Economic Digest: Nepal’s Business News in a Snap

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 mix of investment optimism and structural challenges, as highlighted by recent developments. The NEPSE index posted a minor decline with falling trading volumes, indicating cautious investor sentiment, while gold prices remained stable, showing market steadiness amid broader economic adjustments.

On the international front, the U.S. reaffirmed its support for MCC projects, and the World Bank doubled its interest rate on Nepal’s loans, potentially tightening fiscal room. Infrastructure and industry updates suggest a push for development—such as the Rs 300 billion fertilizer plant in Nawalparasi, the Rs 20 billion buffalo meat factory with Chinese investment, and new private-sector-led tourism policies—while CG Brewery and Indian brand Bikaji’s ventures signal growing foreign and domestic industrial collaboration.

Yet, persistent administrative inefficiencies remain, with Bhairahawa Customs again missing revenue targets and technical setbacks at NOC’s Amlekhgunj pipeline. Meanwhile, water scarcity in Madhesh prompted urgent borehole plans, and overcrowding at Tribhuvan International Airport underscored pressing infrastructure limitations.

Regulatory shifts, such as tighter Wi-Fi hotspot rules and audit-backed scrutiny of oil sector commissions, show a government increasingly responsive but still grappling with long-standing systemic gaps.

NEPSE ends slightly lower, trading volume shrinks to Rs 19.36 billion

The Nepal Stock Exchange (NEPSE) dipped 2.07 points on Monday, extending Sunday’s drop of 18.44 points. Even though the index climbed about 12 points mid-session, it ultimately closed at 2,962.13 after final adjustments. Turnover fell to Rs 19.36 billion from Rs 26.57 billion the previous day. Among the traded firms, 156 saw prices decline while 94 recorded gains. Leading gains were development banks (+3.04 %) and trade (+3.24 %) sectors; banking, hydropower, insurance, and tourism sectors declined.

Gold price remains stable in domestic market on Monday

The price of gold in Nepal remained unchanged on Monday, with hallmark gold trading at Rs 193,600 per tola — the same as Sunday — according to the Federation of Nepal Gold and Silver Dealers Association. Meanwhile, silver prices saw a slight uptick.

US to continue Millennium Challenge Corporation projects in Nepal

The United States has confirmed it will resume projects under the MCC Compact in Nepal, as officially notified by Nepal’s Ministry of Finance. The U.S. Embassy had earlier signaled this decision. Aid to Nepal, paused under a 90day review initiated by President Trump, will now continue.

Nepal Airlines Corporation receives award in India

Nepal Airlines Corporation was honored with the “Best Air Service Provider on the Nepal route” award at the 10th International Tourism Conclave and Travel Awards (ITCTA) 2025 in New Delhi on July 26. The award was presented by ICM Group official Ajay Gupta and Indian government representative Nasir Aslam Bani, according to spokesperson Subash Dangui.

Tribhuvan International Airport overwhelmed by passenger volume

Tribhuvan International Airport is struggling to manage passenger traffic while maintaining safe and smooth operations. Although its capacity stands at 8 million annually, it handled over 4.65 million passengers in the first six months of 2025. In that period, 4,655,078 passengers flew through TIA, virtually equal to the 4,662,425 recorded in the same period in 2024.

World Bank doubles interest rate on loans to Nepal to 1.5 % starting July

The World Bank has raised its lending rate to Nepal from 0.75 % to 1.5 %, effective this July. Dhaniram Sharma, head of the Foreign Aid Coordination Division at the Finance Ministry, announced this during an orientation session on foreign aid organized by NAFIJ and the Finance Ministry.

Government introduces new tourism policy after 17 years

Seventeen years after its 2008 policy, the government has released the Tourism Policy 2025 through the Ministry of Culture, Tourism, and Civil Aviation. Pending implementation, it opens avenues for the private sector to own and operate airports, encouraging private investment in national and international tourism infrastructure.

Hydropower projects generate Rs 380.3 million in royalties in fiscal year 2024/25

Hydropower projects yielded Rs 380.3 million in royalties during FY 2024/25, as reported by the Department of Electricity Development. Per the Electricity Act, licensees must pay Rs 100 per installed kilowatt annually for 15 years post-commissioning, plus 2% of the average electricity sale price.

Suggestions to reduce excessive commissions and expenses given to oil business operators

Audit committees have flagged excessive commissions, rents, and expenses paid by Nepal Oil Corporation to gas and petroleum vendors. A 2022 task force led by former NPC Vice-Chair Bishwa Nath Paudel recommended cost reductions. Instead of following that guidance, management opted to raise transport fares, allegedly serving vested interests.

NEA Executive Director Shakya visits Chitwan to resolve distribution center issue

To address issues at the Chanauli distribution center in Chitwan, NEA Executive Director Hitendra Dev Shakya visited the site early this morning. With the technical team preparing to restore electricity supply, Shakya came personally to assess the problem, offer solutions quickly, and motivate staff. His visit counters rumors that the Authority had initiated loadshedding in Chitwan.

Rs 4.9 billion revenue collected from house and land transactions in fiscal year 2024/25

Revenue from property transactions in FY 2024/25 reached Rs 4.9067 billion, registering a 17% increase (about Rs 703 million more) compared to the previous fiscal year. Monthly average collection rose from Rs 350 million to approximately Rs 408.72 million.

Nepal Telecommunications Authority restricts random WiFi hotspot operations

The Nepal Telecommunications Authority has ordered that only mobile service providers may offer WiFi hotspot services. Other ISPs are now restricted to limited time and area operation per legal provision; those failing to comply face action.

Karnali Province builds 246.59 kilometers of blacktopped roads since government formation

Karnali Province’s Physical Infrastructure and Urban Development Ministry reports 246.59 km of blacktopped road constructed to date: 173.75 km in FY 2023/24 and 72.84 km in FY 2024/25.

Government plans 500 deep boreholes to address drought in Madhesh Province

To combat drought conditions in Madhesh Province, the government has announced plans to drill 500 deep boreholes to provide drinking water and irrigation. Previous low-cost water supply plans were hindered by high electricity costs. The new electricity rates have been set at Rs 2.25 per unit for irrigation and Rs 4.20 per unit for drinking water.

Proposed Nepal fertilizer project in Nawalparasi estimated to cost nearly Rs 300 billion

The upcoming Nepal Fertilizer Project, a chemical fertilizer plant planned for Bardghat in West Nawalparasi, is projected to require close to Rs 300 billion in investment. A detailed project report (DPR) prepared by Germany’s DIAG Industries reveals the plant will need 300 megawatts of electricity to function. The DPR, developed over two years, is now under review by the Investment Board Nepal.

Bhairahawa Customs Office fails to meet revenue target in previous fiscal year

The Bhairahawa Customs Office fell short of its revenue collection goal for FY 2024/25. The Department of Customs had set a target of Rs 109.33 billion, but the office reported it could not achieve this. It has consistently missed revenue targets since 2021.

Rs 20 billion foreign investment approved for buffalo meat factory in Sindhuli

The Department of Industry has approved Rs 20 billion in foreign direct investment for a thermal-processed buffalo meat factory in Sindhuli. The facility will be developed in partnership with China. Dr. Nabin Sharma, chair of Himalayan Food International Pvt. Ltd., confirmed that the approval was granted last Thursday.

Technical issues in Nepal Oil Corporation’s pipeline infrastructure at Amlekhgunj

Technical faults have been identified in the second-phase pipeline system at Nepal Oil Corporation’s Amlekhgunj facility. Even before its official launch, problems surfaced in the loading bay and TLF shed area linked to storage tanks. Issues such as pipeline bending, alignment shifts, and vibrations during fuel loading have been observed.

Indian brand Bikaji Foods to produce premium snacks in Nepal

Bikaji Foods, a well-known Indian snack manufacturer, will begin producing its signature products in Nepal through a 50-50 joint venture with Chaudhary Group. The partnership will see the local production of Bhujia, Namkeen, Papad, and packaged sweets.

Nivix Pharmaceuticals signs agreement with Muktinath Capital for share issuance guarantee

Nivix Pharmaceuticals has entered into an agreement with Muktinath Capital for managing the guarantee of its upcoming public share issuance. The deal was signed by Nivix Managing Director Indra Baniya and Muktinath Capital CEO Kavindra Dhwaj Joshi, in the presence of several company officials.

CG Brewery Nepal reports Rs 2.21 billion business in nine months of last fiscal year

CG Brewery Nepal, a subsidiary of Chaudhary Group, recorded business worth Rs 2.21 billion during the first nine months of the past fiscal year. This reflects a 16% increase compared to the same period the year before. Based on this trend, annual turnover is projected to reach Rs 2.95 billion.