KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and investment climate shows mixed signals: the stock market opened the week with a notable dip, reflecting cautious investor sentiment, while gold prices continued a downward trend amid ongoing volatility.
Simultaneously, government efforts to spur development—including PM Oli’s renewed commitment to completing National Pride Projects and NRB’s liquidity management—point to a policy push for economic stability.
However, rising concerns in sectors like telecom and construction highlight persistent structural and regulatory challenges. Meanwhile, hydropower projects and investor commitments, both domestic and foreign, signal long-term economic confidence, even as short-term uncertainties persist across financial, industrial, and labor markets.
NEPSE drops by double digits on weekly opening day
The Nepal Stock Exchange (Nepse) saw a decline of 12.53 points on Sunday, the week’s first trading day, ending at 2,649.11 points—a 0.47% drop. A total of 300 securities were traded through 88,955 transactions involving 24 million shares, with a total turnover of Rs. 10.20 billion.
While the hotel and tourism index rose by 6.50%, most others declined. Sub-indices such as development banks, life insurance, non-life insurance, and trading gained slightly. Nepal Micro Insurance and Crest Micro Life Insurance were the top performers, each rising by 10%, with stock prices reaching Rs. 2,457.60 and Rs. 2,031.70 respectively.
Gold prices fall again amid recent volatility
Gold prices dropped by another Rs 300 per tola today, following a Rs 1,400 drop last Friday. Currently, gold is priced at Rs 190,500 per tola, down from its peak of Rs 197,900 on Baishakh 9—a total drop of Rs 14,400 in nine days, according to the Federation of Nepal Gold and Silver Dealers Association.
PM Oli pledges completion of national pride projects by 2082/83
Prime Minister KP Sharma Oli stated that the government will complete ongoing National Pride Projects by the fiscal year 2082/83. Addressing lawmakers in the House of Representatives, he announced a strategy to categorize and prioritize feasible projects, while shelving impractical and flawed ones. Oli said the new approach will help eliminate the trend of prolonged “work in progress” in development efforts.
NRB to mop up Rs 30 billion liquidity via auction
Nepal Rastra Bank is conducting a 21-day deposit collection auction to withdraw Rs 30 billion from the banking system. Banks and financial institutions can bid amounts between Rs 100 million and Rs 500 million. The interest and principal will mature on Jestha 18, 2082. The collected deposits can be used as collateral, excluding with NRB itself.
Nepali Congress proposes Bishwo Paudel as new central bank Governor
Nepali Congress has recommended Bishwo Paudel, a former National Planning Commission vice-chair, for the role of Governor of Nepal Rastra Bank. Congress President Sher Bahadur Deuba put forward his name during talks with coalition and UML leaders.
Though earlier discussions had settled on Gunakar Bhatta, Paudel’s name emerged after Bhatta’s resignation was rejected by Acting Governor Neelam Dhungana.
Rs 990 million paid as compensation for Lower Arun hydropower project
Compensation worth Rs 990 million has been distributed to 253 families affected by the 669 MW Lower Arun Hydropower Project in Sankhuwasabha. The main structures are located in Chichila and Khandbari municipalities, according to District Administration Office official Ramji Poudel.
Economic revival depends on investor confidence, says finance minister Paudel
Finance Minister Bishnu Prasad Paudel emphasized the importance of investor attraction for economic recovery. Speaking at a pre-budget session organized by FNCCI, he urged boosting private sector confidence and creating jobs. He highlighted that the government has formed an Economic Reform Advisory Commission and is using ordinance-led measures to address economic issues.
Shankar Group denies Jayveer Deuba invested in Hilton Hotel
Shankar Group has refuted claims that Jayveer Deuba acquired shares in Kathmandu’s Hilton Hotel. Hotel MD Shahil Agarwal clarified no new investors have joined. Media reports had earlier alleged Deuba, son of Sher Bahadur Deuba and Arzu Rana, had bought shares.
Pokhara residents hopeful for international flights from new airport
Pokhara locals are optimistic about international flights beginning soon from the newly built Pokhara Regional International Airport. Although the project was conceived in 2032 BS and construction began only in 2073 BS with Chinese loans, no international flights have operated since the airport’s completion in 2080 BS despite a Rs 22 billion investment.
Portugal cancels 23,500 residence permits including Nepalis
Portugal has revoked over 23,500 residence permits, affecting some Nepalis, with 4,500 people asked to leave voluntarily within 20 days. The move follows the phase-out of the AIMA agency. Of the 446,921 residency applications, only 27.5% had been approved.
Telecom firms urge government to lower taxes as costs rise
Nepal’s telecom companies are urging the government to reduce sector-specific taxes, citing rising operational expenses. They argue that despite reduced voice rates, taxes like 30% income tax, 13% VAT, and 10% TSC, plus royalty and RTDF charges, have made telecom services costly and unsustainable.
Domestic investors commit Rs 124 billion in first nine months
During the first nine months of the current fiscal year, domestic investors pledged Rs 124 billion—68.29% of total commitments. Foreign investments accounted for 31.7%. Of the Rs 182.87 billion investment proposals approved, the foreign investment commitment surpassed the Rs 44 billion target, reaching Rs 57.98 billion by Chaitra.
NEA simplifies process for dues on dedicated feeders and trunk lines
The Nepal Electricity Authority now allows industries to deposit just 5% of disputed bills to seek reviews on feeder and trunk line dues—down from 25% as per earlier rules. This move, building on earlier reforms by ex-director Kulman Ghising, also allows non-cash deposits as collateral.
Bajra Madi hydropower project secures Rs 3.74 billion financing
Bajra Energy Ventures has finalized Rs 3.74 billion in loans for its 24.8 MW Bajra Madi Hydropower Project in Kaski. The project will have major structures including a tunnel and dam, and plans are underway to expand the capacity to 31 MW.
Experts stress effective budget implementation for FY 2082/83
Speaking at a SEJON event, former Chief Secretary Dr. Baikuntha Aryal said only 86.97% of the allocated budget is typically spent each year, despite federalism. He called for improvements in budget planning, execution, and monitoring for fiscal year 2082/83.
Gandaki emerging as a major hub for hydropower
Gandaki Province is seeing rising investment in hydropower due to its rich water resources and supportive policies. Projects are contributing to economic development, job creation, and community infrastructure like roads, schools, and water supply systems.
Lack of contractor-friendly laws hurting construction sector
FCAN President Rabi Singh criticized the absence of supportive laws for contractors, stating this has created ongoing difficulties. Speaking at an event in Makwanpur, he welcomed some regulatory amendments but stressed the need for deeper reforms.
Hidcl’s third-quarter profit drops sharply
Hydroelectricity Investment and Development Company Limited earned Rs 729 million in the third quarter, a sharp fall from last year’s Rs 1.09 billion. Its income fell from Rs 1.58 billion to Rs 1.05 billion, with lower interest rates blamed for the decline. EPS dropped from Rs 6.38 to Rs 3.96.
Over 100 trees illegally felled before dry port construction in Kanchanpur
Before construction of a dry port in Dodhara Chandani of Kanchanpur, over 100 marked trees were found to be illegally cut in Gauri Shankar Community Forest, as per Shuklaphanta National Park officials. The project involves clearing 1,702 trees across 42 hectares.
Lamjung becomes hydropower center with 17 operational projects
Lamjung is developing into a hydropower hub, generating about 300 MW from 17 projects on rivers like Marsyangdi and Dordi. Notable ones include the 70 MW Middle Marsyangdi and the 50 MW Upper Marsyangdi, significantly contributing to the power grid.
Chandragiri Hills reports Rs 108.8 million profit in Q3
Chandragiri Hills Limited earned a net profit of Rs 108.8 million in the third quarter, slightly higher than last year’s Rs 107.9 million. However, revenue declined to Rs 635.1 million by the end of Chaitra.
Butwal industrialists complain about limited space for expansion
Business owners in the Butwal Industrial Area are struggling with a lack of space, hampering their ability to expand and upgrade. A site visit by the Butwal Chamber of Commerce found many industries, including long-established ones like Metal Cast Industry, facing operational limits due to land shortages.
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