KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal’s economy and infrastructure reflect a complex mix of momentum and inefficiencies.
While the stock market shows rising investor confidence with a significant jump in trading volume and sectoral gains, and foreign aid commitments remain strong at over NPR 221 billion, the economy faces setbacks due to institutional inefficiencies—evidenced by over NPR 5 billion in unspent government funds and concerns from Nepal Rastra Bank about poor banking oversight.
Meanwhile, efforts like the NPR 1.5 billion Pokhara drinking water project, Gandaki Assembly construction, and rural women’s entrepreneurial rise in Tanahun signal progress in local development.
However, persistent issues—such as low provincial revenue performance, recurring import dependency (e.g., garlic), and civil service unrest—highlight the gap between policy and execution, underscoring the need for more effective governance and accountability mechanisms.
Trading volume on Nepal stock market rises
The Nepal Stock Exchange saw a significant increase in trading activity at the beginning of the week, with turnover rising by NPR 3 billion compared to the previous day.
While the earlier session had a turnover of NPR 7.87 billion, Monday’s figure jumped to NPR 10.87 billion. The NEPSE index also showed a slight gain, climbing by 3.58 points to reach 2661 points.
At one point during the day, around 12:25 PM, the index had peaked at 2684 points. Among the various sectors, the investment sector posted the strongest growth, while the finance sector recorded the steepest drop.
The banking sector gained 0.39%, development banks were up by 0.02%, and finance dipped by 1.05%. Life insurance rose by 0.11%, microfinance by 0.94%, non-life insurance by 0.33%, and others increased by 0.57%.
The hotel and tourism sector added 0.38%, hydropower advanced by 1.06%, investment surged 1.77%, manufacturing climbed by 0.41%, and trading rose by 1.18%.
Over NPR 5 billion in unspent budget returned by government agencies
Government agencies have returned over NPR 5 billion in allocated funds due to failure to utilize the budget within the current fiscal year. According to the Ministry of Finance, most of the returned amount falls under capital expenditure.
The Ministry of Energy, Water Resources and Irrigation, and the Millennium Challenge Account Nepal Development Committee were among the top contributors to the returned funds.
Finance Ministry official Ambika Prasad Khanal reported that NPR 534 million from operational expenses and NPR 5.03 billion from capital budgets were returned.
Other agencies returning funds include the Ministry of Communication and Information Technology (NPR 9.5 million), Ministry of Culture, Tourism, and Civil Aviation (NPR 3.9 million), Election Commission (NPR 24.2 million), and the Ministry of Land Management, Cooperatives, and Poverty Alleviation (NPR 15.8 million).
Nepal secures foreign aid pledges worth NPR 221.99 billion by end of Falgun
By the end of Falgun in the current fiscal year, Nepal had obtained foreign aid commitments totaling NPR 221.99 billion, according to the Ministry of Finance. Of the total, 25.7% were grants. Actual foreign aid disbursed during the same period reached NPR 101 billion.
The energy sector received the largest share of commitments at 25.4%, while good governance received the least at just 0.2%.
Other sectors that received notable pledges included environment and climate (21.7%), irrigation (12.8%), drinking water (11.5%), disaster management (9.1%), transportation (6%), the social sector (4.3%), nutrition (1.5%), and infrastructure (0.6%).
Gold price rises by NPR 100 per tola, silver sees NPR 10 drop
On Sunday, the price of gold in Nepal increased by NPR 100 per tola, reaching NPR 189,700, as reported by the Federation of Nepal Gold and Silver Dealers’ Association. This is up from NPR 189,600 the previous day.
Meanwhile, silver prices declined by NPR 10, falling from NPR 2,000 to NPR 1,990 per tola.
Govt initiates long-term reform plan in cooperative sector
The National Cooperative Regulatory Authority has launched efforts to implement long-term reforms and improve management in Nepal’s cooperative sector.
Land Management, Cooperatives, and Poverty Alleviation Minister Balaram Adhikari stressed the government’s commitment to addressing issues in the sector at a program.
Established on 14th Poush 2081, the Authority has finalized its internal rules and is preparing to appoint a chairperson to move ahead with its mission. Minister Adhikari also assured that the genuine concerns of cooperatives would be dealt with appropriately.
NRB marks 70th anniversary with commitment to stability and growth
Nepal Rastra Bank celebrated its 70th anniversary today, commemorating its founding on the 14th of Baishakh, 2013 B.S. On the occasion, Acting Governor Dr. Neelam Dhungana Timshina reaffirmed the central bank’s dedication to fostering sustainable economic development, ensuring macroeconomic stability, and building a secure and efficient payment system.
She emphasized the importance of sound monetary and foreign exchange policy, effective financial management, and expanding financial access to strengthen public confidence.
Banks lack monitoring system for proper loan usage, says NRB
The Nepal Rastra Bank (NRB) has pointed out that several commercial banks do not have effective systems to verify whether loans are being used as intended by borrowers.
This concern was highlighted in the Bank Supervision Department’s annual report, which warned that the absence of such systems could lead to misuse of loans.
The report also noted that some banks are deficient in information systems to manage key financial elements like deposits, loan portfolios, risk-weighted assets, and capital.
Additionally, some institutions were found to be holding non-banking assets for over three years without action or a clear strategy for their disposal, in violation of existing regulations.
Nepali Congress MP Maya Rai arrested for alleged co-operative fraud
Nepali Congress Member of Parliament Maya Rai has been taken into custody on suspicion of embezzling funds from the Swarnalaxmi Savings and Credit Co-operative in Kalimati.
Police arrested her from her home in Kapan on Saturday evening and informed the Federal Parliament Secretariat the same day.
Rai is accused of misappropriating NPR 1.19 billion belonging to 690 depositors. The Kathmandu District Court had previously issued an arrest warrant for her in connection with co-operative fraud and organized crime.
Authorities had been searching for her for an extended period before the arrest. A formal case has been recommended against her.
Civil Aviation Authority staff protest proposed organizational split
Employees of the Civil Aviation Authority of Nepal have protested the government’s plan to split the authority into two separate entities.
The Nepal National Employees Organization within the authority issued a statement strongly opposing the bill, which was introduced in parliament by the Minister of Culture, Tourism, and Civil Aviation on Magh 19, 2081 and presented to the House of Representatives on Falgun 13, 2081.
The protesting staff argue that the restructuring plan was proposed without adequate consultation and would weaken the authority. Despite submitting a memorandum on Falgun 28 demanding withdrawal of the proposed legislation, the government has not responded.
Garlic imports surge again despite earlier restrictions
Despite recent restrictions and stricter quarantine checks, garlic imports into Nepal have doubled again. Following a sharp decline in imports during Magh and Falgun due to government scrutiny at Chinese border points, imports rose significantly in Chaitra.
Department of Customs data show that 964,335 kg of garlic worth NPR 122.86 million were imported in Chaitra. This compares with 610,280 kg (NPR 79.95 million) in Magh and 485,701 kg (NPR 62.54 million) in Falgun.
Hotels hosting casinos must own at least 10% stake, new bill proposes
A new bill under the Tourism Act 2081 mandates that any four-star or higher-rated hotel or resort allowing casino operations on its premises must hold a minimum 10% ownership in the casino. This provision, now registered in the National Assembly, aims to increase accountability.
Previously, under the Casino Regulation 2070, casinos operated under separate licenses. With this change, the host hotels will be directly responsible for the operations and obligations of the casinos.
Egg prices rise after prolonged slump, bringing relief to farmers
After months of declining prices, the cost of eggs in Nepal has started to rise again, offering relief to struggling poultry farmers. The price of a crate (30 eggs) had dropped from NPR 525 to as low as NPR 350 last year, but has now increased to NPR 450.
Binod Pokharel, President of the Nepal Layers Poultry Farmers Association, announced new farm support prices: NPR 430 for large eggs, NPR 380 for medium, and NPR 450 for XL. He said the new rates were decided during a meeting held on Saturday.
Construction begins on Sundarekhola arch bridge in Parbat
Construction is underway on an 80-meter-long motorable arch bridge over the Sundarekhola river in Chuwa, Ward 8 of Kushma Municipality, Parbat. This is part of the Pushpalal Mid-Hills Highway Project. The work began two years after the blacktopping of the highway’s Parbat section was completed.
Kalpana Mishra, an engineer with the project office, confirmed that this is the first arch-style bridge being built in the region. It will feature a double-span structure and measure 11 meters in width.
Gandaki Provincial Assembly building project moves forward after seven-year delay
After years of delays, construction of a new Gandaki Provincial Assembly building is finally progressing. The new facility will be built on a 7-ropani plot behind the existing assembly building in Riverpur, Pokhara-3, at a cost of NPR 253.78 million, including VAT.
According to Omraj Dhungana, head of the Urban Development and Building Office in Kaski, the contract was signed on Magh 18, 2081 B.S. with East West JV, New Baneshwor. The building must be completed within 36 months and is expected to be finished by Magh 18, 2084 B.S.
NPR 1.5 billion drinking water project to benefit Pokhara residents
A major drinking water project worth NPR 1.5 billion is set to be launched in Pokhara Metropolitan City to address ongoing water shortages.
The initiative will be implemented through a tripartite cost-sharing agreement and will serve wards like Kahun Dhada, Kristi, Bharatpokhari, Nirmalpokhari, and Mattikhan.
The project is part of the federal government’s broader drinking water program and will include multiple local initiatives, including those in Wards 11, 21, and 33. The signed agreement outlines responsibilities for construction, operation, and management.
Lumbini Province falls short of revenue target, collecting only 30%
Lumbini Province has managed to collect just 30.06% of its targeted revenue for the fiscal year 2081/82. In the first nine months, revenue collection reached only NPR 1.416 billion out of a goal of NPR 4.712 billion.
Rabindra Aryal, spokesperson for the Provincial Accounts Controller’s Office, noted that the figure includes returns, grants, and unreconciled amounts. However, economic analysts argue that such components should not be classified as actual income.
Women in Tanahun’s industrial village turn to bamboo craft for income
In Tanahun’s Aabukhaireni Rural Municipality, women are embracing productive work in an industrial village currently under construction. Transitioning from domestic roles, they are now learning to make bamboo crafts like mudha and naglo by watching online tutorials, particularly on YouTube.
Local resident Gauri Gurung shared that she now helps support her family by selling these handmade items. Once confined to household chores, she now produces and sells bamboo products professionally, gaining economic independence through locally available materials.
Experts call for sustainable tourism development in Kanchanjunga
Despite being the world’s third-highest peak, Kanchanjunga remains underrecognized as a tourist destination. Experts are urging for sustainable tourism development that includes local community involvement and conservation of the region’s unique biodiversity.
At an event marking the 70th anniversary of the first ascent of Kanchanjunga, British Ambassador Rob Fenn emphasized the need to preserve the region’s natural and cultural heritage. The event was organized by the British Embassy and the Prosperous Hill project.
Tamakoshi V audit resumes after agreement with locals
Audit activities for the Tamakoshi V Hydroelectric Project have resumed following an agreement between local residents and project officials. Work had been previously halted due to community demands for employment, compensation, water management, and road upgrades.
Following a nine-point agreement, work restarted on Saturday. Yadav Acharya, a local involved in the discussions, stated that the project would adhere to Environmental Impact Assessment (EIA) guidelines and would not limit job opportunities based on age but rather on skill.
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