KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is showing mixed signals of resilience, reform, and rising consumer activity. Festive gold and silver purchases nearing Rs 2 billion and a Rs 300 per tola gold price hike reflect strong consumer sentiment despite high inflation. At the same time, the government is pushing structural reforms—such as expanding the Town Development Fund’s mandate and enforcing tariff approvals for ISPs—to boost transparency and infrastructure investment.
Agriculture and industry remain key areas of focus, with modern rice harvesting in Banke and model Akabare chili farming in Bhojpur demonstrating productivity gains, while fertilizer tenders aim to meet growing demands. Meanwhile, electricity consumption is projected to drop during Tihar due to industrial slowdowns, and disputes with industrialists over trunk line payments highlight ongoing friction between business and regulation.
Rising tourism in Annapurna, the entry of 1,500+ EVs through Korala, and steady customs revenue collection underscore shifting trade dynamics and growing environmental and regional connectivity interests. Overall, the data point to a transitioning economy grappling with reform, modernization, and localized success stories amid persistent governance and infrastructure challenges.
Gold price increases by Rs 300 per tola in domestic market
Gold prices in Nepal rose by Rs 300 per tola on Monday, with the Federation of Nepal Gold and Silver Dealers’ Association setting the rate at Rs 2,53,500 per tola—up from Rs 2,53,200 the previous day. Silver prices also saw a modest rise of Rs 5, reaching Rs 3,280 per tola, compared to Rs 3,275 the day before.
Government plans to expand town development fund’s scope
Urban Development Minister Kulman Ghising has announced that the government is working to broaden the scope of the Town Development Fund. The goal is to make the fund more effective by channeling investments into productive sectors instead of keeping resources idle. Ghising proposed allocating funds to initiatives like electric public transportation and charging infrastructure.
Banks to stay open during Tihar holidays except on Bhai Tika
Banks and financial institutions will remain operational throughout the Tihar festival, except on the day of Bhai Tika. Nepal Rastra Bank issued a directive instructing banks to stay open to support customs clearance and critical transactions. The Bank and Financial Institution Regulation Department emphasized that essential banking services must be accessible during the entire holiday period.
Nepalis purchase nearly Rs 2 billion in gold and silver on Dhanteras
On the occasion of Dhanteras, Nepalis bought approximately Rs 1.97 billion worth of gold and silver. Around 70 kilograms (6,001 tola) of gold were sold, totaling Rs 1.54 billion, and roughly 1,500 kilograms (128,602 tola) of silver worth Rs 430.8 million were purchased. Despite high prices, major jewelry markets in New Road, Bishalbazar, Baneshwor, and Koteshwor saw heavy footfall.
ISPs told to seek approval for tariffs before rollout
The Nepal Telecommunications Authority (NTA) has ordered Internet Service Providers (ISPs) to obtain prior approval before implementing any new tariffs. Responding to public complaints about arbitrary pricing, the NTA issued a notice reminding ISPs that, under Section 42 of the Telecommunications Act, all customer charges must be cleared in advance by the authority.
Airfare discounts approved for senior citizens and differently-abled
The Civil Aviation Authority of Nepal (CAAN) has decided to offer airfare discounts for senior citizens and passengers with disabilities. The decision was made during a meeting chaired by CAAN’s Director General and attended by representatives from domestic airlines. Airlines have been instructed to immediately enforce the new discount provisions.
Power demand likely to dip during Tihar holidays
Electricity consumption is expected to decline during the Tihar festival as many industrial zones temporarily shut down, according to the Nepal Electricity Authority (NEA). While residential usage once spiked during Tihar, the recent trend shows reduced demand due to business closures across hotels, restaurants, and other sectors.
Over 4.7 lakh metric tons of fertilizer tendered so far
The government has called tenders for 471,300 metric tons of chemical fertilizer out of its annual target of 600,000 metric tons for the current fiscal year. Authorities stated that adequate measures are in place to ensure smooth supply for farmers. A total of Rs 28.82 billion has been allocated for fertilizer imports.
Industrialists refuse to pay NEA dues over trunk line dispute
Industrialists have filed formal objections with the Nepal Electricity Authority (NEA), refusing to pay dues related to dedicated and trunk power lines. They allege the legal process has been manipulated to force payments. Despite previously seeking administrative reviews, no decision was made. The review process was canceled after Kulman Ghising assumed office as Energy Minister.
Tihar inspections find no harmful substances in sweets
The Department of Food Technology and Quality Control found no inedible or hazardous substances in sweets during its Tihar market inspections. Using mobile food labs, the department tested samples from 40 major outlets across the Kathmandu Valley, including popular shops like Rameshwar and Aangan. No artificial coloring or harmful ingredients were detected.
Mechi customs office achieves 95 percent of revenue target in Q1
The Mechi Customs Office, located at Kakarbhitta on Nepal’s eastern border, collected 95 percent of its revenue target for the first quarter of fiscal year 2025/26. Out of the Rs 4.36 billion target, the office collected Rs 4.15 billion, according to Information Officer Ishwar Kumar Humagain.
Over 1,500 electric vehicles enter Nepal via Korala border
A total of 1,538 electric vehicles have entered Nepal through the newly opened Korala border point in Mustang within the first one and a half months of operation. Other goods such as clothes, shoes, and slippers are also being imported via this route. With the Rasuwagadhi and Tatopani checkpoints closed due to landslides and other issues, Korala has become the primary entry point for Dashain-related imports.
Annapurna Base Camp and Maurice Herzog trail attract young trekkers
The Annapurna Base Camp and Maurice Herzog trekking routes are becoming increasingly popular among young travelers, thanks to their manageable distances and access to mountains, waterfalls, lakes, and diverse wildlife. The Maurice Herzog trail, named after the French climber who summited Annapurna in 1950, has been open since 2023. The surge in footfall has prompted locals in places like Humkhola and Sanghikharka to open temporary hotels and campsites.
Fish yield in Rupa Lake falls by 20,000 kilograms
Fish production in Rupa Lake, Kaski, has decreased significantly this year. The Rupa Lake Restoration and Fisheries Cooperative reported a drop of approximately 20,000 kg compared to last year. While last year’s yield stood at 40,085 kg, only 21,910 kg of fish were harvested this year. The cooperative has been involved in conservation and fish farming in the lake for 24 years.
Bhojpur’s Akabare chili farming recognized as national model
Commercial cultivation of Akabare chili in Pauwadungma Rural Municipality, Bhojpur, has gained national attention as a learning hub for farmers and agricultural experts across Nepal. With the use of advanced farming techniques, local farmers have achieved notable profits, drawing visitors from various districts. Currently, about 400 hectares are dedicated to Akabare chili farming, involving nearly 900 farmers.
Banke farmers harvest rice with modern equipment
Rice harvesting is in full swing in Banke, with farmers utilizing modern agricultural machinery. Fields are busy with activities like cutting, transporting, and threshing. Following the end of the monsoon and favorable weather, farmers have quickened their pace to avoid crop damage, working from early morning until dusk to protect their year-long efforts.
Large cardamom price climbs to Rs 88,000 per 40 kg in Taplejung
The price of large cardamom (Alaichi) has surged in Taplejung, reaching Rs 88,000 per man (40 kg) after the Dashain festival. Previously priced at Rs 80,000, the rate has increased by Rs 8,000 over the past one and a half weeks, according to local traders.
Luxury hotel ‘The Oberoi Kathmandu’ to be developed in Ravibhawan
A new high-end hotel under the brand ‘The Oberoi Kathmandu’ is set to be built in Ravibhawan, Kathmandu, with an investment of over Rs 7 billion. Siprabhya Hotel and Resort Pvt. Ltd. is developing the project with a total estimated cost of Rs 7.12 billion. The hotel will feature 75 luxury rooms and premium facilities.
Hulas Steel logs Rs 12.73 billion in trade in last fiscal year
Hulas Steel Industries, under the Golchha Group, reported a trade volume of nearly Rs 12.73 billion in fiscal year 2024/25. The company had logged Rs 12.71 billion in 2023/24, Rs 12.07 billion in 2022/23, Rs 15.25 billion in 2021/22, Rs 11.38 billion in 2020/21, and Rs 6.08 billion in 2019/20, showing consistent performance across years.
Grameen Bikas and Samaj Microfinance launch joint operations post-merger
Grameen Bikas Microfinance, based in Butwal, and Samaj Microfinance of Sarlahi have commenced unified operations following their merger. The newly combined institution officially began integrated financial services on Sunday. The merged entity now has a combined capital of Rs 1 billion, with Grameen Bikas previously holding Rs 980 million and Samaj Microfinance Rs 20 million.
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