KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is showing a mix of resilience and recalibration, with strong profit growth among commercial banks and major export developments in energy and agriculture, even as the capital market faces a sustained decline. The Nepal Stock Exchange recorded its third consecutive loss, indicating investor caution, while Nepal Rastra Bank’s planned Rs 25 billion liquidity withdrawal and a targeted audit of top banks reflect tighter regulatory oversight.
In the real sector, Nepal is set to export 1,000 MW of electricity to India and has expanded rural electrification, while Karnali Province has tapped into European markets with spice exports. Meanwhile, corporate earnings present a mixed picture—Shivam Cements posted a threefold profit rise, contrasting with Global IME Bank’s modest gain. Environmental and infrastructure progress, including carbon sequestration initiatives and reopened transport corridors, further highlight efforts to balance growth, sustainability, and governance.
NEPSE declines for third straight day on Wednesday
The Nepal Stock Exchange (NEPSE) on Wednesday continued its downward trend for the third consecutive trading day, dropping by 10.50 points (0.37%) to close at 2,785.74. This follows a previous drop of 26.22 points. The index opened at 2,799.06, hit a high of 2,813.59 during intraday trading, and fell to a low of 2,784.49. The day’s total turnover reached Rs. 6.16 billion, with 15,847,873 shares changing hands across 321 companies in 70,099 transactions. The overall market capitalization stood at Rs. 4.65 trillion, while the float market capitalization was Rs. 1.57 trillion.
10 commercial banks report profit growth
Ten commercial banks have released their financial statements for the fiscal year 2024/25, showing overall improvement in financial health, according to preliminary data. Aggressive loan collection measures have helped reduce non-performing loans (NPLs), contributing to higher profits for most banks. Among the banks, Nabil Bank recorded the highest net profit of Rs 7.12 billion, up from Rs 6.19 billion in the previous fiscal year. In terms of profit growth, Kumari Bank saw the sharpest increase, reporting a net profit of Rs 2.11 billion, compared to just Rs 46 million the year before, a growth of 45,829%. Other notable net profits include Everest Bank (Rs 4.92 billion), Himalayan Bank (Rs 1.51 billion), Agricultural Development Bank (Rs 3.82 billion), Sanima Bank (Rs 2.57 billion), Siddhartha Bank (Rs 3.40 billion), NMB Bank (Rs 3.28 billion), Machhapuchhre Bank (Rs 2.01 billion), and Citizens Bank (Rs 1.29 billion).
NRB withdrawing Rs 25 billion to maintain liquidity
Nepal Rastra Bank (NRB) plans to withdraw Rs 25 billion from the financial system on Wednesday to maintain adequate liquidity, the central bank announced. The withdrawal will be conducted through the deposit collection instrument, targeting deposits until September 7. Bids will be accepted in multiples of Rs 50 million for amounts above Rs 100 million, with any remaining balance allocated proportionally to reach the total call amount. Only banks and financial institutions holding an NRB license under categories ‘A’, ‘B’, and ‘C’ are eligible to participate in the bidding process, according to the central bank.
Nepal to export 1,000 MW electricity to India: PM Oli
Prime Minister KP Sharma Oli has announced that Nepal will export 1,000 megawatts of electricity to India. In a social media post on Wednesday, PM Oli stated that the export is expected to generate Rs 80.27 billion in revenue for Nepal. “We are exporting 1,000 megawatts of electricity to India. This will bring Rs 80.27 billion in income to Nepal,” he wrote.
Infrastructure construction of Myagdi’s Dandakhet Substation completed
The infrastructure construction of the electricity substation in Dandakhet, Malika Rural Municipality-7, Myagdi, has been completed. The installation of equipment has now begun as part of the Dandakhet-Rahughat Transmission Line Project, led by the Nepal Electricity Authority. Project Chief Roshan Agrawal stated that the land and building to house the substation equipment are ready. “The installation of 133/33 kV, 30 MVA AIS technology equipment at the Dandakhet substation, built on 51 ropani of land, is nearing completion,” he said.
Ginger, turmeric from Karnali Province exported to Europe
Karnali Province exported 365 metric tonnes of dried ginger and turmeric to Europe in the last fiscal year, according to the Ministry of Land Management, Agriculture and Cooperatives. Agricultural Development Officer Purna Bahadur Thapa said the locally grown, high-quality ginger and turmeric are processed and certified to meet international standards before being shipped to various countries, including Germany. Ginger is primarily produced in Salyan, Rukum (Paschim), and eastern Surkhet, while turmeric is cultivated in the Chinchu area of Surkhet district. The ministry stated that of the more than Rs 18.47 billion allocated by the provincial government for the agriculture sector since the province’s formation, over Rs 14 billion has already been invested.
Gold prices down marginally
Gold prices saw a marginal decline on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold decreased by Rs 100 per tola. With this, the price of gold has been set at Rs 196,700 per tola. The price of silver has gone up by Rs 20 and was sold at Rs 2,325 per tola.
Gold traders ask PM Oli to review luxury tax and VAT rates
Gold and jewelry traders drew Prime Minister KP Sharma Oli’s attention to the new taxes introduced in the current fiscal year, a 2% luxury tax on gold and a 13% value-added tax on diamonds. A delegation led by Kisan Sunar, president of the Nepal Gold, Silver, Gem and Jewellery Federation, met the prime minister to seek a long-term solution, including the formulation of business-friendly policies and guidelines. According to the Federation, the prime minister assured the delegation that the issues raised would be seriously studied through the relevant ministries and necessary steps would be taken to address them.
NRB selects 10 major Nepali banks for loan portfolio audit
Nepal Rastra Bank (NRB) has chosen 10 large commercial banks for a comprehensive audit of their loan portfolios, following the International Monetary Fund’s (IMF) recommendation. The selection was made based on the banks’ financial health as of mid-April this year. The banks include Global IME Bank, Nabil Bank, Nepal Investment Mega Bank, Rastriya Banijya Bank, Kumari Bank, Laxmi Sunrise Bank, Prabhu Bank, Nepal Bank Limited, Himalayan Bank, and NIC Asia Bank. NRB has appointed the Bangladeshi audit firm Howladar Yunus & Co. to evaluate the loan quality of these institutions.
Kaligandaki Corridor reopens after four-day obstruction
The Baglung section of the Kaligandaki Corridor, which was blocked for four days by a massive landslide, has reopened to traffic. The landslide occurred on Saturday at Kalakhola Bagar in Baglung Municipality-13 following continuous rainfall. Efforts to clear the debris began on Sunday but were delayed due to the scale of the landslide. According to Police Inspector Keshav Thapa of the District Police Office, Baglung, the road was finally opened on Tuesday afternoon after coordination between the Road Corridor Project and local contractors.
Shivam Cements’ Q4 profit triples
Shivam Cements Limited (SHIVM) reported a net profit of Rs. 79.41 crore for the fourth quarter of FY 2024/25, marking a significant 205.85% increase from Rs. 25.96 crore in the same period last year. This sharp profit growth came despite a marginal 0.78% rise in operating revenue, which stood at Rs. 7.76 billion compared to Rs. 7.70 billion previously. Earnings per share surged to Rs. 14.55 from Rs. 5.16 a year earlier.
Global IME Bank posts modest Q4 profit growth
Global IME Bank Limited (GBIME) reported a net profit of Rs. 6.20 billion for the fourth quarter of FY 2024/25, a slight 1.10% increase from Rs. 6.13 billion in the same period last year. Annualized earnings per share stood at Rs. 16.28, slightly below last year’s Rs. 16.99, while the price-to-earnings ratio at the end of the quarter was 15.95 times, based on a market price of Rs. 259.57. The bank’s retained earnings surged 961.60%, mainly due to higher distributable profits. Paid-up capital rose 5.50% to Rs. 38.11 billion, while reserves fell slightly by 2.27 percent.
Electricity service expanded in remote areas of Baitadi
Electricity service has been extended to Shivanath Rural Municipality in the remote Talloswarad region of Baitadi district. The power supply has now reached Ward No. 2, Sharmali, and Ward No. 3, Saugada. According to Shivanath Rural Municipality Chair Karna Singh Saud, 58 households in Sharmali—located along the border with India—have received electricity for the first time. Electrification work is also ongoing in Saugada, Ward No. 3, and will soon begin in Wards No. 1 and 4. Wards No. 5 and 6 have already been electrified. With the arrival of electricity, grain mills and grinding mills have also started operating in the area, providing much-needed services to the local population.
Omni Group owes millions in airfare to Nepal Airlines
Omni Group has reportedly failed to pay millions in airfare to Nepal Airlines, stemming from chartered flights during the COVID-19 pandemic. Records show that under the title “China (COVID) 2020,” Nepal Airlines has a pending receivable of Rs 19.4 million from Omni Group and the government. During the pandemic, a high-level COVID-19 prevention and control coordination committee, led by then-Deputy Prime Minister Ishwar Pokharel under KP Oli’s government, approved the procurement of medical supplies. Omni Group participated in this process and chartered a Nepal Airlines flight on March 28, 2020, to transport supplies to China. The flight was reportedly attended by then-Minister for Tourism and Civil Aviation Yogesh Bhattarai.
Nepal to receive over Rs 10 billion from carbon sequestration by 2028
Minister for Forests and Environment Ain Bahadur Shahi Thakuri has said that Nepal has made significant progress in forest expansion and carbon sequestration. Addressing the House of Representatives on Wednesday, Minister Thakuri stated that community forest management, expansion of protected areas, and national forest policies have yielded positive results in increasing forest cover. In response to questions from CPN (Maoist Centre) lawmaker Madhav Sapkota, Minister Thakuri said that work has begun to secure more than Rs 10 billion by 2028 in return for carbon storage. According to the latest data, forests cover about 45.31% of Nepal’s total land area, which rises to 46.08% when including other wooded land. With forest expansion, carbon sequestration has also achieved notable progress.
FNCCI Vice President Hemraj Dhakal appointed director of SEBON
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Vice President Hemraj Dhakal has been appointed as a director of the Securities Board of Nepal (SEBON). As per the board’s provisions, FNCCI holds one representative seat on SEBON’s governing body. The position was previously held by FNCCI’s Chief Executive Officer, Gokarna Awasthi, who resigned from the role.
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