KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflected a mix of cautious optimism and structural challenges, as the stock market closed higher despite mid-week volatility, supported by strong trading volumes and a mid-week rally.
Meanwhile, SEBON’s delay in approving a new stock exchange and mounting IPO bottlenecks frustrated investors and energy producers alike, even as some companies, like Reliance Spinning and Rapti Hydro, saw procedural green lights.
Macroeconomic concerns were further amplified by regional geopolitical tensions and domestic power generation issues, such as technical faults at Kulekhani and misaligned transmission in Rahughat.
In parallel, government-led privatization of loss-making public enterprises and new foreign grants, like JICA’s funding for BP Highway, signaled a shift toward fiscal restructuring and infrastructure development.
Other notable developments included a rise in silver prices amid falling gold rates, an alleged NPR 15.6 billion cooperative fraud, and a push for green hydrogen investment in fertilizer production. Collectively, these events underscore a period of economic flux marked by regulatory inertia, investment potential, and sectoral reform efforts.
Stock market ends week higher despite mid-week volatility
The Nepal Stock Exchange index recorded a net gain this week, thanks largely to a strong mid-week performance, even though the market declined on three of the five trading days. On Sunday, the index fell by 3.44 points, and on Monday, it dropped a further 9.98 points.
A minor gain of 1.03 points on Tuesday was followed by a significant 62.25-point surge on Wednesday. However, Thursday saw another fall of 12.04 points, attributed to lingering political uncertainty and delays in appointing the new Governor. Despite these fluctuations, trading activity remained robust, with over NPR 10 billion in transactions over the last two days. Total weekly turnover stood at NPR 556.6 billion.
Gold price dips while silver edges up in local market
Gold prices dropped by NPR 1,400 per tola on Friday, trading at NPR 190,800 per tola, while silver prices rose by NPR 5, reaching NPR 1,960 per tola. The changes reflect slight shifts in the international market, where gold is currently priced at USD 3,333 per ounce.
SEBON yet to decide on license for new stock exchange
A meeting of the Securities Board of Nepal (SEBON) held on Thursday failed to make a final decision regarding the issuance of a license for a new stock exchange. The board had convened to evaluate a report by a committee led by Nepal Rastra Bank director Chintamani Shiwakoti, which had assessed the viability of introducing a second exchange. The Cabinet had earlier instructed SEBON on Poush 5, 2081, to move forward with the committee’s recommendations.
India-Pakistan conflict stirs economic concerns in Nepal
Experts warn that the ongoing conflict between India and Pakistan could impact Nepal’s economy, given its trade dependence on India. Although geographically removed from the conflict zone, Nepal may experience economic ripple effects in areas such as trade, investment, technology transfers, and inflation, according to economist Chandramani Adhikari. As an import-driven economy, Nepal is particularly vulnerable to such regional instability.
Government to privatize seven state-run enterprises
The government has decided to privatize seven underperforming public enterprises. A Cabinet meeting held on Baisakh 15 approved the management of government investments in these companies. Minister for Information and Communication Technology Prithvi Subba Gurung confirmed that Janakpur Cigarette Factory, Gorakhkali Rubber Industry, Udayapur Cement, Hetaunda Cement, Butwal Yarn Factory, and Nepal Orient Magnesite Pvt. Ltd. are among those targeted for privatization.
JICA to grant 2.8 billion yen for BP highway upgrade
The Japan International Cooperation Agency (JICA) will provide a grant of 2.8 billion Japanese yen for the rehabilitation of the BP Highway. Arjun Prasad Aryal, spokesperson for the Department of Roads, confirmed receipt of a preliminary draft agreement and said the ministry is currently reviewing it. At current exchange rates, the amount is approximately NPR 2.65 billion. The final grant figure will be determined after the ministry sends back its suggestions to JICA.
Kulekhani project struggles to meet full power output amid demand surge
Despite increased electricity demand, the Kulekhani Hydropower Project in Makwanpur has been unable to operate at full capacity. One of the two generators at the Kulekhani III center has been offline for over a week due to technical issues. Chief Prasanna Mani Tamrakar said the fault in a generator plate has forced ongoing maintenance.
Minister Bhandari highlights focus on industrial growth and export
At the opening of the 10th Nepal International Trade Fair 2025, Industry Minister Damodar Bhandari said the government is prioritizing industrial revival, new investment opportunities, and boosting exports. He emphasized policy reforms and government efforts to support production and marketing, while encouraging entrepreneurs to improve productivity and focus on exports.
Court allows Reliance Spinning Mills to resume IPO process
Patan High Court has issued an interim order allowing Reliance Spinning Mills to proceed with its Initial Public Offering (IPO). The IPO had been suspended since Ashar 26 following an order by then-SEBON Chairman Narendra Kumar Rana. The court’s decision enables the previously halted process to continue.
Transmission error threatens four hydropower projects in Rahughat
Four nearly completed hydropower projects in the Rahughat Basin are at risk due to faulty transmission line arrangements. A 220 kV line has been improperly installed beneath a 132 kV line in Raghuganga Rural Municipality-3, violating technical standards that require higher-capacity lines to be positioned above lower ones with a 4.5-meter clearance.
Energy producers frustrated by IPO approval delays
Private energy producers in Nepal are growing increasingly frustrated with prolonged delays in IPO approvals by SEBON. Some projects have been awaiting approval for over two years. The Independent Power Producers’ Association Nepal (IPPAN) warned that protests could be organized if the delays continue, despite recent assurances from SEBON officials.
SEBON approves right share issuance for Rapti Hydro Power
The Securities Board of Nepal has approved Rapti Hydro Power and General Construction’s proposal to issue right shares in a 1:1 ratio. The offering will match the company’s existing paid-up capital of NPR 61.27 million. Muktinath Capital will manage the sale.
Ncell opens first ‘Shop-in-Shop’ service center in Bhairahawa
Ncell has launched its first-ever ‘Shop-in-Shop’ in Bhairahawa in collaboration with New Lumbini A2Z Mobile. The center, inaugurated by Ncell Chief of Staff Steven Rodriguez, will provide full Ncell services including SIM card issuance, KYC updates, eSIM upgrades, and package purchases—just like at Ncell Centers.
Butwal firm faces lawsuit for evading over NPR 30 million in revenue
The Revenue Investigation Office in Butwal has filed a case at the High Court against Bhanja Stores & House for evading over NPR 30 million in taxes. Owner Barkat Ali Miya is accused of not maintaining proper records, selling goods without invoices, and failing to register purchases correctly.
Luxury resort worth NPR 1 billion to be developed in Nagarkot
Capital Hill Resort Pvt. Ltd. has announced plans to build a high-end resort in Nagarkot with an investment of NPR 1.08 billion. The company intends to borrow NPR 760 million from banks, with the rest covered by investor contributions. So far, NPR 120 million has been secured from banks and NPR 63 million from investors.
Sudurpaschim province consults local governments on upcoming budget
Sudurpaschim Provincial Government held consultations with local officials from all nine districts on Thursday to discuss the fiscal year 2082/83 budget. At the meeting in Dhangadhi, Chief Minister Kamal Bahadur Shah emphasized the importance of effective budgeting and warned that repeated mistakes in the process would undermine federalism.
Sumero cooperative accused of embezzling NPR 15.6 billion
Depositors of Sumero Savings and Loan Co-operative have accused the management of defrauding them of NPR 15.6 billion. Former Police Chief Sarbendra Khanal urged the government to act decisively, blaming lax regulation for allowing the fraud to continue unchecked.
Koshi province to launch urea fertilizer plant using green hydrogen
After decades of delay, Koshi Province is moving forward with plans to build a urea fertilizer plant using green hydrogen and carbon capture technologies. A Memorandum of Understanding was signed between Koshi Investment Authority and Nepal Green Hydrogen Company during a two-day investment summit.
Mountain Energy Nepal posts over 50% profit rise
Mountain Energy Nepal Limited reported a 50.45% increase in net profit in the third quarter, earning NPR 46.5 million by the end of Chaitra. The company also saw a 6.05% increase in electricity sales revenue, which reached NPR 92.27 million.
Farwest tourism mart kicks off in Mahendranagar
The Farwestern Tourism Mart began on Friday in Mahendranagar, Kanchanpur, aiming to promote tourism in the region and build connections with Indian travel businesses. The three-day event is organized by Bhimdutt Municipality and the Nepal Tourism Board.
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