KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments reflect the government’s dual focus on strengthening economic governance while advancing sectoral development. Parliamentary approval of the Finance Bill, commitments to improve capital expenditure, review the VAT system, and remove Nepal from the FATF grey list signal efforts to enhance fiscal credibility and attract investment, although the Auditor General’s report underscores persistent weaknesses in public financial management, accountability, and project execution.
At the same time, rising petroleum imports that continue to outpace exports highlight Nepal’s structural trade imbalance despite encouraging signs such as declining LPG imports driven by greater electrification. Beyond macroeconomic reforms, initiatives in tourism, agriculture, forestry, digital governance, infrastructure, and entrepreneurship point to a broader strategy of promoting sustainable, locally driven growth.
However, challenges including avian influenza outbreaks, disruptions to tourism connectivity, and institutional inefficiencies suggest that translating policy commitments into measurable economic outcomes will depend on effective implementation, stronger governance, and continued investment in resilience and productivity.
HoR approves Finance Bill 2026
The House of Representatives on Sunday endorsed the Finance Bill, 2026, through a majority vote. Following its approval, Finance Minister Swarnim Wagle said the government would prioritize better budget execution and take concrete steps to address the chronic underutilization of capital expenditure from the next fiscal year. He assured lawmakers that the newly introduced tax measures would not place an additional burden on low-income groups. Wagle further revealed that a high-level committee would be established to assess the multi-rate Value Added Tax (VAT) system, with future tax reforms to be guided by the panel’s recommendations.
Gold and silver prices climb in domestic market
Prices of both gold and silver increased in Nepal’s domestic bullion market, according to the Nepal Gold and Silver Dealers’ Association. The price of hallmark gold rose by Rs 4,700 per tola, reaching Rs 283,800 from Rs 279,100 recorded last Friday. Silver also registered a significant gain, increasing by Rs 145 per tola to Rs 4,325 from Rs 4,180. The latest revision reflects a sharp short-term rise in precious metal prices across the domestic market.
Finance minister targets Nepal’s removal from FATF grey list within two years
Finance Minister Swarnim Wagle has said the government aims to remove Nepal from the Financial Action Task Force (FATF) grey list within the next 18 to 24 months, describing the objective as one of its highest priorities. Speaking during deliberations on the Anti-Money Laundering Prevention (Third Amendment) Bill, 2026, in the House of Representatives, Wagle added that efforts are also underway to have Nepal removed from the European Union (EU) aviation safety blacklist. He clarified that money laundering cases cannot be filed without evidence of an underlying criminal offense, such as corruption or smuggling. The House later approved the proposal to move the bill forward for detailed consideration.
Finance Minister promises stronger capital expenditure, justifies education levy
Finance Minister Dr. Swarnim Wagle has pledged to reverse the long-standing slowdown in capital spending beginning next fiscal year, stating that structural reforms will improve budget implementation and strengthen revenue generation. While addressing the House of Representatives, he defended the proposed 3 percent equity fee on private school tuition, saying it would not affect the majority of students enrolled in public schools. Instead, the funds collected would be directed toward expanding educational opportunities for marginalized and economically disadvantaged communities. He also outlined several tax relief measures, including raising the annual tax-free income threshold to Rs 1 million and allowing a tax deduction of up to Rs 25,000 for private school expenses. According to Wagle, boosting domestic revenue remains essential for sustaining public services.
DoFE begins digitizing decades of foreign employment fraud records
The Department of Foreign Employment (DoFE) has initiated a large-scale campaign to retrieve, organize and digitize nearly 25 years of fraud investigation files linked to foreign employment cases. The effort, led by Director General Meera Acharya under the guidance of Labour Minister Ramji Yadav, seeks to improve transparency and strengthen case management. Officials have begun systematically collecting records dating back to 2000, many of which had remained scattered and poorly managed for years. Thousands of files have already been archived and arranged in chronological order, while digitization work is currently in progress. The department also plans to introduce a digital tracking system designed to accelerate investigations and improve services for victims of foreign employment fraud.
Auditor General’s report exposes growing fiscal irregularities and weak oversight
Minister for Law, Justice and Parliamentary Affairs Sobita Gautam presented the 63rd Annual Report of the Auditor General in the House of Representatives on behalf of Prime Minister Balendra Shah. Compiled under the leadership of Auditor General Toyam Raya, the report evaluates the financial activities of 5,526 public institutions that recorded transactions totaling approximately Rs 9.484 trillion during fiscal year 2024/25. It identifies fresh financial irregularities amounting to Rs 88.09 billion and notes that protests prevented 179 offices from submitting financial records, leaving Rs 147.89 billion in transactions unaudited. The cumulative value of unresolved irregularities has now reached Rs 755.17 billion, while public debt stands at Rs 2.674 trillion. The report also highlights sluggish economic performance and delays in the implementation of key national development projects.
Nepal’s petroleum imports outpace total export earnings
According to the Department of Customs, Nepal imported petroleum products worth Rs 297.79 billion from India during the first 11 months of fiscal year 2025/26, exceeding the country’s total merchandise exports of Rs 277.96 billion by nearly Rs 20 billion. Diesel accounted for the largest share of imports at Rs 152.67 billion, followed by petrol worth Rs 68.17 billion and aviation turbine fuel valued at Rs 17.49 billion. Meanwhile, LPG imports declined by Rs 5 billion to Rs 52.21 billion, reflecting lower demand for cooking gas as more households adopted electric stoves.
23rd National Paddy Day observed with emphasis on climate-smart farming
Nepal is celebrating the 23rd National Paddy Day and Transplanting Festival on Monday under the theme, “Climate-friendly technology, self-reliance in rice and prosperity.” A special ceremony at the National Agronomy Research Center in Khumaltar is recognizing individuals who have made significant contributions to rice cultivation and agricultural research. The Department of Agriculture estimates that around 2.7 million of Nepal’s 4.1 million farming households are engaged in paddy cultivation. Although average rice productivity has risen to 4.19 metric tons per hectare over the past five years, the country continues to face an annual production deficit of roughly 1 million metric tons, reinforcing the need for wider adoption of climate-resilient farming practices.
Agriculture minister leaves for Thailand to attend climate summit
Minister for Agriculture, Forest and Ecology Gita Chaudhary left for Bangkok, Thailand, on Sunday to participate in the Seventh Global Conference on Climate and SDG Synergies. She is scheduled to join a high-level discussion on the Paris Agreement and climate-SDG linkages on Monday. Organized jointly by UN DESA, the UNFCCC Secretariat and UN ESCAP, the conference will focus on climate action, sustainable development and implementation of the Paris Agreement. During the event, Minister Chaudhary is expected to present Nepal’s achievements in advancing the Sustainable Development Goals (SDGs), outline the country’s climate mitigation initiatives and highlight the unique challenges confronting mountainous nations.
Bird flu spreads across Kathmandu Valley through infected crows
The Department of Livestock Services has confirmed that bird flu is spreading throughout the Kathmandu Valley via infected crows. Director General Dr. Umesh Dahal explained that containing the disease in wild crows is considerably more difficult than in poultry because the birds move freely and can spread the virus across numerous locations, including the Central Zoo. He warned that infected crows may carry the virus for as long as 21 days and that their droppings can also contribute to transmission. Cases have now been detected across all three districts of the valley, while the disease has spread to 100 locations in 11 districts nationwide. Authorities have urged the public to remain vigilant as control measures continue.
Tourism entrepreneurs seek restoration of Nepalgunj–Pokhara flights and airfare reforms
Tourism entrepreneurs have called on the government to resume regular flights between Nepalgunj and Pokhara, saying the prolonged disruption has dealt a significant blow to tourism businesses in western Nepal. They also urged the Tourism Minister to abolish the dual airfare policy that charges foreign visitors higher fares. Responding to their concerns, Minister Badri Prasad Poudel said the government remains committed to strengthening the tourism sector through policy reforms, recognizing its vital contribution to foreign exchange earnings. He also emphasized the need to restructure the Nepal Tourism Board so it can better respond to evolving industry demands. During the meeting, tourism stakeholders from western Nepal outlined the region’s key opportunities and the challenges affecting its tourism potential.
Lumbini launches major plantation campaign to promote green economy
A province-wide tree plantation programme has been launched in Lumbini Province with the dual objective of environmental conservation and sustainable economic development. Led by the Ministry of Forest and Environment in coordination with forest offices and community organizations, the initiative aims to plant 2.5 million locally produced saplings across more than 60 hectares of land. Chief Minister Chetanarayan Acharya stressed that long-term care and protection are essential to ensure the success of the campaign. Officials said the programme is expected to generate green economic opportunities by expanding community forestry, agroforestry and eco-friendly enterprises. They added that income from fodder, fruits, medicinal herbs and tourism could strengthen rural livelihoods while improving climate resilience.
Karnali suspension bridge becomes emerging tourist destination in Sudurpaschim
A newly completed suspension bridge spanning the Karnali River at Daulatpur has rapidly gained popularity among domestic tourists. Connecting Tikapur Municipality in Kailali with Rajapur Municipality in Bardiya, the 482-metre bridge has attracted visitors seeking scenic views and relief from the summer heat, while also creating new opportunities for local photographers. The bridge has reduced the travel distance between the two municipalities from 24 kilometres to 15 kilometres and eliminated the need for risky boat crossings. Constructed at a cost of approximately Rs 157.3 million, the project was completed ahead of schedule and is expected to stimulate tourism and boost economic activity in the surrounding area.
Pokhara celebrates 21st Paddy Planting Festival with local and foreign visitors
The Pokhara Tourism Council organized the 21st Paddy Planting Festival in the Shishuwa area of Lekhnath, Kaski, drawing participation from both domestic and international tourists alongside local residents. The event showcased traditional rice transplantation activities, promoting Nepal’s agricultural heritage as a cultural tourism attraction. Pokhara Metropolitan City Mayor Dhan Raj Acharya also participated in the celebration. Organizers said the annual festival not only preserves traditional farming practices but also strengthens community-based tourism by showcasing local culture and customs.
New suspension bridge improves access along Maurice Herzog trekking trail
A 57-metre suspension bridge has been built over Humkhola in Annapurna Rural Municipality-4 of Myagdi, significantly improving safety along the Maurice Herzog trekking route to Annapurna Base Camp. Replacing an unsafe wooden crossing, the bridge has made travel easier for both trekkers and local residents, benefiting 549 households. According to officials, the construction project generated employment for 1,221 people. Funding came from the federal government, the local municipality, voluntary community contributions and support from non-governmental organizations. Authorities also announced plans to construct additional bridges along the trail, which offers panoramic Himalayan scenery and access to Panchakunda Lake as well as Annapurna Base Camp.
Commercial dairy farming expands across Baglung
Commercial dairy farming is gaining momentum in Baglung, with returning migrant workers and local youth increasingly investing in livestock businesses. Farmers such as Liladhar Sharma and Bikash Paudel have established successful dairy farms after returning from overseas employment, supported by government grants and technical assistance. Data from the Veterinary Hospital and Livestock Service Expert Center show that the district produces around 23,157 metric tons of milk annually, enough to meet local demand while supplying surplus milk to neighbouring districts. Milk is marketed through 15 cooperatives. Improved infrastructure, better pricing and stronger government support for livestock farming have encouraged more farmers to expand commercial dairy operations.
TU Teaching Hospital to restore health insurance services from June 29
Tribhuvan University (TU) Teaching Hospital will resume its health insurance services on June 29, 2026, after suspending the program on January 15 because of delayed reimbursements. Executive Director Dr. Subhash Prasad Acharya said the service will initially restart through the outpatient department (OPD) before gradually expanding to other units. Insurance tickets will be distributed between 7:00 a.m. and 11:00 a.m., and again from 1:00 p.m. to 2:30 p.m. The program had been halted after outstanding payments remained unpaid. However, the Health Insurance Board has now cleared the pending dues, allowing the hospital to resume a service that has been in operation since 2020.
Resunga Municipality honors outstanding entrepreneur with Rs 100,000 award
Resunga Municipality has presented its Best Entrepreneur Award to commercial vegetable farmer Win Bahadur Kunwar of Ward No. 10, along with a cash prize of Rs 100,000, under its Growth-Oriented Entrepreneurship and Employment Promotion Programme. Kunwar, who has been engaged in commercial vegetable farming for more than two decades, was selected from among 137 applicants following a four-stage evaluation process. He currently cultivates vegetables on 65 ropanis of land. In addition, nine other entrepreneurs each received Rs 60,000 in recognition of their achievements. Mayor Khildhwoj Panthi said the initiative is intended to encourage entrepreneurship, create local employment opportunities and inspire young people to establish businesses using local resources and skills.
Nepal Telecom launches auto-renew prepaid subscription packages
Nepal Telecom (NTC) has introduced a new range of prepaid subscription packages that renew automatically every month, provided users maintain sufficient account balance. The company has launched three 30-day plans: the Namaste Recurring 299 package offers 300 minutes of calls to all networks, 4 GB of data, 2 GB of night data and 20 SMS; the Namaste Recurring 499 package includes 500 minutes of calls, 8 GB of data, 4 GB of night data and 100 SMS; while the Namaste Recurring 799 package provides unlimited calls to all networks, 10 GB of data per day (300 GB monthly) and 300 SMS. Customers can also purchase additional data packs, including 1 GB for Rs 30, 2 GB for Rs 50 and 4 GB for Rs 99. The new plans can be activated by dialing *1415#.
Returnee migrant establishes thriving commercial farm in Parbat
After returning from employment in Korea and Saudi Arabia, Shivakumar Chhetri of Bihadi Rural Municipality-1 in Parbat has invested around Rs 6 million to establish a modern commercial farm in his hometown. Operating under the name SK Agricultural Farm, the enterprise spans 90 ropanis and combines vegetable cultivation, fruit orchards and livestock farming using modern irrigation systems and tunnel farming technology. The farm produces crops including cucumbers, potatoes, ginger, tomatoes and lemons, generating an annual turnover of approximately Rs 5 million while providing direct employment to five people. Chhetri also heads a farmers’ group that produces high-value cucumber seeds, earning millions of rupees each year. Despite facing difficulties in securing bank financing, he continues expanding his business and encourages young Nepalis to pursue agriculture as a viable career.
Gharpajhong distributes subsidized yaks and naks to support herders
Gharpajhong Rural Municipality in Mustang has provided yaks and naks to local farmers under its “Himalayan Yak-Nak Promotion” programme, offering a 50 percent subsidy to encourage traditional livestock farming. Under the cost-sharing arrangement, both the municipality and beneficiaries contributed Rs 750,000 each. One beneficiary, Pemba Gurung of Jomsom, purchased more than 56 yaks, naks and calves from Manang, investing additional personal funds beyond the subsidy amount. Officials said the initiative aims to preserve traditional Himalayan pastoral practices while protecting biodiversity. Farmers participating in the programme are prohibited from selling the livestock for five years. The animals have also been insured, with the government covering most of the insurance premium and compensation available in case of losses.
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