KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy presents a mixed picture, with weaker market sentiment reflected in the decline of the NEPSE index and lower trading turnover, while rising gold prices suggest continued investor preference for safe-haven assets.
At the same time, positive structural indicators emerged through provincial budget announcements exceeding Rs 291 billion, Rs 47.6 billion in approved foreign investment commitments, stronger customs revenue collection, and the release of pending health insurance claims, all of which could support economic activity in the coming months.
However, challenges remain, including fertilizer shortages affecting agricultural productivity, funding constraints delaying local infrastructure projects, and operational difficulties faced by contractors. Government efforts to strengthen disaster preparedness, regulate natural resource extraction, improve road safety, expand educational scholarships, and combat cybercrime indicate a broader focus on governance and public service delivery.
Overall, the developments point to an economy balancing growth-oriented investments and institutional reforms against persistent implementation bottlenecks and sector-specific pressures.
NEPSE slips 6.31 points as turnover falls to Rs 4.04 billion
The Nepal Stock Exchange (NEPSE) dropped by 6.31 points on Tuesday to close at 2,705.45, representing a decline of 0.23 percent from the previous session. Daily turnover also decreased, reaching Rs 4.04 billion compared to Rs 4.41 billion on Monday. A total of 10.7 million shares from 355 companies changed hands through 48,116 transactions. Share prices rose for 80 companies, declined for 177, and remained unchanged for 15. Among the 13 sectoral indices, only the Mutual Fund and Trading sectors recorded gains, while the remaining sectors ended in negative territory. The Sensitive Index also fell by 1.48 points to settle at 464.64.
Gold rises to Rs 298,500 per tola, silver declines
Gold prices edged higher in the domestic market on Tuesday. The Federation of Nepal Gold and Silver Dealers’ Association reported that the price of gold increased by Rs 300 per tola (11.66 grams), reaching Rs 298,500 per tola. On Monday, the precious metal was traded at Rs 298,200 per tola. In contrast, silver prices fell by Rs 25 per tola and are now fixed at Rs 4,990 per tola, down from Rs 5,015 per tola recorded a day earlier.
Seven provinces unveil combined budgets exceeding Rs 291 billion
All seven provincial governments presented their budgets for the fiscal year 2026/27 on Asar 1, with a combined allocation surpassing Rs 291 billion. Bagmati Province announced the largest budget at Rs 66.93 billion, followed by Madhesh Province with Rs 41.13 billion and Koshi Province with Rs 40.44 billion. Sudurpaschim Province allocated Rs 37.70 billion, while Lumbini Province and Karnali Province proposed budgets of Rs 37.38 billion and Rs 35.39 billion respectively. Gandaki Province introduced the smallest budget among the provinces, totaling Rs 32.99 billion.
Department approves Rs 47.616 billion in foreign investment commitments
The Department of Industry approved foreign direct investment (FDI) commitments worth Rs 47.616 billion during the first 11 months of the current fiscal year through the end of Jestha. Of the total, Rs 7.716 billion was approved through the automatic route, while Rs 39.9 billion came via the regular approval process, covering 914 projects. Agriculture and forestry attracted the largest share at Rs 22.088 billion, followed by tourism with Rs 12.997 billion and the service sector with Rs 4.59 billion. The approved projects are expected to generate approximately 25,450 jobs.
Health Insurance Board begins settlement of pending claims
The Health Insurance Board has initiated the process of releasing Rs 911.8 million in outstanding insurance claims to 202 listed healthcare institutions. The payment follows government allocations managed through the Ministry of Health and Food Cleanliness to settle medical claims and support treatment programs for low-income citizens. Government records indicate that Rs 1.032 billion was disbursed on May 27, followed by Rs 321.3 million on June 4 and an additional Rs 273.7 million on June 10 to improve access to healthcare services.
Medical Education Commission endorses Scholarship Grant Procedure 2026
The Medical Education Commission has approved the Scholarship Grant Procedure, 2026, paving the way for grants to institutions that provide free scholarships in undergraduate, postgraduate, DM, and MCh programs. The decision was taken during a meeting chaired by Prime Minister Balendra Shah (Balen) at the Office of the Prime Minister and Council of Ministers on Monday, after receiving approval from both the Ministry of Education and Sports and the Ministry of Finance within 24 hours. The framework addresses a legal vacuum created after previous guidelines became invalid under the Legislation Act, 2025, and is supported by amendments to the National Medical Education Act, 2019. The meeting was co-chaired by Health and Food Safety Minister Nisha Mehta and attended by senior commission officials, including Vice-Chair Prof. Dr. Anjani Kumar Jha.
Nepal Oil Corporation keeps fuel prices unchanged
Despite continued fluctuations in global energy markets, the Nepal Oil Corporation has decided to retain existing retail prices for petroleum products. The decision was endorsed during a board meeting held on June 15 and took effect from 12:01 a.m. on Monday. Under the current pricing structure, petrol costs Rs 214.50 per litre in the first category, Rs 216 in the second category, and Rs 217 in the third category. Diesel and kerosene prices remain fixed at Rs 222.50, Rs 224, and Rs 225 per litre across the respective categories, with the Kathmandu Valley falling under the third category.
Stronger customs enforcement boosts revenue at Nepalgunj office
The Nepalgunj Customs Office has reported improved revenue collection following stricter implementation of customs duties on cross-border goods valued above Rs 100. As a result, the office collected Rs 1.933 billion between mid-February and mid-March, Rs 2.142 billion from mid-March to mid-April, and Rs 1.842 billion from mid-April to mid-May. Over the first ten months of the fiscal year, total revenue reached Rs 16.739 billion, achieving 68.2 percent of the annual target of Rs 24.545 billion.
FCAN submits four-point memorandum to Minister Sunil Lamsal
The Federation of Contractors Associations Nepal (FCAN) presented a four-point memorandum to Infrastructure Development Minister Sunil Lamsal, seeking solutions to ongoing issues affecting the construction sector. The demands include immediate price adjustments for projects impacted by inflation, automatic extensions for delayed contracts, practical management of problematic projects without blacklisting contractors, and the withdrawal of directives considered impractical by the federation. During discussions, Minister Lamsal said the government is aware of the sector’s concerns and is working on long-term, practical measures to support infrastructure development.
Detained BYD electric vehicles in Mustang cleared for release
The Armed Police Force (APF) has released 775 BYD electric vehicles that had been held in Mustang for two weeks over concerns regarding import procedures. The move followed a preliminary investigation report by a Ministry of Finance committee, which found no irregularities in the procurement process carried out by importer Simon Inc. Acting on instructions from central authorities, the APF released the vehicles on Sunday evening, allowing customs-cleared units to proceed to their destinations while the remaining vehicles complete the required documentation.
Cyber Bureau issues warning over World Cup-related banking scams
The Cyber Bureau of Nepal Police has alerted the public about active cybercriminal groups targeting mobile banking users during the 2026 World Cup. Fraudsters are reportedly circulating deceptive social media advertisements offering free match-streaming links, which encourage users to download malicious Android Application Package (APK) files. Once installed and granted permissions, these files can provide hackers with access to users’ devices and linked bank accounts. Authorities have advised the public to avoid downloading suspicious file types such as .apk, .exe, .bat, and .sh, and to report incidents through the official hotline 9851286772 or the bureau’s verified email address.
DAP fertilizer shortage concerns paddy farmers in Kanchanpur
Farmers in Kanchanpur are facing a shortage of DAP (diammonium phosphate) fertilizer as the paddy planting season gets underway, raising concerns about timely access to essential agricultural inputs. According to the local branch of the Krishi Samagri Company, cooperatives are distributing available stocks, but supplies remain insufficient to meet demand. This season, the office has supplied 450 metric tons of DAP and 500 metric tons of urea. DAP is being sold at Rs 2,394 per bag, while urea costs Rs 944 per bag. Officials estimate the district experiences an annual fertilizer deficit of around 400 metric tons, prompting some farmers to source fertilizer from across the border in India.
Valley traffic police fine more than 2,000 motorists in 24 hours
The Kathmandu Valley Traffic Police Office took action against 2,299 motorists during a 24-hour enforcement campaign, collecting over Rs 2.1 million in revenue through fines. Violations included 95 cases of drink-driving, 99 instances of unauthorized ride-sharing services, 129 traffic signal breaches, and 147 speeding offences. Authorities also penalized 108 drivers for lane discipline violations, 115 for unnecessary horn use in restricted areas, 87 for parking on sidewalks, and 98 for driving against one-way traffic regulations. An additional 1,421 motorists were booked for various other traffic-related offences across the Valley.
Banke local governments establish disaster management funds
All eight local governments in Banke have set up Disaster Management Funds and introduced policies aimed at minimizing disaster risks and enhancing emergency preparedness. Nepalgunj Sub-metropolitan City allocated Rs 12 million to the fund, while Kohalpur Municipality contributed Rs 1.3 million. Baijanath Rural Municipality deposited Rs 8.1 million, Janaki Rural Municipality Rs 1.2 million, Duduwa Rural Municipality Rs 1 million, Rapti Sonari Rural Municipality Rs 273,000, and Narainapur Rural Municipality Rs 500,000. Officials said the funds were created in response to increasing threats from natural disasters such as floods and fires, particularly in vulnerable areas like Narainapur. Emergency resources, including 19 helipads, 12 rubber boats, and other rescue equipment, have also been readied across the district.
Funding shortfall leaves 28 projects unfinished in Biruwa
Biruwa Rural Municipality in Syangja has reported that 28 of its 254 planned infrastructure projects for fiscal year 2025/26 remain incomplete due to budget constraints. The setback followed a reduction of nearly Rs 20 million in the federal fiscal equalization grant from the originally allocated Rs 84.6 million. Despite the funding cut, the municipality managed to implement 226 projects and complete 176 of them. It also utilized a Rs 13.49 billion capital budget to advance a key road network linking all eight ward offices, aimed at supporting local economic growth.
Kanchanpur municipalities suspend riverbed material extraction
Local governments across Kanchanpur have imposed a complete ban on the extraction, collection, and transportation of riverbed materials such as sand, gravel, and stones. Acting under Section 4, Subsection 16 of the Stone, Gravel and Sand Extraction, Sales and Management Criteria, 2020, Bhimdatta, Bedkot, Shuklaphanta, and Krishnapur municipalities have halted all related activities from yesterday until mid-September. The seasonal restriction is enforced annually during the monsoon period to protect river ecosystems, preserve natural water flow, reduce flood risks, and maintain environmental balance in river systems including the Mahakali River.
Police seize 10 tippers for illegal sand extraction and transport
Authorities in Siraha have confiscated 10 tippers and one excavator allegedly involved in the illegal extraction and transportation of sand and aggregates. The operation was conducted jointly by personnel from the Area Police Office in Golbazar Municipality and the Armed Police Force. The excavator was seized from the Kamala River in Siraha Municipality–13, while eight tippers were impounded from the Gagan River area of Golbazar Municipality–3. According to District Police Office spokesperson Naresh Limbu, officers acted on information about unauthorized extraction activities. Several vehicles were found loaded with materials, but operators and drivers fled the scene upon the arrival of law enforcement. Police subsequently took the vehicles into custody.
Tanahun farmers receive 50 beehives under subsidy program
The District Agriculture Development Office in Tanahun has distributed 50 beehives to local farmers under a scheme providing a 50 percent subsidy. The initiative was carried out in Kholagaun of Anbu Khaireni Rural Municipality–2 through the Rodikhola Farmers Group, in line with the annual program guidelines of the Ministry of Agriculture, Land Management and Cooperatives of Gandaki Province for fiscal year 2025/26. The program seeks to promote commercial beekeeping, safeguard indigenous crops, encourage climate-resilient agricultural practices, and support export-oriented production while enhancing biodiversity through improved pollination.
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