KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest economic indicators present a mixed but telling picture of Nepal’s economy, marked by short-term market volatility alongside pockets of structural strength. The stock market’s decline and reduced trading turnover signal cautious investor sentiment amid broader economic uncertainty, even as strong oversubscription of microfinance shares reflects continued public confidence in select financial institutions.
Commodity trends show easing gold prices, suggesting softer safe-haven demand, while rising silver prices hint at industrial or investment interest. On the trade front, shifting border dynamics have redistributed import flows following the reopening of key northern checkpoints, while export gains in niche products like chhurpi highlight untapped potential in value-added agro-exports.
Meanwhile, initiatives such as new hydropower IPOs, improved agricultural productivity despite shrinking farmland, expanding Nepal–UAE economic engagement, and ICAN’s push to globalize accounting services point to long-term growth drivers, even as challenges persist in tourism-linked revenues and microfinance stability.
NEPSE drops over 13 points as most sectors close lower
The Nepal Stock Exchange (NEPSE) index declined by 13.35 points, or 0.50 percent, on Wednesday, the fourth trading day of the week, settling at 2,635.94 points. Market movement during the week has remained volatile, with NEPSE losing 10.29 points on Sunday before rebounding by 28.73 points on Monday and gaining another 9.93 points on Tuesday. The Sensitive Index also moved downward, shedding 2.22 points to close at 455.01. Trading activity saw 323 companies participate, with more than 16.03 million shares exchanged through 72,474 transactions. Total turnover stood at NPR 517.51 million, lower than Tuesday’s NPR 712.34 million and Monday’s NPR 647.37 million.
Gold prices fall while silver inches up
Gold prices declined in the Nepali market on Wednesday, dropping by Rs 400 per tola to Rs 267,700, according to the Federation of Nepal Gold and Silver Dealers. In contrast, silver prices rose by Rs 55 per tola and are being traded at Rs 4,935.
Trade via Korala border slows after reopening of Tatopani and Rasuwagadhi
Import and export activities through the Korala border point in Mustang have declined following the reopening of the Tatopani and Rasuwagadhi checkpoints. According to the Mustang Customs Office, cargo movement through Korala has slowed sharply, with only eight to ten containers currently awaiting clearance and no new arrivals in recent days. Previously, when the other northern routes were closed, Korala handled up to 20 containers daily. Since becoming fully operational on Bhadra 31, Korala has generated more than Rs 5.5 billion in customs revenue, with imports exceeding Rs 11 billion and exports to China totaling over Rs 190 million. More than 2,100 electric vehicles have entered Nepal through this route so far, including nearly 500 units recently imported by BYD.
Nepal and UAE discuss expanding trade and investment cooperation
FNCCI President Chandra Prasad Dhakal met UAE Ministry of Economy Under-Secretary Abdulla Ahmed Al Saleh in Dubai on Wednesday to explore ways to strengthen bilateral trade and investment ties. Discussions focused on encouraging UAE investment in priority sectors of Nepal’s economy, including hydropower, tourism, agro-processing, information technology, and large-scale infrastructure projects. Highlighting Nepal’s investment potential, Dhakal emphasized the importance of improved air connectivity and proposed the launch of a direct Emirates Airlines flight to Kathmandu to boost tourism and business engagement. Both sides expressed commitment to deepening economic cooperation in the coming days. Nepal’s Ambassador to the UAE, Tej Bahadur Chhetri, also attended the meeting.
Chhurpi exports through Mechi customs rise sharply
Exports of chhurpi, a hardened cheese made primarily from yak milk, have increased significantly through the Mechi Customs Office in Kakarbhitta, Jhapa, during the first five months of the current fiscal year. According to customs officials, 275,246 kilograms of chhurpi worth Rs 485.2 million were exported between mid-July and mid-December, marking a 32 percent rise in volume compared to the same period last year. Export earnings increased by Rs 117.6 million year-on-year. Kakarbhitta remains the primary export point for domestically produced chhurpi, which ranks fourth among the top ten export items from the customs office. Most of the product is shipped to Europe and the United States, mainly for use as pet food. Nepal Chhurpi Producers Association General Secretary Rishi Timsina said Koshi Province accounts for about 80 percent of national production, but noted that the sector has not received adequate government support for promotion and expansion.
Baglung festival generates Rs 80 million in business
The Baglung Festival organized by the Baglung Chamber of Industry and Commerce recorded business transactions worth around Rs 80 million, drawing an estimated 400,000 visitors. Held from December 26 to January 6 at Bangechaur Playground in Baglung Municipality-1, the festival prioritized locally produced goods under the theme “Made in Baglung.” Products such as woolen blankets, allo fabric, gundruk, maize flour, millet flour, nettle powder, timur, oranges, kiwi, and other indigenous items received strong consumer response. The event also featured automobile, hotel, and restaurant stalls, along with cultural, entertainment, and sports activities. Chamber President Rajan Kumar Shakya said the festival significantly boosted local trade and business confidence.
Shikhar Power Development to launch IPO from January 20
Shikhar Power Development Limited is set to issue its initial public offering starting January 20, targeting project-affected locals and Nepalis working abroad. The company received approval from the Nepal Securities Board on December 31 to issue 3.2 million ordinary shares at a face value of Rs 100 each, amounting to Rs 320 million. Of this, 980,000 shares worth Rs 98 million will be allocated to residents of project-affected areas in Baglung district and parts of Dhorpatan Municipality impacted by the transmission line.
Unique Nepal Microfinance decides against dividend distribution
Unique Nepal Microfinance Financial Institution Limited has announced it will not distribute dividends for the fiscal year 2081/82. The decision was taken during the 108th meeting of the Board of Directors held on January 6, citing rising loan defaults and financial stress. The institution stated that prolonged anti-microfinance activities, weak loan recovery, economic slowdown, and increased migration of youth abroad have affected borrowers’ income and repayment capacity. As non-performing loans have increased, a substantial portion of income has been allocated to loan loss provisioning, leaving no scope for dividend distribution.
Paddy production increases in Syangja despite shrinking farmland
Paddy output in Syangja district has increased by 13.8 percent this year, rising from 36,560 metric tons last year to 41,640 metric tons. According to the District Agriculture Development Office, paddy was cultivated on 9,072 hectares this year. Despite a gradual decline in cultivated area, productivity improved due to the use of improved and hybrid seed varieties, modern farming tools, and favorable weather conditions. Paddy productivity reached 4.59 metric tons per hectare, up from 4.3 metric tons last year. The district also produced 306 metric tons of early paddy on 67 hectares.
ICAN launches GAIN project targeting global accounting market
The Institute of Chartered Accountants of Nepal (ICAN) has launched the Global Accounting Initiative in Nepal (GAIN) to position the country as a competitive destination for outsourced accounting services. The project aims to create over 50,000 jobs annually within five years and generate around Rs 80 billion through service exports. ICAN plans to strengthen regulatory frameworks, develop digital infrastructure, train skilled professionals, and establish outsourcing hubs, incubation centers, and digital platforms to support innovation and entrepreneurship.
Revenue declines at Kamaladi’s Skywalk Tower
Revenue generated by the Skywalk Tower in Kamaladi has declined, with income falling from Rs 105 million in 2024 to Rs 87 million in 2025. Operated by Wonders Nepal Pvt. Ltd., the 256-foot tower—South Asia’s tallest—attracts an estimated 720,000 visitors annually. Despite operating at full capacity since mid-2023, the company recorded a net loss of Rs 20 million in the last fiscal year. Wonders Nepal also runs 26 retail outlets and has secured a credit rating for long-term loans worth Rs 600 million.
Vijaya Microfinance FPO oversubscribed over 42 times
Vijaya Microfinance Financial Institution Limited’s follow-on public offering (FPO) has received overwhelming investor interest, with subscriptions exceeding the offer size by 42.08 times as of January 7. The company offered 466,817 shares, but applications were received for more than 19.64 million shares from over 1.67 million investors. The total application value stands at approximately Rs 1.96 billion. The FPO, managed by NMB Capital Limited, will remain open until January 8.
Samrat Cement reports strong growth and higher profit margins
Chaudhary Group’s Samrat Cement Company recorded a 147 percent increase in business in 2025 compared to the previous year, with revenue rising to Rs 4.367 billion from Rs 1.771 billion in 2024. Cement sales nearly doubled, while clinker sales increased significantly following the commissioning of a clinker production facility in 2021. Cement prices also rose to Rs 440 per bag. The company’s profit margin climbed to 34.73 percent, up from 21.41 percent a year earlier. Samrat Cement currently produces 3,600 metric tons of cement and 4,000 metric tons of clinker daily.
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