KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and governance landscape is reflecting both reform and strain, with the government implementing tighter regulations—from stricter oversight of precious metals trading to amendments in land use rules and the rollout of a strengthened National Building Code—to address systemic risks, enhance transparency, and improve disaster resilience.
At the same time, oversight bodies like the PPMO and Auditor General are exposing procurement irregularities and blacklisting firms, underscoring persistent issues in public sector accountability. The agricultural and food sectors show mixed outcomes, with subsidized seed distribution contrasting with limited paddy procurement that continues to frustrate farmers.
Meanwhile, major infrastructure and aviation updates—from TIA’s aggressive push to recover Rs 366 million in unpaid dues to Nepalgunj Airport’s commercial expansion—illustrate efforts to bolster institutional sustainability. Positive developments include rising tourist arrivals in the Annapurna region, new foreign investment coordination mechanisms, improved international mobility through Hong Kong’s visa waiver, and expanded welfare support for migrant workers’ families.
However, challenges persist in customs management, as seen in the six-year backlog of unclaimed cargo at Birgunj, reflecting operational inefficiencies that still burden Nepal’s trade and logistics systems.
FEB expands medical support to families of migrant workers
The Foreign Employment Board (FEB) has reported a rise in the number of migrant workers’ families receiving medical assistance. During the first quarter of fiscal year 2025/26, at least 97 families received financial help for treatment—an increase from 78 families during the same period last year. The FEB offers up to Rs 50,000 per patient for major illnesses such as cancer, heart disease, and kidney failure. Executive Director Dr. Dwarika Upreti said the program is designed to support spouses, children, parents, and—when the migrant is female—her in-laws.
PPMO blacklists 14 construction firms for contract violations
The Public Procurement Monitoring Office (PPMO) announced on Friday that 14 construction companies and suppliers have been blacklisted for periods ranging from one to two years. The decision follows recommendations from nine government agencies citing issues such as contract breaches, major construction or supply defects, failure to complete projects as agreed, and ignoring official correspondence. Companies including Laxman Construction and Prime Infrastructure are now barred from participating in government contracts for the duration of their blacklist period.
Gold price drops by Rs 500 per tola in domestic market
Gold prices in the domestic market fell by Rs 500 per tola on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is being traded at Rs 249,700 per tola, down from Tuesday’s rate of Rs 250,200. Silver prices also declined by Rs 60 per tola, with the federation listing Friday’s price at Rs 3,285 per tola.
Govt tightens rules on precious metals trade as part of grey list exit effort
The government has strengthened oversight of precious metals and gemstone trading as part of Nepal’s push to be removed from the Financial Action Task Force (FATF) grey list. The Inland Revenue Department issued a new directive aimed at boosting transparency and preventing financial crimes such as money laundering. Under the new rule, businesses dealing in gold, diamonds, platinum, and other precious items must conduct all transactions strictly through corporate bank accounts. Additionally, any individual purchase of Rs 1 million or above must be made from the buyer’s personal bank account, with an emphasis on electronic payments to improve traceability.
Finance Ministry creates focal unit to coordinate foreign investments
The Ministry of Finance has set up a dedicated Focal Unit within its International Coordination Division to streamline communication with foreign investors and international development finance institutions. The unit will take the lead in facilitating and coordinating all foreign investment matters linked to the Ministry, particularly those related to the banking and revenue sectors. Officials say the new structure is expected to improve cross-ministerial cooperation on investment-related issues.
Govt amends land use rules to permit subdivision of narrow plots
The government has revised the Land Use Regulations to allow the division of certain narrow plots that were previously prohibited from being subdivided. A former provision in Rule 12, Sub-rule 2, prevented the cadastral division of plots under 500 square meters when their length exceeded four times their width. The recent amendment removes this restriction, enabling these narrow land parcels to be divided and sold.
New building code comes into force to strengthen earthquake resilience
The government has enforced an updated National Building Code (NBC), replacing older standards considered costly and impractical. Published in the Gazette on Thursday, the revised code provides guidelines for the construction of buildings as well as underground structures, including dams and tunnels. According to Urban Development Minister Kulman Ghising, the new code aims to reduce casualties and property loss during future earthquakes. Key updates include a new seismic hazard map covering all 753 local units, improved soil classifications, and revised load combination formulas to enhance structural safety.
Revised building code takes effect, covering underground construction
The updated National Building Code (NBC) is now officially in effect following its publication in the Gazette. The Ministry of Urban Development announced that the code provides guidance not only for building construction but also for underground facilities such as hydropower tunnels, dams, and powerhouses. The ministry has urged engineers, local governments, and the public to fully adhere to the new standards.
Phedikhola Hydropower to issue 17.6 lakh shares in IPO
Phedikhola Hydropower Company is set to issue 1,760,000 ordinary shares to the public. NMB Capital Limited has been appointed as the issue manager for the IPO. The company’s authorized and issued capital stands at Rs 800 million. The offering represents 22 percent of the issued capital, with a total value of Rs 176 million at Rs 100 per share. Managing Director Prakash Chandra Dulal said the 4.3 MW project in Bhojpur, which costs around Rs 940 million, is expected to be completed by the end of November.
Nepal to host international tax conference from November 18
The Nepal Chamber of Tax Consultants will host an international tax conference in Kathmandu from November 18 to 21. The event aims to promote tax education, strengthen policy dialogue with government institutions, and encourage research and reforms in the tax sector. Chamber President Roshan Pokharel said the conference will highlight developments in Nepal’s tax system, connect domestic practitioners with international experts, and support Nepal’s positioning as a MICE tourism destination. The conference will feature 350 international participants and more than 200 local experts, officials, and policymakers.
TIA seeks payment of Rs 366 million in outstanding dues from airlines
Tribhuvan International Airport (TIA) is pressing several airlines to settle overdue service charges amounting to more than Rs 366 million. General Manager Hansa Raj Pandey said the unpaid amounts include dues from both active and defunct carriers. Nepal Airlines Corporation owes the largest share at Rs 209.9 million, followed by Yeti Airlines with Rs 102.4 million, and Indian carrier SpiceJet with over Rs 50 million. TIA has warned that aircraft could be grounded and flights suspended if payments are not initiated promptly.
Annapurna Conservation Area records highest tourist numbers in 2025
The Annapurna Conservation Area (ACAP) welcomed 246,575 foreign tourists between January and October 2025—exceeding the total arrivals recorded in the whole previous year. Of these, 146,968 visitors came from South Asian nations and 99,607 from other countries. ACAP Chief Rabin Kadariya noted that the area has been steadily recovering since its lowest point in 2020, when only 18,836 tourists visited. April was the busiest month this year, attracting 44,763 tourists. Established in 1986, ACAP is Nepal’s largest protected area, spanning parts of the Manang, Kaski, Lamjung, and Myagdi districts.
Hong Kong removes transit visa requirement for Nepali travelers
Hong Kong has lifted the mandatory transit visa requirement for Nepali passport holders traveling through Hong Kong International Airport. The change, effective November 15, 2025, was announced by the Consulate General of Nepal in Hong Kong, which attributed the development to sustained diplomatic engagement. Nepali travelers had been required to obtain a transit visa since June 2005, often encountering delays and inconvenience. The waiver is expected to significantly ease international travel for Nepalis.
Nepalgunj distributes subsidized wheat seeds to 177 farmers
Nepalgunj Sub-Metropolitan City has provided improved wheat seeds at a 50 percent subsidy to 177 farmers, cooperatives, and ward offices. Under the Agriculture Section’s distribution program, 11,790 kilograms of high-quality seed were handed out to applicants who responded to a seven-day public notice. Section Chief Ambika Rijal said the initiative is part of a broader effort to boost local food grain production.
ACAP disburses Rs 1.3 million to families affected by snow leopard attacks
The Annapurna Conservation Area Project (ACAP) office in Jomsom has distributed Rs 1.3 million in compensation to 26 households in Mustang affected by wildlife attacks. The relief covers the loss of 111 livestock—including yaks, goats, and horses—killed by snow leopards and common leopards during fiscal years 2023/24 and 2024/25. ACAP Chief Rajesh Gupta handed over the compensation vouchers during an awareness program on Thursday. The payments were made from ACAP’s emergency relief fund to clear pending cases from the past two years.
FMTC purchases only 1,800 quintals of paddy from Banke farmers
The Nepalgunj branch of the Food Management and Trading Company (FMTC) has procured only 1,800 quintals of paddy from Banke farmers since procurement began on November 9. Chief Ram Sharan Lamichhane said the purchase includes 1,400 quintals of medium-grade paddy and 400 quintals of coarse paddy, far below the target of 5,000 and 15,000 quintals respectively. Farmers expressed frustration over the company’s policy of purchasing only 40 quintals per farmer, forcing them to sell the remainder to private traders at prices roughly Rs 1,000 lower than the government’s support price of Rs 3,628.33 per quintal.
Nepal and India revise transit treaty to allow cargo movement to Biratnagar and Bhairahawa
Nepal and India have amended the Transit Treaty Protocol, enabling all categories of cargo to be transported from the ports of Kolkata and Visakhapatnam to the Biratnagar and Bhairahawa customs points. Previously, only select bulk cargo types were allowed. The updated protocol was exchanged between Nepal’s Industry, Commerce, and Supplies Minister Anil Kumar Sinha and India’s Commerce Minister Piyush Goyal during a ceremony in New Delhi on Thursday. The revision will facilitate direct rail transport of goods to Biratnagar, ending the costly road transfer from Jogbani.
Audit report finds Rs 4.1 million in irregularities in Lamkichuha Municipality
The Office of the Auditor General has reported procurement irregularities amounting to Rs 4.1 million in Lamkichuha Municipality. The report notes that municipal officials split projects to sidestep competitive bidding requirements—for example, dividing a Rs 2.1 million hall renovation project into four separate direct purchases. A gym construction project was similarly split into two purchases totaling Rs 1.9 million. The audit criticized this practice, saying it violates the Public Procurement Act and inflates costs compared to competitive bidding or community-based project execution.
Mechi Customs Office collects 95 percent of revenue target in first quarter
The Mechi Customs Office in Kakarbhitta achieved 95 percent of its revenue target for the first quarter of fiscal year 2025/26, collecting Rs 4.152 billion out of the target Rs 4.362 billion. Information Officer Ishwor Kumar Humagain said the office surpassed its target in October, achieving 101 percent for that month. Major imports during the period included petroleum products, vehicles, and raw materials, while exports mainly comprised cardamom, tea, and iron sheets.
185 shipping containers left unclaimed at Birgunj Customs for six years
Birgunj Customs Office has 185 abandoned shipping containers that have remained at the dry port since before the COVID-19 pandemic began in 2019. Chief Customs Administrator Bishnu Prasad Gyawali said the containers—imported from third countries—were left behind because the consignees could not be traced. Many contain perishable or controlled items, including 90 containers of peas, 61 of dates, 10 of poppy seeds, and nine of betel nuts. Authorities are waiting for laboratory reports to determine whether the contents should be destroyed, as no one has responded to multiple auction notices.
Nepalgunj Airport to lease 52 commercial spaces in new terminal
The new three-story terminal building at Nepalgunj Airport is preparing to lease 52 commercial shutters, aiming to develop the airport as a business hub. Project Chief Nal Bikram Thapa said bidding for shops, cafés, and restaurants will be invited soon. Revenue generated from commercial rentals, parking, and advertising will help improve the airport’s financial sustainability. Constructed by Sharma & Company at a cost of Rs 3 billion, the terminal can handle around 700 passengers per hour and is set for a test operation in late November.
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