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 and policy developments reflect a mixed but cautiously optimistic outlook, with the government pursuing reforms to stimulate growth while responding to fiscal, administrative, and disaster-related challenges. The stock market maintained its upward momentum and trading activity strengthened, indicating sustained investor confidence despite uneven sectoral performance.
At the same time, rising gold and egg prices point to persistent inflationary pressures affecting both investment assets and essential consumer goods. On the policy front, the government has adopted a more pragmatic approach by suspending controversial education and health equity fees, tightening public expenditure through stricter fiscal discipline, and introducing incentives to improve tax compliance.
Efforts to revive the garment industry, expand hydropower development, waive industrial registration fees in Lumbini, and deepen trade cooperation with Spain underscore a renewed focus on export promotion, industrial competitiveness, and private-sector growth. Progress in expanding the Social Security Fund and refunding small cooperative depositors signals continued attention to social protection and financial sector confidence.
However, governance challenges remain evident as several local governments failed to present their budgets on time, while disaster preparedness has become an immediate priority amid monsoon-related risks. Infrastructure and administrative bottlenecks—from stranded flood-damaged electric vehicles to foreign employment fraud and consumer protection issues—highlight the need for stronger institutional coordination. Overall, the developments suggest an economy balancing reform-driven optimism with persistent structural and implementation challenges.
NEPSE extends gains as turnover climbs to Rs 6.67 billion
The Nepal Stock Exchange (NEPSE) gained 7.25 points, or 0.26 percent, on Tuesday to close at 2,726.49, continuing its upward trend from the previous trading session. Daily turnover increased to Rs 6.67 billion from Rs 5.51 billion, with 14.92 million shares of 343 listed companies traded through 75,010 transactions. Share prices of 103 companies advanced, while 162 declined and 12 remained unchanged. Among the sectoral indices, Commercial Banks, Investment, Manufacturing and Processing, Others, and Trading posted gains, whereas eight sectors closed lower. Ridi Power Company recorded the highest turnover at Rs 557.7 million, while Everest Color emerged as the day’s top gainer.
Gold rises to Rs 285,600 and silver to Rs 4,370
Gold and silver prices increased in Nepal’s domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 1,000 per tola (11.66 grams) to Rs 285,600, up from Rs 284,600 on Monday. Silver also gained Rs 50 per tola to reach Rs 4,370. In the international market, gold was trading at around USD 4,063 per ounce.
Prime Minister Shah vows support to revive garment industry
The government has announced a series of measures to revive Nepal’s ready-made garment industry and restore its contribution to the national economy. During a high-level meeting with representatives of Garment Association Nepal at the Office of the Prime Minister, Prime Minister Balendra (Balen) Shah instructed the relevant ministries to address long-standing administrative hurdles, establish a dedicated Textile Council, and facilitate the reopening of garment factories that have remained closed for more than two decades. The Ministry of Foreign Affairs has also been directed to resolve laboratory certification issues that are limiting exports to the United States as part of broader efforts to promote exports and reduce import dependence.
Govt suspends 3 percent education and health equity fees
Prime Minister Balendra (Balen) Shah announced on Tuesday that the government has suspended the newly introduced 3 percent Education Equity Fee and Health Equity Fee following consultations with Finance Minister Swarnim Wagle. The levy had been intended to support healthcare services, education in remote areas, and health insurance programs. However, the government decided to suspend the measure in response to widespread public concern over its financial impact. It also reaffirmed its commitment to enforcing the existing policy requiring private hospitals to provide 10 percent of services free of charge and private colleges and universities to reserve 10 percent of seats for scholarships.
Egg prices rise for the second time in four days
The Nepal Layers Poultry Farmers Association has increased egg prices for the second time within four days, citing higher production costs and prevailing market conditions. Effective Tuesday, the farm-gate price of XL eggs has been raised to Rs 515 per crate, large eggs to Rs 500, and medium eggs to Rs 470, each marking an increase of Rs 50 per crate. The price of small eggs has also climbed by Rs 200 per case to Rs 2,900. Following the latest revision, the association has recommended a retail price of Rs 25 per egg. The previous price adjustment came into effect on July 18.
Finance ministry launches reward scheme to encourage bill collection
The Ministry of Finance has introduced the Taxpayer Incentive Gift Program Operating Procedure, 2026 to encourage consumers to request official invoices for purchases exceeding Rs 100. Under the new initiative, one daily winner will receive Rs 133,034, while two winners selected every two months will each receive a grand prize of Rs 1 million. Eligible consumers can register their purchase details through the Inland Revenue Department’s online portal. Prize money will be subject to a 25 percent tax deduction under the Income Tax Act, 2002, while any unclaimed prizes will be transferred to the Prime Minister’s Disaster Relief Fund.
Inland Revenue Office Tulsipur collects over Rs 4 billion
The Inland Revenue Office in Tulsipur collected Rs 4.306 billion in revenue during the fiscal year 2025/26, achieving 85.21 percent of its annual target. The collection comprised Rs 2.388 billion in income tax and Rs 1.001 billion in Value Added Tax (VAT). Serving around 100,000 taxpayers across Dang, Pyuthan, Rolpa, Salyan, Rukum East, and Rukum West, the office has been operating from a rented dharmashala after its previous building was damaged during the civil conflict.
Finance ministry tightens rules on vehicle purchases and foreign travel
The Ministry of Finance has issued new guidelines requiring government agencies to obtain prior approval before purchasing new four-wheeled vehicles or undertaking foreign travel using budget allocations. The directive, issued on Monday, calls for stricter fiscal discipline by reducing administrative expenses such as fuel, utilities, maintenance, and office supplies. Government offices have also been instructed to use vacant government-owned buildings before renting private properties. In addition, any government payment exceeding Rs 1 billion must be reported to the ministry within seven days, with bi-monthly reviews introduced to strengthen cash flow management and fiscal oversight.
Social Security Fund contributions exceed Rs 116 billion
The Social Security Fund accumulated total contributions of Rs 116.718 billion by the end of the fiscal year 2025/26. The fund includes contributions from 23,490 registered employers and 304,320 contributors, supported by the inclusion of Nepali migrant workers employed abroad. During the fiscal year, the fund paid out Rs 21.27 billion in benefits, including Rs 17.064 billion under retirement schemes, along with payments for medical treatment, workplace accidents, and dependent family benefits.
Lumbini Province waives industry registration and renewal fees
Lumbini Province has abolished all fees for the registration and renewal of industries from July 17 to encourage investment and business expansion. The policy, introduced through the provincial budget, applies to all industries except those involved in alcohol and tobacco production. The Ministry of Industry, Tourism and Transport has also allocated Rs 520 million to strengthen the Enterprise Development Fund, provide seed capital, and expand concessional loans under the Entrepreneurial Lumbini Campaign, with the goal of creating at least 1,000 self-employment opportunities and 5,000 new jobs.
Nepal and Spain chambers to sign trade cooperation agreement
The Nepal Chamber of Commerce (NCC) and the Spanish Chamber of Commerce have agreed to sign a Memorandum of Understanding (MoU) by late 2026 or early 2027 to strengthen bilateral trade and investment. The agreement was reached during a meeting in Kathmandu with a visiting Spanish delegation led by Inmaculada Riera i Reñé, Director General of the Spanish Chamber of Commerce. As an initial step, a delegation representing eight to nine Spanish companies is expected to visit Nepal around February–March 2027 to participate in a bilateral business forum. Renewable energy, smart cities, and infrastructure have been identified as priority sectors for cooperation, with Spain also offering expertise in clean energy and agriculture.
Thirteen local governments fail to unveil budget for current fiscal year
Thirteen of Nepal’s 753 local governments have yet to present their budgets for the current fiscal year. According to data available on the Ministry of Federal Affairs and General Administration’s online portal, 10 of the delayed local governments are in Madhesh Province, including Sukhipur Municipality, Aurahi Rural Municipality, and Kamala Municipality. The remaining three are Dharan Sub-metropolitan City in Koshi Province and Kotahimai and Shuddhodhan rural municipalities in Lumbini Province. The affected local governments cited political disagreements and technical challenges for missing the deadline, while all local governments in Bagmati, Gandaki, Karnali, and Sudurpaschim provinces completed the budget process before the start of the fiscal year.
Govt directs local officials to remain at duty stations amid disaster risks
The Ministry of Federal Affairs and General Administration has instructed officials at district coordination committees and local governments to remain at their duty stations as continuous rainfall heightens the risk of floods and landslides. Through a circular, the ministry directed employees to stay available to support disaster preparedness, search and rescue operations, relief distribution, and uninterrupted public service delivery. Staff currently on leave have been asked to cut short their leave and return to work immediately. Local governments have also been instructed to maintain close coordination with District Administration Offices, security agencies, and provincial authorities.
Flood-damaged electric vehicles worth Rs 88.69 million remain stranded at Rasuwa Customs
Eleven electric vehicles worth Rs 88.69 million, damaged in flooding along the Lhende River on July 8, 2025, remain unclaimed at Timure Customs Office in Rasuwa. Importer CG Motors has yet to collect the vehicles, including 10 Xpeng G6 SUVs valued at Rs 84.99 million and an electric van worth Rs 3.7 million, as insurance claims are still pending and customs duties of around Rs 33.9 million remain unpaid. Customs officials said the vehicles cannot be auctioned until the importer formally declares them as disaster-damaged assets.
Siraha traffic police collect over Rs 11 million in revenue
The District Traffic Police Office in Siraha collected Rs 11.4 million in revenue during the fiscal year 2025/26 by penalizing 13,416 vehicles for traffic violations. In the previous fiscal year, authorities fined 32,157 vehicles and generated Rs 25.1 million in revenue. During the year, the district recorded 1,020 road accidents, resulting in 81 deaths, including 62 men, seven women, and 12 children, while 1,676 people were injured. Police attributed the decline in fatalities to improved public awareness and regular traffic enforcement.
Govt launches online portal for foreign employment fraud complaints
The Ministry of Labour, Employment and Social Security has introduced an online platform, Ujuri DOFE Government Nepal, allowing victims of foreign employment fraud to file complaints without visiting Kathmandu. The portal, operational since July 17, enables users to monitor the progress of their cases using a tracking code sent via SMS and email. During a visit to the Department of Foreign Employment, Labour Minister Ramjee Yadav said the digital system has simplified access to justice, noting that 14 complaints had already been registered within its first four days of operation.
Problematic Cooperative Management Committee refunds savings to small depositors
The Problematic Cooperative Management Committee (PCMC) has returned savings to small depositors of Lalitpur Cooperative and Tapai Hamro Cooperative. The committee refunded deposits to 35 members of Lalitpur Cooperative and 90 members of Tapai Hamro Cooperative. According to the government, the repayments were made using funds recovered through loan collections and asset management from the troubled cooperatives, with priority given to small depositors during the initial phase of the recovery process.
14 Nepali leaders complete YSALI program in the United States
Fourteen emerging leaders from Nepal have completed the Young South Asian Leaders Initiative (YSALI) in the United States, the US Embassy announced. The participants engaged with American universities, businesses, policymakers, and innovation centres through discussions, workshops, and field visits focused on entrepreneurship, innovation, and economic development. The program also included a meeting with US Under Secretary for Public Diplomacy Sarah Rogers at the US Department of State. According to the embassy, the initiative seeks to strengthen leadership, promote regional cooperation, and expand trade, investment, and technology partnerships between the United States and South Asia.
Commerce department fines two businesses for consumer protection violations
The Department of Commerce, Supplies and Consumer Protection has fined two businesses for violating consumer protection laws and business regulations. Eve Collection in Imadol, Lalitpur, was fined Rs 10,000 after inspectors identified irregularities in its business practices, while Amisa Store in Subidhanagar, Kathmandu, was fined Rs 5,000. During inspections of 10 businesses on Monday, the department also directed eight other firms to improve their operations. Officials said the actions were taken under the Consumer Protection Act, 2018, and the Consumer Protection Regulations, 2019.
Department issues survey permits for 99 hydropower projects
The Department of Electricity Development granted survey licenses for 99 hydropower projects with a combined capacity of 3,211 megawatts during the fiscal year 2025/26. It also issued permits for seven solar energy projects with a total capacity of 311 megawatts, along with approvals for transmission line projects covering 179 circuit kilometres of 220-kilovolt lines and 270 circuit kilometres of 132-kilovolt lines. In addition, the department awarded 29 generation licenses for hydropower projects with a combined capacity of 1,857 megawatts. The department collects around Rs 3.5 billion in annual royalties, which are shared with provincial and local governments to support regional development.
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