KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed and transitional phase marked by financial market volatility, persistent external imbalances, and cautious reform efforts. The sharp decline in the NEPSE index alongside a surge in gold prices signals investor uncertainty, with capital shifting toward safer assets amid broader economic concerns.
Although the government is pushing structural measures such as 10 percent ethanol blending to reduce fuel imports and ease the trade deficit—which has already widened to Rs 955 billion, import dependence, especially on petroleum, remains a major vulnerability. Slowing EV imports and underperforming customs revenue further suggest moderating domestic demand and fiscal pressure, even as selective export gains like cardamom provide limited relief.
Meanwhile, the IMF’s final ECF review agreement and renewed calls to modernize Nepal-India trade cooperation highlight ongoing reform momentum, but implementation gaps—seen in stalled infrastructure projects and revenue shortfalls—underscore the challenge of translating policy commitments into tangible economic stability and sustained growth.
NEPSE index falls by more than 27 points
The Nepal Stock Exchange (NEPSE) index dropped 27.59 points on Sunday, the first trading day of the week, with all sectoral indices closing in negative territory. The benchmark index declined 1.04 percent to settle at 2,614.55 points. The Sensitive Index also slipped 0.72 percent, falling 3.27 points to 449.39. Shares of 324 companies were traded 72,104 times, with nearly 15.99 million shares exchanged. Total turnover reached approximately Rs 6.69 billion. All 13 traded sector groups recorded losses, including commercial banks, development banks, hydropower, hotels and tourism, manufacturing, life insurance, and microfinance.
Gold price rises by Rs 5,600 per tola
Gold prices increased by Rs 5,600 per tola on Sunday, reaching Rs 310,300 per tola, according to the Federation of Nepal Gold and Silver Dealers Associations. Silver prices also rose by Rs 375 per tola to Rs 5,425.
Preparations underway to implement 10 percent ethanol blending in petrol
Minister for Industry, Commerce and Supplies Anil Kumar Sinha has said that blending 10 percent ethanol in petrol could cut Nepal’s annual fuel import bill by nearly Rs 6 billion. Speaking at a program organized by the Society of Economic Journalists of Nepal (SEJON) in Kathmandu on Sunday, he stated that the long-discussed ethanol blending policy is now in its final phase of implementation. According to the Minister, the newly approved “Order to Blend Ethanol in Petrol, 2082” will soon be published in the Nepal Gazette and enforced. The government believes the policy will help reduce the widening trade deficit and strengthen foreign exchange reserves.
Seven-month foreign trade records Rs 955 billion deficit
Nepal’s total foreign trade in the first seven months of the current fiscal year reached Rs 1,291.63 billion, with the trade deficit widening to over Rs 955 billion. Imports stood at Rs 1,123.48 billion, while exports totaled Rs 168 billion. The largest deficit remains with India at Rs 491 billion, followed by China at over Rs 234 billion. Petroleum products continue to account for a major share of imports. However, Nepal recorded modest trade surpluses with countries such as Romania, Norway and Iceland.
Electric vehicle imports slow after years of growth
Nepal has witnessed a slowdown in electric vehicle imports during the first seven months of fiscal year 2025/26. A total of 5,894 four-wheeler EVs were imported, marking a 6 percent decline compared to the same period last year. In monetary terms, imports amounted to Rs 13.84 billion, down from Rs 14.74 billion in the previous fiscal year. Imports of electric three-wheelers have also decreased.
National economic census pre-training begins
Preparatory training for the National Economic Census 2082 has begun under the theme “Economic calculation for measuring the economy.” The program aims to train master trainers who will guide district-level census officers, supervisors and enumerators. Officials stated that this year’s census will incorporate an e-Census system to enhance accuracy and efficiency. Emphasis has been placed on ensuring uniform understanding of materials and maintaining high-quality statistical standards nationwide.
Nepal-India economic cooperation needs result-oriented reforms
At the Second Indo-Nepal Trade Festival 2026 in New Delhi, FNCCI President Chandra Prasad Dhakal stressed the need to modernize Nepal-India economic cooperation. He emphasized harmonizing standards, improving customs efficiency and removing non-tariff barriers along the 1,850-kilometer open border. He noted that administrative delays and mismatched quality standards continue to hamper trade flows despite strong historical ties.
Nepalgunj Customs collects only 45 percent of revenue target
The Nepalgunj Customs Office has collected just 45 percent of its annual revenue target in the first seven months of the fiscal year. Against a target of Rs 24.54 billion, only Rs 11.04 billion has been collected so far. Although revenue has increased by over Rs 90 million compared to the same period last year, officials say meeting the remaining 55 percent target within five months will be challenging.
Cardamom exports surge through Mechi customs as tea trade declines
Cardamom exports via the Mechi Customs Office rose sharply in the first seven months of the current fiscal year 2082/83, increasing by nearly 60 percent to Rs 8.61 billion. A total of 4,153 metric tons were exported to India during the review period. In contrast, tea exports declined by 26.7 percent to Rs 2.32 billion compared to Rs 3.16 billion during the same period last year. Other exports such as plywood and broom grass (amriso) also recorded significant drops.
Lemon wholesale price jumps over 177 percent in a month
The wholesale price of lemons has surged by 177.49 percent within a month. According to the Kalimati Fruits and Vegetables Market Development Committee, the average price rose from Rs 95.50 per kg on Magh 10 to Rs 265 per kg. Prices vary across markets, with Pokhara recording Rs 265 per kg, Sindhuli Rs 225, Birtamod Rs 182.5, and Birendranagar Rs 115 per kg.
United Modi Hydropower announces dividend and bonus shares
United Modi Hydropower Limited has proposed distributing 7 percent bonus shares and a 0.36842 percent cash dividend for the previous fiscal year. The cash component is primarily intended for tax purposes. The announcement signals the company’s stable financial performance despite challenges in the hydropower sector.
Development promises remain unfulfilled in Nawalparasi
As candidates campaign for the House of Representatives election in Nawalparasi Constituency No. 1, major infrastructure projects remain incomplete. The Narayanchowk–Triveni road section, intended to be completed within two years, remains unfinished after six years. Local leaders have repeatedly promised to expedite the Postal Highway expansion, but residents continue to express frustration over delays.
Nepal reaches final IMF ECF review agreement
Nepal has concluded the seventh and final review under the IMF’s Extended Credit Facility program. Upon approval, the country will receive around USD 43.2 million (nearly Rs 6 billion), marking the final disbursement under the multi-year support program. The agreement reflects international confidence in Nepal’s fiscal reforms and economic stabilization efforts.
Lumbini Bikas Bank opens founder share sale
Lumbini Bikas Bank Limited has announced the sale of 20,290 promoter shares, offering existing founder shareholders the right of first refusal in line with Nepal Rastra Bank regulations. The move aims to maintain ownership stability within the institution.
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