KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape presents a mixed picture, marked by weak investor confidence but continuing policy and institutional reforms. The decline in NEPSE, lower trading turnover, and Aviyan Microfinance’s decision to withhold dividends reflect cautious market sentiment and liquidity concerns, while the sharp fall in gold prices signals easing pressure in the precious metals market.
At the policy level, Nepal Rastra Bank’s consultation process for the upcoming monetary policy, the IMF’s additional USD 42.9 million support, and the launch of the Nepal–India cross-border digital payment system indicate ongoing efforts to strengthen financial stability, transparency, and economic integration.
Meanwhile, concerns raised by FNCCI and governance issues within SEBON highlight persistent institutional and implementation challenges that could affect economic performance. Increased public spending through health insurance reimbursements, renewed momentum in major infrastructure projects such as Sunkoshi-Marin, expansion of commercial agriculture in Ilam, and reforms within IPPAN suggest continued investment in long-term development, although effective execution and regulatory certainty remain critical to sustaining growth and restoring private-sector confidence.
NEPSE declines 20.27 points as turnover falls to Rs 4.084 billion
The Nepal Stock Exchange (NEPSE) opened the trading week on a negative note, losing 20.27 points, or 0.73 percent, to close at 2,735.14 on Monday. The Sensitive Index also dropped by 0.55 percent to settle at 469.37 points. Investors traded 9.23 million shares of 356 listed companies through 56,845 transactions, generating a turnover of Rs 4.084 billion, lower than the previous trading session. Market performance remained weak, with only 43 companies posting gains, while 321 declined and six remained unchanged. Among the 13 sector indices, only the Finance sector recorded an increase of 0.26 percent. The Trading, Others, and Development Bank groups experienced the largest declines, reflecting widespread selling pressure across the market.
Gold falls to Rs 299,900 per tola while silver edges higher
Gold prices declined sharply in the domestic market today, dropping by Rs 8,100 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious metal is now trading at Rs 299,900 per tola, down from Rs 308,000 per tola on Sunday. Silver prices, however, registered a modest increase of Rs 10 per tola, reaching Rs 4,905 compared to the previous day’s rate of Rs 4,895 per tola.
NRB seeks public input for upcoming monetary policy framework
Nepal Rastra Bank (NRB) has invited stakeholders, financial experts, and business organizations to submit recommendations for the Monetary Policy of fiscal year 2026/27 by June 19. Officials at the central bank stated that the new policy is being designed in alignment with the objectives and programs outlined in the national budget. Dedicated online platforms have been established by research departments to collect suggestions, while regulators continue monitoring economic indicators to ensure the policy supports financial stability and targeted credit expansion.
Government disburses Rs 1.03 billion in health insurance payments
The newly formed government led by Prime Minister Balendra Shah has accelerated the settlement of pending health insurance claims that had accumulated due to earlier budget constraints. Records indicate that Rs 1.03 billion was transferred directly to the bank accounts of 155 government hospitals, 25 community hospitals, and 37 private healthcare institutions nationwide. To strengthen the health insurance program, the government has allocated Rs 15 billion for the current fiscal year and recently released Rs 320.6 million for specialized treatments, including kidney dialysis, heart surgeries, and neuro-spinal procedures for economically disadvantaged patients.
SEBON employees criticize cancellation of 33rd anniversary event
The Employees’ Union of the Securities Board of Nepal (SEBON) has expressed dissatisfaction with management after the abrupt cancellation of the regulator’s 33rd anniversary program. According to union representatives, the unilateral decision undermines organizational culture, affects employee morale, and removes an important forum for engagement with investors and market participants. The union further stated that administrative functions have been negatively impacted by prolonged managerial uncertainty, highlighting that the position of full-time chairman has remained vacant for nearly two months. It called on the government to expedite the appointment process to strengthen oversight of the capital market.
Karnali records 17,000 development projects in project bank
The Karnali Province government has listed approximately 17,000 development projects across its 10 districts through its project bank system as part of preparations for the upcoming budget. Existing planning guidelines require a minimum allocation of Rs 5 million for road projects and Rs 2 million for other development activities. Data from the provincial planning commission shows that 12,746 projects valued below these thresholds have been categorized as “roster projects.” At the same time, 3,445 major projects have been approved, with Surkhet District accounting for the largest share, including 427 road infrastructure initiatives.
Nepal and India introduce cross-border P2P payment system
Nepal and India have jointly launched a cross-border Peer-to-Peer (P2P) digital payment platform that enables instant transfers between individual bank accounts in both countries. The system links India’s Unified Payments Interface (UPI) with Nepal’s National Payment Interface (NPI), implementing an agreement signed during fiscal year 2023/24. Under current regulations, Indian banks may process transfers of up to Rs 200,000 per transaction. Transfers originating from Nepali banks, however, are limited to INR 15,000 per transaction and INR 100,000 per month.
Embassy urges 66 overstaying Nepalis to leave Cambodia within four days
The Embassy of Nepal in Thailand has instructed 66 Nepali citizens who have overstayed their visas in Cambodia to return to Nepal by June 12. The embassy previously worked with Cambodian authorities to secure full waivers of visa overstay penalties and fines for 602 stranded Nepalis. However, the remaining individuals have not coordinated their departure despite repeated notifications through phone calls, emails, and digital communication channels. Cambodian authorities have warned that strict immigration regulations could result in significant financial penalties and long-term imprisonment for undocumented foreign residents.
Authorities uncover food safety violations in three commercial centers
The Department of Food Technology and Quality Control conducted mobile laboratory inspections at restaurants and manufacturing facilities in Kathmandu, Hetauda, and Bara, identifying serious food safety violations. Inspectors detected the use of harmful coloring substances and excessive levels of Total Polar Materials (TPM) caused by repeated use of cooking oil. A TPM level of 45, above permissible limits, was recorded at Hetauda Bhetghat Restaurant. Enforcement teams confiscated and destroyed expired noodles, unsafe roasted products, and substandard bakery shortening from Chunky Restaurant. Meanwhile, Usha Dairy received a three-day warning to improve sanitation and pest management practices.
Sunkoshi-Marin project reissues Rs 14 billion construction tender
The Sunkoshi-Marin Multi-Purpose Diversion Project has reissued an international tender for the construction of its main dam, hydropower station, and hydro-mechanical facilities at Seleghat. The new bidding process follows the termination of a Rs 14.075 billion contract previously awarded to the joint venture of Patel Engineering and Raman Construction, which had completed less than 10 percent of the required work over a three-year period. The Supreme Court cleared the way for the renewed procurement process through a ruling issued on February 10, after which the contractor was officially blacklisted for non-performance.
IPPAN retains independent structure and rejects federation proposal
The Independent Power Producers’ Association, Nepal (IPPAN) has announced that its 24th Annual General Meeting and 8th National Convention will take place this Friday. The association’s executive committee stated that it has withdrawn a previous proposal to transform the organization into a broader business federation. Representing more than 700 private hydropower companies, IPPAN will also present an important governance reform during the gathering. The proposed amendment seeks to end the automatic succession of the senior vice president to the presidency and instead introduce a competitive election process for all executive positions.
FNCCI raises concerns over budget implementation and seeks tax deadline extension
The President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has voiced concerns regarding the implementation of the government’s newly unveiled fiscal budget. Although the private sector welcomed several measures included in the budget, business leaders cautioned that policy inconsistency and inadequate coordination among government agencies could undermine the target of achieving 7 percent economic growth. FNCCI has urged the government to extend the deadline for resolving outstanding tax disputes under the 1 percent settlement scheme until mid-April 2027. The federation also criticized provisions requiring private-sector representatives serving on public boards to disclose their personal assets.
IMF releases $42.9 million under Extended Credit Facility program
The Executive Board of the International Monetary Fund (IMF) has approved a disbursement of USD 42.9 million to Nepal under its ongoing Extended Credit Facility (ECF) arrangement. IMF officials noted that the funding was approved in recognition of Nepal’s progress in implementing structural reforms, modernizing monetary policy frameworks, and enhancing financial transparency, despite slower-than-expected economic growth. The IMF projects Nepal’s economy to expand by around 3 percent during fiscal year 2025/26, citing factors such as political uncertainty, subdued private-sector investment, and geopolitical tensions in the Middle East. With this latest installment, total assistance provided under the 38-month ECF program has reached USD 384.1 million.
Aviyan Microfinance suspends dividend distribution
The board of directors of Aviyan Laghubitta Bittiya Sanstha has decided not to distribute any dividends to shareholders following a financial performance review held on Friday. According to company records, the microfinance institution will retain all profits earned during the previous fiscal year rather than issuing either cash dividends or bonus shares. The retained earnings will be added to the institution’s liquidity reserves to strengthen its financial position amid changing market conditions, leaving shareholders without a dividend payout for the year.
Ilam farmers shift toward commercial betel nut farming
Farmers in the Chure region of Ilam, including areas such as Mai Municipality, Chulachuli, Mangsebung, and Rong Rural Municipality, are increasingly replacing traditional crops with commercial betel nut cultivation. Agricultural data shows that betel nut orchards now cover around 200 hectares of land. The shift has been driven by relatively low startup costs, dependable income, and lower labor requirements compared with conventional farming. Some growers manage plantations with as many as 8,000 trees, with yields reaching up to 50 kilograms per tree. Traders are purchasing betel nuts directly from farms at a stable price of Rs 70 per kilogram.
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