KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflects a mix of regulatory tightening, shifting market dynamics, and uneven sectoral performance. The NEPSE index continued its mild upward trend despite falling turnover, while soaring gold prices signaled global market volatility influencing domestic sentiment.
Major policy moves—including NRB’s CPI base-year overhaul and new frameworks for systemically important banks, alongside SEBON’s stricter rules on dividend taxation and margin trading—highlight an ongoing push to strengthen financial discipline and transparency.
Meanwhile, agriculture showed mixed outcomes: rice and cumin imports surged amid expectations of lower domestic paddy output, garlic imports collapsed, and Mustang’s potato production rose in value. Administrative and fiscal challenges persisted, with Bagmati Province using only 7 percent of its budget and the federal government freezing key irrigation projects.
Consumer protection actions intensified, with fines issued for unfair trade and enforcement against overpricing bottled water. In the broader economic context, election spending, easing UAE visa rules, and energy-sector agreements securing long-term electricity trade all underscored the interplay between governance, labor mobility, and infrastructure development in shaping Nepal’s near-term economic trajectory.
NEPSE rises 5.32 points to close at 2655 on Tuesday
The Nepal Stock Exchange (NEPSE) index extended its upward momentum for the third straight trading day, climbing 5.32 points to settle at 2655 on Tuesday. Despite the index gain, total turnover fell to Rs 5.82 billion from Monday’s Rs 7.3 billion. A total of 122 companies saw price increases, while 125 experienced declines. The hotel and tourism group led the day with a 1.4 percent gain. Shares of Jhapa Energy, Sagar Distillery, and Shrinagar Agritech surged by 10 percent each.
Gold price surges by Rs 5,200 to reach Rs 247,000 per tola
Gold prices in Nepal jumped by Rs 5,200 on Tuesday, reaching Rs 247,000 per tola, according to the Nepal Gold and Silver Dealers’ Association. The previous day’s price stood at Rs 242,700 per tola. Silver also rose by Rs 85 to hit Rs 3,200 per tola. The price increase is linked to international market fluctuations, steady global price growth, and shifting demand.
NRB updates CPI base year to 2023/24
Nepal Rastra Bank (NRB) has overhauled its inflation measurement framework by updating the Consumer Price Index (CPI) base year from 2014/15 to 2023/24. The revision reflects changes in spending behavior: the weight of the Food and Beverage category has dropped to 35.49 percent, while Non-Food and Services has risen to 64.51 percent. The goods basket has expanded from 496 to 525 items, and geographic coverage now includes all 77 districts. NRB will also begin publishing province-level CPI data.
SEBON requires firms to adjust dividend tax on bonus shares
The Securities Board of Nepal (SEBON) has enforced the 10th amendment to the Securities Issue and Allotment Directive, 2012, introducing a major change in how bonus-share-related tax is handled. Under the new rule, companies must now deduct and settle the dividend tax applicable during bonus share distribution directly from the dividend amount. The provision aims to address practical difficulties previously faced in managing bonus distribution and tax reconciliation.
Finance Ministry allocates Rs 4.96 billion for upcoming election
The Ministry of Finance has released Rs 4.96 billion to the Election Commission (EC) for the forthcoming House of Representatives polls. EC spokesperson Narayan Prasad Bhattarai said the commission had initially sought Rs 7 billion. He also reported that the voter count has reached 19,005,324, including 837,094 newly registered voters. The final voter roll will be published by December 30 after removing duplicate or ineligible entries.
Nepal’s cumin imports reach Rs 1 billion
Nepal typically imports around Rs 3 billion worth of cumin annually, with 99 percent arriving from India. In the first four months of FY 2025/26, cumin imports totaled 2,536 tons worth Rs 1.9 billion. Despite the heavy dependency, the National Potato, Vegetable, and Spice Crop Development Centre reports that commercial cumin farming in Nepal is practically nonexistent, underscoring the need for research and intervention by institutions such as NARC.
NRB rolls out framework 2025 for systemically important banks
Nepal Rastra Bank has introduced the ‘Systemically Important Banks (SIBs) Framework 2025’ to identify SIBs and strengthen financial stability. Modeled on lessons from the 2008 global financial crisis, the framework requires designated banks to hold extra Higher Loss Absorbency (HLA) capital beginning January 2027. The criteria for identifying SIBs include size (40 percent), interconnectedness (30 percent), substitutability (15 percent), and complexity (15 percent).
Rice imports jump to Rs 10.18 billion in first four months
Nepal’s rice imports totaled Rs 10.18 billion during the first four months of fiscal year 2025/26, an increase of Rs 3.22 billion over the same period last year. The country imported 185,000 tons of rice. Senior Statistics Officer Ram Krishna Regmi attributed the surge to India easing export restrictions and the relatively low price of imported rice. Meanwhile, the Agriculture Ministry expects local paddy output to dip slightly due to unseasonal rain and drought conditions.
Garlic import value falls steeply from Rs 3.17 billion
Garlic imports have plummeted compared to last year. Customs data show that 4,998.30 metric tons of garlic worth Rs 668.49 million were imported in the first four months of the current fiscal year, sharply down from 23,989 metric tons valued at Rs 3.173 billion during the same period last year.
Potato production in Mustang valued at Rs 628.2 million
The five local levels of Mustang district produced potatoes worth an estimated Rs 628.23 million in FY 2025/26. According to the Agriculture Knowledge Centre, 9,665 metric tons were harvested across 478 hectares. The production value rose by Rs 118.4 million from last year, largely due to farm-gate prices increasing from Rs 60 to Rs 65 per kilogram.
Minister Ghising says recent power deals safeguard Nepal’s energy future
Energy Minister Kulman Ghising stated that recent agreements with India have secured Nepal’s long-term electricity trade prospects. The Nepal Electricity Authority (NEA) has booked capacity for 25 years on the Inaruwa–Purnia and Lamki–Bareilly 400 kV cross-border transmission corridors. Ghising added that purchasing 180 MW of power from PTC India for the dry months helped the NEA avoid a potential loss of Rs 1.2 billion.
Government freezes Rs 30 million Sunpokhari reconstruction budget
The federal government has halted the Rs 30 million fund allocated for rebuilding the 2-million-liter Sunpokhari pond in Amargadhi Municipality-7, Dadeldhura. The pond, which has been in disrepair for 15 years, provides irrigation to more than 2,500 ropani (1,271,832 sq. meters) of farmland. Ward Chair Khadak Bohora expressed disappointment over the budget freeze. The Irrigation and Water Resources Management Project Office stated that nine of its 12 irrigation projects—worth roughly Rs 340 million in total—had their budgets frozen.
Charging above MRP for bottled water now punishable
The Department of Commerce, Supplies, and Consumer Protection (DCSCP) has warned that hotels and restaurants will face action if they charge more than the Maximum Retail Price (MRP) for bottled water. The agency noted that many establishments list menu prices that are double the legal MRP. It reminded Kathmandu Valley consumers that the official MRP for a one-liter water bottle is Rs 16. Complaints, even verbal, will be acted upon under the Consumer Protection Act, 2018.
Bagmati Province spends only 7 percent of budget in four months
Bagmati Province used just about 7 percent of its total budget in the first four months of FY 2025/26. Out of Rs 67.477 billion allocated, only Rs 4.903 billion was spent by mid-November. Capital expenditure was especially low at 3.24 percent, or Rs 1.34 billion. Economic Affairs Minister Prabhat Tamang cited ongoing procurement and contracting procedures as the main cause, saying spending should rise after December.
DCSCP fines 14 firms for unfair trading practices
The Department of Commerce, Supplies, and Consumer Protection fined 14 companies in Kathmandu and Bhaktapur for engaging in unfair business practices. Halesi Mart Pvt. Ltd in Madhyapur Thimi was fined Rs 200,000, while Om Shivashakti Ceramic was penalized Rs 50,000. The action was taken under the Consumer Protection Act, 2018, which authorizes inspection officers to impose fines of Rs 200,000 to Rs 300,000 for such offenses.
Jumla IRO collects Rs 86.8 million in four months
The Inland Revenue Office in Jumla collected Rs 86.8 million in the first four months of the fiscal year—below its target of Rs 130 million. Chief Tax Officer Prabhat Ghimire said income tax was the strongest contributor at Rs 64.4 million. The office is working to strengthen taxpayer education and minimize revenue leakage to meet its annual goal of Rs 640 million.
Dang district records 3.06 percent rise in paddy output
Paddy production in Dang district reached 186,000 tons this year, up 3.06 percent from last year’s 178,000 tons. The crop was grown on 36,481 hectares with a productivity level of 5.09 tons per hectare. According to the District Agriculture Knowledge Centre, improved seed varieties, adequate fertilizer supply, and consistent rainfall contributed to the production increase. Farmers favored improved and local rice varieties rather than hybrid ones this season.
SEBON drafts new directive to regulate margin trading
The Securities Board of Nepal has released a draft of the ‘Margin Trading Facility Directive, 2025’ aimed at reducing disorder and risk in margin lending. The proposal introduces strict criteria for both listed companies and brokers. Eligible companies must have at least 5 million listed shares, strong net worth, and a consistent record of dividend payout. Brokers must hold at least Rs 200 million in paid-up capital. The rule requires investors to fund at least 50 percent of their stock purchases, while brokers may lend the remaining 50 percent.
Myagdi river control project begins in Beni at Rs 42.1 million
A flood and erosion control initiative has commenced along the Myagdi River near the Darbang Bus Park in Beni Bazaar. The project involves constructing a 165-meter composite wall, contracted on April 23, 2025, for Rs 42.1 million, with completion due by July 4, 2026. It is among six similar river control projects launched this year across Myagdi, Parbat, and Mustang, totaling an estimated Rs 202.9 million.
Nepal SBI Bank declares 9 percent dividend for shareholders
Nepal SBI Bank has proposed a 9 percent dividend for its shareholders, pending approval from Nepal Rastra Bank and the upcoming AGM. The dividend includes a 5 percent cash payout (tax included) and a 4 percent bonus share. The decision was made during the bank’s Board of Directors meeting. The bank currently has a paid-up capital of Rs 10.89 billion.
UAE relaxes visa process for Nepali nationals after government request
The United Arab Emirates has eased visa procedures for Nepali workers and visitors after temporarily suspending them over security concerns following the Gen Z protest. According to the Nepal Foreign Employment Agencies Association and Immigration Director Tika Ram Dhakal, the UAE softened its stance following a formal request from the Nepal government. The decision is expected to support remittance inflows, especially as the UAE remains Nepal’s largest labor destination, with 80,901 workers receiving final labor approval in the first four months of the fiscal year.
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