KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The compiled reports reflect a broad spectrum of Nepal’s economic and governance dynamics, highlighting issues of regulatory enforcement, infrastructure development, and investment patterns.
While NEPSE saw a minor rebound after days of decline, gold prices fell by NPR 1,000 per tola, and consumers continue to bear inflated petroleum costs despite a global price slump—benefiting Nepal Oil Corporation’s profit margins.
Regulatory tightening was evident with Nepal Rastra Bank penalizing financial institutions and the Insurance Authority revising foreign employment fund rules.
Simultaneously, Facebook faces a registration ultimatum, while Durga Prasai’s multi-billion-rupee loan default case underscores growing scrutiny of corporate misconduct.
On the legislative front, the government introduced a bill restricting Everest climbs without prior experience and restructured taxi service standards.
Meanwhile, infrastructure remains a mixed picture—rapid bridge construction in Saptari contrasts with chronic delays in Achham and Bajura.
In trade and investment, local goods from Humla found markets in China, and Koshi Province reached out to Indian investors.
Similarly, the NRNA Australia pledged investment interest, pending a friendlier climate. Despite having sufficient domestic production, the government controversially approved areca nut imports, raising questions about policy priorities.
Other highlights include Sun Nepal Life’s rights share issuance, a capped agriculture budget amid high provincial demands, and calls to upgrade critical road segments affecting tourism.
Despite global political shifts, MCC aid to Nepal remains intact, reinforcing continued strategic ties with the U.S.
Nepse sees minor uptick after consecutive losses
The Nepal Stock Exchange (NEPSE) index recorded a slight rise of 2.08 points (0.07%) on the final trading day of the week, closing at 2,658.02. After four days of steady decline, Thursday saw a mild recovery driven by increased investor activity.
Out of the traded companies, shares of 83 firms rose, 161 declined, and one remained unchanged. While most sector indices dropped, the trade index climbed by 17.72 points, hydropower rose by 7.73 points, and investment increased by 2.81 points.
Gold price falls by NPR 1,000 per tola
Gold prices dropped to NPR 189,600 per tola on Friday, down from NPR 190,600 the previous day, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Silver prices held steady at NPR 2,000 per tola. On the global market, gold was trading at approximately USD 3,325 per ounce.
Oil Corporation profits while consumers miss out on global price drop
Despite a 23.53% decline in international crude oil prices since the start of this fiscal year, the Nepal Oil Corporation has passed on minimal price reductions to consumers while posting profits of NPR 9 billion.
Petrol prices have dropped by only 6.43%, while diesel, kerosene, and aviation fuel were reduced by 8.75%. The price of cooking gas has remained unchanged.
MCC assistance to Nepal unaffected by U.S. political shifts
Despite the re-election of Donald Trump and changes in U.S. foreign policy, the Millennium Challenge Corporation (MCC) will continue its support to Nepal.
According to Reuters, the Trump administration, under close ally Elon Musk, has ordered the suspension of MCC programs in most countries, except for Nepal and three others.
Trump has questioned the effectiveness of such aid programs, arguing against the misuse of American taxpayer funds.
Minister warns Facebook of ban if not registered within a week
Minister for Communication and Information Technology, Prithvi Subba Gurung, has issued a one-week ultimatum to Meta (Facebook’s parent company) to register in Nepal.
Speaking at a program organized by the National Information Commission, he warned that failure to register would result in a ban.
The minister emphasized that Meta earns substantial revenue from Nepal and must comply with tax and regulatory obligations, stating that no foreign corporation can be allowed to bypass national laws.
Over 57 million kiloliters of diesel imported via Amlekhganj pipeline
Since the Mothihari-Amlekhganj petroleum pipeline came into operation six years ago, over 57 million kiloliters (5.71 billion liters) of diesel have been imported into Nepal.
The Madhesh Regional Office of Nepal Oil Corporation reports that between 1,353 to 3,568 kiloliters are imported daily. In the first nine months of the current fiscal year alone, the import volume reached 851,338 kiloliters, with daily imports averaging 2,840 kiloliters in the last fiscal year.
NRB penalizes five financial institutions for regulatory violations
The Nepal Rastra Bank (NRB) has taken disciplinary action against five financial institutions for breaching banking norms. These include three development banks—Mukti Nath, Narayani, and Salpa—and two finance companies—Janaki and Pokhara Finance.
Among the violations, Mukti Nath’s chairman Bharat Raj Dhakal was found involved in unauthorized construction activities, leading NRB to issue an official warning.
Agriculture budget ceiling set at NPR 1 billion for new provincial projects
For the next fiscal year, the Ministry of Agriculture has capped the budget for new agricultural projects at NPR 1 billion across provincial and local levels. However, proposals from these governments have already exceeded NPR 30 billion.
Minister Ramnath Adhikari stated that this ceiling includes funding for rural roads, markets, livestock programs, organic fertilizers, and crop improvement.
NRNA Australia expresses interest in boosting investment in Nepal
The Non-Resident Nepali Association (NRNA) of Australia has expressed its intention to increase investments in Nepal. In a meeting with Prime Minister KP Sharma Oli, NRNA Australia president Anil Pokhrel emphasized the desire of the Australian NRN community to invest more, provided Nepal ensures an investor-friendly environment.
Discussions also included strengthening trade and economic ties, leveraging the investment framework, and enhancing bilateral cooperation between the two countries.
Nepal Insurance Authority revises foreign employment group insurance rules again
The Nepal Insurance Authority has made a second amendment to the regulations governing the Foreign Employment Group Insurance Fund (PUL).
Under the new rule, insurance companies must deposit premium records from the 1st to 15th of each month into the designated bank account by the 1st of the following month.
Similar requirements apply to the second half of the month. Insurance companies must also submit details of claims and premium receipts to the fund manager, who must confirm the transactions.
Taxi classification system implemented in Nepal
The Ministry of Physical Infrastructure and Transport has introduced new national standards for taxi services under the “National Standards for Vehicles Used as Taxis 2081,” replacing those of 2076.
The updated classification divides taxis into three categories—Ordinary, Deluxe, and Luxury—based on features like size, performance, and amenities. These rules apply to all taxis, including existing and newly registered ones.
New tourism bill restricts Everest climb without prior 7,000-meter peak experience
A proposed provision in the new Tourism Bill 2081 bars individuals from attempting Mount Everest unless they have previously summited a 7,000-meter Himalayan peak.
The bill, registered in the National Assembly by the Ministry of Culture, Tourism, and Civil Aviation, also requires climbers to submit health certificates.
Those deemed medically unfit will be barred from mountaineering or joining climbing teams. This bill will replace the Tourism Act of 2035 B.S.
Koshi Province invites Indian investors to explore local opportunities
At the Nepal-India Partnership Summit held in Purnia, Bihar, the Koshi Province Committee of the Nepal-India Chamber of Commerce and Industry (NICCI) encouraged Indian investors to consider projects in the province.
Committee president Mukesh Upadhyay highlighted investment potential in tourism, agriculture, and other sectors. The event was held in collaboration with organizations like the Sub-Himalayan Research Institute and the Nepal-India Centre.
Sun Nepal Life Insurance to issue 27% rights shares
Sun Nepal Life Insurance Company is set to issue 27% rights shares, totaling 10,696,320 shares at NPR 100 per share. The total value of the issue is NPR 1.07 billion.
Shareholders recorded by Baishakh 4 are eligible to apply during the open window from Baishakh 30 to Jestha 19. Nepal SBI Merchant Banking is managing the rights issuance.
HAN calls for faster upgrades on Narayanghat-Butwal road section
The Gandaki chapter of the Hotel Association Nepal (HAN) has urged the government to expedite improvements along the Narayanghat-Butwal section of the East-West Highway.
Chairman Hariprasad Sharma Gaire stated that delays in upgrading the road have caused significant hardship for both tourists and locals, with ongoing dust and mud making travel unpleasant.
Government approves areca nut imports despite local surplus
The government has permitted the import of over 11,000 tons of areca nut for the next six months, even though local production—estimated at 14,500 tons annually—is sufficient.
Critics argue that the Ministry of Industry, Commerce, and Supplies yielded to pressure from interest groups, especially after scrapping the import quota system last month.
Rapid construction of bridges in Saptari
Six bridges have been completed in Saptari within the first nine months of the current fiscal year, and seven others are nearing completion, according to the Lahan Road Division Office.
Chief Ashutosh Karna said that while load testing remains pending, these efforts aim to expand road infrastructure in the district. Notable projects include bridges on the Ghode Daha River and along the Rajbiraj-Chhinnamasta road.
Delays plague road projects in Achham and Bajura
Despite allocating NPR 3.57 billion for 13 road projects in Achham and Bajura, delays persist across 14 out of 19 contracts awarded by the Infrastructure Development Office.
Among these, two are designated as provincial pride projects. So far, NPR 1.89 billion has been spent, with NPR 573 million allocated for the current year. Deadline extensions have not resolved construction delays.
Rural goods from Humla exported to China
Local producers in Humla have successfully exported traditional food products to Taklakot, China, under a cross-border trade agreement.
Mukunda Rokaya, an entrepreneur from Simkot Municipality-6, reported that the initial shipment—featuring millet and buckwheat flour, walnut oil, and more—generated NPR 1.8 million in revenue.
Durga Prasai under scrutiny for multi-billion rupee loan defaults
Controversial businessman and healthcare entrepreneur Durga Prasai is being investigated for loan defaults totaling over NPR 7 billion, related to three of his projects.
Previously known for leading anti-loan repayment protests, Prasai now faces allegations of threatening bank officials, including a former NRB governor. He has been taken into police custody as investigations continue.
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