KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic landscape reflects a mix of reform efforts, structural weaknesses, and sectoral imbalances. On one hand, the government is pushing regulatory tightening—particularly by bringing cooperatives and microfinance under central bank oversight—and enhancing transparency through measures like mandatory MRP labeling and market inspections.
At the same time, macroeconomic signals are mixed: while real estate activity and tourism are rebounding and gold prices are rising, public spending remains skewed toward recurrent expenses with persistently weak capital investment, slowing infrastructure delivery. External shocks, such as rising fuel costs, continue to disrupt major development projects, while inefficiencies are evident in loss-making public enterprises like the railway and delays in essential supply chains.
Social sectors also reveal gaps, including low health insurance uptake and farmer dissatisfaction over pricing. Overall, the data suggests an economy in transition—showing pockets of growth and policy intent, but still constrained by governance challenges, uneven implementation, and vulnerability to external pressures.
NRB to take direct oversight of cooperatives and microfinance institutions
The government has proposed bringing cooperatives and microfinance institutions under the direct supervision of Nepal Rastra Bank (NRB) to strengthen regulation. The plan includes linking these institutions with the Credit Information Bureau to ensure loans are issued based on borrowers’ actual capacity. Authorities also aim to establish an Integrated Savings Security Fund to protect depositors and prioritize compensation for victims of troubled cooperatives. In addition, usury will be criminalized, and cooperative registration and monitoring systems will be fully digitized to reduce fraud.
Gold and silver prices surge in domestic market
Gold and silver prices have risen sharply in the domestic market. Gold increased by Rs 3,100 per tola to reach Rs 299,800, while silver climbed by Rs 165 to Rs 5,065 per tola. The rise reflects ongoing fluctuations in the precious metals market.
Govt spends over half of budget in first nine months
The government has utilized around 54 percent of its total budget in the first nine months of fiscal year 2025/26. Of the allocated Rs 1.964 trillion, about Rs 1.59 trillion had been spent as of April 13, according to the Financial Comptroller General Office. While recurrent expenditure reached Rs 747 billion, capital spending remained weak at Rs 96.19 billion, accounting for just 23.58 percent of the allocation. Delays in infrastructure projects have been linked to shortages of fuel and bitumen amid Middle East tensions. Meanwhile, total revenue collection stood at Rs 907 billion, including Rs 886 billion from taxes.
Importers given 15-day deadline to label MRP on goods
Importers have been instructed to label the Maximum Retail Price (MRP) on all imported goods within 15 days. The directive, issued by the Department of Commerce, Supplies and Consumer Protection after discussions with business representatives, also requires the issuance of formal invoices for all sales. Authorities will begin strict market monitoring after the deadline, and any goods found without MRP labeling will face legal action.
Govt aims to generate 30,000 MW electricity within a decade
The government has set a target to achieve 30,000 megawatts of installed electricity capacity within the next 10 years. The plan includes legal reforms in land, forest and environmental sectors, along with financial support for large reservoir-based hydropower projects such as Budhigandaki and Dudh Koshi. The strategy also focuses on promoting energy-intensive industries and expanding electricity exports to position Nepal as a regional clean energy hub.
National economic census 2026 to begin nationwide
The National Statistics Office is set to launch the National Economic Census 2026 from Wednesday, with data collection continuing until June 21. The census will gather information on both formal and informal businesses, employment patterns, and sectoral contributions. In Baglung, trained enumerators and supervisors have already been deployed. The exercise follows Nepal’s first economic census in 2018 and is expected to support future policy planning.
Real estate sector rebounds with highest activity in three years
Nepal’s real estate market has seen a strong recovery, generating around Rs 15 billion in government revenue this fiscal year—the highest in three years. Studies show significant growth in real estate and housing loans over recent years. Madhesh Province leads in transaction volume, while Bagmati records the highest value. Authorities are preparing to introduce a formal property price index.
Karnali allocates Rs 430 million for tourism and infrastructure
Karnali Province has earmarked Rs 430 million for tourism promotion, focusing on developing religious and historical sites. Projects include upgrading key locations into hill stations through private sector involvement. Additional funds have been allocated for settlement development near Phoksundo Lake and infrastructure improvements, including roads and school buildings. The province has also registered thousands of new industries, contributing to revenue growth.
Janakpur–Jayanagar railway records Rs 481 million loss
Nepal’s only railway service, the Janakpur–Jayanagar line, has incurred losses totaling Rs 481.5 million over the past five years. Income has remained far below operational costs, partly due to high expenses such as salaries for foreign technical staff. Plans are underway to reduce losses through land leasing and the introduction of cargo services.
Fuel price hike halts major projects in Sudurpashchim
Rising fuel prices and supply disruptions have stalled several large infrastructure projects in Sudurpashchim Province. Construction on the 204-kilometer Seti Highway South Section has come to a halt due to fuel shortages, with 35 kilometers still remaining. Bitumen scarcity has also slowed road blacktopping despite allocated funds. Other projects, including the Mahakali Irrigation Third Phase and the Mahakali Corridor, have also been affected. Contractors are demanding cost revisions and have even proposed a “construction holiday” due to mounting losses.
Farmers dissatisfied with government-set wheat support price
Wheat farmers in Kanchanpur have criticized the government’s support price of Rs 3,945 per quintal, saying it does not cover rising production costs. Delays in procurement by the Food Management and Trading Company have further worsened the situation, forcing many farmers to sell at lower prices to middlemen due to limited storage facilities.
Market department inspects 54 firms in a day to protect consumers
The Department of Commerce, Supplies and Consumer Protection stepped up market monitoring by inspecting 54 businesses in a single day. The checks, focused on the Khasi Bazaar area of Kathmandu Metropolitan City-14, aimed to curb black marketing and the sale of substandard goods. Acting under the Consumer Protection Act 2018 and its regulations, the department issued corrective directives and took action against violators. Officials said such inspections are carried out regularly with the involvement of consumer rights activists to ensure transparency and protect consumers.
Pokhara hotels see over 90 percent occupancy during New Year
Tourism activity in Pokhara surged during New Year 2083, with hotel occupancy in the Lakeside area exceeding 90 percent. The 21st Phewa New Year Festival, organized by the Hotel Association Pokhara Nepal, significantly boosted domestic tourism. Following Pokhara’s designation as Nepal’s tourism capital, stakeholders reported rising visitor numbers, particularly for nature and adventure tourism. The city’s 1,200 hotels can accommodate up to 40,000 tourists daily.
Low enrollment in health insurance program in Shuklaphanta
Participation in the national health insurance scheme remains low in Shuklaphanta Municipality, with only 5,756 people enrolled—just over 10 percent of the population. Most enrollees joined through federal support programs. Despite affordable premiums and coverage benefits, challenges such as complex procedures, lack of awareness, and limited access to healthcare facilities have discouraged wider participation.
Calls grow to re-nationalize Lumbini Sugar Industry
Local stakeholders in Sunwal, Nawalparasi (Bardaghat Susta Paschim), are urging the government to bring the Lumbini Sugar Industry back under state ownership. Privatized in 2005, the factory has seen a sharp decline in workforce and operations. Advocates argue that re-nationalization would support farmers, ensure timely payments, boost domestic sugar production, and create stable employment.
Subsidized salt reaches Humla after long delay
Residents of Tajakot Rural Municipality in Humla have finally received subsidized salt after a nine-month delay caused by transportation issues. Of the 479 quintals allocated, 340 quintals have been delivered, with the rest expected soon. The salt will be sold at Rs 9 per kilogram. This marks the first such supply in a year, although it was originally scheduled much earlier.
Egg prices increase amid supply shortage and high demand
Egg prices have risen following a drop in production and increased demand during the New Year period. The price of large eggs has gone up by Rs 15 per crate, while medium-sized eggs have also become more expensive. Farmers say rising temperatures and disease have affected production, and current prices still do not cover costs.
Fire damages factories in Jhapa causing major losses
A fire in Birtamod Municipality-4, Jhapa, destroyed two factories early Tuesday, causing an estimated loss of Rs 10 million. The blaze gutted Jhapali Chips Factory and Saugat Kastha Furniture, destroying raw materials, machinery and finished products. Firefighters, security personnel and locals brought the situation under control. No casualties were reported, and an investigation is underway.
Korean firm to set up Rs 600 million plant in Chitwan
Korean company SY Panel has started building a UPVC manufacturing plant in Chitwan with an investment of Rs 600 million. The facility will produce construction materials such as doors, windows and partitions and is expected to begin operations within six months. The project is likely to create jobs and introduce modern, energy-efficient building solutions.
Tanahu farmers earn Rs 450 million from orange sales
Farmers in Tanahu have earned around Rs 450 million from orange production this year. To sustain and boost output, authorities have introduced subsidy programs to rejuvenate aging orchards and expand new plantations. The initiative aims to improve productivity and meet growing market demand while strengthening rural incomes.
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