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 policy developments present a mixed picture of opportunity, reform and persistent structural challenges. Rising gold prices, record egg prices and substantial agricultural imports through Kakarbhitta point to inflationary and supply-side pressures affecting consumers and the broader economy. At the same time, growing demand for electric vehicles and preparations for the NADA Auto Show indicate expanding interest in modern transport technologies and automotive investment.
The government is pursuing reforms intended to stimulate economic activity, including seasonal electricity tariffs to increase domestic power consumption, an ambitious telecommunications policy to expand broadband and ICT, and measures to resolve land ownership disputes. Agreements between NCC and NRNA also seek to mobilize investment, skills and capital from Nepalis abroad. Meanwhile, returnee migrants establishing sukuti businesses demonstrate the potential for reintegration and entrepreneurship.
However, institutional and regulatory weaknesses remain significant. Malaysia’s decision to restrict recruitment to 25 agencies raises concerns about competition and workers’ access to foreign employment, while fraud cases highlight continuing risks for migrant workers. SEZ regulations that reportedly caused major private investment losses illustrate the consequences of inflexible policies. Agriculture also faces threats from pests and declining poultry production. Overall, Nepal’s economy shows strong entrepreneurial and investment potential, but sustainable progress will depend on better regulation, stronger institutions, infrastructure development and effective implementation of government policies.
Gold price climbs Rs 2,800 per tola
The price of gold in Nepal’s domestic market increased by Rs 2,800 per tola on Sunday, reaching Rs 319,500 per tola, equivalent to 11.66 grams, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold had been trading at Rs 316,700 per tola on Friday. In contrast, the price of silver dropped by Rs 10 per tola to Rs 4,975 on Sunday from Rs 4,985 on Friday, the federation reported.
Foreign Employment Department settles 86% of complaints in one month
The Department of Foreign Employment resolved 86% of complaints involving foreign employment fraud over the past month and recovered Rs 78.16 million for 288 affected workers. Between July 17 and August 16, the department received 381 complaints through its online system, rescued 26 Nepali workers and distributed Rs 10.58 million in compensation to 54 victims. It also filed 71 cases in court and settled 178 other complaints through mutual agreements, leading to Rs 66.42 million being paid to workers. In addition, the department recovered Rs 1.16 million from manpower companies that collected money from workers but failed to send them abroad. Inspections resulted in another Rs 3.9 million in fines.
Seasonal electricity tariffs planned to increase domestic consumption
Energy Minister Biraj Bhakta Shrestha said the government intends to introduce seasonal electricity pricing and concessional rates for major consumers to encourage greater domestic use of surplus power generated during the monsoon. Speaking in Biratnagar, Shrestha said the tariff structure was being reviewed with the aim of reducing industrial operating costs and increasing electricity demand. He said nine substations were also under construction in the Sunsari-Morang region to improve the reliability of electricity supplies. Industrialists called for a stable supply of high-quality electricity and urged authorities to accelerate construction of the Barju and Keraun substations and expand infrastructure in the Katahari industrial area. They also demanded the abolition of demand charges and value-added tax (VAT) on electricity.
Land disputes could delay property certificate distribution, minister warns
Land Management Minister Pratibha Rawal has emphasized the importance of cooperation among all three tiers of government to settle land disputes and issue ownership certificates to landless settlers. During a visit to Dodhara Chandani Municipality in Kanchanpur, Rawal warned that a lack of coordination at any level could hamper the distribution of certificates across the municipality. She said the government was considering policy reforms to resolve existing challenges and urged officials to carry out their responsibilities without political bias. Settling land ownership disputes could improve household security, make it easier for families to access formal loans and encourage investment in property and other productive sectors. Rawal also inspected the construction site of Majhgaun Airport and the proposed dry port in Dodhara Chandani.
NCC and NRNA agree to promote investment and trade
The Nepal Chamber of Commerce (NCC) and the Non-Resident Nepali Association (NRNA) have entered into a memorandum of understanding (MoU) to encourage investment, trade, business expansion and broader economic cooperation. NCC President Kamlesh Kumar Agrawal and NRNA President Dr. Hemraj Sharma signed the agreement on Sunday. The partnership will involve jointly organizing investment conferences, road shows and trade summits, as well as supporting export-oriented industries, small and medium-sized enterprises (SMEs) and startups. The organizations also plan to conduct training sessions and workshops. Agrawal stressed that stable, predictable and transparent economic policies are essential for attracting foreign investment, while Sharma highlighted legal barriers facing investors and expressed a commitment to mobilizing the expertise, experience, skills and capital of Nepalis abroad for Nepal’s economic development.
Microfinance borrowers head home following 14-point agreement with government
Microfinance borrowers who had been protesting outside the National Human Rights Commission office in Pulchowk, Lalitpur, returned to their home districts on Sunday after reaching a 14-point agreement with the Government of Nepal. The demonstration was called off following negotiations between government representatives and the borrowers on Saturday, August 22. The government arranged Sajha Yatayat buses to transport the protesters to their respective districts. In the presence of representatives from various government agencies, 323 borrowers left Kathmandu in eight buses heading to Jhapa, Morang, Sarlahi, Mahottari, Sindhuli, Bara, Parsa and Nawalparasi.
Draft telecom policy outlines ambitious broadband and ICT goals
The Nepal Telecommunications Authority has drafted the Integrated Telecommunications Policy 2026, which aims to widen broadband coverage, reduce the cost of internet services and increase the economic contribution of information and communication technology (ICT). The proposed policy sets a target of providing 50 Mbps broadband access to 80% of the population within five years and 98% within 10 years. It also seeks to limit broadband expenses to 2% of per capita gross national income initially, with the ceiling later reduced to 1.5%. The policy targets raising ICT’s contribution to gross domestic product (GDP) to 4% within five years and 7% within a decade. Proposed changes include reforms to licensing, spectrum management and foreign investment, along with initiatives to expand 5G, fiber-optic networks, the Internet of Things (IoT), satellite services and digital innovation.
EV demand rises as Nepal’s vehicle imports show mixed trends
Nepal’s automobile market posted mixed results during the first month of fiscal year 2026/27, as imports of cars, jeeps and vans increased while motorcycle and scooter imports declined slightly. Data from the Department of Customs show that 987 four-wheelers were imported in July, up about 24% from the 797 units recorded during the same month a year earlier. Electric vehicles (EVs) drove much of the growth, with imports of electric cars rising to 689 from 160 in the corresponding period last year. In contrast, motorcycle and scooter imports fell 7.52% year-on-year to 27,806 units, although electric two-wheelers reached a record 5,174 units. Four-wheelers imported during the month were valued at Rs 2.19 billion, while two-wheelers accounted for Rs 4 billion.
Egg prices reach record levels in Nepal
Egg prices in Nepal have reached unprecedented levels as declining production has tightened supplies, with the price of a crate rising by up to Rs 75 over the past month. According to the Nepal Layers Poultry Farmers Association, around 1.3 million layer chickens across the country have died or been lost due to bird flu, extreme temperatures and rising production expenses. XL eggs are currently selling for Rs 590 per crate, while large, medium and small eggs are priced at Rs 575, Rs 520 and Rs 448, respectively. Daily production has fallen from approximately 28,000 cartons to about 22,000, contributing to continued price increases.
Agricultural imports through Kakarbhitta surpass Rs 24 billion
Nepal imported agricultural goods worth Rs 24.2674 billion through the Kakarbhitta border point during fiscal year 2025/26, according to the Plant Quarantine Office in Kakarbhitta. Office chief Nand Kishore Singh said the imports included cereals, pulses, fresh vegetables and fruits from India, China, Australia and Bangladesh, with cereals and pulses making up the largest portion. Imports from India included rice valued at Rs 242 million and pulses worth Rs 188 million. In addition, 1,996 metric tons of gram worth Rs 182 million and 796 metric tons of pulses valued at Rs 108 million were brought in from Australia and India.
NADA Auto Show preparations enter final stage
Preparations for the NADA Auto Show, scheduled to take place from August 25 to 30 at Bhrikutimandap in Kathmandu, are nearing completion, with workers and technicians putting the finishing touches on exhibition stalls. The Golden Jubilee edition, organized by the NADA Automobiles Association of Nepal, will feature more than 200 stalls spread across approximately 300,000 square feet. The event will showcase 53 vehicle brands, comprising 23 passenger vehicle brands, 17 light commercial vehicle brands and 13 two-wheeler brands. Visitors will be able to explore new vehicles, EVs, automotive technologies, auto parts, tires, batteries, lubricants and charging systems, as well as financial and insurance services. A dedicated “Made in Nepal and Made for Nepal” pavilion will also be part of the exhibition.
Kathmandu gives private hostels one month to meet government standards
The Kathmandu District Administration Office has ordered privately operated hostels to comply with government standards within one month, warning that those failing to meet the requirements could be fined or shut down. Inspections uncovered problems including excessive charges, poor food and sanitation, inadequate facilities and weak security arrangements. Some hostel operators were fined up to Rs 300,000 and had their establishments sealed. The stricter requirements could affect both the price and standard of student accommodation, as operators may need to improve infrastructure, sanitation, food services, security, electricity, internet access and backup systems. The administration has also made registration and renewal compulsory and banned the use or possession of drugs, alcohol, cigarettes and tobacco products within hostel premises.
Malaysia’s 25-agency recruitment plan raises monopoly concerns in Nepal
Malaysia’s decision to allow the recruitment of Nepali workers through only 25 designated manpower agencies has raised concerns about reduced competition and the possibility of a recruitment monopoly. The agencies were selected under Malaysia’s Foreign Workers Centralized Management System without prior consultation with the Government of Nepal, despite the two countries having a bilateral labor agreement. Nepal’s Ministry of Youth, Labor and Employment has asked Malaysia to reconsider the arrangement, while the Nepal Association of Foreign Employment Agencies suspended the memberships of the 25 agencies and sought clarification from them. NAFEA said Nepal has nearly 1,200 licensed manpower agencies and warned that limiting recruitment to just 25 companies could weaken fair competition and restrict workers’ opportunities to seek overseas employment.
Returnee migrants turn Laxmimarga into a thriving sukuti market
Young Nepalis who previously worked in Qatar and Malaysia are building successful businesses after returning home, with dried water buffalo meat, or sukuti, turning Laxmimarga into a growing commercial hub. Prem Shrestha, who spent six years working in Qatar, now sells several hundred kilograms of sukuti each month and earns up to Rs 200,000 monthly. He purchases fresh water buffalo meat for around Rs 700 per kilogram, which reduces to about one-fourth of its original weight after drying. Other returnee workers, including Dilip Shrestha and Shobhitman Shrestha, have also entered the business, saying they prefer working with their families in Nepal. The market has also attracted demand from Nepalis living in countries such as the UK and US.
SEZ regulations force Panchakanya to demolish Rs 40 million industrial facility
Panchakanya Group has started dismantling an industrial structure it built at the Bhairahawa Special Economic Zone (SEZ) after regulations prevented the facility from being sold to another investor. Panchakanya SS Export Pvt. Ltd. had expected to recover approximately Rs 30 million by selling the building intact, but now estimates that it will receive only about Rs 2 million from scrap materials, leaving a loss of nearly Rs 38 million. The factory began operations in March 2021 with a production capacity of 40 tons per day and exported steel products to India. However, difficulties with exports and SEZ restrictions on domestic sales led the company to withdraw from the zone in August 2026. Industrialists have criticized the rigid regulations, saying they expose private investment to significant risks.
Chiranjibi Oli elected president of Nepalgunj Chamber
Chiranjibi Oli has been elected president of the Nepalgunj Chamber of Commerce and Industry in Banke after receiving 1,386 votes, defeating his competitor Dhruva Prasad Dahal, who secured 374 votes. Oli had previously served as the chamber’s senior vice president. Rupa Ojha was elected female vice president with 1,166 votes, while Vishnu Shrestha won the post of general secretary with 1,287 votes. Pradeep Acharya was elected deputy general secretary with 864 votes, and Tikamani Upadhyaya became treasurer after receiving 917 votes. Kamal Kumar Karki and Vishnu Prasad Shrestha were elected vice presidents unopposed. Ten additional candidates secured seats on the executive committee.
Paddy pest outbreaks threaten harvests in Salyan
Farmers in Salyan are increasingly worried about pest and disease outbreaks affecting paddy fields in Kalimati, Triveni and Chhatreshwari rural municipalities. Agricultural technicians have detected stem borers, leaf folders, rice bugs, planthoppers and hispa infestations in several farming areas. Officials have inspected affected fields and advised farmers on appropriate pest-control methods. The Salyan Agriculture Development Office said local governments are currently leading control efforts and will receive pesticides and technical assistance if the situation becomes more severe. Agriculture officials warned that widespread infestations could significantly reduce production and urged farmers to monitor their fields regularly and report outbreaks promptly to local agriculture offices.
NATTA and TBAN collaborate to promote Nepal’s tourism industry
The Nepal Association of Tour and Travel Agents (NATTA) and the Tourist Bus Association of Nepal (TBAN) have agreed to work together to strengthen Nepal’s tourism sector and tackle common industry challenges. Speaking at an event in Kathmandu, NATTA President Bharat Jung Pandey described TBAN as an important part of the tourism industry and pledged joint action on tourism-related matters. NATTA General Secretary Raj Kumar Devkota said the absence of a dedicated tourist bus terminal is affecting the broader tourism sector, while TBAN President Bhishma Prasad Neupane outlined the difficulties faced by tourist bus operators. TBAN currently operates around 100 tourist buses each day to destinations such as Pokhara, Chitwan, Lumbini and Janakpur.
Two arrested for allegedly defrauding job seekers of Rs 1.7 million
Police have arrested two individuals accused of taking a combined Rs 1.7 million from job seekers by promising them well-paying overseas employment. According to the Central Police Newsroom, Nawin Lama, 37, of Mandandeupur Municipality-12, Kavrepalanchowk, allegedly collected Rs 1.4 million from three people after promising to arrange jobs in Malaysia. Ramesh Reule, 50, of Sharada Municipality-2, Salyan, is accused of taking Rs 300,000 from another individual by offering a job in the United States. Both suspects allegedly cut off contact with the victims after receiving the money. A team from the Kathmandu Valley Crime Investigation Office arrested them on Friday.
Myagdi completes 4.19 km of tourism footpaths
Tourism infrastructure projects in Myagdi resulted in the construction of 4.19 kilometers of footpaths during fiscal year 2025/26. The Integrated Service Office Myagdi had set aside Rs 14 million for 24 projects, with 19 projects costing Rs 11 million successfully completed. The work included paved and unpaved trails, shelters, rest areas and retaining walls at several tourist destinations. Five projects with a combined budget of Rs 3 million could not proceed because of difficult terrain, unfavorable weather and other obstacles. For fiscal year 2026/27, the Gandaki Provincial Government has allocated Rs 18.5 million for 24 tourism infrastructure projects, with field surveys, cost estimates and the formation of user committees currently in progress.
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