KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy is showing a mix of cautious optimism and persistent structural challenges. While strong liquidity in the banking system, reflected in the NRB’s absorption of Rs 100 billion, suggests ample financial resources, investor sentiment remains subdued as the NEPSE index continued to decline despite healthy trading turnover.
Rising gold and egg prices point to inflationary pressures and a shift toward safer assets, while large fertilizer stocks sitting in warehouses alongside delayed distribution highlight inefficiencies in agricultural supply chains. On the positive side, the government’s Rs 70 billion commitment to transmission infrastructure, progress on the Araniko Highway expansion, and reforms in hydropower licensing signal efforts to boost long-term economic growth.
However, concerns over unmonitored agricultural grants, troubled cooperatives, environmental violations, and inactive hydropower projects underscore ongoing governance and implementation gaps that continue to hinder productivity and investor confidence.
NEPSE slips 4 points; daily turnover reaches Rs 4.34 billion
The Nepal Stock Exchange (NEPSE) index fell by 4 points on Friday to close at 2,724.03, while the Sensitive Index declined by 0.53 points to 467.09. A total of 9.85 million shares of 342 listed companies changed hands, generating a turnover of Rs 4.34 billion. Share prices of 91 companies gained, 167 declined and 13 remained unchanged. Central Finance recorded the highest turnover, followed by City Hotel, Ankhu Khola Hydropower, Himal Dolakha Hydropower and Reliance Spinning Mills. Sopan Pharmaceuticals, Apollo Hydropower and Green Development Bank emerged as the top gainers, while Kalinchowk Hydropower, SBL Debenture and Nepal SBI Bank Debenture were among the biggest losers.
Gold climbs to Rs 292,000 per tola, silver also rises
Gold and silver prices increased in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 5,300 per tola to reach Rs 292,000. Similarly, silver gained Rs 190 per tola and is now trading at Rs 4,840. On the previous day, gold was priced at Rs 286,700 per tola, while silver stood at Rs 4,650 per tola.
NRB absorbs Rs 100 billion from banking system
Nepal Rastra Bank (NRB) withdrew Rs 100 billion in excess liquidity from the banking sector through its deposit collection instrument. Commercial banks and other eligible financial institutions participated in the competitive bidding process, with bids starting from a minimum of Rs 100 million. The 19-day instrument will mature on July 1, when the principal and interest will be repaid.
Supreme Court lifts temporary protection for civil service unions
The Constitutional Bench of the Supreme Court has declined to continue an interim order that had prevented the government from dissolving civil service trade unions. The five-member bench, led by Chief Justice Manoj Kumar Sharma, ruled that the matter should proceed to a full hearing before a final verdict is issued. The decision effectively nullifies the stay order issued on May 11, allowing the government to implement provisions of the Some Nepal Acts Amendment Ordinance 2026 related to the dissolution of employee unions.
Government earmarks Rs 70 billion for transmission infrastructure
The government has allocated Rs 70 billion in the national budget for the expansion of transmission lines and substations. The policy also seeks to increase private sector involvement in cross-border electricity trade and accelerate the completion of key transmission corridors. In addition, the government plans to table the Water Resources Bill and Renewable Energy Bill in Parliament, introduce fixed interest rates on hydropower loans and allow storage-based hydropower projects to issue up to 40 percent of their shares to the public during their first year of operation.
Panel recommends scrapping 38 hydropower licences
A high-level committee formed by the Ministry of Energy, Water Resources and Irrigation has recommended the cancellation of 38 inactive hydropower project licences with a combined capacity of 1,388 MW. The panel also advised revoking 11 additional licences issued before 2019 that account for 169 MW. The report identified 75 projects with a total capacity of 4,121 MW as problematic and proposed restricting project promoters from selling shares for five years after project surveys to discourage speculation.
Nearly 100 million kilograms of fertilizer remain in storage
According to the Ministry of Agriculture, Forest and Environment, more than 98,000 metric tonnes of subsidised chemical fertilizer remain stored in government warehouses across the country. Koshi Province holds nearly 14 million kilograms of urea and DAP, while Madhesh Province accounts for more than 42 million kilograms. To ensure adequate supply during the planting season, the government has arranged the import of 90,000 metric tonnes of fertilizer by July and is moving ahead with government-to-government agreements with India to import additional quantities of urea and DAP.
Industry Ministry cracks down on pollution along Sirsiya River
The Ministry of Industry, Commerce and Supplies has launched stricter monitoring of factories accused of discharging untreated wastewater into the Sirsiya River. The Department of Industry has been instructed to inspect industrial facilities and ensure compliance with environmental standards, including the operation of treatment plants. Authorities have warned that factories violating environmental regulations could face suspension of operations.
Egg prices rise for fourth time in a month
The Nepal Layers Poultry Farmers Association has increased farm-gate egg prices for the fourth time within a month. Between May 17 and June 11, the association raised prices of XL, large and medium eggs by Rs 45 per crate, while small eggs became Rs 500 more expensive per carton. Wholesale prices now stand at Rs 575 per crate for XL eggs, Rs 560 for large eggs and Rs 530 for medium eggs. Small eggs are selling at Rs 3,200 per carton, while the recommended retail price remains Rs 25 per egg.
Committee publishes names of 132 cooperative loan defaulters
The Problematic Cooperative Management Committee has publicly identified 132 loan defaulters linked to troubled cooperatives. The list includes 12 borrowers associated with Hamro Naya Krishi Cooperative Limited and 120 borrowers connected to Krishi Bikas Multipurpose Cooperative Society Limited. Authorities have warned that those who fail to settle their dues or contact liquidators may face legal action, including asset seizure.
Araniko Highway widening reaches 57 percent completion
The expansion of the 15.8-kilometre Araniko Highway section between Suryabinayak and Dhulikhel has reached 57 percent physical progress despite challenges related to funding and land acquisition. The Suryabinayak–Sanga segment is 52 percent complete under a contract worth Rs 3.89 billion, while the Sanga–Dhulikhel stretch has achieved 70 percent progress under a Rs 4.06 billion project. The government has allocated Rs 908.9 million for the upcoming fiscal year to continue construction of service lanes and central medians.
Audit flags unmonitored agricultural grants in Sudurpaschim
The latest report of the Office of the Auditor General has raised concerns over Rs 381.5 million in agricultural subsidies distributed by the Sudurpaschim Province Ministry of Land Management, Agriculture and Cooperatives without adequate monitoring. According to the audit, Agriculture Knowledge Centres and Veterinary Expert Centres provided grants to more than 3,200 beneficiaries, but failed to assess project outcomes or ensure compliance with programme requirements. The ministry spent only 66.56 percent of its Rs 2.8 billion annual budget, leaving several planned projects unimplemented.
Anbukhaireni distributes Rs 2.1 million in dairy subsidies
Anbukhaireni Rural Municipality in Tanahun has provided around Rs 2.1 million in subsidies to local dairy farmers under its production-based incentive programme. The support was distributed based on the production of 359,190 litres of milk during the first two quadrimesters of the current fiscal year. Farmers received incentives at the rate of Rs 6 per litre to encourage dairy production and strengthen rural livelihoods.
Local governments warned over fertilizer transport delays
The Ministry of Agriculture, Forest and Environment has issued a final warning to 26 local governments in Sudurpaschim Province for failing to transport chemical fertilizers from designated depots. Several major agricultural municipalities, including Godawari, Gauriganga, Janaki, Dhangadhi, Bhimdatta and Bedkot, have yet to collect their allotted supplies despite the ongoing rice planting season. Officials warned that if local authorities do not act promptly, fertilizers will be distributed directly to farmers.
Switzerland backs local revenue reform initiative in Nepal
Nepal and Switzerland have signed an agreement to implement the Municipal Revenue Enhancement Project (MunRev), aimed at strengthening the revenue-generating capacity of local governments. The agreement was signed by Swiss Ambassador Danielle Meuwly and Finance Ministry Joint Secretary Dhani Ram Sharma. The project will support municipalities in improving revenue collection systems, strengthening governance and enhancing public service delivery.
Chitwan begins management of old Sal timber
The Division Forest Office in Chitwan has started managing 5,200 cubic feet of Sal timber that has remained in forests for more than five years. The move follows provisions in the third amendment to the Forest Act, 2022, which allows the management of aged timber stock. According to the office, the high-grade timber stored in Satanchuli Community Forest and Chumlingtar is expected to generate between Rs 1,000 and Rs 1,250 per cubic foot in revenue.
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