KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed but telling picture of structural transition and short-term pressure: while the Nepal Stock Exchange decline and broad-based sectoral losses indicate weak investor confidence, rising market turnover suggests continued liquidity and active participation.
Macroeconomic indicators remain cautiously optimistic, with the National Statistics Office projecting GDP growth to Rs 6.6 trillion, though modest agricultural expansion and stagnant dollar-denominated income highlight productivity and currency challenges. At the same time, strong tea exports and a surge in electric vehicle imports signal shifting consumption and trade patterns, even as dependency on limited export markets persists.
Governance and institutional responses—ranging from tax decentralization and procurement blacklisting to vehicle misuse crackdowns—indicate attempts to improve accountability, yet persistent bottlenecks such as customs office closures, infrastructure gaps in tourism, and stress in the construction sector reveal deep operational inefficiencies.
Social and labor concerns, including overcrowded correction facilities and union demands amid technological change, further underscore that Nepal’s growth trajectory is being shaped as much by structural reforms and service delivery capacity as by economic expansion itself.
NEPSE declines as most stocks fall; turnover rises to Rs 6.53 billion
The Nepal Stock Exchange (NEPSE) dropped by 26.16 points on Tuesday, closing at 2,770.26, a decline of 0.93 percent. The Sensitive Index also slipped by 2.14 points to 467.57, down 0.45 percent, while both the float and sensitive float indices decreased by 0.81 percent and 0.52 percent respectively. A total of 14,018,920 shares were traded through 151,354 transactions across 349 listed companies. Daily turnover climbed to Rs 6.531 billion, up from Rs 4.748 billion recorded on Monday. Market sentiment remained largely negative, with only 42 companies posting gains, while 213 declined and 14 remained unchanged. Among 13 sectoral indices, only the “others” group registered growth at 0.73 percent, whereas hotels and tourism fell the most by 2.56 percent, followed by manufacturing at 2.46 percent.
Gold and silver prices decline in domestic market
Gold prices fell in the domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers. The price of gold dropped by Rs 3,000 per tola, bringing it down to Rs 297,500, after reaching a record Rs 300,500 the previous day. Silver prices also declined by Rs 100 per tola, and was traded at Rs 4,945.
Tea exports climb to Rs 4.59 billion
Nepal exported 15.6 million kilograms of tea worth Rs 4.59 billion in the fiscal year 2024/25, a notable rise from Rs 3.625 billion in the previous year. The country is marking the 30th National Tea Day today in Phikkal, highlighting an industry that provides employment to around 60,000 people. India remains the primary market, absorbing about 85 percent of exports, while tea imports have also increased to Rs 92.9 million. Despite strong global demand for green and specialty teas, the total area under tea cultivation is gradually declining.
Economy projected to reach Rs 6.6 trillion
The National Statistics Office has estimated that Nepal’s Gross Domestic Product (GDP) will reach Rs 6.6 trillion in the fiscal year 2025/26. This represents an increase of around Rs 400 billion compared to last year’s revised estimate of Rs 6.199 trillion. The preliminary per capita Gross National Income (GNI) is projected at USD 1,535. Although the figure appears unchanged in dollar terms due to exchange rate pressures, it indicates growth in domestic currency. Based on current exchange rates, the average annual per capita income is estimated at approximately Rs 228,000.
Agriculture remains largest contributor to GDP at 24.03 percent
According to the National Statistics Office, the agriculture, forestry, and fisheries sector continues to dominate Nepal’s economy, contributing 24.03 percent to Gross Value Added (GVA) in the fiscal year 2025/26. However, the sector recorded modest growth of 1.58 percent. Wholesale and retail trade accounted for 14.09 percent of GVA, growing by 4.51 percent. Other key sectors include education (9.22 percent), real estate (8.07 percent), and transport and storage (7.23 percent). The industrial sector contributed 5.72 percent overall.
Electric vehicle imports via Birgunj jump by 102 percent
Imports of electric vehicles through the Birgunj entry point surged by 102 percent during the first nine months of the current fiscal year. The total import value reached Rs 2.98 billion, compared to Rs 1.48 billion during the same period last year. This includes 493 electric jeeps, cars, and vans worth Rs 1.46 billion, along with 7,398 electric motorcycles valued at Rs 960 million and 4,606 electric three-wheelers worth Rs 530 million. Tourism entrepreneurs call for dedicated bus park in Kathmandu. Tourism-related organizations, including the Tourist Bus Association of Nepal and the Nepal Association of Tour and Travel Agents, have voiced concerns over the absence of a dedicated tourist bus terminal in Kathmandu. Although tourism plays a vital role in the national economy, around 100 tourist buses serving 3,000 to 4,000 passengers daily are still operating from roadside areas in Sorhakhutte. Since operations were relocated from Kantipath in fiscal year 2018/19, travelers have faced safety risks and inconvenience due to the lack of proper infrastructure.
Karnali province generates Rs 480 million in internal revenue
Karnali Province has collected Rs 480.3 million in internal revenue during the first nine months of the current fiscal year, achieving roughly half of its annual target of Rs 967.4 million. This marks an increase of about Rs 70 million compared to the same period last year. Authorities credit improved tax enforcement, the resumption of driving licence services in Birendranagar, and additional revenue from forest-based royalties. The province has also introduced a levy on uncultivated land, charging Rs 5 annually for plots up to 5,087.33 square meters and up to Rs 1,500 for land exceeding 10,174.66 square meters.
Staff shortage shuts most customs offices in Parsa and Bara
Out of 11 sub-customs offices under the Birgunj Customs Office, only two are currently operational. While Thori in Parsa and Matiarwa in Bara remain functional, nine others—including Simraungadh and Janakitola—have been closed due to a lack of personnel and infrastructure. The closures come as the government tightens enforcement on goods worth over Rs 100 entering from India. Chief Customs Administrator Krishna Prasad Mainali stated that maintaining small and scattered customs points is difficult without proper banking and quarantine facilities. Monitoring responsibilities in these areas have largely been handed over to the Armed Police Force.
Govt retrieves 622 vehicles in governance reform drive
Under the directive of Prime Minister Balen Shah, the Office of the Prime Minister and Council of Ministers has reclaimed 622 government vehicles that were being used in violation of existing rules. A circular issued on April 23 required officials below the rank of Joint Secretary to return four-wheeled vehicles designated for senior officials. The initiative aims to curb misuse of state resources and reduce expenses related to fuel and maintenance. The government clarified that vehicles will still be available for official group use and emergency purposes to ensure uninterrupted public service delivery.
SC seeks explanation within 24 hours over Golchha’s detention
The Supreme Court (SC) of Nepal has directed authorities to clarify within 24 hours the detention of businessman Shekhar Golchha. The order was issued on Tuesday by a single bench of Justice Nripa Dhwoj Niroula following a habeas corpus petition filed by his wife, Seema Golchha. The petition claims that the detention is unlawful and calls for his immediate release. The court has instructed the Office of the Attorney General to present the detainee along with all relevant investigation documents. The move comes amid a high-profile inquiry, with the court demanding clear legal justification for the continued custody.
Nepalgunj airport launches free trolley bus service
Nepalgunj Airport has introduced a free trolley bus service starting Tuesday to assist passengers traveling between the airport and Ranjha Chowk. Operated by the Civil Aviation Authority of Nepal, the 25-seat vehicle is designed to be accessible for people with disabilities. The service aims to ease the two-kilometer commute, particularly benefiting elderly passengers, children, and those with heavy luggage. Officials said the initiative is part of ongoing efforts to modernize airport services and improve passenger convenience in the region.
GEFONT unveils nine-point agenda ahead of workers’ day
The General Federation of Nepalese Trade Unions (GEFONT) has released a nine-point manifesto in the lead-up to International Workers’ Day. The document highlights priorities such as fair wages, universal social security, and paid internship opportunities. GEFONT Chairperson Binod Shrestha stressed the need to address emerging challenges like automation, artificial intelligence, and wage stagnation. The federation plans to distribute 1.5 million pamphlets nationwide and organize a large rally in Kathmandu, aiming to mobilize workers and engage younger generations.
Construction sector seeks emergency intervention from PM Shah
Construction entrepreneurs have urged the government to declare a state of emergency in the sector, citing rising fuel and raw material costs. A delegation from the Kathmandu Valley Construction Entrepreneurs Association submitted a memorandum to Prime Minister Balen Shah through the Chief District Officer. They warned that escalating costs have halted numerous projects, making it difficult to continue work under existing contracts. The group has called for immediate price adjustment mechanisms and policy support to prevent further disruption in the industry.
Seven construction and supply firms blacklisted
The Public Procurement Monitoring Office (PPMO) has blacklisted seven construction companies and suppliers as of Tuesday. The action was taken under the Public Procurement Act 2007 following recommendations from various public institutions. The listed firms are barred from participating in government tenders and procurement processes during their respective penalty periods. Authorities stated that the move aims to ensure accountability and uphold quality standards in public projects.
Taxpayer service centers expand across six local units in Chitwan
Taxpayer Service Centers have been rolled out in five municipalities and one rural municipality in Chitwan, excluding Bharatpur Metropolitan City. Following a government decision to decentralize services from Khairahani, centers were gradually established in Ratnanagar, Kalika, Rapti, Madi, and Ichchhakamana. These centers are authorized to issue personal and business PANs, update taxpayer information, and recommend VAT registration. The Internal Revenue Office Bharatpur, which serves around 74,000 taxpayers, has collected Rs 18.055 billion so far against an annual target of Rs 29.817 billion.
Baglung local unit advances 124 infrastructure projects
Nisikhola Rural Municipality has made significant progress in implementing infrastructure plans for the current fiscal year. Out of 171 proposed projects, 124 have been contracted and 47 completed. Work accelerated after delays caused by parliamentary elections earlier in the year. The municipality is currently focusing on major road upgrades and has allocated Rs 5 million each for expanding its administrative building and conserving Rig Lake. It has also reduced arrears by Rs 70 million last year and cleared an additional Rs 11 million this year.
Govt bans small-size packaging of bakery shortening
The Department of Food Technology and Quality Control has prohibited the production and sale of bakery shortening in packages smaller than 10 kilograms. Industries have been given 15 days to withdraw such products from the market. Authorities warned that failure to comply will result in legal action under the Food Hygiene and Quality Act 2024. Manufacturers are also required to report progress on product recalls to relevant offices within the deadline.
Overcrowding worsens conditions at Hetauda juvenile correction home
The juvenile correction facility in Hetauda is facing severe overcrowding, with 89 inmates housed in a facility designed for only 30. Established in 2018, the center now accommodates juveniles transferred from Madhesh Province and Bhaktapur after unrest in 2025. Among the inmates, 29 are above 18 years old, despite legal requirements for separate housing. Overcrowding has led to health concerns, including respiratory issues, with many detainees forced to sleep on the floor and endure inadequate sanitation facilities.
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