KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
KATHMANDU: The day’s economic developments reflect mixed signals across financial markets, trade, and macroeconomic management in Nepal. While NEPSE declined despite higher trading turnover, indicating profit-taking and weak investor sentiment, liquidity conditions prompted Nepal Rastra Bank to absorb Rs 70 billion from the banking system to stabilize excess cash.
Commodity prices of gold and silver also fell, reinforcing subdued short-term market trends. In contrast, structural indicators show resilience, with private sector dominance in hydropower investment surpassing Rs 1.3 trillion and strong revenue collection in customs offices such as Nepalgunj. However, external trade pressures persist, particularly in tea exports facing stricter Indian testing rules, while shifts in agricultural imports suggest changing consumption patterns.
Meanwhile, policy and infrastructure adjustments—including fare regulation in Gandaki, electricity demand pressures in Bharatpur, and regulatory reforms in energy governance—highlight ongoing state intervention to manage mobility, energy, and institutional transitions. Overall, the economic landscape shows a balance between short-term market volatility and longer-term investment-driven growth.
NEPSE declines by 11.37 points despite higher turnover
The Nepal Stock Exchange (NEPSE) index dropped 11.37 points, or 0.41 percent, on Friday to close at 2,755.41. The sensitive index also slipped 1.77 points to 471.99. Despite the decline, trading activity increased, with daily turnover reaching Rs 5.625 billion compared to Rs 4.703 billion in the previous session. A total of 12.73 million shares of 351 listed companies changed hands through 55,467 transactions. Market sentiment remained negative, with 184 stocks declining, 74 advancing, and 11 remaining unchanged. Among the 13 sectoral indices, only finance and mutual funds, along with two other sectors, posted gains.
Gold and silver prices decline in domestic market
Prices of both gold and silver fell in the domestic market on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 2,100 per tola to Rs 309,000, down from Rs 311,100 on Thursday. Silver also recorded a decline, falling by Rs 55 per tola to Rs 5,230 from the previous day’s Rs 5,285.
NRB absorbs Rs 70 billion in excess liquidity
Nepal Rastra Bank (NRB) withdrew Rs 70 billion from the banking system on Friday through a liquidity absorption operation aimed at managing excess cash in the financial sector. The auction was open to Class ‘A’, ‘B’, and ‘C’ financial institutions, with bids starting at Rs 100 million and increasing in multiples of Rs 50 million. The deposit instrument has a maturity period of 77 days, with both principal and interest set to be repaid on August 21.
TIA extends free pick-up and drop-off period to 15 minutes
Tribhuvan International Airport (TIA) has extended the fee-free pick-up and drop-off period for passenger vehicles from seven minutes to 15 minutes. Airport authorities introduced the change following complaints that the previous time limit was too short and often resulted in unnecessary parking fees. The revised arrangement is expected to ease traffic congestion around the terminal area and improve passenger convenience.
Nepalgunj customs collects Rs 16.74 billion in revenue
The Nepalgunj Customs Office collected Rs 16.739 billion in revenue by mid-May, achieving 68.2 percent of its annual target of Rs 24.545 billion. To meet its fiscal goal, the office must collect the remaining 32 percent during the final two months of the fiscal year. Revenue performance has remained relatively strong throughout the year, with monthly achievement rates generally exceeding 70 percent and reaching as high as 98.37 percent in April.
Tea exports face delays as Indian testing rules tighten
Nepal’s tea exports have encountered fresh disruptions after Indian authorities reinstated mandatory 100 percent testing of imported tea consignments. More than 50,000 kilograms of orthodox tea are currently stranded at Kolkata Port while awaiting laboratory clearance. Although shipments briefly resumed on May 19 after a 19-day halt, stricter inspection requirements have once again slowed trade. Nepal produces around 27,000 tonnes of processed tea annually, with between 90 and 95 percent exported to India. Importers are also required to pay INR 11,120 per sample test in addition to applicable taxes.
Private sector investment in power projects exceeds Rs 1.3 trillion
Private investors have committed more than Rs 1.31 trillion to Nepal’s electricity sector, accounting for around 80 percent of the country’s installed power generation capacity. Independent power producers (IPPs) currently generate approximately 3,500 megawatts out of Nepal’s total installed capacity of 4,200 megawatts. Of the total investment, Rs 870 billion has been financed through banks and financial institutions, while Rs 440 billion comes from private equity. The sector is estimated to employ over three million people and contributes more than Rs 25 billion annually in government revenue.
Italy emerges as top destination for Nepali pickles
Italy has overtaken Australia to become the largest export market for Nepali pickles during the first 10 months of fiscal year 2025/26. According to customs data, Nepal exported more than 390 tonnes of pickles worth Rs 196.4 million worldwide during the review period. Exports to Italy totaled approximately 57 tonnes valued at Rs 37.3 million, representing a sharp increase of more than 233 percent compared to the previous year.
Gandaki fixes fare structure for ride-sharing services
The Gandaki Province government has introduced official fare rates for ride-sharing platforms under the Ride Sharing Second Amendment Regulation 2026. The regulation sets the minimum fare for four-wheelers at Rs 157 and for two-wheelers at Rs 46.50. Four-wheelers will charge a base fare of Rs 60 plus Rs 97 for the first two kilometres, followed by Rs 48.50 per additional kilometre, up to a maximum distance of 50 kilometres. Two-wheelers will charge a Rs 30 base fare and Rs 16.50 per kilometre. The regulation also provides fare discounts for petroleum and electric vehicles.
Birgunj reports decline in paddy and maize imports
Imports of paddy and maize through the Birgunj Customs Office fell during the first 10 months of the current fiscal year, while imports of processed grains increased. Paddy imports declined to 272,200 tonnes worth Rs 10.94 billion, compared to 292,500 tonnes valued at Rs 11.36 billion during the same period last year. Maize imports also decreased significantly. In contrast, imports of processed rice, wheat, and broken rice registered growth, indicating a shift in demand toward processed food products.
Power demand puts pressure on Bharatpur distribution network
The Nepal Electricity Authority’s Bharatpur Distribution Branch has urged consumers to minimize unnecessary electricity use as rising temperatures continue to push up power demand. Increased consumption has placed pressure on substations, transformers, and distribution lines, causing voltage fluctuations and occasional outages. The Bharatpur network currently serves around 75,000 customers and records peak daily demand of about 65 megawatts, while infrastructure upgrades under the Grid Substation Automation Project are ongoing.
Govt forms joint committee to investigate seized electric vehicles
The Office of the Prime Minister and Council of Ministers has directed the formation of a joint investigation committee to examine 779 electric vehicles seized on suspicion of customs duty evasion. The committee includes representatives from the Ministry of Finance, the Department of Customs, Nepal Police, and the Armed Police Force (APF). Authorities reported that 775 vehicles were intercepted at the Korala border point in Mustang, while four others were seized in Nuwakot and Dhading. Officials have clarified that vehicles carrying valid customs documentation continue to move through checkpoints without obstruction.
Energy ministry begins process to appoint regulatory commission officials
The Ministry of Energy, Water Resources and Irrigation has formed a three-member recommendation committee to recruit new leadership for the vacant Electricity Regulatory Commission. The committee is headed by Ministry Secretary Chiranjivi Chautaut and includes Joint Secretary Sagar Raj Gautam and energy expert Satish Narayan Joshi. A 15-day application period has attracted 10 candidates for the chairperson’s post and 22 applicants for commission member positions. The vacancies arose following the implementation of the Special Provisions on De-seating of Public Officials Ordinance 2026.
Himalaya Airlines launches direct Kathmandu–Shenzhen flights
Himalaya Airlines has become the first carrier to operate direct scheduled flights between Kathmandu and Shenzhen. The inaugural flight departed Tribhuvan International Airport on June 4 and arrived in Shenzhen the following day, while the first return service landed in Kathmandu on June 5. The route is being served by a 180-seat Airbus A320 aircraft, with two round-trip flights scheduled each week. The airline said the service will strengthen tourism, trade, and business links between Nepal and one of China’s major economic and technology centres.
Jyoti Capital to underwrite Peoples Energy IPO
Peoples Energy Limited has appointed Jyoti Capital as the underwriter for its upcoming initial public offering (IPO). Under the agreement, Jyoti Capital will guarantee the subscription of 6.6 million ordinary shares to be offered to the public. The shares will be issued at a face value of Rs 100 each, making the total public offering worth Rs 660 million. The agreement was signed in Kathmandu by Jyoti Capital Chief Executive Officer Bikas Dhakal and Peoples Energy General Manager Janardan Aryal.
Daraz Nepal announces leadership transition
Daraz Nepal Managing Director Anchal Kunwar has stepped down after four and a half years in the role. During her tenure, the company’s business volume doubled, while its customer base expanded to more than three million users. Daraz’s logistics network now operates through 140 service points and supports around 24,000 sellers. Ben Yi, currently Managing Director of Daraz Bangladesh and Group Chief Commercial Officer, has been appointed Acting Managing Director. Ratish Luitel will assume the role of Chief Commercial Officer. The leadership changes will take effect from July 1, while Kunwar will continue as an advisor until the end of 2026.
Comment