KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Despite slowdowns in broader sectors, Nepal’s fiscal year 2024/25 reflected dynamic shifts in economic activity, marked by a record-breaking Rs 2.124 trillion in NEPSE transactions—signaling strong investor interest and liquidity in the secondary market.
While gold and silver prices edged upward, infrastructure and energy sectors also saw momentum, with 147 hydropower and growing solar project approvals. Land revenue collection remained robust at Rs 51.42 billion, and 600 startups received government-backed loans, suggesting a tilt toward entrepreneurship and domestic investment.
However, challenges persist, including halted urban infrastructure work due to monsoon, extended hydropower deadlines, a budget vacuum in key municipalities, and shrinking refinery exports due to India’s tariff changes.
New budget implementation directives emphasize accountability, rapid project execution, and inclusive financing, while structural reforms—such as a three-shift system, cooperative sector oversight, and expanded foreign currency facilities—indicate a push toward efficiency and modernization.
NEPSE records Rs 2.12 trillion in transactions in FY 2024/25
While broader sectors of Nepal’s economy stayed sluggish, the secondary securities market experienced a historic surge in FY 2024/25, with trading volume and other market indicators showing significant gains. Data from the Nepal Stock Exchange (NEPSE) reports that securities transactions soared to Rs 2.124 trillion, a 189% increase from Rs 734.68 billion in FY 2023/24. The previous record was set in FY 2020/21 at Rs 1.454 trillion.
Gold and silver prices rise in Nepali market
The prices of gold and silver increased on Friday in the domestic market. According to the Federation of Gold and Silver Dealers’ Association, hallmark gold rose by Rs. 200 per tola, reaching Rs. 192,500, while silver climbed by Rs. 15 to Rs. 2,280 per tola.
147 hydropower surveys approved in FY 2024/25; solar gaining ground
The Department of Electricity Development issued survey permits for 147 hydropower projects totaling 8,776 MW in FY 2024/25. In the same period, 1,851 MW in solar permits were granted. The ministry also issued production licenses for 277 projects: 265 hydropower schemes (10,751 MW) and 13 solar projects (99 MW).
Land revenue offices collect Rs 51.42 billion in FY 2024/25
Nationwide, land revenue offices generated Rs 51.42 billion in FY 2024/25 from land administration activities. Minister Balaram Adhikari attributed this performance to strong efforts by the ministry and its related agencies.
Finance ministry issues budget implementation guidelines for FY 2025/26
The Ministry of Finance has released detailed implementation instructions for the FY 2025/26 budget, underscoring the need for tight fiscal discipline in agriculture spending and ensuring timely completion of development projects. Contractors on major infrastructure projects costing over Rs 50 million will be responsible for maintenance for at least five years post-completion.
Nepal Airlines clears aircraft loan payments through mid July 2025
Nepal Airlines Corporation announced that it has fully paid installments for two narrow-body aircraft up to July 16 and also made a partial payment of Rs 53.995 million toward loans on two wide-body planes.
Minimum wage raised to Rs 19,550; PM Oli praises the move
Prime Minister KP Sharma Oli announced via Facebook that the monthly minimum wage has been increased from Rs 17,300 to Rs 19,550, effective Shrawan 1 (July 17). He emphasized that progress and prosperity depend on fair labor standards and highlighted the introduction of a contribution-based social security program that has enrolled 2.1 million workers.
Foreign currency option now available for passport fees
The central bank has authorized that passport and official travel fees can now be paid from foreign currency accounts. The directive includes provisions to open new currency accounts to access this service.
Three shift system introduced for development projects
A new circular mandates three daily work shifts for development projects to boost execution speed in FY 2025/26. Project chiefs will be selected through internal competition, and may not be transferred mid-project if they fail to meet performance benchmarks.
Projects must achieve 50% progress by Q3, says budget guidelines
New budget directives require projects to reach at least 50% physical completion by the third quarter, with payments tied to progress and quality. No progress threshold is required for payments in the first quarter.
Cooperative department issues 102 point governance directive
The Cooperative Department has issued “Integrated Directive 2025” with 102 mandates aimed at improving governance. Under the directive, loans above Rs 300,000 must be secured by guarantees or collateral, at least half of lending must support income-generating sectors, and the interest rate spread must not exceed 6%.
India’s tariff cut on crude palm oil hinders Nepali exporters
Nepali oil refiners face challenges after India reduced import duties on crude palm oil, undercutting their refinery exports to India under SAFTA. Nepali firms had imported crude with a 10% duty and 13% VAT, refined it domestically, and exported it to India.
Post COVID credit boom boosts real estate and stock market
Bank lending has surged post-COVID, driving growth in the stock and real estate markets. Although land deals rose in FY 2024/25, revenue remained modest; officials note that most activity took place in lower-priced peri-urban areas. Revenue did climb, likely owing to higher-value land transfers, despite no increase in registered deeds.
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