KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic indicators and policy updates reflect a mix of cautious optimism and persistent structural challenges. The NEPSE index posted a marginal gain, buoyed by strong investor interest in hydropower stocks, underscoring the sector’s growing appeal. Simultaneously, gold prices hit near-record highs, signaling continued demand for safe-haven assets amid financial uncertainty.
On the macroeconomic front, the government’s revenue and expenditure have grown but still fall short of targets, revealing inefficiencies in fiscal execution. The delayed start of parliamentary budget discussions due to opposition protests highlights ongoing political friction.
However, positive developments such as the start of electricity exports to Bangladesh, an uptick in foreign labor permits, increased milk production due to favorable climate conditions, and Nepal’s emerging appeal as a destination for medical tourism indicate underlying economic resilience.
Meanwhile, falling deposit interest rates, excess liquidity managed by the central bank, and provincial budget presentations suggest a shift toward cautious monetary and fiscal stabilization. Infrastructure remains a mixed bag—with bridge completions and flyover openings balanced by highway construction delays.
Overall, Nepal appears to be navigating a path of gradual recovery, with sectoral strengths offsetting governance and fiscal execution weaknesses.
NEPSE rises slightly as hydropower stocks continue to lead
The NEPSE index inched up by 0.47 points on Sunday, closing at 2,655. Despite a drop in transaction volume compared to the previous trading session, the market showed positive signs. Turnover stood at Rs 11.44 billion, down from Rs 12.51 billion the day before. Prices of 90 listed companies increased while 157 declined. Investor interest remained high in the hydropower sector, which gained an additional 0.96% after a 5.53% rise last week. Hydropower companies topped the list of best performers for the day.
Gold price climbs by Rs 7,500 in just five days
Gold prices have surged by Rs 7,500 per tola over the past five days. According to the Federation of Nepal Gold and Silver Dealers Association, the price rose from Rs 190,000 last Tuesday to Rs 197,700 on Sunday. This is close to the all-time high of Rs 197,900 set on April 22. Meanwhile, silver remains unchanged at Rs 2,165 per tola.
Nepal starts exporting 40 MW of electricity to Bangladesh
Nepal has begun exporting 40 megawatts of electricity to Bangladesh through Indian transmission lines. The export, which started at midnight on June 15, marks a continuation of last year’s trade, when Nepal first supplied electricity to Bangladesh for 12 hours on November 30, 2024.
Parliament begins budget discussion after 17-day delay amid opposition protests
Seventeen days after the government tabled the national budget for the fiscal year 2025/26, the House of Representatives began deliberations on Sunday. Debate had been stalled due to continuous obstruction from the main opposition. During the session, Finance Minister Bishnu Paudel formally proposed a general discussion on the annual revenue and expenditure estimates.
Government income and spending grow but still fall short of targets
While government revenue and expenditure have both increased this fiscal year, they remain below projected targets. According to the Office of the Auditor General, revenue rose by 11%, and spending increased by 9%, but the gap between budgeted and actual figures persists.
Koshi Province unveils Rs 3.58 billion budget for upcoming fiscal year
The Koshi Province government has presented a budget of Rs 3.58 billion for fiscal year 2025/26. Finance and Planning Minister Ram Bahadur Magar tabled the budget on Sunday. The proposal includes Rs 1.86 billion for recurrent spending, Rs 1.71 billion for capital projects, and Rs 10 million for financial management.
Deposit interest rates fall again at commercial banks
Interest rates on deposits offered by commercial banks have declined again for June/July. While 15 banks have kept rates unchanged from the previous month, five—Agricultural Development Bank, NMB Bank, NIC Asia Bank, Kumari Bank, and Everest Bank—have reduced them further.
NRB governor pledges to maintain continuity in monetary policy
Nepal Rastra Bank Governor Dr. Biswo Poudel has reaffirmed his commitment to maintaining economic and banking sector stability. Speaking at a farewell event for former Governor Maha Prasad Adhikari organized by the Nepal Bankers’ Association, Dr. Poudel said most existing policies and systems will remain unchanged.
NRB to absorb Rs 40 billion to ease excess liquidity in market
Nepal Rastra Bank has announced it will withdraw Rs 40 billion from the banking system on Sunday to manage surplus liquidity. The funds will be withdrawn using deposit collection tools with a 42-day maturity. Despite ongoing liquidity surpluses, the central bank has been regularly conducting such withdrawals twice a week.
Nepal begins receiving foreign patients for medical treatment
While Nepalis once traveled abroad for basic healthcare, Nepal is now attracting foreign nationals for medical services. Over the past decade, the country’s healthcare system has significantly improved with the implementation of new laws and reforms. Experts believe that full enforcement of these policies could further boost Nepal’s medical sector.
Milk production rises unusually during off-season months
Milk output has seen an unexpected rise during the off-season period from April to August. Krishna Prasad Aryal, acting chief of the Lumbini Distribution Project, attributed the increase to early rains that led to ample green fodder and a rise in commercial dairy farming. Due to low demand, a portion of the milk had to be diverted for conversion into powder.
Nepal’s economy projected to reach Rs 6.1 trillion this year
Nepal’s economy is expected to reach Rs 6.107 trillion in the current fiscal year, according to Bagmati Province’s annual economic survey. The province is projected to contribute 36.52% to the national GDP, with an estimated economic growth rate of 5.18% for FY 2024/25.
Over 2,000 foreign nationals receive work permits in Nepal
In the first ten months of the fiscal year, 2,041 foreigners were approved to work in Nepal. The Department of Labor issued 710 new and 1,331 renewed permits from mid-July to mid-March under provisions that allow hiring foreign workers in sectors with skill shortages.
Paddy plantation begins in hill districts as monsoon advances
With the monsoon setting in, paddy planting has begun in the hill regions of Nepal. According to the Nepal Agricultural Research Council (NARC), farming activities are underway in areas with canal irrigation and stream access, especially in Dolakha, Lamjung, Banepa, and Bhaktapur. NARC scientist Sushil Subedi noted that planting in mid-hill irrigated areas usually starts between late May and late June, while in the Tarai, it typically begins in late June.
Gwarko flyover to open for traffic from June 20
Nepal’s first flyover, built in Gwarko, Lalitpur, will open to the public on June 20. With most construction complete, only blacktopping and lane divider installations are pending. The Department of Roads said the remaining work will be wrapped up within a few days.
Bagmati Province builds 147 bridges since federal restructuring
Since its formation under federalism in 2015, the Bagmati Province Government has completed 147 road bridges, including 28 suspension and truss bridges. This data is part of the province’s 2024/25 economic survey presented to the Provincial Assembly by Minister Kundan Raj Kafle.
1.5 km stretch of Madan Bhandari Highway remains incomplete
Out of the 120 km long Madan Bhandari Highway connecting Sindhuli and Hetauda, 1.5 km remains unconstructed. Although the road has been in use for two years, travel is still difficult in several sections. Previous delays were caused by local disputes, but current hurdles are financial.
Sudurpaschim’s revenue balance remains in deficit
Although Sudurpaschim Province has a positive overall budget balance of 1.07% of its gross provincial product, its revenue balance remains negative by 1.64%. This was revealed in the economic survey presented by Minister for Economic Affairs Bahadur Singh Thapa.
Golchha Group companies report Rs 17.68 billion in trade
Two subsidiaries of Golchha Group—Hansaraj Hulaschand & Co and Hulas Auto Craft—have recorded a combined trade of Rs 17.68 billion in the first nine months of the current fiscal year. Hansaraj Hulaschand reported Rs 11.22 billion in transactions, while Hulas Auto Craft contributed Rs 6.46 billion.
Wild honey harvest in Myagdi drops by 75 percent
Wild honey production in Myagdi district has plummeted by 75% compared to last year. Honey hunter Lok Bahadur Paija of Annapurna Rural Municipality–5 said only 200 liters were collected this year, down from 1,000 liters in previous seasons. His team harvested honey from cliffs in Chhahari and Chhisko Taun over two days.
Trade Tower IPO allotment completed
The IPO of Trade Tower Company was allotted on Sunday. Out of over 2.07 million applicants, 329,000 were allotted 10 shares each. The company had issued 3.29 million shares with a face value of Rs 100 from May 28 to June 3, amounting to over Rs 329.65 million.
Daram Khola Hydropower to issue IPO from June 23
Daram Khola Hydropower Energy is set to open its IPO on June 23. In the first phase, shares will be issued to migrant workers and project-affected locals. The company plans to float 38.33% of its Rs 1.03 billion capital. Of the total 3.95 million shares, 58,390 are for overseas workers and 1,030,500 for affected locals.
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