KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy currently presents a mixed picture of strong external-sector resilience alongside deep structural weaknesses in governance, investment confidence, and project execution. Record-high remittance inflows, rising bank deposits, and comfortable foreign exchange reserves continue to support macroeconomic stability, but the sharp decline in the NEPSE index despite high market turnover reflects investor uncertainty and concerns over alleged insider trading and weak financial governance.
At the same time, delays in infrastructure projects, disruptions in fertilizer and tea supplies due to external geopolitical and regulatory pressures, and the blacklisting of contractors highlight persistent implementation and institutional challenges.
The government’s push for fiscal reforms, tighter accountability, and larger result-oriented development projects suggests an attempt to improve efficiency, yet low capital spending, poor compliance among lawmakers, and dependence on remittance-driven consumption indicate that Nepal still struggles to transition from a consumption-based economy toward sustainable productive growth.
NEPSE falls 39.44 points as turnover rises to Rs 4.665 billion
The Nepal Stock Exchange (NEPSE) index declined by 39.44 points, or 1.41 percent, on Tuesday, closing at 2,744.40 after gains in the previous trading session. The Sensitive Index also dropped by 1.08 percent to 468.26 points, while the float index and sensitive float index fell by 1.35 percent and 1.18 percent respectively. More than 10.67 million shares of 338 listed companies were traded through 62,512 transactions, generating a total turnover of Rs 4.66 billion. Share prices of 251 companies declined, while only 13 companies recorded gains and five remained unchanged. Except for the mutual funds subgroup, all sectoral indices ended lower, with hydropower, trading, finance, and hotel sectors recording some of the sharpest losses.
NRB says total bank deposits reach Rs 7.879 trillion
Nepal Rastra Bank (NRB) has reported that total deposits in banks and financial institutions increased by 8.5 percent during the first nine months of the current fiscal year, rising by Rs 615.67 billion to reach Rs 7.879 trillion. Savings deposits make up 45.3 percent of the total, while fixed deposits account for 38.9 percent. During the review period ending April 13, 2026, private sector lending expanded by 5.7 percent, equivalent to Rs 311.95 billion, bringing total credit to Rs 5.809 trillion. Credit flow to the construction and industrial production sectors rose by 10.7 percent and 6.5 percent respectively, whereas agricultural lending declined by 2.3 percent.
Remittance inflows hit record Rs 1.659 trillion
Remittance inflows into Nepal reached a historic high of Rs 1.659 trillion during the first nine months of fiscal year 2025/26, reflecting a 39.1 percent increase compared to the same period last year. According to Nepal Rastra Bank (NRB) data released up to April 13, 2026, remittance inflows for March/April alone stood at Rs 2.097 billion. Foreign exchange reserves climbed to Rs 3.494 billion, or USD 23.55 billion, enough to cover 18.4 months of imports. During the same period, 294,186 Nepali citizens obtained new labor permits, while 293,259 renewed their permits. The country’s balance of payments remained in surplus at Rs 731.1 million.
Gold and silver prices rise in domestic market
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 4,400 per tola, reaching Rs 302,900 per tola, up from Monday’s rate of Rs 298,500. Similarly, silver prices climbed by Rs 355 per tola to Rs 5,695, compared to Rs 5,340 on Monday.
Finance Minister accuses insiders of manipulating capital market
Finance Minister Swarnim Wagle has alleged that a small group has been manipulating the capital market through insider trading and misuse of public funds worth Rs 15 to 16 billion to accumulate illegal wealth. Addressing a meeting of the House Finance Committee on Tuesday, Wagle claimed that parts of the financial and stock market sectors had fallen under the control of a limited group of individuals, posing a serious challenge to economic governance. He said the government is working on reforms aimed at making the capital market more transparent, professional, and internationally competitive. According to the minister, earlier market manipulation allowed influential groups to dominate economic institutions and expand their political influence through financial power.
Only 58 lawmakers file property details with Parliament Secretariat
Only 58 lawmakers have submitted their property disclosure forms to the Lawmakers’ Facility Branch of the Federal Parliament Secretariat. According to Section 50 (1) of the Prevention of Corruption Act, 2002, and Section 31A (1) of the Commission for the Investigation of Abuse of Authority Act, 1991, public officials are required to submit updated details of assets held in their own name or in the name of family members within 60 days of assuming office. The Secretariat has issued a notice reminding members of both the 275-member House of Representatives and the 59-member National Assembly that the deadline for submission is May 24.
Ministry warns against black-market sale of low-quality fertilizers
The Ministry of Agriculture and Livestock Development has warned against the sale of substandard fertilizers and black-marketing of government-subsidized fertilizer products. Under the Chemical Fertilizer (Control) Order, 1998, the ministry said strict monitoring is being enforced to ensure that only fertilizers meeting official standards and specifications are imported and sold in the market. The sale of mixed fertilizers, misuse of labels, and dissemination of false information to mislead farmers have been prohibited. Farmers have been advised to purchase fertilizers only from authorized dealers of Agriculture Inputs Company Limited and Salt Trading Corporation. The ministry has also urged the public to immediately report irregularities such as overpricing or poor-quality products to local governments or district administration offices for legal action.
Tea exports disrupted by stricter Indian testing rules
Nepal’s tea exports have been severely affected after India introduced stricter laboratory testing requirements for imported tea shipments. Under the new regulation, samples from every consignment must undergo testing in Kolkata, with reports taking nearly 15 days to be issued. The rule has caused significant delays at the Nepal-India border in Jhapa, where trucks carrying tea remain stranded awaiting clearance. Only limited quantities of tea have been exported since the regulation came into effect, while most shipments remain halted. Producers say the added testing expenses and delays have made exports increasingly difficult. Tea entrepreneurs have urged the government to address the issue through diplomatic channels, arguing that repeated procedural changes by India are damaging one of Nepal’s major export industries.
Price hikes slow Suryabinayak-Dhulikhel six-lane road expansion
The expansion of the Suryabinayak-Dhulikhel section of the Arniko Highway into a six-lane road has slowed considerably, with contractors citing rising prices of bitumen and petroleum products linked to conflicts in the Middle East. Physical progress has reached 70 percent in Kavrepalanchowk and 50 percent in Bhaktapur. Ashish Kumar Shrestha/Bandhan/Bhagwati JV is constructing the 7.3-kilometer Suryabinayak-Sanga section at a cost of Rs 3.889 billion, with the deadline extended until mid-January this year. Lama Construction is working on the 8.5-kilometer Sanga-Dhulikhel stretch under a Rs 4.056 billion contract, with completion targeted for mid-December 2025. Delays have resulted in severe dust and mud problems, sparking public outrage and contributing to local fatalities.
Chinese passenger car exports jump 85 percent in April
Chinese passenger vehicle exports surged by around 85 percent in April, reaching 796,000 units, according to figures released by the China Association of Automobile Manufacturers (CAAM). The growth was largely driven by exports of new energy vehicles, including electric and plug-in hybrid cars, which increased by more than 120 percent to 420,000 units. Rising global fuel costs contributed to stronger international demand. Meanwhile, China’s domestic automobile market continued to weaken, with vehicle sales falling by 25.5 percent to 1.3 million units, marking the sixth consecutive month of declining domestic sales. Major Chinese brands such as BYD and Geely are expanding manufacturing operations in Europe and Latin America to strengthen their global market presence.
Koshi Province changes tourism strategy after Rs 10 billion spending
The Koshi Province government has decided to stop investing in small-scale tourism projects costing less than Rs 2.5 million after concluding that nearly Rs 10 billion spent over the past eight years failed to produce expected results. The province now plans to focus on larger, result-oriented tourism projects under Public-Private Partnership (PPP) models, including the Birat King’s Palace, Pathibhara, and the Chatara-Barahachhetra cable car project. Officials said the ministry currently faces liabilities worth Rs 332.5 million for multi-year projects and requires around Rs 3 billion to complete 63 unfinished projects. Although the province has generated Rs 60.2 billion in revenue from forest management, officials cited federal regulations as a major obstacle to promoting international tourism effectively.
PPMO blacklists 14 contractors for violating contracts
The Public Procurement Monitoring Office (PPMO) has blacklisted 14 contractors and suppliers for failing to meet contractual obligations, prohibiting them from participating in government procurement and bidding processes for up to 18 months. The action was taken under the Public Procurement Act following recommendations from institutions including the Nepal Army, the Lalitpur Road Division Office, and the Surkhet Water Supply and Irrigation Directorate. Companies including Nagarjun Construction, Ashika Nirman Sewa, Majdur Construction, Mainachuli Nirman Sewa, and Suruchi Construction have been barred for 18 months. Other firms such as Soni Builders and Engineering and Om Infratech received one-year suspensions. Officials said the move is intended to strengthen accountability and discipline in public infrastructure development projects.
Committee begins refund process for depositors of troubled cooperatives
The Office of the Problematic Cooperative Management Committee has started collecting claims and supporting documents from depositors as part of the refund process for troubled cooperatives. According to the office, services related to refunds and matters involving government or public institutions will operate from 9 am to 3 pm, while grievance handling and statement distribution will take place after 3 pm under a revised schedule introduced to better manage increasing crowds. Authorities have also clarified procedures concerning statement requests, loans and collateral, legal disputes, and property release or restrictions. Depositors have been urged to submit the required documents on time to ensure a transparent and systematic refund process.
Govt sets Rs 1.89 trillion budget ceiling, plans revenue office reforms
The government has fixed a budget ceiling of Rs 1.89 trillion for the fiscal year 2026/27 while moving forward with major fiscal and administrative reforms. Finance Secretary Ghanshyam Upadhyay informed the House Finance Committee that ministries have already received spending limits and begun entering plans into the budget system. Officials said priority would be given to completing ongoing projects and reducing unnecessary expenditure. Capital expenditure in the current fiscal year stands at 26 percent, while revenue collection has reached Rs 886 billion, around 60 percent of the target. The government also plans to abolish the Department of Revenue Investigation due to overlapping responsibilities. Authorities said 39 government structures, more than 300 posts, and 15 outdated laws have already been removed or repealed.
National Economic Census 2026 to begin in Parsa and Bara
The National Statistics Office will carry out the National Economic Census 2026 in the industrial districts of Parsa and Bara from April 15 to June 21, 2026. Data collectors will visit industries, educational institutions, health facilities, and financial organizations to gather economic data. Authorities have assured business owners that all collected information will remain confidential under the Statistics Act, 2022, and will not be used for taxation or legal evidence purposes. Both registered and unregistered entities have been encouraged to participate to help provide an accurate picture of the national economy.
Middle East conflict disrupts chemical fertilizer supply
The Ministry of Agriculture and Livestock Development has said the ongoing conflict in West Asia has disrupted the supply of around 185,000 tons of contracted chemical fertilizer. With the rice planting season approaching, the ministry is seeking alternative international suppliers to avoid shortages. Officials have also warned against the sale of low-quality and black-market fertilizers, stating that strict monitoring will be enforced under the Chemical Fertilizer (Control) Order, 1998. Farmers have been advised to buy fertilizers only from authorized dealers of Agriculture Inputs Company and Salt Trading Corporation and to report any irregularities to local authorities.
Integrated waste management centers begin operation in Sudurpashchim
Integrated waste management centers supported by the Asian Development Bank under the Regional Urban Development Project have come into operation in Attariya, Kailali, and Shuklaphanta Municipality in Kanchanpur. Construction of a similar facility in Ward 7 of Patela, Dhangadhi Sub-Metropolitan City, has been completed, although operations remain delayed because of a pending variation order estimated at Rs 1.09 billion. The Dhangadhi center, built by China’s Sichuan Province Geological Engineering Complex, is designed to manage waste for 30 years. The Shuklaphanta center was constructed with an investment of Rs 302.5 million, while Bhimdatta Municipality failed to participate in the project after being unable to provide the required land.
Snow Rivers opens IPO for general public
Snow Rivers Company has opened its initial public offering (IPO) for the general public from today after successfully allotting shares to local residents and migrant workers. Out of the company’s authorized capital of Rs 937.5 million, approval was granted to issue 20 percent, or 1.875 million shares. In the second phase, 778,125 shares worth Rs 77.8 million are being offered at a par value of Rs 100 per share. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares through the C-ASBA system. The issuance, managed by Sanima Capital, will close at the earliest on May 15.
Bridge construction approvals secured for Bheri Corridor project
The National Planning Commission has provided resource assurance to the Ministry of Finance for the construction of 14 bridges along the Nalgad (Tallu)-Dunai section of the Bheri Corridor. The bridges, including those over Phulbari Khola, Kharekhola, and Tripurakot, are considered vital for the 310-kilometer tri-national route connecting India, Nepal, and China. However, five motorable bridges awarded to Caravan Hirachan JV in January 2021 under contracts worth Rs 31.974 billion have seen almost no progress. While blacktopping work on a 56-kilometer stretch is nearly complete, a new Rs 740 million contract has been awarded to CAB Nirman-Jawalakhel JV for an additional 42-kilometer section, with completion targeted by mid-October 2028.
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