KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s latest economic and governance updates reflect a mix of cautious market activity, targeted fiscal interventions, and strategic development initiatives. NEPSE dipped slightly amid reduced trading volume, while SEBON revised circuit breaker thresholds to stabilize market volatility. Precious metals continued a moderate upward trend, reflecting inflationary pressures.
The government implemented a 50% cut in fuel taxes and reduced allowances for senior officials to ease energy costs, while Nepal Oil Corporation reported continued losses despite strong revenue.
Development projects received both support—such as the $85 million World Bank loan for the Greater Lumbini project—and temporary suspension of Rs 58.16 billion in spending. Institutional reforms included the appointment of Kiran Pandit as NRB Deputy Governor, acceleration of driver’s license issuance, and cooperative management changes.
Social initiatives focused on healthcare access, gender equity, and food security, including mandates for free hospital beds, savings programs for newborn girls, and recognition of Karnali Province as food-secure through organic farming. Infrastructure and service improvements were emphasized through irrigation expansion in Kanchanpur, the start of a new municipal building in Tyamkemaiyum, advocacy for Gautam Buddha International Airport operations, and digital reforms by Nepal Telecom.
The private sector’s role was highlighted with foreign investment, as British Ambassador Rob Fenn inaugurated Unilever Nepal’s Hetauda plant, demonstrating industrial growth, employment, and innovation. Overall, these developments indicate a concerted government effort to balance economic stabilization, social welfare, and institutional efficiency amid market and energy pressures.
NEPSE dips slightly amid reduced trading volume
The Nepal Stock Exchange index slipped by 2.61 points (0.09 percent) to close at 2,757.40 on Tuesday, with trading volume declining compared to previous sessions. The sensitive index also edged lower, while most sectoral indices recorded losses. A total of 345 companies were traded, generating a turnover of Rs 6.737 billion.
Gold and silver prices rise moderately
Gold prices increased by Rs 400 per tola, reaching Rs 291,800, while silver rose by Rs 40 per tola to Rs 4,820, according to the Federation of Nepal Gold and Silver Dealers.
Govt halves fuel taxes to ease price pressure
The government has decided to cut customs duty and infrastructure development tax on petroleum products by 50 percent. The decision, taken during Tuesday’s Cabinet meeting, aims to cushion consumers from rising global fuel prices. The Ministry of Federal Affairs and General Administration said the move is intended to provide immediate relief as energy costs continue to increase amid regional tensions.
Govt secures World Bank loan for greater Lumbini project
The Cabinet has approved a concessional loan of USD 85 million (around Rs 11.39 billion) from the World Bank for the Greater Lumbini Resource Efficiency and Heritage Recovery Project. Minister Pratibha Rawal said the project will support infrastructure upgrades and tourism development across Kapilvastu, Rupandehi, and Nawalparasi (Bardaghat Susta Paschim), with the goal of strengthening Lumbini’s status as a global spiritual destination.
Kiran Pandit named Deputy Governor of Nepal Rastra Bank
The government has appointed Kiran Pandit as Deputy Governor of Nepal Rastra Bank. The Cabinet endorsed the appointment on Tuesday based on a proposal from the Ministry of Finance. Pandit, a former executive director in the Foreign Exchange Management Department, fills one of the vacant posts and brings extensive institutional experience.
SEBON revises circuit breaker thresholds for stock market
The Securities Board of Nepal (SEBON) has approved changes to the circuit breaker system proposed by NEPSE. Under the revised rules, trading will pause for 15 minutes if the market fluctuates by 5 percent within the first two hours, up from the previous 4 percent threshold. The cap for a full-day halt has also been increased from 6 percent to 8 percent to better manage market volatility.
Finance Ministry cuts fuel perks for senior officials
Finance Minister Swarnim Wagle has reduced fuel allowances for government officials under revised operational guidelines. Monthly quotas for senior officials have been significantly lowered, while shared use of government vehicles has been made mandatory to reduce public spending and energy consumption.
Petroleum imports generate strong revenue despite losses
The Nepal Oil Corporation reported that fuel imports worth Rs 177.12 billion over the past months generated Rs 86.58 billion in government revenue. Despite high tax contributions per liter, the corporation continues to incur losses due to rising international prices. Authorities have introduced measures such as a two-day weekend to help curb fuel consumption.
Govt suspends billions in development spending
The interim government has frozen around Rs 58.16 billion allocated to various development projects in the current fiscal year. Although a larger amount was initially withheld to cut unnecessary expenditure, only part of it has been released so far. Many projects, particularly under the Ministry of Urban Development, remain stalled, and new contracts are unlikely before the fiscal year ends.
Cabinet accepts resignations of cooperative committee officials
The government has approved the resignations of the chairman and two members of the Problematic Cooperative Management Committee. Chairman Shriman Gautam and members Lalit Kumar Maharjan and Dhruv Acharya stepped down before completing their terms. Their resignations were endorsed during the latest Cabinet meeting.
Bagmati province mandates 10% free hospital beds for poor patients
The Ministry of Health in Bagmati Province has directed all hospitals in the province to reserve at least 10 percent of beds for free treatment of poor and marginalized patients. Citing Section 3(6) of the Provincial Health Services Act, 2018, the ministry said the rule applies to private and NGO-run hospitals across 13 districts. Hospitals must set up social service units to identify and assist disadvantaged individuals. Non-compliant institutions will face strict legal action.
Transport Department speeds up license printing
The Department of Transport Management has ramped up driving licence production from 2,500 to 40,000 per day. The increase is part of the government’s reform agenda aimed at improving service delivery. Authorities are working to clear a backlog of nearly 3 million licences and plan to introduce a system that enables issuance within 24 hours of payment.
Karnali province recognized as food-secure through organic farming
Officials from Ministry of Land Management, Agriculture and Cooperatives have declared Karnali Province the most food-secure province in Nepal due to its organic farming initiatives. At a Monday orientation in Birendranagar, authorities highlighted the reduction in chemical fertilizer use and improved food quality. The Food Technology and Quality Control Office emphasized ongoing coordination with local administrations and consumers to ensure food safety.
Local representatives urge immediate operation of Bhairahawa airport
Officials from Siddharthanagar Municipality called on the federal government to resume regular international flights at Gautam Buddha International Airport. Speaking during the inauguration of a new municipal building on Monday, local leaders said the airport’s inactivity has hurt regional businesses and tourism. They pledged to continue lobbying for full flight operations to support economic growth in Lumbini.
Hupsekot gifts bank accounts to 36 newborn girls
Hupsekot Rural Municipality has deposited Rs 5,000 each into the bank accounts of 36 newborn girls under the “Golden Future for Our Daughters” program. The scheme, which started in fiscal year 2020/21, encourages savings for education, promotes institutional births, and discourages female feticide. To qualify, parents must be permanent residents and register the child at the local ward office.
Tyamkemaiyum rural municipality starts construction of new administrative building
Tyamkemaiyum Rural Municipality has laid the foundation for a new administrative building costing Rs 57.1 million. The federal government will fund 60 percent, and the rural municipality 40 percent. The project, expected to finish by October 6, 2027, aims to centralize administrative and judicial services for better efficiency.
NSO and CNI partner to improve economic data analysis
The National Statistics Office and the Confederation of Nepalese Industries signed an MoU to enhance collection and analysis of industrial and private sector data. The collaboration will include national economic censuses and capacity-building programs to support effective policymaking and economic growth.
Irrigation expansion benefits 300 farmers in Kanchanpur
Shuklaphanta Municipality-5 in Kanchanpur District has enhanced irrigation through 30 shallow tube wells and two autogen borings over the past three years. Covering roughly 50 hectares, the project benefits more than 300 farmers. The ward office plans to add 10 more tube wells and one boring this fiscal year, reducing dependency on seasonal rainfall and boosting commercial farming.
Nepal Telecom ends automatic balance deductions after data exhaustion
Nepal Telecom has stopped deducting balance automatically when data packs expire. Customers will now receive notifications at 90 percent usage and must choose to continue or buy a new pack. The reforms include a one-time KYC system and digitized services like e-SIM distribution and SIM ownership transfers.
Local cooperatives halt milk supply to DDC over delayed payments
Dairy cooperatives in Nawalparasi have stopped supplying milk to the state-owned Dairy Development Corporation due to overdue payments exceeding Rs 100 million. Cooperatives are now selling to private dairies like Himalaya Dairy and Nepal Dairy, which are reportedly more reliable in payment schedules.
British ambassador inaugurates Unilever plant in Hetauda
British Ambassador Rob Fenn inaugurated Unilever Nepal’s Home Care Liquid Plant in Hetauda. The facility, one of the company’s top manufacturing units in South Asia, demonstrates safety, quality, and environmental responsibility. Unilever Nepal has been operating for over 30 years, contributing to job creation and domestic innovation.
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