KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent week in Nepal’s economic and policy landscape reflects a mix of volatility, adaptation, and strategic planning.
The sharp 65-point decline in NEPSE, wiping out Rs 107 billion in market value, signals investor uncertainty despite a digital transformation in trading and stronger broker capital compliance.
Simultaneously, key institutions like NOC and the Nepal Rastra Bank are taking reformative steps—introducing subsidy-targeting mechanisms and enforcing financial discipline.
On the development front, Nepal is asserting self-reliance in energy and foreign policy, with Prime Minister Oli’s call for reduced aid dependency and renewed momentum on projects like Upper Karnali. Meanwhile, initiatives in tourism, agriculture tech, and Everest regulation reflect efforts to balance economic revival with long-term sustainability.
NEPSE sheds 65 points in a week, Rs 107 billion wiped off market
The Nepal Stock Exchange (NEPSE) index dropped by 64.71 points over the week, closing at 2,658.02. The market declined on four of the five trading days. Although turnover rose to Rs 40.98 billion, total market capitalization fell to Rs 4.419 trillion, resulting in a loss of Rs 107 billion in investor wealth.
Technical analysis showed resistance at the 50-day moving average and support near the 200-day line. All sectors except mutual funds and manufacturing posted losses, with NEPSE falling below the weekly pivot point of 2,706.
Nepal’s stock market sees rapid digital shift
Nepal’s share market has embraced digital trading with widespread use of Demat accounts, online trading platforms, and electronic payments. Investors now handle IPOs, settlements, and trades through “Mero Share” and TMS without needing brokers.
This digital transition—accelerated during the COVID-19 pandemic—was supported by SEBON, NEPSE, CDSC, banks, and brokers. Smartphone access and internet penetration have further fueled this transformation.
Most brokers meet capital requirement, easing merger pressure
Around 80% of brokerage firms in Nepal have met the Securities Board’s requirement to raise their paid-up capital to NPR 200 million, decreasing the likelihood of mergers.
SEBON had mandated the capital hike by Ashadh 2082 to enhance competitiveness and protect investors. Many brokers managed the upgrade internally, and others are expected to comply soon.
Analysts believe that the successful capital infusion reduces the need for consolidation in the sector.
NOC to introduce dual pricing system for LPG
Nepal Oil Corporation is preparing to implement a dual pricing system for liquefied petroleum gas (LPG), with subsidies for household use and market prices for commercial consumption.
In collaboration with Rastriya Banijya Bank, NOC is developing software to connect users’ citizenship and bank accounts for the purpose of refunding subsidies.
A trial will begin in Asar, with full rollout expected in the next fiscal year. The initiative aims to reduce losses of approximately Rs. 1.14 billion per month from LPG sales.
PM Oli calls for self-reliance following MCC cancellation
Prime Minister KP Sharma Oli emphasized the importance of reducing dependency on foreign aid, following the U.S. decision to terminate the Millennium Challenge Corporation (MCC) compact.
Speaking at a CPN-UML parliamentary party meeting, PM Oli noted that both the MCC and USAID programs had concluded, underscoring the urgency for Nepal to chart its own development path. He also said that pressure from the U.S. to implement the MCC had fueled significant political discord within the country.
Investment board panel backs GMR for Upper Karnali financing
An expert committee from the Investment Board has recommended that GMR handle financial management for the Upper Karnali hydropower project. This comes despite the Reserve Bank of India’s rejection of IREDA’s proposal to invest a 5% equity share.
Major stakeholders in the 900 MW project include GMR, SJVN, IREDA, and NEA. GMR has submitted documentation claiming secured funding from Indian and Nepali banks. A final decision is expected at the upcoming board meeting on Sunday. GMR received the project in 2008 under a BOOT (Build-Own-Operate-Transfer) model.
Nepal promotes tourism at COTTM 2025 in Beijing
Nepal showcased its tourism offerings at the 18th China Outbound Travel and Tourism Market (COTTM 2025) in Beijing, targeting increased tourist arrivals from China.
The Nepal Tourism Board highlighted the country’s scenic Himalayas, rich culture, and adventure activities. Nepali representatives met with Chinese tour operators to explore future collaborations.
The initiative is expected to strengthen Nepal’s visibility in the Chinese travel market and build long-term partnerships.
Everest climbers must first summit a 7,000m peak
According to the newly introduced Tourism Act 2081, climbers must first successfully scale a mountain above 7,000 meters before receiving permission to climb Mount Everest.
The draft law, currently under discussion in the National Assembly, is aimed at managing climbing traffic, preventing overcrowding, and ensuring that climbers have adequate experience.
Nepal has around 80 mountains above 7,000 meters, including eight over 8,000 meters. The rule will be enforced once the act is officially passed and published.
Tribhuvan International Airport handles over 1.18 million passengers in early 2025
Tribhuvan International Airport recorded more than 1.18 million passengers in the first quarter of 2025, maintaining its position as Nepal’s busiest air hub. The airport saw 7,443 flight movements during January, February, and March, with passenger traffic dipping slightly in February but rebounding in March.
Cargo operations remained strong, with over 6.23 million tons of goods handled, including imports and exports.
Flour mills association signs satellite farming deal with Agriwatch
The Nepal Flour Mills Association has signed an agreement with Indian firm Agriwatch to introduce satellite-based agricultural advisory services. Signed during the Association’s 24th AGM, the partnership marks the first of its kind by Nepal’s private sector.
The initiative will offer AI-powered crop guidance, market trends, and production-consumption data, helping farmers and traders make informed decisions and supporting the government in agricultural planning.
Nepal Rastra Bank penalizes financial institutions for non-compliance
The Nepal Rastra Bank has taken disciplinary action against three development banks and two finance companies for failing to comply with regulatory standards.
Muktinath, Narayani, and Salpa development banks, along with Pokhara Finance and Janaki Finance, faced warnings and corrective orders. The central bank stressed the need for financial discipline and announced plans for stricter digital monitoring, risk-based inspections, and stronger penalties for violations.
Sarlahi treasury seeks sugarcane data for subsidy payments
The District Treasury Controller’s Office in Sarlahi has requested sugar mills—Indushankar, Mahalaxmi, and Annapurna—to submit details of sugarcane crushed and farmers involved within a week.
The government plans to distribute subsidies of Rs. 70 per quintal. Although mills ceased operations two months ago, they have agreed to provide the data. Farmers, who usually receive subsidies during Dashain, are pressing for earlier disbursement amid delays.
Minister Bhandari calls for stronger IP protection laws
On the occasion of World Intellectual Property Day, Industry Minister Damodar Bhandari stressed the need to strengthen policies protecting intellectual property and Nepal’s cultural heritage.
He emphasized public awareness, protection of artists’ rights, and enforcement against copyright violations. Secretary Govinda Bahadur Karki highlighted the lack of understanding around IP misuse and recommended updating outdated laws to better protect intellectual and creative works.
Climate change hurting children and youth in Nepal, says minister
Minister for Forests and Environment Ain Bahadur Shahi Thakuri warned that climate change is having a severe impact on children and youth, denying them a clean and safe environment.
Speaking at a joint event organized by the Nepal government and the United Nations, the minister called for greater investment in children and youth-led climate initiatives.
Over 100 young participants from across the country attended the event, part of the Sagarmatha Dialogue Summit.
Fire destroys 10 shops in Sanphebagar
A major fire broke out at Sanphe market in Sanphebagar Municipality-3, Achham, early Saturday morning, destroying 10 shops.
The blaze reportedly started due to an electrical short circuit at Suvechha Hotel and quickly spread, causing damage worth millions of rupees. Local residents, Nepal Police, and the Armed Police Force worked together to bring the fire under control. A full assessment of the damage is still underway.
Comment