KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest economic and policy developments present a mixed picture of Nepal’s economy, where signs of structural transformation are emerging alongside persistent challenges.
Strong electric vehicle imports worth Rs 25.55 billion and Malaysia’s return as the leading destination for Nepali migrant workers indicate continued consumer demand and reliance on overseas employment as key economic drivers.
At the same time, the expansion of school feeding programs, production-based agricultural subsidies, and increased tourist arrivals in protected areas suggest efforts to strengthen rural livelihoods, food security, and tourism-based growth.
However, the economy continues to face headwinds. NEPSE’s third consecutive decline reflects weak investor sentiment, while falling gold prices signal softening demand and global market adjustments. Delayed monsoon rains and fertilizer shortages are slowing paddy transplantation, raising concerns about agricultural output and food security.
Concerns over governance and implementation also remain evident, from excessive election spending and unresolved compensation for looted bank gold to low budget utilization in local governments.
Against this backdrop, the private sector’s call for monetary reforms highlights growing pressure on policymakers to revive domestic economic activity, improve credit flows, and restore confidence in investment and business environments.
NEPSE declines for third straight session
The Nepal Stock Exchange (NEPSE) extended its losing streak on Wednesday, ending lower for a third consecutive trading day. The benchmark index shed 14.45 points, or 0.54 percent, to close at 2,660.02. Despite the decline, daily turnover increased slightly to Rs 4.41 billion, with more than 10.77 million shares traded through 72,917 transactions involving 338 listed companies. Market sentiment remained weak, with 202 stocks declining and only 62 advancing. Finance and Trading were the only sectors to post gains, while Hydropower and Mutual Funds were among the biggest losers, although several hydropower companies reached the upper trading limit.
Gold and silver prices continue to fall
Gold and silver prices declined further in Nepal’s domestic market on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold dropped by Rs 3,600 per tola to Rs 283,500, down from Rs 287,100 a day earlier. Silver also fell by Rs 105 per tola, trading at Rs 4,485 compared to Rs 4,590 on Tuesday. In international markets, gold was priced at USD 4,064 per ounce, while silver traded at USD 61 per ounce.
Electric vehicle imports exceed Rs 25.5 billion in 11 months
Nepal imported 10,845 electric vehicles (EVs) worth Rs 25.55 billion during the first 11 months of the current fiscal year, according to the Department of Customs. The imports covered vehicles with power capacities ranging from 50 kW to 201 kW. A total of 3,680 EVs with capacities of up to 50 kW, valued at Rs 5.65 billion, entered the country, while 6,357 vehicles in the 51–100 kW segment worth Rs 16.5 billion were imported. The figures reflect the continued rise in demand for electric mobility across Nepal.
CNI urges reforms in upcoming monetary policy
The Confederation of Nepalese Industries (CNI) has submitted recommendations for the monetary policy of fiscal year 2026/27 to Nepal Rastra Bank (NRB), urging measures to stimulate sluggish domestic economic activity. CNI President Virendra Raj Pandey presented the proposals to Governor Prof. Dr. Bishwambher Nath Poudel, recommending reforms such as easing directed lending requirements, revising sector-specific working capital provisions, modernizing interest rate mechanisms, extending loan classification deadlines and expanding credit access for startups. Governor Poudel said the forthcoming policy would focus on maintaining interest rate and financial stability while strengthening engagement with the private sector.
Malaysia regains position as top destination for Nepali workers
Malaysia has once again emerged as the leading destination for Nepali migrant workers, according to the Department of Foreign Employment (DoFE). Labor permit approvals reached 12,601 in February/March, 18,649 in March/April, 17,252 in April/May and 14,192 in May/June. Officials attribute the trend to geopolitical uncertainties in West Asia and changes in Malaysia’s labor policies, which have increased demand in manufacturing and construction. Analysts also point to relatively better wages, overtime opportunities, insurance coverage and working conditions. During May/June alone, 61,072 Nepalis obtained foreign employment permits, with Malaysia, the UAE, Qatar and Saudi Arabia among the top destinations.
Delayed monsoon slows paddy transplantation nationwide
Paddy plantation has been completed on around 137,000 hectares of land across Nepal, representing roughly 10 percent of the total area targeted for cultivation this season, according to the Department of Agriculture. This marks a modest increase of 0.4 percent compared to the same period last year. Karnali Province has recorded the highest transplantation progress at 22.8 percent, while Bagmati Province lags behind at 2.3 percent. Madhesh Province has achieved about 5 percent coverage. Officials say delayed monsoon rainfall, erratic weather patterns and fertilizer shortages have slowed progress, although advisory services are being provided to assist farmers.
Lalitpur Metropolitan City unveils Rs 7.48 billion budget
Lalitpur Metropolitan City has announced a budget of Rs 7.48 billion for fiscal year 2026/27 during its ninth Municipal Assembly. Mayor Chiri Babu Maharjan presented the spending plan, which is marginally higher than the current year’s budget of Rs 7.47 billion. The budget allocates Rs 3.25 billion for recurrent expenditure, representing a 9 percent increase, while Rs 4.23 billion has been earmarked for capital spending, a decline of 6 percent from the previous year. Officials said the budget seeks to balance administrative expenses with infrastructure and development priorities.
School feeding initiative expands with new partnership
The United Nations World Food Programme (WFP), Lions Clubs International Foundation (LCIF) and World Food Program USA have launched a partnership to expand Nepal’s home-grown school feeding program. Building on a 2025 pilot project that benefited around 70,000 children and connected schools with local farmers, the expanded 2026–2027 initiative includes a joint investment of USD 500,000. The program aims to strengthen locally sourced school meals, improve kitchen safety standards and support decentralized implementation through local governments. It also seeks to enhance child nutrition, boost school attendance and create stable markets for farmers.
Defeated candidates outspent winners in House elections: Study
A study released by the Election Observation Committee (EOC) Nepal shows that unsuccessful candidates spent significantly more on election campaigns than winning candidates during the House of Representatives elections held on March 4. Based on data from 144 candidates across 10 constituencies, the report found that winners spent an average of Rs 8.8 million, while runners-up spent Rs 28.3 million on average. Campaign expenditure exceeded the legal ceiling of Rs 2.5–3.3 million by 118 percent, with defeated candidates accounting for 67 percent of total spending. The study also highlights growing use of digital and informal campaigning and calls for stronger oversight, disclosure requirements and banking reforms.
RBB postpones decision on looted gold compensation until board is formed
Rastriya Banijya Bank (RBB) has said it will make a final decision on compensation for gold stolen from its New Baneshwor branch during the 2025 Gen Z protests only after its Board of Directors is fully constituted. The bank has requested affected gold-loan customers to halt their protests until mid-July. Around 18 kilograms of pledged gold were looted during the unrest in September 2025. Although RBB had earlier agreed to compensate borrowers based on the market value of the gold at the time of the incident, victims continue to demand the return of an equivalent quantity of physical gold.
Biratnagar presents Rs 3.56 billion budget despite spending concerns
Biratnagar Metropolitan City has introduced a Rs 3.56 billion budget for fiscal year 2026/27 amid concerns over weak implementation of the current budget. Deputy Mayor Shilpa Nirala Karki presented the proposal at the municipal assembly, outlining revenue sources that include federal and provincial grants, revenue-sharing arrangements and internal collections. Infrastructure development received the largest allocation at Rs 1.60 billion, while administrative and social development programs also secured significant funding. The metropolis acknowledged that only 44.76 percent of the current budget has been spent and announced incentives aimed at supporting women-led enterprises.
Traffic fines generate over Rs 1.72 million in Kathmandu Valley
Traffic police collected more than Rs 1.72 million in fines from 2,550 vehicles that violated traffic regulations across the Kathmandu Valley over the past 24 hours. According to the Kathmandu Valley Traffic Police Office, offences included 102 cases of drunk driving, 142 unauthorized ride-sharing violations, 140 traffic signal breaches and 207 incidents of overspeeding. Authorities also recorded 56 lane-discipline violations and 108 cases of unnecessary honking. In addition, 14 vehicles were penalized for excessive smoke emissions and 35 for operating without proper inspections. Another 1,746 motorists faced action for various other traffic-related offences.
Kawasoti provides production-based subsidies to dairy farmers
Kawasoti Municipality has distributed Rs 2.8 million in production-based subsidies to dairy farmers during the current fiscal year. The support was channeled through five local cooperatives and was calculated based on the collection of 1.54 million liters of milk. Although the municipality initially planned a subsidy of Rs 2 per liter, the rate was adjusted due to higher-than-expected production volumes. Officials said the program has helped lower production costs and encouraged increased output. For the upcoming fiscal year, the municipality has allocated Rs 5.4 million for production-based subsidies covering both milk and fish farming.
Businesses must uphold human rights standards: Justice Fuyal
Supreme Court Justice Hari Prasad Fuyal has said businesses must operate in a manner that protects and promotes human rights. Speaking at a programme organized by the National Human Rights Commission (NHRC), he stressed that companies should be accountable for any human rights risks arising from their operations. Justice Fuyal emphasized the need for effective regulation, transparent monitoring and access to justice for affected communities. He noted that development should be assessed not only through economic growth but also through human dignity, environmental sustainability and social justice.
Protected areas draw majority of foreign tourists
Protected areas continue to be a major attraction for international visitors, with around 60 percent of foreign tourists visiting Nepal travelling to national parks, wildlife reserves and conservation areas. According to the Department of National Parks and Wildlife Conservation, a total of 1.09 million domestic and international visitors entered protected areas during fiscal year 2024/25. The figure included 511,762 foreign tourists and 586,074 Nepali visitors, generating Rs 1.05 billion in revenue through entry fees. Shivapuri-Nagarjun National Park recorded the highest number of visitors, followed by Annapurna Conservation Area and Chitwan National Park. Protected areas currently cover 23.39 percent of Nepal’s total land area.
Birgunj unveils Rs 4.42 billion budget for next fiscal year
Birgunj Metropolitan City has presented a budget of Rs 4.42 billion for fiscal year 2026/27 during its 20th Municipal Assembly. The budget was tabled by executive member Jagat Sah Kanu on behalf of Acting Mayor Imtiyaz Alam. Key priority sectors include education, health, sanitation, agriculture, tourism, industry, infrastructure and technology. Of the total allocation, Rs 2.40 billion has been earmarked for recurrent expenditure, Rs 1.96 billion for capital expenditure and Rs 50 million for financial management. Funding will come from federal and provincial grants, revenue sharing, internal income and other sources.
Nepalgunj announces Rs 1.76 billion budget
Nepalgunj Sub-Metropolitan City has introduced a budget of Rs 1.76 billion along with its policies and programmes for fiscal year 2026/27. Presenting the budget at the 19th municipal assembly, Mayor Prashant Bista said the city aims to become a technology-friendly, inclusive and accountable local government. The budget will be financed through federal grants, fiscal equalization funds, internal revenue, revenue-sharing mechanisms, land registration fees, provincial support and local taxes. Officials said the plan focuses on infrastructure development and improving public services.
Bhat-Bhateni’s Chuchepati outlet reopens after 10 months
The Chuchepati branch of Bhat-Bhateni Supermarket has resumed operations nearly 10 months after it was damaged by fire during the 2025 Gen Z protests. The Kathmandu outlet reopened on Wednesday and attracted a large number of shoppers. Following extensive reconstruction, the branch has been upgraded with modern facilities and improved service arrangements. Management said the renovated store is designed to provide a more convenient shopping experience and better meet growing customer demand in the area.
New Karnali bridge improves connectivity between Kailali and Bardiya
A newly completed 752-metre concrete bridge over the Karnali River has significantly improved transportation between Tikapur Municipality in Kailali and Geruwa Rural Municipality in Bardiya. Constructed at a cost of Rs 1.18 billion, including associated road and river training works, the bridge has replaced boat crossings and reduced travel costs for local residents. Improved road connections are expected to strengthen trade, enhance market access and support tourism in the region, particularly around attractions such as Tikapur Park and nearby community forest areas.
Missing fuel tanker recovered with petrol shortage
A fuel tanker carrying 20,000 litres of petrol for Nepal Oil Corporation’s Koshi Provincial Office was recovered in Sunsari after going missing from a parking area in Biratnagar on June 22. The tanker, which had transported fuel from the Indian Oil Corporation depot in Siliguri, disappeared from Kanchanbari in the early hours of the morning. Police later found the vehicle abandoned in Bhokraha Rural Municipality, about 17 kilometres away, with damaged locks. An inspection revealed that 973 litres of petrol were missing. Authorities have launched an investigation into the incident.
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