KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments reflect an economy in transition, marked by regulatory tightening, export-led trade growth, and efforts to attract investment while managing structural weaknesses. The government’s move to shut down unregistered e-commerce platforms signals stronger formalization and consumer protection in the digital market, while rising consultancy exports and expanding trade, driven largely by refined soybean oil, have boosted foreign exchange earnings despite a widening trade deficit fueled by high imports of petroleum and raw edible oil.
At the same time, private sector groups are lobbying for credit easing to revive domestic demand, and Nepal is pursuing external partnerships, including deeper trade ties with Portugal and continued IMF support, to stabilize growth amid investment uncertainty.
Capital market activity, infrastructure delays, and enforcement drives against non-compliant firms indicate mixed progress in governance and development, suggesting that while macro indicators show momentum in exports and services, sustainable growth will depend on structural reforms, value addition, and improved project execution.
Government to close unregistered e-commerce platforms
The Ministry of Industry, Commerce, and Supplies has endorsed the Electronic Commerce Directive, 2026, requiring all online businesses to register or face shutdown. Non-compliant firms will be granted a seven-day window before the Department of Commerce takes action. The directive obliges companies to meet tax requirements, issue electronic bills, use Nepal Rastra Bank-approved payment systems, and securely store customer data for five years. A dispute settlement committee will also be formed to address consumer grievances.
Trade growth driven by export expansion
Nepal’s foreign trade expanded by 15.76 percent in the first seven months of fiscal year 2025/26, reaching Rs 1,291.63 billion. Imports increased by 13.65 percent, while exports surged by 32.19 percent to Rs 168.14 billion. Despite the export boost, the trade deficit widened to Rs 955.34 billion. Refined soybean oil led outbound shipments, whereas crude soybean oil and petroleum products dominated imports.
NAIMA seeks higher loan-to-value ratio for auto financing
The Nepal Automobile Importers and Manufacturers Association has requested authorities to raise the loan-to-value cap for hire-purchase loans from 60 percent to 80 percent. The group argues that easing restrictions would revive vehicle sales and boost government revenue.
Nepal, Portugal agree to expand trade partnership
The inaugural session of the Nepal–Portugal Bilateral Consultation Mechanism concluded in Lisbon, where Foreign Secretary Amrit Bahadur Rai and Portuguese Secretary of State Dr. Ana Isabel Xavier discussed strengthening collaboration in trade, investment, and tourism. Nepal sought support to ease document attestation for its diaspora in Portugal and proposed opening a Portuguese embassy in Kathmandu. Rai also invited Portuguese investors to explore renewable energy projects via the Investment Board Nepal. The Portuguese side commended the Nepali community’s role in its economy, and both countries exchanged views on global issues including climate change.
Consultancy service exports generate Rs 21.9 billion
Exports of professional consultancy services have become a significant source of foreign currency earnings. In the first half of fiscal year 2025/26, Nepal earned Rs 21.9 billion from IT, engineering, management, and related services—an increase of 24.5 percent year-on-year. After accounting for Rs 2.82 billion in imports, net earnings stood at Rs 19.08 billion. Officials attribute the growth to supportive policies and rising global demand, with ambitious long-term targets set for IT service exports.
Nepal set to receive Rs 6.26 billion under IMF program
Nepal has secured a staff-level agreement with the International Monetary Fund for the seventh review of its Extended Credit Facility. Once approved, the country will receive about USD 43.2 million (Rs 6.26 billion), bringing cumulative disbursements to roughly Rs 55.73 billion. While reforms in customs and banking have progressed, projected economic growth remains modest due to investment uncertainties.
Raw edible oil imports reach Rs 93 billion
The country imported raw edible oils worth Rs 93.75 billion in seven months, while exporting processed oils valued at Rs 78.19 billion. Soybean oil accounted for the bulk of both imports and exports. Analysts note that although oil exports now comprise nearly half of total exports, the sector offers limited domestic value addition and employment benefits.
Rs 9 billion fast track project faces funding delays
The Dhangadhi–Chaitpur–Urai Bhanjyang Fast Track project remains slow due to limited budget allocation. Of the estimated Rs 9.15 billion cost, only Rs 1.77 billion has been spent so far. Although the road could significantly shorten travel distance, current funding falls short of outstanding liabilities, leaving progress restricted to minor works and bridge construction.
Two microfinance institutions apply for FPO approval
Matribhumi Laghubitta and National Laghubitta have sought approval from the Securities Board of Nepal to issue Further Public Offerings. Matribhumi plans to float over 1.14 million shares at par value, while National Laghubitta aims to issue nearly 670,000 shares at a premium rate. Both stocks continue to trade actively on the secondary market.
Gulmi administration reports weekly revenue of Rs 474,750
The District Administration Office in Gulmi collected Rs 474,750 in a week through passport services, national ID issuance, and institutional renewals. The office issued dozens of citizenship certificates and passports while maintaining transparency through regular public reporting.
Hetauda traffic police collect Rs 7.6 million in fines
The District Traffic Police Office in Makwanpur raised Rs 7.6 million in penalties over seven months, fining more than 8,400 drivers for rule violations. Although revenue declined compared to last year, authorities reported 32 fatalities in 196 accidents. Police also conducted hundreds of awareness programs to improve road safety.
Bagmati river trash barriers show dry-season success
The High-Powered Committee for Integrated Development of the Bagmati Civilization has installed waste-collecting barriers at six sites in Kathmandu at a cost of Rs 6.5 million. The floating systems effectively capture plastic and debris during the dry season. Authorities plan to assess their performance during the monsoon before expanding the initiative.
Authorities penalize water and healthcare firms
Regulatory agencies destroyed substandard water jars at a Godawari-based company for hygiene violations and fined a Birgunj healthcare firm Rs 201,000 for failing to renew registration. The actions form part of an ongoing compliance monitoring drive.
FNCCI president calls for Rs 10 billion energy investment
At the Second Indo-Nepal Trade Fair 2026 in New Delhi, FNCCI President Chandra Prasad Dhakal urged greater Indian investment in Nepal’s energy, tourism, and pharmaceutical sectors. He emphasized improved customs coordination and digital trade systems to strengthen bilateral commerce.
Samyukta Urja applies for Rs 416 million IPO
Samyukta Urja Limited has applied to issue 4.16 million shares worth Rs 416 million through an Initial Public Offering. The company operates the 21.3 MW Thulo Khola Hydropower Project in Myagdi and aims to broaden public investment in its operational energy venture.
NEA implements scheduled outages in Kathmandu
The Nepal Electricity Authority carried out planned power interruptions in multiple Kathmandu areas on Saturday. Electricity was cut in Sinamangal and Tilganga under the Baneshwor Distribution Center to address a tilted utility pole. Meanwhile, the Maharajgunj Distribution Center halted supply in Baluwatar, Banshidhara, and Hepali Height for underground cabling works linked to the valley’s distribution upgrade project. The authority expressed regret for the inconvenience caused to households and businesses.
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