KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mix of progress and persisting challenges, as seen in the recent spike in stock market turnover—the highest in over three months—driven by hydropower stocks, despite minimal gains in the NEPSE index.
Meanwhile, the government’s revenue collection of Rs 1.03 trillion in eleven months marks an improvement over last year but still falls short of the annual target with limited time remaining. Provincial budgets have slightly increased, but political interference—like the last-minute addition of projects in Koshi Province—highlights structural inefficiencies.
The banking sector, flush with excess liquidity exceeding Rs 400 billion, signals a credit slowdown amid weak investment demand. In trade, export efforts such as Palpa’s ginger shipments to Europe and Rs 3.5 billion in monthly FDI pledges reflect modest external engagement.
Infrastructure efforts continue with the completion of key roads and the Gwarko flyover’s opening, though delays persist in larger projects like the Mid-Hill Highway. Regulatory concerns also surface, with industries challenging NEA charges and calls to revise proposed luxury taxes on gold.
These developments paint a picture of an economy with growing capacity and revenue but constrained by political maneuvering, underutilized liquidity, and regulatory uncertainties.
Stock market sees highest turnover in over three months
On Monday, Nepal’s stock market recorded its highest daily turnover in more than three and a half months, reaching Rs 13.18 billion in transactions. This is the largest single-day volume since Falgun 19, 2081 B.S. (March 3, 2025).
On the previous trading day, turnover stood at Rs 11.44 billion. Despite this rise in trading volume, the NEPSE index saw only a slight increase of 2.80 points, closing at 2,658. Interestingly, the number of stocks that gained and those that declined was equal, with 124 companies in each category.
Gold and silver prices remain unchanged
Gold and silver prices remained steady in Nepal’s market on Monday. The Federation of Nepal Gold and Silver Dealers’ Association reported that hallmark gold was trading at Rs 197,500 per tola, unchanged from Sunday. Silver also stayed flat at Rs 2,165 per tola.
Government collects Rs 1.03 trillion revenue in 11 months
In the first eleven months of the current fiscal year 2024/25, the government has collected Rs 1.03 trillion (Rs 1,027.66 billion) in revenue. This figure is higher than the Rs 939.48 billion collected during the same period last fiscal year. The revenue target for mid-June was Rs 1.234 trillion, and there is still one month left in the fiscal year.
Provinces unveil Rs 287 billion budget for fiscal year 2025/26
Nepal’s seven provinces have announced a combined budget of Rs 287.30 billion for fiscal year 2025/26, slightly up from last year’s total of Rs 278.70 billion. The provincial ministers for economic affairs and planning presented their respective budgets in the assemblies. Capital expenditure has been set at Rs 171.17 billion, up from Rs 161.41 billion last year, while recurrent spending has risen to Rs 104.09 billion from Rs 99.62 billion.
New Rs 10 notes bearing ex-governor’s signature enter market
A total of 630 million Rs 10 banknotes signed by former NRB Governor Maha Prasad Adhikari began circulating on Monday. According to the NRB’s Currency Management Department Executive Director Ramu Paudel, the new notes—worth Rs 6.3 billion—feature serial numbers from “32 0000001” to “94 999999”, with Mount Everest on the left and a rhododendron watermark on the right.
Banks deposit over Rs 400 billion in excess liquidity at NRB
As the fiscal year approaches its end, credit disbursement has failed to keep pace with deposit growth, prompting banks to deposit more than Rs 414 billion in excess funds at the Nepal Rastra Bank. This trend signals abundant liquidity in the banking sector, but a lack of lending opportunities.
46 industries challenge NEA over dedicated line charges
Most of the industries disputing electricity tariffs for dedicated and trunk lines have filed review applications with the Nepal Electricity Authority. Following a notice issued on Baisakh 30, industries were given until June 14 to submit complaints. NEA spokesperson Rajan Dhakal said 46 industries have submitted appeals regarding the billing of dedicated feeder and trunk line usage.
Shares of five hydropower firms set to be tradable soon
Within a month, the lock-in period for shares held by promoters, project-affected locals, and employees in five hydropower companies will expire. Once tradable, these shares could increase supply in the market, potentially affecting prices. In response, the Securities Board of Nepal has directed the companies to notify the public at least a month in advance.
Nepal attracts Rs 3.5 billion in FDI pledges in a month
In the past month, Nepal has received foreign direct investment commitments totaling Rs 3.5 billion across 141 proposed industries. The Department of Industry reported that Rs 3.04 billion in pledges came through the approval route for 53 industries, while Rs 501.77 million came via the automatic route for 88 industries.
Gwarko flyover to open on June 20
The Gwarko flyover in Lalitpur will open to traffic on June 20, as the main construction has been completed. Prime Minister KP Sharma Oli is scheduled to inaugurate the flyover. Minister for Physical Infrastructure and Transport Devendra Dahal and officials from the Department of Roads recently inspected the site and instructed final preparations for its opening.
Birgunj Customs Office collects Rs 158.60 billion in 11 months
The Birgunj Customs Office has collected Rs 158.60 billion in revenue in the first eleven months of the fiscal year, achieving 79% of its annual target. Chief Customs Administrator Deepak Lamichhane noted that revenue collection in the May–June period was the highest so far. Major contributors were petroleum products and vehicle imports, supported by the government’s expansionary budget.
Hydropower sector leads stock market gains
Hydropower stocks have been the top performers in the stock market over the past two weeks, rising by 7.8%. On Sunday alone, hydropower companies accounted for 69% of the total Rs 11.44 billion in share transactions, amounting to Rs 7.91 billion. Five companies in the sector have reached record-high valuations, adjusted for previous bonus and rights share issuances.
Slow progress continues on Mid-Hill Highway’s initial stretch
Work on the beginning section of the Mid-Hill Highway remains delayed, with contractor firms Roshan Shivashakti JV and Santoshi Shivashakti JV failing to meet deadlines. Although the project was supposed to be completed by 2021, progress remains low—27% in the first segment, 14% in the second, and 49% in the third.
Koshi Province adds projects overnight to satisfy party cadres
Koshi Province has reportedly included a number of small-scale projects in its budget after Cabinet approval, mainly to appease leaders and cadres from the ruling CPN-UML and Nepali Congress. The Provincial Planning Commission confirmed that the late additions were based on recommendations from party members.
FNCCI urges government to review luxury and VAT taxes on gold and gemstones
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called on the government to reconsider the proposed 2% luxury tax and 13% value-added tax (VAT) on gold and precious stones included in the budget for fiscal year 2025/26. On Sunday, FNCCI President Chandra Prasad Dhakal met with representatives from the Nepal Gold and Silver Gem and Jewelry Federation and the Federation of Nepal Gold and Silver Dealers’ Association at the FNCCI Secretariat to discuss the matter.
Indian pilgrims to resume Kailash Mansarovar yatra via Nepal
After a gap of six years, Indian pilgrims will once again travel to Kailash Mansarovar via Nepal. China is preparing to allow Indian pilgrims through the route for the first time in seven years. However, uncertainty remains, as Nepali tour operators have been instructed to deposit a refundable security of USD 100,000 with Chinese authorities in Lhasa.
Over 23,000 kg of ginger from Palpa exported to Europe
Farmers from Nisdi Rural Municipality–5 in Palpa have exported 23,250 kilograms of raw and dried ginger to Europe this year. Dilmaya Saru, manager of the Social Entrepreneur Women’s Cooperative, said 14,560 kg of dried ginger was exported on Sunday. The dried ginger was processed from approximately 65,000 kg of raw ginger.
Road link completed between Myagdi, Baglung, and Dhorpatan
The road track connecting Dhorpatan to Myagdi and Baglung has been completed, providing a vital connection for Mangala, Malika, and Dhaulagiri rural municipalities. This new route also shortens travel between Kathmandu or Pokhara and Dhorpatan or Rukum East. The project was implemented by the Baglung Road Division Office with a federal government budget of Rs 50 million.
Royal Tulip hotel launched in Nepal under Louvre Hotels Group
Louvre Hotels Group has introduced its ‘Royal Tulip’ brand in Nepal for the first time. The hotel, located in Gwarko, Lalitpur, features some of the country’s largest conference and meeting halls.
Kumari Bank puts 7,881 promoter shares up for sale
Kumari Bank has announced the sale of 7,881 promoter shares. Individuals and institutions interested in buying can apply within 35 days starting June 16 at the bank’s head office in Tangal or Kumari Capital’s office in Naxal, Nagpokhari.
WorldLink reports Rs 11.12 billion annual revenue
Internet service provider WorldLink Communications earned Rs 11.12 billion in revenue in 2024. The company has consistently grown over the years, with previous revenues of Rs 6.54 billion in 2020, Rs 7.95 billion in 2021, Rs 9.39 billion in 2022, and Rs 10.33 billion in 2023.
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