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 showed notable developments at the close of fiscal year 2024/25, marked by a strong stock market finish, boosted by favorable monetary policy and falling interest rates.
While NEPSE reached new highs and gold prices declined, commercial banks adjusted deposit rates downward following Nepal Rastra Bank’s policy shift. The government engaged in aggressive end-of-year spending and secured significant foreign aid, yet persistent underperformance in national pride projects and bureaucratic delays drew criticism.
Meanwhile, infrastructure progress included the resumption of stalled road and hydropower projects, the introduction of electric buses in Kathmandu, and improved regional connectivity.
Reforms like private labor dispatch to Korea and updated casino regulations signal evolving governance, though issues like local obstruction in loan recovery and delayed project execution remain pressing concerns.
NEPSE closes fiscal year 2024/25 with strong gains
On the final day of fiscal year 2024/25, Nepal’s stock market ended positively, showing encouraging growth. The Nepal Stock Exchange (NEPSE) index climbed 34.61 points to close at 2,794.78. Market capitalization reached NPR 4.6569 trillion. In addition to the rise in the index, trading volume also surged above NPR 1.4 billion. The market rally was driven by typical year-end recovery, supportive monetary policy, and declining interest rates among banks and financial institutions.
Gold dips to Rs 192,000 per tola
Gold and silver prices declined in Nepal on Wednesday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of printed gold dropped by Rs 1,300 to Rs 192,000 per tola. Silver also fell by Rs 15, with current rates at Rs 2,260 per tola compared to Rs 2,275 the previous day.
Interest rates drop for Shrawan after NRB policy shift
Following a monetary policy adjustment by Nepal Rastra Bank (NRB) and excess liquidity in the system, commercial banks have reduced interest rates for Shrawan. NRB lowered its policy rate from 5 % to 4.5 %, along with other key rates, prompting banks to cut deposit rates. As a result, 14 banks reduced their maximum fixed deposit rates, 4 maintained them, and 2 slightly increased theirs. The average top rate for individual fixed deposits fell from 5.902 % in Ashar to 5.687 % for Shrawan.
Rs 233 billion spent in just 30 days at fiscal year end
Government agencies continued their trend of last-minute overspending and fund transfers at fiscal year-end. In the final 30 days of Asar alone, Rs 233 billion was spent—representing 15.37 % of total annual expenditure. Over Jestha and Asar combined, nearly 23 % of annual spending—Rs 358 billion—occurred. By year-end, total government expenditure reached Rs 1.515 trillion, according to the Office of the Auditor General.
Loan recovery improves, but banks worry over local obstruction
Bolstered by NRB incentives and enhanced loan recovery towards the fiscal year-end, bankers have noted positive outcomes from asset auctions and sales. However, they expressed concern over local government interference with land verification during auctions. “In Terai Madhesh, locals did not issue road recommendations, and the same problem is now emerging in hilly regions, Pokhara, and even Kathmandu Valley,” a banker reported.
Govt secures nearly Rs 274 billion in foreign aid commitments in current fiscal year
The government has obtained foreign aid commitments totaling nearly Rs 274 billion for fiscal year 2024/25. To support various projects, it signed commitment letters with bilateral and multilateral donors. According to the Ministry of Finance, the total commitment so far is Rs 273.4 billion. By the end of Asar, aid commitments included Rs 5.75 billion in grants and Rs 215.54 billion in loans.
Government approves printing of new Rs 1,000 banknote
The government has approved printing a new Rs 1,000 banknote featuring the signature of Nepal Rastra Bank’s newly appointed governor, Biswo Poudel. The Cabinet gave its approval recently, following a proposal from the Ministry of Finance, sanctioning the design and size of the note to be issued by NRB.
Only 56.77 % of budget spent on pride projects in 11 months
During the first 11 months of FY 2081/82 (ending Jestha), just Rs 33.61 billion of the Rs 59.21 billion allocated to national pride projects was spent—only 56.77 %. Analysts have criticized the inefficient use of funds, noting that many projects were labeled as “national pride” without enough groundwork. They pointed to weak procurement and financial oversight and lack of accountability as key obstacles.
Parliament’s Public Accounts Committee seeks SEBON compliance status
The Public Accounts Committee of Parliament has asked the Securities Board of Nepal (SEBON) to report on its implementation of earlier directives. Committee Chair Santosh Chalise said that the Finance Committee issued several instructions to SEBON at the end of Jestha and sent a follow up letter four days ago requesting updates, citing apparent neglect in carrying out the directives.
Nine national pride projects lag behind with under 50 % progress
Of the national pride projects announced 15 years ago, only three have been completed. Nine remain less than halfway finished, according to data from the National Planning Commission submitted to the National Development Problem Resolution Committee. Projects falling behind include Sikta Irrigation, Lumbini Development Trust, Kathmandu–Taraī Fast Track, Sunkoshi–Marīn Diversion, Mahakali Irrigation, Budhigandaki Hydropower (1,200 MW), MCC transmission lines, and the President Chure Conservation Program.
Nepal Tourism Board approves budget ahead of time for the first time
For the first time, the Nepal Tourism Board approved its FY 2082/83 (2025/26) budget before the end of Asar, setting it at Rs 1.6 billion. Budget Committee Coordinator Rishi Bhandari stated that the budget prioritizes international promotion and marketing of Nepal’s tourism. This is its first early approval since regulatory changes in 2072.
New casino rules set 5 km border limit with security mandates
Investors seeking to open casinos within 5 kilometers of the international border must now comply with specific security requirements under newly issued rules—the first update in 12 years. Previously, a 2013 directive banned casinos within 3 kilometers of the border. The revised rule extends the distance to 5 kilometers and adds mandatory security standards.
Nepal opens legal channel for private sector to send workers to Korea
After nearly two decades of government-to-government labor dispatch under South Korea’s EPS system, Nepal has officially opened the path for private recruitment agencies to send skilled workers to Korea. The Ministry of Labor, Employment, and Social Security has introduced new procedures, marking the shift 19 years after the EPS Korea office began operations.
Rasuwagadhi hydropower faces prolonged halt after flood damage
The 111 MW Rasuwagadhi Hydropower Project will remain offline for an extended period following severe flood damage. Minister Deepak Khadka told the National Assembly that the project’s head box was destroyed by flooding in the Bhotekoshi River. Restoration will take time, and other hydropower and transmission infrastructures along the Trishuli corridor were also significantly affected.
Electric bus service begins in Kathmandu with 12 new vehicles
Mahanagar Yatayat has launched a new fleet of 12 electric city buses in Kathmandu. Delivered by authorized distributor Shasheela Motors, the Chery & Wanda 33-seater buses are fully electric and built with modern features, including a 4,300 mm wheelbase, 25% gradeability, and a top speed of 69 km/h. Each bus accommodates 68 passengers, powered by a 120/240 kW motor and a 144.97 kWh CATL battery system. They are equipped with advanced braking and suspension systems for urban transport.
Nepal-India border to close temporarily due to Indian elections
Border points in Baitadi and Darchula districts will be closed on July 24 and 28 due to panchayat elections in India’s Uttarakhand state. Chief District Officer Punya Bikram Paudel confirmed the temporary closures, which aim to maintain security during the polling period.
- km road connecting Byas and Myagde in Tanahun upgraded and blacktopped
A previously unpaved 9-kilometer road linking Ranitari in Byas Municipality-5 to Ghumti in Myagde Rural Municipality-4 has been upgraded and blacktopped. The road, which serves as an alternative to the Prithvi Highway, was completed one year ahead of schedule under a Rs 366.29 million contract, according to Infrastructure Development Office chief Rabindra Tiwari.
Flights disrupted at Resunga Airport for past two weeks due to bad weather
Operations at Resunga Airport in Gulmi have been suspended for over two weeks because of poor weather. The last successful flight occurred on June 28. A Kathmandu-bound flight attempted to land on July 8 but had to return after circling for 20 minutes due to low visibility. Seasonal monsoon conditions have repeatedly disrupted services at the airport.
Nepal Life Insurance earns Rs 10 billion in premiums on its 25th anniversary
Celebrating its 25th year, Nepal Life Insurance Company announced it has collected Rs 10 billion in first-year premiums—a record in the country’s life insurance sector. CEO Prabin Raman Parajuli credited the company’s success to customers, agents, board members, staff, and regulators.
Reconstruction of long-stalled Postal Highway segment begins
Rebuilding work has resumed on the 16-kilometer Narayanchowk to Tribeni stretch of the Postal Highway in Bardaghat, Nawalparasi. Originally due for completion by December 2022, the project was stalled for six years due to contractor delays. After repeated deadline extensions and public pressure, construction has now resumed.
Yak herds from Dolakha cross into Tibet for summer grazing
Around 300 yaks from Lapchi in Bigu-1, Dolakha, have crossed into Tibetan pastures for seasonal grazing. Local herders migrate annually during the monsoon due to lack of grazing land in Nepal. The yaks will return during the winter once grass is available again in Lapchi, according to local herders.
Omni Motors logs Rs 794 million in trade over 9 months
Omni Motors Pvt. Ltd. recorded Rs 794 million in trade volume during the first nine months of the current fiscal year. This follows past revenues of Rs 726 million in 2024, Rs 698 million in 2023, Rs 2.28 billion in 2022, and Rs 2.01 billion in 2021.
Court clears path for Kohalpur–Surkhet transmission line expansion
A court decision has removed obstacles in Baijnath Rural Municipality, allowing the 132 kV transmission line project from Kohalpur to Surkhet to move forward. Chief Minister Yam Lal Kandel confirmed that work will proceed and be completed within six months. A land dispute in Subbakuna, Birendranagar-11, has also been resolved, said project chief Ravi Chaudhary.
Himalayan Bank launches FPO to maintain 30% public shareholding
To comply with regulations requiring 30% public ownership, Himalayan Bank is issuing 9,250,469 units of FPO (Further Public Offering) shares starting Wednesday. The move follows the Banking and Financial Institutions Act, which mandates this shareholding level for banks, development institutions, and microfinance entities.
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