KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest developments reflect a mixed economic and policy landscape, where fiscal discipline, agricultural modernization and institutional reform are advancing alongside persistent market uncertainty and structural challenges.
While the government is projecting confidence in its new budget, promoting food self-sufficiency through climate-smart agriculture, digital governance and capital market reforms, investor sentiment remains weak as the stock market extends its losses amid concerns over proposed policy changes.
At the same time, initiatives ranging from modernizing irrigation systems and supporting local agricultural enterprises to strengthening aviation safety and public accountability indicate a continued focus on long-term development. However, sustaining these efforts will depend on effective policy implementation, improved infrastructure, stronger regulatory institutions and the restoration of confidence among investors and businesses.
NEPSE extends losses, falls 16.54 points on Monday
The Nepal Stock Exchange (NEPSE) continued its downward trajectory on Monday, shedding 16.54 points to settle at 2,632.96. Market turnover also weakened, with transactions totaling Rs 2.67 billion from the trading of more than 7.6 million shares of 351 listed companies. Market sentiment remained broadly negative as share prices of 240 companies declined, while only 29 advanced and six remained unchanged. All 13 sectoral indices ended in the red, with the Non-Life Insurance sector recording the largest drop of 1.39 percent. Tushar Pikhuwakhola Hydropower emerged as the day’s top gainer with a 14.99 percent rise, whereas Swabhimaan Laghubitta suffered the biggest decline, falling 5.83 percent.
Gold and silver prices edge lower in domestic market
Prices of precious metals declined in Nepal’s domestic market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold fell by Rs 1,400 per tola, dropping from Rs 283,800 on Sunday to Rs 282,400. Silver also registered a modest decline, decreasing by Rs 15 per tola to Rs 4,310 from the previous day’s Rs 4,325. The latest adjustment reflects a slight correction in domestic bullion prices.
Finance Minister describes new budget as Nepal’s most fiscally disciplined in 12 years
Finance Minister Dr. Swarnim Wagle has defended the government’s new budget, describing it as Nepal’s most fiscally disciplined financial plan in more than a decade. Addressing Monday’s National Assembly deliberations on the Appropriation Bill, 2026, Wagle said the budget represents only 28.5 percent of the country’s projected economy, making it proportionately the smallest in the past 12 years. He rejected concerns over implementation, arguing that the government has streamlined budget execution by delegating greater authority to line ministries. Wagle also defended the introduction of new taxes on education, healthcare and electricity, saying they were designed to serve the broader public interest. The National Assembly later endorsed the proposal to proceed with detailed consideration of the Appropriation Bill, 2026.
New SEBON chair pledges stronger investor protection
Newly appointed Chairman of the Nepal Securities Board (SEBON), Gopal Prasad Bhatta, took the oath of office and secrecy before Finance Minister Dr. Swarnim Wagle on Monday. Speaking at the swearing-in ceremony held at the Ministry of Finance, Wagle urged the new chairman to safeguard investors’ interests, strengthen public confidence in the capital market and implement reforms within a defined timeframe. He also assured Bhatta of the government’s full cooperation while reaffirming that SEBON would operate independently without political interference. In response, Bhatta pledged to promote transparency, protect investors and pursue reforms aimed at building a more efficient and credible securities market.
NA members push for food self-sufficiency policies
National Assembly (NA) members have called on the government to place greater emphasis on agriculture by adopting policies aimed at making Nepal self-sufficient in food production. During Monday’s session, lawmakers urged the government to introduce targeted programmes for poor, marginalized and landless communities while strengthening food and seed security. They also raised issues related to transparency in university appointments, expansion of health insurance, access to safe drinking water, caste-based discrimination and the need to empower provincial governments. Speakers stressed that agriculture must remain a national priority to ensure long-term food security and sustainable economic development.
Proposed one percent share transfer fee triggers investor concerns
A government proposal to impose a one percent transfer fee on share transactions exceeding Rs 2.5 million has drawn strong criticism from investors, with many linking the announcement to Monday’s decline in the NEPSE index. Under the draft provision, stockbrokers would be responsible for collecting the fee and depositing it into the Federal Consolidated Fund. Following widespread objections from market participants, government officials clarified that the proposal remains at the consultation stage and will be revised after incorporating feedback from stakeholders before the bill is finalized.
Nepal Police help recover over Rs 869 million in state revenue
Nepal Police facilitated the collection of more than Rs 869.81 million in government revenue through law enforcement operations carried out between mid-May and mid-June 2026. Police headquarters said the amount was recovered through coordinated action against economic crimes, seizures and enforcement of court orders before being deposited into the state treasury. Customs evasion and smuggling accounted for the largest share of recoveries at Rs 413.73 million, followed by Rs 234.44 million collected through the execution of court verdicts and fines, and Rs 120.91 million from traffic-related penalties. Additional revenue was generated from confiscated illegal cash, gold and silver, counterfeit currency, timber, riverbed materials, wildlife trafficking and Hundi-related offences.
Auditor General seeks greater autonomy to strengthen public audits
Auditor General Toyam Raya has called for enhanced financial and institutional autonomy for the Office of the Auditor General (OAG), saying greater independence is essential to improve the quality of public sector audits. Speaking at an event marking the OAG’s 68th anniversary on Monday, Raya highlighted the growing challenges facing fiscal oversight and stressed the importance of strengthening the institution’s capacity. He noted that advances in information technology have made auditing more systematic, transparent and efficient, but said further investment in digital infrastructure and resources is still required. Raya also said the OAG has reorganized its internal processes to improve audit quality and meet rising public expectations for accountability and transparency.
National Paddy Day highlights agricultural technology and mechanization
Nepal observed the 23rd National Paddy Day and Rice Planting Festival 2026 in Khumaltar, Lalitpur, with a focus on modern farming technologies, including drone-assisted fertilizer application and mechanized rice transplantation. Opening the event, Agriculture Committee Coordinator Ashok Kumar Chaudhary emphasized the importance of fair support prices, expanded irrigation, agricultural technology and crop insurance in achieving food self-reliance. Agricultural experts and government officials also underscored the need for climate-resilient seeds, mechanization and structural reforms to enhance rice production. The programme concluded with awards honoring outstanding farmers, researchers, institutions and journalists for their contributions to the country’s rice sector.
Agriculture minister calls for climate-smart farming to achieve rice self-reliance
Minister for Agriculture, Forests and Environment Geeta Chaudhary has underscored the importance of adopting modern technology, strengthening research, and enhancing coordination among stakeholders to build self-reliance in rice production while addressing the impacts of climate change. In her message on the occasion of the 23rd National Paddy Day and Paddy Plantation Festival 2083, she said the theme, “Climate-Friendly Technology, Self-Reliance in Rice, and Prosperity,” reflects Nepal’s current agricultural priorities. Chaudhary described rice as both the country’s staple food and an integral part of its cultural heritage. She also stressed the need to conserve indigenous and wild rice varieties, expand cultivation, improve irrigation facilities, ensure fair prices for farmers, and reduce reliance on rice imports by increasing domestic productivity.
Industry ministry launches live business registration dashboard
The Ministry of Industry, Commerce and Supplies has introduced a digital dashboard that provides real-time information on company, industry and firm registrations across the country. Launched under the leadership of Minister Gauri Kumari Yadav, the platform will publish daily updates on registration data. According to the ministry, the dashboard is intended to improve public access to accurate information on registered and operating businesses, enhance transparency, and keep citizens informed about the ministry’s services and ongoing activities.
Govt unable to immediately fund aviation sector, says tourism minister
Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel has said the government is not in a position to make immediate financial investments in Nepal’s aviation sector. Speaking at an interaction programme on aviation stability and safety on Monday, he said the government’s current focus is on strengthening cooperation with stakeholders rather than providing direct financial support. Paudel noted that aviation remains crucial for tourism and overall economic growth and added that the government is working to improve policy, legal and safety standards to facilitate the removal of the European Union’s airspace ban on Nepali airlines.
German ambassador visits EcoHimal centre promoting sustainable farming
German Ambassador Udo Volz, accompanied by representatives of the German Development Cooperation (GDC), visited EcoHimal Nepal’s Agroforestry Resource Center in Patlekhet, Kavre, to observe initiatives supporting sustainable agriculture and climate resilience. The delegation was introduced to the centre’s Gurukul-inspired model, which integrates indigenous knowledge with sustainable farming practices to improve farmers’ resilience. Active in Nepal’s hill and mountain regions since 2009, EcoHimal Nepal promotes community-based development through practical and environmentally sustainable solutions with support from several German development partners.
Australian ambassador joins Nepal’s paddy planting festival
Australian Ambassador to Nepal Simon Ernst and his wife, Simone Murphy, took part in Nepal’s annual Paddy Planting Festival, marking the start of the monsoon rice cultivation season. The couple participated in traditional rice planting activities and sampled Newari cuisine during the celebration. Ambassador Ernst also extended his best wishes to farmers across the country for a productive planting season. Their participation highlighted cultural exchange and appreciation for Nepal’s rich agricultural traditions.
Koshi Province appoints Anil Thapa to planning commission
The Koshi Province Cabinet has appointed Anil Thapa of Barahachhetra Municipality-2, Sunsari, as a member of the Koshi Province Planning Commission. The decision was made during a Cabinet meeting on Monday. Following the appointment, Chief Minister Hikmat Kumar Karki administered the oath of office and secrecy to Thapa. The provincial government said the appointment is expected to strengthen the commission’s planning capacity and support the effective implementation of development programmes.
Mahashila Rural Municipality records over Rs 80 million in agricultural sales
Mahashila Rural Municipality in Parbat has earned more than Rs 80 million from the sale of vegetables and livestock over the past 20 months. According to municipal officials, 883 farmers from six wards generated the revenue by supplying vegetables, goats, indigenous chickens, and milk to markets in Kushma, Syangja, and Pokhara. To encourage production, the municipality has introduced subsidies of Rs 5 per kilogram for vegetables, Rs 25 per kilogram for meat, and Rs 10 per liter for milk. It has also provided weighing scales and covered 50 percent of the cost of livestock sheds. Farmers involved in the program are reportedly earning annual incomes ranging from Rs 200,000 to Rs 1 million.
Canal encroachment disrupts irrigation system in Bharatpur
Encroachment on irrigation canals and rapid urban expansion have affected water supply to nearly 140,000 square meters of farmland served by the Narayani Lift Irrigation System in Bharatpur. Officials said that about 20 kilometers of branch canals have been converted into roads, reducing irrigation capacity and increasing the risk of monsoon flooding due to blocked drainage channels. The irrigation system, established in 1983 with support from the Asian Development Bank, serves several wards of Bharatpur Metropolitan City. Authorities are now upgrading the system by installing four new pumps through a provincial investment of Rs 200 million, which is expected to expand irrigation coverage to approximately 70 million square meters.
Cargo transport halted at Rasuwagadhi border bridge for safety inspection
Freight movement across the Miteri Bridge at the Rasuwagadhi border point has been suspended for two days to facilitate a technical safety assessment. The Bailey bridge was installed after the original structure was swept away by flooding in the Lhende Khola last year. Chief District Officer Rajesh Panthi said engineers are evaluating whether the temporary bridge can safely accommodate cargo traffic during the approaching monsoon. He clarified that local residents and Kailash Mansarovar pilgrims will continue to use the crossing without disruption. Cargo transportation between Nepal and Kerung will resume once the bridge receives safety clearance.
Pig and fish farming provides steady income for Kanchanpur farmer
Tej Bahadur Chaudhary of Shuklaphanta Municipality-8 has built a profitable pig and fish farming enterprise while continuing his full-time job as an accountant at Siddhanath Secondary School. His agricultural business generates more than Rs 700,000 annually. Having started pig farming five years ago, Chaudhary sold 60 piglets and three breeding sows this year and currently maintains a stock of 15 breeding pigs. Fish farming contributes an additional Rs 200,000 to his yearly earnings. He said the income has enabled him to build a home, finance his children’s education, and meet household expenses, while his wife oversees the farm during the day.
Tehrathum recognizes six exemplary paddy farmers on National Paddy Day
The Agriculture Knowledge Centre in Tehrathum honored six distinguished paddy farmers during celebrations marking the 23rd National Paddy Day. At a special ceremony held in Khalde, Myanglung Municipality-10, each recipient was presented with a certificate of appreciation and a cash award of Rs 4,000. The awardees—Chandra Bahadur Limbu, Prem Bahadur Karki, Rudra Bahadur Karki, Rajendra Kumar Dangi, Devendra Khawas, and Dambar Bahadur Karki—represented all six local levels of the district. Tehrathum has approximately 66.15 million square meters of land suitable for paddy cultivation, with rice transplanted on around 21.88 million square meters by Asar 15 this year. While the indigenous Bekkuti variety remains the most widely cultivated, improved varieties such as Khumal-4 and Khumal-10 are increasingly being adopted by local farmers.
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