KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic indicators present a mixed picture of improving market activity alongside emerging inflationary and external-sector pressures. The NEPSE gained 22.85 points to 2,647.22, supported by stronger turnover of Rs 6.745 billion and broad-based gains, particularly in banking and life insurance. Gold also climbed above Rs 300,000 per tola, reflecting continued demand for precious metals.
The macroeconomic picture is more nuanced. Remittance inflows rose 21.2 percent to Rs 215.05 billion, strengthening foreign-exchange reserves to $25.84 billion. However, the merchandise trade deficit widened 24.9 percent to Rs 148.74 billion despite a sharp 61.7 percent rise in exports, as imports continued to grow faster. Consumer inflation also accelerated to 5.96 percent, with food, transportation and other essential costs contributing significantly.
Monetary authorities are responding through liquidity management, including the NRB’s Rs 30 billion one-month deposit collection. Meanwhile, Finance Minister Swarnim Wagle’s engagements in India indicate continued emphasis on bilateral economic cooperation.
Domestically, however, implementation remains a major concern. Large numbers of incomplete infrastructure and drinking water projects in Sudurpashchim highlight weaknesses in budgeting, project selection and execution. The contrasting fiscal surplus in Koshi Province similarly suggests that the challenge is not only resource availability but also effective capital spending. Overall, Nepal’s economy shows stronger financial activity and external inflows, but persistent inflation, trade imbalances and weak project execution remain significant concerns.
NEPSE rises 22.85 points as turnover reaches Rs 6.745 billion
The Nepal Stock Exchange (NEPSE) index rose 22.85 points to close at 2,647.22 points on Friday, the final trading day of the week, as daily turnover climbed to Rs 6.745 billion. The market extended its upward momentum after a minor correction on Thursday. The Sensitive Index gained 5.32 points, while the Float Index and Sensitive Float Index increased by 1.87 points and 1.90 points, respectively. Turnover rose sharply from Rs 5.49 billion recorded on Thursday. A total of 21.272 million shares of 345 companies changed hands through 64,072 transactions. Of the 13 sub-indices, 11 closed higher and two declined. The Banking sub-index gained 1.59 percent, while the Life Insurance sub-index rose by around 1.5 percent. The Finance and Others sub-indices recorded marginal declines.
Gold rises to Rs 303,100 per tola, silver to Rs 4,775
Gold and silver prices increased in the domestic market on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 3,600 per tola (11.66 grams) to Rs 303,100. Gold was traded at Rs 299,500 per tola on Thursday. Silver also increased by Rs 150 per tola to Rs 4,775, compared with Rs 4,625 on the previous day. The latest gains pushed gold back above the Rs 300,000-per-tola mark, with both precious metals recording higher prices than on Thursday.
NRB invites bids for Rs 30 billion one-month deposit collection
To manage domestic liquidity, the Nepal Rastra Bank (NRB) Monetary Management Department has invited sealed bids to collect Rs 30 billion in one-month fixed deposits. Only licensed Class A, Class B and Class C banks and financial institutions regulated by the NRB are eligible to participate in the auction. The minimum bid amount is Rs 100 million, with subsequent bids required to be in multiples of Rs 100 million, up to the total amount offered. Institutions receiving allocations through the competitive auction will manage the short-term liquidity instruments in line with prevailing regulatory requirements and interbank monetary market standards.
Finance Minister Wagle and Indian External Affairs Minister Jaishankar hold talks in New Delhi
Finance Minister Dr Swarnim Wagle met Indian External Affairs Minister Dr S. Jaishankar in New Delhi on Friday, holding discussions on issues of mutual interest between Nepal and India. Wagle is currently in India on a three-day visit aimed at strengthening economic and bilateral engagement between the two neighbouring countries. The meeting with Jaishankar comes a day after Wagle held talks with his Indian counterpart, Finance Minister Nirmala Sitharaman. The discussions with Sitharaman focused on matters related to economic cooperation between Nepal and India. Wagle’s meetings with senior Indian officials come amid continued engagement between the two countries on trade, investment, connectivity, infrastructure development and other areas of bilateral cooperation.
Remittance inflows rise 21.2 percent in first month of FY 2026/27
Remittance inflows increased 21.2 percent to Rs 215.05 billion in the first month of fiscal year 2026/27, according to the Nepal Rastra Bank. The figures cover the period from July 17 to August 16. Remittance inflows had increased by 29.9 percent during the corresponding period of the previous fiscal year. In US dollar terms, remittance inflows rose 10.2 percent to $1.4 billion, compared with a 25 percent increase during the same period a year earlier. Net secondary income also increased to Rs 229.98 billion from Rs 193.85 billion. During the review period, 42,693 Nepalis received new labour approvals for foreign employment, down from 44,466 a year earlier. However, the number of re-entry labour approvals increased to 27,748 from 23,644.
NRB puts new Rs 50 banknotes into circulation
The Nepal Rastra Bank (NRB) has put a new series of Rs 50 banknotes into circulation from Friday. Issued under the signature of NRB Governor Biswo Nath Poudel, the redesigned note features updated design elements and enhanced security features. The obverse features Mount Everest on the left, a watermark of the rhododendron, Nepal’s national flower, on the right, and the official seal of the central bank. The reverse features a snow leopard and the words “NEPAL RASTRA BANK” in English. The NRB said the new notes will circulate alongside the existing Rs 50 banknotes.
Merchandise trade deficit rises 24.9 percent in first month of FY 2026/27
Nepal’s merchandise trade deficit increased 24.9 percent to Rs 148.74 billion in the first month of the current fiscal year, according to the Nepal Rastra Bank (NRB). The deficit had increased by 2.5 percent during the corresponding period of the previous fiscal year. Merchandise exports rose 61.7 percent to Rs 38.7 billion. Exports to India increased 71 percent, while exports to China surged 287.8 percent. Exports of soybean oil, palm oil, polyester yarn, jute products and particle board increased, while exports of Ayurvedic medicines, herbs, processed leather and Nepali paper declined. Merchandise imports rose 31 percent to Rs 187.44 billion. Imports of petroleum products, chemical fertilisers, edible oil and crude soybean oil increased, while imports of paddy, rice, gold, bitumen, coal and medical supplies declined. The export-to-import ratio increased to 20.6 percent during the review period.
Annual consumer inflation reaches 5.96 percent in first month of FY
Nepal’s annual point-to-point consumer inflation rose to 5.96 percent during the first month of fiscal year 2026/27, according to the Nepal Rastra Bank. The inflation rate stood at 1.68 percent during the corresponding period of the previous fiscal year. Food and beverage inflation rose to 6.77 percent, compared with negative 2.28 percent a year earlier. Prices of ghee and oil increased 15.62 percent, fruits 15.39 percent, meat and fish 8.65 percent, and vegetables 6.90 percent. Non-food and services inflation rose to 5.52 percent, with transportation costs increasing 13.17 percent. Meanwhile, wholesale inflation rose to 8.27 percent. Foreign exchange reserves increased to $25.84 billion, sufficient to cover an estimated 21.8 months of merchandise imports.
Koshi Province records fiscal surplus amid declining capital expenditure
Koshi Province recorded a fiscal surplus of around Rs 7 billion to Rs 8 billion in its treasury accounts despite a continued decline in capital expenditure. According to data compiled by Provincial Comptroller Damodar Khatri, the province collected Rs 30.384 billion in revenue and spent Rs 25.861 billion during fiscal year 2025/26. Economic Affairs and Planning Minister Radheshyam had initially projected a cash reserve of around Rs 5 billion during budget formulation. The actual balance, however, exceeded the projection. The surplus comes amid concerns over delays in implementing approved infrastructure projects, with low capital expenditure raising questions about the pace of development and project execution in the province.
Government provides up to 80 percent subsidy on agriculture and livestock insurance
Minister for Agriculture, Forest and Environment Gita Chaudhary has said the government provides financial protection and relief mechanisms at the federal, provincial and local levels to safeguard farmers against losses caused by agricultural disasters. Responding to questions at a meeting of the National Assembly, Chaudhary said the federal government provides direct premium subsidies of up to 80 percent for agriculture, livestock and herbal insurance policies under the updated regulatory framework that came into effect on September 18. The ministry has also introduced a real-time digital insurance management system linked with provincial agriculture ministries and conditional grant mechanisms. The system is intended to facilitate transparent claims processing and faster compensation for farmers affected by extreme weather events, unseasonal winds, floods and wildfires.
193 road and bridge projects remain incomplete in Sudurpashchim
A total of 193 multi-year road and bridge projects being implemented by the Sudurpashchim Province government remain incomplete, with the provincial Ministry of Physical Infrastructure Development citing the large number of small-scale projects as a major implementation challenge. According to the ministry, 129 projects have achieved less than 50 percent physical progress, while 19 have reached up to 60 percent, 22 up to 80 percent and 23 more than 80 percent completion. The projects have been under implementation for the past nine fiscal years but remain incomplete due to inadequate budget allocations and alleged negligence by construction contractors. The ministry said 31 multi-year projects have reached a problematic stage because of contractor negligence and delays.
1,150 drinking water projects remain incomplete in Sudurpashchim
As many as 1,150 drinking water projects being implemented by the Sudurpashchim Province government remain incomplete, according to the provincial Ministry of Physical Infrastructure Development. The ministry attributed the slow implementation partly to the large number of small projects included in provincial budgets. Nearly 8,000 small projects were included in the fiscal year 2025/26 budget, making effective implementation difficult. The ministry said inadequate budget allocations for multi-year projects, difficulties in transferring budgets and local disputes over road rights-of-way have also hampered project implementation. The Minister for Physical Infrastructure Development said the upcoming budget would prioritize the completion of multi-year projects. He said drinking water projects that have achieved at least 50 percent physical progress would be prioritized for completion.
Government grants 136 hectares for Daiji Chela Industrial Area in Kanchanpur
The government has granted land-use rights for the development of the Daiji Chela Industrial Area, covering 136.59 hectares in wards 2 and 3 of Bedkot Municipality in Kanchanpur. The project was first proposed in fiscal year 1995/96 and formally planned for construction in fiscal year 2020/21, but implementation was delayed by regulatory hurdles related to the use of national forest land. Following recent Cabinet approval and land-use clearance from the Ministry of Agriculture, Forest and Environment, local officials said issues related to tree clearance and other administrative procedures have been resolved. The federal government has allocated Rs 25 million in the current fiscal year’s budget for construction of access roads to the industrial area. Officials expect the project to contribute to employment generation in Sudurpashchim Province.
388 families in Dhanusha receive land ownership certificates after nine years
A total of 388 families in Kshireshwornath Municipality-1, Dhanusha, have received land ownership certificates nearly nine years after land measurement was completed in the area. The certificates were distributed to families who had been residing on the land for a long period. The Survey Office, Dhanusha, issued the documents after completing the required legal and administrative procedures. Land measurement covering the former Ramdaiya Bhawadi VDC wards 2, 3, 4, 6, 7 and 8 was completed in fiscal year 2017/18. However, the certificates could not be distributed for years because the necessary legal and administrative processes remained incomplete. With the registration of the land and issuance of ownership certificates, the families now have formal legal ownership of their properties. The documents are also expected to help residents obtain bank loans using their land as collateral and resolve potential land-related disputes. With the latest distribution, the number of families in Dhanusha receiving land ownership certificates has reached 4,354. Earlier, certificates had been distributed to 3,966 families.
Physical progress of New Damouli substation reaches 36 percent
Physical construction of the New Damouli 400-kilovolt substation in Tanahun has reached 36 percent, while financial progress stands at 12 percent under the Millennium Challenge Account Nepal framework. The project is being implemented by India-based Techno Electric and Engineering Company Limited under a $38.8 million contract signed in August 2024. The project is scheduled for completion by November 2027. The high-capacity substation is expected to strengthen Nepal’s electricity transmission network. Meanwhile, complementary distribution upgrades are also underway in five local government areas of Tanahun. The work includes replacing ageing utility poles, installing aerial bundled cables and deploying distribution transformers.
Lawmakers call for strict deadlines and licence revocation in mineral exploration bill
Lawmakers have called for strict time limits and automatic licence revocation provisions in the Mineral and Mineral Substances Bill, 2026, to prevent companies from acquiring exploration licences and leaving mineral resources undeveloped. Speaking at a meeting of the Industry and Commerce and Labour and Consumer Welfare Committee, lawmakers said the longstanding practice of holding mineral exploration licences without making meaningful progress should be ended through clear legal provisions. CPN (UML) lawmaker Kshitij Thebe questioned the proposed licensing periods of up to 10 years for micro mines, 15 years for small mines, 20 years for medium mines and 30 years for large mines. He called for provisions to automatically revoke licences when holders fail to undertake operations within the prescribed period. Rastriya Swatantra Party lawmaker Badan Kumar Bhandari and Nepali Communist Party lawmaker Nirasha Chaudhary stressed the need to protect local ecosystems, agricultural land and water resources while ensuring transparent distribution of royalties to local governments. Lawmaker Ganga Devi Shrestha also raised questions about reports of possible uranium deposits.
Nepal Telecom launches special Constitution Day data packages
Nepal Telecom has introduced special high-speed mobile data packages for prepaid and postpaid subscribers to mark Constitution Day 2026. The promotional packages are available for three days, from September 18 to September 20. The Unlimited Light package costs Rs 499, including taxes, and provides 5 GB of daily data for 30 days, followed by unlimited browsing at speeds of up to 2 Mbps. The Unlimited Pro package costs Rs 699, including taxes, and offers 10 GB of daily data for 30 days, followed by unlimited browsing at speeds of up to 3 Mbps. For postpaid users, the applicable rental charges are incorporated into their bills.
Commercial banana farmers in Dang benefit from strong festive demand
Commercial banana farmers in Dang are receiving strong market prices amid increased demand during the festive season, following a difficult previous harvest. Agricultural entrepreneurs in Deukhuri have reported significant sales from commercial banana cultivation. Ranaprasad Subedi generated more than Rs 900,000 in sales from 23.7 hectares of cultivation in a single month, while another farmer, Bidhya Bahadur Chaudhary, recorded sales exceeding Rs 300,000. Farmgate prices have remained around Rs 100 per dozen. According to the Agriculture Knowledge Center, Dang, commercial banana cultivation covers 447 hectares across the district and produces an estimated 9,973 metric tonnes annually. Farmers are increasingly adopting organized farming practices to meet growing demand in domestic markets.
Palpa prison inmates donate Rs 83,000 to flood victims
Inmates at Palpa Prison have contributed Rs 83,000 to support rescue and relief efforts for victims of floods along the Bhote Kos were generated through vocational and income-generating activities conducted inside the prison. The 237 inmates, comprising 224 men and 13hi corridor. The contribution was facilitated by prison administrator Bhagwan Bhakta Aryal and deposited into the Prime Minister Disaster Relief Fund through Rastriya Banijya Bank. The funds were generated through vocational and income-generating activities conducted inside the prison. The 237 inmates, comprising 224 men and 13 women, engage in activities including traditional handicrafts, sewing, basket weaving and cotton wick production. Officials said that although the contribution was modest, it reflected the inmates’ sense of civic responsibility and solidarity with people affected by the disaster.
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