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 indicators present a picture of stability mixed with underlying structural pressures. The stock market remained weak, with NEPSE falling despite a turnover of Rs 3.77 billion, suggesting that liquidity exists but investor confidence remains cautious. At the same time, gold prices climbed to a record Rs 296,900 per tola, reflecting continued demand for safe-haven assets.
The central bank’s decision to absorb Rs 60 billion through a one-month deposit collection instrument shows that excess liquidity is still a major concern, while disciplinary action against commercial banks highlights tighter regulatory enforcement and weaknesses in governance and risk management. Digital transformation is accelerating, as the Nepal Telecommunication Authority pushes for phased 5G expansion and the Inland Revenue Department promotes electronic payments through incentive schemes.
Revenue collection at Mechi Customs improved and provincial spending on education infrastructure indicates ongoing public investment, yet Agricultural Development Bank’s sharp profit decline despite business growth points to rising credit risk and asset-quality concerns.
Positive developments such as Nepal Pharmaceuticals returning to profit after 25 years and stronger earnings at development banks are encouraging, but the overall outlook remains one of moderate growth constrained by financial-sector vulnerabilities and uneven institutional performance.
NEPSE slips 4.05 points with Rs 3.77 billion turnover
The Nepal Stock Exchange (NEPSE) declined by 4.05 points (0.15 percent) on Friday, closing at 2,650.09 on the final trading day of the week. The Sensitive Index fell by 1.16 points to 463.56, and both the Float and Sensitive Float indices also posted losses. A total of 10.31 million shares of 334 companies were traded through 46,912 transactions, generating a turnover of Rs 3.774 billion. Share prices of 86 companies rose, 184 declined, and six remained unchanged. Among the 13 sectoral indices, only four advanced while the remaining nine ended lower.
Gold rises to Rs 296,900 per tola
Gold prices in Nepal increased by Rs 900 per tola on Friday, reaching Rs 296,900, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also edged up by Rs 10 per tola to Rs 4,580.
NRB issues Rs 60 billion one-month deposit collection instrument
Nepal Rastra Bank (NRB) has issued a Rs 60 billion one-month deposit collection instrument through a competitive auction to manage liquidity in the financial system. Class A, B, and C banks and financial institutions participated in the bidding through the central bank’s online auction platform. The settlement has been scheduled for September 7, 2026. Under the NRB guidelines, the funds mobilized through the instrument cannot be included in investment portfolios, although they remain eligible for calculating the statutory liquidity ratio (SLR). The central bank has also prohibited premature withdrawal or early settlement of the deposits.
NRB takes action against banks and former CEO
The Bank Supervision Department of Nepal Rastra Bank has imposed disciplinary measures on Prabhu Bank, Rastriya Banijya Bank, and Agricultural Development Bank for regulatory violations detected during the final quarter of fiscal year 2025/26. Former Prabhu Bank Chief Executive Officer Ashok Sherchan was fined Rs 500,000 under Section 100(2)(c) of the NRB Act, 2002 for breaching directives, improper loan classification, inadequate provisioning, and submitting misleading financial information. Prabhu Bank’s board has signed a commitment to correct the compliance shortcomings, while the two state-owned banks received warnings for not freezing customer accounts in a timely manner.
NTA seeks phased 5G rollout plans
The Nepal Telecommunication Authority (NTA) has issued an eight-point directive requiring operators including Nepal Telecom and Ncell to submit phased action plans for expanding 5G services in major urban areas. The authority has also instructed providers to improve 4G coverage, enhance data speeds, upgrade customer support systems using artificial intelligence, and regularly update service coverage maps.
IRD announces first taxpayer incentive winners
The Inland Revenue Department (IRD) has published the results of its taxpayer incentive reward scheme for consumers who made purchases through electronic payment systems or uploaded valid purchase bills between July 17 and July 31, 2026. A consumer from Punarnawas Municipality, Kanchanpur, who purchased goods worth Rs 250 through digital payment at Shiva Krishna General Store on July 23, won the Rs 1 million bumper prize. In addition, 15 daily winners received Rs 100,000 each after tax deduction under the consumer promotion program.
New electricity tariff guidelines issued
The Electricity Regulatory Commission has issued the Electricity Consumer Tariff Determination Guidelines, 2026 to make tariff setting more transparent, cost-based, and consumer-friendly. Distribution companies will now be required to submit tariff applications at least once every three years, with annual reviews and adjustments based on actual financial performance and national energy policies.
Mechi Customs achieves 93 percent of revenue target
The Mechi Customs Office collected Rs 17.677 billion in revenue during fiscal year 2025/26, achieving 93.30 percent of its assigned target of Rs 18.887 billion. Revenue collection increased by about Rs 1.746 billion compared to the previous fiscal year, continuing a gradual improvement in target achievement at the major eastern border trade point.
Dang Agriculture Center spends over 70 percent budget
The Agriculture Knowledge Center, Dang, spent 70.52 percent of its revised annual budget in fiscal year 2025/26. After a 20 percent budget cut, the working budget was reduced from Rs 50.8 million to Rs 47.2 million, of which Rs 35.8 million was utilized for administration, agricultural production, cooperative development, and federal grant programs.
Karnali invests Rs 48 million in Jumla school infrastructure
The Karnali Province Ministry of Social Development invested nearly Rs 48 million in educational and sports infrastructure across 23 community schools in Jumla during fiscal year 2026/27. Projects include construction of school buildings, boundary walls, and sports grounds, with the aim of improving learning conditions and addressing declining enrollment in public schools.
Tulsipur Land Office collects Rs 593 million
The Land Administration Office, Tulsipur, collected Rs 593.4 million in revenue during fiscal year 2025/26. The collection included Rs 370.7 million from registration and service fees and Rs 222.6 million from capital gains tax. The office maintained uninterrupted services despite a fire during the Gen Z protests of September 8–9, 2025, which destroyed its building and official documents.
ADBL profit falls 29.5% despite business expansion
State-owned Agricultural Development Bank Limited (ADBL) posted a net profit of Rs 2.63 billion in fiscal year 2025/26, down 29.52 percent from the previous year. The decline was driven by lower net interest income, rising personnel expenses and a sharp increase in loan impairment charges as non-performing loans climbed to 4.07 percent. Despite weaker profitability, the bank expanded deposits to Rs 293.35 billion and lending to Rs 247.14 billion. Earnings per share fell to Rs 16.11, while distributable profit suggested a dividend capacity of about 6.5 percent.
Standards approved for ethanol and bridge bearings
The Nepal Bureau of Standards and Metrology has approved new quality standards, including specifications for ethanol used in blended gasoline and elastomeric bridge bearings. The council also endorsed international standards related to rubber hardness testing and compression-set determination to improve industrial quality and align domestic production with global practices.
Gorkha-Manaslu emerges as top restricted trekking route
The Department of Immigration reported that an average of 24,595 foreign trekkers obtained permits for Nepal’s restricted areas annually over the last five years. The Gorkha-Manaslu route was the most popular destination, attracting 17,710 trekkers in 2025. Upper Mustang and Humla ranked second and third. Authorities said stricter tracking systems are being introduced to improve safety and emergency rescue management in high-altitude areas.
Nepal Pharmaceuticals returns to profit after 25 years
Nepal Pharmaceuticals has reported a net profit of Rs 30 million in fiscal year 2025/26, marking its return to profitability after 25 years. The state-owned company had recorded a loss of more than Rs 100 million in the previous year. The turnaround followed the acquisition of Good Manufacturing Practice (GMP) certification, which enabled expansion of production and participation in government supply contracts. With a budget of Rs 240 million for the current fiscal year, the company is upgrading automation equipment to increase production capacity and supply essential medicines to government hospitals and local governments.
Makwanpur exports industrial goods worth Rs 659 million
Industries in Makwanpur exported goods worth Rs 658.9 million in fiscal year 2025/26, slightly lower than the previous year after two manufacturing firms reported no exports. Pact Group Closure Systems Nepal and Himalaya Katha Industry remained the leading exporters, with shipments including beverage closures and spice products.
National House Building Fest 2026 to feature digital studio
Organizers of the National House Building Fest 2026 announced that the exhibition will include a dedicated digital studio to livestream presentations on television and social media. The event, scheduled for December 24-27, is expected to host more than 200 stalls and target transactions exceeding Rs 4 billion.
Kathmandu store fined for overcharging cooking gas
The Department of Commerce, Supplies and Consumer Protection fined Everest Mart Store in Kathmandu Rs 200,000 for charging more than the regulated price for cooking gas. The department also ordered another business to submit sales and purchase records within three days as part of intensified market monitoring. Police acknowledge lapses after fruitless raid on Biratnagar industrialist Nepal Police admitted weaknesses in intelligence verification after a five-and-a-half-hour raid on the home of Biratnagar industrialist Prakash Mundada ended without recovering any illegal materials. Morang Police Chief SP Kabit Katwal has been asked to provide a written explanation following criticism from the business community.
Excel and Lumbini Development Banks show strong dividend potential
Excel Development Bank reported a net profit of Rs 309.4 million with an estimated dividend capacity of 14.38 percent. Lumbini Development Bank earned Rs 851 million and showed a stronger dividend capacity of 16.99 percent, supported by higher interest income and lower impairment costs.
Kumari Capital announces dividends for three mutual funds
Kumari Capital declared cash dividends for three mutual fund schemes. Investors in Kumari Equity Fund and Kumari Dhanabriddhi Yojana will receive 10 percent, while Kumari Sabal Yojana investors will receive 2.9 percent. The book closure date has been set for August 20.
UAE fragrance brand enters Nepali market
The UAE-based fragrance brand Zam Zam Attar & Perfumes, founded by the Zam Zam Brothers, has officially entered the Nepali market. The company is promoting its products through digital campaigns, fan events and local partnerships in Kathmandu.
Janakpur fisheries center produces 43 million hatchlings
The Fisheries Human Resource Development and Technology Testing Center in Janakpur produced 43.8 million hatchlings, along with fry, fingerlings and table fish over the past year. The center generated revenue from fry sales, government property leases and administrative services while supplying fish seed to farmers in Madhesh, Bagmati and Koshi provinces.
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