KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent economic and policy developments in Nepal reflect a mixed yet proactive approach to growth and sustainability amid challenges. The NEPSE index’s continued decline highlights investor caution, compounded by weakening momentum and short-term bearish trends, while concessional loan disbursement has sharply decreased due to delayed government subsidies, affecting financial inclusion.
On a positive note, Nepal has introduced a forward-looking National AI Policy emphasizing ethical innovation and regulatory frameworks, signaling readiness for technological advancement. Agricultural progress is evident with the successful apple farming trial in Myagdi and a notable increase in paddy plantation coverage nationwide, supporting food security.
Infrastructure efforts continue with fertilizer distribution underway, although tourism development through climbing fee waivers faces logistical hurdles. Meanwhile, Nepal is preparing strategically for COP-30 climate negotiations, focusing on environmental conservation and finance, and calls to broaden the tax base underline the need for sustainable revenue growth aligned with development goals.
Recognition of workplace safety standards and efforts to boost tourism in remote provinces further demonstrate Nepal’s multifaceted commitment to economic resilience and inclusive development.
NEPSE sees continued downtrend
The NEPSE Index closed the week at 2,788.36 points, marking a decline of 62.01 points or 2.18% from the previous week. This follows a 2.47% drop the week before, signaling a sustained bearish trend. The index fluctuated within a 91.3-point range during the week, slightly less volatile than the previous week’s 97-point swing.
Total turnover reached Rs 30.75 billion, with over 7.78 crore shares changing hands across more than 3.23 lakh transactions. Technically, the daily RSI dropped to 43.31, indicating weakening momentum, while the weekly RSI remained relatively stable at 53.90. Despite the decline, the MACD and Signal lines are still in positive territory, but the index is now trading below its 5-day and 20-day EMAs—suggesting short-term bearishness.
Key support is expected between 2,730 and 2,760, while resistance lies between 2,865 and 2,930. NEPSE’s market capitalization currently stands at Rs 4,656.27 billion (Rs 46.56 Kharba).
Concessional loan disbursement falls by Rs 42 billion in 11 months
Disbursement of concessional loans by banks and financial institutions dropped significantly in the last fiscal year, largely due to the government’s failure to clear overdue interest subsidies. According to Nepal Rastra Bank, concessional loans fell by nearly Rs 42 billion in the first 11 months of FY 2024/25, ending mid-July 2025.
As of mid-June 2025, only 98,528 borrowers had accessed Rs 85.1 billion in concessional loans—down from 120,274 borrowers and Rs 126.8 billion a year earlier. Compared to mid-July 2023, when 145,778 borrowers had taken loans totaling Rs 197.06 billion, the decline is even more pronounced.
Bankers attribute the drop to the government’s delay in releasing interest subsidies. “Banks have hesitated to issue new concessional loans due to unpaid government subsidies,” said Agricultural Development Bank CEO Govinda Gurung. The Office of the Auditor General reports the government owes banks Rs 100.26 billion in unpaid subsidies as of mid-July 2024.
Govt rolls out new AI policy focusing on ethics, innovation, and regulation
Nepal has officially endorsed its National Artificial Intelligence (AI) Policy 2025, aiming to foster a supportive environment for the growth, deployment, and responsible use of AI technologies. Approved during Monday’s Cabinet meeting, the policy was proposed by the Ministry of Communication and Information Technology.
The newly adopted policy outlines institutional, legal, and regulatory structures for AI governance, with a strong emphasis on ethical, transparent, and inclusive implementation across all sectors. It also highlights the importance of developing skilled human resources, advancing research and innovation, and establishing public-private partnerships. In addition, the policy seeks to ensure the protection of citizens’ rights, privacy, and data security as AI becomes more integrated into everyday life.
Farmers excited as apple production begins in Myagdi’s Gajne
Farmers in Gajne village of Beni Municipality-5, Myagdi, are showing renewed enthusiasm as their trial apple farming efforts have begun to yield results. Initiated four years ago at an elevation of 2,050 meters, local residents planted apple saplings to test the viability of the crop. According to local resident Nilkantha Sharma, most of the 100 apple trees planted in this village of 24 households have started bearing fruit. “Each household planted around five to fifteen trees, and they’ve been producing apples for the last four years. With the trial proving successful, we’re now preparing to scale up apple farming commercially across the village,” Sharma said.
Chemical fertilizers begin arriving in Nepal via Kolkata port: STC
The Salt Trading Corporation Limited (STC) has confirmed that a major shipment of chemical fertilizers imported through Kolkata port in India has started reaching Nepal, with provincial-level distribution already in progress. The STC reported receiving a total of 1.52 million sacks of fertilizer, including 440,000 sacks of urea and 1.08 million sacks of diammonium phosphate (DAP). These fertilizers are currently being transported to various warehouses across Nepal for further distribution.
In a statement issued Friday, STC said that provincial quotas have already been assigned and communicated to municipalities. The distribution will take place through officially registered fertilizer dealers, in coordination with local governments. “All fertilizer dealers registered with the Corporation are advised to coordinate with their respective municipalities and STC offices to facilitate distribution based on the allocated quotas,” the notice stated.
91 percent of paddy plantation completed nationwide
Paddy plantation has been completed on 91 percent of cultivable land across the country—an 8 percent increase compared to the same period last year. According to the Ministry of Agriculture and Livestock Development, paddy has been planted on approximately 1.254 million hectares out of the total 1.4 million hectares of arable land. The Far West Province leads with the highest plantation rate at 99.7 percent, followed by Karnali and Lumbini provinces, each at 98 percent, said Mahananda Joshi, Information Officer at the Ministry. He added that the nationwide plantation coverage is expected to reach 98 percent by the second week of Bhadra.
Nepal begins preparations for COP-30, focus on climate finance
Nepal has initiated preparations for the 30th session of the Conference of the Parties (COP-30) under the United Nations Framework Convention on Climate Change (UNFCCC), scheduled to take place from November 10–21 in Belém, Brazil.
The conference will prioritize topics such as the transition from fossil fuels, forest and ocean conservation, biodiversity protection, agricultural and food system transformation, human development, technology, and capacity building.
Nepal aims to spotlight the outcomes of the recent Sagarmatha Sambaad, with a strong focus on Himalayan conservation. To finalize its strategy, the Ministry of Forests and Environment recently held a preparatory meeting involving the Brazilian ambassador, government officials, NGOs, and development partners.
Call to broaden tax base to meet revenue goals
Ram Sharan Pudasaini, Executive Director of the Nepal Administrative Staff College and former Finance Ministry Secretary, has emphasized the need to expand Nepal’s tax base without overburdening current taxpayers. Pudasaini highlighted the importance of enhancing institutional capacity—particularly at the sub-national level—for improved tax compliance and enforcement. He stressed that revenue collection strategies should align with the country’s broader development goals and support long-term sustainable growth.
Seven companies awarded for excellence in workplace safety
The government has recognized seven companies across the country for their outstanding efforts in promoting occupational safety and health. The Department of Labour and Occupational Safety, under the Ministry of Labour, Employment and Social Security, selected one company from each province for the recognition.
The awardees include Buttabari Tea Pvt. Ltd. (Koshi), Dabur Nepal Pvt. Ltd. (Madhes), Varun Beverages (Nepal) Pvt. Ltd. (Bagmati), Gorkha Brewery Pvt. Ltd. (Gandaki), Vijay Distillery Pvt. Ltd. (Lumbini), Mahakali Sugar Industries Pvt. Ltd. (Sudurpaschim), and Suva Hotel Pvt. Ltd. (Karnali). In addition, Prof. Dr. Sunil Kumar Joshi was presented with a letter of appreciation for his contributions.
Labour, Employment and Social Security Minister Sharat Singh Bhandari emphasized that an organization’s commitment to occupational health and safety is a key indicator of its success. He also noted that the government has compiled a list of occupational diseases and is working on legal and policy reforms to enhance workplace safety standards.
Nepal waives climbing fees on 97 peaks to enhance tourism in Karnali and Sudurpaschim
The government has announced that climbing permits for 97 mountains in Karnali and Sudurpaschim provinces will be free of charge for the next two fiscal years, aiming to attract more tourists to these regions. In response, stakeholders such as the Nepal Tourism Board, Nepal Mountaineering Association, and travel agencies are devising strategies to promote these new destinations. They plan to engage international mountaineering organizations, Nepali embassies abroad, renowned climbers, and alpine clubs to encourage expeditions to these peaks.
This move, announced during the peak tourism season, has been welcomed by the tourism sector, although concerns remain regarding poor road infrastructure, limited air connectivity, and insufficient accommodation facilities in the area.
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