KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The reports indicate a mixed but broadly active economic and policy environment in Nepal, marked by stronger regulatory oversight, investment initiatives and infrastructure development alongside persistent market and implementation challenges. The 19-point decline in NEPSE and continued volatility in commodity prices suggest cautious investor sentiment, although Kumari Bank’s sharp profit recovery and dividend announcements by mutual funds point to improving performance in parts of the financial sector.
On the policy front, Nepal Rastra Bank’s expanded supervisory role, efforts to address private-sector investment barriers and the NRNA-NCC agreement signal an emphasis on improving governance, investment facilitation and economic mobilisation. Infrastructure developments, including the trial opening of the Nagdhunga Tunnel and the nearing completion of the Rahughat Hydropower Project, demonstrate continued progress in connectivity and energy capacity, although the repeated halt in Tamakoshi V construction highlights unresolved local grievances and implementation risks.
Meanwhile, digital pension services in Jumla and initiatives to promote tourism, disaster preparedness and women’s entrepreneurship indicate efforts toward more accessible public services and broader economic participation. Overall, the developments reflect opportunities for growth and institutional reform, but their success will depend on effective implementation, coordination, investor confidence and timely resolution of regulatory and local-level challenges.
NEPSE falls 19 points on Monday
The Nepal Stock Exchange (NEPSE) index fell 19.13 points to close at 2,599.58 on Monday, the first trading day of the week. Daily turnover stood at Rs 3.23 billion, down from Rs 4.16 billion on Friday. Share prices of 229 companies declined, while 47 advanced and two remained unchanged. All sub-indices closed lower. The Hydropower sub-index recorded the steepest decline of 1.19 percent, followed by Non-Life Insurance, which fell 1.12 percent. Panchakanya Mai Hydropower and Win Nepal Laghubitta were among the major losers, while Sarbottam Paints and Dhaulagiri Laghubitta recorded gains.
Gold rises to Rs 322,700 per tola, silver falls to Rs 4,965
The price of gold in the domestic market increased by Rs 3,200 per tola on Monday to reach Rs 322,700 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 319,500 per tola on the previous trading day. Meanwhile, the price of silver fell by Rs 10 per tola to Rs 4,965. Silver was traded at Rs 4,975 per tola on the previous day.
NRB requires committee meetings twice a month, expands regulatory oversight
Nepal Rastra Bank (NRB) has made it mandatory for its internal management committee to meet at least twice a month to improve administrative and operational efficiency. The provision is aimed at ensuring regular oversight and strengthening coordination across the central bank’s administrative departments. The central bank has also expanded its regulatory and supervisory jurisdiction to include the Citizen Investment Trust, Employees Provident Fund and Social Security Fund. The move is expected to strengthen oversight, transparency, accountability and corporate governance in these major financial institutions.
Nepal and ADPC sign agreement to establish disaster preparedness sub-centre
Nepal and the Asian Disaster Preparedness Center (ADPC) have signed an agreement to establish an ADPC sub-centre in Nepal to strengthen the country’s capacity for disaster preparedness and response. The agreement was signed at the Ministry of Foreign Affairs on Monday by Bishnu Prasad Gautam, joint secretary at the ministry, and Aslam Perwaiz, executive director of ADPC. Foreign Secretary Amrit Bahadur Rai and Home Secretary Raj Kumar Shrestha, who is also chair of the ADPC Board of Trustees, attended the signing ceremony. The sub-centre is expected to contribute to strengthening Nepal’s disaster resilience and supporting sustainable development. ADPC is a not-for-profit intergovernmental organisation working to promote disaster preparedness and resilience. Nepal currently chairs the ADPC Board of Trustees for the 2025-26 term.
Nepal and Brazil seek to expand cooperation in tourism and trade
Nepal and Brazil have agreed to strengthen cooperation in tourism, cultural exchange, people-to-people relations, investment and export promotion, with the aim of making their longstanding bilateral ties more productive. Foreign Minister Shisir Khanal said this during a meeting with Brazil’s Ambassador-designate to Nepal, Claudio Raja Gabaglia Lins, who paid a courtesy call on the minister at the Ministry of Foreign Affairs on Monday. Minister Khanal congratulated Lins on his appointment and highlighted Brazil’s important role in global governance and South-South cooperation. Lins noted that Nepal and Brazil have completed 50 years of diplomatic relations. He also highlighted an upcoming technical team from Brazil for cooperation in the dairy sector, biomedical research collaboration between Kathmandu University and Brazil’s Butantan Institute, and Brazil’s readiness to promote bilateral trade and tourism.
Yanki Ukyab assumes office as Investment Board CEO
Yanki Ukyab has assumed office as Chief Executive Officer (CEO) of Investment Board Nepal following her formal appointment by the government. The Council of Ministers appointed Ukyab for a four-year term. She received her appointment letter and subsequently took charge of the board. Her tenure is expected to focus on promoting domestic and foreign investment, particularly in major national infrastructure projects. The Investment Board expects her leadership to help accelerate public-private partnerships, streamline approval procedures and enhance investment mobilisation and economic growth in priority sectors.
NTB brings together content creators to promote tourism
The Nepal Tourism Board (NTB) has brought together 35 travel video creators, vloggers and influencers at the Ministry of Culture, Tourism and Civil Aviation to discuss ways to strengthen digital tourism promotion. The interaction was attended by Minister Khadak Raj Paudel (Ganesh), Ministry Secretary and NTB Chairman Mukund Prasad Niraula, and Officiating Chief Executive Officer Hikmat Singh Ayer. Participants discussed the need to promote authentic everyday experiences, local culture and hospitality alongside Nepal’s natural landscapes. They also emphasised stronger coordination among stakeholders and strategic digital storytelling to increase Nepal’s visibility and engagement among international tourists.
Insurance Authority bans misleading promotional practices
The Nepal Insurance Authority has prohibited licensed insurance agents and intermediaries from distributing false, exaggerated or misleading promotional materials that could negatively affect competing insurance businesses. The authority issued the directive following complaints about unauthorised and exaggerated claims being circulated in the market. It said such practices violate Section 19 of the Insurance Agents Directive, 2026, as well as provisions of the Insurance Act, 2022. The authority warned that insurance agents and intermediaries found engaging in deceptive advertising or other prohibited promotional activities during regulatory monitoring will face legal action in accordance with prevailing laws and regulations.
25 manpower agencies to withdraw from Malaysia’s FWCMS
At least 25 licensed manpower agencies in Nepal registered with Malaysia’s Foreign Worker Centralized Management System (FWCMS) have agreed to withdraw voluntarily from the platform following discussions at the Ministry of Youth, Labour and Employment. Of around 1,200 licensed recruitment agencies in Nepal, only 25 had been registered on the platform. The arrangement had drawn criticism from recruitment industry stakeholders, who claimed it created a monopolistic system and restricted fair competition. The agencies agreed to withdraw from FWCMS and submit written commitments to the Nepal Association of Foreign Employment Agencies. The move is intended to promote transparency, fairness and competition in Nepal’s overseas employment sector.
Parliamentary committee seeks suggestions on private sector investment barriers
The Parliamentary Infrastructure Development Committee has asked major private-sector organisations and the Investment Board to submit written suggestions within 15 days on legal and procedural obstacles affecting investment. Following a meeting on Monday, the committee directed the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce, Confederation of Nepalese Industries (CNI) and Nepal-India Chamber of Commerce and Industry to submit detailed suggestions on existing bureaucratic hurdles. The committee has sought practical recommendations on single-window policy implementation, profit repatriation, investment facilitation and the status of public-private partnership projects. The initiative aims to facilitate investment, attract foreign capital and support infrastructure development and economic growth.
Rahughat Hydropower Project nears completion
Construction of the 40-megawatt Rahughat Hydropower Project in Myagdi district has entered its final stage, with preparations underway for power generation. The project, owned by the Nepal Electricity Authority and Raghuganga Hydropower, a subsidiary of the Government of Nepal, has completed testing of its dam, descender, tunnel and switchyard. Trial generation is expected to begin soon following the start of unit testing. The project experienced multiple delays due to natural disasters, shortages of construction materials and global disruptions, resulting in several extensions since the initial agreement in 2017. Located in Gandaki Province, the project will connect its generated electricity to the national transmission grid.
Nagdhunga Tunnel opens to private vehicles for trial operations
Private vehicles carrying up to nine passengers can now use the Nagdhunga Tunnel to travel between Kathmandu and Dhading following the start of trial operations. The tunnel, which was inaugurated on July 27 and initially limited to emergency vehicles, is now open to cars, jeeps and vans from 9 am to 6 pm. No service charge is being levied during the trial period. The project was constructed at an estimated cost of around Rs 29 billion. It comprises a 2.68-kilometre main tunnel and a 2.557-kilometre rescue tunnel. Pedestrians, motorcycles and vehicles carrying flammable materials are not allowed to use the tunnel. Authorities will assess the trial operation before gradually expanding access and introducing a formal toll system.
Jumla introduces electronic pension service
Retired civil servants in the remote mountain district of Jumla can now access pension services locally following the implementation of an electronic pension system. According to Manjit Achhami, controller at the District Treasury Controller Office in Jumla, the initiative launched by the Ministry of Finance has already processed initial pension payments for local beneficiaries, including former agricultural officer Kamal Thapa Kshetri of Chandannath Municipality. The digital system allows pension-related services to be handled through local government offices, eliminating the need for elderly pensioners to travel to Kathmandu. The initiative is expected to make pension services more accessible, efficient and transparent.
Construction of Tamakoshi V hydro project halted again
Construction of the Audit-2 tunnel of the Tamakoshi V Hydro Project has been halted for the second time following protests by local residents demanding implementation of a previously signed 14-point agreement. Local stakeholders, including political representatives and community leaders, stopped construction work, claiming that commitments related to local employment, infrastructure development and environmental compensation made around 1.5 years ago had not been fulfilled. Project officials said legitimate local demands were being addressed gradually through ongoing discussions and coordination. However, the latest disruption has halted the operation of heavy machinery and affected workers at the site. The work stoppage could delay the project’s construction schedule, increase costs and affect progress on the national priority energy project.
Edible oil industry established with Rs 120 million investment
An edible oil processing industry with an investment of around Rs 120 million has come into operation in Sihorhawa of Mayadevi Rural Municipality-5, Kapilvastu. The industry, named Bharadwaj Oil Industry, has started producing edible oil under the Rice Bran brand. According to industry manager Om Shankar Upadhayay, the factory has created employment for 80 local people and aims to produce 4,500 metric tonnes of oil annually. Upadhayay said the product is fortified with vitamins A and D and meets quality standards, with a focus on promoting public health. The company has fixed the price at Rs 365 per litre. Mayadevi Rural Municipality Chairperson Waliuddin Musalman said the establishment of the industry has also contributed to creating local employment opportunities.
NRNA and NCC sign MoU to promote economic cooperation and investment
The Non-Resident Nepali Association (NRNA) and the Nepal Chamber of Commerce (NCC) have signed a memorandum of understanding (MoU) to strengthen economic cooperation, promote foreign direct investment and expand business networks in Nepal. The five-year agreement was signed by NRNA President Hem Raj Sharma and NCC President Kamlesh Aggarwal. It focuses on facilitating investment, promoting export-oriented industries, supporting small and medium-sized enterprises, and encouraging technological innovation and knowledge transfer. The partnership will also facilitate joint trade summits, international investment roadshows and policy advocacy initiatives aimed at addressing bureaucratic hurdles and improving the investment environment. The two organisations said the agreement would help connect the expertise, capital and entrepreneurial resources of the Nepali diaspora with investment and development opportunities in Nepal.
Supreme Court issues interim order over Himalayan Life Insurance CEO appointment
The Supreme Court has issued an interim order directing authorities to halt the process of appointing a new chief executive officer (CEO) at Himalayan Life Insurance. A bench led by Justice Tek Prasad Dhungana issued the order in response to a writ petition filed by incumbent CEO Kapil Kumar Dahal. Dahal was suspended after being detained in connection with a securities investigation on August 7, 2026, and was later released on bail. The petition raised questions over whether his release from custody constituted a vacancy in the CEO position, prompting the court’s intervention. The court has scheduled discussions between the parties for August 31 and directed the Nepal Insurance Authority to maintain the status quo concerning the vacancy notice published on August 19.
Kumari Bank posts Rs 7.39 billion net profit
Kumari Bank has reported a net profit of Rs 7.387 billion for the fiscal year 2025/26, marking a significant recovery from financial pressures and challenges related to non-performing loans and mergers. The bank’s profit increased by 305.96 percent from Rs 1.819 billion recorded in fiscal year 2024/25. The bank reversed Rs 1.439 billion in impairment charges, while its capital adequacy ratio improved from 8.5 percent to 13.55 percent. With increased lending capacity and improved recovery of assets, the bank plans to maintain credit growth at around 7 to 8 percent.
Prabhu Mutual Fund announces 24 percent cash dividend
Two closed-end schemes under Prabhu Mutual Fund have announced a combined 24 percent cash dividend, including applicable taxes, for their unit holders. Prabhu Select Fund and Prabhu Smart Fund have each declared a 12 percent cash dividend based on their financial performance. Prabhu Bank is the promoter of the schemes, while Prabhu Capital manages them. The schemes invest in diversified capital market instruments and have continued to provide returns to investors through cash dividends.
Nepali Congress to hold women’s entrepreneurship conference on August 27
The Nepali Congress Central Policy, Research and Training Institute is set to organise the Women Entrepreneurship Conference 2026 on August 27 at the party’s central office in Sanepa. The one-day event aims to promote women’s economic empowerment, entrepreneurship and participation in the country’s economic development. More than 80 women-led enterprises are expected to showcase their products and services at the event. The conference will feature panel discussions on challenges faced by women entrepreneurs, access to finance, technology adoption, digital marketing and professional networking. Organisers expect more than 10,000 people to attend the event. A declaration containing policy recommendations and commitments for promoting women’s entrepreneurship is also expected to be issued at the conclusion of the conference.
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