KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments together depict an economy showing selective momentum amid structural and administrative frictions. Financial markets remained largely stable, with a marginal rise in NEPSE and strong liquidity conditions prompting NRB to absorb excess funds, while record-high gold prices signaled heightened risk aversion and global price pressures.
Fiscal indicators were mixed: capital gains tax from land transactions rose on higher-value sales despite sluggish volumes, petroleum and apple imports reflected steady consumption, and cement exports to India surged sharply due to improved cross-border certification. At the same time, decentralization of tax services, major infrastructure tenders, progress reviews of stalled projects, and new private investments such as a five-star hotel in Sudurpashchim point to longer-term growth efforts.
However, persistent challenges, including unpaid farmer dues, delayed agricultural programs, malnutrition risks in Karnali, and contract cancellations, underscore governance and implementation gaps that continue to weigh on inclusive and timely economic recovery.
NEPSE edges up slightly as turnover hits Rs 3.22 billion
The Nepal Stock Exchange (NEPSE) inched up by 1.37 points on Wednesday, closing at 2,585.87 amid modest trading momentum. A total of 7.22 million shares from 334 listed companies were traded through 62,768 transactions, generating a turnover of Rs 3.224 billion. Infinity Laghubitta Bittiya Sanstha posted the highest gain, rising 5.32 percent, while Grameen Bikas Laghubitta Bittiya Sanstha recorded the steepest fall at 4.26 percent. SY Panel Nepal led turnover with transactions worth Rs 144.9 million, whereas Tehrathum Power Company topped the list in terms of share volume.
Gold hits Rs 268,100 per tola, setting new record
Gold prices have climbed to an all-time high of Rs 268,100 per tola (11.66 grams), while silver has reached Rs 4,420 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Just three days earlier, gold was priced at Rs 258,300 and silver at Rs 4,105, indicating a rapid upward trend. Market analysts attribute the surge largely to a stronger US dollar and rising global prices. Internationally, gold is trading at USD 4,525 per ounce and silver at USD 73 per ounce, contributing to the sharp rise in domestic prices.
Capital gains tax from land transactions rises by nearly 8 percent
Revenue from capital gains tax on real estate transactions reached Rs 6.298 billion during the first five months of the current fiscal year (November 17 to December 15), reflecting a 7.69 percent increase year-on-year. In the same period last year, collections stood at Rs 5.848 billion. Despite higher tax revenue, land registrations grew marginally by just 0.88 percent to 572,000 units. Overall land revenue totaled Rs 16.75 billion. Officials attribute the growth in capital gains tax mainly to the sale of higher-value properties, even as transaction volumes remain subdued.
NRB absorbs Rs 25 billion to manage surplus liquidity
Nepal Rastra Bank (NRB) is absorbing Rs 25 billion from the banking system today through a deposit collection instrument to control excess liquidity. The 16-day facility is open to Class A, B, and C financial institutions via an online bidding process. With total bank deposits surpassing Rs 7.5 trillion, the central bank has stepped in to regulate interest rates. The minimum bid has been fixed at Rs 100 million, and repayment of principal and interest is scheduled for January 9, 2026. The move follows open market operation guidelines applied during periods of prolonged liquidity surplus.
Tax services begin shifting to local governments
Taxpayer service responsibilities have officially started transferring to local governments, beginning with Kerabari Rural Municipality in Morang. Finance Minister Rameshore Khanal handed over the authority on Wednesday, describing the move as a milestone in strengthening federal governance. He said decentralization would enhance taxpayer convenience, reduce compliance costs, and improve efficiency. The initiative also seeks to curb irregularities and boost local revenue generation. During the handover event, the first business permanent account number (PAN) was issued to The Voice Cafe and Restro, while an individual PAN was granted to Chitrakumar Tamang.
Banks announce dividends exceeding Rs 330 million
Commercial banks have finalized dividend declarations for the fiscal year 2024/25. Of the 20 banks in operation, 13 announced dividends while six opted not to distribute any. Everest Bank topped the list with a 20 percent payout, followed by Standard Chartered Bank at 19 percent. Combined dividends amount to approximately Rs 336.6 million, including Rs 249.9 million in cash and Rs 86.5 million in bonus shares. Analysts note that banks favored cash dividends this year due to weak credit demand and comfortable capital adequacy levels. Total paid-up capital across banks now stands at Rs 517 billion.
Petroleum imports through Birgunj amount to Rs 72.28 billion
The Birgunj Customs Office recorded petroleum imports worth Rs 72.28 billion in the first five months of the current fiscal year (November 17 to December 15). These imports generated Rs 30.25 billion in revenue, marking a 6.42 percent increase compared to the same period last year. Diesel accounted for the largest share at Rs 35.31 billion, followed by liquefied petroleum gas (LP gas) at Rs 12.17 billion and aviation turbine fuel (ATF) at Rs 7.25 billion. Imports of petrol and kerosene were valued at Rs 173.6 million and Rs 190 million, respectively.
Kulman Ghising outlines 100 achievements in 100 days
Minister for Energy, Physical Infrastructure, and Urban Development Kulman Ghising has unveiled a list of 100 accomplishments from his first 100 days in office. Major highlights include initiating installment-based recovery of dedicated and trunk line arrears and exporting electricity worth Rs 19 billion to India and Bangladesh. On infrastructure development, he signed a JPY 34.49 billion loan agreement with Japan for improvements at the Koteshwor intersection. Ghising also terminated 40 non-performing contracts and finalized financial frameworks for the Budhigandaki and Upper Arun hydropower projects. He emphasized field-oriented management to accelerate stalled road and bridge works.
Apple imports cross Rs 4.24 billion
Nepal imported 38,293 tons of apples worth Rs 4.246 billion during the first five months of the current fiscal year. According to the Department of Customs, this represents a 13.78 percent increase compared to the Rs 3.732 billion spent in the same period last year. The imports generated government revenue of approximately Rs 418 million. The rising volume reflects growing domestic demand for apples, despite fluctuations in import trends in previous years.
Karnali province sets aside Rs 41 million for nutrition programs
The Karnali provincial government has allocated Rs 41 million this fiscal year to address rising malnutrition levels. Following the discontinuation of USAID-supported programs, which previously provided Rs 150 million, the province is now funding nutrition initiatives independently. According to the Directorate of Health Services, the focus is on supplying essential nutrients to children and pregnant women. Currently, 36 percent of children in Karnali are stunted and 48 percent suffer from anemia. Despite a poverty rate of 51 percent, the province aims to meet national nutrition targets through improved food security and awareness campaigns.
Cement exports to India jump by over 1,200 percent
Cement exports from Nepal through the Krishnanagar border surged dramatically to 274,000 tons in the first five months of the current fiscal year, up from just 20,360 tons during the same period last year. This marks a 1,245 percent increase, driven largely by India’s timely renewal of Bureau of Indian Standards (BSI) certificates and increased infrastructure activity across the border. While cement exports expanded rapidly, plywood exports declined sharply due to quality compliance issues. The Krishnanagar Customs Office collected Rs 2.8 billion in revenue, achieving 85.25 percent of its target. Coal remained the leading import item, contributing Rs 177.5 million in revenue.
Livestock income programs stalled despite Rs 15.6 million budget
Income-generating agricultural programs in Karnali Province have been delayed due to new administrative requirements. The Agriculture Development Office reported that a Rs 2 million allocation for apple and walnut orchards remains unused because updated operational guidelines have not been issued. Similarly, a Rs 15.6 million budget for yak and mountain goat breeding centers in Namkha and Simkot has not been utilized. Although 104 proposals were submitted, processing has stalled due to the new requirement for cabinet-level approval. Officials warned that these delays have disrupted seasonal farming activities and affected rural livelihoods.
Farmer projects earnings above Rs 2.5 million from strawberry farming
Farmer Birendra Khadka has expanded his commercial strawberry cultivation across Dang, Tulsipur, and Rolpa. Last year, the venture generated a turnover of Rs 2.5 million, with higher earnings expected this season as prices reach Rs 800 per kilogram. Although initial investment costs amounted to Rs 800,000 for drip irrigation and mulching, the short two- to three-month growing cycle yields strong returns. Produce is supplied to local markets and cities including Nepalgunj and Butwal, with most sales occurring directly at the farm.
Infrastructure office invites tenders worth Rs 660 million
The Infrastructure Development Office in Khotang has issued tenders for 112 projects valued at Rs 660 million. These form part of 164 projects approved by the Koshi Province government for fiscal year 2025/26, with a total budget exceeding Rs 1 billion. While most tenders are underway, some remain pending due to unresolved land ownership issues. The budget, allocated under Minister Bhupendra Rai, covers road paving, bridge construction, and school infrastructure. Local contractors welcomed the timely tender announcements, citing improved prospects for regional connectivity.
Sunkoshi-Marin project reviewed after contract cancellation
An evaluation of the Sunkoshi-Marin Diversion Multipurpose Project has been completed following the termination of its Rs 14.8 billion contract with Patel-Raman JV on November 24. The contract was scrapped due to slow progress, with only 10 percent physical completion achieved despite 61 percent of the time having elapsed. Minister Kulman Ghising inspected the site and instructed officials to expedite the preparation of new tender documents. The project office has seized the contractor’s equipment and facilities, and a fresh bidding process will begin soon to align dam and powerhouse construction with the completed tunnel.
Potato output in Bara projected at 118,296 metric tons
Bara district aims to produce 118,296 metric tons of potatoes from 7,440 hectares this fiscal year, slightly down from last year’s output of 121,062 metric tons. Average productivity is estimated at 15.9 metric tons per hectare. Major production areas include Simraungadh, Devtal, and Pheta, supplying markets in Kathmandu and Chitwan. While potatoes provide quick income for farmers, challenges such as poor-quality seeds, fertilizer shortages, and limited cold storage persist. Experts believe improved storage and modern farming practices could position Bara as a leading commercial potato hub.
First five-star hotel planned in Sudurpashchim with Rs 2.20 billion investment
Club Chaulani Limited has entered into a management agreement with IHG Hotels to develop and operate the first five-star hotel in Sudurpashchim Province. The Holiday Inn by IHG, to be built in Dhangadhi, will have 115 well-appointed rooms, including five luxury suites. The project carries an estimated cost of Rs 2.20 billion, funded through Rs 1.43 billion in bank financing and Rs 770 million in equity from promoters. Around 40 percent of construction work has already been completed. The international-brand hotel is expected to raise the region’s tourism facilities to international standards. The agreement was signed by Dr. Rajendra KC and Sudeep Jain, signaling a major boost for private investment in the province’s urban areas.
Bhedetar food festival eyes Rs 25 million turnover
The 13th Bhedetar Food Festival will be held from December 31 to January 2, 2026, organized by the Hotel Association of Bhedetar. The event will showcase traditional cuisines of the Rai, Limbu, Magar, and Newar communities. Association president Tuma Raj Limbu expects business turnover of Rs 25 million and attendance of around 60,000 visitors. Hotels in the area will offer a 10 percent discount to promote domestic tourism. The festival also highlights adventure activities like paragliding and nearby destinations such as Namje, previously listed by CNN as a top global travel spot.
Unpaid farmer dues and missing owners halt Indira Sugar operations
Indira Sugar and Agro Industries, located in Nawalparasi (Bardaghat Susta Paschim), has failed to pay farmers nearly Rs 70 million for sugarcane procured over the past three years. Despite the start of the new crushing season, the factory owners have remained unreachable and are reportedly staying in India. While sugar mills in Bagmati and Lumbini began operations on December 8 and December 21 respectively, Indira Sugar has shown no activity, including basic maintenance. The government has fixed the current support price at Rs 690 per quintal, which includes a Rs 70 subsidy. Farmers are also awaiting about Rs 80 million in unpaid government subsidies from the previous fiscal year.
Nepal Telecom introduces Wi-Fi 6 technology
Nepal Telecom has rolled out Wi-Fi 6 technology to strengthen its fiber-to-the-home (FTTH) internet services. The upgraded system features new-generation routers and access points, offering a minimum speed of 100 Mbps along with improved stability and multi-device support. The company is providing standard and premium packages with speeds of 100, 150, and 200 Mbps, bundled with mobile data and NTTV services. Customers can access detailed pricing through the Nepal Telecom app or by calling 198. The move is aimed at delivering faster, safer, and more reliable digital connectivity nationwide.
NRB urged to take lead in removing Nepal from FATF grey list
The Banking Sector Reform Advisory Task Force 2025 has recommended that Nepal Rastra Bank play a stronger leadership role in efforts to remove Nepal from the international “grey list.” According to the report, the central bank should implement corrective measures within the next two years. Although the Financial Information Unit has become an independent body under the fifth amendment to the AML Act, the task force stressed that the central bank remains vital in supervising payment systems. It also called for flexible policies, selective credit expansion, and careful merger approaches to stimulate economic recovery, warning that excessive tightening and poorly balanced mergers have weakened the link between banks and the real economy.
Consumer Department penalizes three hotels
The Department of Commerce, Supplies, and Consumer Protection has fined three hotels a combined total of Rs 45,000. Thakkhola Thakali Bhansa Ghar in Kathmandu was fined Rs 15,000, Pakakala Private Limited Rs 10,000, and Indreni Food World and Banquet Rs 20,000. The penalties were imposed under Sections 38 and 39 of the Consumer Protection Act, 2018. During inspections of 18 businesses, the department also issued corrective instructions to 15 other hotels and snack outlets. Officials stated that such monitoring is intended to maintain discipline and fairness in the market.
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