KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments present a mixed picture of Nepal’s economy, where signs of modernization and external engagement coexist with persistent structural challenges. While the Nepal–Spain Business Forum, the reopening of the Kakarbhitta Integrated Check Post, expanding digital public services, and strong agricultural output in Madhesh Province reflect efforts to strengthen trade, governance, and economic connectivity, underlying weaknesses remain evident.
The decline in the NEPSE index, falling precious metal prices, the closure of nearly 38,000 businesses, and the low success rate of caregiver applicants for Israel highlight subdued investor confidence, business stress, and skills gaps in the labor market. At the same time, concerns over bird flu outbreaks, inadequate customs infrastructure, and climate-related agricultural risks underscore vulnerabilities in supply chains and productivity.
Nevertheless, local initiatives in revenue mobilization, entrepreneurship promotion, irrigation development, and targeted social subsidies suggest that both national and local governments are pursuing measures aimed at improving economic resilience, service delivery, and long-term growth prospects.
NEPSE falls 26 points as trading volume declines; hydropower share hits circuit limit
The NEPSE index dropped by 26.16 points, or 0.96 percent, on Tuesday, closing at 2,674.48. Trading turnover also declined slightly compared to the previous session. The Sensitive Index slipped by 0.50 percent to 461.48. Market turnover reached Rs 4.36 billion, with more than 10 million shares exchanged through 72,854 transactions involving 353 listed companies. While only 22 companies recorded gains, 239 ended lower. Of the 13 sector indices, all but Mutual Fund closed in negative territory. Bungl Hydro reached a 15 percent negative circuit, whereas Taksar Pikhuwakhola and Yambaling Hydropower climbed 14.99 percent. Ankhu Khola Jalvidhyut led the market in both turnover and trading volume.
Gold and silver prices decline in domestic market
Gold and silver prices both fell in Nepal’s domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold decreased by Rs 1,600 per tola to Rs 287,100, compared to Rs 288,700 the previous day. Silver prices also dropped by Rs 140 per tola, settling at Rs 4,590 from Monday’s rate of Rs 4,730. The decline follows ongoing fluctuations in international bullion markets, which continue to influence local pricing trends.
Nepal–Spain business forum 2026 highlights need for stronger trade and investment relations
Participants from Nepal and Spain underscored the importance of enhancing bilateral trade and investment cooperation during the Nepal–Spain Business Forum 2026 in Madrid. Hosted by the Embassy of Nepal in Madrid, the event brought together government representatives, investors, and private-sector stakeholders from both nations to identify new opportunities for collaboration. Nepali delegates promoted products such as textiles, garments, and handicrafts, including pashmina, wool, hemp, and silver jewelry, while Spanish participants showed interest in strengthening business partnerships within the fashion sector and related industries. Both sides agreed that closer engagement is essential to increase trade and investment between the two countries.
IRD records 26,065 registered jewelry businesses in Nepal
Data from the Inland Revenue Department (IRD) shows that 26,065 businesses involved in the trade of gold, silver, and jewelry are officially registered throughout Nepal. These enterprises operate under Permanent Account Numbers (PAN) and engage in the commercial sale of precious metals and gemstones. The IRD reminded businesses that they are legally obligated to collect applicable taxes on luxury items and remit them within the prescribed deadlines. The department has also released an updated roster of 20 commercial banks authorized to import precious metals for regulated domestic supply and trade.
Only 1,231 candidates pass English test for Israel caregiver recruitment
Just 1,231 candidates have successfully passed the English language examination required for caregiver positions in Israel out of 15,626 applicants who took the test. To qualify, candidates needed to attain at least a B1 level in the speaking assessment for employment at Israel’s long-term care facilities. The examination was administered by CIIIN International Qualification in Tripureshwor. Although Israel had requested 2,300 caregivers from Nepal, the number of successful applicants fell well short of the requirement. The Department of Foreign Employment stated that discussions are ongoing regarding future steps following the low pass rate of 7.8 percent.
Smart Postal service delivers over 180,000 passports and 570,000 driving licenses
The Department of Postal Services’ Smart Postal program is expanding rapidly under the Government Courier Service to improve document delivery across Nepal. To date, 181,843 passports have been dispatched to District Administration Offices, with 4,642 already delivered directly to applicants. Likewise, 578,053 driving licenses issued by the Department of Transport Management have been distributed to districts, while 1,081 have reached recipients in areas such as Kaski, Morang, Banke, Parsa, Sunsari, Kalikot, and Bajhang. Officials stated that the initiative is being strengthened as part of the government’s governance reform efforts. Preparations are also underway to extend home delivery services to academic certificates, with 266 already delivered.
National census reveals nearly 38,000 businesses have ceased operations across Nepal
Preliminary findings from the National Economic Census indicate that nearly 38,000 industrial and commercial establishments in Nepal have either permanently or temporarily shut down, according to the National Statistics Office (NSO). The data was collected through nationwide surveys aimed at assessing employment, production, and business activities. Officials cited factors such as the post-pandemic economic slowdown, increasing operating expenses, weak consumer demand, and liquidity challenges faced by small and medium-sized enterprises. Despite the closures, the NSO noted that the detailed census results will support evidence-based policymaking, targeted assistance programs, and reforms designed to revitalize the business sector and strengthen economic stability.
Bird flu outbreak at poultry farms disrupts supply chain and causes losses
Authorities have confirmed an outbreak of Highly Pathogenic Avian Influenza at two commercial poultry farms in Kavrepalanchok, raising concerns about supply disruptions and financial impacts on the poultry industry. The infections were identified in Banepa Municipality-13 and Panauti Municipality-7 after laboratory testing followed unexpected poultry deaths. In response, officials culled 1,650 layer chickens and implemented containment and disinfection measures at both sites. Strict biosecurity protocols, including monitoring poultry transportation, have been enforced due to Kavre’s importance as a supplier to the Kathmandu Valley. Although officials say the outbreak remains under control, traders remain concerned about potential price increases and shortages if restrictions continue.
Integrated Check Post at Kakarbhitta border resumes operations
The Integrated Check Post Unit at the Kakarbhitta border has restarted operations after being out of service for nearly 10 months, reintroducing a unified inspection system for passengers and cargo. Customs officials, Nepal Police, and the Armed Police Force are now carrying out joint inspections from a single location to enhance border management, customs monitoring, and traveler services. The facility had been closed since it was damaged during protests last August, requiring separate inspection arrangements that created inconvenience for travelers. Authorities believe the restored one-stop system will strengthen efforts to prevent smuggling, tax evasion, and illegal trafficking while streamlining procedures at one of Nepal’s busiest border points.
Philim–Larkya Pass trekking route to remain closed for nine days
Chumanwobri Rural Municipality has announced a nine-day closure of the Philim–Larkya Pass trekking route to facilitate infrastructure improvement works on important mule tracks in the waterfall and Dam areas. The closure will be in effect from June 24 to July 2 and will allow for projects such as hume pipe installation, construction of safety railings, and trail widening. According to local officials, the upgrades are intended to improve safety and reduce landslide risks during the monsoon period. As a crucial section of the Manaslu Circuit trek and an important supply route for remote communities, the closure will affect both trekkers and local transport operations. Authorities have advised stakeholders to make alternative arrangements.
Traffic police collect Rs 2.29 million in fines within 24 hours
Traffic police in the Kathmandu Valley issued fines to 2,641 motorists for violating traffic regulations over a 24-hour period, generating Rs 2.29 million in revenue. According to the Kathmandu Valley Traffic Police Office, 79 drivers were penalized for driving under the influence of alcohol, while 147 faced action for operating unauthorized ride-sharing services. Additional violations included 154 cases of traffic signal breaches, 122 cases of speeding, 119 lane-discipline offences, 113 instances of unnecessary horn use, 119 cases of sidewalk parking, and 100 violations involving travel against one-way traffic. The remaining 1,688 motorists were penalized for various other traffic-related offences.
Sidingwa Rural Municipality introduces 50 percent electricity tariff subsidy
Sidingwa Rural Municipality has announced a 50 percent reduction in electricity charges for households consuming up to 50 units of power each month. The decision was approved during the municipality’s 19th council meeting and is intended to ease the financial burden on low- and middle-income families. Municipal officials reported that around 2,500 households use electricity in the area, and only those meeting the consumption threshold will be eligible for the discount. The municipality also unveiled a budget of Rs 530.8 million for the upcoming fiscal year, with priority given to agriculture, local production, rural road development, and livestock farming.
Madhesh Province accounts for 77 percent of Nepal’s mango production, targets export growth
Madhesh Province contributes approximately 77 percent of Nepal’s total mango production, further cementing its reputation as the nation’s “Mango Capital,” according to provincial agriculture statistics. The province cultivates mangoes across 29,099 hectares and produces around 395,794 metric tons annually from Nepal’s total output of 513,055 metric tons. Siraha, Saptari, and Rautahat are among the leading mango-producing districts. Despite the strong harvest, growers continue to struggle with low farmgate prices due to the influence of middlemen and inadequate storage infrastructure. Stakeholders have advocated for the development of cold storage facilities, processing industries, and agro-tourism programs under a proposed “Mango Tourism” initiative to increase value addition and expand exports. Provincial authorities are also preparing plans for processing hubs and modern farming systems.
Manahari Rural Municipality continues ‘Zero Home Delivery’ campaign and promotes digital governance
Manahari Rural Municipality has announced its policies and programs for the fiscal year 2026/27, maintaining its “Zero Home Delivery” initiative in the health sector. Presenting the plans during the 19th Village Assembly, Chairperson Ranjan Kalakheti highlighted priorities such as digital governance, quality education, enhanced healthcare services, agricultural modernization, and infrastructure expansion. Planned initiatives include digital health records, Management Information Systems for schools and government offices, and a mobile application to support data-driven decision-making. The municipality also aims to strengthen ICT access, improve mental health services, upgrade water and sanitation facilities, and advance rural infrastructure projects. Special emphasis has been placed on programs benefiting marginalized and vulnerable communities.
Lack of plant quarantine facility affects efficiency at Maheshpur Customs
The performance of the Maheshpur Customs Office in Nawalparasi has come under scrutiny due to the absence of a plant quarantine facility, despite its elevation to a main customs station. Traders report that the lack of on-site testing services for agricultural imports has delayed customs clearance and forced them to travel nearly 45 kilometers to Bhairahawa for sample inspections. Customs officials acknowledge that the situation has reduced operational efficiency and affected revenue collection. Business representatives warn that prolonged delays raise costs, increase the risk of spoilage for perishable goods, and could encourage smuggling activities. They also emphasize that insufficient testing poses biosecurity threats to domestic agriculture and have urged the government to establish a quarantine laboratory and integrated border services at the site.
Tikapur Municipality exceeds internal revenue target ahead of schedule
Tikapur Municipality in Kailali has surpassed its internal revenue target for the current fiscal year one month before the end of the reporting period. The municipality collected Rs 86.9 million within 11 months, exceeding its target of Rs 85 million, and officials expect total collections to surpass Rs 90 million by fiscal year-end. Property tax generated the highest revenue, contributing Rs 41.2 million, while tourism-related fees from Tikapur Park brought in Rs 13.2 million, supported by more than 200,000 visitors and revised ticket rates. However, rental income declined significantly, with approximately Rs 30 million remaining unpaid due to disputes over lease agreements and rental charges. Municipal officials noted the need to broaden the tax base and improve revenue administration in the future.
Sikta Project constructs four groundwater recharge ponds in Banke
The Sikta Irrigation Project has completed the construction of four groundwater recharge ponds in the Gabhar area of Baijanath Rural Municipality to improve water availability for both wildlife and local residents. Developed at a cost of Rs 40 million through the project’s corporate social responsibility program, the ponds were built following a request from Banke National Park. Project officials stated that the structures will help conserve rainwater, replenish groundwater reserves, support irrigation activities, provide drinking water for wildlife during dry seasons, and contribute to flood mitigation. Additional recharge ponds are planned for construction in the next fiscal year.
Kiwi farmer recognized as outstanding entrepreneur in Baglung
Commercial kiwi grower Jiwa Bahadur Khatri has been honored as the Outstanding Entrepreneur by Badigad Rural Municipality under a program designed to promote entrepreneurship and employment. After returning from employment in Dubai, Khatri invested Rs 100,000 to begin farming and has since expanded his kiwi and Akabare chili cultivation to 20,349.6 square meters. He now generates an estimated net annual income of Rs 1.5 million. Selected as the top performer among 91 applicants, Khatri received a cash award of Rs 150,000. Additionally, nine other entrepreneurs were each awarded Rs 100,000 through the same initiative.
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