KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
As Nepal enters the final days of the fiscal year, the country’s economic landscape reflects a combination of persistent structural challenges and forward-looking policy initiatives. Weak capital budget execution, continued losses in the stock market and declining precious metal prices point to subdued investor sentiment and longstanding concerns over public spending efficiency.
At the same time, the government is accelerating reforms aimed at improving infrastructure, digital governance, energy reliability and connectivity, while emphasizing economic diplomacy, production-based cooperatives and tourism promotion as key drivers of long-term growth.
Monsoon-related disruptions, including transport restrictions, slower paddy transplantation and disaster preparedness measures, underscore the economy’s vulnerability to climate risks.
Meanwhile, stronger seasonal consumption, expanding digital services and investments in regional infrastructure indicate continued efforts to strengthen productivity, improve public service delivery and build a more resilient and competitive economy.
NEPSE extends losses for second straight day despite higher turnover
The Nepal Stock Exchange (NEPSE) declined for a second consecutive trading session on Tuesday, falling 24.63 points, or 0.93 percent, to close at 2,608.33 after Monday’s 16.54-point drop. Despite the decline, daily turnover increased to Rs 3.25 billion from Rs 2.67 billion a day earlier. Of the 365 listed companies, 235 posted losses while only 35 advanced. All 13 sectoral indices ended lower, with the Trading and Hydropower sectors recording the steepest declines. Sino-Refraction/Snow Rivers was the day’s top gainer, while Taksar Pikhu Khola Hydropower suffered the biggest loss.
Gold and silver prices decline in domestic market
Gold and silver prices fell in Nepal’s domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Associations. The price of gold dropped by Rs 4,500 per tola to Rs 277,900, while silver declined by Rs 25 per tola to Rs 4,285. The latest revision reflects a downward trend in precious metal prices in the domestic market.
Foreign minister urges economic focus in Nepal’s diplomacy
Foreign Minister Shisir Khanal has said Nepal’s foreign policy should play a greater role in driving economic transformation through trade, investment, tourism, technology and improved market access. Speaking at the Prof Yadunath Khanal Lecture Series in Kathmandu, he said shifting global power dynamics, supply chains and emerging technologies, including artificial intelligence, present both opportunities and challenges for Nepal. He stressed the need to pursue economic diplomacy while remaining committed to non-alignment, peaceful coexistence and the national interest. Khanal also highlighted the importance of good governance, diaspora engagement and leveraging Nepal’s geographic position for connectivity and development.
Capital spending remains slow as fiscal year-end approaches
Nepal’s capital budget execution has remained sluggish in the current fiscal year, with only 35.12 percent, or Rs 143.23 billion, of the allocated Rs 407.88 billion spent as of June 29. Under the Financial Procedures and Fiscal Accountability Act, payment cheques cannot be issued after July 9, leaving the government with just eight working days to clear pending bills. To achieve its revised annual spending target of 61.63 percent, the government must spend an average of Rs 13.52 billion per day. Meeting the original target would require daily spending of Rs 33.08 billion, underscoring mounting pressure on year-end fiscal management.
Nepal Telecom launches 4G service at Murma Top
Nepal Telecom has expanded its 4G mobile and data service to Murma Top, a popular viewpoint overlooking Rara Lake in Mugu district. The service, launched on June 29, is expected to improve connectivity for tourists, local residents and businesses while enhancing communication along trekking routes in Rara National Park. Officials said the new tower will also strengthen network coverage in remote parts of Karnali and Sudurpashchim provinces.
Speaker Aryal calls for timely completion of Nagdhunga Tunnel
Speaker of the House of Representatives Dol Prasad Aryal has stressed the economic importance of the Nagdhunga Tunnel Project, saying it will improve trade, transport efficiency and connectivity in the Kathmandu Valley. During an inspection visit, he discussed compensation, rehabilitation and livelihood concerns with affected residents and assured them of coordination with the concerned authorities. Aryal also reviewed construction progress with project officials and urged all agencies to expedite the work, saying timely completion would reduce transport costs and enhance economic productivity.
Kathmandu Valley traffic police collect over Rs 2 million in fines
The Kathmandu Valley Traffic Police Office fined 1,592 vehicles over the past 24 hours for violating traffic rules, collecting more than Rs 2 million in penalties. Police said 73 motorists were booked for drink-driving, 87 for ride-sharing violations, 74 for running red lights, 78 for speeding and 47 for violating lane discipline. Additional fines were issued for black-tinted windows, breaches of no-horn zones and driving on one-way roads. Authorities said enforcement has been intensified to improve road safety across the Valley.
Communications minister instructs Nepal Telecom to improve digital services
Minister for Communications and Information Technology Dr Bikram Timilsina has directed Nepal Telecom to enhance the speed, transparency and quality of its digital services. During an inspection of the Sundhara Telecom Office and the Business Support System under the IT Directorate, he reviewed billing, customer management and service delivery processes. He also interacted with customers using SIM, eSIM and internet services. The minister instructed the company to eliminate repeated document submissions and strengthen data security. Nepal Telecom officials said they are moving towards a fully digital, one-stop online service system.
Government moves against absentee civil servants
The Ministry of Federal Affairs and General Administration has given four civil servants residing abroad on temporary or permanent residency permits and Diversity Visas 15 days to report, citing concerns over efficiency and public service delivery. The ministry said civil service rules prohibit foreign residency and require employees to return after approved leave. Legal proceedings have been initiated under the Civil Service Act to terminate their employment and bar future government service. Minister Pratibha Rawal said stricter monitoring would improve workforce productivity and ensure better use of public resources.
Asar 15 boosts nationwide yogurt sales
Nepal consumed an estimated 7.5 million litres of yogurt on Monday as people celebrated Asar 15 with the traditional dahi-chiura meal, generating around Rs 1 billion in sales. The Dairy Development Corporation (DDC) and private dairies reported demand nearly three times higher than on ordinary days. DDC alone sold 100,000 litres, earning Rs 14 million, while private dairies accounted for most of the market. Industry officials attributed the surge to cultural traditions and increased summer demand, particularly in the Tarai, saying the festival also provides an important boost to dairy farmers and rural livelihoods.
Government deploys 1,000 personnel to ensure reliable power supply
The government has mobilized around 1,000 personnel to maintain electricity supply and respond to monsoon-related disruptions across the country. The Ministry of Energy, Water Resources and Irrigation said technical teams and equipment have been placed on standby to strengthen the distribution network and address outages. Minister Biraj Bhakta Shrestha said staff have been assigned to monitor the grid and respond through No-Light emergency centres. The ministry is also replacing ageing transformers, installing higher-capacity units and upgrading breaker systems, while warning of legal action against negligence.
New companies can now download PAN certificates online
Businesses registering with the Office of the Company Registrar can now download their Permanent Account Number (PAN) certificate online. The digital service was introduced after the office integrated its information system with the Inland Revenue Department. The feature has been incorporated into the Company Administration Management Information System (CAMIS), allowing newly registered companies to access and print their PAN certificates directly from the online dashboard. Officials said the service will eliminate unnecessary visits to tax offices and streamline the business registration process.
Bagmati to promote production-based cooperatives
Bagmati Province Chief Minister Indra Bahadur Baniya has said the provincial government will prioritize and incentivize cooperatives engaged in production and labour-based economic activities. Speaking at a programme in Bharatpur Metropolitan City-29, he announced production-linked subsidies for indigenous crops and spices, including ginger, garlic, turmeric and onion. He also unveiled the “One Local Level, One Indigenous Product, One Collection Centre” policy to strengthen processing, branding and market access. Baniya praised a women-led cooperative that procured and branded 65 tonnes of turmeric, describing it as a model for strengthening the cooperative sector through value-added rural enterprises.
Night travel suspended on Kanti Highway due to heavy rain risk
The Makawanpur District Administration Office has banned nighttime travel on the Hetauda–Kathmandu Kanti Highway from 5:00 pm to 5:00 am on June 30 and July 1 following forecasts of heavy to extremely heavy rainfall. The decision comes after warnings from the National Disaster Risk Reduction and Management Authority over possible landslides, flash floods, debris flows and rising river levels. Authorities have also restricted high-risk activities in rivers and streams and urged the public to avoid unnecessary travel in vulnerable areas while emergency services remain on standby.
Chitwan launches trial night jeep safari
Chitwan has begun a trial Night Jeep Safari in the Barandabhar Biological Corridor in an effort to promote community-based ecotourism. The 30-kilometre route has been developed jointly by three community forests in coordination with provincial and local tourism authorities. Officials say it is Nepal’s first night jeep safari and expect it to attract more visitors, extend tourist stays and strengthen the local tourism economy. The corridor is home to wildlife including rhinos and tigers.
Gen Z youths demand reliable electricity supply in Triyuga
A group of Gen Z youths has called on authorities to ensure uninterrupted electricity supply in Triyuga Municipality of Udayapur district. Led by Surendra Thapa, the delegation submitted a memorandum to the Nepal Electricity Authority distribution centre, saying frequent power outages have disrupted daily life and affected banks, government offices and other public services. NEA officials attributed the outages to repeated windstorms and said technical teams are working to stabilize the power supply.
Shaligram sculpture boosts religious tourism in Mustang
A 22-foot Shaligram Sheela sculpture carved on the banks of the Kaligandaki River in Jomsom is emerging as a new religious tourism attraction in Mustang. Created during a 15-day workshop organized by Gharapjhong Rural Municipality in partnership with the Nepal Academy of Fine Arts and the Integrated Service Office Mustang, the site features religious and cultural sculptures created by more than 36 artists. Local officials believe the attraction will promote religious tourism, support local businesses and create new economic opportunities for surrounding communities.
Bird flu outbreak leads to culling of over 40,000 poultry in Kavre
More than 40,000 chickens and ducks have been culled in Kavrepalanchok following outbreaks of avian influenza at commercial poultry farms. The District Livestock Office in Dhulikhel said 40,729 birds were destroyed at affected farms in Banepa and Panauti municipalities to contain the disease. Officials said delayed laboratory results and improper disposal of infected birds may have contributed to the spread. Authorities have intensified surveillance, inspections and biosecurity measures while urging farmers to maintain strict sanitation standards.
Mechanization replaces oxen in Palpa’s rice fields
The traditional use of oxen for ploughing rice fields is rapidly disappearing in Palpa as farmers increasingly adopt tractors and other mechanized equipment. Farmers say labour shortages and easier access to machinery have accelerated the shift away from animal-powered farming. Older residents recalled communal paddy planting traditions, including ropai songs, that have gradually faded. While mechanization has improved productivity, experts warn it is also contributing to the loss of traditional farming practices and rural cultural heritage.
Tulsipur distributes 500 electric stoves
Tulsipur Sub-metropolitan City has distributed 500 electric iron stoves across its 19 wards under a cost-sharing programme involving the Alternative Energy Promotion Centre (AEPC), the Green Climate Fund (GCF), the municipality and local consumers. The municipality covers 15 percent of the cost, consumers contribute 5 percent, while AEPC and GCF provide the remaining funding. Officials said the initiative aims to promote clean energy and reduce dependence on firewood and dung cakes.
Delayed monsoon slows paddy plantation in Kanchanpur
Paddy transplantation in Kanchanpur has slowed significantly because of below-average rainfall, with only 45 percent of cultivable land planted so far, compared with more than 65 percent during the same period last year. The District Agriculture Knowledge Centre said limited irrigation coverage, drying fields, falling groundwater levels and insufficient pumping capacity have all affected plantation. Authorities said major irrigation projects are being expanded to improve long-term agricultural resilience.
Raskot stockpiles food ahead of monsoon
Raskot Municipality in Kalikot has begun stockpiling food grains to prevent shortages during the monsoon season. Mayor Dharma Raj Shahi said the municipality is closely monitoring food stocks, storage facilities and distribution systems in coordination with the Food Management and Trading Company Limited. Officials said the move is intended to ensure uninterrupted food supplies, as floods and landslides frequently disrupt transport during the rainy season.
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