KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest developments present a mixed but broadly constructive picture of the economy and governance. Financial markets rebounded strongly, while lower fuel prices, reduced domestic airfares, and declining precious metal prices could ease inflationary pressures and improve consumer purchasing power.
At the same time, the government’s plans to secure fertilizer supplies, expand power infrastructure, promote waste-to-resource initiatives, and strengthen international cooperation with Saudi Arabia reflect efforts to support long-term economic growth.
However, persistent challenges—including disruptions in fuel distribution, fertilizer shortages during the planting season, delays in local budget approvals, legislative deadlock in Lumbini Province, underutilized regional airports, foreign employment fraud, and traffic management issues—highlight ongoing weaknesses in public administration, service delivery, and institutional coordination.
Overall, the developments suggest cautious economic optimism, but sustained progress will depend on more effective governance, timely policy implementation, and stronger regulatory oversight.
NEPSE snaps seven-session losing streak with a 44.59-point gain
The Nepal Stock Exchange (NEPSE) ended its seven-day decline by climbing 44.59 points, or 1.70%, to settle at 2,652.93. After opening weak, the benchmark index recovered and recorded gains across all major sectors. The Sensitive Index increased by 5.77 points, while the Float Index and Sensitive Float Index also finished higher. Daily turnover stood at Rs 3.85 billion, with more than 9.53 million shares of 362 listed companies changing hands through 56,769 transactions.
Market sentiment remained upbeat as 252 stocks advanced and only 17 declined. All 13 sectoral indices closed in positive territory, with the trading, hydropower, and manufacturing sectors leading the rally. Snow Rivers emerged as the top gainer, rising 14.99%, whereas Corporate Development Bank posted the steepest decline of 5.21%. Laxmi Sunrise Bank recorded the highest trading turnover.
Gold and silver prices fall in the domestic market
Prices of both gold and silver declined in Nepal on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold fell by Rs 600 per tola (11.66 grams) to Rs 277,300, compared with Rs 277,900 on Tuesday. Silver also became cheaper, dropping by Rs 15 per tola to Rs 4,270 from the previous day’s Rs 4,285. The updated prices indicate a modest correction in the domestic precious metals market.
NOC reduces prices of fuel and LPG nationwide
The Nepal Oil Corporation (NOC) has announced fresh reductions in the prices of petrol, diesel, kerosene, aviation fuel, and liquefied petroleum gas (LPG) following a board decision made on Tuesday. Petrol prices have been lowered by Rs 20 per litre, while diesel and kerosene now cost Rs 30 less per litre.
Domestic aviation fuel has become cheaper by Rs 40 per litre, and the price of international aviation fuel in Kathmandu has been reduced by USD 265 per kilolitre. Likewise, LPG cylinders weighing 14.2 kg are now Rs 100 cheaper. Following the revision, petrol is priced at Rs 197 per litre, diesel and kerosene at Rs 195 per litre, and LPG at Rs 2,060 per cylinder.
NOC says fuel supply has normalized
The Nepal Oil Corporation (NOC) has said that recent disruptions in the sale and distribution of petroleum products have been resolved after long queues formed at fuel stations in the Kathmandu Valley and several other cities. NOC spokesperson Manoj Thakur explained that some outlets temporarily experienced shortages because of unusually high demand, but additional fuel dispatched from the Thankot depot has now reached most stations. He said there is currently no shortage of fuel.
Acting on instructions from the Ministry of Industry, Commerce, and Supplies, the NOC also monitored a number of fuel stations. According to Thakur, stations across the Kathmandu Valley received 1.3 million litres each of diesel and petrol from the Thankot depot on Wednesday.
Private fuel stations shut, disrupting supply in Kathmandu Valley
Fuel distribution across the Kathmandu Valley was disrupted after most privately operated petrol pumps suspended sales following the Nepal Oil Corporation’s decision to reduce petroleum prices. Fuel stations run by the Nepal Army, Nepal Police, and Armed Police Force, however, continued operating, resulting in long queues of motorists.
Many private outlets displayed notices stating “No Petrol” and “No Diesel,” explaining that selling fuel purchased at the previous higher prices would result in financial losses after the latest price reduction. The situation has made it difficult for consumers to refuel their vehicles and has also affected public transportation services throughout the Valley.
Nepal to import 210,000 tons of fertilizer for upcoming farming season
The Ministry of Agriculture, Forestry, and Environment plans to import approximately 210,000 metric tons of chemical fertilizer by mid-August to ensure sufficient supplies for paddy cultivation. The procurement includes 30,000 tons of urea from India under a government-to-government arrangement and another 180,000 tons—comprising 60,000 tons of DAP and 120,000 tons of urea—through international tenders involving suppliers from Oman, Qatar, Saudi Arabia, and Vietnam.
Despite ongoing global supply chain challenges, the Ministry aims to distribute a record 600,000 tons of subsidized fertilizer during the next fiscal year. It also intends to introduce an online tracking system to improve distribution and curb black marketing.
CAAN lowers domestic airfares after aviation fuel price cut
The Civil Aviation Authority of Nepal (CAAN) has reduced domestic airfares by lowering the fuel surcharge following the Nepal Oil Corporation’s decision to cut aviation turbine fuel prices by Rs 40 per litre. The revised fare structure came into effect on Wednesday. CAAN said the fuel surcharge has been reduced by as much as Rs 2,335, depending on the route. The biggest reductions apply to longer sectors such as Nepalgunj–Bhadrapur, while fares on routes including Kathmandu–Dhangadhi, Kathmandu–Surkhet, and mountain flights have also decreased. The Authority reminded airlines that ticket prices must remain within the maximum fare ceilings prescribed by CAAN.
Ministry seeks explanation from 23 local governments over budget delays
The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has asked 23 local governments to explain why they failed to present their annual policies, programmes, and budgets for the fiscal year 2026/27 within the legally prescribed deadline. The local bodies have been instructed to submit a detailed report within three days outlining the status of budget preparation, the reasons for the delay, and any assistance they may require.
Referring to existing legal provisions, the Ministry reminded them that budgets must be presented by June 24 and approved by July 16. It said the initiative is intended to promote timely budget approval and ensure compliance with the law.
Tourism Minister cites low passenger demand for limited hill airport operations
Tourism Minister Khadak Raj Paudel has said that inadequate passenger demand is the primary reason many airports in Nepal’s hill districts are not operating regular flights. Addressing lawmakers in the National Assembly, he said that 34 of the country’s 55 airports are currently operational, while the remaining 21 are closed. He added that the government is prepared to deploy technical personnel and equipment to airports that are currently out of service, including Suntharali Airport in Kalikot, once there is consistent passenger demand. Minister Paudel also stated that the Civil Aviation Authority of Nepal (CAAN) has sufficient manpower and technical resources, which are currently being focused on airports with regular operations.
Lumbini Provincial Assembly session postponed as budget row continues
The 11th meeting of the eighth session of the Lumbini Provincial Assembly was deferred on Wednesday, prolonging the ongoing legislative impasse. The meeting, originally scheduled for 1:00 pm, was cancelled shortly before it was due to begin and has been rescheduled for July 5. The decision followed consultations between Speaker Tularam Gharti Magar and leaders of various political parties, while Chief Minister Chet Narayan Acharya formally requested the postponement through the Assembly Secretariat. The deadlock stems from disagreements over budget allocations, with lawmakers from the ruling coalition alleging that the distribution is discriminatory and demanding the resignation of concerned ministers. Internal divisions have repeatedly disrupted Assembly proceedings, including an earlier session that lasted only 16 minutes. As a result, deliberations on the Rs 37.38 billion budget for FY 2026/27 remain on hold.
Nepal Insurance Authority directs surveyors to update KYC details within 10 days
The Nepal Insurance Authority (NIA) has instructed all licensed insurance surveyors to update their Know Your Customer (KYC) information and maintain their licensing records within 10 days. In a public notice issued on Wednesday, the Authority said the requirement is mandatory under the Insurance Act, 2022, and the Insurance Surveyor Guidelines, 2026. Surveyors have been directed to log into the IRMIS system to upload updated personal details and supporting documents. Individual surveyors must also apply to maintain their licences, while institutional surveyors are required to renew their classless licences in accordance with the Insurance Regulations, 2024.
Transport operators call for fare revision following fuel price reduction
The Federation of Nepali Transport Entrepreneurs has urged the government to adjust public transport fares in accordance with the automatic fare adjustment mechanism after the Nepal Oil Corporation reduced fuel prices. The NOC lowered petrol prices by Rs 20 per litre and diesel and kerosene prices by Rs 30 per litre, with the new rates taking effect on Wednesday morning. Federation President Punya Prasad Sitaula said fare revisions should be carried out in a transparent and scientific manner, reflecting both increases and decreases in fuel prices. He added that transport fares should also take into account other operating expenses, including vehicle maintenance, employee wages, insurance, spare parts, and financing costs, rather than relying solely on fuel prices.
NEA to begin testing Marsyangdi Corridor 220 kV transmission line, issues safety advisory
The Nepal Electricity Authority (NEA) will start testing the newly completed Markichowk–Bharatpur section of the Marsyangdi Corridor 220 kV Transmission Line Project from July 7. A 220 kV electrical current will be introduced for trial operation following the completion of the transmission line connecting the New Marsyangdi Substation in Tanahun District with the New Bharatpur Substation in Chitwan District. Supported by funding from the European Investment Bank, the Government of Nepal, and the NEA, the project is expected to reinforce the national power grid. The NEA has advised residents of Gorkha District, Tanahun, and Chitwan to stay away from high-voltage transmission infrastructure during the testing period to ensure public safety.
Traffic fines exceed Rs 2.14 million in a single day in Kathmandu Valley
Traffic police collected more than Rs 2.14 million in penalties after taking action against 2,157 vehicles for traffic rule violations across the Kathmandu Valley within the past 24 hours. According to the Kathmandu Valley Traffic Police Office, the offences included 82 cases of drunk driving, 101 instances of unauthorized ride-sharing, 105 traffic signal violations, and 117 speeding cases. Authorities also issued fines for lane discipline violations, unnecessary use of vehicle horns, driving against one-way traffic, and illegally tinted windows. The remaining 1,538 cases involved various other traffic-related offences.
Nepal and Saudi Arabia seek to deepen parliamentary and economic cooperation
Saudi Arabian Ambassador Fahd bin Mohammed bin Mnikhr paid a courtesy visit to Speaker Dol Prasad Aryal at Singha Durbar to discuss ways to further strengthen bilateral ties between Nepal and Saudi Arabia. During the meeting, Speaker Aryal announced the establishment of the Nepal–Saudi Arabia Parliamentary Friendship Group to enhance collaboration with the Saudi Shura Council. He also highlighted plans to commemorate the 50th anniversary of diplomatic relations between the two countries in March 2027. Expressing appreciation to Saudi Arabia for employing around 385,000 Nepali workers, Aryal encouraged greater Saudi investment in infrastructure, information technology, energy, and tourism. The ambassador reaffirmed Saudi Arabia’s commitment to expanding cooperation across a range of sectors.
Five held over foreign employment scam involving millions of rupees
Police have arrested five people accused of defrauding job seekers by falsely promising overseas employment opportunities. According to the Central Police Newsroom, those arrested are Wangdi Lama of Sindhupalchok, Lalit Bahadur Tamang of Ramechhap, Santoshi Lama of Dhading, Ramdas Maharjan of Chandragiri Municipality–8, and Sarib Giri of Kathmandu Metropolitan City–15.
Investigators allege that the suspects collected substantial sums from victims after claiming they could secure jobs in Azerbaijan, Kosovo, Spain, the United Arab Emirates (UAE), and Canada. The alleged fraud ranged from Rs 50,000 to Rs 4.5 million per victim. Officers from the Kathmandu Valley Crime Investigation Office apprehended the suspects at different locations, and the case has been forwarded for further legal proceedings.
Bailey bridge over Ada Khola enhances connectivity in Ruby Valley
A newly constructed Bailey bridge across the Ada Khola has significantly improved transportation between Wards 2 and 3 of Ruby Valley Rural Municipality in Dhading. Built through the rural municipality’s own contracting process, the bridge replaces the long-standing practice of crossing the river on foot. Local authorities said the bridge will benefit residents of Wards 1 and 2 while strengthening links between the former Tipling and Sertung Village Development Committees. Located along the Dhadingbesi–Sangkosh–Tipling road, the structure is also expected to support tourism by making the area more accessible to both domestic and international visitors.
KIST Teaching Hospital introduces healthcare discounts for SSF and EPF members
KIST Teaching Hospital has launched a discounted healthcare scheme for beneficiaries of the Social Security Fund (SSF) and the Employees’ Provident Fund (EPF). Under the SSF programme, the Fund will pay 80% of eligible outpatient and inpatient treatment costs, while patients will bear the remaining 20%. EPF contributors admitted to the hospital will be eligible for medical assistance of up to Rs 100,000 annually for general illnesses and up to Rs 1 million over their service period for critical illnesses. The scheme covers services across multiple medical specialties. Eligible beneficiaries can receive these benefits by presenting their official SSF or EPF identity cards at the hospital’s help desk.
Madhyabindu generates revenue through organic fertilizer production
Madhyabindu Municipality has begun earning revenue by converting household organic waste into bio-fertilizer at its Sanitation Promotion and Bio-Fertilizer Production Center. Established under the Gandaki Province Chief Minister Innovation Program, the initiative has improved waste management, created a new source of municipal income, and benefited local farmers. Municipal officials said 14,816 households have joined the sanitation campaign. Over the past three years, the project incurred costs of around Rs 21.38 million while generating approximately Rs 30.5 million through fertilizer sales. According to officials, the program now helps meet operating expenses, reduces dependence on chemical fertilizers, and promotes environmental sustainability.
Fertilizer distribution begins in Banke amid supply shortages
Chemical fertilizer distribution has started across all eight local governments in Banke District under a quota-based allocation system. Agriculture Inputs Company Limited in Nepalgunj has assigned distribution quotas to Nepalgunj Sub-Metropolitan City, Kohalpur Municipality, Baijanath Rural Municipality, Khajura Rural Municipality, Janaki Rural Municipality, Duduwa Rural Municipality, Raptisonari Rural Municipality, and Narainapur Rural Municipality. Despite the rollout, farmers have reported acute shortages during the peak paddy transplantation season, with long queues forming at distribution centres. Officials acknowledged that demand continues to far exceed available supplies, as only limited consignments have reached local wards.
Bhojpur farmers receive irrigation support after flood damage
Farmers affected by flash floods in Bokhim, Ward 5 of Bhojpur Municipality, have received irrigation pipes to help address water shortages caused by damaged canals. The ward office distributed pipes worth approximately Rs 350,000 free of cost after heavy rainfall on April 25, 2026, destroyed around 60 to 70 canal intake points. The damage created difficulties for farmers during the paddy transplantation season.
Ward Chairperson Phabindra Pradhan said beneficiaries were selected following field inspections to ensure assistance reached those most in need. Local residents welcomed the support but emphasized the need for permanent irrigation infrastructure capable of withstanding future climate-related disasters.
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