KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic indicators present a mixed picture of resilience alongside persistent structural weaknesses. While the stock market remained largely stable, with the NEPSE slipping only 0.04 percent despite a healthy Rs 4.57 billion turnover, broader macroeconomic data continue to underscore the country’s heavy dependence on imports and remittances. The Rs 1.78 trillion trade deficit, coupled with declining tea exports and underperforming customs revenue, highlights Nepal’s limited export competitiveness and vulnerability to external market conditions.
Although remittances have strengthened foreign exchange reserves, they continue to mask deeper imbalances in productive sectors. On the positive side, tourism maintained steady momentum with a 2.3 percent rise in international arrivals, while life insurance premiums recorded double-digit growth, reflecting improving consumer confidence and financial sector expansion. Business promotion efforts, including an exporters’ mission to Oman and the formation of new FNCCI thematic committees, signal continued attempts to diversify markets and strengthen private sector engagement.
Meanwhile, regulatory and governance reforms gained prominence. The Nepal Rastra Bank tightened oversight of commercial banks, Lumbini Province introduced stricter fiscal discipline measures, and the government sought greater transparency in areas ranging from film incentives to free healthcare delivery. However, unfinished infrastructure projects, unused facilities at the Simara SEZ, and disputes over foreign labor recruitment illustrate persistent implementation gaps. Overall, the developments suggest an economy showing pockets of progress but still constrained by weak execution, low export capacity and institutional inefficiencies.
NEPSE slips 1.20 points as turnover reaches Rs 4.57 billion
The Nepal Stock Exchange (NEPSE) edged down by 1.20 points, or 0.04 percent, to close at 2,684.33 on Monday. Trading turnover stood at Rs 4.572 billion, with nearly 11.45 million shares of 349 companies changing hands. The Sensitive Index gained 0.49 points to settle at 470.63. Share prices of 126 companies advanced, while 141 declined and seven remained unchanged. Everest Color posted the highest gain of 14.99 percent, whereas Reliance Spinning Mills Limited recorded the biggest loss at 7.40 percent and topped turnover with Rs 276.2 million. Global IME Bank led trading volume with 738,612 shares.
Trade deficit reaches Rs 1.78 trillion in FY 2025/26
Nepal’s trade deficit widened to Rs 1.78 trillion in fiscal year 2025/26 as imports reached Rs 2.096 trillion against exports of Rs 315.29 billion. The country recorded trade deficits with 134 of its 162 trading partners, with imports heavily concentrated on neighboring India and China. Petroleum products and edible oil remained the largest import items, while remittance inflows of Rs 2.12 trillion helped finance the deficit and contributed to foreign exchange reserves rising to Rs 3.76 trillion.
Gold and silver prices rise
Gold and silver prices increased in the domestic market on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 800 per tola to Rs 284,000, up from Rs 283,200 on Sunday. Silver also gained Rs 35 per tola, reaching Rs 4,350 from the previous day’s Rs 4,315.
NRB penalizes three commercial banks for regulatory violations
The Nepal Rastra Bank (NRB) has taken action against three commercial banks for breaching regulatory requirements during the final quarter of fiscal year 2025/26. Rastriya Banijya Bank and Agricultural Development Bank received formal warnings for delays in freezing accounts as required by regulations. Former Prabhu Bank Chief Executive Officer Ashok Sherchan was fined Rs 500,000, while Prabhu Bank was directed to sign a formal commitment agreement after failing to address supervisory findings related to loan classification and inconsistencies in its core banking system.
Ministry rejects allegations of labor recruitment syndicate
The Ministry of Youth, Labor and Employment has dismissed allegations that it was facilitating a syndicate for recruiting workers to Malaysia, calling the claims unfounded. The ministry said it has not received any official communication from the Malaysian government on the issue and reiterated its commitment to maintaining a transparent and competitive foreign employment system. The clarification came after the Nepal Association of Foreign Employment Agencies alleged that certain interest groups were attempting to influence recruitment policies in favor of selected manpower agencies.
Tourist arrivals increase 2.3 percent in July
Nepal received 71,775 foreign visitors in July 2026, marking a 2.3 percent increase from the same month a year earlier, according to the Nepal Tourism Board. India remained the largest source market with 23,490 visitors, followed by China, the United States, Bangladesh and the United Kingdom. Visitors from SAARC countries accounted for 41.5 percent of total arrivals. The board said the figures reflect steady growth in the tourism sector and improving international travel confidence.
Nepali exporters visit Oman to promote local products
A 15-member delegation led by the Federation of Nepali Export Associations left for Oman on Monday for a four-day business promotion visit aimed at expanding export opportunities. The delegation includes representatives from the handicrafts, handmade paper and bottled water industries. Organized with support from the Ministry of Foreign Affairs and the Nepali Embassy in Oman, the visit seeks to promote Nepali agricultural products, herbs, handicrafts and processed foods in major retail markets.
Tea exports to India through Kakarbhitta decline
Nepal’s tea exports to India via the Kakarbhitta border fell during fiscal year 2025/26, according to the Kakarbhitta Customs Office. Exports totaled 13,045 metric tons worth Rs 3.53 billion, down from 15,311 metric tons valued at Rs 4.17 billion in the previous fiscal year. Export earnings declined by Rs 639.6 million. Chief Customs Administrator Shivalal Neupane attributed the decrease to fluctuations in Indian market prices, non-tariff barriers related to quality testing and shifts in global demand. The decline has affected tea farmers, processors and the country’s overall trade balance.
Ministry publishes contact list for free health services
The Ministry of Health and Food Hygiene has released a nationwide directory of hospitals providing free health services along with designated contact persons to support the implementation of the government’s 10 percent free healthcare scheme. Focal persons at federal, provincial, community, teaching and private hospitals will assist patients in accessing free hospital beds and resolving treatment-related complaints. The ministry has also launched an online system to monitor free bed availability and instructed hospitals to update the information regularly. Patients have been encouraged to use the published contacts to seek information and report any problems in receiving services.
Lumbini issues 52-point directive for budget implementation
The Ministry of Economic Affairs and Planning of Lumbini Province has introduced a 52-point directive aimed at ensuring fiscal discipline, transparency and austerity in the implementation of the 2026/27 budget. The directive, signed by Secretary Bandhu Prasad Bastola on Monday, bans seminars and workshops during July, requires public tenders for infrastructure projects costing more than Rs 1 million, prohibits meeting and overtime allowances for government officials, and instructs offices to return unspent budget allocations by mid-April.
Bhadrapur Customs Office misses revenue target
The Bhadrapur Customs Office failed to achieve its revenue target in fiscal year 2025/26, collecting Rs 186 million against a target of Rs 250.3 million, or 74.34 percent of the projected amount. Officials said exports through the border point remained
Syangja collects Rs 848.3 million in revenue
Syangja district generated Rs 848.3 million in revenue under federal and provincial government accounts during fiscal year 2025/26, down by Rs 304.5 million from the previous fiscal year. Officials attributed the decline to slower development activities and the relocation of government offices. Of the total, federal revenue stood at Rs 565.9 million, driven mainly by taxpayer service offices and passport fees, while provincial revenue reached Rs 282.4 million, largely contributed by infrastructure development and land administration offices.
Butwal carries over 51 unfinished development projects
Butwal Sub-metropolitan City has carried forward 51 incomplete development projects into the current fiscal year after completing 87 of the 138 projects planned for fiscal year 2025/26. According to municipal records, project delays caused by political activities, elections and late implementation affected progress, with only 28 of the 72 contract-based projects being completed. However, all 498 ward-level projects implemented through consumer committees were completed during the fiscal year.
Govt consults stakeholders on Rs 35 million film incentive
The government has held consultations with filmmakers and industry representatives on a draft procedure for distributing a Rs 35 million incentive grant for films of cultural and national significance in the current fiscal year. During a discussion organized by the Ministry of Information and Communication on Monday, participants called for transparent and objective criteria for selecting projects. Minister Bikram Timilsina said a clear guideline would ensure the accountable use of public funds. The procedure will be finalized after incorporating stakeholders’ feedback to support films that promote Nepal’s cultural heritage, national identity and tourism.
FNCCI forms three more thematic committees
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has established three additional thematic committees, taking the total number formed so far to 11 out of the planned 25. The new committees include the Bank, Finance and Insurance Committee chaired by Hemant Golchha, the Trade Fair Committee led by Sabin Shrestha, and the Tourism and Air Transport Committee headed by Sangharsha Bista. Appointment letters were distributed to committee members during a program at the FNCCI Secretariat in Teku. Speaking on the occasion, FNCCI Senior Vice President Sur Krishna Vaidya said the committees would identify challenges facing the private sector, recommend policy improvements and strengthen cooperation with the government. Other FNCCI officials called on the committees to deliver practical results that support investment, improve the business climate and promote private sector growth.
Life insurers collect Rs 200 billion in premiums
Nepal’s 14 life insurance companies collected insurance premiums worth Rs 200.02 billion during fiscal year 2025/26, registering a 12.43 percent increase from Rs 177.91 billion in the previous fiscal year, according to the Nepal Insurance Authority. Nepal Life Insurance remained the market leader with premium collections of Rs 53.69 billion, followed by National Life Insurance with Rs 24.69 billion.
Simara SEZ service buildings remain unused
Seven administrative and service buildings constructed at the Simara Special Economic Zone (SEZ) around two years ago at a cost of about Rs 450 million remain vacant due to the absence of key service providers such as banks, customs offices, postal services and insurance companies. With only four staff members managing the SEZ office, industries operating in Block A and nearby manufacturing facilities continue to travel about 30 kilometres to Birgunj to access banking and administrative services.
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