KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The collection of reports presents a mixed picture of Nepal’s current economic and regulatory landscape, marked by cautious optimism in financial markets alongside structural and environmental challenges. While the stock market edged up marginally with strong turnover, record-high gold and silver prices and rising dividend payouts from banks and insurance companies point to active capital movement and investor interest.
At the same time, strengthened financial oversight is evident in the sharp rise in suspicious transaction reporting, reflecting tighter compliance and monitoring mechanisms. However, climate-induced agricultural losses, particularly the decline in paddy production in Rautahat, underscore vulnerabilities in the real economy.
Regulatory enforcement actions, local protests demanding equitable benefit-sharing from hydropower projects, and bans on illegal resource extraction highlight growing scrutiny over governance and sustainability. Together, these developments suggest an economy balancing market momentum and institutional reform against persistent environmental, social, and regulatory pressures.
NEPSE edges up slightly as turnover reaches Rs 6.9 billion
Nepal Stock Exchange (NEPSE) posted a marginal gain on Tuesday, rising by 4.90 points to close at 2,639.91. Total turnover for the day reached NPR 6.9 billion. Among the traded companies, share prices of 118 firms increased, while 134 saw a decline. Shares of eight companies remained unchanged. In terms of individual performance, Three Star Hydropower shareholders earned the highest profit from sales, whereas shareholders of Rusuwagadhi Hydropower incurred the largest losses. Although NEPSE recorded a slight gain overall, six sectoral indices ended in positive territory, while six others remained in the red.
Suspicious transaction reporting rises by 30 percent
The Financial Intelligence Unit (FIU) under Nepal Rastra Bank has made public its 14th annual report for the fiscal year 2081/82 (2024/25), highlighting significant progress in efforts to control money laundering and financial crimes in Nepal. According to the report, the number of Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) received from financial institutions increased by 30 percent during the review period. While 7,338 such reports were received in the previous fiscal year, the number rose to 9,565 this year. The increase indicates heightened vigilance within the financial sector and a strengthening of monitoring mechanisms. The FIU has fully digitized the reporting of all suspicious transactions. The report states that the number of reporting entities connected to the goAML system increased by 113.36 percent, reaching 3,497 institutions. Notable progress has been achieved in integrating cooperatives, precious metals traders, and remittance companies into the system.
Gold, silver prices hit fresh all-time highs
Gold and silver prices in the domestic market climbed to new historic highs on Tuesday, continuing their upward trend in line with record prices in the international market. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of gold was fixed at Rs 276,500 per tola for Tuesday. This marks an increase of Rs 1,800 from the previous day, when gold was traded at Rs 274,700 per tola. Silver also became more expensive, rising by Rs 145 to reach Rs 5,340 per tola. On Monday, silver was traded at Rs 5,195 per tola. Traders say the surge in prices in the Nepali market is driven by fresh records in global gold and silver prices, which have directly pushed up local rates.
Paddy production declines in Rautahat
Paddy production in Rautahat district has declined this year compared to last year due to floods triggered by incessant rainfall in September. The floods inundated paddy fields during the crucial harvesting period, significantly affecting overall output. Surendra Prasad Kurmi, Acting Chief of the Agricultural Knowledge Center, Rautahat, said the district recorded a decrease of 21,578 metric tons in paddy production this year. According to him, Rautahat produced 116,708 metric tons of paddy last year, while production this year stood at 95,130 metric tons. Kurmi said paddy was cultivated on 31,500 hectares of land this year, with an average yield of 3.02 metric tons per hectare.
Authorities inspect 18 firms, takes action
The Department of Commerce, Supplies and Consumer Protection has inspected 18 firms in Kathmandu and Lalitpur and taken action against them. During the inspection, the Department fined New RA Enterprises Rs 20,000 for activities found to be in violation of the Consumer Protection Act, 2075 BS. The monitoring team inspected paint companies, hardware shops, and outlets selling construction materials. One firm was fined on the spot, while 17 others were issued corrective instructions. According to the Department, regular market monitoring and reform initiatives are being carried out to control black marketing, protect consumers’ rights, and ensure environmental compliance.
Locals submit memorandum to Makarigad Hydropower seeking share allocation
Residents of Api Himal Rural Municipality wards 3, 4 and 5 have staged protests against Makarigad Hydropower Company Limited, which has completed construction of a 10-MW hydropower project in the area. The locals are demanding that shares be allocated to communities affected by the project. To press their demands, they have formed the Makarigad Share Distribution Struggle Committee and submitted a formal memorandum to the company. Protesters claim that local people have been deprived of direct benefits despite hosting the project. The move comes as the company prepares to issue public shares. The memorandum, signed by committee coordinator Devendra Singh Rokaya, calls for shares to be made easily accessible to economically disadvantaged locals and demands that at least 80 percent of shares be reserved for residents of the project-affected area.
Demand for traditional sweets surges ahead of Maghi
As the Maghi festival approaches, demand for traditional sweets made from sugar candy (sakkhar) has increased sharply. Maghi, which marks the Sun’s transition into Capricorn, is celebrated with foods such as sesame sweets, molasses with ghee, laddus, and sweet potatoes. Sugar candy producers in Chaugurji village of Gulariya Municipality–7 are operating at full capacity to meet seasonal demand. The industry currently produces up to 500 quintals of sugar candy daily, all of which is sold directly from the production site. With Maghi nearing, buyers have been flocking to the factory, making this period the busiest of the year for producers.
Reliable Nepal Life Insurance approves 12 percent dividend
Reliable Nepal Life Insurance Limited has approved a 12 percent cash dividend, including tax, for its shareholders. The decision was taken during the company’s ninth annual general meeting held today. The meeting also endorsed the annual report, auditor’s report, balance sheet, profit and loss account, and cash flow statement for the previous fiscal year. In addition, shareholders approved the appointment of an auditor and determination of remuneration for the current fiscal year.
Namkha bans illegal extraction of river materials
Namkha Rural Municipality has imposed a strict ban on the illegal extraction, transport, storage and sale of river-based construction materials such as sand, gravel and stones. The decision follows a rise in unregulated extraction activities across the municipality. Planning Officer Mohan Bahadur Shahi said a public notice has been issued ordering an immediate halt to illegal mining from rivers, streams, gullies and hills. Authorities noted that materials were being illegally sourced for both private and public construction projects, particularly in areas stretching from Hekpa Khola in Ward 1 to Hilsa in Ward 5.
Machhapuchhre Bank partners with WeChat Pay operator Tenpay
Machhapuchhre Bank has signed a direct agreement with Tenpay Payment Technology Company Limited, the operator of WeChat Pay, to facilitate seamless digital payments for Chinese tourists visiting Nepal. Under the partnership, Chinese visitors will be able to make payments in Nepal using yuan, while Nepali merchants will receive payments in Nepali rupees. The bank believes the initiative will promote secure, convenient digital transactions across tourism, retail and service sectors.
Nepal’s quality products gaining global trust: Minister Sinha
Minister for Industry, Commerce and Supplies Anil Kumar Sinha said Nepal’s products are increasingly earning international trust for quality. Speaking at the 30th and 31st annual general meetings of the Nepal German Chamber of Commerce, he emphasized strengthening Nepal–Germany business ties and promoting people-to-people connections. German Ambassador to Nepal Udo Eugen Volz expressed interest in expanding bilateral cooperation, while FNCCI President Chandra Prasad Dhakal stressed the need for a business-friendly environment that allows the private sector to operate freely.
Prabhu Mahalaxmi Life Insurance approves 8.42 percent dividend
Prabhu Mahalaxmi Life Insurance Limited has approved an 8.42 percent dividend at its ninth annual general meeting. The meeting, chaired by Board Chair Samjhana Aryal, endorsed a 4 percent bonus share and a 4.421 percent cash dividend, including tax. Shareholders also approved the annual report, audited financial statements, and the appointment of an auditor for the current fiscal year.
Suryajyoti Life Insurance opens 176th branch in Urlabari
Suryajyoti Life Insurance Company has opened its 176th branch in Urlabari, Morang, aiming to expand access to insurance services. The branch was inaugurated by CEO Prakash Bikram Khatri and Urlabari Deputy Mayor Meena Khatiwada Poudel. The company said the new branch will help residents of Urlabari and surrounding areas access life insurance services more easily and efficiently.
Nirvan Chaudhary appointed Nabil Bank chairman
In its 699th board meeting held on Monday, Nabil Bank selected director Nirvan Kumar Chaudhary as the chairman of the board. He will assume office after taking the oath from Nepal Rastra Bank, officially taking charge of the chairman’s responsibilities. Nabil Bank has also approved a 12.50 percent cash dividend at its 41st annual general meeting (AGM). The meeting, chaired by the bank’s outgoing chairman Upendra Prasad Paudel on Monday, passed the dividend proposal from the bank’s profit for the fiscal year 2024/25. At the AGM, Anil Keshari Shah was elected unopposed as a director representing the founder shareholders’ group on the bank’s board of directors. During the current fiscal year 2025/26, Nabil Bank has also issued new capital instruments worth Rs 5 billion “Nabil 8% Non-Convertible Non-Cumulative Preference Shares” with a face value of Rs 100 each.
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