KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Banks hesitant to invest in the energy sector—soft towards foreign companies, tough on Nepalis
Approximately 3,500 MW of electricity is currently connected to Nepal’s national transmission system, with around 2,700 MW of this electricity being generated by private sector projects.
Looking at ongoing constructions, projects with a combined capacity of around 4,500 MW are under development, over 80% of which are funded by the private sector.
The involvement of the private sector in energy development began in 2050 BS with the Power Purchase Agreement (PPA) for the Khimti Hydropower Project. Since then, the private sector has strengthened significantly in Nepal’s energy sector, transforming the country into a net energy exporter.
According to statistics from the Nepal Electricity Authority, Nepal exported electricity worth approximately Rs 17 billion to India in the fiscal year 2080/81. Additionally, Bangladesh has begun purchasing electricity from Nepal.
Budget spending bodies deemed ‘extra-budgetary,’ paving the way for allocation impacts
The current government, led by Prime Minister KP Sharma Oli, has recommended and successfully had five ordinances issued by President Ram Chandra Paudel. These ordinances, including one to amend various Nepal Acts, were collectively certified under Article 114(1) of Nepal’s Constitution.
Among the certified ordinances, four were published in the official gazette on Poush 29.
SEBON introduces regulations for SMEs to issue IPOs
The Securities and Exchange Board of Nepal (SEBON) has issued the Securities Issuance and Transaction Regulations for Small and Medium Enterprises, 2025, allowing companies with a capital of up to Rs 250 million to issue ordinary shares (IPOs) to the general public.
The new regulations will come into effect starting Thursday, confirmed SEBON spokesperson Niranjay Ghimire.
He added that provisions have been made to establish a separate transaction channel for small companies issuing IPOs.
Real estate transactions increased in Poush, with the highest activity in Morang
In the month of Poush of the current fiscal year, real estate transactions saw an increase compared to Mangsir. According to the Department of Land Management and Archive, the number of property deed registrations rose by 4,777 compared to Mangsir.
A total of 48,156 property deeds were registered across the country in Poush, generating Rs 1.60 billion in capital gains tax and Rs 4.25 billion in revenue for the government.
Construction entrepreneurs announce phased protest over unmet demands
The Federation of Contractors’ Associations of Nepal has announced a phased protest, citing the government’s failure to address its demands.
The federation plans to submit a memorandum to the Prime Minister, relevant ministers, and the provincial Chief Minister’s Office by Magh 15, giving an ultimatum for the resolution of its concerns.
If the demands remain unaddressed by Magh 15, the federation has outlined a series of protests, starting with a sit-in at Maitighar on Magh 18, followed by another sit-in at the Prime Minister’s residence in Baluwatar on Magh 20.
From Magh 21, they plan to block the eastern and western border crossings entering the capital. If the government still does not meet their demands, the federation has warned that all types of construction work, including national pride projects, will come to a halt, and the protest will intensify.
Central bank tightens loan disbursement rules for cooperatives
Following the issuance of a new law regulating cooperatives, Nepal Rastra Bank has introduced a draft directive to enhance transparency and balance in cooperative financial activities.
The draft, aimed at managing the savings and loans of cooperatives, was made public on Monday.
Challenges in implementing 5G services in Nepal
Despite being the first South Asian country to introduce third-generation (3G) mobile services, Nepal has lagged significantly in implementing fifth-generation (5G) internet services.
Stakeholders have attributed this delay to the lack of initiative from the government and reluctance among service providers to expand 5G infrastructure.
Mid-year budget review: 39% revenue collection, 35% expenditure
The government’s revenue and expenditure during the mid-year review period of the current fiscal year were notably weak.
According to the Office of the Comptroller General, the government achieved 39% of its annual revenue target and spent 35.89% of its annual budget by the end of Poush.
IGC Meeting: Nepal to import wheat from India; agreements on rail expansion, electrification, and connectivity
India has agreed to supply 200,000 metric tons of wheat to Nepal, following Nepal’s request during the Inter-Governmental Committee (IGC) meeting held on Poush 26-27.
India has also agreed to allow Nepalese vehicles to adhere to its axle weight limits for cargo-in-transit through specified routes, facilitating smoother trade and connectivity.
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