KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy is showing mixed but gradually stabilizing signals, with improvements in market confidence, customs operations, and regulatory enforcement alongside persistent structural and governance challenges. The modest rise in the NEPSE index despite declining turnover reflects cautious investor optimism, while rising gold and silver prices indicate continued demand for safe-haven assets amid uncertainty.
The government’s temporary relaxation of MRP labeling rules has helped ease trade bottlenecks and revive customs revenue collection, highlighting the importance of policy flexibility in maintaining supply chains. At the same time, the extension of the IMF’s ECF program and the launch of investigations into the assets of NRB officials suggest growing international and domestic pressure for financial discipline, transparency, and institutional accountability.
However, delays in infrastructure projects, budget freezes, and administrative inefficiencies in provinces such as Jumla and Kailali reveal ongoing weaknesses in public expenditure management and intergovernmental coordination. Increased customs monitoring, stricter insurance regulation, and action against cooperative defaulters demonstrate stronger enforcement efforts, while rising transport fares and traffic penalties point to inflationary and urban management pressures.
Overall, the developments indicate an economy attempting to balance reform, revenue mobilization, and governance improvements while still struggling with implementation gaps and political uncertainty.
NEPSE rises 6.94 points as turnover declines
The Nepal Stock Exchange (NEPSE) index gained 6.94 points, or 0.25 percent, on Thursday to close at 2,718.16. The sensitive index also increased by 0.20 percent to 464.08. A total of 6.68 million shares of 334 companies were traded through 45,065 transactions, generating a turnover of Rs 2.93 billion, compared to Rs 3.19 billion on Wednesday. Share prices of 155 companies increased, while 102 declined and 12 remained unchanged. Commercial banks, development banks, hotels, life insurance, microfinance, and trading sectors posted gains, whereas finance, investment, manufacturing, mutual funds, and non-life insurance sectors ended lower.
Gold and silver prices increase
Gold and silver prices rose in the domestic market on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold increased by Rs 1,800 per tola, reaching Rs 298,600. On Wednesday, gold was traded at Rs 296,800 per tola. Similarly, silver prices rose by Rs 100 per tola to Rs 5,155. The previous day, silver was traded at Rs 5,055 per tola.
Government eases MRP rule to reduce customs congestion
The government has temporarily relaxed the mandatory Maximum Retail Price (MRP) labeling requirement at customs points, allowing importers to self-declare prices during customs clearance. Under the three-month transitional arrangement, imported goods can be released immediately and labeled later at warehouses before entering the market. The dispute over the labeling rule had disrupted customs clearance at key border points, including Birgunj and Biratnagar, resulting in cargo congestion and slowing trade. After the revision, customs clearance resumed and revenue collection reached Rs 1.59 billion in a single day. Officials said the temporary measure is aimed at ensuring smooth trade operations while maintaining consumer protection standards, with a permanent legal framework expected in the upcoming fiscal policy.
IMF extends Nepal’s ECF program until July 11
The Executive Board of the International Monetary Fund (IMF) has approved Nepal’s request to extend the Extended Credit Facility (ECF) arrangement by two months until July 11, 2026. The extension is intended to provide enough time to complete the seventh and final review of the program. The 38-month ECF arrangement was initially approved on January 12, 2022, with access to SDR 282.42 million, equivalent to 180 percent of Nepal’s quota. The program had previously been extended until January 11, 2026, along with a revised disbursement schedule without additional access, and was later extended again until May 11, 2026. The latest extension was approved by the IMF Executive Board on a lapse-of-time basis.
Commission formed to investigate assets of NRB officials
The government led by Prime Minister Balendra Shah has assigned the Property Investigation Commission, 2026, to examine the assets of current and former officials of Nepal Rastra Bank (NRB) and state-owned banks. Headed by a former Supreme Court justice, the commission will investigate individuals who held senior positions between 1991 and April 13, 2026. Those under scrutiny include 10 former governors, 24 deputy governors, 60 board members, and around 150 executive directors. The probe will also cover the chairpersons and chief executive officers of Rastriya Banijya Bank, Nepal Bank, and Agricultural Development Bank. The move is aimed at addressing policy-level corruption and rising non-performing loans in the banking sector.
Rastriya Banijya Bank and ADBL officials resign
Some officials of Rastriya Banijya Bank and Agricultural Development Bank Limited have resigned from their positions. The resignations came from chairpersons and board members who were either appointed by the previous government or were serving on behalf of the government in the banks’ boards of directors. At Rastriya Banijya Bank, chair Dev Kumar Dhakal tendered his resignation. Likewise, at Agricultural Development Bank Limited, Chairperson Dim Prasad Poudel and other board members resigned on Wednesday. Although the government, through an ordinance, had removed officials appointed to various public bodies, it was not initially aimed at removing officials in the banking and financial sector. However, the officials are said to have resigned after receiving indications from the Ministry of Finance to step down. So far, board members of Nepal Bank Limited have not resigned.
Birgunj customs resumes operations after MRP agreement
The Birgunj Customs Office resumed clearance operations after a week-long dispute over mandatory MRP labeling. Importers agreed to declare MRP details during customs clearance and commit to labeling goods at warehouses before market distribution. The disruption, which lasted from April 28 to May 5, had caused a significant backlog of freight vehicles on the Raxaul side of the border. Despite the suspension in operations, the customs office collected approximately Rs 750 million in revenue on Wednesday. Business leaders described the arrangement as a temporary solution and called for a long-term policy on MRP implementation.
Biratnagar ICP resumes cargo movement after MRP compromise
The Integrated Check Post (ICP) in Biratnagar has resumed the movement of freight containers after a week-long disruption linked to mandatory MRP labeling. The Department of Customs introduced a “self-declaration and commitment” mechanism allowing importers to clear goods by pledging to apply MRP labels at warehouses before retail distribution. Before the compromise, nearly 400 containers carrying electronics, clothing, and perishable goods had remained stranded since the April 28 enforcement deadline. Authorities said the arrangement has eased supply chain pressure and reduced the risk of price hikes, while emphasizing that the MRP policy remains in force to protect consumers from arbitrary pricing.
National Statistics Office completes 32 percent of economic census
The National Statistics Office has urged formal and informal businesses to participate in the ongoing Second National Economic Census, which runs from April 15 to June 21. As of May 5, around 32 percent of the census work had been completed nationwide, covering approximately 480,000 registered entities in sectors including agriculture, manufacturing, and financial services. To ensure reliable data collection, coordination committees have been formed under chief secretaries at the provincial level and chief district officers at the district level. A total of 3,906 enumerators and 526 supervisors have been deployed for field data collection.
Traffic violations generate Rs 2.6 million in 24 hours
The Kathmandu Valley Traffic Police Office collected Rs 2.6 million in revenue from 2,105 traffic violators over the past 24 hours. Police penalized 99 people for drunk driving and 193 for unauthorized ride-sharing activities. Similarly, 139 drivers were fined for speeding and 133 for violating traffic signals. Other violations included 132 cases of lane indiscipline, 87 instances of parking on sidewalks, and 79 cases each of illegal honking and driving on one-way roads. The remaining 1,164 cases involved various other traffic offenses as authorities intensified road safety enforcement across the Valley.
Tighter customs monitoring boosts trade in Mahendranagar
Stricter monitoring at the Gaddachauki border point by the Armed Police Force (APF) and Nepal Police has increased business activity in Mahendranagar. Authorities are now strictly enforcing customs duties on goods worth more than Rs 100 brought from India, discouraging local consumers from shopping in the nearby Banbasa market. While businesses in Banbasa, particularly electronics and grocery shops, have seen a decline in sales, domestic retailers in Mahendranagar have reported increased customer flow. Security officials said fertilizers for agricultural use would continue to be facilitated, but commercial smuggling disguised as household goods would no longer be tolerated. The enforcement campaign aims to increase state revenue while supporting domestic production and employment.
Government approves Rs 12.212 billion transfer for delayed bridge projects
The government has authorized the Bridge Division under the Department of Roads to reallocate funds for 303 under-construction bridges and culverts facing budget shortages. The total contract value of the projects stands at Rs 35.563 billion, of which Rs 21.032 billion had been paid as of February 6. Current liabilities amount to Rs 12.212 billion. Under the new ordinance, ministries can reallocate unused capital budgets internally without requiring prior approval from the Ministry of Finance for each transfer. The decision is expected to accelerate projects that have remained stalled since the fiscal year 2011/12, particularly in Madhesh Province, before the current fiscal year ends on July 16, 2026.
Insurance Authority fines two companies for regulatory violations
The Nepal Insurance Authority has taken action against Sagarmatha Lumbini Insurance and Lord Buddha Reinsurance Broking Private Limited for violating industry regulations. Sagarmatha Lumbini Insurance was fined Rs 200,000 for providing unauthorized discounts and rebates in property insurance, violating the Property Insurance Directive, 2023, and the Insurance Act, 2022. Meanwhile, Lord Buddha Reinsurance Broking was fined Rs 5,000 for failing to obtain approval from the authority before initiating a transfer of ownership. The regulator said the penalties reflect its commitment to transparency and strict enforcement of the Reinsurance Brokerage Directive, 2021.
Gandaki Province raises public transport fares by up to 24 percent
The Ministry of Physical Infrastructure Development and Transport Management in Gandaki Province has introduced a revised public transport fare structure effective from Wednesday. The adjustment, the first in more than four years, increases fares between 5.5 percent and 24 percent based on 13 indicators, including fuel prices and geographical conditions. Long-distance bus fares have increased by 23.51 percent, while the minimum city bus fare in Pokhara Valley has risen from Rs 20 to Rs 24. Taxi meter rates have also been revised to Rs 11 per 200 meters. However, the government has retained existing fare rates for electric vehicles to encourage environmentally friendly transportation. Authorities have warned transport operators against overcharging passengers.
Sudurpaschim local units seek Rs 3.629 billion in provincial grants
The 88 local units of Sudurpaschim Province have proposed 472 projects worth Rs 3.629 billion in grants for the upcoming fiscal year 2026/27. According to the Provincial Policy and Planning Commission, local governments have sought Rs 1.25 billion for 237 projects under special grants and Rs 2.43 billion for 235 projects under complementary grants. Despite the high demand, the commission said project approvals would be limited by a reduced budget ceiling. The grants, provided under the Intergovernmental Fiscal Management Act, 2017, are intended to address regional infrastructure gaps and support local development priorities through coordinated provincial funding.
Technical issues delay 29 infrastructure projects in Kailali
The Infrastructure Development Office in Kailali said 29 out of 800 planned infrastructure projects will not be implemented during the current fiscal year. Although Rs 178.9 million had been allocated for the projects, problems such as overlapping project titles, lack of multi-year funding guarantees, and jurisdictional disputes have prevented implementation. The asphalt paving project at Tikapur Airport was canceled because the airport falls under federal jurisdiction rather than provincial authority. Similarly, several bridge projects in Dhangadhi and Kailari have been delayed due to incomplete Detailed Project Reports (DPRs) and funding shortages. Officials said many smaller projects valued below Rs 2.5 million have also faced administrative and implementation difficulties.
Budget freeze stalls Rs 480 million development projects in Jumla
Major development projects under the Intensive Urban and Building Construction Project in Jumla have been halted after the Ministry of Finance froze the budget. A total of 16 projects worth Rs 480 million had been approved for the current fiscal year across Jumla, Mugu, Humla, Dolpa, and Kalikot, with each project valued at Rs 30 million. However, the federal government has suspended the projects, leaving only five school buildings currently under construction. In Mugu, seven large projects, including the Rara Integrated Tourism Infrastructure project, remain stalled. Local stakeholders have expressed concern that political changes and delays in project reporting are causing important development funds to go unused.
Anjan Shrestha assumes office as FNCCI president
Anjan Shrestha has officially assumed office as president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). He took charge during a ceremony held at the FNCCI central office on Thursday, succeeding outgoing president Chandra Dhakal. Newly elected office-bearers also formally assumed their respective positions. After taking office, Shrestha said he would continue dialogue and cooperation with the government to create a more confident and supportive environment for the private sector.
Salyan local units receive Rs 128 million in equalization grants
The Ministry of Economic Affairs and Planning of Karnali Province has set a financial equalization grant ceiling of Rs 128.7 million for the 10 local units in Salyan district for fiscal year 2026/27. Sharada Municipality received the highest allocation at Rs 16.2 million, followed by Bangad Kupinde Municipality and Bagchaur Municipality. Among rural municipalities, Kalimati Rural Municipality received Rs 13.3 million, while Kumakh Rural Municipality was allocated Rs 13.1 million. The grants were distributed based on population, geography, and performance indicators under the Intergovernmental Fiscal Management Act. Local governments are now preparing their annual budgets according to provincial and federal funding ceilings.
Municipality pledges Rs 500,000 support for displaced families
Halesi Tuwachung Municipality in Khotang has decided to provide Rs 500,000 in financial assistance to residents displaced from encroached settlements in Kathmandu and other urban areas. During a municipal executive meeting held on Wednesday, the local government formed a committee led by the deputy mayor to collect details of returning residents. Meanwhile, the District Administration Office directed all 10 local units in Khotang to submit records of encroached public land within three days. The initiative follows a federal directive issued on April 29 to reclaim government-owned land and support the dignified relocation of displaced families.
NADA backs MRP labeling policy during meeting with industry minister
A delegation from the NADA Automobiles Association of Nepal, led by president Surendra Kumar Upreti, met Industry, Commerce and Supplies Minister Gauri Kumari Yadav to discuss mandatory Maximum Retail Price (MRP) labeling on automobile products. NADA expressed support for the policy, stating that it would improve transparency, increase government revenue, and reduce unauthorized business practices. However, the association pointed out practical challenges in labeling hundreds of small spare parts contained within a single package. Minister Yadav acknowledged the concerns and said the government would work toward a practical solution. She also praised the automobile industry’s growing shift toward completely knocked-down (CKD) assembly models for vehicles, lubricants, and batteries within Nepal.
Second South Asian Trade Fair 2026 begins in Kathmandu
The Second South Asian Trade Fair 2026 opened on Thursday at the Bhrikutimandap Exhibition Ground in Kathmandu. Organized by Introduction Trade Shows Nepal in collaboration with Bangladesh’s Ministry of Industries, the event features participation from all eight SAARC member countries. The trade fair, which runs until May 11, showcases handicrafts, local food products, garments, furniture, and electric vehicles. Organizers expect more than 5,000 entrepreneurs and around 100,000 visitors to attend. The exhibition aims to strengthen regional trade ties, promote export-oriented products, and encourage cooperation between buyers and sellers across South Asia.
Taksar Pikhuwa Khola Hydropower opens Rs 211 million IPO
Taksar Pikhuwa Khola Hydropower has opened its Initial Public Offering (IPO) for the general public. The company is issuing 2,115,455 shares at a face value of Rs 100 each, amounting to Rs 211.5 million. The public offering follows the earlier allocation of shares to project-affected locals and migrant workers. Out of the total approved issuance of 4.23 million shares, 151,533 units have been reserved for mutual funds and 60,613 units for employees. The IPO is being managed by Prabhu Capital and will remain open until May 11. Investors may apply for a minimum of 10 shares and a maximum of 50,000 shares.
Committee publishes names of 82 major cooperative defaulters
The Problematic Cooperative Management Committee has made public the names of 82 major borrowers linked to 10 troubled cooperatives after repeated failure to repay loans. The list includes borrowers associated with cooperatives such as Hamro Sagarmatha, Ghedung Multipurpose, Oriental, Tulsy, Gautam Shree, and Ideal Yamuna Multipurpose Cooperative. According to the committee, investigations found that several individuals had borrowed from multiple cooperatives simultaneously. Authorities said recovering funds from large defaulters is essential to begin refunding small depositors affected by the cooperative crisis. Borrowers have been instructed to contact the committee immediately and clear outstanding dues, with legal action to follow against those who fail to comply.
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