KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is exhibiting a mixed performance, marked by declining investor confidence in the capital market and surging commodity prices, such as gold nearing Rs 200,000 per tola. While the NEPSE index fell by over 150 points in just eight days—accompanied by a sharp drop in trading volume—other sectors show signs of dynamism and regulatory tightening.
Nepal Rastra Bank has updated import rules, including emission standards for vehicles and payment thresholds for third-country services, signaling policy alignment with environmental and trade reforms.
Meanwhile, mutual funds and commercial banks report positive financial results, infrastructure projects are advancing across provinces, and the country has emerged as a net electricity exporter.
However, systemic issues like corruption in vehicle insurance compliance and a decline in Nepal Telecom’s broadband user base underscore governance and competitiveness challenges. Overall, the indicators point to a cautiously transitioning economy balancing structural reforms with market volatility.
NEPSE sheds 151 points in eight days after reaching four-year high
After hitting a four-year peak of 3,002.07 points on July 29, the Nepal Stock Exchange (NEPSE) index dropped to 2,850.37 points by the end of this trading week. Over the past eight trading days, the index declined on five days and rose on only two, resulting in a net loss of 151.7 points. Trading volume also fell sharply, dropping from Rs 25.96 billion on July 29 to Rs 8.33 billion on Thursday, according to NEPSE data.
Gold nears Rs 200,000 per tola as prices rise
Gold prices in Nepal climbed to Rs 199,400 per tola (11.66 grams) on Friday—up Rs 1,000 from Thursday’s price—according to the Federation of Nepal Gold and Silver Dealers’ Association. Over the past week, gold has increased by Rs 6,600 per tola. Silver also rose by Rs 10 to reach Rs 2,325 per tola. Analysts link the surge to global market uncertainty and rising investor demand.
NRB prohibits LC for four-wheelers not compliant with Euro 6 standard
Nepali banks are now barred from issuing letters of credit (LCs) for importing four-wheeled vehicles that fail to meet the Euro 6 emission standard. Nepal Rastra Bank made this change by amending the Unified Directive, 2024, aligning with the government’s Vehicle Emission Standard 2025, which mandates Euro 6 compliance for four-wheelers and Euro 5 for smaller vehicles.
NRB increases payment limit for third-country service imports
Nepal Rastra Bank (NRB) has raised the payment ceiling for importing services from countries other than India. Businesses can now make payments of up to USD 8,000 without prior approval from the central bank, as long as they submit necessary documentation. Previously, the cap was USD 5,000. Payments exceeding USD 8,000 will still require prior approval or recommendation from the relevant regulatory body.
Seventeen mutual funds announce dividends of up to 20 percent
As fiscal year 2024/25 concludes, 17 mutual fund schemes in Nepal have declared dividends, some as high as 20 percent. With each mutual fund unit priced at Rs 10, a 20 percent dividend translates to Rs 2 per unit. Funds offering 19–20 percent dividends are currently trading around Rs 11.50 per unit.
Machinery imports rise 7 percent to Rs 124 billion in FY 2024/25
Nepal imported machinery and spare parts worth Rs 124 billion in fiscal year 2024/25, up 7 percent from Rs 109 billion in the previous year. Imports of electrical equipment reached Rs 7.387 billion, up 4 percent from Rs 6.99 billion the previous year. Additionally, telecommunications and related equipment imports totaled Rs 43.08 billion.
Nepal Telecom loses 7.67 million broadband users in one year
Nepal Telecom (NTC) lost 7.67 million mobile broadband users in the last fiscal year, reducing its market share from 71.85% to 55.68%, according to the Nepal Telecommunications Authority. In contrast, Ncell gained 2.96 million users, increasing its share from 28.15% to 44.32%. Despite its lead in SIM card distribution, NTC has been steadily losing ground in mobile data usage.
Number of foreign workers in Nepal drops by 5 percent
Despite increasing demand for Nepali workers abroad, the number of foreign nationals seeking work in Nepal declined by 5 percent in fiscal year 2024/25. Labor permits issued to foreigners dropped from 2,685 in 2023/24 to 2,559 this year, mostly in donor-funded projects and foreign-run businesses.
Rs 886.6 million disbursed in startup loans to 600 entrepreneurs
The government provided Rs 886.6 million in startup loans to 600 entrepreneurs in fiscal year 2024/25, according to the Industrial Enterprise Development Institute. Out of 661 applicants, 61 were rejected after site inspections revealed inconsistencies with their proposals.
24 casinos renew licenses for FY 2025/26
Twenty-four casinos have renewed their licenses for fiscal year 2025/26, the Department of Tourism reported. Among them, five operate in the Kathmandu Valley, with others in Nepalgunj, Rupandehi, Morang, Jhapa, Parsa, Kaski, and Kapilvastu. These renewals enable the casinos to legally continue their operations in the current fiscal year.
Duty-free liquor from 2008 to be sold during Dashain
National Trading Corporation will sell duty-free liquor imported in 2008 but unsold due to a government ban that same year. The $550,000 inventory includes whisky, brandy, rum, gin, and vodka. Some products—like wine, beer, and cigarettes—have expired, and parts of the stock were damaged by flooding. Sales will be offered at discounted Dashain outlets.
Vehicle renewals bypassing third-party insurance requirement
Numerous vehicles are being renewed without mandatory third-party insurance, particularly at the Department of Transport Management office in Shrijana Nagar, Bhaktapur. Motorcycles typically require about Rs 1,800 and four-wheelers Rs 7,000–8,000 in insurance premiums, but many bypass this by paying bribes of Rs 500. Most renewals reportedly proceed without verifying insurance coverage.
Nepal becomes net power exporter with Rs 17.45 billion in exports
In fiscal year 2024/25, Nepal exported electricity worth Rs 17.45 billion to India and Bangladesh, while importing Rs 12.92 billion from India—making it a net power exporter. The Ministry of Energy, Water Resources and Irrigation stated that Nepal now exports over 700 MW to India and 40 MW to Bangladesh daily, contributing positively to its trade balance and energy diplomacy.
Government to reinstate licenses of 354 manpower agencies
The Department of Foreign Employment has begun reinstating the licenses of 354 manpower firms that were previously suspended under old regulations. The move comes after a recent legal amendment removed the requirement for agencies to send at least 100 workers abroad annually. The amendment was endorsed by the President last week.
Karnali Province blacktops 72 km of roads in FY 2024/25
Karnali Province constructed 72 kilometers of blacktopped roads during fiscal year 2024/25, maintaining a pace similar to the previous year. Since the introduction of federalism, the province has completed 246.59 kilometers of paved roads, with more than 167 kilometers built in just the past two years. Road infrastructure remains a top development priority for the province.
Private sector generates 80% of Nepal’s electricity
Private investment now accounts for around 80% of Nepal’s total electricity generation, producing 2,740 MW out of the country’s 3,500 MW capacity, according to the Independent Power Producers’ Association of Nepal (IPPAN). The 341.5 MW Budhigandaki Hydropower Project in Gorkha—Nepal’s largest private-sector hydro project—is moving forward with Rs 70 billion in funding. Of this, Rs 52.5 billion will be covered through loans from nine banks and one investment company.
Lumbini offers 75% fine waiver on vehicle tax arrears
Lumbini Province has introduced a 75% waiver on fines for overdue vehicle taxes. The Ministry of Industry, Tourism, and Transport says the initiative aims to ease financial burdens on vehicle owners and transport operators while boosting tax compliance. Authorities expect the move to help expand the province’s revenue base.
Siddhartha Bank profit increases by over 10%
Siddhartha Bank reported a net profit of Rs 3.39 billion in fiscal year 2024/25, reflecting a 10.24% increase from the previous year’s Rs 3.08 billion, according to its unaudited report. The profit growth was attributed to business expansion, improved loan recovery, and increased income—despite higher provisioning for possible loan losses.
NIMB Sahabhagita Fund announces 7% dividend
The NIMB Sahabhagita Fund has declared a 7% dividend (tax included) for fiscal year 2024/25. Managed by NIMB S Ace Capital Ltd. and promoted by Nepal Investment Mega Bank, the mutual fund has an approved size exceeding Rs 6 billion. Investors holding units as of July 21 will be eligible for the dividend.
Rasuwa locals’ locked shares to be tradable from September 12
The three-year lock-in period for 6.84 million shares allotted to project-affected locals of Rasuwagadhi Hydropower will end on September 12, 2025. These shares, distributed on September 13, 2022, will become tradable in the secondary market, along with founder and employee shares that were under similar restrictions.
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