KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mix of encouraging momentum and persistent structural strain, with capital markets rallying for a fourth straight session amid improving investor confidence, while rising gold prices reflect broader global uncertainties.
The government is pushing investment-oriented reforms—from startup incubation centers and SEZ concessions to major hydropower and MCC-backed transmission line projects—signaling a continued focus on infrastructure and enterprise development. Yet fiscal pressures remain evident as public debt climbs to 44.69 percent of GDP and provincial projects, especially in Bagmati and Karnali, suffer from policy delays and declining agricultural output.
Social protection measures, including Madhesh’s unemployment allowance and expanded electrification in Baitadi, attempt to address local economic vulnerabilities, while regulatory tightening—from advertisement billing to medical test fees and new visa requirements—highlights a governance push following the Gen Z protests.
Meanwhile, trade and industry receive boosts through rising chhurpi exports, tourism-focused festivals, and dividend announcements from major financial institutions, reflecting pockets of resilience within a still-uneven economic recovery.
NEPSE climbs for fourth straight day as turnover hits Rs 6.69 billion
The Nepal Stock Exchange (NEPSE) index rose by 9.61 points on Wednesday, marking its fourth consecutive day of gains and closing at 2,665 points. Market turnover surged to Rs 6.69 billion. Share prices increased for at least 142 companies, with banking, hydropower, and microfinance stocks among the top performers. Four firms—including Sagar Distillery and Swastik Microfinance—hit the 10 percent positive circuit. Analysts attribute the upbeat market sentiment to recent policy measures that have strengthened investor confidence.
Gold price rises by Rs 900 per tola
Gold prices increased by Rs 900 per tola on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The new rate was set at Rs 248,800 per tola, up from Rs 247,900 the previous day. Silver prices also rose, climbing by Rs 20 per tola to reach Rs 3,220.
Government endorses new policy to support startups
The Ministry of Industry, Commerce, and Supplies has approved the “Business Promotion Service Operation and Management Procedure, 2025,” paving the way for new business incubation centers. These centers—run in partnership with academic institutions and the private sector—will provide infrastructure, mentoring, and advisory services to innovative entrepreneurs. The Industrial Business Development Institute will offer between Rs 500,000 and Rs 1.5 million to selected partner organizations. Each center will support startups for up to two years to help them become sustainable enterprises.
MCC begins construction of 18 km transmission line in Nawalparasi
Work on an electricity transmission line under the Millennium Challenge Corporation (MCC) compact formally began Wednesday in Sunwal, Nawalparasi (Bardaghat Susta Paschim). Finance Minister Rameshore Prasad Khanal and U.S. Ambassador Dean R. Thompson jointly inaugurated the 18-kilometer line from Suryabasti to the Nepal–India border. The project includes 53 towers and is expected to finish in 21 months, while the associated substation will take 39 months. Officials emphasized the project’s role in bolstering Nepal’s green energy supply, economic growth, and regional power trade prospects.
Nepal’s public debt climbs to Rs 2.729 trillion
Nepal’s total public debt reached Rs 2.729 trillion in the first four months of fiscal year 2025/26, equivalent to 44.69 percent of GDP. The government borrowed Rs 138.75 billion during this period, while repaying Rs 127.61 billion. After adjusting for exchange rate effects, the net rise in debt amounted to Rs 55.36 billion. Finance Minister Rameshore Khanal defended the borrowing, saying it was necessary given rising pressure on recurrent spending and was not undertaken carelessly.
Government tightens rules on advertisement payments
The government has imposed stricter rules on payments for official advertisements following reports that agencies were underpaying media outlets while overbilling government offices. The Prime Minister’s Office now requires advertising agencies to submit the original invoice issued by the media house before receiving payment from any public body. The move aims to curb financial irregularities and comes after repeated complaints and a letter from the Commission for the Investigation of Abuse of Authority (CIAA) pointing out persistent malpractice.
Madhesh to provide Rs 2,000 unemployment allowance
The Madhesh Province Government plans to offer a monthly unemployment stipend of Rs 2,000 to jobless residents holding a bachelor’s degree, Chief Minister Saroj Kumar Yadav announced Wednesday. The government is also preparing relief for farmers whose crops were damaged by drought and heavy rainfall, providing Rs 1,500 per katha to those who registered losses. In addition, the province will introduce the “Madhesh Ratna” award to honor martyrs of the Madhesh movement.
Bagmati’s major projects stalled amid policy and funding delays
Several multi-year projects in Bagmati Province remain unfinished or non-operational well into the third year of the province’s second term. The Ministry of Agriculture and Livestock Development has been particularly affected. The cold storage facility—budgeted at Rs 1.173 billion—has already spent Rs 763.5 million but remains incomplete. The Hetauda Milk Powder Plant and Provincial Agricultural Wholesale Market have been constructed but cannot begin operations due to the absence of required operational policies, raising concerns about resource management.
Karnali’s farm output declines despite major GDP share
Karnali Province’s agricultural sector—though contributing 31.50 percent to the provincial GDP—has seen falling production and shrinking cultivation area, according to Nepal Rastra Bank’s Surkhet office. In fiscal year 2024/25, total cultivated land for major crops dropped by 6.08 percent, with paddy, maize, and wheat all recording declines. Overall agricultural output fell by 5.01 percent. The NRB projects the province’s economic growth rate at 4.74 percent for the fiscal year.
Rising chhurpi exports bring relief to DDC
Koshi Province’s growing demand for chhurpi has eased longstanding inventory pressure at the Dairy Development Corporation (DDC). Manaram Himalayan Handicraft has begun purchasing 25,000 kg of chhena each month from the DDC’s Biratnagar project. This reduces the need to convert unsold milk into costly powder, cutting operational losses. The company exports the product to the United States and recently received the “CIP” award for exporting agricultural goods worth over Rs 5 billion. The export boom has strengthened local economies and effectively resolved the milk glut in eastern Nepal.
Entrepreneurs mark 11th Industry Day in Biratnagar
Bhim Kumari Rai of Kerabari Dalmot Bhujiya and Omkar Thapa of Ojaswi Agriculture Farm were honored during the 11th Industry Day celebrations in Biratnagar. Organized by the Federation of Nepal Cottage and Small Industries, the event featured a rally and an award ceremony recognizing outstanding contributions to local industry. Participants pledged to deepen collaboration to strengthen entrepreneurship and domestic production.
Nepal Chamber seeks free visa and direct flights to Sri Lanka
The Nepal Chamber of Commerce has requested direct weekly flights between Lumbini and Sri Lanka and a free visa arrangement for Nepali travelers, presenting the proposal to Sri Lankan Ambassador Ruwanthi Delpitiya. The Chamber hopes the move will boost tourism and trade, which currently stands at only USD 2.5 million annually. Nepal exports just USD 700,000 worth of goods to Sri Lanka, compared to USD 1.4 million in imports. Ambassador Delpitiya expressed support for enhancing trade relations and invited Nepal to join Sri Lanka’s international trade fair next June.
UAE introduces mandatory police report for Nepali visa applicants
The United Arab Emirates has made police clearance certificates mandatory for Nepalis applying for visit and labor visas, following security concerns raised after the Gen Z protest. The UAE remains the largest destination for Nepali workers, accounting for 32 percent of labor permits in FY 2024/25. Recruitment agencies report a noticeable decline in new UAE-bound labor permits since the requirement was implemented.
Government vehicles to be insured following Gen Z protest damage
After widespread destruction of government vehicles during the Gen Z protests on September 8 and 9, the government has begun insuring its fleet under a comprehensive non-life insurance scheme. The Ministry of Finance insured 20 four-wheelers on November 21 through Nepali insurance companies. Officials say this will help manage resources more efficiently, with future repair or replacement costs covered by insurance rather than direct state spending.
Simara Airport invites bids to lease land for agriculture
The Simara Civil Aviation Office has opened a tender to lease 28,156.98 square meters of land within the airport premises for agricultural use for five years starting December 16. The site lies on the west side of the runway. Tall crops such as maize and sugarcane, or any crops that attract birds and wildlife, are strictly prohibited to maintain runway safety. Individuals and organizations may submit bids for the lease.
Government cuts SEZ land lease rate by 75 percent
The Cabinet has slashed the Special Economic Zone (SEZ) land lease rate from Rs 20 to Rs 5 per square meter—a reduction of 75 percent. Industrialists, especially those in the Simara SEZ, welcomed the decision, saying it will attract more investors. Combined with the existing 50 percent rent discount for the first three years, the new rate is expected to create a more supportive environment for export-focused industries.
Roads Board Nepal introduces QR-based road toll collection
Roads Board Nepal has begun collecting road tolls directly through an electronic QR code payment system, ending the practice of outsourcing toll collection to private contractors. The system has already launched on the Bhairahawa–Bhumahi route and will soon expand to other major corridors such as Narayangadh–Muglin and Birgunj–Pathlaiya. Transport entrepreneurs, led by Bijay Bahadur Swar, agreed to the new system but demanded the toll expenses be incorporated into the vehicle fare structure. The Board stated that toll revenue will fund road maintenance, benefiting transport users in the long term.
Medical test fee for foreign employment increased
The Ministry of Labor, Employment, and Social Security issued a circular on Wednesday implementing a new medical examination fee of Rs 9,500 for foreign employment, effective immediately. The fee covers 34 diagnostic tests. Although the rate had been approved by a ministerial decision last year, implementation was delayed due to resistance from medical operators. The new fixed fee replaces the previous range of Rs 3,500 to Rs 6,500. The circular comes at a time when the position of labor minister remains vacant.
Jumla revenue office misses Rs 130 million target
The Internal Revenue Office in Jumla—responsible for Jumla, Mugu, and Kalikot—collected only Rs 86.8 million in the first four months of the current fiscal year, well below its Rs 130 million target. Chief Tax Officer Prabhat Ghimire attributed the shortfall to the Gen Z protests and taxpayers deliberately hiding income. Income tax was the largest contributor, generating Rs 64.4 million. The office aims to collect Rs 640 million this fiscal year and plans to increase field monitoring and local-level tax awareness campaigns to improve performance.
Bandipur festival targets 800,000 tourists for 2025
The 6th Bandipur Festival began today and will run from November 26 to December 7, with the ambition of attracting 800,000 visitors during Visit Year 2025. Hosted by the Tanahun Industry and Commerce Bandipur Market Unit, the event intends to extend tourist footfall to all six wards of the rural municipality. Attractions include Bandipur’s historic architecture, temples, cultural exhibits, and adventure activities such as paragliding. The newly launched cable car service has further improved accessibility. Exhibitions feature agricultural goods, handicrafts, and local heritage.
Baitadi brings electricity to 7,000 more households
Electricity has been extended to an additional 7,000 households across 19 wards in five rural municipalities of Baitadi district, raising the total number of electrified homes to 27,091. With 49,428 households in the district overall, about 22,000 remain without access. New 33 kV substations in Bindraban and Silleghada are nearing completion, and authorities aim to achieve full electrification within two years. Local governments are coordinating efforts to expand the grid into underserved communities.
Arun III stakeholders agree on resolving local issues
Stakeholders of the Arun III Hydroelectric Project met in Khandbari on Tuesday and reached an agreement to jointly address remaining local concerns. Participants included the Investment Board, project developer, local governments, and district administration. They decided to compile a list of programs already implemented under the benefit-sharing scheme and establish a coordination committee to oversee and evaluate them. The committee will also work with local authorities to identify and recommend future benefit-sharing initiatives to the Investment Board.
Myagdi sees 3.1 percent rise in paddy production
Paddy output in Myagdi district increased by 3.1 percent this year due to favorable weather and minimal pest damage. The Agricultural Development Office reported that production rose from 13,663 metric tons last year to 14,087 metric tons this season. Average yield also increased from 3.59 to 3.70 metric tons per hectare. The Gandaki Provincial Government has allocated Rs 1.5 million this fiscal year for irrigation, infrastructure, and mechanization support to further boost output.
Investment model finalized for Budhigandaki and Upper Arun projects
The Ministry of Energy, Water Resources, and Irrigation has approved the investment framework for the 1,200 MW Budhigandaki and 1,063 MW Upper Arun hydropower projects, collectively valued at around Rs 600 billion. Both projects will be entirely financed domestically, with 30 percent equity and 70 percent loans. Budhigandaki’s financing plan includes a Rs 30 billion energy bond and Rs 104 billion in commercial bank loans. Upper Arun will rely on a banking consortium and public investment, including contributions from Nepali citizens abroad, after World Bank funding uncertainties.
Nepal SBI Bank announces 9 percent dividend proposal
Nepal SBI Bank has proposed a 9 percent dividend from last fiscal year’s profits, including a 4 percent bonus share and a 5 percent cash dividend (inclusive of taxes). The decision was made during the bank’s 537th Board meeting on November 24. The distribution will proceed following approval from the Nepal Rastra Bank and endorsement at the bank’s 32nd Annual General Meeting.
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