KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic indicators present a mixed but broadly stabilizing picture, marked by strong external inflows and financial resilience alongside persistent structural pressures. A sharp 35.6 percent rise in remittance inflows has significantly boosted foreign exchange reserves, which have crossed Rs 3.2 trillion and now provide comfortable import cover, helping to offset the widening trade deficit despite a notable improvement in export growth and the export–import ratio.
Rising gold prices reflect both global trends and sustained domestic demand, while active capital market movements—including new listings, IPO activity, and increased financial services such as digital payments—signal growing investor participation. At the same time, high recurrent government spending, modest capital expenditure, and continued trade imbalances highlight ongoing fiscal and productivity challenges.
Social indicators, including higher net income among the core working-age population and improved digital governance at the local level, point to gradual institutional strengthening, even as incidents such as protest-related losses and localized disasters underscore underlying economic vulnerabilities.
Gold price rises by Rs 2,100 per tola
Gold prices increased in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of gold rose by Rs 2,100 per tola to Rs 267,800. Meanwhile, silver prices fell by Rs 55 per tola, trading at Rs 4,780.
Remittance inflows surge by 35.6 percent in first five months
Remittance inflows to Nepal rose sharply during the first five months of the current fiscal year, reaching Rs 870.31 billion, a growth of 35.6 percent, Nepal Rastra Bank reported. In the same period last year, remittances had grown by only 4.7 percent. In Mangsir alone, remittances totaled Rs 183.18 billion, up from Rs 118.79 billion a year earlier. During the review period, 175,591 Nepalis received final labor approval for foreign employment, while 163,924 workers obtained re-entry approval. Net secondary income also increased significantly to Rs 954.78 billion, compared to Rs 700.43 billion in the same period last year.
Nepal’s export–import ratio improves despite widening trade deficit
Nepal recorded a notable rise in merchandise exports during the first five months of fiscal year 2082/83, with total exports increasing by 58.2 percent to Rs 116.51 billion. In the same period last year, exports had grown by only 16.5 percent. Exports to India surged by 82.7 percent, while shipments to countries other than India rose by 5.5 percent. However, exports to China declined sharply by 73.3 percent. Commodity-wise, exports of soybean oil, large cardamom, palm oil, jute goods, and footwear increased, while shipments of zinc sheets, particle board, tea, woolen carpets, and handicrafts fell. During the same period, total imports rose by 15.8 percent to Rs 766.19 billion, compared to a 3.0 percent increase a year earlier. Imports from India increased by 5.7 percent, from China by 24.6 percent, and from other countries by 40.8 percent. Higher imports were recorded for crude soybean oil, fertilizers, gold, transport equipment, vehicles and spare parts, and silver, while imports of hot-rolled sheets, garlic, edible oil, oilseeds, and pulses declined. As imports continued to outpace exports, the trade deficit widened by 10.5 percent to Rs 649.68 billion. Despite this, the export–import ratio improved to 15.2 percent from 11.1 percent last year.
Govt spends over Rs 564 billion in first five months of fiscal year
The Government of Nepal spent Rs 564.46 billion during the first five months of fiscal year 2082/83, according to the Office of the Financial Comptroller General. Of the total expenditure, Rs 398.05 billion was spent on recurrent expenses, Rs 33.87 billion on capital expenditure, and Rs 132.54 billion on financial management. During the same period, government revenue mobilization reached Rs 406.30 billion, including revenue shared with provincial and local governments. Tax revenue accounted for Rs 382.23 billion, while non-tax revenue stood at Rs 24.07 billion. Meanwhile, the government’s cash balance increased significantly to Rs 253.02 billion by mid-Mangsir 2082, compared to Rs 130.73 billion at the end of Ashad 2082. Provincial governments spent Rs 29.01 billion and mobilized Rs 74.84 billion in resources, most of which came from federal grants and revenue sharing.
NIC Asia raises locker service discount to 30 percent
NIC Asia Bank has increased the discount on its locker services to 30 percent, aiming to encourage customers to securely store valuable items and important documents. Under the offer, valid until January 20, 2026, customers will receive a 30 percent discount on the annual locker fee for the first year. The bank provides locker facilities of various sizes across its nationwide branch network. NIC Asia stated that the enhanced discount will make locker services more accessible, affordable, and convenient for customers.
Nepal’s foreign exchange reserves exceed Rs 3.2 trillion
Nepal’s foreign exchange reserves have crossed Rs 3.2 trillion, indicating a strong improvement in the country’s external financial position, according to Nepal Rastra Bank. Reserves increased by 19.6 percent from Rs 2.677 trillion at the end of July 2025 to Rs 3.201 trillion by December 2025. In US dollar terms, reserves rose by 13.5 percent to USD 22.13 billion. Based on current import trends, the reserves are sufficient to cover 21.7 months of merchandise imports and 18.2 months of combined merchandise and services imports.
Palpa Cement Industries launches first phase of IPO
Palpa Cement Industries has opened the first phase of its IPO, targeting residents of project-affected areas and Nepalis working abroad. Under this phase, 1.875 million shares have been allocated for local residents of Nawalparasi West, Palpa, and Devdaha Municipality, while 562,500 shares are reserved for Nepalis employed overseas. Applicants can apply for between 10 and 100,000 shares. Nabil Investment Banking is managing the issue. Local residents can apply from January 23 to February 8, while overseas Nepalis can submit applications online via Meroshare from January 14 to January 23. The company will later issue shares to the general public, offering 20 percent of its issued capital.
Securities worth over Rs 4.3 billion listed in first five months
More than Rs 4.3 billion worth of securities were newly listed during the first five months of the current fiscal year. By mid-Mangsir 2082, securities totaling Rs 4.324 billion were added, including ordinary shares, rights shares, mutual funds, debentures, bonus shares, and FPOs. During the same period, the Securities Board of Nepal approved public issuance of securities worth Rs 2.075 billion. By the end of Mangsir, the paid-up value of listed shares on the Nepal Stock Exchange reached Rs 89.66 billion.
NTA report shows income exceeds spending among 27–46 age group
People aged 27 to 46 in Nepal earn more than they spend, according to the National Transfer Account report released by the National Statistics Office. The report shows that individuals below 27 and above 46 face a lifetime income deficit. Finance Minister Rameshore Prasad Khanal said the findings will support better policymaking in social security, industrial development, and employment generation.
Salapa Development Bank completes IPO allotment
Salapa Development Bank has finalized the allotment of shares issued under its initial public offering (IPO). The allotment process was completed on Friday morning at the office of the issue and sales manager, Muktinath Capital. The bank had opened the IPO to the general public from Poush 16 to Poush 20, issuing a total of 1,439,179 shares. According to Muktinath Capital, applications were received from 2,383,407 investors, of which 2,265,955 were verified as valid. From the valid applicants, 143,170 investors were allotted 10 shares each, while the remaining nine shares were distributed individually to nine applicants. Investors can view the allotment results through the Mero Share system and the website of CDS and Clearing Limited.
Minister Chaulagain takes charge of physical infrastructure ministry
Minister for Forests and Environment Madhav Prasad Chaulagain has assumed additional responsibility as Minister for Physical Infrastructure and Transport. On the occasion, he approved key decisions, including urging the Asian Development Bank to include the Karnali Highway in its project pipeline and relocating a Bailey bridge from the Hima River to the Tila River in Jumla. He also endorsed the formation of a committee to review qualification criteria for Class ‘D’ construction entrepreneurs. The ministry portfolio had remained vacant following the resignation of former minister Kulman Ghising.
Rs 236.9 million in cash burned during Gen Z protests
Banknotes worth Rs 236.9 million were completely destroyed during the Gen Z protests held on September 8 and 9 last year. According to a government assessment report, total losses from cash, valuables, and damaged property exceeded Rs 2.81 billion. Of the total cash loss, 57.5 percent resulted from theft, 11.6 percent from vandalism, and 30.9 percent from arson.
Security Printing Center produces nearly 9,000 licenses in two months
The Security Printing Center in Panauti has printed around 9,000 QR-code-enabled driving licenses over the past two months. According to the Department of Transport Management, 8,983 licenses have been printed since operations resumed on November 7, 2025, following damage to the department’s mass printer during the Gen Z protests. The center is required to print 1.2 million licenses within six months under an agreement signed in October.
Municipal energy plans handed over to two Mustang rural municipalities
Municipal Energy Plans (MEPs) for Varagung Muktichhetra and Gharapjhong rural municipalities in Mustang have been formally handed over to local governments. Developed with technical support from GIZ Nepal under the REEEP-GREEN project, the five-year plans aim to address local energy needs, promote clean energy use, and enhance climate resilience through community-based planning.
Economic social risk management system becomes operational in Beni
Beni Municipality has successfully implemented an economic social risk management information system to support development planning, targeted program implementation, revenue mobilization, and disaster management. Mayor Surat KC said the system has improved transparency by eliminating bias based on political affiliation or caste in the distribution of grants and assistance.
Nepal Investment Mega Bank launches UnionPay card
Nepal Investment Mega Bank Limited has introduced the NIMB UnionPay Card to expand modern payment services. The card allows customers to make secure transactions domestically and internationally and is accepted at numerous ATMs and merchant locations worldwide. The bank said the launch reflects its commitment to offering reliable and globally accepted digital payment solutions.
Fire destroys property worth Rs 13 million in Jhapa
Property worth approximately Rs 13 million was destroyed in a fire that broke out at a thukpa (traditional Tibetan noodle soup) industry in Damak Municipality-9, Jhapa, on Friday. According to District Police Office Spokesperson Deputy Superintendent of Police Khagendra Bahadur Khadka, the fire started at Swastik Thukpa Industry, owned by Padam Bhandari of Damak-9, due to an electrical fault. The blaze later spread to a nearby residential area, engulfing a three-storey concrete house. Both the industry and the house were completely destroyed in the inferno, with all property inside the house perishing, DSP Khadka said.
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