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 balancing modest market optimism with deep structural challenges. The stock market continued its gradual recovery, with NEPSE rising 0.33 percent and turnover improving to Rs 3.72 billion, suggesting cautious investor confidence rather than a strong rally. Gold prices eased while silver edged higher, reflecting mixed sentiment in commodity markets.
The more significant signals come from public finance and infrastructure. Finance Minister Swarnim Wagle acknowledged the widening gap between public expectations and limited fiscal resources, while parliamentary scrutiny intensified over drinking water shortages, stalled projects and weak infrastructure investment. Lawmakers also pressed the government on LPG shortages and alleged black-marketing, highlighting growing concern over essential service delivery.
At the same time, the government is pursuing reforms aimed at improving economic efficiency, including restructuring agricultural supply chains to reduce intermediaries and raise farmers’ incomes. The Nepali Congress has also called for stronger support to the private sector and clearer long-term economic policies.
However, concerns about the investment climate remain. The ongoing CIB probe into a Rs 1.5 billion transaction trail and Ncell’s objection to the publication of a share-deal investigation report have added uncertainty for investors. Overall, the developments point to an economy seeking reform and growth but constrained by governance, infrastructure and credibility deficits.
NEPSE rises 8.81 points as turnover reaches Rs 3.72 billion
The Nepal Stock Exchange (NEPSE) index advanced by 8.81 points, or 0.33 percent, on Thursday to close at 2,651.21, extending the market’s mild upward movement seen earlier this week. The Sensitive Index also gained 0.97 points, or 0.21 percent, to settle at 464.59, while the Float Index and Sensitive Float Index recorded marginal increases. Trading activity improved during the session, with total daily turnover climbing to Rs 3.72 billion, up from Rs 3.53 billion on Wednesday.
Gold declines by Rs 500 while silver edges higher
Gold prices fell by Rs 500 per tola in the domestic market on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped to Rs 306,200 per tola from Rs 306,700 on Wednesday. Silver prices, however, increased by Rs 5 per tola to Rs 4,745, compared with Rs 4,740 a day earlier.
Finance Minister Wagle vows to address public needs despite limited budget
Finance Minister Dr. Swarnim Wagle has said the government is trying to meet people’s basic needs despite resource constraints and rising public expectations. Addressing residents in Dumsi, Tanahun, he said priority was being given to essential services such as drinking water, roads, schools, health facilities and river embankments. Wagle also promised to consult relevant ministries regarding drinking water and embankment projects in Dumsi, where about 500 households are facing water shortages. He thanked local residents for electing him to the House of Representatives twice and said he would continue working for Tanahun’s development.
National Assembly members raise LPG shortage and other public concerns
Members of the National Assembly have urged the government to resolve the continuing shortage of cooking gas and take action against alleged black-market activities. Speaking during zero hour, lawmakers also called for the release of senior journalist Kishor Shrestha and raised concerns over changes in the flow of the Seti River linked to the Tanahun Hydropower Project. Other issues highlighted included the deaths of Nepali climbers in Pakistan, unresolved demands of reserve-affected victims in Kanchanpur, the need for a rental policy in the Kathmandu Valley and police action against residents of Naraharinath Rural Municipality in Kalikot.
CIB examines Rs 1.5 billion transaction trail
The Central Investigation Bureau (CIB) of Nepal Police has identified suspicious financial transactions involving businessman Upendra Mahato, Bhavana Singh Shrestha and MG Herbal and Investment during its investigation into the Smart Cell and Ncell cases. According to bank records, Rs 1.5 billion deposited by Shrestha into Mahato’s Nepal Investment Mega Bank account was transferred to MG Herbal and Investment through matching transactions between May and July 2024. The transactions have raised questions about their purpose, although police have not filed charges against Mahato and say the investigation is continuing.
Water crisis highlights widening infrastructure investment shortfall
The Infrastructure Development Committee of the House of Representatives has directed the government to prepare short-, medium- and long-term plans to address the country’s drinking water crisis. At a meeting in Singha Durbar on Thursday, the committee stressed the need for greater investment in water infrastructure and called for funding to complete 176 stalled overhead water tanks in Madhesh, where many shallow tube wells have dried up. The committee also requested a feasibility study on using the Sunkoshi–Marin Diversion Project as a long-term water source for Madhesh and the Terai. It said drying water sources, unfinished projects, leakage and weak coordination were reducing the effectiveness of existing investments.
Government targets middlemen to boost farmers’ earnings
The government has formed a high-level task force to reform the agricultural supply chain with the goal of reducing middlemen, increasing farmers’ income and lowering consumer prices. The task force, led by Department of Agriculture Deputy Director General Diwas Raj Bista, found that agricultural products may pass through as many as five layers of intermediaries before reaching consumers. The government plans to reduce the number of intermediaries to two or three levels, a change that could increase farmers’ earnings by nearly 30 percent. The task force is studying 12 major markets and production centers and is examining options such as improved storage, processing, packaging, market information systems and direct farm-to-consumer delivery.
Foreign Ministry fellowship emphasizes economic diplomacy and investment
The Ministry of Foreign Affairs has concluded its eight-week Summer Fellowship and Internship Program 2026, during which participants conducted research on issues relevant to Nepal’s economic and foreign policy. Research areas included development finance, investment diplomacy, labor migration, workers’ rights, energy transition, tourism and diaspora engagement. The program brought together 10 fellows and 10 interns to produce policy research intended to support government decision-making. The ministry said the initiative is especially important as Nepal prepares to graduate from the Least Developed Country category, a change that could affect trade preferences, concessional financing and development partnerships.
Ncell objects to publication of share deal investigation report
Private telecom operator Ncell has opposed the government’s decision to publish an investigation report related to its share purchase and sale, arguing that the move violates privacy rights and could harm Nepal’s investment environment. The report was made public on August 11 following a Cabinet decision. Ncell said the publication disclosed confidential information and was inconsistent with a High Court ruling. The company cited constitutional and legal protections related to privacy and taxpayer information and warned that the disclosure could weaken foreign investor confidence. Ncell said it is considering legal action under national and international laws and bilateral agreements.
Nepali Congress seeks stronger backing for private sector
The Nepali Congress has called on the government to strengthen support for the private sector, describing it as essential for economic growth, production, revenue generation and employment creation. The party urged reforms to laws that restrict business activity and asked the government to adopt clear, long-term economic policies to improve investor confidence, prevent capital flight and attract both domestic and foreign investment. Party spokesperson Devraj Chalise said the Congress would support constructive government measures aimed at strengthening the economy. The party’s central working committee meeting, chaired by President Gagan Kumar Thapa, continued in Lalitpur, with 28 members speaking during Wednesday’s session.
Food Trading Company opens sales outlet at Singha Durbar
The state-owned Food Management and Trading Company has opened a sales outlet inside Singha Durbar to provide daily essential goods to civil servants and visitors seeking government services. Industry, Commerce and Supplies Minister Gauri Kumari Yadav inaugurated the outlet on the company’s seventh anniversary. The outlet offers 142 food and non-food items, with priority given to locally produced goods. The company has also launched subsidized-price shops at 193 locations in 44 districts, where consumers will receive discounts of Rs 5 per kilogram or liter on essential commodities.
Nepali agencies win 17 trophies at Flame Awards Asia
Five Nepali marketing and communication agencies secured a total of 17 awards at the Flame Awards Asia 2026 held in New Delhi, taking home 13 Gold, three Silver and one Bronze trophy. The awards were presented on August 7 at Taj Vivanta, Dwarka, for campaigns created for both domestic and international brands. Outreach Nepal, Lemon and Digital In won the majority of the awards, while StORM Communication Nepal and MGG Labs also received recognition in various categories. The regional awards honor excellence in marketing and communication based on creativity, innovation, consumer insight, technology, audience engagement and measurable results. The jury consisted of more than 40 industry experts from several South Asian countries.
Ilam revenue collection drops by nearly 49 percent
Revenue collection in Ilam declined by Rs 506.76 million, or 48.94 percent, to Rs 528.65 million in fiscal year 2025/26, according to the District Treasury Controller Office. Federal government offices collected Rs 341.71 million, down from Rs 848.27 million in the previous fiscal year, while revenue collected by Koshi provincial offices fell slightly to Rs 186.94 million. Government offices also returned Rs 2.121 billion, or 17.5 percent, of the Rs 12.124 billion budget allocated to them because the funds could not be spent. Federal offices returned Rs 1.604 billion, and provincial offices returned Rs 516.08 million.
Koshi Tappu attracts increasing tourist interest
Koshi Tappu Wildlife Reserve is drawing growing attention from visitors because of its rare wildlife, rich bird population and expanding potential for nature-based tourism. The reserve received 11,603 visitors in fiscal year 2024/25, including 11,214 domestic tourists. By mid-June of the current fiscal year, 9,242 people had already visited the reserve. A Ramsar-listed wetland, Koshi Tappu is home to 498 wild water buffaloes, 535 bird species, 141 fish species and several other rare animals. The area offers opportunities for birdwatching, wildlife viewing and ecotourism. However, poor road access, limited accommodation, inadequate infrastructure, weak promotion and insufficient investment continue to restrict tourism growth.
Parsa administration calls for uninterrupted electricity and internet
The District Administration Office in Parsa has asked electricity and internet service providers to ensure regular and uninterrupted services after repeated disruptions affected government operations, including revenue collection. Chief District Officer Bhola Dahal directed service providers to address the problem immediately and said the administration was coordinating with the concerned authorities to resolve the issue.
Chitwan youths demand technology, entrepreneurship and jobs
Young people in Chitwan have called for technology-friendly and entrepreneurship-oriented politics to create employment opportunities and reduce Nepal’s dependence on remittances. Speaking at an International Youth Day program organized by the Rastriya Swatantra Party’s Chitwan committee, participants stressed that politics should be linked with entrepreneurship and practical results rather than rhetoric. During a panel discussion on agricultural entrepreneurship, speakers highlighted modern technology, research and market management as essential for developing agriculture as a viable business sector. Lawmakers Hari Dhakal and Prabha Dhakal also urged youths to learn from their experiences and called for greater accountability from local governments in agricultural development.
Bharatpur water board recovers Rs 15.5 million in arrears
The Bharatpur Water Supply Management Board has recovered Rs 15.503 million in unpaid water bills from 1,503 customers since February/March 2026. The recovery campaign targeted customers owing more than Rs 5,000 or those with bills unpaid for over six months. The board used notices, door-to-door visits, SMS reminders and service disconnections during the drive. About Rs 2 million is still outstanding from 500 long-term defaulters. Meanwhile, Bharatpur Metropolitan City has yet to reimburse more than Rs 10 million owed under its program providing seven units of free water to households, with payments pending since November/December 2025.
NAIMA Expo draws strong crowds as buyers explore new models
The NAIMA Nepal Mobility Expo 2026 in Kathmandu attracted more than 26,000 visitors on its second day, with strong interest in cars and motorcycles across different price ranges. Visitors closely examined vehicle features, while battery capacity, driving range, performance and after-sales service emerged as major buying considerations. To attract customers, companies offered discounts, free insurance and servicing, vehicle tax waivers and financing packages. Four new models were unveiled on the second day after 48 launches on the opening day. Organizers expect around 150,000 visitors during the six-day exhibition, which continues through August 16 at Bhrikutimandap.
Raghuganga launches local taxpayer services
Raghuganga Rural Municipality in Myagdi has begun providing taxpayer services locally, including issuing PAN certificates, income tax registration and updating PAN information. Previously, residents had to travel to the Inland Revenue Office in Baglung for these services. Officials said the new arrangement would reduce travel time and costs while improving tax compliance and access to government services. The service was inaugurated by Rural Municipality Chairperson Bhav Bahadur Bhandari and Baglung Inland Revenue Office Chief Tax Officer Kapil Silwal. Raghuganga is among six local governments in Baglung, Parbat, Mustang and Myagdi districts now offering taxpayer services.
Bhimphedi introduces cash subsidy for millet cultivation
Bhimphedi Rural Municipality has launched a cash subsidy program to encourage millet farming and preserve indigenous crops. Under the fiscal year 2026/27 program, farmers and registered agricultural firms from all wards can apply for incentives if they cultivate millet on at least two ropani of land. The municipality’s Agriculture Development Section has invited applications, and subsidies will be distributed according to approved agricultural guidelines. Officials said the initiative is intended to encourage continued cultivation of traditional crops as farmers increasingly shift toward market-oriented agriculture. Applicants must submit citizenship certificates, ward recommendations and other required registration, renewal, tax and PAN documents.
Dhanusha Distillery appoints Muktinath Capital for IPO
Dhanusha Distillery Limited has appointed Muktinath Capital as the issue manager for its planned initial public offering. The company intends to issue 20 percent of its issued capital to the general public. The agreement was signed by Dhanusha Distillery Chairman Kisan Kumar Dhanawat and Muktinath Capital CEO Kabindra Dhwaj Joshi. Established in 1998, the distillery has an annual production capacity of 9.18 million liters and currently produces Mustang Gold Whisky and Mustang Vodka. The company plans to expand its product range and strengthen its presence in both domestic and international markets, with the IPO expected to support its broader growth strategy.
Mahakali Corridor remains stalled after 15 years
Construction of the 413-kilometer Mahakali Corridor, launched in fiscal year 2009/10 to connect Kanchanpur with Tinker on the Nepal-China border, has progressed slowly. Of the 334-kilometer section under the project office, 46.3 kilometers of track remain unopened, while only 6.4 kilometers of the entire corridor has been blacktopped. The Nepali Army has opened track along just 16 kilometers of the 79-kilometer Tinker section. The project requires an estimated Rs 18.16 billion to become fully operational, but only Rs 4.22 billion has been spent so far. Difficult terrain, delays in tree clearance, shortages of explosives and inadequate funding continue to hinder progress.
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