KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and development landscape is currently marked by mixed signals, reflecting both progress and persistent structural challenges. The stock market saw a dip as NEPSE fell by 9.70 points amid declining turnover, while gold and silver prices also dropped, indicating market uncertainty.
The central bank’s move to absorb Rs 30 billion from the banking system highlights efforts to manage excess liquidity. In public finance, budget paralysis in Dharan and stalled infrastructure projects like the Mai Bhagwati Stadium underscore governance and coordination issues.
On the positive side, initiatives such as Rs 30 million in agricultural subsidies, expanded health insurance coverage for the destitute, and a Rs 1.25 billion South Korean grant for Gandaki Institute of Technology signal progress in social welfare and international cooperation.
Meanwhile, regulatory bodies like the Kathmandu Valley Development Authority are stepping up efforts to curb unregulated urban expansion. These developments collectively reveal a nation striving for reform and growth while still grappling with inefficiencies in budget execution, institutional coordination, and market volatility.
NEPSE drops by 9.70 points, closes at 2,767.2
The Nepal Stock Exchange (NEPSE) index fell by 9.70 points on Wednesday, closing at 2,767.2. Turnover also declined compared to Tuesday. The total transaction amount stood at Rs 5.20 billion, down from Tuesday’s Rs 5.63 billion. Out of the traded companies, 59 saw their share prices rise, 188 declined, and two remained unchanged. By sector, the hotel and tourism group posted the strongest gain, rising 2.03 percent. The trading group, however, recorded the sharpest drop, falling 1.06 percent. Other sectors saw declines of less than 1 percent. Banking was down 0.19 percent, development banks 0.76 percent, finance 0.53 percent, hydropower 0.58 percent, investment 0.39 percent, life insurance 0.32 percent, manufacturing and processing 0.67 percent, microfinance 0.40 percent, non-life insurance 0.58 percent, and the “others” group 0.10 percent.
Gold, silver prices see decline on Wednesday
The price of gold declined on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold was fixed at Rs 193,500 per tola, dropping Rs 1,600 per tola. Similarly, the price of silver also dropped by Rs 25 to Rs 2,255 per tola.
NRB absorbs Rs 30 billion from banking system
The Nepal Rastra Bank (NRB) withdrew Rs 30 billion from the banking system through a bidding process on Wednesday. According to the central bank, financial institutions submitted their bids online until 3:00 PM. The fund absorption will remain effective until September 14. Bids can be placed in amounts ranging from a minimum of Rs 1 billion, with increments of Rs 500 million, up to the total announced amount. Only licensed “A,” “B,” and “C” class banks and financial institutions are eligible to participate in the process, NRB said. The measure is part of the central bank’s regular open market operations aimed at managing liquidity in the financial sector.
Nepal Investment Mega Bank unveils festive vehicle loan
Nepal Investment Mega Bank Limited has introduced a special vehicle loan offer with an attractive interest rate of 6.29%, calculated based on the base rate of 5.79% plus a 0.5% premium. Launched in anticipation of the Dashain, Tihar, and Chhath festivals, the scheme is designed to support customers looking to purchase a new vehicle during the festive season. This limited-time offer is available through all of the bank’s branches across the country. The bank currently operates 275 branches, 65 extension counters, 264 ATMs, and 60 branchless banking points, ensuring widespread access to modern banking services throughout Nepal.
Broadway Infosys wins Digital Talent Development Award at WITSA Global AI Summit
Nepali IT training company Broadway Infosys Pvt. Ltd. has won the Digital Talent Development Award from the World Innovation, Technology and Services Alliance (WITSA). The award was presented on Tuesday, August 19, during a special ceremony at the WITSA Global AI Summit 2025 held in Taipei, Taiwan. According to the organizers, Broadway was recognized for its contribution to Nepal’s education and technology sector through professional IT training, as well as for its role in producing skilled human resources. The award also acknowledged the company’s significant contribution to Nepal’s broader digital transformation.
Dharan stuck without budget for new fiscal year
Dharan Sub-Metropolitan City is facing a financial deadlock as the budget for the new fiscal year remains unapproved, more than a month past the legal deadline. The municipal assembly has yet to pass the budget due to ongoing disagreements between Mayor Harkaraj Rai (Sampang) and Deputy Mayor Indra Bikram Begha. According to the Local Government Operation Act, 2017, local governments are required to approve their annual budget by Asar 10, but Dharan failed to meet this deadline. As a result, key municipal functions have been brought to a halt. Development projects, employee salaries, distribution of social security allowances, public service delivery, and other financial activities are currently stalled.
Health insurance coverage extended to destitute citizens
The Ministry of Health and Population is moving forward with the integration of social health security programs under a unified system. As part of this initiative, Health and Population Minister Pradeep Poudel has approved the Destitute Citizen Medical Treatment Program Operation Guidelines, 2080 (First Amendment 2082). The amended guidelines introduce a single-door system for covering the treatment costs of eight serious illnesses under the Destitute Citizen Treatment Program, which will now be managed through the Health Insurance Board. With this change, the program officially falls under the broader health insurance framework.
Gandaki Institute of Technology Secures Rs 1.25 Billion Grant from South Korean Government
The Gandaki Institute of Technology has signed a grant agreement worth Rs 1.25 billion with the Government of South Korea for infrastructure development. The institute operates under the Gandaki Technical Education and Vocational Training Academy (GTEVTA). The agreement was signed in Kathmandu today by Finance Secretary Ghanashyam Upadhyaya on behalf of the Government of Nepal and South Korean Ambassador to Nepal, Park Tae-Young, representing the South Korean government. Under the agreement, the Korea International Cooperation Agency (KOICA) will act as the implementing agency for the project on South Korea’s behalf.
Rs 30 million in subsidies distributed to farmers in four districts
The National Agricultural Modernization Project has distributed nearly Rs 30 million in subsidies to farmers in Myagdi, Baglung, Mustang, and Parbat during the last fiscal year 2024/25. According to the project’s implementation unit, a total of Rs 29.216 million in subsidies was provided to farmers under the Commercial Agricultural Production and Processing Center (Zone) program, which supports the cultivation and processing of oranges, apples, potatoes, chyangra, and bangur. The subsidies were allocated for greenhouses, fruit processing, agricultural tools, small-scale irrigation, nursery establishment, and livestock shelter improvement.
Kathmandu Valley Development Authority to crack down on illegal plotting and construction
The Kathmandu Valley Development Authority (KVDA) has announced plans to intensify its crackdown on illegal land plotting, housing, and unapproved infrastructure development in the Valley. Project Chief and District Commissioner Subhash Basnet said the Authority is actively working to regulate and systematize urbanization in the region. He emphasized that planning permission from the KVDA is legally required for the construction of physical infrastructure — including land plotting, institutional, commercial, and public buildings, as well as mixed residential structures, assembly halls, cultural venues, banquet halls, hospitals, schools, and colleges.
Construction of Mai Bhagwati Stadium stalled due to budget shortage
The construction of the international-level Mai Bhagwati Stadium at Rajduwali Tappu in Ilam Municipality–10, Godak, has been left incomplete due to a lack of funding. Work on the stadium began seven years ago but has stalled over the past three fiscal years due to no new budget allocations. The construction site is now overgrown with bushes, and several partially built structures are showing signs of deterioration. A total of Rs 40.823 million has been spent so far on the project, funded through complementary grants from the Koshi Province Government and Ilam Municipality. This amount covered the construction of walls, parapets, and railings over four phases. According to municipal engineer Kshitij Dahal, only about 10 percent of the overall stadium construction has been completed to date.
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