KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments outlined reflect a mixed but cautiously stabilizing economic landscape in Nepal, marked by moderate investor confidence, shifting consumption patterns, and ongoing institutional efforts to strengthen economic governance. The modest rise in the NEPSE index alongside broad-based sectoral gains suggests improving market sentiment, even as investors continue to favor select sectors. The sharp increase in gold and silver prices points to continued demand for safe-haven assets, possibly reflecting lingering uncertainty. At the same time, the rapid expansion of housing loans—driven by accommodative monetary policy—contrasts with weak credit demand in productive sectors, highlighting structural imbalances in lending. Falling egg prices underscore pressures faced by agricultural producers amid oversupply and soft demand, while strong revenue performance by the Bhairahawa tax office signals resilience in fiscal collection, largely supported by excise duties. Contributions to the reconstruction fund following the Gen Z movement indicate growing private-sector participation in recovery efforts. Meanwhile, the announcement of the second National Economic Census and new leadership appointments in the banking sector point to longer-term efforts to improve data-driven policymaking, institutional capacity, and financial sector governance.
NEPSE gains nearly 29 points in Monday’s trading
The benchmark Nepal Stock Exchange (NEPSE) index advanced by 28.73 points on Monday to close at 2,639.37, registering a modest gain of 0.10 percent. A total of 12,459,951 shares of 335 listed companies were traded through 84,990 transactions, generating a turnover of Rs 6.47 billion. All sectoral indices ended the day in positive territory. The Production and Processing sector led the gains with a rise of 3.05 percent, followed by Development Banks (2.70 percent) and Hotels and Tourism (2.53 percent). Banking rose by 0.67 percent, Finance by 0.83 percent, Life Insurance by 0.49 percent, Hydropower by 1.14 percent, Investment by 1.25 percent, Microfinance by 0.53 percent, Mutual Funds by 0.43 percent, Non-life Insurance by 0.57 percent, Trading by 0.22 percent, and Others by 0.73 percent.
Gold and silver prices jump in domestic market
Gold prices climbed sharply in the Nepali market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 4,600 per tola, reaching Rs 265,000 per tola. The previous day, gold had traded at Rs 260,400 per tola after falling by Rs 2,100. Silver prices also increased, rising by Rs 185 per tola.
Rs 133.5 million deposited in govt reconstruction fund after Gen Z movement
The government-established fund for the restoration of physical infrastructure damaged during the September 8–9 Gen Z movement has so far received Rs 133.5 million. Ministry of Finance Spokesperson Tanka Prasad Pandeya said that Rs 133,565,000 had been deposited in the fund as of Monday morning. Siddhartha Premier Insurance Limited contributed Rs 10.1 million to the fund on Monday under its institutional social responsibility programme. Earlier, MetLife Nepal donated Rs 2.5 million, while Oriental Insurance had contributed Rs 2 million. The fund was created in the aftermath of arson and vandalism during the Gen Z movement and seeks support from the public, private sector, non-resident Nepalis, development partners, and donor agencies. The government has also allowed contributors to deduct such donations while calculating taxable income for the current fiscal year. Contributions can be deposited at Rastriya Banijya Bank, account number 1960100102070004.
Egg prices cut by Rs 90 per crate
Egg prices have been reduced following a decision by the Nepal Layers Poultry Association. The association announced a Rs 90 reduction per crate at the farm level, effective today. With the revision, the farm price of large eggs (30 pieces) has dropped from Rs 565 to Rs 475 per crate, while medium-sized eggs now cost Rs 460 per crate, down from Rs 550. Association Chairman Binod Pokhrel said the support price is determined based on rates set by large producers, leading to a reduction in retail prices from around Rs 25 to Rs 20 per egg. Pokhrel explained that higher production and lower consumption have put downward pressure on prices, though demand is expected to recover as winter ends and daily activity normalizes. He warned that further price drops could hurt farmers, noting that production costs currently stand at Rs 19.12 per egg, or Rs 574.06 per crate.
Siddhartha Premier Insurance contributes Rs 10.1 million to reconstruction fund
Siddhartha Premier Insurance Limited has donated Rs 10.1 million to the Government of Nepal’s Physical Infrastructure Reconstruction Fund to support rebuilding efforts following damage caused during the September 8–9 Gen Z movement. At a program held at the Ministry of Finance, the company’s Board Chairman Sureshlal Shrestha handed over the cheque to Finance Minister Rameshwar Prasad Khanal. Senior ministry officials, company directors, and the chief executive officer were present at the event. Finance Minister Khanal thanked the company for its contribution. Chairman Shrestha said the support reflected the company’s sense of national responsibility, noting that Siddhartha Premier Insurance had also contributed Rs 5.1 million last year to the Prime Minister’s Relief Fund for flood and landslide victims. He added that insurance claims totaling Rs 1.92 billion related to damages from the Gen Z movement have already been settled.
Housing loans expand rapidly amid weak credit demand elsewhere
While credit demand in most business and productive sectors remains subdued, lending for personal housing has surged sharply. Loans issued for home purchases by 54 banks and financial institutions have approached Rs 500 billion. Nepal Rastra Bank data show that by the end of Kartik, total loans stood at Rs 5.633 trillion, of which Rs 442.14 billion was allocated to personal housing—an increase of Rs 44.9 billion compared to the same period last year. In the previous fiscal year, housing loans totaled Rs 397.23 billion. The central bank attributed the rise largely to changes in monetary policy that doubled the personal housing loan ceiling from Rs 15 million to Rs 30 million. Commercial banks accounted for the bulk of lending, with Rs 343.41 billion disbursed for housing purposes by the end of Kartik.
Market inspections continue in Kathmandu and Lalitpur
The Department of Commerce, Supplies and Consumer Protection has continued market inspections in Kathmandu and Lalitpur, inspecting a total of 17 firms. During the inspections, the Department imposed a fine of Rs 10,000 on Yubaraj Trade and Suppliers, located in Gairigaun, Kathmandu. The action was taken in accordance with Section 39(A) of the Consumer Protection Act, 2075 BS, for violations of Sections 15 and 38(D) of the same Act. The Department also took directive action against 16 other firms. It said regular monitoring and inspections are being carried out in coordination with local administrations and public representatives to ensure cleanliness, fairness, and consumer protection in the market.
Second National Economic Census to begin in mid-March
The government is set to launch Nepal’s second National Economic Census, 2025, from mid-March, with data collection continuing until mid-July. The National Statistics Office announced the schedule while unveiling the census logo and theme at a formal program. The census, to be conducted from March 15 to July 16 under the theme “Economic Census for Measuring the Economy,” aims to generate a comprehensive statistical picture of the country’s economic landscape. Office Spokesperson and Deputy Chief Statistician Dhundiraj Lamichhane said the findings would be released in phases starting from the fiscal year 2026/27. He emphasized that the census is a critical initiative to collect reliable baseline data needed for economic policymaking, planning, and development strategies. The exercise will gather information on the number, nature, investment levels, employment, production, and service delivery of industries, businesses, cooperatives, and both private and public institutions.
Bhairahawa Tax Office surpasses revenue target
The Internal Revenue Office in Bhairahawa has exceeded its revenue collection target for the first five months of the current fiscal year. The office collected Rs 6.50 billion, achieving 121.1 percent of its target of Rs 5.36 billion. Chief Tax Officer Premraj Pokhrel said the office had collected Rs 4.51 billion during the same period last fiscal year. Excise duty accounted for nearly 80 percent of the total revenue. More than 82,000 business taxpayers fall under the jurisdiction of the Bhairahawa office.
Ram Krishna Khatriwada named Independent Director of NIC Asia Bank
Former Nepal Infrastructure Bank CEO Ram Krishna Khatriwada has been appointed as an independent director of NIC Asia Bank for a four-year term. The decision was taken by the bank’s Board of Directors, according to a statement issued on Monday. A CFA and Chartered Economist, Khatriwada brings over two decades of experience in banking, infrastructure finance, energy regulation, project development, and public–private partnerships. He has previously served as CEO and director of Nepal Infrastructure Bank and held senior roles at institutions including the Electricity Regulatory Commission, NIBL Ace Capital, HIDCL, and the Investment Board Nepal.
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