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 reveal a mixed picture of progress, structural weaknesses, and policy challenges. While rising gold and silver prices, strong tourism flows in Mustang, robust hotel occupancy driven by the RSP convention, expanding government courier services, and solid corporate earnings from firms such as Shivam Cement and Chaudhary Group companies point to resilience in consumer demand and economic activity, significant concerns persist.
The suspension of health insurance services in private hospitals due to a Rs 16 billion funding gap, the high number of migrant worker deaths abroad, criticism of Sudurpaschim’s politically driven budget allocations, and the government’s review of nearly Rs 198 billion in agricultural subsidies highlight ongoing governance and public service delivery issues.
At the same time, efforts to strengthen banking trust, promote high-value exports, improve hydropower project oversight, and implement skill certification for migrant workers suggest a greater focus on accountability, competitiveness, and institutional reform.
Overall, the developments underscore an economy balancing pockets of growth and modernization against persistent challenges in policy implementation, fiscal management, and social protection.
Gold and silver prices increase in the domestic market
Gold prices in Nepal rose by Rs 600 per tola (11.66 grams), according to the Federation of Nepal Gold and Silver Dealers’ Association. Hallmark gold is now trading at Rs 287,300 per tola, compared with Rs 286,700 on June 19. Silver prices also moved higher, increasing by Rs 50 per tola to Rs 4,690, up from Rs 4,640 in the previous trading session.
Government reviews distribution of Rs 197.73 billion in agricultural subsidies
The government has initiated a comprehensive review of nearly Rs 197.73 billion in agricultural subsidies distributed over the past ten years to assess their effectiveness, possible misuse, and actual impact. The Ministry of Agriculture and Livestock Development has formed a five-member high-level committee to examine subsidy programmes implemented since fiscal year 2015/16. The Office of the Auditor General has observed that despite steadily increasing subsidy allocations, agricultural production has not improved in line with expectations.
Finance Minister Wagle calls on banks to become trusted partners of the public
Finance Minister Swarnim Wagle has urged banks to position themselves as reliable partners of Nepali citizens, stressing that their core responsibility is to advance public welfare and protect the interests of the people. Addressing the inauguration of the new Bagmati Provincial Office and City Office building of Nepal Bank Limited in Hetauda, he highlighted the institution’s distinguished history of more than 80 years. Noting that Nepal Bank has been serving Hetauda since 1968, the minister encouraged employees to uphold the bank’s longstanding values and heritage while adapting to modern, technology-based banking practices.
Industrial area businesses pay Rs 320 million in rent amid ongoing dispute
Industries operating within industrial zones have paid Rs 320 million in rent following enforcement measures taken by Industrial Area Management Limited. After a seven-day notice was issued on June 8, businesses began settling outstanding payments, particularly after electricity services were disconnected for non-payment. Although revised rental rates had initially left around Rs 850 million unpaid, management has now recovered Rs 320 million. Officials stated that stricter enforcement, combined with legal disputes over rental charges and utility cutoffs, prompted industries to begin making payments.
1,438 Nepali migrant workers lose their lives abroad in 10 months
According to the Foreign Employment Board, 1,438 Nepali migrant workers died overseas between the beginning of the current fiscal year and May. During the same period, 960 workers suffered injuries or illnesses, while 194 individuals were rescued or located. The remains of 905 deceased workers were returned to their home districts. The board also distributed approximately Rs 1.43 billion in financial assistance to bereaved families, with each family receiving Rs 1 million. Increasing labour migration has simultaneously raised the board’s compensation obligations and financial burden.
Government courier service expands nationwide delivery network
The Postal Services Department’s Government Courier Service has significantly expanded its operations, delivering passports, driving licences, health-related materials, and educational documents directly to citizens under the government’s 100-point reform agenda and Smart Postal initiative. As of June 18, the service had dispatched 181,843 passports and 578,053 driving licences, while home delivery had been completed for 4,642 passports and 1,081 licences. Discussions are underway with Tribhuvan University to facilitate home delivery of academic certificates, with 266 certificates already transported. In the health sector, 1,124 laboratory samples and medical supplies have been delivered. The department has also enhanced tracking systems, improved postal routes, introduced a seven-digit postal code system, and established 50 smart post offices.
Private hospitals barred from providing health insurance services
The government has suspended health insurance services at private hospitals from May 30, 2026, until further notice, except in emergency situations. According to the Health Insurance Board, the decision was driven by a severe financial shortfall, affecting insured services including outpatient care, diagnostic testing, surgeries, medicines, and routine treatment at hundreds of private hospitals and medical colleges. The board currently owes service providers approximately Rs 16 billion, with hospitals repeatedly raising concerns over delayed reimbursements and administrative bottlenecks.
Government focuses on promoting high-value, low-volume exports
In response to rising transportation costs linked to Nepal’s geography and infrastructure challenges, the government has decided to prioritise exports of high-value, low-volume products. Under the implementation framework of the Trade Policy 2024, the Ministry of Industry, Commerce and Supplies has proposed support measures such as geographical indication recognition, organic certification, and quality certification to strengthen export promotion. The plan also aims to identify and prioritise additional products within this category to enhance Nepal’s export competitiveness.
NEA requires hydropower developers to submit construction progress reports
The Electricity Trade Department of the Nepal Electricity Authority (NEA) has instructed hydropower developers with Power Purchase Agreements (PPAs) and projects currently under construction to submit mandatory progress reports. In a public notice, the department stated that quarterly reporting is a requirement under the terms of the PPA. Developers have been directed to provide updated project progress information within seven days of the notice.
NEA household consumers surpass 2.6 million amid VAT uncertainty
More than 2.6 million household customers of the Nepal Electricity Authority consume over 50 units of electricity each month. Consumption figures show that 1.99 million households use up to 20 units, 421,000 consume between 21 and 30 units, 615,000 use 31 to 50 units, 1.075 million consume 51 to 100 units, 1.089 million use 101 to 250 units, and 442,000 consume more than 250 units monthly. However, uncertainty remains regarding the application of VAT, as the Ministry of Finance has yet to clarify how the tax will be distributed among consumers.
RSP convention boosts hotel occupancy during Chitwan’s monsoon off-season
Hotels and resorts in Chitwan’s major tourism centres—Sauraha, Bharatpur, and neighbouring Gaindakot—are experiencing unusually strong occupancy rates as the Rastriya Swatantra Party (RSP) hosts its first general convention in Bharatpur. The period from mid-June to August is typically regarded as the monsoon off-season, when tourist arrivals decline and many hotels reduce staffing levels. This year, however, accommodation facilities are reporting full or near-capacity bookings, creating demand levels usually seen during peak tourism months. According to the Hotel Association Chitwan, the surge is driven by the arrival of convention delegates, party leaders, observers, media representatives, and supporters.
Saudi Arabia moves ahead with skill certification requirement for Nepali workers
The Saudi Arabian Embassy in Nepal has confirmed that the mandatory Skill Verification Program (SVP) for Nepali migrant workers will take effect on July 1, rejecting requests to delay its implementation. Saudi Ambassador Fahd Mohammad A. Mnikhr stated that the programme includes a maximum fee of USD 50 (approximately Rs 7,500), with testing facilities being expanded to Kathmandu, Lumbini, Janakpur, Narayangarh, and Mahottari. However, the Nepal Foreign Employment Entrepreneurs Association has criticised the decision and appealed to both the Prime Minister’s Office and the Ministry of Labour to intervene.
Sudurpaschim budget draws criticism over fragmented projects and political influence
The budget of Sudurpaschim Province has come under scrutiny for incorporating numerous small-scale and poorly planned projects, allegedly resulting from political bargaining among coalition partners. Although an agreement had been reached to exclude projects valued below Rs 2.5 million, the budget unveiled on June 15 did not adhere to this commitment. Provincial guidelines stipulate a minimum project value of Rs 25 million for implementation, yet hundreds of lower-value projects were included. Likewise, several building projects worth between Rs 1 million and Rs 2 million were listed despite the prescribed minimum threshold of Rs 4 million.
Mustang welcomes more than 700,000 visitors in eleven months
Mustang received over 700,000 domestic and international tourists during the first eleven months of fiscal year 2025/26. Data from the Ghansa Border Police Office show that 705,754 visitors entered the district through the Beni–Jomsom road corridor between mid-July 2025 and mid-June 2026. The figure is nearly identical to the total of 705,779 tourists recorded in the previous fiscal year, reflecting a consistent flow of travellers to the region.
Chaudhary Group firms generate Rs 1.11 billion in turnover within six months
Two companies operating under the Chaudhary Group—EOL and CG Electronics—reported a combined turnover of Rs 1.11 billion during the first six months of the current fiscal year. EOL contributed Rs 963 million, while CG Electronics generated Rs 149 million through the sale of household electrical products from various brands. Established in 2009, EOL previously recorded turnovers of Rs 2.187 billion in 2023, Rs 1.85 billion in 2024, Rs 1.749 billion in 2022, and Rs 2.012 billion in earlier years, demonstrating fluctuating annual results despite maintaining a stable position in the consumer electronics market.
Community development works progress under Tanahu hydropower project
Construction is underway on seven community-focused projects within the area affected by the 140 MW Tanahu Hydropower Project in Jhapatutar, Rishing Rural Municipality-1. As part of its community support initiatives, the project completed two schemes in April 2026, including drainage infrastructure along the Kilchok branch road in Myagde-3 and improvements to a drinking water source and pipeline network in Hokshetar, Rishing-1. Altogether, 96 community projects have been completed in the project-affected region to date.
Ncell teams up with Trip Turbo to provide travel-related discounts
Ncell has partnered with Trip Turbo to offer customers discounts on bus and flight ticket bookings, as well as selected adventure activities. Under the programme, users can receive savings of up to Rs 8,000. The offer is available to customers who purchase a package worth Rs 99 or more and can be accessed through the “Partnered Services” section of the Ncell app under Trip Turbo services.
Shivam Cement posts Rs 619 million profit in first nine months
Shivam Cement reported a net profit of Rs 619 million during the first nine months of the ongoing fiscal year. The company generated turnover of Rs 4.955 billion over the same period. In earlier years, it recorded net profits of Rs 798 million, Rs 260 million in 2024, and Rs 595 million in 2023. Annual turnover stood at Rs 7.767 billion in 2025, Rs 7.704 billion in 2024, and Rs 7.753 billion in 2023, indicating relatively stable revenue levels despite variations in profitability.
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