KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Recent developments across Nepal reflect a mix of economic, infrastructure, and policy dynamics with both opportunities and challenges. Domestic commodity markets saw a notable surge in gold and silver prices, signaling heightened investor interest amid ongoing macroeconomic pressures.
Bilateral cooperation is expanding, exemplified by the Nepal-Bangladesh power trade agreement, which aims to boost electricity exports and accelerate hydropower investment, while SEBON delays on 82 IPO approvals highlight regulatory bottlenecks affecting capital formation and hydropower projects. The government’s fiscal adjustments, including a Rs 114.10 billion budget cut and policy moves on stone, sand, and airport operations, indicate a focus on prioritizing key sectors and managing revenue.
Infrastructure and development projects show mixed progress: Bharatpur’s underground electrification is nearing completion, Mugling-Pokhara highway obstructions have been cleared, and Karnali is setting up an Apple Development Board, yet local protests have halted the Rs 9 billion Brahmayani hydropower project, and the Patari Khola bridge contract has been terminated. Social and regulatory challenges persist, from CAAN suspensions of NAC pilots and NAFEA protests over increased medical fees to canal water shortages threatening wheat farming.
Meanwhile, agricultural sectors benefit from improved market linkages, such as Gorkha orange farmers selling directly to traders. Collectively, these developments illustrate Nepal’s ongoing balancing act between economic growth, regulatory reform, infrastructure development, and social accountability.
Gold price rises by Rs 2,200; silver also increases
Gold prices surged by Rs 2,200 per tola on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Hallmarked gold was priced at Rs 250,600 per tola, up from Rs 248,400 on Thursday. Silver prices also increased by Rs 65 per tola, trading at Rs 3,345 compared to Rs 3,280 on Thursday.
Nepal and Bangladesh agree to expand power trade and projects
Following the 7th Joint Steering Committee meeting in Dhaka, Nepal and Bangladesh reached a six-point agreement to enhance electricity trade and cooperation. The deal includes increasing Nepal’s electricity exports to Bangladesh by 20 MW next year, establishing an expert committee to expedite investment, finalizing the Joint Venture Agreement for the 683 MW Sunkoshi-3 Hydropower Project, and jointly lobbying India for a trilateral energy cooperation MoU.
82 companies await IPO approval amid SEBON delays
The number of firms seeking Initial Public Offering (IPO) approval from the Securities Board of Nepal (SEBON) has reached 82, with a combined value of Rs 54.799 billion. The approval process has been delayed due to the absence of a board chairman and a recent two-month employee strike. SEBON acknowledged the backlog but stated that approvals would now move forward, noting that five to seven company files are in the final review stage. The delay has significantly affected hydropower projects, whose permits must be renewed every six months.
Finance Minister pledges to resolve stone and sand export issue
Finance Minister Rameshore Khanal said the government is actively addressing revenue leakage and is optimistic about reopening the export of stone, gravel, and sand. Speaking at a Siddhartha Chamber of Commerce and Industry event, he assured businesses that the government will not harass them and pledged to finalize the export matter within the current government’s tenure. He also emphasized operational improvements at Gautam Buddha International Airport in Bhairahawa.
NRB awards Rs 2.426 billion note printing contract to Chinese company
The Nepal Rastra Bank (NRB) has granted the contract to China Banknote Printing and Minting Corporation to print 430 million new Rs 1,000 banknotes. The contract, which covers design, printing, and supply, was awarded to the Chinese firm for USD 16.9 million (approximately Rs 2.426 billion), as it submitted the lowest bid in the tender called on Bhadra 10.
New government cuts Rs 114.10 billion from current fiscal budget
The government formed after the Gen Z protests has slashed Rs 114.10 billion from the current fiscal year’s budget, mainly affecting smaller projects. The Ministry of Urban Development faced the largest cut of Rs 63 billion, suspending over 2,140 projects, while the Ministry of Physical Infrastructure and Transport lost Rs 19.128 billion, impacting non-national highway projects. Savings will be redirected to priority sectors, including reconstruction of damages from the September 8–9 protests, estimated at Rs 80 billion.
Tea exports from eastern border fall by 37%
Tea exports through Kakarbhitta have dropped by 37 percent during the first four months of the fiscal year compared to last year. The Mechi Customs Office reported 4.68 million kilograms of tea, valued at Rs 1.373 billion, were exported to India, down Rs 831.7 million from the previous fiscal period’s Rs 2.204 billion.
Two NAC pilots grounded for violating flight safety rules
The Civil Aviation Authority of Nepal (CAAN) has suspended two Nepal Airlines Corporation pilots, Captain Vijay Lama and Soni Rana, for unauthorized photo and video recording during flights. Both pilots have been barred from active duty until further notice. This marks the fourth disciplinary action against Captain Lama, who is also a YouTuber.
Indian refusal to release canal water threatens wheat farming
Farmers in Parsa, Bara, and Rautahat districts face risks to wheat production as India informed the Narayani Irrigation Management Office that canal water will not be released this year due to planned maintenance. About 37,400 hectares will be affected. Nepali authorities have urged the Irrigation Department to engage India formally under the Gaddak Agreement, which obligates India to provide 850 cusecs of water during the wheat season starting December 1.
Government terminates contract for Patari Khola bridge in Chitwan
The government has canceled the contract for the 41-meter Patari Khola bridge on the Madi-Thori road in Chitwan after the contractor, Lohani and Brothers, failed to resume work despite a 15-day notice. The Hulaki Highway Directorate will confiscate the performance guarantee, recover remaining project costs, and recommend blacklisting the contractor under the Public Procurement Act.
Nepal launches first road pothole maintenance ambulance in Kathmandu
The Ministry of Energy, Water Resources, and Irrigation, along with the Ministries of Physical Infrastructure and Transport and Urban Development, inaugurated Nepal’s first ‘Road Pothole Maintenance Ambulance’ in Kathmandu. Operated by the Road Division Office, the vehicle is available 24/7 to repair potholes and damaged roads. A mobile app has also been launched to allow citizens to report potholes instantly.
Demand for effective operation of Gautam Buddha International Airport
The Siddhartha Network Rupandehi submitted a memorandum to Home Minister Om Prakash Aryal urging proper operation of Gautam Buddha International Airport (GBIA) in Bhairahawa. Key demands include regular international flights, functional immigration services, a modern labor approval office, a GAMCA and health testing center, and flight facilities for migrant workers. The network also called for immediate implementation of commitments made by the Federal Cabinet.
NAFEA protests hike in foreign employment medical fee
The Nepal Association of Foreign Employment Agencies (NAFEA) has opposed the government’s increase in migrant worker health examination fees to Rs 9,500. NAFEA called the move “unimaginable” and financially burdensome, citing a lack of ministerial oversight. The association demands that the government ensure validity of Nepali medical tests abroad and prevent manpower agencies from being held responsible for workers declared medically unfit.
Karnali Province to form apple development board
The Karnali Province government is preparing to establish an Apple Development Board to enhance apple production and marketing, particularly in Jumla, Humla, Mugu, Dolpa, and Kalikot. Minister of Land Management, Agriculture, and Cooperatives Binod Kumar Shah stated that a draft bill will be presented during the provincial assembly’s winter session, beginning January 15, 2026. The proposed headquarters will be in Jumla, a major apple-producing region and centrally located for all districts.
Drug entrepreneurs demand repeal of impractical provision in Drug Act
Drug entrepreneurs protested at the Department of Drug Administration (DDA) on Friday, calling for the repeal of a rigid provision in Section 11 of the Drug Act, 1978. Led by the Nepal Pharmaceutical Entrepreneurs Association, they opposed the rule that imposes a 100 percent fine for late license renewal and automatically revokes licenses after 30 days. The protesters urged the government to implement a mechanism that considers administrative or technical delays and provides flexibility, emphasizing the need for amendments that protect businesses while ensuring public health-friendly policies.
80 percent of Bharatpur underground electrification completed
The underground electrification project in Bharatpur Metropolitan City is 80 percent complete, with the aim to finish by the end of January 2026. The Nepal Electricity Authority’s Pokhara-Bharatpur Distribution System Strengthening Project is laying cables along the city’s six-lane road and bypass. Project Chief Engineer Ananda Subedi reported that electricity is already flowing through underground cables in 40 percent of the area on a trial basis. The Rs 1.40 billion project is funded by the Asian Development Bank and involves moving 33 KVA, 11 KVA, and 400-volt lines underground.
Locals halt Rs 9 billion Brahmayani hydropower project
Residents of Jugal Rural Municipality-2 and 3 in Sindhupalchok have stopped work at the 45 MW Brahmayani Hydropower Project since Wednesday, locking the construction site indefinitely. Led by the Dipu-Tega-Tembathan Brahmayani Khola Hydropower Project Victims Struggle Committee, the protest demands action on 19 points, including stopping illegal crusher operations, compensating land encroachment, prioritizing local employment, and guaranteeing 10 percent free shares. The Rs 9 billion project was scheduled for completion within three years.
Hetauda road division orders halt to fuel supply at two petrol pumps
The Hetauda Road Division Office has requested the Nepal Oil Corporation (NOC) to stop supplying fuel to two petrol pumps on public land along the national highway: Balaram Das Petrol Pump in Hetauda-10 and Om Oil in Ward 4. Division Chief Guru Prasad Adhikari said this action is part of preparations to expand the Mahendra and Tribhuvan highways in the main market area. The office has given a 15-day deadline, ending December 5, for removal of all permanent and temporary structures within the 75-foot road boundary.
Gorkha orange farmers earn more as traders buy directly
Orange farmers in Gorkha are seeing higher income this season as traders from Kathmandu and Chitwan purchase directly from orchards. Favorable weather improved fruit quality compared to last year, when crops were affected by disease. Farmers in Gorkha Municipality, Shahid Lakhan Rural Municipality, Palungtar Municipality, and Siranchowk Rural Municipality reportedly earn between Rs 1 million and Rs 3 million without the costs and hassle of transporting produce to markets.
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