KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape presents a mixed picture of cautious monetary tightening, sectoral growth, and structural challenges. While the Nepal Stock Exchange exhibited notable volatility, gold prices surged, reflecting investor uncertainty. The central bank continued to drain liquidity—now totaling Rs 675 billion—to manage excess reserves and control inflationary pressures.
Meanwhile, regulatory reforms were introduced in non-bank payment systems and insurance, signaling efforts to improve financial governance. Despite a fiscal deficit of Rs 20.5 billion, government revenue collection has shown progress, with strong performances from Birgunj and Bhairahawa offices and a rise in new industry registrations.
The tourism sector is recovering, evidenced by growing arrivals in the Manaslu region and strategic outreach to India. However, social and environmental concerns—such as protests against hydropower projects and reduced subsidies for sugarcane farmers—highlight tensions in development planning. Corporate activity is also shifting, with finance company mergers and share acquisitions reshaping the financial sector, while regulatory scrutiny of telecom promotions underscores the need for oversight amid innovation.
Share market shows volatility, ends near previous level
The NEPSE index saw sharp fluctuations on Sunday, the first trading day of the week. It peaked at 2,922 points around 1 PM—up 52 points from the previous close—but declined due to selling pressure and ended the day at 2,870 points, the same as the prior session. Without the weighted average price adjustment in the last 15 minutes, it would have closed slightly lower at 2,867 points. After adjustment, the final increase was just 0.32 points.
Gold price increases by Rs 800 per tola
Gold prices rose by Rs 800 per tola on Sunday, reaching Rs 193,300. This marks a jump from Rs 192,500 the previous day. Silver also saw a rise, increasing by Rs 5 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
NRB pulls Rs 50 billion from banking sector to manage liquidity
Nepal Rastra Bank (NRB) has withdrawn an additional Rs 50 billion in liquidity from the banking system, bringing the total withdrawal to around Rs 675 billion. The move was made using the “Bolkabol” deposit instrument, set for 42 days, as part of efforts to stabilize liquidity in financial institutions.
Federal contingency fund posts Rs 20.5 billion shortfall
The federal government’s contingency fund has reported a deficit of Rs 20.5 billion, attributed to mismatches between revenue and expenditure. Although there was a Rs 2 billion improvement in fiscal year 2024/25, previous years’ liabilities still weigh down the fund’s balance.
NRB issues dividend distribution guidelines for non-bank payment firms
The central bank has released new rules titled “Guidelines on Dividend Distribution for Payment Institutions (Other than Banks and Financial Institutions), 2025.” These aim to bring more transparency and structure to how licensed payment service providers distribute profits and dividends.
Insurance authority to introduce risk-based premium system
Nepal Insurance Authority is preparing a new policy to determine non-life insurance premiums based on risk levels. The system will adjust premiums based on factors such as region, type of risk, and geographic location, moving away from the current model that relies mostly on past claim ratios.
VCTS system faces disruptions due to technical issues
The Vehicle and Consignment Tracking System (VCTS), run by the Revenue Investigation Department, has encountered technical problems. While maintenance is underway, officials have instructed the use of printed documents for the movement of goods today. VCTS is essential for logging commercial goods movement within the country.
600 entrepreneurs receive startup loans totaling Rs 886.6 million
Of the 661 selected startup applicants, 600 have received loans amounting to Rs 886.6 million. The National Industrial Development Organization discovered that 61 did not qualify due to business inactivity, blacklisting, or missing documents. Applications had been invited in August 2024.
Tourism Board to open permanent India office
To boost Nepal’s visibility as a tourist destination, the Nepal Tourism Board plans to establish a permanent office in Delhi. India, being Nepal’s largest tourism market, is the strategic location for launching major promotional initiatives. The board announced that 70% of the fiscal year 2025/26 promotion budget will go toward international marketing.
Govt slashes sugarcane subsidy by half amid oversupply
The government has cut the incentive subsidy for sugarcane farmers from Rs 70 to Rs 35 per quintal due to excessive supply pressures. This decision, made during the July 7 Cabinet meeting, comes despite declining sugarcane cultivation and continued farmer dissatisfaction over support prices.
Birgunj tax office collects over Rs 9.45 billion in revenue
The Internal Revenue Office in Birgunj collected Rs 9.45957 billion in the last fiscal year, marking a 35.57% increase from the previous year. This is Rs 2.58 billion more than fiscal year 2023/24, according to Chief Tax Officer Tikaraj Chaulagain.
Nearly 600 new industries registered in six months
A recent NRB report reveals that 581 new industries—small to large scale—were registered nationwide during the first half of FY 2024/25. These industries have created jobs for over 25,600 people, based on data from the Department of Industry.
Provincial budgets prioritize tourism development
Provincial governments have centered their budgets around building tourism infrastructure, religious and cultural heritage sites, and trekking routes. Provinces such as Sudurpashchim, Gandaki, Karnali, Bagmati, and Koshi have all allocated significant funding to enhance tourism access and amenities.
Bhairahawa customs office achieves 87% of revenue target
The Bhairahawa Customs Office collected Rs 9.519 billion in fiscal year 2024/25, achieving 87.07% of its Rs 10.933 billion target. The revenue was collected over the period starting from mid-July last year.
Extension likely for Butwal–Narayangadh road project
With the current deadline set to expire on July 24 (Shrawan 8), the Butwal–Narayangadh road expansion project is expected to receive a nearly one-year extension. Progress stands at about 70%, though some sections—like Daunne—still face traffic issues.
Manaslu region sees rise in foreign tourist arrivals
A total of 12,512 foreign tourists visited the Manaslu region in the last fiscal year, up by 2,729 from the previous year’s 9,783. Tourist numbers have steadily increased since the pandemic, which saw only 194 visitors in 2020/21.
Locals protest Upper Tamor hydropower project in Taplejung
Residents in Taplejung have demanded a halt to the 285 MW Upper Tamor Hydropower Project, citing that the project threatens a sacred site of the Yakthung (Limbu) community. A local committee has been formed to oppose the construction.
Samriddhi Finance and Pokhara Finance agree to merge
Samriddhi Finance and Pokhara Finance signed a merger deal on Sunday. Both companies have requested NEPSE to halt trading of their shares during the process. Pokhara’s paid-up capital stands at Rs 108 million, while Samriddhi’s is Rs 81 million. The merger ratio is yet to be finalized.
Ncell’s ‘Sadhai On Karodpati’ offer suspended by regulator
Ncell’s customer reward plan, Sadhai On Karodpati, has been suspended by the Nepal Telecommunications Authority (NTA). While Ncell claims it had prior approval, the regulatory body intervened, halting the promotional campaign unexpectedly.
National Life to purchase Habib Bank shares in Himalayan Bank
National Life Insurance is set to buy Habib Bank’s shares in Himalayan Bank at Rs 118 per share. Although multiple parties expressed interest, only National Life met the requirements to proceed with the transaction.
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