KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape reflects a mix of weakening market sentiment, rising governance concerns, and ongoing structural adjustments across key sectors. The decline in the NEPSE index and reduced turnover signal cautious investor confidence amid broader pressures on banking, finance, and hydropower stocks, while falling gold and silver prices suggest easing short-term demand in the precious metals market.
At the same time, regulators are intensifying oversight through revisions to insurance claim guidelines, disclosure of cooperative loan defaulters, and parliamentary scrutiny over Rs 755 billion in financial irregularities, indicating growing pressure for accountability and institutional reform.
The economy also continues to face structural vulnerabilities, including the crisis in domestic pharmaceutical manufacturing due to rising imports, export disruptions caused by high customs duties, and supply shocks in the poultry sector following bird flu outbreaks.
However, some sectors show resilience and long-term investment potential, with strong growth in bank deposits and digital banking in Lumbini, continued interest in hydropower and IPO markets, expanded infrastructure plans such as the Kathmandu underground transmission line, and the government’s push to reposition tourism through a five-year digital strategy targeting higher-value international visitors.
NEPSE falls by 9.24 points as turnover declines to Rs 4.85 billion
The Nepal Stock Exchange (NEPSE) dropped by 9.24 points on Tuesday, closing at 2,777.10, a decline of 0.33 percent. The Sensitive Index also slipped by 1.45 points to 474.29. Market turnover decreased to Rs 4.854 billion from Rs 5.986 billion recorded on Monday. A total of 11.87 million shares of 342 companies were traded through 52,751 transactions. Only 69 companies posted gains, while 190 declined and 11 remained unchanged. Among the 13 sectoral indices, only Mutual Fund and Non-Life Insurance registered gains, while sectors such as banking, hydropower, finance, and microfinance ended lower.
Gold and silver prices decline in domestic market
Gold and silver prices fell in the domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold declined by Rs 1,300 per tola, bringing the new rate to Rs 291,500 per tola, down from Rs 292,800 on Monday. Silver prices also dropped by Rs 90 per tola and are now being traded at Rs 5,060 per tola.
Insurance Authority begins revision of claim payment guidelines
The Nepal Insurance Authority has started revising the Insurance Claim Payment Guidelines, 2024, following a rise in complaints related to delayed or unpaid claims. Unlike previous revisions that mainly involved insurers and reinsurers, the authority has expanded consultations to include policyholders, insurance surveyors, agents, and the general public. Stakeholders have been asked to submit recommendations within 15 days.
DDC speeds up payments to dairy farmers with Rs 10 million daily disbursement
The Dairy Development Corporation (DDC) has introduced an emergency financial restructuring plan to release Rs 10 million daily to dairy farmers. Out of the corporation’s outstanding liabilities of Rs 580 million accumulated over four months, Rs 120 million has already been transferred to farmers. According to the plan, one month’s pending payments will be cleared electronically by June 27. The DDC is using its daily commercial income of Rs 10 million to continue payments, while the remaining Rs 460 million will be settled gradually over the next two months.
Bank deposits in Lumbini exceed Rs 700 billion
Nepal Rastra Bank data released on Tuesday showed that total bank deposits in Lumbini Province increased by 21.43 percent to Rs 713.577 billion. The province currently has 2,148 banking branches, including 746 Class ‘A’ commercial banks, 254 development banks, 47 finance companies, and 1,101 microfinance institutions. Rupandehi District accounted for 41.86 percent of total provincial deposits and 50.47 percent of the province’s Rs 589.715 billion loan portfolio. The report also recorded 4.68 million mobile banking users in the province.
Cooperative committee publishes names of 1,770 loan defaulters
The Problematic Cooperative Management Committee has publicly disclosed the names of 1,770 loan defaulters as part of its recovery drive. The action targets borrowers linked to Ghedung Cooperative, Nagarik Kalyan Cooperative, and Ideal Yamuna Cooperative. The committee has instructed listed individuals to settle their dues immediately or face legal action, including asset seizure and criminal prosecution. Authorities said similar lists from other troubled cooperatives will also be published in the coming weeks.
High customs duties halt pine knot exports worth Rs 250 million
Exports of pine knots worth around Rs 250 million have been disrupted due to a 100 percent customs duty. The Nepal Herbs Entrepreneurs Association said around 12 metric tons of pine knots remain stranded in warehouses. The herbs, collected from Doti, Dadeldhura, and Baitadi, are usually exported to India through Nepalgunj. Traders also reported similar export problems for herbs such as Jatamansi, Amla, Khirola, and cinnamon because they lack formal product registration in India.
Public Accounts Committee raises concern over Rs 755 billion irregularities
The Public Accounts Committee on Monday summoned senior officials from 10 ministries after the Auditor General’s 63rd annual report revealed financial irregularities amounting to Rs 755 billion. Lawmakers proposed stricter measures, including blacklisting officials responsible for discrepancies exceeding Rs 30 million and confiscating assets of negligent office heads. The Ministry of Finance alone accounted for Rs 125 million in irregularities.
Foreign medicine imports push domestic pharmaceutical industry into crisis
The Association of Pharmaceutical Producers of Nepal (APPON) has warned that unrestricted imports of foreign medicines are threatening the survival of domestic pharmaceutical industries. According to APPON, 10 out of 100 registered pharmaceutical plants have already shut down, while the remaining factories are operating at only 30 to 40 percent capacity. The industry has investments exceeding Rs 40 billion, much of it financed through bank loans. Domestic producers have urged the government to introduce protective customs measures, remove VAT on packaging materials, and allow imports mainly for raw materials.
Tourism Board unveils five-year digital tourism strategy
The Nepal Tourism Board (NTB), in collaboration with the United Nations Development Programme (UNDP), has launched its International Market Strategy and Action Plan (2026–2030). The strategy aims to promote high-value tourism and reverse declining tourist spending, which dropped from an average of USD 48 per day in 2019 to USD 40.8 in 2024. The plan includes 38 programs under six major pillars and places special focus on promoting Nepal through Chinese digital platforms such as XiaoHongShu, Douyin, and WeChat.
NEA plans 12-kilometer underground transmission line in Kathmandu
The Nepal Electricity Authority (NEA) has proposed the construction of a 132 kV underground double-circuit transmission line in Kathmandu. The 11.92-kilometer line will connect Balaju, Maharajgunj, Ratnapark, Singha Durbar, and nearby areas to improve electricity supply reliability in the capital. The project is expected to deliver 350 MW of power and will include 21 automated joint pits and a new 132/66/11 kV substation at Singha Durbar. The project is scheduled for completion within three years.
Birtamod records highest financial irregularities in Jhapa
The Office of the Auditor General’s 63rd Annual Report has revealed rising financial irregularities among local governments in Jhapa District during the 2024/25 fiscal year. Birtamod Municipality recorded the highest irregularity rate at 3.22 percent, with discrepancies amounting to Rs 107.4 million out of audited spending worth Rs 3.346 billion. Mechinagar Municipality reported the highest total irregularities in absolute terms at Rs 149.9 million, equivalent to 3.19 percent of its audited amount. Bahradashi Rural Municipality posted the lowest irregularity rate at 0.45 percent, with discrepancies totaling Rs 6.3 million.
Egg prices rise after bird flu reduces poultry supply
The Nepal Layers Poultry Entrepreneurs Association has increased egg prices nationwide following a decline in supply caused by recent avian influenza outbreaks. Under the revised rates, XL egg crates are priced at Rs 545, large eggs at Rs 530, medium eggs at Rs 500, and small eggs at Rs 400 per crate. Industry data showed that more than 500,000 layer chickens died in Jhapa, Morang, and Sunsari due to bird flu, leading to supply shortages and higher wholesale prices.
More than 100 collectors receive Yarsagumba harvesting permits in Darchula
The Api Nampa Conservation Area Office has issued harvesting permits to 138 local collectors in Darchula for this year’s Yarsagumba collection season. According to officials, all permits were distributed under the subsidized “Blue Card” category, which is reserved for permanent residents of the conservation area and costs Rs 500. Authorities also provide “Yellow Cards” for district residents at Rs 2,000 and “Red Cards” for outsiders at Rs 3,000. The harvesting period has been fixed from May 29 to June 29 in alpine pastures including Lolu, Apifed, and Satganga.
Green Ventures submits CSR expenditure report for Likhu-4 project
Green Ventures has submitted a corporate social responsibility (CSR) expenditure report to local authorities detailing Rs 25.1 million spent in communities affected by the 13.5 MW Likhu-4 Hydropower Project. The report was presented following demands from local residents for greater transparency regarding environmental mitigation and community development activities in Khijidemba Rural Municipality wards 1, 2, and 3. Company records show that Rs 312.5 million worth of local shares were distributed, although concerns remain over delayed commitments, including the purchase of an ambulance promised in 2021.
Snow Rivers IPO allotted to over 77,000 applicants
Sanima Capital has completed the allotment process for the Snow Rivers initial public offering (IPO), with 77,812 applicants receiving 10 shares each. A total of 2.55 million applications were submitted for 27.45 million shares, making the offering heavily oversubscribed. The IPO is linked to the Rs 2.719 billion Super Kabeli Khola A Hydropower Project, which has received a Double B Plus rating from ICRA Nepal. The company reported a net worth of Rs 107.46 per share as of mid-January 2026.
Salt Trading closes shareholder register for dividend distribution
Salt Trading Corporation has completed the closure of its shareholder register in preparation for dividend distribution approved for the current fiscal year. The company has fixed the book closure period from May 27 to June 12 ahead of its 59th Annual General Meeting to be held at the Tribhuvan Army Officers’ Club. The proposed dividend package includes a 9.50 percent bonus share issue and a 0.50 percent cash dividend for tax purposes.
Comment