KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The collection of economic and governance updates presents a mixed picture of Nepal’s economy, where signs of institutional reform and sectoral resilience coexist with persistent structural weaknesses. Financial markets remained under pressure as the NEPSE index and turnover both declined, reflecting cautious investor sentiment despite broader reform discussions.
At the same time, the government’s ability to mobilize foreign aid remained weak, achieving less than half of its target, highlighting chronic shortcomings in capital expenditure and project implementation. Policy initiatives, however, indicate a push toward modernization and accountability, including mandatory female representation on the Nepal Rastra Bank board, legal recognition of central bank digital currency, tighter oversight of Nepal Oil Corporation, and measures to improve tax compliance through digital payment incentives.
External and border-related sectors showed contrasting trends: large cardamom exports and Kailash-Manasarovar pilgrim traffic through Rasuwagadhi increased significantly, while customs revenue suffered from flood-related trade disruptions. Agriculture benefited from favorable monsoon conditions, with Jhapa nearing full paddy plantation.
The reports also expose governance and infrastructure challenges, including delays in implementing the bi-monthly salary system, unresolved telecommunications gaps in Hilsa, and ongoing cooperative deposit refunds. Overall, the updates suggest gradual reform momentum, but implementation capacity remains Nepal’s central economic challenge.
NEPSE drops 21.15 points as turnover falls to Rs 4.07 billion
The Nepal Stock Exchange (NEPSE) index declined by 21.15 points on Tuesday, closing at 2,663.18. Daily turnover also decreased to Rs 4.07 billion from Rs 4.57 billion recorded on Monday. Share prices of 58 companies advanced, while 214 declined and five remained unchanged. All sectoral indices ended in negative territory, with manufacturing and processing, trading, and the others group posting the steepest losses of more than one percent. Everest Color was the top gainer with a 15 percent rise, whereas Saptakoshi Development Bank recorded the biggest drop at 11.67 percent.
Gold slips slightly while silver edges higher
Gold prices declined slightly on Tuesday, while silver prices increased. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold fell by Rs 200 per tola and was traded at Rs 283,800, down from Rs 284,000 on Monday. Silver rose by Rs 30 per tola to Rs 4,380, compared with Rs 4,350 the previous day.
Active taxpayer registrations exceed 8.4 million
The number of active taxpayer registrations in Nepal reached 8,421,804 by the end of fiscal year 2025/26, according to updated data released by the Ministry of Finance. The total includes 5,696,708 individual permanent account numbers, 2,174,992 business permanent account numbers, 39,164 institutional withholding tax accounts, 378,268 value-added tax registrants, and 132,672 active excise duty accounts. Officials said all tax offices recorded notable annual growth in registrations.
Government mobilizes only 45 percent of foreign aid target
The government mobilized Rs 131.08 billion in foreign development assistance during fiscal year 2025/26, achieving only 45.66 percent of the Rs 287.11 billion target. Weak capital expenditure performance was cited as a major factor limiting project implementation. Of the total, Rs 109.46 billion came from loans and Rs 21.61 billion from direct grants, against total commitments of Rs 161.46 billion.
Finance minister meets CEOs of all 20 commercial banks
Chief executive officers of Nepal’s 20 Class ‘A’ commercial banks held a high-level meeting with Finance Minister Swarnim Wagle at the Ministry of Finance on Tuesday afternoon. According to the minister’s secretariat, discussions focused on the current state of the financial market and the role of major banks in implementing economic reform measures announced in the national budget. All 20 commercial banks licensed by Nepal Rastra Bank participated in the meeting.
Committee backs mandatory female representation on NRB board
The House of Representatives Finance Committee has agreed to require at least one woman on the board of Nepal Rastra Bank during clause-wise discussions on the bill to amend the Nepal Rastra Bank Act, 2002. Under the proposed amendment, the central bank will continue to operate through a seven-member board of directors, with female representation made compulsory. Lawmakers said the change is intended to strengthen inclusiveness and diversity in the governance of the country’s monetary authority.
Parliamentary committee questions Rs 407 million in Nepal Oil Corporation allowances
The Industry, Commerce, Labor and Consumer Welfare Committee of the Federal Parliament has sought clarification over Rs 407.2 million allocated for employee allowances at Nepal Oil Corporation, including Rs 130 million for overtime and Rs 45.7 million for travel expenses. The committee also instructed relevant authorities to introduce mandatory cylinder mapping using radio-frequency identification or barcode systems within 90 days. It further called for the introduction of separate commercial gas cylinders to prevent losses caused by businesses using subsidized household cylinders.
Over one million transactions entered in taxpayer incentive scheme
More than 1.08 million transactions had qualified for the government’s Taxpayer Incentive Prize Program by Monday afternoon, according to the Inland Revenue Department. Eligible entries included 1,074,796 QR-code-based digital payments made between July 17 and July 31, along with 3,427 uploaded cash invoices. The department is preparing to conduct the program’s first delayed draw, which includes a daily prize of Rs 100,000 and a bumper prize of Rs 1 million. The scheme applies to purchases above Rs 100 and is intended to encourage consumers to collect bills and improve tax compliance.
Rasuwa customs collects Rs 13.64 billion despite trade disruptions
The Rasuwa Customs Office collected Rs 13.646 billion in revenue during fiscal year 2025/26, meeting roughly one-third of its Rs 40 billion target. The shortfall was attributed to disruptions in cross-border trade after flooding in the Lhende River destroyed the Miteri Bridge linking Nepal and China. Chief Customs Officer Rajendra Dhungana said imports fell to Rs 43.73 billion. For the current fiscal year, the office has set a revenue target of Rs 25.5 billion, supported by a newly installed Bailey bridge at Rasuwagadhi.
Minister urges businesses to obtain Nepal Quality certification
Industry, Commerce and Supplies Minister Gauri Kumari Yadav has urged manufacturers and business operators to obtain the official Nepal Quality certification for domestic products. During a meeting with Department of Standards and Metrology Director General Kumari Jyoti Joshi, the minister said the initiative would help increase consumer confidence, ensure product safety, improve competitiveness in the domestic market, and reduce dependence on imported goods. The ministry said it would facilitate the necessary administrative procedures for businesses seeking certification.
Delay in salary revision stalls bi-monthly payment plan
Implementation of the proposed bi-monthly salary system for civil servants has been delayed after the Ministry of Finance failed to finalize revised pay scales. The delay is linked to calculations related to the 21 percent salary increase announced in the national budget. Officials said the system cannot be activated until the Cabinet approves the revised structure and the Financial Comptroller General Office receives formal notification. The plan also faces cash-flow challenges, as it would require around Rs 20 billion every fortnight, while most tax revenue is collected at the end of the month.
Cooperatives committee begins refunding small depositors
The Problematic Cooperatives Management Committee has started refunding savings to small depositors, providing payments to 334 depositors of Kantipur Saving and Credit Cooperative and seven depositors of Pashupati Saving and Cooperative. The refunds were financed through recoveries from 65 borrowers over the past 15 days. The committee said the first phase has prioritized small depositors, while remaining deposits will be returned gradually based on deposit size using funds generated from loan recovery and asset management.
Rasuwagadhi border records rise in Kailash Manasarovar pilgrims
The number of pilgrims traveling to Tibet’s Kailash Manasarovar through the Rasuwagadhi border increased by 18.75 percent in fiscal year 2025/26, reaching 13,523 visitors. The cheaper and more accessible route compared with the Humla crossing was cited as the main reason for the increase. Overall border movement rose by 20.74 percent to 53,742 crossings, with Indian nationals accounting for the largest share at 24,278. The growth was recorded despite the checkpoint operating for only seven months after repairs to the flood-damaged Miteri Bridge. In contrast, travel through Rasuwagadhi to Lhasa and the Chinese Everest Base Camp fell sharply to 626 and 22 visitors respectively.
Kakarvitta sees 64 percent jump in large cardamom exports
Exports of large cardamom through the Kakarvitta border point rose by 64.65 percent in fiscal year 2025/26, reaching Rs 12.64 billion compared with Rs 7.67 billion a year earlier. Export volume increased from 4.29 million kilograms to 6.39 million kilograms, benefiting around 125,000 farming households across 54 districts. Traders and farmers attributed the rise to stable seasonal prices and strong demand in international markets, which helped boost rural incomes and foreign exchange earnings.
Surkhet traffic police collects over Rs 13.3 million in revenue
The District Traffic Police Office in Surkhet collected Rs 13.38 million in revenue from traffic enforcement during fiscal year 2025/26. Office chief Rohit Kumar Shahi said action was taken against drivers for offences such as drunk driving and speeding. An additional Rs 570,000 was recovered from penalties imposed on vehicle owners who made unauthorized modifications to the structure of their vehicles. The office also conducted traffic awareness programs that reached more than 231,000 people. During the fiscal year, Surkhet recorded 957 road accidents, resulting in 37 deaths. Shahi identified speeding as the leading cause of accidents, along with mechanical failures, pedestrian negligence, poor road conditions, adverse weather, and stray animals.
Tourism minister calls for timely amendment of Tourism Bill
Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel has stressed the need to amend the Tourism Bill on time to better support the development of Nepal’s tourism sector. Speaking at a meeting of the House of Representatives’ International Relations and Tourism Committee, he said the bill should address emerging areas such as modern trekking routes, wellness tourism, and cultural adventure tourism. Committee Chair Sumnima Udas and lawmakers including Jagadish Kharel and Ganesh Bahadur Bishwakarma also called for broader consultation with tourism stakeholders before finalizing the bill.
Hilsa residents depend on costly Chinese SIM cards
Residents, security personnel, and government officials in Hilsa near the Nepal-China border continue to rely on expensive Chinese mobile SIM cards because Nepal Telecom services are not available in the area. Monthly expenses for communication and internet services are reported to range between Rs 4,000 and Rs 5,000, creating a significant financial burden for people living in the remote border settlement. Officials have urged domestic telecom providers to speed up the installation of planned communication towers to improve connectivity.
NRB amendment bill seeks legal recognition for digital currency
A proposed amendment to the Nepal Rastra Bank Act, 2002, would recognize Central Bank Digital Currency (CBDC) as legal tender while excluding privately issued cryptocurrencies and other virtual currencies. During clause-wise discussions in the House of Representatives Finance Committee, Nepal Rastra Bank Executive Director Dirgha Rawal said the amendment applies only to CBDC and that private crypto-related issues are already covered by anti-money laundering laws. Finance Secretary Ghanashyam Upadhyay proposed defining digital currency specifically as currency issued or designated by the central bank. The amendment would expand the legal definition of currency beyond banknotes and coins to include central-bank-issued digital money.
Dubai consulate seeks law firms for compensation cases involving Nepali workers
The Consulate General of Nepal in Dubai has invited expressions of interest from licensed law firms in the United Arab Emirates to represent Nepali workers in compensation-related cases across Dubai and the Northern Emirates. The selected firms will handle cases involving deaths, workplace and road accidents, injuries, employer liability, and enforcement of compensation claims. The arrangement will operate on a “No Win, No Fee” basis. Applications must be submitted electronically by 5:00 pm UAE time on August 19.
Jhapa completes 94 percent of paddy plantation
Paddy plantation in Jhapa district has reached about 94 percent of the total cultivable area, according to the Agricultural Knowledge Center. Information Officer Chet Raj Bhandari said plantation work has entered its final phase, with municipalities such as Damak and Kankai achieving 98 percent completion, while Gauriganj has reached 85 percent. Favorable monsoon rainfall allowed farmers to carry out timely cultivation across the 75,459 hectares designated for rice production.
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