KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Despite dynamic activity across Nepal’s economic sectors, structural inefficiencies and policy execution delays continue to hinder meaningful progress. While share loan issuance surged by nearly 38%, the stock market remained stagnant—highlighting weak investor confidence and market inertia.
Simultaneously, budget planning, IMF review, and economic reform roadmaps point to intensified fiscal and policy efforts, yet major infrastructure initiatives like Nijgadh Airport remain stalled despite heavy spending.
Modest growth in agricultural lending and new IPO approvals show sectoral momentum, but lapses in labor diplomacy, digital payment reliability, and food safety raise concerns.
Calls for better tourism infrastructure, investment facilitation, and plastic recycling innovations offer promise, but persistent gaps in highway maintenance and governance undermine broader development goals.
Share loan jumps over 37% but stock market remains flat
In the first nine months of the current fiscal year, banks and financial institutions in Nepal issued an additional Rs 34.02 billion in share loans—marking a 37.8% increase compared to the same period last year. However, this growth in lending has not translated into gains for the stock market.
Data from Nepal Rastra Bank show that share lending has been steadily increasing since the fiscal year began. Between mid-July and mid-April, loans ranging from Rs 2.5 million to Rs 5 million grew by 15.14%, while loans under Rs 2.5 million rose by 8.6%.
Gold price drops by Rs 1,100 per tola, silver also down
Gold prices dropped by Rs 1,100 per tola on Friday, with the rate now fixed at Rs 190,400 per tola, down from Rs 191,500 the day before, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of silver also declined by Rs 20 per tola, now standing at Rs 2,005.
Finance Ministry starts preparing budget for fiscal year 2082/83
The Ministry of Finance has started drafting the budget for fiscal year 2082/83 following consultations with various stakeholders and the receipt of policy recommendations. Officials confirmed that the revenue advisory committee has already submitted its report to the finance minister. These suggestions on tax and revenue policy are now being incorporated into the budget framework under development.
IMF mission to review Nepal’s progress on extended credit facility
An International Monetary Fund team will visit Nepal starting Jestha 11 (May 25) to conduct the sixth review under the extended credit facility. The IMF previously released the fifth installment on Chaitra 2 (March 15). During the two-week visit, the team is expected to meet with key officials, including the finance minister, Nepal Rastra Bank governor, and the head of the Department of Money Laundering Investigation.
Nepal Rastra Bank assigns duties to Deputy Governors
Governor Biswo Poudel has delegated responsibilities to deputy governors Nilam Dhungana and Bam Bahadur Mishra. Dhungana will oversee departments such as regulation of banks and financial institutions, non-banking supervision, microfinance, foreign exchange, currency management, planning and risk management, asset and IT services, and provincial offices. Mishra will manage bank supervision, financial institutions, economic research, monetary operations, payment systems, HR, and financial management.
Government outlines plan to implement Economic Reform Report
The government has drafted an action plan to carry out the recommendations of the high-level commission on economic reforms led by former secretary Rameshwor Khanal. The Office of the Prime Minister and Council of Ministers has prepared implementation timelines ranging from immediate to three years. A committee led by secretary Chudamani Paudel has released four roadmaps to guide the process.
Nijgadh Airport project stalls despite Rs 1 billion spent
Even after spending Rs 1 billion, the government has made no progress on finalizing the construction model for Nijgadh International Airport. Declared a national pride project two decades ago, the airport remains in limbo. While significant funds have been used, no decision has been made on whether to proceed with or cancel the project.
Foreign Minister Rana holds talks with JICA president in Tokyo
Foreign minister Dr. Arzu Rana Deuba met with JICA president Dr. Tanaka Akihiko in Tokyo. The meeting, held at JICA headquarters, focused on strengthening Nepal-Japan relations. Minister Rana thanked Japan for its longstanding development support through JICA across various sectors of Nepal’s economy and society.
Labor Ministry fails to secure new international labor deals
Despite plans to sign new bilateral labor agreements with three countries this fiscal year, the ministry of labor has yet to finalize any deals. Point 136 of the current budget had pledged to establish such agreements, but as of mid-May, no progress has been made. Spokesperson Danduraj Ghimire acknowledged that no new agreements have been signed.
New private sector representatives to join Investment Board of Nepal
New members from the private sector will soon be appointed to the investment board following the departure of Bhawani Rana, Haribhakta Sharma, and Rajeshkaji Shrestha. The board confirmed that their term has ended and replacements will be selected by the chairperson. “Their tenure has expired,” said Yuvraj Khatiwada, joint spokesperson of the board. “Now, the chairperson will appoint new members.”
New health directive may boost illegal tobacco trade
A recent directive from the ministry of health and population, aimed at regulating labeling and health warnings on tobacco packaging, could unintentionally encourage illegal tobacco trade in Nepal. Despite widespread sales of counterfeit cigarette brands in border areas, business stakeholders warn that the new rules might make it easier for fake products to spread across the market.
Agriculture lending sees slight growth of 1.6% in nine months
Lending to the agriculture sector rose by 1.6% during the first nine months of the current fiscal year—a slight improvement compared to a 0.7% increase during the same period last year. In contrast, lending had declined by 2.3% in FY 2079/80. As of mid-April, agriculture loans totaled Rs 425.23 billion, up from Rs 418.59 billion in mid-July, according to Nepal Rastra Bank.
Nepal Securities Board approves IPO of Himstar Energy
The Nepal Securities Board has authorized Himstar Energy Company to issue an initial public offering. The company is now allowed to publish a prospectus for issuing 1,199,000 shares. NIC Asia Capital will serve as the manager for the IPO process. Himstar Energy has already completed its 5-megawatt Buku-Kapati hydroelectric project.
NEA removes Bimal Gurung from Dudhkoshi Hydropower Project
The Nepal Electricity Authority has removed Bimal Gurung, CEO of the 670-megawatt Dudhkoshi reservoir project, from his role. Gurung, who was leading the project under an NEA subsidiary, was recalled to the central office on Wednesday. A formal letter instructed him to report to the engineering services directorate’s division of norms, specifications, and design.
FNCCI President urges stronger tourism infrastructure and access
Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry, has called for improving tourism-related infrastructure and connectivity. Speaking at the Third Buddhist International Travel Mart in Kathmandu—organized by the Nepal Tourism Board and NATTA with support from the ministry of culture, tourism, and civil aviation—he stressed the need to boost Nepal’s appeal to tourists.
Sanvi Energy opens IPO to general public
Sanvi Energy Limited has opened its IPO to the general public starting Friday. The company had earlier issued shares to locals of the affected area and Nepalis working abroad. Now, it has released 2,415,300 shares worth Rs 241.53 million at a face value of Rs 100 per share.
Sikta irrigation project starts branch canal construction
Construction of a branch canal has begun in the under-construction Sikta Irrigation Project in Banke. With water already flowing in parts of the eastern main canal, work is now underway to extend water supply to farmlands, said project director Raju Acharya. The branch, originating from Lataniya village, will be 4 kilometers long with three planned sub-branches totaling 1.4 kilometers.
Technical issue disrupts E-Sewa, sparks public concern
eSewa, a digital payment platform, experienced technical problems on Monday afternoon. Users reported being unable to access the mobile app or website, while others faced issues with transactions. The disruption triggered confusion and speculation on social media, with some users falling for rumors about a security breach, which the company later denied.
Dangerous sections of Karnali Highway remain in disrepair
Despite ongoing upgrades, hazardous parts of the Karnali Highway—vital for the region’s development—remain neglected. The Jumla-Kalikot stretch of the 232 km Jumla-Surkhet road includes risky segments like Timure, Bhainsigauda, Bhigim, and Takulla, where potholes disrupt travel. Conditions in the Paduka River area of Dailekh are also poor, with dust storms in winter and muddy roads in the monsoon.
Excessive pesticide residues found in Kanchanpur vegetables
Unsafe levels of pesticide residue have been detected in vegetables sold in Kanchanpur. Samples collected by the pesticide residue rapid analysis lab in Attariya revealed that some vegetables, including bitter gourd, contained chemical levels above safe limits. Out of ten samples tested from six shops at Jhulari Bazaar, one was deemed unfit for consumption, according to assistant technician Rajendra Prasad Bhatt.
Plastic waste being converted into bricks and tiles in Dang
A new initiative in Dang has begun transforming plastic waste into tiles and interlocking bricks. The project, a collaboration between Rapti Rural Municipality and Hetauda-based Eco Family Pvt. Ltd., uses plastic waste to produce construction materials for walkways and parking lots. The facility also manufactures water tanks, marking a first-of-its-kind initiative in Nepal.
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