KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy presents a mixed picture, with weak investor confidence reflected in a four-day decline in the NEPSE index and falling trading volumes, even as broader economic activity shows signs of resilience. Rising customs revenue, the reopening of Ilam’s tea factories, expanded infrastructure projects, and new financial sector reforms suggest continued momentum in trade, investment and development.
Nepal Rastra Bank’s policy changes to support long-term projects and strengthen financial crime oversight indicate a more proactive regulatory approach, while initiatives such as pension expansion, agricultural subsidies and automated power infrastructure point to efforts to improve productivity and social protection.
However, challenges remain, including political disputes delaying budget processes, concerns over fuel pricing, the bird flu outbreak affecting poultry farmers, and persistent market uncertainty. Overall, the developments highlight an economy balancing structural reforms and infrastructure expansion against short-term market weakness and governance-related pressures.
Shares extend slide as turnover weakens
The Nepal Stock Exchange (NEPSE) remained under pressure for a fourth consecutive session on Thursday, with the benchmark index falling 8.50 points to close at 2,651.52. Investor sentiment stayed subdued as daily turnover dropped sharply to Rs 2.84 billion, while losses outnumbered gains across the market. Manufacturing and Processing was the only sector to finish in positive territory, while the Trading sector posted the steepest decline.
Gold and silver prices post sharp decline
Precious metal prices fell sharply in the domestic market on Thursday. Gold dropped by Rs 5,200 per tola to Rs 278,300, while silver declined by Rs 250 per tola to Rs 4,235, reflecting a significant correction from the previous day’s trading levels.
NRB expands interest capitalization facility for long-term projects
Nepal Rastra Bank (NRB) has revised its Unified Directives to allow banks and financial institutions to capitalize interest on loans for all long-term projects until they begin generating commercial cash flow. The provision, previously limited to sectors such as hydropower and tourism, now covers projects requiring at least two years to commence operations. The central bank has also introduced concessions for projects delayed by natural disasters or transmission infrastructure constraints.
Ilam tea factories resume operations after export assurances
Tea processing factories in Suryodaya, Ilam, have resumed operations after a temporary shutdown triggered by restrictions on Nepali tea exports to India. The 53 factories reopened after receiving assurances from local and federal authorities that measures would be taken to address the crisis. Producers have also pledged to focus on high-quality orthodox tea and explore alternative export destinations.
President authenticates development finance law
President Ram Chandra Paudel has endorsed the Alternative Development Finance Mobilization Bill, 2026, completing the constitutional process required for the legislation to come into force. The bill, which was passed by the Federal Parliament, received presidential authentication under Article 113(2) of the Constitution, according to the Office of the President.
Banks allowed to freeze accounts on urgent law-enforcement requests
The NRB has introduced a new provision permitting banks and financial institutions to temporarily freeze suspicious accounts based on verbal requests from investigating authorities. The revised directive requires institutions to remain available around the clock to respond to financial crime investigations and to provide account information promptly when requested by law-enforcement agencies.
Nepal and Oman seek stronger economic cooperation
The Nepali Embassy in Oman has organized a business promotion programme in Muscat aimed at enhancing bilateral trade, investment, tourism and employment ties. Addressing the event, Ambassador Dornath Aryal highlighted Nepal’s investment opportunities and strategic location between India and China, while encouraging Omani investors to explore prospects in the country. The programme also featured discussions on labour regulations and tourism promotion.
CIT, Tamakoshi Rural Municipality launch pension scheme
The Citizen Investment Trust (CIT) and Tamakoshi Rural Municipality in Dolakha have signed an agreement to implement the Citizen Pension Scheme. Under the programme, both the local government and participating workers will contribute Rs 500 each per month. Contributors will become eligible for pension benefits after reaching the age of 60, with additional provisions for spousal benefits, inheritance rights and loan facilities.
Bird flu outbreak prompts culling of over 48,000 chickens
Authorities have culled more than 48,000 chickens in Bhaktapur after avian influenza was detected in poultry farms in Changunarayan and Suryabinayak municipalities. The mass culling was carried out to contain the spread of the disease following confirmation of infections in multiple locations. The outbreak has raised concerns among poultry farmers and triggered disease-control measures in the district.
Birgunj customs revenue rises 9 percent
Birgunj Customs Office collected Rs 221.78 billion in revenue during the first 11 months of the current fiscal year, achieving 89 percent of its annual target. Imports through the Birgunj border increased significantly, while exports posted modest growth, contributing to a year-on-year revenue increase of nearly Rs 18 billion.
Fuel price debate intensifies as Congress questions government
Nepali Congress General Secretary Pradip Paudel has criticized the government for not lowering domestic fuel prices despite a decline in international crude oil rates. He accused authorities of relying on technical justifications to delay price adjustments and called for full implementation of the automatic pricing mechanism so consumers benefit when global prices fall.
Budget dispute stalls Lumbini Assembly proceedings
The Lumbini Province Assembly has been adjourned indefinitely after disagreements over the provincial budget intensified. The scheduled session on Thursday was postponed under the Speaker’s directive as lawmakers from both the ruling and opposition camps continued to demand revisions to the proposed budget and annual programmes. The deadlock has delayed key fiscal and legislative processes for the upcoming fiscal year.
Traffic set to shift onto rebuilt BP Highway section
Authorities are preparing to divert vehicles onto newly reconstructed sections of the BP Highway ahead of the monsoon season. The flood-damaged Bhakundebesi–Nepalthok stretch has undergone extensive repairs, with traffic expected to move onto elevated tracks in the coming days as part of a broader Rs 8.5 billion highway upgrade project.
Kathmandu Valley traffic fines exceed Rs 1.9 million
Traffic police collected more than Rs 1.93 million in fines from 2,519 vehicles across the Kathmandu Valley in the past 24 hours. Violations included drunk driving, overspeeding, improper ride-sharing, traffic signal breaches, lane-discipline offences and excessive vehicle emissions.
Nepal commissions first fully automated substation
Nepal Electricity Authority has brought the country’s first humanless automated substation into operation in Letang. Built at a cost of around Rs 100 million, the facility uses SCADA-based technology and is expected to improve voltage stability, reduce outages and lower technical losses for consumers in Letang and Belbari.
Rs 250 million allocated for Tarigaun Airport expansion
The government has earmarked Rs 250 million to upgrade Tarigaun Airport in the upcoming fiscal year. The project aims to extend the runway from 750 metres to 2,500 metres, enabling larger aircraft to operate and improving regional air connectivity in western Nepal.
Beekeepers receive subsidized hives in Parbat
Phalebas Municipality has distributed 250 beehives to commercial farmers under a 50 percent subsidy programme designed to boost agricultural income and promote commercial beekeeping. Officials say the initiative will support honey production while improving crop yields through pollination.
Niranjan Shrestha elected dairy industry chief
Niranjan Shrestha has been unanimously elected president of the Dairy Industries Association for a two-year term. He succeeds Raj Kumar Dahal and will lead an 11-member executive committee.
Consumer awareness campaign launched in Nepalgunj
A consumer education programme has been launched at Hope International Academy to raise awareness about consumer rights, food safety and healthy lifestyles. Organizers said the initiative aims to help students identify market fraud, misleading advertisements and substandard products.
Rukum West local governments unveil Rs 3.62 billion budget
All six local governments in Rukum West have announced a combined budget of Rs 3.62 billion for fiscal year 2026/27. Education, healthcare, agriculture, infrastructure, drinking water, tourism and employment generation feature among the key priorities.
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