KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent economic and infrastructural developments in Nepal reflect a mixed landscape of challenges and progress. The NEPSE stock index closed the week down 1.09%, signaling cautious market sentiment amid moderate volatility, while the Mechi Customs Office reported a paradoxical rise in revenue despite declines in trade volume, driven by increased import and export collections.
Efforts to bolster compliance and awareness are underway, as the Inland Revenue Office launched educational programs for new businesses, aiming to improve tax adherence amid growing registrations. Commodity markets showed volatility, with gold prices rising steadily, while cardamom exports through Mechi Customs nearly doubled, contrasting with a notable decline in tea exports.
Meanwhile, socio-economic issues persist, illustrated by ongoing rural depopulation in Myagdi due to migration for better opportunities, impacting local development and education.
Infrastructure recovery efforts continue with the Road Department’s push to restore the flood-damaged Galchhi–Rasuwagadhi road, highlighting ongoing challenges in maintaining connectivity amid natural disasters.
Collectively, these trends underscore Nepal’s complex interplay of economic growth, market fluctuations, and social dynamics in a transitional phase.
NEPSE ends week down 1.09% with Rs 29.77 billion in turnover
The NEPSE Index wrapped up the week at 2,757.97, recording a decline of 30.39 points (1.09%) compared to last week’s closing of 2,788.36, which itself was 2.18% lower than the week before. During the trading week, the index fluctuated between a high of 2,803.25 and a low of 2,755.88, marking a weekly volatility of 47.37 points—a decrease from the 91.30-point volatility observed in the previous week. The steepest single-day drop occurred on Sunday, with the index falling by 27.14 points and a daily turnover of Rs 7.73 billion. By the end of the week, the total market turnover had reached Rs 29.77 billion.
Mechi Customs revenue rises despite decline in trade volume
The Mechi Customs Office has reported revenue collection of Rs 1.265 billion and 79 thousand in the first month of the current fiscal year—an increase of 7.74 percent compared to the same period last year. According to Ishwor Kumar Humagai, Information Officer at the Mechi Customs Office, revenue collection during Shrawan of the previous fiscal year stood at Rs 1.174 billion and 91 thousand. “Although both imports and exports through Mechi Customs declined by 4.90 percent and 14.68 percent respectively, revenue from imports rose by 6.87 percent and from exports by a significant 80.14 percent,” he said.
Tax office educating new businesses on tax laws
The Inland Revenue Office has launched an awareness program to educate newly registered taxpayers about income tax, excise duty, and value-added tax (VAT). The initiative targets businesses registered since the beginning of the current fiscal year. According to Punya Bikram Khadka, Chief of the Inland Revenue Office, the training includes key provisions introduced in the Economic Act, 2082. “We are informing new entrepreneurs about income tax, excise, VAT, and how to issue bills properly, as well as how to use the tax-related online portal,” he said. Last fiscal year, 2,325 businesses were registered with the office. In the first month of the current fiscal year alone, 357 new businesses have been added. The office collected Rs. 153.3 million in revenue during the first month, while the total revenue collection for the last fiscal year was Rs. 25.9732 billion.
Gold price rises by Rs 400 per tola in Nepal
The price of gold in Nepal increased by Rs 400 per tola on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. With the rise, fine gold was traded at Rs 195,200 per tola, up from Rs 194,800 on Thursday. Earlier, on August 8, gold had reached an all-time high of Rs 199,400 per tola. Silver prices also climbed, rising by Rs 20 per tola. Silver was priced at Rs 2,310 per tola, compared to Rs 2,290 the previous day.
Cardamom exports nearly double via Mechi Customs
Cardamom exports through the Mechi Customs Office have surged by 99.50 percent in the first month of the current fiscal year 2025/26 (August). According to data from the customs office, cardamom worth Rs 321.76 million was exported in Shrawan alone, compared to Rs 161.15 million during the same period last fiscal year. In total, 216.15 metric tons of cardamom were exported in the past month. However, tea exports saw a decline. Exports dropped by 26.80 percent, totaling Rs 374.82 million in August of the current fiscal year, down from Rs 512.28 million during the same period last year, according to Information Officer Ishwar Kumar Humagain.
Villages in Myagdi face depopulation as families migrate in search of opportunities
Every year, around 250 families migrate from Myagdi district to other places. According to records from the local registration office, about 100 families move to municipalities within the district annually. This increasing migration is affecting social, cultural, and development activities in rural areas, leading to a shortage of students in schools. In the fiscal year 2024/25, as many as 89 families relocated within Myagdi, while 247 families migrated outside the district. In the previous fiscal year, 2023/24, around 100 families migrated, according to local registration data. Last year, the number of migrating families within the district was 45 in Beni Municipality, three in Dhawalagiri, eight in Malika, 19 in Mangala, four in Raghuganga, and 10 in Annapurna. Meanwhile, 65 families from Beni, 23 from Dhawalagiri, 39 from Malika, 55 from Mangala, 21 from Raghuganga, and 44 from Annapurna moved to other districts or regions.
Preparations underway to reopen Galchhi–Rasuwagadhi road within a week
The Road Department has initiated efforts to reopen the Galchhi–Trishuli–Syafrubesi–Rasuwagadhi road within a week, following repeated damage caused by floods. According to the Department, reconstruction work is currently ongoing, with the goal of restoring full access within the next few days. The road section sustained significant damage in the flood of July 8, which washed away 1,300 meters of the road. Although it was temporarily reopened on July 20, another flood on July 30 caused extensive damage to five additional locations, completely washing away 600 meters of the road at Medamudung, Kulung, Tatopani, Timure, and Checkpost.
Preparations underway to bring all Nepalis under SSF coverage: Minister Bhandari
Minister for Labour, Employment and Social Security Sharat Singh Bhandari has said that preparations are underway to bring all Nepalis under the Social Security Fund (SSF). Responding to queries during Wednesday’s meeting of the House of Representatives, Minister Bhandari said that necessary measures are being taken to ensure the inclusion of all citizens, including those in the informal sector, under the SSF. He informed the House that 1.835 million Nepali migrant workers have already enrolled in the fund. “Support from all sectors is crucial to ensure full coverage,” he added.
Comment