KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic and governance landscape reflects a mix of strategic investment, administrative strain, and social vulnerabilities, as seen in the government’s push for cross-border energy projects alongside persistent institutional challenges.
While the state is allocating billions to regional power connectivity and holding large sums in public-sector funds, weak oversight and delayed reforms persist—evident in the absence of private-sector representation on the Investment Board and the severely underfunded Gen Z reconstruction initiative. Economic indicators remain uneven: loan growth is sluggish, land and housing revenues continue to fall, and customs collections underperform despite rising imports.
Social concerns also deepen, highlighted by the alarming rise in migrant worker deaths and public anxieties over UK immigration changes. At the same time, local-level initiatives—from business registration camps and dairy subsidies to rural electrification—demonstrate pockets of administrative responsiveness, even as infrastructure projects like the Nagdhunga tunnel face diplomatic scrutiny.
Overall, the data points to an economy and governance system navigating investment ambitions amid structural weaknesses, fiscal pressures, and significant social risks.
Nepal to invest Rs 3 billion in joint companies building cross-border power lines
The Government of Nepal has approved an investment of Rs 3 billion in equity for joint companies constructing the Inaruwa–Purnia and Dodhara–Bareilly 400 kV transmission lines with India. Of the total, Rs 1 billion will be invested in Nepal-based joint companies and Rs 2 billion in the India-based company. The decision, published in the Gazette on November 17, also exempts this investment from the Act Prohibiting Investment Abroad, 1964. The combined estimated cost for both lines stands at Rs 23.18 billion.
Govt report shows Rs 40 billion held across 10 public-sector funds
A recent government assessment reveals that ten public institutions collectively hold Rs 40 billion in funds allocated for retirement, pension, security, and medical liabilities. Rastriya Banijya Bank accounts for the largest portion at Rs 25.71 billion, followed by Agriculture Development Bank with Rs 12.20 billion. Other entities include Nepal Airlines Corporation with Rs 610 million and Public Service Broadcasting Nepal with Rs 420 million. The report warns that self-managed funds may face risks of misuse and difficulties in settling retirement-related payments.
Average of 127 Nepali migrant workers dying monthly this fiscal year
An average of 127 Nepali migrant workers died each month during the first four months of fiscal year 2025/26, up from 110 per month in the same period last year. According to the Foreign Employment Board, families of 510 deceased workers received financial support totaling around Rs 510 million. Additionally, 294 workers who became disabled abroad received assistance. Malaysia was identified as the destination with the highest risk among the four major labor destinations.
Gen Z reconstruction fund collects far less than projected
The government-established Physical Infrastructure Reconstruction Fund—created to repair damage from the Gen Z protest—has gathered only Rs 82.8 million as of Wednesday, two months after being set up on September 24. Ministry of Finance officials say the amount is drastically below the estimated Rs 80 billion in damages. Major contributions include Rs 10 million each from Nepal Life Insurance and the Construction Business Development Council. Officials attribute the low participation to private-sector losses and the absence of a rule permitting banks to use CSR funds for contributions.
Fruit imports climb to Rs 404.4 million at Kakarvitta as revenue underperforms
Fruit imports through the Kakarvitta checkpoint reached Rs 404.4 million during the first four months of fiscal year 2025/26—an increase of Rs 198.9 million from the same period last year, according to Mechi Customs Office Information Officer Ishwor Kumar Humagain. Despite the rise in imports, the customs office failed to achieve its revenue target for Kartik, collecting Rs 1.308 billion against its goal of Rs 1.639 billion.
Private sector loses all representation on Investment Board Nepal
Representation from the private sector on the Investment Board Nepal (IBN), formed under the public–private partnership model, has dropped to zero for nearly a year. The terms of the three private-sector representatives—former heads of key business federations—expired last mid-March, and replacements have yet to be appointed. The issue surfaced during Wednesday’s board meeting, chaired by Prime Minister Sushila Karki, where the absence of private-sector members raised concerns about the board’s effectiveness.
Commerce Department steps up market inspections
The Department of Commerce, Supplies, and Consumer Protection has increased market monitoring, inspecting nine bottled-water companies in Kathmandu on Thursday alone following consumer complaints about water quality. The department issued warnings and levied penalties under the Consumer Protection Act, 2018. Over the first four days of this week, inspectors visited 24 establishments, imposing fines of up to Rs 50,000 for various violations in an effort to ensure a cleaner and more consumer-friendly market environment.
Revenue from land and housing transactions continues to decline
Income generated from land and housing transactions has been steadily falling during the first four months of the current fiscal year, according to the Department of Land Management and Archives. Despite government efforts to boost real estate activity, revenue remains below expectations. As of November 16, Land Revenue Offices nationwide collected Rs 2.745 billion—down from Rs 3.289 billion in the first month of the fiscal year—indicating a persistent slowdown in the real estate sector.
Loan disbursement rises by Rs 82.93 billion but growth slows amid caution
Private-sector lending grew by 1.5 percent—or Rs 82.93 billion—during the first three months of the current fiscal year, marking a slowdown from the 2.5 percent growth seen during the same period last year. Bankers attribute the reduced pace to an economic downturn and waning business confidence following the Gen Z protests of September 8 and 9. Although the weighted average lending rate of commercial banks dropped to 7.50 percent in the third month of FY 2025/26 from 9.33 percent a year earlier, demand for loans remains subdued.
Syangja spends 27.84% of federal budget, 7.10% of provincial budget in first four months
Syangja district utilized about 27.84 percent of its federal budget and 7.10 percent of its provincial budget during the first four months of the fiscal year. Of the Rs 7.499 billion federal allocation, Rs 2.87 billion has been spent, while provincial expenditure reached only Rs 179.8 million out of Rs 2.531 billion. In both cases, recurrent expenditures outpaced capital spending.
Tulsipur revenue office achieves 80.25% of target despite obstacles
The Inland Revenue Office in Tulsipur collected Rs 721.6 million in the first four months of the fiscal year, achieving 80.25 percent of its Rs 899.1 million target. Chief Tax Officer Shridhar Tandon attributed the shortfall to disruptions caused by the Gen Z protest, which damaged the revenue and land revenue offices, reduced capital gains tax income, and hindered promotional activities. Still, collections surpassed last year’s Rs 703.8 million during the same period.
Remote Laprak village receives electricity after four-year delay
Laprak village in Dharche Rural Municipality–4, Gorkha, has finally been connected to the national power grid after waiting four years. Nepal Electricity Authority Gorkha Chief Chij Bahadur Gurung confirmed that electricity began flowing on Thursday, with meter installations starting at the Ward 4 office. Technical teams are currently installing meters for the 60 households in the new settlement. Although 80 applications have been submitted so far, authorities expect up to 520 in total. The new supply—supported by three transformers—is expected to resolve the chronic low-voltage problems caused by the old micro-hydro system.
Khajura launches mobile camp for business registration
Khajura Rural Municipality in Banke has started a 12-day mobile service camp to provide business registration and renewal at residents’ doorsteps. Chief Administrative Officer Dil Bahadur Paudel said the initiative, part of the FY 2025/26 policy, aims to simplify tax-related procedures. During the campaign, persons with disabilities who run businesses will receive a 50% discount on registration and renewal fees. The camp began in Ward 1 and will continue through November 30, concluding at the Rural Municipality office.
Fertilizer storage facilities in Birgunj reach full capacity
The Madhes Provincial Office of the Krishi Samagri Company in Birgunj is facing a critical storage shortage as all fertilizer warehouses are now full. Acting Provincial Chief Durga Prasad Pandey confirmed that the existing godowns, with a combined capacity of 26,000 metric tons, have reached maximum capacity. Two additional godowns with space for 10,000 metric tons have been leased urgently. The sudden storage pressure follows the arrival of several major shipments, including 50,000 metric tons of urea and 60,000 metric tons of DAP, ensuring adequate stock for the region.
Aandhikhola RM announces milk production subsidy
Aandhikhola Rural Municipality in Syangja has introduced a subsidy of Rs 4 per liter of milk for local dairy farmers, implemented in partnership with a local agricultural cooperative. The production-based subsidy will be allocated according to data from the cooperative’s collection centers. The Rural Municipality has also supplied the cooperative with key equipment, including a 5,000-liter chilling vat, five milk analyzers, five deep freezers, and 50 collection cans. Chairperson Bishwa Paudel said the program aims to increase farmers’ earnings, curb exploitation by middlemen, and promote growth in the dairy sector.
Shreenagar Agritech shares officially listed on NEPSE
Shares of Shreenagar Agritech Industries have been officially listed on the Nepal Stock Exchange (NEPSE). A total of 3.26 million public shares, representing 20% ownership, and 13.05 million promoter shares, representing 80%, have been listed. NEPSE has set the opening trading range between Rs 100.59 and Rs 301.77. The company’s shares are scheduled to begin trading next Sunday, enabling investors to participate in the newly listed agritech firm.
Super Madi Hydropower announces 5% bonus shares
Super Madi Hydropower has proposed a dividend distribution based on last fiscal year’s profits. In a board meeting held Thursday, the company recommended a 5% bonus share issuance and an additional 0.2642% cash dividend to cover taxes on the current paid-up capital. The company has also scheduled its 16th Annual General Meeting (AGM) for December 19. Shareholders listed on NEPSE by December 2 will be eligible for the dividend and to attend the AGM.
UK immigration changes spark concern among Nepali migrants
Nepali migrants are alarmed by the UK government’s proposed overhaul of its immigration rules, announced by Home Secretary Shabana Mahmood on Thursday. The plan would double the required period for Indefinite Leave to Remain (ILR) from five to ten years. According to solicitor Deepak Bhattarai, migrants who legally reside in the UK but receive government benefits for more than 12 months could face a waiting period of up to 20 years—one of the longest in Europe. The new rule is expected to affect an estimated 2.6 million migrants who arrived since 2021.
Japan raises concern over state-owned operators for Nagdhunga tunnel
Japan has expressed objections regarding the selection of operators for the Nagdhunga–Sisne Khola Tunnel, now nearing completion. Japanese Ambassador Toru Maeda emphasized that government-owned companies or firms blacklisted by global institutions such as JICA, the World Bank, and ADB should not be allowed to compete in the international tender. Project Director Saujanya Nepal stated that the five-year operating contract requires the selected international firm to partner with a Nepali company to develop local operational capacity. The tunnel is expected to open by early February 2026.
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