KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and financial landscape presents a mixed picture of cautious optimism, structural reform, and ongoing challenges. While the NEPSE index dipped slightly despite a sharp rise in turnover—indicating active trading but cautious investor sentiment—gold prices surged alongside international trends, contrasting with a minor dip in silver.
The government is signaling a shift toward domestic employment generation, as highlighted by the finance minister, and forming new committees to reform banking and improve fiscal transparency. Infrastructure projects like the Sisnekhola–Nagdhunga tunnel road are progressing, and provincial governments have outpaced federal and local counterparts in capital spending.
Meanwhile, the IMF’s continued financial support, World Bank engagement in hydropower, and improved labor diplomacy with Malaysia underscore international confidence. However, challenges persist: disputed electricity bills, illegal resource extraction, falling broiler chick prices, and public unrest over cooperatives highlight governance gaps and economic strain.
The push for economic diversification—through energy investment, hotel development, microfinance share offerings, and industrial growth—offers potential, but sustained momentum will depend on policy execution, institutional accountability, and market confidence.
NEPSE dips by 9.08 points while turnover jumps to Rs 12.51 billion
Nepal’s stock market index, Nepse, fell by 9.08 points on the last trading day of the week, closing at 2,655. Despite this decline, the daily turnover saw a sharp rise, reaching Rs 12.51 billion—up from Rs 9.90 billion the day before. While 99 companies posted gains, 149 saw their share prices fall. Sector-wise, the hotel and tourism group led the gains with a 2.14% rise, followed by the finance sector (0.89%) and hydropower (0.22%).
Gold price jumps by Rs. 1,600 per tola while silver slips
Gold prices in the local market have surged by Rs. 1,600 per tola since Wednesday, reflecting a continued rise in international markets. However, silver prices dropped by Rs. 15. As per the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has reached Rs. 192,900 per tola, while silver stands at Rs. 2,150.
Budget aims to retain workforce in Nepal, says finance minister
Finance Minister Bishnu Prasad Paudel said the new fiscal budget includes initiatives focused on keeping Nepali workers within the country. Speaking at an event hosted by Media International in Kathmandu, he highlighted the importance of exploring domestic potential instead of looking abroad—even metaphorically to “outer space.” Paudel emphasized that political leadership, vision, and execution are crucial to create employment opportunities at home.
NRB forms committee to study and propose banking sector reforms
Nepal Rastra Bank has established a special study committee to suggest improvements in the banking system within a month. The committee, led by Dr. Rewat Bahadur Karki—former chair of the Securities Board and an ex-NRB official—was approved by the central bank’s board on Jestha 21 (June 4). Formal appointment letters are still pending.
NOC collects Rs 1.91 billion in green tax from fuel sales
Nepal Oil Corporation (NOC) has collected Rs 1.91 billion in green tax from diesel and petrol sales as of mid-Jestha (end of May) in the current fiscal year 2081/82 (2024/25). NOC has been levying Rs 1 per liter under this scheme. Executive Director Nagendra Sah said the collection is on track to hit the Rs 2.4 billion target by the fiscal year’s end.
World Bank’s Gupta meets energy minister Khadka to discuss hydropower investment
Pankaj Gupta, World Bank’s South Asia regional director, met with Minister for Energy, Water Resources and Irrigation, Deepak Khadka, at Singha Durbar today. Their discussion centered around the World Bank’s investment in Nepal’s hydropower sector. Minister Khadka expressed gratitude for the Bank’s past support and urged for its continuation.
IMF completes sixth review for Nepal under extended credit facility
A team from the International Monetary Fund (IMF), headed by Sarwat Jahan, wrapped up its in-person review of Nepal’s sixth installment under the Extended Credit Facility (ECF), conducted from May 26 to June 10. Once endorsed by IMF leadership, Nepal is set to receive USD 42.7 million (around Rs 5 billion).
Thirteen industries dispute NEA’s power bills over fairness concerns
Out of 49 industrial consumers using dedicated lines who owe outstanding payments to Nepal Electricity Authority (NEA), 13 have challenged their bills, claiming unfair charges. Another 15 industries—including two government-owned cement factories—are in the process of clearing dues. The remaining 21 have taken no action, despite alleging billing issues.
Provinces lead in capital spending, outpacing federal and local governments
Provincial governments, once criticized for inefficient spending, have surpassed both federal and local levels in capital expenditure this fiscal year. While federal and local budget execution remains sluggish, provinces have shown marked improvement in development spending.
Govt endorses toll rates for Sisnekhola–Nagdhunga tunnel road
The Cabinet’s Economic and Infrastructure Committee has approved toll fees for the upcoming Sisnekhola–Nagdhunga tunnel highway. The proposal, which projects Rs 600 million in revenue and Rs 350 million in annual operating costs, will be sent to the full Cabinet for final approval.
Nepal-Malaysia labor partnership set to deepen, says minister Bhandari
Labor Minister Sharatsingh Bhandari expressed optimism about the strengthening of labor relations between Nepal and Malaysia. During a meeting in Geneva with Malaysia’s Human Resources Minister Steven Sim Chee Keong, Bhandari praised the role of Nepali workers in both economies and highlighted growing people-to-people connections as a foundation for stronger bilateral ties.
Karnali assembly committee demands full fiscal transparency
The Public Accounts Committee of the Karnali Province Assembly, chaired by Bindaman Bista, has asked for comprehensive data on revenue, spending, and fiscal transfers. It has also requested access to the audit management system maintained by the Provincial Account Controller’s Office to improve financial oversight.
FNCCI President meets ILO director-general to seek stronger support for Nepali workforce
Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), held a meeting with Gilbert F. Houngbo, the International Labour Organization’s director-general, in Geneva during the 113th International Labour Conference. As per FNCCI’s statement, the two discussed key labor and employment issues. Dhakal urged the ILO to enhance its support for both Nepali workers and businesses to ensure meaningful progress.
Depositors protest at ministry, demand Swarnalaxmi cooperative be declared problematic
Investors affected by the Swarnalaxmi Savings and Credit Cooperative in Kalimati, Kathmandu, demonstrated at the Ministry of Cooperatives and Poverty Alleviation in Bagmati Province. Traveling by hired buses to Hetauda, they demanded that the government formally classify the cooperative as problematic. Protesters accused authorities of long-standing inaction and warned of further agitation if their concerns were not addressed.
Gandaki Province sees drop in industrial capacity use
Nepal Rastra Bank’s latest report on economic activity reveals that industrial capacity utilization in Gandaki Province declined slightly—from 41.26% to 40.85%—in the first half of the current fiscal year. Despite the overall dip, output of several goods such as instant noodles, beer, ointments, processed milk, and mustard oil rose compared to the same period last year.
Broiler chick prices collapse, hatchery operators face major losses
Hatchery owners raising broiler chicks are facing heavy financial losses due to a dramatic fall in prices. With demand low, chicks that cost around Rs. 55 each to raise are now being sold for as little as Rs. 15–20—and in some cases, not selling at all. The trend has persisted for nearly two months, putting the sustainability of hatchery businesses at risk.
DoubleTree by Hilton Hotel project cuts cost by over Rs 1 billion
The Lalchan Group has revised the total investment for its DoubleTree by Hilton hotel project in Maharajgunj from Rs 3.9 billion to Rs 2.82 billion. The decision comes after cancelling plans to purchase additional land, meaning the five-star hotel will now be constructed solely on the land already owned.
Illegal extraction of sand and gravel surges along Mechi riverbank
Unauthorized mining activities have spread near Bahundangi Nature Park in Mechinagar, Jhapa, with several large mounds of illegally mined sand and gravel clearly visible. This continues despite a municipal order issued on Jestha 14 (May 28), banning extraction from nine designated riverbeds. Mining operations have exceeded permitted boundaries and continue unabated.
Kulman Ghising honored in Sarlahi for ending load-shedding
Kulman Ghising, former head of Nepal Electricity Authority, was honored in Sarlahi for his pivotal role in ending power outages and modernizing the electricity sector. At a civic felicitation ceremony in Harivan, Ghising remarked that while citizens appreciated his efforts, official government recognition was lacking.
Swabalamban microfinance offers 53,000 founder shares for sale
Swabalamban Microfinance Financial Institution has announced the sale of 53,000 founder shares at Rs. 435 per share. Initially, the shares are being offered to current founder shareholders. Any shares left unsold in this round will be made available to the public and other potential investors.
Tehrathum Power Company to issue 100% rights shares from June 30
Tehrathum Power Company Limited will open its 100 percent rights share offering on Asar 16 (June 30). Existing shareholders will be eligible to buy one new share for every share they currently hold, based on the company’s existing paid-up capital.
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