KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic developments present a mixed picture of cautious recovery alongside persistent structural challenges. While the government advanced financial sector management through a Rs 20 billion liquidity absorption measure, secured a Rs 25 billion concessional loan from the Asian Development Bank, projected 3.51 percent economic growth, and reported strong gains in real estate activity, digital farmer registration, and customs revenue, investor sentiment remained weak as the NEPSE fell nearly 1 percent and precious metal prices declined.
At the same time, slower-than-expected paddy transplantation due to delayed monsoon rains, fertilizer shortages in key agricultural districts, and the cancellation of delayed infrastructure contracts underscore ongoing weaknesses in agriculture and project implementation.
The resignation of the NEPSE chief executive, continued refunds to cooperative depositors, and intensified traffic enforcement further reflect the government’s focus on governance, regulatory oversight, and public service delivery amid broader efforts to sustain economic momentum.
NEPSE declines nearly 1 percent as turnover slips to Rs 3.55 billion
The Nepal Stock Exchange (NEPSE) index dropped 26.29 points, or 0.99 percent, to close at 2,627.11 on Monday, while daily turnover fell to Rs 3.55 billion. Shares of 356 listed companies were traded, with 239 declining, 34 advancing and four remaining unchanged. All 13 sectoral indices ended in negative territory, with the trading sector recording the sharpest decline of 3.15 percent. Snow Rivers Limited and Sanigad Hydro Limited emerged as the day’s top gainers, while Three Star Hydropower Limited posted the biggest loss.
Gold and silver prices decline
Gold prices fell by Rs 900 per tola on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Fine gold was traded at Rs 289,400 per tola, down from Rs 290,300 a day earlier. Silver also declined by Rs 20 per tola to Rs 4,585. The association attributed the price adjustment to changes in the domestic precious metals market.
NRB issues Rs 20 billion debenture to absorb excess liquidity
The Nepal Rastra Bank (NRB) on Monday issued a Rs 20 billion one-year central bank debenture to manage excess liquidity in the banking system. Named NRB Debenture 2027 D, the instrument was open to Class ‘A’, ‘B’ and ‘C’ financial institutions through competitive electronic bidding. Investors were required to bid for a minimum of Rs 50 million, with the final interest rate determined through the bidding process. Interest will be paid every six months, while the principal will be repaid upon maturity.
Government, ADB sign Rs 25 billion concessional loan agreement
The Government of Nepal and the Asian Development Bank (ADB) on Monday signed a concessional loan agreement worth Rs 25 billion (USD 165 million) to finance urban infrastructure and trade facilitation projects. The package includes USD 115 million for the Integrated Water Supply and Sewerage Management Project, benefiting around 850,000 people in 13 districts, while the remaining USD 50 million will support the South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Programme to modernize customs infrastructure and improve regional trade efficiency.
Finance minister, ADB president reaffirm development partnership
Finance Minister Swarnim Wagle and Asian Development Bank (ADB) President Masato Kanda held talks in Kathmandu on Monday, reaffirming their commitment to strengthening development cooperation. During the meeting at the Ministry of Finance, Wagle thanked the ADB for its continued support and sought sustained assistance for Nepal’s development priorities. Kanda reiterated that Nepal remains a key development partner for the ADB and pledged continued collaboration.
Madhesh launches online business registration system
Madhesh Province Minister for Industry, Commerce and Tourism Kanish Kumar Patel has announced a new online business registration system aimed at simplifying industrial services. Speaking at an employment fair in Birgunj, Patel said businesses will be able to complete registration and renewal procedures through a single online portal within seven to 10 days. The provincial government has also introduced tax incentives for employment-generating industries and interest subsidies for young entrepreneurs. Around 500 job seekers participated in the employment fair, jointly organized with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Sudurpashchim accelerates budget spending at fiscal year-end
Sudurpashchim Province significantly increased its budget expenditure at the close of the fiscal year, reflecting a surge in project payments. According to the Provincial Treasury Controller Office, total spending had reached 44.81 percent by July 3, compared to 35.20 percent at the end of May. Capital expenditure stood at Rs 7.468 billion, while recurrent spending reached Rs 7.514 billion. Officials expect spending to rise further before the fiscal year concludes.
National Statistics Office projects 3.51 percent economic growth
The National Statistics Office (NSO) has estimated Nepal’s economy will grow by 3.51 percent in fiscal year 2025/26, according to its third-quarter national accounts. Growth was driven mainly by improvements in electricity and gas supply, financial services, transport and insurance activities. Of the country’s 18 economic sectors, 16 recorded positive growth, with the energy sector expanding the fastest. Agriculture grew modestly despite a decline in paddy production.
Real estate transactions nearly double to Rs 183.9 billion
Nepal’s property market recorded a strong recovery during the third quarter of fiscal year 2025/26, with real estate transactions reaching Rs 183.9 billion, according to Nepal Rastra Bank (NRB). The transaction value almost doubled from around Rs 100 billion during the same period a year earlier. Overall transaction volume rose by 6.42 percent, contributing to a 23.72 percent increase in property tax revenue and a 31.42 percent rise in capital gains tax collections. Bagmati Province posted the highest regional growth, while Kathmandu Metropolitan City recorded the sharpest increase in both transaction volume and market value.
Digital farmer registry surpasses government target
More than 2.64 million farming households have been registered under the government’s digital farmer database, exceeding the annual target of 2.45 million households. The Ministry of Agriculture, Forestry and Environment said the system now covers around 64 percent of farming families identified in the 2021 National Agricultural Census. The database will support the distribution of farmer identity cards and improve access to agricultural credit, subsidies and fertilizer management.
Labour ministry honours returnee entrepreneurs and industries
The Ministry of Youth, Labour and Employment has honoured eight returnee migrant entrepreneurs for establishing businesses after working abroad. Lok Bahadur Rai received the top national award along with a cash prize of Rs 150,000, while seven provincial winners received Rs 75,000 each. The ministry also recognised six industrial establishments for maintaining high occupational safety standards, including Mainawati Steel Industries, Maruti Cements and Asian Paints.
Paddy plantation reaches 32.4 percent as monsoon delays slow progress
Paddy transplantation has covered only 32.38 percent of Nepal’s total cultivable area as of the first week of July, significantly lower than the 45 percent recorded during the same period last year, according to the Department of Agriculture. Of the country’s 1.37 million hectares of paddy fields, planting has been completed on 443,595 hectares. Sudurpashchim Province has recorded the highest progress at 57.9 percent, followed by Gandaki at 41 percent and Karnali at 40.5 percent. Madhesh Province, Nepal’s largest rice-producing region, has achieved only 15.6 percent plantation, while Lumbini and Bagmati are also trailing last year’s pace.
Nepalgunj Customs collects over Rs 18.5 billion in revenue
The Nepalgunj Customs Office collected Rs 18.579 billion in customs revenue by June 14, achieving 83.05 percent of its annual target of Rs 22.374 billion. Imports increased by 11.41 percent to Rs 79.358 billion, while exports rose 12.7 percent to Rs 3.213 billion. Total bilateral trade reached Rs 82.57 billion. Officials attributed improved customs collections partly to stricter enforcement of regulations on cross-border consumer goods.
Road division cancels 20 delayed infrastructure contracts
The Road Division Offices in Surkhet and Jumla have terminated 20 road and bridge construction contracts due to prolonged delays and poor contractor performance under the Public Procurement Act. Four contracts were cancelled in Surkhet, while 16 highway maintenance contracts across Jumla, Kalikot and Mugu were also scrapped. Authorities have initiated legal procedures to blacklist the contractors and confiscate their performance guarantees.
Traffic police fine over 2,100 drivers in Kathmandu Valley
The Kathmandu Valley Traffic Police Office booked 2,176 drivers for various traffic violations over the past 24 hours, collecting more than Rs 1 million in fines. Violations included drunk driving, speeding, illegal ride-sharing, traffic signal violations, lane indiscipline, unnecessary honking, illegal parking and driving on one-way roads. The enforcement drive is part of ongoing efforts to improve road safety in the Valley.
Fertilizer shortage hits farmers in Kanchanpur
Farmers in Belauri, Punarbas and Shuklaphanta municipalities of Kanchanpur are facing severe shortages of chemical fertilizers during the peak paddy and sugarcane planting season. Local farmers say the lack of subsidized diammonium phosphate (DAP) fertilizer is threatening crop production. Agricultural officials noted that government subsidies mainly cover staple food crops, leaving sugarcane farmers with limited access to fertilizer despite high regional demand.
Shiva Shikhar cooperative depositors receive another round of refunds
The Problematic Cooperative Management Committee has distributed another round of refunds to 248 small depositors of the troubled Shiva Shikhar Cooperative. With the latest payments, the total number of compensated depositors has reached 1,117. The committee said repayments are being made using recovered loans and proceeds from liquidated assets, with priority given to small savers.
NEPSE chief executive officer resigns
Nepal Stock Exchange (NEPSE) Chief Executive Officer Chudamani Chapagain resigned on Monday before completing his tenure. Chapagain submitted his resignation to Finance Minister Swarnim Wagle, citing personal reasons and denying reports of political pressure. The Ministry of Finance will begin the process of appointing a new chief executive.
Comment