KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The data collectively point to a mixed but structurally revealing economic picture, where pockets of financial and trade momentum coexist with deeper fiscal and governance challenges. While the stock market rebounded modestly on strong late-session buying and exports through Birgunj surged sharply, Nepal’s external sector remains under strain as rising imports, particularly of fuel, rice, paddy, and electric vehicles, continue to widen the trade deficit to an unsustainable daily average.
Growing labor migration, including increased female participation and sustained demand for Nepali workers in South Korea and Malaysia, underscores continued dependence on remittances rather than domestic job creation. At the same time, weak capital spending by metropolitan governments, delayed infrastructure execution, and post-protest administrative disruptions highlight persistent implementation failures that risk undermining growth.
Overall, the trends suggest short-term resilience driven by consumption, remittances, and selective export gains, but limited progress on productive investment and institutional efficiency needed for long-term economic stability.
NEPSE index rises 9.23 points to close at 2,714
The Nepal Stock Exchange (NEPSE) advanced by 9.23 points on Thursday, the final trading session of the week, ending at 2,714. Buying momentum picked up strongly in the last half hour of trading, recovering from a 9.43-point decline recorded a day earlier. Total turnover climbed to Rs 9.7 billion, up from Rs 8.92 billion on Wednesday. Sector-wise, banking and trading indices slipped, while the finance sector led gains with a 2.38 percent increase. Shares of SY Panel, Shreenagar Agritech, Trishuli Jalvidhyut Company, and Corporate Development Bank each jumped by the daily limit of 10 percent. Meanwhile, Kalika Power Company posted the largest loss, falling 6.25 percent.
Gold and silver prices decline in domestic market
Gold prices fell by Rs 2,900 per tola on Thursday, trading at Rs 292,200 per tola, down from Rs 295,100 the previous day. Silver prices also eased after recent gains. The Federation of Gold and Silver Dealers’ Association noted significant volatility over the past week, reflecting fluctuations in international bullion markets.
Exports through Birgunj jump 52 percent to Rs 48.1 billion
Exports routed through Birgunj customs rose sharply to Rs 48.1 billion in the first half of the fiscal year, marking a 52 percent year-on-year increase. The Birgunj Customs Office reported an export growth of Rs 16.43 billion. Processed soybean oil led exports at Rs 25.42 billion, followed by fruit juice worth Rs 3.48 billion and sunflower oil valued at Rs 3.55 billion. Palm oil contributed Rs 2.25 billion, while garment exports totaled Rs 1.78 billion.
Rice and paddy imports exceed Rs 20.38 billion in six months
Nepal spent around Rs 20.386 billion on rice and paddy imports during the first half of fiscal year 2025/26, according to the Department of Customs. This represents a 6.73 percent rise, or more than Rs 1.28 billion, compared to the same period last fiscal year. Imports of basmati rice totaled Rs 4.271 billion, while polished rice accounted for Rs 6.2 billion. Despite the increase in import value, revenue collection declined to Rs 1.442 billion, highlighting growing concerns over food dependency.
Daily trade deficit averages Rs 4.43 billion
Nepal’s trade deficit reached Rs 797.1 billion in the first six months of the current fiscal year, averaging a daily shortfall of Rs 4.427 billion. Imports increased by 14.18 percent to Rs 939.2 billion, while exports surged 43.76 percent to Rs 142.1 billion, according to customs data. Petroleum products topped the import list at Rs 151 billion. India remained Nepal’s largest trading partner, accounting for a deficit of Rs 416 billion, followed by China at Rs 195 billion.
Ten international firms bid for Nagdhunga tunnel maintenance
Ten foreign companies from China, India, and Turkey have submitted proposals for the operation and maintenance of the Nagdhunga–Sisne tunnel project. Officials said six Chinese, three Indian, and one Turkish firm partnered with Nepali companies to submit bids. Technical evaluations will be completed within 22 days, followed by financial assessments. The Rs 22 billion tunnel project, largely funded by Japan, is nearing completion, with the selected contractor set to manage operations for five years. The tunnel is expected to open by April 2026.
Petroleum imports via Kakarbhitta reach Rs 9.77 billion
Petroleum products worth Rs 9.77 billion were imported through the Kakarbhitta border point by mid-January, reflecting a 5.6 percent increase from last year. Customs data show imports included 53,152 kiloliters of petrol valued at Rs 4.72 billion and 33,744 kiloliters of diesel worth Rs 3.22 billion. Additionally, 12,811 metric tons of LP gas valued at Rs 1.24 billion, aviation fuel worth Rs 379.4 million, and kerosene were imported, generating total revenue of Rs 4.749 billion.
Nepal and India sign MoU on advance customs data sharing
Nepal and India have signed a Memorandum of Understanding to exchange export and import data in advance, aiming to streamline trade and strengthen customs enforcement. The agreement was signed in New Delhi by Nepal Customs Director General Shyam Prasad Bhandari and India’s CBIC Chairman Vivek Chaturvedi. The MoU enables digital sharing of export data to improve risk assessment, shorten clearance times, and enhance trade security. Implementation will begin with selected goods and expand gradually.
Female labor migration rises to 50,000 in six months
Around 50,000 Nepali women obtained labor permits during the first half of fiscal year 2025/26, up from 46,000 a year earlier, according to the Department of Foreign Employment. With domestic work restricted in Gulf countries and Malaysia, women are increasingly migrating to European destinations such as Romania, Croatia, and Malta for manufacturing and service-sector jobs. Experts note that although official numbers are rising, many women still migrate through informal channels. Women now make up 12.9 percent of Nepal’s migrant workforce.
EV imports cross Rs 12.5 billion in six months
Electric vehicle imports surpassed Rs 12.519 billion in the first half of the fiscal year, customs data show. Between November 17 and January 14 alone, EV imports totaled Rs 2.663 billion. A total of 12,489 EVs entered Nepal during this period, including 2,976 units by mid-January. The surge significantly boosted government revenue, which reached Rs 7.631 billion from EV imports.
Over 11,000 Nepali workers enter South Korea via EPS in 2025
A total of 11,178 Nepali youths traveled to South Korea for employment in 2025 under the Employment Permit System, up from 9,285 in 2024. Despite protests by thousands waiting for placement, South Korea continues to favor Nepali workers due to their strong work ethic and low overstay rates. In 2023, Nepal ranked first among 17 countries by sending 19,689 workers. Competitive wages and fair labor conditions continue to attract Nepali jobseekers.
Wistron Technology to recruit 800 Nepalis at zero cost
Malaysia-based Wistron Technology SDN BHD announced plans to hire 800 Nepali workers—600 women and 200 men—under a zero-cost recruitment model. The company will bear all expenses, including visas, airfare, medical checks, and documentation, providing each worker with Rs 120,000 in advance. Recruitment will be handled by Aakarshan International and Lal Dhanush International. Initiated in 2022, the model ensures workers migrate without debt and can begin sending remittances immediately.
Committee formed to promote international flights at Bhairahawa
Stakeholders meeting at Gautam Buddha International Airport decided to form a facilitation committee to promote regular international flights. Officials and business leaders stressed the need to integrate Lumbini with Ramayana and Buddhist tourism circuits. Thai AirAsia representatives said low passenger numbers remain a challenge despite maintaining two weekly flights. The committee will coordinate with public and private sectors to improve services such as visas and medical facilities to attract more airlines.
Six metropolises report weak capital spending amid unrest
Nepal’s six metropolitan cities spent an average of just 16.92 percent of their capital budgets in the first half of the fiscal year. Biratnagar recorded the lowest spending at 7.85 percent, while Birgunj led with 33.14 percent. Analysts attribute the slowdown to the September 2025 Gen Z protests, which caused political instability and physical damage to municipal offices. As a result, much of the Rs 17.5 billion capital budget remains unused.
Nepal Oil Corporation announces 10 percent dividend
Nepal Oil Corporation has scheduled its Annual General Meeting for February 11 to approve a 10 percent dividend for fiscal year 2024/25. The proposal was endorsed by the board on January 18 and includes tax provisions. Improved financial performance, supported by stable global fuel prices, enabled the state-owned firm to declare the dividend.
Birgunj advances infrastructure despite protest damage
Birgunj Metropolitan City achieved a capital expenditure rate of 33.14 percent despite losing its administrative building during protests. The city has begun constructing a new headquarters and is developing an urban garden on former Transport Corporation land. Officials said Rs 326.5 million of the Rs 985 million capital budget has already been utilized, with vendors relocated to maintain urban order.
Pokhara struggles with revenue shortfall and delayed development
Pokhara Metropolitan City spent only 20.09 percent of its total budget in the first six months, with capital expenditure limited to 8.69 percent. Of the Rs 4.838 billion earmarked for development, just Rs 420.7 million had been spent by mid-January. Revenue collection also lagged, reaching only 11.03 percent of the target. Officials blamed administrative hurdles and post-protest coordination issues for delayed tenders.
Biratnagar’s development stalls as spending remains below 10 percent
Biratnagar Metropolitan City spent only Rs 122.4 million out of its Rs 1.61 billion budget, falling short of 10 percent expenditure. City officials said the Gen Z protests destroyed key documents, delaying tenders for nearly 30 projects. With half the fiscal year already over, concerns are growing that a large portion of the budget will remain unspent, perpetuating last-minute spending practices.
Marsyangdi Besi hydropower project relocated after protests
The 50 MW Marsyangdi Besi Hydropower Project will be shifted from Besishahar-6 to Marsyangdi Rural Municipality-9 following local opposition. Developers revised the design from a tunnel-based system to penstock pipes to address community concerns. Backed by Api Power Company, the Rs 10.7 billion project aims to begin commercial production within 2.5 years.
Suryakunda Hydro to issue Rs 137.9 million IPO
Suryakunda Hydro Electric Limited will open its IPO to the general public on February 1, issuing 1.3 million shares worth Rs 137.9 million. After allocations for locals and migrant workers, 572,431 shares will be available to the public. Managed by Kumari Capital, the company recently completed the 11 MW Upper Tadi Khola project. Care Ratings Nepal has assigned the IPO a BB- rating.
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