KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic landscape reflects a blend of cautious optimism and structural challenges. While the NEPSE index showed a decline, increased trading volumes and strong monthly performance in the hydropower sector suggest investor confidence in selective industries.
Public debt has risen significantly, now accounting for over 43% of GDP, highlighting fiscal stress, while inflationary pressures loom with rising fertilizer costs linked to global conflicts. Policy reforms like the NRB’s move to ease investment for non-resident Nepalis and support for digital payment mergers signal a push toward modernization.
However, local industries such as switch and socket manufacturing are struggling under import-favoring tax regimes, calling attention to trade policy imbalances.
Meanwhile, initiatives like collective marketing in Rolpa, green economy promotion, and hydropower investment reflect a parallel drive toward inclusive and sustainable growth.
NEPSE falls by 24.76 points
The share market on Thursday closed in negative territory, with the NEPSE index dropping by 24.76 points to settle at 2,628. Despite the decline, trading activity picked up, as turnover rose to NPR 11.23 billion—up from NPR 9.08 billion the previous day. While 47 companies saw their share prices climb, 201 companies declined. Every sectoral index ended the day in the red, led by a 2.47 percent slide in the trade sector.
Gold and silver prices dip slightly in local market
Gold and silver prices saw a minor decline on Thursday. Minted gold dropped to NPR 195,500 per tola, while silver settled at NPR 2,200 per tola, down from NPR 195,900 and NPR 2,225 respectively the previous day, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Public debt grows by NPR 220.58 billion in 11 months of current fiscal year
Public debt rose by NPR 220.58 billion by June 14 in fiscal year 2024/25. According to the Public Debt Management Office, total government debt increased from NPR 2.43 trillion at the end of Ashad 2023/24 to NPR 2.65 trillion—equivalent to 43.47 percent of GDP.
NRB simplifies stock market investment process for non resident Nepalis
The Nepal Rastra Bank has amended foreign investment regulations to streamline stock market participation for non resident Nepalis. Under the revised rules, NRNs may now transfer funds to joint investment companies before receiving approval from the central bank, expediting the investment process.
Hydropower sector shows strongest share market growth over past month
Over the past month, the hydropower sector recorded the highest gains in the share market. The NEPSE index rose by a modest 1.68 percent, but the hydropower subsector surged by 7.89 percent. Several hydropower companies saw their stock prices jump as much as 92 percent during this period.
Finance Minister Paudel highlights green economy as key to Nepal’s economic growth
Speaking at an event in Kathmandu, Finance Minister Bishnu Prasad Paudel underscored the importance of a green economy for Nepal’s future growth. He argued that sustainable development, job creation, improved human capital, social inclusion, and enhanced trade and investment would drive the country’s economic advancement.
New directive proposed to open electricity system access beyond government owned authority
The Electricity Regulatory Commission is drafting the ‘Open Access to Electric System Directive, 2025,’ which would end the Electricity Authority’s monopoly on power distribution. The plan would permit hydropower producers to sell electricity directly to industries and other consumers using existing transmission infrastructure.
1.12 billion cubic metres of natural gas discovered in Dailekh
The Department of Mines and Geology has revealed preliminary findings indicating about 1.12 billion cubic metres of methane gas in Dailekh, based on studies by the China Geological Survey and drilling by CNPC Xibu Engineering. A final report is expected by December, with estimates suggesting enough reserves to meet Nepal’s needs for 50 years.
Foreign employment outbound expected to exceed 800,000 in current fiscal year
In fiscal year 2024/25 (2081/82), an estimated 800,000 Nepalis will go abroad for work. The Department of Foreign Employment reports that between Shrawan and Jestha, 760,391 people have already received labour approval.
Department of Roads positions 277 machines to tackle potential road blockages during monsoon
To prevent disruptions during the monsoon season, the Department of Roads has readied 277 pieces of equipment nationwide. Spokesperson Prabhat Kumar Jha stated that offices have deployed 24 types of machinery—such as excavators, backhoe loaders, dozers, wheel loaders, cranes, and tippers—to respond to floods and landslides.
Collective marketing drive launched in Rolpa to support small farmers and youth entrepreneurs
A collective marketing initiative has been launched in Lungri Rural Municipality, Rolpa, under the Small Farmers and Youth Entrepreneurship Partnership Project. Active since January 15, 2023 (Magh 2079), the 29-month-long program aims to boost market access for agricultural products and youth-led enterprises through coordinated marketing efforts.
Local switch and socket producers face crisis over tariff disparity
Domestic manufacturers of switches and sockets are in distress due to a government policy that exempts finished goods from customs duties while levying a 15% customs duty and an additional 15% excise on raw materials. Industry stakeholders warn that this tariff imbalance favors imports, threatening the survival of nearly 50 local factories.
Israel Iran war drives up chemical fertilizer prices in Nepal by up to 20%
The conflict between Israel and Iran has disrupted supplies of raw materials for fertilizers, pushing prices upward by as much as 20 percent. The Ministry of Agriculture and Livestock Development said costs may increase by USD 100–150 per metric tonne.
NRB approves merger between IME Pay and Khalti; new entity named IME Khalti Limited
Nepal Rastra Bank has granted final approval for the merger of IME Pay and Khalti. The merged digital payment platform will be called IME Khalti Limited, with its headquarters in Panipokhari, Kathmandu. The mobile app will retain the name ‘Khalti’ for user continuity.
Mahanagar Yatayat raises concern over unauthorized buses using company name and design
Mahanagar Yatayat Pvt. Ltd. has objected to unauthorized buses operating under its name, design, and branding. In a press briefing in Kathmandu, the company stated that such practices are damaging its business operations. It also criticized the lack of action from relevant authorities to curb the issue.
Everest Bank invests NPR 1.36 billion in Chino hydropower project
Everest Bank has committed NPR 1.36 billion in funding for the 7.83 MW Chino Hydropower Project located in Manang’s Ngisyang Rural Municipality. The agreement was signed by Everest Bank CEO Sudesh Khaling and Chino Hydropower Chairman Bijay Bahadur Shrestha. The project is promoted by Butwal Power Company.
Fugitive Jyoti Bhandari arrested in Cambodia, brought back to Nepal
Jyoti Bahadur Bhandari, accused of embezzling funds from the Miteri Savings and Credit Cooperative, has been arrested in Cambodia with Interpol’s assistance and repatriated to Nepal. He had been on the run with a red notice issued against him, and Nepal Police dispatched a team to escort him back.
Citizens Mutual Fund to open applications from June 27
Applications for the ‘Citizens Sadabahaar Yojana’ mutual fund will open on June 27 (Ashar 17). Managed by Citizens Capital under Citizens Bank, the open-ended scheme will issue 42.5 million out of 50 million total units to the public at NPR 10 per unit. Applications can be submitted online via MeroShare until Ashar 27.
Excel Development Bank signs membership deal with NCHL for digital payment systems
Excel Development Bank has entered into a principal membership agreement with Nepal Clearing House Limited (NCHL) for the NPS-NCS and Nepal Pay Card system. The deal also includes provisions for cross-border payments using Nepal Pay QR. CEOs Dr. Indra Kumar Kattel and Nilesh Man Singh Pradhan signed the agreement.
Shivam Cement posts NPR 5.39 billion in revenue over nine months
Shivam Cement has reported revenues of NPR 5.39 billion for the first nine months of fiscal year 2024/25. In comparison, the company recorded NPR 7.70 billion in 2024, NPR 7.75 billion in 2023, and NPR 9.26 billion in 2022.
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