KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments outlined in the text present a mixed but cautionary picture of Nepal’s economic and institutional landscape, where macro-level stability contrasts with weak public finance performance and uneven execution of development initiatives. The midyear budget review highlights structural challenges in revenue mobilization and capital spending, signaling risks to growth and infrastructure delivery despite stable liquidity and capital adequacy in the banking sector.
While private and institutional activity—reflected in IPO preparations, bank AGMs, dividend declarations, and partnerships on cybersecurity and digital entrepreneurship—suggests resilience and forward momentum, repeated project failures such as the Dharan waste-to-energy plant underscore persistent gaps in implementation capacity and governance.
At the same time, rising tourism inflows, growing urban revenue projections, and regional startup collaboration point to emerging opportunities, even as concerns over low tax contributions by foreign airlines reveal unresolved policy and regulatory inefficiencies. Overall, the picture is one of cautious economic stability constrained by weak fiscal execution and the need for stronger institutional coordination to translate potential into sustained growth.
Midyear budget review shows sluggish revenue and spending
The government’s revenue collection and expenditure have remained weak in the midyear assessment of the current fiscal year’s national budget. Data released by the Financial Comptroller General Office (FCGO) show that by mid-January, revenue collection stood at just 38 percent of the annual target, while overall spending reached 35 percent. For the current fiscal year, the government had unveiled a budget of Rs 1.964 trillion. By the end of Poush (mid-January), total expenditure amounted to Rs 690.21 billion, or 35.14 percent of the target. Spending under the recurrent (current) expenditure heading reached 41.25 percent, with Rs 487.14 billion spent out of the allocated Rs 1.181 trillion. Capital expenditure remained particularly weak at only 12.12 percent of the target. Similarly, under financial management, Rs 153.64 billion has been spent out of the allocated Rs 375.24 billion so far.
Gold and silver prices edge lower in domestic market
Gold prices in the domestic market declined slightly on Thursday, dropping by Rs 1,500 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Associations, gold was traded at Rs 276,500 per tola, down from Rs 278,000 on Wednesday. Silver prices also fell, decreasing by Rs 170 per tola to settle at Rs 5,485.
KMC projects income and spending for next three fiscal years
Kathmandu Metropolitan City (KMC) has projected its income and expenditure for the next three fiscal years, estimating gradual growth in revenue. The projections were made during a meeting of the Revenue Advisory Committee chaired by Deputy Mayor Sunita Dangol. According to the estimates, KMC expects to generate Rs 15.1 billion in revenue in FY 2083/84 (2026/27), Rs 15.5 billion in FY 2084/85 (2027/28), and Rs 15.9 billion in FY 2085/86 (2028/29). The metropolis recorded an actual income of Rs 10.74 billion in FY 2081/82. For the current fiscal year, it has set a revenue target of Rs 15.11 billion, of which Rs 5.69 billion has been collected to date.
Nepal Bankers’ Association partners with VISA on cybersecurity
The Nepal Bankers’ Association (NBA) has signed a collaboration agreement with global digital payments company VISA to enhance cybersecurity awareness and capacity within Nepal’s financial sector. Under the partnership, NBA and VISA will conduct cybersecurity-focused programs across all seven provinces, along with stakeholder interaction sessions involving regulators, financial institutions, and related agencies. The initiative also includes specialized engagements between VISA experts and bank officials, reinforcing long-standing cooperation to strengthen Nepal’s digital payment ecosystem.
Dharan waste-to-energy project shuts down shortly after launch
The waste-to-energy project launched in Dharan to process municipal waste into gas and fertilizer has shut down shortly after becoming operational. The project was implemented following a tripartite agreement signed eight years ago between Dharan Sub-Metropolitan City, the Alternative Energy Promotion Center (AEPC), and Venture Waste to Energy Pvt Ltd. The facility was built in Dharan–6, Panbari, on 22 katthas of land with an investment of Rs 240 million. The project also received subsidies of around Rs 70 million from AEPC and the World Bank. Despite the investment and long preparation period, the plant has failed to continue operations.
Nepal–India startup conclave promotes cross-border innovation
The Nepal–India Startup Conclave: Empowering Nepal’s Startup Frontier was held in Chennai, bringing together Nepali startups and Indian industry leaders to encourage cross-border collaboration. Organized by Play Learn Foundation | Indian Girls Code in partnership with Meritus.AI, the conclave offered Nepali entrepreneurs mentorship, strategic guidance, and exposure to global markets. Participants represented sectors such as technology, education, healthcare, sustainability, manufacturing, and digital services. CavinKare Chairman and Managing Director Chinnikrishnan Ranganathan delivered the keynote address, highlighting resilience and adaptability as key factors for startup success.
Agreement reached to relocate households along Madan Bhandari Highway
Authorities have reached an agreement to remove houses in the Bhaluwa area of Kerabari Rural Municipality along the Morang section of the Madan Bhandari Highway. The highway, a National Pride Project intended as an alternative to the East–West Highway, has faced repeated delays. Construction has been hindered in various sections due to forest clearance issues, roadside settlements, and land ownership complications. In Morang, progress was expected after trees were felled across 20.94 hectares of forest land along a 9.42-kilometre stretch, but housing relocation remained a major obstacle until now.
AMDU appoints Laxmi Sunrise Capital as IPO manager
Annapurna Machha Dana Udyog Limited (AMDU) has appointed Laxmi Sunrise Capital Limited as the issue and sales manager for its upcoming Initial Public Offering (IPO). The move marks a key step toward the company’s planned public listing and expansion. The agreement was signed by AMDU CEO Yash Puri and Laxmi Sunrise Capital CEO Bijay Lal Shrestha. AMDU directors and senior officials were present at the signing ceremony. The partnership is expected to support AMDU throughout the IPO process and its entry into Nepal’s capital market.
Himalayan Bank concludes 33rd annual general meeting
Himalayan Bank Limited held its 33rd Annual General Meeting (AGM) on Tuesday under the chairmanship of Board Chairman Prachanda Bahadur Shrestha. The meeting approved the consolidated financial statements of the bank and its subsidiaries for fiscal year 2081/82 (2024/25). Presenting the board’s report, Chairman Shrestha highlighted the bank’s overall financial performance. The AGM also reappointed CA Ranjeev & Associates as the statutory auditor for fiscal year 2082/83 (2025/26) in accordance with the Companies Act, 2063. Shareholders further authorized the board to proceed with restructuring measures aligned with the revised capital structure as directed by the regulator.
US Embassy Nepal launches Creator’s Mela 2026
The US Embassy in Nepal has announced the launch of Creator’s Mela 2026: Vision to Venture, an initiative aimed at strengthening Nepal’s creative and digital economy. The multi-city program will be held in Chitwan on January 17, Nepalgunj on January 24, and conclude with a two-day summit in Kathmandu on January 30–31, 2026. This year’s theme focuses on helping content creators turn their work into sustainable businesses through skills development in monetization, digital entrepreneurship, and market access. US Embassy Public Affairs Chief Mike Harker said the initiative reflects the United States’ commitment to supporting entrepreneurship, job creation, and global opportunities for Nepali creators.
Banking sector remains stable with moderate credit growth
Nepal’s banking sector has maintained overall stability in liquidity, credit expansion, and capital adequacy, according to mid-December 2025 data released by Nepal Rastra Bank. The overall credit-to-deposit (CD) ratio stood at 74.12 percent, indicating balanced growth. Class ‘A’ commercial banks recorded a CD ratio of 73.16 percent, while Class ‘B’ and Class ‘C’ institutions stood at 84.25 percent and 76.69 percent, respectively. The average cash reserve ratio across the system was 7.97 percent, and the statutory liquidity ratio remained comfortable at 23.13 percent. Government securities accounted for 14.34 percent of total deposits. Capital adequacy remained sound, with an overall capital adequacy ratio of 12.82 percent and a core capital ratio of 9.72 percent.
Creator’s Mela 2026 launched to turn digital creators into entrepreneurs
The U.S. Embassy in Nepal has announced the launch of Creator’s Mela 2026: Vision to Venture, a nationwide initiative designed to strengthen Nepal’s creative economy by helping digital creators build sustainable businesses. This year’s edition marks a shift from content creation toward entrepreneurship and business development. The program will begin in Chitwan on January 17, move to Nepalgunj on January 24, and conclude with a two-day summit in Kathmandu on January 30–31, 2026. By incorporating U.S. expertise in technology, monetization, and digital business models, the initiative aims to equip Nepali creators with practical tools to scale their work into long-term professional ventures.
Nepal Investment Mega Bank wraps up 39th AGM
Nepal Investment Mega Bank Limited successfully concluded its 39th Annual General Meeting on Wednesday at the Police Research Center in Kathmandu. Chaired by Chairman Prithvi Bahadur Pande, the meeting endorsed the bank’s annual report, auditor’s report, and audited financial statements for the previous fiscal year. For fiscal year 2081/82 (2024/25), the bank reported a net profit of Rs 4.33 billion. Deposits increased by Rs 69.48 billion to reach Rs 476 billion, while loans and advances grew by Rs 20.84 billion to Rs 339 billion. Operating income during the period stood at Rs 35.87 billion. By the end of the fiscal year, paid-up capital reached Rs 34.13 billion, with total shareholders’ equity at Rs 64.18 billion. The bank currently operates 271 branches, 259 ATMs, 65 extension counters, and 60 branchless banking units nationwide.
Nepal Telecom announces 30 percent cash dividend
Nepal Telecom has declared a cash dividend of 30 percent for its shareholders from profits earned in the last fiscal year. The decision was made during the company’s 18th Annual General Meeting held on Wednesday. Board Chairperson and Secretary at the Ministry of Information and Communications, Radhika Aryal, said that bonus shares could also be issued in the future to meet capital requirements following the implementation of the MEGA project. Nepal Telecom reported total revenue of around Rs 3.82 billion and a profit of Rs 600 million in the last fiscal year. The company plans to focus on improving data quality, affordability, and market expansion amid rising demand for data services.
Rasuwa emerges as growing tourism destination
More than 32,000 tourists visited Rasuwa district in the past six months, signaling its growing appeal as a tourism destination. According to Langtang National Park officials, a total of 32,671 domestic and international tourists visited the Gosainkunda and Langtang areas between Shrawan (mid-July 2025) and the end of Poush (mid-January 2026). The visitors included 5,884 foreign tourists and 26,787 domestic travelers. Authorities expect the total number to reach 50,000 by the end of the current fiscal year, up from around 44,000 in the previous year. Entry fees collected during the six-month period generated revenue of Rs 23.9 million. Local representatives said the rising tourist flow has benefited hotels, farmers, laborers, and communities across Gosainkunda, Langtang, and Syaphru.
Foreign airlines earn billions in Nepal but contribute limited taxes
As many as 27 foreign airline companies are currently operating international flights through Tribhuvan International Airport, generating business worth over Rs 150 billion annually. Data from the Civil Aviation Authority of Nepal (CAAN) show that in 2024, 26 foreign airlines earned a combined USD 1.14 billion, equivalent to Rs 153.82 billion, from operations in Nepal. Altogether, 30 airlines—27 foreign and three domestic—operate international flights connecting Nepal to 28 global destinations. Qatar Airways emerged as the top revenue earner, generating USD 368.82 million in 2024 from its Doha–Kathmandu route alone. Turkish Airlines ranked second, operating 206 flights between Istanbul and Kathmandu and earning Rs 15.38 billion from ticket sales. Despite their large earnings, concerns remain over the relatively low tax contributions made by foreign carriers operating in Nepal.
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