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 and governance indicators reveal a widening gap between policy ambition and implementation capacity, as rising import dependence, infrastructure underfunding, institutional inefficiencies, and weak public service delivery continue to strain the economy.
While growth projections for Koshi Province, the reopening of the Tiptala customs point, and renewed momentum behind the Dailekh natural gas and ethanol initiatives suggest efforts to strengthen domestic production and energy security, persistent structural weaknesses remain evident in unpaid industrial liabilities, declining public health insurance participation, deteriorating highways, and unused state-funded infrastructure.
Simultaneously, regulators are tightening oversight through stricter banking accessibility and labor rules, cooperative debt recovery measures, music royalty investigations, and intensified traffic enforcement, signaling a broader push toward accountability and administrative reform.
Together, these developments highlight an economy attempting to modernize and diversify while still grappling with fiscal constraints, governance bottlenecks, and declining public confidence in key state institutions.
Cheese imports reach Rs 175.3 million in 10 months
Data released by the Department of Customs for the first 10 months of the fiscal year ending May 14 showed a continued rise in imported dairy products, with cheese imports totaling Rs 175.3 million. Nepal imported 206,917 kilograms of cheese during the review period, generating Rs 51.9 million in customs revenue. India remained the largest supplier, exporting 159,166 kilograms worth Rs 125.8 million. France followed with processed cheese exports valued at Rs 21.7 million, while imports from Italy totaled 6,254 kilograms worth Rs 13.2 million, averaging around Rs 2,100 per kilogram.
Road department seeks Rs 15.55 billion for highway maintenance
The Department of Roads estimated that Rs 15.55 billion will be required to carry out annual maintenance work on 18,000 kilometers of strategic highways and road networks. Department spokesperson Shyam Bahadur Khadka said increasing asphalt resurfacing demands have pushed maintenance costs beyond the traditional Rs 10 billion threshold. During the current fiscal year, the department received only Rs 4.95 billion against its projected requirements, contributing to worsening road conditions. The proposed budget includes the use of database-based planning software to prioritize pavement rehabilitation and double bituminous surface treatment overlays along major national highways.
NRB orders accessibility upgrades and stricter labor compliance for banks
The Nepal Rastra Bank (NRB) issued a unified mandatory directive to all licensed Class “A,” “B,” and “C” banks on Saturday, instructing them to create dedicated service counters for senior citizens, illiterate customers, and people with disabilities. Banks have also been directed to maintain at least one wheelchair-accessible branch in every local government unit and introduce tactile Braille systems and audio support across their ATM networks. The central bank also tightened labor compliance rules for internal operations. Financial institutions must now fully comply with the Labor Act, ensuring that no employee is assigned overtime work without written consent and appropriate compensation. Banks are also required to submit mandatory compliance reports to the Labor Department.
PCMC releases list of Gautam Shree Cooperative debtors
The Problematic Cooperative Management Committee (PCMC) published a public notice naming 140 major institutional defaulters linked to the Gautam Shree Cooperative. The publication follows a board decision made on May 6 after the government categorized the cooperative as a problematic institution on March 26, 2024. Audit records show that 1,673 depositors filed claims seeking the return of frozen savings worth Rs 3.01 billion. The committee instructed listed borrowers to clear their dues through its central secretariat or face legal action and possible asset seizure.
Koshi Province GDP expected to exceed Rs 1.43 trillion despite slower growth
The Statistics Coordination Office in Biratnagar projected that the gross domestic product of Koshi Province will surpass Rs 1.43 trillion in the current fiscal year 2025/26. Although the economy is expected to expand from the revised Rs 982 billion estimate for fiscal year 2024/25, the province’s real growth rate is projected to slow to 3.1 percent, below the national average of 3.85 percent. Data indicates that Koshi Province contributes 15.8 percent to Nepal’s national economy, making it the country’s second-largest provincial economy after Bagmati Province. Analysts have called for increased public investment in manufacturing and commercial agriculture to boost industrial productivity.
Tiptala border customs checkpoint resumes operations
The Tiptala border customs checkpoint in Taplejung District, which connects eastern Nepal with the Tibet Autonomous Region, officially resumed regular trade operations on Thursday. Ward chairperson Chheten Lama said the customs office had remained largely unmanaged since its closure during the COVID-19 pandemic and resumed full operations after the appointment of Pradip Dhital as customs chief. The customs station is located 24 kilometers from Olangchunggola. Local representatives have urged the Ministry of Finance to allocate funds in the 2026/27 budget to renovate the aging 40-year-old building and strengthen revenue collection along the expanding road network.
Stakeholders call for faster implementation of Dailekh natural gas project
Representatives from Dailekh District and Kalikot District held a joint meeting at Mahabu Lekh on Saturday, urging the government to immediately begin the second phase of petroleum extraction work at Jaljale in Bhairabi Rural Municipality-1. Supported by a Rs 2.17 billion grant from the Chinese government, the China Geological Survey completed preliminary deep-drilling operations reaching a depth of 4,013 meters. Technical studies estimate reserves of 80.7 billion cubic meters of methane gas, which experts say could meet Nepal’s energy demand for 50 to 60 years. Stakeholders also urged the government to include the project in the 2026/27 national policy agenda and allocate funding for the proposed trilateral Mahabu road corridor.
Udayapur Cement workers launch strike over unpaid dues
Workers at the state-owned Udayapur Cement Industry began an indefinite strike at the factory gate on Friday after salaries remained unpaid for 13 months. The company’s total outstanding liabilities have reached Rs 1.042 billion. These include Rs 88 million in unpaid wages since March 2025, Rs 95 million in unpaid Provident Fund contributions, Rs 36.9 million owed to the Citizen Investment Trust, and Rs 713.7 million in pending retirement benefits. The labor dispute intensified after the unexpected resignation of the acting general manager.
Rs 449.1 million exhibition complex remains unused six years after completion
The Office of the Auditor General, in its 63rd annual audit report, called for immediate action regarding a Rs 449.1 million government-funded auditorium and cafeteria complex that has remained unused for six years after construction. The infrastructure project, built by the Department of Urban Development and Building Construction, was officially handed over to the Narayanhiti Palace Museum Development Committee on January 17, 2020. Located within the 12,718.32-square-meter Republic Monument complex, the facility includes underground parking and memorial structures dedicated to national martyrs. The audit body urged the Ministry of Tourism to bring the complex into operation for public use, including the exhibition of historical artifacts and revenue-generating activities.
Tourism ministry forms committee to investigate music royalty disputes
The Ministry of Culture, Tourism and Civil Aviation has formed a five-member panel to investigate disputes related to music royalty collection, copyright violations, and intellectual property compliance. The committee is headed by Laxman Bidari and includes representatives from the Department of Information and Broadcasting, Copyright Registrar Sabita Karki, and Heritage Branch Chief Subhadra Bhattarai. Deputy Secretary Nirmala Nyaupane will serve as member-secretary. The panel has been asked to submit recommendations within 10 days. Its review will focus on the financial transparency of collective management organizations and the development of a centralized digital system to track music royalty payments across hotels, transport operators, and broadcasting stations.
Commerce minister visits Amlekhgunj depot to promote ethanol production
Minister for Industry, Commerce and Supplies Gauri Kumari Yadav conducted a high-level inspection of the Nepal Oil Corporation Madhesh Provincial Office in Amlekhgunj on Friday. Joined by acting director Nagendra Shah, the minister reviewed regional fuel storage capacity and cross-border petroleum supply arrangements. Amid rising global oil prices, Minister Yadav encouraged the adoption of alternative fuel technologies and urged private companies to establish commercial ethanol production facilities. The ministry said expanding domestic ethanol blending could help lower petroleum import costs and improve Nepal’s long-term energy security.
Traffic police collect nearly Rs 2 million in fines across Kathmandu Valley
The Kathmandu Valley Traffic Police Office penalized 1,922 motorists during a 24-hour traffic enforcement campaign that ended on Saturday, collecting Rs 1,970,002 in fines. Valley Traffic Chief Navaraj Adhikari said the violations included 118 cases of drunk driving, 198 illegal ride-sharing offenses, 126 instances of running red lights, 131 speeding violations, 73 lane breaches, and 90 cases of sidewalk parking. In a separate operation, a joint task force led by Naresh Raj Subedi arrested five commercial drivers for driving under the influence of narcotics during roadside screening checks in Thali. Those detained included two bus drivers and a mini-truck operator, identified through fluid testing kits supplied by the Nepal Police Hospital.
Health insurance renewals decline in Kailali after free extensions end
The Health Insurance Board reported a significant drop in policy renewals in Kailali District after the government discontinued free annual renewals for low-income households. According to the board’s local office, active insurance membership has fallen to 44,479 people out of 103,000 registered individuals. Data shows that 56,000 residents from 14,885 households failed to renew their policies. Registration officer Tirtharaj Joshi said the decline followed the cancellation of free renewals for 17,312 ultra-poor families. Although senior citizens, people with disabilities, and HIV patients still receive free health cards, many regular members are opting out of the Rs 100,000 coverage scheme because of overcrowded hospitals, delayed reimbursements, and shortages of medicines at public health facilities.
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