KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic and governance landscape reflects a mix of cautious financial stability, institutional reform efforts, and gradual sectoral recovery amid persistent structural challenges. While the NEPSE index continued its third straight decline despite higher trading turnover, stable or slightly reduced bank interest rates suggest improved liquidity conditions and a cautious push toward reviving private sector credit growth.
Corporate performance remained mixed, with Nepal Telecom posting strong profit growth even as NIMB faced scrutiny over the Smart Telecom asset auction case, highlighting ongoing concerns around financial governance and regulatory oversight.
At the same time, the government intensified accountability measures through a nationwide property investigation targeting current and former public officials, while efforts to revive key regulatory bodies and strengthen education infrastructure with World Bank support indicate a broader institutional reform agenda.
Tourism and remittance-linked service sectors showed encouraging momentum, driven by the resumption of the Kailash Mansarovar pilgrimage and expanding consular services abroad, which reflect stronger regional connectivity and diaspora engagement. However, long-standing development inefficiencies remain evident, particularly in Karnali Province, where heavily funded airports continue to sit idle, underscoring weaknesses in infrastructure execution and public investment utilization.
Overall, the developments point to an economy balancing moderate recovery and investment optimism with governance pressures, uneven infrastructure outcomes, and continued reliance on administrative reforms to sustain long-term growth.
NEPSE falls 10.07 points as turnover climbs to Rs 3.29 billion
The Nepal Stock Exchange (NEPSE) index declined by 10.07 points on Thursday to close at 2,730.17, marking its third consecutive day of losses despite an increase in market turnover. A total of 7.95 million shares of 337 companies were traded through 46,402 transactions, generating a daily turnover of Rs 3.29 billion, compared to Rs 2.80 billion recorded on Wednesday. Share prices of 80 companies advanced, while 174 companies posted losses. Among the sectoral indices, commercial banks, finance, hydropower, hotels and tourism, and investment sectors closed lower. Meanwhile, the trading, mutual fund, and life insurance sectors registered slight gains. The sensitive index also edged down by 0.07 percent to 467.20 points.
Gold and silver prices increase in domestic market
Gold and silver prices rose in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased by Rs 300 per tola (11.66 grams), reaching Rs 302,500. On Wednesday, gold prices had fallen by Rs 700 per tola and were traded at Rs 302,200 per tola. Silver prices also moved upward. Silver, which traded at Rs 5,710 per tola on Wednesday, increased to Rs 5,745 per tola on Thursday, reflecting a rise of Rs 35 per tola compared to the previous day.
Most banks keep interest rates unchanged for mid-May to mid-June
Most of Nepal’s commercial banks have decided to maintain existing interest rates for the upcoming period from mid-May to mid-June, indicating continued stability in the banking sector. According to the latest interest rate schedules, 12 out of 20 commercial banks retained the same rates offered during the previous mid-April to mid-May period. Among the banks that revised rates, six institutions — including NIC Asia Bank, NMB Bank, and Standard Chartered Bank Nepal — reduced their rates. NIC Asia lowered both individual and institutional deposit rates by 0.25 percentage points. In contrast, only Siddhartha Bank and Citizens Bank International made slight upward adjustments in selected categories. Banking experts say the trend of maintaining or slightly lowering rates reflects a cautious strategy aimed at balancing liquidity management with efforts to encourage credit growth amid current economic conditions.
NIMB clarifies Smart Telecom auction, says operations remain unaffected
Nepal Investment Mega Bank (NIMB) stated that it has taken serious note of media coverage related to the Smart Telecom loan recovery and asset auction case. The clarification came after the bank’s CEO, Jyoti Prakash Pandey, was taken into custody by the Central Investigation Bureau on May 13, 2026, for investigation purposes. NIMB said the recovery process was carried out in accordance with the Bank and Financial Institutions Act, 2017, and the Secured Transactions Act, 2006. The bank noted that Smart Telecom’s assets were auctioned after a public notice issued on September 19, 2025, generating Rs 4.60 billion. Of that amount, Rs 4.22 billion was used to repay loans, while Rs 380 million remains frozen to address pending liabilities. The bank added that the ongoing investigation will not disrupt its operations and confirmed its cooperation with the authorities.
Property Investigation Commission seeks asset details from public officials
The Property Investigation Commission has initiated an investigation into the assets of public officials who served between fiscal year 2005/06 and April 13, 2026. In a notice issued on Thursday, the commission directed all current and former high-ranking officials — including Prime Ministers, Ministers, judges, army and police officers, and heads of public institutions — to submit their property details within 30 days. The inquiry covers movable and immovable assets, bank deposits, shareholdings, and foreign investments held either personally or through family members. The commission warned that legal action would be taken against those failing to provide accurate or timely information. Officials stated that the investigation aims to verify sources of income and strengthen transparency and accountability in public office.
World Bank pledges support for Nepal’s education sector
The World Bank has reaffirmed its commitment to supporting educational development in Nepal. During a meeting held on Thursday at the Ministry of Education, Science and Technology, World Bank Country Director David Sislen held discussions with Education Minister Sasmit Pokhrel regarding education sector reforms, infrastructure development, and technology-based learning systems. The World Bank expressed interest in expanding investment and cooperation, particularly in the development of schools and educational infrastructure. According to the ministry, discussions also focused on strengthening long-term educational reforms and improving access to quality education. Minister Pokhrel highlighted the government’s priorities, including educational infrastructure expansion, strengthening foundational learning, and advancing digitization and technology integration in education.
Nepal Consulate in Dallas collects USD 530,000 in seven months
The Consulate General of Nepal in Dallas has collected USD 530,000 in revenue within seven months of operation. Established in Texas on July 8, 2025, and operational since September, the consulate has been serving the Nepali diaspora across multiple American states. According to Deputy Consul General Dhana Kumari Joshi, the mission processed 3,081 passport applications and issued 2,648 passports during the review period. It also issued 82 travel permits, authenticated 36 documents, and facilitated services such as Non-Resident Nepali (NRN) cards and visa support. The consulate additionally assists in the repatriation of deceased Nepali nationals and organizes consular service camps. Its jurisdiction covers eight US states, including Texas, Oklahoma, Arkansas, Louisiana, New Mexico, Colorado, Kansas, and Mississippi.
Three airports in Karnali remain unused despite heavy investment
Three airports in Karnali Province — Suntharali Airport in Kalikot, Masinechaur Airport in Dolpa, and Chaurjahari Airport in Rukum Paschim — have remained non-operational despite significant public investment. Suntharali Airport, which took nearly four decades to complete, has only hosted test flights since its inauguration on February 26, 2024. Chaurjahari Airport has remained closed for the past eight years despite blacktopping work worth Rs 55.9 million completed in 2015, while Masinechaur Airport, finished in 2011, has yet to conduct even a test flight. Likewise, provincial government plans to provide air service subsidies and fuel incentives — for which Rs 12 million had been allocated — have not been implemented, leaving many remote communities without dependable air connectivity.
Selection process begins for vacant Electricity Regulatory Commission posts
The Ministry of Energy, Water Resources and Irrigation has launched an open competition process to fill vacant positions at the Electricity Regulatory Commission. The vacancies emerged after previous board members were relieved of their responsibilities following an ordinance concerning the removal of public officials. A three-member recommendation committee led by the ministry secretary has been formed to oversee the appointment process for a new chairperson and four commission members. The ministry is expected to issue a 15-day public notice inviting applications from qualified candidates. Officials stated that the move is intended to restore the commission’s operational capacity, which plays a key role in regulating Nepal’s energy sector and electricity tariff structures.
Nepal Telecom reports 9.85 percent profit growth
Nepal Telecom posted a net profit of Rs 6.272 billion during the first nine months of the current fiscal year, reflecting a 9.85 percent increase compared to the same period last year. The company’s total operating income rose by 2.42 percent to Rs 25.92 billion, driven largely by an increase of Rs 577.4 million in revenue from GSM mobile services. As a result, earnings per share (EPS) climbed by 9.9 percent to Rs 46.47. However, income earned from bank deposit interest declined by 20.57 percent, or Rs 56.6 million, due to lower market interest rates. The company credited its overall financial performance to effective expense control and reduced depreciation costs.
Nepal Consulate in Kolkata holds trade and investment dialogue
The Consulate General of Nepal in Kolkata organized a discussion programme on Tuesday aimed at promoting bilateral trade, transit, and investment cooperation between Nepal and India. The event focused on improving economic collaboration and strengthening transport and connectivity networks between the two countries. Representatives from the Syama Prasad Mookerjee Port, Kolkata Customs, and several freight associations discussed infrastructure improvements intended to facilitate smoother cargo movement to Nepal. Participants also raised concerns regarding customs coordination and transport management. Consulate officials pledged continued engagement and institutional support to address existing obstacles and simplify administrative procedures.
Koshi Province calls budget session for May 20
The government of Koshi Province has decided to convene its ninth budget session on May 20 at 3:00 PM in Biratnagar. A cabinet meeting held on Thursday also approved the forwarding of several new regulations to relevant committees, including the Statistics Regulation 2025 and the Koshi Province Planning Commission Formation Order 2026. The government additionally appointed a new member to the Provincial Planning Commission and assigned a newly transferred Joint Secretary as Secretary at the Chief Minister’s Office. The upcoming assembly session is expected to focus primarily on the provincial budget and annual development programmes for the next fiscal year.
Indian pilgrims begin Kailash Mansarovar journey via Humla
The arrival of Indian pilgrims for this year’s Kailash Mansarovar pilgrimage began on Wednesday, with the first group of 25 travelers reaching Simkot in Humla by air from Nepalgunj. The pilgrims will continue their journey through the Simkot–Hilsa route before entering China for the Kailash Mansarovar Yatra. Helicopter services between Simkot and Hilsa have also resumed for the season. Local tourism entrepreneurs expect the pilgrimage season to boost business for hotels, transport operators, farmers, and porters in Humla. Tourism operators say bookings have already been confirmed for more than 15,000 Indian pilgrims this year. Last year, about 6,500 Indian pilgrims traveled to Kailash Mansarovar through the Hilsa route after China reopened access following the COVID-19 pandemic.
Mount Manaslu marks 70th anniversary of first ascent
Special programs were organized in Gorkha and Pokhara to commemorate the 70th anniversary of the first successful ascent of Mount Manaslu, the world’s eighth-highest mountain and Nepal’s seventh-highest peak, standing at 8,163 meters. Since the historic summit on May 9, 1956, achieved by a Japanese climber and an Indian climber, a total of 3,643 mountaineers have reached the top. The first successful ascent by Nepali climbers took place on April 22, 1973. Events marking the occasion included the unveiling of statues honoring the pioneer climbers in Chum Nubri Rural Municipality and the presentation of certificates to their descendants. The Nepal Mountaineering Association also introduced a 3D image of the mountain in Pokhara to support alpine tourism promotion and improve record-keeping.
Nepalgunj Distribution Centre disconnects power to 5,500 defaulters
The Nepal Electricity Authority (NEA) Nepalgunj Distribution Centre cut electricity connections to around 5,500 customers who had not paid their bills over the past five months. The move was part of a campaign aimed at recovering overdue payments amounting to nearly Rs 63 million. After the disconnections, 4,500 customers cleared their outstanding dues, allowing the authority to recover Rs 50 million and restore their electricity services. Under existing legal provisions, customers must pay electricity bills within 60 days to avoid automatic penalties. The distribution center has also strengthened monitoring efforts against electricity theft and illegal hooking in an effort to improve supply reliability and reduce leakage across Banke district.
Valley Traffic Police fine 2,365 drivers, collect Rs 2.1 million in 24 hours
Over the past 24 hours, Kathmandu Valley Traffic Police penalized 2,365 drivers for different traffic violations, generating Rs 2.1 million in revenue for the national treasury. Among the recorded offenses, 88 drivers were fined for driving under the influence, 258 for unauthorized ride-sharing, 156 for violating traffic lights, and 174 for speeding. In addition, 123 drivers were penalized for lane discipline violations, 128 for honking in restricted areas, 124 for parking on sidewalks, and 163 for driving in one-way zones. The remaining 1,121 cases involved other traffic-related offenses. Authorities say monitoring and enforcement measures are being intensified to maintain road safety and discipline throughout the capital.
Global demand for electric vehicles rises amid record fuel prices
International media reports suggest that rising global oil prices, which have crossed USD 100 per barrel due to conflicts in West Asia, are driving increased demand for electric and hybrid vehicles worldwide. In April 2026, global sales of battery-electric and plug-in hybrid vehicles increased by 6 percent, reaching 1.6 million units. In the United States, hybrid vehicle sales surged by 37 percent as gasoline prices hit a four-year high. Europe recorded a one-third increase in fully electric vehicle sales during the first quarter of 2026. Meanwhile, China saw sales of electric heavy trucks jump by 45 percent compared to March 2025, reaching 44,000 units. Analysts believe the ongoing energy crisis is accelerating the global shift toward sustainable transportation.
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