KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic landscape reflects a mix of progress and structural strain. The country attracted over Rs 35 billion in foreign investment commitments in just three months, signaling investor confidence, while successful completion of two hydropower projects and steady growth in firms like Yeti Pharmachem and Hulas Steel highlight resilience in infrastructure and industry.
However, systemic issues persist—major road expansion remains incomplete after five years, paddy farmers struggle to sell at government rates, and a regulatory impasse with India has stalled exports from key manufacturers like Aarti Strips. The Nepal Electricity Authority’s aggressive disconnection of power to industries over unpaid dues, amid disputes on billing transparency, underlines tension between governance and business.
Meanwhile, consumer behavior during Tihar—with strong trade in silver coins, dry fruits, and flowers—reveals robust seasonal spending despite inflationary pressures. Budget cuts of over Rs 125 billion following Gen Z protests also signal a politically responsive but fiscally constrained government.
Nepal attracts over Rs 35 billion in foreign investment pledges in three months
In the first quarter of the 2025/26 fiscal year, Nepal received foreign investment commitments totaling more than Rs 35 billion. The Department of Industry reported that between mid-July and mid-October, 311 industries secured investment pledges amounting to Rs 35.13 billion. Among these, seven are large-scale, four medium-sized, and 300 small-scale industries.
NEA cuts power supply to industries with unpaid dues
The Nepal Electricity Authority has started disconnecting electricity to industries that failed to pay premium charges for using dedicated and trunk lines during load-shedding periods. On Tuesday, the NEA cut off power to several companies, including Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills. Their outstanding dues range from Rs 321 million to Rs 1.60 billion.
Govt reduces budget by over Rs 125 billion following Gen Z protests
In response to protests led by Gen Z, the new government has slashed more than Rs 125 billion from this year’s national budget. Shortly after taking office, Finance Minister Rameshore Khanal formed a committee to review which projects could face budget cuts. Following a Cabinet decision on September 22, the government trimmed Rs 114.10 billion from nearly a dozen ministries focused on development.
Around 41,000 silver coins sold during this year’s Tihar
Roughly 41,000 silver coins were sold during this year’s Tihar festival, according to the Nepal Rastra Bank. This year, the central bank only issued silver coins, as gold coins (Asarfi) were unavailable due to a shortage of 999.99 purity gold. The coins, each weighing 10 grams, were sold at daily rates based on the market value of silver.
Industrialists reject NEA charges, question lack of transparency
Nepal’s top industrialists have refused to pay the controversial trunk and dedicated line electricity charges levied by the Nepal Electricity Authority (NEA). They argue that the charges are baseless and harm both legal and economic stability. The issue affects more than 30 large industries. Business leaders criticized NEA’s lack of proof, particularly the absence of TOD (time-of-day) meter data, and accused the authority of abruptly cancelling administrative reviews and demanding 5% bank guarantees without clear justification.
Farmers unable to sell paddy at government-set rates
Despite the government setting the support price for paddy in mid-July, farmers are still struggling to sell their harvest at the designated rate. Traders have not adhered to the fixed prices, leaving farmers without buyers. The government had set the price of coarse paddy at Rs 3,463.81 per quintal and medium paddy at Rs 3,628.33 per quintal.
Dry fruits worth Rs 2.5 billion traded during Tihar season
Dry fruit sales reached approximately Rs 2.5 billion during the Tihar season. Often gifted as part of “Bhai Masala,” dry fruits are a major driver of seasonal trade. Customs Department data shows that imports of dry fruits—including almonds, cashews, walnuts, pistachios, raisins, figs, and apricots—totaled Rs 2.45 billion between mid-July and mid-September.
Flower prices surge during Tihar due to import restrictions
Consumers have raised concerns over the rising prices of flowers during Tihar. The price hike has been blamed on restrictions on flower imports and limited domestic supply. Previously, flower garlands cost around Rs 800 per bunch, but this year the price has soared to Rs 1,200.
Nearly 470 kg of marigold flowers sold in a single day in Tanahun
The Chandeshwari Fruits and Vegetable Producers’ Group in Chimleshwar, Myagde Rural Municipality–4, Tanahun, sold 468 kilograms of marigold flowers in one day. The flowers, sold on Monday, were purchased by traders from Pokhara at a price of Rs 300 per kilogram.
Road expansion project still lags behind after five years
Despite being launched in 2018, Nepal’s major road expansion project remains incomplete. The initiative aimed to convert two-lane roads into six-lane urban roads and four-lane rural roads. Sections under construction include Kakarbhitta–Laukahi, Kanchanpur–Kamala, Kamala–Dhulikhel–Pathlaiya, Narayanghat–Butwal, and Butwal–Gorusinghe–Chanauta. The project is being financed by the World Bank and the Asian Development Bank, but no section has yet been fully completed.
Two hydropower projects completed on Rahughat River in Myagdi
Tundi Power Company has successfully completed two hydropower projects—Chimkhola–Rahughat–Mangale (35.5 MW) and Upper Rahughat (48.5 MW)—on the Rahughat River in Myagdi district. The combined capacity of the run-of-the-river projects is 84 MW, and they are now connected to the national grid and generating electricity commercially. According to project manager Pushpa Dangi, both projects were completed within four years and can operate at full capacity depending on water flow. The total investment for the projects is estimated at Rs 13 billion.
Bhadrapur tax office collects Rs 752 million in first quarter
The Bhadrapur Inland Revenue Office in Jhapa district collected Rs 752.7 million in the first three months of the 2025/26 fiscal year. This figure represents 16.9% of the office’s annual target of Rs 4.45 billion, according to Chief Tax Officer Gopal Bahadur Thapa. The office had aimed to collect Rs 871 million during the same period.
Lumbini receives over 740,000 tourists in nine months
From January to September 2025, a total of 741,578 visitors traveled to Lumbini, the birthplace of Lord Buddha, according to the Lumbini Development Trust. This figure includes 482,626 domestic tourists, 186,442 from India, and 72,510 from other countries. The numbers mark a decline compared to previous years.
Siddhartha Bank to hold 24th AGM on November 16
Siddhartha Bank has scheduled its 24th Annual General Meeting (AGM) for November 16. The meeting will consider a proposal to distribute a 5% bonus share and a 5.53% cash dividend (for tax purposes) on current paid-up capital. Other agenda items include amending the Memorandum and Articles of Association, authorizing the Board of Directors to carry out necessary changes, and appointing new directors and auditors.
Aarti Strips halts exports due to lack of BIS certification
Aarti Strips Pvt. Ltd., a multinational company based in Budhiganga, Morang, has been unable to export its products for the past two months due to a delay in obtaining certification from India’s Bureau of Indian Standards (BIS). As a result, the company has scaled back production by 90%. The lack of BIS approval has also impacted other iron and steel companies operating in the region.
Royal Rice Mill sees 8.48% drop in trade
Royal Rice Mill Pvt. Ltd., which sells products under brands like Mustang, Kayara, and Nepal Gold, reported an 8.48% decline in trade volume in 2025 compared to 2024. The company’s total business fell from Rs 1.757 billion in 2024 to Rs 1.608 billion in 2025. For comparison, its business in 2023 was Rs 1.379 billion.
Hulas Steel posts Rs 12.73 billion in annual trade
Hulas Steel Industries, operated by the Golchha family, recorded a trade volume of Rs 12.734 billion in the last fiscal year. This compares to Rs 12.712 billion in 2024, Rs 12.074 billion in 2023, Rs 15.252 billion in 2022, Rs 11.385 billion in 2021, and Rs 6.087 billion in 2020.
Yeti Pharmachem reaches nearly Rs 4 billion in annual business
Yeti Pharmachem Distributors Pvt. Ltd. posted an annual trade volume of Rs 3.835 billion last fiscal year. The company’s trade has shown consistent growth, with figures of Rs 3.62 billion in 2024, Rs 3.261 billion in 2023, Rs 2.864 billion in 2022, and Rs 2.617 billion in 2021.
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