KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent developments reflect a dynamic economic, policy, and social landscape marked by cautious optimism and persistent structural challenges.
A modest rebound in the share market and a rise in gold and silver prices suggest renewed investor sentiment, while corporate actions like NECO Insurance’s dividend declaration and Himalayan Bank’s premium FPO indicate confidence in financial stability.
At the policy level, the government is pushing forward with initiatives like free healthcare for returnee migrant workers and the controversial Alternative Development Finance Bill, raising both hope and concern.
Simultaneously, issues such as power shortages, non-compliant VAT registrants, and calls to reinstate the scrapped development fund highlight persistent governance and infrastructure gaps.
Amid these, local success stories—such as early bridge completions, growing tourism in Api Himal, and women’s empowerment projects in Baitadi—offer promising signs of grassroots progress and resilience.
Share market bounces back after four-day slump
After four consecutive days of decline, Nepal’s stock market showed signs of recovery on Thursday. The NEPSE index rose by 2.07 points, closing at 2,658. Total trading volume increased from Rs 7.57 billion the previous day to Rs 7.87 billion.
Shares of 83 companies gained, while 161 declined and one remained unchanged. The “Investment” subgroup led the recovery with a 2.4% gain. Other sectors also edged up, including Hydropower (0.22%), Trade (0.39%), and Banking (0.03%).
Gold and silver prices rebound after major drop
Gold prices rose by NPR 200 per tola on Thursday, reaching NPR 190,600, after falling NPR 7,500 the day before. Silver also climbed by NPR 45, and was traded at NPR 2,010 per tola.
Govt proceeds with controversial Development Finance Bill
The government is advancing a new bill titled “Alternative Development Finance Operations,” which has raised concerns among experts over its potential financial strain on the state.
The bill, now registered in Parliament, proposes creating a fully government-owned autonomous body with NPR 100 billion in authorized capital and NPR 25 billion in paid-up capital.
Critics warn that the institution, with less capital than commercial banks, might become a fiscal burden.
Finance Minister: Capital spending is ministries’ duty
Finance Minister and Deputy Prime Minister Bishnu Prasad Paudel clarified that capital expenditure responsibilities rest with individual ministries—not the Ministry of Finance.
Speaking during a meeting of the Ministerial-Level Development Problem Resolution Committee, he emphasized that while the Finance Ministry handles funding and coordination, the execution lies with the respective ministries.
Paudel also urged government staff to address audit issues, enhance foreign investment, adopt modern technology, and improve public services.
Trump-era cuts threaten Nepal’s MCC Project
The U.S. Millennium Challenge Corporation (MCC) is being dismantled by the former Trump administration, jeopardizing its development aid to countries like Nepal.
According to The New York Times, MCC staff were offered early retirement or delayed resignation following a cost-cutting review. The shutdown could directly impact infrastructure initiatives in Nepal backed by MCC.
Over 48,000 VAT-registered firms listed for not filing returns
The Inland Revenue Department has released a list of more than 48,000 businesses registered under VAT that haven’t submitted returns for six consecutive months.
These businesses are now urged to file their pending returns within 15 days. The list has been published on the department’s website for public reference.
FNCCI Head: Private sector vital for economic transformation
FNCCI President Chandra Prasad Dhakal stressed the importance of revitalizing the private sector to drive Nepal’s economic transformation.
At a workshop on wage policy supported by the ILO, Dhakal linked wage reform to national development goals and warned that poorly planned wage hikes, amidst low productivity and industrial downturns, could create unsustainable financial pressure.
Power outages resume in industrial areas amid declining Indian imports
Nepal has reintroduced scheduled power cuts in industrial zones due to reduced electricity imports from India and dry-season shortages. The NEA noted that daily generation stands at 1,175 MW, while peak demand has hit 2,077 MW.
Efforts are underway to manage the shortfall, but limited Indian supply has left industries facing power disruptions.
Lawmakers call to reinstate scrapped development fund
Members of Parliament are urging the government to revive the ‘Constituency Development Fund’, discontinued in 2078 BS due to misuse and poor accountability.
During a pre-budget meeting with Finance Minister Paudel and NPC officials, MPs argued for direct budget allocation per constituency or inclusion of at least one infrastructure project in each area in the next fiscal budget.
Nepal to offer free health services to returnee migrant workers
The government has announced free physical and mental health services for migrant workers returning to Nepal with health complications. Health Minister Pradeep Paudel shared this during his visit to the UAE.
A dedicated ward will be set up at the Shahid Dharmabhakta National Transplant Center in Bhaktapur, offering free outpatient care to any returnee who has worked abroad, as per the minister’s press release.
NECO Insurance announces bonus shares and cash dividend
NECO Insurance has declared a 7% bonus share and a 0.36% cash dividend for its shareholders.
The announcement awaits approval from both the Insurance Authority and the company’s AGM. NECO shares currently trade around NPR 744.
Himalayan Bank to launch premium-priced FPO
Himalayan Bank is preparing to issue a Further Public Offering (FPO) at a premium rate to maintain its 70:30 promoter-to-public share ratio.
The bank has submitted a proposal to SEBON following approvals from its AGM and the Nepal Rastra Bank. The offering will include 9.25 million shares.
Pure Energy IPO allotted to over 119,000 applicants
Pure Energy Limited has completed its IPO allotment, with 119,520 applicants receiving 10 shares each via lottery.
Out of 1.85 million applications, 1.84 million were deemed valid. The IPO offered 1,195,200 shares at NPR 100 each.
Bridge in Tanahun completed four months early
A motorable bridge over the Buldi River in Tanahun, linking Byas Municipality’s Wards 1 and 2, has been completed ahead of schedule.
Originally set for completion by Bhadra 2082, the bridge is now finished, though not yet open for vehicles. Motorcycles have started crossing.
Biratnagar sets fee limits for private schools
Biratnagar Metropolitan City has capped admission and tuition fees for institutional schools for the academic year 2082.
For grades up to 5, monthly fees are limited to NPR 2,000–2,500, with other fees like admission, activities, and exam charges also regulated.
Chyangra farm in Mustang focuses on breed and Pashmina development
A new Chyangra (mountain goat) farm in Charang, Mustang is advancing pashmina production and breed improvement.
Established with ADB funding and under the Himalayan Project, the farm houses 600 goats and is managed by a local consumer group.
Ralekhola Hydropower Project in Myagdi begins testing phase
The 6 MW Ralekhola Hydropower Project in Myagdi has entered its testing stage.
Spokesperson Homanath Pandey confirmed that water has been fed into the pipes, and technical inspections are in progress. The infrastructure includes dams, sediment ponds, and a 3.6 km pipeline.
Api Himal attracting more international tourists
Api Himal, the tallest peak in Sudurpaschim Province at 7,132 meters, is gaining global tourist attention.
Located in Darchula’s Api Nampa Conservation Area, 175 foreign visitors have been recorded over the last nine years. Permit issuance continues as interest grows.
75% of alternative road for cement trucks completed
A new 5-km road for transporting limestone to cement factories in Dang is 75% complete.
The road, begun in 2076 BS due to damage on existing routes, spans Jumlepani to Sukakhola, with 4 km already opened.
Birtamod and Dharan businesses partner to boost trade
In a bid to revive sluggish post-pandemic trade, businesses from Birtamod and Dharan have signed a collaboration deal. The agreement, led by women entrepreneurs, aims to enhance joint production and market reach.
Prime Commercial Bank joins Domestic Nepal Pay Card Scheme
Prime Commercial Bank has partnered with Nepal Clearing House Ltd. to issue domestic cards under the “Nepal Pay” scheme. This integration will enable customers to use local cards through the Nepal Payment Switch and National Card Switch systems.
Sudurpaschim Province begins budget planning for FY 2082/83
Chief Minister Kamal Bahadur Shah has launched consultations for the next fiscal year’s budget. Ministries have been tasked with proposing actionable long-term reforms within 15 days, focusing on innovative and impactful policies.
Baitadi women empowered through nettle textile training
A new training program in Baitadi is turning the once-neglected allo plant into a profitable venture for local women. The month-long course, backed by GIZ and local authorities, teaches processing and textile production using the giant nettle.
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