KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is showing mixed signals of growth and vulnerability, as highlighted by a recent surge in the NEPSE index, which hit an 11-month high with widespread gains and increased market capitalization, while gold and silver prices also spiked, reflecting investor caution amid inflation concerns.
Trade data reveals strong import growth and a widening trade deficit, particularly with 127 countries, while tea exports surged by 32%, indicating positive momentum in niche sectors. Structural and climate-related challenges persist—Madhesh has been declared drought-affected, and banks continue to struggle with loan recovery, turning to collateral auctions.
Meanwhile, infrastructure progress is underway with new solar energy projects, hydropower developments, IPOs, and industrial expansion. However, setbacks like road delays and flood damage at Rasuwagadhi underscore the ongoing need for climate resilience and efficient project execution.
NEPSE index hits 11-month high with 81-point surge
Nepal’s stock market surged on Tuesday, as the NEPSE index rose by 80.97 points to 2,973.70—its highest level since last August. Turnover increased sharply to Rs 20.08 billion, up from Rs 16.32 billion the previous day. Of 250 companies, 236 saw gains, led by production, life insurance, and microfinance, each up over 4%. Trade Tower, Sanvi Energy, and Shivam Cement hit the daily 10% gain limit. Market capitalization reached Rs 4.962 trillion, with momentum expected to continue.
Gold price jumps by Rs 1,800 per tola; silver hits new high
Gold prices increased by Rs 1,800 per tola, reaching Rs 195,500 on Tuesday, according to the Federation of Nepal Gold and Silver Dealers Association. The all-time high remains Rs 197,900 (set in April). Meanwhile, silver set a new record, rising Rs 35 to Rs 2,320 per tola.
NEPSE index rose nearly 11 percent in six months
Over the past six months, the NEPSE index rose by 10.88%, from 2,608 points in January to 2,894 in July. Notably, four companies—Butwal Power, NRN Infrastructure, Radhi Hydropower, and Nepal Reinsurance—doubled in value during this period.
Nepal recorded trade deficit with 127 countries in FY 2024/25
Nepal incurred a trade deficit with 127 of the 164 countries it traded with in FY 2024/25. According to Customs Department data, imports totaled Rs 1.804 trillion, while only 37 countries had a trade surplus with Nepal.
Nepal’s foreign trade grew by over 19 percent last fiscal year
In FY 2024/25, Nepal’s total foreign trade rose by 19.24%, driven by a significant rise in imports. The country imported goods worth Rs 1.804 trillion, which is a 13.25% increase from the previous year’s Rs 1.592 trillion, according to the Customs Department.
Five firms sign deal for hydropower project in West Seti
Five companies signed an agreement on Monday to develop hydropower and build a 400 kV transmission line in the West Seti Corridor. The deal was signed at the Ministry of Energy and includes HIDCL, RPGCL, CSHCL, CSHC, and SEL.
CNI outlines roadmap for $100 billion economy
The Confederation of Nepalese Industries (CNI) has proposed a roadmap to grow Nepal’s economy to $100 billion within a decade and achieve double-digit growth. It urged Prime Minister KP Sharma Oli to prioritize reforms across eight key economic sectors.
Banks auctioning more collateral as loan recovery stalls
Banks in Nepal have increasingly started auctioning collateralized assets after failing to recover loans, especially those secured with real estate. With property sales stagnant, some banks are taking ownership of unsold assets, a trend linked to poor business performance post-COVID.
Tea exports rose by 32 percent to Rs 4.21 billion
Nepal exported 15.416 million kg of tea worth Rs 4.213 billion in FY 2024/25, a 32.2% increase over the previous fiscal year, according to Mechi Customs Office in Jhapa.
Nepal imports paddy worth Rs 20.35 billion from India
Nepal imported 531,144 tons of paddy worth Rs 20.35 billion from India in FY 2024/25. Customs revenue collected on the imports totaled Rs 1.527 billion. From China, only 10 kg of paddy worth Rs 2,000 was imported.
Egg prices hit record high as production drops
Egg prices in Nepal have reached an all-time high due to falling production. The Nepal Layer Poultry Association has set a new minimum farmer rate of Rs 525 per crate (30 eggs), helping farmers cover costs.
Narayanghat–Butwal road expansion deadline extended
The Narayanghat–Butwal section of the East-West Highway four-lane expansion project will get a one-year deadline extension, according to project director Chuda Raj Dhakal. The decision comes after the contractor requested more time to finish the remaining work.
Temporary bridge under construction at Rasuwagadhi border
After floods destroyed the Friendship Bridge linking Nepal and China at Rasuwagadhi, the Chinese Embassy confirmed that a temporary Bailey bridge is now under construction and expected to be operational before Dashain.
Madhesh declared drought-affected as monsoon remains inactive
With the monsoon largely inactive, Madhesh Province is facing severe water shortages and has been officially declared drought-affected. Even in this key rice-producing region, paddy planting has sharply declined. The federal Ministry of Agriculture and Livestock Development has pledged to reallocate budget for irrigation support to help farmers.
Bhotekoshi flood sweeps away 68 vehicles, including 42 EVs
Flooding in the Bhotekoshi River on July 8 washed away 68 vehicles, including 42 electric vehicles, per the Rasuwa Customs Office. Among them were five SinoTruck trucks and 18 goods vehicles parked at the Timure customs yard.
Nepal Insurance opens right share issue
Nepal Insurance has opened applications for its right share issue, offering 3.4783 shares for every 10 held. Shareholders registered by June 12 can apply until August 11. The goal is to raise the company’s paid-up capital to Rs 2.5 billion, as required by the Insurance Regulatory Authority.
Germany backs Nepal’s 9.4 MW solar energy project
Nepal will generate 9.4 megawatts of solar power with support from the German government. Three solar plants are under construction in Lamjung, Nawalparasi, and Surkhet. The Nepal Electricity Authority is also studying the possibility of a new solar plant in Markhu, Kulekhani.
Panchakanya Group launches Nepal’s largest uPVC factory
Panchakanya Group has officially launched its uPVC brand, Panchakanya Dimex, in Siyari, Rupandehi, establishing the largest uPVC industry in Nepal. Although production began a year ago, four product lines were formally introduced on Monday.
Nabil Bank opens investment in 8-year bond
Nabil Bank has invited investment in its new 8-year debenture, offering 7% annual interest—higher than its current 5.5% fixed deposit rate. Interest will be paid semi-annually, and the principal will be returned at maturity.
IPO opens for Bandipur Cable Car and Tourism Limited
Bandipur Cable Car and Tourism Limited has launched its IPO, initially targeting locals affected by the project and Nepalis working abroad. Managed by Nepal SBI Merchant Banking, the company plans to issue 20.7% of its Rs 2.83 billion capital, or 5.86 million shares, to the public.
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