KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments reflect a mixed but transitional phase in Nepal’s economic governance, where reform-oriented policies are advancing alongside persistent structural bottlenecks. On one hand, the government is pushing forward with institutional modernization—through measures like mandatory e-billing, digital land services, revised procurement laws, and early minimum support price guidelines—indicating a stronger emphasis on transparency, predictability, and market efficiency.
At the same time, rising fuel costs and precious metal prices highlight ongoing inflationary pressures that could strain household finances. While increased industry registrations and agricultural subsidies suggest growing economic activity and state support for production, challenges such as delayed infrastructure spending, stalled projects, and procurement controversies—particularly in large-scale initiatives like Nepal Telecom—underscore weaknesses in implementation capacity and governance. Overall, Nepal appears to be navigating a reform-driven but uneven economic trajectory, where policy intent is strong but execution remains a critical constraint.
President issues Anti-Money Laundering ordinance
President Ram Chandra Paudel has authenticated the Anti-Money Laundering (Third Amendment) Ordinance, 2083 BS. According to the Office of the President’s Spokesperson Ritesh Kumar Shakya, the ordinance was issued on the recommendation of the Council of Ministers. The government has submitted eight different ordinances to the President’s Office. Earlier, ordinances related to cooperatives and public procurement had already been issued.
Finance Minister Wagle meets US envoy Sergio Gor
Finance Minister Swarnim Wagle held a meeting with US President’s Special Envoy for South and Central Asia, Sergio Gor, on Friday. The discussion focused on Nepal–US bilateral relations, particularly economic cooperation, development support, and investment opportunities. The envoy, representing Donald Trump, is currently in Nepal on an official visit after arriving in Kathmandu on Thursday.
Gold and silver prices increase in domestic market
According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices have risen to Rs 296,100 per tola, up by Rs 3,400 from the previous day. Silver prices also increased by Rs 135, reaching Rs 4,945 per tola. The rise reflects ongoing fluctuations in the domestic precious metals market.
NOC increases cooking gas price
The Nepal Oil Corporation has raised the price of liquefied petroleum gas (LPG), with the new rates coming into effect from midnight on April 30. A full cylinder now costs Rs 2,160, up from Rs 2,010, while a half cylinder is priced at Rs 1,080, compared to the previous Rs 1,005. The adjustment follows revised procurement rates from Indian Oil Corporation and is likely to put additional pressure on household expenses nationwide.
New guidelines introduce early minimum support price for major crops
The Ministry of Agriculture and Livestock Development has issued the Minimum Support Price and Purchase Price Determination Guidelines, 2026. Under the new framework, farmers will be informed in advance about the Minimum Support Price (MSP) for key crops such as paddy, maize, wheat, and millet before planting begins. For sugarcane, surveys will be completed by mid-September, with final pricing decisions expected by mid-November. The policy, introduced under the Right to Food and Food Sovereignty Act, 2018, aims to reduce market uncertainty and promote agricultural investment.
Finance Ministry finalizes budget drafting committee
The Ministry of Finance has completed the formation of a committee tasked with preparing the national budget for fiscal year 2026/27. With new members appointed following staff changes, the committee has accelerated its work after concluding ministerial consultations. The budget must be presented in Parliament by May 29, and preparations are underway to meet the constitutional deadline despite earlier delays.
Mandatory e-billing introduced for large businesses by Inland Revenue Department
The Inland Revenue Department has made electronic billing compulsory for large taxpayers as part of the government’s reform agenda. Businesses are required to adopt the system within one month. The move is expected to improve transparency, curb tax evasion, and enable real-time monitoring of financial transactions, contributing to a more efficient tax administration system.
New procedures approved for subsidized fertilizer distribution
The Ministry of Agriculture and Livestock Development has endorsed an amended procedure for distributing subsidized fertilizers. Approved on April 29, the revised system is intended to ensure timely and reliable access for farmers by streamlining procurement and distribution processes. The reform also aims to prevent shortages during peak farming seasons and ensure that subsidies reach genuine beneficiaries.
Three major initiatives announced on International Workers’ Day
Marking the 137th International Workers’ Day, the Ministry of Labor, Employment, and Social Security unveiled three key programs. These include a five-year occupational safety plan, weekly social media engagement by labor attachés to support migrant workers, and concessional land loans at 6 percent interest for Social Security Fund contributors. The initiatives aim to strengthen labor rights and worker welfare.
Online system made mandatory for land mortgage services
The Department of Land Management and Archive has mandated that all land mortgage and release procedures be conducted digitally through banks and financial institutions. The system will be compulsory for selected institutions from May 4 and for all by May 15. The initiative is expected to enhance transparency, reduce delays, and align with broader efforts to digitize public services.
Money laundering probe targets micro-insurance founders
The Department of Money Laundering Investigation has requested detailed financial records from founders of Himalayan Reinsurance and several micro-insurance firms. The inquiry focuses on potential irregularities in share purchases during company formation, particularly whether shares were acquired at premiums in violation of financial regulations. The investigation has widened following political developments, with a submission deadline set for May 16.
Public procurement act amended to streamline contracts
The government has introduced a second amendment to the Public Procurement Act, 2006, to simplify contracting processes and reduce delays. The reform includes shorter bidding timelines, the launch of a government e-marketplace for quick procurement, and stricter requirements for low-bid contractors, including additional performance guarantees. The changes are aimed at improving efficiency and curbing corruption in public projects.
Nepal Telecom’s Rs 5 billion billing system tender faces delays
The tender process for a new real-time billing system at Nepal Telecom, estimated at Rs 5 billion, remains uncertain after it was scrapped in January 2026. The cancellation followed concerns over restrictive conditions that may have favored certain vendors, raising conflict-of-interest questions. Employees warn that continued delays could drive up costs and cause repeated technical failures. The current system, operated by AsiaInfo since 2011, is outdated and has already failed twice in early 2026, posing risks to modernization and competitiveness.
Road Division Jumla reports low capital spending
The Road Division Office in Jumla has utilized just 26 percent of its allocated Rs 743.6 million budget in the first nine months of FY 2025/26. With 22 road projects underway across Jumla, Kalikot, and Mugu, progress has been hindered by rising fuel prices and increasing construction costs. Work on key projects, including sections of the Nagma–Gamgadhi road, remains slow due to these challenges.
Lumbini Province sees rise in new industry registrations
Lumbini Province recorded the registration of 5,406 new businesses in the first nine months of the fiscal year, including 2,506 industrial units and 2,900 commercial firms. These ventures brought in investment worth Rs 17.307 billion, with Rupandehi District and Banke District leading registrations. During the same period, 2,069 firms shut down, while over 13,000 renewed licenses, reflecting both churn and growing entrepreneurial activity.
Funding shortage stalls Jomsom covered hall project
Construction of a multi-purpose covered hall in Jomsom has been halted for two years due to budget constraints. Launched under the “One Local Unit, One Sports Ground” initiative, the project has achieved only 40 percent progress despite spending Rs 2 million out of the estimated Rs 6.5 million cost. Inconsistent funding from federal, provincial, and local levels has delayed completion, even as the facility remains crucial for indoor sports in the high-altitude region.
Subsidies boost spring paddy farming in Tanahun
Farmers in Tanahun District have expanded early spring paddy cultivation to over 193 hectares, supported by subsidies of up to 85 percent. The program, implemented in Vyas Municipality and Myagde Rural Municipality, covers seeds and irrigation infrastructure. The initiative has encouraged farmers to revive spring paddy farming, contributing to food security and better land use.
Road Division Hetauda begins survey for Tribhuvan Highway DPR
The Road Division in Hetauda has started measurement work for a section of the Tribhuvan Highway from Gandak Chowk to Miteri Bridge. The survey follows a demolition drive targeting illegal structures within the designated right-of-way. Authorities are preparing a Detailed Project Report (DPR) to support systematic road expansion and urban management.
Dhorpatan Municipality distributes mechanical plows to farmers
Dhorpatan Municipality has provided mechanical plows to 48 farmers under a 50 percent subsidy scheme aimed at modernizing agriculture. The Rs 2.4 million initiative targets farmers growing crops such as potatoes, beans, and vegetables. The move is expected to improve efficiency and reduce manual labor in the region’s challenging terrain.
Comment