KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed picture, marked by cautious optimism in capital markets alongside persistent structural challenges. The NEPSE index’s moderate gain and the surge in gold prices point to renewed investor interest, possibly influenced by monetary assurances from NRB Governor Poudel, who emphasized stable and consultative policymaking.
However, stress in the banking sector—evident in calls for tax relief and Nepal Telecom’s sharp profit decline—signals underlying financial pressure. Concurrently, cement exports and customs revenues show resilience in trade, while development setbacks, such as halted river projects, stalled infrastructure, and hailstorm-damaged crops, reveal governance and climate vulnerabilities.
Policy consistency, improved investor confidence, and infrastructure accountability remain key to sustaining growth momentum.
Stock market gains 19.14 points on Thursday
The NEPSE index rose by 19.14 points on Thursday, the week’s final trading session, ending at 2,688.91. The total turnover was Rs 9.82 billion, slightly below Wednesday’s Rs 10.45 billion.
Stock prices went up for 104 companies, fell for 142, and stayed unchanged for one. The Sensitive Index, which measures performance of key companies, recorded a sharper increase. Among all sectors, the banking group posted the largest gain, rising by 3.94%.
Gold price increases again
Gold prices rose by Rs 1,700 per tola on Thursday, reaching Rs 191,500 for hallmark gold, according to the Federation of Nepal Gold and Silver Dealers’ Association. This follows a Rs 5,000 jump the previous day, continuing the upward trend.
NRB Governor Poudel pledges stable and consultative policies
Dr. Biswo Nath Poudel, the new governor of Nepal Rastra Bank, has vowed to prioritize policy stability and transparency. During a meeting with representatives from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), he said that the central bank will formulate policies based on consultation and consistency. He also highlighted the vital role of the private sector in driving the economy.
Nepal Insurance Company gets SEBON approval for rights shares
Nepal Insurance Company has received approval from the Securities Board of Nepal (SEBON) to issue rights shares equal to 40% of its paid-up capital. It will offer 6,576,937 rights shares at a face value of NPR 100 each. The company has already appointed NIMB S Capital as the issue and sales manager.
Nepal Telecom sees nearly 49% fall in net profit
Nepal Telecom (NT), a government-owned company, posted a 48.67% decline in net profit for the third quarter of the current fiscal year. Its profit dropped to Rs 2.84 billion from Rs 5.54 billion in the same period last year—a decrease of over Rs 2.69 billion. The company blamed the drop on the increasing use of Over-the-Top (OTT) services such as WhatsApp, Viber, Messenger, and email, which have eaten into voice call and SMS revenue.
Bankers call for tax relief amid rising defaults and weak earnings
Amid declining income and growing loan defaults, bankers are pushing for a reduction in income taxes. They argue that the worsening financial environment, coupled with falling revenues and difficulties recovering loans, justifies policy changes. The situation is worsened by a sluggish real estate market, which has made it difficult to auction collateral.
Cement exports exceed Rs 2.5 billion in 10 months
Nepal exported over Rs 2.5 billion worth of cement and clinker in the first ten months of fiscal year 2081/82, according to the Customs Department. By the end of Baisakh 2082, exports to India had reached 772,104 metric tons—consisting of 481,925 metric tons of clinker worth Rs 649.2 million, and cement worth Rs 1.76 billion.
Experts divided on separating bankers and entrepreneurs in BAFIA amendment
A proposed change to the Bank and Financial Institutions Act (BAFIA) has triggered differing opinions over whether individuals can simultaneously be bankers and entrepreneurs.
The House Finance Committee began discussions on the matter with input from stakeholders. The debate centers around the definition of “significant ownership.” Former NRB Governor Dr. Chiranjibi Nepal objected to the separation, while former Finance Secretary Rameshwor Khanal supported it.
Surkhet Airport closed until Saturday due to runway damage
Surkhet Airport will remain closed until Saturday after additional water seepage was discovered beneath the runway. Originally shut for two days for repairs after a crater appeared on the northern side, the airport had to extend closure due to fresh seepage nearby, according to airport chief Hirajan Kafle.
Buddha Air completes test flight with 72-seater aircraft in Bharatpur
Buddha Air successfully carried out a test flight with its 72-seater aircraft between Kathmandu and Bharatpur on Thursday morning. The plane landed at Bharatpur Airport at 9:30 AM and completed takeoffs and landings on both Runway 15 and Runway 33. Captains Pramod Thapa and Ravi Shrestha piloted the flight, which encountered no major issues.
Nepal Infrastructure Bank to issue bonds starting May 31
Nepal Infrastructure Bank will launch its “NIFRA Green Energy Bonds 6% 2088/89” on Jestha 18 (May 31). The 7-year bonds will offer a 6% annual interest rate. A total of 5 million bonds worth NPR 5 billion will be issued—60% to individual investors and 40% to the general public.
Mechi customs collects Rs 12.94 billion revenue in 10 months
The Mechi Customs Office has collected Rs 12.94 billion in the first ten months of fiscal year 2081/82, meeting 91.51% of its revenue target. Major contributions came from petroleum products (Rs 7.83 billion), vegetables, vehicles, minerals, coffee, and lentils.
Nepal Lube Oil sees barely any trading in 15 years
Since its entry into Nepal’s secondary market in 2067, shares of Nepal Lube Oil Ltd. have been traded on only 62 days. Most investors have held onto their shares, resulting in minimal price movement—just an Rs 87 increase over 15 years.
Work to narrow Narayani River halted after public opposition in Narayanghat
Plans by the Nepal Water Transport Office to build a spur along the Narayani River have been suspended after resistance from locals. The project aimed to aid boat navigation and manage water flow near the Narayani Lift Irrigation system but faced criticism for environmental and livelihood impacts.
Charikot road office cancels contracts of 10 delinquent construction firms
The Charikot Road Division Office has terminated contracts with ten contractors for failing to complete projects. Among the companies are Kishor & Navin Construction, Sagar & Shishir Construction, Kamakhya Construction, and others from Dolakha, Sindhupalchok, Kathmandu, and Lalitpur.
Senior Vice President of FNCCI calls for ending policy instability
Anjan Shrestha, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry, has called for greater policy stability to help business and industry thrive. Speaking during pre-budget discussions, he urged lawmakers to prioritize a business-friendly environment.
Partial blacktopping begins at under-construction Majhgaun airport amid land issues
Authorities have started blacktopping a 1,300-meter section of the Majhgaun Airport runway, although the full 1,525 meters can’t be completed yet. A 225-meter stretch remains under Nepal Army control. Project chief Minraj Ojha expressed hope that the land will be handed over soon.
Hailstorm damages 1,000 ropani of vegetables in Salyan
A hailstorm on Wednesday destroyed vegetable crops spread across 1,000 ropani in Kapurkot Rural Municipality, Salyan. About 250 farmers were affected. Pradeep Basnet of Kapurkot-5 said his entire cauliflower crop—previously worth up to Rs 1 million annually—was wiped out.
Alternative road construction begins in Jaljala, Parbat after road project stalled for 7 years
Locals in Jaljala Rural Municipality, Parbat, have started building an alternative road after a government project stalled for seven years. The original route, under Gandaki Province’s “One Constituency, One Pride” plan, saw only 3.5 kilometers blacktopped, with 7.5 kilometers left incomplete.
Farmers in Baglung excited by first commercial tea yield
Farmers in Resh, Kathekhola Rural Municipality-7 of Baglung, have begun harvesting tea commercially after planting bushes in 2076. With support from local cooperatives and schools, tea is now grown on 162 ropani. New processing equipment has also been introduced this year.
Auditor general’s report shows decrease in outstanding payments in Pyuthan district
The 62nd annual report from the Office of the Auditor General shows that Pyuthan district has reduced outstanding government payments by NPR 52.1 million. Nine local bodies still owe NPR 319.3 million, with Swargadwari Municipality holding the highest dues and Mallarani the least.
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