KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The collection of developments reflects a complex interplay between economic pressure, governance reform, and sectoral vulnerabilities in Nepal. Rising gold and fuel prices, driven largely by international market dynamics and geopolitical tensions, are not only straining consumers but also triggering ripple effects such as cross-border fuel dependency and stalled infrastructure projects due to escalating costs.
At the same time, the government’s push to regulate private firms and NGOs signals an attempt to strengthen institutional accountability amid longstanding concerns about corruption. In the productive sectors, a mixed picture emerges: while farmers in places like Dadeldhura are adapting by shifting to more resilient and profitable activities such as sugarcane and jaggery production, others—particularly in Banke—face significant risks from plant diseases affecting mango output.
Similarly, large-scale disruptions like the bird flu outbreak underline structural weaknesses in agricultural biosecurity. Meanwhile, tourism continues to provide positive signals with the start of the spring climbing season on Mount Dhaulagiri, contributing revenue and global visibility.
However, long-delayed projects such as the Sikta Irrigation Project highlight persistent inefficiencies in development execution. Overall, the snapshot suggests an economy under pressure from external shocks and internal structural gaps, yet showing pockets of adaptation and policy response that could shape its near-term trajectory.
Gold and silver prices increase in domestic market
The prices of both gold and silver rose in Nepal on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was priced at Rs 301,000 per tola, marking an increase of Rs 1,200 from Friday’s rate of Rs 299,800 per tola on Sunday. Silver prices also went up by Rs 95, reaching Rs 5,225 per tola.
Nepal to regulate private sector and NGOs to curb corruption
The government plans to introduce regulatory bodies for private companies and non-governmental organizations to strengthen oversight and reduce corruption. This initiative, part of the Second Five-Year National Strategic Plan Against Corruption, aims to ensure that all entities operate under clear supervision. Authorities say the move will close existing gaps in regulation and enhance transparency across sectors.
Spring climbing season begins with nine summits on Dhaulagiri
The spring mountaineering season has kicked off with nine climbers successfully summiting Mt. Dhaulagiri, the world’s seventh-highest peak at 8,167 meters. The team, comprising Nepali and international climbers, reached the summit and safely returned to base camp. Authorities report that 28 climbers have received permits for the season, generating significant revenue in royalties.
Processed fuels cost more than crude oil, says NOC
Amid growing public concern over fuel prices in Nepal, the Nepal Oil Corporation (NOC) has clarified that domestic retail rates are determined by international market prices. It emphasized that refined petroleum products are naturally more expensive than crude oil, particularly because Nepal lacks its own refinery and relies on importing processed fuels. NOC spokesperson Manoj Thakur said comparisons should be made with refined fuel prices rather than crude oil. Nepal imports petroleum products from the Indian Oil Corporation (IOC), with prices revised every 15 days based on IOC rates. As of April 16, 2026, crude oil was priced at USD 99.6 per barrel, while petrol and diesel stood at USD 139.3 and USD 228.1 respectively. Typically, the price gap is modest, but recent geopolitical tensions in the Gulf have significantly widened the difference.
Rural farmers turn to sugarcane and jaggery production
Farmers in rural areas of Dadeldhura are increasingly shifting toward sugarcane farming and jaggery production due to its profitability and long shelf life. Unlike perishable crops, jaggery can be stored for years and sold when market conditions are favorable. According to Agriculture Knowledge Center chief Narendra Paneru, the sector is becoming a reliable source of income, supported by subsidy programs. Young farmer Narendra Bista from Parashuram Municipality has modernized traditional practices by setting up a sugarcane processing unit, reflecting a growing trend toward commercialization.
Rising costs threaten infrastructure projects in Chitwan
A surge in fuel prices and construction material costs has put 125 infrastructure projects in Chitwan at risk of suspension. The Infrastructure Development Office reports that contractors are seeking temporary halts due to escalating expenses and shortages of key materials like bitumen. Office Chief Birendra Kumar Chaudhary warned that if the situation persists, up to 60 percent of projects may remain incomplete. Even projects handled by consumer committees have stalled, highlighting the broader impact of inflation on development work.
Bird flu outbreak leads to mass culling in Koshi Province
A bird flu outbreak has hit major poultry farms in Koshi Province, prompting authorities to prepare for the culling of over 227,000 chickens in Sunsari and Morang districts. Officials confirmed that thousands of birds have already died, and a large workforce has been mobilized to contain the spread. The drastic measure aims to prevent further transmission to nearby areas.
Rani border point remains lenient despite stricter controls
Despite claims of tighter border enforcement, the Rani customs point in Biratnagar continues to see a steady flow of Nepali shoppers crossing into India. While stricter rules are in place at smaller border points, consumers are still drawn to Indian markets due to lower prices. The price disparity continues to drive cross-border shopping, even as authorities attempt to curb revenue leakage.
Sikta irrigation project sees limited progress over two decades
The Sikta Irrigation Project in Banke has achieved only 46 percent physical progress despite being underway for nearly 20 years since its launch in fiscal year 2061/62 BS (2004/05). Project Director Raju Acharya stated that Rs 23.77 billion has been spent so far, accounting for about 44.95 percent financial progress. For the current fiscal year, Rs 3.30 billion has been allocated, of which around Rs 1.57 billion has already been utilized, including Rs 857.79 million by the end of Chaitra. The project, which involves constructing a dam on the Rapti River in Raptisonari Rural Municipality-3, aims to irrigate 42,766 hectares of land, though only 24,000 hectares currently benefit. Officials said the project will be completed in three phases, with an estimated cost of Rs 12.8 billion for the first two phases. The cost for the third phase is yet to be determined.
Fungal disease threatens mango production in Banke
Mango farmers in Banke are facing heavy losses due to powdery mildew, locally known as Madhuwa disease. The infection, which appears during the fruiting stage, causes premature shedding and reduces yields. Agricultural experts advise early preventive measures, as treatment becomes less effective once the disease spreads. Officials warn that overall production in the district is likely to decline significantly this season.
Tanahun plans memorial park for cooperative pioneer
A park and statue will be constructed in Tanahun to honor Bakhan Singh Gurung, a pioneer of Nepal’s cooperative movement. The decision was made during an event marking his 127th memorial day in Damauli. Byas Municipality Mayor Baikuntha Neupane announced that the municipality would cover 50 percent of the project cost, while local cooperatives would contribute the remaining amount. Speakers at the event also highlighted the contributions and sacrifices of Gurung and his family in Nepal’s democratic movement and social transformation.
Fuel price gap drives Nepali vehicles to Indian border
The recent rise in fuel prices in Nepal has led to a surge of Nepali vehicles crossing into Indian border areas to refuel at lower costs. This has created fuel shortages in nearby Indian towns. Authorities in Nautanwa, Uttar Pradesh, have imposed limits on fuel sales to Nepali vehicles to control black marketing. Under the new rules, two-wheelers can purchase up to 3 liters, small vehicles 10 liters, and larger vehicles up to 20 liters. The situation has also caused tensions, with frequent disputes reported due to long queues and supply constraints.
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