KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed and somewhat contradictory trajectory, where financial market volatility, structural weaknesses, and sectoral expansion coexist. The stock market’s decline despite higher turnover signals cautious investor sentiment and underlying fragility, even as hydropower listings and liquidity absorption by the central bank point to deepening financial activity.
External vulnerabilities remain evident through rising petroleum imports and LPG dependence, compounded by geopolitical risks influencing domestic consumption patterns. At the same time, inflationary pressures are visible in surging gold prices, while production and infrastructure bottlenecks—from stalled road projects to delayed public works—highlight persistent governance and execution challenges.
Encouragingly, policy initiatives such as AI-driven loan screening, tourism infrastructure expansion, and long-term planning frameworks suggest efforts toward modernization and growth, but these are offset by grassroots-level distress, including unpaid farmers, climate-induced agricultural losses, and uneven budget utilization. Overall, the economy appears to be expanding in pockets but constrained by structural inefficiencies, external dependencies, and implementation gaps.
NEPSE falls 24.45 points despite rise in turnover
The Nepal Stock Exchange (NEPSE) declined by 24.45 points to close at 2,935.94 on Wednesday, even as market turnover increased to Rs 15.09 billion from Rs 14.83 billion a day earlier. Out of the traded companies, 45 recorded gains, 213 declined, and seven remained unchanged. Stocks such as Ngadi Group, Api Power, Shivam Cement, Super Madi Hydropower, and SY Panel led in turnover. The trading sector posted the highest gain of 3.45%, supported by a 3.77% rise in Bishal Bazar, while manufacturing and processing edged up by 0.48%. Most other sectors witnessed losses, including banking, development banks, and finance. Reliance Spinning Mills and four hydropower companies gained 10%, whereas Abhiyan Laghubitta saw the steepest decline of 7.74%.
Gold and silver prices surge in domestic market
Gold and silver prices recorded a sharp rise in the domestic market. The price of gold increased by Rs 14,600 per tola to reach Rs 288,500, while silver rose by Rs 415 to Rs 4,920 per tola. Analysts attribute the surge to movements in the international market and rising global demand.
NRB absorbs Rs 40 billion to manage liquidity
Nepal Rastra Bank (NRB) collected Rs 40 billion through a deposit auction on Wednesday to manage excess liquidity in the banking system. The central bank invited bids for a 21-day period via an online process, with interest rates to be determined through competitive bidding. Banks and financial institutions were allowed to bid a minimum of Rs 100 million in multiples of Rs 50 million. The principal and accrued interest will be settled on April 15.
Hydropower firms listed on NEPSE reach 100
The number of hydropower companies listed on NEPSE has reached 100 following the listing of Super Khudi Hydropower Company’s IPO. The hydropower sector now represents the largest segment on the exchange, reflecting growing investment, increased private sector participation, and expansion of energy projects across the country.
Petroleum imports cross Rs 123 billion in seven months
Petroleum imports reached Rs 123.67 billion in the first seven months of the current fiscal year, according to the Birgunj Customs Office, marking a year-on-year increase. The government collected Rs 52.15 billion in revenue from these imports. Diesel accounted for the largest share, followed by petrol and LP gas.
AI to be used for screening startup loan applications
The Ministry of Industry, Commerce and Supplies has introduced Artificial Intelligence (AI) to conduct preliminary screening of startup loan applications, aiming to ensure fairness and efficiency with an expected accuracy of 80%. For the current fiscal year, Rs 860 million has been allocated to provide collateral-free loans at a 3% interest rate. Of the 10,244 applications received nationwide, 8,203 were submitted online. Final evaluation includes field verification by Enterprise Development Facilitators, who provide visual documentation for assessment.
LP gas imports rise but shortages persist
Nepal imported 372,281 metric tons of LP gas by mid-March, an increase of over 51,000 metric tons since mid-January. Despite the higher imports, market shortages continue due to hoarding amid fears of supply disruptions linked to tensions in West Asia. To address the situation, Nepal Oil Corporation has introduced half-filled cylinder distribution since March 12 while keeping the retail price unchanged at Rs 1,910 despite rising import costs.
Govt unveils action plan for 16th periodic plan
The National Planning Commission has launched the implementation action plan for the 16th periodic plan (FY 2024/25–2028/29), outlining sector-wise responsibilities and targets. The plan aims to expand the economy to around Rs 10.3 trillion, requiring an estimated investment of Rs 11.2 trillion, with a focus on production growth, job creation, and infrastructure development.
Budget crunch stalls road projects in Myagdi
Several strategic road projects in Myagdi have been halted due to funding shortages. Although Rs 620 million was allocated for infrastructure development, the budget has been exhausted, leaving contractors unpaid. Authorities have sought additional funds to clear pending payments and resume stalled works.
Star-rated hotels in Nepal reach 349
Nepal’s hospitality sector has expanded significantly, with 349 star-rated hotels now in operation, offering 16,350 rooms and 25,881 beds. Five-star hotels dominate the premium segment, while the growth of resorts and boutique properties has diversified tourism offerings for both domestic and international visitors.
Over half of budget released to Rolpa local units
More than 52% of the allocated budget has been released to local governments in Rolpa by mid-March. Out of Rs 3.727 billion, Rs 1.985 billion has been disbursed, with federal fund releases outpacing provincial allocations.
Mahendranagar covered hall project stalled for eight months
Construction of a multipurpose covered hall in Mahendranagar, Kanchanpur, has remained halted for the past eight months due to administrative delays. Although around 70 percent of the work has been completed, progress has been obstructed by issues related to parapet construction and a pending Variation Order from the Sudurpashchim Province government. The Rs 130.3 million project was originally scheduled for completion by mid-July. Meanwhile, a Rs 100 million sports academy in Tikapur, completed a year ago, has yet to be handed over due to delays in finalizing operational procedures.
Japan supports smart classroom project at Tribhuvan University
Japan has agreed to fund the modernization of Japanese language classrooms at Tribhuvan University’s Campus of International Languages. The project, supported under a cultural grant program, includes upgrading facilities with smart boards and modern equipment. The initiative aims to enhance the learning environment and strengthen academic and cultural ties between Nepal and Japan.
Ninth international women’s trade expo to be held in April
The Ninth International Women’s Trade Expo is set to take place in Lalitpur from April 3 to 5. Organized by the Federation of Woman Entrepreneurs’ Associations of Nepal, the event will feature 140 stalls representing around 300 women entrepreneurs from across the country. The expo will showcase products such as handicrafts, organic goods, and jewelry, along with international participation. Organizers expect around 50,000 visitors and transactions worth nearly Rs 20 million.
Police seize vehicles transporting illegal river materials in Tanahun
Police have confiscated three vehicles involved in the illegal extraction and transportation of riverbed materials in Tanahun. A team from the Saranghat Area Police Office intercepted a JCB and two tippers while loading gravel in Bandipur Rural Municipality-6. The vehicles have been handed over to the local authority for further legal action, with officials stating that monitoring efforts will be intensified.
Hailstorm damages cucumber farming in Gorkha
Hailstorms and continuous rainfall have destroyed a commercial cucumber farm in Palungtar Municipality-7, Gorkha. Farmer Gunja Bahadur Chepang, who had invested about Rs 1 million, suffered losses exceeding Rs 300,000 as the remaining crops were damaged before harvest. Total damage in the area is estimated between Rs 1.2 million and Rs 1.5 million, while limited relief provisions and lack of insurance have left many farmers without adequate compensation.
Budhigandaki Project to issue Rs 1 billion tender
The Budhigandaki Hydropower Company is preparing to issue tenders worth Rs 1 billion within the current fiscal year for preliminary infrastructure works. These include bridge construction, access roads, and housing facilities. The 1,200-megawatt project has an estimated total cost of Rs 406 billion and will follow a 70:30 debt-to-equity financing model.
Shesh Ghale and Jamuna Gurung among Australia’s richest
Nepali-origin entrepreneurs Shesh Ghale and Jamuna Gurung have been ranked among Australia’s wealthiest individuals, securing positions 150 and 151. The couple, co-founders of the Melbourne Institute of Technology, have consistently appeared on the list since 2009, with their combined wealth estimated at around USD 1.21 billion.
Land acquisition begins for lower Seti Hydropower project
Land acquisition has started for the 126-megawatt Lower Seti Hydropower Project in Devghat Rural Municipality. The project includes the construction of a dam and a tunnel system to generate approximately 520 million units of electricity annually. Estimated to cost Rs 25 billion, the project will connect to the national grid through a dedicated transmission line.
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