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 policy developments presents a picture of an economy that is showing signs of activity and reform momentum, but remains constrained by deep structural weaknesses. Financial indicators reveal cautious optimism: NEPSE rebounded with improved turnover, while the sharp rise in gold prices suggests investors are still seeking safe-haven assets amid uncertainty.
Nepal Rastra Bank’s absorption of Rs 85 billion highlights persistent excess liquidity, reinforcing concerns that available funds are not being adequately channeled into productive sectors, a point also emphasized by Finance Minister Swarnim Wagle.
On the policy front, the government is pursuing modernization through the National Agricultural Policy 2026, primary market reforms, and investment-oriented institutional appointments such as the selection of Yankee Ukyab as CEO of the Investment Board Nepal. Infrastructure progress in Bharatpur and the expansion of the digital economy indicate important long-term growth drivers.
However, operational weaknesses remain evident. LPG shortages in Siraha contrast with government assurances of adequate supply, nearly Rs 2 billion in Jumla’s budget remained unspent, and rising airfares add to household and business costs. Growing jute imports despite declining domestic cultivation further expose weaknesses in agricultural competitiveness. Overall, the developments suggest Nepal is attempting structural transformation, but implementation capacity, policy coordination, and productive investment remain the decisive challenges for sustaining economic growth.
NEPSE rebounds by 4.79 points as turnover improves
The Nepal Stock Exchange (NEPSE) recovered from earlier losses on Wednesday, gaining 4.79 points to close at 2,667.97, up 0.18 percent. Daily turnover rose to Rs 4.409 billion from Rs 4.07 billion recorded on Tuesday. More than 10 million shares of 350 companies were traded through 61,286 transactions. Share prices of 122 companies increased, 143 declined, and 11 remained unchanged. Of the 13 sectoral indices, five advanced while eight fell, indicating continued mixed sentiment in the market.
Gold jumps by Rs 4,200 per tola; silver also rises
Gold prices in Nepal surged sharply on Wednesday, increasing by Rs 4,200 per tola to reach Rs 288,000, according to the Federation of Nepal Gold and Silver Dealers’ Association. The previous day, gold was traded at Rs 283,800 per tola. Silver also rose by Rs 95 per tola, climbing from Rs 4,380 to Rs 4,475.
NRB absorbs Rs 85 billion through three-month deposit auction
Nepal Rastra Bank (NRB) absorbed Rs 85 billion from banks and financial institutions through a three-month deposit collection operation conducted via its Online Bidding System. The bidding process closed at 3:00 pm on Wednesday, with interest rates determined through competitive bidding and settlement scheduled accordingly. The deposits will mature on November 3, 2026. Class A, Class B, and Class C institutions were allowed to submit multiple bids starting from Rs 100 million and increasing in multiples of Rs 50 million, as part of the central bank’s efforts to manage excess liquidity in the financial system.
Yanki Ukyab appointed Investment Board CEO
The government has appointed Yankee Ukyab as the Chief Executive Officer (CEO) of the Investment Board Nepal. The decision was taken by the Cabinet during its meeting held on Wednesday. According to government spokesperson and Education Minister Sasmit Pokharel, Ukyab was appointed to the post on the recommendation of the Office of the Prime Minister and Council of Ministers. Ukyab, who has been appointed Chief Executive Officer of the Investment Board Nepal, is a development economist.
IRD urges mandatory exchange of purchase bills
The Inland Revenue Department (IRD) has appealed to consumers and businesses to make requesting and issuing bills a regular practice in all transactions involving goods and services. The department said the measure is necessary to improve tax compliance and ensure that actual transactions are properly recorded. It also reminded taxpayers that participation in the taxpayer incentive reward program requires valid purchase bills and urged unregistered businesses to obtain Permanent Account Numbers to strengthen transparency and voluntary compliance.
Nepal Oil Corporation forms rapid response team for LPG distribution
Nepal Oil Corporation has formed a rapid response team to address ongoing cooking gas distribution problems. The team includes representatives from the Ministry of Industry, Commerce and Supplies, Nepal Oil Corporation, the Department of Industry, and gas industries. Officials said the mechanism became operational on Wednesday and is working to resolve distribution bottlenecks in Kathmandu Valley and other parts of the country, while confirming that regular LPG imports remain uninterrupted.
Ministry says LP gas supply will normalize soon
The Ministry of Industry, Commerce and Supplies has said that LP gas supply is expected to return to normal within a few days. In a statement, the ministry urged consumers not to hoard cooking gas based on rumors. Spokesperson Netra Prasad Subedi said current imports and distribution are higher than regular demand and exceed figures from the same period last year. The ministry said coordination with Nepal Oil Corporation and industry stakeholders is underway to ensure an effective supply system, while market monitoring has been intensified and strict action has been warned against artificial shortages and black marketing.
Government introduces National Agricultural Policy 2026
The Ministry of Agriculture, Forests and Environment has unveiled the National Agricultural Policy 2026 with the goal of modernizing agriculture, promoting food self-sufficiency, and reducing dependence on imports. The policy seeks to address challenges such as fragmented landholdings, youth migration, and low productivity. It prioritizes self-reliance in staple crops, minimum support prices, concessional credit, crop insurance, climate-resilient farming, and stronger market infrastructure. The government also aims to increase private sector investment and improve coordination among federal, provincial, and local governments to raise farm incomes, create jobs, and reduce the agricultural import bill.
PPMO gives final seven-day deadline before blacklisting
The Public Procurement Monitoring Office (PPMO) has given 15 construction companies and suppliers a final seven-day deadline to submit written explanations before facing blacklisting. In a public notice issued on Wednesday, the office asked the firms to provide evidence showing why they should not be blacklisted following recommendations from public agencies. The move comes after an earlier 30-day notice reportedly received no response. Failure to respond within the new deadline could result in exclusion from public procurement activities.
Government warns returning migrants against gold smuggling
Nepal Police’s Tribhuvan International Airport Security Office has urged Nepalis returning from countries such as the United Arab Emirates and Qatar not to carry gold or other precious metals on behalf of brokers in exchange for money. Authorities said such transportation is illegal and could lead to strict legal action. Travelers were advised to keep baggage records and purchase receipts, follow customs regulations, reject suspicious offers, and report any suspicious activity to airport security personnel.
Domestic airfares rise after aviation fuel price hike
Domestic air travel across Nepal has become more expensive after Nepal Oil Corporation increased the price of aviation fuel by Rs 20 per liter. Following the hike, the Civil Aviation Authority of Nepal revised the fuel surcharge effective Tuesday, leading to automatic increases in both domestic air tickets and helicopter charter rates. The Kathmandu-Dhangadhi route recorded the highest fare increase, with tickets rising by Rs 880. Mountain flight fares increased by Rs 685, Kathmandu-Nepalgunj by Rs 655, and Kathmandu-Bhadrapur by Rs 605. Helicopter services have also become significantly costlier, with standard rescue operations in Kathmandu Valley fixed at Rs 128,000 including VAT, while tourist and remote-area charter flights may cost up to Rs 382,000 for Kathmandu-Pokhara and as much as Rs 1.65 million for destinations such as Darchula.
Finance minister asks NRB to support economic growth
Finance Minister Swarnim Wagle has called on Nepal Rastra Bank to play a more active role in promoting economic growth rather than functioning only as a regulator. Speaking at a meeting with senior central bank officials at Singha Durbar on Wednesday, he said businesses need stable rules and predictable implementation rather than temporary concessions. Wagle stressed the need for better coordination between fiscal and monetary policy and questioned why available liquidity is not reaching productive sectors. He urged the central bank to encourage lending to high-return industries, startups, fintech, and employment-generating activities, and announced plans to form a joint task force to develop a practical policy roadmap.
NTB republishes notice for World Travel Market 2026 participation
The Nepal Tourism Board (NTB) has republished its notice for participation in the World Travel Market 2026 in London after canceling an earlier notice issued on July 31 due to technical problems. The event will be held from November 3 to 5, 2026, and participation will be limited to 35 companies. Selected firms will be required to contribute Rs 275,000. Fresh applications must be submitted through the upgraded online portal by August 11, 2026, with applications opening at 10:00 am on August 7. Selection will be made on a first-come, first-served basis, and participants will bear their own travel and visa expenses.
Committee refunds savings to Shiv Shikhar and Pashupati depositors
The Problematic Cooperative Management Committee has begun refunding savings to small depositors of Shiv Shikhar Cooperative and Pashupati Cooperative. The committee disbursed funds to 14 members of Shiv Shikhar and 28 members of Pashupati in the latest phase. The government said the refunds were made using money recovered from loans of problematic cooperatives and that small depositors were given priority. It added that legally compliant loan recovery and asset management efforts would continue so that all affected depositors can be reimbursed gradually.
Bharatpur underground power project reaches 94 percent completion
The underground electricity distribution project in Bharatpur has achieved 94 percent physical progress, with cables already energized along about 20 kilometers of six-lane and bypass roads. The project is expected to benefit around 1,300 customers, and household connections have been completed for 300 families. The Rs 3 billion project is being implemented with support from the Government of Nepal, Nepal Electricity Authority, and the Asian Development Bank. In a related development, the first circuit of the Marshyangdi Corridor 220 kV transmission line connecting Markichowk and Bharatpur has begun supplying 100 megawatts to the national grid since July 11.
Nepal seeks growth while facing structural economic pressures
Despite strong remittance inflows, healthy foreign exchange reserves, and rising hydropower exports, Nepal continues to face major economic challenges. The trade deficit has approached Rs 1.78 trillion, while public debt stood at Rs 2.975 trillion as of July 16, 2026. Finance Minister Swarnim Wagle and Prime Minister Balen Shah have held separate consultations with stakeholders to address these concerns, though questions remain about policy coordination. Nepal Rastra Bank has maintained a cautiously accommodative monetary policy for fiscal year 2026/27, while the government is pursuing structural reforms, including amendments to the NRB Act, to encourage private-sector lending, address non-performing loans, and support sustainable domestic growth.
SEBON forms task force to reform primary share market
The Securities Board of Nepal (SEBON) has formed a seven-member Primary Market Reform Facilitation Task Force aimed at making the primary market more transparent, systematic, and investor-friendly. Coordinated by the executive director of SEBON’s Regulation Department, the committee includes representatives from the Nepal Stock Exchange (NEPSE), the Merchant Bankers Association of Nepal, and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The task force, established for fiscal year 2026/27, held its first meeting on August 4 to study issues such as IPO issuance, book building, and pricing mechanisms.
Raw jute imports through Kakarbhitta climb to Rs 4.91 billion
Nepal’s imports of raw jute through the Kakarbhitta customs point increased by 13.25 percent in fiscal year 2025/26, reaching Rs 4.91 billion compared with Rs 4.34 billion a year earlier. According to Mechi Customs Office, raw jute has become the third-largest imported commodity through Kakarbhitta after petrol and diesel. Agricultural officials say cultivation in Jhapa, Morang, and Sunsari has fallen to about 5,000 hectares as farmers shift to paddy because of rising production costs and low market prices.
Nearly Rs 2 billion in Jumla budget remains unspent
Federal and provincial governments failed to utilize nearly Rs 2 billion in allocated budgets in Jumla during fiscal year 2025/26. Out of Rs 1.985 billion allocated to provincial agencies, Rs 545 million remained unspent. Federal offices spent Rs 6.211 billion out of Rs 7.648 billion, leaving about Rs 1 billion in capital expenditure frozen. Officials attributed the low spending to local protests, holiday-related closures, winter breaks, and election-related disruptions.
LPG shortage worsens in Siraha as consumers queue for hours
A severe shortage of cooking gas has been reported in several areas of Siraha, including Golbazar and Lahan. Consumers have been forced to carry empty cylinders and wait in long queues outside gas depots from early morning. Large crowds have gathered at distribution points in Golbazar Municipality-4, Lahan Municipality-3 near Raghunathpur Chowk, and around the Road Division Office area as supplies remain inadequate.
InDrive drivers protest over commissions and low fares
Drivers associated with the ride-sharing platform InDrive staged a protest outside the company’s office in Kupondole on Wednesday, demanding lower commission rates and higher fares. The demonstration was organized by the Independent Drivers Foundation Nepal. Protesters carried placards accusing the company of exploitation. Foundation President Reshma Bisunke said drivers are currently forced to pay the 5 percent VAT from their own commissions because fares have not been adjusted accordingly.
Land title distribution enters final phase in Arjundhara
The process of distributing land ownership certificates to landless settlers, landless Dalits, and unregulated residents in Arjundhara Municipality of Jhapa has reached its final stage. According to municipal officials, verification of 7,301 applications across 11 wards is nearly complete. Certificates have already been issued to 161 households in Ward No. 11, while records of about 45 households in Ward No. 7 are being reprocessed after documents were damaged in a fire during the Gen Z protests of September 2025. The municipality has extended office hours to speed up the process.
Nepal’s digital economy expands to 42.4 million subscriptions
Nepal’s digital economy has grown rapidly since the introduction of commercial email services in 1994 and internet services in 1995. According to the Economic Survey 2025/26, subscription-based digital users reached 42.489 million by mid-March 2026. The expansion has supported e-commerce, digital payments, mobile banking, QR transactions, remote work, telemedicine, and online education, particularly in remote areas. However, challenges remain, including high internet costs relative to income levels, substantial taxes on imported technology products, and increasing incidents of financial cybercrime.
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