KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape on May 21 reflected both policy shifts and structural challenges. The stock market opened with optimism following the appointment of Dr. Biswo Poudel as Governor of Nepal Rastra Bank (NRB), but early gains quickly reversed, indicating fragile investor confidence despite leadership changes.
Dr. Poudel’s immediate focus on regulatory oversight and monetary policy independence suggests a pivot toward institutional strengthening. Meanwhile, NRB’s decision to withdraw excess liquidity underlines its cautious stance amid inflationary pressures.
On the fiscal front, rising imports nearing NPR 1.5 trillion underscore growing consumption and external dependency, even as land revenue increased despite economic sluggishness. In infrastructure and governance, the incomplete land classification across most municipalities threatens administrative paralysis, while delays in electrification projects highlight persistent implementation gaps.
The launch of Yango’s ride-sharing app, alongside renewed support for startups and professionals by banks and political parties, signals growing interest in innovation and services.
Domestic tourism is rising, reflecting changing travel patterns, yet challenges persist in essential services, accountability, and local development. Overall, the day’s developments paint a picture of a transitional economy balancing ambition with systemic inertia.
NEPSE closes lower after initial surge on Governor appointment
The Nepal Stock Exchange (NEPSE) saw significant volatility on Wednesday. Although the market opened on a high note following the appointment of Dr. Biswo Poudel as Governor of Nepal Rastra Bank, it eventually closed in the red, falling by 6.93 points to 2,670.51.
NEPSE had surged by 83 points within the first four minutes, reflecting investor enthusiasm, but the rally was short-lived. Total turnover reached NPR 10.69 billion. Of the listed companies, 153 saw declines while only 93 posted gains.
Gold price jumps by Rs 5,000 per tola after global spike
Local gold prices surged by Rs 5,000 per tola on Wednesday, reflecting a sharp rise in global rates. After several days of stability, gold reached Rs 189,800 per tola, while silver rose by Rs 50 to Rs 1,990 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. On the global market, gold traded at USD 3,321 per ounce.
NRB to withdraw NPR 5 billion from banks on Thursday
Nepal Rastra Bank will withdraw NPR 5 billion from the banking system on Thursday to manage excess liquidity. A bidding session is scheduled for 3 PM for 21-day instruments. Banks and financial institutions can submit bids in multiples of NPR 10 million, decreasing by NPR 5 million until the full amount is covered. On Sunday, the Bank had already withdrawn NPR 2.4 billion from circulation.
Governor Poudel assumes office, vows stronger oversight
Dr. Biswo Nath Poudel officially took charge as the 18th Governor of Nepal Rastra Bank on Wednesday at the Bank’s Baluwatar office. In his first remarks, he highlighted that strengthening supervision of banks and financial institutions would be a top priority. “It’s not enough to simply draft rules; we must ensure strong enforcement,” he said, also stressing the need to enhance loan quality.
Governor Poudel approves printing of new banknotes
After assuming office, Governor Biswo Poudel signed a decision to print new NPR 500 and NPR 1,000 banknotes. He clarified the distinction between monetary and fiscal policies, stating, “Monetary policy is not subordinate to fiscal policy—it is independent. However, if monetary policy hinders fiscal policy execution, adjustments will be made.”
Finance Minister meets newly appointed NRB Governor
Newly appointed Nepal Rastra Bank Governor Dr. Biswo Poudel met with Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Wednesday morning. During the meeting at the Ministry of Finance, the Finance Minister congratulated the new governor and emphasized the importance of aligning monetary and fiscal policies. He also expressed confidence that Governor Poudel would take key steps to address economic and financial challenges.
Imports near NPR 1.5 trillion in first 10 months of FY 2080/81
Nepal’s import volume reached NPR 1.474 trillion in the first ten months of the fiscal year 2080/81, according to the Department of Customs. This marks a 13.11% increase compared to the same period last year, when imports totaled NPR 1.303 trillion. The data underscores growing domestic consumption and reliance on foreign goods despite efforts to encourage local production.
Minister Khadka calls NEA’s white paper fact-based
Energy Minister Deepak Khadka said on Wednesday that the white paper recently issued by the Nepal Electricity Authority (NEA) accurately reflects the organization’s financial status. Speaking at a meeting of the Infrastructure Development Committee at Singha Durbar, the minister stated that the report clarifies long-standing uncertainties. He also announced plans for an official audit of the NEA.
Land revenue from property deals rises 14% amid slowdown
Despite economic sluggishness, land and housing transaction revenue rose by 14.32% in the first 10 months (Shrawan to Baisakh) of the current fiscal year. Revenue climbed from NPR 33.01 billion last year to NPR 37.74 billion this year. This includes registration fees and several other taxes collected by land revenue offices.
Nagdunga–Naubise route to close daily for construction
The Nagdunga–Naubise road, a key route into Kathmandu, will be closed daily from 10:30 AM to 3 PM starting Jestha 10 (May 24) until Jestha 25 (June 8) for construction work. According to Chief District Officer Rishiram Tiwari, the closure is being coordinated with the district administrations of Kathmandu and Dhading. Previously, work was conducted during nighttime closures.
Birgunj tax office exceeds nine-month revenue target
The Internal Revenue Office in Birgunj surpassed its nine-month target by collecting NPR 6.65 billion against a goal of NPR 6.13 billion. This amounts to 108.44% of the targeted revenue collection, according to the Internal Revenue Department.
Gwarko flyover to open by end of Jestha
The flyover at Gwarko in Lalitpur is nearing completion and is expected to be handed over to the government by Jestha 15 (May 29). The construction company reported that while the project is in its final phase, the opening could be delayed if heavy monsoon rains continue.
Maoist MP demands clarity on NEA’s profit-loss audits
Maoist Centre lawmaker Madhav Sapkota has called for a joint discussion to review financial audits of the Nepal Electricity Authority (NEA). Speaking during a meeting of the Infrastructure Development Committee, Sapkota stressed the need for transparency regarding audits conducted under former NEA chiefs Kulman Ghising and Hitendra Dev Shakya. He urged that both current and former executives, along with the Auditor General, be summoned for detailed discussions.
Government to offer subsidy on organic certification for agri exports
The government plans to introduce subsidies for organic certification and lab testing costs related to exportable agricultural products in the upcoming fiscal budget. This initiative, expected in the budget presentation on Jestha 15, builds on a prior commitment to provide an 8% subsidy for agricultural and herbal goods fully produced in Nepal. However, traders have raised concerns that earlier subsidy promises were not fulfilled.
Yango launches ride-sharing service in Kathmandu Valley
International tech firm Yango Group has rolled out its ride-sharing platform in Nepal, beginning with trial operations in the Kathmandu Valley. The Yango Ride service, available via the City Services app on Google Play and the App Store, connects users with local transport providers. The app includes built-in navigation, mapping, and a smart dispatch system to enhance efficiency for both drivers and passengers.
Only 167 municipalities complete land classification in three years
Three years after the Land Use Regulations came into effect, just 167 out of 753 municipalities have completed land classification. If the remaining 586 fail to meet the deadline by Asar (June–July), land administration functions, such as parcel division, will be suspended. A similar halt took place in Bhadra 2081, affecting 620 municipalities. The updated regulation, revised on Bhadra 27, 2081, extended the deadline to Asar 2082.
Nepali Congress urges budget support for startups
The Nepali Congress has called on the government to allocate funding in the FY 2082/83 budget to support new entrepreneurs. During a joint policy dialogue organized by the party’s Library and Resource Center Department and its entrepreneurship wing, a formal proposal was presented to Finance Minister Bishnu Prasad Paudel, highlighting the need to back innovation and startups.
NMB Bank signs deal with ACAN to serve professionals
NMB Bank has signed an agreement with the Association of Chartered Accountants of Nepal (ACAN) to deliver specialized banking services tailored for ACAN members. This collaboration reflects the bank’s strategy to promote inclusive and value-driven financial services and acknowledges the contribution of professionals to financial literacy and economic development. Custom loan packages and services will be made available under the partnership.
Rishi Trade Center completes Upper Mustang motorbike expedition
Rishi Trade Center, the official distributor of CFMOTO motorcycles in Nepal, has completed a six-day adventure ride to Upper Mustang. The ride, which began on Baisakh 25 (May 8) from Naxal, featured 17 riders and 13 crew members. Riders traveled through Pokhara, Muktinath, Lo Manthang, and the Korala border before returning to Kathmandu. Participants included 14 Nepalis, one Chinese, and two Indian nationals.
Domestic tourism rises in Baglung as foreign visitors decline
Domestic tourism in Baglung has seen a surge even as international tourist numbers decline. The district is drawing increasing numbers of local travelers for religious and educational visits.
Sites like Baglung Kalika Temple, Panchakot, and the Shaligram Museum have seen traffic grow, often causing congestion and parking issues. Other attractions — such as Nepal’s longest suspension bridge, Bhairavsthan Temple, Gaighat Waterfall, and Dhorpatan Hunting Reserve — are also experiencing rising footfall.
Electrification stalled in Salyan despite pole installation
Many villages in Salyan remain without electricity even a year after poles were installed. In areas like Gadapani in Kapurkot Rural Municipality and Tatke, Jimali, Wada, and Swikot in Kumakh Rural Municipality, wiring and line connections have not yet begun. In some settlements, poles haven’t even been erected, further delaying full electrification.
Comment