KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest economic and policy developments reflect a mixed macroeconomic signal with moderate financial market gains amid underlying structural liquidity and investment challenges. NEPSE’s marginal rise alongside declining gold and silver prices suggests cautious investor sentiment, while the Nepal Rastra Bank’s absorption of Rs 100 billion in excess liquidity highlights continued banking sector surplus and weak credit demand.
Foreign investment approvals, though totaling Rs 41.79 billion over nine months, show sharp early concentration and a significant slowdown thereafter, indicating weakening sustained investor momentum despite policy reforms.
Meanwhile, regulatory tightening—such as revised circuit breaker rules, inter-municipal tax restrictions, and simplified visa procedures—signals efforts to improve market efficiency and governance coherence. On the fiscal side, uneven provincial capital spending, rising multi-year liabilities, and delayed project execution underscore persistent implementation bottlenecks.
Overall, the data points to an economy characterized by liquidity abundance but investment hesitation, alongside incremental regulatory and administrative adjustments aimed at improving efficiency rather than transforming structural outcomes.
NEPSE edges up 0.18 percent on final trading day
The Nepal Stock Exchange (NEPSE) gained 5.36 points, or 0.18 percent, on Friday to close at 2,838.40, while the Sensitive Index declined 0.12 percent to 476.87. A total of 18.06 million shares of 335 listed companies changed hands through 96,573 transactions, generating turnover of Rs 7.46 billion. Out of total traded companies, 108 advanced, 150 declined, and 12 remained unchanged. Five sector indices posted gains, led by hotels and tourism and manufacturing, while eight sectors fell. Four companies hit the positive circuit limit during the session.
Gold and silver prices decline, gold set at Rs 299,800
Gold and silver prices fell in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold decreased by Rs 3,000 per tola to Rs 299,800, down from Rs 302,800 the previous day. Similarly, silver dropped by Rs 120 per tola to Rs 5,130, compared to Rs 5,250 on Thursday. The federation attributed the decline to market fluctuations in international precious metals prices.
SEBON Chairman Shrestha resigns
Nepal Securities Board (SEBON) Chairman Santosh Narayan Shrestha has resigned from his post. He announced his resignation during a Board of Directors meeting on Friday. As per the Securities Act, the board chairperson must submit the resignation to the Government of Nepal. Accordingly, Shrestha has informed the Finance Minister of his decision to step down, a board director said. Following the meeting, Shrestha briefed board members that he was resigning to facilitate the government’s work. He was appointed Executive Chairman of the Securities Board on November 25, 2024.
Foreign investment approvals reach Rs 41.79 billion in nine months
Foreign investment approvals in Nepal stood at Rs 41.79 billion in the first nine months (July 17, 2025–April 13, 2026) of fiscal year 2025/26. According to the Department of Industry, 79 percent of total commitments were received in the first two months. A single Chinese meat processing project in Sindhuli worth Rs 20 billion dominated early inflows. After that, monthly commitments declined sharply, falling to around Rs 380 million in February. Despite reforms such as the automatic route system, total commitments are Rs 16 billion lower than the same period last year.
NRB absorbs Rs 100 billion excess liquidity from banking system
Nepal Rastra Bank (NRB) on Friday absorbed Rs 100 billion from the banking system to manage surplus liquidity. The central bank deployed a deposit collection instrument with a 56-day maturity through a bidding process conducted at 3:00 PM. Licensed commercial banks, development banks, and finance companies were eligible to participate, with a minimum bid size of Rs 100 million. The NRB said the operation was necessary due to excess investable funds in the banking system. The principal and interest will be repaid to participating institutions on June 10.
NEPSE implements new circuit breaker rules from Monday
Nepal Stock Exchange Limited (NEPSE) will introduce new circuit breaker rules from Monday (April 20) under the Securities Trading Operation (Fourth Amendment) Bylaws, 2026. Trading will halt for 15 minutes if the index moves 5 percent within the first two hours. If the index moves 8 percent at any time, trading will close for the day. The daily price movement limit for individual stocks has also been increased from 10 percent to 15 percent. The new system also allows post-market order entry, which brokers must process at the next opening session.
Govt bans local taxes on inter-municipal goods transport
The Inter-Governmental Finance Council has decided that local governments cannot impose taxes on goods transported across local units. A meeting chaired by Finance Minister Dr Swornim Wagle clarified that such taxes contradict the spirit of the Constitution of Nepal. The Ministry of Federal Affairs and General Administration has been instructed to notify all local bodies to remove such charges immediately. Provincial finance ministers and Nepal Rastra Bank officials participated, stressing the need to eliminate internal trade barriers.
Bagmati Province capital expenditure stands at 23.09 percent
Bagmati Province recorded capital expenditure of 23.09 percent in the first nine months of the current fiscal year. Out of a total budget of Rs 67.477 billion, the provincial government spent Rs 19.425 billion, while overall expenditure reached 28.79 percent. Current expenditure stood at 37.86 percent. The Ministry of Culture and Tourism recorded the lowest spending at 14.01 percent. Delays were attributed to infrastructure damage and administrative disruptions linked to the Gen Z protests on September 8–9, 2025.
Project bank entry deadline extended to April 23
The National Planning Commission has extended the deadline for entering projects into the National Project Bank until April 23. Although existing rules required submissions by mid-March, repeated extensions were granted due to ministry requests. Officials said additional time was needed to correct formats and complete technical preparations. The decision was finalized in an April 13 meeting to ensure proper documentation before budget formulation.
Sudurpashchim Province commits Rs 5.15 billion to multi-year projects
The Ministry of Economic Affairs in Sudurpashchim Province has approved 71 new multi-year projects worth Rs 5.154 billion. The projects include roads, bridges, and water supply schemes, scheduled for completion by fiscal year 2028/29. The province has already allocated Rs 921.5 million for the current year. Total ongoing multi-year commitments now exceed 250 projects, creating liabilities of Rs 13.707 billion. Officials warned that adding new projects while older ones remain incomplete is straining the development budget.
Government simplifies visa process for foreign aviation personnel
The government has simplified the non-tourist visa recommendation procedure for foreign staff working in Nepali airline companies following the implementation of the Aviation Service Management Regulations, 2026. Earlier, airlines were required to apply through the Civil Aviation Authority of Nepal (CAAN) to the Ministry of Culture, Tourism, and Civil Aviation. Under the new Rule 23(3), airlines can now apply directly to the Ministry, which will coordinate with CAAN for necessary recommendations. The revision is intended to speed up administrative processes for foreign pilots, engineers, and technical experts essential to the aviation sector.
Jumla inland revenue collects Rs 252.8 million in nine months
The Inland Revenue Office in Jumla collected Rs 252.8 million in the first nine months of the current fiscal year, achieving 84.40 percent of its Rs 293 million target. Income tax contributed Rs 181.8 million, while VAT collection reached Rs 53.2 million, achieving 98.54 percent of its category target. The office, covering Jumla, Mugu, and Kalikot, has intensified outreach through door-to-door campaigns and SMS alerts to improve tax compliance among 16,922 taxpayers.
Agriculture department announces seed production subsidies
The Department of Agriculture has invited local governments and seed producers to apply for subsidies under an improved seed production program. Applications are open until April 23. Source seed producers will receive Rs 20 per kg for bold and medium varieties, Rs 23 for fine varieties, and Rs 34 for Khumal-series local varieties. Improved seed producers will receive Rs 17–Rs 30 per kg depending on category. Farmers will also receive a 50 percent subsidy on rice seeds.
Foreign Ministry prioritizes digital diplomacy and economic growth
The Ministry of Foreign Affairs held a virtual interaction on Thursday with heads of Nepali diplomatic missions in West Asia and Africa. Foreign Minister Shisir Khanal directed missions to prioritize economic diplomacy in support of good governance and national prosperity. He also emphasized the use of digital innovation to improve public service delivery for Nepali citizens abroad. Foreign Secretary Amrit Bahadur Rai highlighted the need to enhance efficiency through technology. Ambassadors and consuls general briefed the ministry on the security situation of Nepali nationals and shared updates on service delivery improvements in their respective countries.
Rs 17.7 million allocated for pavement of 18-year-old road
After nearly 18 years since its opening, the Beni–Pulachaur–Todke road in Myagdi is being upgraded with concrete and blacktopping works. Beni Municipality has prioritized the project with a budget of Rs 17.7 million. Riveredge Engineering and Builders secured the contract for Rs 12.2 million and has completed around 50 percent of the work so far. According to sub-engineer Milan KC, the project includes 597 meters of concrete pavement and 300 meters of premix blacktopping to improve access to religious and tourist sites such as Jagannath and Todke.
Ward office provides Rs 100,000 health insurance for students
The Bhirkot Municipality-8 ward office has introduced a free health insurance scheme for 600 students studying in 11 community schools. Effective from April 14, the scheme covers students from nursery to grade 10 with insurance coverage of up to Rs 100,000 under a child-friendly governance initiative. Ward Chair Nandlal Khanal said the program is based on birth registration and applies to all ward residents, regardless of whether they study in public or private schools. The ward also promotes birth registration by depositing Rs 5,000 into bank accounts opened for newborns.
Butwal city removes unauthorized businesses
Butwal Sub-Metropolitan City has intensified its drive to remove unauthorized businesses and illegal roadside parking. The operation targeted major areas including Amarpath, Traffic Chowk, Ram Mandir Line, and the Bus Park section. Mayor Khelraj Pandey said the municipality used excavators after repeated warnings to clear encroachments were ignored. Supported by local business groups, the campaign aims to ensure pedestrian safety and improve market management. Prior announcements were made through loudspeakers before enforcement began.
Department monitors 53 business firms in one day
The Department of Commerce, Supplies, and Consumer Protection inspected 53 business establishments in the Khichapokhari area of Kathmandu on Thursday. The monitoring drive focused on whether businesses were issuing invoices and complying with the Consumer Protection Act, 2026. All inspected firms received corrective instructions. The department said such inspections are conducted regularly with the participation of local representatives and consumer rights activists to ensure market transparency and safeguard consumer interests.
KOICA provides USD 2.5 million for Nepali migrant workers
The Korea International Cooperation Agency (KOICA) has announced a USD 2.5 million assistance program to support the reintegration of Nepali migrant workers returning from South Korea. The initiative focuses on strengthening a step-by-step support system to reduce financial instability among returnees. The program aims to utilize the skills and experience gained abroad to promote entrepreneurship and local economic development. KOICA stated that the project will help returnees transition smoothly into Nepal’s labor market and contribute to productive employment.
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