KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest economic developments in Nepal present a mixed picture of cautious reform, improving sectoral momentum, and persistent structural weaknesses. Financial markets remained subdued, with the NEPSE slipping and turnover falling sharply, while gold and silver prices also declined, reflecting weaker short-term investor sentiment.
At the same time, the government signaled a more interventionist economic approach through revised civil service salaries, tighter regulation of electricity VAT, stricter oversight of migrant worker recruitment, and enhanced market monitoring. Engagement between the Finance Minister and industrialists, along with SEBON’s planned ESG framework and green bond initiatives, indicates an effort to attract investment and modernize the capital market.
Productive sectors showed encouraging trends, including strong progress in paddy plantation, advancement of the Madhya Chameliya hydropower project, and robust financial performance and expansion plans at Norvic Hospital. However, chronic implementation problems remain evident, particularly in the decade-long delay of the Rasuwagadhi customs checkpoint and the freezing of over Rs 1.4 billion in Jumla’s unspent budget. Overall, the developments suggest an economy attempting to balance growth, regulation, and sustainability, but still constrained by weak execution capacity and institutional inefficiencies.
NEPSE slips 4.64 points as turnover drops to Rs 4.43 billion
The Nepal Stock Exchange (NEPSE) declined by 4.64 points, or 0.17 percent, on Tuesday to close at 2,696.67. Daily turnover also decreased to Rs 4.427 billion from Rs 6.08 billion recorded in the previous session. A total of 10,421,863 shares of 342 companies changed hands through 55,580 transactions. Share prices of 96 companies advanced, 166 declined, and 13 remained unchanged. Four sectoral indices posted gains, while nine ended lower. Central Finance Company recorded the highest turnover at Rs 271.4 million. Everest Color was the top performer, rising 15 percent, whereas Kutheli Bukhari Small Hydropower registered the sharpest decline, falling 6.07 percent.
Gold falls to Rs 284,200 per tola; silver drops to Rs 4,310
Gold prices in Nepal’s domestic market declined by Rs 4,300 per tola (11.66 grams) on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold fell to Rs 284,200 per tola from Rs 288,500 on Monday. Silver prices also decreased, dropping by Rs 135 per tola to Rs 4,310 from the previous day’s Rs 4,445.
Finance minister holds talks with industrialists on budget implementation
Finance Minister Swarnim Wagle met leading industrialists from Nepal’s manufacturing sector at the Ministry of Finance on Tuesday afternoon to discuss implementation of the national budget and other pressing industrial concerns. About three dozen industrialists participated in the meeting, which focused on improving the domestic industrial climate, encouraging capital investment, and gathering direct feedback from the private sector. Finance Secretary Ghanashyam Upadhyay and Industry Secretary Narayan Prasad Dawadi were also present during the discussions.
Finance Ministry publishes revised pay scale for civil servants
The Ministry of Finance has issued a revised salary structure for civil service employees, effective from July 17. Under the new scale, the chief secretary will receive a starting monthly salary of Rs 84,932, rising to a maximum of Rs 90,594 through two grade increments of Rs 2,831 each. Gazetted special-class officers will earn between Rs 79,290 and Rs 84,576 per month, while first-class and second-class gazetted officers will start at Rs 62,466 and Rs 53,611, respectively. Separate salary categories have also been maintained for drivers of heavy and light vehicles.
Japan and Nepal sign ¥410 million scholarship grant agreement
The governments of Japan and Nepal signed a grant agreement worth JPY 410 million, approximately Rs 390 million, on Tuesday to support scholarships for young government officials under the Human Resource Development Scholarship program. The agreement was signed by Japanese Ambassador Maeda Toru and Finance Secretary Ghanshyam Upadhyaya in the presence of Finance Minister Swarnim Wagle and Japan International Cooperation Agency President Akihiko Tanaka. The funding will support master’s and doctoral studies in Japan with the objective of strengthening public administration and deepening bilateral cooperation.
Industry minister inspects gas bottling plants over shortage complaints
Minister for Industry, Commerce and Supplies Gauri Kumari Yadav carried out an unannounced inspection of Surya Gas Industry and Sagarmatha Gas Industry in Nala, Kavrepalanchowk, on Tuesday following public complaints about shortages of cooking gas. Operators informed the minister that overall distribution remains similar to previous periods but is under pressure due to increased consumer stockpiling. The minister instructed companies to prioritize supplies for household consumers over commercial distribution.
Applications invited for vacant NEPSE chief executive post
The Nepal Stock Exchange (NEPSE) has opened applications through open competition to fill the vacant position of chief executive officer. The Ministry of Finance formed a three-member selection committee on Monday under the leadership of Joint Secretary Mahesh Acharya to oversee the appointment process. A public notice published in Gorkhapatra on Tuesday gives applicants 15 days to submit their profiles. The post became vacant after former CEO Chudamani Chapagain resigned on July 6 before completing his term. Chapagain had been appointed on April 1, 2025.
Proposed centralization of CSR funds faces criticism from private sector
A government proposal requiring companies to deposit Corporate Social Responsibility (CSR) funds into a state-managed fund has drawn strong criticism from business leaders and experts. The draft amendment to company law would replace direct corporate spending on social initiatives with a government-administered CSR Fund. Critics argue that the measure would function as an indirect tax, reduce corporate autonomy, and weaken companies’ direct involvement with local communities. They have urged the government to reconsider the proposal.
IRD says VAT applies only to electricity consumed after July 17
The Inland Revenue Department (IRD) has clarified that Value Added Tax (VAT) on electricity services applies only to electricity consumed from July 17, 2026 onward. The clarification came after complaints that the Nepal Electricity Authority had included VAT in July bills covering electricity consumed in June. According to the department, electricity used up to July 16 remains exempt from VAT under existing law, while consumption after the new provision took effect, including minimum charges and demand fees, will be subject to the tax.
Nepali Embassy in Malaysia tightens verification of worker demand letters
The Embassy of Nepal in Malaysia has introduced stricter verification procedures for demand letters related to the recruitment of Nepali workers. Employers must now submit verified payslips, bank records of salary payments, proof of weekly holidays, accommodation documents, and evidence of service fee payments to recruitment agencies in Nepal. The initiative, led by Counselor Krishna Prasad Bhusal, aims to address exploitation affecting an estimated 75,000 Nepali security guards and cleaning workers. Common problems include delayed wages, 12-hour work shifts without adequate overtime compensation, and illegal retention of passports by employers, despite Malaysia’s official minimum wage of MYR 1,700 introduced in February 2025.
NTB launches upgraded tender portal and asks firms to register again
The Nepal Tourism Board (NTB) has upgraded its online tender portal and requested all companies wishing to participate in its international events to register through the new system. The requirement applies both to new applicants and to companies that were previously registered. Eligible firms can complete registration through the upgraded portal at tenders.ntb.gov.np. The NTB said the portal is intended for authorized companies registered in Nepal to participate in official tourism events, promotional activities, and other strategic programs organized by the board.
Paddy plantation reaches 85.72 percent across the country
The Department of Agriculture reported that paddy plantation has been completed on 85.72 percent of the country’s cultivable land as of July 27. Plantation has been carried out on 1,174,392.48 hectares out of a total 1,370,062 hectares. Sudurpashchim Province recorded the highest progress at 97.93 percent, followed by Lumbini and Karnali at 88 percent, Bagmati at 87 percent, Koshi at 86 percent, Gandaki at 80 percent, and Madhesh with the lowest coverage at 77 percent.
Rasuwagadhi customs checkpoint remains 65 percent complete after nearly a decade
The Rasuwagadhi Integrated Customs Checkpoint on Nepal’s northern border has reached only 65 percent completion almost 10 years after construction began, despite an original target of three years. Officials have blamed contractor negligence, labor shortages, difficult terrain, and natural disasters for the prolonged delay. Authorities have warned that the contract could be terminated if the latest deadline is not met. Once finished, the facility is expected to bring customs, immigration, quarantine, security agencies, and banking services together in a single complex to facilitate cross-border trade.
28.3 MW Madhya Chameliya Hydropower Project advances after environmental review
The 28.3 MW Madhya Chameliya Hydropower Project in Darchula is moving ahead after the government initiated a supplementary environmental impact assessment following revisions to the project design. Developed by Darchula Power Company, the run-of-river project received its generation license in March 2025 and achieved financial closure in June 2025. The project is estimated to cost Rs 6.23 billion and is expected to be completed within three years. Electricity generated by the project will be connected to the Nepal Electricity Authority’s Balach Substation.
Nine commercial firms inspected in Kathmandu
The Department of Commerce, Supplies and Consumer Protection conducted inspections of nine commercial firms in Kathmandu on Monday in the presence of consumer rights activists and local stakeholders. The businesses were issued corrective directives as part of intensified market monitoring aimed at preventing the unauthorized sale of government-restricted goods.
Karnali waives income tax on agricultural earnings up to Rs 2.5 million
The Karnali Province government has introduced significant tax relief through the Karnali Province Economic Act, 2026. Farmers earning up to Rs 2.5 million annually will be exempt from income tax, while earnings between Rs 2.5 million and Rs 5 million will be taxed at 1 percent. Higher-income categories will face additional rates under the new structure. The law also introduces an amnesty scheme that waives penalties on long-outstanding vehicle taxes until June 14, 2027, provided taxpayers clear dues for the previous three years. In addition, property transfer taxes related to the partition of ancestral property have been reduced from 1.5 percent to 0.2 percent for estates valued up to Rs 3 million.
Department warns businesses against sale of prohibited goods
The Department of Commerce, Supplies and Consumer Protection has cautioned businesses against selling or distributing banned goods. It reminded traders that violations of the Import and Export (Control) Act and the Consumer Protection Act could lead to legal action. The department said it has intensified market monitoring and urged importers and retailers to comply with existing regulations. Nine businesses in Kathmandu were inspected on Monday, and corrective measures were recommended where necessary.
More than Rs 1 billion in Jumla budget remains unspent
The Office of the Comptroller and Auditor General in Jumla has reported that Rs 1.437 billion in unspent federal budget allocations was frozen and returned to the federal treasury in fiscal year 2025/26. Of the Rs 7.648 billion allocated to around four dozen thematic offices, total expenditure reached Rs 6.211 billion, or 81.21 percent. Capital spending remained weak at Rs 1.077 billion, representing only 51.72 percent of the allocated capital budget of Rs 2.082 billion. More than Rs 1 billion in capital funds remained unused due to public protests, seasonal holidays, winter breaks, and parliamentary elections.
SEBON plans ESG framework and green bonds for capital market
The Securities Board of Nepal (SEBON) has announced plans to introduce an Environmental, Social, and Governance (ESG) framework and directive for listed companies as part of its policy and program for fiscal year 2026/27. The initiative is intended to support sustainable development, attract international institutional investors, and promote green finance in Nepal’s capital market. The framework will include environmental reporting, social impact indicators, governance standards, and climate risk disclosures. SEBON also plans to facilitate the issuance of green bonds and establish sustainable finance funds.
Norvic Hospital records Rs 2.04 billion revenue in nine months
Norvic International Hospital generated Rs 2.04 billion in revenue during the first nine months of the previous fiscal year, supported by growth in both outpatient and inpatient services. Outpatient visits reached 127,473, while inpatient admissions stood at 6,594. The hospital reported an operating margin of 27 percent and internal cash reserves of Rs 471 million. An equity injection of Rs 194.4 million and early repayment of Rs 131 million in debt improved its financial indicators, including an interest coverage ratio of 10.90 times and a gearing ratio of 1.17. Norvic is also nearing completion of a Rs 3.32 billion expansion project that will increase bed capacity from 116 to 275, with commercial operations expected to begin in 2027.
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