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 policy landscape reflects a mixed picture of cautious optimism and structural challenges. The stock market experienced a downturn, with NEPSE dipping nearly 10 points and daily turnover falling, indicating weakened investor sentiment.
In contrast, the sharp rise in gold prices and the increase in foreign labor permits—nearly 800,000 issued this year—signal both economic insecurity and sustained reliance on remittance-driven growth.
Fiscal inefficiencies persist, as over Rs 5 billion in unspent budget was returned by ministries, while Bagmati Province utilized just 32.51% of its allocation in nine months.
At the same time, the government is mobilizing Rs 25.25 billion through Treasury bills and launching global audits of banks to meet IMF transparency standards.
Politically, Bhattarai’s unexplained resignation from the NRB Governor recommendation committee and continued industrial stagnation highlight governance and recovery hurdles.
Meanwhile, strategic developments—from EV import regulations and hydropower progress to international agreements on data protection and tourism booms in Everest—show forward momentum in select sectors, albeit amidst broader systemic inertia.
NEPSE dips nearly 10 points, daily turnover declines
The Nepal Stock Exchange (NEPSE) closed lower on Tuesday, shedding 9.96 points to settle at 2,688.32. The Sensitive Index also dropped by 3.91 points, while the Float and Sensitive Float indices fell by 0.86 and 1.29 points, respectively.
Trading activity was also down, with 22.55 million shares of 319 listed companies changing hands, generating a total turnover of NPR 8.32 billion. This marks a decline from Monday’s trading volume of NPR 8.77 billion, reflecting reduced investor engagement.
Gold price soars by Rs 6,900, approaches Rs 200,000 per tola
The price of gold in Nepal jumped by Rs 6,900 on Tuesday, reaching Rs 197,900 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the surge reflects international market trends and marks a record high domestically.
Foreign employment durges: Nearly 800,000 labor permits issued in past year
The Department of Foreign Employment reports that 794,845 individuals received labor permits for foreign employment between Baisakh and Chaitra 2081 B.S. (April 2024–March 2025). This represents an increase of 83,422 compared to the previous year’s figure of 711,423.
The rise indicates growing demand for overseas job opportunities among Nepali workers, according to department officials.
Indian Minister Khattar inspects Arun-III Hydropower Project
India’s Minister for Power and Housing Affairs, Manohar Lal Khattar, visited the Arun-III Hydropower Project in Nepal on Tuesday. He was accompanied by Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka.
The 900-MW project, being developed by India’s SJVN, was reviewed by both ministers. According to the Indian Embassy in Kathmandu, discussions were held to assess the project’s progress and address ongoing challenges.
SC orders release of frozen bank accounts linked to Durga Prasai’s hospitals
The Supreme Court has issued an interim order to unfreeze bank accounts belonging to two hospitals associated with businessman Durga Prasai. The accounts had been frozen following his arrest in connection with a violent protest on Chaitra 15, 2081 B.S. (March 28).
The order came in response to separate writ petitions filed by Dr. Anjali Karki, Operations Director of B & C Medical College Teaching Hospital and Research Center Pvt. Ltd., and Purwanchal Cancer Hospital Pvt. Ltd. A single bench led by Justice Hari Prasad Phuyal issued the decision.
Bhattarai steps down from Central Bank Governor Recommendation Committee
Bijayanath Bhattarai has resigned from the committee tasked with recommending a new Governor for Nepal Rastra Bank. Formed on March 24 and chaired by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, the committee also includes former NPC Vice-Chair Dr. Bishwanath Paudel and former NRB Governor Bhattarai himself.
Though Bhattarai’s departure has been confirmed, the reason behind his resignation remains undisclosed. Notably, the committee has yet to hold any meetings since its formation. The NRB Act prohibits individuals affiliated with political parties from being appointed governor, although past practices have often overlooked this rule.
Govt to mobilize Rs 25.25 billion through Treasury Bills
The government aims to raise Rs 25.25 billion in internal debt via Treasury bills. Of this, Rs 20.25 billion will be used to roll over maturing debt, while Rs 5 billion will be fresh borrowing. The Public Debt Management Office held the auction on Monday, with distribution scheduled for Tuesday.
Treasury bills are a common tool used alongside development bonds and savings bonds to meet internal financing needs.
‘Land Ordinance not linked to tea estate’
Land Management Minister Balram Adhikari has refuted claims that the controversial land ordinance favors Giribandhu Tea Estate. He emphasized that the ordinance has no connection to the estate and that the issue has been misunderstood.
Although the House of Representatives has already passed the ordinance, it remains stalled in the National Assembly due to ongoing debate. Minister Adhikari also revealed that separate committees have been formed to revise the Land Survey Act (2019) and Land Act (2021).
Over Rs 5 Billion in budget unused and returned by ministries
The Ministry of Finance has revealed that government bodies surrendered Rs 5.09 billion in unused funds by mid-March of the current fiscal year 2081/82. According to the Financial Procedure and Fiscal Accountability Act, unutilized allocations must be returned by mid-Chaitra.
Finance Ministry spokesperson Shyam Prasad Bhandari stated the reclaimed amount will be redirected to projects showing better implementation progress. Among the major contributors, MCA-Nepal returned Rs 2 billion from its Rs 13.36 billion budget, while the Ministry of Energy, Water Resources, and Irrigation returned Rs 2.35 billion.
‘Industries still reeling from pandemic fallout’
A significant number of industries shut during the COVID-19 pandemic have yet to recover. According to Trilochan Kandel, Senior Vice-President of the FNCCI’s Bagmati chapter, 40% of industries in the province remain closed, and just 10% of operational ones are turning a profit.
He noted many industries are functioning solely to service bank loans, but growing debt and insufficient collateral are restricting access to further credit.
Nepal holds Rs 11.52 billion in shares of global financial bodies
The Government of Nepal currently holds institutional shares worth Rs 11.52 billion in global financial organizations, including the World Bank, IMF, ADB, and AIIB. The investments were made under formal agreements and reflect Nepal’s international financial commitments.
Performance review initiated for NOC Chief Bhatta
The Ministry of Industry, Commerce, and Supplies has launched a formal review of Dr. Chandika Prasad Bhatta, Executive Director of Nepal Oil Corporation. He was asked to submit a performance report covering up to the end of Chaitra, which he provided on Sunday.
Appointed for a three-year term in Falgun 2080, Bhatta had signed a performance agreement that will now serve as the basis for evaluation.
NRB launches global audit of 10 leading banks
Nepal Rastra Bank has initiated international audits for 10 major banks as part of a commitment to the IMF under the Extended Credit Facility. The move aims to verify the actual financial status of banks amid concerns over misleading asset quality disclosures.
The central bank began the auditor selection process 13 months ago to fulfill IMF transparency conditions.
Bagmati Province spends only 32.51% of budget in nine months
In the first three quarters of FY 2081/82, Bagmati Province has spent only 32.51% of its Rs 64.54 billion budget. According to provincial authorities, capital spending stands at 28.24%, and recurrent expenditure at 40.51%.
Nepal, Malaysia sign data protection agreement
A five-year MoU has been signed between Malaysia’s DPIA Asia and Nepal’s One Cover Pvt. Ltd. to assist in developing Nepal’s first personal data protection law. The agreement is expected to serve as a model for other Asian countries.
Crackdown on smuggling yields Rs 419 million in seizures
Armed Police Force (APF) in Parsa has intensified border security, resulting in the confiscation of smuggled goods worth Rs 419.2 million over the past year. Commander Radheshyam Dhimal reported increased seizures of clothing, electronics, motor parts, and groceries. Two sniffer dogs have also been deployed at Birgunj customs.
Marsyangdi Project affected families receive compensation
Nineteen families displaced by the Marsyangdi Hydropower Center in Aabukhaireni have received a total of Rs 217.8 million in compensation—Rs 178.7 million for land and Rs 39 million for houses. The rate was fixed at Rs 18.49 million per ropani. Local residents who had been demanding relief have expressed satisfaction.
Kumari Bank to freeze accounts missing national ID information
Kumari Bank has warned that accounts opened after mid-January without national ID details will be frozen if the information isn’t submitted by mid-July. Customers are given 90 days from the account opening or until the Asar-end deadline to comply.
Govt forms panel to regulate EV imports amid quality concerns
The government has formed a committee to regulate electric vehicle imports following concerns over substandard models entering Nepal. The new guidelines will specify who can import EVs and set quality standards.
Though EVs enjoy tax incentives, the central bank recently reduced the loan limit for purchasing them from 80% to 60%.
Italian heritage experts visit Kathmandu and Panauti
A four-member delegation from Italy visited the Kathmandu Valley and Panauti as part of an academic and cultural exchange. The tour was organized in collaboration with Tribhuvan University to promote international heritage preservation efforts.
Everest region faces overcrowding as nearly 700 tourists arrive in one day
Tourist activity has surged in the Everest region, with 694 visitors recorded on Monday, including 608 foreigners. Hotels are reportedly fully booked amid ideal spring weather and increased flight frequency to Lukla.
Cold storage facility brings relief to farmers in Terhathum
A newly established cold storage unit in Sabla, Myanglung Municipality-9, has started operations, offering much-needed support to local farmers. With a 1,000-metric-ton capacity, the facility is a joint initiative of the Koshi Province government, Myanglung Municipality, and Kiyachu Agricultural Cooperative.
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