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 governance developments highlight a mixed picture of fiscal pressure, infrastructure expansion and public service challenges. While government revenue collection has reached three-quarters of its annual target, weak capital spending and the ambitious revenue required in the remaining days underscore persistent budget execution concerns.
Simultaneously, authorities are stepping up infrastructure management by terminating stalled road contracts, opening new transport facilities and imposing temporary traffic restrictions to accelerate construction.
However, these gains are tempered by systemic issues, including shortages of essential medicines, the rapid spread of bird flu, disruptions to overseas employment caused by Saudi Arabia’s new skill verification system, and declining farmgate prices despite higher agricultural output.
Together, these developments point to the need for stronger policy coordination, improved public service delivery and more effective implementation to sustain economic growth and public confidence.
Govt achieves 75.17 percent of annual revenue target
With 19 days remaining in the current fiscal year, the government has collected Rs 1.112 trillion, representing 75.17 percent of its annual revenue target of Rs 1.480 trillion. To meet the target, it must raise an additional Rs 367.51 billion, requiring average daily collections of Rs 19.34 billion. Tax revenue has reached Rs 1.10 trillion, while non-tax revenue stands at Rs 102.32 billion. Grants amount to Rs 24.11 billion. Meanwhile, government expenditure has climbed to Rs 1.404 trillion, accounting for 71.53 percent of the annual budget, with capital expenditure remaining low at 34.87 percent of the allocated amount.
Traffic police collect over Rs 2.1 million in fines
The Kathmandu Valley Traffic Police Office booked 2,102 motorists for violating traffic regulations over the past 24 hours, generating more than Rs 2.1 million in government revenue. Among those penalized were 89 drivers for drunk driving, 108 for unauthorized ride-sharing, 99 for running traffic lights and 83 for speeding. Authorities also cited 59 motorists for lane discipline violations, 100 for unnecessary honking in restricted areas, two for driving under the influence of drugs, 78 for driving the wrong way and 1,484 for various other traffic offences.
Govt asks Saudi Arabia to suspend skill verification program
Minister for Youth, Labour and Employment Ramjee Yadav has requested the Saudi Arabian government to temporarily halt its newly implemented Skill Verification Program (SVP) for Nepali migrant workers, saying the initiative has disrupted visa processing. During a meeting with Saudi Ambassador Fahd bin Mohammed bin Mnikhr, Yadav stressed the need to address the program’s technical and procedural concerns through bilateral discussions. The ambassador assured Nepal that the Saudi government would provide further information after completing internal consultations.
Salyan health facilities face three-month shortage of free medicines
Government hospitals and health institutions across Salyan have been grappling with a shortage of free medicines supplied by the government for the past three months, forcing patients with chronic illnesses to purchase medication from private pharmacies. The shortage affects medicines used to treat hypertension, diabetes, mental health conditions and family planning needs, including supplies at Salyan District Hospital. Health officials said the provincial government has yet to replenish stocks, disrupting treatment for patients who rely on free medicines. They warned that economically disadvantaged patients are especially affected, as many cannot afford to buy essential drugs. According to the Salyan Health Service Office, the province has failed to deliver the usual 98 categories of medicines provided to government health facilities.
Road Division begins process to terminate 16 stalled road contracts
The Road Division Office in Jumla has launched proceedings to cancel 16 long-delayed road construction contracts along the Karnali Highway. A 15-day public notice issued by the office states that the affected projects include 12 in Kalikot, three in Jumla and one in Mugu. The contracts were signed between fiscal years 2017/18 and 2025/26. Officials said contractors failed to make satisfactory progress despite repeated written and verbal warnings. The office has begun confiscating performance guarantees, recovering mobilization advances with 10 percent interest, and initiating the process to blacklist the contractors under public procurement laws.
Smart bus park opens in Dharan
A new Smart Bus Park officially came into operation in Ward No. 8 of Dharan Sub-Metropolitan City on Saturday, with the aim of improving public transport services and reducing traffic congestion. Built through a cost-sharing arrangement between the federal government and Dharan Sub-Metropolitan City, the project was completed at a cost of Rs 248.6 million on a 9,142.98-square-meter site. The facility has parking space for 38 buses, 18 jeeps, 60 auto-rickshaws, 72 motorcycles and several private vehicles. It also features a passenger waiting hall with capacity for around 300 people, ticket counters, ATM booths, CCTV surveillance, public toilets, a first-aid room, a mini-mart, 18 commercial outlets and a designated stand for 22 auto-rickshaws. Officials believe the facility will help make Dharan’s public transport system safer, more efficient and better organized.
Nighttime traffic restrictions imposed on Dhulikhel-Khawa road for 15 days
The District Security Committee has announced a 15-day nighttime traffic restriction along the Dhulikhel-Khawa section of the Araniko Highway to facilitate road widening and blacktopping work. The restrictions will remain in effect from July 6 to July 20. During this period, tippers and heavy cargo trucks will be prohibited from using the road at all times, while other passenger and freight vehicles will be barred between 7:00 pm and 5:00 am daily. Ambulances and vehicles providing essential services will be allowed to operate. Officials said the schedule was planned after the close of the fiscal year to reduce disruption to the transportation of construction materials. Motorists have been advised to use alternative routes whenever possible, and traffic management will be coordinated with neighboring districts throughout the restriction period.
Morang records rise in spring rice production
Morang produced 103,570.60 metric tons of spring rice this year, an increase of 2,196 metric tons compared to last year’s output of 101,374.10 metric tons. According to the Agriculture Knowledge Center Morang, the cultivated area expanded from 17,755 hectares to 17,857 hectares, while average productivity improved from 5.71 to 5.80 metric tons per hectare. Despite higher production, farmers suffered financial losses because of inadequate storage facilities, which contributed to a sharp decline in market prices from as much as Rs 2,700 per quintal last year to around Rs 2,000 this season.
Dragon fruit festival generates over Rs 1.8 million in sales
A three-day dragon fruit festival in Hetauda generated business worth more than Rs 1.8 million during its first two days before concluding on Saturday. Organized jointly by the Bagmati Province Ministry of Agriculture and Livestock Development, Hetauda Sub-Metropolitan City and the Provincial Agricultural Wholesale Market, the festival recorded sales of 3,500 kilograms of dragon fruit on the opening day and 4,500 kilograms on the second day. The event was designed to promote locally grown organic produce, strengthen direct links between farmers and consumers, and offer aspiring growers free technical guidance on soil preparation, cultivation techniques and disease management.
Bird flu spreads to 82 sites across 11 districts
An outbreak of the H5N1 avian influenza virus has been confirmed at 82 locations in 11 districts, with the Kathmandu Valley emerging as the most affected area over the past three months, according to the Department of Livestock Services. Since the first case was reported in Morang in March, authorities have culled 569,858 birds and destroyed 989,313 eggs along with 1,954.85 quintals of poultry feed. Although the outbreak has been brought under control in several districts, active infections continue in Kathmandu, Lalitpur, Bhaktapur and Kavrepalanchowk. The department has established a control room, mobilized technical teams and initiated gene sequencing of the virus to monitor possible mutations.
Comment