KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy presented a mixed picture on Wednesday, with financial markets showing signs of caution even as policymakers pushed reforms and infrastructure projects moved forward. The NEPSE index managed a marginal gain, but declining turnover for a third straight session signaled weak investor confidence.
Meanwhile, the government and Nepal Rastra Bank took steps to stimulate economic activity through potential real estate reforms, liquidity management operations, and increased fiscal spending targets. Infrastructure developments, including the nearing completion of the Nagdhunga–Naubise tunnel and progress on the Siliguri–Jhapa petroleum pipeline, point to longer-term growth prospects.
However, persistent challenges remain, including sluggish capital expenditure, disruptions to Nepal’s tea exports, rising industrial dues, and continued dependence on foreign aid for renewable energy projects.
Overall, the day’s developments reflected an economy balancing reform ambitions and infrastructure expansion against structural weaknesses in investment, public spending, and export performance.
NEPSE posts marginal gain as turnover declines to Rs 3.63 billion
The Nepal Stock Exchange (NEPSE) edged up by 0.08 points on Wednesday to close at 2,705.53 after a volatile trading session. Despite the slight increase, market turnover continued to decline. The benchmark index had fallen by 6.31 points on Tuesday and 12.26 points on Monday. The Sensitive Index slipped by 0.20 points to 464.43. Total turnover stood at Rs 3.63 billion from the trading of 8.37 million shares of 352 companies through 44,542 transactions, down from Rs 4.04 billion on Tuesday and Rs 4.41 billion on Monday. Among listed companies, share prices of 125 advanced, 132 declined, and 14 remained unchanged, while sectoral performance was mixed.
Gold and silver prices decline
Prices of precious metals fell in the domestic market on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 1,200 per tola (11.66 grams) to Rs 297,300, down from Rs 298,500 on Tuesday. Silver also became cheaper, falling by Rs 10 per tola to Rs 4,980 from the previous day’s rate of Rs 4,990 per tola.
Finance Minister signals openness to real estate policy reforms
Finance Minister Swarnim Wagle said the government is willing to consider evidence-based recommendations from the private sector during an interaction on the national budget held on Wednesday. Speaking at a program organized by the Nepal Chamber of Commerce, he noted that customs duties on industrial raw materials have been kept lower than those on finished goods to encourage domestic manufacturing. Referring to the slowdown in the real estate market, Wagle said the government plans to gradually ease land ceiling restrictions to unlock investment and will work with Nepal Rastra Bank to incorporate real estate financing measures into the upcoming monetary policy.
NRB issues new Rs 500 banknotes bearing governor’s signature
Nepal Rastra Bank has released 3 million new Rs 500 denomination banknotes carrying the signature of Governor Biswo Nath Poudel. According to the central bank, the notes feature serial numbers ranging from Jha 38 000001 to Taa 83 999999. The front side includes images of Mount Everest, a rhododendron watermark, tactile marks for visually impaired users, and a color-changing image of Kubera that appears golden when viewed directly and green from an angle. The note also contains a 3.5-millimeter security thread that changes color depending on the viewing angle. The reverse side displays an image of a Bengal tiger beneath the inscription “Nepal Rastra Bank.” Previously, NRB had issued 348,000 Rs 500 notes in December 2021.
NRB absorbs Rs 45 billion through liquidity management operation
Nepal Rastra Bank (NRB) conducted a liquidity absorption operation on Wednesday, withdrawing Rs 45 billion from the banking system. The operation, managed by the Monetary Management Department, was carried out through an online auction beginning at 3:00 p.m., with interest rates determined through competitive bidding. Participation was restricted to licensed Class A, Class B, and Class C financial institutions, allowing banks and financial institutions to manage excess liquidity more effectively.
Finance Ministry revises spending target upward for current fiscal year
The Ministry of Finance has increased its projected budget expenditure for fiscal year 2025/26 to Rs 1.696 trillion, raising the estimate by Rs 8 billion from the mid-year review. The revision comes despite the government having spent only 68.56 percent, or Rs 1.346 trillion, of the total Rs 1.964 trillion budget with just one month left in the fiscal year. Current expenditure has reached 76.91 percent and debt servicing 81.47 percent, while capital expenditure remains low at 32.53 percent, equivalent to Rs 132.66 billion. This is below last year’s figure of 40.69 percent during the same period. Revenue collection has reached Rs 1.081 trillion, or 73.06 percent of the annual target of Rs 1.480 trillion.
Tea industry announces indefinite shutdown over export disruption
Tea producers have declared an indefinite closure of tea factories and plantations from June 18 after exports to India were disrupted by a new Standard Operating Procedure (SOP) introduced by the Tea Board of India. The Nepal Tea Producers Association announced the decision at a press conference in Bhadrapur, Jhapa, following the suspension of tea shipments to the Indian market. Industry representatives said Nepal exports tea worth approximately Rs 5 billion annually to India, out of a total sector turnover of Rs 12–14 billion. They urged the government to intervene and help identify alternative export destinations, including Bangladesh and Pakistan. The tea sector employs around 60,000 workers and contributes roughly Rs 1 billion annually in government revenue.
Foreign aid to fund majority of renewable energy budget
More than half of the government’s renewable energy and energy-efficiency budget for the upcoming fiscal year will be financed through foreign assistance. Of the total Rs 2.627 billion allocated for these programs, Rs 1.43 billion will come from international funding sources, while Rs 1.197 billion will be financed domestically. Implemented through the Alternative Energy Promotion Centre, the program aims to provide 2.5 megawatts of off-grid solar and micro-hydropower electricity to remote communities. It also plans to distribute clean cooking technologies to 250,000 households and support large-scale waste-to-energy projects.
Nagdhunga–Naubise tunnel expected to open by mid-July
The long-awaited Nagdhunga–Naubise tunnel road is on track to open to traffic by mid-July, offering relief from congestion on the main gateway to Kathmandu. Project officials said construction inside the 2,688-metre tunnel has been completed, while emergency preparedness exercises and final safety checks are ongoing. Remaining work includes measures to reduce landslide risks around the tunnel area. Originally scheduled for completion in April 2023, the project experienced multiple delays due to construction challenges and local disruptions. The tunnel will operate a multi-payment toll system, including cash, QR payments, and automated sticker-based collection, with charges ranging from Rs 60 to Rs 600 depending on vehicle type.
Land revenue offices collect over Rs 5 billion in one month
Land administration offices nationwide generated Rs 5.244 billion in revenue between May 15 and June 14, 2026. Data from 138 land revenue offices show that service fees contributed Rs 286.6 million, while registration charges generated Rs 2.785 billion. Capital gains tax collections amounted to Rs 2.123 billion. Although revenue remained strong, the figure was lower than the Rs 6.263 billion collected during the previous month.
Work advances on Siliguri–Jhapa petroleum pipeline project
The government has moved ahead with preparations for the proposed Siliguri–Jhapa cross-border petroleum pipeline by inviting public comments on the project’s environmental impact assessment. Supported through technical assistance from the Indian Oil Corporation, the project is estimated to cost Rs 12.447 billion. It includes the construction of a 49.6-kilometer pipeline and an 18,900-kiloliter fuel storage facility in Charali spread across more than 23 bighas of land. The pipeline will utilize carbon steel infrastructure and a specialized SCADA monitoring system to detect leaks and reduce reliance on fuel transportation by tanker trucks.
Nepal and Germany conclude G2G talks with EUR 37.6 million commitment
Nepal and Germany concluded their Government-to-Government (G2G) development cooperation talks in Kathmandu on June 17, with Germany committing EUR 37.6 million for projects over the next two years. The discussions, held from June 16 to 17, reviewed ongoing partnerships and established new priorities in energy, healthcare, economic development, and civil society support. The agreement includes measures to strengthen Nepal’s electricity transmission network, expand clean energy initiatives, improve healthcare services, and enhance health insurance and digital health systems. It also includes support for Paropakar Maternity and Women’s Hospital and programs aimed at creating employment opportunities for farmers, youth, and entrepreneurs, while promoting human rights, social cohesion, and local development through civil society organizations.
Industrial districts report more than Rs 1 billion in unpaid dues
According to Industrial Districts Management Limited, 621 industries operating in ten government-run industrial estates have accumulated unpaid dues totaling Rs 1.038 billion. The outstanding amount includes land lease fees, building rents, electricity charges, and water bills. The Balaju Industrial District accounts for the largest share, with 151 industries owing Rs 439.8 million, followed by Hetauda Industrial District with Rs 209 million and Bhaktapur Industrial District with Rs 171.1 million. Authorities have issued a seven-day notice warning defaulters that lease agreements could be terminated if payments are not settled.
Committee recovers Rs 12 million from troubled cooperatives
The Problematic Cooperative Management Committee recovered more than Rs 12 million in loan assets over the past month and returned Rs 5.9 million to depositors. The repayments benefited 1,452 savers with deposits below Rs 10,000 across eight troubled cooperatives. Under recently introduced restructuring measures, the committee also resolved claims worth Rs 5.1 million through deposit-matching arrangements. Officials are currently reviewing around 44,000 pending claims and tracing assets linked to cooperative operators accused of financial misconduct to facilitate further settlements.
Valley traffic police collect nearly Rs 2 million in fines in a day
The Kathmandu Valley Traffic Police Office issued 2,535 traffic violation notices during a 24-hour enforcement campaign, generating more than Rs 1.9 million in government revenue. Among those penalized were 101 motorists for drink-driving, 129 for unauthorized ride-sharing services, 106 for traffic signal violations, and 138 for speeding. Authorities also fined 81 drivers for lane-discipline violations, 141 for unnecessary horn use in restricted areas, and 117 for parking on footpaths.
Statistics office urges businesses to participate in economic census
The National Statistics Office has called on businesses that have not yet been counted to participate in the ongoing National Economic Census 2082 before the survey concludes. The census, which runs from April 15 to June 21, has mobilized 3,606 enumerators to collect information on approximately 1.2 million enterprises nationwide. Businesses that have not been surveyed have been requested to contact the toll-free number 1178 to ensure their inclusion. The census aims to provide reliable data for economic planning, GDP estimation, and private-sector development strategies.
Mount Everest Power launches IPO for general investors
Mount Everest Power Development Company opened its Initial Public Offering (IPO) to the general public on Wednesday, offering 1.4 million shares. The issue represents the final tranche of a total 2.5 million-share public offering from the company’s paid-up capital of Rs 860 million. Earlier, the company allocated 860,000 shares to project-affected local residents and 172,000 shares to Nepali workers employed abroad. Investors may apply for between 10 and 10,000 shares through approved financial platforms until June 22. NIMB Ace Capital is serving as the issue manager.
FNCCI calls for diplomatic intervention to resolve tea export bottleneck
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to take immediate diplomatic and policy measures to address trade barriers affecting tea exports to India. According to the federation, new procedures introduced by the Tea Board of India require mandatory quality inspections at border points, delaying shipments by up to 20–25 days. FNCCI warned that the disruption threatens an industry worth Rs 12–14 billion annually, including around Rs 5 billion in exports to India, while putting pressure on businesses that support approximately 60,000 jobs.
Lawmakers seek third deputy governor position at Nepal Rastra Bank
Members of both ruling and opposition parties have proposed increasing the number of deputy governors at Nepal Rastra Bank (NRB) from two to three through amendments to the Nepal Rastra Bank (Third Amendment) Bill. A total of 18 amendment proposals have been registered by lawmakers from the Rastriya Swatantra Party, Nepal Communist Party, and Rastriya Prajatantra Party. The proposals recommend reserving one deputy governor position for an external expert rather than a career central banker. The government has also suggested allowing executive directors to become eligible for promotion 30 days before a vacancy arises. The parliamentary secretariat will now compile the proposed amendments before the bill proceeds to detailed discussion and final endorsement.
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