KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments point to a mixed but cautiously improving economic picture, marked by growing investor confidence, policy adjustments, and uneven public-sector performance. Rising gold and silver prices reflect continued demand for safe assets amid uncertainty, while a sharp increase in foreign investment commitments—particularly in small industries—signals strengthening private-sector confidence and potential job creation.
Financial-sector reforms, including faster upgrading of non-performing loans and dividend announcements by insurers, suggest efforts to improve liquidity and balance-sheet health, complemented by banks’ moves toward greater transparency and digitalization. However, weak budget execution in Madhesh Province highlights persistent challenges in public spending efficiency.
Meanwhile, infrastructure expansion, falling fuel prices, IPO activity, and initiatives promoting local products collectively indicate supportive conditions for economic activity, even as regional and global growth trends, such as Malaysia’s strong Q4 performance, provide a favorable external backdrop.
Gold and silver prices climb in domestic market
Gold and silver prices rose in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices increased by Rs 700 per tola to reach Rs 277,200 per tola. On Thursday, gold was traded at Rs 270,500 per tola. Silver prices also moved upward, gaining Rs 160 per tola to trade at Rs 5,645 per tola. The previous day, silver had reached a record high of Rs 5,655 per tola.
Foreign investment pledges exceed Rs 39 billion in six months
Foreign investment commitments have risen during the first half of the current fiscal year. Data from the Department of Industry show that pledges totaling Rs 39.23 billion were made across 475 industries between mid-July 2025 and mid-January 2026. During the same period last fiscal year, commitments stood at Rs 25.78 billion covering 354 industries. In the first half of the previous fiscal year, foreign investments were committed to 345 small-scale industries, five medium-scale industries, and four large-scale industries. By contrast, the current fiscal year’s first six months saw commitments in seven large industries, eight medium industries, and 460 small industries. The department noted that 36 small industries alone received commitments in the past month. These investments are expected to generate around 20,122 employment opportunities.
Citizens Investment Trust contributes Rs 5.1 million to reconstruction fund
The Citizens Investment Trust has donated Rs 5.1 million to the Physical Infrastructure Reconstruction Fund. Fund Chairperson Tulsi Prasad Ghimire formally handed over the cheque to Finance Minister Rameshore Khanal on Friday. According to the Ministry of Finance, the fund has now received a total contribution of Rs 147 million. The finance minister expressed appreciation to the Trust for its support on behalf of the government.
Non-performing loans can be upgraded after three months of regular payments
Loans classified as non-performing will now be eligible for reclassification as good loans after three months of consistent installment payments, provided all outstanding principal and interest dues are fully cleared. Nepal Rastra Bank introduced this provision through an amendment to its integrated directive on Friday. Previously, such loans had to remain under close monitoring for six months even after installments became regular. Central bank spokesperson and Executive Director Guru Prasad Poudel said that while the policy appears more flexible, it has also been tightened. He explained that loan classifications will not be upgraded unless arrears are fully settled, even if installments are paid on time.
Madhesh Province records low budget spending in first half of fiscal year
The Madhesh Province government has posted weak budget utilization during the first six months of the current fiscal year, with expenditure failing to reach even 10 percent of the total allocation. According to the Provincial Controller of Accounts Office, only 7.71 percent of the budget has been spent so far. Between mid-July 2025 and mid-January 2026, current expenditure amounted to Rs 3.62 billion, while capital spending reached Rs 3.553 billion. Out of the total budget, Rs 2 billion has been spent on recurrent expenses, whereas capital expenditure stands at just Rs 1 billion. Accountant Manoj Jha said capital spending accounts for only 3.36 percent of the total budget, while current expenditure represents 15.58 percent.
Bhujung Hydropower to open IPO for general public from January 26
Bhujung Hydropower Limited is set to issue shares to the general public starting January 26. After completing the first phase of IPO distribution to project-affected locals and Nepalis working abroad, the company is moving into its second phase. The company had approval to issue two million shares—20 percent of its Rs 1 billion issued capital—worth Rs 200 million. Of this, one million shares were allocated to local residents and 100,000 shares to migrant workers. In the upcoming phase, 830,000 shares will be offered to the public, while 20,000 shares are reserved for employees and 50,000 for mutual funds. Investors must apply for a minimum of 10 shares and can apply for up to 50,000 shares.
Neco Insurance announces 15.78 percent dividend
Neco Insurance has declared dividends from its earnings of the previous fiscal year. A board meeting held on January 14 approved a total dividend of 15.78 percent, comprising 12.78 percent bonus shares and a 3 percent cash dividend to cover tax obligations. The dividend distribution will take place after receiving approval from the Nepal Insurance Authority and endorsement at the company’s forthcoming annual general meeting.
NIC Asia Bank launches online portal for auctioned assets
NIC Asia Bank Limited has introduced a new digital portal to share information on auctioned banking, non-banking, and collateralized properties. The initiative aims to enhance transparency and simplify access for interested buyers. Customers can now view property details either by scanning QR codes published in auction notices or by visiting the bank’s dedicated portal. The platform provides comprehensive information, including lot numbers, land area, photographs, and maps. Integration with Google Maps allows users to easily identify property locations, enabling them to review assets remotely before making decisions.
Malaysia’s economy expands 5.7 percent in fourth quarter of 2025
Malaysia’s economy grew by 5.7 percent in the fourth quarter of 2025, up from 5.2 percent in the previous quarter, according to advance estimates released by the Department of Statistics Malaysia on Friday. The Department said this was the strongest quarterly growth since the second quarter of 2024. Overall, Malaysia’s economy expanded by 4.9 percent in 2025, close to the 5.1 percent growth recorded in 2024. Growth in the final quarter was largely driven by a 5.4 percent expansion in the services sector, particularly in wholesale and retail trade, transportation and storage, and food and accommodation services. Manufacturing output also rose by 6 percent, supported by electrical and electronic products, as well as food and oil processing.
Global IME Bank hosts 50th Global Haat Bazaar to promote local products
Global IME Bank organized the 50th edition of its weekly ‘Global Haat Bazaar’ on Friday, aiming to support micro, small, and medium enterprises and expand markets for locally produced goods. The initiative has long served as a platform for local entrepreneurs to sell indigenous and sustainable products directly to consumers. Marking the milestone, Chief Executive Officer Surendra Raj Regmi said the journey to the 50th edition had been both rewarding and inspiring. He emphasized that consistent participation and enthusiasm have made the bazaar an effective tool for strengthening the local economy.
Garima Development Bank unveils new logo and seal
Garima Development Bank has officially introduced a new logo and seal as part of efforts to modernize and strengthen its institutional identity. The updated branding came into effect on Thursday, January 15. According to the bank, the proposal was approved at its 19th annual general meeting held on November 13, 2025. After completing all legal formalities, the new logo and seal were implemented, reflecting the bank’s contemporary outlook, distinctive identity, and commitment to reliable banking services.
Arch bridge construction begins over Modi River on Mid-Hill Highway
Construction has begun on an arch bridge over the Modi River in Parbat district under the Pushpalal Mid-Hill Highway Project. The work started three years after blacktopping of the Parbat section of the highway was completed. The bridge will connect Modi Rural Municipality–2 with Patichaur–6 (Dimuwa). Project engineer Kalpana Mishra said the structure will be 62 meters long and 11 meters wide, with a budget allocation of Rs 75 million. Bridges under the project have already been completed over the Tamadi River in Parbat and the Kathe River in Baglung, while construction is ongoing over the Sundare and Modi rivers. The Modi River bridge is scheduled for completion by mid-September.
Nepal Oil Corporation cuts fuel prices
Nepal Oil Corporation has revised petroleum prices downward, with the new rates taking effect from Friday. Petrol prices have been reduced by Rs 3 per liter, while diesel and kerosene prices have been lowered by Re 1 per liter each. Under the revised rates, petrol now costs Rs 156 per liter, while diesel and kerosene are priced at Rs 136 per liter. The price adjustment was made following new purchase rates received from the Indian Oil Corporation on January 15, 2026.
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