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 market volatility, structural reform efforts, and institutional development amid growing fiscal pressures.
The Nepal Stock Exchange has seen four consecutive days of decline, echoing investor caution, while a sharp drop in gold prices signals instability in commodity markets influenced by both global and domestic factors.
The World Bank’s lowered growth forecast to 4.5% for FY 2024/25 underscores deeper vulnerabilities in Nepal’s financial and infrastructural resilience, exacerbated by climate-related disasters.
Meanwhile, the government is taking proactive steps, including launching a large-scale infrastructure fund, enforcing price transparency in retail sectors, and introducing budget planning reforms in provinces like Gandaki and Lumbini.
However, challenges remain, such as rising agricultural insurance subsidies straining public funds, Nepal’s staggering trade deficit with China (99.1%), and concerns over food safety due to pesticide residues in vegetables.
The fiscal and legislative calendar is intensifying, with Parliament preparing for key budget and policy discussions starting in early May, aiming to address governance gaps, stimulate investment, and restore public trust amid a complex socio-economic environment.
NEPSE drops, index slips to 2,655 points
The Nepal Stock Exchange (NEPSE) extended its losing streak for the fourth consecutive session on Wednesday, with the benchmark index declining by 32.38 points to settle at 2,655. Trading activity also slowed, with daily turnover falling to Rs 7.57 billion—down from Rs 8.32 billion the previous day.
Of the traded stocks, 217 companies saw their prices drop, 28 recorded gains, and one remained unchanged. Sector-wise, Development Banks led the decline with a 2.09% drop.
Gold prices crash by Rs 7,500 per tola in Nepali market
Gold prices in Nepal saw a sharp decline on Wednesday, dropping by Rs 7,500 per tola—just a day after surging by Rs 6,900. Hallmark gold is now priced at Rs 190,400 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Silver prices also dipped slightly, falling Rs 5 per tola to settle at Rs 1,965. The dramatic fluctuations have left traders on edge, with both domestic and global factors in play.
Parliament to present Fiscal Policy and Program on May 2
The draft calendar for presenting the government’s policy and program for the next fiscal year is set for May 2 in the House of Representatives. Speaker Devraj Ghimire finalized the schedule after consulting with party chief whips.
Pre-budget discussions are scheduled to begin on May 16. The draft calendar will be submitted during the Business Advisory Committee meeting on April 12.
Given the packed legislative agenda—including budget discussions, policy programs, and the school education bill—Speaker Ghimire proposed that Parliament hold sessions daily, excluding Saturdays and public holidays. This proposal has been approved.
World Bank lowers Nepal’s growth forecast to 4.5% for FY 2024/25
The World Bank has revised Nepal’s economic growth projection for fiscal year 2024/25 (2081/82 BS) to 4.5%, down from earlier estimates.
The latest South Asia Development Update 2025, titled Taxing Times, attributes the downgrade to structural financial fragilities and the impact of natural disasters like floods and landslides.
These disruptions have weakened productivity and infrastructure, particularly affecting agriculture and tourism. The report anticipates only a modest recovery in the following fiscal year, forecasting 5.2% growth for FY 2025/26 (2082/83 BS).
Nepal and India ink deal for cross-border power transmission project
Nepal and India have signed an agreement to establish a joint venture company for building two major cross-border electricity transmission lines.
The agreement was signed in the presence of Nepal’s Energy Minister Deepak Khadka and India’s Power and Urban Affairs Minister Manohar Lal Khattar.
This initiative aims to strengthen energy connectivity between the two countries and support regional power trade.
Bill introduced to establish Rs 100 billion Infrastructure Investment Fund
A bill has been tabled in Parliament to create an Alternative Development Finance Fund aimed at mobilizing large-scale investment in infrastructure. The proposed fund would have an authorized capital of Rs 100 billion and a paid-up capital of Rs 25 billion.
Registered by the Ministry of Finance, the bill seeks to support long-term economic growth by enabling investment in high-return projects.
It outlines mechanisms for identifying and prioritizing development initiatives, attracting both domestic and foreign capital, and ensuring accountability through institutional oversight, monitoring, and evaluation.
Nepal’s trade deficit with China hits 99.1% of bilateral trade
Nepal’s trade deficit with China has surged to 99.1% of total bilateral trade in the first nine months of the fiscal year.
Department of Customs data reveals that out of Rs 250 billion in trade, Nepal’s exports contributed only Rs 2.25 billion, with Chinese imports totaling Rs 247.75 billion.
Govt demands MRP labeling on footwear and medicines within a week
The government has mandated that all shoes, slippers, and medicinal products must clearly display Maximum Retail Prices (MRP) within seven days.
This directive, issued by the Department of Commerce, Supplies and Consumer Protection, was communicated to the Footwear Manufacturers Association and the Chemical and Medical Suppliers Association.
During a meeting chaired by Director General Kumar Prasad Dahal, both associations agreed to implement the labeling requirement within the given deadline.
Toxic pesticide residues found in Kalimati vegetable market
Excessive pesticide levels have been detected in vegetables sold at Kalimati, Nepal’s largest vegetable market. The Rapid Pesticide Residue Analysis Unit reported high contamination in several samples collected on Tuesday.
Among 15 samples tested, sponge gourd from Dhading showed 53.935% organophosphate residue.
These remaining vegetables were destroyed under police oversight. Similarly, mustard greens from the same district contained 39.69% residue.
Rising subsidies for agricultural insurance strain govt budget
The government’s policy of subsidizing 80% of premiums for agricultural and livestock insurance has begun to pose fiscal challenges. Delays in subsidy disbursement have caused insurers to temporarily halt issuing new policies.
In FY 2080/81, Rs 1.61 billion was allocated in subsidies to support 156,121 policies, covering assets valued at Rs 42.13 billion. This generated premiums worth Rs 2.02 billion.
Home Ministry complex in Singha Durbar nears final stage
A new Home Ministry building, modeled after the architectural style of the Rana era, is nearing completion within Singha Durbar.
This five-story facility (including a basement) will centralize major departments under one roof and is currently in its final phase of finishing.
The structure includes over 100 air-conditioned rooms, two elevators with a 15-person capacity, and separate stairways for visitors and emergency use. It is equipped with modern safety features such as fire suppression and smoke detection systems.
Govt to compensate for tunnel construction damage in Nagdhunga area
Despite the responsibility resting with the contractor, the government has decided to compensate families whose homes were damaged during the construction of the Nagdhunga–Sisnekhola tunnel. The contractor, Hazama Ando Corporation, had insured the project for Rs 100 million through Premier Insurance.
Blasting operations caused damage to 93 homes—18 of them fully and 75 partially—according to a local water committee representative.
Pension benefits to be revoked for convicted former civil servants
Under the new Federal Civil Service Bill, lawmakers have agreed on a clause that strips pension rights from retired civil servants convicted of serious crimes.
This includes offenses such as corruption, human trafficking, kidnapping, drug smuggling, money laundering, and state-level crimes.
Convicted individuals receiving pensions or family benefits will lose their entitlements following a court ruling.
Mt Everest season begins as 300 climbers from 45 nations arrive
Around 300 climbers representing 45 countries have begun their expeditions to Mount Everest as the spring climbing season kicks off. The Department of Tourism has granted permits to 37 teams, collecting Rs 550 million in royalties so far.
In total, 91 expeditions have been authorized for various peaks, with Everest alone accounting for the majority of the Rs 630 million in royalties collected to date.
Indian Power Minister Khattar visits Muktinath Temple
India’s Minister for Power and Urban Affairs, Manoharlal Khattar, visited Nepal’s revered Muktinath Temple on Wednesday, accompanied by Energy Minister Deepak Khadka and a 17-member delegation.
The visitors received traditional blessings from the temple priests, while local officials and security personnel provided a ceremonial welcome.
Gandaki Province introduces ‘Project Bank’ to improve budget planning
The Gandaki Province government has launched a centralized “Project Bank” aimed at streamlining project prioritization and budget allocation.
The system, inaugurated by Chief Minister Surendra Raj Pandey, will be managed by the Provincial Policy and Planning Commission.
All provincial ministries must now register new project proposals in the database for review and selection before implementation.
Illegal signal boosters confiscated in Birgunj to block Indian network use
Authorities in Birgunj have seized four illegal mobile signal boosters and amplifiers allegedly used to enhance access to Indian telecom services such as Airtel, Jio, and BSNL. The devices were discovered following a joint investigation by the District Police Office and Cyber Bureau.
SP Gautam Mishra confirmed that these boosters were being used to bypass local network limitations in favor of Indian providers.
Lumbini Province budget to focus on reforms and realism
Chet Narayan Acharya, Chief Minister of Lumbini Province, announced that the next fiscal year’s budget will prioritize reform and fiscal discipline. While this year’s budget stood at Rs 39 billion, the upcoming one will be trimmed to around Rs 32 billion.
Acharya emphasized the importance of resource efficiency and confirmed a ceiling would be imposed to avoid deficit budgeting.
Govinda Ghimire takes over as NMB Bank’s new CEO
Govinda Ghimire has officially assumed his role as Chief Executive Officer of NMB Bank. He previously served as Deputy CEO and was appointed by the board on Falgun 23. Ghimire took charge on Baisakh 10, succeeding Sunil KC.
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