KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic and policy landscape shows a mix of market volatility, fiscal reform, and infrastructure-driven development, alongside gradual improvements in external earnings and tourism inflows. The stock market and precious metals segments reflect short-term volatility, with NEPSE posting modest gains amid mixed investor sentiment and gold prices surging sharply, indicating heightened uncertainty in financial assets.
At the same time, the government is actively pushing structural reforms through new legislation on public procurement, money laundering, advertising regulation, and customs modernization, supported by ADB financing and domestic policy measures aimed at improving transparency, efficiency, and global compliance.
Fiscal interventions, including fare reductions, targeted road funding, and welfare-oriented transport and municipal services, signal efforts to ease cost-of-living pressures and improve public service delivery.
Meanwhile, rising tourist arrivals, stronger remittance-linked macro stability, and expanding creative and digital economy cooperation highlight underlying resilience in external and service sectors, even as provincial budget disputes and governance delays underscore continuing political and institutional challenges in implementation and accountability.
NEPSE rises 8.78 points after volatile session
The Nepal Stock Exchange (NEPSE) index gained 8.78 points on Thursday, closing at 2,661.71 after a volatile trading session. Market turnover improved to more than Rs 4.11 billion, indicating stronger investor activity. The rebound follows Wednesday’s sharp 44.59-point rise after several consecutive sessions of losses. The Sensitive Index advanced 3.89 points to 462.47, while the Float Index and Sensitive Float Index edged lower. Of the 359 listed companies traded, 108 posted gains, 152 declined and 13 remained unchanged. Among sectoral indices, commercial banks recorded the strongest gains, while the manufacturing and processing sector registered the biggest loss.
Gold price jumps by Rs 6,200 per tola
Gold prices surged sharply in Nepal’s domestic market on Thursday, rising by Rs 6,200 per tola compared to the previous trading day. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold was traded at Rs 283,500 per tola, up from Rs 277,300 on Wednesday. Silver prices also increased by Rs 180 per tola to Rs 4,450. The rise reflects continued volatility in the precious metals market, with both gold and silver recording significant single-day gains.
House endorses Money Laundering Amendment Bill
The House of Representatives has passed the Prevention of Money Laundering (Third Amendment) Bill, 2026 by a majority vote after detailed deliberations. Responding to lawmakers during the debate, Finance Minister Dr. Swarnim Wagle stressed the importance of strengthening action against corruption and financial crimes. He noted that 13 government agencies currently have authority to investigate money laundering cases and called for greater coordination. He also cautioned against politicising anti-money laundering efforts, warning that doing so could affect Nepal’s efforts to exit the international grey list.
Govt earmarks Rs 2 billion for stalled road projects
The Ministry of Infrastructure Development has allocated Rs 2 billion in the 2026/27 fiscal year to complete unfinished projects under the Constituency Strategic Road Programme. According to the Annual Development Programme, the funding will support incomplete road projects across 39 districts, with allocations based on project needs. Kanchanpur has been allocated Rs 145 million, Morang Rs 135 million, Makawanpur Rs 115 million and Achham Rs 100 million. Individual project funding ranges from Rs 3 million to Rs 143 million to accelerate completion of strategic constituency road networks.
House passes Public Procurement (Second Amendment) Bill
The House of Representatives has endorsed the Public Procurement (Second Amendment) Bill, 2026 by a majority vote. The bill was approved following a clause-by-clause discussion during Thursday’s parliamentary meeting. Minister for Law, Justice and Parliamentary Affairs Sobhita Gautam tabled the proposal on behalf of Prime Minister Balendra Shah. Lawmakers Ashish Gajurel, Basana Thapa, Ain Bahadur Mahar and Arabinda Shah participated in the deliberations. The new legislation replaces an ordinance and is intended to strengthen Nepal’s public procurement framework through updated legal provisions.
National Assembly urges fare cuts and economic relief
National Assembly members have called on the government to introduce measures aimed at easing the economic burden on the public, including revising transport fares, improving disaster preparedness and strengthening road safety. Nepali Congress lawmaker Krishna Bahadur Rokaya urged the government to reduce public transport and airfares in line with falling fuel prices. Padam Bahadur Pariyar highlighted the loss of more than 24,000 lives in road accidents over the past decade and called for greater investment in road safety. Other lawmakers also raised concerns over border issues, displacement and the welfare of Nepalis living abroad.
Government approves National Advertising Policy
The government has approved the National Advertising Policy, 2026, introducing new regulations for digital advertising, social media, influencer marketing and artificial intelligence-generated content. The policy seeks to make Nepal’s advertising industry more transparent, accountable and technology-friendly. It requires online advertisers to disclose sponsored content, regulates AI-generated deepfakes, and strengthens consumer protection against misleading advertisements. The policy also mandates a clear distinction between news and paid content, prohibits discriminatory advertising and aims to enhance the sector’s contribution to the national economy.
Transport department cuts inter-provincial fares by 2 percent
The Department of Transport Management has reduced inter-provincial public transport fares by 2 percent following a decline in fuel prices. The department said the adjustment reflects the drop in diesel prices from Rs 235.83 to Rs 193.83 per litre. The revised fares apply to passenger and freight services operating across provincial boundaries in both the hills and the Tarai. The new rates came into effect on July 2.
ADB approves USD 50 million loan for customs reform
The Asian Development Bank (ADB) has approved a USD 50 million policy-based loan to help modernize Nepal’s customs administration and facilitate trade. The funding, provided under the South Asia Subregional Economic Cooperation Customs and Logistics Reform Programme, will support reforms including risk-based inspections, streamlined customs procedures, improved logistics infrastructure and stronger inter-agency coordination. The ADB expects the programme to lower trade costs, improve border efficiency, attract investment and support private sector-led economic growth in Nepal.
Madhesh Assembly adjourned amid budget dispute
The Madhesh Provincial Assembly has been adjourned indefinitely after opposition lawmakers continued protests demanding amendments to the provincial budget. Opposition parties disrupted proceedings for a second consecutive day, describing the budget as impractical. Finance Minister Yubaraj Bhattarai was unable to present his remarks amid the protests. Janata Samajbadi Party Nepal lawmaker Upendra Mahato accused the ruling coalition of violating federal principles by allocating funds to projects not listed in the Red Book. Speaker Ram Ashish Yadav adjourned the session indefinitely following the disruption.
Stock brokers pledge support for capital market reforms in meeting with SEBON chief
The Stock Broker Association of Nepal met newly appointed Securities Board of Nepal (SEBON) Chair Dr. Gopal Prasad Bhatta in Kathmandu to discuss measures to strengthen and modernize the country’s capital market. Led by Association President Sagar Dhakal, the delegation held talks on improving market transparency, competitiveness, investor confidence, and technology adoption. Chair Bhatta reaffirmed his commitment to developing a more transparent, investor-friendly, and technology-driven capital market in line with government priorities. The association pledged its support for reforms aimed at strengthening institutions and expanding the market.
Nepal records 91,363 foreign tourist arrivals in June 2026
Nepal welcomed 91,363 foreign tourists in June 2026, marking a 19.5 percent increase compared to the same month last year, according to the Nepal Tourism Board (NTB). Arrivals also surpassed pre-pandemic levels, rising 22.01 percent over June 2019. South Asia remained the largest source market with 48,254 visitors, including 41,809 from India. Other Asian countries contributed 16,152 tourists, followed by Europe (13,119), the Americas (6,954), Oceania (3,090), Africa (674), and the Middle East (292). The NTB attributed the growth to improved air connectivity, stronger international promotion, and Nepal’s growing reputation as a safe travel destination.
NRB to conduct nationwide financial customer satisfaction survey
Nepal Rastra Bank (NRB) is preparing to launch a nationwide survey to assess customer satisfaction with financial services across the country. The survey will collect public feedback on service accessibility, quality, transparency, grievance handling, and consumer protection. Using random sampling, the central bank plans to gather 10,405 responses from all 77 districts. NRB said the findings will help strengthen financial consumer protection and improve regulatory policies. Participation will be voluntary, and all information collected will be kept confidential and used solely for statistical analysis.
China-Nepal cultural salon showcases growing creative economy ties
The “Lanting Yaji Cultural Salon: Composing the Friendship between China and Nepal,” held in Kathmandu and linked virtually with Xi’an, China, highlighted expanding cooperation in the cultural and creative sectors between the two countries. More than 200 artists, scholars, and cultural enthusiasts participated in the event, which featured digital calligraphy, folk performances, and interactive art sessions. Organizers said such initiatives strengthen cultural diplomacy while creating new opportunities for collaboration in tourism, arts, cultural production, and the broader creative economy.
TAAN signs MoU with South Korean firm to enhance trekking safety
The Trekking Agencies’ Association of Nepal (TAAN) has signed a memorandum of understanding with South Korea’s IBL Company Limited to introduce an AI-powered digital safety system for trekking and mountaineering. The agreement, signed by TAAN General Secretary Sonam Gyalzen Sherpa and IBL CEO Su Do Kim, aims to deploy the “Aztrek” system for real-time tracking, risk forecasting, and improved rescue operations. A pilot project will be launched on a selected trekking route in coordination with relevant government agencies before potential nationwide expansion.
Blue Bus service for women to begin in Kathmandu Valley from July 17
The government is preparing to launch the first phase of its women-focused Blue Bus service in the Kathmandu Valley on July 17. Eight buses will initially operate free of charge under the government’s 100-point governance reform programme, with plans to expand the service to all seven provinces. According to the Ministry of Infrastructure Development, 25 buses are expected to be in operation within the first 100 days. Initial routes will include Lagankhel-Budhanilkantha, Thankot-Nagdhunga-Airport, and both directions of the Ring Road.
Lalitpur Metropolitan City approves Rs 7.49 billion budget for FY 2026/27
Lalitpur Metropolitan City has endorsed a Rs 7.49 billion budget for the 2026/27 fiscal year following deliberations in the municipal assembly. The budget, presented by Deputy Mayor Manjali Shakya Bajracharya, prioritizes environmental conservation, heritage preservation, education, healthcare, and green development. Mayor Chiri Babu Maharjan also announced that a doctor-staffed ambulance service will begin operating from July 16. Capital expenditure accounts for 56.6 percent of the budget, while 43.4 percent has been allocated for recurrent spending.
Delay in ‘Red Book’ publication fuels Karnali budget dispute
The Karnali Province government’s delay in publishing the ‘Red Book,’ which details ministry-wise budget allocations and project breakdowns, has intensified political tensions. More than two weeks after the provincial budget was presented, opposition parties have accused the government of lacking transparency by withholding detailed expenditure plans. Officials have attributed the delay to printing issues in Kathmandu. Opposition lawmakers, including those from the CPN (UML) and Rastriya Prajatantra Party (RPP), have continued obstructing assembly proceedings, demanding the immediate release of the document.
Former teacher earns success through commercial chili farming
Nabin Kumar Shrestha of Khairahani-10, Chitwan, has built a successful commercial chili farming business after leaving his teaching career. Farming chilies on 8,465.75 square metres of land, he now earns an estimated annual net profit of around Rs 1.2 million. Last year, he sold produce worth Rs 2.3 million while providing employment to 12 local youths. In addition to farming, Shrestha operates an agro centre and a rice and mustard mill, demonstrating that agriculture can offer a profitable alternative to foreign employment.
Raskot delivers social security allowances to beneficiaries’ doorsteps
Raskot Municipality in Kalikot has begun distributing social security allowances directly to beneficiaries at their homes, primarily benefiting senior citizens and persons with disabilities. According to Social Development Section Chief Hukum Shahi, 122 people received the payments, including 45 beneficiaries from Ward No. 6, 25 from Ward No. 7, 18 from Ward No. 8, and 34 from Ward No. 9. The municipality partnered with a commercial bank to make the service more accessible for recipients who face difficulties travelling to collect their allowances.
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