KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments reflect a government seeking to combine long-term infrastructure investment with short-term governance reforms, although significant implementation challenges remain. Increased spending on the energy sector, progress in major hydropower projects and steady growth in tourism indicate a continued focus on productive sectors capable of driving economic expansion.
At the same time, measures such as digitalising bank loan applications, curbing unnecessary overtime expenses at the Nepal Oil Corporation and urging businesses to pass on lower fuel costs to consumers suggest greater emphasis on administrative efficiency and market oversight.
However, the sharp rise in gold prices highlights persistent global economic uncertainty, while the success of the government’s broader economic agenda will ultimately depend on translating policy announcements into higher private investment, stronger industrial activity, improved consumer welfare and sustained fiscal discipline.
Government allocates Rs 85 billion to energy sector in first 100 days
The government has prioritised the energy sector during its first 100 days in office, unveiling an Energy Consumption and Export Strategy aimed at expanding domestic electricity use and increasing power exports. Measures include prioritising reservoir-based hydropower projects, accelerating transmission line construction, allocating more than Rs 85 billion for electricity infrastructure, opening electricity trading to the private sector and strengthening hydropower licence management. While these initiatives are intended to improve governance and modernise the power sector, challenges remain in attracting investment, reducing regulatory uncertainty, improving the business environment and boosting industrial electricity consumption. Sustained policy reforms and investor confidence will be key to unlocking the sector’s long-term economic potential.
Government asks businesses to reflect fuel price cuts
The Department of Commerce, Supplies and Consumer Protection has urged traders and service providers to pass on the benefits of lower fuel prices to consumers by reducing the prices of goods and services. Acting on the directive of Minister for Industry, Commerce and Supplies Gauri Kumari Yadav, the department called on transport operators, businesses and other service providers to adjust their prices after the Nepal Oil Corporation reduced fuel prices effective June 30. The department also instructed authorities to prevent artificial price hikes and ensure essential goods and services remain affordable. Businesses have been urged to comply with the Consumer Protection Act, 2018, so that consumers directly benefit from the reduction in fuel costs.
Gold rises Rs 11,600 in a week, approaches record high
Gold prices in Nepal climbed by Rs 11,600 per tola (11.66 grams) over the past week, rising from Rs 279,100 on June 26 to Rs 290,700 on July 3, driven by strong global demand for safe-haven assets. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious metal rebounded sharply after three straight sessions of losses, gaining Rs 6,200 on July 2 and another Rs 7,200 the following day. Bullion traders attributed the rally to geopolitical tensions, uncertainty in the global economy, increased gold purchases by central banks, and fluctuations in the US dollar and interest rate expectations. While higher prices have dampened jewellery demand, investment interest in gold has continued to strengthen.
Rs 3.15 billion allocated for Beni–Jomsom–Korala road upgrade
Infrastructure Development Minister Sunil Lamsal has instructed officials to expedite the tender process for five major bridges under the Beni–Jomsom–Korala Road Project during an inspection visit. Accompanied by Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel, he reviewed construction progress and tourism development prospects along the corridor. The government has earmarked Rs 3.15 billion to upgrade and blacktop the 50-kilometre Chhusang–Ghami section, while the environmental assessment for extending improvements to the Korala border has already been completed. Local residents also called for stronger measures to address recurring landslides, flooding and river erosion affecting the highway.
Foreign tourist arrivals rise in first half of 2026
Nepal welcomed 620,453 foreign visitors during the first six months of 2026, marking a notable increase from 577,689 arrivals recorded during the same period last year, according to the Nepal Tourism Board. The board attributed the growth mainly to improved international air connectivity and expanded flight networks. Tourist arrivals remained consistently strong throughout the period, peaking during the spring trekking season. Monthly arrivals reached 92,573 in January, 105,441 in February, 120,516 in March, 107,934 in April, 102,626 in May and 91,363 in June, reflecting sustained recovery in the tourism sector.
Retired civil servants to receive dues by July 9
The Financial Comptroller General Office (FCGO) has instructed all District Treasury Controller Offices to complete payments of retirement benefits to eligible civil servants by July 9. The office has directed concerned authorities to release gratuity, accumulated leave encashment and medical reimbursement payments without delay. According to the FCGO, the payment period has been extended following a decision taken on July 3 under the Financial Procedures and Financial Responsibility Regulations, 2020. The earlier deadline of July 4 has now been revised to allow sufficient time for processing outstanding claims.
Government limits Nepal Oil Corporation overtime payments
The government has tightened overtime payment provisions at the Nepal Oil Corporation by restricting the benefit to technical employees involved in essential round-the-clock operations. The new policy, introduced through the Nepal Oil Corporation Limited Employee Administration (Eighteenth Amendment) Bylaws, 2026, limits overtime eligibility to staff working in aviation fuel services, fuel depots and pipeline operations. Administrative and other non-technical employees will no longer qualify for overtime allowances. The revised bylaws also require prior approval, clear justification and workload verification before overtime can be authorised. The Ministry of Industry, Commerce and Supplies said the move is intended to curb misuse of overtime payments and reduce unnecessary government expenditure.
Rastriya Banijya Bank introduces online loan application system
Rastriya Banijya Bank (RBB) has launched an online loan application service as part of its 100-point governance reform action plan aimed at improving customer service through digital technology. The new platform allows customers to apply for loans remotely, eliminating the need to visit bank branches. According to Deputy Chief Executive Officer and Information Officer Pawan Regmi, the digital system has been introduced to simplify the loan application process, provide clear information on required documents and enable applicants to track the status of their applications online. Customers can access the service through the bank’s official website by selecting the online loan application option and registering on the RBB Xmart Lending Digital Loan Portal using their email address, username and password. The bank said the initiative is expected to make loan processing faster, more transparent and convenient.
Traffic police collect Rs 2 million in fines within 24 hours
The Kathmandu Valley Traffic Police Office collected more than Rs 2 million in revenue over the past 24 hours after taking action against 2,000 motorists for violating traffic regulations. According to the office, Rs 2,004,014 was deposited into the state treasury through traffic fines. Among those penalised, 61 were booked for driving under the influence of alcohol or drugs, 129 for illegal ride-sharing, 61 for jumping traffic signals and 113 for speeding. Police also took action against 107 motorists for violating lane discipline, 84 for unnecessary honking, 93 for roadside parking, 96 for driving on one-way roads and 1,256 for other traffic offences.
Tanahun Hydropower Project reaches 75.5% completion
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