KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape is marked by a blend of positive momentum and structural friction. The NEPSE index’s steady rise reflects investor confidence, yet concerns loom over hydropower investment due to policy inconsistency and potential market volatility from expiring share lock-ins. Gold traders are preparing protests against new luxury taxes, exposing tensions between fiscal reforms and business sentiment.
The government touts its new customs bill as a step toward transparency, while judicial intervention halts central bank loan assessments, revealing institutional friction. Infrastructure projects show mixed progress—like the delayed Butwal–Narayanghat road and advancing Sisnekhola–Nagdhunga tunnel.
Meanwhile, the rise in agricultural insurance payouts and new taxpayer registrations signals policy reach, yet bureaucratic lags in disbursement persist. On the trade front, growing exports of chhurpi contrast with the obstructed betel nut market due to legislative inconsistency.
Social data collection has improved targeting for poverty alleviation, but delays in electricity exports to Bangladesh underscore unresolved regional coordination issues. Collectively, these developments highlight a growth-oriented yet policy-challenged economy navigating a transitional phase.
NEPSE climbs 23.19 points to close at 2,653 amid broad market uptrend
The Nepal Stock Exchange (NEPSE) index increased by 23.19 points on Monday, settling at 2,653 points by market close. Over 17.5 million shares valued at approximately Rs. 8.69 billion were exchanged across 324 listed firms, through a total of 78,848 transactions. Among the traded companies, 191 saw gains, 56 declined, and one remained unchanged. Out of 13 sector indices, only the hotel & tourism, life insurance, and trading sectors ended in the red, while the rest contributed to the market’s upward trend.
Gold price dips slightly, silver inches up
Gold fell by Rs 100 to NPR 190,600 per tola, while silver rose by Rs 5 to NPR 2,150 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Associations.
Gold dealers plan protest over new taxes on jewelry
Jewelry traders are preparing to protest after the government announced a luxury tax on gold and a 13% VAT on diamonds for the upcoming fiscal year 2082/83 (2025/26). According to the Federation of Nepal Gold and Silver Dealers’ Associations, the new tax policy threatens the survival of the gold business. A nationwide gathering is scheduled for Asar 4 (June 18), where protest plans will be formalized.
Finance Minister Paudel explains advantages of newly endorsed customs bill
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel highlighted the benefits of the recently endorsed Customs Bill, 2080, noting that it will help curb revenue leakage. During Monday’s National Assembly session, Paudel addressed queries raised about the bill—sent with recommendations from the House of Representatives. He said the new legislation will enhance transparency and reliability in the customs system and make international trade more efficient.
Energy producers warn of policy inconsistency hurting power sector
Although Nepal’s energy roadmap envisions producing 28,500 MW of electricity in the next ten years—including 10,000 MW for India and 5,000 MW for Bangladesh—recent policy changes have raised concerns. A new rule requiring run-of-river hydropower projects to sign “take-and-pay” Power Purchase Agreements (PPAs), rather than the more secure “take-or-pay” model, has unsettled investors. Power developers say this shift will hurt investment confidence and could slow down Nepal’s hydropower expansion.
Supreme Court delays NRB’s ongoing loan portfolio assessment
Nepal Rastra Bank’s (NRB) current loan portfolio evaluation for commercial banks will face delays due to an interim order from the Supreme Court. The decision, issued by Justice Hari Prasad Phuyal on Jestha 23 (June 6), came in response to a writ petition filed by Satish Subedi of Subedi & Associates. The court has called for a written explanation from the opposing side and scheduled a hearing for Asar 9 (June 23) to decide whether the stay should continue. Until then, the loan review process remains on hold.
Government records 1 million poor households in latest survey
The Ministry of Land Management, Cooperatives and Poverty Alleviation has identified around one million impoverished households through its ongoing “Poverty Identification Program,” initiated 12 years ago. Preliminary findings categorize families into three groups—extremely poor, poor, and marginally poor. The purpose of this classification is to ensure that social security and aid programs reach the most disadvantaged groups. The ministry plans to use the data to improve and expand welfare services.
Uncertainty surrounds electricity export to Bangladesh due to LC delay
Nepal is scheduled to export 40 MW of electricity to Bangladesh starting Asar 1 (June 15), but the deal is now uncertain as Bangladesh has not yet opened a Letter of Credit (LC) by the end of Jestha. Although Nepal had exported power to Bangladesh in November 2023, the Bangladesh Power Development Board (BPDB) has yet to settle previous dues. According to Nepal Electricity Authority spokesperson Rajan Dhakal, exports are still planned to begin on June 15 under the bilateral agreement.
Lock-in period ending soon for four hydropower companies
By the end of Asar (mid-July), the lock-in period for promoter and local shares of four hydropower companies will conclude. This will allow the shares to be freely traded, potentially increasing supply and impacting market prices. The companies—Bindhyabasini Hydropower, Dordi Khola Hydropower Company, Himalayan Hydropower, and Upper Solu Hydro Electric Company—have already issued advance notices regarding the end of the lock-in period.
Farmers receive Rs 848 million in insurance compensation
Up to the end of the last fiscal year, farmers across Nepal received a total of Rs 848 million in claims for agricultural and livestock insurance. The payouts were made by non-life insurance companies. However, delays in the government’s subsidy disbursement to insurers have hindered policy sales. By the end of Baishakh in the current fiscal year, a total of 122,852 such insurance policies had been issued, according to the Nepal Insurance Authority.
Ex-Nepal Bank chair to face three corruption charges
The Commission for the Investigation of Abuse of Authority (CIAA) has decided to file three separate bribery cases against Dr. Chandra Bahadur Adhikari, former chairperson of state-owned Nepal Bank Limited. Adhikari is accused of receiving kickbacks during loan disbursement. CIAA intends to file the cases in the Special Court and was reportedly preparing the documentation as of today. He was taken into custody for investigation on Magh 29, 2081 (February 11, 2025).
Over 573,000 new taxpayers added by end of Chaitra
A total of 573,682 new taxpayers were registered by the end of Chaitra in the ongoing fiscal year 2081/82 (2024/25), according to the Ministry of Finance. These include individuals and businesses across various tax categories. Of the total, 480,070 were personal PAN registrations, while 91,733 were business-related, bringing the number of registered business taxpayers to 2,035,874.
Accountants warn against excessive tax exemptions
During a discussion hosted by the Institute of Chartered Accountants of Nepal (ICAN), professionals cautioned that repeated tax exemptions could harm economic discipline and create inequality among taxpayers.
Google Plus Code now required for manpower license renewal
The Department of Foreign Employment now mandates all manpower agencies to provide their Google Plus Code and display their Google location on their websites when renewing licenses, according to a notice issued on Jestha 26 (June 9).
Conflicting parliamentary orders obstruct betel nut exports
Nepal’s betel nut export policy faces confusion due to differing directives from the House of Representatives and National Assembly. A proposal to revise DNA test requirements stalled amid intra-party disagreement within the Nepali Congress.
Muglin–Pokhara road west section sees 53% progress
Work on the western section of the Muglin–Pokhara Road has reached 53% completion. Blacktopping has been done on 24 km of two-way and 12.8 km of one-way stretches, with 3 km more to go by the end of Jestha.
Chhurpi exports via Birgunj see significant rise
Exports of hard cheese (chhurpi) through Birgunj have grown sharply, with 495,686 kg worth Rs 880 million shipped up to Baishakh, up from 294,215 kg worth Rs 530 million in the same period last year. Key markets include the U.S., Australia, and Canada.
Nagdhunga–Naubise road closure at Piplemod extended by five days
The Piplemod section will remain closed from 10:30 AM to 3 PM daily for another five days due to incomplete road work, according to project officials.
Tourism improves in Palpa due to cable car and temple
Tourist numbers have increased at Basantapur Hill in Palpa following the launch of the Lumbini Cable Car and construction of Kamakhya Devi Temple. The cable car began operation in May 2023 and was officially inaugurated in June 2023.
Butwal–Narayanghat road expansion just 67% complete after 7 years
Despite a 3.5-year contract deadline signed in 2019, the Butwal–Narayanghat road expansion project has only reached 67% completion due to persistent delays.
Main tunnel completed in Sisnekhola–Nagdhunga project
The 2,688-meter-long main tunnel of the Sisnekhola–Nagdhunga Tunnel Project, completed on April 15, 2024, has entered the testing phase with CRCP being examined for operational readiness.
Gyanishwor Panta appointed CEO of Infinity Microfinance
Infinity Microfinance has appointed Gyanishwor Panta as CEO with a term until June 6, 2029. He previously served as Deputy CEO and Company Secretary.
Asian Life Insurance announces 5.36% dividend
Asian Life Insurance has declared a 5.36% dividend from last year’s profits, comprising 5.10% bonus shares and 0.26% in cash for tax purposes.
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