KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest economic and business updates from Nepal reflect a mix of robust market activity, government reforms, and sectoral developments signaling cautious optimism for the country’s growth trajectory. The Nepal Stock Exchange (NEPSE) surged impressively by over 21 points, supported by a significant trading volume exceeding Rs 16 billion, demonstrating strong investor confidence across all sectors.
Simultaneously, the rise in gold prices amidst steady silver rates highlights fluctuating commodity markets. Regulatory bodies like Nepal Rastra Bank are enhancing transparency with new dividend guidelines for payment institutions, while the Ministry of Home Affairs is strengthening immigration services through fresh appointments.
Infrastructure and energy sectors are actively pursuing expansion, with NEA inviting private investments for major transmission projects and the Energy Ministry proposing EIA waivers for smaller hydropower plants to accelerate development. Policy reform calls by former PM Prachanda emphasize the need for an evolved state approach to foster economic progress.
Challenges remain, including delays in agricultural activities and protests against new luxury taxes on precious metals, reflecting the tension between policy and ground realities. Other positive trends include the digitalization of employee performance evaluations by NEA, increasing participation in pension funds, growth in international tourism, and notable revenue growth in hospitality and land sectors. Together, these indicators suggest Nepal is navigating a complex but forward-moving path towards economic modernization and resilience.
NEPSE rises over 21 points as turnover exceeds Rs 16 billion
The Nepal Stock Exchange (NEPSE) index on Monday recorded a double-digit gain, increasing by 21.76 points to settle at 2,892.72. The Sensitive Index, which monitors the performance of Class ‘A’ companies, also rose by 0.89%. Transactions were carried out by 311 companies, with a total trading volume of 35.64 million shares worth Rs 16.32 billion. This came after Sunday’s turnover, which had peaked at nearly Rs 21 billion—the highest in 11 months. All 13 NEPSE sub-indices closed positively, with development banks, microfinance, non-life insurance, and the ‘Others’ category rising by more than 1%, while the remaining sectors saw increases below 1%.
Gold price rises by Rs 400 per tola; silver price remains steady
On Monday, the price of gold increased by Rs 400 per tola, moving from Rs 193,300 the previous day to Rs 193,700. The record peak price was Rs 197,900 per tola on April 22. Meanwhile, the price of silver remained unchanged today, trading at Rs 2,285 per tola.
NRB announces dividend distribution guidelines for payment service providers
Nepal Rastra Bank (NRB) has introduced the “Dividend Distribution Guidelines, 2025” targeted at institutions licensed to provide payment-related services. Executive Director Kiran Pandit explained that the purpose of these guidelines is to bring greater transparency and organization to the process of profit distribution among these entities.
45 new section officers deployed to TIA immigration office
In a move aimed at immigration reform, the Ministry of Home Affairs has assigned 45 newly recruited section officers to the Immigration Office at Tribhuvan International Airport (TIA) starting Monday. Govinda Rijal, Director General of the Immigration Department, confirmed that Secretary Narhari Ghimire has taken over as Chief of the Immigration Office. The officers began work after completing a three-day orientation.
NEA seeks private investment for four high-voltage transmission projects
Nepal Electricity Authority (NEA) has invited Letters of Intent from private entities for the construction of four high-voltage transmission lines under a Public-Private Partnership (PPP) arrangement. NEA aims to expand the country’s transmission network by constructing 322 kilometers of lines through the Build, Own, Operate, and Transfer (BOOT) model. The estimated total investment for these four projects stands at USD 320 million, or approximately Rs 42 billion.
Energy ministry suggests EIA waiver for hydropower projects up to 200 MW
The Ministry of Energy, Water Resources and Irrigation has proposed that hydropower projects with a capacity of up to 200 MW be exempt from Environmental Impact Assessments (EIA). Ministry spokesperson Sagar Raj Gautam noted that although this idea was initially discussed informally, it has now been officially presented in writing to the Ministry of Forest and Environment. A technical committee will be established to carry out further discussions.
Prachanda stresses need for policy reform to achieve economic goals
Pushpa Kamal Dahal ‘Prachanda’, former Prime Minister and Chairman of the CPN-Maoist Centre, has emphasized that achieving economic progress in Nepal requires significant policy shifts and a transformation in the state’s overall approach. During a meeting at his residence in Khumaltar with newly elected officials of the Confederation of Nepalese Industries (CNI), he underlined the essential role of the private sector in driving the country’s economic development.
Design phase nearly complete for Kalanki–Basundhara ring road expansion
Nearly seven years after the initial agreement, survey and design work for the second phase of the ring road expansion from Kalanki to Basundhara—funded through a Chinese government grant—is nearing completion. The Detailed Project Report (DPR) is expected within the next five months. Project Chief Krishna Nath Ojha stated that the Chinese technical team has conducted site inspections and brought the design process to its final phase.
Nepal Airlines leads domestic jet fuel consumption rankings
Nepal Airlines emerged as the top consumer of aviation turbine fuel (ATF) among domestic airlines in the last fiscal year. Among 40 airlines operating international services from Nepal, the government-owned carrier surpassed Himalayan Airlines—which had led the previous year—in terms of jet fuel usage.
Contribution-based pension fund sees participation from over 4,290 institutions
The number of institutions joining the contribution-based pension fund managed by the Employees Provident Fund has continued to grow. By the end of fiscal year 2024/25, around 4,290 entities—including government offices, public institutions, boards, and organized organizations—had registered for the program, according to EPF spokesperson Damodar Prasad Subedi.
NEA launches digital system for evaluating staff performance
Nepal Electricity Authority (NEA) has rolled out an online system for assessing employee performance. As per Rule 59 (29) of the NEA Employees’ Service and Conditions Regulation, 2018, the new digital platform—implemented from July 17—allows for electronic submission and management of performance evaluations, with safeguards for data privacy and secure record-keeping.
Paddy plantation progress lags behind last year’s pace
With the first week of Shrawan coming to a close, the pace of paddy planting remains behind schedule. This year’s plantation coverage is nearly 12% lower than the same period last year, which had seen 84.6% completion. The area designated for cultivation this year is estimated at 1.38 million hectares, down from 1.42 million hectares the previous fiscal year.
Jewelers close shops in protest over new tax and VAT rules
Jewelry traders have launched protests against the newly enforced 2% luxury tax on gold and jewelry and a 13% VAT on diamonds and precious stones, which came into effect on July 17. In response, many traders began shutting down their businesses, claiming the policy is unfeasible. They officially informed the Inland Revenue Department on July 16 that the implementation of the policy is not workable.
Land revenue hits Rs 6.55 billion in final month of fiscal year
In Asar, the concluding month of FY 2024/25, the government collected Rs 6.55 billion in land revenue—the highest single-month collection in two years. According to the Department of Land Management and Archives, this amount surpasses the previous peak of Rs 5 billion seen in FY 2022/23.
Labour Ministry reports progress in digital services and policy reform
The Ministry of Labour, Employment, and Social Security claims to have achieved notable progress in policy reform and digital transformation. In its one-year performance report under Minister Sharatsingh Bhandari, the ministry highlighted milestones such as complete digitization of its services and improvements in the administration of both foreign employment and the domestic labour market.
Insurance claims reach Rs 290 million after Rasuwa floods
Following the flood and landslide in Rasuwa on July 7, insurance companies have received claims amounting to Rs 290 million. According to the Insurance Board, nine firms—including Shikhar Insurance, Neco Insurance, and Sagarmatha Lumbini Insurance—have reported total claims of Rs 289.2 million. Shikhar Insurance alone received 10 claims totaling Rs 161.2 million, while Neco Insurance handled three claims worth Rs 51.2 million.
Twenty hired to protect crops from monkeys and wild boars in Arghakhanchi
To address the issue of wildlife damaging crops, the Division Forest Office of Arghakhanchi has appointed 20 individuals to guard against monkey and wild boar intrusions. On Sunday, the office released the names of those selected, and they were called for contract signing and orientation on Monday.
Manang welcomes increasing number of international tourists
Manang district is witnessing a steady rise in international tourist arrivals each year. According to the Annapurna Conservation Area Project (ACAP) office in Manang, a total of 37,732 foreign visitors came during fiscal year 2024/25. This included 22,477 men, 15,249 women, and 6 others. Data from the Dharapani checkpoint shows that 2,554 were from SAARC nations, while 35,178 came from other countries, according to ACAP Chief Dhak Bahadur Bhujel.
Nepal-China border crossing at Byas, Darchula to open from July 23 to 25
The border point between Nepal and China located at Byas Rural Municipality–1 in Darchula is scheduled to be open from July 23 through July 25. The local administration in Taklakot, Tibet, has informed traders from Changru and Tinkar that Pillar No. 1 of the Tinkarbhanyang border will be accessible during this period. Traders are currently making preparations to travel to Taklakot for business activities.
Hotel Radisson reports revenue of almost Rs 760 million in 8.5 months
Hotel Radisson, situated in Lazimpat, Kathmandu, has declared earnings of Rs 758 million during the first eight and a half months of the current fiscal year. Managed by Oriental Hotels, the five-star property had posted revenues of Rs 1.19 billion in the previous fiscal year. It recorded Rs 1.11 billion in 2023 and Rs 596 million in 2022.
Nearly 50% of applicants to receive shares in Himalayan Bank’s FPO
Close to half of those who applied for Himalayan Bank’s Further Public Offering (FPO) will be allocated shares. The bank has issued a total of 9,250,469 units. According to the Securities Allotment Directive, each applicant will be allotted 10 units, resulting in 925,046 applicants receiving shares. Among these, nine applicants will be allotted 11 units each, while the rest will receive 10 units per person.
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