KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and policy landscape is marked by both volatility and reform momentum, as reflected in the latest developments. The NEPSE index saw a slight dip despite increased trading activity, suggesting investor caution amid mixed market signals.
On the policy front, the government reversed its decision to withdraw the Water Resources Bill and scrapped the unpopular ‘Take-and-Pay’ power purchase provision, prompting IPPAN to halt its protest—indicating responsiveness to stakeholder pressure.
Meanwhile, energy diplomacy gained traction with Minister Khadka advocating regional collaboration at the SCO meeting. Technological integration remains a national priority, with commitments to modernize customs systems and promote tech-driven education and governance at the provincial level.
Despite these advances, challenges persist, including ineffective implementation of digital traffic fines, shrinking helicopter tourism revenues, and reduced gold imports due to global price surges.
The reopening of Phaplu Airport and infrastructure upgrades—like the Chobhar dry port linkage and Pokhara’s new aviation fuel depot—underscore efforts to boost connectivity and logistics.
Cultural and agricultural promotion through events like the Nepal Mango Fest 2025 adds a softer dimension to economic diversification.
NEPSE index dips by 4.45 points despite rise in trading volume
The NEPSE index fell by 4.45 points on Thursday, closing at 2,595.74. Despite the decline, trading volume saw an uptick, with turnover rising from NPR 5.94 billion on Wednesday to NPR 7.78 billion—a gain of NPR 1.84 billion. A total of 196.5 million shares from 306 companies changed hands. Of these, 93 companies saw price gains while 155 recorded losses. Green Development Bank posted the highest daily gain, with its stock rising 9.18 percent.
Energy minister Khadka calls for stronger regional ties at SCO meeting
Energy, Water Resources, and Irrigation Minister Deepak Khadka addressed the fifth energy ministers’ meeting of Shanghai Cooperation Organization (SCO) member states in Ningbo, China. In his remarks, Khadka highlighted the importance of building a regional framework to boost investment and energy trade among SCO countries, citing the region’s population, resources, and untapped potential. He also urged stronger cooperation and effective partnerships.
Govt reverses decision to withdraw water resources bill
The government has decided not to proceed with its earlier plan to withdraw the Water Resources Bill. Though the Cabinet had agreed to pull the bill on June 16, the decision was never officially announced. The reversal comes after pressure from Nepali Congress leaders and parliamentary committee members, who criticized the Prime Minister’s understanding of the matter.
IPPAN halts protest after ‘take-and-pay’ PPA provision scrapped
The Independent Power Producers’ Association, Nepal (IPPAN), has ended its protest following the government’s decision to eliminate the ‘Take-and-Pay’ provision in power purchase agreements. The change was announced by Finance Minister Bishnu Poudel during his June 24 budget address in the House of Representatives. IPPAN formally suspended its protest during a press conference on Thursday.
Foreign workers send Rs 8.46 billion abroad from Nepal
While Nepal is known for receiving remittances, it is also a source of outbound remittances. According to Nepal Rastra Bank, foreign nationals working in Nepal have remitted Rs 8.46 billion to their home countries between mid-July and mid-May of this fiscal year. Although modest compared to inward remittances, the amount reflects significant employment of foreign workers within Nepal.
Finance Minister pledges tech-driven customs reforms
Finance Minister Bishnu Prasad Paudel has committed to modernizing Nepal’s customs system using advanced technology to enhance transparency and curb revenue leakage. Speaking during a legislative discussion on amending customs laws, Paudel said that while officials’ integrity is hard to measure legally, smart systems can effectively combat smuggling and tax evasion.
Chinese goods now transported directly to Chobhar dry port
Goods from China entering through the northern border points of Tatopani and Rasuwa will now be directly transported to Chobhar dry port in Kathmandu. China Railway Company has started implementing the new transport route. Currently, 10 containers arrive daily at Chobhar, part of a broader effort to streamline import-export logistics.
2,300 government websites to be deactivated in July
Around 2,300 government websites will go offline starting mid-July. Websites not migrated to the new Integrated Website Management System (GIWMS) under the Department of Information Technology by the end of Asar will be shut down. The government has made this migration mandatory to streamline digital governance.
E-traffic ticket system falling short of expectations
The government’s E-Chalan system, introduced to simplify traffic fine payments via the Nagarik app, has not delivered expected results. Despite its launch across 70 districts, the system suffers from poor implementation and technical glitches, leading to low revenue collection.
JICA to rebuild section of BP highway damaged by rainfall
The Japan International Cooperation Agency (JICA) has agreed to reconstruct a section of the BP Highway damaged by heavy rainfall in late September 2024. Transport Secretary Keshav Sharma confirmed JICA’s commitment to restoring the critical route.
Fuel depot completed at Pokhara international airport
A 3.6-million-liter aviation fuel depot has been completed at Pokhara International Airport. Built with an investment of Rs 680 million by Nepal Oil Corporation, the facility includes three tanks with a capacity of 1.2 million liters each. The depot comes over two years after the airport’s operations began.
Gold imports plunge 50% due to soaring prices
Nepal’s gold imports have declined by 50 percent amid surging global prices. Between mid-July and mid-June, the country imported 1,389 kg of gold worth Rs 17.12 billion, compared to 2,651 kg worth Rs 23.65 billion in the same period last fiscal year, according to the Department of Customs.
Nepal enforces Euro-6 vehicle emission standard
The government has officially enforced the Euro-6 emission standard with the rollout of the Nepal Vehicle Emission Standard 2025. Under the new rules, Euro-5 standards will apply to two- and three-wheelers, while four-wheeled vehicles must comply with Euro-6 emission regulations. The Ministry of Forests and Environment published the updated standards in the Nepal Gazette.
Phaplu Airport reopens after 17-day weather closure
Flights have resumed at Phaplu Airport in Solukhumbu after being suspended for 17 days due to persistent bad weather. Operations had been halted since June 9, according to the Civil Aviation Authority of Nepal (CAAN) office in Phaplu. Senior CAAN official Ayush Thapa confirmed that a Nepal Airlines Twin Otter successfully completed a round-trip flight between Kathmandu and Phaplu on Wednesday, marking the airport’s reopening.
Provinces prioritize tech-driven education in new budget proposals
Provincial governments have proposed a series of tech-friendly reforms for the education sector in the upcoming fiscal year 2025/26. Initiatives include digital classrooms, e-libraries, STEM education, science centers, dashboards, and exhibitions. In addition, provinces plan to promote digital governance through digital records, Chief Minister Action Rooms, online evaluations, QR-code services, mobile app-based grievance systems, and improved digital health information systems.
Kailash-Mansarovar pilgrimage resumes as 341 Indian tourists reach Humla
A total of 341 Indian pilgrims have arrived in Humla district for the Kailash-Mansarovar Yatra, following the resumption of the pilgrimage route after a COVID-19-induced hiatus. The influx of pilgrims through Simikot has boosted local tourism activity, according to hotel and tourism entrepreneur Min Bahadur Tamang.
Cement board factory begins production in Rautahat
A new factory producing cement boards for construction has commenced operations in Gaur, Rautahat. The Everest Fiber Board Cement Industry was formally inaugurated by Industry, Commerce and Supplies Minister Damodar Bhandari at a ceremony in Kathmandu. The facility will manufacture fiber cement boards for use in housing and building projects.
Nepal Mango Fest 2025 to promote mango industry and culture
The Nepal Mango Fest 2025, a three-day event dedicated to promoting mangoes from the Terai-Madhes region, will kick off on Asar 13 (June 27) at 1 PM. The festival aims to boost the market and value chain of domestic mango production while highlighting mango culture and culinary traditions.
Prabhu Helicopter sees 60% business decline in 2024
Prabhu Helicopter Pvt. Ltd. has reported a 60% drop in business revenue in 2024 compared to the previous year. The company’s earnings fell from Rs 417 million in 2023 to Rs 260 million this year. In 2022, the firm had recorded Rs 228 million in total business.
MetLife Nepal launches campaign to revive lapsed policies
MetLife Nepal has introduced a revival campaign targeting lapsed insurance policies. Customers whose policies have lapsed within the past five years are eligible for a 100% late fee waiver, while those inactive for over five years will receive a 60% waiver. The initiative aims to help customers regain financial protection.
Citizens Bank launches online loan service against fixed deposits
Citizens Bank International has introduced a digital lending feature that enables customers to take loans against their fixed deposits via the bank’s mobile app. Loan amounts range from Rs 5,000 to Rs 200,000, with customers able to borrow up to 90% or more of their deposit value.
Gold price rises by Rs 300 per tola
The price of gold in Nepal increased by Rs 300 per tola on Thursday, with hallmark gold now trading at Rs 192,300 per tola, up from Rs 192,000 on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also rose, climbing Rs 35 to reach Rs 2,175 per tola.
Comment