KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic and governance sectors reflected a blend of positive market momentum, tighter regulation, and ongoing development challenges this week. The NEPSE index closed higher with gains across all sectors, while rising gold and silver prices pointed to sustained investor interest in both equities and safe-haven assets.
Amid excess liquidity in the banking system, Nepal Rastra Bank (NRB) absorbed Rs 40 billion to maintain financial stability. At the same time, the government intensified oversight measures through digital customs reforms, stricter monitoring of riverbed extraction, and stronger regulation of the cooperative sector, including action against inactive cooperatives and major loan defaulters.
Development and public service initiatives also remained active across the country. Agricultural programs such as soil testing camps, livestock vaccination drives, and the promotion of vermicompost highlighted efforts to improve productivity and sustainable farming practices.
Infrastructure progress continued with the completion of a bridge along the Beni–Jomsom–Korala road corridor, although delays in the Kakarbhitta–Laukahi highway expansion and stalled cold storage projects exposed continuing implementation and supply-chain problems.
Meanwhile, police enforcement actions against illegal Yarsagumba collection and traffic violations reflected increased administrative monitoring. Overall, the developments indicate a continued push toward economic management, regulatory reform, and rural development despite persistent structural and administrative hurdles.
NEPSE gains 27.49 points to close week at 2,745.65
The Nepal Stock Exchange (NEPSE) ended higher on Friday, the final trading day of the week, with gains recorded across all sectors. The benchmark index climbed 27.49 points, or 1.01 percent, to close at 2,745.65 points. The sensitive index also rose by 3.24 points to 467.33, while the float index and sensitive float index increased by 1.02 percent and 0.79 percent respectively. A total of 7,478,562 shares of 335 companies were traded through 53,014 transactions, generating a turnover of Rs 3.286 billion. Market activity improved compared to earlier sessions this week, with all 13 sectoral indices ending in positive territory, led by finance, hydropower, and development bank groups.
Gold and silver prices increase
Gold and silver prices rose in the domestic market on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold increased by Rs 1,300 per tola, reaching Rs 299,900 per tola. On Thursday, gold was traded at Rs 298,600 per tola. Similarly, silver prices rose by Rs 120 per tola to reach Rs 5,275 per tola, compared to Rs 5,155 per tola on the previous trading day.
NRB absorbs Rs 40 billion liquidity from banking system
The Nepal Rastra Bank (NRB) has absorbed Rs 40 billion from the banking system to manage excess liquidity. Through its deposit collection instrument, the central bank conducted a bidding session at 3:00 pm on Friday. Commercial banks, development banks, and finance companies were allowed to participate with a minimum bid amount of Rs 100 million. The 96-day instrument will mature on August 12, when both principal and interest will be repaid. NRB used a multiple interest rate bidding mechanism to regulate liquidity withdrawal and maintain stability in the interbank market amid surplus liquidity in the financial sector.
Lumbini Province collects Rs 1.589 billion revenue in nine months
Lumbini Province has collected Rs 1.589 billion in internal revenue during the first nine months of the current fiscal year 2025/26, covering the period from July 17, 2025, to April 13, 2026. The amount represents only 32.75 percent of its annual target of Rs 4.88 billion. Major revenue sources included vehicle taxes amounting to Rs 1.696 billion and land registration fees worth Rs 664.7 million shared with local governments. The province also generated Rs 583.4 million from driver’s licence fees and Rs 501 million from forest-related income. In addition, the province received Rs 8.756 billion through federal grants and Rs 7.862 billion through revenue-sharing mechanisms.
Govt approves USD 1.27 million grant for native fish conservation
The government has accepted a grant of around USD 1.27 million from the Global Biodiversity Framework Fund for the conservation of endangered native fish species in the Middle Trishuli River Basin. The decision was taken during a Cabinet meeting held on May 5. The project aims to protect indigenous fish species including Asala, Katle, and Sahar. Although the total grant amounts to USD 1.45 million, the remaining USD 1.27 million will be deposited into the Federal Consolidated Fund after deducting technical assistance expenses. The project, titled “Conservation of Endangered Cold Water Fish Species and Sustainable Livelihood of Fishing Communities in the Middle Trishuli River Basin,” will be implemented in Nuwakot from 2026 to 2029.
Customs Department launches digital TIV declaration portal
The Department of Customs has launched a new TIV Declaration Portal under the Nepal National Single Window system to modernize trade facilitation services. Following a decision made on April 30, the department shifted all TIV-related declarations from a manual process to a digital platform. The portal enables stakeholders to submit declarations online and offers both manual and electronic payment options for fees. All customs offices and subordinate agencies have been instructed to implement the digital system, which is available through the department’s official website. Authorities believe the new platform will help reduce processing time and improve transparency in trade documentation.
Federal Parliament Secretariat dissolves trade union
The Federal Parliament Secretariat has dissolved its employee trade union following a government ordinance amending several Nepal laws. The Employee Administration Branch issued a notice stating that Section 73 of the Federal Parliament Secretariat Act, 2007, which previously allowed non-security employees of Gazetted Third Class or below to form unions, has been removed. The move is part of a broader government effort to restructure administrative bodies through an ordinance. As a result, all formal trade union activities and professional associations within the secretariat have been dissolved with immediate effect.
PMO directs local units to regulate river and mine extraction
The Office of the Prime Minister and Council of Ministers (PMO) has instructed ministries and local governments to ensure that extraction of riverbed and mineral materials complies with environmental standards. The directive aims to curb illegal extraction and smuggling of stones, gravel, and sand. Authorities have been ordered to conduct regular monitoring and restrict extraction activities between 6:00 am and 6:00 pm. The PMO also stressed that all transactions must be conducted with authentic invoices reflecting actual market value to prevent revenue leakage. The Ministry of Home Affairs has been directed to submit monthly progress reports beginning from the first week of every month to monitor implementation.
Committee publishes list of 110 major debtors from problematic cooperatives
The Problematic Cooperative Management Committee has made public the names of 110 major debtors linked to 11 cooperatives declared problematic. The cooperatives include Gorkha Saving, Kantipur Saving, Lali Gurans Multipurpose, and Shiva Shikhar Multipurpose Cooperative. The committee has instructed debtors to immediately clear outstanding principal amounts, interest, and penalties at its office. It warned that failure to comply could result in asset auctions, blacklisting in the financial system, and possible imprisonment. The committee also stated that repeat defaulters could face suspension of public utility services, including electricity and water supply. Authorities said the measure is aimed at recovering funds and facilitating the return of savings to victims affected by cooperative mismanagement.
Over 11,000 cooperatives begin registration with national regulatory authority
Around 11,600 savings and credit cooperatives are currently undergoing registration with the National Cooperative Regulatory Authority. Established a year ago to strengthen transparency and oversight, the authority has already issued operating licences to 3,000 cooperatives that completed online applications. At present, about 8,000 cooperatives are awaiting document verification, while 3,646 institutions have been identified for incomplete documentation. To reduce financial risks, the authority has partnered with the Institute of Chartered Accountants of Nepal to strengthen auditing procedures. Under the new regulations, all cooperatives operating at federal, provincial, and local levels must obtain clearance from the authority to continue financial transactions and safeguard depositors’ funds.
Birgunj begins process to cancel registration of 88 inactive cooperatives
Birgunj Metropolitan City has issued a 35-day public notice to cancel the registration of 88 inactive cooperatives operating within its jurisdiction. According to the metropolis, the cooperatives failed to submit monthly progress reports, annual audit reports, and minutes of annual general meetings as required by the Metropolitan Cooperative Act, 2017. The institutions also failed to update records in the Cooperative and Poverty Management Information System and have remained out of official contact. Under Section 66 of the local law, the metropolitan city is authorized to dissolve cooperatives that fail to maintain transparency and operational compliance. Officials said the move is part of broader efforts to reform the cooperative sector and protect the interests of members and depositors.
Traffic violations generate Rs 1.87 million revenue in 24 hours
The Kathmandu Valley Traffic Police Office took action against 1,806 motorists for various traffic violations over the past 24 hours, collecting around Rs 1.87 million in fines. The violations included 77 cases of drink-driving, 162 cases of unauthorized ride-sharing operations, and 106 instances of traffic signal violations. Similarly, 88 drivers were penalized for overspeeding, while 84 were booked for violating lane discipline. Police also recorded 39 cases of unnecessary honking, 77 incidents of footpath parking, and 111 cases of driving on the wrong side of one-way roads. In addition, 1,062 motorists were penalized for other traffic-related offenses.
Police detain 25 people for illegal Yarsagumba collection in Mugu
Police in Mugu have detained 25 individuals, including a minor, for illegally entering highland pastures to collect Yarsagumba without official permits. Although Mugum Karmarong Rural Municipality has yet to issue a formal notice opening the collection season, people from various districts and neighboring India have already started arriving in the region. Superintendent of Police Rabiraj Thapaliya said security arrangements have been intensified in more than two dozen highland areas to prevent unauthorized entry and overexploitation of the valuable medicinal herb. Yarsagumba remains a major source of income for remote Himalayan communities, with many households relying on the annual harvest for their livelihood. Police said the detainees will remain in custody until legal procedures are completed.
Free soil testing camp benefits 125 farmers in Kohalpur
A two-day free soil testing camp organized by the Agriculture Development Branch of Kohalpur Municipality has provided services to 125 farmers. In coordination with the Soil and Fertilizer Testing Laboratory in Khajura, technicians collected 125 soil samples from all 15 wards of the municipality. The programme aimed to identify soil nutrient deficiencies and pH levels to help farmers improve fertilizer use and reduce production costs. Laboratory reports are expected within two days, after which farmers will receive recommendations on crop selection and soil management practices. Officials said the initiative helped raise awareness among traditional farmers who often lack access to modern soil testing facilities.
Farmers in Dhangadhimai adopt vermicompost to improve soil health
Farmers in Dhangadhimai Municipality of Siraha have increasingly shifted from chemical fertilizers to organic vermicompost, commonly known as earthworm manure, to improve agricultural productivity and soil quality. Members of the Maharani Women Farmers Group in Ward No. 10 have established commercial vermicompost production units using cattle waste and organic materials processed by earthworms. The initiative is being implemented under the Climate-Friendly Village Project supported by CARE Nepal and the National Federation of Farmers Groups. The project covers four local levels in Siraha and two in Saptari districts. Implemented under a 70:30 cost-sharing model between farmers and supporting organizations, the programme aims to increase soil carbon content, reduce greenhouse gas emissions, and lessen women’s workload in farming activities.
Delays in Kakarbhitta–Laukahi road expansion cause hardship for locals
The expansion project of the Kakarbhitta–Laukahi section of the Asian Highway has faced significant delays, with only 42 percent physical progress achieved so far. Although the government had targeted completion by mid-November this year, construction work has been affected by shortages of construction materials and fuel. According to contractor CRFGS-Tundi JV, regional tensions in the Middle East have disrupted the supply of around 5,000 tons of bitumen required for the project. The project is also receiving only 4,000 liters of diesel per day despite requiring between 10,000 and 12,000 liters daily. So far, 13 kilometers of road have been blacktopped, while bridge construction work has progressed steadily. However, unresolved issues related to electric poles and water pipelines continue to obstruct further construction work.
Construction of Rs 53.46 million concrete bridge completed in Thasang
Construction of a 20-meter-long concrete bridge over the Kaikukhola River along the Beni–Jomsom–Korala road section has been completed in Thasang Rural Municipality. The contract agreement for the bridge project was signed on April 23, 2024, at a cost of around Rs 53.46 million. The project also included upgrading access roads and constructing river-training structures to control erosion. So far, 15 concrete bridges have been completed along the 202-kilometer road corridor connecting Parbat to the Korala border point. Currently, one bridge is under construction at Ghamikhola, while six bailey bridges continue to operate along other sections of the strategic highway.
Over 136,000 livestock vaccinated against infectious diseases in Baglung
The Veterinary Hospital and Livestock Service Office in Baglung has vaccinated 136,781 livestock to prevent the spread of infectious animal diseases across six local levels. The vaccination campaign covered Dhorpatan Municipality, Galkot Municipality, Nisikhola Rural Municipality, Tamankhola Rural Municipality, Badigad Rural Municipality, and Tarakhola Rural Municipality. Under the programme, 17,365 cows, 27,052 buffaloes, and 830 pigs were vaccinated against foot-and-mouth disease (FMD). Likewise, 69,484 goats and 13,379 sheep received vaccines against peste des petits ruminants (PPR), while 7,774 dogs were administered anti-rabies vaccines. In addition, 897 pigs were vaccinated against classical swine fever (CSF). The second phase of the campaign began on April 14 in Baglung Municipality, Kathekhola Rural Municipality, Jaimuni Municipality, and Bareng Rural Municipality, and is expected to conclude by May 14.
Sudurpaschim to terminate contracts for seven stalled cold chambers
The Directorate of Agriculture Development in Sudurpaschim Province is preparing to terminate contracts for seven cold storage facilities that remain incomplete five years after the agreement was signed. In 2021, contracts worth Rs 59.3 million were awarded for the construction of 13 cold chambers with a combined storage capacity of 645 tons. While six cold chambers worth Rs 29.7 million have already been completed and handed over, construction of the remaining seven units has stalled at various stages, with some lacking mechanical installations. Despite a final deadline set for June 29, contractors have failed to resume work. The directorate has now initiated procedures to blacklist the contractors and appoint new builders.
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