KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy displayed mixed signals, with positive movement in financial markets alongside persistent structural challenges in trade, production and social security. The Nepal Stock Exchange showed renewed investor activity as the NEPSE index and turnover increased, although sectoral performance remained uneven.
Gold and silver prices declined, reflecting short-term changes in domestic and international market conditions. Meanwhile, Nepal continued to face a large import burden, highlighted by diesel and smartphone imports, indicating strong dependence on foreign goods and pressure on the trade balance, particularly with India and China.
The government and regulatory bodies continued efforts to strengthen financial governance through measures such as mandatory national ID verification for digital wallets, increased action against money laundering and restrictions on illegal digital platforms. Social protection systems also remain an area of concern, as most migrant workers registered with the Social Security Fund are not making regular contributions, limiting the effectiveness of the scheme.
Provincial economic performance showed varied trends, with Sudurpashchim and Dang exceeding or maintaining significant revenue collections, while Madhesh focused on improving traffic management and revenue generation. In agriculture, declining food grain production and shrinking cultivated land in Jhapa highlight growing concerns over rural productivity and land use. Infrastructure and development initiatives, such as the Harichowk-Yamdi road expansion and Gandaki’s agricultural loan subsidies, reflect attempts to boost connectivity, employment and local production.
Overall, the developments indicate gradual institutional reforms and investment efforts, but Nepal continues to face challenges related to trade dependency, economic sustainability, agricultural decline and effective implementation of public policies.
Nepal’s public debt nears Rs 3 trillion
Nepal’s total public debt has climbed to nearly Rs 3 trillion, reaching Rs 2.97 trillion by the end of the last fiscal year 2025/26, according to the latest monthly report released by the Public Debt Management Office. The report shows that the country’s total public debt stood at Rs 2.67 trillion at the beginning of the fiscal year. Over the course of the year, the debt increased by around Rs 300.85 billion, including losses resulting from exchange rate fluctuations. The total public debt now amounts to 45.07 percent of Nepal’s Gross Domestic Product (GDP). Of the total debt, 53.77 percent is external debt, while 46.23 percent is domestic debt. By the end of the fiscal year, external debt had reached Rs 1.60 trillion, while domestic debt stood at Rs 1.38 trillion.
NEPSE gains 7.90 points as turnover reaches Rs 6.26 billion
The Nepal Stock Exchange (NEPSE) index increased by 7.90 points on Friday to close at 2,734.63, while daily turnover rose to Rs 6.26 billion from Rs 4.67 billion the previous day. Share prices of 143 companies increased, 118 declined and 15 remained unchanged. The Banking sector recorded the highest gain, followed by Development Banks and Hotels and Tourism, while Trading, Manufacturing and Processing, Hydropower, Finance and Others posted losses. Ridi Power Company, NRN Infrastructure and Development, Kumari Bank, Ankhukhola Jalvidhyut Company and Reliance Spinning Mills were among the most actively traded companies. Everest Color Company was the top gainer of the day, with its share price rising 15 percent, while Corporate Development Bank recorded the largest decline, dropping 7.38 percent.
Nepal’s foreign trade rises by 15.88 percent, diesel tops imports and soybean oil leads exports
Nepal’s foreign trade increased by 15.88 percent in the last fiscal year 2025/26 compared to the previous fiscal year, according to data from the Department of Customs. During the review period, Nepal imported goods worth Rs 2.09 trillion, marking a 16.20 percent increase compared to the previous fiscal year. Similarly, exports rose to Rs 315.29 billion, an increase of 13.81 percent compared to the previous year. The data shows that petroleum products continued to dominate Nepal’s import basket, with diesel recording the highest import value. Meanwhile, processed soybean oil and raw materials emerged as the country’s top export item.
Gold falls to Rs 285,500 per tola, silver to Rs 4,350
Gold and silver prices declined in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices fell by Rs 5,800 per tola (11.66 grams) to Rs 285,500. Gold was traded at Rs 291,300 per tola on Thursday. Similarly, silver prices dropped by Rs 155 per tola to Rs 4,350, compared to Rs 4,505 per tola on Thursday.
NRB requires national ID verification for digital wallet users
The Nepal Rastra Bank (NRB) has directed all payment service providers to verify digital wallet users against national identity card records under its unified directives. Wallet operators must collect self-declarations from users regarding their national identity cards and update electronic records by October 17, 2026. Users who do not have national identity cards must receive monthly reminders through mobile applications to complete their Know Your Customer (KYC) updates. Nepali citizens living abroad and individuals unable to independently manage their affairs may open digital wallets using alternative documents, provided their details are updated within 35 days of returning to Nepal.
Government maintains Rs 2.5 million deposit rule for educational consultancies
Minister for Education and Sports Sasmit Pokharel has said the government will not withdraw the mandatory Rs 2.5 million deposit requirement imposed on educational consultancy operators. Speaking at Singha Durbar, Minister Pokharel said the provision under the Educational Consultancy, Language Teaching, and Preparation Class Operation and Management Regulation 2026 would remain in place. He also urged educational institutions and government offices to fully implement the two-day weekly weekend holiday system and said discussions with Dr Govinda KC are continuing.
Diesel imports surpass Rs 172 billion
Nepal imported diesel worth Rs 172.42 billion in fiscal year 2025/26, making it the country’s largest imported petroleum product, according to the Department of Customs. Other major imports included crude soybean oil worth Rs 132.76 billion, petrol worth Rs 77.26 billion, liquefied petroleum gas worth Rs 60.28 billion and semi-processed iron worth Rs 58.52 billion. Soybean oil was the leading export item, valued at Rs 128.74 billion. The country recorded trade deficits of Rs 951.95 billion with India and Rs 423.35 billion with China.
Smartphone imports reach Rs 48 billion in FY 2025/26
Nepal imported 2,267,419 smartphones worth Rs 48.693 billion in fiscal year 2025/26, marking a 37 percent increase compared to the previous year, according to the Department of Customs. The imports generated Rs 9.082 billion in government revenue. China accounted for the largest share, supplying 1,889,664 smartphones worth Rs 36.792 billion, followed by India with 364,842 units valued at Rs 10.99 billion. The United States supplied 1,789 units.
SSF says majority of overseas workers do not make regular contributions
Around 92 percent of migrant workers registered with the Social Security Fund (SSF) do not make regular monthly contributions after obtaining labour permits, resulting in more than Rs 5 billion in missed monthly deposits, according to SSF statistics. Of the 2.332 million overseas workers registered with the fund, only around 8 percent continue regular contributions. Their total deposits amount to Rs 651 million, significantly lower than the Rs 116.469 billion contributed by 716,000 formal sector workers. The fund said many migrant workers treat registration as a requirement for labour approval rather than a long-term social security arrangement.
Health Insurance Board releases Rs 2 billion in claim payments
The Health Insurance Board has released Rs 2.048 billion for approved health insurance claims up to mid-January 2026, transferring the payments directly to the bank accounts of healthcare institutions providing insured services. The payment covers claims up to January 14, 2026, for fiscal year 2025/26. The board said it remains committed to regular, transparent and phased settlement of claims to partner hospitals and health facilities nationwide.
Sudurpashchim exceeds internal revenue target, collects Rs 1.898 billion
Sudurpashchim Province collected Rs 1.898 billion in internal revenue in fiscal year 2025/26, exceeding its target of Rs 1.65 billion by Rs 248 million. The Provincial Treasury Controller Office attributed the increase largely to insurance payments received for government vehicles damaged during the Gen Z protest on September 9, 2025. Despite exceeding its target, the province’s annual internal revenue collection has remained below Rs 2 billion for consecutive years.
Madhesh collects nearly Rs 130 million in traffic revenue
Madhesh Province collected Rs 111.5 million in revenue from 110,755 traffic rule violations during fiscal year 2025/26. The province also collected Rs 15.4 million in fines from 848 overloaded vehicles penalized through transport offices. Officials said revenue collection declined due to a two-month disruption caused by the Gen Z protest and improved compliance among road users. However, traffic accidents increased to 11,416 cases across eight districts, while fatalities fell by 30 to 534. Motorcycles accounted for the highest number of violations and accidents, with 7,851 cases. Authorities conducted 26,883 awareness programmes involving 1,424,844 participants.
Harichowk-Yamdi road upgraded into four-lane highway at Rs 480 million
The Harichowk-Yamdi section of the road in Pokhara has been upgraded into a four-lane highway following repeated demands from local residents. The 2.2-kilometre section, part of the Bhupi Sherchan Highway and Mid-Hill Highway, gained attention after locals staged a protest by planting paddy on the muddy road on National Paddy Day on June 29, 2024. Motidan Construction Sewa completed the project under a contract awarded on July 30, 2022, at a cost of Rs 480 million. The project was completed after three deadline extensions, with the final deadline ending in mid-May 2026.
Gandaki allocates Rs 20 million for youth agricultural loan subsidies
Gandaki Province has allocated Rs 20 million under its Return to Village programme to provide interest subsidies on agricultural loans for youths returning from foreign employment or urban areas to start farming businesses. The Ministry of Agriculture, Land Management and Cooperatives also announced Rs 10 million for agricultural ambulance support and Rs 26 million for organic fertilizer subsidies and production incentives. The initiatives aim to promote local employment and increase agricultural production in the province.
Nepal Oil Corporation says no LPG shortage in Surkhet
The Surkhet branch of Nepal Oil Corporation (NOC) has clarified that there is no shortage of liquefied petroleum gas (LPG) in Birendranagar, attributing recent supply issues to panic buying and hoarding. Branch chief Dipak Kumar Ghimire said regular LPG imports from India are continuing and the corporation has introduced a “one person, one cylinder” distribution system. Under the arrangement, 2,922 cylinders will be distributed through authorized dealers at Rs 2,060 per cylinder. The corporation has urged consumers not to stockpile LPG and requested them to report cases of overcharging.
Jhapa sees decline in food grain production and cultivated area
Jhapa produced 761,433 metric tons of food grains in fiscal year 2025/26, down from 852,208.25 metric tons in the previous year, as the area under cultivation continued to shrink. According to the Agriculture Knowledge Centre, food crops were cultivated on 130,386 hectares during the year, compared to 145,326.06 hectares in 2024/25, a reduction of nearly 14,940 hectares. The district produced 377,534.35 metric tons of monsoon paddy, 89,655.30 metric tons of spring paddy, and 283,187.88 metric tons of maize, along with millet, buckwheat, wheat and barley. The centre said both cultivated land and food grain output have been declining in recent years.
Dang district collects Rs 4.99 billion in revenue
Dang district collected Rs 4.998 billion in revenue during fiscal year 2025/26, a decline of Rs 550.8 million compared to the previous year. According to the District Treasury Controller Office, 42 federal government offices contributed Rs 4.051 billion to the total collection. The Inland Revenue Office, Dang, recorded the highest contribution with Rs 3.693 billion. Similarly, 22 provincial government offices collected Rs 946.8 million, with transport management offices contributing the largest share of Rs 560.1 million.
NTA blocks over 200,000 illegal betting and scam-related apps
The Nepal Telecommunications Authority (NTA) has blocked more than 223,000 websites and mobile applications linked to illegal online betting and financial scams. The action was taken following government directives and increased concerns over digital fraud during the FIFA World Cup. The authority formed a dedicated task force with Internet Service Providers (ISPs) to identify and block illegal URLs in real time using threat intelligence tools. Officials said operators continue to create new domains to avoid restrictions, but monitoring, URL tracking and public reporting mechanisms remain active to disrupt such networks.
NRB to begin exchange of INR 200 and INR 500 notes
Nepal Rastra Bank (NRB) has decided to facilitate the exchange of Indian currency notes of INR 200 and INR 500 following discussions with the Reserve Bank of India (RBI). The decision comes after increased use of these denominations, particularly following the government’s decision to allow individuals to carry up to INR 25,000 in INR 200 and INR 500 notes from mid-November. Under existing regulations, Nepali and Indian citizens can carry, exchange or transport up to INR 25,000 in these banknotes issued after November 9, 2016. NRB said restrictions on old INR 1,000 and INR 2,000 notes remain unchanged.
Department files seven money laundering cases in FY 2025/26
The Department of Money Laundering Investigation filed seven prosecution cases involving 121 defendants and sought recovery of approximately Rs 118.05 billion during fiscal year 2025/26. The department investigates financial crimes including revenue leakage, customs evasion and illegal accumulation of wealth through specialized investigation branches and legal, administrative and coordination units. Officials said investigative procedures and screening operations were intensified during the year to control financial crimes.
US provides USD 1 million health equipment to Nepal
The United States has handed over health equipment worth USD 1 million, along with a refrigerated freezer van, to support maternal, newborn and child health services and Nepal’s immunization programme. US Chargé d’Affaires ad interim Scott Urbom handed over the equipment to government officials at the Department of Health Services in Teku on Friday, according to the US Embassy. The freezer van will transport vaccines at minus 20 degrees Celsius from the Central Vaccine Store to all seven provinces. The health equipment will be distributed to provincial, district and tertiary-level hospitals.
Guthi Corporation begins search for encroached land in Janakpur
The Guthi Corporation has launched investigations to identify and reclaim land belonging to religious trusts that has allegedly been encroached in Janakpur. A seven-day public notice was issued in Janakpurdham, instructing people occupying trust land illegally to remove unauthorized structures. According to Janakpurdham branch chief Kishor Kumar Jha, around 148,000 to 169,000 square metres of trust land have been encroached. The affected areas include five ponds that have disappeared and built-up areas around Ratna Sagar and Belakutti.
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