KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The news reflects a government strongly focused on economic reform, infrastructure development, and governance improvement during its first 100 days, while seeking to accelerate Nepal’s economic recovery. Key priorities include fiscal and administrative reforms, stronger economic diplomacy, closer engagement with international partners such as the IMF and ADB, and policies to encourage investment, employment, and private sector growth.
Simultaneously, progress in major transport, irrigation, tourism, and agricultural projects demonstrates an emphasis on improving productivity and connectivity, although implementation delays and market inefficiencies remain challenges. The reports also highlight continued efforts to strengthen public service delivery, law enforcement, and financial accountability, alongside initiatives to leverage diaspora engagement and entrepreneurship for long-term development.
Overall, the developments suggest a reform-oriented policy direction that combines institutional restructuring, infrastructure expansion, and investment promotion with measures to enhance governance and economic resilience.
Finance Ministry highlights economic reforms in first 100 days
The Ministry of Finance has published its 100-day progress report, outlining major policy reforms, institutional restructuring, and measures aimed at strengthening economic governance. Led by Finance Minister Dr. Swarnim Wagle, the ministry advanced an economic reform agenda focused on recovery and improved governance. Among the key decisions were plans to repeal 15 obsolete laws based on recommendations from the High-Level Economic Reform Suggestion Commission. The ministry also dissolved the Department of Revenue Investigation as part of administrative restructuring, delegated authority over capital expenditure transfers to line ministry secretaries, prepared major fiscal bills for the upcoming fiscal year, and amended customs, income tax, and excise regulations.
Gold and silver prices decline slightly
Gold and silver prices in the domestic market recorded a slight decline on Sunday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of hallmark gold fell by Rs 400 per tola to Rs 290,300 from Rs 290,700 on Friday. Similarly, silver dropped by Rs 10 per tola, with the price decreasing to Rs 4,605 from Rs 4,615. The association said the adjustment reflects a modest downward trend in Nepal’s precious metals market.
PM Shah to hold first one-on-one meeting with foreign dignitary
Prime Minister Balendra (Balen) Shah is set to hold his first exclusive meeting with a foreign dignitary on Tuesday, when he receives Asian Development Bank (ADB) President Masato Kanda at Singha Durbar. Kanda, who is scheduled to arrive on Monday, will sign a bilateral assistance agreement and also hold separate meetings with Foreign Minister Shisir Khanal and Finance Minister Dr. Swarnim Wagle before attending an official welcome dinner. Since assuming office, Prime Minister Shah has refrained from holding one-on-one meetings with foreign officials, opting instead for collective diplomatic briefings to reinforce the Ministry of Foreign Affairs’ leading role in shaping Nepal’s foreign policy. He had previously declined separate meeting requests from senior envoys of the United States and India.
Foreign Ministry outlines economic diplomacy achievements in first 100 days
The Ministry of Foreign Affairs has highlighted economic diplomacy, governance reforms, and improved public services among the key achievements of the government’s first 100 days. According to the ministry, efforts have focused on making foreign services more transparent, efficient, and technology-driven. Major initiatives include launching the MoFA mobile application for Nepalis living abroad, expanding online legal consultation services, and rescuing 819 Nepalis who were victims of online scams in Southeast Asia.
The ministry also facilitated the repatriation of Nepalis from conflict-affected regions, improved passport services, strengthened labour diplomacy with 13 countries, and prioritised economic cooperation, trade, investment, tourism, and diaspora engagement to support national development.
IMF delegation concludes Nepal visit after economic reform talks
A high-level delegation from the International Monetary Fund (IMF), led by Asia and Pacific Department Deputy Director Dr. Sonali Jain-Chandra, has concluded its visit to Nepal following discussions on the country’s economic outlook and reform agenda. During the visit, the delegation met Finance Minister Dr. Swarnim Wagle, Nepal Rastra Bank Governor Dr. Bishwo Poudel, National Planning Commission Vice-Chair Dr. Gunakar Bhatta, and members of the House Finance Committee.
The discussions focused on sustaining economic growth, creating jobs, advancing structural reforms, and reviewing progress under the Extended Credit Facility programme. The IMF said the visit reaffirmed its continued partnership with Nepal.
Minister calls for faster progress on Rs 52.89 billion Sikta Irrigation Project
Minister for Energy, Water Resources and Irrigation Viraj Bhakta Shrestha has instructed officials and contractors to accelerate construction of the Sikta Irrigation Project, expressing concern over delays in the national pride project in Banke. During an on-site inspection, the minister urged timely completion of the project, which has an estimated cost of Rs 52.89 billion and aims to provide year-round irrigation to 427.66 million square metres of farmland across several local units in Banke.
The project has so far achieved around 50.5 percent physical progress and 45.53 percent financial progress, with irrigation facilities already extended to approximately 250 million square metres of agricultural land. The minister also pledged to address legal and administrative obstacles to ensure completion by the fiscal year 2032/33.
Stakeholders urge timely monetary policy to support economic recovery
Former governors of Nepal Rastra Bank, banking leaders, and private sector representatives have called on the central bank to introduce a timely monetary policy that supports economic recovery. Speaking before the House Finance Committee, they stressed the need for better coordination between fiscal and monetary policies while maintaining the central bank’s independence. They argued that stable inflation and a strong external sector provide room for an accommodative monetary policy instead of tighter interest rates.
Participants also recommended establishing an Asset Management Company to address rising non-performing loans, easing selected banking regulations, and adopting measures to increase credit flow, private investment, production, and employment.
Agriculture Department launches seed programme to strengthen climate-resilient rice production
The Department of Agriculture has launched a foundation and source seed production programme in 58 local levels across 18 districts to improve farmers’ access to quality seeds. Implemented through federal conditional grants, the initiative focuses on producing improved, high-yield seed varieties. Director General Prakash Kumar Sanjel said priority has been given to climate-resilient rice varieties and modern farming techniques, including Direct Seeded Rice (DSR), Alternate Wetting and Drying (AWD), and rainwater harvesting.
The programme also promotes hybrid rice cultivation, mechanisation under the Prime Minister Agriculture Modernization Project (PMAMP), subsidies for Chaite paddy cultivation, and new rice-based commercial farming projects in eight local levels.
Sudurpashchim Chief Minister, former FNCCI president discuss investment and industrial projects
Sudurpashchim Province Chief Minister Kamal Bahadur Shah and former Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Dhakal have held discussions on promoting investment, industrial development, and infrastructure projects in the province. According to the Chief Minister’s Secretariat, the meeting focused on accelerating construction of the Jalpadevi Cable Car Project in Chisapani, Kailali, and exploring the establishment of a cement factory in the Satbanjh-Dharmaghar area of Surnaya Rural Municipality in Baitadi. Chief Minister Shah reaffirmed the provincial government’s commitment to encouraging private investment and strengthening public-private partnerships to accelerate regional economic growth.
More than 1,800 drivers penalised for traffic violations in Kathmandu Valley
Traffic police took action against 1,813 drivers across the Kathmandu Valley over the past 24 hours for violating traffic regulations, collecting more than Rs 500,000 in fines. According to the Kathmandu Valley Traffic Police Office, violations included drunk driving (9), illegal ride-sharing (105), running red lights (119), speeding (115), lane discipline violations (102), unnecessary honking (79), roadside parking offences (117), and driving on one-way roads (65). An additional 1,110 drivers were penalised for various other traffic-related offences.
Government plans to develop Korala road into a tourist highway
Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel has announced plans to upgrade the Korala road under the Kaligandaki Corridor into a dedicated tourist highway. Speaking at a tourism interaction programme in Mustang on Sunday, the minister said the road linking Bhairahawa to Korala would be improved to strengthen tourism and promote economic development. He also identified the Mustang–Dolpa road as one of the government’s priority infrastructure projects. Referring to the increasing number of altitude sickness cases around Muktinath, Paudel proposed introducing a tourist time-card system to better manage visitor movement and improve safety.
Dharapani–Takam–Jhindanda road upgrade completed in Myagdi
The Gandaki Province Government has completed the upgrading of the Dharapani–Takam–Shiwang–Jhindanda section of the Darbang–Muna–Dhorpatan road project in Myagdi. According to the Infrastructure Development Office, the six-kilometre road section in Dhaulagiri Rural Municipality-7 includes concrete paving, blacktopping, and gravel surfacing. Officials said the project was completed on schedule, with only final payments and routine maintenance remaining. The contract, worth Rs 146.1 million, was awarded to Ramsagar BK–SKBS Dhaulagiri JV. The road is expected to improve regional connectivity and shorten travel distances for local residents by around 70 kilometres as an alternative route to the Mid-Hill Highway.
Motorable bridge over Sawa Khola opens in Khotang
A newly constructed concrete motorable bridge over the Sawa Khola in Khotang has been completed and opened to traffic, improving year-round transport along the Khotang–Papmakham Bhanjyang road. Built with a federal government grant of Rs 30.77 million, the 20.9-metre bridge came into operation on Saturday, ensuring uninterrupted vehicle movement even during the monsoon season. Meanwhile, upgrading and blacktopping work continues on the 33-kilometre Khotangbazar–Papmakham Bhanjyang road with financial support of Rs 20 million from the Koshi Province Government.
Maldaha mango prices double as supply declines, farmers see little benefit
Retail prices of Maldaha mangoes have doubled across Madhesh Province as supplies begin to decline, although farmers say the price increase has largely benefited traders rather than producers. Consumers are now paying around Rs 100 per kilogram, compared with Rs 100 for 2.5 kilograms just two weeks ago. Farmers say they are forced to sell their produce at low prices during the paddy transplantation season due to the absence of cold storage facilities, processing plants, and organised markets. They have urged the government to strengthen market regulation, improve price management, and invest in post-harvest infrastructure. Traders expect Maldaha mangoes to remain available for another 10 days before Kalkatta and Amrapali varieties arrive in the market.
APF school accountant arrested over alleged Rs 110 million embezzlement
Police have arrested Armed Police Force (APF) Inspector Kalpana Gurung, an accountant at the APF School in Kirtipur, over allegations of embezzling nearly Rs 110 million. The Kathmandu District Police Range took Gurung into custody on Saturday following a request from the APF. Police also arrested her alleged associate, Leela Bahadur Lama. Preliminary investigations indicate that money from the school’s bank account was transferred to Lama’s personal account and several private companies instead of being deposited into the APF Welfare Fund. Authorities launched an internal investigation after detecting financial discrepancies of nearly Rs 110 million. Gurung had served at the APF School for the past six years.
Two arrested in foreign employment fraud; 17 held in drug-related cases
Police have arrested two individuals accused of defrauding job seekers of Rs 3.9 million by promising overseas employment. According to the Central Police News Desk, Saroj Panta of Kavrepalanchok allegedly collected Rs 1.6 million from an unemployed youth with the promise of a job in Ireland, while Anil Khatri of Ramechhap is accused of taking Rs 2.3 million from six people by promising employment opportunities in Dubai. Both suspects have been handed over to the Department of Foreign Employment for further legal action. In a separate operation, police arrested 17 people on drug-related charges from several districts, including Kathmandu, Morang, Parsa, and Bhaktapur.
Jayanagar–Bardibas railway construction gathers pace after compensation dispute resolved
Construction of the Jayanagar–Bardibas railway project has accelerated following the resolution of a long-standing land compensation dispute. According to Nepal Railway Company, work is progressing rapidly on the remaining 18-kilometre section, with contractor IRCON International aiming to extend rail services to Bardibas within the next two years. Track-bed construction is currently underway in Dhanusha and Mahottari districts. Passenger train services have already been operating on the Jayanagar–Kurtha section since April 2022. The company has also begun reclaiming encroached railway land by verifying official route maps. Developed under Nepal–India cooperation, the cross-border railway is expected to enhance trade, connectivity, and economic activity between the two countries.
Chhimkeshwari religious forest handed over to promote eco-tourism
A community forest surrounding the Chhimkeshwari Temple in Ambukhaireni Rural Municipality-5 has been declared a religious forest and handed over to the Chhimkeshwari Tourism Committee to support eco-tourism and local economic development. The rural municipality designated 72,100 square metres of forest as the “Chhimkeshwari Religious Forest.” During a handover ceremony on Saturday, Forest Office Chief Manoj Ranabhat formally transferred its management to committee chair Krishna Tamang, highlighting the importance of tourism promotion, forest conservation, and environmental protection. Following the handover, 300 saplings were planted to strengthen conservation efforts and enhance the area’s eco-tourism potential.
Nepali Roots Summit focuses on diaspora engagement and economic cooperation
The second Nepali Roots Summit 2026 has concluded in Munich, Germany, bringing together 96 Nepalis from different cities across the country. Organised by Nepali Roots, the summit aimed to strengthen networking among Nepali entrepreneurs, researchers, students, and community leaders across Europe while promoting knowledge exchange and collaboration with Nepal. Discussions covered leadership, entrepreneurship, innovation, artificial intelligence, clean energy, and diaspora engagement. Speakers, including Nepal’s Acting Ambassador to Germany Sagar Prasad Phuyal, highlighted the growing importance of economic diplomacy and the need to utilise the expertise of the Nepali diaspora in national development. Participants also called for stronger policy coordination between Nepal and its global diaspora.
Returnee migrant builds successful traditional peda business
After spending 11 years working in Malaysia and later driving a three-wheeler in Sunsari, Mahesh Sah has built a successful business producing traditional peda in Chataraghat. Inspired by local sweet shops, Sah now specialises in the milk-based confection, using more than 120 litres of milk each day to meet growing customer demand. Improved road connectivity along the Chatara–Ghaighat–Sindhuli route and increasing online orders have significantly boosted his business. Sah now earns between Rs 70,000 and Rs 80,000 a month—almost double what he earned while working abroad—and says he is satisfied to have established a sustainable livelihood in Nepal.
FNCSI begins 26th national convention in Kathmandu
The 26th National Convention of the Federation of Nepal Cottage and Small Industries (FNCSI) has begun in Kathmandu, bringing together more than 1,000 delegates in Jawalakhel, Lalitpur. The convention has attracted micro, cottage, and small-scale entrepreneurs from across the country to review previous policies and achievements, discuss constitutional amendments, formulate future strategies, and elect new leadership. Organisers said discussions will focus on strengthening public-private partnerships, creating employment opportunities, and modernising traditional industries through technology. Speakers emphasised the important contribution of small and medium-sized enterprises to employment, entrepreneurship, and rural economic development.
Daunne section of East-West Highway nears completion
Construction of the Daunne section of the East-West Highway has reached its final stage, offering relief to commuters who have long faced travel disruptions along the route. Only about 50 metres of one-way concrete paving remains in the landslide-prone area below Daunne Temple, while one side of the road has already been opened to traffic. The Department of Roads, through the Asian Development Bank (ADB) Project Directorate, has used rigid concrete pavement instead of asphalt because of recurring landslide damage. Officials say the upgraded road is expected to last at least 30 years, and up to 40 years with proper maintenance and effective load management, significantly reducing road blockages and potholes.
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