KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic snapshot reflects a pattern of structural imbalance and uneven policy effectiveness: a widening trade deficit driven by heavy reliance on imports—particularly fuel, agriculture, and consumer goods like smartphones—continues to far outpace modest export gains, even as refined oil exports rise.
Financial indicators show mixed signals, with the stock market declining despite solid turnover and gold prices climbing, suggesting cautious investor sentiment. At the same time, weak capital expenditure by provinces, underperforming public projects, and unused infrastructure point to persistent inefficiencies in public spending and governance.
While revenue collection, hydropower progress, and regulatory reforms indicate areas of momentum, shifting consumption trends (such as declining EV imports and rising petrol vehicle demand) and rising import dependence underscore deeper vulnerabilities in Nepal’s economic structure and policy execution.
Trade deficit widens to Rs 1.27 trillion in nine months
Nepal’s trade deficit reached Rs 1.267 trillion during the first nine months of the fiscal year 2025/26. Imports totaled Rs 1.490 trillion, far exceeding exports of Rs 222 billion. Petroleum products and agricultural goods dominated imports, with diesel alone accounting for Rs 103 billion. Agricultural imports stood at Rs 317 billion, while smartphones emerged among the top five imported goods at Rs 25.62 billion.
NEPSE drops 17.91 points as turnover reaches Rs 5.77 billion
The Nepal Stock Exchange (NEPSE) declined by 17.91 points on Tuesday, settling at 2,807.31, marking a 0.63% decrease. The Sensitive Index also fell by 3.07 points to 470.63, with most sector indices closing lower. A total of 13.01 million shares from 347 companies were traded through 95,800 transactions, generating a turnover of Rs 5.77 billion—slightly higher than the previous day. Only the hotel and tourism sector posted gains, rising 1.16%, while hydropower, finance, and non-life insurance led the losses. Overall, 215 companies saw declines, 48 gained, and 6 remained unchanged.
Gold rises by Rs 1,600 while silver edges lower
Gold prices increased by Rs 1,600 per tola, reaching Rs 301,300, according to the Federation of Nepal Gold and Silver Dealers’ Association. In contrast, silver prices declined by Rs 30 per tola, settling at Rs 5,160.
Smartphone imports surge to Rs 33.82 billion
Nepal imported 1.67 million smartphones worth Rs 33.82 billion during the review period, up from Rs 25.38 billion last year. China remained the largest supplier, accounting for the majority of imports. The government collected over Rs 6.30 billion in customs revenue from these imports.
Rice imports cross Rs 32.5 billion in nine months
The country imported paddy and rice worth over Rs 32.51 billion during the review period. Data from the Department of Customs shows that 638,787 tons of rice-related products were brought in. Imports of Basmati rice rose to 59,819 tons valued at Rs 6.81 billion, while paddy seed imports nearly tripled to 851 tons worth Rs 380 million.
Refined oil exports exceed Rs 100 billion
Exports of refined oil reached Rs 102.76 billion in the first nine months of the fiscal year. Soybean oil dominated exports with Rs 90.71 billion, reflecting a significant year-on-year increase. However, imports of raw materials remained high, with crude soybean oil imports at Rs 96.72 billion and total crude oil imports for processing reaching Rs 121 billion.
Birgunj customs collects Rs 177.66 billion in nine months
The Birgunj Customs Office collected Rs 177.66 billion in revenue during the first nine months of the fiscal year, marking a 10% increase from last year. However, this represents only 89% of the target set for the period. Monthly collections peaked at Rs 22.82 billion in mid-March to mid-April.
Electric vehicle imports decline by nearly 10%
Electric vehicle imports dropped by about 10% to 7,173 units, valued at Rs 16.66 billion. In contrast, petrol car imports rose sharply by over 50%, reaching 4,140 units, indicating a shift in consumer preference. EV imports generated Rs 10.11 billion in revenue.
NEA Bharatpur blacklists 277 customers over unpaid dues
The Nepal Electricity Authority (NEA) distribution center in Bharatpur has blacklisted 277 customers for unpaid electricity bills totaling Rs 10.4 million. Power supply to 1,826 users has been disconnected for non-payment exceeding six months. The center currently serves 74,876 customers and has outstanding dues of Rs 490.4 million.
Lumbini province spends just 32.36% of capital budget
Lumbini Province utilized only 32.36% of its capital budget in the first nine months. Out of Rs 23.47 billion allocated, only Rs 7.95 billion was spent. Overall budget expenditure stood at 34.31%. The Ministry of Health recorded the highest spending, while other ministries, including Home Affairs, lagged significantly.
Karnali transport offices collect Rs 258 million in revenue
Transport offices in Karnali Province generated Rs 258.1 million in revenue during the review period. The Surkhet office contributed the largest share, followed by Chaurjahari and Jumla. Vehicle tax was the primary revenue source, supplemented by registration and route permit fees.
Government amends financial rules to boost budget execution
The government has revised the Financial Procedures and Fiscal Responsibility Rules, 2021, introducing the Third Amendment Rules, 2026. The amendment allows accounting officers in various agencies to manage capital fund transfers directly, aiming to improve development spending and streamline administrative processes while maintaining accountability.
Nepal-India border sealed for 72 hours over West Bengal elections
The eastern border at Kakadvitta has been closed for 72 hours starting Monday evening due to the West Bengal Legislative Assembly elections in India. Movement through the Panitanki crossing has been suspended until April 23. However, exceptions have been made for medical emergencies, urgent travel, and tourists returning home with valid identification.
Koshi finance committee to investigate underperforming pride projects
The Finance Committee of the Koshi Province Assembly has decided to probe two major “Provincial Pride” projects that have underperformed. These include the Koshi Refreshment Center in Sunsari, which has already cost Rs 336 million in its first phase, and the Gauradaha Pond project in Jhapa, whose budget has surged from Rs 38.5 million to Rs 350 million since 2008/09. Lawmakers have expressed concerns about possible irregularities and misuse of funds, particularly in projects implemented through consumer committees. Field inspections are scheduled for April 25 and 26.
Karnali province recommends two roads for national priority status
The Karnali Province government has recommended two road projects for inclusion in national priority programs. One connects Dailekh to the center of Mahabai Rural Municipality in Kalikot, while the other is the Wadaban–Sanakhola road in Jajarkot. Both have already been identified as provincial priority projects and will now be forwarded to the National Planning Commission. The cabinet has also approved the Karnali Province Vehicle and Transport Management Regulations, 2026, aimed at improving regional transport management.
Rahughat hydropower project reaches 95% completion
The 40 MW Rahughat Hydropower Project, developed by a subsidiary of the Nepal Electricity Authority, has achieved 95% physical progress. Major works, including the 6,270-meter tunnel and dam construction, are complete, with equipment installation nearing completion. The project, funded through a concessional loan from the Export-Import Bank of India along with government and NEA investment, is expected to begin test production by June.
Consumer protection department intensifies market monitoring in Kathmandu
The Department of Commerce, Supplies and Consumer Protection has stepped up market inspections in Kathmandu to protect consumer rights. On Monday, it carried out extensive monitoring in wards 1 and 30 of Kathmandu Metropolitan City, focusing on areas such as Durbar Marg and Kamalpokhari. Following the inspections, several businesses were issued directives under the Consumer Protection Act, 2018 and its regulations. The monitoring was conducted in coordination with consumer rights groups and stakeholders.
Shree Airlines cleared for regular international flights
The Civil Aviation Authority of Nepal (CAAN) has granted Shree Airlines approval to operate regular international flights starting April 17. Previously limited to charter services, the airline has now sought government designation to fly to India and Bangladesh. With a fleet of 17 aircraft, Shree becomes the second private carrier after Buddha Air to receive such authorization. The airline plans to expand its fleet with narrow-body aircraft and recently conducted a demonstration flight to Kolkata.
Aatmanirbhar microfinance announces 14.25% bonus shares
Aatmanirbhar Laghubitta Bittiya Sanstha has declared a 14.25% bonus share distribution from its total 15% dividend. The decision was approved during its seventh annual general meeting, along with a 0.75% cash dividend for tax purposes. The institution reported loan investments of Rs 1.553 billion and savings collection of Rs 989.7 million in the last fiscal year, with its paid-up capital reaching Rs 78.3 million.
Mount Everest Power to issue Rs 258 million IPO
Mount Everest Power Development is set to launch its IPO from April 30, issuing 2.58 million shares worth Rs 258 million, equivalent to 30% of its issued capital. The initial offering includes allocations for Solukhumbu locals and Nepali workers abroad. Investors can apply for a minimum of 10 units at Rs 100 per share, with NIMB Ace Capital managing the issue.
Covid holding centers worth nearly Rs 2 billion lie unused at border points
Infrastructure built during the COVID-19 pandemic at eight major border crossings across Nepal remains largely unused, leaving investments of nearly Rs 2 billion idle. Temporary isolation facilities constructed in Gaddachauki, Gauriphanta, Jamunaha, Belahiya, Krishnanagar, Kakadvitta, Birgunj, and Biratnagar—designed as 1,000-bed centers with medical support—have not been operational for years. In Jhapa alone, structures worth around Rs 250 million and 1,000 oxygen cylinders remain unused. Similar neglect is reported elsewhere, with buildings deteriorating due to poor maintenance and lack of use. Officials say the centers are still under guard but remain idle due to delays in deciding operational models and weak coordination among authorities, raising concerns over inefficient public spending.
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