KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is currently experiencing a mixed trajectory marked by notable sectoral shifts and administrative reforms. The stock market saw a downturn with falling turnover, while precious metal prices also declined, reflecting global economic volatility.
In contrast, government-led efforts to accelerate development are gaining momentum—evident in initiatives like the Investment Board’s project fast-tracking plan, Mustang’s power expansion, and road infrastructure upgrades.
Fiscal inefficiencies persist, with over Rs 5 billion in unused budget returned, prompting institutional reviews such as the Planning Commission’s move to weed out non-viable projects.
Despite internal challenges, external economic indicators like rising tea exports, increased dry port revenue, and growing Everest tourism reflect resilience.
Additionally, strategic moves—such as encouraging IPOs, expanding remittance services, and welcoming Starlink—point toward efforts to modernize and globalize Nepal’s economy.
Nepal stock market drops as turnover dips sharply
The Nepal Stock Exchange (NEPSE) index declined by 14.5 points on Monday, closing at 2,647, down from the previous day. Although the market briefly climbed to 2,676 points within the first few minutes of trading, it steadily fell for the rest of the day.
Trading volume also decreased notably. Monday’s turnover reached Rs 8.91 billion, significantly lower than the Rs 10.87 billion recorded the day before. Stock prices rose for 78 listed companies, while 167 saw declines.
Despite the broader downturn, the Finance sector rebounded, gaining 1.40 percent after several days of losses. The Trade sector also rose slightly by 0.42 percent.
Gold and silver prices fall in local market
Gold prices dropped by NPR 1,400 per tola in Nepal on Monday, with hallmarked gold priced at NPR 188,300—down from NPR 189,700 the previous day. Silver also fell to NPR 1,970 per tola from NPR 1,990.
The drop comes amid global fluctuations in precious metal prices, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Investment board endorses strategic plan to fast-track projects
The Investment Board of Nepal has approved a new strategic action plan led by CEO Sushil Gyawali. The decision was made during the 61st board meeting chaired by Prime Minister KP Sharma Oli.
The plan focuses on advancing 57 ongoing projects and includes reforms to enhance the one-stop service center’s efficiency. The board also approved the creation of a secretarial-level position to improve internal operations.
Finance ministry says signs of economic recovery emerging
Nepal’s Ministry of Finance has indicated that the national economy is beginning to show signs of improvement, even as it continues to face domestic challenges. External economic indicators such as remittance inflows, foreign reserves, and trade performance have remained strong.
Internally, improved government expenditure, better revenue collection, and reduced inflation have contributed to more optimistic economic projections. Government spending reached NPR 841 billion by the end of Magh, reflecting a 4.94% rise in the current fiscal year 2081/82.
Starlink plans satellite internet launch in Nepal
Elon Musk’s Starlink is looking to introduce its satellite-based communication services in Nepal. The company has submitted a business proposal to the Ministry of Communication and Information Technology, seeking favorable conditions to invest in Nepal.
As talks continue around the need for accessible and high-speed internet, Nepal’s lesser-known satellite phone providers—such as Constellation Pvt. Ltd. and IFOR Technology—continue to operate with approval from the Nepal Telecommunications Authority.
Nepal-India petroleum pipeline begins operation quietly
The cross-border petroleum pipeline from Motihari, India to Amlekhganj in Nepal has started full operations without any official inauguration. Originally launched virtually in 2019 by the prime ministers of both countries, the pipeline initially transported diesel.
Now also carrying petrol and kerosene, the pipeline is fully functional. Plans for a physical inauguration are still pending, despite the expanded usage of the infrastructure.
Over Rs 5 billion in budget returns in current fiscal year
More than Rs 5 billion allocated in Nepal’s ongoing fiscal year has gone unspent and been returned by government agencies. According to the Ministry of Finance, most of this came from the capital expenditure category.
The Ministry of Energy, Water Resources and Irrigation, along with Millennium Challenge Account Nepal (MCA-Nepal), accounted for some of the largest returns.
Additionally, several other ministries—including those overseeing communication, tourism, elections, and land management—have also returned portions of their budgets. Recurrent expenditures saw a return of Rs 534 million, while capital expenditures returned Rs 5.03 billion.
Customs office in Humla resumes after winter closure
After being closed for four months due to heavy snow and freezing temperatures, the Yari Customs Office in northern Humla has reopened. The office, which shut down on December 25, resumed operations on Sunday as weather conditions improved.
Chief Ramraj Jaisi confirmed the reopening and added that road access will be restored soon, enabling transportation services to resume.
NPC begins review to eliminate unviable projects
The National Planning Commission has started revising the National Project Bank to remove financially unfeasible projects from future budget considerations.
Under the updated guidelines, projects with a budget under three million rupees will no longer qualify for inclusion in the bank, and only listed projects will be eligible for budget allocation.
As of Wednesday, 6,246 projects have been entered into the revised system, aiming to ensure that only practical and impactful initiatives receive government funding.
Mustang sees rapid progress in 33 kV power line expansion
The Nepal Electricity Authority is moving quickly to expand the 33 kV transmission line in Mustang district. This upgrade will connect Thasang Rural Municipality-2 Kowang to Upper Mustang and link with the 103 km line extending to Charang in Dhamodarkund Rural Municipality.
Currently, northern Mustang is connected by an 11 kV line to China’s Tibet Autonomous Region. The NEA’s new efforts aim to fully integrate Mustang into the national grid.
Deuba promises budget to support private sector needs
Nepali Congress President Sher Bahadur Deuba has pledged that the upcoming budget for fiscal year 2082/83 will address the concerns of the private sector.
Speaking at an event hosted by the party’s Industry and Commerce Department in Kathmandu, Deuba stressed that the government will actively collaborate with businesses to stimulate the economy.
He recognized the private sector’s essential contribution to national growth and reaffirmed the Congress party’s dedication to resolving its issues. Deuba stated, “Stronger cooperation between the government and private sector will strengthen the economy.”
Supermarkets barred from relabeling imported goods
The Department of Commerce, Supplies, and Consumer Protection has prohibited supermarkets from relabeling products manufactured by others. The directive, issued Sunday, is part of efforts to enforce the Consumer Protection Act of 2075.
Department spokesperson Dik Bahadur Karki said supermarkets had been labeling goods they didn’t produce, leading to consumer complaints. The decision followed discussions with market representatives.
Karnali province accelerates budget planning for new fiscal year
Karnali Province has intensified efforts to prepare the budget for fiscal year 2082/83. Budget discussions involving officials from various ministries and departments are actively underway, with final proposals expected by June 15 (Asar 1).
Economic Affairs Minister Rajeev Bikram Shah said budget ceilings have been assigned to ministries, and internal consultations are ongoing to finalize allocations.
Four-lane Pokhara-Muglin road project nearing completion
The upgrade of the Pokhara-Muglin road into a four-lane highway is progressing well and is expected to finish before winter, provided no major disruptions occur.
The project, part of the renovation of the decades-old Prithvi Highway, began in April 2021. The Jamune-Muglin section is nearly 83% complete, while the Pokhara-Jamune stretch is just over 50% finished.
Tea exports surge as international demand grows
Nepal’s tea exports have risen significantly this fiscal year, reaching NPR 3.57 billion (164,852 kg) between July and March—up from NPR 2.54 billion (130,516 kg) during the same period last year.
The Department of Customs anticipates tea exports could hit NPR 4.5 billion by the end of the fiscal year, signaling growing international interest in Nepali tea.
Over 400 climbers ready to summit Everest this season
More than 400 mountaineers from 53 nations have gathered at Everest Base Camp, preparing for their summit attempts during the spring climbing season, which spans April and May.
According to the Department of Tourism, nearly 1,000 people—including guides and support staff—are expected to reach the summit this season, highlighting the global draw of Everest expeditions.
Machhapuchhre Bank signs remittance deal with Kuwaiti firm
Machhapuchhre Bank has partnered with Kuwait-based Al Muzaini Exchange to offer a new remittance service for Nepalis working abroad. The agreement was signed during an event at the Millennium Hotel in Salmiya, Kuwait.
CEO Santosh Koirala and Al Muzaini General Manager Hugh Fernandez formalized the deal, which aims to provide faster and more efficient money transfers.
Birgunj dry port posts strong revenue growth despite slowdown
Despite broader economic challenges, the Birgunj dry port has recorded a significant increase in revenue this fiscal year. Customs officials reported a collection of NPR 36.83 billion—up NPR 3.84 billion from last year.
The dry port’s strong performance is being seen as a positive sign amid the economic slowdown, according to office chief Dhan Bahadur Baruwal.
88 companies await approval for IPO launch
A total of 88 companies are currently awaiting the green light to issue Initial Public Offerings (IPOs), totaling over NPR 56.33 billion. The Securities Board of Nepal (SEBON) is in the process of evaluating these firms’ financials.
Some of the pending IPOs include offerings at premium prices, particularly from companies in the hydropower sector.
Sudurpashchim infrastructure offices struggle with interim staffing
In Sudurpashchim Province, 29 offices under the Department of Physical Infrastructure Development are being run by interim staff due to a lack of permanent appointments.
These offices, which oversee vital projects like roads and water supply, are facing administrative challenges and delays due to the staffing shortages.
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