KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Monday’s economic developments across Nepal reflect mixed financial and policy signals alongside broader structural and sectoral shifts in the economy. The NEPSE index declined by 34.63 points amid lower turnover and widespread losses across most sectors, even as isolated stocks posted sharp gains, highlighting continued market volatility.
In parallel, capital market activity remained active with 47 applications for the SEBON chairperson post and a Rs 1 billion mutual fund issue, while development banks reported strong 49 percent profit growth, indicating underlying banking sector resilience.
Macroeconomic and policy moves were also prominent, including a $57 million World Bank-supported industrial modernization package and government pledges for a pro-business budget and pre-announced crop support prices, signaling reform-oriented intent.
However, external pressures and structural constraints persist, reflected in declining tourist arrivals, visa-related risks abroad, and underperforming customs sub-offices, even as targeted gains are visible in sectors like Sauraha tourism, Bhadrapur trade, and Lumbini employment.
Overall, the updates portray an economy navigating short-term financial fluctuations while pursuing longer-term institutional and sectoral reforms.
NEPSE drops 34.63 points as turnover declines
The NEPSE index fell by 34.63 points to close at 2,704.08 on Monday, while daily turnover dropped to Rs 4.26 billion from Rs 4.91 billion recorded last Thursday. Shares of 27 companies gained, whereas 240 declined and two remained unchanged. Most sector indices fell, except microfinance, which saw a slight increase. Hydropower, development banks, and manufacturing sectors recorded losses exceeding 2 percent. Forward Microfinance posted the highest gain at 15 percent, while Corporate Development Bank registered the steepest decline at 12.58 percent.
Govt accepts $57 million World Bank support for industry
The Government of Nepal has agreed to receive financial assistance worth USD 57 million from the World Bank, including a USD 52 million concessional loan and a USD 5 million grant. The funding will be used to modernise the industrial sector by replacing traditional boilers with electric systems, extending subsidised credit to industries, and strengthening air quality monitoring to support sustainable development.
Gold price falls to Rs 294,800, silver rises to Rs 5,030
Gold prices fell by Rs 300 per tola on Monday to Rs 294,800, while silver rose by Rs 20 to Rs 5,030, according to the Federation of Nepal Gold and Silver Dealers’ Association. The previous day, gold stood at Rs 295,100 and silver at Rs 5,010 per tola, reflecting mixed movements in precious metals in the domestic market.
Forty-seven apply for SEBON chairperson post
A total of 47 candidates have applied for the position of chairperson of the Securities Board of Nepal (SEBON) as the deadline for applications closed. The government has formed a three-member recommendation committee led by National Planning Commission Vice-Chairperson Gunakar Bhatta, with Finance Secretary Ghanshyam Upadhyay and former Nepal Bankers’ Association President Bhuvan Kumar Dahal as members.
Finance Minister pledges pro-business budget
Finance Minister Swarnim Wagle has said the upcoming budget will prioritise private sector growth, describing it as central to economic expansion. Speaking at the annual general meeting of the Federation of Nepalese Chambers of Commerce and Industry, he noted that private investment contributes 70–75 percent of GDP. He also announced plans to repeal restrictive laws, reform tax administration, and promote a social market economy while maintaining investment in public services.
Most Mechi sub-customs offices remain closed
Five out of six sub-customs offices under the Mechi Customs Office are currently non-operational due to weak trade activity and lack of infrastructure such as quarantine services. Only the Aathmouja office in Gauriganj remains functional, albeit with limited transactions. Trade has largely shifted to the Kakarbhitta checkpoint, which is equipped with a dry port and modern screening systems.
Govt to fix minimum support prices before planting season
The Ministry of Agriculture and Livestock Development has introduced a directive to determine minimum support prices (MSP) for key crops before the sowing season. Under the new policy, prices for paddy, maize, wheat, and millet will be set based on technical assessments and timelines, with wheat MSP expected by mid-October. The initiative aims to guarantee minimum returns for farmers, reduce risks, and encourage agricultural investment.
Nearly 10,000 jobs created in Lumbini industries
Lumbini Province has generated 9,864 jobs in the first nine months of the fiscal year 2025/26, with employment spread across newly established industries and businesses. According to provincial data, 3,021 new entrepreneurs emerged during this period, while 5,406 firms were registered and 2,069 shut down, indicating a net expansion in business activity.
Karnali calls for proposals under conditional grants
The Karnali Province Government has invited proposals for projects under conditional grants for the fiscal year 2026/27. The call aligns with criteria set by the National Natural Resources and Fiscal Commission under the Constitution of Nepal. Priority sectors include infrastructure, education, health, employment, and environmental protection, with defined funding limits for local bodies, institutions, and provincial lawmakers.
Free health insurance expanded in Gandaki
The Gandaki Province Ministry of Health has provided free health insurance to 7,061 individuals from vulnerable groups, including persons with disabilities, kidney patients, conflict victims, and journalists. Currently, over 67 percent of households in the province are enrolled in the scheme, which offers coverage of up to Rs 100,000 per family for treatment and medicines.
Nepal embassy warns citizens in Cambodia over visa overstays and scam risks
The Embassy of Nepal in Thailand has issued an urgent advisory for Nepalis in Cambodia, cautioning against visa overstays and involvement in online scam networks. The embassy said many Nepalis have overstayed visas or been lured into illegal work, while Cambodian authorities have stepped up enforcement under a new cybercrime law that carries penalties of up to USD 500,000 and life imprisonment. The embassy has urged citizens to follow visa regulations, avoid suspicious job offers, and verify foreign employment through official channels, while also coordinating data collection for possible repatriation.
Development banks report 49 percent profit growth
Eight national-level development banks recorded a combined net profit of Rs 5.50 billion in the third quarter, marking a 49.04 percent rise year-on-year. Garima Bikas Bank led in total earnings, while Lumbini Bikas Bank posted the highest growth rate. Other major performers included Muktinath Bikas Bank and Shine Resunga Development Bank, with all institutions reporting positive growth.
Over 107,000 tourists visit Nepal in April 2026
Nepal recorded 107,934 foreign tourist arrivals in April 2026, according to the Nepal Tourism Board. South Asia remained the largest source market, contributing 31 percent of arrivals, followed by other Asian countries and Europe. India topped the list with 15,196 visitors, followed by China and Bangladesh. The board noted a decline compared to April 2025, attributing it partly to regional geopolitical tensions affecting flight connectivity and travel flows.
Tourism ministry announces five NAC board vacancies
The Ministry of Culture, Tourism, and Civil Aviation has opened applications for five vacant positions on the board of Nepal Airlines Corporation (NAC). The expansion from four to five members follows vacancies created after the enforcement of the Special Provision for Removal of Public Officials Ordinance, 2026. The ministry had initially issued a call for four board members on April 25 before revising the requirement.
Two-day weekend boosts tourism in Sauraha
Tourist activity in Sauraha, Chitwan has increased following the introduction of a two-day weekly holiday, with hotel occupancy rising to around 50 percent this year from 40 percent last year. Domestic tourists dominate during weekends, while foreign visitors—mainly from India, China, and other countries—make up a larger share on weekdays. Hoteliers report stronger demand for activities such as elephant safaris, with accommodation capacity reaching 7,200 across 148 hotels and significant investment in the sector exceeding Rs 400 billion.
Customs enforcement boosts trade in Bhadrapur
Stricter customs enforcement on goods valued above Rs 100 has increased domestic commercial activity in Bhadrapur, with local traders reporting a 30 to 40 percent rise in business. Consumers have shifted away from cross-border purchases in Galgalia, where Indian traders report a significant drop in sales. The Bhadrapur Customs Office has collected Rs 134.3 million in revenue by mid-April this fiscal year.
Siddhartha Capital issues Rs 1 billion equity fund II
Siddhartha Capital has opened subscription for Siddhartha Equity Fund-II, a 12-year closed-ended mutual fund worth Rs 1 billion. Of the 100 million units issued at Rs 10 each, 15 million are reserved for sponsor Siddhartha Bank, while 85 million units are available to the public. The subscription period runs until May 7, extendable to May 18 if undersubscribed.
Supreme Court orders revision of Phukot Karnali hydropower deal
The Supreme Court has paved the way for the 480 MW Phukot Karnali Hydropower Project while directing revisions to the investment structure to increase Nepal’s benefit share. The court instructed changes to the agreement between NHPC Limited and Nepal’s Vidyut Utpadan Company Limited, particularly to raise Nepal’s share of free energy beyond 21.9 percent. The Rs 92 billion project in Kalikot is expected to generate 2.44 billion units annually.
Second human resource conference to be held in Morang
The second Nepal Human Resource Conference will take place in Biratchowk on May 8–9, organised by the Chamber of Industries, Morang. The event will focus on labour shortages, brain drain, and digital HR systems, with participation from over 150 national and international experts discussing workforce retention, apprenticeship models, and productivity improvement.
Supreme Court orders release of Shekhar Golchha on bail
The Supreme Court (SC) has ordered the release of businessman Shekhar Golchha on bail, overturning previous detention orders issued during the investigation. A joint bench of Justices Mahesh Sharma Poudel and Shrikanta Poudel on Monday ruled that the decision to keep Golchha in custody without first seeking bail was inconsistent with legal provisions. The court declared earlier detention orders issued on Baisakh 11 and 12, 2083, null and void. The apex court also revoked the Kathmandu District Court’s permission that had allowed investigators to extend his detention. The Central Investigation Bureau of Nepal Police had earlier secured extensions for his custody through the district court.
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