KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic and policy developments reflect a mix of weakening market sentiment, ongoing governance challenges, and continued public investment efforts. The stock market extended its decline, with the NEPSE falling 8.14 points alongside lower turnover, while gold and silver prices also retreated, signaling softer investor appetite for risk and safe-haven assets.
On the policy front, the debate over alleged budget discrepancies has intensified, exposing political divisions and raising concerns about fiscal transparency, even as Finance Minister Swarnim Wagle expressed openness to an independent investigation. Meanwhile, Nepal Rastra Bank’s push to integrate digital land records into banking operations highlights the government’s broader digitalization agenda.
Trade and revenue concerns persist, with customs offices facing large arrears and revenue shortfalls, while fertilizer distribution delays underscore implementation gaps in the agricultural sector.
At the same time, substantial federal grants for local governments, progress on major infrastructure projects, stricter aviation safety measures, and new capital market offerings such as the Sarbottam Paints IPO indicate continued efforts to support development, improve connectivity, and strengthen economic activity despite mounting administrative and fiscal pressures.
NEPSE falls 8.14 points as turnover declines to Rs 3.91 billion
The Nepal Stock Exchange (NEPSE) index dropped by 8.14 points on Thursday to close at 2,728.03, while daily turnover declined to Rs 3.91 billion from Rs 4.29 billion recorded the previous day. Of the traded companies, 82 advanced, 178 declined, and 13 remained unchanged. The finance sector led the losses with a 1.45 percent drop, whereas the hotel and tourism sector gained 0.47 percent and the manufacturing sector rose 0.26 percent. City Hotel, Central Finance, Bungal Hydropower, People’s Hydropower, and Ankhukhola Hydropower were among the most actively traded stocks. Sopan Pharmaceuticals and Apollo Hydropower each gained 15 percent, while Saptakoshi Development Bank posted the steepest decline of the session, falling 13.51 percent.
Gold falls to Rs 286,700 per tola, silver declines to Rs 4,650
Gold and silver prices continued to decline in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 5,100 per tola (11.66 grams) to Rs 286,700, down from Rs 291,800 on Wednesday. Silver prices also dropped, declining by Rs 90 per tola to Rs 4,650 from the previous day’s rate of Rs 4,740 per tola.
NRB Integrates Digital Mapping Services into Banking Operations
Under Section 79 of the Nepal Rastra Bank (NRB) Act 2002, the Nepal Rastra Bank has amended its unified directives governing Class “A,” “B,” and “C” financial institutions. The revised provisions require banks and financial institutions to integrate their user profiles with the government-operated Mero Kitta digital platform, enabling the online processing of property maps, field books, and land registration records through secure electronic channels. The central bank has also clarified that development credit lines funded by international donors and routed through domestic financial institutions will not be included in interbank borrowing calculations.
Tax dispute triggers heated debate in Parliament
A sharp debate erupted in the Public Accounts Committee as lawmakers clashed over allegations of tax rate manipulation in the upcoming budget. Rastriya Prajatantra Party Chief Whip Khushbu Oli called for a comprehensive investigation, rejecting claims that the discrepancies were merely linguistic or technical errors. She argued that even a one-percent variation in tax rates could affect billions of rupees in government revenue, making any post-budget changes a serious threat to transparency. Meanwhile, Rastriya Swatantra Party lawmakers Manish Jha and Bipin Acharya criticized demands for investigations based on media reports and social media discussions, warning that such actions could undermine due process and harm Nepal’s investment climate. Lawmaker Khagendra Sunar also cautioned against unfairly blaming Finance Minister Swarnim Wagle for administrative or technical mistakes already acknowledged by the Ministry of Finance.
Finance minister welcomes investigation into budget discrepancies
Finance Minister Swarnim Wagle has said he would welcome any formal investigation into alleged tax rate changes and formatting inconsistencies in the federal budget. Responding to questions during a meeting of the Public Accounts Committee on Thursday, Wagle stated that he had no objection to an independent inquiry examining the matter in detail. While accepting political and administrative responsibility for procedural shortcomings, he maintained that the reported discrepancies resulted from human error, fatigue, and last-minute compilation work rather than deliberate policy manipulation. According to the minister, staff working late into the night contributed to formatting issues, including missing pages. He also defended the controversial tax structure on electric vehicles and urged greater focus on broader fiscal challenges such as revenue arrears.
Madhesh Assembly unanimously approves policy and program
The Madhesh Province Assembly has unanimously passed the provincial government’s policy and program for fiscal year 2026/27. The 27-page policy document outlines development priorities, including agricultural modernization, soil improvement initiatives, and literacy enhancement programs across the province. Assembly records show that lawmakers rejected proposed amendments through a majority vote, while former government officials withdrew pending amendment proposals, paving the way for the smooth endorsement of the provincial development agenda.
Birgunj customs arrears exceed Rs 10 billion
Outstanding dues at the Birgunj Customs Office have surpassed Rs 10 billion due to unresolved post-clearance settlements. Internal assessments indicate that many importers use provisional bank guarantees to clear goods without completing the required documentation and customs verification processes. Customs officials stated that a large share of the unpaid dues is linked to vehicle imports, where discrepancies are frequently detected between declared specifications and the actual engine capacity or seating configuration of imported vehicles.
Sudurpaschim local units warned over fertilizer collection delays
The Ministry of Agriculture, Forest, and Environment has issued an urgent notice to 26 local governments across nine districts of Sudurpaschim Province for failing to collect their allocated fertilizer supplies. Records from the Agricultural Inputs Company Limited and Salt Trading Corporation indicate that fertilizer stocks assigned to depots in Dadeldhura, Baitadi, Darchula, Bajura, Bajhang, and Doti remain unclaimed ahead of the peak paddy transplantation season. Officials have warned that if local governments do not transport the remaining fertilizer stocks promptly, the government may distribute them directly to farmers to ensure adequate supplies for rice cultivation.
Nepalgunj customs falls short of revenue target
The Nepalgunj Customs Office collected Rs 16.739 billion in revenue during the first ten months of fiscal year 2025/26, falling short of its target despite year-on-year growth. Revenue increased by Rs 270 million compared to the same period last year; however, the office missed its ten-month target of Rs 20.107 billion due to changing trade patterns. Customs data shows imports worth Rs 70.23 billion and exports totaling Rs 2.826 billion during the review period.
Four bridges on Mugling–Malekhu section expected to open by mid-July
At least four bridges along the Mugling–Malekhu section of the Prithvi Highway are expected to come into operation by mid-July, with construction more than 90 percent complete, according to project officials. Bridges over Khahare Khola, Chiraudi Khola, Gomati Khola, and Hugdi Khola are currently undergoing final works, including the construction of access roads, painting, and installation of safety features. Additional work on bridges at Hugdi and Charaudi is also progressing. Road paving, which was temporarily halted due to a shortage of bitumen, is expected to resume once supplies arrive. Drainage and roadside infrastructure works are continuing. The 38.86-kilometre highway upgrade project has achieved 43 percent overall progress and is being implemented at a cost of Rs 4.805 billion with support from the World Bank. The construction deadline has already been extended by 183 days, and another extension is under consideration.
Chitwan receives nearly Rs 5 billion in federal grants
The Ministry of Finance has approved Rs 4.96 billion in intergovernmental fiscal transfers for the seven local governments of Chitwan District for fiscal year 2026/27. Bharatpur Metropolitan City received the largest allocation, amounting to Rs 2.051 billion, including Rs 396.5 million in fiscal equalization grants and Rs 1.61 billion in conditional grants. Ratnanagar Municipality secured Rs 583.4 million, while Madi Municipality received Rs 502.6 million to support local development and public service programs.
Pumpkin seeds worth Rs 9 million seized at Nepal–India border
Police seized 12.88 tonnes of pumpkin seeds worth approximately Rs 9 million from the Nepal–India border in Rautahat on Wednesday, thwarting an alleged smuggling attempt into India. Acting on a tip-off, a joint team from Nepal Police and the Armed Police Force recovered the consignment from Bankul Settlement in Baudhimai Municipality–7. Authorities said the seeds were being transported illegally across the border. The operation led to a brief confrontation after local residents obstructed police action. Officers fired six rounds of tear gas after stone-pelting erupted. Three civilians and three police personnel sustained minor injuries. The seized goods will be handed over to customs authorities for further investigation and action.
Rolpa receives Rs 3.35 billion in federal grants
The federal government has approved Rs 3.349 billion in intergovernmental fiscal transfers for local governments in Rolpa District for fiscal year 2026/27. The allocation represents a slight decrease of Rs 108.8 million compared to the previous fiscal year. The funding has been distributed through fiscal equalization, conditional, special, and complementary grant categories. According to the allocation framework, Rolpa Municipality will receive Rs 118.6 million in equalization grants, while rural municipalities such as Triveni, Thabang, and Parivartan have been assigned funding based on performance assessments and development priorities.
Deadline extended for Seti River bridge reconstruction
The Department of Roads has extended the completion deadline for the two new bridges over the Seti River in Pokhara until March 5, 2027. The Rs 1.07 billion project, financed through an Asian Development Bank loan, faced delays due to water pipeline relocation work and compensation disputes with local landowners. These issues have now been resolved after the remaining affected households accepted compensation packages. Rasuwa Construction Company has completed 120 foundation piles and four main support towers, bringing overall physical progress on the 190-metre concrete bridges to 61 percent.
Dang receives Rs 4.89 billion in federal grants
The Ministry of Finance has allocated Rs 4.893 billion in fiscal transfers to 10 local governments in Dang District for fiscal year 2026/27. According to official records, Ghorahi Sub-Metropolitan City received the largest share at Rs 1.094 billion, followed by Tulsipur Sub-Metropolitan City with Rs 974.8 million and Lamahi Municipality with Rs 413.5 million. The allocations were determined using performance-based indicators, including governance standards, service delivery efficiency, and infrastructure implementation performance.
Kathmandu to experience scheduled power outages for three days
Several areas of Kathmandu will face daily power outages of 3.5 hours over a three-day period as the Nepal Electricity Authority (NEA) replaces ageing conductors on the 132 kV Syuchatar–Matatirth transmission line. According to the NEA, areas served by the Thankot and Satungal feeders under the Kuleshwor Distribution Centre will experience power cuts from 9:30 a.m. to 1:00 p.m. The affected locations include parts of Balambu, Naikap, Dahachowk, Dhungedhara, Chundevi, Shrijana Chowk, Sinchaphant, Dhaulagiri Gate, and surrounding areas. The authority stated that the maintenance work is intended to improve network reliability and noted that the schedule may be adjusted depending on weather conditions.
Sarbottam Paints launches IPO for the general public
Sarbottam Paints Industries has launched the retail phase of its initial public offering (IPO) after completing the allocation process for Nepali citizens working abroad. The company received approval from the Securities Board of Nepal (SEBON) to issue shares equivalent to 25 percent of its Rs 340 million paid-up capital, amounting to 850,000 shares. After setting aside allocations for mutual funds and company employees, 705,500 shares remain available for retail investors. Applications can be submitted through C-ASBA member banks until June 16. The shares are being offered at a face value of Rs 100 each.
Kathmandu traffic police collect Rs 2 million in fines within 24 hours
The Kathmandu Valley Traffic Police Office fined 2,297 vehicle operators for traffic violations within a 24-hour period, generating more than Rs 2 million in revenue. Enforcement records show that authorities penalized 103 drivers for driving under the influence of alcohol, 134 operators for unauthorized ride-sharing services, 102 motorists for running red lights, and 108 for speeding. In addition, 141 drivers were fined for lane discipline violations, 186 for unnecessary honking in designated silent zones, 158 for parking on footpaths, and 77 for driving in the wrong direction on one-way roads.
Two pilots required for helicopter flights from June 15
The Civil Aviation Authority of Nepal (CAAN) has introduced stricter monsoon safety measures, requiring all helicopter flights to operate with two pilots during the 2026 rainy season. According to an annual circular issued by the Flight Safety Standards Department, the requirement will take effect on June 15, 2026, and remain in force until the Department of Hydrology and Meteorology officially declares the end of the monsoon. Medical evacuation flights carrying stretcher patients are exempt. The directive also mandates comprehensive pre-flight inspections, requiring pilots and dispatchers to verify aircraft condition, minimum equipment requirements, and weather conditions along the route. Flights will not receive clearance unless essential systems—including weather radar, anti-skid systems, flight controls, engine reverse thrust, and ground proximity warning systems—are fully functional. Pilots have also been instructed to maintain safe distances from severe weather and divert flights when conditions deteriorate.
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