KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments collectively point to a fragile and uneven economic environment shaped by both global shocks and domestic structural weaknesses. Declining LPG and kerosene imports alongside rising petrol demand suggest shifting consumption patterns but also a broader slowdown in industrial and household activity, while transport operators’ concerns over fuel prices reinforce cost pressures across sectors.
Globally, geopolitical tensions in the Middle East are amplifying volatility—driving energy prices up, eroding market value, and exposing vulnerabilities in import-dependent economies like India, which faces limited strategic reserves. Domestically, governance challenges persist, as seen in cooperative fraud cases, while climate-related crop damage highlights agricultural vulnerability.
At the same time, there are pockets of resilience and support, including infrastructure progress, industrial restarts, business growth, and external assistance from development partners and neighboring countries. Overall, the picture reflects an economy navigating external risks, internal inefficiencies, and selective recovery momentum.
LPG and kerosene imports from Birgunj border decline
Imports of LPG and kerosene via the Birgunj customs point have decreased during the first eight months of the current fiscal year. Data from the Birgunj Customs Office shows LPG imports dropped to Rs 20.54 billion for 202.8 million kilograms, a decrease of more than 7.2 million kilograms compared to last year. Kerosene imports also fell to Rs 270 million. The Birgunj Chamber of Commerce and Industry stated that reduced LPG and diesel imports signal a slowdown in industrial and household demand, although petrol imports rose by 35,246 kiloliters due to increased private vehicle usage.
India hands over 19 one-ton vehicles to Nepal government
The Government of India has provided 19 one-ton vehicles to the Government of Nepal to support logistical operations. The handover was carried out by Manish Kumar Das, Consul at the Consulate General of India in Birgunj, to Suman Kumar Karki, Assistant Chief District Officer of Parsa, at the Integrated Check Post (ICP). The embassy stated that the assistance was extended in response to a request from Nepal. Assistant CDO Karki expressed appreciation for the support and confirmed that the vehicles have been sent to the Ministry of Home Affairs for immediate use.
Global stock markets lose USD 7 trillion amid Middle East conflict
Escalating military tensions involving the US, Israel, and Iran have wiped out an estimated USD 7 trillion from global capital markets. Energy prices have surged sharply, with oil and gas rising between 70 and 85 percent. Wall Street experienced major losses, as Apple shares dropped 11 percent and Nvidia declined 14 percent. Global indices were also hit hard, with Japan’s Nikkei falling 8 percent and Germany’s DAX down 9 percent. Economists caution that investor behavior is being driven more by geopolitical uncertainty than economic fundamentals, prompting a shift toward safer assets.
Cooperative managers sued for embezzling Rs 187.6 million
A fraud case has been filed at the Dhulikhel District Court against 17 individuals linked to the Pashupati Savings and Credit Cooperative for allegedly misappropriating Rs 187.6 million. District Attorney Tika Bhushan Ghimire initiated the case following complaints from 103 victims. Among the accused are Chairman Pan Bahadur Shrestha (43) and Manager Rajaram Sakupayo (39), both currently absconding. Police in Kavrepalanchowk have warned defaulting borrowers and reported that 26 individuals connected to various cooperative fraud cases have been arrested, while 67 remain on the run.
Truck entrepreneurs warn of crisis over fuel price hikes
Transport entrepreneurs have raised serious concerns about the continuous increase in petroleum prices, warning of a possible crisis in the sector. Speaking at the 14th annual general meeting of the Lumbini Truck Transport Entrepreneurs Association in Bhairahawa, industry leaders said current freight rates are insufficient to cover rising operational costs. They criticized the government for not adjusting fares in line with higher fuel, insurance, and maintenance expenses. The Lumbini chapter urged the new government to introduce supportive policies to protect domestic operators and prevent disruptions in transport services.
Rain and wind damage wheat crops across Saptari district
Heavy rainfall and strong winds have caused widespread damage to wheat crops in Saptari, following a similar weather event earlier in the week. The impact comes just as the harvest season began, already delayed due to late sowing in October and November. According to the Agriculture Knowledge Center Saptari, wheat was cultivated on 35,000 hectares this year. Experts say that such weather conditions hinder proper grain development, resulting in lower weight and reduced overall crop quality across the district.
Hetauda cement industry resumes clinker production after six months
Hetauda Cement Industry has restarted clinker production after remaining closed since September 9, 2025. Information Officer Hareram Acharya stated that the factory currently has sufficient raw materials to operate for two weeks. Although the plant has a maximum capacity of 800 quintals per day, it is presently targeting a daily output of 600 quintals. Established in the fiscal year 1976/77, the state-owned factory has faced recurring financial and operational challenges, but management is now preparing to supply newly produced cement to the market following the restart.
India faces critical five-day strategic oil reserve shortage
Amid rising tensions in the Gulf region, India’s strategic oil reserves are currently sufficient for just five days of national consumption. A 2025 audit by the Comptroller and Auditor General revealed that storage facilities in Andhra Pradesh and Karnataka are filled to only 64 percent capacity, holding 3.372 million metric tons out of a total 5.33 million metric tons. Prime Minister Narendra Modi recently assured Parliament that overall supplies remain adequate, highlighting that commercial oil companies maintain an additional 64.5 days of reserves. Despite this, analysts caution that India—reliant on imports for 88 percent of its crude oil—remains highly exposed to potential supply disruptions in the Middle East.
Madi river bridge construction reaches 80 percent completion
The four-lane bridge over the Madi River, a key part of the Muglin–Pokhara road expansion project, has reached 80 percent completion. The project, linking Vyas Municipalities 4 and 5, was contracted on August 11, 2022, to ZIST-Annak JV for Rs 1.21 billion. Around 125 workers are currently engaged daily to complete the upper structure and finishing works within the current fiscal year. The arc-designed bridge is a major component of the Asian Development Bank (ADB)-funded project, which also includes the Rs 6.213 billion eastern section and the Rs 7.404 billion western section.
Local unit allocates budget for Chamere cave in Bhojpur
Hatuwagadhi Rural Municipality in Bhojpur District has stepped up efforts to conserve the historic Chamere Cave. Despite budget constraints, the ward office has allocated Rs 50,000 for the current fiscal year to promote the site as a tourist destination. Ward Chairman Kumar Bista reported that a stone staircase has been built to improve access to the cave and the nearby Raj Gaiya Devi Than. According to local folklore, a queen once took refuge in the cave during wartime, leading to the village being named Ranibas. Chairman Prem Kumar Rai added that long-term plans are being developed to boost the local economy through religious and heritage tourism.
Surya pulse records Rs 1.808 billion turnover under Juneli brand
Surya Pulse and Processing, the company behind the Juneli food brand, reported a turnover of Rs 1.808 billion in the last fiscal year, reflecting an 18 percent increase from Rs 1.531 million in 2024. The firm posted a net profit of Rs 66 million, with its tangible net worth rising to Rs 460 million. Led by Chairman Sanjay Kumar Minda and managed by the Minda family, the company is involved in importing and processing pulses as well as producing animal feed. It has recently secured credit ratings for facilities totaling Rs 981.5 million to support its depots in Kathmandu and Jhapa.
IMF reaches USD 1.2 billion staff-level agreement with Pakistan
The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan to provide a new assistance package worth USD 1.2 billion. Pakistan remains among the IMF’s largest borrowers, following Argentina and Ukraine. Pending approval from the Executive Board, the package includes USD 1 billion under the Extended Fund Facility and about USD 210 million through the Resilience and Sustainability Facility. The IMF commended the government’s efforts to stabilize the economy and enhance social protection measures amid fluctuating energy prices.
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