KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The developments present a mixed but generally expansionary picture of Nepal’s economy, combining stronger external trade with continued public investment, social service delivery, and local economic initiatives. Foreign trade grew 35.44% in the first month of fiscal year 2026/27, driven by a 61.72% rise in exports and a 31.04% increase in imports. Although the improved export share and lower import-to-export ratio indicate some structural progress, the 24.88% expansion in the trade deficit shows Nepal remains heavily dependent on imports.
Government efforts also focus on restoring productive capacity and improving economic infrastructure. The revival of the Hetauda Textile Industry after nearly 25 years could support domestic production and employment if trial operations become commercially viable. Similarly, Koshi Province’s 69.95% capital expenditure rate and extensive road and bridge construction demonstrate significant investment in connectivity and regional development.
Social policy remains another priority. The planned distribution of land ownership certificates within 600 days could provide greater economic security to landless families, while free medicine directives aim to strengthen basic healthcare access. Gandaki Ayurveda Hospital’s treatment of more than 34,000 patients suggests growing demand for traditional healthcare.
However, Syangja’s higher number of business closures than registrations highlights challenges such as youth migration and capital outflows. Meanwhile, tourism festivals and the Dhurkot Great Wall demonstrate efforts to stimulate local economies. Finally, SEBON’s proposed debenture regulations could diversify Nepal’s capital market, strengthen investor protection, and expand corporate financing opportunities. Overall, the developments indicate progress, but sustainable growth will require stronger domestic production, enterprise retention, and effective policy implementation.
Nepal’s foreign trade rises 35.44% in first month of fiscal year 2026/27
Nepal’s total foreign trade increased by 35.44% during the first month of fiscal year 2026/27, covering the period from mid-July to mid-August 2026, reaching Rs 226.14 billion, according to preliminary data from the Department of Customs. In the corresponding period of fiscal year 2025/26, total trade stood at Rs 166.97 billion. Imports rose 31.04% to Rs 187.44 billion from Rs 143.04 billion a year earlier. Exports grew even more sharply, increasing 61.72% from Rs 23.93 billion to Rs 38.70 billion. Despite the strong export performance, the substantial rise in imports pushed the trade deficit up 24.88% to Rs 148.73 billion, compared with Rs 119.10 billion during the same period last year. The import-to-export ratio improved from 5.9 to 4.84, a 1.97% improvement. Exports accounted for 17.11% of total trade, up from 14.33%, while the import share fell from 85.67% to 82.89%.
SEBON drafts new rules to strengthen corporate bond market
The Securities Board of Nepal (SEBON) has prepared the Debenture Registration and Issuance Regulation, 2026, to replace the existing 2016 framework. The proposed rules seek to help transform Nepal’s equity-focused stock market into a broader, multi-product capital market in line with the Capital Market Development Roadmap 2026. The draft provides for two methods of debenture issuance: private circular placements limited to 50 institutional or high-net-worth investors, and public offerings. Companies seeking public issuance would need a minimum paid-up capital of Rs 1 billion, maintain a 70:30 debt-to-equity ratio, and obtain a mandatory credit rating. Issuers would also be required to appoint a licensed debenture trustee with minimum paid-up capital of Rs 100 million. The measure is intended to strengthen investor protection and support the development of Nepal’s corporate bond market.
Minister Yadav inspects Hetauda Textile Industry during trial production
Industry Minister Gauri Yadav inspected the Hetauda Textile Industry, which has recently resumed trial production. Minister Yadav visited the factory this morning, where Nepal Army officials briefed her on its current operational condition. The government had assigned the Nepali Army responsibility for repairing and restoring the facility. Following the rehabilitation work, the textile mill restarted trial production after remaining largely inactive for nearly 25 years.
Govt plans to issue land ownership certificates within 600 days, says Minister Rawal
Minister for Land Management, Cooperatives, and Federal Affairs Pratibha Rawal said resolving land-related problems remains one of the government’s key priorities and called on local governments to provide full cooperation. Speaking at a program in Dhangadhi Sub-Metropolitan City, Kailali, on Saturday, Rawal said the government is fully prepared to coordinate and facilitate the distribution of land ownership certificates to landless families and informal settlers. She urged Dhangadhi Sub-Metropolitan City to give land-related issues high priority alongside other local development initiatives. Earlier, at a meeting with the Kailali Land Problem Resolution Committee, Rawal said the government was implementing a targeted plan to distribute land ownership certificates within 600 days. She added that the necessary financial resources and human resources would be made available to meet the target. Rawal is currently visiting Kailali and Kanchanpur districts to participate in various official programs.
Koshi records Rs 7.451 billion in infrastructure expenditure
The Ministry of Physical Infrastructure Development of Koshi Province achieved a financial progress rate of about 69.92% across all 14 districts during the previous fiscal year. Of the Rs 10.652 billion capital budget allocated to the ministry, Rs 7.451 billion was spent, equivalent to 69.95% of the total allocation. Infrastructure work completed during the period included blacktopping 50.02 kilometers of roads, graveling 153.81 kilometers, and opening 86.24 kilometers of new road tracks. The ministry also completed nine multi-year strategic road projects covering a combined 106.24 kilometers, along with eight motorable bridges and 32 suspension bridges. Various public and residential buildings were also constructed to improve rural connectivity and support socioeconomic development across the province.
Health ministry directs local authorities to ensure free medicines are available
The Ministry of Health and Food Safety has instructed local authorities to ensure that free medicines and medical supplies are available at health institutions operating under local governments. The circular aims to strengthen basic healthcare services by ensuring that essential medicines and supplies are readily available. A comprehensive list of the required medicines and materials has been provided to local governments, with health institutions directed to distribute the listed medicines to patients free of charge.
Gandaki Ayurveda Hospital treats more than 34,000 patients in Tanahun
Gandaki Ayurveda Hospital in Tanahun provided specialized traditional healthcare services to 34,294 patients during fiscal year 2025/26, indicating growing public interest in alternative medical treatment. The hospital provides a range of services, including outpatient care, specialized services for elderly patients, regular yoga classes, panchakarma procedures, breastfeeding support, physiotherapy, shirodhara, and Ksharsutra therapy. Patients visited the facility from Tanahun, Gorkha, Lamjung, Kaski, Syangja, and other surrounding hill districts. Hospital representatives said community health camps, free screening programs, and institutional partnerships have helped expand access to traditional healthcare while promoting disease prevention and health and wellness awareness throughout the community.
Fifth agricultural, tourism, and industrial trade festival begins in Jumla
The fifth agricultural, tourism, and industrial trade festival has begun in Jumla with the aim of promoting local businesses and supporting regional economic development. The 17-day festival is jointly organized by the Industry and Commerce Association and the National Folk and Dohori Song Academy, Jumla, and is being held at the stadium in the district headquarters, Khalanga Bazar. More than 100 stalls are showcasing local products, including organic apples, beans, traditional grains, clothing, and local food items. The festival also promotes the area’s tourism potential and cultural heritage. Organizers expect the event to increase regional trade, preserve indigenous heritage, including artifacts associated with Khas civilization, and create additional economic opportunities for local entrepreneurs.
Syangja sees more business closures than new registrations
Syangja district recorded more business cancellations than new registrations during fiscal year 2025/26. A total of 334 industrial and commercial establishments were officially closed, compared with 291 newly registered businesses. According to Integrated Services Office Syangja Chief Jiban Paudel, newly registered businesses brought Rs 364 million in fresh investment. Meanwhile, cancellations resulted in capital outflows of Rs 253.5 million from industrial enterprises and Rs 165 million from commercial businesses. Paudel attributed the high number of closures in part to the migration of young people abroad for employment. He also said fee exemptions encouraged women to register a large proportion of the new enterprises established in the district.
Dhurkot Great Wall becomes a major tourist attraction in Gulmi
The Dhurkot Great Wall, connecting the historic areas of Dhurkotkot and Budhikot in Gulmi, has quickly developed into a prominent tourist attraction following an investment of Rs 32.3 million. Dhurkot Rural Municipality contributed 70% of the funding, while the federal government provided the remaining 30%. The attraction features a 1-kilometer stone-paved walking route, panoramic mountain views, a large Shiva statue, religious structures, and more than 2,000 newly planted saplings maintained by designated local caretakers. Local authorities hope the project will stimulate economic activity, create sustainable employment for residents, and encourage tourists to extend their stays by developing integrated tourism infrastructure in the scenic hill region.
Comment