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 development landscape reflects a blend of encouraging progress and persistent structural weaknesses. The sharp decline of the NEPSE index to a six-month low underscores weakening investor confidence despite the announcement of a new budget and monetary policy. Regulatory actions against recruitment agencies and continued disputes over foreign employment procedures highlight governance challenges in the labor migration sector.
Meanwhile, the Asian Development Bank’s lower growth forecast for Nepal signals the impact of global geopolitical tensions and rising energy costs on the country’s economic outlook. On the positive side, infrastructure development continues with safer highways, improved local connectivity, and municipal investment in urban projects.
Tourism remains a bright spot, as rising visitor numbers have boosted revenue in the Annapurna Conservation Area. Agriculture is also showing resilience through returnee entrepreneurship, subsidized farm mechanization, and expanded forestry initiatives. Financial inclusion efforts, including NRB’s nationwide customer satisfaction survey and Siddhartha Bank’s women-focused loan scheme, indicate a greater emphasis on improving access to financial services.
However, demands from private schools for policy revisions reflect continuing concerns over regulatory burdens. Overall, the developments suggest that while Nepal is making steady progress in infrastructure, tourism, agriculture, and financial inclusion, restoring investor confidence, ensuring policy stability, and addressing structural economic challenges will be critical to achieving sustainable and broad-based growth.
Stock market sinks to six-month low amid weak investor sentiment
Nepal’s stock market has fallen to its lowest level in six months, with the Nepal Stock Exchange (NEPSE) index slipping to around 2,600 points as investor confidence continues to weaken. Despite expectations that the formation of a new government, the annual budget, and the latest monetary policy would revive the market, sentiment has remained subdued. The benchmark index has dropped roughly 350 points from its March high, reflecting concerns over policy effectiveness, limited incentives for investors, and persistent market uncertainty. Market analysts attribute the decline to recent business-related arrests, cautious institutional investors, and the absence of significant stock market support in the monetary policy, prompting many investors to adopt a wait-and-see approach.
Gold rises while silver slips in domestic market
Gold prices in Nepal’s domestic market increased by Rs 600 per tola on Sunday, reaching Rs 288,000, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold had closed at Rs 287,400 per tola on Friday. In contrast, silver prices declined by Rs 35 per tola to Rs 4,475 from the previous trading session’s Rs 4,510. The latest revision reflects continued strength in gold prices, while silver recorded a modest decline.
DoFE warns 159 recruitment agencies over unauthorized transit routes
The Department of Foreign Employment (DoFE) has issued warnings to 159 recruitment agencies for sending Nepali migrant workers abroad through Indian airports without prior approval. The department said the agencies violated provisions of the Foreign Employment Act, which requires workers to depart through authorized airports in Nepal. The action followed an inspection of 678 out of 1,117 licensed agencies. DoFE also directed 439 agencies to submit missing records and imposed fines of Rs 50,000 each on eight agencies found to be repeat offenders. It warned that stricter penalties would be imposed for future violations.
NRB to conduct nationwide financial customer satisfaction survey
Nepal Rastra Bank (NRB) is set to carry out the Financial Customer Satisfaction Survey 2026 in all 77 districts to evaluate public perceptions of financial services, including accessibility, service quality, transparency, and complaint handling. The central bank plans to gather responses from 10,405 participants through random sampling of local wards to support future policy and regulatory reforms. NRB has called on the public to participate voluntarily and assured respondents that all personal information will remain confidential under the Statistics Act, 2022.
National Project Bank registers over 8,300 projects
The National Planning Commission (NPC) has entered 8,310 projects into the National Project Bank as part of preparations for the upcoming national budget. Of the approved projects, 7,773 relate to feasibility studies, 404 are new initiatives, and 133 are ongoing projects. The commission said 8,199 projects have an estimated cost of less than Rs 1 billion, while 111 projects exceed that amount. It added that additional projects submitted by federal agencies are currently being screened through the National Project Bank Management Information System.
Indian official to visit Nepal for energy cooperation talks
Munu Mahawar, Additional Secretary at India’s Ministry of External Affairs, will arrive in Nepal on July 13 for bilateral meetings on energy and water resources cooperation. Mahawar, who heads the ministry’s North Division responsible for relations with Nepal, China, and Bhutan, is scheduled to meet Foreign Minister Shishir Khanal. He will also participate in meetings of the Nepal-India Joint Steering Committee and Joint Working Group on July 14 and 15 to discuss expanding cooperation in the energy and water sectors.
ADB lowers growth outlook for Nepal and South Asia
The Asian Development Bank (ADB) has revised downward its economic growth forecasts for Nepal and several South Asian economies, citing higher energy prices and continued global market disruptions. In its Asian Development Outlook: July 2026, the ADB projected economic growth in developing Asia and the Pacific at 4.9 percent in 2026, down from 5.5 percent in 2025. The report said conflicts in the Middle East have intensified pressure on global energy markets, driving up the prices of fuel, fertilizers, and other commodities while disrupting supply chains. Regional inflation is now expected to reach 4.3 percent in 2026, with the ADB warning that further geopolitical tensions could pose additional risks to economic growth and food security.
Recruitment agencies challenge DoFE’s action over Indian airport transit
The Nepal Foreign Employment Entrepreneurs Association (NAFEA) has objected to the Department of Foreign Employment’s decision to take action against recruitment agencies for sending workers through Indian airports. The association argued that many migrant workers opted to travel via India because of high airfares, limited flight availability from Nepal, and temporary government relaxations introduced during upgrades at Tribhuvan International Airport. NAFEA said penalizing agencies under such circumstances was unfair and called on the department to withdraw the action and resolve the issue through dialogue with stakeholders.
Anti-loan shark march advances toward Kathmandu
A protest march against predatory lending practices entered its fourth day as participants continued their journey from Lalbandi toward Kathmandu. The “Justice March,” which began in Janakpur on July 9, includes loan victims and entrepreneurs demanding stronger government action against illegal lending practices. Organizers said the protest would continue until it reaches the capital, citing the government’s failure to fully implement previous agreements. Marchers are covering between 20 and 26 kilometres each day and are expected to arrive in Kathmandu within a week.
Ex-migrant builds thriving vegetable farming business in Sunsari
After spending eight years working in Malaysia and the Maldives, Ganesh Acharya of Inaruwa-8 in Sunsari has established a successful commercial vegetable farm upon returning to Nepal. Cultivating seasonal and off-season crops such as cucumbers, bitter gourds, chilies and eggplants on 12 kattha of owned and leased land, he now earns an estimated Rs 1 million to Rs 1.2 million annually. With support from the Agriculture Knowledge Center, including seeds, fertilizers and farming materials, Acharya has expanded production. He believes farming can provide sustainable livelihoods if farmers have access to land, markets and proper support, despite challenges such as labor shortages and unstable prices.
Private schools seek review of education fee and loan policies
Private school associations have urged the government to reconsider provisions in the fiscal year 2026/27 budget and the 10th Amendment to the Education Regulation. In a joint statement, they said Nepal’s 10,471 private schools educate around 3.74 million students and make a significant contribution to the national economy. The associations opposed the proposed 3 percent Equity Education Service Fee, describing it as an unnecessary financial burden on parents, and called for its removal. They also demanded collateral-free higher education loans of at least Rs 1 million and expansion of the “Earn While You Learn” programme.
Landslide mitigation improves travel on Dumre-Besisahar road
Travel along the Dumre-Besisahar road has become safer during the monsoon following the completion of landslide mitigation works at Udipur. Built by the federal government at a cost of Rs 111.9 million, the project includes micropiles along the Marsyangdi River, retaining structures, gabion walls, road blacktopping and slope stabilization measures. Local residents and transport operators say the improvements have significantly reduced landslide risks and enhanced year-round connectivity. The road is a vital transport link for Lamjung and Manang districts and serves as a gateway to the Annapurna Circuit trekking route.
Sunsari forest office distributes over 35,000 free seedlings annually
The Ramdhuni Sub-Division Forest Office in Sunsari has been producing and distributing more than 35,000 free seedlings each year to promote afforestation and environmental conservation. The nursery supplies a variety of species, including khayar, jacaranda, lemon, sisau, wood apple, guava and tejpat, with demand steadily increasing since its establishment four years ago. Seedlings are provided free of charge to individuals, community forests and organizations, particularly during the monsoon planting season. The office also offers technical assistance, supports forest management activities and conducts regular patrols to protect national forest areas.
Devchuli provides subsidized farm machinery worth Rs 9.2 million
Devchuli Municipality in Nawalpur has distributed modern agricultural equipment worth Rs 9.2 million to farmers under a subsidy programme aimed at increasing agricultural productivity. Supported through the Agricultural Innovation Promotion Partnership Project, the initiative allows farmers to purchase equipment at a 50 percent discount. More than 13 farmer groups, over 70 agricultural entrepreneurs and commercial farmers have benefited. The municipality supplied hand tractors, harvesters, seeders, threshers and other machinery, with particular attention given to the needs of farmers in hilly areas where larger tractors are difficult to operate.
Annapurna Conservation Area revenue exceeds Rs 927 million
The Annapurna Conservation Area generated Rs 927.59 million in revenue during the current fiscal year, an increase of approximately Rs 164.2 million compared to the previous year. According to the Annapurna Conservation Area Program, more than Rs 464.88 million came from tourist entry fees collected by the National Trust for Nature Conservation. Officials attributed the growth to rising tourist arrivals, improved trekking infrastructure and upgraded trails. The conservation area currently operates 1,413 hotels and lodges to accommodate the growing number of trekkers and visitors.
Bhanu Literary Park project moves ahead in Tanahun
Construction of the Bhanu Sahitya Udyan, a national pride project designed to transform the birthplace of Nepali literary pioneer Bhanu Bhakta Acharya into an international literary and academic destination, has gained momentum. The park is being developed over approximately 338,000 square metres at Ramgha Danda in Bhanu Municipality-4, Tanahun. Planned facilities include Bhanu Bhavan, a life-sized statue of Bhanu Bhakta, Saptadham, Sahitya Gram, Pragya Bhavan and other modern infrastructure. The government has allocated Rs 240 million for the next fiscal year to continue construction under a multi-year development plan.
Nepalgunj approves Rs 1.76 billion budget for fiscal year 2026/27
Nepalgunj Sub-Metropolitan City has endorsed a Rs 1.76 billion budget for the fiscal year 2026/27 during its 19th Municipal Assembly. The budget prioritizes urban development projects, including the beautification of the Bagishwari Temple area, Khadeshwor Junge Mahadev Temple, construction of a 108-foot Hanuman statue, commercial buildings, improvements to the Jamunaha border checkpoint and a new city bus park. It also focuses on revenue enhancement, environmental conservation, better public services, project monitoring and preparation of the detailed project report for the proposed Nepalgunj Ring Road.
Siddhartha Bank launches women-focused business loan scheme
Siddhartha Bank Limited has introduced the “Siddhartha Mahila Samriddhi Karja” loan programme to improve access to finance for women-led micro, small and medium-sized enterprises. The scheme offers collateral-free loans of up to Rs 1.5 million, loans of up to Rs 2.5 million with partial collateral and financing of up to Rs 50 million against full collateral. With technical support from the International Finance Corporation, the bank has also introduced a specialized credit assessment system that evaluates businesses based on growth potential, financial performance, cash flow and operational capacity instead of relying primarily on collateral.
Khajura opens alternative road to improve Nepalgunj-Gulariya connectivity
Khajura Rural Municipality in Banke has completed a new alternative road linking Adarsha Secondary School, Dhaulagiri village and B-Gaun, improving connectivity along the Nepalgunj-Gulariya section of the Hulaki Highway. The road bypasses the congested Khajura market, allowing smoother traffic movement during disruptions on the main highway. The project became possible after the completion of a bridge funded by the provincial government at a cost of Rs 61.09 million. The municipality is also expanding blacktopped roads, improving drainage systems and working toward cleaner, flood-resilient communities.
Mixed vegetable prices at Kalimati market as cauliflower surges
Wholesale vegetable prices at Kathmandu’s Kalimati Fruits and Vegetable Market showed mixed trends on Sunday, with local cauliflower and carrots recording notable price increases. The price of local cauliflower jumped from Rs 37 to Rs 83 per kilogram, while local carrots rose to Rs 101 per kilogram. Prices of small local tomatoes and several other vegetables also increased. In contrast, cabbage, bitter gourd, bottle gourd and large Nepali tomatoes became cheaper, while commodities such as long eggplant, maize beans, pointed gourd and pumpkins remained unchanged.
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