KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and financial environment is currently witnessing significant momentum and transition. The NEPSE index surged by over 62 points amid broad sectoral gains, particularly in finance and hydropower, signaling strong investor confidence.
Simultaneously, gold prices spiked by NPR 1,700 per tola, reflecting possible safe-haven demand or global market influences. On the policy front, Nepal Rastra Bank submitted its pre-budget review, while also moving to withdraw excess liquidity, and the government made Social Security Fund registration mandatory, indicating tighter regulatory oversight.
However, friction is evident in the capital market, with accusations of bribery against the Securities Board and delays in hydro IPO approvals.
Infrastructure development continues selectively, with ongoing highway projects and an overpass at Lahan, though the government plans no new road projects next fiscal year. Business frustration is growing, as seen in protests over halted international flights at Gautam Buddha Airport and Unilever’s concerns about repatriation and import duties.
Meanwhile, Oman’s amnesty for undocumented workers and Reliance Spinning’s profit surge highlight contrasting developments in labor and industrial sectors.
Overall, while the financial markets show positive signals, systemic inefficiencies and regulatory challenges continue to hinder broader economic progress.
NEPSE climbs by 62.25 points, closes at 2673.69
Nepal’s stock market posted a strong performance on Wednesday, with the NEPSE index rising by 62.25 points to finish at 2673.69 — a 2.38% daily gain. A total of 308 securities were traded across 99,305 transactions, amounting to 27.24 million shares exchanged and a total turnover of NPR 10.51 billion.
All sectoral indices posted gains, with finance and hydropower stocks leading the profit charts. Notably, Nepal Micro Insurance Company and Crest Micro Life Insurance surged by 10%. Butwal Power Company, Om Megashree Pharmaceuticals, and Peoples Hydropower also recorded notable gains.
Gold price rises by NPR 1,700 per tola
Gold prices jumped by NPR 1,700 per tola on Wednesday, with hallmark gold reaching NPR 191,600 per tola, up from NPR 189,900 the previous day. The Federation of Nepal Gold and Silver Dealers’ Association reported no change in silver prices, which remained at NPR 1,965 per tola.
NRB presents pre-budget review for fiscal year 2082/83
Nepal Rastra Bank (NRB) has handed over its pre-budget review for FY 2082/83 to the Ministry of Finance. Acting Governor Dr. Neelam Dhungana Timilsina submitted the report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, noting that it was prepared after consultations across various regions. Minister Paudel acknowledged the report’s importance in formulating the upcoming national budget.
Government mandates registration with Social Security Fund
In its policy and program for FY 2082/83, the government announced compulsory registration of all industries and institutions with the Social Security Fund (SSF).
Employers must enroll all workers and show proof of regular SSF contributions for business license renewals. While the fund has existed for nearly eight years, it previously allowed voluntary registration. The new rule covers all types of employment, including cooperatives and institutions.
Securities Board schedules meeting to discuss new stock exchange license
The Securities Board of Nepal has convened a board meeting to discuss licensing a new stock exchange. A review committee has been formed to evaluate a report by former NRB Deputy Governor Chintamani Shiwakoti, which outlines recommendations on establishing the new exchange.
Businesses protest at Gautam Buddha International Airport
Entrepreneurs in Rupandehi staged a protest outside Gautam Buddha International Airport over the absence of regular international flights. Led by the Chamber of Commerce Rupandehi, over a dozen organizations joined the sit-in on Wednesday morning.
Darpan Shrestha, president of the Nepal Chamber of Commerce Rupandehi, warned of more aggressive protests, including boycotts and sit-ins in Kathmandu, if flight services aren’t resumed.
NRB plans to withdraw NPR 35 billion in liquidity
To address excess liquidity in the banking system, NRB will withdraw NPR 35 billion through a 21-day deposit collection operation. This is part of the central bank’s ongoing efforts—active for the past 18 months—to maintain monetary stability through twice-weekly liquidity absorption.
Securities Board accused of delaying hydro IPOs
The Securities Board of Nepal (SEBON) faces criticism for stalling IPO and rights share approvals for hydro companies. Currently, IPOs worth NPR 19.44 billion from 43 hydro firms and rights shares worth NPR 4.99 billion from nine others await approval.
Industry stakeholders allege delays stem from demands for commissions by intermediaries. SEBON is processing IPOs for 89 firms involving over 40 million shares valued at NPR 56.07 billion.
Registrar mandates disclosure of actual shareholders for company registration and share transfers
The Office of the Company Registrar now requires new companies and those transferring shares to disclose details of real shareholders and beneficiaries. This new directive, issued on Tuesday, mandates timely updates of shareholder data in the administrative system, especially for holding companies.
Reliance Spinning Mills posts sharp rise in profit
Reliance Spinning Mills recorded a net profit of NPR 324.29 million in the third quarter of FY 2081/82. The company’s profit for the first nine months reached NPR 1.02 billion, a 6.5-fold increase compared to the NPR 50.3 million earned during the entire previous fiscal year.
Maoist Center raises alarm over Securities Board commission allegations
The CPN (Maoist Center) expressed concern over reports of bribery within the Securities Board. MP Madhav Sapkota claimed IPO approvals for 89 firms involving 1,000.52 MW capacity and valued at NPR 56.07 billion had been stalled for 22 months due to demand for commissions ranging from 5% for small to 7% for large projects. He urged an independent investigation.
UML leaders discuss budget for FY 2082/83
Senior CPN-UML leaders met to discuss budget priorities for FY 2082/83. According to party official Dr. Bhishma Adhikari, the leadership agreed that the budget should focus on production and address the public’s needs. The meeting included all secretariat members except the party president and prime minister.
MP Nisha Dangi slams delay in governor appointment
Rastriya Swatantra Party MP Nisha Dangi criticized the government for dragging its feet on appointing a new governor. Speaking in Parliament, she said the government was prioritizing less pressing matters while roads remained unsafe during the rainy season. “Fix the real problems, not the titles,” she said.
Reliable Nepal Life Insurance announces 12% bonus shares and cash dividend
Reliable Nepal Life Insurance Ltd has proposed a 12% bonus share issuance and a 0.6315% cash dividend. The board made this decision during a meeting on the 23rd. The company’s paid-up capital stands at NPR 4.64 billion, with proposed bonus shares valued at NPR 550.68 million and cash dividends totaling NPR 29.31 million.
Road Department to continue only existing projects in next fiscal year
The Department of Roads has decided not to include any new road construction in the FY 2082/83 budget. Only ongoing programs will be funded, as agreed by the Ministry of Finance, National Planning Commission, and Ministry of Physical Infrastructure. The department currently manages around 1,200 active road projects.
Work begins on overpass at Lahan Chowk as part of highway expansion
An overpass is under construction at Lahan Chowk, Siraha, as part of the East-West Highway expansion. The China Railway-2 Engineering Group is executing the project along the 86.83 km Kanchanpur-Kamala stretch. According to Saroj Koirala, information officer for the western section, 62% of work on the Siraha side is complete, and the overpasses will be 32 meters wide per international standards.
Dispute emerges over Jagdulla Hydropower Project tender
The tender process for the 106 MW Jagdulla Hydropower Project has come under legal scrutiny. The Patan High Court issued a show-cause order following a writ against the re-tendering of the government-owned Bhutan Hydro Power Limited’s project.
The process, initially announced in Jestha 2081, was canceled in Poush 2081 and relaunched in Magh 2081 with Chinese firms Jiangxi Construction Engineering and Sino Hydro winning the bids.
Unilever Nepal meets with Nepal-India Chamber to discuss business hurdles
Unilever Nepal’s managing director Amalan Mukherjee met with Nepal-India Chamber of Commerce president Sunil KC to discuss business challenges. They raised concerns over profit repatriation issues and high import duties on raw materials compared to finished goods, which pose difficulties for multinational firms.
Lumbini Province to reduce budget for next fiscal year
Lumbini Province is preparing a budget between NPR 3.3 billion and NPR 3.6 billion for FY 2082/83 — a reduction of up to 20% from the current year’s NPR 3.897 billion. Chief Minister Chet Narayan Acharya instructed the Ministry of Economic Planning and the Provincial Planning Commission to comply with the federal government’s directive to lower the budget ceiling.
Oman grants three-month amnesty for undocumented migrant workers
Oman has announced a three-month amnesty for workers who overstayed their visas, allowing them to return home without penalties. The Nepali embassy in Oman confirmed the Ministry of Human Resources’ decision and urged Nepali nationals to use the opportunity before the July 31, 2025 deadline.
Postal Highway contractor removed over delays in Dang section
The contractor for the Dang section of the Hulaki Highway has been removed for failing to meet deadlines. Project chief Lila Bhandari confirmed repeated notices were ignored, prompting the cancellation process. A bank guarantee of NPR 6 million will be reclaimed as part of the termination procedure.
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