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 indicators present a mixed but cautiously optimistic picture of the economy, where strong external sector performance, expanding digitalization, rising infrastructure investment, and growing energy capacity are helping stabilize macroeconomic conditions despite persistent structural weaknesses.
Record foreign exchange reserves, rising remittance inflows, growing industrial and foreign investment commitments, and expanding hydropower generation have strengthened economic confidence, while increased digital transactions and banking penetration reflect rapid financial modernization.
At the same time, weak productive-sector growth, continued dependence on consumption and remittances, mounting liabilities in cooperatives and dairy sectors, declining foreign employment demand, and heavy losses among state-owned enterprises reveal deep institutional and structural vulnerabilities.
The moderate recovery in the stock market and declining fuel imports linked to hydropower expansion suggest gradual economic transition, but concerns over governance, inefficient public enterprises, regional disparities, and limited industrial competitiveness continue to challenge Nepal’s long-term economic sustainability.
NEPSE gains 4.99 points as turnover rises to Rs 6.03 billion
The Nepal Stock Exchange (NEPSE) increased by 4.99 points on Wednesday to close at 2,782.10, posting a 0.17 percent gain amid higher trading activity. The market recovered slightly after falling 9.24 points on Tuesday, following a sharp 28.85-point rise on Monday. Total turnover reached Rs 6.03 billion, with 15.24 million shares of 354 companies traded through 60,562 transactions. Market performance remained mixed, as 151 companies advanced, 105 declined, and 14 remained unchanged. Among the 13 sectoral indices, nine posted gains led by investment and insurance groups, while finance and manufacturing sectors ended lower.
Gold prices fall while silver prices edge higher
Gold prices declined in the domestic market on Wednesday, while silver prices increased slightly. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices dropped by Rs 1,000 per tola to Rs 290,500, down from Rs 291,500 on Tuesday. Meanwhile, silver prices rose by Rs 20 per tola and were traded at Rs 5,080.
NRB expands standing deposit facility to daily operations
The Nepal Rastra Bank on Wednesday introduced a major revision to its monetary policy framework by converting the Standing Deposit Facility (SDF) into a daily operational window. Previously, banks could access the facility only on Sundays, Tuesdays, and Thursdays. Under the new arrangement, commercial banks will now be able to deposit excess liquidity with the central bank on every working day. The NRB also stated that both principal and interest payments will be credited to participating institutions after 3:00 PM on the following business day.
Industrial and foreign investment approvals cross Rs 492 billion
According to the Economic Survey 2025/26, total industrial investment approvals reached Rs 492 billion by mid-March 2026. Of the total, Rs 389.74 billion was approved by the Department of Industries, while Rs 102.26 billion came through the Investment Board Nepal. Authorities registered 921 new industries during the review period, taking the total number of registered industries to 11,140 with projected employment generation of 785,000 jobs. Foreign direct investment commitments across 7,921 projects reached Rs 625.58 billion, with the service sector accounting for the largest share at 28.3 percent.
Parliament to hold joint session on Republic Day for budget presentation
Speaker Dhol Prasad Aryal informed lawmakers that a joint meeting of the House of Representatives and the National Assembly will be held on Friday, May 29, at 4:00 PM to present the federal budget. In accordance with the Constitution of Nepal 2015, the annual budget must be tabled on Republic Day. Members have been instructed to complete security procedures and take their seats by 3:45 PM. After the joint session, the House of Representatives will reconvene separately at 5:30 PM for preliminary legislative proceedings.
Nepal’s economy expands to Rs 6.6 trillion
Finance Minister Swarnim Wagle announced through the Economic Survey 2025/26 that Nepal’s economy has grown to Rs 6.6 trillion in the current fiscal year. Bagmati Province contributed the highest share to the national economy at 36.7 percent, while Karnali Province contributed the least at 4.2 percent. The survey showed that consumption continues to dominate the economy, accounting for 90.3 percent of Gross Domestic Product (GDP). Per capita GDP is projected to reach USD 1,513, while per capita national income and disposable income are estimated at USD 1,535 and USD 2,055 respectively.
Foreign exchange reserves hit record Rs 3.414 trillion
The Economic Survey 2025/26 projected continued macroeconomic stability supported by a strong external sector. Nepal’s foreign exchange reserves climbed to a record Rs 3.414 trillion, largely driven by a 37.7 percent increase in remittance inflows, which reached Rs 1.45 trillion. The reserves are sufficient to cover 18.5 months of imports. Although the country’s trade deficit widened to Rs 1.098 trillion, inflation remained low at 2.13 percent, while remittance inflows continued to support external sector stability. QR-based digital payments crossing Rs 125 billion also reflected expanding financial digitization.
Cooperative sector mobilizes over Rs 1.29 trillion in savings
The Economic Survey 2025/26 presented in Parliament showed that Nepal’s cooperative sector mobilized Rs 1.29 trillion in member savings. The country currently has 32,325 active cooperatives with more than 10.16 million members. Outstanding loan disbursements have reached Rs 905.48 billion, while total share capital stands at Rs 143.29 billion. The report also noted that among 23 troubled cooperatives under the management of the Problematic Cooperative Management Committee, only three have completed settlement processes, while 20 still face unresolved deposit liabilities.
QR-based digital transactions exceed Rs 125 billion
Government financial data published in the Economic Survey showed that QR-code-based transactions surpassed Rs 125 billion by mid-March 2026. Mobile banking users increased to 29.4 million, while internet banking subscribers reached 2.37 million. Mobile phone penetration rose to 103.2 percent and internet access penetration to 145.7 percent. Fourth-generation (4G) network coverage has now reached 89.6 percent of the population. The government also expanded digital land management services through online systems at 135 Land Revenue Offices nationwide.
Nepal earns Rs 5.5 billion from carbon trading
Finance Minister Swarnim Wagle informed Parliament that Nepal generated approximately USD 36 million (around Rs 5.5 billion) through carbon trading by mid-March 2026. The revenue was secured through climate-related projects implemented under the National Adaptation Plan aimed at reducing emissions. International adaptation funding limits for individual countries have also been increased from USD 20 million to USD 40 million, allowing Nepal greater access to climate financing for resilience and infrastructure development.
Motorcycle imports through Bhairahawa customs rise sharply
Motorcycle imports through the Bhairahawa Customs Office reached Rs 18.96 billion by May 14 of the current fiscal year. Customs records show that 148,852 motorcycles were imported during the period, generating Rs 18.11 billion in revenue from customs duties, VAT, and road taxes. In the previous fiscal year, 114,522 motorcycles worth Rs 13.41 billion had been imported, producing Rs 13.76 billion in revenue. Imports of petrol-powered jeeps, cars, and vans also increased to 4,373 units from 2,800 units last year. However, imports of small electric vehicles declined, with 2,019 units imported compared to 2,270 units a year ago.
Nepal’s road network expands to 104,906 kilometers
The Economic Survey 2025/26 stated that Nepal’s total road network has expanded to 104,906 kilometers. According to the report, the density of blacktopped roads built by the federal government has reached 138.7 meters per square kilometer. In the communications sector, digital television access now covers 82 percent of households, while mobile phone density has reached 103.2 percent. Basic drinking water access has expanded to 97 percent of the population, though only 29 percent currently have access to safe drinking water.
Nepal’s installed electricity capacity reaches 4,105 MW
The Economic Survey 2025/26 reported that Nepal’s total installed electricity generation capacity reached 4,105 MW by mid-March 2026. Expansion of the national transmission system increased the grid network to 7,280 circuit kilometers. Driven by continued investment in transmission infrastructure and urban grid expansion, electricity access has now reached 99.1 percent of the population, significantly improving nationwide connectivity and reducing localized transmission constraints.
Nepal expands petroleum storage capacity to 16-day reserve
The Economic Survey 2025/26 showed that Nepal’s total petroleum storage capacity reached 102,281 kiloliters by mid-July 2025, allowing the country to maintain fuel reserves sufficient for 16 days of average national demand. The report highlighted significant regional disparities in storage capacity, with Gandaki Province holding reserves for 37 days, while Karnali Province has storage for only one day. The Amlekhgunj depot in Madhesh Province remains the country’s largest fuel storage hub, accounting for 43.5 percent of total national capacity, followed by Kathmandu with 21.9 percent.
Hydropower expansion reduces fuel imports
The Economic Survey 2025/26 presented in Parliament stated that increased domestic hydropower production has contributed to a decline in petroleum imports. Data covering the first eight months of the fiscal year up to mid-March 2026 showed that petrol imports fell by 10 percent compared to the same period last year, while diesel imports declined by 9.9 percent. The report linked the reduction to growing use of electricity and cleaner energy alternatives across industries and households.
DDC clears Rs 120 million in payments to dairy farmers
The Dairy Development Corporation (DDC) has paid Rs 120 million to dairy farmers as part of efforts to clear outstanding dues accumulated over the past four months. According to the corporation, total unpaid liabilities to farmers had reached around Rs 580 million. The Ministry of Agriculture, Forest and Environment said the DDC has been releasing approximately Rs 10 million daily following reforms aimed at improving its financial and operational performance. Despite the recent payments, the corporation still owes around Rs 460 million to farmers, while private dairy industries across the country reportedly owe nearly Rs 3 billion.
Government blacklists 11 contractors over procurement violations
The Public Procurement Monitoring Office under the Office of the Prime Minister and Council of Ministers has blacklisted 11 construction companies and suppliers for failing to fulfill contractual obligations. The action followed complaints from multiple government agencies regarding execution failures. Under Section 63(1) of the Public Procurement Act, 2007, the blacklisted firms are immediately prohibited from participating in public procurement and government bidding processes during the penalty period.
Government investment in public enterprises exceeds Rs 437 billion
The Economic Survey 2025/26 reported that total government equity investment in public enterprises increased by 2.38 percent to Rs 437.8 billion. However, the government’s overall ownership share declined slightly to 91.68 percent, while private sector participation rose to 8.32 percent. The state continues to maintain near-total ownership in sectors such as social services, trading, public utilities, and services. Public enterprises in the financial sector recorded the lowest level of government ownership at 64.41 percent.
Foreign employment approvals decline as renewals increase
Finance Minister Swarnim Wagle informed Parliament through the Economic Survey 2025/26 that new foreign employment approvals declined by 13.7 percent to 273,530 workers. However, labour permit renewals for returnee migrant workers increased by 15.9 percent, reaching 251,983 approvals. Overall, a total of 525,513 foreign employment permits were issued during the review period, slightly lower than the 534,471 permits issued in the previous fiscal year. Of the total workers, 12.1 percent were women and 87.9 percent were men.
Public enterprises report mixed financial performance
According to the Economic Survey 2025/26, dividend income received by the government from public enterprises declined to Rs 8.377 billion in the 2024/25 fiscal year, down from Rs 8.835 billion the previous year. Average returns on capital investment fell to 2.3 percent despite total assets of public enterprises increasing by 9.49 percent to Rs 3.206 trillion. Of the country’s 43 operating public enterprises, 27 recorded profits totaling Rs 45.084 billion, while 16 reported losses.
Five loss-making public enterprises account for over half of sector losses
A report published by the Ministry of Finance revealed that five financially troubled public enterprises accounted for 51.38 percent of total losses in the state-owned enterprise sector. Nepal Airlines Corporation recorded the largest loss at Rs 1.233 billion and reported a negative net worth of Rs 7.934 billion. Other major loss-making entities included the Nepal Water Supply Corporation with losses of Rs 807.9 million and the Dairy Development Corporation with losses of Rs 402.1 million.
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