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 present a mixed picture of steady policy execution and infrastructure progress alongside persistent market weakness and structural challenges. Financial markets remained cautious, with the NEPSE declining on lower trading volume even as investors shifted toward safe-haven assets, pushing gold and silver prices to new highs.
The Nepal Rastra Bank’s withdrawal of Rs 100 billion from the banking system signals continued efforts to manage excess liquidity without tightening financial stability. Meanwhile, the government’s emphasis on stricter budget implementation, improved capital spending, infrastructure development and greater coordination between agriculture and industry reflects a stronger focus on execution rather than policy announcements.
Revenue collections at major customs and inland revenue offices improved year-on-year but generally fell short of ambitious targets, highlighting the uneven pace of economic recovery and domestic demand. Progress in power transmission, public housing and municipal infrastructure demonstrates continued investment in long-term productive assets, while higher land valuations indicate rising urban property values.
At the same time, supply-side pressures remain evident, with bird flu driving egg prices higher and tourism authorities reporting continued fatalities from altitude sickness, underscoring gaps in agricultural resilience and mountain safety. Overall, the day’s developments suggest an economy gradually strengthening through public investment and administrative reforms, but still constrained by subdued private-sector sentiment, implementation bottlenecks, inflationary pressures and sector-specific vulnerabilities.
NEPSE slips nearly 14 points as turnover declines
The Nepal Stock Exchange (NEPSE) index dropped 13.95 points, or 0.51 percent, to close at 2,712.54 on Wednesday. Daily turnover also fell to Rs 5.19 billion from Rs 6.67 billion recorded a day earlier. Investors traded 11.36 million shares of 346 listed companies through 56,094 transactions. Share prices of 77 companies advanced, while 193 declined and seven remained unchanged. Finance and Manufacturing and Processing were the only sectors to post gains. Ridi Power Company recorded the highest turnover at Rs 423 million, while Everest Color emerged as the day’s top gainer.
Gold trades at Rs 291,000, silver at Rs 4,480
Gold and silver prices rose sharply in Nepal’s domestic market today. Compared with Tuesday, gold increased by Rs 5,400 per tola (11.66 grams), while silver gained Rs 110 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold was fixed at Rs 291,000 per tola and silver at Rs 4,480 per tola. On Tuesday, gold traded at Rs 285,600 per tola, while silver was priced at Rs 4,370 per tola. International reports indicate that gold is currently trading at USD 4,139 per ounce, while silver is trading at USD 59 per ounce in global markets.
NRB withdraws Rs 100 billion from banking system
Nepal Rastra Bank (NRB) absorbed Rs 100 billion in excess liquidity from the banking system on Wednesday through an 83-day deposit collection instrument. Eligible Class A, B and C banks and financial institutions participated in the online auction, where the interest rate was determined through competitive bidding. The instrument will mature on October 13, when both the principal and interest will be repaid. The minimum bid size was Rs 100 million. Although the deposited amount will not qualify for the Cash Reserve Ratio (CRR), it will be counted toward the Statutory Liquidity Ratio (SLR).
Prime Minister Shah pledges support for handicraft industry
Prime Minister Balendra Shah reaffirmed the government’s commitment to promoting Nepal’s handicraft sector through policy reforms, heritage preservation and employment generation. During a meeting with representatives of the Federation of Handicraft Associations of Nepal, he expressed support for establishing a Handicrafts Development Board under a public-private partnership model. The discussion also covered the official observance of National Handicraft Day, reinstatement of the 5 percent export incentive, mandatory invoice-based customs valuation and the establishment of a handicrafts village in Kathmandu Valley along with skill development centres across all seven provinces.
Finance ministry unveils 47-point budget implementation directive
The Ministry of Finance has issued a 47-point directive to ministries and government agencies to ensure effective implementation of the current fiscal year’s budget. The guidelines call for timely execution of development programmes, improved capital expenditure, prudent use of public resources and regular monitoring of projects. Government agencies have also been instructed to promptly update approved programmes in the Line Ministry Budget Information System (LMBIS), prepare procurement plans in advance and link development payments to measurable performance.
Agriculture and industry ministries strengthen coordination
Minister for Agriculture, Forest and Environment Gita Chaudhary and Minister for Industry, Commerce and Supplies Gauri Kumari Yadav agreed to improve coordination between their ministries to better connect agricultural production with industrial markets. Their discussions focused on implementing minimum support prices for key crops, strengthening market monitoring to curb black marketing and limiting imports of selected agricultural products to encourage domestic production. They also discussed expanding market access for Nepali tea through cooperation with India’s Food Safety and Standards Authority (FSSAI) and making better use of storage facilities in Jhapa.
Mechi Customs revenue rises by 11 percent
The Mechi Customs Office in Kakarbhitta collected Rs 17.68 billion in revenue during the fiscal year 2025/26, an increase of 11 percent compared with the previous year. Although revenue grew by Rs 1.75 billion, the office achieved only about 93 percent of its annual target of Rs 18.88 billion. The customs point remains one of eastern Nepal’s key trade gateways, facilitating exports of products such as tea, cardamom and ginger, while handling imports of petroleum products and industrial raw materials.
Sudurpashchim spends 62 percent of annual budget
The Sudurpashchim Provincial Government spent Rs 20.82 billion, or 62.26 percent of its Rs 33.43 billion budget, during the fiscal year 2025/26. Current expenditure reached Rs 9.25 billion, while capital expenditure stood at Rs 11.57 billion. The Ministry of Social Development recorded the highest budget utilisation at 71.53 percent, whereas the Ministry of Internal Affairs and Law spent the least at 30.76 percent. The province also transferred Rs 2.75 billion to local governments, amounting to 75.55 percent of the allocated grants.
Bharatpur Inland Revenue Office collects Rs 26.83 billion
The Inland Revenue Office in Bharatpur collected Rs 26.83 billion in revenue during the fiscal year 2025/26, an increase of Rs 1.74 billion from the previous year. Despite the improvement, collections fell short of the Rs 31.05 billion target set by the Inland Revenue Department. Officials attributed the shortfall to the closure of a local liquor factory, reduced excise revenue and declining consumption of bottled beverages.
Bhairahawa Customs posts over Rs 105 billion in revenue
The Bhairahawa Customs Office collected Rs 105.02 billion in revenue during the fiscal year 2025/26, achieving 92.46 percent of its annual target. Revenue increased by 10.33 percent from the previous fiscal year, supported by a rise in imports. Motorcycle imports generated the largest share of customs revenue, while exports rose sharply, led by refined soybean oil.
Dandakhet–Rahughat transmission line project reaches 74%
The 132 kV Dandakhet–Rahughat Transmission Line Project has reached 74 percent physical progress and 72.6 percent financial progress. The Nepal Electricity Authority aims to complete the project within the current fiscal year 2026/27. Financed by the Asian Development Bank and the Government of Nepal, the Rs 4.72 billion project stretches 25 kilometers and is designed to connect hydropower projects in the region to the national electricity grid. Despite delays caused by difficult terrain and landslides, contractor Larsen & Toubro has completed 74 of the planned 82 transmission towers and installed transmission lines across 12.1 kilometers. Significant progress has also been made on the associated substations.
Labour offices told to respond to complaints within one hour
The Department of Labour and Occupational Safety has directed all labour and employment offices to acknowledge and address workers’ complaints within one hour of receiving them. The circular aims to reduce delays in handling grievances submitted through channels such as Hello Sarkar. Offices have also been instructed to resolve disputes promptly, enforce labour laws, refer cases outside their jurisdiction without delay and regularly update the status of resolved complaints.
Land revenue offices publish new minimum land valuations for FY 2026/27
Land revenue offices have announced revised minimum land valuation rates for the fiscal year 2026/27, reflecting higher government-assessed values across Kathmandu. Land along major roads in areas such as Maitighar, Singha Durbar West Gate, Putalisadak, Dillibazar, and Durbar Marg is now valued at approximately Rs 7.6 million per ana (31.80 square meters), compared with Rs 7.2 million last year. Valuations have also increased in areas under the Chabahil and Kalanki land revenue offices. Ring Road-connected plots in Gaushala are now priced at Rs 6.2 million per ana, while plots in the Balkhu–Banasthali area have risen to Rs 4.9 million per ana. In contrast, land without road access is valued as low as Rs 100,000 per ana.
Trinagar Customs falls short of revenue target
The Trinagar Customs Office in Kailali collected Rs 8.40 billion in revenue during the fiscal year 2025/26, meeting 86.48 percent of its annual target. Revenue improved during February and March due to higher fuel imports, but imports declined after stricter Maximum Retail Price (MRP) labelling requirements came into effect in April. Customs officials said the end of the grace period has further reduced the daily number of cargo trucks entering through the border.
KMC completes 35% of administrative building
Kathmandu Metropolitan City (KMC) has completed 35 percent of the physical work and achieved 30 percent financial progress on its new eight-story administrative building in Teku within 94 days of construction. Work on the project began on April 5, and the basement structure has already been completed, with preparations underway for casting the cover slab. Acting Mayor Sunita Dangol inspected the construction site today and instructed the contractor to strictly follow safety standards while completing the project ahead of its contractual deadline of November 7, 2027. Around 70 workers and 10 technical personnel are currently engaged at the 3,052.40-square-meter construction site.
Nuwakot invites bids for Betrawati–Dhunche road maintenance
The Road Division Office in Nuwakot has invited electronic bids under the national competitive bidding process for reactive maintenance work on the Betrawati–Dhunche section of the Betrawati–Dhunche–Syabrubesi road corridor. According to the published notice, the estimated cost of the project is Rs 9.3 million. Eligible national contractors can download the bidding documents and submit their applications online through the Public Procurement Monitoring Office’s official portal.
Altitude sickness claims 25 lives in Annapurna region last fiscal year
According to the Annapurna Conservation Area Project (ACAP), 25 tourists died from altitude sickness along the Annapurna trekking route during fiscal year 2025/26. The deceased included 12 Nepali citizens, among them four guides and porters, nine Indian nationals, and one tourist each from Japan, Mexico, Spain, and Singapore. Geographically, 15 deaths occurred in Mustang, eight in Manang, and one each at Annapurna Base Camp and Mardi Himal. In addition, five other tourists lost their lives due to falls and weather-related incidents during the same period.
Egg prices rise to Rs 500 per crate
Egg prices have increased following a surge in demand and reduced production caused by bird flu, according to the Nepal Layers Poultry Association. Effective Wednesday, the price of large eggs increased from Rs 450 to Rs 500 per crate of 30 eggs. Medium-sized eggs rose from Rs 420 to Rs 470 per crate, while small eggs reached Rs 415, representing a Rs 50 increase across all categories. Association President Binod Pokharel said daily egg production has declined from around 4.5 million to 2.8 million eggs due to bird flu. Despite the price increase, producers continue to sell below the estimated production cost of Rs 573.60 per crate and are seeking government support to offset their losses.
Govt builds permanent homes for 1,201 families in Siraha and Saptari
Government housing schemes, including the Janata Housing Program, the Mahendra Narayan Nidhi Vulnerable Housing Program, and the Madan Bhandari Vulnerable Housing Program, have provided permanent brick houses to 1,201 disadvantaged families in the districts of Siraha and Saptari. The initiatives have helped relocate families from unsafe thatched-roof homes while improving living conditions and educational opportunities for their children. During fiscal years 2024/25 and 2025/26, 612 families in Siraha and 589 families in Saptari benefited from the programs. However, local infrastructure offices report that rising construction material prices and land management challenges continue to create financial difficulties for ongoing housing projects.
Department fines two firms during market inspections
The Department of Commerce, Supplies and Consumer Protection imposed fines on two businesses during routine market inspections for violating consumer protection laws. Kisu Camenagriha was fined Rs 20,000 under Section 38(gh) of the Consumer Protection Act, 2018, for failing to maintain purchase invoices as required under Section 15. Calmera Aruer, located in Jadibuti, Kathmandu, was fined Rs 5,000. Of the 12 businesses inspected, 10 were issued directives to address identified shortcomings. The department conducts regular inspections to ensure market hygiene, prevent the sale of substandard goods, and enforce proper billing practices.
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