KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s latest economic developments present a mixed but interconnected picture of cautious optimism alongside structural challenges. Financial markets showed improving sentiment as the NEPSE index edged higher on stronger turnover, while rising gold and silver prices reflected both global price trends and domestic hedging behavior.
Government revenue performance remained robust, with Birgunj Customs posting double-digit growth, supported by administrative streamlining measures such as the removal of postal stamp requirements and the easing of cross-border currency rules. At the same time, heavy reliance on foreign employment persists, as youth migration continues to rise, underscoring limited domestic job creation despite ongoing infrastructure expansion, including near-completion of key transmission lines and active project monitoring.
Policy efforts to attract foreign investment, deepen public finance reforms with ADB support, and strengthen bilateral economic ties—particularly with India and China—signal reform intent, yet persistent concerns over power reliability, agricultural price volatility, and governance lapses highlighted by corruption probes indicate that sustaining growth will depend on translating policy commitments into effective implementation and institutional accountability.
NEPSE edges up as market turnover climbs to Rs 4.5 billion
The Nepal Stock Exchange (NEPSE) index gained 5.70 points on Wednesday to close at 2,625.70. Trading activity improved notably, with total turnover rising to Rs 4.5 billion from Rs 3.44 billion the previous day. Among listed companies, share prices increased for 143 firms, declined for 104, and remained unchanged for 11. The finance sector recorded the strongest performance, advancing by 1.75 percent. Swastik Laghubitta and SY Panel both reached the 10 percent upper circuit, while Barahi Hydropower dropped by the maximum 10 percent.
Gold and silver prices climb in the domestic market
Gold and silver prices continued to rise in the domestic market on Wednesday. The Federation of Nepal Gold and Silver Dealers’ Association reported that gold prices increased by Rs 700 to Rs 259,700 per tola, while silver rose by Rs 170 to Rs 4,055 per tola. In the international market, gold is trading at USD 4,330 per ounce and silver at USD 65 per ounce. The latest increase follows Tuesday’s gold rate of Rs 259,000 per tola.
Youth migration for foreign employment rises by 5 percent
A total of 339,611 Nepali youths left the country for foreign employment during the first five months of the current fiscal year, marking a 5 percent increase compared to the same period last year. According to the Department of Foreign Employment, the number of outbound workers could exceed 800,000 by the end of the year. Over the past five years, nearly 3.4 million Nepalis have gone abroad for work, averaging about 634,000 annually. The increase is attributed to favorable labor laws in destination countries and digitized labor permit systems. The fiscal year 2024/25 recorded the highest number of departures, with more than 839,000 permits issued.
Govt and ADB sign loan agreement for public finance reform
The government and the Asian Development Bank (ADB) have signed a concessional loan agreement worth USD 100 million to support the second phase of the Public Financial Management and Devolved Service Delivery Program. The agreement was signed on Wednesday at the Ministry of Finance by Finance Secretary Dr. Ghanshyam Upadhyay and ADB Resident Representative Arnaud Cauchois. The loan carries a 24-year maturity, including an eight-year grace period, with interest starting at 1 percent. The funding is intended to reinforce federal governance, enhance revenue generation, and improve transparency and efficiency in public expenditure at all levels of government.
Govt removes postal stamp requirement for revenue collection
The government has decided to abolish the use of postal stamps as revenue stamps for document authentication, except in cases where it is legally required. Minister Jagdish Kharel announced that the cabinet approved the decision on Monday to streamline public services. The meeting also formed a high-level political dialogue committee under Law Minister Anil Kumar Sinha. In addition, the cabinet accepted a concessional loan of Rs 12.38 billion from the Asian Development Bank, approved the transfer of several Armed Police Force Additional Inspector Generals, and granted preliminary approval for organizational surveys of the Ministry of Youth and Sports.
Birgunj Customs collects Rs 96.38 billion in five months
The Birgunj Customs Office generated Rs 96.38 billion in revenue during the first five months of the current fiscal year, reflecting a 14 percent increase from Rs 84.37 billion collected in the same period last year. The highest monthly collection of Rs 20.80 billion was recorded between November 17 and December 15, achieving 98 percent of the monthly target. Overall, the office has met 87 percent of the annual revenue target of Rs 273.39 billion set by the Department of Customs.
Minister Ghising inspects infrastructure projects in Bardiya
Minister Kulman Ghising visited Bardiya district for a two-day inspection of infrastructure projects and to inaugurate the foundation stone of a suspension bridge. On Wednesday, he reviewed the collapsed Jabdi Ghat bridge, the Sattighat bridge, and multiple irrigation and embankment projects along the Karnali River. His schedule includes a public interaction program in Thakurdwara on Thursday, focusing on wildlife-related concerns and irrigation canals. Accompanied by Chief District Officer Gogan Bahadur Hamal, the visit aims to assess development progress and address local infrastructure challenges.
Stakeholders call for policy reforms to attract foreign investment
Business leaders and experts have stressed the urgency of procedural reforms to boost Foreign Direct Investment (FDI) in Nepal. Although investment commitments have reached Rs 674.833 billion across 7,677 projects, actual capital inflows remain limited. During the first five months of the current fiscal year, commitments totaled Rs 38.596 billion, mainly in agriculture and tourism. Confederation of Nepalese Industries President Virendra Raj Pandey emphasized the importance of political stability and a one-stop service system. Data shows India as the largest investor with Rs 176 billion, followed by China and Singapore.
Cabinet allows carrying INR 200 and 500 notes up to Rs 25,000
The cabinet, chaired by Minister Jagdish Kharel on Monday, approved a decision allowing Nepali and Indian citizens to carry Indian currency notes of INR 200 and 500 denominations up to a limit of Rs 25,000. The move relaxes earlier restrictions and is expected to ease cross-border travel and trade. The meeting also endorsed the removal of postal stamps for revenue purposes, accepted a USD 100 million loan from the Asian Development Bank, appointed Dr. Prakash Kumar Shrestha as Vice Chairman of the National Planning Commission, and formed a political dialogue committee under Anil Kumar Sinha.
Finance Minister urges Chinese investors to expand investment in Nepal
Finance Minister Rameshore Khanal encouraged Chinese investors to confidently invest in Nepal while addressing an economic cooperation workshop on Tuesday. He highlighted ongoing economic reforms and stressed the importance of identifying new areas for bilateral collaboration. Chinese Ambassador Chen Song stated that Chinese investors are showing growing interest in Nepal’s industrial, energy, and infrastructure sectors. He reaffirmed China’s support for Nepal’s development, emphasizing that political stability and a favorable investment climate are essential for strengthening economic ties between the two countries.
Finance Ministry bans transport fees on goods in transit
The Ministry of Finance has instructed provincial and local governments to stop charging fees on goods transported through their jurisdictions. Circulars were issued through the Office of the Prime Minister and the Ministry of Federal Affairs to protect farmers and businesses from undue financial burdens. The ministry clarified that levying taxes on goods in transit from other districts violates the Constitution of Nepal. The directive, issued on December 9, aims to ensure a free national market and curb illegal fee collection on agricultural products.
Jumla exports apples worth over Rs 412.9 million this year
Jumla district has exported apples valued at Rs 412.9 million by the first week of December, according to the Agriculture Development Office. A total of 5,591 metric tons of apples were shipped, with local varieties selling between Rs 50 and 65 per kilogram. Overall production declined from 20,512 metric tons last year to 18,245 metric tons due to hailstorms and pest infestations. Despite the reduced output, the area under apple cultivation has expanded to 4,497 hectares, while Italian Fuji apples have commanded premium prices exceeding Rs 175 per kilogram.
CIAA probes major financial irregularities at Prithvi Chandra Hospital
The Commission for the Investigation of Abuse of Authority (CIAA) has begun investigating alleged financial irregularities involving millions of rupees at Prithvi Chandra District Hospital in Nawalparasi (west of Bardaghat Susta). The CIAA’s Butwal office sought detailed information following reports of corruption linked to the former medical superintendent and other staff. Allegations include Rs 20 million spent on non-operational lifts under a Rs 14 billion project, a Rs 6 million X-ray machine that was never used, and Rs 4.1 million in unclaimed health insurance payments. Civil society groups have called for strict action against those responsible.
Morang industrialists seek uninterrupted power supply during winter
Industrialists from Morang, led by Chamber of Industries Morang President Nand Kishor Rathi, met Finance Minister Rameshore Prasad Khanal and senior officials to demand a reliable electricity supply in the upcoming winter season. The delegation urged the government to complete the Barju substation and repair aging transmission lines along the Sunsari–Morang–Katahari corridor. They also submitted an eight-point recommendation list, including amendments to the Customs Act 2025 and the introduction of cash incentives for exporters. Government representatives responded positively, pledging to address urgent concerns and consider policy proposals.
India and Nepal hold startup roundtable in Janakpurdham
A roundtable discussion focusing on India–Nepal collaboration in technology and startups was held in Janakpurdham. Organized by the Consulate General of India in Birgunj and the Nepal Young Entrepreneurs Forum, the event brought together more than 40 participants. Consul General Devi Sahai Meena said India’s experience in artificial intelligence and information technology could greatly support Nepali startups. The program aims to position Madhesh Province as a startup hub by encouraging knowledge sharing, investment cooperation, and technical partnerships between entrepreneurs and small and medium enterprises from both countries.
Kohalpur–Surkhet transmission line worth Rs 700 million nears completion
Construction of the 132 kV Kohalpur–Surkhet transmission line has entered its final phase, with 99 percent of physical work completed. Project Chief Ravi Kumar Chaudhary confirmed that 161 of the 162 towers have been erected, and stringing work in Baniyabhar is expected to finish within a week. The Rs 700 million project, awarded to RS Infra Projects in fiscal year 2019/20, faced delays due to challenging terrain and local disputes in Banke and Bardia districts. Once operational within a month, the line is expected to significantly improve power supply reliability in Karnali.
Onion and potato prices increase in the market
Wholesale prices of dry onions and potatoes rose on Wednesday, according to the Kalimati Fruits and Vegetables Market Development Board. Dry onions were traded at an average of Rs 50 per kilogram, up from Rs 49 a day earlier. Prices of local red potatoes also increased to an average of Rs 39 from Rs 36, while Indian red potatoes remained stable at around Rs 29 per kilogram. Market officials attributed the price fluctuations to variations in daily supply from domestic production areas and imports.
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