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 an economy showing pockets of resilience amid deeper structural and governance challenges. While financial indicators such as rising market capitalisation, dividend declarations, planned NRB investments and renewed interest in hydropower and industrial zones suggest underlying confidence and long-term potential, real economic momentum remains constrained by policy uncertainty, weak public spending, regulatory bottlenecks and social tensions.
Persistent disruptions—from unlawful demands in hydropower projects and disputes in the construction sector to stalled local development due to shrinking grants—highlight gaps in state capacity, coordination and enforcement. At the same time, reversals like the rollback of migrant health fees and initiatives such as bamboo construction guidelines and agricultural success stories reflect attempts to balance growth with social inclusion and sustainability.
Overall, the picture is of an economy at a crossroads: capable of recovery and innovation, but still vulnerable to governance failures, political instability and uneven policy execution.
NEPSE dips slightly despite midweek rebound, market capitalisation increases
The Nepal Stock Exchange index slipped marginally by 7.66 points, or 0.29 percent, last week to close at 2,615.25 points, despite recovering from a fall below the 2,600 mark. The index moved within a range of 45.58 points, reaching a high of 2,632.81 and a low of 2,587.23. While the market rose on three trading days and declined on two, development bank stocks posted the highest gains at 2.15 percent, whereas the ‘others’ group recorded the biggest loss. Total turnover fell by 7.72 percent to Rs 19.37 billion, though overall market capitalisation increased by Rs 13 billion to Rs 4.39 trillion.
NRB plans Rs 1.2 billion investment from employees’ security fund in financial institutions
Nepal Rastra Bank has announced plans to place Rs 1.2 billion from the Employees’ Security Fund into banks and financial institutions. Interested institutions are required to apply by December 22, indicating the amount they seek and the interest rate offered on fixed deposits. Of the total amount, Rs 960 million will be deposited with Class A commercial banks, Rs 180 million with Class B development banks, and Rs 60 million with Class C finance companies. Eligible institutions must have been in operation for at least two years, meet minimum capital adequacy standards, maintain a credit-to-deposit ratio within eight percent, and keep net non-performing loans below three percent.
Minister Ghising urges progress on 225 MW Saptagandaki multipurpose hydropower project
Minister Kulman Ghising has called for advancing the 225 MW Saptagandaki multipurpose hydropower project to address riverbank erosion and promote development in Chitwan and Nawalparasi. Speaking at a program organized by the Chitwan Chamber of Commerce in Narayanghat, he stressed the need to protect the religious site of Devghat while utilizing upstream reservoirs such as Budhigandaki and Tanahun for flood control, irrigation and inland water transport. First studied in 1985 with Japan’s JICA support, the project could irrigate large tracts of farmland while limiting submergence around Devghat.
Govt rolls back health check-up fee hike for migrant workers
The interim government has withdrawn the recent increase in medical examination fees for Nepalis seeking foreign employment following public backlash. Under the latest decision by the Prime Minister and the Ministry of Labour, Employment and Social Security, the fee has been restored to NPR 6,400 from the earlier NPR 9,500 imposed after the Gen-Z movement. The ministry has clarified that no service provider is allowed to charge more than the fixed amount and warned of strict legal action against violators. The move aims to ease financial pressure on workers and curb arbitrary fee collection.
Public-private partnership planned for industrial zones in Chitwan, Hetauda and Rupandehi
Industrial development efforts are set to gain momentum through public-private partnerships, with new industrial zones planned in Shaktikhor of Chitwan, Mayurdhap of Hetauda and Motipur of Rupandehi. The Federation of Nepalese Chambers of Commerce and Industry and Nepal Infrastructure Bank Limited signed a memorandum of understanding on Friday to jointly develop and operate the zones. FNCCI Director General Dr Ghanshyam Ojha and Bank Deputy CEO Surya Bahadur Tamang signed the agreement. FNCCI President Birendra Raj Pandey said the partnership marks an initial step, while Bank CEO Krishna Bahadur Adhikari described it as a foundation for expanding industrial infrastructure with private sector participation.
Irresponsible public spending weakening trust in the state, warns Minister Sinha
Industry, Commerce and Supplies Minister Anil Kumar Sinha has warned that careless use of public funds without clear outcomes is eroding citizens’ trust in the state. Speaking at a policy dialogue organized by SEJON, he said dissatisfaction reflected in recent Gen-G protests is rooted in weak economic governance. He acknowledged slow progress in controlling black marketing and monopolistic practices due to structural constraints. Experts at the event pointed to flawed budgeting, political instability, wasteful spending and poor service delivery, calling for digital reforms, outcome-based expenditure and innovation-led investment.
Hydropower investors alarmed by unlawful demands for free shares and royalties
Investors in the hydropower sector have raised concerns over increasing project disruptions driven by demands for free shares and cash in the name of Gen Z groups and local communities. Developers say they already comply with legal requirements, including allocating 10 percent shares to locals and paying royalties, but additional unlawful demands are hindering construction. IPPAN President Ganesh Karki said such pressures, along with arbitrary royalty claims by some local governments, are discouraging private investment. He warned that government inaction could jeopardize a sector that supplies more than 80 percent of Nepal’s electricity.
Belbas residents seek fair compensation from Tanahu hydropower project
Residents of Belbas in Byas Municipality–13 have demanded fair compensation, citing potential risks from the under-construction 140 MW Tanahu Hydropower Project. Locals fear their settlement may be partially submerged once the project becomes operational. Community representatives said the Asian Development Bank’s detailed study report identifies Belbas as an at-risk area. They also alleged that embankments built to protect the project office have diverted the Seti River toward their village. According to the affected committee, around 170 households could be impacted.
Construction entrepreneurs accuse minister of harassment under Gen Z government
Nepal Construction Entrepreneurs’ Federation President Ravi Singh has accused Minister Kulman Ghising of harassing construction professionals and discouraging the industry. Addressing the Bagmati Province Construction Entrepreneurs’ Federation assembly, Singh alleged that the minister has used inappropriate language toward businesspeople during project site visits. He claimed that instead of facilitating construction work, the minister’s conduct and public remarks have demoralized entrepreneurs and harmed the sector. Singh also accused the Gen Z-led government of continuing earlier practices of using state mechanisms for political purposes and called for serious government intervention to protect the construction industry.
Nepal and Bangladesh expand economic cooperation in energy, investment and tourism
Nepal’s Ambassador to Bangladesh, Ghanashyam Bhandari, has said bilateral economic cooperation between the two countries is steadily growing, particularly in energy trade, investment and tourism. Speaking at a Nepal–Bangladesh Economic Cooperation program in Rajshahi, he emphasized the role of the private sector in strengthening ties and encouraged closer engagement with Nepali partners. First Secretary Yojana Bomjan highlighted priority areas including trade, education, networking and people-to-people exchanges. The event drew participants from government bodies, business groups, chambers of commerce, tourism operators and the media.
Twelve insurance companies declare dividends for FY 2081/82
So far, 12 insurance companies—seven life insurers and five non-life insurers—have announced dividends for fiscal year 2081/82. Life insurance firms declaring dividends include National Life, Sanima Reliance Life, Prabhu Mahalaxmi Life, Sun Nepal Life, IME Life, Nepal Life and Citizen Life. Non-life insurers include Nepal Insurance, Sagarmatha Lumbini Insurance, Shikhar Insurance, Siddhartha Premier Insurance and IGI Prudential. Dividend rates range between 5 percent and 25 percent in cash and bonus shares. Some companies, including IME Life and Nepal Life, have scheduled book closures for early Poush.
Northern Gorkha showcases successful human–wildlife coexistence in Manaslu region
Northern Gorkha, including Chumchet, Larke, Samdo and Dharamshala in the Manaslu Conservation Area, has emerged as a model for peaceful coexistence between humans and wildlife. Communities in the region rely on agriculture, tourism, livestock and medicinal herbs, leading to frequent interaction with species such as snow leopards, blue sheep and Himalayan tahr. Improved forest management, livestock protection measures and conservation practices have reduced conflict. Cultural respect for wildlife, compensation mechanisms and alternative livelihoods supported by conservation authorities and local governments have helped turn conflict into cooperation.
Grant reductions stall local development projects in Rukum Paschim
Development activities in Rukum Paschim have been badly affected by repeated cuts in federal and provincial grants, leaving many local projects unfinished or unimplemented. In Musikot and Chaurjahari municipalities, initiatives related to roads, drinking water, health, education and social infrastructure approved by municipal assemblies have failed to move forward due to funding shortfalls and delays. Over the past three fiscal years, Musikot Municipality has lost more than Rs 292 million in grants, while Chaurjahari Municipality has seen cuts exceeding Rs 196 million. Local representatives warn that declining grants have weakened service delivery, increased financial liabilities and compromised development quality in one of the country’s least-resourced districts.
Pokhara’s ultralight flights lose momentum amid rising costs and fewer tourists
Ultralight aircraft services, popularly known as “butterfly planes,” which once attracted adventure tourists to Pokhara, have seen a sharp decline in demand. Operators cite soaring costs after the Civil Aviation Authority raised takeoff and landing charges, pushing ticket prices from NPR 8,500 to NPR 17,500. Natasha Shrestha of Avia Club Nepal said that while the service initially relied on Russian pilots, it is now operated by young Nepali pilots. Despite Pokhara’s scenic geography and potential to promote Nepal internationally, high operating fees and a lack of supportive tourism policies have reduced daily flights to just four.
Round-the-clock lakeside operations challenge Pokhara entrepreneurs
The decision to promote Pokhara’s Lakeside area as a 24-hour tourist destination following a November 2023 High Court interim order has created difficulties for local entrepreneurs. Business owners report problems related to staffing, security and meeting tourists’ late-night expectations. The 42-point code of conduct meant to regulate operations has not been fully enforced, resulting in noise disturbances, mismanagement and safety concerns. Leaders of hotel and restaurant associations say only a limited number of businesses can operate effectively at night and argue that the policy has failed to significantly boost tourism. They suggest reconsidering full 24-hour operations until proper infrastructure and monitoring systems are in place.
Former migrant worker finds success in vegetable farming in Nawalpur
After returning from foreign employment in Malaysia, Mitra Bahadur Gaha Magar of Kawasoti-4, Nawalpur, has built a successful livelihood through vegetable farming. Cultivating seasonal vegetables on 31 kathhas of leased land, he earns around Rs 700,000 annually after expenses, with cucumbers as his primary crop. Magar credits family support and says working hard at home has proven more rewarding than working abroad. His income increased significantly after the area was included in the Vegetable Super Zone under the National Agriculture Modernisation Programme, which provides irrigation, subsidies, technical assistance and market access to hundreds of farmers.
Government issues national guidelines for bamboo-based construction
The government has released national guidelines for bamboo-based construction to promote sustainable and locally sourced building practices. The guidelines were unveiled by Minister Kulman Ghising at a joint event organized by the Ministry of Urban Development and Habitat for Humanity Nepal. Ghising said bamboo construction could generate employment, strengthen rural economies, reduce dependence on imported materials and help narrow the trade deficit. He also highlighted bamboo’s potential use in housing, hydropower camps and as an alternative to zinc roofing. The guidelines outline standards for harvesting, treatment and the design of earthquake-resistant and environmentally friendly structures.
Banke farmer turns mushroom business into global opportunities for children
Padmika Bam, a farmer from Kohalpur Municipality in Banke, has transformed mushroom cultivation into a profitable enterprise that enabled her to educate her children in Nepal and abroad. After nearly two decades of struggle and early financial losses, her Namuna Mushroom Farm now earns between Rs 600,000 and Rs 700,000 per month. Through her income, Bam supported one child working as a nurse in Jumla and two others studying in the UK and Japan. In addition to running her business, she trains others in farming and small enterprises, emerging as a prominent local entrepreneur and role model.
QFX modernizes Nepal’s cinema industry and drives economic growth
Nepal’s cinema industry has undergone a major transformation over the past two decades, largely driven by QFX Multiplex. Beginning with the renovation of Jai Nepal Hall in 2001, QFX introduced digital projection, advanced sound systems and modern seating. Today, it operates 16 theaters with 38 screens across the country. Beyond entertainment, the cinema sector supports employment, investment, tourism and cultural promotion, generating more than NPR 150 million annually. Despite setbacks during the COVID-19 pandemic, QFX has revitalized movie-going, supported quality Nepali films and positioned multiplexes as hubs of economic, technological and cultural development.
Share trader Dipendra Agrawal re-arrested on market manipulation charges
Nepal Police’s Central Investigation Bureau has re-arrested share trader Dipendra Agrawal in Kathmandu for allegedly manipulating stock prices through fraudulent transactions. Previously arrested in Shrawan and later released, Agrawal was taken into custody again following a preliminary investigation by the Securities Board of Nepal. Authorities allege that he bought shares of Joshi Hydropower Development Company and spread misleading information in violation of the Securities Act, 2063, earning illegal profits of around NPR 4.9 million. He is also accused of conducting artificial trades using multiple TMAS accounts to inflate the share price of Corporate Development Bank. Agrawal, 42, is a resident of Biratnagar and remains under investigation.
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