KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and governance landscape is currently marked by tightening fiscal policies, market volatility, and administrative reform. The NEPSE index saw a notable decline amid internal unrest, while gold prices hit a record high, reflecting investor caution.
Nepal Rastra Bank’s liquidity absorption efforts indicate persistent excess funds in the banking system, even as exports surged dramatically by 88.57% and imports rose by over 16%, pointing to increased trade activity.
Meanwhile, the government is pursuing cost-cutting and accountability—halting new vehicle purchases, restricting consultancy outsourcing, and capping consumer committee project values—while also moving to terminate stalled national pride projects and prioritize investment in productive infrastructure.
Policy reforms such as mandating local furniture use, shifting customs to invoice-based valuation, and ensuring insurance for public assets underscore a broader strategy focused on self-reliance, transparency, and economic resilience in the wake of recent protests and shifting global labor dynamics.
NEPSE declines by 27.89 points as most shares fall
The Nepal Stock Exchange (NEPSE) dropped by 27.89 points on Wednesday, closing at 2,654.35. The day’s trading turnover stood at Rs 4.12 billion. Out of all the listed companies that traded, 193 recorded a drop in share prices, while 53 posted gains. Five companies saw no change in their stock value.
Gold prices hit record Rs 223,000 per tola in local market
Gold reached an all-time high of Rs 223,000 per tola in Nepal’s domestic market on Wednesday, up from Rs 221,700 the day before. The price of 10 grams of hallmark gold was listed at Rs 191,185. Silver also saw gains during the same trading session.
NRB withdraws Rs 40 billion to manage excess liquidity
Nepal Rastra Bank announced Wednesday that it has pulled Rs 40 billion from the financial system for a four-day period to control surplus liquidity. The central bank invited banks and financial institutions to submit online bids until 3 p.m. Despite such efforts, loanable funds within the banking sector continue to increase.
Finance Ministry sets up committee to rebuild Gen Z protest damage
The Ministry of Finance has established the Physical Infrastructure Reconstruction Committee 2025 to restore public buildings damaged during the Gen Z protests held on September 8 and 9. Headed by the finance minister, the committee includes the ministers of home and urban development, the chief secretary, and the urban development secretary, who will serve as the member-secretary. A special fund will also be created to finance the reconstruction.
Imports rise 16.23% in first two months of FY 2025/26
Nepal’s imports reached Rs 305.15 billion in the first two months of the current fiscal year (mid-July to mid-September), reflecting a 16.23% year-on-year increase from Rs 262.54 billion. Customs Department data released Tuesday shows that both essential goods and items that could be produced domestically saw a rise in imports, driven in part by increased demand for clothing and consumer products during the festive season.
Government to insure all public infrastructure assets
The government has decided to provide insurance coverage for all state-owned infrastructure. This measure, approved in the September 21 Cabinet meeting and detailed in a Finance Ministry circular issued on September 23, is part of a broader austerity plan. The move aims to protect assets while prioritizing spending on reconstruction, essential services, elections, and economic recovery.
Government halts outsourcing of routine policy-related consultancy
At a Cabinet meeting chaired by Interim Prime Minister Sushila Karki, the government decided to ban ministries and agencies from hiring external consultants—local or international—through intermediaries for tasks that can be handled in-house. The restriction applies to preparing laws, rules, directives, and similar documents. Exceptions for research-based consultancy will be granted only if internal staff lack the capacity and the project is certified by the concerned accounts officer.
NEPSE officials freed by police after office confinement by staff
Late Tuesday night, police rescued top executives of the Nepal Stock Exchange (NEPSE)—including its chairperson and CEO—after employees locked them inside the office in protest. Staff were angered by a board decision they claim violated a Labor Court ruling, which had instructed NEPSE to distribute bonuses from profits to employees. Executives were confined until after midnight and were escorted home by police around 1 a.m.
Exports grow by 88.57% in early months of FY 2025/26
Nepal’s exports surged to Rs 47.31 billion in the first two months of fiscal year 2025/26, marking an 88.57% increase compared to Rs 25.09 billion during the same period last year. The data was published by the Department of Customs on Tuesday.
Consumer committees barred from projects over Rs 1 million
As part of its fiscal discipline efforts, the Finance Ministry has restricted consumer committees to handling projects valued below Rs 1 million. The directive, aimed at preventing misuse of funds, notes that larger projects have often been split into smaller segments to bypass procurement rules. The new rule applies to federally funded projects and those supported by fiscal transfers to provincial and local governments.
Finance Ministry issues directive to limit government spending
The Finance Ministry has instructed all government agencies to cut down on non-essential expenditures and focus only on critical and urgent activities for the current fiscal year. A circular issued Tuesday emphasized the need for responsible use of limited public funds and outlined steps to strengthen financial discipline across all sectors.
Government to cancel contracts for stalled national pride projects
The government is preparing to terminate agreements with contractors delaying two key national pride initiatives—the Sunkoshi–Marin and Bheri–Babai multipurpose projects. Energy Minister Kulman Ghising stated on Tuesday that the current contracts cannot continue, citing lack of progress that has significantly hindered both schemes.
Use of locally made furniture made mandatory in government offices
All government offices must now use Nepali-made wooden furniture, according to a new directive from Industry, Commerce, and Supplies Minister Anil Kumar Sinha. Announced Monday, the policy has been welcomed by the Nepal Furniture and Furnishing Business Federation, which said it will help support domestic manufacturers and reduce reliance on imports.
Public investment to prioritize profitable and high-impact projects
The government has overhauled its public investment strategy to fund only projects that generate revenue, receive aid, or fulfill critical obligations to citizens. Approved by the Cabinet on September 21, the new policy bars investment in financially struggling state-owned enterprises that fail to provide returns through dividends or interest.
Nepal begins talks with Gulf nations over stricter visa rules
Amid growing visa restrictions in the Gulf, Nepal has launched diplomatic efforts to address the tightening of labor entry requirements. The Foreign Ministry said it is working with embassies in the UAE, Qatar, Saudi Arabia, and Malaysia after the UAE suspended visit visas and made it harder for workers to obtain permits.
Government suspends new vehicle purchases and reallocates existing fleet
In response to vehicle losses during the recent Gen Z protests, the government has frozen all new vehicle procurements. Ministries have been instructed to utilize existing vehicles from subordinate agencies. The Finance Ministry has also restricted vehicle use by officials, allowing only one per person unless legally required otherwise.
Customs to introduce invoice-based valuation system
The government is set to replace the existing reference value method with an invoice-based system for customs duties. The new “Online Valuation Database” will launch as a pilot in Biratnagar on Wednesday, with Finance Minister Rameshwor Khanal scheduled to inaugurate the platform. A nationwide rollout will follow after evaluation.
Ilam tea growers adopt machines amid labor shortage
Tea farmers in Ilam are increasingly switching to mechanical harvesters due to a shortage of workers and rising labor costs. A single machine can reportedly replace the work of 11 laborers per day. “It takes just two people to operate and boosts productivity,” said a farmer from Suryadaya Municipality.
Jhapa Energy completes IPO allotment
Jhapa Energy has finalized the distribution of shares from its Initial Public Offering (IPO). Out of 1,833,738 applicants, 47,333 investors received 10 shares each, while six individuals were allotted 11 shares. Demand far exceeded supply, with applications submitted for nearly 20 million shares.
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