KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s recent developments reflect a mixed economic picture, with encouraging export performance and infrastructure progress alongside mounting challenges in tourism, agriculture and public spending. Strong growth in tea exports through Kakarbhitta, coupled with substantial earnings from large cardamom, highlights the potential of agricultural exports to strengthen foreign trade and support rural livelihoods. However, rising international prices of maize and soybean meal have increased livestock feed production costs by 15 percent, placing additional pressure on poultry farmers and potentially affecting consumer prices.
Tourism presents another area of concern, particularly in Koshi Province, where declining foreign arrivals and hotel occupancy indicate weakening demand despite considerable tourism potential. Similarly, Gandaki Province’s low budget utilisation, particularly in capital expenditure, raises questions about the timely implementation of development projects.
Meanwhile, the completion of the long-delayed Khajura road expansion demonstrates the importance of infrastructure investment in improving connectivity and commercial activity. Temporary transport disruptions caused by landslides, however, highlight Nepal’s vulnerability to natural hazards.
At the international level, Foreign Minister Shisir Khanal’s emphasis on climate justice underscores Nepal’s need for stronger global climate financing and adaptation support. Overall, these developments point to the importance of improving public spending efficiency, strengthening export competitiveness, supporting vulnerable industries, promoting sustainable tourism and accelerating climate-resilient infrastructure development.
Climate adaptation is a matter of climate justice: Foreign Minister Khanal
Foreign Minister Shisir Khanal has said that climate adaptation should not be viewed merely as a technical or environmental response but also as an issue of climate justice. Addressing the High-Level Dialogue on Adaptation organised by the Least Developed Countries (LDCs) on the sidelines of the ongoing United Nations Climate Change Conference (COP-31) in Antalya, Turkey, Khanal said that least developed countries, despite contributing the least to global climate change, are among the hardest hit by its increasingly severe impacts. “For the least developed countries, adaptation is not only a technical or environmental response; it is also a matter of climate justice. Although our contribution to climate change is minimal, we are bearing the brunt of its increasingly severe impacts,” he said. During his address, Khanal highlighted the human and economic losses Nepal has suffered from recent climate-induced disasters. He stressed that climate-vulnerable countries could no longer afford to delay urgent climate action.
Gold and silver investments generate annual returns amid regulatory changes in Nepal
Gold prices in Nepal recorded an annual increase of around 17 percent, rising from Rs 241,500 to Rs 284,300 per tola (11.66 grams). However, prices have declined from their record high of Rs 339,300 per tola, reached on January 29. Silver also registered an annual price gain of 25.77 percent, increasing from Rs 3,065 to Rs 3,855 per tola, despite falling from its peak of Rs 7,505. Market analysts attributed the stronger growth in domestic prices compared to international markets partly to the government’s decision to increase customs duties on gold and silver from 10 percent to 20 percent through the national budget. Fluctuations in foreign exchange rates also contributed to changes in local prices.
Nepali tea exports through Kakarbhitta nearly double
Nepali tea exports to India through the eastern border point of Kakarbhitta have increased significantly, with both export volume and earnings recording substantial growth in the first month of the current fiscal year compared to the corresponding period last year. According to data from the Mechi Customs Office, Nepal exported 1,715,932 kilograms of tea worth Rs 495.45 million during Asoj of the current fiscal year 2083/84 BS. In comparison, 924,445 kilograms of tea worth Rs 247.49 million were exported during the same month of the previous fiscal year 2082/83. This represents an increase of more than 85 percent in export volume, while export earnings have nearly doubled. Besides tea, cardamom and plywood also accounted for a significant share of exports through the Kakarbhitta border point. The Mechi Customs Office reported that cardamom worth Rs 988.88 million and plywood worth Rs 442.35 million were exported during Asoj.
Large cardamom exports through Kakarbhitta generate Rs 988.8 million
Nepal exported large cardamom worth Rs 988.8 million through the Kakarbhitta customs point between September 17 and October 17, according to the Mechi Customs Office. During the period, 541,940 kilograms of large cardamom were exported to India. Other major export items included 1,715,932 kilograms of tea valued at Rs 495.4 million, 118,444 kilograms of plywood worth Rs 442.3 million and 1,319,140 kilograms of broom grass valued at Rs 89.5 million. These products were sourced from eastern districts, including Jhapa, Ilam, Panchthar and Taplejung. Additional exports during the reporting period included 46,745 kilograms of chhurpi worth Rs 89.5 million, 2,080,763 kilograms of iron sheets valued at Rs 298.4 million and 48,318 kilograms of dried meat worth Rs 48.3 million.
Rising maize and soybean prices push livestock feed production costs up by 15 percent
Livestock feed production costs across Nepal have increased by approximately 15 percent following a rise in international prices of imported maize and soybean meal. According to industry figures, the price of Indian maize has climbed from Rs 36 to more than Rs 50 per kilogram. Similarly, soybean meal imported from the United States and Bangladesh has become more expensive, with prices increasing from Rs 87 to Rs 95 per kilogram. Bran prices have also risen from Rs 35 to Rs 47 per kilogram. In response to higher production costs, manufacturers have increased broiler feed prices by Rs 5 per kilogram and layer feed prices by Rs 4. Retail prices of livestock feed now range between Rs 55 and Rs 75 per kilogram. Industry stakeholders said the rising costs have also increased egg production expenses by Rs 2 to Rs 3 per egg. They warned that poultry farmers are facing mounting financial pressure due to higher prices of chicks, live chickens and animal feed, with some producers being forced to discontinue operations.
Foreign tourist arrivals and hotel occupancy decline in Koshi Province: NRB
Hotel occupancy in Koshi Province fell to an average of 32 percent in fiscal year 2025/26, down from 39.2 percent in the previous fiscal year, according to a regional economic study published by Nepal Rastra Bank (NRB). The study also recorded a 21.8 percent decline in foreign tourist arrivals at hotels across the province. This followed a growth of 28.6 percent in the preceding year. A total of 47,457 foreign visitors were recorded, with arrivals from India and other international markets declining, although Chinese visitor numbers registered a modest increase. Passenger traffic at regional airports also decreased by 4.9 percent to 1,217,381 during the review period. Despite the slowdown in tourism indicators, the services sector continues to play a significant role in the provincial economy, contributing 49.85 percent of Koshi’s gross domestic product (GDP). The report also highlighted the province’s considerable tourism potential, particularly in ecotourism, adventure tourism, mountaineering and religious pilgrimage.
Gandaki Province spends 8.15 percent of annual budget in first trimester
The Gandaki Province Government spent 8.15 percent of its annual budget during the first trimester of fiscal year 2026/27, ending October 17. According to provincial financial records, total expenditure reached Rs 2.692 billion against an annual budget allocation of Rs 32.999 billion. Of the Rs 12.723 billion allocated for recurrent expenditure, Rs 1.438 billion was spent, representing 11.3 percent of the allocation. Meanwhile, capital expenditure stood at Rs 1.253 billion, or 6.26 percent of the Rs 20.026 billion earmarked for development projects. Among the provincial ministries, the Ministry of Health recorded the highest budget utilisation rate, spending 11.5 percent of its total allocation of Rs 3.312 billion during the review period.
First hunting season of fiscal year begins at Dhorpatan Hunting Reserve
The first hunting season of fiscal year 2026/27 has begun at the Dhorpatan Hunting Reserve, with foreign hunters permitted to hunt 10 blue sheep (naur) and seven Himalayan tahr across designated hunting blocks. According to reserve officials, 11 foreign hunters have already arrived, while six more are expected to participate in the season, which runs from mid-September to mid-December. While international hunters are visiting designated high-altitude hunting areas, domestic tourists and nature enthusiasts have also been exploring the reserve’s valleys and alpine pastures, including Niseldhor, Bukipatan and Jaljala. During the previous fiscal year, hunting activities at the reserve resulted in 21 blue sheep and 11 Himalayan tahr trophies, generating Rs 41.7 million in government revenue. The reserve also attracted approximately 37,000 domestic and international visitors to the surrounding areas of Rukum East, Baglung and Myagdi districts during the previous fiscal year.
Landslide at Ghoptebhir causes major traffic congestion along Prithvi Highway
A dry landslide at Ghoptebhir in Ichchhakamana Rural Municipality-4 of Chitwan caused significant traffic congestion along the Narayangadh–Muglin section of the Prithvi Highway on Tuesday. Road maintenance crews and security personnel cleared the debris, allowing vehicles to resume movement along a single lane. However, heavy traffic, particularly due to increased travel during the Tihar festival, combined with narrow road sections and existing bottlenecks near bridges, resulted in long queues in both directions. Thousands of passengers travelling from Kathmandu to various destinations for the Tihar celebrations were stranded for several hours. Traffic police worked to manage vehicle movement and ease congestion along the affected highway section.
Four-lane road completed along Khajura market section of Postal Highway
Construction of a four-lane road along a 1,800-metre stretch of Khajura market on the Nepalgunj–Gulariya Postal Highway has been completed, bringing an end to a project that remained stalled for nine years. The project was initially awarded in 2017 under the Road Division. However, delays and complaints over substandard construction work led to the termination of the original contract. The Hulaki Highway Directorate subsequently took responsibility for the project and awarded a new contract worth Rs 70.1 million to Mattahawa–NAT–Starlight JV. The completed section features asphalt concrete paving across a 16-metre-wide roadway, along with two-metre-wide footpaths and bridge infrastructure. Local authorities said the upgraded road is expected to improve connectivity and facilitate commercial activities in the Khajura market area.
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