KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and infrastructure landscape is undergoing notable transitions, marked by a buoyant stock market, accelerating digitalization, and shifting investment priorities.
On the financial front, the NEPSE index saw a significant rise alongside growing transaction volumes, signaling renewed investor confidence, while regulatory changes such as mandatory digital payments for public entities and revised insurance sales targets reflect the government’s digital-first approach.
Meanwhile, the phase-out of 3G services and the expansion of EV infrastructure highlight shifts in technology adoption. In the energy sector, political debate over progress, calls for structural reform, and unresolved licensing and export delays underscore governance challenges.
Infrastructure projects like the Siddhababa Tunnel are progressing steadily, yet concerns remain about agricultural stagnation, particularly in Madhesh, and misgovernance, as seen in the abuse of faceless systems. These developments collectively reveal a country at a crossroads—modernizing rapidly, but still grappling with institutional bottlenecks and uneven sectoral performance.
All indices rise in Tuesday’s stock market
All major stock market indicators climbed on Tuesday, with the NEPSE index gaining 34.46 points (+1.26%) to close at 2,760. Trading volume picked up as well, reaching NPR 9.41 billion, up from NPR 8.17 billion on Monday. Share prices grew for 209 companies, while only 39 recorded losses. All sectoral indices ended higher, led by the banking sector’s 1.81% surge.
Banking sector reform taskforce submits final report
A taskforce chaired by Rewat Bahadur Karki has submitted its final recommendations to NRB Governor Biswo Poudel. The proposals include liberalising banking policies, revising directed-lending norms, categorising banks based on capital and performance, and making working-capital loan guidelines more flexible.
Gold holds steady while silver dips
Gold prices in Nepal remained unchanged on Tuesday, with hallmark gold trading at NPR 193,300 per tola. However, silver prices dropped slightly, falling NPR 40 to NPR 2,275 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Govt spends 32% of capital budget in final 29 days of fiscal year
The Office of the Comptroller General reports that 32% of the FY 2081/82 capital budget was disbursed in the last 29 days of the fiscal year. As of Asar 29 (July 13), capital spending reached NPR 211.35 billion, up from NPR 143.38 billion on Jestha 31 (June 14), with NPR 67.96 billion spent in Asar alone.
Finance Ministry mandates digital payments by public bodies
Starting Shrawan 1 (July 17), all payments by ministries, the NRB, public institutions, boards, and committees must be made electronically, the Finance Ministry has announced. This directive aligns with the FY 2082/83 budget’s push to integrate public payments into digital platforms.
Faceless system misused for bribes at office of company registrar
The online “faceless” service system at the Office of the Company Registrar was intended to remove physical interactions. Instead, users report that officials disable the system to solicit bribes. “Depending on the company’s paid-up capital, bribes range from 0.3% to 1%,” with applicants even demanding a 10% bribe to access a legally mandated 90% fee-waiver.
Hydropower IPO ban was a mistake, says Deuba
Former Prime Minister and Nepali Congress President Sher Bahadur Deuba has criticised the suspension of hydropower IPOs as misguided. Speaking at IPPAN’s 23rd Annual General Meeting in Kathmandu, he urged the Securities Board of Nepal to resume approval of such IPOs and called for a secure, hassle-free investment climate.
IPPAN chief calls for immediate implementation of ‘sunset law’ in energy sector
Ganesh Karki, president of the Independent Power Producers’ Association Nepal, urged urgent enforcement of a “Sunset Law” at IPPAN’s 23rd AGM in Kathmandu. He emphasised that although the Energy Development Roadmap, 2081, is critical for national prosperity, its implementation remains uncertain.
Siddhababa tunnel project sees rapid progress
Construction on the Siddhababa Tunnel—a national pride project along the Siddhartha Highway—is advancing quickly following a major breakthrough in Palpa’s Tinau Rural Municipality-3. Project engineer Sabita Gyawali reported 57.51% physical progress and 51.1% financial completion.
30 firms receive e-commerce licenses in Nepal
Under the Electronic Commerce Act, 2081, the Department of Commerce, Supplies, and Consumer Protection granted online trading licenses to 30 firms out of 315 applicants. Director Bharat Prasad Acharya noted that many applicants were asked to submit missing documents before approval.
Thai AirAsia to resume direct Bangkok–Bhairahawa flights
Thai AirAsia is set to restart direct flights between Bangkok and Bhairahawa’s Gautam Buddha International Airport under the winter schedule. Approved by the Civil Aviation Authority of Nepal, the service returns after its initial launch on Kartik 18, 2081 BS (November 3, 2024) was subsequently suspended.
Janardan Sharma urges end to hoarding of river licences
CPN (Maoist Centre) Deputy General Secretary Janardan Sharma called for transparent allocation of hydropower licences at IPPAN’s AGM. He warned that monopolising licences would undermine public investment and national development goals, urging scrutiny to ensure capable investors are selected.
Buffalo meat export to China delayed despite agreement
Despite a bilateral deal reached during PM Oli’s visit to China about 18 months ago, and a Poush 2080 agreement between Himalayan Food International and Shanghai Jian Food, Nepal has yet to begin exporting buffalo meat to China.
Insurance firms must now include renewals in sales targets
The Insurance Board has directed life and micro-insurance companies to count renewal and term insurance premiums toward their business targets. Previously, only first-time premiums were considered in monthly, quarterly, and annual performance metrics.
3G service nearing phase-out as 4G users surge in Nepal
Nepal’s 3G mobile service is nearing its end. Ncell has already begun phasing it out, and Nepal Telecom is reviewing its necessity in its upcoming annual program. With more than 25 million 4G users nationwide, 3G usage has plummeted to between 600,000 and 700,000.
Minister Khadka questions Maoists’ 12-year energy track record
At IPPAN’s general assembly, Energy Minister Deepak Khadka challenged the Maoist leadership’s achievements in the energy sector over the past 12 years. His remarks came after Janardan Sharma criticized Khadka for delays in power purchase agreements and in tackling license hoarding. During the event, Sharma even asked Khadka to put down his phone and pay attention.
Madhesh Province reports lowest paddy planting rate
Despite being called Nepal’s “Rice Capital,” Madhesh Province has the lowest rate of paddy plantation this season. By Asar 29, only 33.78%—or 125,888 hectares—of the expected 372,645 hectares had been planted, according to the Center for Crop Development and Agricultural Biodiversity Conservation.
Reliance launches Campa Cola in Nepal with CG Group
Reliance Industries, in partnership with Nepal’s Chaudhary Group, has launched Campa Cola in the Nepali market. The popular Indian soft drink, produced by Reliance Consumer Products Ltd., is known for sponsoring major events like the IPL.
Barun Hydropower opens 1:1 rights share issue
Barun Hydropower has launched its rights share offering at a 1:1 ratio. Shareholders listed as of Jestha 21 (June 4) can apply for shares at NPR 100 per unit. RBB Merchant Banking is managing the issue, with applications open via Mero Share until Shrawan 19 (August 4).
EV charging station with 1,000 KVA capacity opens in Butwal
Shashila Motors Pvt. Ltd. has inaugurated a high-capacity EV charging station in Driver Tole, Tilottama-3, Rupandehi. The station can charge up to 14 vehicles simultaneously and was officially opened by Tilottama Mayor Ram Krishna Khand.
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