KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic developments reveal a contradictory transition in which technological modernization and institutional reform are advancing alongside persistent financial weakness and structural vulnerabilities. The continued fall of the NEPSE index for a fourth consecutive session, shrinking turnover, and broad-based sectoral losses indicate weak investor confidence despite ongoing regulatory initiatives.
At the same time, the government is pursuing a wide range of reforms, including mandatory detailed job descriptions for migrant workers, digitization of industrial services, a new strategy focused on tourism, information technology, health, finance, and other service sectors, and efforts to attract non-resident Nepali investment into the capital market.
Infrastructure indicators are comparatively more encouraging, with the Siddhababa Tunnel reaching 70 percent physical progress, a new NEA substation improving electricity supply for thousands of consumers, and electric vehicle registrations surpassing 63,000, making Nepal one of the world’s most EV-oriented car markets by import share.
However, the economy remains heavily dependent on imported energy, with petroleum imports exceeding Rs 238 billion, while agricultural distress, delayed dairy payments, and unresolved cooperative liabilities expose weaknesses in market regulation and financial governance. The overall picture is one of ambitious reform constrained by implementation capacity, external dependence, and uneven institutional performance.
NEPSE falls 16.29 points as turnover slips to Rs 3.38 billion
The Nepal Stock Exchange (NEPSE) continued its downward trend on Thursday, dropping 16.29 points, or 0.60 percent, to close at 2,672.58 points, marking the fourth consecutive day of losses. Market turnover also declined to Rs 3.381 billion from Rs 4.029 billion recorded on Wednesday. A total of 7.55 million shares of 337 companies were traded through 44,651 transactions. Share prices of 59 companies increased, while 206 declined and 11 remained unchanged. All 13 sectoral indices ended in negative territory, with the Hydropower and Development Bank sectors posting the steepest declines of 1.20 percent and 1.12 percent, respectively.
Gold rises to Rs 284,000 per tola, silver declines
Gold prices increased in the domestic market on Thursday, while silver prices moved lower. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold rose by Rs 800 per tola to Rs 284,000, compared with Rs 283,200 on Wednesday. Silver fell by Rs 10 per tola and was traded at Rs 4,310, down from Rs 4,320 the previous day.
Finance minister forms committee to negotiate with protesting microfinance borrowers
Finance Minister Swarnim Wagle has formed a high-level negotiation committee to begin formal talks with protesting microfinance borrowers. The committee is headed by Finance Ministry Joint Secretary Mahesh Acharya and includes representatives from the Ministry of Law, Justice and Parliamentary Affairs, the Ministry of Home Affairs, Nepal Rastra Bank, and the Ministry of Finance.
Petroleum imports through Motihari-Amlekhgunj exceed Rs 238 billion
Nepal imported petroleum products worth more than Rs 238 billion during fiscal year 2025/26 through the Motihari-Amlekhgunj Petroleum Pipeline and related overland routes, generating over Rs 80 billion in government revenue. According to data from the Madhesh Province Regional Depot in Amlekhgunj and the Birgunj Customs Office, imports included more than 1.1 million kiloliters of diesel, 475,342 kiloliters of petrol, 7,500 kiloliters of kerosene, 285.9 million kilograms of LPG, and 188,000 kiloliters of aviation turbine fuel.
Detailed job descriptions become mandatory for foreign-bound Nepali workers
The Ministry of Labour, Employment and Social Security has made detailed job descriptions compulsory for Nepali workers seeking foreign employment, effective Thursday. The decision, approved on July 28, is intended to strengthen verification of agreements with destination countries, including service conditions, salaries, and additional employee benefits, with the aim of improving transparency and protection for migrant workers.
Department of Industry shifts most services online
The Department of Industry has digitized most of its administrative and regulatory services, removing the requirement for physical visits in many cases. Company representatives can now complete registrations, renewals, amendments, transfers, foreign investment approvals, business visa recommendations, and annual progress reporting through electronic platforms.
NEA forms committees for tariff review and procurement investigation
The Nepal Electricity Authority (NEA) board has formed a committee led by board member Anshukiran Shahi to review electricity tariff structures within 15 days, with the goal of encouraging domestic electricity consumption and supporting industrial production. A separate committee headed by board member Shambhu Kesi has also been established to investigate past procurement processes and project-related complaints, and is expected to submit its report within two months.
New services trade strategy targets tourism, IT, health and finance
The government’s National Integrated Strategy on Trade in Services, approved on July 15, 2026, prioritizes tourism, information technology, energy, education, health, finance, and construction. Services account for 62 percent of Nepal’s gross domestic product but only 21.44 percent of total foreign trade. The services trade deficit reached Rs 90.94 billion in 2024/25, driven largely by a large education-related deficit, with imports far exceeding exports. Analysts say successful implementation will require dedicated financing, independent monitoring, and measures to address the outflow of skilled human resources.
NEA brings new substation into operation in Saptari
The Nepal Electricity Authority has started operation of a newly built 33/11 kV, 6/8 MVA substation in Khadak Municipality-Panera, Saptari. Constructed at a cost of about Rs 120 million along with a 10-kilometer transmission line, the project is expected to solve low-voltage and power-tripping problems affecting around 15,000 consumers in Khadak and Surunga municipalities.
Siddhababa Tunnel project reaches 70 percent physical progress
The Siddhababa Tunnel Project on the Butwal-Tansen section of the Siddhartha Highway has achieved 70 percent physical progress and 63.5 percent financial progress. Engineers expect the tunnel to open for vehicular movement by mid-November. The main 1,089-meter tunnel and three bypass tunnels have already achieved breakthrough, while installation of lighting, ventilation, and fire-fighting systems is awaiting materials from China delayed by weather conditions.
Transport department clears driving license printing backlog
The Department of Transport Management has announced that printing of all driving licenses pending as of mid-July 2026 has been completed. A total of 2,747,253 license cards have been dispatched to regional transport offices for postal delivery. Licenses with less than one year of remaining validity were excluded and must be renewed for a new 10-year term at local transport offices.
Nepal reports over 63,000 electric vehicles nationwide
The National Transport Policy 2026, released by the Ministry of Physical Infrastructure and Transport, states that electric vehicle registrations in Nepal reached 63,280 by the end of fiscal year 2025/26. Electric vehicles now account for more than 70 percent of newly imported private cars, making Nepal the world’s second-largest market for electric vehicle sales by market share after Norway. However, the policy notes that charging infrastructure, battery management systems, and safety standards are still in the early stages of development across the country’s transport network.
Institute of Foreign Affairs hosts BIMSTEC policy dialogue
The Institute of Foreign Affairs organized a policy dialogue titled “BIMSTEC at 30: Promoting People-to-People Contact to Advance Regional Cooperation, Integration and Shared Prosperity.” BIMSTEC Secretary General Indra Mani Pandey highlighted the organization’s achievements and Nepal’s contributions to regional cooperation. Officials from the Institute and the Ministry of Foreign Affairs emphasized the importance of strengthening people-to-people connectivity. Diplomats, experts, and students also participated in the event.
Banana growers in Kailali and Kanchanpur seek tighter market regulation
Banana Producers Associations in Kailali and Kanchanpur have called on the government to strengthen market monitoring to prevent excessive retail price increases and artificial shortages following the ban on banana and sapling imports from India. Current farmgate prices range from Rs 60 to Rs 65 per dozen. The associations have also issued a recommended pricing schedule for Sudurpashchim Province’s 2,460 hectares of banana cultivation, setting rates at Rs 55–65 per dozen for August-September, Rs 45–50 for October-November, and Rs 30–35 for December-January.
SEBON discusses foreign investment with NRNA representatives
The Securities Board of Nepal (SEBON) held discussions with representatives of non-resident Nepalis on implementing legal provisions that would allow NRNs to participate in Nepal’s secondary securities market under the capital market policies for fiscal year 2026/27. Participants also requested regulatory facilitation for joint-investment companies to issue shares, bonds, and debentures as a way to channel diaspora investment into infrastructure and other productive sectors.
Payment delays leave 200 dairy farmers in financial difficulty in Damak
About 200 dairy farmers in Damak-3 have been affected by prolonged payment delays from the Hanshe Dumse Dairy and Livestock Production and Collection Cooperative. Initial verified dues amount to Rs 2.2 million owed to 60 farmers. The affected farmers have filed complaints with the Commission for the Investigation of Abuse of Authority (CIAA) in Itahari, seeking legal action against the cooperative’s executive committee. Cooperative management has said it plans to sell institutional land and other assets to clear the outstanding payments.
Worldlink begins clearing electricity pole rental dues
Worldlink Communications has started paying outstanding electricity pole rental charges to the Nepal Electricity Authority (NEA) through the Bagmati Province Distribution and Consumer Services Directorate. The company adjusted earlier double payments based on joint verification records for fiscal year 2024/25 and has also made payments for fiscal year 2025/26 based on self-declared assessments.
Hongshi Shivam Cement records strong sales growth
Hongshi Shivam Cement reported sales of Rs 10.31 billion during the first nine months of the last fiscal year, representing an 18 percent increase from the same period a year earlier. The Nawalparasi-based company benefited from strong clinker demand and increased its operating margin to 31 percent. It also improved its financial position by reducing long-term debt, lifting its debt service coverage ratio to 19 times. The company currently holds about Rs 32 billion in liquidity and has Rs 15 billion in pending dividends awaiting regulatory approval. It is seeking ratings for Rs 6 billion in short-term credit facilities.
Sun Nepal Life founder shares to become tradable in August
Sun Nepal Life Insurance Company has announced that the lock-in period for 37.7 million founder and employee shares will expire on August 30. The shares include 36,979,555 founder shares and 792,469 employee shares out of the company’s total 52,827,936 registered shares.
Committee refunds savings to 56 Shiva Shikhar victims
The Problematic Cooperative Management Committee has returned savings to 56 victims of Shiva Shikhar Cooperative, increasing the total number of reimbursed depositors to around 1,400. According to the committee, the payments are being made through ongoing debt recovery and asset management efforts under existing legal procedures, with priority currently given to small depositors.
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