KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mix of progress and persistent structural challenges. Capital markets are rebounding, with the NEPSE index approaching the 3,000 mark amid strong trading activity, while gold and silver prices signal global market volatility.
Despite rising banking liquidity, sluggish credit demand prompted NRB to absorb excess funds, reflecting imbalances in financial intermediation. Major infrastructure projects like the East-West Railway and Jagdulla Hydropower face delays due to budget constraints and governance hurdles, even as new energy projects like Lower Solu Hydropower come online.
On the policy front, SEBON and ADB introduced reform agendas focused on institutional strengthening and private-sector-driven growth. However, rising imports—ranging from petroleum to mangoes and mobile phones—underscore Nepal’s continued reliance on external goods, posing risks to trade balance and domestic production, which Prime Minister Oli has urged the private sector to prioritize.
NEPSE index nears 3,000 amid market rebound
The NEPSE index continued its upward trend on Wednesday, the fourth trading day of the week, gaining 9.61 points to close at 2,983.31—just shy of the 3,000 milestone. This follows Tuesday’s nearly 80-point surge. While the index rose modestly, trading remained strong with 44.8 million shares from 319 companies changing hands.
Gold nears record price; silver reaches all-time high
Gold prices are nearing their historic peak, rising by Rs 2,100 per tola on Wednesday to reach Rs 197,600. The record high of Rs 197,900 was set on April 22. Meanwhile, silver hit a new record, increasing by Rs 30 to reach Rs 2,350 per tola.
Nepal imports over Rs 700 million in mangoes and guavas
In fiscal year 2024/25, Nepal imported mangoes and guavas worth Rs 707.35 million, according to the Department of Customs. The bulk of this—9.65 million kilograms of mangoes worth Rs 642.75 million—was a major contributor. Customs revenue from these imports totaled Rs 155.99 million.
ADB outlines five-year partnership strategy for Nepal
The Asian Development Bank (ADB) has launched its Country Partnership Strategy for Nepal covering 2025 to 2029. Approved by ADB’s board on June 17, the strategy focuses on promoting private sector-led growth, boosting youth employment, and improving environmental sustainability, climate resilience, and disaster preparedness.
Sebon announces 88 programs for fiscal year 2025/26
The Securities Board of Nepal (SEBON) has revealed seven new policies and 88 initiatives for the 2025/26 fiscal year. Key measures include the restructuring of the Nepal Stock Exchange and CDS & Clearing Ltd., the development of a four-year institutional strengthening strategy, construction of its own office, adoption of an ERP system, and a feasibility study for opening provincial offices.
Banking sector liquidity climbs to Rs 10.5 trillion
Banking sector liquidity has surged at the beginning of the new fiscal year. According to Nepal Rastra Bank (NRB), loanable funds averaged Rs 600 billion over the past 11 months but reached Rs 1.05 trillion by mid-July. As of the same date, total deposits stood at Rs 7.292 trillion, with a credit-deposit (CD) ratio of 75.78%.
Public Accounts Committee orders continuation of Jagdulla hydropower project
The Public Accounts Committee has instructed officials to move forward with the contract for the Jagdulla Hydropower Project, despite ongoing delays and a case at the Supreme Court. Chair Rishikesh Pokharel emphasized that legal compliance and accountability must be ensured.
Government plans to raise Rs 362 billion in domestic debt
The government aims to borrow Rs 362 billion from the domestic market in FY 2025/26. The Public Debt Management Office reported that Rs 113 billion will be raised in Q1, Rs 85 billion in Q2, Rs 109 billion in Q3, and Rs 55 billion in Q4—making the first and third quarters the most significant.
Government issues Rs 10 billion in development bonds
The Public Debt Management Office is auctioning three-year development bonds worth Rs 10 billion. These bonds will be tradable on NEPSE and can be used as loan collateral.
National ID required to open new Demat accounts
Opening a new Demat account now requires a National Identity Card or its number. SEBON will instruct NEPSE and CDS & Clearing to implement this requirement as part of its efforts to strengthen customer identification.
NRB mops up Rs 80 billion in liquidity
Nepal Rastra Bank is withdrawing Rs 80 billion from the banking system for a 56-day term using its deposit collection tool. Banks earn 2.75% interest on these deposits. The move comes amid excess liquidity and sluggish credit demand.
PM Oli calls for boost in domestic production
Prime Minister KP Sharma Oli has urged the private sector to prioritize domestic manufacturing and exports over import-based profits. Speaking with newly elected Confederation of Nepalese Industries (CNI) officials, he said the government is pursuing legal and policy reforms to facilitate private sector development.
Inactive Demat accounts to be closed without renewal fees
SEBON’s new policy states that Demat accounts inactive for over five years and holding no securities will be closed, even if renewal fees remain unpaid. If recovery isn’t feasible, the fee will be waived.
UTL loses information highway contract for second time
A new contractor has been selected for the second phase of the Information Highway project in Gandaki and Lumbini provinces. The project involves laying optical fiber along the Mid-Hill Highway. United Telecom Limited (UTL), which held the previous contract, failed to start work, causing significant delays.
Investigation begins into Insurance Board chair
A committee investigating Insurance Board Chair Sharad Ojha has begun its work. Formed by the Cabinet on July 14 and led by former High Court Justice Krishna Giri, the panel includes Jiban Prakash Sitaula and Kapil Dev Oli. They have started reviewing documents and the appointment recommendation process after a directive from the Ministry of Finance.
East-west railway stalled due to budget shortfall, says minister Dahal
Minister for Physical Infrastructure and Transport Devendra Dahal stated that the East-West electric railway project—classified as a national pride initiative—is currently on hold due to insufficient funding. Addressing the Federalism Strengthening Committee in the National Assembly, he emphasized the railway’s importance for both internal connectivity and broader regional links with Southeast Asia.
Petroleum imports worth Rs 191 billion pass through Birgunj customs
In fiscal year 2024/25, petroleum products worth Rs 191.88 billion entered Nepal via the Birgunj customs point. The imports included diesel, petrol, LPG, aviation turbine fuel, and kerosene. This marked a decrease of Rs 1.94 billion compared to the previous fiscal year (2080/81).
Over Rs 225 billion spent on mobile phones in five years
Nepal imported 18.21 million mobile phones in the last five years, with a total customs value of Rs 163.58 billion. These devices had an estimated market value of over Rs 229 billion. In fiscal year 2024/25 alone, 2.184 million phones were imported.
82 MW from Lower Solu hydropower project added to national grid
The 82-megawatt Lower Solu Hydropower Project in Solukhumbu has been successfully connected to the national grid. Power is transmitted through the 132 kV Solu Corridor line starting from Lammane. Test transmission began last Sunday. The project, which began in 2017, spans between Tingla (Ward 11) and Garma (Ward 7) in Solududhkunda Municipality.
Plywood exports fall by 4.26% in fiscal year 2024/25
Nepal’s plywood exports to India fell by 4.26% in FY 2024/25. The country exported plywood—produced by bonding thin sheets of wood—worth Rs 7.41 billion, marking a year-on-year decline in the sector.
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