KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape this week reflected a mix of market caution, regulatory tightening, and institutional reform. While NEPSE extended its losing streak for a fourth consecutive week and gold prices retreated sharply after hitting a record high, policymakers focused on strengthening governance through new NRB rules linking bank CEOs’ compensation to performance and stricter oversight of foreign employment agencies.
Authorities also intensified enforcement measures, suspending customs officials over EV clearance irregularities, recovering industrial arrears through utility disconnections, and stepping up traffic law enforcement. At the same time, development and social initiatives continued to advance, with progress in hydropower infrastructure, community development projects, employment generation programs, and preparations for women-focused public transport services.
Together, these developments suggest an economy navigating short-term market uncertainty while pursuing longer-term improvements in governance, accountability, infrastructure, and public service delivery.
NEPSE records fourth consecutive weekly decline despite final-day recovery
The Nepal Stock Exchange (NEPSE) ended the week in negative territory for a fourth straight week, despite posting a slight gain on June 19. The benchmark index fell 21.91 points over the five trading sessions to close at 2,702.11. The market dropped 12.26 points on June 15 and another 6.31 points on June 16 before registering a negligible gain of 0.08 points on June 17. A further decline of 5.06 points on June 18 pushed the index to its weekly low of 2,700.47. The market recovered marginally on the final trading day, gaining 1.63 points amid stronger trading activity. Weekly turnover fluctuated, declining from Rs 4.41 billion at the start of the week to Rs 3.41 billion on June 18 before rising to Rs 4.53 billion on June 19. Investor sentiment remained largely subdued, with losing stocks outnumbering gainers and most sectoral indices ending lower. The Sensitive Index also slipped from 466.13 points to 463.98 during the week.
Gold hits record high before sharp weekly correction
Gold prices experienced significant volatility in the domestic market during the week, reaching an all-time high before recording the largest single-day decline of the period. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold climbed to a record Rs 298,500 per tola (11.66 grams) on June 16 before dropping Rs 10,500 on June 19 to close at Rs 286,700 per tola. The precious metal opened the week at Rs 293,200 per tola on June 14 and surged by Rs 5,000 the following day. After reaching its peak, prices gradually declined, with losses accelerating on the final trading day. Overall, gold ended the week Rs 6,500 lower than its opening price.
Silver also followed a downward trajectory. After rising from Rs 4,895 per tola on June 14 to Rs 5,015 on June 15, the metal steadily lost value and closed at Rs 4,640 per tola on June 19, marking a weekly decline of Rs 255 per tola.
Energy minister inspects 69-megawatt Marsyangdi powerhouse
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha visited the Marsyangdi Hydroelectric Project powerhouse for an on-site technical review. During the inspection, he examined key electrical systems, civil structures, and operational equipment to assess plant performance and safety standards. The minister stressed the importance of operating hydropower projects in ensuring the country’s energy security and urged technical teams to maximize generation capacity. Project officials briefed him on safety measures and operational performance at the facility, which contributes 69 megawatts of electricity to the national grid.
NRB introduces CEO pay cap, ties part of compensation to performance
Nepal Rastra Bank (NRB) has unveiled a new directive limiting the salaries, allowances, and benefits of chief executive officers (CEOs) in an effort to improve transparency and corporate governance across the banking sector. Under the revised framework, banks must establish an independent committee to determine executive compensation. CEO remuneration will be capped based on a percentage of either the institution’s assets or its total employee expenditure, whichever is lower. Up to 20 percent of a CEO’s compensation may be linked to performance indicators, including net profit, return on assets, and management of non-performing loans. The directive also limits executive perks to one vehicle, one mobile phone, and one laptop.
Labor Department mandates welfare monitoring of Nepali workers abroad
The Department of Foreign Employment has directed all licensed manpower agencies to regularly monitor the status and well-being of Nepali workers employed overseas. The move follows instructions from the Prime Minister’s Office to address recurring complaints related to contract violations, unpaid wages, inadequate accommodation, and forced labor. Under the new directive, recruitment agencies must conduct regular monitoring based on workers’ departure lot numbers. Agencies are also required to maintain monthly contact with five to ten workers from each deployment group and gather verifiable information on their working and living conditions.
Madhesh collects over Rs 30 billion in revenue and transfers
The Madhesh Province Ministry of Finance recorded total revenue and federal transfers amounting to Rs 30.171 billion over the past 11 months. Internal revenue sources contributed Rs 4.593 billion, with vehicle registration fees generating Rs 2.015 billion and land registration charges accounting for Rs 1.181 billion. The province also received Rs 7.756 billion through value-added tax revenue sharing and Rs 7.061 billion in fiscal equalization grants from the federal government.
Government prepares free Blue Bus service for women commuters
The Ministry of Physical Infrastructure and Transport has begun technical preparations to introduce dedicated “Blue Bus” services for women across all seven provinces. The initiative, included in the government’s 100-day action plan, aims to deploy 25 buses in its initial phase. Of these, seven buses will operate in the Kathmandu Valley in partnership with Sajha Yatayat, while the remaining 18 will be allocated to regional transport operators. To enhance passenger safety and help prevent gender-based violence, transport agencies have equipped 111 Sajha buses, 46 Mahanagar buses, and three Panchpokhari Sunolo buses with CCTV systems and dual dash cameras.
Gandaki traffic fines generate more than Rs 126 million
The Nepal Police Highway Security and Traffic Management Office in Pokhara collected Rs 126.9 million in traffic fines during the past 11 months. Records up to June 14 show that authorities issued 141,630 traffic citations across 11 districts of Gandaki Province. Overcrowded passenger vehicles accounted for the highest number of violations, with 18,827 cases generating Rs 16.4 million in penalties. Police also fined 11,969 motorists for driving under the influence, collecting over Rs 6.5 million, while 7,023 overloaded cargo vehicles were penalized, generating more than Rs 9.4 million.
Customs suspends 13 officials over EV clearance irregularities
The Department of Customs has suspended 13 staff members at the Rasuwa Customs Office following allegations of irregularities in the customs clearance of electric vehicles (EVs). The action comes after an internal review identified procedural shortcomings in inspection and clearance processes. The department has also recommended legal proceedings against several EV importers, including Laxmi E-Mobility, Cimex Inc., CG Motors, Puja International Nepal, and Puja Construction Nepal, as well as a number of customs agents. Investigations are continuing to determine the scale of the alleged misconduct and any violations of customs regulations.
Kathmandu traffic police fine over 2,400 drivers in one day
The Kathmandu Valley Traffic Police Office took action against 2,458 motorists for various traffic violations within a 24-hour period, collecting more than Rs 1.9 million in fines. Among those penalized were 155 drivers for driving under the influence, 87 for operating unauthorized ride-sharing services, 124 for violating traffic signals, and 157 for speeding. Traffic officers also cited 80 drivers for lane discipline violations, 108 for using horns in restricted areas, 98 for illegal parking on sidewalks, and 22 for operating vehicles deemed mechanically unfit. The enforcement drive was launched in response to increasing road safety concerns.
Industrial Management recovers Rs 40 million in arrears through power disconnections
Industrial Districts Management has recovered Rs 40 million in overdue payments after disconnecting electricity supply to defaulting industries in the Hetauda Industrial Area. Power lines were cut to 60 factories that had failed to pay long-pending land lease charges, prompting many operators to settle their dues and resume production. According to official records, 131 industrial units had accumulated lease arrears totaling Rs 130 million. Although enforcement activities were halted over the weekend, authorities said power disconnections will resume on Monday for businesses that have yet to clear their outstanding payments.
Employment fairs help 285 youths secure jobs in Jhapa
Employment fairs organized by Arjundhara Municipality and Birtamode Municipality have facilitated job placements for 285 unemployed young people. The three-day employment fair in Arjundhara, held from June 17 to June 19, helped 121 participants obtain jobs in sectors such as hospitality, security, and retail. The municipality also provided skills training to 250 beauticians, 300 electricians, and 125 computer technicians. Earlier, a two-day employment fair in Birtamode received 1,076 applications and enabled 164 job seekers to secure employment with local industries and private companies.
Tanahu Hydroelectric Project advances seven community development initiatives
The 140-megawatt Tanahu Hydroelectric Project is currently implementing seven corporate social responsibility (CSR) projects in areas affected by its operations. In April 2026, project authorities completed two community infrastructure initiatives: a drainage system along the Kilchowk branch road in Myagde Rural Municipality-3 and improvements to a drinking water supply system in Rishing Rural Municipality-1. These projects brought the total number of completed community development programs to 96. Ongoing works include the construction of a motorable bridge over the Phedikhola River in Bhimad Municipality-5, expansion of facilities at Dipak Secondary School, and the construction of retaining walls to protect local infrastructure.
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