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 reflects a mix of near-term fiscal pressures and long-term reform efforts. Financial markets remained subdued, with the NEPSE extending its losses and precious metal prices declining, indicating cautious investor sentiment amid slowing market activity.
At the same time, the government intensified year-end fiscal management through extended RTGS operations, accelerated public spending, debt management reforms, and administrative restructuring aimed at improving efficiency and containing costs. Infrastructure and energy development gained momentum with progress on major transmission lines, hydropower projects, and transport connectivity, although funding shortages continue to delay essential public infrastructure such as prison reconstruction.
Meanwhile, regulatory initiatives by SEBON, stricter enforcement of traffic fines, and continued anti-corruption measures signal a broader push toward stronger governance and institutional accountability, even as concerns persist over capital spending efficiency, construction sector bottlenecks, and sustaining investor confidence.
NEPSE declines 19.67 points as turnover falls to Rs 4.61 billion
The Nepal Stock Exchange (NEPSE) dropped 19.67 points, or 0.75 percent, on Thursday to close at 2,601.92, marking its third decline in four trading sessions this week. The Sensitive Index also slipped by 2.49 points to 454.19, while daily turnover decreased to Rs 4.611 billion from Rs 4.826 billion recorded on Wednesday. A total of 8,751,380 shares of 361 listed companies changed hands through 57,864 transactions. Among the traded companies, 42 posted gains, 229 declined, and six remained unchanged, with all 13 sectoral indices ending in negative territory. Upakar Laghubitta Bittiya Sanstha emerged as the top gainer with a 12.68 percent increase, while BOK Debenture recorded the largest loss at 8.66 percent. GBIME Debenture registered the highest turnover at Rs 355.8 million, and Asian Life Insurance led trading volume with 498,960 shares.
Gold falls to Rs 284,700 per tola, silver drops to Rs 4,340
Gold and silver prices declined on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold fell by Rs 2,400 per tola (11.66 grams), bringing it down to Rs 284,700 from Rs 287,100 recorded on Wednesday. Silver also became cheaper, with its price dropping by Rs 160 per tola to Rs 4,340, compared with Rs 4,500 a day earlier.
Government restructuring expected to save Rs 20 billion annually
The House of Representatives on Thursday reviewed a government report outlining key achievements during the administration’s first 100 days. Government Spokesperson and Minister for Education and Sports Sasmit Pokharel said the Cabinet had reduced the number of federal ministries from 22 to 18 and limited the size of the inner council to 17 members, a move projected to save Rs 20 billion annually in administrative expenses. He also said an anti-corruption task force had begun investigating illicit assets, processing more than 11,000 reports and complaints related to unexplained wealth involving senior public officials as part of the government’s zero-tolerance approach to corruption.
NRB extends RTGS operations over the weekend
The Nepal Rastra Bank’s Payment Systems Department announced on Thursday that the Real Time Gross Settlement (RTGS) system will remain operational during the weekend on July 11 and 12 to facilitate the smooth settlement of year-end financial transactions. The system will operate from 8:00 AM to 8:00 PM on both days, allowing banks and financial institutions to clear pending transactions. The temporary extension is intended to ease transaction backlogs and support liquidity management before the close of the fiscal year.
National Assembly approves debt bill to manage Rs 3 trillion liability
The National Assembly on Thursday passed the National Debt Mobilization Bill, 2026, by a majority vote after completing its legislative review. Finance Minister Swarnim Wagle presented the bill, outlining a framework for managing and repaying the government’s outstanding liabilities, which have reached around Rs 3 trillion in the wake of the pandemic. During the discussion, lawmakers called on the Public Debt Management Office to ensure borrowed funds are used transparently and directed toward productive sectors such as agriculture and energy, rather than treating debt mobilization as a procedural accomplishment. The bill has now been returned to the House of Representatives for further process.
Daily capital spending surpasses Rs 1.27 billion during fiscal year-end
The government’s year-end spending has accelerated sharply in the final weeks of the fiscal year, according to data from the Financial Comptroller General Office (FCGO). Between June 15 and July 8, daily capital expenditure averaged Rs 1.27 billion, significantly higher than the fiscal year’s earlier daily average of around Rs 457 million. During this 24-day period, capital spending increased by Rs 30.50 billion, bringing the total to Rs 163.17 billion. Overall government expenditure rose by Rs 185.31 billion to reach Rs 1.531 trillion by July 8. Government revenue also increased by Rs 81.04 billion during the same period, climbing from Rs 1.110 trillion on June 14 to Rs 1.191 trillion by July 8. By then, the government had achieved 79.33 percent of its annual tax revenue target and 51.73 percent of its foreign grant target.
Government payments jump to Rs 17 billion before fiscal deadline
The Financial Comptroller General Office reported that government payments reached Rs 17.09 billion in a single day on Wednesday as public agencies rushed to complete transactions before the legal deadline for clearing cheques. Total government spending has now reached Rs 1.531 trillion out of the annual budget allocation of Rs 1.964 trillion. Capital expenditure, however, remains behind target, standing at Rs 163.17 billion, or around 40 percent of the allocated Rs 407 billion. Meanwhile, national revenue collection has reached Rs 1.156 trillion, representing 78.15 percent of the annual target.
PM Shah discusses construction sector issues with contractors
Prime Minister Balendra Shah (Balen) met representatives of the Federation of Contractors’ Association of Nepal (FCAN) on Thursday to discuss challenges affecting the construction sector and ways to improve infrastructure development. During the meeting at the Office of the Prime Minister and Council of Ministers, Shah described the construction industry as a key driver of economic growth, employment, and national development, reaffirming the government’s commitment to addressing its practical concerns. He emphasized the need for stronger collaboration to ensure timely project completion while improving transparency, accountability, and overall performance. The FCAN delegation, led by President Nicholas Pandey, highlighted concerns including delayed payments, contract management, project deadline extensions, price adjustments, timely implementation, and banking and investment-related issues.
More than 261,000 drivers face transport service restrictions over unpaid fines
More than 261,000 motorists with outstanding traffic fines will be denied services from the Transport Management Office until their dues are cleared, according to the Kathmandu Valley Traffic Police Office. The restrictions apply to vehicle registration, ownership transfer, driving licence renewal, and other transport-related services. Traffic police have already shared the details of unpaid fines with the Transport Management Office, and the restrictions will remain until the fines are fully paid into the state treasury. Authorities have also started sending SMS notifications to affected drivers before processing any transport-related services.
SUTRA system to shut down temporarily from midnight
The Financial Comptroller General Office announced that the Sub-national Treasury Regulatory Application (SUTRA), the digital platform used to monitor local government financial transactions, will be suspended from midnight on Thursday. According to the Deputy Financial Comptroller General, the temporary shutdown is in line with Rule 30(1) of the Economic Procedures and Financial Accountability Rules, 2021, which requires the suspension of final financial disbursements seven days before the end of the fiscal year. Under Rule 30(7), the system will reopen until July 16 exclusively for balance adjustments and selected tax-related settlements.
Kathmandu Valley Traffic Police collect Rs 1.8 million in fines within 24 hours
The Kathmandu Valley Traffic Police Office took action against 2,066 motorists for various traffic violations during the 24-hour period ending Thursday, collecting more than Rs 1.8 million in fines for the state treasury. Official records show that penalties were issued to 142 motorists for lane violations, 122 for illegal ride-sharing operations, 120 for crossing stop lines at traffic signals, 114 for speeding, 103 for parking on sidewalks, and 65 for driving under the influence of alcohol. In addition, authorities recorded 1,237 other traffic offences across the Valley as part of ongoing road safety enforcement.
Cabinet clears path for Dhalkebar-Hetauda 400 kV transmission line
The government has removed the final hurdle to the long-delayed Dhalkebar-Hetauda 400 kV transmission line by approving the use of forest land in Makwanpur, allowing construction to move forward after a 12-year delay. During its meeting on Wednesday, the Cabinet authorized the Nepal Electricity Authority (NEA) to use 2.2 hectares of national forest and approved the removal of 1,292 trees in accordance with the Forest Act, 2019. The project had been held up by pending approvals related to forest land use, right of way, and tree felling. The 300-kilometre Dhalkebar-Hetauda-Inaruwa transmission corridor requires a 46-metre-wide right of way. Once completed, the transmission line will strengthen the national power grid, improve electricity flow between eastern and western Nepal, reduce outages, and significantly increase electricity exports to India. Export capacity is expected to rise from the current 1,000 MW to between 2,500 MW and 3,000 MW.
Budget constraints halt Lamjung prison reconstruction
The Lamjung District Prison in Seraphat, Besisahar Municipality, has been closed after reconstruction work came to a standstill due to insufficient funding, leading to the transfer of 109 inmates to other correctional facilities. Acting Prison Chief Prisa Gautam said a proposal seeking Rs 177.4 million for reconstruction has been submitted by the Building Development and Construction Office, Kaski, to the relevant authorities. Chief District Officer Krishna Prasad Khanal said the prison building, originally constructed in the fiscal year 1971/72, has deteriorated beyond repair and is no longer safe for use. He added that transferring inmates outside the district has increased the time, manpower, and costs required for court appearances, family visits, and other administrative responsibilities.
Rs 277 million bridge project to replace 1971 Ramdi crossing
Construction of a Rs 277.1 million bridge at Ramdi is set to improve connectivity between Gandaki and Lumbini provinces. The new concrete-filled steel tube arch bridge is being built to replace the aging steel truss bridge that has served the area since 1971 and has significantly deteriorated after more than five decades of use. Once completed, it will become Nepal’s first concrete-filled steel tube arch bridge, representing a major engineering achievement. The project is expected to provide a safer, stronger, and more dependable crossing for thousands of commuters, transport operators, and local residents who rely on the route for daily travel and trade.
Cabinet approves Medical Education Commission grant procedure
The Medical Education Commission on Thursday endorsed the Medical Education Commission Grant Operation Procedure, 2026, during its 26th meeting chaired by Prime Minister and Commission Chair Balendra Shah. The meeting, held at the Office of the Prime Minister and Council of Ministers in Singha Durbar, approved the procedure after it was presented by the commission’s newly appointed Vice Chair, Dr Devendra Khatri. Health and Food Safety Minister Nisha Mehta and Education and Sports Minister Sasmit Pokharel jointly chaired the meeting alongside the Prime Minister.
Setikhola Hydropower Project begins trial power generation
The Setikhola Hydropower Project has started supplying electricity to the national grid on a trial basis after completing a technical inspection by the Nepal Electricity Authority (NEA). Developed by Setikhola Hydropower Limited under the leadership of Deepak Baral, the 22 MW project began construction in 2021 in Pokhara Metropolitan City–33, Kaski. Commercial electricity generation is expected to begin after a 15-day trial period. The Rs 5.05 billion project experienced delays due to difficulties obtaining forest clearance for transmission line towers. The company is also preparing to launch an Initial Public Offering (IPO) in the next fiscal year.
Transmission line planned for Bheri-Babai hydropower integration
A 1.7-kilometre-long 132 kV transmission line will be constructed to connect the 46.8 MW electricity generated by the national pride Bheri-Babai Diversion Multipurpose Project to the national grid through the Kohalpur-Surkhet transmission line. The proposed route will include nine transmission towers, with three located inside the core area of Bardiya National Park and six within its buffer zone, affecting Bheri Ganga Municipality-5 in Surkhet and parts of the protected area. The overall project has achieved 70 percent physical progress and 57 percent financial progress. While tunnel construction has been completed, civil, hydromechanical, and electromechanical works are still underway. The project is expected to take another three years to finish. Energy Minister Biraj Bhakta Shrestha recently visited the site and instructed officials to accelerate construction.
SEBON prepares capital market roadmap after NEPSE decline
The Securities Board of Nepal (SEBON) on Thursday announced a series of regulatory reforms after the Nepal Stock Exchange (NEPSE) index fell to around the 2,600-point level. SEBON Spokesperson Niranjan Ghimire said the regulator has begun reviewing the Securities Act, public issue regulations, and corporate governance rules for listed companies. The board plans to unveil a comprehensive capital market development roadmap next week, including standardized margin trading regulations for brokerage firms. SEBON also advised retail investors to make investment decisions based on independent analysis rather than market speculation, as the government continues efforts to strengthen business confidence.
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