KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic developments reflect a blend of fiscal stimulus, infrastructure expansion, and regulatory reform aimed at boosting investor confidence and modernizing public services. The NEPSE index’s 29-point surge following the monetary policy release signals strong market optimism, particularly in the banking and microfinance sectors.
Simultaneously, local initiatives like Kathmandu Metropolitan’s Rs 25.76 billion budget and the government’s plan to introduce 100 new electric buses show a commitment to urban development and sustainable mobility.
Meanwhile, legislative efforts to clarify mining rights and amend the renewable energy bill point to ongoing institutional reforms. However, challenges persist—such as a urea shortage during peak agricultural season and criticism of monetary policy from the automobile sector—highlighting the need for better coordination between policy intent and sectoral needs.
Overall, these developments showcase Nepal’s efforts to balance growth, governance, and sustainability amid ongoing economic and infrastructural transitions.
NEPSE index rises by 29 points following monetary policy release
The Nepal Stock Exchange (NEPSE) index saw a sharp increase on Sunday, the first trading day after the announcement of the monetary policy for fiscal year 2082/83 (2025/26). Investors showed heightened interest in banking and microfinance stocks, which led the market. The index climbed by 29 points to close at 2,760.80. In total, 32.59 million shares of 311 companies were traded through 105,415 transactions, amounting to a turnover of Rs 11.41 billion. The banking and microfinance sectors recorded the biggest gains, with increases of 3.37% and 3.50%, respectively.
Gold and silver prices climb in domestic market
The price of hallmark gold rose by Rs 1,100 per tola on Sunday, reaching Rs 192,900 from Rs 191,800 on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver also saw an increase, climbing to Rs 2,285 per tola from Rs 2,220 per tola over the same period.
Kathmandu city announces Rs 25.76 billion budget for FY 2025/26
Kathmandu Metropolitan City (KMC) presented its budget for the fiscal year 2082/83 (2025/26) during a municipal assembly session held at Rastriya Sabha Griha on Sunday. Deputy Mayor Sunita Dangol revealed that the city has allocated a total budget of Rs 25.76 billion, including Rs 650 million for external liabilities. Of the expected Rs 25.11 billion in the consolidated fund, Rs 20.12 billion will come from KMC’s internal revenues and existing bank reserves.
Lawmakers propose 15 changes to renewable energy bill
Fifteen amendment proposals affecting 72 clauses have been submitted to the Renewable Energy and Energy Efficiency Bill, which passed the National Assembly and is now under consideration in the House of Representatives. MPs Nisha Dangi and Manish Jha suggested detailing five federal-level rights, especially in clauses 4 and 5. The Infrastructure Development Committee is set to deliberate on the bill during this session.
NRB pulls Rs 5 billion from banking sector to manage excess liquidity
To manage surplus liquidity, Nepal Rastra Bank (NRB) withdrew Rs 5 billion from the banking system on Sunday. The central bank held a three-hour auction starting at 3 PM. The auction rules allowed bidding in units of Rs 100 million and Rs 50 million to avoid leftover amounts.
Single KYC update now valid across all banks and financial institutions
Customers will no longer need to update their Know Your Customer (KYC) details at multiple banks. Under the new monetary policy for fiscal year 2082/83 (2025/26), NRB has introduced a streamlined KYC process. Financial institutions will now access KYC information through the National ID system, eliminating the need for repetitive form submissions at different banks.
Committee led by prime minister lags in executing key decisions
A government report has flagged delays in implementing decisions made by the Prime Minister-led National Development Problem-Solving Committee. Of the 83 decisions taken in the last five meetings, only 27 have been fully enforced, leaving several issues unaddressed.
Government to build 200 suspension bridges in FY 2025/26
The Department of Local Infrastructure, under the Ministry of Urban Development, has announced plans to construct around 200 suspension bridges in fiscal year 2025/26. The initiative aims to fully replace ‘Tuin’ rope crossings, though some areas without ‘Tuin’ still demand modern suspension bridges. The ministry is actively promoting this infrastructure shift.
New law in progress to clarify mining rights across government tiers
The federal government has started drafting legislation to clearly define mining and mineral resource jurisdiction among the federal, provincial, and local levels. Despite constitutional provisions—granting extraction rights to the federal level, exploration to provinces, and conservation to local governments—ambiguity and lack of legal clarity have centralized authority with the federal government. This law aims to fix that imbalance.
Kathmandu Valley to receive 100 new electric buses before Dashain
The government will roll out 100 more electric buses in the Kathmandu Valley ahead of the Dashain festival. These buses, sourced from China, will operate under the public transport cooperative system. The initiative follows Finance Minister Bishnu Poudel’s budget announcement for 2025/26. Currently, 100 electric buses are already in operation in the valley.
Revised NS mark regulations extend license renewal period
The Nepal Standards (NS) Mark Third Amendment Regulations, 2082 (2025), have been officially implemented following their publication in the Nepal Gazette. Approved on Jestha 26 (June 9), the new rules allow industries holding NS licenses to renew them every three years, replacing the prior requirement for annual renewals after the initial three-year period.
Nepalese Embassy in New York promotes tourism to American audience
The Nepalese Embassy in New York has stepped up efforts to attract more American tourists to Nepal. On Friday, it hosted a discussion with local tourism stakeholders to highlight Nepal’s appeal. Commercial Counselor Dadhiram Bhandari emphasized Nepal’s year-round suitability for activities such as mountaineering, cultural exploration, wildlife safaris, and spiritual tourism.
Automobile association criticizes NRB’s monetary policy
The Nepal Automobile Importers and Manufacturers Association (NAIMA) has voiced dissatisfaction with Nepal Rastra Bank’s monetary policy for FY 2025/26. The group said their recommendations—such as revising vehicle loan ratios in line with international norms and considering vehicle types and market dynamics—were not incorporated. NAIMA argues the policy lacks long-term vision for balanced automotive sector development.
Tunnel construction at Siddhababa gains momentum
Work on the Siddhababa tunnel, part of the Butwal-Dobhan stretch of the Siddhartha Highway, has recently accelerated. The project was contracted to China State Construction Engineering Corporation in Falgun 2078 BS (March 2022), with a five-year completion target. So far, three years and four months have passed, and 57.51% of the physical construction has been completed, according to project updates.
Urea shortage hits late rice planters in Kailali despite improved supply
Despite an increase in fertilizer supply compared to last year, a shortage of urea has been reported in Kailali during the peak rice planting season. Farmers who began planting in early Ashad (mid-June) faced fewer issues, but those planting later are struggling to access urea. Ganesh Datta Joshi, Information Officer at the regional office of Agriculture Materials Company, said 11,762 tons of urea have been supplied this year, compared to 9,962 tons last year.
Nabil Bank marks 42nd anniversary, continues digital leadership
Nabil Bank has entered its 42nd year since its establishment in 1984. The bank has played a key role in modernizing Nepal’s banking system, advancing digital finance, and supporting the national economy. CEO Manoj Kumar Gyawali stated that the bank remains committed to responsible growth and innovation as it moves forward.
Bikash Hydropower IPO shares allotted to public
Prabhu Capital completed the allotment of Bikash Hydropower’s IPO shares in a formal event held on Sunday. Out of 2,942,760 shares available to the general public, 2,043,686 valid applications were received. A total of 294,276 individuals received 10 shares each.
CATL opens advanced battery production lines in Chongqing
CATL has officially launched two advanced battery pack production lines featuring CTP2.0 (Cell-to-Pack) technology at the Seres Super Factory in Chongqing. This is CATL’s first manufacturing base in the region and marks the debut of its ‘Factory-in-Factory’ (FIF) model, which closely integrates battery and vehicle production.
Joshi Hydropower to open rights share issuance from July 31
Joshi Hydropower Development Company Limited will begin its rights share issuance from Shrawan 15 (July 31). The offer will allow shareholders to purchase 0.65 new shares for every 1 share they currently own, equivalent to 65% of the company’s paid-up capital.
Bunglal Hydropower launches IPO for locals and migrant workers
Bunglal Hydropower opened its initial public offering (IPO) on Sunday, targeting residents of the project-affected areas and Nepali migrant workers abroad. The company is offering 2.905 million shares worth Rs 290.5 million, accounting for 35% of its Rs 830 million paid-up capital.
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