KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed but closely interconnected set of developments, with buoyant capital markets contrasted by pressures in revenue collection, agriculture, and key service sectors. The NEPSE index’s broad-based rise and improved liquidity signal renewed investor confidence even as gold and silver prices fall sharply, indicating a shift away from safe-haven assets.
However, structural challenges persist: tax arrears have swelled to Rs 275 billion, government capital spending remains critically low at just 6.21%, and sectors like agriculture and tourism are strained by climate disasters and weak promotion. Meanwhile, the NRB’s expanding balance sheet and targeted investments in banks, alongside continued hydropower and SEZ development, point to ongoing efforts to stimulate long-term growth.
Yet declining profitability in major institutions like Nepal Telecom, mounting unpaid dues to dairy farmers, and regional disparities in loan demand and economic activity underscore the uneven momentum of Nepal’s economic recovery.
NEPSE index rises 15.70 points as market liquidity climbs to Rs 4.10 billion
The Nepal Stock Exchange (NEPSE) index posted a strong gain on Tuesday, advancing 15.70 points to close at 2,566. Trading activity also improved, with turnover increasing to Rs 4.10 billion from the previous day’s Rs 3.94 billion, and 207 companies registering price increases. Five newly listed firms in the energy and infrastructure sectors—Sagar Distillery, Mabilung Energy, Bungal Hydropower, Jhapa Energy, and Bandipur Cable Car—hit the 10% positive circuit limit. All sectoral indices closed in positive territory during the active session.
Gold prices fall by Rs 3,800 amid market downturn
Gold prices saw a sharp fall of Rs 3,800 per tola on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold is now priced at Rs 239,500 per tola, down from Rs 243,300. Silver prices also dropped, falling by Rs 65 per tola to reach Rs 3,090. The significant decline indicates a notable contraction in the local precious metals market.
Tax arrears exceed Rs 275 billion from over 330,000 taxpayers
By the end of fiscal year 2024/25, the Inland Revenue Department (IRD) reported Rs 275 billion in outstanding tax arrears owed by 330,912 taxpayers. Its annual progress report shows Rs 94.95 billion due from regular defaulters, while Rs 180.10 billion remains unsettled among 2,095 taxpayers currently under administrative review. Income Tax makes up the largest share, with Rs 219.11 billion owed by 193,620 taxpayers.
NRB to invest Rs 3.53 billion in banks for one-year term
The Nepal Rastra Bank plans to invest Rs 3.53 billion from its gratuity and pension fund in eligible commercial banks and financial institutions for a one-year period. The central bank invited applications from interested institutions by 7:00 PM on Tuesday indicating their proposed interest rate and preferred amount. The fund allocation includes Rs 2.824 billion for commercial banks, Rs 529.5 million for development banks, and Rs 176.5 million for finance companies.
NRB assets climb 29.23% to Rs 2.67 trillion
The Nepal Rastra Bank’s assets and liabilities expanded by 29.23% year-on-year, reaching Rs 2.671 trillion as of July 16, according to the 2024/25 annual report submitted to Finance Minister Rameshore Khanal. Governor Prof. Dr. Biswanath Poudel presented the report, which shows the NRB’s net income (before foreign exchange revaluation) increased by 9.11% to Rs 80.482 billion. Investments accounted for 88.92% of total assets, while cash and bank balances made up 7.32%.
Revenue edges up despite Rs 13 billion drop in non-tax income
The government’s overall tax receipts saw a modest improvement during the first four months of fiscal year 2025/26, even though non-tax revenue fell by Rs 13 billion. Total revenue rose to Rs 329.51 billion from Rs 329.01 billion in the same period last year. Non-tax revenue slid to Rs 19.65 billion from last year’s Rs 33.34 billion, but stronger tax collections offset the decline, indicating rising economic activity. VAT remained the top contributor at Rs 107 billion.
Govt development spending reaches only 6.21% in first four months
Development expenditure remained very low in the first quadrimester of fiscal year 2025/26. The Financial Comptroller General Office reports that just 6.21% of the annual capital budget had been utilized as of November 16, 2025. Out of Rs 407.88 billion allocated for capital spending, only Rs 25.313 billion was used. Total government outlays hit Rs 468.889 billion, or 23.87% of the annual budget, while revenue collection stood at Rs 333.34 billion, meeting 21.72% of the yearly target.
Floods inflict Rs 3.55 billion loss on agriculture sector
October’s heavy rainfall, flooding, and inundation caused an estimated Rs 3.55 billion in damage to Nepal’s agricultural sector. According to Information Officer Mahananda Joshi of the Ministry of Agriculture and Livestock Development, crop and vegetable losses amounted to Rs 3.337 billion, while livestock and fish losses totaled Rs 149 million. Damage to agricultural infrastructure reached Rs 44.5 million. Madhes Province suffered the greatest impact, with Rs 2.98 billion in crop loss and 38,000 livestock and fish perished. Loss data from recent rains is still being compiled.
Monsoon crop output expected to fall 9% due to disasters
Nepal’s monsoon paddy harvest is projected to decline by around 9% this year because of drought conditions in the Terai Madhes region during the monsoon, along with floods and heavy rains in October and November. According to an economist at the Ministry of Agriculture and Livestock Development, the loss could amount to an estimated 458,507 metric tons of paddy. Total production is now expected to reach 4.63 million metric tons, resulting in a rice shortfall of 1.12 million metric tons compared to the annual demand of 4 million metric tons.
Korala border imports Rs 7.365 billion worth of goods in three months
More than Rs 7.36 billion in goods entered Nepal through the Korala border in Upper Mustang over the three months leading up to November 16, following the border’s full reopening for trade on September 15. Electric vehicles (1,726 units) made up the bulk of imports. Customs Chief Ramesh Khadka reported that 897 cargo containers were cleared, generating Rs 3.626 billion in revenue. Exports remained minimal, with 54 trucks carrying handicrafts and garments valued at roughly Rs 8.38 million.
Panchkhal SEZ DPR preparation begins with Chinese partner
The Investment Board Nepal (IB) and Nepal Hehe Economic Development Zone Company Limited signed a Memorandum of Understanding on Monday to prepare the Detailed Project Report (DPR) for the Panchkhal Special Economic Zone in Kavre. IB CEO Sushil Gyawali and a representative from the company formalized the agreement. The Chinese-owned firm is expected to submit the DPR within about 10 months of receiving the survey permit. The project is being advanced under a public-private partnership model.
Ghising urges ADB to finalize Dudhkoshi hydro project funding
Energy, Water Resources, and Irrigation Minister Kulman Ghising has called on the Asian Development Bank (ADB) to promptly conclude financing arrangements for the 670 MW Dudhkoshi Reservoir Hydroelectric Project. In a meeting with ADB Deputy Director General for South Asia Sona Shrestha and Nepal Resident Mission Chief Arnaud Cauchois, Ghising emphasized the need to begin construction without delay. ADB is coordinating the effort to secure USD 1 billion in concessional loans from global financial institutions and has already pledged USD 550 million.
NAC adopts Bhairahawa airport as alternate landing site for international flights
Nepal Airlines Corporation (NAC) has named Gautam Buddha International Airport in Bhairahawa as its new alternate airport for international flights when landings at Tribhuvan International Airport are not possible. Previously, the airline relied on airports in India for diversions. Effective November 19, the shift is expected to reduce expenses and travel time. NAC has also initiated a study to potentially designate Pokhara International Airport as another future alternate.
Nepal Telecom profit drops 24% as call-based revenue declines
Nepal Telecom’s net profit fell by nearly 24% in the first quarter of fiscal year 2025/26, shrinking by Rs 414.4 million compared to the same period last year. Its unaudited financial report released Monday shows net profit at Rs 1.32 billion, down from Rs 1.73 billion. The decline is largely due to reduced revenue from inbound international calls, driven by the growing use of third-party calling apps, as well as a Rs 500 million reduction in interest income caused by lower fixed deposit rates.
Dairy farmers still owed billions despite payment commitments
Dairy farmers continue to be owed billions of rupees despite agreements between the government and dairy companies to settle overdue payments. According to Dr. Prem Dangal, President of the National Farmers Network, the Dairy Development Corporation still owes around Rs 600 million, while private dairies collectively owe up to Rs 2.5 billion, down from earlier dues exceeding Rs 4 billion. Although an agreement on September 3 had set deadlines to clear payments from mid-April to mid-September, delays persist, leaving farmers struggling to afford feed and repay loans.
Sudurpaschim hotel occupancy averages just 36.40% as tourist numbers fall
An NRB study of 10 sample hotels shows that average occupancy in Sudurpaschim Province was only 36.40% in fiscal year 2024/25. Tourist arrivals fell sharply, with visitors from India down 28%, from China down 71%, and from other countries down 65%, totaling 16,925 foreign visitors. The NRB concluded that poor promotion and underdeveloped religious and archaeological sites are limiting both domestic and international tourism in the province.
Sudurpaschim industrial loan demand rises 68% in energy sector
Banks and financial institutions in Sudurpaschim Province experienced high demand for industrial loans in the gas, hydroelectricity, and water sectors, which together made up about 68% of total industrial lending. As of mid-July 2025, industrial loans reached Rs 26.72 billion, a 4.37% rise from the previous fiscal year. However, lending to mining-related industries recorded the largest decline, falling by 37.83%.
Syangja produces more than 653,000 kg of food grain seeds
Syangja district produced 653,873 kilograms of food grain seeds—including paddy, maize, wheat, and potato—during fiscal year 2024/25. The Syangja Agriculture Knowledge Center reports that potato seeds accounted for the largest share at 450,900 kg, followed by paddy at 117,043 kg. Galyang Municipality led all local units with 470,000 kg of production. Much of the seed output was consumed locally, and farmers reported strong harvests from indigenous varieties supported by local governments.
Greenedi Energy selects Prabhu Capital to manage IPO
Greenedi Energy Limited has appointed Prabhu Capital as the issue and sales manager for its Initial Public Offering (IPO) aimed at local residents and the general public. The agreement was signed by Chairman Yuresh Man Kayastha and Managing Director Ashish Gauchan. The company plans to issue 30% of its paid-up capital as ordinary shares. Greenedi Energy operates the Idi Khola Hydropower Project in Kaski, which began commercial production on April 21.
Rs 71 billion in new currency enters market
The Nepal Rastra Bank (NRB) reports that Rs 71 billion worth of new banknotes were introduced into circulation in fiscal year 2024/25. According to its annual report, the total value of banknotes in circulation reached Rs 761.41 billion by mid-July 2025, up from Rs 690 billion the previous year. Notes of Rs 1,000 denomination represent the largest share by value, accounting for 70.06%.
Construction of 50 MW Marsyangdi Besi hydropower project begins Friday
Work on the 50 MW Marsyangdi Besi Hydroelectric Project is set to start on Friday, November 21. The project is being developed by Divya Jyoti Hydropower Limited, with Api Power Company Limited holding at least a 51% stake. Construction is expected to be completed within 30 months using domestic financing, resources, and workforce. Once operational, the project will provide the government with around Rs 35 million annually in royalties, including Rs 100,000 per megawatt for local development funds.
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