KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s latest economic and development indicators present a mixed but revealing picture of momentum alongside structural constraints. A strong rebound in the NEPSE and robust customs revenue signal improving market confidence and steady import-driven fiscal inflows, while expanding sectors such as floriculture and telecom reflect gradual diversification and private sector dynamism.
However, rising edible oil prices driven by global supply disruptions highlight Nepal’s continued vulnerability to external shocks, reinforcing inflationary pressures. At the same time, persistent project delays—seen in the Bardibas railway and Dhauligad water scheme—underscore governance inefficiencies, particularly in compensation disputes and bureaucratic approvals.
Infrastructure expansion, including transmission lines, highways, and tunnels, suggests long-term growth intent, yet uneven implementation at local levels reveals capacity gaps. Meanwhile, climate-induced losses like windstorm damage to agriculture expose the fragility of rural livelihoods. Overall, the economy appears to be growing in pockets, but systemic issues in execution, external dependency, and disaster resilience continue to limit sustained and inclusive progress.
NEPSE jumps over 64 points on last trading day, turnover crosses Rs 21 billion
The Nepal Stock Exchange (NEPSE) recorded a strong rebound on Thursday, climbing 64.67 points to close at 2,877.02, marking a 2.29 percent increase. The Sensitive Index also rose by 11.62 points to 494.19. Despite trading being limited to four days this week due to the Ghode Jatra holiday, overall market sentiment remained positive. A total of 56.92 million shares of 342 companies were traded through more than 191,000 transactions, generating a turnover of Rs 21.22 billion. Share prices of 240 companies increased, while 22 declined and two remained unchanged, with all sector indices ending in the green.
Gold and silver prices decline in domestic market
Prices of precious metals have dropped in the local market, with gold falling by Rs 5,400 per tola and silver also recording a decline. The decrease reflects recent fluctuations in international markets, according to traders.
Railway construction halted in Bardibas over compensation dispute
Work on the East-West Railway project in Bardibas has been suspended after local landowners halted construction over unpaid compensation. Around 14 affected families claim dues ranging from Rs 70 million to Rs 80 million remain unsettled. Despite repeated appeals to the authorities, payments have not been released, prompting locals to take action and stall the project.
Edible oil prices rise sharply amid global tensions
Retail prices of edible oil have surged by Rs 40 to Rs 50 per liter in the domestic market, with traders attributing the increase to ongoing tensions in West Asia. Sunflower oil prices have jumped from Rs 260 to Rs 300 per liter. However, wholesalers have questioned the justification for the hike, noting that most raw materials are imported from countries like Malaysia and Singapore. Meanwhile, the government has stepped up market monitoring to curb artificial shortages and price manipulation.
Mustard oil prices climb in Morang due to supply disruptions
Prices of mustard oil have increased significantly in the Sunsari-Morang industrial corridor due to raw material shortages linked to disruptions in global supply routes. The cost of mustard has risen sharply at the farm level and further increased upon delivery. Industry stakeholders say delays in shipments through key trade routes such as the Strait of Hormuz and the Suez Canal have pushed up production costs, affecting both industrial output and retail prices.
Nepal Telecom expands prepaid roaming to 62 countries
Nepal Telecom has extended its prepaid roaming services to 62 countries through partnerships with 89 international operators. The expansion allows users to access voice, data, and SMS services in multiple destinations, including India, the USA, and the UAE. The company expects the move to enhance connectivity for Nepalis traveling abroad.
Local government announces relief for windstorm victims
Pauwadungma Rural Municipality in Bhojpur has decided to provide immediate relief to families affected by a recent windstorm. Each affected household will receive Rs 20,000, following an on-site assessment of damages. Officials said the support aims to help families, particularly those with vulnerable housing structures, begin repairs without delay.
Windstorm destroys banana crops worth Rs 500 million in Nijgadh
A powerful windstorm has caused massive damage to banana plantations in Nijgadh Municipality, affecting around 400 farmers and destroying crops worth over Rs 500 million. The disaster impacted more than 73 hectares of land. While insured farmers may receive compensation, those without formal land registration face significant financial losses.
KMC launches free parking service at Dharahara area
Kathmandu Metropolitan City has introduced free parking facilities for both two-wheelers and four-wheelers at the Dharahara complex. The facility can accommodate over 700 motorcycles and 260 cars and operates during daytime hours. Authorities say the initiative aims to ease urban congestion while ensuring safety through surveillance and proper infrastructure.
Mechi customs collects Rs 11.58 billion in eight months
The Mechi Customs Office has collected Rs 11.58 billion in revenue during the first eight months of the current fiscal year, achieving over 96 percent of its target. Monthly collections have also exceeded expectations, driven largely by customs duties and value-added tax on imports.
Hydropower firm supports sports infrastructure in Raghuganga
Tundi Power Company has invested around Rs 4 million in developing basketball facilities in Raghuganga Rural Municipality-6 under its corporate social responsibility initiative. A permanent concrete court has been built in Raikhor, while an existing playground in Kotgaun has been upgraded. Local authorities say the initiative will promote sports activities and create better recreational opportunities for youth in project-affected areas.
Jumla rural municipality speeds up major development projects
Tila Rural Municipality in Jumla has accelerated work on 12 major infrastructure projects, including road upgrades and river embankments. While large-scale contracted projects are nearing completion, smaller projects led by consumer committees have progressed slowly due to administrative delays.
Private investment in floriculture sector nears Rs 9 billion
Private sector investment in Nepal’s floriculture industry has reached approximately Rs 8.83 billion, spanning 270 hectares across 52 districts. According to the Floriculture Association Nepal, the sector now employs over 53,500 people. While domestic production meets demand during most seasons, the country still relies on imports during Tihar. Despite export earnings reaching Rs 21.3 million in 2024/25, challenges such as illegal imports of plastic flowers and limited access to agricultural financing continue to hinder growth. Demand in the sector is increasing by 10 to 15 percent annually.
Nepal and Germany begin 220 kV transmission line project
Nepal Electricity Authority, in collaboration with the German government, has launched the Lekhnath-Damauli 220 kV transmission line project. The project includes a 45-kilometer double-circuit line and modern substations, with a capacity of 1,000 MW. It is expected to strengthen electricity transmission and support hydropower generation.
Dhauligad drinking water project delayed over equipment approval
The Rs 1.26 billion Dhauligad Drinking Water Project in Jumla remains incomplete even after five years, despite reaching 80 percent physical progress. The delay stems from pending approval to procure specialized pipes required for high-altitude conditions to prevent water freezing. As a result, nearly 60,000 residents are still awaiting access to the planned “one house, one tap” service.
Gandaki province allocates Rs 14 million for tourism projects in Myagdi
The Gandaki Province government has earmarked Rs 14 million for 24 tourism infrastructure projects in Myagdi this fiscal year. Several projects, including key trekking routes and tourism sites, have already been completed, while others are in progress. The initiative aims to boost local tourism and improve access to religious and natural attractions.
Global bids invited for Gorusinghe-Chandrauta road expansion
The Department of Roads has called for international bids to expand a 19.2-kilometer section of the East-West Highway. The project will include multiple lanes, bridges, and underpasses, aiming to improve connectivity and traffic flow under the Asian Highway initiative.
Road upgrades worth Rs 495 million underway in Baglung
The Baglung Road Division Office is implementing 11 road projects worth Rs 495.4 million across the district. Major road sections have achieved significant progress, with some nearing completion. Officials say most projects are now entering the final phase of blacktopping.
Nagdhunga tunnel management process reaches final stage
The process of selecting an international firm to manage the Nagdhunga-Sisnekhola tunnel has entered its final phase. Financial proposals from shortlisted companies will be opened soon, and the selected firm will oversee operations, maintenance, and safety for five years. The tunnel is expected to ease traffic congestion and reduce travel time into Kathmandu Valley.
Flora expo begins in Kathmandu with 83 stalls
The 27th Flora Expo has commenced at Bhrikutimandap in Kathmandu, featuring 83 exhibitionstalls showcasing flowers, plants, and agricultural tools. Organizers expect around 60,000 visitors and a turnover of Rs 12 million during the four-day event.
Baitadi prepares for second national economic census
An office has been established in Baitadi to carry out preparations for the second National Economic Census. Enumerators and supervisors will soon be deployed to collect detailed data on businesses, employment, and investment, which will help assess the district’s economic status.
Comment