KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments across Nepal’s economic and policy landscape reflect mixed signals, with weak financial market performance contrasting with selective sectoral gains and ongoing structural reforms. NEPSE extended its losing streak for a fifth session despite higher turnover, while gold strengthened and silver declined, underscoring volatility in domestic commodity markets.
At the macro level, falling capital gains tax revenue highlights subdued investor activity, even as exports reach record levels largely driven by re-exports rather than domestic production. Policymakers and institutions are responding with a range of measures—from calls for more expansionary monetary policy and labour-law enforcement to reforms in employment services and provincial budgeting—aimed at stimulating growth and improving governance.
At the same time, subnational governments and local initiatives, including infrastructure upgrades, agricultural support programs, and disaster preparedness efforts, indicate continued emphasis on grassroots development, though implementation challenges and fiscal constraints remain evident.
NEPSE extends weekly losing run, closes at 2,649.51
The Nepal Stock Exchange (NEPSE) ended lower on Friday, slipping 2 points (0.07%) to close at 2,649.51, marking a fifth straight session of losses. Despite the downturn, trading activity improved, with turnover rising to Rs 3.94 billion as 7.72 million shares changed hands across 359 listed companies. Market breadth remained weak, with 85 stocks advancing, 170 declining, and 20 remaining unchanged. The Trading sector was the only one to post gains, while most other sectors closed in the red. Snow Rivers Limited hit the 15% upper circuit, whereas Kalika Microfinance Financial Institution Limited recorded the steepest fall of 10.76%.
Gold price rises by Rs 800 per tola, silver declines
Gold prices in Nepal increased by Rs 800 per tola on Friday, while silver prices fell, according to the Federation of Nepal Gold and Silver Dealers’ Association. Fine gold is being traded at Rs 279,100 per tola, up from Rs 278,300 the previous day. Silver dropped by Rs 55 per tola to Rs 4,180, reflecting mixed movements in the domestic precious metals market, with gold continuing to strengthen while silver softened.
India lifts LPG curbs as supply conditions improve
India has removed restrictions on commercial LPG supply as disruptions triggered by Middle East tensions ease. The Ministry of Petroleum has restored non-domestic LPG supplies to pre-crisis levels and resumed bulk distribution at half of previous volumes. Improved global shipping conditions and easing pressure on key supply routes have helped stabilize the energy market and reduce supply constraints.
CGT revenue from stock market falls 37.5% in 11 months
Nepal’s capital gains tax (CGT) collection from stock market transactions dropped 37.5% year-on-year to Rs 9.54 billion in the first 11 months of the current fiscal year, compared to Rs 15.27 billion in the same period last year. The decline reflects subdued market performance and fewer profitable trades, despite policy changes making CGT a final withholding tax. Monthly collections also weakened significantly, indicating reduced investor activity in the secondary market.
Nepal Chamber calls for pro-growth monetary policy
The Nepal Chamber of Commerce has urged Nepal Rastra Bank to adopt a more supportive monetary policy aimed at boosting investment, production, and private sector expansion. A delegation led by President Kamlesh Kumar Agrawal called for credit growth above 20%, stable single-digit interest rates, repeal of the Working Capital Loan Guidelines, and more practical anti-money laundering rules. The Chamber also raised concerns over sluggish economic activity, complex KYC procedures, and tightening regulatory pressures on businesses.
Labour department warns hospitals and banks over violations
The Department of Labour and Occupational Safety has issued warnings to hospitals, banks, and financial institutions over violations of labour laws. Inspections revealed cases of unpaid overtime, missing allowances, inadequate breaks, and excessive working hours for employees, including outsourced staff. Authorities have directed institutions to correct violations within a set timeframe and intensified monitoring efforts across the sector.
Nepali mayors attend MuniExpo 2026 in Israel
Three Nepali municipal leaders participated in the MuniExpo Conference 2026 held in Israel from June 21–25 at the invitation of Israel’s Ministry of Foreign Affairs. The delegation included the mayors of Pokhara and Janakpurdham, along with the acting mayor of Kathmandu. The visit also included exposure to Israel’s emergency medical response systems in Ramla and Jerusalem, alongside discussions with global municipal leaders.
RSP convention injects over Rs 500 million into Chitwan economy
The first general convention of the Rastriya Swatantra Party (RSP) generated an estimated economic impact of over Rs 500 million in Chitwan and surrounding areas. The weeklong event attracted thousands of delegates and visitors, with hotel occupancy, transport services, and local trade seeing strong gains. Accommodation spending formed a major portion of the total, while party-related expenditures also boosted local demand. Around 2,200 vehicles were recorded entering the district during the event.
Exports growth dominated by imported raw materials
Most of Nepal’s export growth in FY 2025/26 has come from goods produced using imported raw materials, especially edible oils re-exported to India. While total exports have reached record levels, domestically produced goods still contribute a limited share, highlighting continued reliance on imported inputs for export expansion.
Nepal exports hit Rs 278 billion, driven largely by re-exports
Nepal’s exports reached a record Rs 278 billion in the first 11 months of FY 2025/26, but growth was mainly driven by re-exported goods processed from imported raw materials, particularly edible oils. Traditional exports such as cardamom and carpets accounted for a small share, underscoring the dominance of value-added re-exports over domestically produced goods.
Government upgrades employment centres into skills hubs
The government has approved a new framework to transform local Employment Service Centers into integrated Employment, Skills and Entrepreneurship Centres. The reform expands their role beyond job registration to include skills training, entrepreneurship support, and local labour data management, aiming to improve employment outcomes and economic participation at the local level.
Bara produces 93,330 metric tons of spring rice
Farmers in Bara produced 93,330 metric tons of spring rice from 18,300 hectares of land, with an average yield of 5.1 metric tons per hectare. The harvest generated an estimated Rs 1.87 billion in income. Although cultivated area slightly increased, total earnings declined compared to the previous year due to lower market prices.
Bagmati Province to introduce pangolin conservation initiative in FY 2026/27 budget
The Bagmati Province government is set to roll out a dedicated program in the fiscal year 2026/27 budget aimed at conserving the pangolin, designated as the province’s pride animal. Finance and Planning Minister Prabhat Tamang said the plan also includes measures such as mandating the use of domestically produced timber in public infrastructure, promoting eco-friendly technologies, and adopting integrated water resource management to mitigate climate-related risks. The province additionally plans to establish local collection and processing centers for agricultural and domestic products, alongside district-level “tourist kitchens” to promote local produce.
Gandaki Provincial Assembly continues budget debate for FY 2026/27
The Gandaki Provincial Assembly has continued deliberations on the Appropriation Bill for fiscal year 2026/27, focusing on allocations across ministries. Lawmakers highlighted both strengths and gaps in the proposed budget, calling for improved formulation and more effective implementation. Opposition leader Hari Bahadur Chuman emphasized the need to further strengthen federalism, while RPP leader Pancha Ram Gurung pointed to poor coordination among ministers during budget preparation. The provincial government has proposed a total budget of Rs 32.99 billion, with discussions on the bill still ongoing.
Emergency relief supplies worth Rs 2.36 million handed over to Jajarkot municipality
Emergency non-food relief materials worth Rs 2.36 million have been provided to Nalgad Municipality in Jajarkot under the EU-supported “Pratibaddha” project. The support includes family tents, dignity kits, non-food relief items, and warehouse equipment to strengthen disaster preparedness and response capacity. Implemented by multiple organizations including the European Union, People in Need, Community Self-Reliant Centre, Save the Children, and Scot Wilson Nepal, the initiative aims to enable rapid response during disasters. Relief supplies worth about Rs 24.8 million are being pre-positioned across 10 local levels in four provinces for emergencies such as earthquakes, floods, landslides, and fires.
29 local governments move to endorse delayed budgets by mid-July
Twenty-nine local governments that failed to present their budgets for fiscal year 2026/27 by the June 24 deadline are now preparing to table and pass them by mid-July. According to local government associations, 15 municipalities and 14 rural municipalities missed the deadline due to internal constraints. Officials from Baglung Municipality and Dharan Sub-Metropolitan City cited health-related delays and budget shortfalls, respectively. While the delay does not affect federal grants, local bodies are required to approve their budgets before the fiscal year ends to meet legal and performance requirements.
Raghuganga Rural Municipality orders shutdown of illegal crusher industries
Raghuganga Rural Municipality has instructed unregistered and illegally operating crusher industries to halt operations and remove equipment within one month. According to Chief Administrative Officer Kulraj Paudel, the directive applies to businesses involved in unauthorized extraction of riverbed materials, except those approved for hydropower and infrastructure projects. Municipal Chairman Bhava Bahadur Bhandari said five crusher industries are currently operating in the area, with some already complying with legal requirements. The move aims to prevent revenue leakage and curb illegal extraction and smuggling of river-based resources.
Subsidized mini-tillers distributed to 72 farmers in Myagdi
Malika Rural Municipality in Myagdi has distributed subsidized mini-tillers to 72 farmers, cooperatives, and agricultural groups under a 60 percent subsidy scheme aimed at reducing labor costs and improving productivity. The municipality invested over Rs 3.2 million in the program, with beneficiaries covering the remaining 40 percent. The machines, selected through competitive bidding, include both diesel and petrol-powered models. Officials said the equipment will help address labor shortages and reduce reliance on traditional plowing methods.
Jumla traffic police collect Rs 812,000 in fines
The District Traffic Police Office in Jumla collected Rs 812,000 in revenue over the first 11 months of the fiscal year through fines imposed for traffic violations and drunk driving. According to Assistant Sub-Inspector Jagat Bahadur Kathayat, the penalties were issued for various offenses. During the same period, 68 road accidents were recorded in the district, though no fatalities occurred. Officials attribute rising traffic activity to ongoing urbanization.
Women’s cooperative begins commercial turmeric production in Gulmi
A women’s cooperative in Malika Rural Municipality, Gulmi, has started commercial production and marketing of locally grown turmeric with support from an agricultural entrepreneurship program implemented by Janabikas Kendra, Malika Rural Municipality, and Heifer Project Nepal. Equipped with modern processing machinery, the cooperative is selling pure turmeric at Rs 400 per kilogram and involves women farmers from three wards. It also plans to expand into packaging and marketing other local products such as flour and grit, aiming to promote indigenous crops and strengthen rural livelihoods.
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