KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy presented mixed signals on Monday, with strong underlying activity tempered by cautious investor sentiment and continued regulatory intervention. Despite stock market turnover surging above Rs 6.7 billion, the NEPSE index fell more than 33 points, suggesting that increased trading was driven more by selling pressure than renewed confidence.
The Nepal Rastra Bank’s decision to absorb Rs 30 billion in excess liquidity and penalize a finance company for violating reserve requirements underscores its focus on monetary discipline and financial stability. At the same time, infrastructure and policy initiatives, including the inauguration of the Nagdhunga-Sisnekhola Tunnel, progress on the Kakarbhitta-Laukahi highway, and proposed reforms to mining legislation, reflect the government’s push to improve long-term economic competitiveness.
Rising gold prices and record silver sales point to sustained demand for safe-haven assets amid market uncertainty, while the Supreme Court’s ruling on share premium reserves signals tighter corporate governance in the capital market. Positive developments in energy, with Nepal exporting surplus electricity during the monsoon, and business expansion plans by the Dairy Development Corporation, Nepal Airlines and Green Plywood Nepal indicate improving domestic economic activity.
However, unresolved cooperative fraud protests, the indefinite suspension of vehicle services in Bagmati Province and shifting labor migration patterns highlight persistent governance and structural challenges. Overall, the day’s developments portray an economy balancing reform efforts, infrastructure expansion and macroeconomic stability against fragile market confidence and institutional shortcomings.
NEPSE drops 33 points despite turnover exceeding Rs 6.7 billion
The Nepal Stock Exchange (NEPSE) index declined by 33.28 points on Monday, erasing the previous session’s gains of 7.90 points. Following the drop, the benchmark index closed at 2,701 points. The market opened on a positive note and climbed to an intraday high of 2,744 points at around 12:13 pm before reversing course and remaining in negative territory for the rest of the session. Despite the decline, trading activity increased significantly, with daily turnover rising to Rs 6.7 billion, up from Rs 4.67 billion in the previous session. Share prices of 35 companies advanced, while 235 declined and five remained unchanged.
Gold rises to Rs 288,500 per tola, silver to Rs 4,445
Gold prices in the domestic market increased again on Monday, with fine gold trading at Rs 288,500 per tola, up Rs 1,400 from the previous trading day, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold per 10 grams also climbed to Rs 247,340 from Rs 246,140. Silver prices rose by Rs 35 to Rs 4,445 per tola. Traders attributed the increase to movements in international precious metals prices, fluctuations in the US dollar exchange rate and changes in domestic supply and demand.
Nagdhunga tunnel inaugurated, expected to generate Rs 3.5 billion annually
The Nagdhunga-Sisnekhola Tunnel was officially inaugurated on Monday, marking the completion of Nepal’s first road tunnel project. Built at an estimated cost of Rs 29 billion, the tunnel is projected to generate around Rs 3.5 billion in annual revenue, based on an estimated daily traffic of 8,800 vehicles and a 60 percent utilization rate. The project is expected to ease congestion at Nagdhunga and improve travel between the Kathmandu Valley and the rest of the country by making journeys faster, safer and more efficient.
NRB absorbs Rs 30 billion in excess liquidity
The Nepal Rastra Bank (NRB) absorbed Rs 30 billion from the banking system on Monday through a 179-day deposit collection instrument to manage excess liquidity. Class A, B and C licensed financial institutions took part in the online competitive bidding, with interest rates determined based on the lowest bids. Institutions were required to bid a minimum of Rs 100 million, while the principal and interest will be settled on January 22, 2027.
Kakarbhitta–Laukahi highway upgrade reaches 38% completion
Around 38 percent physical progress has been achieved so far in the eastern section of the Kakarbhitta–Laukahi road expansion and upgrading project being constructed along the East–West Highway. The 95-kilometer project, being implemented under the Project Directorate of the Department of Roads, has been divided into eastern and western sections. The eastern section covers the 45-kilometer stretch from Kakarbhitta to Sitapuri, where construction work has gained momentum in recent months. According to the latest project details, the combined physical progress of the first, second and third packages under the eastern section has reached 37.78 percent. Although construction has accelerated recently, only around six months remain before the current contract period expires, making an extension necessary.
Ministry finalizes bill to amend mining laws
The Ministry of Industry, Commerce and Supplies has finalized the draft Mines and Minerals Related Laws Amendment and Integration Bill for submission to the Office of the Prime Minister and Council of Ministers under the government’s 100-day action plan. Led by Minister Gauri Kumari Yadav, the proposed legislation seeks to modernize laws governing mineral exploration, extraction, conservation and regulatory compliance. It also aims to eliminate administrative hurdles and clarify responsibilities among the federal, provincial and local governments while creating a stronger legal framework to encourage sustainable resource development and private investment.
Finance minister conducts surprise inspection of SEBON
Finance Minister Swarnim Wagle carried out an unannounced inspection of the Securities Board of Nepal (SEBON) on Monday, coinciding with a sharp decline in the secondary market, where the NEPSE index fell 33.28 points to 2,701.32. The visit comes shortly after the appointment of SEBON Chairperson Gopal Bhatta, who had been instructed by the finance minister to submit weekly progress reports on the implementation of the board’s 10-year capital market development roadmap. Investors are also closely watching regulatory developments following recent consultations between Prime Minister Balendra Shah and financial regulators, stock exchange officials and investor groups aimed at improving market confidence.
Cooperative fraud victims protest for return of deposits
Victims of cooperative fraud staged fresh protests in Kathmandu on Monday, demanding the immediate return of their savings and stronger deposit protection measures. Organized by the National Campaign for Cooperative Depositors Protection, the rally marched from Maitighar to the office of the Problematic Cooperative Management Committee in Buddhanagar and planned to continue to the National Cooperative Regulatory Authority in Pulchowk. Protesters carried copies of past government agreements and accused the government of treating small and large depositors differently. Organizers warned of more intense demonstrations if their demands remain unaddressed after the two-day awareness campaign.
DDC to open 30 new outlets in Kathmandu Valley
The Dairy Development Corporation (DDC) plans to open 30 new outlets across the Kathmandu Valley by mid-August 2026 under a new service model. According to General Manager Sharan Kumar Pandey, the new outlets will be located in areas including Budhanilkantha, Banasthali, Kalanki, Koteshwor and New Baneshwor. The corporation also reopened its renovated Basantapur outlet on Monday. In response to growing demand for products such as milk, curd, paneer and ghee, DDC also plans to expand into major cities outside the valley and launch online sales in the coming days.
Bagmati Province extends suspension of vehicle services indefinitely
The Bagmati Province government has extended the suspension of vehicle-related services indefinitely as authorities continue server upgrades and database migration needed to implement revised provincial vehicle tax rates. Although federal transport authorities had initially planned to restore services after a temporary shutdown through July 24, the provincial government said technical integration work is still underway. As a result, vehicle registration and renewal services will remain suspended until further notice.
Peak electricity demand reaches 3,248 MW
Nepal’s peak electricity demand has reached 3,248 megawatts (MW), while total daily energy consumption stands at 73,629 megawatt hours (MWh), according to the Nepal Electricity Authority (NEA). The country is not importing electricity from India at present and is instead exporting 22,102 MWh of surplus power during the monsoon season. Private hydropower producers are supplying 47,563 MWh to the national grid, while NEA subsidiaries generate 17,108 MWh and the authority’s own projects contribute 8,959 MWh. The NEA said uninterrupted electricity supply has been maintained despite continuous rainfall, with technical teams on standby to respond to any outages.
Supreme Court says share premium must remain in reserve
The Supreme Court has ruled that funds collected above the face value of shares must be kept in a dedicated reserve fund and cannot be distributed as dividends. A joint bench of Justices Manoj Kumar Sharma and Srikanta Poudel dismissed a petition seeking to cancel the initial public offering of Himalayan Reinsurance after concluding that the company had met the required financial standards. However, the court criticized the Securities Board of Nepal and the Nepal Insurance Authority for inadequate regulatory oversight and directed them to ensure that share premium funds are maintained in restricted reserves instead of being distributed as profits.
UAE becomes top destination for Nepali migrant workers
The United Arab Emirates (UAE) has overtaken Malaysia, Qatar and Saudi Arabia as the leading destination for Nepali migrant workers, driven by growing demand in the service and construction sectors after the pandemic. According to the Department of Foreign Employment’s annual report for fiscal year 2024/25, 183,580 workers received labor approval for the UAE, followed by 132,646 for Malaysia, 132,051 for Qatar and 124,583 for Saudi Arabia. The report attributes the UAE’s rise to greater availability of indoor jobs, while higher minimum wages helped sustain demand for Malaysia. Interest in Qatar and Saudi Arabia continued to decline as more Nepali workers also explored opportunities in European countries such as Romania, Croatia and Cyprus.
Nepal Airlines launches phone booking service for international flights
Nepal Airlines Corporation has introduced a telephone booking service for international flights, allowing passengers to reserve and purchase tickets by calling +977-5718538 during office hours. In addition to bookings through its sales counters, official website and mobile application, travelers can now complete the process over the phone by providing their travel details, email address, mobile number and required documents. Payments can be made using a QR code sent digitally, enabling passengers to finalize their bookings from home.
Himalayan Bullion Company’s silver sales soar to Rs 9.79 billion
Himalayan Bullion Company recorded silver sales worth Rs 9.789 billion during the first nine months of the last fiscal year, driven by rising global silver prices and increased investment demand. The figure marks a sharp rise from Rs 302 million in 2025 and Rs 474 million in 2024. Nepal’s only organized corporate silver trader improved its operating profit margin to 5.64 percent, increased shareholders’ equity to Rs 307 million and reduced its gearing ratio to 0.48, with total debt falling to less than half its equity. Supported by strong cash flows and a CARE-NP BB+ credit rating, the company imports silver from Dubai and Hong Kong.
Department warns against sale of banned goods
The Department of Commerce, Supplies and Consumer Protection has warned businesses against the illegal import, storage and sale of goods prohibited by the government. The department said import restrictions published in the Nepal Gazette on June 17, 2019, and April 6, 2020, remain in force under the Export-Import (Control) Act, 1957. It cautioned that businesses violating the rules, including those selling prohibited products through online platforms, will face legal action under the Export-Import (Control) Act, 1957, and the Consumer Protection Act, 2018.
NRB fines Reliance Finance for CRR violation
The Nepal Rastra Bank (NRB) has fined Reliance Finance Rs 2,924.48 for failing to maintain the mandatory Cash Reserve Ratio (CRR). According to the central bank’s Bank Supervision Department, the Class C financial institution breached the regulatory requirement between February 22 and April 18 during the fourth quarter of fiscal year 2025/26. The penalty was imposed under Section 100 of the Nepal Rastra Bank Act, 2002.
Surya Nepal posts Rs 32.36 billion annual turnover
Surya Nepal recorded a business turnover of Rs 32.356 billion in 2025, up from Rs 28.82 billion in 2024 and Rs 28.99 billion in 2023. The company maintained a strong financial position with a gearing ratio of just 0.01 and no long-term debt. It also held Rs 4.944 billion in bank deposits and more than Rs 1 billion in treasury bills at the end of the year. Established in 1986, the company is chaired by Sanjeev Puri and is owned by India’s ITC Limited (61 percent) and Nepali investors (39 percent). It manufactures cigarettes, incense sticks and packaged food products, while also exporting honey through its subsidiary, Surya Nepal Ventures.
Green Plywood Nepal plans IPO of 1.64 million shares
Green Plywood Nepal has announced plans to issue an initial public offering (IPO) of 1.64 million shares, representing 20 percent of its issued capital, after converting into a public limited company on July 15. The company has called a special general meeting for August 7 to endorse the proposal. It reported an 18.96 percent increase in sales to Rs 475 million in fiscal year 2024/25. Supported by export subsidies and steady trade with India, which accounts for 70 percent of its sales, the company increased its tangible net worth to Rs 226 million while improving its gearing ratio from 7.41 to 2.44.
Bangladesh Embassy hosts mango festival in Kathmandu
The Embassy of Bangladesh in Nepal organized the Bangladesh Mango Delicacy Exhibition and Festival in Kathmandu on Sunday to promote trade and cultural ties between the two countries. Held at Utsav Kunja Banquet, the event attracted around 250 participants, including diplomats, government officials, importers and business representatives. Visitors were introduced to popular Bangladeshi mango varieties, including Khirshapat (Himsagar), Haribhanga, Langra, Fazli, Gopalbhog and Amrapali, along with processed products such as juices, pickles, jams and jellies.
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