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 developments present a cautiously optimistic outlook, with stronger investor confidence reflected in the continued rise of the NEPSE despite lower trading turnover, alongside the government’s renewed push to deepen capital market reforms. At the same time, authorities are prioritizing budget execution, infrastructure expansion, logistics modernization, and agricultural input distribution to strengthen long-term economic growth.
Revenue collections from customs, inland revenue, and real estate indicate resilient domestic economic activity, although persistent trade deficits and below-target revenue performance highlight ongoing structural challenges. Policy measures to accelerate hydropower projects, improve digital public services, tighten market regulation, and expand concessional financing for women entrepreneurs signal an increased focus on governance and productivity.
However, issues such as service disruptions, illicit trade, drug trafficking, wildlife-related losses, and the financial impact of disease outbreaks underscore the need for stronger institutional capacity and risk management to sustain Nepal’s economic momentum.
NEPSE rises 41.70 points despite lower turnover
The Nepal Stock Exchange (NEPSE) advanced by 41.70 points, or 1.55 percent, to close at 2,719.24 on Monday, extending its gains despite weaker trading turnover. The Sensitive Index climbed 0.90 percent to 472.60, while both the Float Index and Sensitive Float Index also posted gains. Shares worth Rs 5.512 billion from 343 listed companies were traded through 67,155 transactions. Share prices of 239 companies increased, while 32 declined and five remained unchanged. All sectoral indices, except the mutual fund index, ended higher, with the manufacturing and processing and hydropower sectors leading the rally. Ankhu Khola Hydropower recorded the highest turnover and trading volume.
Gold trades at Rs 284,600 and silver at Rs 4,320
Gold and silver prices increased slightly in the domestic market on Monday. The price of gold rose by Rs 600 per tola (11.66 grams) to Rs 284,600, while silver gained Rs 80 per tola to reach Rs 4,320. The price of 10 grams of gold was fixed at Rs 244,000. On the previous trading day, gold was priced at Rs 284,000 per tola and silver at Rs 4,240 per tola.
Prime Minister Shah prioritizes capital market reform
Prime Minister Balendra Shah met with capital market stakeholders and regulators to reaffirm the government’s commitment to strengthening the capital market as a key driver of economic growth. Stressing the importance of entrepreneurship and employment generation, he called for a professional and credible market while maintaining a zero-tolerance stance against malpractice. Stakeholders recommended wide-ranging reforms, including improvements to the IPO process, better price discovery mechanisms, and policies aimed at increasing daily market turnover beyond Rs 30 billion. They also urged easier access to credit for margin trading, tax relief on investment losses, and greater institutional participation. Regulators informed the meeting that the Capital Market Policy 2026/27 and structural reforms to the Nepal Stock Exchange (NEPSE) are already in progress.
Finance minister begins budget implementation discussions
Finance Minister Swarnim Wagle has launched consultations on implementing the fiscal year 2026/27 budget. He chaired a meeting at the Finance Ministry’s Subarna Hall with secretaries from major ministries to discuss the execution strategy. The meeting was attended by National Planning Commission Vice-Chairman Gunakar Bhatta, Finance Secretary Ghanshyam Upadhyaya, and senior officials from key ministries, including Infrastructure, Industry and Commerce, Agriculture, Health, Education, Foreign Affairs, Culture, Tourism and Civil Aviation, Labour, Women and Children, Home Affairs, and Defence.
First rail cargo service from Kolkata arrives in Biratnagar
Biratnagar Customs Yard received its first rail cargo shipment from Kolkata Port on Monday, marking the expansion of rail-based transportation for third-country imports beyond the Birgunj customs point for the first time. The train carried 40 containers of raw materials for Swastik Oil Industries and used the Electronic Cargo Tracking System (ECTS) to ensure secure transit. Coordinated by the Nepali Consulate General and the Container Corporation of India Limited, the new service is expected to cut transit time to around 24 hours and reduce transportation costs, improving the competitiveness of industries in eastern Nepal.
Govt begins distribution of 1,250 metric tons of DAP fertilizer
The Ministry of Agriculture, Forest and Environment has started distributing 1,250 metric tons of DAP fertilizer. The shipment is part of a larger procurement of 30,000 metric tons secured through a global tender, which arrived at Kolkata Port, India, on July 10, 2026. The Agricultural Inputs Company is overseeing the transportation of the remaining fertilizer to Nepal after packaging operations at the port are completed.
Transport department services to remain disrupted until July 24
The Department of Transport Management has announced that its services will remain partially disrupted until July 24 while it upgrades its digital system to implement revised tax rates and migrate its database. According to the department, the temporary interruption is necessary to improve the security, efficiency, and user experience of its digital platform. The update includes incorporating and reconciling new provincial tax rates, a process expected to take about one week. The department has requested the public to visit transport offices only for urgent matters before July 24 and to seek routine services after the system upgrade is completed.
Biratnagar Customs records Rs 88 billion in exports
The Biratnagar Customs Office reported exports worth Rs 88.728 billion and imports totaling Rs 241.659 billion during the fiscal year 2025/26. Processed soybean oil continued to be the leading export commodity, accounting for Rs 49.988 billion. The office collected Rs 35.376 billion in revenue, meeting 85.56 percent of its annual target, although the trade deficit remained substantial. Overall trade volume increased by 17 percent compared with the previous fiscal year, reflecting growth in both imports and exports.
Govt warns businesses against selling substandard and illicit goods
The Department of Commerce, Supplies and Consumer Protection has warned businesses against the sale and distribution of unlabeled, substandard, adulterated, and smuggled goods during the fiscal year 2026/27. Following reports of illegal trade involving daily essentials, beverages, and clothing through physical stores and online platforms, the department said it would intensify market inspections to safeguard consumer rights under the Consumer Protection Act, 2018, and the Consumer Protection Rules, 2020. Businesses across the supply chain have been instructed to comply fully with regulations, with authorities cautioning that violations affecting consumer health will invite the strictest legal action.
Bhairahawa Customs Office collects Rs 105 billion in revenue
The Bhairahawa Customs Office collected Rs 105.02 billion in revenue during the fiscal year 2025/26, achieving 92.4 percent of its annual target of Rs 113.67 billion. The collection represents a 13.2 percent increase compared to the Rs 92.31 billion generated in the previous fiscal year. Automobile imports remained the largest source of customs revenue, contributing around 25 percent of the total. For fiscal year 2026/27, the office has been assigned a higher revenue target of Rs 122 billion.
Sudurpashchim targets GDP of Rs 629.91 billion by 2030/31
Sudurpashchim Province aims to raise its Gross Domestic Product (GDP) to Rs 629.91 billion by the fiscal year 2030/31 under its Second Periodic Plan (2026/27–2030/31). The plan projects higher output across the primary, secondary, and tertiary sectors, with targets of Rs 161.79 billion, Rs 82.97 billion, and Rs 296.44 billion, respectively. The province’s GDP stood at Rs 441.14 billion in the base year 2024/25, and authorities expect an average annual economic growth rate of 6.8 percent during the plan period.
Real estate revenue reaches Rs 11.9 billion in one month
The Department of Land Management and Archive collected Rs 11.948 billion in revenue from real estate transactions between June 15 and July 16, marking the highest monthly collection of the fiscal year 2025/26. Analysts attributed the sharp increase in property transactions to the expected rise in capital gains tax that took effect on July 17. The figure also represents the highest monthly revenue from real estate transactions since the Gorkha earthquake and the COVID-19 pandemic period.
30,000 female entrepreneurs benefit from subsidized loans
According to Nepal Rastra Bank, 30,000 women entrepreneurs have received subsidized loans totaling Rs 29.79 billion under the government’s concessional credit program. As of June 14, a total of 52,119 borrowers had received Rs 78.25 billion in subsidized loans across all categories, supported by Rs 39.27 billion in government-funded interest subsidies. Among financial institutions, Agriculture Development Bank disbursed the highest amount, providing Rs 10.22 billion to 6,234 beneficiaries.
Pokhara Inland Revenue Office collects Rs 7 billion in revenue
The Inland Revenue Office in Pokhara collected Rs 7.191 billion in revenue during the fiscal year 2025/26, achieving 92.02 percent of its annual target. The collection was Rs 530 million higher than the Rs 6.618 billion recorded in the previous fiscal year. Income tax contributed the largest share at Rs 3.944 billion, while Value Added Tax (VAT) surpassed its target with a performance rate of 104.10 percent. Officials attributed the shortfall in overall target achievement to economic disruptions caused by external conflicts and domestic challenges.
Govt categorizes stalled hydropower projects for faster implementation
The Nepal Electricity Authority has decided to classify stalled hydropower projects into four categories based on construction progress and regulatory compliance to accelerate their implementation. Group A includes projects that have fulfilled all required obligations, while Group B covers projects delayed due to grid connectivity issues or force majeure. Group C consists of projects that have failed to meet major milestones, and Group D includes projects with terminated licenses. The authority will closely monitor Group B projects and begin contract cancellation procedures for Group C projects that fail to demonstrate satisfactory progress. The initiative is intended to improve transparency and ensure the timely completion of hydropower projects.
Construction of Rs 5.5 billion Ratuwa Bridge moves toward completion
The Department of Roads is making steady progress on the 585-meter-long Ratuwa Bridge over the Ratuwa River in Jhapa under a three-bridge contract package worth approximately Rs 5.5 billion. Designed by the South Korean firm Sosung, the modern arch-steel truss bridge is now more than 50 percent complete. Built with high-grade imported steel and fabricated at a dedicated facility in Morang, the bridge is expected to offer long-term durability. Scheduled for completion by February 2, 2027, it will replace a 50-year-old structure and is designed to serve traffic for the next five decades.
Chitwan National Park distributes Rs 12.9 million in wildlife damage compensation
Chitwan National Park provided Rs 12.9 million in compensation to local communities during the last fiscal year for damages caused by wildlife. The relief included around Rs 3 million for medical treatment of injured victims, Rs 5 million for the families of five people who lost their lives, Rs 2.3 million for livestock losses, and Rs 2.1 million for crop damage. Additional compensation was also provided for damage to stored grain, poultry, and infrastructure.
Dhanusha traffic police collect Rs 11.4 million in revenue
The District Traffic Police Office in Dhanusha collected Rs 11.4 million in revenue during the fiscal year 2025/26 by taking action against 12,603 vehicles for traffic violations. In the previous fiscal year, authorities had penalized 28,538 vehicles, generating Rs 22.1 million in revenue. During the year, 1,358 road accidents resulted in 82 fatalities and 2,198 injuries. Police said that regular monitoring and increased public awareness of road safety have helped reduce the overall death rate despite a slight increase in the number of accidents.
Two foreign women arrested in Thamel with cocaine worth Rs 149 million
The Narcotics Control Bureau (NCB) of Nepal Police arrested two foreign women in Thamel, Kathmandu, with 4.258 kilograms of cocaine valued at an estimated Rs 149 million. The suspects are 62-year-old Colombian national Joneth Garzon Caicedo and 37-year-old Indian national Rebecca Pulle. According to NCB Co-Spokesperson DSP Jeeban Niraula, the Colombian woman arrived in Nepal on July 15 aboard a Qatar Airways flight via Doha, concealing the cocaine in a false compartment of her suitcase. Investigators said the Indian national had traveled to Nepal to receive the shipment. The bureau also revealed that the smugglers used a sophisticated method by mixing liquid cocaine with silicone and molding it into the shape of clothing to avoid detection.
Bird flu closure causes Rs 30 million loss for Central Zoo
The Central Zoo in Jawalakhel, Lalitpur, suffered an estimated Rs 30 million in losses after remaining closed for 27 days following a bird flu outbreak. The zoo shut its gates after the virus was detected on June 19 and implemented extensive sanitation and animal care measures before reopening on July 17. Despite setting an annual revenue target of Rs 210 million, the prolonged closure and lower visitor turnout after reopening are expected to make it difficult to meet that goal.
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