KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a dynamic interplay of growth, reform, and infrastructure development, marked by a bullish NEPSE climbing 112 points and expanding trade activity through Nepalgunj Customs. Government efforts to reform the Citizen Investment Trust Act and channel employee savings into priority sectors signal a policy shift toward boosting capital mobilization and national development.
Infrastructure advances such as the 60% completion of TIA’s expansion, near-completion of the Sisnekhola–Nagdhunga tunnel, and the construction of Nepal’s first four-lane bridge over the Madi River underline long-term investment in connectivity.
However, challenges persist, including severe rainfall shortages threatening rice output in Madhesh and Koshi, high business irregularities, and unspent budgets in districts like Mugu. Meanwhile, private sector momentum is seen in the rapid growth of High Tension Switchgears and the launch of BYD Sealion-7, signaling evolving consumer markets.
NEPSE climbs by 112 points, weekly turnover approaches Rs 100 billion
The Nepal Stock Exchange (NEPSE) continued its upward trend this week, rising by 112 points over five trading days from Shrawan 4 to 8 (July 20–24, 2025). This rally came in the wake of Nepal Rastra Bank’s new monetary policy for the current fiscal year, which seems to have strengthened investor confidence. By Thursday’s close, the NEPSE index reached 2,982.64 points, up from last week’s 2,870.63.
Gold price falls by Rs 500 per tola, slight rise in silver
The price of gold dropped by Rs 500 per tola in Nepal on Friday. According to the Federation of Nepal Gold and Silver Dealers Association, hallmarked gold was priced at Rs 194,700 per tola, down from Rs 195,200 the previous day. Meanwhile, silver prices saw a minor increase.
Government drafting amendment to Citizen Investment Trust Act
The government is working to revise the Citizen Investment Trust (CIT) Act, 2047, in line with fiscal year 2082/83 budget commitments. The Ministry of Finance says the amendment seeks to address operational hurdles and implement policy reforms. A draft has been published for public input and includes provisions to broaden investment areas and boost the Trust’s capital base.
TIA infrastructure expansion 60% complete after five years
The infrastructure development at Tribhuvan International Airport, aimed at handling 10 million passengers annually, has reached around 60% completion. Dipendra Shrestha, Project Director at the Civil Aviation Authority’s Air Traffic Capacity Enhancement Project, reported that three separate ongoing projects within the airport are progressing steadily.
NRB invites bids to print Rs 21 billion worth of new currency
Nepal Rastra Bank has floated an international tender for printing new banknotes totaling Rs 21 billion. The plan includes producing 420 million Rs 50 denomination notes. The Currency Management Department has called for bids from qualified international security printers, covering the design, printing, supply, and delivery of the notes under global competitive bidding procedures.
Employees’ savings may be directed to national priority sectors
The government is developing legislation to channel the savings of civil servants and employees of organized institutions into national priority sectors. The Finance Ministry has drafted amendments to the Employees Provident Fund Act and the CIT Act, enabling such savings to be used for projects in energy, transport, tourism, IT, agriculture, health, and education.
PAC gives green light to Jagadulla hydropower project contract
The Public Accounts Committee has reversed its earlier decision and allowed the contract process for the 106 MW Jagadulla Hydropower Project to proceed. The committee had initially halted the process on June 6 due to concerns about forged documents in bids. However, at its July 23 meeting, the committee directed that the process should now move forward.
Four banks and financial institutions penalized by NRB
Nepal Rastra Bank has taken action against four financial institutions for violations in the fourth quarter of the last fiscal year. These include Citizen Bank International, NIC Asia Bank, Pokhara Finance, and Guheshwori Merchant Banking and Finance. Citizen Bank’s board was reprimanded for amending the CEO’s contract in violation of regulations and failing to properly audit loans issued under its Citizen Fast Track Loan program.
MPs raise concerns over constitutionality of water resources bill
Lawmakers have expressed concern that the Water Resources Bill, 2024 may conflict with the Constitution. They objected to clauses that require approval from the Water and Energy Commission for using water resources, stating that such provisions may overstep constitutional boundaries.
Irregularities found in 95% of inspected businesses in FY 2024/25
The Department of Commerce, Supplies and Consumer Protection reported that 95% of businesses inspected in the Kathmandu Valley during fiscal year 2024/25 had some form of irregularity. Out of 3,900 firms inspected, only 167 were found fully compliant.
New aviation fuel depot at TIA to cost Rs 6.54 billion
The cost for building a new aviation fuel depot at Tribhuvan International Airport is estimated at Rs 6.54 billion. This estimate was submitted by the Institute of Engineering’s Department of Consultancy Services to the Nepal Oil Corporation. The Civil Aviation Authority plans to use the current depot area to construct a taxiway as part of the airport’s master plan.
Pokhara hotel group calls for direct flights from India, briefs UAE envoy
The Hotel Association of Pokhara Nepal has urged Prime Minister KP Sharma Oli and Finance Minister Bishnu Poudel to help establish direct flights from major Indian cities to Pokhara International Airport. The delegation also briefed the UAE ambassador in hopes of encouraging international connectivity ahead of the Prime Minister’s India visit.
Sisnekhola–Nagdhunga tunnel project reaches 92.5% completion
Construction of the Sisnekhola–Nagdhunga tunnel, Nepal’s first modern tunnel, is nearing completion with 92.5% of work done. Japanese firm Hazama Ando Corporation began the project in December 2020. Financial progress is currently at 86.34%, according to the project team.
Experts warn of significant rice crop losses in Madhesh and Koshi due to weak rainfall
Agricultural experts have raised concerns that insufficient rainfall in Madhesh and Koshi provinces may lead to a sharp decline in paddy production this year. Dr. Mathura Yadav, who heads the National Rice Research Program under the Nepal Agricultural Research Council (NARC), cautioned that if monsoon rains do not arrive by the fourth week of Shrawan (early August), rice yields could drop by at least 25%. “If rain doesn’t arrive soon, we may see a drastic reduction in cultivation,” said Yadav.
Nepal building its first four-lane bridge over the Madi River
Construction is underway on Nepal’s first four-lane bridge, spanning the Madi River, as part of the Mugling–Pokhara road expansion. Project Chief Prakash Chandra Bhandari stated that the 318-meter-long bridge had its design later revised by the construction company, which has full responsibility for the new blueprint. The contract is valued at Rs 1.21 billion, with 71% of the financial work completed so far. The maintenance period for the bridge will last five years.
Coffee farming expands across 12 districts in Koshi Province
Commercial coffee cultivation is spreading across Koshi Province, now covering over 2,000 hectares across 12 districts. Ananta Dhungana, the Information Officer at the National Tea and Coffee Development Board’s regional office in Birtamod, said that coffee is now being grown in Ilam, Dhankuta, Bhojpur, Khotang, Sankhuwasabha, Okhaldhunga, Solukhumbu, Tehrathum, Udayapur, Morang, Panchthar, and Taplejung.
More than Rs 930 million in budget goes unspent in Mugu
Mugu district saw Rs 932.4 million of its allocated budget go unused in the fiscal year 2024/25. According to the District Treasury Controller Office and the Provincial Accounts Controller Office, only Rs 2.51 billion of the Rs 2.81 billion allocation was utilized. Expenditures included Rs 2.38 billion for recurrent costs and Rs 1.25 billion for capital projects, as confirmed by office chief Hari Adhikari.
High Tension Switchgears reports 73.60% growth in annual business
High Tension Switchgears Pvt. Ltd. reported a significant 73.60% increase in business in 2024, with turnover reaching Rs 2.12 billion, up from Rs 1.22 billion in 2023. In the two prior years, the company posted revenues of Rs 506.8 million (2022) and Rs 537.8 million (2021), indicating strong and consistent growth in its operations.
Over Rs 8 billion worth of trade conducted via Nepalgunj Customs last fiscal year
In fiscal year 2024/25, the Nepalgunj Customs Office recorded trade exceeding Rs 8.03 billion with 26 countries. While revenue targets weren’t fully achieved, trade volume rose by over Rs 774 million compared to the previous year’s Rs 7.26 billion. The figures reflect growing cross-border economic activity through the Nepalgunj corridor.
BYD Sealion-7 officially launched in Nepal
SYMEX Inc., the authorized distributor of BYD in Nepal, has officially launched the Sealion-7 electric vehicle. Although the car was showcased during last year’s NADA Auto Show, sales only began following the formal launch held on Thursday evening. The vehicle is now available in the Nepali market.
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