KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Taken together, the developments highlight a mixed but telling picture of Nepal’s current economic and governance landscape: while there are clear efforts to push structural improvements—such as expanding solar energy through local partnerships, investing in infrastructure and tourism, and tightening regulatory enforcement—these are happening alongside persistent challenges in coordination, policy effectiveness, and external vulnerability.
Rising customs revenues and tourism growth suggest underlying economic resilience, yet continued dependence on petroleum imports, uneven policy outcomes (like shifting fuel consumption patterns), and legal disputes over taxation reveal gaps in planning and institutional clarity.
At the same time, global geopolitical tensions are directly impacting Nepal through labor migration pressures and energy uncertainty. Overall, the picture is one of cautious progress, where ambition and activity are evident, but long-term success will depend on better policy coherence, stronger institutions, and reduced reliance on external shocks.
NEA invites local bodies to partner in solar energy projects
The Nepal Electricity Authority (NEA) has called on local governments to apply for power purchase agreements for solar projects by the end of the month. Under a decision made on November 5, 2025, NEA will buy electricity at Rs 4.99 per unit from projects where local governments hold at least a 51% stake. Each project will have a maximum capacity of 1 megawatt and will be connected to the 33/11 KV grid. Applicants must submit required documents, including company registration, land agreements, and technical plans, before the end of the fiscal year.
Court halts local vehicle tax collection on major highways in Parsa
A temporary bench of the Janakpur High Court in Birgunj has barred Birgunj Metropolitan City and private contractors from collecting vehicle management fees on national and feeder highways, including the Postal Highway. The court clarified that the city’s authority to collect such taxes applies only to roads under its direct jurisdiction, as per an agreement dated August 15, 2025. The ruling follows earlier interim orders issued on March 12 and April 17, effectively stopping roadside fee collection from freight vehicles on major routes.
Two-day weekend cuts diesel use but lifts petrol demand
The government’s move to introduce a two-day weekend to reduce fuel consumption has led to a decline of 13,000 kiloliters in diesel use over 15 days ending April 20. However, petrol consumption increased by 1,000 kiloliters in the same period, likely driven by higher private vehicle use during holidays. At the same time, rising fuel costs and a sharp increase in bitumen prices—from Rs 90 to Rs 180—have slowed construction activities nationwide, reducing demand for diesel used in heavy equipment and transport.
Petroleum imports through Birgunj bring in Rs 60.38 billion
During the first nine months of the 2025/26 fiscal year (July 17 to April 13), Birgunj Customs collected Rs 60.38 billion in revenue from fuel imports, up from Rs 57.53 billion during the same period last year. The total value of imported petroleum products reached Rs 148.16 billion. This included 808,745 kiloliters of diesel, 359,846 kiloliters of petrol, and more than 224 million kilograms of LPG.
Stricter checks boost customs revenue at Jamunah border
Customs revenue at the Jamunah crossing in Nepalgunj has increased since April 17, when authorities began enforcing duties on goods worth more than Rs 100. Daily collections at the passenger checkpoint have risen from around Rs 275,000 to Rs 360,000. The policy aims to discourage cross-border shopping and support local businesses in Nepalgunj and Kohalpur. However, consumers on both sides have called the Rs 100 threshold impractical and are asking for it to be reconsidered.
Global oil prices dip below $100 amid renewed Middle East talks
International crude prices slipped under USD 100 per barrel after news of a second round of negotiations between the United States and Iran in Islamabad. Confidence in the market improved following confirmation of the Iranian foreign minister’s visit to Pakistan, easing earlier fears about a possible shutdown of the Strait of Hormuz, a key route for about 20% of global oil supply. While global stock markets have begun to rebound, fuel prices in Nepal remain unchanged, with petrol at Rs 219, diesel and kerosene at Rs 237, LPG cylinders at Rs 2,010, and aviation fuel at Rs 262 per liter.
Manaslu region sees nearly 15,000 visitors despite global tensions
The Manaslu Conservation Area welcomed 14,899 tourists in 2025, according to officials. Of these, 14,033 were foreign visitors, 434 came from SAARC countries, and 432 were Nepali travelers. Despite setbacks like unexpected floods, heavy snowfall, and tensions linked to the US-Iran situation, tourist numbers rose by 3,515 compared to last year. The region continues to draw visitors with its preserved Tibetan-influenced culture and quieter trekking routes, bringing steady income to local communities and hospitality businesses.
Karnali Energy Ministry rolls out over 1,200 projects
The Ministry of Water Resources and Energy Development in Karnali Province has advanced 1,242 projects into implementation this fiscal year, achieving 90.26% progress against its total target of 1,376 projects. Surkhet has the highest number of active projects at 168, followed by Dailekh and Kalikot. So far, the ministry has spent Rs 942.4 million out of its Rs 3.83 billion budget, reflecting an expenditure rate of 24.60%.
Over 30,000 Nepali workers return from West Asia amid tensions
More than 30,000 Nepalis have returned home from West Asia due to rising tensions between the United States and Iran. According to the Ministry of Foreign Affairs, around 21,000 of them came back from Qatar, while others returned from different countries in the region for safety reasons or scheduled leave. An online system set up by the Department of Consular Services shows that 87,819 Nepalis remain in the affected areas. Authorities are working to secure the release of Amrit Jha, who is being held near the Strait of Hormuz. Meanwhile, eight out of ten Nepalis currently in Iran have chosen to stay, stating that they feel safe for now.
Baglung begins work on 86 new trekking trail projects
Authorities in Baglung have started implementing 86 trekking trail projects aimed at connecting homestays and धार्मिक sites. Each project, costing between Rs 500,000 and Rs 1 million, relies on local labor and traditional stone paving. So far, 21 trails are complete, while eight are delayed due to disputes or delays in forming user committees. These trails are expected to boost rural tourism, reduce reliance on costly road construction, and help manage landslide risks through sustainable building practices.
Nepal tourism board launches first wildlife safari mart in Meghauli
The Nepal Tourism Board has kicked off the first-ever Wild Nepal Safari Mart 2026 in Meghauli, aiming to promote Nepal’s wildlife tourism on the global stage. The three-day event, supported by the Ministry of Culture, Tourism, and Civil Aviation, includes delegates from India, Bangladesh, and Thailand. The initiative highlights Nepal’s conservation success with species like Bengal tigers, one-horned rhinos, and red pandas, while encouraging international partnerships and positioning Chitwan and Meghauli as key destinations for sustainable wildlife tourism.
Two businesses fined Rs 505,000 for violating consumer laws
The Department of Commerce, Supplies and Consumer Protection has fined two companies a total of Rs 505,000 for breaching the Consumer Protection Act, 2018. Sharp International Airport Services in Kathmandu was penalized Rs 300,000, while Yummy Cafe and Bar was fined Rs 205,000. The department has also asked five other businesses, including Hotel Soniga and Kantipur Cafe, to submit documents for inspection, while six more have received warnings as part of routine market monitoring efforts.
Birgunj asks displaced landless residents to come forward
Birgunj Metropolitan City has called on landless individuals displaced by the Gandak Chowk–Miteri Bridge road expansion to register with authorities within 30 days. The move follows a decision by the District Disaster Management Committee to identify genuine cases of landlessness for potential federal support and resettlement. At the same time, officials have warned residents and business owners not to operate from unsafe or damaged structures during ongoing demolition work, citing safety concerns.
Comment