KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments collectively point to a cautiously recovering but still fragile Nepali economy, marked by mixed signals across markets, governance, and infrastructure. While the stock market weakened amid sectoral losses despite higher turnover, rising gold prices suggest continued investor caution and sensitivity to global trends.
At the same time, policymakers are projecting optimism, citing improving revenue growth, better liquidity management, and renewed confidence in energy and infrastructure investment as key drivers of long-term growth. Increased public spending on electricity, transport, and land protection, along with new hydropower IPOs and bond discussions, reflects a push to mobilize capital into productive sectors.
However, persistent structural challenges—such as subdued real estate activity, governance lapses highlighted by the Nepal Trust land scandal, and social frictions around resource sharing—underscore the need for stronger institutional accountability and policy consistency to translate early recovery signs into sustainable economic momentum.
NEPSE falls by 10.66 points
The share market declined on the last trading day of the week, with the Nepal Stock Exchange (NEPSE) index dropping by 10.66 points on Thursday. The index closed at 2,615 points, down from 2,625 points a day earlier. Although the market stayed in negative territory throughout the session, trading activity improved, with turnover rising to Rs 4.57 billion. The finance sector recorded the steepest loss, falling by 1.55 percent. However, Swastik Microfinance and SY Panel posted gains of 10 percent each. In total, share prices increased for 63 companies, while 194 companies registered losses.
Gold price rises to Rs 260,400
Gold prices in Nepal climbed by Rs 700 on Thursday, reaching Rs 260,400 per tola (11.66 grams). The Federation of Nepal Gold and Silver Dealers’ Association reported that silver prices also increased by Rs 25, trading at Rs 4,080 per tola. In the international market, gold was valued at USD 4,333 per ounce. The price movements mirror global market trends and domestic demand, with rising precious metal prices continuing to affect consumers and the jewelry sector amid sensitivity to the US dollar and broader international economic conditions.
Governor Paudel calls for confidence in the energy sector
Nepal Rastra Bank Governor Dr. Bishwo Nath Paudel urged the private sector to remain confident and not be influenced by negative economic narratives. He said stable and fair elections contribute positively to the share market and overall economic health. Paudel encouraged greater investment in productive areas such as energy and transport infrastructure, assuring that the central bank would introduce supportive policy measures as needed. He also revealed that discussions are underway with the private sector regarding the issuance of new bonds, expressing optimism that infrastructure investment would drive long-term economic growth.
Finance Minister reports 10 percent growth in revenue
Finance Minister Rameshore Prasad Khanal said the economy is showing signs of recovery, with government revenue increasing by 10 percent over the past three months. Speaking at an interaction organized by Gorkhapatra, he noted improvements in productivity and industrial output. The minister said the interim government is focused on managing liquidity and fostering a favorable investment environment. He added that Chinese investors have expressed confidence in Nepal’s improving investment climate. The government plans to maintain dialogue with the private sector to sustain growth, tackle economic challenges, and build on recent gains in revenue and production.
Infrastructure fund raises Rs 120.7 million after protests
The Physical Infrastructure Reconstruction Fund has collected Rs 120.7 million to repair damages caused by protests on September 8 and 9, according to the Ministry of Finance. The Oriental Insurance Company contributed Rs 2 million on Thursday. Official assessments estimate total damage at Rs 84.457 million, including destruction of 2,671 buildings valued at Rs 39.317 million and damage to 12,659 vehicles worth Rs 12.9 billion.
Minister announces Rs 4 billion electricity project for Sudurpaschim
Minister Kulman Ghising announced a Rs 4 billion project aimed at addressing electricity-related challenges in Sudurpaschim Province. During his visit, he inspected the Tanakpur canal and the four-lane Mahakali Bridge, instructing officials to complete pending works on schedule. He also laid the foundation stone for a 482.20-meter suspension bridge over the Karnali River, connecting Rajapur and Tikapur. The bridge, expected to be completed by June 25, 2027, will benefit around 2,000 households. Ghising also held discussions with local industrialists regarding uniform power tariffs and reduced penalties for delayed electricity payments.
Land revenue reaches Rs 16.75 billion in five months
Land revenue collection totaled Rs 16.75 billion during the first five months of the current fiscal year, marking a 1 percent increase from Rs 16.57 billion recorded in the same period last year. According to the Department of Land Management and Archive, around 572,000 land-related documents were processed during this time. Despite the recent increase in residential loan limits to Rs 30 million, property transactions remain below levels seen three years ago. Real estate-related debt stands at Rs 300 billion, while private investment has reached Rs 800 billion. Business leaders expect activity to rise once land classification is completed in more municipalities.
CIB files case over Rs 6.34 billion Nepal Trust land irregularity
The Central Investigation Bureau (CIB) has filed its investigation report concerning financial misconduct in the leasing of Nepal Trust land at Durbarmarg. The bureau has recommended prosecuting former secretary Arjun Bahadur Karki, Lekh Bahadur Karki, and Lhakpa Sonam Sherpa of Thamserku Trekking. According to the findings, the state suffered a loss of Rs 6.341 billion due to a collusive agreement signed on May 28, 2017. The report seeks a five-year prison sentence for the accused, citing offenses related to criminal breach of trust and fraud, after the prime property was leased at heavily undervalued rates for a 33-year period.
Cambodia to host Nepal–Cambodia B2B interaction
Nepal and Cambodia are preparing to enhance trade and cultural cooperation through a Cambodia–Nepal B2B Interaction program scheduled for mid-January in Cambodia. Organized by Season Media, the event will bring together representatives from the Nepal Chamber of Commerce and sectors including tourism, aviation, and technology. The program aims to provide a networking platform for Asian entrepreneurs and innovators. It will also feature the International Excellence Award, recognizing outstanding contributions in education, health, and tourism, with the goal of strengthening bilateral trade and long-term economic ties.
Salasungi Hydropower ends protest after agreeing to share issuance
Salasungi Hydropower has agreed to allocate shares to local residents of Aamachhodingmo Rural Municipality in Rasuwa, bringing an end to prolonged protests. The 78 MW project, developed with a private investment of about Rs 20 billion, began construction in 2019 and was completed in 2025. Locals had demanded priority rights to share ownership, citing the use of local natural resources. Ward Chair Ram Bahadur Tamang confirmed that protests were suspended after the company formally committed to issuing shares. Located 34 meters above sea level, the project currently generates around 15 MW during the winter season for the national grid.
NAMS to provide Rs 48,000 monthly allowance to fellows
The National Academy of Medical Sciences (NAMS) has announced a monthly subsistence allowance of Rs 48,000 for doctors enrolled in its fellowship programs. The stipend aligns with rates set by the Medical Education Commission for postgraduate training. The decision follows protests by doctors over high fees and the absence of allowances. Currently, NAMS charges up to Rs 840,000 for a one-year fellowship, while foreign candidates are charged USD 18,000. Due to ongoing fee-related disputes, the fellowship admission process has been postponed by 15 days.
KMC plans fencing of public land across 32 wards
Kathmandu Metropolitan City has launched an initiative to fence riverbanks and vulnerable public land throughout all 32 wards to prevent encroachment. The Public Construction Department has issued a circular asking ward offices to submit details of areas needing protection. Included in the approved budget for fiscal year 2024/25, the “Corridor Fencing Works” project is designed to safeguard open spaces and government-owned land from illegal occupation. Department chief Suresh Kumar Rai stated that the procurement process has already begun, and physical fencing will start once ward-level land data is received, ensuring long-term preservation of public assets.
Minister orders urgent fencing to safeguard Mahakali Bridge assets
Minister Kulman Ghising has instructed the Department of Roads to immediately carry out riverbank protection works to secure the four-lane Mahakali Bridge and nearby communities. Acting on a cabinet decision made on May 20, the Nepal Army was authorized to implement temporary flood control measures. However, during a site inspection, Ghising stressed the need for permanent embankments before the upcoming monsoon to stop erosion along the left riverbank. The bridge plays a crucial role in linking the Dhodhara Chandani dry port with the national road network, and the Mahakali Bridge Project has already completed the required reinforcement designs.
Bhujung Hydropower launches Rs 200 million IPO
Bhujung Hydropower has opened its Initial Public Offering (IPO) from Thursday, targeting local residents and Nepalis working abroad. The company is issuing 2 million shares worth Rs 200 million, accounting for 20 percent of its Rs 1 billion issued capital. Of the total shares, 1 million units have been reserved for residents of Lamjung district. Applicants can invest in a minimum of 10,000 and a maximum of 50,000 units. The 7.5-megawatt Upper Midim Hydropower project carries a cost of Rs 249 million per megawatt and has received a B Plus rating from ICRA Nepal.
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