosting economic development. Scheduled for mid-January 2026, preparations are already underway with consultations held in Birgunj to gather input on industrial challenges and opportunities. Notably, Madhesh currently lacks a formal investment board, and past investment events were held without proper frameworks. The government now intends to organize this conference only after establishing clear procedural guidelines.
Nearly 500 cooperatives in Koshi Province rendered inactive
In Koshi Province, a total of 487 cooperatives across various districts are currently inactive. Jhapa leads with 131 dormant cooperatives, followed by Morang (67), Sunsari (62), Ilam (47), and Udayapur and Tehrathum (26 each). Other districts reporting inactivity include Solukhumbu, Okhaldhunga, Khotang, Sankhuwasabha, Bhojpur, Dhankuta, Taplejung, and Panchthar.
Potato and orange sales top Rs 1 billion in Myagdi
Myagdi district recorded sales of over Rs 1 billion in potatoes and oranges during the fiscal year 2024/25, according to the District Agriculture Knowledge Center. The region sold 35,490 metric tons of potatoes, cultivated on 1,820 hectares of land, at a minimum rate of Rs 35 per kg, generating Rs 600 million. Orange sales brought in an additional Rs 334.6 million. Center head Sanjiv Bastola credited the surge to strong local production and favorable market conditions.
NIFRA declares 6.31% cash dividend
Nepal Infrastructure Bank Limited (NIFRA) will distribute a 6.31% cash dividend to shareholders based on its financial performance in FY 2024/25. The board, in its 170th meeting, approved a total dividend payout of Rs 1.364 billion (inclusive of taxes) from its paid-up capital of Rs 21.6 billion.
SY Panel to open IPO from September 14
SY Panel is set to launch its initial public offering (IPO) on September 14. In the first phase, shares will be available to individuals residing in areas affected by the company’s industrial activities and to Nepalis working abroad. Overseas applicants can submit their applications until September 17, while local investors have until September 28. Prabhu Capital is managing the issue. The company plans to offer 40% of its total capital—5,232,548 shares out of a total 13,081,370— to the public.
Mega Bank and women entrepreneurs federation sign partnership deal
Nepal Investment Mega Bank Limited has signed a commercial agreement with the Women Entrepreneurs Federation Nepal. The collaboration aims to foster female entrepreneurship and promote women-led enterprises across the country. The agreement was formalized by Mega Bank CEO Jyoti Prakash Pandey and Federation Chairperson Sobha Gyawali.
Muktinath Agriculture sells Rs 5.5 million worth of citrus saplings
Muktinath Agriculture Company, based in Syangja, sold Rs 5.5 million worth of citrus saplings during fiscal year 2024/25. Operating a research and nursery facility in Faparthum, Aandhikhola Rural Municipality–6, the company sold 25,000 saplings across three local citrus varieties: Syangja local, Khoko local, and Banskhar local. This marks the third consecutive year of commercial production.
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