KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy presented a mixed picture on August 21, with financial markets showing weakness while government agencies pursued measures aimed at improving liquidity, regulation, investment, and economic activity. The Nepal Stock Exchange (NEPSE) fell 10.67 points to 2,618.72, with turnover declining to Rs 4.16 billion and 198 companies recording losses. The contrasting surge in gold and silver prices, meanwhile, suggests continued demand for traditional safe-haven assets amid market uncertainty.
Nepal Rastra Bank’s collection of Rs 85 billion through a six-month deposit auction indicates active liquidity management by the central bank. At the regulatory level, proposed changes to Nepal Rastra Bank’s governance requirements and new Securities Board of Nepal (SEBON) rules for debenture issuance point toward stronger institutional standards and greater diversification of financing beyond bank credit.
The government is also emphasizing export expansion and economic diversification. Dairy Development Corporation’s initial ghee shipment to Dubai, alongside plans to enter Japan, South Korea, and Tibet, reflects efforts to develop overseas markets for Nepali products. Similarly, the strong recovery of mountain tourism, with mountain-related foreign visitors rising 477.1 percent between 2021 and 2025, highlights tourism’s renewed contribution to foreign exchange and employment.
However, institutional and regulatory bottlenecks remain evident. The delayed appointment of the Investment Board CEO and United Telecom Limited’s prolonged licensing and debt problems illustrate administrative and structural challenges. CBFIN’s concerns over criminal proceedings in a loan-recovery dispute further underline the need for predictable financial regulation.
Overall, the developments suggest an economy balancing short-term market pressures with longer-term efforts to strengthen regulation, infrastructure, exports, investment, and tourism.
NEPSE falls 10.67 points as trading volume declines to Rs 4.16 billion
The Nepal Stock Exchange (NEPSE) index fell 10.67 points to close at 2,618.72 on Friday, August 21, 2026, as daily turnover declined to Rs 4.16 billion from Rs 4.40 billion recorded on Thursday. Share prices rose for 70 companies, fell for 198, and remained unchanged for 10 companies during the session. Reliance Spinning Mills, Solu Hydropower, Ridi Power, Sanima Mai Hydropower, Sanima Middle Tamor, Mountain Energy, and Sahas Urja were among the companies recording significant trading volumes. Most sectoral indices ended lower, with the Others group posting the steepest decline of 1.06 percent. Sarbottam Cement was among the top performers, gaining 15 percent.
Gold rises to Rs 316,700 per tola, silver reaches Rs 4,985
Gold and silver prices rose sharply in Nepal’s domestic market on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold increased by Rs 3,300 per tola to Rs 316,700, up from Rs 313,400 on Thursday. A tola is equivalent to 11.66 grams. Silver also gained Rs 130 per tola, reaching Rs 4,985 on Friday compared with Rs 4,855 on Thursday.
NRB collects Rs 85 billion through six-month deposit auction
Nepal Rastra Bank (NRB) has raised Rs 85 billion in six-month deposits from banks and financial institutions through an auction conducted on Friday. The central bank had issued a 175-day deposit collection instrument following a notice published earlier in the day. The competitive bidding process ended at 3:00 PM through the online bidding system, with interest rates determined based on bids submitted by participating institutions. The principal and interest are scheduled to be repaid on February 12, 2027. Only Class A, Class B, and Class C financial institutions licensed by NRB were eligible to participate. The minimum bid was set at Rs 100 million, with additional bids required to be in multiples of the same amount. The funds collected through the auction will be counted toward statutory liquidity requirements but will not be considered for meeting cash reserve requirements.
Finance minister rules out plans for demonetization
Finance Minister Swarnim Wagle has said the government has no plans to demonetize the country’s currency. Wagle made the remarks during the “Citizen, Policy, and Leadership” dialogue organized by the Rastriya Swatantra Party (RSP) at its party office in Banasthali. He was responding to questions from participants about why the government was not considering demonetization. Wagle said the government does not consider demonetization appropriate at present and has not discussed implementing such a measure. He also noted that the experience of countries that have undertaken demonetization has generally not produced encouraging results.
SEBON unveils draft regulations for debenture registration and issuance
The Securities Board of Nepal (SEBON) has published the draft Debenture Registration and Issuance Regulations, 2026, with the aim of strengthening and modernizing Nepal’s institutional debenture market. The proposed rules would require issuing companies to have a minimum paid-up capital of Rs 1 billion and maintain a debt-to-capital ratio of no more than 70:30. Non-financial companies would also be required to issue secured debentures. The draft seeks to broaden long-term financing options beyond conventional bank lending. It proposes allowing private placements to as many as 50 qualified institutional investors, while public offerings would require credit ratings and listing on a stock exchange. SEBON has invited market participants and other stakeholders to submit feedback and policy recommendations before the regulations are finalized.
Finance Committee moves ahead with changes to governor and director qualifications
The Parliamentary Finance Committee has advanced discussions on proposed amendments to the Nepal Rastra Bank Act, 2002, including revised eligibility requirements for the appointment of the central bank governor and board directors. Under the proposed provisions, candidates would need at least a postgraduate degree in fields such as monetary economics, banking, finance, statistics, public administration, management, commercial law, or accounting from a recognized university. They would also be required to have at least four years of executive-level experience in senior government positions, central banking, academia, or Class A commercial banks. For candidates holding doctoral degrees, the experience requirement would be 10 years. The committee has also agreed in principle to introduce a mandatory cooling-off period for outgoing chief executive officers of commercial banks. It has further discussed limiting the voting rights of significant shareholders on holdings exceeding 0.5 percent to reduce potential conflicts of interest.
DDC begins exporting ghee to Dubai
The state-owned Dairy Development Corporation (DDC) has started exporting its branded ghee to the Middle East, with an initial shipment of 500 kilograms sent to Dubai on a Nepal Airlines flight on Friday. DDC has entered into a commercial agreement with Rato Ra Chandra Surya International Private to supply 50 metric tons of ghee annually for overseas markets. The corporation said exports are expected to increase gradually, although current production limitations have kept initial shipments relatively small. DDC also plans to expand distribution to Japan, South Korea, and China’s Tibet region from around October, helping broaden the international market for Nepali dairy products.
Parbat Kumar Karki appointed CIT executive director
The Council of Ministers has appointed Parbat Kumar Karki as Executive Director of the Citizen Investment Trust (CIT). Karki, who is originally from Udayapur, was appointed on August 19 under Section 42(1) of the Citizen Investment Trust Act, 1991. A former executive director of Nepal Rastra Bank (NRB), Karki has previously headed CIT after being selected through an open competitive process. He brings extensive experience in executive management within Nepal’s financial sector. Karki holds a Master of Banking and Finance from Griffith University in Australia and has also completed international training in central banking and financial market analysis. He is expected to lead CIT’s institutional development and expansion.
Govt. suspends watermelon seed imports from Sudan over smuggling concerns
The Plant Quarantine and Pesticide Management Center under the Ministry of Agriculture, Forestry and Environment has suspended the import of edible watermelon seeds from Sudan following concerns over an increase in unauthorized shipments. In a directive issued Friday, the center instructed quarantine offices across the country to stop issuing new import entry permits for such products until further notice. The move followed concerns over suspicious documentation found in phytosanitary certificates accompanying recent shipments from Sudan. The National Plant Protection Organization is conducting verification and risk assessments while consulting with plant protection authorities in Sudan. Importers found to have forged documents or made unauthorized changes to official paperwork could face legal action under the Plant Quarantine and Protection Act, 2007.
Dhorpatan Hunting Reserve earns over Rs 41 million in revenue
The Dhorpatan Hunting Reserve generated more than Rs 41.7 million in government revenue after hunters harvested 21 blue sheep and 11 Himalayan tahr over the past year. The reserve operates two hunting seasons, collecting Rs 30.3 million during the first and Rs 14.3 million during the second. International hunters from countries including the United States, Spain, the Netherlands, and Mexico took part in competitive bidding organized through professional hunting companies. Although permits had been issued for the allocated hunting quotas, some animals could not be hunted due to technical difficulties, adverse weather conditions, and medical reasons. Established in 1983, the reserve covers 1,325 square kilometers across Baglung, Rukum East, and Myagdi districts.
Yanki Ukyab yet to take charge as Investment Board CEO 16 days after appointment
Development economist Yanki Ukyab has yet to assume her position as Chief Executive Officer (CEO) of the Investment Board, 16 days after being appointed to the post, as the board is still awaiting her formal appointment letter from the government. The Council of Ministers decided on August 5 to appoint Ukyab as CEO for a four-year term. However, the government has not yet forwarded the official appointment letter to the Investment Board. Investment Board spokesperson Sunita Nepal said the process for Ukyab to take charge has not progressed because the board has not received the appointment letter. Ukyab is set to serve as CEO of the Investment Board for four years once the appointment process is completed.
Mountain tourism strengthens Nepal’s economy after post-pandemic recovery
Mountain tourism has become an increasingly important contributor to Nepal’s economy following its recovery from the COVID-19 pandemic, supporting foreign currency earnings, employment, and development in mountain communities. According to data from the Ministry of Culture, Tourism and Civil Aviation, the number of foreign visitors coming to Nepal for mountain-related activities rose by 477.1 percent between 2021 and 2025. The number reached 165,056 in 2025, representing 14.2 percent of total tourist arrivals. Mountaineer Speed Kaji Sherpa said tourist spending generates employment both directly and indirectly, while former Nepal Mountaineering Association President Ang Tshering Sherpa emphasized the significant contribution of private-sector investment beyond government revenue from mountaineering royalties. Despite growing challenges associated with climate change, organizations such as the Nepal Mountaineering Association are focusing on professional training and capacity building to support the sustainable expansion of Nepal’s mountain tourism sector.
Department files 142 cases against non-compliant food industries
The Department of Food Technology and Quality Control filed 142 cases against food and animal feed industries found violating quality and regulatory requirements during the fiscal year 2025/26. The department collected 3,365 samples during market inspections, with laboratory tests showing that 127 samples, or 4.30 percent, failed to meet prescribed standards. Processed grain products, drinking water, and dairy items recorded the highest rates of non-compliance. During the year, the department conducted 12,806 inspections, issued or renewed 4,247 business licenses, and carried out 123 rapid market checks using mobile food testing laboratories. Authorities confiscated and destroyed products that failed to meet standards, while serious violations led to legal proceedings against the concerned businesses.
Tanahun records 670 new business registrations in fiscal year 2025/26
A total of 670 new businesses and enterprises were registered in Tanahun district during the fiscal year 2025/26, according to the Integrated Service Office. The office registered 243 enterprises and 327 business firms during the year, with the number of new registrations increasing by 94 compared with the previous fiscal year. The newly registered businesses operate across trading, manufacturing, and service sectors, according to office chief Ishwari Prasad Regmi. Meanwhile, the registration of 484 businesses was cancelled during the fiscal year. The office has also renewed the registrations of 3,477 industries and business firms in the district to date.
CBFIN calls for civil proceedings in Smart Telecom asset auction dispute
The Confederation of Banks and Financial Institutions Nepal (CBFIN) has recommended that legal disputes surrounding Nepal Investment Mega Bank’s auction of Smart Telecom assets be resolved through civil proceedings rather than criminal prosecution. The bank initiated the asset auction after Smart Telecom defaulted on its loan, following procedures provided under the Secured Transactions Act and the Bank and Financial Institutions Act. However, criminal cases and organized crime allegations subsequently brought against bank officials have raised concerns within the banking sector. CBFIN said matters involving banking regulation and credit recovery decisions primarily fall under the jurisdiction of Nepal Rastra Bank (NRB). Banking industry representatives warned that treating routine debt recovery and collateral auction procedures as criminal matters could create policy uncertainty, undermine financial stability, and discourage lending to priority sectors.
DIGO Hospitality Exchange links Pokhara hotels with sustainability service providers
Hotels in Pokhara are engaging with sustainability-focused service providers through the DIGO Hospitality Exchange as they seek to improve environmental practices while reducing operating costs. The initiative was organized by the Hotel Association Pokhara in partnership with United Community Nepal, with support from Swisscontact. It seeks to address the limited availability of reliable local sustainability solutions and commercially practical services for hotels. Backed by the DIGO project and the Swiss Agency for Development and Cooperation, the exchange gives hotel operators an opportunity to interact directly with service providers and explore solutions that can improve efficiency and competitiveness as demand for sustainable tourism grows.
Butwal Sub-Metropolitan City collects over Rs 2 billion in revenue
Butwal Sub-Metropolitan City collected Rs 2.18 billion in revenue during the fiscal year 2025/26, equivalent to 54.5 percent of its estimated annual target of Rs 4.04 billion. The local government received Rs 715.4 million through federal fiscal transfers, while provincial grants amounted to Rs 3.36 million, or 47.34 percent of the projected provincial allocation. Revenue-sharing arrangements generated Rs 437 million, supported largely by land registration fees and value-added tax returns. The municipality collected Rs 994.4 million from internal sources against a target of Rs 1.716 billion. Property taxes, land-related revenues, and rental income fell short of projections, which officials attributed in part to the ambitious revenue targets set in the budget.
Draft telecom policy targets 98 percent broadband coverage within 10 years
The Nepal Telecommunications Authority has unveiled a draft Integrated Telecommunications Policy that aims to expand broadband access to 98 percent of the population within the next decade. The draft sets a target of providing broadband speeds of at least 50 Mbps to 80 percent of the population within five years and 98 percent within 10 years. It also proposes reducing the cost of basic telecommunications services, with tariffs targeted at no more than 2.4 percent of per capita Gross National Income within five years and 1.5 percent within 10 years. The proposed policy brings together previous telecommunications frameworks and focuses on accelerating digital transformation, strengthening cybersecurity, improving competition, and increasing the contribution of the information and communication technology sector to GDP.
Nepal Swiss Chamber connects life members for business networking
The Nepal Swiss Chamber of Commerce and Industry (NSCCI) organized a networking event for its life members to promote business relationships, knowledge exchange, and potential collaboration. The “NSCCI Life Members Connect 2026” program allowed participants to introduce their businesses, highlight their areas of expertise, exchange ideas, and identify shared interests. Held under the theme “Showcase, Network, Collaborate,” the event encouraged members to develop professional connections and explore opportunities for joint ventures and other forms of cooperation. The chamber said the initiative was designed to turn interactions among members into potential business partnerships.
Inactive UTL seeks license renewal amid mounting arrears
Inactive telecommunications operator United Telecom Limited (UTL) is seeking government approval for a structured repayment plan to settle its outstanding liabilities and retain its basic telephony license before it expires. UTL owes government agencies more than Rs 30.8 billion in fees, statutory charges, and late-payment penalties after remaining largely inactive for more than a decade amid disputes among its shareholders. Local investors have approached the Nepal Telecommunications Authority and the Ministry of Communication and Information Technology with a proposal to make an upfront payment of around Rs 10 billion followed by annual installments. The company is also seeking a substantial waiver of penalties that would reduce its total liability to approximately Rs 13 billion. In return, the investors have proposed bringing in new foreign capital and developing a next-generation 5G network.
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