KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic and policy developments present a mixed picture, with signs of both expansion and persistent structural challenges. The NEPSE decline and falling gold and silver prices point to continued market volatility, even as trading activity rises. At the same time, electricity availability has grown sharply over the past decade, creating opportunities for electric mobility, while the NADA Auto Show highlights growing interest in domestic automobile manufacturing and reduced dependence on petroleum imports.
However, private-sector concerns over weak policy implementation, limited industrial support and declining business confidence indicate that economic growth remains constrained by structural bottlenecks. The registration of 5,068 new industries in Madhesh is encouraging, but the closure of 1,938 enterprises reflects the effects of economic slowdown, liquidity constraints and inadequate investment. Revenue collection at Birgunj Customs and increased demand for DDC products suggest some recovery in trade and consumption, while DDC’s export initiative signals efforts to expand into international markets.
Meanwhile, calls for stronger investment mechanisms, improved urban governance and revival of dormant industries underline the need for better coordination among government agencies. Overall, the developments suggest that Nepal has significant economic potential, but realizing it will depend on policy consistency, infrastructure development, domestic production and stronger institutional coordination.
NEPSE falls 5.30 points as turnover rises
The Nepal Stock Exchange (NEPSE) index fell 5.30 points on Tuesday to close at 2,594.27 points. The market had declined by 19.13 points in the previous session. Market turnover increased to Rs 4.10 billion from Rs 3.23 billion a day earlier. Shares of 78 companies gained, while 187 declined and 12 remained unchanged. The Development Bank and Non-Life Insurance sub-indices were the only gainers, rising 0.08 percent and 0.36 percent, respectively. The Hydropower sector recorded the highest turnover at Rs 2.49 billion, accounting for 60.66 percent of total trading. Sarbottam Paints posted the largest gain, rising 14.99 percent, while Dhaulagiri Laghubitta fell 10.07 percent.
Gold falls to Rs 322,200 per tola, silver to Rs 4,900
The price of gold has decreased by Rs 500 per tola to Rs 322,200 in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 322,700 per tola on Monday. The price of silver also declined by Rs 65 per tola to Rs 4,900. Silver was priced at Rs 4,965 per tola on Monday.
18th NADA Auto Show opens with 53 major brands
The 18th NADA Auto Show 2026 has opened at Bhrikutimandap in Kathmandu, featuring 53 major brands of two-wheelers, four-wheelers and commercial vehicles. The exhibition marks the 50th anniversary of the NADA Automobiles Association of Nepal and places special emphasis on domestic manufacturing through a dedicated “Made in Nepal, Made for Nepal” pavilion. The pavilion features locally developed products, including the Yatri P-2 electric scooter, automotive batteries, lubricants and wiring components. More than 200 stalls have been set up across passenger car, light commercial vehicle, financial institution and international business categories. General admission costs Rs 200, while students can enter for Rs 150.
Vice President Yadav highlights automobile sector’s economic potential
Vice President Ramsahay Prasad Yadav inaugurated the 18th NADA Auto Show 2026 on Tuesday, describing the automobile sector as an important pillar of Nepal’s economy. Yadav called for greater investment in electric vehicles, charging infrastructure and domestic automobile manufacturing to make use of Nepal’s growing hydropower generation and reduce dependence on imported petroleum products. He said greater use of electricity in transportation could help retain billions of rupees currently spent on fuel imports. Federation of Nepalese Chambers of Commerce and Industry President Anjan Shrestha said the automobile sector contributed Rs 81 billion to government revenue last year. NADA President Surendra Kumar Upreti called for the construction of an international-standard exhibition centre in Kathmandu. The auto show, which marks NADA’s 50th anniversary, will continue until September 9.
Private sector calls for economic restructuring and policy alignment
Private sector leaders have called for economic restructuring and better alignment between government policies and budget priorities to address economic stagnation and declining business confidence. Speaking at the opening of the 18th NADA Auto Show 2026 in Kathmandu, business representatives said the government’s economic targets had not been adequately supported by practical measures. They noted that the automobile sector makes a significant contribution to government revenue through vehicle imports, generating around Rs 81 billion last year. However, they said industrial development remains constrained by inadequate government support, unclear priorities and unresolved challenges facing domestic manufacturers. The private sector leaders stressed the need for policies that encourage domestic production and strengthen the industrial base.
Inland Revenue Department upgrades taxpayer portal
The Inland Revenue Department has upgraded its online taxpayer portal to simplify procedures, improve transparency and reduce administrative delays. Under the upgraded system, taxpayers can correct Value Added Tax (VAT) filing errors online within seven days, verify monthly excise tax records and use automatic data entry for certain income disclosures. The system also allows foreign investors to register for a Permanent Account Number (PAN) online and download registration certificates, tax clearance documents and licences. Real-time monitoring has also been introduced in the Electronic Tax Deducted at Source (e-TDS) system to prevent backdated entries and delays. Taxpayers can track and raise queries regarding withholding amounts if the deductions are not reflected in the system by the 25th of the following month. The upgraded system will remain under a one-month trial period to identify and resolve technical issues before full implementation.
Foreign Minister Khanal calls for stronger Nepal-US economic ties
Foreign Minister Shisir Khanal has called for expanded cooperation between Nepal and the United States in digital innovation, clean energy and international trade. Speaking at an event organised by the Center for Social Innovation and Foreign Policy in Kathmandu to mark the 250th anniversary of American independence, Khanal conveyed Nepal’s best wishes to the US government and people. Highlighting the longstanding bilateral relationship, he said Nepal and the US should broaden their cooperation into emerging areas while building on their existing ties and shared commitment to democratic values and constitutionalism.
National electricity availability rises to 18,624 million units
Nepal’s electricity availability and peak demand have increased sharply over the past decade, according to data from the Nepal Electricity Authority. Total electricity availability rose 196.6 percent from 6,258 million units in 2017 to 18,624 million units in 2026. Peak electricity demand also increased 71.67 percent during the period, rising from 1,444 megawatts to 2,479 megawatts. Including electricity exported to India, total peak-hour system demand has reached 3,226 megawatts, reflecting the expansion of power infrastructure and transmission networks as well as rising domestic electricity consumption.
Birgunj Customs collects Rs 18.77 billion in Shrawan
The Birgunj Customs Office collected Rs 18.777 billion in revenue during Shrawan of the current fiscal year 2026/27, achieving 91.24 percent of its revised target of Rs 20.58 billion. The customs office, Nepal’s major trading checkpoint, has recorded improved revenue performance in recent years following revisions to its targets and a recovery in import activity. In the corresponding period of fiscal year 2024/25, the office had a target of Rs 21.501 billion and achieved 72.11 percent of it. The improved collection in the current fiscal year reflects a rise in revenue mobilisation compared with the earlier period.
Madhesh registers 5,068 new industries in last fiscal year
A total of 5,068 new industries were registered in Madhesh Province during the last fiscal year, 2025/26. According to the Ministry of Industry, Commerce and Tourism, Parsa recorded the highest number of new registrations with 1,101, followed by Dhanusha with 777, Bara with 639, Sarlahi with 636, Siraha with 554, Rautahat with 533, Mahottari with 514 and Saptari with 314. The ministry said 7,540 industries were renewed during the year. In addition, 6,122 private firms and 18 partnership firms were newly registered, while 11,144 were renewed. However, 1,938 industries and business enterprises were closed or deregistered during the same period, including 1,117 from the commerce sector. The closures were attributed to the economic slowdown, liquidity constraints and a shortage of investment capital. The government collected Rs 52.649 million in revenue from the registration and renewal of industries and business enterprises.
DDC reduces farmers’ dues and begins clarified butter exports to Dubai
The state-owned Dairy Development Corporation (DDC) has reduced its outstanding payments to dairy farmers from Rs 720 million to Rs 350 million amid a significant increase in demand for its products. According to the corporation, demand has increased by more than 100 percent following recent promotional activities, although its processing capacity currently allows it to meet only around 35 percent of market demand. The DDC plans to clear the remaining Rs 350 million in payments to farmers within a month. The corporation has also entered the international market by exporting 500 kilograms of clarified butter to Dubai for market testing. It has additionally finalised an agreement to supply 50 tonnes of clarified butter annually. The DDC is also planning infrastructure upgrades, including a new milk powder plant in Nepalgunj, to strengthen domestic supply and improve processing capacity.
Kathmandu Valley mayors seek meeting with PM on waste management
The Kathmandu Valley Mayors Forum has sought a meeting with Prime Minister Balendra Shah to discuss pressing urban infrastructure and waste management issues. An emergency meeting of the forum held on Tuesday discussed long-term solutions to solid waste management, adjustments to street lighting fees and land ownership issues involving property used by local governments. The forum also expressed serious concern over the conduct directed at municipal representatives during a parliamentary committee meeting on August 21. Emphasizing that waste management is a shared responsibility of all three levels of government, the mayors called for stronger coordination among the federal, provincial and local governments to address urban challenges effectively.
Task force inspects Birgunj Sugar Mill for possible revival
A government-formed task force has inspected the Birgunj Sugar Mill in Pipara to assess its current condition and examine the possibility of resuming its operations. The team, coordinated by a senior divisional engineer at the Ministry of Industry, Commerce and Supplies, inspected the factory buildings, machinery, spare parts and other infrastructure. The government formed the task force on August 17 under the coordination of Yadav. Section Officer Jyoti Paudel of the Ministry of Industry, Commerce and Supplies and ministry adviser Shyam Sharma are its members. The task force has been given 15 days to assess the factory’s condition, determine the feasibility of its revival, prepare an action plan and submit recommendations to the government.
25 Nepali manpower agencies withdraw from Malaysia’s FWCMS
Twenty-five Nepali manpower agencies registered under Malaysia’s Foreign Workers Centralized Management System (FWCMS) have decided to withdraw from the platform following discussions with the Ministry of Labour, Employment and Social Security. Representatives of the agencies have agreed to submit written requests to remove their names from the system, which had given recruitment rights to a limited number of agencies among more than 1,000 registered manpower companies in Nepal. Recruitment agencies have long opposed the arrangement, arguing that restricting access to overseas employers could create a market syndicate, weaken competition, increase recruitment costs and place an additional financial burden on migrant workers.
Nepal-India Chamber calls for stronger investment mechanisms
The Nepal-India Chamber of Commerce and Industry has called for stronger mechanisms to facilitate infrastructure investment and public-private partnerships, including the establishment of a Viability Gap Fund to address revenue-related risks. The issue was discussed at a meeting of the Infrastructure Development Committee on Monday, chaired by Committee Chairperson Ashish Gajurel. Business representatives, officials from the Investment Board Nepal and lawmakers discussed procedural hurdles, project delays and implementation of the one-window policy. Chamber President Sunil KC expressed the private sector’s willingness to contribute expertise, while participants stressed the need to diversify investment beyond hydropower. The committee has asked the participating organizations to submit practical recommendations within two weeks for consideration in future policy discussions.
NRB announces 34 contract vacancies
The Human Resource Management Department of Nepal Rastra Bank (NRB) has opened applications for 34 positions under contract service. The vacancies include one guard, four soldiers, seven light vehicle drivers, three bus drivers, two dispensary staff and 17 office assistants. Applicants must meet the required academic qualifications and, for certain positions, have prior retirement experience from the military or public service. Eligible candidates can apply online through the NRB website from August 25 to September 8.
Nepal Embassy in Kuwait secures Rs 145 million in compensation for workers
The Embassy of Nepal in Kuwait has secured KWD 307,146.317, equivalent to around Rs 145 million, in compensation and other payments for Nepali citizens who died or were injured in Kuwait during the fiscal year 2025/26. The funds were recovered through insurance claims, unpaid salaries, service-related benefits and financial assistance or humanitarian support from the companies concerned. The embassy also engaged legal practitioners to assist in securing compensation and other payments owed to Nepali citizens who died or suffered injuries in Kuwait in previous years. The recovered funds were transferred at different times to the Department of Consular Services under the Ministry of Foreign Affairs. The department will facilitate the transfer of the money to the legal heirs of the deceased or injured Nepali citizens.
Super Madi Hydropower proposes 15.79 percent dividend
Super Madi Hydropower Company has proposed a total dividend of 15.78947 percent from its profits for the last fiscal year. According to the company, its board meeting on Monday proposed a 15 percent bonus share worth Rs 347.2 million and a 0.78947 percent cash dividend for tax purposes. The company has called its 17th annual general meeting for September 17 at Hotel Imperial, beginning at 11 am, to approve the dividend proposal. The company will close its share register on September 7. Shareholders who hold the company’s shares by September 3 will be eligible to participate in the AGM and receive the proposed dividend, subject to regulatory and shareholder approval.
Seven sealed Biratnagar eye hospitals resume operations after 14 days
At least seven eye hospitals in Biratnagar that were sealed by the District Administration Office, Morang, over alleged violations of operating standards have resumed services after 14 days. The hospitals, including Birat Eye Hospital and Sanjivani Eye Care, reopened on Tuesday following criticism of the closures and pressure from the Koshi provincial government. The hospitals resumed operations after a study committee submitted its report to the Koshi Ministry of Health. Koshi Health Secretary Dr Kirtipal Subedi said the facilities had been allowed to reopen on the condition that they meet the required standards within the specified timeframe. Koshi Chief Minister Hikmat Kumar Karki had earlier criticized the federal administration for intervening in matters under the provincial jurisdiction without adequate coordination before sealing the health facilities.
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