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 cautious market optimism alongside structural reform efforts and sectoral imbalances. The stock market posted only a marginal gain amid declining turnover, while rising gold and silver prices suggest investors are hedging toward safe assets. Impending lock-in expiries could inject liquidity into the secondary market, but the banking sector’s shortage of skilled manpower highlights capacity constraints in an increasingly digital financial system.
At the policy level, moves to amend the central bank and tourism laws, promote ethanol blending to cut fuel imports, expand workplace training, and strengthen the Social Security Fund signal reform-oriented governance. However, persistent bottlenecks, such as stalled land classification, underfunded infrastructure projects, and skilled labor gaps, continue to weigh on growth.
Meanwhile, strong cardamom exports, improving waste-based municipal revenues, tighter agricultural import controls, and new hydropower share offerings indicate gradual shifts toward domestic production and resource mobilization, pointing to an economy in transition but still facing structural vulnerabilities.
NEPSE edges up 2.41 points as turnover falls
The Nepal Stock Exchange (NEPSE) gained 2.41 points, or 0.09 percent, on Monday to close at 2,616.97, although daily turnover dropped to Rs 5.138 billion from Rs 6.699 billion a day earlier. The Sensitive Index climbed 1.65 points to 451.05. A total of 12.62 million shares of 329 companies were traded through 56,347 transactions. Of the 13 sectoral indices, six posted gains while seven declined. Commercial banks, development banks, finance, investment, life insurance and others advanced, whereas hotels, hydropower, manufacturing, microfinance, mutual funds, non-life insurance and trading sectors fell. Overall, 113 companies gained, 140 declined and nine remained unchanged.
Gold and silver prices climb in domestic market
Gold prices rose by Rs 3,200 per tola to Rs 313,500, while silver increased by Rs 170 to Rs 5,595 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Lock-in period ending for six companies within a month
Shares of six companies, including promoter and mutual fund holdings, will see their lock-in periods expire within the next 30 days. Among them, Swastik Laghubitta and Sanima Middle Tamor Hydropower will release significant volumes of shares into the secondary market. Once eligible for trading, the additional supply could enhance liquidity in the stock market.
Banking sector faces shortage of skilled workforce
Nepal’s banking industry is grappling with a shortage of skilled professionals, even as some institutions remain overstaffed following mergers. Mid-year reports from major banks cite brain drain and limited technical expertise, particularly in cybersecurity and digital systems, as key challenges amid rapid technological expansion.
Govt initiates amendment to central bank act to boost autonomy
The government has begun the process of amending the Nepal Rastra Bank Act to reinforce the central bank’s autonomy and supervisory authority. A draft discussed on February 20 proposes expanding the board from seven to nine members and formally recognizing digital currency and digital banking. Spokesperson Guru Prasad Paudel said the move is partly driven by commitments made to the International Monetary Fund under the Extended Credit Facility. The bill also requires former employees to observe a three-year cooling-off period before joining the board to safeguard institutional independence.
Tourism Board Act amendment proposes stricter eligibility rules
The Ministry of Culture, Tourism and Civil Aviation has drafted amendments to the Nepal Tourism Board Act, 1997, seeking to broaden the board’s mandate, including international representation and policy advisory roles. The proposal bars board members and the chief executive officer from holding political party affiliations. The CEO must possess a master’s degree and at least 15 years of relevant experience, aiming to professionalize leadership and curb political appointments.
Ethanol blending plan projected to save Rs 6 billion in fuel imports
Industry, Commerce and Supplies Minister Anil Kumar Sinha said blending 10 percent ethanol in petrol could reduce annual fuel imports by about Rs 6 billion. Speaking at a SEJON program, he noted the policy aims to cut petrol imports by 130 million liters each year. Nepal Oil Corporation’s Executive Director Dr Chandika Bhatt confirmed cabinet approval of the blend, though pricing and quality standards must be finalized for effective rollout.
Labour Ministry issues new workplace training guidelines
The Ministry of Labour, Employment and Social Security has introduced the Workplace-Based Training Operation Procedure, 2026, to tackle skilled labor shortages. The program offers 390 to 730 hours of basic training, with employers required to guarantee jobs for trainees beyond the training period. Employers must also provide minimum wages and contribute to the Social Security Fund during training to ensure a smoother transition into employment.
Social Security Fund collections surpass Rs 102 billion
The Social Security Fund has mobilized Rs 102.54 billion since collections began in July 2019. It has enrolled over 2.82 million contributors and more than 23,000 employers. According to spokesperson Krishna Adhikari, funds are invested in government securities, bank deposits and mutual funds to provide long-term protection for workers.
Land plotting stalled in 415 local units
Only 338 of Nepal’s 753 local units have completed land classification despite land use regulations introduced four years ago. As a result, land plotting remains suspended in 415 areas. Although the government recently amended the regulations to temporarily allow plotting, developers warn that delays in permanent classification could continue to hamper real estate transactions.
Cardamom exports through Mechi customs rise nearly 60 percent
Exports of large cardamom via Mechi Customs reached Rs 8.612 billion in the first seven months of the fiscal year, up nearly 60 percent year-on-year. More than 4,153 metric tons were exported. However, tea exports declined by 26.7 percent during the same period.
Nepal Airlines tops international passenger traffic in January
Nepal Airlines Corporation carried the highest number of international passengers at Tribhuvan International Airport in January, serving 54,398 travelers across 300 flights. In the domestic segment, Buddha Air led passenger volume. Overall, more than 750,000 passengers traveled through the airport during the month.
Nepal airlines cuts resunga flights due to aircraft shortage
Nepal Airlines has reduced flights to Resunga Airport in Gulmi from four to three per week, citing limited aircraft availability. The Twin Otter service will now operate on Sundays, Tuesdays and Saturdays, affecting travel convenience for local residents.
Lumbini Province records 18 percent capital expenditure growth
Lumbini Province achieved 18.04 percent capital expenditure and 20.45 percent overall spending by mid-January. Provincial leaders have pledged to streamline budget allocations and prioritize impactful projects in the upcoming fiscal year.
NOC to construct Rs 140 million fuel depot in Surkhet
Nepal Oil Corporation has called for bids to build a provincial fuel storage depot in Surkhet at an estimated cost of Rs 140 million. The facility will store diesel and petrol to stabilize supply across Karnali Province.
Biratnagar mega projects remain stalled amid funding gaps
Major infrastructure projects in Biratnagar, including the Girija Prasad Koirala International Cricket Stadium and airport expansion, remain incomplete due to budget constraints. Political parties have pledged revival plans ahead of upcoming elections.
Construction begins on 303-meter suspension bridge in Myagdi
Work has started on a 303-meter suspension bridge over the Myagdi River linking Kausibot and Bansbot in Dhaulagiri Rural Municipality. The Rs 16.4 million project aims to significantly reduce travel time for local residents and support agricultural transport.
Vyas municipality earns Rs 1.45 million from waste recycling
Vyas Municipality in Tanahun generated over Rs 1.45 million in seven months through the sale of recyclable waste. The municipality has implemented source segregation and biogas production from biodegradable materials.
Apollo hydropower launches ipo for locals and migrant workers
Apollo Hydropower has issued 1.41 million shares, representing 30 percent of its capital, targeting project-affected residents and Nepalis working abroad. The offering is managed by Himalayan Capital and carries a CARE-NP BB- rating.
Commerce department fines two firms for consumer violations
The Department of Commerce, Supplies and Consumer Protection imposed fines on Bansbari Rice Mill and Jayas Anna Ghar for breaching the Consumer Protection Act. Several other firms were directed to submit documents or follow corrective measures.
Banana imports decline amid tighter quarantine checks
Stricter quarantine inspections on Indian banana imports have boosted demand for domestic produce. Farmers report improved prices and expect the country could achieve self-sufficiency within a year if current measures continue.
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