KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic indicators present a mixed picture of progress and persistent structural challenges. While the NEPSE index saw a modest recovery and market capitalization surged to Rs 4.656 trillion, overall trading volume declined, and private sector lending growth remained subdued at just 8.4%, far below policy targets.
Despite a balance of payments surplus and increased margin lending by banks, outward remittances for education soared to Rs 138.48 billion, reflecting ongoing domestic capacity gaps. Regulatory actions, such as loan restructuring for land developers and SEBON’s planned reforms, aim to address financial sector inefficiencies.
Meanwhile, infrastructure developments and budget reallocations signal a push for project continuity, though issues like sidewalk disruptions, fertilizer management delays, and customs evasion reveal governance and implementation weaknesses. Overall, the data highlights cautious optimism tempered by systemic limitations in public service delivery, financial discipline, and domestic resource utilization.
NEPSE rises after three-day pause, most sectors see gains
Following three days of little movement, Nepal’s stock market recorded an uptick on Monday. The NEPSE index rose by 21.30 points to close at 2,761, peaking at 2,764 points around 2:30 PM. Despite the index’s rise, total trading volume declined, with turnover dropping from Rs 6.54 billion the previous day to Rs 5.75 billion. Stock prices increased for 179 companies, while 71 saw declines. A majority of sectoral indices closed higher.
Gold prices dip slightly ahead of Teej festival
Gold prices in Nepal declined slightly on the eve of Teej. The Federation of Nepal Gold and Silver Dealers’ Association reported that hallmark gold fell by Rs 300 per tola on Monday, reaching Rs 197,200. On Sunday, the price had stood at Rs 197,500 per tola.
Rs 139 billion sent abroad for education last fiscal year
Despite the availability of higher education institutions in Nepal, a significant amount of money continues to flow abroad for studies. According to the central bank, Rs 138.48 billion was remitted for education in FY 2023/24, up from Rs 125.13 billion the previous year. Travel-related spending also jumped 18.1%, reaching Rs 223.72 billion compared to Rs 189.43 billion the year before.
Embossed number plates to be installed on only 2.5 million vehicles
Out of the 6.5 million vehicles operating in Nepal, only 2.5 million are targeted for embossed number plate installation. So far, 80,000 vehicles have received the plates. After installing plates on 1.2 million vehicles, the next phase—including tendering for the remaining 1.3 million—will begin.
Balance of payments records surplus of NPR 59.454 billion
Nepal’s adjusted balance of payments showed a surplus of Rs 59.454 billion, up from Rs 50.249 billion last year. The current account surplus also grew significantly, rising from Rs 221.71 billion to Rs 409.20 billion. In dollar terms, the surplus increased from USD 167 million to USD 301 million.
Banks increase lending against share collateral
Banks and financial institutions significantly increased their investments in margin lending against share collateral. From Rs 9.09 billion at the end of FY 2023/24, the total surged by 56.17% to Rs 14.07 billion by the end of FY 2024/25.
Government to clear overdue sugarcane subsidy soon
The government has pledged to clear pending sugarcane subsidies within a few days. The Ministry of Agriculture and Livestock Development cited delays due to late approval from the Finance Ministry. Farmers will receive Rs 35 per quintal from the fiscal year 2024/25 subsidy allocation.
Market capitalization reaches NPR 4.656 trillion
Nepal Rastra Bank data shows that stock market capitalization reached Rs 4.65699 trillion at the end of the last fiscal year. This marks a rise from Rs 3.5368 trillion at the end of FY 2023/24. Market cap as a share of GDP increased from 62.25% in 2024 to 76.25% in 2025.
PM’s fertilizer management deadline goes unmet
Prime Minister KP Sharma Oli had directed the Ministry of Agriculture and Livestock Development to submit a fertilizer distribution and management plan by August 15. However, the deadline has passed without any plan being presented. It has now been 12 days since the deadline expired.
Sebon to revise securities issuance regulations
The Securities Board of Nepal (SEBON) has begun the process of revising its Securities Registration and Issuance Regulations. Internal reviews and discussions are ongoing, particularly concerning public share provisions for hydropower companies and companies operating under the “boot model.”
Budget reallocated for 25 key road projects
To address budget shortfalls affecting critical infrastructure, the government has redistributed funds to 25 major road projects. The Department of Roads allocated more than Rs 25 million to 17 projects while reducing funds for 5 others. Most reallocations came at the request of local leaders, lawmakers, and ministers.
Electric vehicle customs evasion under probe
Investigations are underway into customs evasion involving electric vehicles. Importers have reportedly been declaring electric cars as under 100 kW—typically listed at 99 kW—to take advantage of lower tax brackets, exploiting gaps in the verification process. The matter has reached both the Commission for Investigation of Abuse of Authority and the Revenue Investigation Department.
Private sector credit grows just 8.4% in last fiscal year
In fiscal year 2023/24, credit to the private sector from banks and financial institutions grew by only 8.4%, falling short of the 12.5% growth target set by monetary policy—achieving just 67.2% of the goal. This marks a 2.6 percentage point increase from the previous year’s growth of 5.8%.
One-time loan restructuring allowed for land and housing firms
Land and housing companies approved by the government are now eligible for a one-time loan restructuring facility. Nepal Rastra Bank has granted this benefit to construction and land development firms operating under government authorization, with certain terms and conditions in place.
Nepal Airlines’ Lumbini aircraft returns to service after 20 days
After being grounded for 20 days due to engine issues, Nepal Airlines’ Airbus A-320 “Lumbini” is back in operation. The aircraft encountered engine problems following its August 6 flight from Hong Kong to Kathmandu. Engineers reported that the issue took seven days to identify and five more to obtain the necessary parts, with the plane resuming flights Monday evening.
Sidewalk obstruction causes difficulties for pedestrians in Kathmandu
Pedestrians in Kathmandu’s Jamal, Bhotahiti, and Sundhara areas are facing trouble due to blocked and damaged sidewalks. Construction materials litter walkways, and road sections dug up by the Nepal Electricity Authority for underground wiring remain unrepaired. Even light rain turns the unfinished areas muddy, worsening pedestrian conditions.
Finance Ministry reshuffles 90 officials
Ninety officials under the Ministry of Finance have had their responsibilities reassigned, including over 80 who were transferred last week. At the request of Finance Minister Bishnu Prasad Paudel, several section officers’ duties were also restructured. Notable transfers include Rabindra Pyakurel, now moved from Rasuwagadhi Customs Office, and Nirmal Kumar Mainali, reassigned from the Large Taxpayers Office to the National Natural Resources and Finance Commission.
Imports from Kakarbhitta decline to Rs 3.694 billion in first month
Imports through the Kakarbhitta customs point in eastern Nepal totaled Rs 3.694 billion in the first month of FY 2025/26. This is a drop of Rs 190.2 million from the same period last year, which recorded Rs 3.8843 billion in imports. Exports from the checkpoint also decreased during this time.
New corridor to link Bulbule and Kankrevihar in Surkhet
A short-distance corridor connecting Bulbule to Kankrevihar will be built in Surkhet. The Karnali Province government has included the project—featuring water supply facilities—in this year’s budget. A pre-feasibility study is ongoing, with implementation set to proceed through the Directorate of Water, Irrigation, and Energy Development.
Nepal Life Insurance to offload NIC Asia Bank founder shares
Nepal Life Insurance Ltd. is set to sell 200,000 founder shares of NIC Asia Bank Ltd. at Rs 140 per share. Only existing shareholders are eligible to apply within 35 days. Applications must be submitted at the company’s corporate office in Kamaladi, Kathmandu.
Nepal Mediciti Hospital sees decline in annual revenue
Nepal Mediciti Hospital, operated by Ashwin Medical College and Hospital Pvt. Ltd. and backed by investor Upendra Mahato, reported a decline in business last fiscal year. Revenue fell from Rs 2.744 billion in 2024 to Rs 2.555 billion in 2025—a drop of around Rs 200 million.
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