KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest market data shows mixed signals in Nepal’s financial sector, with the NEPSE index slipping by 8.30 points to 2,653.40 despite relatively strong turnover of over Rs 4.41 billion, indicating active trading even amid profit-taking pressure. Parallel volatility is seen in commodity markets, where gold prices surged sharply by Rs 7,200 per tola, reflecting strong global cues and safe-haven demand, while silver also posted gains.
On the policy front, the government continues to project an image of early economic momentum within its first 100 days, citing improved revenue, regulatory reforms, and investor confidence, though these claims are being tested alongside legislative activity in the National Assembly, which has advanced six key economic and governance-related bills.
At the same time, macroeconomic stability efforts are visible through measures such as tighter fuel market regulation, increased visa fees for EPS workers, and continued donor engagement for reconstruction funding. However, structural pressures remain evident across sectors, including temporary suspension of Melamchi water supply due to monsoon damage, rising bird flu cases requiring large-scale culling and biosecurity enforcement, and ongoing fiscal and implementation challenges highlighted by institutions and opposition voices.
Sectoral developments in energy, tourism, agriculture exports, and infrastructure—such as the Jagdulla hydropower tunnel breakthrough, record Mustang arrivals, and rising cinnamon exports—signal underlying economic activity, but these gains remain uneven and highly sensitive to environmental risks, policy execution, and external market conditions.
NEPSE falls 8.30 points as turnover exceeds Rs 4.41 billion
The Nepal Stock Exchange (Nepse) index declined by 8.30 points on Friday, settling at 2,653.40 points. The Sensitive Index, which tracks the performance of large-cap companies, also slipped by 2.65 points to 459.81 points. During the session, 8.58 million shares of 345 listed companies were traded, generating a total turnover of over Rs 4.41 billion. Agricultural Development Bank’s agriculture bond, KBL debenture, NRN Infrastructure, Best Finance and Central Finance led in turnover.
On the gainers’ side, Sanigadh Hydro, Snow River Limited, Kalanga Hydro, Nepal Finance and Khanikhola Hydro posted notable increases, while Upper Lohore Khola Hydropower, Dhaulagiri Laghubitta, Crest Micro Life Insurance, Samudayik Laghubitta and Universal Power recorded the sharpest losses.
Gold price jumps by Rs 7,200 per tola, silver also rises
Gold prices surged sharply in the domestic market on Friday, the final trading day of the week. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold rose by Rs 7,200 per tola to reach Rs 290,700, up from Rs 283,500 a day earlier. Silver also increased by Rs 165 per tola, reaching Rs 4,615. In the international market, gold was trading at around USD 4,179 per ounce, while silver stood at approximately USD 62 per ounce, according to global market reports.
Govt highlights early economic progress within 100 days
The government has claimed early signs of economic improvement within its first 100 days, pointing to better revenue performance, improved investor sentiment and rising confidence among development partners. Officials said reforms such as the removal of outdated laws, tax administration improvements and the closure of unnecessary offices have supported efficiency gains. Finance Minister Swarnim Wagle described the approach as a “mission mode” strategy focused on digital monitoring, results-based governance and structural reforms aimed at boosting production, investment and jobs. The government has also set an ambitious target of expanding Nepal’s economy to USD 100 billion within the next 5–7 years.
National Assembly tables Finance, public debt and key economic bills
The National Assembly on Friday tabled six bills received from the House of Representatives, covering finance, public borrowing, procurement and anti-money laundering measures. National Assembly Secretary Tul Bahadur Kandel presented the Finance Bill, 2083, the Bill to Raise National Debt, 2083, the Public Procurement (Second Amendment) Bill, 2083, and the Prevention of Money Laundering (Third Amendment) Bill, 2083. The Upper House also tabled the Cooperative (First Amendment) Bill, 2083, and a bill to amend several Nepal Acts related to the Institute of Health Sciences for further deliberation.
Melamchi water supply to Kathmandu Valley halted after flooding
Water supply from the Melamchi Drinking Water Project has been temporarily suspended after flooding increased turbidity at the source, making treatment difficult. Kathmandu Upatyaka Khanepani Limited (KUKL) spokesperson Bir Bahadur Chand said heavy rainfall has made the water too muddy for processing at the Sundarijal treatment plant. Supply will resume once water quality improves, although continued rainfall may delay restoration.
Government to penalise fuel stations over artificial shortages
The government has introduced stricter measures against petroleum dealers who shut fuel stations without justification or create artificial shortages. Nepal Oil Corporation has amended its Petroleum Products Seller Bylaws, 2075, enabling fines of Rs 300,000 to Rs 1,000,000 and suspension of fuel supply for 5 to 15 days depending on violations. The move follows disruptions after dealers reportedly halted fuel lifting amid anticipated price changes. Authorities said the decision aims to ensure uninterrupted supply and prevent market manipulation.
Visa fee for Nepali workers to South Korea increased
The visa fee for Nepali workers going to South Korea under the Employment Permit System (EPS) has been increased by Rs 600, reaching Rs 11,300. The EPS Korea Section under the Department of Foreign Employment said the revision was made following a July 1, 2026, communication from the Korean Embassy in Nepal. Applicants who have already received the Certificate of Confirmation of Visa Issuance (CCVI) must pay the revised fee when submitting documents, and duplicate payments will not be refunded.
Government to issue certificates to donors of reconstruction fund
The government will award appreciation certificates to individuals and organisations contributing more than Rs 10,000 to the Physical Infrastructure Reconstruction Fund established for post-protest rebuilding. The Ministry of Finance said certificates signed by Finance Minister Swarnim Wagle have been prepared to recognise contributions made after damage caused during the Gen Z protests on Bhadra 23 and 24. However, distribution has been delayed due to incomplete donor contact details, and contributors have been asked to contact the ministry to collect certificates.
KMC invests in education as human capital strategy
Kathmandu Metropolitan City (KMC) has expanded investment in community school education, focusing on infrastructure improvement and human resource development to strengthen long-term human capital. Acting Mayor Sunita Dangol said education is a key economic investment that enhances productivity and labour market readiness. The metropolis has awarded cash incentives to SEE 2082 BS achievers, schools and teachers. While the programme promotes performance-based recognition, experts note that its economic impact remains limited compared to broader reforms in school infrastructure, teacher training and curriculum development.
UML urges government to address economic challenges and seek consensus on reforms
The CPN (UML) has urged the government to focus on resolving economic challenges and strengthening the rule of law. In a statement titled “100 Days of Government: Review of Promises and Reality,” General Secretary Shankar Pokharel said reforms must prioritise economic stability and job creation. The party also stressed that any constitutional amendments should be pursued only through broad political consensus, warning against their use for short-term political gain.
Energy minister inspects Bheri-Babai diversion project
Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has inspected the Bheri-Babai Diversion Multipurpose Project, urging faster and result-oriented progress. The project aims to irrigate 51,000 hectares in Banke and Bardiya and generate 46 MW of electricity. Officials said significant infrastructure work is underway, including meter installation and budget allocation to address low-voltage issues in Karnali Province.
Health Insurance Board urges restraint on unnecessary tests
The Health Insurance Board has urged both service providers and insured patients to avoid unnecessary medical tests and treatments amid delays in claim payments. The Board said outstanding dues have been cleared only up to mid-December 2025, while further payments depend on government allocations. It added that Rs 23.44 billion has been paid this fiscal year and called for uninterrupted services for insured patients while maintaining rational use of medical resources.
Construction begins on main tunnel of 106 MW Jagdulla Hydropower Project
Construction of the main tunnel of the 106 MW Jagdulla Semi-Reservoir Hydropower Project has officially started in Dolpa, marking a major milestone for one of Karnali Province’s largest energy ventures. Energy Minister Biraj Bhakta Shrestha inaugurated the works, calling the project crucial for regional economic development and urging coordination among all levels of government and local communities for timely completion. Developed under the People’s Hydropower Programme, the project is being financed through around Rs 16.66 billion in domestic loans. Once completed, it is expected to generate royalty income for federal, provincial and local governments while also boosting employment and infrastructure development in the region.
Bird flu detected in 100 locations, authorities urge public caution
The Ministry of Health and Population has urged the public to remain alert after bird flu (avian influenza) was confirmed in 100 locations across Nepal, including areas of the Kathmandu Valley. Joint Spokesperson Dr Samir Kumar Adhikari said infections have been reported in 11 districts, prompting authorities to advise avoiding contact with sick or dead birds and following strict hygiene measures. The Department of Livestock Services said the outbreak has raised concerns of wider spread, although officials reiterated that the virus mainly transmits through infected poultry and does not easily spread between humans. The public has been urged to report dead birds and ensure proper handling and cooking of poultry products.
Cinnamon exports from Palpa hit six-year high
Cinnamon exports from Palpa to India have reached a six-year peak in the current fiscal year, according to the Division Forest Office, Palpa. A total of 347,969 kg of cinnamon was exported, a sharp increase compared to previous years, including 191,415 kg in FY 2020/21. Exports of bay leaves (tejpat) also rose significantly to 1,288,482 kg this year. Officials said India remains the primary market for both products, which serve as important sources of income for local farmers and forest-based livelihoods.
Over 80,000 foreign tourists enter Mustang in June
Mustang recorded 80,253 foreign tourist arrivals in June 2026, according to the Annapurna Conservation Area Project (ACAP), Jomsom. Of these, more than 78,000 were from SAARC countries, with Indian tourists accounting for the vast majority. Officials said arrivals have risen sharply compared to 20,868 in June 2025, reflecting strong growth in short-term religious and leisure travel, particularly to Muktinath. However, only a small share of visitors travel beyond the main pilgrimage routes into Upper Mustang.
Livestock department tightens biosecurity as bird flu culling reaches 700,000 poultry
The Department of Livestock Services has strengthened biosecurity measures as bird flu continues to spread across multiple districts. Officials warned of potential viral mutation risks and urged farmers to adopt strict preventive practices, including disinfection of transport vehicles, isolation of poultry from wild birds and proper veterinary certification for movement of birds. The outbreak has been confirmed in 11 districts, including Kathmandu Valley districts and several Tarai and hill regions. Authorities said around 700,000 poultry have already been culled to contain the infection, alongside large-scale destruction of eggs and feed.
Concrete bridge in Bhojpur improves connectivity between two local units
A concrete bridge at Tamutar in Bhojpur has been completed, connecting Shadananda Municipality and Salpasilichho Rural Municipality and improving year-round mobility. Built at a cost of Rs 63.3 million under the Koshi Province government, the 50-metre bridge became operational in April 2024. The structure has eased long-standing transport difficulties during monsoon seasons, particularly benefiting patients, students and local residents who previously faced disruptions due to flooding.
APF seizes smuggled goods worth over Rs 3.6 million in Morang
The Armed Police Force (APF) Nepal has seized illegal goods worth around Rs 3.6 million from various locations in Morang district during anti-smuggling operations. Acting on intelligence, APF recovered large quantities of illegally transported goods, including multivitamin medicines, vegetable ghee and construction materials, along with electric rickshaws used for smuggling. The seized items have been handed over to customs authorities for further investigation and legal action.
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