KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The day’s economic developments present a mixed picture of market weakness alongside strong signs of economic activity, infrastructure investment and policy intervention. The NEPSE fell 19.34 points despite Rs 5.073 billion in turnover, with most listed companies recording losses, indicating continued investor caution. Gold remained expensive at Rs 306,800 per tola, while silver edged lower.
The energy sector shows both opportunity and structural constraints. Nepal earned Rs 29.324 billion from electricity exports, but seasonal dependence on run-of-river hydropower means the country still imports electricity during dry months. The government’s push to complete major irrigation projects within five years and modernize distribution could help improve agricultural productivity and domestic energy use.
Foreign employment remains a major economic pillar, with 70,441 Nepalis receiving labor approvals in one month. Meanwhile, the stabilization of LPG supplies in Kathmandu, with sales exceeding normal demand, suggests that recent shortages are easing, although concerns over hoarding remain.
Infrastructure spending is also gaining momentum through the BP Highway expansion and Prithvi Highway upgrades. At the same time, the government’s move to clear milk payment arrears highlights persistent financial weaknesses in the dairy sector.
Overall, the developments point to high economic activity but significant structural vulnerabilities, including dependence on remittances, seasonal energy shortages, infrastructure gaps, weak institutional finances and regulatory challenges in emerging sectors such as e-commerce and aviation.
NEPSE falls 19.34 points as turnover reaches Rs 5.073 billion
The Nepal Stock Exchange (NEPSE) index declined 19.34 points to close at 2,622.48 on Tuesday after fluctuating throughout the trading session. A total of 15.1 million shares of 347 companies changed hands in 55,246 transactions, generating a turnover of Rs 5.073 billion. Share prices of 218 companies fell, while 56 companies gained and five remained unchanged. The Manufacturing sub-index recorded the steepest decline, falling 1.40 percent, while changes in the other sectoral indices remained below 1 percent. Sarbottam Paints posted the highest gain, rising 14.99 percent, followed by Mount Everest Power Development Company, which gained 14.98 percent. Sagarmatha Jalvidhyut Company recorded the biggest decline, falling 10.63 percent. Agricultural Development Bank’s debenture topped the turnover chart at Rs 506.8 million, followed by Solu Hydropower at Rs 391.4 million and Khanikhola Hydropower at Rs 252.6 million.
Gold holds at Rs 306,800 while silver falls to Rs 4,755
The price of gold remained unchanged at Rs 306,800 per tola on Tuesday, while silver declined by Rs 15 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 306,800 per tola, unchanged from Monday. The price of gold stood at Rs 263,030 per 10 grams. Meanwhile, silver fell from Rs 4,770 per tola on Monday to Rs 4,755 on Tuesday.
Nepal earns Rs 29.324 billion from electricity exports
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said electricity exports alone should not be considered a measure of success in Nepal’s energy sector. Speaking at the House of Representatives on Tuesday, Shrestha said Nepal earned Rs 29.324 billion from electricity exports to India and Bangladesh in fiscal year 2025/26. He said electricity generation exceeds domestic demand during the rainy season, making exports necessary to prevent surplus power from going to waste due to inadequate infrastructure. During the dry season, however, declining river flows reduce generation and force Nepal to import electricity from India. Shrestha said Nepal’s heavy reliance on run-of-river hydropower has resulted in seasonal fluctuations in electricity production. He stressed the need to increase domestic electricity consumption while expanding transmission and distribution infrastructure.
Financial Comptroller General directs semi-monthly salary payments
The Office of the Financial Comptroller General has directed government offices to disburse regular salaries to federal civil servants every 15 days for continuous service across government departments, divisions and ministries. The directive issued on Monday follows updated guidelines from the Ministry of Finance dated April 17, 2026. The implementation guidelines also require regular employee incentive allowances to be paid from the fiscal year 2026/27 budget immediately after the respective offices formally request the release of funds. The measure aims to ensure financial liquidity, accountability, transparency and administrative efficiency in public administration.
NPCI International expands cross-border digital payments between India and Nepal
NPCI International Payments Limited has strengthened cross-border digital payment connectivity between India and Nepal through the integration of India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI). The initiative enables real-time person-to-person money transfers between the two countries and allows Indian travellers to make instant QR-based payments at merchant outlets in Nepal. The system operates through the Fonepay network and Nepal Clearing House, reducing reliance on cash while improving payment efficiency and strengthening economic and people-to-people ties between the two countries.
70,441 Nepalis receive labor approvals for foreign employment
A total of 70,441 Nepalis obtained labor approvals for foreign employment between July 17 and August 16, corresponding to the Nepali month of Shrawan. According to the Department of Foreign Employment, 60,472 of those receiving approvals were men and 9,969 were women. The department issued 42,693 new labor approvals and 27,748 re-entry approvals. The United Arab Emirates was the top destination, with 18,784 workers receiving approvals, followed by Malaysia with 12,498. Dhanusha recorded the highest number of approvals among districts, with 3,368 workers receiving labor approvals.
Kathmandu Valley receives 47,388 cooking gas cylinders
Nepal Oil Corporation has said cooking gas supplies in the Kathmandu Valley are gradually stabilizing, while urging consumers not to hoard cylinders unnecessarily. The corporation said daily demand in the valley normally ranges from 35,000 to 37,000 cylinders. However, 52,576 cylinders were sold on August 17 and another 47,388 on August 18. A total of 309,553 cylinders were sold across the valley during the week, averaging more than 44,000 cylinders per day as supplies through dealers resumed.
Energy Minister sets five-year target for national pride irrigation projects
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has directed officials to prioritize the timely completion of national pride irrigation projects, setting a five-year target for completing projects under the ministry. During a meeting with the Director General of the Department of Irrigation, division chiefs and project chiefs, Shrestha directed officials to complete the Bheri-Babai Multipurpose, Babai and Sikta Irrigation Projects within the next three dry seasons. He stressed the need to modernize water distribution systems using Supervisory Control and Data Acquisition (SCADA) technology and link irrigation infrastructure with agricultural and industrial development. Officials were also instructed to regularly review project timelines and costs to ensure effective implementation and results.
Online businesses required to register under e-commerce law
The government has directed businesses operating through online platforms to complete mandatory registration and listing procedures. The Department of Commerce, Supplies and Consumer Protection has instructed businesses selling goods and services through websites, applications, social media platforms and other digital channels to register through its designated portal. The department warned that action would be taken against online businesses operating without completing the required procedures under the Electronic Commerce Act, 2025, and Electronic Commerce Directives, 2026. The government has stepped up monitoring of digital commerce amid growing complaints of consumer fraud and problems involving online transactions. According to the department, the requirement applies to businesses conducting transactions through computers, mobile phones and other devices using websites, applications, the internet, intranets, social media marketplaces and other digital platforms.
BP Highway expansion estimated to cost Rs 3.797 billion
The expansion of the 20-kilometre BP Highway section from Dhulikhel in Kavrepalanchok to Namobuddha has been estimated to cost Rs 3.797 billion. According to the Division Road Office, Bhaktapur, the existing 5.5-metre road will be widened to 10 metres and upgraded with a blacktop surface. The Detailed Project Report (DPR) has already been prepared. Land compensation for plots falling within 15 metres on either side of the road has been distributed in Dhulikhel, Panchkhal, Panauti and Namobuddha. The expansion is part of the reconstruction following the September 2024 floods, which damaged around 30 kilometres of the highway.
Madhesh sets vehicle purchase ceilings for provincial officials
The Madhesh Province government has set a vehicle purchase ceiling of Rs 15 million for the Chief Minister and Speaker under the Provincial Expenditure Standard Directives, 2026. Issued by the Ministry of Finance, the directives prohibit vehicle purchases without prior ministry approval. Ministers, state ministers, assistant ministers and the Deputy Speaker can purchase vehicles costing up to Rs 12 million, while the Chief Secretary, commission officials and the Chief Attorney are subject to an Rs 8 million ceiling. Provincial secretaries can purchase vehicles costing up to Rs 6 million. The Office of the Chief Minister and Council of Ministers may also purchase one vehicle costing up to Rs 40 million for visiting high-level dignitaries, including the President and Prime Minister.
Government plans to clear milk payment backlog within 25 days
The government plans to reduce the period for settling milk payments to farmers to 25 days by mid-September, after the backlog had extended to as long as eight months. Between May 3 and Monday, around Rs 600 million was paid to farmers, according to officials. Over the past two fiscal years, excess milk production forced authorities to convert surplus milk into powdered milk and butter, resulting in large stockpiles and putting pressure on the dairy sector’s finances. The government plans to use a Rs 400 million loan to improve the sector’s liquidity. Of the amount, Rs 200 million will be used to clear payments to farmers, while the remaining Rs 200 million will finance a new processing plant.
Lekhnath section of Prithvi Highway gets major upgrades
The Lekhnath section of the Prithvi Highway is undergoing significant upgrades under the Mugling-Pokhara Road Expansion Project, with new safety and aesthetic features being added. Construction has been completed on around 41 kilometres of the Abu Khaireni-Jamune section and 38.71 kilometres of the Jamune-Pokhara Seti Bridge section. The upgraded sections include asphalt pavement, drainage systems, service lanes and road dividers. Lane markings, zebra crossings, safety barriers and traffic signs are also being installed to make travel between Kathmandu and Pokhara safer and more orderly.
TAAN to hold 48th annual general meeting and election on September 24
The Trekking Agencies’ Association of Nepal (TAAN) will hold its 48th Annual General Meeting and election on September 24, 2026. The decision was taken during the association’s 22nd full Executive Committee meeting held at its secretariat in Maligaun, Kathmandu, on Tuesday under the chairmanship of TAAN President Sagar Pandey. TAAN General Secretary Sonam Gyaljen Sherpa said details regarding the venue and other arrangements would be announced through an official notice in line with the association’s statute. The meeting will include the association’s annual general assembly and the election of its new leadership.
Three firms blacklisted for three years over procurement violations
The Public Procurement Monitoring Office has blacklisted three construction companies and suppliers for three years under Section 63 of the Public Procurement Act, 2007. The blacklisted entities are Namadevi Construction Service of Baitadi, Baghwari-Ramechhap-Santoshi JV of Nuwakot and Raman-Om-Sugam JV of Lalitpur. The companies have been barred from participating in public procurement processes and competitive bidding conducted by public bodies throughout the three-year penalty period.
Hetauda Martyrs’ Memorial earns Rs 1.3 million from ticket sales
Hetauda Martyrs’ Memorial generated around Rs 1.3 million in ticket revenue in a month, attracting 18,768 general visitors and 950 students. According to the memorial’s senior accounting officer, the site is open daily from 6 am to 9 pm and attracts domestic tourists, students, researchers and families. The revenue generated from visitors contributes to the site’s maintenance, facility upgrades and development while supporting tourism in the region.
Himalaya Jet’s international flight plans face regulatory questions
Himalaya Jet, chaired by Dipendra Gurung, has announced plans to operate direct international flights from Nepal to the UK, Europe and Australia using Boeing aircraft. However, the company has yet to obtain an Air Operator Certificate or complete registration with the Civil Aviation Authority of Nepal, according to aviation officials. The company has advertised job vacancies and publicised ambitious plans for capital investment and employment generation. However, officials said securing regulatory approvals, bilateral air service rights and safety certifications requires a lengthy process. Aviation experts have therefore described the company’s social media publicity and international flight plans as unverified and still at the planning stage.
Commercial jute farming expands in Sunsari
Commercial jute farming is expanding in Sunsari, generating annual incomes of around Rs 200,000 to Rs 300,000 for farmers, with the crop fetching up to Rs 5,500 per maund. Jute cultivation covered 1,308 hectares in fiscal year 2024/25 and increased to 1,334 hectares in 2025/26. Jute production involves sowing seeds between March and April, submerging harvested stalks in water and extracting the fibre. Workers involved in the process earn around Rs 600 a day. More than Rs 10 million has been allocated for research, with the expansion of domestic production expected to help reduce Nepal’s reliance on jute imports from Bangladesh and India.
Siddharth Capital announces dividends for two mutual fund schemes
Siddharth Capital has announced cash dividends for unit holders of two mutual fund schemes under its management. Unit holders of Siddharth Investment Growth Scheme 2 will receive an 8 percent cash dividend, while those of Siddharth Investment Growth Scheme 3 will receive a 10 percent dividend, inclusive of applicable taxes. The dividends were approved at a board meeting held on August 17. The board, however, decided not to distribute dividends for Siddharth Equity Fund and Siddharth Equity Fund 2 for the current financial year.
Student Union protests cooking gas shortage with empty cylinders
The Nepal Student Union, the student wing of the Nepali Congress, staged a demonstration against the government on Tuesday, carrying empty cooking gas cylinders to protest the ongoing shortage. The demonstration was held at Tri-Chandra Campus in Kathmandu, where participants called for immediate measures to resolve the shortage affecting students and the general public. Protesters carried placards with slogans criticizing the government’s handling of the situation and questioning the continued shortage of cooking gas. The organizers said the shortage had disrupted students’ daily lives and called for swift action to restore normal distribution.
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