KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mixed picture of growth momentum and infrastructure vulnerability. The stock market has hit a four-month high with robust turnover, signaling renewed investor confidence, particularly in the banking sector.
Financial instruments like NIFRA’s green bonds and rising FTTH internet subscriptions reflect expanding digital and sustainable investment trends. However, extreme weather events have severely impacted infrastructure, halting 250 MW of electricity production, damaging roads and hydropower plants, and straining border trade routes such as Rasuwa-Kerung.
While the government executed last-minute fiscal spending and launched targeted efforts like fertilizer imports and loan recovery tribunals, challenges persist—particularly for migrant laborers still earning below minimum wage and stranded pilgrims due to visa delays.
Overall, the interplay between economic resilience and disaster-induced disruptions underscores the urgent need for infrastructure fortification and policy enforcement.
Stock market reaches 4-month high, daily turnover hits Rs 9.68 billion
The stock market climbed to its highest level in almost four months, as the NEPSE index rose by 25.89 points to close at 2731. This marks the highest level since Falgun 28, when it reached 2736. Since then, the index had remained below 2730. Trading volume also saw a significant rise, with Thursday’s turnover hitting Rs 9.68 billion, up from Rs 7.45 billion on Wednesday. Share prices increased for 161 companies, while 87 saw declines. Commercial banks remained the top-performing sector, with the subgroup rising by 3.02%, compared to NEPSE’s overall 0.95% gain.
NIFRA green bond listed on NEPSE
Nepal Infrastructure Bank’s (NIFRA) green energy bond has officially been listed on the Nepal Stock Exchange (NEPSE). On Wednesday, 5 million units priced at Rs 1,000 each were listed. NEPSE CEO Chudamani Chapagain and NIFRA CEO Krishna Bahadur Adhikari signed the agreement. Trading in the secondary market began on Thursday.
Floods halt 250 MW of electricity production
Flooding has disrupted electricity production, halting a total of 250 MW generated by projects under the Nepal Electricity Authority and private firms. There’s no clear timeline for resumption. NEA Executive Director Hitendra Dev Shakya said that Rasuwagadhi and Trishuli 3A have been hit hardest and power generation from these projects has been suspended indefinitely.
Govt spends Rs 21.73 billion before account freeze deadline
A day before government accounts were frozen on July 9, the government spent Rs 21.73 billion from the budget for the 2024/25 fiscal year. This last-minute spending falls under the Rs 352 billion allocated for development. The Financial Comptroller General Office confirmed that this amount was released through the budget system in a single day.
G2G urea fertilizer starts arriving in Nepal
Urea fertilizer procured through a government-to-government deal with India has started entering Nepal. The first batch of 2,500 tons arrived at Raxaul railway station from Kolkata on Tuesday. From Wednesday, it began moving to the Agricultural Inputs Company’s regional warehouse in Birgunj, said regional head Durga Prasad Pandey.
22 broker firms miss minimum capital requirement
With the deadline approaching, 22 brokerage firms have yet to meet the Rs 200 million minimum paid-up capital requirement. According to SEBON data from July 8, these companies still fall short. SEBON revised its guidelines in August 2022, categorizing brokers into three tiers with different capital thresholds.
Loan recovery tribunal launched for cooperatives
To address the growing loan recovery issues in the cooperative sector, the government has launched a dedicated loan recovery tribunal. Minister for Land Management, Cooperatives and Poverty Alleviation Balram Adhikari inaugurated the tribunal office on Wednesday, calling for support from all related institutions to ensure efficient operations.
Koshi Province spends over 77% of annual budget
Koshi Province has already used 77.26% of its total annual budget for the 2024/25 fiscal year. Out of a Rs 35.27 billion allocation, Rs 27.25 billion has been spent. The provincial Ministry of Economic Affairs and Planning noted that development and infrastructure spending has exceeded administrative costs.
Nepali migrant workers still earn below minimum wage
Nepali migrant workers in key labor destinations like the UAE, Qatar, Saudi Arabia, and Malaysia continue to earn below Nepal’s minimum wage. The updated wage standard, introduced in late June through amendments to the Foreign Employment Service Directive, is yet to be enforced effectively in these countries.
Mansarovar-bound tourists stranded due to visa delays
Delays in visa verification by the Chinese embassy have left around 2,500 tourists heading to Kailash Mansarovar stranded in Kathmandu. Tour operators report that the verification process, which used to take 3 days, now takes over 10. As a result, nearly 3,000 tourists are reportedly waiting in luxury hotels across Kathmandu for clearance to begin their pilgrimage.
Nepal Telecom rolls out monsoon offer with discounts
Nepal Telecom has launched a Monsoon Offer starting Thursday, featuring a range of promotional packages. The offer includes bonus data and special discounts, particularly for individuals with physical and mental disabilities. Under this scheme, the Rs 699 and Rs 799 ‘Sajilo Unlimited’ plans are available at a 30% discount. Packages can be purchased via mobile or through the Telecom app.
Committee formed to assess flood damage in Rasuwa
A 13-member committee has been set up to evaluate the damage caused by recent flooding in Rasuwa. The decision was made during a joint meeting of the District Security and Disaster Management Committees, chaired by Chief District Officer Arjun Paudel. The committee is led by chief engineer Khadga Lal Shrestha from the Galchi-Trishuli-Mailung-Syafrubesi-Rasuwagadhi road project.
Rasuwa-Kerung border closure expected to continue after flood damage
The Rasuwa-Kerung border is unlikely to reopen soon after floods destroyed the Miteri bridge and damaged around two kilometers of road on the Nepali side. The construction site for a dry port has also been affected. According to Rasuwa Customs Office spokesperson Rabindra Prasad Pyakurel, electricity, internet, and telephone services are down, and the road connection has been cut off. While rescue and relief work is ongoing, there’s no clear timeline for the resumption of trade. The Tatopani border point, another major Nepal-China trade route, also remains partially closed.
FTTH internet subscribers reach 3.18 million in Nepal
The number of fixed broadband users in Nepal continues to rise, with Fiber-To-The-Home (FTTH) internet subscriptions reaching 3,178,637 by mid-June. This marks an increase of 75,814 users compared to May’s total of 3,102,823, according to the latest MIS report from the Nepal Telecommunications Authority.
Flood causes Rs 1.04 billion in damage in Baglung’s Jaimini
Heavy rainfall on Tuesday night triggered flooding in Paiyunthanthap, Jaimini Municipality–9, Baglung, causing damages worth approximately Rs 1.04 billion. The Kalung Khola Hydropower Project was completely destroyed by the flood in Kalung Khola. Deputy Mayor Harihar Sharma stated that the damage to the hydropower project alone was estimated at Rs 200 million.
Jungle safari halted in Shuklaphanta National Park
Safari tours in Shuklaphanta National Park have been suspended due to rain-damaged roads. Tourists began facing difficulties after vehicles became stuck in the mud. Conservation Officer Purushottam Wagle noted that the main route from Majhgaun to the grasslands is impassable, disrupting both tourism and rescue operations.
Chimkhola–Rahughat 220 kV transmission line begins testing
Testing has started on the newly constructed 220 kV Chimkhola–Rahughat transmission line in Myagdi. The 13-kilometer line connects multiple hydropower projects in the Rahughat basin, including Chimkhola-Mangle Rahughat (35 MW), Upper Rahughat (48.5 MW), Thulo Khola (21.3 MW), and Upper Thulo Khola (23.5 MW), to the central grid through the Rahughat Hydropower Project switchyard in Galeshwar.
Global IME Bank named best bank in Nepal for 2025
Global Finance Magazine Asia-Pacific has awarded Global IME Bank the title of Best Bank in Nepal for 2025. This marks the second consecutive year the bank has received this honor. CEO Surendra Raj Regmi credited the achievement to the bank’s strong performance, customer commitment, and strategic growth initiatives.
Ruila and Nuila border points reopen in northern Gorkha
The Ruila and Nuila border crossings in Gorkha’s Chumnubri Rural Municipality have reopened temporarily. The Nuila point opened on July 1 and Ruila on July 5, following coordination between Chinese officials and local representatives. Ruila will remain open for one month, while Nuila will stay open for three. Locals are now preparing to travel to the Tibetan market for shopping.
Barahsinghe beer producer Yak Brewing posts Rs 1.67 billion in 10-month sales
Yak Brewing Company, known for producing Barahsinghe beer, reported Rs 1.67 billion in sales over the first 10 months of the current fiscal year. The company recorded Rs 1.27 billion in 2024, Rs 927 million in 2023, and Rs 972 million in 2022. Sales jumped 44% in 2024, and the company reported a net profit margin of 3.01% this year.
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