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 developments reflect a combination of improving macroeconomic fundamentals and persistent structural challenges. The financial sector continues to benefit from strong liquidity, driven by record remittance inflows of more than Rs 2 trillion, a 10.3 percent rise in bank deposits, and insurance sector assets surpassing Rs 1 trillion.
These trends indicate growing public confidence in formal financial institutions and provide a solid foundation for investment and economic activity. The stock market also showed resilience, with NEPSE recovering modestly and trading turnover exceeding Rs 8 billion, although investor protests demanding regulatory intervention highlight ongoing concerns about market governance and confidence.
Inflation has remained relatively moderate on average, helping preserve purchasing power despite higher prices for several food items, while declining gold and silver prices suggest easing pressure in commodity markets. Meanwhile, progress in hydropower projects, industrial revival efforts at Hetauda Textile Industry, and community infrastructure initiatives demonstrates continued investment in productive sectors and public services.
However, low capital expenditure in Chitwan, criticism over Karnali’s tourism budget allocation, and the impact of illegal salt imports expose weaknesses in public spending efficiency, policy implementation, and border enforcement. Sustaining economic momentum will depend on improving governance, accelerating development spending, strengthening regulatory institutions, and ensuring that financial gains are translated into broader productive investment and inclusive long-term growth.
NEPSE edges up 6.11 points as turnover surpasses Rs 8 billion
The Nepal Stock Exchange (NEPSE) climbed 6.11 points, or 0.23 percent, on Tuesday to close at 2,576.29, recovering some of the losses recorded on Monday. The Sensitive Index also advanced by 0.79 points to settle at 451.34. Market activity strengthened, with 18.29 million shares of 383 listed companies changing hands through 53,854 transactions, resulting in a turnover of Rs 8.417 billion, compared to Rs 7.468 billion in the previous session. Share prices of 164 companies increased, 101 declined, and 10 remained unchanged. Kamana Sewa Bikas Bank Debenture posted the highest gain of 10.22 percent, while Samudayik Laghubitta Bittiya Sanstha recorded the steepest decline, losing 8.10 percent.
Gold falls to Rs 284,000 per tola, silver slips to Rs 4,360
Gold and silver prices declined in the domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 1,200 per tola to Rs 284,000, down from Rs 285,200 per tola on Monday. Silver also became cheaper, falling by Rs 15 per tola to Rs 4,360, compared with Rs 4,375 per tola in the previous trading session.
Average inflation reaches 2.89 percent in first 11 months
Average inflation during the first 11 months of fiscal year 2025/26 stood at 2.89 percent, according to Nepal Rastra Bank’s Current Macro-Economic and Financial Situation Report released on Monday. The report showed that year-on-year consumer price inflation between mid-May and mid-June 2026 reached 5.22 percent, compared to 2.72 percent during the same period a year earlier. Inflation in the food and beverage category stood at 4.95 percent, while the non-food and services category recorded 5.37 percent. Within the food category, fruit prices rose by 17.40 percent, ghee and edible oil by 15.10 percent, fish and meat by 5.26 percent, and vegetables by 4.14 percent. Meanwhile, prices of pulses and legumes declined by 0.93 percent compared to the previous year.
Remittance inflows exceed Rs 2 trillion in 11 months
Remittance inflows reached a record Rs 2.12 trillion during the first 11 months of fiscal year 2025/26, reflecting a 38.2 percent increase from the same period last year, according to Nepal Rastra Bank. In US dollar terms, remittances totaled USD 14.59 billion, representing a 29.6 percent year-on-year increase. During the corresponding period of the previous fiscal year, remittance growth in dollar terms had stood at 12.8 percent. The report also noted that Rs 203.89 billion entered the country as remittances between May 15 and June 14, compared to Rs 176.32 billion during the same period in fiscal year 2024/25.
Commercial bank deposits rise by more than 10 percent
Deposits held by commercial banks and financial institutions expanded by 10.3 percent during the current fiscal year. According to Nepal Rastra Bank (NRB), total deposits increased by Rs 748.62 billion, pushing the banking sector’s overall deposit base to Rs 8.012 trillion by mid-June. Savings deposits accounted for the largest share at 46.6 percent, followed by fixed deposits at 37.3 percent. Institutional deposits represented 33.7 percent of the total.
Investors warn of brokerage shutdown over delayed regulatory action
Retail investors staged a protest outside the Securities Board of Nepal headquarters on Tuesday, urging authorities to introduce an immediate package to support the stock market. Security personnel were deployed in large numbers to manage the demonstration, while senior officials held emergency discussions at the Ministry of Finance. The protesting investors warned that all 94 brokerage firms across the country would be shut down if a long-term market stabilization framework was not announced within 24 hours. In response, regulators assured demonstrators that a comprehensive policy package would be prepared by the end of the day.
Finance Ministry appoints revenue advisor
The Ministry of Finance officially appointed a senior revenue advisor on Monday to support its revenue management efforts. The advisor, a resident of Syangja with more than 15 years of experience in public accounting, auditing, and corporate advisory services, will serve in an honorary capacity. The ministry said the role will focus on improving tax collection systems and coordinating with relevant departments to help achieve the government’s revenue target of Rs 1.6 trillion.
Major share of Karnali tourism budget allocated to shrine construction
Public expenditure monitors in Birendranagar Municipality reported that nearly 80 percent of Karnali Province’s tourism development budget was directed toward the construction of local shrines and religious structures. Out of the province’s total budget of Rs 35.398 billion, only Rs 538.6 million was allocated to tourism and hospitality in fiscal year 2025/26. Reviews found that the funding was spread across numerous small-scale projects, including 20 minor shrines in Salyan and a Rs 3 billion building project for a local bar association.
Illegal salt imports affect local sales in Jhapa
Illegal imports of low-quality Indian salt have affected domestic salt sales in Mechinagar Municipality, Jhapa. Data from the Salt Trading Corporation Limited branch in Birtamod showed sales declined from 45,734 quintals in the previous period to 41,906 quintals as of July 9. Health authorities warned that many smuggled non-iodized salt products fail to meet the mandatory iodine content of 15 ppm, increasing the risk of thyroid-related health problems.
Nepal-India food and beverage forum concludes
Kathmandu Metropolitan City hosted the Nepal-India Food and Beverage Forum 2026, bringing together stakeholders to strengthen cross-border supply chains and expand agricultural investment between the two countries. Organized by the Nepal-India Chamber of Commerce and Industry in collaboration with the House of Rajkarnikar, the event also served as a precursor to the International Food Exhibition scheduled for September 11–13, 2026, in Varanasi, India. Participants from the hospitality, agribusiness, and logistics sectors discussed trade regulations and signed agreements aimed at promoting exports of processed organic food products.
Insurance sector assets surpass Rs 1 trillion as premiums reach Rs 223 billion
The Nepal Insurance Authority announced that the insurance industry’s total assets have exceeded Rs 1 trillion. During a briefing to the Parliamentary Finance Committee on Tuesday, the authority said that 37 licensed insurance companies had collected net premiums totaling Rs 223 billion by June 14. The sector now contributes 3.69 percent to Nepal’s gross domestic product, exceeding the global average. The industry also reported 16.7 million active insurance policies and provides employment to around 13,000 people.
Military engineers complete 20,000-liter water reservoir in Nuwakot
A long-standing drinking water shortage in Nuwakot has been addressed with the completion of a 20,000-liter water reservoir. The project was fully funded and constructed by technical personnel from the Nepal Army’s Singh Shardul Battalion, stationed at Aandhikhola Barracks, at a cost of Rs 650,000. The reservoir was officially handed over to local authorities on Monday and is expected to provide a reliable supply of clean drinking water to around 80 households, while also serving the needs of hundreds of pilgrims who visit the Kalabhairav Temple each year.
22 MW Seti Khola Hydropower Project begins commercial operation
The 22 MW Seti Khola Hydropower Project has officially entered commercial operation. Built along the Seti River over four and a half years, the project required an investment of Rs 5.05 billion, with financing from the Dolma Impact Fund. Water is diverted through a 3,106-meter headrace tunnel to two 11 MW generating units. The project began supplying electricity to the national grid through the Lekhnath-Damauli 132 kV transmission line during trial synchronization on June 29.
Gumukhola Small Hydropower Project enters testing phase
Dry testing has begun at the 990 kW Gumukhola Small Hydropower Project in Dolakha. Developed by Gumukhola Bhakure Hydroelectric Private Limited, the project has successfully completed wet testing of its headworks, intake system, and 2,000-meter penstock. Construction costs increased from the initially estimated Rs 210 million to Rs 250 million. Once commercial operation begins, the electricity generated will be connected to the Nepal Electricity Authority substation in Singati, located about four kilometers from the project site.
Chitwan spends less than 60 percent of capital budget
Chitwan District recorded a capital expenditure rate of 58.41 percent for development projects during the review period. According to the District Treasury Comptroller Office, only Rs 5.969 billion was spent out of the total capital budget allocation of Rs 10.218 billion. Officials attributed the low spending to contractors submitting unrealistically low bids and later failing to complete projects. In contrast, recurrent expenditure remained strong, reaching Rs 13.503 billion.
Reliance Spinning Mills’ share lock-in period ends on July 17
Reliance Spinning Mills Limited has announced that the mandatory lock-in period for its institutionally allotted shares will expire on July 17. In accordance with Rule 25(C) of the Securities Registration and Issuance Regulation, 2016, the company had locked 770,640 ordinary shares, representing 40 percent of its public offering of 1,926,600 shares, for institutional investors. The six-month restriction will end following the company’s listing on the Nepal Stock Exchange on February 13.
Construction begins on Karnali high altitude training center
Construction has officially started on the Karnali High Altitude Training Center, the country’s first dedicated high-altitude sports training facility, in Patarasi Rural Municipality at an elevation of 2,850 meters. According to the project’s detailed report prepared by Rara Engineering Consultancy, developing the full complex of 21 sports facilities will require an estimated investment of Rs 1.008 billion. The National Sports Council awarded an initial contract worth Rs 10.2 million on June 29 to begin earthworks and site preparation.
Preparations underway for trial production at Hetauda Textile Industry
Efforts to revive the Hetauda Textile Industry have progressed after a government-appointed task force submitted a plan to begin trial production. Supported by an initial government allocation of Rs 3.3 million, military engineering teams have completed factory cleanup and basic mechanical repairs. The roadmap aims to begin pilot textile production within the next two months. Meanwhile, the Ministry of Physical Infrastructure has proposed an additional Rs 5 million for structural repairs to the factory buildings.
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