KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic developments reflect a dynamic mix of market fluctuation, policy intervention, infrastructure progress, and technological transition.
The stock market saw a minor dip amid strong hydropower trading, while mutual funds continue to inject significant liquidity. The Nepal Rastra Bank is actively managing excess liquidity, and gold prices rose modestly, indicating cautious investor sentiment.
Tourism achieved a post-pandemic milestone, and insurance firms reported steady growth despite falling EPS. Infrastructure remains a focus, with digital services rolling out in Bagmati and new road construction near the Trishuli River.
Meanwhile, the phase-out of 3G signals a full shift toward 4G connectivity. Government decisions to manage public enterprise investments and run SEZs under a PPP model hint at a tilt toward private sector collaboration.
Agriculture and poultry face heat-related production challenges, and organizational restructuring in NADA and Nepal Bank highlight ongoing institutional reforms.
Stock market dips slightly with Rs 9.24 billion turnover
The Nepal Stock Exchange (NEPSE) recorded a turnover of Rs 9.24 billion on Sunday, despite a decline in trading volume from the previous day by Rs 130 million.
The NEPSE index fell by 3.44 points to settle at 2,620. Hydropower stocks dominated the session, accounting for 58.9% of total transactions, amounting to Rs 5.44 billion.
However, the hydropower sub-index slipped 0.09%, reflecting potential profit booking. Indices for several sectors also fell, including finance (-1.30%), investment (-0.86%), life insurance (-0.28%), microfinance (-0.25%), trading (-0.84%), and others (-0.02%).
Gold price rises by Rs 600, silver dips slightly
The price of gold rose by Rs 600 per tola on Sunday, reaching Rs 184,100, while silver dropped from Rs 1,930 to Rs 1,910 per tola. The rates were published by the Federation of Nepal Gold and Silver Dealers’ Association.
Nepal Rastra Bank to absorb Rs 50 billion in liquidity
The Nepal Rastra Bank (NRB) has announced its plan to mop up Rs 50 billion in excess liquidity from financial institutions over a 21-day period. The central bank cited excess loanable funds as the reason behind the move.
Online bidding for this liquidity absorption was open until 3 PM on Sunday, in line with NRB’s regular Sunday and Wednesday liquidity management operations.
April 2025 sets record for tourist arrivals in Nepal
Nepal welcomed 116,490 foreign tourists in April 2025, setting a new monthly record. This marks a 6.5% rise compared to April 2019, before the COVID-19 pandemic. Nepal Tourism Board CEO Deepak Raj Joshi credited the surge to growing global interest in Nepal’s travel offerings.
Himalayan Life Insurance posts Rs 472.4 million Q3 profit
Himalayan Life Insurance reported a third-quarter profit of Rs 472.4 million for the current fiscal year, up 8.49% year-on-year. Net premium income rose slightly to Rs 12.18 billion.
Despite the profit increase, annualized earnings per share dropped from Rs 7.24 to Rs 6.89 due to a rise in paid-up capital. The insurer’s net worth per share stands at Rs 116.07, with a market price of Rs 417.
Finance group hits 10-month low on NEPSE
NEPSE’s finance group index has dropped to its lowest level in 10 months, closing at 2,397.79 on Wednesday (Baisakh 17). This is the lowest point since Asar 6, 2081, when it stood at 2,340.77. The index had reached a high of 3,975.49 on Bhadra 6 but has since declined by 1,578 points, showing a sustained downward trend despite brief rebounds.
Mutual funds inject nearly Rs 46 billion into share market
Mutual funds have significantly contributed to market liquidity, with their investment in shares reaching Rs 45.91 billion by mid-April 2025, up from Rs 43.62 billion in mid-February.
There are currently 36 closed-end and 9 open-end mutual fund schemes operating in Nepal. Of the total fund assets worth Rs 59.69 billion, about 73.07% is invested in equities, while 7.94% (Rs 4.74 billion) is placed in fixed deposits.
Flights disrupted nationwide due to bad weather
Persistent rain and low visibility on Sunday caused disruptions in both domestic and international flights across Nepal. A Jazeera Airways flight to Varanasi was diverted, and several domestic flights—including Buddha Air’s Mountain Flight and aircraft headed to Lukla—were forced to return. Operations resumed gradually as weather conditions improved, but flights to remote areas remained suspended.
3G internet to be phased out in Nepal from 2025
Nepal’s telecom providers are preparing to shut down 3G mobile internet services starting in 2025. Ncell officially announced its phase-out plan in February, urging the government to restrict phone imports that don’t support VoLTE. Both Ncell and Nepal Telecom are transitioning fully to 4G services.
Minister Dahal inspects roads, calls for better coordination
Infrastructure Minister Devendra Dahal, during an inspection of roads in Kapan, Kathmandu, emphasized the need for inter-agency coordination in infrastructure projects.
Citing strong cooperation among coalition partners, he noted that development efforts had gained momentum. Locals requested better river management and road construction, to which Dahal responded by promising improved coordination among concerned ministries.
Government to manage investment in seven public enterprises
The Cabinet has approved plans to manage government investments in seven major state-owned enterprises, including Janakpur Cigarette Factory and Udayapur Cement Industry. The government also cleared 289 hectares of land acquisition for canal expansion under the Ranijamara Kulariya Irrigation Project.
Dhruba Bhattarai appointed independent director at Nepal Bank
Dhruba Bhattarai has been appointed as an independent director of Nepal Bank Limited, representing public shareholders. He replaces Chandra Bahadur Adhikari, who was removed from the board following a Nepal Rastra Bank corruption-related directive. Bhattarai is associated with the Employees’ Provident Fund.
Alternative road construction begins near Trishuli River
Work has begun on an alternative road along the opposite bank of the Trishuli River, near Muglin. The move comes in response to frequent monsoon-related landslides on the Narayangadh–Muglin highway. Excavation has caused temporary dust-related discomfort in Muglin Bazaar, but locals support the long-awaited project.
Bagmati Province launches digital driving license and e-Blue Book
Bagmati Province has rolled out digital driving license and e-Blue Book systems, eliminating the need for physical copies. The services are integrated into the Nagarik App, allowing users to access and display their documents digitally. The system supports online applications for license renewal, upgrades, and duplicates.
Insurance Information Center nearing completion
The Nepal Insurance Authority is finalizing the establishment of an Insurance Information Center with support from insurers. Aimed at preventing fraud, the center is part of the government’s policy framework for FY 2082/83. According to the authority, the center is almost ready and will soon be operational.
SEZs and Dhaubadi Iron Company to run under PPP model
The government has decided to operate Special Economic Zones and the state-run Dhaubadi Iron Company under a Public–Private Partnership (PPP) model. Though established to boost production and exports, only Bhairahawa and Simara SEZs are active. Officials say the PPP model will attract private investment and expedite industrial growth.
Bagmati industry body seeks quarantine facility at Ratamate
The Bagmati Province Industry Association has urged the provincial government to establish a quarantine post at Ratamate to promote local agriculture and livestock products. The association also called for policies mandating domestic product purchases, improved procurement processes, and industrial training programs.
Egg production falls as heat affects poultry
Rising temperatures have led to a decline in egg production, with chickens eating less and laying fewer eggs. Dr. Ananta Dahal of the Agriculture and Forestry University explained that heat and humidity stress poultry, increasing disease risk and reducing output by up to 25%.
NADA removes Akash Golchha from senior VP post
The NADA Automobiles Association of Nepal has stripped Akash Golchha of his role as senior vice president, listing him only as a general member. Golchha’s removal follows internal disputes and the government’s delay in approving amended statutes passed by a special general meeting.
Barpak road blacktopped after 28 years
A long-delayed road project in Gorkha has finally been completed after 28 years. The 8.36 km road from Ghyampesal to Tarkukot in Barpak Sulikot has been widened and blacktopped at a cost of Rs 297.7 million. The project was executed by MS, Biruwa, Waiba & Lama JV.
Comment