KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Market sees mixed signals as trading volume grows despite index drop; broader concerns emerge over governance and project delays
On the final trading day of the week, Nepal’s stock market reflected investor caution as the Nepse index fell by 12.60 points, partially reversing gains from the previous day.
However, an increase in total trading volume suggests continued market participation despite uncertainty. Hydropower stocks remained volatile, with some hitting positive circuit limits, especially among companies positioning as holdings.
Meanwhile, the steady rise in gold prices contrasted with a marginal dip in silver, pointing to shifting investor preferences amid market unease.
Beyond the financial markets, unresolved structural and governance issues continued to dominate. The government awaits formal communication regarding the continuation of MCC projects, while the appointment of a new Nepal Rastra Bank governor remains deadlocked due to bureaucratic delays.
Similar inertia is visible in large-scale infrastructure projects like the Signature Bridge and the Nepal-China Industrial Park, both of which have seen little progress despite public announcements and budget commitments.
Lawmakers raised concerns over capital flight and procurement irregularities in hydropower deals, underlining weak oversight. At the same time, recent enforcement actions—such as vape seizures and revenue recovery from cement trucks—signal sporadic regulatory action amid systemic lapses.
On the business front, profit declines reported by Bottlers Nepal reflect broader economic pressure, while new ventures like Panchakanya’s bathware launch and feasibility studies for a Kathmandu-Rara bus route hint at cautious optimism in consumer and tourism sectors.
With festivals and conclaves like NRNA 2025 on the horizon, stakeholders are pushing forward despite policy stagnation, underscoring Nepal’s persistent imbalance between ambition and execution.
NEPSE index declines while trading volume climbs
On the final trading day of the week, the Nepal Stock Exchange (Nepse) index dropped by 12.60 points, closing at 2,661.08. This decline comes a day after the index had surged by 62.25 points to 2,673.
Despite the dip, Thursday saw an increase in total trading volume, reaching Rs. 11.65 billion compared to Wednesday’s Rs. 10.33 billion.
Among the traded companies, 96 recorded price increases, while 150 saw declines. Shares of Nepal Micro Insurance, Crest Micro Life Insurance, Chhyangdi Hydropower, and Om Megashree Company hit the positive circuit limit for the day.
Gold prices continue rising while silver dips
Gold prices in Nepal climbed again this week, rising by Rs. 1,700 on Wednesday and an additional Rs. 600 on Thursday, reaching Rs. 192,200 per tola. Meanwhile, silver prices fell slightly by Rs. 10, dropping to Rs. 1,955 per tola.
Nepal awaits official word on continuation of MCC projects
Although reports suggest that MCC projects will continue in four countries, including Nepal, the Nepali government has not received any official communication. Media reports said the U.S. planned to shut down all MCC projects worldwide based on a recommendation from the Department of Government Efficiency (DoGE), but exceptions were made for Nepal, Mongolia, Senegal, and Ivory Coast. However, Nepali officials have stated they have not been formally notified.
Deadlock persists over appointment of NRB Governor
The ruling coalition’s agreement on appointing Dr. Gunakar Bhatt as Nepal Rastra Bank Governor has stalled. Prime Minister KP Sharma Oli had assured Nepali Congress President Sher Bahadur Deuba of Bhatt’s appointment, promising confirmation by Thursday. However, Acting Governor Dr. Neelam Dhungana Timsina has yet to accept Bhatt’s resignation. A senior NRB official close to Timsina claimed she is deliberately withholding approval.
Share prices of hydropower firms branded as holdings rise sharply
Several listed hydropower companies promoting themselves as holding companies have seen a sharp increase in their share prices. These firms, which have stakes in other businesses, are reportedly inflating share values ahead of lock-in period expirations. This strategy has triggered unusual activity in the secondary market. Companies involved include Ngadi Group Power, Sanima Mai Hydropower, Radhi Vidyut, Butwal Power, and Arun Valley Hydropower.
Lawmakers call for action to stop capital flight
During a House of Representatives session, MP Amanlal Modi demanded an investigation into the procurement of the Jagdulla Hydropower Project in Dolpa, alleging legal violations. He also accused the project of breaching the Public Procurement Act and called on the government to take steps to curb illegal capital flight and recover money already sent abroad.
Prime Minister Oli to inaugurate NRNA Conclave 2025
Prime Minister KP Sharma Oli will inaugurate the ‘NRNA Conclave 2025’ in Kathmandu on May 14. The event, themed “Rights of NRNs, foundation of prosperity,” is organized by the Non-Resident Nepali Association (NRNA). During a meeting with an NRNA delegation, Oli expressed support for the association’s objectives and stressed the importance of keeping NRNA non-political.
Chinese-Nepali joint venture awarded Jagdulla Hydropower contract
The Civil and Hydromechanical contract for the 106 MW Jagdulla Hydropower Project in Dolpa has been awarded to the Chinese-Nepali JV of Jiangxi Construction Engineering (Group) Corporation and ANK Construction. The joint venture submitted the lowest financial bid among shortlisted companies, which included Sinohydro.
Industrial development programs remain mostly unimplemented
The government’s ambitious 17-point plan for entrepreneurship and industrial growth has seen little progress this fiscal year. Despite allocating over Rs. 13 billion in combined budgets for industrial promotion and public-private partnership programs, most initiatives remain on paper. Critics cite poor planning and lack of follow-through.
PDA for Nepal-China Friendly Industrial Park still pending after four years
Four years after the foundation for the Nepal-China Friendly Industrial Park in Damak was laid by then PM KP Oli, the Project Development Agreement (PDA) remains unsigned. Despite a Rs. 64.9 billion budget approval and MoU with a Chinese developer, meaningful progress has stalled.
Signature bridge over Narayani yet to begin construction one year on
A year after the foundation stone was laid, work on the much-publicized “Signature Bridge” over the Narayani River has not started. Inaugurated by Pushpa Kamal Dahal and Minister Raghubir Mahaseth, the project remains in the design stage, with no major construction progress reported by Bharatpur’s Division Road Office.
Police confiscate vapes worth rs. 21 million
Authorities in Barhabise and Lamosanghu seized vapes worth Rs. 21 million in early Chaitra from two cargo trucks. Earlier raids had netted over 120,000 vapes from various locations, including Imadol, Korala, Pathlaiya, and Butwal. Recent inspections led to the closure of sales points in Kathmandu.
Cargo train service to Nepal halts after single trip
The cargo train that arrived in Nepal once via the Jogbani border has not returned. Business leaders’ failure to sustain the service and current import restrictions under the Nepal-India Transit Treaty—limited to four goods—have hindered regular operation.
Cement trucks released after paying revenue evasion fines
Fourteen cement-loaded trucks detained for lacking tax invoices were released after paying Rs. 331,800 in fines to the Inland Revenue Office. The trucks were handed over to Kathmandu’s Maharajgunj office after being seized during a weekend inspection.
Bottlers Nepal reports drop in profits
Both Bottlers Nepal (Balaju) and Bottlers Nepal (Terai) saw decreased profits in the third quarter of the current fiscal year. Balaju’s net profit fell to Rs. 15.9 million from Rs. 59.8 million year-over-year, with overall revenue also declining compared to last year.
Kathmandu-Rara bus service feasibility study underway
The Tourist Bus Association of Nepal has launched a road inspection mission to evaluate the feasibility of operating bus services from Kathmandu to Rara. A team of tourism entrepreneurs set out on the journey to assess conditions and promote connectivity to Karnali’s major destination.
Sudurpaschim tourism festival to promote regional attractions
The Sudurpaschim Provincial Tourism Festival will be held in Mahendranagar from May 9 for three days. The event, organized by the Bhimdatta Tourism Development Committee, aims to showcase regional tourism destinations and attract visitors from both Nepal and India.
Panchakanya introduces new bathware brand in Dhangadhi
Panchakanya Group launched its new premium bathware brand in Dhangadhi, aiming to offer quality and affordability. At a dealer event attended by 60+ local representatives, company officials highlighted their market strategy, product features, and commitment to innovation.
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