KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a dynamic blend of cautious recovery, policy continuity, and structural challenges. The NEPSE index registered a modest gain, signaling tentative investor confidence amid mixed market trends, while gold and silver prices dipped slightly, pointing to subdued demand.
Government activity remains pronounced, with key fiscal measures under preparation, including the continuation of subsidized loan schemes and steps toward passing a long-stalled electricity bill. However, systemic inefficiencies persist, such as delays in project submissions and controversy surrounding high-level appointments like that of the central bank governor.
On the industrial front, the shutdown of major cement factories and mounting losses in state-backed ventures like Namaste Pay highlight ongoing struggles in public sector management. Meanwhile, positive developments include a surge in exports via Nepalgunj Customs, strong tourism-led revenue in Chitwan, and growing foreign interest in Nepal’s electric vehicle sector.
Additionally, initiatives like the upcoming Waste Hackathon reflect a push toward innovation and sustainability. Despite these forward-looking efforts, administrative lapses—such as unresolved VAT noncompliance and market inefficiencies in fractional share trading—suggest the need for deeper structural reforms to align economic growth with institutional resilience.
NEPSE index rises by 0.85 points amid mixed market movement
The Nepal Stock Exchange (NEPSE) index inched up by 0.85 points on Tuesday, ending the day at 2,675.62. This minor recovery followed a drop of 2.97 points on Monday, when it had settled at 2,677. The Sensitive Index also gained 0.87 points, while the Float Index declined marginally by 0.1 points.
Meanwhile, the Sensitive Float Index increased by 0.30 points. Tuesday’s session recorded the exchange of roughly 143 million shares across 318 listed firms, totaling around NPR 6.53 billion in turnover—slightly below Monday’s NPR 7.58 billion.
Gold price dips slightly in Nepali market
The price of gold in Nepal fell slightly on Tuesday to NPR 190,900 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Associations. The rate for 10 grams stood at NPR 163,665. On Monday, gold was priced slightly higher at NPR 191,100 per tola. Silver also declined, dropping to NPR 2,995 per tola from Monday’s NPR 3,005.
Finance Minister updates president on upcoming fiscal plan
Finance Minister Bishnu Paudel met with President Ram Chandra Paudel to brief him on the forthcoming budget for fiscal year 2082/83. As stipulated in the constitution, the budget will be presented on Jestha 15 (May 29). The President’s secretariat at Shital Niwas confirmed the finance minister’s visit on Tuesday.
NEA pays NPR 80 million to India for power imports
The Nepal Electricity Authority (NEA) has transferred NPR 80 million to India for electricity purchased through the Nepal-India Power Exchange Committee (PEC). However, the agreed unit rate determined at the 16th PEC meeting has not yet received approval from NEA’s board or the regulatory commission. According to NEA insiders, a further NPR 190 million payment is currently pending.
Government to retain subsidized loan scheme in new budget
The government plans to continue its subsidized loan program in the 2082/83 fiscal budget, though with some changes. The initiative, originally launched to boost local production, job creation, and entrepreneurship, has faced issues with outstanding interest payments. Despite being inactive in practice for the past two years, the program—first introduced in 2075 BS—will remain part of government policy.
Electricity Bill expected to pass within a month
Minister for Energy, Water Resources, and Irrigation Deepak Khadka announced that the long-pending electricity bill is likely to be passed in Parliament within a month. Speaking at the ‘IPPAN Developers Meet 2025’ held in Kathmandu, he admitted the bill had been repeatedly introduced and withdrawn, but stated that the ministry is now working intensively to finalize its passage, even under budget limitations.
Supreme Court case filed challenging governor’s appointment
A writ petition has been submitted to the Supreme Court challenging the appointment of Nepal Rastra Bank Governor Biswo Nath Poudel. Lawyers Bishal Thapa, Prativa Upreti, and Anantaraj Luintel lodged the petition on Tuesday, asserting that Poudel’s appointment violated the Nepal Rastra Bank Act 2058, as he did not meet the required qualifications. The petition claims that the recommendation, appointment, and oath-taking processes were not legally valid.
Project proposals continue despite missed deadline
Despite only three days remaining before the fiscal year 2082/83 budget is announced, new projects are still being submitted to the National Project Bank. According to rules issued on Chaitra 1, 2081, projects were to be submitted by the end of Chaitra. However, submissions are ongoing even a month and a half past the deadline. The National Planning Commission states that over 9,000 projects have been registered so far.
Nepal positioned to draw major foreign investment in EV sector
Nepal is emerging as an attractive destination for foreign investment in the electric vehicle (EV) sector. With EV usage now reaching between 65 to 70 percent, interest from international investors has grown. As part of the global shift toward a green economy, Nepal aims to ensure that by 2035, 95 percent of privately sold vehicles will be electric two-wheelers and four-wheelers.
Over 95,000 taxpayers suspended for failing to file VAT returns
The Inland Revenue Department has issued warning urging businesses to avoid dealings with more than 95,000 taxpayers who have not filed their Value Added Tax (VAT) returns. A notice published Sunday named 95,349 suspended taxpayers, while another on Monday reiterated the advisory. A previous list released on Baisakh 11 had identified 102,232 non-compliant filers.
Birgunj Dry Port customs office collects NPR 41.18 billion in revenue
The Birgunj Dry Port Customs Office in Sirsiya has amassed NPR 41.18 billion in revenue during the first ten months of the current fiscal year, meeting 68.58 percent of its annual target. Chief Customs Officer Dhan Bahadur Baruwal said this figure represents an NPR 1.14 billion increase from the same period last fiscal year—a growth rate of 2.85 percent.
Hetauda and Udayapur cement industries shut down again
Just a month after resuming operations following a six-month halt, Hetauda Cement Industry Limited and Udayapur Cement Industry Limited have once again ceased operations.
Hetauda, established 48 years ago, and Udayapur, 37 years ago, have both been impacted by a Cabinet decision on Baisakh 15, 2082 BS, which greenlit their privatization. Though the official explanation cites machinery issues and a lack of coal, insiders suggest the closures align with the government’s privatization strategy.
Difficulties in buying and selling 1–9 shares in Nepal’s market
Trading between 1 and 9 shares in Nepal’s stock market has become inconvenient. Investors holding such small quantities in their demat accounts are compelled to buy more shares just to sell them as full lots. This leads to higher costs, as investors face multiple broker commissions and demat charges. These fractional holdings typically arise from bonus distributions, rights offerings, or incomplete past transactions.
Gandaki Province leads in economic growth among seven provinces
According to a recent report by the National Statistics Office, Gandaki Province is projected to have the highest economic growth among Nepal’s seven provinces this fiscal year. Its growth rate is expected to reach 4.61 percent at basic prices and 5.51 percent at consumer prices. Bagmati Province ranks second with a 5.18 percent growth rate based on basic pricing.
Lumbini to be developed as a major Buddhist and spiritual hub
Chief Minister of Lumbini Province, Chet Narayan Acharya, emphasized the region’s development as a key destination for Buddhist and spiritual tourism. Speaking at the conclusion of the 3rd International Buddhist Travel Fair 2082 BS in Bhairahawa, he expressed optimism that the event boosted not only Lumbini’s image but also that of Nepal in the spiritual travel sector.
The fair was organized by NATTA with support from the Ministry of Culture, Tourism, and Civil Aviation, Nepal Tourism Board, and Lumbini Development Trust.
Namaste Pay suffers NPR 165 million in financial losses
Namaste Pay, operated by Nepal Digital Payment Company—a Nepal Telecom subsidiary—has reported a loss of NPR 165 million. Despite being set up to compete in the digital payment space, the platform has struggled in a saturated market. Government investment in the initiative has so far delivered underwhelming results.
Tourism main income source for Ichchhakamana RM in Chitwan
In Chitwan district’s sole rural municipality, Ichchhakamana, tourism has become the dominant revenue source. Located in the district’s northern hills, the area also benefits from natural resources like sand, stones, and gravel. However, earnings from these materials have become uncertain due to unresolved disputes.
Chairperson Dan Bahadur Gurung stated that tourism remains a more dependable stream of income amid ongoing difficulties in managing riverbed extraction contracts.
Pure Energy shares listed on NEPSE for public trading
Pure Energy Development Company Ltd. listed 8 million ordinary shares on NEPSE on Monday. With a face and paid-up value of NPR 100 per share, trading is set to begin Tuesday (Jestha 14). The company previously offered 1,195,200 shares to the public from Chaitra 28 to Baisakh 11, with allotment completed on Baisakh 11. Nabil Investment Banking served as the issue manager for the offering.
Indian gamblers visit eastern Nepal casinos via Kakarbhitta
Each day, over a hundred Indian tourists enter Nepal through the Kakarbhitta border primarily to gamble. Their top choice is the Vegas Casino at the Mechi Crown Hotel, a five-star establishment. Nearby, smaller casinos like Riyaz and Dhaka also attract visitors. Some travelers head 20 kilometers west to the Kingsbury Hotel, which hosts the Seven Harshish Casino.
Nepal to host first ‘Waste Hackathon’ with Ncell’s support
Nepal is set to organize its first-ever Waste Hackathon on World Environment Day 2082 BS under the theme “Bin There, Hacked That.” Supported by Ncell, the event will take place on Jestha 22 at Budhanilkantha Municipality Assembly Hall. The initiative aims to bring together tech professionals, startups, and environmental advocates to create innovative waste management solutions.
Nepalgunj Customs Office sees 30% export growth in 10 months
Nepalgunj Customs Office reported a 30.29 percent rise in exports over the first 10 months of fiscal year 2081/82 BS. Export value reached NPR 2.58 billion, compared to NPR 1.98 billion during the same period last year—an increase of roughly NPR 600 million. Imports through the same office also climbed over 8 percent, rising from NPR 58.38 billion last year to NPR 63.28 billion this year.
Comment