KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s latest economic signals reflect a mixed and structurally strained landscape: while the Nepal Stock Exchange shows a modest recovery alongside rising gold and silver prices, deeper vulnerabilities persist in the real economy. Mounting public debt nearing Rs 100,000 per capita, chronic infrastructure bottlenecks, and fuel-driven cost pressures are collectively weighing on growth and inflation dynamics. Supply-side distortions—from transport cost surges and LP gas market irregularities to stalled energy logistics projects—highlight inefficiencies in policy execution and market regulation.
At the same time, external shocks, particularly Middle East tensions, are disrupting remittance-linked labor migration, exposing Nepal’s dependence on foreign employment. Although ongoing infrastructure expansion, tourism growth, and capital market activity offer pockets of optimism, the broader picture underscores a governance challenge: translating investment, regulation, and public spending into timely, coordinated, and productivity-enhancing outcomes.
NEPSE gains 13.51 points as turnover reaches Rs 12.03 billion
The Nepal Stock Exchange (NEPSE) index rose by 13.51 points (0.48 percent) on Tuesday to close at 2,812.34, bouncing back after the previous session’s decline. The Sensitive Index also increased by 2.14 points to 482.56. A total of 34.85 million shares of 340 companies were traded through 106,140 transactions, generating a turnover of Rs 12.03 billion. Share prices of 132 companies advanced, while 113 declined and 17 remained unchanged. Among sectoral indices, hydropower recorded the highest gain at 1.59 percent, followed by development banks and investment. However, finance, hotels and tourism, microfinance and trading sectors posted losses, reflecting mixed market performance overall.
Gold and silver prices edge up in domestic market
Gold and silver prices increased slightly on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold rose by Rs 400 per tola to Rs 309,900, while silver gained Rs 70 per tola to reach Rs 5,335. Prices for both metals also saw corresponding increases in per-10-gram rates.
Per capita public debt nears Rs 100,000
Nepal’s total public debt has reached Rs 2.878 trillion, pushing the per capita burden to Rs 98,691. According to the Public Debt Management Office, the debt increased by Rs 204 billion in the first eight months of the current fiscal year. Internal debt stands at Rs 1.348 trillion, while external liabilities amount to Rs 1.531 trillion. Exchange rate losses of Rs 979 billion have also contributed to the rising debt, with the overall debt-to-GDP ratio now at 47.13 percent.
Infrastructure delays slow growth and capital spending
A study by the World Bank highlights structural inefficiencies in project selection and execution as key factors behind declining capital expenditure in Nepal. Land acquisition and forest clearance continue to be major bottlenecks, with projects such as the Nagdhunga–Naubise–Mugling road expansion taking as long as 35 months just to secure land permits. Capital spending has fallen from 27.1 percent of the federal budget in 2021 to 20.9 percent in 2024, with nearly 40 percent of expenditure concentrated in the final month. The report estimates that completing 17 National Pride Projects could take up to 41 years at the current pace and recommends prioritizing ready-to-implement projects and digitizing approval processes.
Fuel price hike pushes up freight costs
Transport costs for goods have increased sharply following the recent fuel price adjustment. Freight charges along the Pathlaiya–Birgunj corridor rose by Rs 5,000 per ton. Transport operators reported that moving a 10-ton consignment to Kathmandu now costs Rs 29,000, up from Rs 24,000. Business leaders warned that rising logistics costs will directly impact consumer prices, as industries limit shipments to essential goods.
Transporters and builders seek relief after fuel price hike
Transport entrepreneurs have called for an immediate revision of fares following the latest increase in fuel prices. The Federation of Nepalese National Transport Entrepreneurs urged authorities to adjust fares based on established indicators, noting that diesel and petrol prices rose by Rs 10 and Rs 15 respectively. At the same time, the Federation of Contractors’ Associations of Nepal demanded a temporary “construction holiday,” arguing that volatile fuel prices have made project costs unmanageable without government intervention or compensation.
Consumer court settles 21 cases despite resource shortage
The Consumer Court has resolved 21 out of 41 registered cases by mid-March, despite facing limited human resources. According to Chair Dr. Diwakar Bhatta, the court has prioritized cases related to medical negligence, transport disputes and substandard construction materials. The law requires cases to be settled within 90 days of the defendant’s appearance. Kathmandu Acting Mayor Sunita Dangol stressed the need for broader consumer awareness to improve access to justice. Currently, 20 cases remain under review, with some delays due to the need for technical expertise.
Koshi sees stable LP gas supply despite shortage concerns
The Nepal Oil Corporation’s Koshi Provincial Office has assured that LP gas supply remains stable despite public concerns. Around 18 to 20 gas bullets are entering Nepal daily from India, with over 200 import permits issued in the past two weeks. However, panic buying has disrupted distribution, with some households stockpiling multiple cylinders. Authorities have introduced half-cylinder sales to ease pressure. Fuel reserves at the Biratnagar depot remain sufficient, with petrol and diesel stocks at about 85 percent capacity.
Unused gas bullet projects cause heavy investor losses
Domestic investors have suffered significant losses after gas bullet transport projects initiated in 2015 failed to materialize. Despite importing hundreds of vehicles with customs concessions, India did not issue the required explosive clearance certificates, leaving the assets unused. Some investors reported losses of around Rs 7 million per unit, forcing them to sell at steep discounts. Nepal continues to rely entirely on Indian transporters, paying around Rs 6 billion annually in freight. Although a 130-kilometer pipeline from Motihari to Sarlahi is planned, progress remains stalled despite initial funding.
Middle East tensions disrupt foreign employment permits
Rising tensions involving the US, Israel and Iran have affected Nepal’s foreign employment sector, prompting a temporary suspension of labor permits for 12 Middle Eastern countries since early March. Monthly approvals have dropped significantly, with notable declines in Qatar and Saudi Arabia. More than 1.7 million Nepalis are currently employed in the region, including large populations in the UAE and Israel. The government has begun contingency planning for possible evacuations.
Authorities warn against black marketing of LP gas
The Department of Commerce, Supplies and Consumer Protection has urged the public to report hoarding and illegal trade of LP gas through its toll-free hotline. Complaints of artificial shortages and price manipulation have risen even as the Nepal Oil Corporation introduced half-cylinder distribution to manage supply. Authorities recently fined Shreeram Gas Industry Rs 300,000 after discovering over 6,000 hoarded cylinders. Officials warned of strict action under the Consumer Protection Act 2018 against unfair market practices.
Low-fat milk batch banned from sale
The Department of Food Technology and Quality Control has prohibited the sale of milk produced by Sitaram Gokul Milks after it failed to meet quality standards. Tests found the fat content at only 1.4 percent, well below the required 3 percent threshold. Nearly 500 crates from a February production batch have been seized, and legal action is being initiated under the Food Hygiene and Quality Act 2024.
Government sets two-year plan for post-protest reconstruction
A government task force has proposed a two-year plan to rebuild infrastructure damaged during the Gen Z protests in September 2025. The total estimated damage stands at Rs 84.457 billion across public and private sectors. Reconstruction of government infrastructure alone is expected to cost Rs 36.32 billion. The plan also includes tax relief and loan restructuring measures for businesses that incurred significant losses.
Agriculture department studies minimum support price for spring paddy
The Department of Agriculture has begun a field assessment in 25 districts to fix the minimum support price (MSP) for Chaite paddy. Director General Prakash Sanjel said the study will evaluate production costs such as seeds, fertilizers, labor and inflation to ensure fair pricing for farmers. The recommended rate will be submitted to the Ministry of Agriculture and Livestock Development for cabinet approval. Last year, the MSP stood at Rs 2,800 per quintal. The Food Management and Trading Company will procure paddy at the set price, provided moisture content remains below 18 percent.
Nepalgunj airport completes Rs 2.98 billion terminal ahead of schedule
The new international-standard terminal building at Nepalgunj Airport has been completed about six weeks before the deadline. Built by Sharma & Company at a cost of Rs 2.98 billion, the project began in mid-December 2022. The three-storey structure spans 5,075 square meters and can handle up to 1,600 passengers per hour. It includes 14 check-in counters, three VIP lounges and a commercial basement. The Civil Aviation Authority of Nepal plans to operate direct flights to Indian cities such as Delhi and Lucknow from January 2027.
Commission directs Panchakanya group to clear electricity dues
The Electricity Regulatory Commission has ordered Panchakanya Steels and Panchakanya Plastic Industries to settle outstanding payments related to dedicated and trunk line electricity tariffs. The decision followed a complaint filed by the companies in November 2025 challenging Nepal Electricity Authority billing. Commission Chair Dr. Ram Prasad Dhital said the ruling was based on consumption analysis from the load-shedding period. The steel unit owes Rs 5 million, while the plastic unit must pay Rs 2.3 million. The firms may still challenge the decision in court.
Power pole relocation delays Nagdhunga-Muglin road expansion
The expansion of the Nagdhunga–Muglin road project has been slowed by delays in relocating electricity poles. Project officials say around 100 of the 500 poles in key sections such as Naubise, Dharke and Gajuri are yet to be moved. In some areas, roads have been paved around standing poles, raising safety concerns. Despite claims of ongoing work, weak coordination between the Department of Roads and the Nepal Electricity Authority continues to hamper progress.
Tourist information center to open at Pokhara Airport
The Nepal Tourism Board is preparing to establish a Tourist Information Center at Pokhara International Airport in coordination with the Civil Aviation Office and Tourist Police. According to NTB’s Gandaki office chief Maniraj Lamichhane, the facility will assist visitors with travel information and logistics across the province. Staffed by NTB personnel and tourist police, the center aims to improve the arrival experience and provide safety support, reinforcing Pokhara’s role as a key tourism hub.
Muglin-Pokhara road expansion completes 41 km section
A 41-kilometer stretch of the Muglin–Pokhara road project, from Anbu Khaireni to Jamune in Tanahun, has been completed and handed over to the government. The road has been widened to four lanes in both rural and urban sections. Funded by a Rs 6.31 billion Asian Development Bank loan, the contractor is responsible for maintaining the section for five years.
Bharatpur allocates Rs 30 million for waste plant land
Bharatpur Metropolitan City has set aside Rs 30 million to acquire forest land for a waste processing facility. The city has already paid Rs 51.9 million for land use and compensatory plantation, with an additional Rs 19 million allocated for sapling maintenance over five years. Officials say the project is essential as the city currently manages over 80 tons of waste daily at a temporary site.
Kalimati invests Rs 1.54 billion to develop Kachhuwa Daha
Kalimati Rural Municipality in Salyan has launched a Rs 1.54 billion project to transform Kachhuwa Daha into a major tourist destination. The plan includes building a temple, park, playgrounds and large sculptures. Once known for its turtle population, the lake is the second largest in the district. The project, supported by the federal government, is targeted for completion within the current fiscal year.
Rs 170 million embankment work begins along Narayani river
A Rs 170 million embankment project has started to control erosion along the Narayani River in Susta and Gajendra Mokshadham areas. Authorities aim to complete stonework before the monsoon season. Officials have deployed a round-the-clock monitoring team, emphasizing the urgency of protecting vulnerable settlements.
Economic census office set up in Bardaghat Susta Paschim
An Economic Census Office has been established in Nawalparasi (Bardaghat Susta Paschim) ahead of the nationwide survey scheduled from April 15 to June 21. The office will supervise dozens of enumerators and cover 18 sectors, including both formal and informal businesses. This will be Nepal’s second national economic census, following the first conducted in 2018.
Kalanga hydro to issue IPO for locals from March 24
Kalanga Hydro Limited will open its IPO from March 24, targeting local residents and Nepalis working abroad. The company plans to issue 4.9 million shares, representing 35 percent of its capital. Shares are reserved for project-affected districts and migrant workers. The offering, managed by Sanima Capital, requires a minimum application of 10 shares and carries a moderate risk rating.
Shikhar power IPO allotted to 184,260 investors
Global IME Capital has completed the IPO allotment for Shikhar Power Development. Out of over 2.6 million valid applicants, 184,260 investors received 10 shares each through a lottery system, while the majority were left empty-handed. Applicants can check results via the CDSC platform.
Mustang records over 370,000 tourists in eight months
Mustang has welcomed more than 370,000 visitors in the first eight months of the current fiscal year, including over 83,000 foreign tourists. Popular sites such as Muktinath Temple and the Korala border have seen high traffic, supported by improved road access. Business leaders have called for expanded accommodation facilities to meet growing demand.
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