KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The past week’s economic developments reflect a complex interplay between financial instability, reform-driven governance, and structural shifts in key sectors of Nepal’s economy. A sharp decline in the NEPSE index—despite high turnover—signals fragile investor confidence and a broadly bearish market sentiment, reinforced by widespread losses across companies and sectors.
In contrast, stable gold and silver prices suggest a cautious wait-and-watch approach among investors amid global uncertainty. At the policy level, the government appears to be accelerating reforms, from aggressive crackdowns on illegal online betting platforms to liquidity management by Nepal Rastra Bank, indicating tighter regulatory oversight and macroeconomic stabilization efforts.
Simultaneously, forward-looking initiatives—such as the proposed 100 MW pumped storage hydropower project and the establishment of a one-stop investor service desk—highlight attempts to boost energy security and improve the investment climate. However, structural challenges persist: declining sugar production due to raw material shortages, weak cooperative transparency, and supply-side constraints in agriculture point to deeper inefficiencies.
Micro-level successes, such as high-yield potato farming, show pockets of productivity but remain exceptions rather than the norm. Rising egg prices and resumed farmer registration further reflect both inflationary pressures and efforts to formalize agricultural support systems. Meanwhile, global geopolitical tensions are increasingly shaping trade dynamics, raising costs and risks for a landlocked economy like Nepal. Overall, the week underscores a transitional phase—where strong reform intent and sectoral innovation coexist with systemic vulnerabilities, uncertain market confidence, and externa
NEPSE drops 105.50 points as turnover crosses Rs 12.38 billion
The benchmark index of the Nepal Stock Exchange (NEPSE) fell by 105.50 points on Sunday. With a total turnover of Rs 12.38 billion, the NEPSE Index declined to 2,676.68 points by the end of trading. Among the companies traded during the session, share prices of 261 companies declined while only seven companies posted gains. Shares of Reliance Spinning Mills recorded the highest increase during the day’s trading, while Narayani Development Bank saw the biggest drop in share price. Following the market decline, sub-indices of all trading groups also closed in negative territory.
Gold and silver prices remain unchanged in local market
Gold and silver prices remained stable in the domestic market, continuing a trend observed since last week. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold is priced at Rs 294,000 per tola, while silver stands at Rs 4,830 per tola. In the international market, gold is trading at USD 4,676 per ounce and silver at USD 73 per ounce.
100 MW pumped storage hydropower project proposed in Makwanpur
Preparations are underway to develop a 100 MW pumped storage hydropower project in Makwanpur. The Nepal Electricity Authority (NEA) is advancing plans for the Kulekhani–Sisneri project in Indrasarovar Rural Municipality. The initiative aims to reduce electricity imports from India during the dry winter months. Under the project, water from the Kulekhani reservoir will be used to generate electricity and then pumped back into the reservoir, creating a closed-loop system. The NEA has invited public feedback to define the scope of the Environmental Impact Assessment (EIA) and has begun consultations in the affected wards—1, 2, and 3—of the rural municipality. Discussions have focused on potential impacts on settlements, infrastructure, the local economy, society, and the environment, along with mitigation measures. The project is expected to supply electricity for 6 to 10 hours daily during peak demand periods.
Nepal Rastra Bank absorbs Rs 40 billion to manage excess liquidity
Nepal Rastra Bank has collected Rs 40 billion in deposits for 56 days to manage excess liquidity in the financial system. The central bank continues to use deposit collection tools and standing deposit facilities to regulate liquidity and stabilize interest rates. Only ‘A’, ‘B’, and ‘C’ class financial institutions licensed by the bank are eligible to participate in the bidding process. Allocation will prioritize bids offering lower interest rates. The principal and interest will be repaid on May 10, 2026.
Over 7,000 online betting platforms shut down
More than 7,000 online betting applications and websites have been blocked as part of the government’s governance reform measures. The Nepal Telecommunications Authority (NTA), in coordination with internet service providers, carried out the shutdown. According to NTA Deputy Director Surya Prasad Lamichhane, service providers were instructed to identify and disable illegal gambling platforms. The move aligns with the Cabinet-approved 100-point reform plan on March 27, which includes a provision to shut down betting-related platforms within 24 hours. Authorities have confirmed that all identified platforms have been immediately disabled.
Government accelerating reform efforts, says finance minister
Finance Minister Dr. Swarnim Wagle has stated that the government is fast-tracking reform initiatives. Speaking at a pre-budget interaction organized by the Birgunj Chamber of Commerce and Industry, he said the administration is working with the urgency emphasized by Prime Minister Balendra Shah. He noted that federal ministries are competing to improve performance and that efforts are being made to build confidence among industrialists and business leaders. The minister added that concerns raised by the private sector are being addressed. He also highlighted that recommendations from a high-level economic reform report led by Rameshore Prasad Khanal are being implemented, including the scrapping of outdated laws and restructuring of the Department of Revenue Investigation.
Banke farmer produces 800 quintals of potato seeds
Jaypal Maurya, a farmer from Duduwa Rural Municipality-6 in Banke, has produced 800 quintals of potato seeds this year. The 43-year-old, a recipient of the President’s Farmer Award, cultivated potatoes on 101 katthas of land. Maurya attributed the high yield to the use of the improved ‘Cardinal’ variety. He has stored the produce in a cold storage facility built by the local government. With an investment of around Rs 500,000, he expects to earn approximately Rs 1.2 million, with seeds selling at Rs 35 to Rs 55 per kilogram during the planting season.
Policy reforms to drive energy sector growth, says minister Shrestha
Minister for Energy, Water Resources, and Irrigation Biraj Bhakta Shrestha has emphasized policy reforms to accelerate energy sector development. Speaking at a meeting with the Nepal-India Chamber of Commerce and Industry (NICCI), he highlighted both opportunities and challenges in the sector. He stressed the need to align electricity production with domestic and industrial demand to support economic growth. The minister also said the government will encourage greater private sector participation and create a supportive policy environment for energy development.
Egg prices increased by Rs 15 per crate
The Nepal Layer Poultry Association has raised egg prices by Rs 15 per crate, effective immediately. The decision was made by the association’s executive committee. In addition, transportation and packaging costs have increased. The cost of transporting eggs from Chitwan to distribution centers has risen by Rs 5, bringing the total to Rs 145 per unit.
Ministry resumes farmer registration after five-month halt
The Ministry of Agriculture and Livestock Development has restarted farmer registration after a five-month suspension caused by technical issues. The system provides farmers with ID cards, subsidies, and access to agricultural services. The ministry has resumed efforts to include 1.737 million farmers, with plans to register all remaining farmers soon. According to the 2021 Agriculture Census, 2.393 million out of 4.13 million farmers have already been registered. The Agriculture Information and Training Center has urged farmers to register through local authorities.
Samsung launches Galaxy A57 5G and A37 5G in Nepal
Samsung Nepal has introduced the Galaxy A57 5G and Galaxy A37 5G smartphones in the Nepali market. Pre-orders are open from April 5 to 18. The devices feature advanced AI tools, including voice transcription, AI-based selection tools, and object removal for photos. They also support Google’s Circle to Search and enhanced Gemini AI. Both models include a 50 MP triple-camera setup and low-light photography features. The phones run on One UI 8.5 and offer up to six years of security and OS updates, along with IP68 protection and Samsung Knox Vault security. The Galaxy A57 5G starts at Rs 84,999, while the A37 5G is priced from Rs 64,999. EMI options are also available.
Businessman Sulav Agrawal detained for investigation
Businessman Sulav Agrawal has been taken into custody by the Department of Money Laundering Investigation for questioning. Director General Gajendra Thakur confirmed that Agrawal is being investigated. He is a director of the Shanker Group. His father, Shanker Agrawal, was also arrested earlier and remains under investigation in connection with the same case.
IBN establishes investor facilitation and grievance desk
The Investment Board Nepal (IBN) has set up an investor facilitation and grievance handling desk to improve service delivery. The initiative is part of efforts to operationalize a One-Stop Service Centre (OSSC). According to Joint Secretary Hem Raj Tamang, the Board is working toward launching the OSSC in a digital format. The newly established desk serves as an initial step toward creating a more investor-friendly environment. It will allow investors to access information, raise concerns, and lodge complaints. In coordination with the Office of the Prime Minister and Council of Ministers, IBN has outlined a work plan that includes submitting a proposal for one-stop service delivery, preparing for the OSSC’s establishment, coordinating with relevant government agencies, and developing an online service portal. The Board also plans to finalize procedural guidelines and ensure budget allocation for implementation.
Sugar output declines in Mahottari amid raw material shortage
Sugar production in Mahottari, a major sugarcane-producing district, has declined due to insufficient supply of raw materials. Everest Sugar Mill in Ramnagar reported that it failed to meet its production target in the 2025/26 crushing season. The mill processed 2,853,178 quintals of sugarcane, producing 261,738 quintals of sugar—lower than previous years. Production stood at 270,588 quintals in 2023/24 and 264,591 quintals in 2024/25. Although the target for this season was to process over 3.1 million quintals of sugarcane and produce around 279,000 quintals of sugar, a shortfall of approximately 200,000 quintals of raw material led to a production gap of about 18,000 quintals.
Nearly half of Kathmandu cooperatives fail to submit reports
Around 50 percent of cooperatives operating under Kathmandu Metropolitan City (KMC) have not been submitting regular reports, raising concerns over transparency and governance. Out of nearly 1,900 cooperatives, only 723 have consistently submitted annual reports, according to the KMC Cooperatives Department. Authorities say irregular reporting indicates potential mismanagement within these institutions. The Metropolis has repeatedly urged compliance and warned that legal action will be taken against non-compliant cooperatives. These institutions have been instructed to conduct annual general meetings and submit audit reports, AGM decisions, and annual statements to the concerned department.
Geopolitics reshaping global trade patterns, experts say
Rising geopolitical tensions, particularly in West Asia, are increasingly influencing global trade flows, shifting the focus from economic fundamentals to political risks. Experts note that disruptions around key maritime routes such as the Strait of Hormuz and the Red Sea have heightened concerns over supply chain stability, freight costs, and delivery timelines. With nearly 80 percent of global trade transported by sea, these chokepoints have become critical pressure points. Freight costs on major routes have reportedly increased by 30 to 50 percent, while shipping delays of up to two weeks are becoming more common. Analysts say the evolving risk landscape has made political risk insurance an essential tool for businesses engaged in global trade.
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