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 reflects a mix of cautious market sentiment, structural reform, and sectoral resilience. The NEPSE index dipped by 20.56 points amid widespread losses, though new listings and select energy stocks showed strong gains. Monetary authorities moved to manage excess liquidity, while key financial institutions such as NRN Infrastructure, Sana Kisan, and Fonepay announced significant dividends and expansion plans, signaling confidence in corporate fundamentals.
Bagmati Province emerged as an economic hub, with industrial loans exceeding Rs 1.2 trillion, a 5.2 percent GDP growth rate, and higher hotel occupancy fueled by tourism recovery—particularly from European markets. Government focus shifted toward sustainable growth, promoting health and wellness tourism and tightening spending through reduced election allocations.
Meanwhile, the insurance regulator sought better returns on reserves, MCA-Nepal advanced crucial power projects, and global cues showed mixed commodity trends, with gold prices slipping and silver edging up. Labor tensions at Hyatt Regency and a corruption trial underscored persistent governance and employment challenges within an otherwise diversifying economy.
NEPSE declines by 20.56 points as new listings jump 10 percent
The Nepal Stock Exchange (NEPSE) index fell by 20.56 points on Wednesday, closing at 2,544 points. Trading volume slightly rose to Rs 3.84 billion, compared to Rs 3.62 billion the previous day. Market sentiment remained negative, with 198 companies recording losses and only 49 gaining. The trading group suffered the steepest drop at 2.35 percent, while the manufacturing sector was the only gainer, up by 0.23 percent. Despite the broader market decline, four companies—including Bhugol Energy and three new listings—hit the 10 percent upper circuit.
Gold prices dip slightly while silver edges higher
Gold prices in Nepal fell by Rs 2,100 per tola on Wednesday, trading at Rs 244,300—down from Rs 246,400 the previous day, according to the Federation of Nepal Gold and Silver Dealers’ Association. Meanwhile, silver prices rose marginally by Rs 5 per tola to Rs 3,175 from Rs 3,170 on Tuesday.
NRN Infrastructure declares 42.105 percent dividend and 1:1 rights issue
NRN Infrastructure and Development Company has announced a total dividend of 42.105 percent, comprising 40 percent bonus shares and 2.105 percent cash for tax purposes. After the bonus shares are distributed, the company plans to issue a 1:1 rights share based on the revised capital. The Annual General Meeting is scheduled for December 19, with the book closure set for November 27, 2025.
NRB to withdraw Rs 50 billion to manage excess liquidity
The Nepal Rastra Bank (NRB) plans to absorb Rs 50 billion from the banking system on Wednesday using its Deposit Collection Instrument, aiming to manage excess liquidity seen after the Dashain and Tihar festivals. Total bank deposits have now surpassed Rs 7.4 trillion. The open market operation is open to A, B, and C class banks, with priority given to bids offering the lowest interest rates. The principal and interest, for a minimum bid size of Rs 100 million, are due on May 6, 2026.
Sana Kisan announces 15 percent dividend
Sana Kisan Bikas Laghubitta Bittiya Sanstha has declared a 15 percent dividend following approval from its Board of Directors. The distribution includes 14.25 percent in bonus shares and 0.75 percent in cash for tax purposes. The proposal awaits approval at the upcoming Annual General Meeting. The company’s current share price stands at Rs 854 per unit, reflecting its steady financial performance and commitment to rewarding shareholders.
Bagmati Province’s economy grows by 5.2 percent
Bagmati Province’s economic growth is projected at 5.2 percent for the current fiscal year, up from 3.7 percent last year. The province contributes 36.5 percent to Nepal’s total GDP. The service sector dominates with a 77.1 percent share, followed by agriculture at 11.8 percent and industry at 11.1 percent. While millet and vegetable production rose by 5.2 percent and 16.2 percent respectively, yields of key crops such as paddy, maize, and wheat dropped between 1.1 percent and 18.5 percent.
Fonepay approves 19 percent cash dividend and IPO plan
Fonepay’s Sixth Annual General Meeting (AGM) has endorsed a 19 percent cash dividend for shareholders and approved the issuance of an Initial Public Offering (IPO). The AGM also approved the financial statements for FY 2024/25, reappointed NBSM & Associates as auditors, and re-elected Sushin Joshi as an independent director. The company made the announcement through a press statement after concluding the meeting.
Pure Energy posts 71 percent profit growth in first quarter
Pure Energy Limited, a subsidiary of the Golyan Group, reported a 71 percent rise in net profit, earning Rs 9.05 million in Q1 FY 2025/26—up from Rs 5.2 million a year earlier. The company, which runs two 10-megawatt solar plants in Banke, generated Rs 65.5 million in revenue from electricity sales. Following its 2024 IPO, the firm’s paid-up capital reached Rs 800 million. Earnings per share climbed from Rs 3.29 to Rs 4.50, while net worth per share rose to Rs 101.61 from Rs 97.27.
Bagmati Province hotel occupancy rises to 57 percent
Hotels in Bagmati Province—Nepal’s top investment destination for hospitality—recorded an average occupancy rate of 57 percent in FY 2024/25, up from 51.9 percent a year earlier. The growth is attributed to an increase in both domestic and international visitors, benefiting trekking routes and restaurants. The highest occupancy, 67.8 percent, was seen from mid-October to early November, while the lowest, 44.7 percent, was between mid-January and mid-February. HAN President Binayak Shah noted that the temporary closure of several five-star hotels in Kathmandu following the Gen Z protest in September helped boost business for other large hotels.
MCA-Nepal begins land acquisition for 400 kV power line in Kathmandu
The Millennium Challenge Account Nepal (MCA-Nepal) Development Committee has launched the land acquisition process for its 400 kV electricity transmission project in Shankharapur Municipality, Kathmandu. The District Administration Office issued a public notice on Wednesday for land acquisition in Wards 1 and 2, covering areas between Ratmate and Lapsiphedi substations. This includes land previously part of Nanglebhare and Lapsiphedi Village Development Committees. The move marks a critical milestone in executing the multi-million-dollar transmission project.
Government bans construction near MCA-Nepal transmission line
The Cabinet has decided to prohibit any construction or tree planting within 23 meters on either side of the 400 kV transmission line being built by MCA-Nepal. The restriction covers about 1,381 hectares across 10 districts, including Nawalparasi, Palpa, Tanahun, and Kathmandu. The USD 697 million project, funded by a USD 500 million U.S. grant and USD 197 million from Nepal, aims to facilitate the construction of key transmission lines and road improvements.
Corruption trial begins over Pashupati crematorium procurement
The Special Court has begun hearings in a corruption case related to the procurement of equipment for the Pashupati Electric Crematorium. The Commission for the Investigation of Abuse of Authority (CIAA) filed the case on June 22 against 14 individuals and two companies, including former member secretary Dr. Milan Kumar Thapa. The CIAA alleges that the accused caused a loss of Rs 103.3 million by manipulating the tender process, with one machine valued at INR 3.2 million falsely quoted at Rs 15.2 million.
Labor ministry to repeal outdated 2009 Japan TITP directive
The Ministry of Labor, Employment, and Social Security is preparing to revoke the Japan Technical Intern Training Program (TITP) Worker Sending Directive, 2009. A study committee, led by Joint Secretary Pitambar Ghimire, is expected to recommend the directive’s repeal. The old regulation—based on Japan’s now-defunct JITCO framework—restricts worker dispatches to JITCO-listed agencies. With Japan set to launch the new Employment for Skill Development (ESD) Program in 2027, Nepal plans to update its rules accordingly to align with the revised framework.
Bagmati Province industrial loans rise to Rs 1.2 trillion
Industrial lending in Bagmati Province reached Rs 1.211 trillion by mid-June, marking a 13.8 percent increase compared to the previous year. According to the Nepal Rastra Bank’s annual report, industrial loans account for 36.4 percent of total credit issued within the province. Kathmandu District holds the majority share—Rs 1.119 trillion—since most corporate headquarters are based there, while Rasuwa District recorded the lowest investment at just Rs 130 million (0.01 percent).
Finance ministry cuts election commission budget to Rs 4.96 billion
The Ministry of Finance has approved Rs 4.96 billion for the upcoming House of Representatives (HoR) election scheduled for March 5, 2026—well below the Rs 7.81 billion requested by the Election Commission. A ministry official said the budget was reduced after consultations, though supplementary funds could be added if required. By comparison, the 2022 HoR election cost Rs 6.5 billion. Finance Minister Rameshore Khanal plans to fund the election by reallocating money from small-scale projects to avoid seeking foreign assistance.
European visitors lead in arrivals despite India’s higher numbers
Nepal welcomed 128,443 tourists in October 2025, up 3.3 percent year-on-year. While India led in absolute numbers with 17,298 visitors, European tourists made up the largest regional share at 31.6 percent (40,600 arrivals). South Asia followed with 22.6 percent (29,060 arrivals). Over the first ten months of 2025, total arrivals reached 943,716, with India topping the list (243,350), followed by the United States (93,985) and China (78,929).
Government promotes health and wellness tourism for economic growth
The government has started drafting a strategic concept paper to promote health and wellness tourism as a new economic growth sector, following a National Tourism Council decision four months ago. The initiative—led by former Tourism Minister Badri Prasad Pandey—aims to establish a sustainable and inclusive framework focusing on five pillars: infrastructure, human resources, investment, service quality, and global promotion. According to Joint Secretary Indu Ghimire, a 13-member subcommittee including officials from the Health and Forest ministries is preparing the initial policy blueprint to harness Nepal’s natural and Ayurvedic advantages.
Insurance authority plans to invest funds in fixed deposits
The Nepal Insurance Authority is preparing to allocate its idle bank funds into fixed deposits across multiple commercial and development banks. On Sunday, the Authority issued a sealed-bid notice inviting banks to offer their best interest rates within seven days. Bidders must disclose key financial indicators such as capital adequacy ratios, quarterly financials, non-performing assets, and establishment year. Although the total investment amount has not been disclosed, the initiative aims to generate higher returns from available cash reserves.
Hyatt Regency faces labor dispute over termination of 133 permanent employees
The Hyatt Regency Kathmandu (Taragaon Regency), closed since the Gen Z protest on September 9, has laid off 133 permanent workers, sparking controversy. The hotel cited Section 145 of the Labor Act 2017 and claimed ongoing repairs prevented further employment. However, the termination violates a prior agreement with three labor unions, which stipulated that employees would receive a minimum wage of Rs 12,170 per month during the closure and be rehired at their previous pay scale. The deal collapsed after the hotel demanded workers withdraw all personal labor lawsuits before reemployment.
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