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 is currently marked by caution, volatility, and efforts at reform amid persistent challenges. The NEPSE index has declined for four consecutive days, accompanied by falling trade volumes and sectoral losses, signaling subdued investor confidence.
This is further compounded by reduced jewelry sales despite the wedding season, driven by fluctuating gold prices. Meanwhile, government inefficiencies remain stark, with over Rs 30 billion in arrears and stalled fiscal programs such as the “IT Decade.”
Although foreign investment commitments and hydropower PPAs appear promising, actual implementation lags. Regulatory bodies like SEBON and NEPSE are pushing for transparency and faster processes, but leadership controversies and political interference—especially in the appointment of the NRB governor—have sparked criticism.
The private sector, represented by FNCCI, is pushing for a narrative shift to facilitate growth. In the financial sector, profitability varies: non-life insurers suffer steep losses from natural disasters, while some firms like Himalayan Re and Taragaon Regency report modest gains.
Government plans for austerity in the next budget, a new “readiness filter” for project selection, and the introduction of Nepal’s first green bond suggest a pivot toward more focused and sustainable development.
NEPSE drops for fourth day, trading volume shrinks to Rs 8.73 billion
The Nepal Stock Exchange (NEPSE) index declined for the fourth consecutive session on Wednesday, falling by 13.96 points to close at 2,620. Trading activity also decreased, with turnover at Rs 8.73 billion compared to Rs 9.63 billion on Tuesday.
While 62 listed companies gained, 183 lost value, and one remained unchanged. The “Others” group rose by 2.46% thanks to gains in two reinsurance firms. The development bank sector also climbed 1.19%, whereas all other sectors recorded losses.
Banks announce new deposit interest rates for Jestha
Commercial banks have fixed new deposit interest rates effective from Thursday. Savings accounts will earn between 3.00% and 5.10%, maintaining a maximum 2% difference across deposit types. Most banks set the base rate at 3%, with NIC Asia Bank offering the highest minimum at 3.10%.
Gold price rises, silver falls in local market
Gold prices in Nepal increased by Rs 500 per tola on Wednesday, reaching Rs 185,300, while silver dropped by Rs 10 to Rs 1,960. Internationally, gold traded at USD 3,226 per ounce.
Gold jewelry sales dip amid price volatility
Sales of gold jewelry have dropped during the peak wedding season due to fluctuating prices. Traditionally, sales top 45 kilograms daily in months like Baishakh and Mangsir. However, traders report a slump this year as market conditions diverged from expectations.
Government arrears top Rs 30 billion in last fiscal year
Government entities across all levels have accumulated over Rs 30 billion in arrears for fiscal year 080/81. The Auditor General’s 62nd report notes total arrears at Rs 91.59 billion, with Rs 30.12 billion yet to be recovered. Federal government offices alone accounted for Rs 18.33 billion of the uncollected amount.
NEPSE asks listed firms to update financial data
NEPSE has directed all listed companies to update their financial and organizational information online. Firms missing details such as board members, financial reports, and contact info must log into the “Notes” section of NEPSE’s website and upload the required data.
Minister Dahal seeks South Korean investment in railway development
Transport Minister Devendra Dahal has encouraged South Korean involvement in Nepal’s railway expansion. Meeting with officials from Korea Rail (KORAIL), Dahal emphasized the strategic importance of rail infrastructure, urging collaboration on feasibility studies for religious and tourist destinations.
NEA to sign power purchase deals for 5,000 MW of hydropower
The Nepal Electricity Authority (NEA) is preparing to sign power purchase agreements for 5,000 MW of hydropower projects. A call for proposals has been issued for reservoir-based (PROR) and run-of-river (ROR) projects. NEA plans to finalize 1,859 MW from ROR and 3,107 MW from PROR sources, inviting developers with existing connection agreements to proceed with PPA signings.
Government plans budget cuts in fiscal year 2082/83
Due to revenue constraints, the government will adopt an austerity approach in the 2082/83 budget. Finance Minister Bishnu Paudel said the focus will be on high-impact areas, promoting private sector growth and employment. The aim is to maximize outcomes with limited resources.
Foreign investment commitments reach Rs 58 billion in nine months
Foreign investment pledges worth Rs 58 billion have been recorded in the first nine months of fiscal year 2081/82. Improved investment laws and business climate have contributed to this growth. However, experts warn that implementation may take decades, and actual production has yet to begin.
SEBON moves to fast-track IPO approvals after prolonged delay
After nearly two years of halted IPO issuance, the Securities Board of Nepal (SEBON) plans to implement a fast-track system, requiring sales managers to submit progress updates on pending IPOs. The delay was partly attributed to accusations of irregularities. A SEBON official said site visits are ongoing for project verification, and the process is time-consuming, prompting the call for additional documentation.
‘IT decade’ plan stalled in current fiscal year
The government’s ambition to launch the “IT Decade” in fiscal year 2081/82 has fallen short. Despite targets set in last year’s budget—including Rs 3 trillion in exports and 1.5 million jobs—the initiative has not taken off. Efforts to position Nepal as an IT hub remain stagnant.
New ‘readiness filter’ to guide project selection in next budget
To ensure effective allocation of resources, the government will introduce a “readiness filter” in the upcoming budget. This tool will prioritize projects based on urgency and feasibility, especially those funded by foreign aid. Finance Minister Paudel highlighted this strategy while presenting budget principles to parliament.
NRB governor appointment stalled amid political wrangling
The process to appoint a new Nepal Rastra Bank governor has stalled despite a reported agreement between Prime Minister KP Oli and Nepali Congress President Sher Bahadur Deuba to name Dr. Bishwo Poudel. The recommendation committee hasn’t met, and legal petitions have further complicated the matter, drawing public criticism.
Nepal Airlines Twin Otter resumes flights after year-long engine issue
Nepal Airlines has restored a Twin Otter aircraft (9N-ABT) to service after nearly a year of engine repairs. Grounded since June 2024 due to engine unavailability, it resumed flights on May 12, 2025. Another Twin Otter (9N-ABU) was also grounded for three months and returned to service in February 2025.
Non-life insurance profits plummet 54% due to floods
Nepal’s non-life insurers saw a 54.45% drop in profit over the first nine months of FY 2081/82, totaling Rs 2.41 billion, compared to Rs 5.29 billion last year. The decline is linked to heavy claims following the floods and landslides of September 2024, which caused Rs 46 billion in damages.
SEBON chair Shrestha under pressure six months into role
Santosh Narayan Shrestha, Chairman of SEBON, is under scrutiny less than six months after his appointment. Allegations of political favoritism and backdoor dealings have surfaced, with parties like the Maoist Center and Rastriya Swatantra Party questioning his neutrality. No concrete evidence has emerged yet.
Private sector perception must change, says FNCCI president Dhakal
FNCCI President Chandra Prasad Dhakal called for a shift in how the private sector is perceived. At a pre-budget discussion, he said the notion that businesses are only profit-driven is outdated. Dhakal stressed that private sector involvement is essential for meaningful economic progress at all government levels.
NIFRA gets green light for Rs 5 billion energy bond
SEBON has approved Nepal Infrastructure Bank’s proposal to issue a Rs 5 billion NIFRA Energy Bond. The seven-year bond will carry a 6% interest rate and is classified as a green bond, Nepal’s first of its kind aimed at promoting sustainable finance.
Himalayan Re reports 6.25% profit growth in Q3
Himalayan Reinsurance posted a 6.25% year-on-year profit increase in the third quarter, reaching Rs 989.3 million. The rise is credited to higher direct premium income, which grew from Rs 3.49 billion to Rs 4.18 billion.
Taragaon Regency (Hyatt) earns Rs 337.5 million in profit
Taragaon Regency, operator of Hyatt Hotel, posted Rs 337.5 million in profit over nine months. Revenue rose from Rs 1.13 billion to Rs 1.21 billion, with annual earnings per share at Rs 17.20.
MP Hari Dhakal accuses government of politicizing central bank
RSP lawmaker Hari Dhakal accused the government of trying to politically control Nepal Rastra Bank, criticizing the appointment process of Dr. Bishwo Poudel. Dhakal, who defeated Poudel in the last election, condemned the move as an attempt to empower a political rival.
National Life Insurance announces 15% dividend
National Life Insurance has declared a 15% dividend, including 10% cash and 5% bonus shares. Of the cash dividend, 0.789% will be deducted for taxes. The company’s paid-up capital stands at Rs 5.21 billion, and its share price is approximately Rs 620.
Insurance authority chief urges credibility boost
Nepal Insurance Authority Chair Sharad Ojha has urged insurers to rebuild public trust. At the authority’s 57th anniversary, he called for resolving issues around claims and improving transparency in both life and non-life insurance segments.
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