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 but structurally strained trajectory, where strong revenue indicators coexist with underlying inefficiencies and sectoral imbalances. While the Nepal Stock Exchange continues its downward trend and precious metal prices soften—signaling weaker investor sentiment and possible liquidity tightening—the government is still recording robust tax collection from capital gains and real estate, suggesting that transactional activity remains resilient, albeit unevenly distributed.
External-sector dynamics appear more encouraging, with rising exports through Birgunj and increased remittance potential driven by higher foreign employment outflows, yet these gains are offset by weak utilization of new infrastructure such as international airports and persistent project delays and under-spending at the provincial level. At the same time, structural bottlenecks—evident in unpaid dues to dairy farmers, low capital expenditure, and implementation gaps in reforms—highlight inefficiencies in public and private sector coordination.
Policy interventions, including stricter customs enforcement, decentralization of land services, and energy infrastructure investment, indicate attempts to improve governance and productivity, but their effectiveness remains uneven. Overall, the economy shows signs of revenue strength and external resilience, but faces credibility challenges in execution, market confidence, and inclusive growth.
NEPSE extends losing streak, drops 17 points
The Nepal Stock Exchange declined for the fourth consecutive session on Thursday, falling by 17.01 points (0.60%) to close at 2,787.15. The Sensitive Index also slipped by 0.62% to 468.27, with float indices following the same downward trend. A total of 11.37 million shares from 348 companies were traded through 93,907 transactions, resulting in a turnover of Rs 5.09 billion, lower than earlier in the week. Market performance remained weak, with only 46 stocks advancing while 216 declined. Out of 13 sectors, 10 posted losses—particularly hotels, hydropower, finance, and non-life insurance—while manufacturing, mutual funds, and trading saw slight gains.
Gold and silver prices drop on Thursday
Gold and silver prices declined in the market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices fell by Rs 1,800 per tola, bringing the rate of fine gold to Rs 298,700 per tola, down from Rs 300,500 the previous day. Silver prices also dropped by Rs 110 per tola, trading at Rs 5,020 compared to Rs 5,130 a day earlier.
Govt. collects Rs 8.17 billion in share market capital gains tax
The government generated Rs 8.176 billion in capital gains tax from the stock market over the first nine months of the current fiscal year. Data from CDSC highlights a sharp increase between March 15 and April 13, when collections reached Rs 1.735 billion, compared to Rs 551.5 million in the previous period (February 13 to March 14). Of the recent total, Rs 1.105 billion came from short-term individual investors, Rs 358.2 million from long-term individual investors, and Rs 272.4 million from corporate investors. Tax rates stand at 5% for individuals holding shares longer than a year, 7.5% for short-term trades, and 10% for institutions.
Real estate revenue surpasses Rs 37 billion despite market slump
Revenue from real estate transactions reached Rs 37.289 billion in the first nine months of the fiscal year, averaging Rs 4.143 billion per month. The highest monthly collection—Rs 6.165 billion—was recorded between March 15 and April 13. Officials credit the increase to higher land valuations and more accurate reporting of transaction prices. Despite rising revenue, industry representatives note that many investors remain stuck due to the post-pandemic slowdown. However, increased buyer interest and site visits following the formation of a new government have raised expectations of a recovery.
Dairy farmers owed Rs 2.6 billion in outstanding payments
Dairy farmers nationwide are under financial strain as the Dairy Development Corporation and private dairies have yet to pay Rs 2.6 billion for milk supplied over the past three months. Although payments are typically made every 15 days, delays have accumulated, with DDC responsible for Rs 600 million in dues between January 15 and April 13, and private dairies owing over Rs 1 billion. Industry officials link the backlog to surplus stocks of 2,500 metric tons of unsold powdered milk and butter. While the government’s new reform plan requires payments within 25 days—with penalties for delays—this has not yet been fully implemented in the dairy sector.
Labor permits for foreign employment increase by 9,000 in a month
The number of Nepali workers seeking employment abroad rose notably, with 61,819 labor permits issued between March 15 and April 13—an increase of 8,875 from the previous month. Among them, 20,545 were first-time migrants, while 41,274 received re-entry permits. Malaysia remained the leading destination with 18,649 workers, followed by the UAE with 11,463. Dhanusha district recorded the highest number of departures at 3,829. In terms of skill levels, 42,021 workers were classified as skilled and 13,366 as unskilled.
Diesel consumption drops by 19 percent following bi-weekly holidays
Diesel usage fell by 19.17% over the past two weeks after the government introduced a two-day weekend for offices and educational institutions starting April 5. The measure aims to cut fuel consumption amid rising global oil prices linked to geopolitical tensions. Data from Nepal Rastra Bank and Nepal Oil Corporation shows diesel sales declined from 96,566 kiloliters to 56,227 kiloliters. In contrast, petrol consumption rose slightly by 3.51% to 29,249 kiloliters, as supply remained sufficient to meet demand.
Karnali province arrears rise to Rs 4.12 billion
Outstanding arrears in Karnali Province have climbed to Rs 4.12 billion, according to the Auditor General’s seventh report. In fiscal year 2023/24 alone, Rs 459.4 million was added. The Ministry of Physical Infrastructure and Urban Development recorded the largest share at Rs 182.1 million, followed by the Ministry of Social Development with Rs 124 million. Despite 203 directives from the Public Accounts Committee, maintaining financial discipline remains a challenge. In response, the chief minister has introduced a project bank and new selection procedures to enhance transparency and reduce irregularities.
New international airports record minimal foreign trade
The country’s two newest international airports have seen little to no foreign trade activity during the first nine months of fiscal year 2025/26. Gautam Buddha International Airport in Bhairahawa recorded imports worth just Rs 4.6 million and no exports, while Pokhara International Airport reported no trade at all. In contrast, Tribhuvan International Airport handled imports worth Rs 157 billion and exports totaling Rs 26.58 billion, accounting for over 10% of national trade. Birgunj Customs remained the main trade hub, processing 46.57% of imports and 35.69% of exports.
Stricter customs enforcement boosts revenue at Jamunaha border
Revenue collection at the Jamunaha border point has increased significantly after stricter enforcement of customs duties on goods valued above Rs 100. Since April 17, daily collections have risen from around Rs 200,000 to between Rs 275,000 and Rs 360,000. Authorities say the policy is intended to reduce cross-border shopping and support local businesses in nearby areas. While business groups have welcomed the change, consumers argue that the Rs 100 threshold is outdated and should be raised to at least Rs 5,000.
Lawmakers pledge priority for children in upcoming budget
Lawmakers from federal and provincial levels have committed to prioritizing children’s welfare in upcoming policies and budgets. During a discussion organized by the National Campaign for Children as Zones of Peace, 36 representatives from different parties advocated for an “adult-child budget” ratio and wider child nutrition allowances. Key priorities include eliminating child marriage, promoting child-friendly local governance, and increasing funding for school meal programs. Lawmakers also emphasized the need for national projects focused on children, who make up 33.84% of the population.
Birgunj export value reaches Rs 79.54 billion in 9 months
Exports through Birgunj customs totaled Rs 79.54 billion during the first nine months of fiscal year 2025/26, marking a 15% increase compared to Rs 69.35 billion during the same period last year. Processed soybean oil remained the top export at Rs 43.61 billion, followed by fruit juice (Rs 5.84 billion), processed palm oil (Rs 5.24 billion), and processed sunflower oil (Rs 5.05 billion). Other exports included textiles worth Rs 2.69 billion and synthetic yarn valued at Rs 1.94 billion.
Gaddachauki customs achieves 25% of monthly target in 8 days
Customs revenue at Gaddachauki in Kanchanpur surged to Rs 15.2 million within the first eight days starting April 14, achieving 25% of the monthly target of Rs 68 million. Officials attribute the increase to stricter monitoring of goods exceeding Rs 100 in value and reduced smuggling. By comparison, Rs 54.1 million was collected between March 15 and April 13, reaching only 92% of that month’s target. However, authorities noted that a key X-ray machine has been out of service for a decade due to a shortage of technical staff, making inspections more challenging.
Tamghas generates revenue from waste sales to Palpa bank
The Urban Development and Environment Sanitation Committee in Tamghas, Gulmi, has started earning income by selling non-biodegradable waste to the Nepalese Waste Bank in Palpa. Under the arrangement, plastic and water bottles are priced at Rs 10 per kg, iron at Rs 15 per kg, tin at Rs 5 per kg, and Red Bull cans at Rs 80 per kg. Collecting waste from 1,765 households, the committee generated Rs 20,000 in one month by selling four truckloads of waste. To support organized waste management, Resunga Municipality invested Rs 1.38 million in land leveling and provides an annual grant of Rs 1 million. There are also plans to invest Rs 1.4 million in producing compost manure from biodegradable waste.
Local govt. invited to manage land revenue and survey services
The Ministry of Land Management, Cooperatives and Poverty Alleviation has called on local governments to take over land revenue and survey services. Rural municipalities and municipalities interested in the initiative must apply within seven days. Under this decentralization effort, local bodies will need to handle staffing and infrastructure on their own if they choose to offer these services. The plan is intended to make land-related services more accessible to citizens while keeping regulatory authority with the central government.
Jumla capital expenditure limited to 29% in 9 months
Jumla district has utilized only Rs 568.5 million, or 29.28%, of its Rs 1.941 billion capital budget during the first nine months (July 17, 2025, to April 13, 2026) of the fiscal year. Factors such as dependence on last-minute spending, difficult terrain, winter conditions, and holidays have contributed to the low expenditure rate. Two major federal offices reported particularly weak spending, with the Intensive Urban and Building Construction Project at 23.55% and the Road Division Office at 24.73%. Meanwhile, recurrent expenditure stands much higher at 65.87%. Contractors have urged authorities to allow project work and payments earlier in the fiscal year to avoid a year-end rush.
Strategic Darbang-Muna-Dhorpatan road project faces delays
Progress on the Darbang-Muna-Dhorpatan road project, which connects Myagdi to Rukum Purba, has slowed considerably. Although the project has an estimated cost of Rs 670 million and a contract worth Rs 528 million signed on June 25, only 10% of the work has been completed so far. Of the Rs 232.2 million allocated for the current fiscal year, only around Rs 50–60 million worth of work has been carried out. The contractor has scaled back labor and equipment, citing rising fuel and material costs. If the project is not finished within the 27-month timeline, federal funding could be withdrawn, leaving an important shorter route to Pokhara and Kathmandu incomplete.
Germany invests $60 million in Lekhnath-Damauli transmission line
The Nepal Electricity Authority, in collaboration with the German government, is advancing the Lekhnath-Damauli 220 kV transmission line project. Supported by a USD 60 million loan from KfW Development Bank, the project includes a 45-kilometer double-circuit transmission line and modern gas-insulated substations. It is designed to carry up to 1,000 MW of electricity, facilitating power transmission from the Tanahu Hydropower Project and nearby sources. During consultations in Vyas Municipality and Myagde Rural Municipality, officials assured residents that compensation for affected land and property would be provided at current market rates. The project aims to strengthen the regional power grid and promote clean energy use.
Kapilvastu inmates face market shortage for handmade goods
Prisoners at Kapilvastu Prison are producing items such as furniture, carpets, and statues, but are struggling to find buyers. Around 386 inmates produce roughly 600 stools per month, along with handwoven carpets. Despite receiving vocational training, prison authorities say the lack of branding and private-sector partnerships has limited sales. The Office of Cottage and Small Industries has highlighted the need for exhibitions and digital platforms to connect these products with wider markets, helping inmates earn sustainable income.
NTC launches summer offer 2083 with 30-day packages
Nepal Telecom has introduced its “Summer Offer 2026,” effective April 24, featuring updated voice and data packages. A key change is the extension of prepaid package validity from 28 to 30 days, along with “all-net” calling in voice plans. The upgraded ‘Sajilo Unlimited Pack’ now offers unlimited calls, 300 GB of data, and 300 SMS for Rs 999, while another package provides 150 GB and 250 SMS for Rs 799. New data-only plans include 100 GB for Rs 999 and 40 GB for Rs 549.
Banana prices surge to Rs 350 following import ban
Banana prices have climbed sharply to Rs 350 per dozen due to a supply shortage after the government halted imports from India. Traders at the Kuleshwor Fruit Market report that domestic production cannot meet demand, forcing some wholesale businesses to shut down. Both consumers and retailers are facing challenges, as the lack of supply has disrupted the market. Business owners say local production alone is insufficient to sustain nationwide consumption without imports.
ADB pledges $29.3 billion investment for Asia-Pacific in 2025
The Asian Development Bank committed USD 29.3 billion from its own resources to the Asia-Pacific region in 2025, representing a 20% increase from 2024. According to its Annual Report 2025, the investment is expected to generate over 3.3 million jobs and benefit more than 180 million people. The funding—covering loans, grants, equity investments, and technical assistance—targets key regional challenges. South Asia received USD 9.7 billion, while Southeast Asia and Central-West Asia were allocated USD 9 billion and USD 8.03 billion, respectively. An additional USD 14.7 billion was mobilized from partner organizations.
Non-life insurers collect Rs 36.582 billion in 9 months
Fourteen non-life insurance companies in Nepal collected Rs 36.582 billion in premiums during the first nine months of the fiscal year, reflecting a 13.86% increase from the same period last year. Shikhar Insurance recorded the highest premium collection at Rs 4.801 billion, while NLG Insurance posted the fastest growth rate at 41.04%. Other major contributors included Sagarmatha Lumbini Insurance with Rs 3.832 billion and Himalayan Everest Insurance with Rs 3.743 billion. In total, 2,209,986 insurance policies were issued during this period.
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