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 but cautiously optimistic outlook, with improving market sentiment and strong external fundamentals contrasting with persistent structural weaknesses. The NEPSE’s broad-based recovery, record foreign exchange reserves, robust remittance inflows, and the Asian Development Bank’s long-term financing commitments point to growing investor confidence and macroeconomic resilience.
Nepal Rastra Bank’s projection of 7 percent economic growth and new policy measures, including allowing banks to invest in foreign government securities, signal a shift toward more proactive liquidity management. However, weak private sector credit growth, subdued capital expenditure, continued reliance on debt servicing, unresolved cooperative sector liabilities, delayed agricultural subsidies, and uneven regional economic performance highlight enduring challenges that could constrain the pace of recovery.
Overall, the day’s developments suggest that while macroeconomic stability has strengthened considerably, sustaining higher growth will depend on translating abundant liquidity and external strength into productive domestic investment, infrastructure development, and private sector expansion.
NEPSE rises 24.57 points as turnover reaches Rs 4.40 billion
The Nepal Stock Exchange (NEPSE) index climbed 24.57 points, or 0.93 percent, on Tuesday to close at 2,651.68, recovering from the previous day’s decline. Daily turnover increased to Rs 4.40 billion from Rs 3.55 billion, with 9.52 million shares of 352 companies traded through 72,022 transactions. Share prices of 210 companies advanced, 57 declined, and 10 remained unchanged, while all 13 sectoral indices ended the day higher. Kalanga Hydro posted the highest gain of 14.99 percent, whereas Atmanirbhar Laghubitta Bittiya Sanstha recorded the biggest loss at 13.78 percent. KBL Debenture led trading activity with transactions worth Rs 207.5 million.
NRB projects 7% economic growth for next fiscal year
Nepal Rastra Bank (NRB) has projected Nepal’s economy to grow by 7 percent in the fiscal year 2026/27, supported by policy reforms and improving private sector confidence. The forecast follows an estimated economic growth rate of 3.85 percent in the current fiscal year 2025/26. Inflation reached 5.04 percent in May 2026, driven largely by higher food and energy prices. Strong remittance inflows have boosted foreign exchange reserves to record levels and maintained ample liquidity in the banking system. However, credit expansion remains weak, while commercial banks continue to face pressure on asset quality and profitability. The central bank also noted that although government revenue is sufficient to meet regular administrative expenses, capital expenditure remains low, with a large share of new borrowing being used to repay existing debt instead of funding infrastructure projects.
NRB releases annual monetary policy review
Nepal Rastra Bank (NRB) today published its annual monetary policy review for the fiscal year 2025/26. The report shows that broad money supply grew by 15.2 percent, exceeding the initial target of 13 percent. However, private sector credit expanded by only 6.5 percent, well below the projected 12 percent. The average consumer inflation rate over the first 10 months stood at 2.66 percent. Meanwhile, the country’s gross foreign exchange reserves reached a level sufficient to finance 19.2 months of goods and services imports, significantly surpassing the target of seven months.
Gold falls to Rs 288,000 per tola, silver declines to Rs 4,555
Gold and silver prices declined on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 900 per tola (11.66 grams) to Rs 288,000, down from Rs 289,400 on Monday. Silver also became cheaper, falling by Rs 30 per tola to Rs 4,555, compared with Rs 4,585 per tola a day earlier.
ADB commits USD 2.4 billion in support through 2029
The Asian Development Bank (ADB) has expanded its country partnership strategy for Nepal, committing financial assistance of up to USD 2.4 billion through 2029. The funding will focus on employment generation, private sector development, improved public service delivery, and digital transformation. Marking 60 years of partnership with Nepal, ADB signed two loan agreements on Tuesday worth a combined USD 165 million. These include USD 115 million for an integrated water supply project benefiting around 850,000 people and USD 50 million to modernize cross-border trade facilities. Annual lending is expected to reach approximately USD 660 million this year.
Commercial banks allowed to invest in foreign government securities
Nepal Rastra Bank (NRB) has introduced new regulatory provisions under its upcoming monetary policy framework, allowing commercial banks to invest directly in foreign government securities. The measure aims to make better use of the country’s growing foreign exchange reserves while addressing excess liquidity in the banking system. The framework also introduces a sterilized intervention mechanism, enabling the central bank to issue government securities to absorb surplus liquidity created during foreign exchange purchases. According to the central bank, the new policy is designed to strengthen liquidity management and help maintain price stability by making more effective use of foreign exchange reserves.
NRB invites bids for Rs 25 billion development bond
Nepal Rastra Bank (NRB) has invited bids for development bonds worth Rs 25 billion. According to a notice issued by the central bank today, bids for the “Bond 2027 ‘E'” can be submitted online. Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions licensed by NRB are eligible to participate. Bidders must specify both the amount they wish to purchase and their proposed interest rate, which may be quoted to four decimal places. The minimum bid amount has been set at Rs 50 million, while higher bids must be submitted in multiples of Rs 50 million up to the total amount offered.
Government allocates Rs 32.46 billion for chemical fertilizer imports
The Ministry of Agriculture, Forestry, and Environment has proposed a budget of Rs 73.12 billion for the fiscal year 2026/27 during a National Assembly meeting. Of the total allocation, Rs 32.46 billion—about 59 percent of the agriculture budget—has been earmarked for the procurement of chemical fertilizers. Other key allocations include Rs 2.64 billion for agricultural research, Rs 2.62 billion for modernization initiatives, and Rs 2.19 billion for crop insurance. Under the proposed distribution, central agencies will manage Rs 60.3 billion, while local governments will receive Rs 32 million.
Bagmati real estate transactions increase 33.01%, Madhesh records decline
Real estate transactions in Bagmati Province increased by 33.01 percent during the first nine months of the current fiscal year, according to the latest report released by Nepal Rastra Bank (NRB). Madhesh Province was the only province to record a decline, with transactions falling by 4.79 percent over the same period. Nationwide, real estate transactions rose by 6.42 percent compared with the corresponding period of the previous fiscal year, reversing the 4.52 percent decline recorded a year earlier. Deed registration transactions also increased, with overall registrations rising by 0.62 percent and transactions under deed registration growing by 12.17 percent. The total value of real estate transactions reached Rs 183.90 billion, up from Rs 100.07 billion during the same period last fiscal year.
Bagmati to refund small depositors of five troubled cooperatives
The Bagmati Province Office of the Problematic Cooperative Management Committee will begin refunding small depositors of five troubled cooperatives between July 11 and July 16. The decision, made under the leadership of Chief Minister Indra Bahadur Baniya, covers Civil Saving and Credit Cooperative, Darshan Saving and Credit Cooperative, Sumeru Saving and Credit Cooperative, Laligurans Saving and Credit Cooperative, and National Namobuddha Saving and Credit Cooperative. Committee member Rameshwar Dhakal said Rs 90 million has been mobilized to reimburse around 3,000 small depositors. Depositors of Civil, Sumeru, Laligurans, and Namobuddha cooperatives will receive up to Rs 100,000 each, while those of Darshan Cooperative will receive up to Rs 10,000.
Sudurpaschim tables Rs 37.703 billion budget
The Sudurpaschim Province government has formally tabled its Rs 37.703 billion budget for the fiscal year 2026/27 in the Provincial Assembly. Economic Affairs Minister Bikram Singh Dhami presented the budget on Tuesday, 22 days after its initial introduction on June 15, following delays caused by internal political disagreements. The budget will be financed through Rs 1.720 billion in internal revenue, Rs 10.249 billion from federal revenue sharing, Rs 9.65 billion carried over from the 2025/26 fiscal year’s surplus, Rs 9.063 billion in federal fiscal equalization grants, and Rs 6.035 billion in conditional grants.
Sugarcane farmers receive Rs 1.76 million in payments
Sugarcane farmers in Mahottari have received more than Rs 1.76 million from Everest Sugar and Chemical Industries and Siddhibinayak Sugar and Chemical Industries for crops supplied during the fiscal year 2025/26. District authorities said payments for approximately 2.8 million quintals of sugarcane are expected to be fully settled within the current fiscal year under the supervision of a committee led by the Chief District Officer. However, a government subsidy worth Rs 207 million remains unpaid. The local payment committee has therefore requested the Office of the Comptroller to release the pending subsidy.
Organic sales center opens in Chitwan
A new organic sales center has been established in Bharatpur Metropolitan City–7 to improve market access for organic farmers by connecting them directly with consumers. Operated by the District Organic Association Chitwan, the center was built at a cost of Rs 2 million with support from the District Agricultural Development Office, Chitwan. The initiative was launched to address marketing challenges caused by a mismatch between production and demand. Organic farmers can now sell and distribute their produce through the facility. Currently, farmers in the district cultivate organic crops on 264,132.40 square meters of land. The center will offer a range of certified organic products, including rice, lentils, fruits, vegetables, dairy products, herbs, and other nutritious food items, benefiting both producers and consumers.
Authorities publish names of Tulsi Cooperative loan defaulters
The Office of the Problematic Cooperative Management Committee has released the names of 377 borrowers from the troubled Tulsi Multi-Purpose Cooperative to facilitate loan recovery and protect depositors’ interests. The committee stated that the list was prepared using available loan records. Individuals who have already repaid their loans but whose names appear on the list have been asked to submit proof of payment to the committee. Remaining borrowers have been instructed to clear their outstanding dues, failing which legal recovery proceedings will be initiated in accordance with existing laws.
Commercial farming expands in Bhojpur through NAMP support
The National Agricultural Modernization Program (NAMP) has boosted commercial farming in Bhojpur by providing grants and technical assistance to farmers. Under the Program Implementation Unit in Sankhuwasabha, the initiative manages a Cardamom Super Zone covering 35 wards and an Orange Zone across 26 wards. During the current fiscal year, grants were provided to 109 farmers. Among the beneficiaries, Sangeeta Shrestha of Bhojpur-5 and four other commercial farming enterprises each received Rs 400,000. The program also supported 54 irrigation projects, distributed 30 agricultural kilns, and planted 55,000 seedlings across 51,890.75 square meters.
Bird flu contained in seven districts, remains active in four
Bird flu has been brought under control in Jhapa, Morang, Sunsari, Mahottari, Bara, Chitwan, and Nawalparasi, while outbreaks remain active in Kathmandu, Lalitpur, Bhaktapur, and Kavrepalanchowk, according to the Department of Livestock Services. Authorities deployed response teams to cull and safely dispose of infected poultry, poultry products, and related materials in affected areas after the disease spread to 11 districts. The Livestock Quarantine Office also intensified surveillance and mobilized inspection teams to destroy illegally imported poultry. With the situation improving, restrictions on poultry transportation have now been eased.
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