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 governance developments reveal a country attempting to tighten regulation, strengthen accountability, and accelerate structural transformation, while still facing persistent implementation challenges. The most significant signal is Nepal Rastra Bank’s stricter framework for hire purchase financing companies, including higher capital requirements and tighter lending controls, reflecting a broader push toward financial stability and stronger supervision.
Market indicators remain mixed: NEPSE recorded only a marginal gain despite turnover exceeding Rs 4.1 billion, while gold and silver prices rose sharply, suggesting continued investor preference for safe-haven assets amid uncertainty. The government is simultaneously advancing institutional reforms through plans to digitize public records, enforce Public
Accounts Committee directives, regulate the expanding digital economy, and intervene in municipalities that have failed to present budgets. Social protection measures, such as enforcing senior citizen transport discounts and supporting landless Dalit beneficiaries, indicate renewed attention to inclusion and service delivery.
At the same time, strong demand for South Korean jobs, concerns over LPG supply, rising egg prices, and disputes in the hydropower sector highlight ongoing pressures on employment, inflation, energy management, and private investment. Overall, the developments point to cautious reformism constrained by administrative bottlenecks and uneven execution.
NEPSE edges up as turnover exceeds Rs 4.1 billion
The Nepal Stock Exchange (NEPSE) posted a marginal gain on Tuesday, the second trading day of the week, with the benchmark index rising 0.79 points to close at 2,641.85 points. The increase represents a 0.03 percent rise from the previous session, when the market had fallen by 9.04 points. Trading activity remained strong, with 8.53 million shares of 340 companies changing hands through 52,033 transactions. Total turnover reached Rs 4.109 billion, higher than Monday’s Rs 3.674 billion. The sensitive index also increased by 0.85 points to 462.22 points, while share prices advanced for 133 companies, declined for 122, and remained unchanged for the rest.
Gold jumps to Rs 307,900, silver rises to Rs 4,780
Gold and silver prices increased in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 6,400 per tola to reach Rs 307,900, while silver increased by Rs 110 per tola to Rs 4,780. On Monday, gold was traded at Rs 301,500 per tola and silver at Rs 4,670 per tola.
NRB raises regulatory standards for hire purchase financing companies
Nepal Rastra Bank (NRB) has introduced revised operational guidelines for hire purchase financing companies, setting stricter regulatory requirements for institutions operating across the country. Under the new framework, such companies must maintain a minimum paid-up capital of Rs 300 million. The central bank has also barred them from accepting public deposits or carrying out business activities beyond those permitted under their licenses. The updated provisions impose tighter loan-to-value limits, debt ceilings linked to net worth, and mandatory asset classification rules. In addition, senior management officials are required to meet specified academic qualifications, while company licenses must be renewed every 10 fiscal years.
Finance minister pledges compliance with PAC directives
Finance Minister Swarnim Wagle has said the government will fully implement the directives issued by the Public Accounts Committee (PAC) regarding financial records destroyed during the protests of Sept 8–9, 2025. Speaking at a committee meeting, Wagle described the destruction of documents as a force majeure event caused by circumstances beyond the government’s control. Responding to concerns raised by former finance minister Barsaman Pun, he said both the government and the opposition share a common understanding of the situation. To address pending audit issues, the minister proposed a recovery process using secondary data, cross-checking of records, and document reconstruction, while also inviting committee oversight. He added that the government plans to digitize official records to prevent similar losses in the future.
IRD names 14 winners in taxpayer reward lottery
The Inland Revenue Department (IRD) has announced the names of 14 winners under the government’s taxpayer incentive lottery program. Hemraj Joshi won the Rs 1 million bumper prize, while 15 other consumers received prizes of Rs 100,000 each for digital transactions supported by VAT and PAN invoices. The scheme, launched on July 17, aims to encourage formal economic transactions. Eligible online purchases are automatically entered into daily and semi-monthly lucky draws conducted through the official tax portal, subject to applicable tax deductions.
Ministry moves to enforce travel discounts for senior citizens
The Ministry of Women, Children, Senior Citizens and Social Welfare has begun coordinated efforts to ensure implementation of legal provisions granting 50 percent fare discounts and at least two reserved seats for senior citizens on public transport. Acting on the instructions of Minister Sita Badi, the ministry has sought support from the Ministry of Physical Infrastructure and Transport after receiving complaints that transport operators were not complying with the law. Officials said the benefits guaranteed under the Senior Citizens Act, 2006 must be strictly enforced to protect the rights and dignity of elderly citizens.
Cabinet approves tax waiver for electric ambulances
The Cabinet has approved a full exemption from the Clean Infrastructure Investment Fee and Value Added Tax (VAT) on electric ambulances and hearses that are either imported or manufactured in Nepal. Government spokesperson Sasmit Pokharel said the decision was taken during Tuesday’s Cabinet meeting. The Cabinet also approved the establishment of a Portuguese consular office in Kathmandu and appointed Nirmal Kumar Upreti of Bara as executive director of the Foreign Employment Board. In addition, the government decided to make public the 2023/24 study and investigation report on the Ncell share transaction, prepared under the coordination of former Auditor General Tanka Mani Sharma Dangal.
Committee calls for stronger digital economy regulation
The National Assembly’s Development, Economic Affairs and Good Governance Committee held discussions on Tuesday on the rapid expansion of Nepal’s digital economy. Participants noted that the sector is growing beyond fintech and digital payments into areas such as content creation, gig work, and algorithm-driven services. Experts stressed the need for stronger legal reforms, data-sharing systems, and personal data protection measures. They also argued that interoperable government databases and clear rules for inter-agency data exchange could reduce delays in business registration and improve digital governance.
EPS Korea receives over 76,000 applications for 7,002 jobs
The EPS Korea branch of the Department of Foreign Employment has received 76,172 applications for 7,002 job quotas allocated for employment in South Korea in 2026. Department Director General Meera Acharya said interest remains exceptionally high because South Korea is widely viewed as a secure and attractive destination for Nepali workers. Of the total applicants, 52,121 applied for 5,000 manufacturing jobs, 22,051 for 2,000 agriculture and livestock positions, and 1,000 each for 100 vacancies in the service and forestry sectors. Under the revised rules, applicants may apply for only one sector. Candidates who pass the language examination must also clear skills and competency tests before final selection.
Joint team to visit Madhesh municipalities over budget delays
The Ministry of Federal Affairs and General Administration has announced that a joint delegation led by a joint secretary will visit several municipalities in Madhesh Province that have not yet presented their annual budgets to municipal assemblies. The team, which includes representatives from the Office of the Prime Minister and Council of Ministers, the National Vigilance Centre, and NARMIN, will visit Kamla Municipality in Dhanusha and Garuda, Phatuwa Bijaypur, and Maulapur in Rautahat. The ministry said the visit is intended to help resolve administrative deadlocks, identify obstacles to budget approval, and prevent disruptions in public services and local development projects.
Government forms one-month task force on Biratnagar Jute Mill revival
The government has formed a task force with a one-month mandate to study possible options for reviving the historic Biratnagar Jute Mill. The decision was taken during a high-level meeting at the Office of the Prime Minister and Council of Ministers. The task force is being coordinated by a joint secretary from the Ministry of Industry, Commerce and Supplies and includes representatives from the Office of the Prime Minister and Council of Ministers, the Ministry of Finance, the Ministry of Law, Justice and Parliamentary Affairs, and two technical experts. The committee has been tasked with reviewing the mill’s financial, technical, and legal condition, assessing assets and machinery, examining earlier studies, and submitting recommendations for asset settlement and operational revival within a month.
Tanahun committee verifies landless Dalit beneficiaries
The District Landless Problems Resolution Committee in Tanahun carried out field inspections on Monday to verify the status of 14 landless Dalit and squatter households recommended by Devghat Rural Municipality. The inspection was led by Committee Chairman and Chief District Officer Shivalal Tiwari. Teams visited properties in Devghat Rural Municipality-1 to assess housing conditions after the expiry of the mandatory seven-day period for claims and objections. Officials said the final administrative verification process has been completed, paving the way for eligible families to receive formal land ownership certificates.
NAIMA Nepal Mobility Expo 2026 opens in Kathmandu
The NAIMA Nepal Mobility Expo 2026 officially began on Tuesday at Bhrikutimandap in Kathmandu. The exhibition, organized by the Nepal Automobile Importers and Manufacturers Association (NAIMA), was inaugurated by Inspector General of Police Dan Bahadur Karki. The expo will continue until August 16 and features vehicles and automotive products from 53 brands. Organizers said more than 40 new vehicles and related products are expected to be launched or showcased during the event.
LPG shortage forces Rupandehi residents to queue in extreme heat
Residents of Rupandehi have been facing difficulties due to an irregular supply of liquefied petroleum gas (LPG), with consumers standing in long lines under intense heat to obtain cylinders. To ease the shortage, the Nepal Oil Corporation (NOC) Lumbini Provincial Office in Bhalwari has started distributing LPG directly to consumers in coordination with the Gas Sellers Association and the District Administration Office. On Tuesday, at least 1,600 cylinders were being distributed at Bal Mandir in Butwal and the Food Corporation premises in Bhairahawa. Gas from several brands, including Butwal, Aarti, Siddhartha, Siddhinath, Trishul, Janaki, Swastik, Chandeshwari, and Lumbini, was included in the distribution. Consumers were seen waiting for hours, many using umbrellas to protect themselves from the heat as temperatures in Rupandehi hovered around 36 degrees Celsius.
CTEVT contract and wage workers to surround Sanothimi office
Contract, monthly, and daily wage workers of the Council for Technical Education and Vocational Training (CTEVT) have announced plans to surround the organization’s central office in Sanothimi. Organized under the Contract, Monthly and Daily Wage Workers Central Struggle Committee, they are demanding job security, service benefits, and the reinstatement of 74 dismissed workers. Their demands include allowances such as Dashain advances, uniforms, training opportunities, remote-area benefits, and improved working conditions. The committee has also sought a written commitment, an implementation timeline, and a clear action plan from the authorities.
IPPAN demands removal of PPA cap and withdrawal of new directive
The Independent Power Producers’ Association, Nepal (IPPAN) has called for the immediate removal of limits on power purchase agreements (PPAs) for projects exceeding 16,000 megawatts in pending applications. During discussions with Nepal Electricity Authority Acting Executive Director Dirghayu Kumar Shrestha, IPPAN President Mohan Kumar Dangi criticized regulatory delays, financing obstacles, and the newly introduced Power Purchase Agreement Power Schedule Determination Directive 2026. Developers also demanded fair compensation for transmission delays, streamlined grid connections, and stronger institutional coordination to protect private investment in the hydropower sector.
DDC cuts unpaid dues to farmers to Rs 350 million
The Dairy Development Corporation (DDC) has reduced its outstanding payments to dairy farmers by more than half within three months, bringing liabilities down from Rs 720 million to around Rs 350 million. Officials attributed the improvement to administrative reforms, cost-cutting measures, higher sales of stored dairy products, and market expansion. Daily sales revenue has reportedly increased from Rs 6 million to Rs 9 million. The corporation has also sold 600 metric tons of skimmed milk powder and 450 metric tons of butter, shortening the payment cycle to two to three months, with a target of settling dues within one month in the future.
Ghami Khola motorable bridge completed in Mustang
A 40-meter motorable bridge over the Ghami River in Lo Ghekar Damodarkunda Rural Municipality-2 has been completed, improving year-round transportation on the Jomsom-Korala trade route. The bridge was built at a cost of Rs 68 million after prolonged delays caused by difficult terrain and logistical challenges. Project officials said all major works, including foundations, slab casting, approach roads, and river protection structures, have been completed. The bridge is expected to eliminate seasonal transport disruptions for cargo containers and travelers heading toward the Korala border pass.
Special Court grants Shekhar Golchha release on Rs 10 million bail
The Special Court has ordered businessman and former Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Shekhar Golchha to be released on Rs 10 million bail in a money laundering case. A joint bench comprising Chairperson Basudev Acharya and members Hemanta Rawal and Bidur Koirala issued the order, allowing the trial to proceed after the submission of bail or an equivalent bank guarantee. The Department of Money Laundering Investigation has sought Rs 2.733 billion from Golchha in connection with a case involving businessman Deepak Bhatta.
Egg prices rise again amid supply concerns
Egg prices have increased again from Tuesday following a fall in production linked to bird flu outbreaks and poultry deaths. According to the Nepal Layers Poultry Farmers Association, extra-large eggs are now priced at Rs 560 per crate, large eggs at Rs 545, medium eggs at Rs 500, and small eggs at Rs 3,000 per box of seven crates. Farmers say that despite the increase, they are still struggling to recover production costs, which average more than Rs 19 per egg.
CIB seeks prosecution of 22 in Smart Telecom case
The Central Investigation Bureau (CIB) of Nepal Police has completed its investigation into the Smart Telecom asset misappropriation case and recommended prosecution against 22 individuals, including former Nepal Telecommunications Authority Chairman Bhupendra Bhandari. The report has been submitted to the Kathmandu District Attorney’s Office. Investigators allege that former company officials, purchasers, bank representatives, and regulatory personnel were involved in the illegal disposal of assets that should have reverted to state ownership after Smart Telecom’s license was canceled for non-payment of renewal fees.
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