KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments reflect a broader picture of Nepal balancing long-term institutional reform with persistent structural economic challenges. While the government is advancing measures such as a specialized infrastructure tribunal, a revised Re 1 coin design, and a new UN cooperation framework aligned with the country’s post-Least Developed Country (LDC) transition, these initiatives underscore efforts to strengthen governance, legal certainty, and international partnerships.
At the same time, the import of Rs 28.1 million worth of toothpicks illustrates Nepal’s continued dependence on foreign suppliers even for low-value consumer goods, highlighting weaknesses in domestic manufacturing and the resulting pressure on foreign exchange. Regulatory oversight is also tightening, with legal action against businesses selling substandard food and the Nepal Electricity Authority accelerating infrastructure upgrades to improve power reliability.
In the health sector, GAVI’s decision to offset rather than reclaim funds demonstrates sustained international confidence in Nepal’s immunization programme, while Buddha Air’s fleet expansion signals continued private investment in aviation despite broader economic headwinds.
Meanwhile, Syangja’s third-child incentive programme reflects emerging demographic concerns, and Dang’s traffic enforcement data points to the continuing need for stronger road safety measures. Collectively, these developments suggest Nepal is making incremental progress in governance, infrastructure, and public services, but lasting economic resilience will depend on stronger domestic production, effective policy implementation, and sustained institutional reforms.
Nepal imports Rs 28 million worth of toothpicks in FY 2025/26
Nepal imported 76,614 kilograms of toothpicks worth Rs 28.1 million during the fiscal year 2025/26, generating Rs 10.1 million in customs revenue, according to the Department of Customs. China accounted for almost the entire import value, with smaller consignments arriving from India and Thailand. Analysts say the continued import of basic products such as toothpicks highlights the country’s limited domestic manufacturing capacity and contributes to unnecessary outflows of foreign currency.
Govt proposes new design for Re 1 coin
The government has finalized a revised design for the Re 1 coin featuring Aakash Bhairav, an updated map of Nepal, and 64 dots representing the 64 Yoginis. The proposal follows an earlier Cabinet directive to reconsider an alternative design featuring the Ghar Gumba in Mustang. The new design will be presented at the next Cabinet meeting for approval before the coin enters mass production and circulation. Officials say the proposed design meets the administrative and cultural requirements for the country’s official currency.
Nepal and UN endorse roadmap for 2028–2032 cooperation framework
Nepal and the United Nations have endorsed the roadmap for the 2028–2032 United Nations Sustainable Development Cooperation Framework (UNSDCF) after reviewing progress under the current framework. The Joint Steering Committee meeting was co-chaired by National Planning Commission Vice Chairperson Gunakar Bhatta and UN Resident Coordinator Lila Pieters Yahia. Discussions focused on aligning the new framework with Nepal’s Sixteenth Plan, the country’s graduation from Least Developed Country status, climate resilience, digital transformation and the Sustainable Development Goals. Participants also emphasized innovative financing and youth empowerment.
Government moves ahead with infrastructure tribunal bill
The government is moving forward with legislation to establish a specialized infrastructure tribunal aimed at resolving construction-related disputes more quickly and reducing project delays. A meeting at the Ministry of Law, Justice and Parliamentary Affairs discussed the draft bill with officials including Sunil Lamsal, Arjun Jung Thapa, Gopal Prasad Sigdel and Parashu Dhungana. Inspired by international models such as the United Kingdom’s Technology and Construction Court, the proposed tribunal is expected to speed up dispute resolution, reduce investor uncertainty and help keep infrastructure projects on schedule.
Cases filed against 62 businesses over substandard food in Madhesh
Authorities have filed cases against 62 businesses in Madhesh Province for allegedly producing and selling substandard food products. The Food Technology and Quality Control Office said legal action was initiated after laboratory tests of food samples collected during fiscal year 2025/26. Most cases involve businesses in Bara and Parsa, while others are from Mahottari, Sarlahi, Rautahat and Dhanusha. Officials said inspections of 4,559 food samples uncovered adulterated and expired products, with additional legal action under consideration.
GAVI waives cash refund, adjusts support for Nepal
The Global Alliance for Vaccines and Immunization (GAVI) has decided not to seek a cash refund of USD 308,271 from Nepal and will instead adjust the amount against future assistance under the GAVI 6.0 support programme. The decision followed discussions initiated by Minister for Health and Food Safety Nisha Mehta during the World Health Assembly and a formal proposal submitted on June 4, 2026. Since 2014, GAVI has provided Nepal with more than USD 550 million in support for routine immunization, vaccine procurement and strengthening the cold chain system.
NEA inspects power infrastructure in Morang and Sunsari
The Nepal Electricity Authority (NEA) has begun field inspections in Morang and Sunsari to improve electricity supply and address recurring power outages in the eastern region. Acting on directives from the Ministry of Energy, Water Resources and Irrigation, NEA officials inspected transformer workshops and the Duhabi grid substation, while setting deadlines of three months to complete the Barju substation and one month for the Kerabari substation. The authority said timely completion of these projects is essential to ensuring a more reliable electricity supply.
Dang Traffic Police collect Rs 15.2 million in revenue
The Traffic Police Office in Dang collected Rs 15.2 million in revenue after taking action against 14,563 vehicles during the fiscal year 2025/26, with motorcycles accounting for the largest share of violations. According to official data, the district recorded 347 road accidents involving 661 vehicles during the year, claiming 72 lives, including 50 men, 19 women and three children. Traffic police said they will continue to strengthen public awareness campaigns and enforce traffic rules more strictly to reduce road accidents and fatalities.
Buddha Air adds ATR 72-600 aircraft to its fleet
Buddha Air has expanded its fleet with the addition of a new ATR 72-600 aircraft, which is expected to enter commercial service next month after completing regulatory formalities. The aircraft, registered as 9N-AOS, was ferried from Toulouse, France. Equipped with an advanced RNP-AR navigation system, it is capable of landing safely at Kathmandu and Bhairahawa airports in visibility as low as 900 meters. The airline plans to induct another ATR 72-600 by late August, further expanding its fleet.
Seventeen families receive support under Syangja’s third-child incentive program
Kaligandaki Rural Municipality in Syangja provided financial assistance to 17 families under its third-child incentive program during fiscal year 2025/26. Under the scheme, eligible families receive a monthly allowance of Rs 4,000 for two years following the birth of a third child. The municipality introduced the program to address declining birth rates, promote maternal and child health, and encourage balanced population growth. Local officials said the initiative reflects changing demographic trends and the need for measures to support long-term population sustainability.
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