KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape is currently marked by dynamic developments across key sectors, reflecting both progress and persistent structural challenges. The capital market showed resilience as NEPSE saw robust turnover driven by the hydropower sector, while Bishal Bazar emerged as the largest listed company.
At the same time, monetary tightening by Nepal Rastra Bank failed to fully meet its deposit target, and gold prices saw a sharp drop, indicating shifting investor sentiment. Regulatory efforts intensified with the insurance authority expanding its oversight amid rising illegal practices and SEBON pushing controversial stock exchange reforms.
Infrastructure saw a boost with the approval of nearly 1,000 telecom towers, and governance reforms were rolled out, including unified local performance evaluations and stricter fiscal discipline in Karnali Province. Meanwhile, social sector issues such as youth outmigration, delayed farmer verification, gender inequality in digital finance, and unverified land classifications underscore systemic inefficiencies.
The upcoming IPO by Daramkhola Hydro and vintage exhibits at the NADA Auto Show signal continued public engagement, but ongoing gaps in leadership and policy implementation remain pressing concerns.
Hydropower leads as NEPSE closes with Rs 18.49 billion turnover
The Nepal Stock Exchange (NEPSE) index edged up by 3.76 points to finish at 2,982.64 on Thursday, the week’s final trading day. Turnover surged as shares worth Rs 18.49 billion were traded—38.96 million units in total. Among the 328 companies traded, 123 saw share price gains, while 127 experienced declines.
Gold price drops by Rs 2,400 per tola in a day
Gold prices saw a sharp decline of Rs 2,400 per tola on Thursday. Hallmark gold, which was priced at Rs 197,600 per tola the previous day, dropped to Rs 195,200. The price per 10 grams of hallmark gold was set at Rs 167,335. Silver was priced at Rs 2,335 per tola.
Insurance regulator to supervise life insurance amid rise in illegal ‘cashback’ practices
Following a rise in non-life insurers offering illegal “cashback” to policyholders, the Insurance Regulatory Authority has extended its supervisory scope to life insurance. The regulator has already carried out on-site inspections of non-life insurers.
NRB collects Rs 78 billion in deposits against Rs 80 billion target
Nepal Rastra Bank aimed to gather Rs 80 billion in deposits on Wednesday, but banks and financial institutions deposited only Rs 78 billion. This shortfall followed an interest rate hike on deposit instruments. The central bank capped interest on permanent deposits at 2.75%, as outlined in the fiscal year’s monetary policy.
Over 34,000 contributors book Rs 7.9 billion loans from Social Security Fund
A total of 34,097 contributors have taken out Rs 7.9 billion in loans from the Social Security Fund, according to a press conference on Wednesday. In the past three years, 34,020 contributors under standard and special schemes borrowed Rs 6.9 billion.
Nepal introduces unified and scientific local governance evaluation system
The government has implemented a new, standardized performance assessment for all 753 local governments. The Ministry of Federal Affairs and General Administration issued the “Local Governance Performance Evaluation (Management and Operation) Procedure, 2025” on June 16, scrapping three previous evaluation frameworks, effective FY 2025/26.
Bishal Bazar emerges as Nepal’s largest listed company
By Wednesday, Bishal Bazar’s market capitalization reached Rs 222 billion, making it the largest company on the NEPSE. Nepal Reinsurance is now second, overtaking Nepal Telecom, which held the top spot a year ago.
Inactive and shareless Demat accounts to be frozen
The Securities Board of Nepal has mandated freezing Demat accounts that hold no shares or remain inactive for five years. CDS and Clearing Ltd. has been instructed to enforce this rule as part of the FY 2025/26 policy framework.
Bangladeshi firm selected to audit ten major Nepali companies
Howladar Yunus & Company from Bangladesh was chosen in the second evaluation phase to audit ten major Nepalese companies. Compensation will include Rs 6.254 million and USD 271,000 (about Rs 37.1 million).
Controversial stock exchange licensing policy included despite objections
SEBON’s FY 2025/26 policy includes plans to license a new stock exchange under private ownership despite federal parliamentary opposition over alleged commission irregularities.
Government’s youth self-employment fund headless for nearly a year
Despite high daily youth migration (around 2,000 people), the Youth and Small Entrepreneur Self Employment Fund—designed to promote youth entrepreneurship—has operated without a head for almost a year.
Nepal Oil Corporation to relocate aviation fuel depot from TIA
Following a Cabinet decision made on January 30, 2018, Nepal Oil Corporation has started moving its aviation fuel depot from near Tribhuvan International Airport in Sinamangal to Guheshwari, an area containing an army golf course. The Civil Aviation Authority is constructing required taxiways as part of the airport expansion.
Farmer listing program delayed by slow verification process
While over half of Nepal’s farming households have joined the “Farmer Listing” initiative (2.37 million out of 4.13 million), verification remains sluggish, hampering the timely provision of state services.
Digital gender gap persists despite rise in online transactions
The World Bank’s “Global Findex 2025” report reveals a 22% gender gap in digital payments in Nepal: 58% of men use digital methods vs. only 36% of women, outpacing the South Asia average gender gap of 15%.
Nepali farmers exploited in Indian markets when buying fertilizer
Facing domestic shortages, Nepali farmers have traveled to Indian border markets for urea and DAP but report being overcharged by Indian traders.
Plot subdivision halted in 500 municipalities due to missing land classification
With land classification complete in only 253 of Nepal’s 753 municipalities, plot subdivision has been halted in the remaining 500 since the start of the fiscal year, as per the Department of Land Management and Archives.
Imports worth Rs 625 billion entered Nepal through Birgunj in FY 2024/25
In the fiscal year 2024/25, goods worth Rs 625.97 billion were imported via Birgunj customs—an increase of 15.14% (Rs 82.30 billion) compared to the previous fiscal year. Petroleum products topped the list of imported items through this key trade entry point.
NTA approves construction of 943 telecom towers for Ncell and Nepal Telecom
The Nepal Telecommunications Authority has authorized the construction of 943 new telecom towers across the country. Of these, Ncell has received approval to build 743 towers, while Nepal Telecom has been permitted to construct 200. The move, approved on July 14, is aimed at improving service reach and network capacity nationwide.
Karnali government enforces strict budget implementation guidelines
To ensure better financial management in the current fiscal year, the Karnali Province Ministry of Economic Affairs has issued a 71-point directive to its ministries, agencies, and commissions. The Ministry of Finance stated that the detailed guidelines were introduced to enhance fiscal discipline, promote transparency, and avoid past shortcomings.
Vintage cars to be showcased at upcoming NADA Auto Show
The NADA Automobiles Association of Nepal will feature vintage cars in its upcoming auto show scheduled for Bhadra. According to NADA executive member Anup Kumar Baral, the exhibit aims to promote awareness and appreciation of classic vehicles. The show will also include video presentations on the evolution of automobiles.
Daramkhola Hydro Energy to issue over 2.4 million public shares from July 31
Daramkhola Hydro Energy Company will open its Initial Public Offering (IPO) on July 31, offering 2,423,185 shares at a face value of Rs 100 each. Interested investors can apply for a minimum of 10 shares and a maximum of 50,000.
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