KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic environment presents a mixed but cautiously optimistic picture, with external sectors showing solid stability and internal sectors making measured progress. According to Nepal Rastra Bank, foreign exchange reserves have reached historic highs for 31 consecutive months, driven largely by a 10% rise in remittance inflows and a revival in tourism and trade.
The current account surplus has also improved significantly, indicating a favorable balance in international transactions. Domestically, however, challenges remain—loan disbursement to the private sector has seen only modest growth despite declining interest rates, reflecting subdued business activity and cautious investor sentiment.
On the regulatory front, the government is preparing tighter oversight of low-quality electric vehicle imports and has been directed by the Supreme Court to establish a National Cooperative Regulatory Authority to address rising fraud cases.
Additionally, over Rs 153 billion has been collected in petroleum infrastructure taxes over the past decade, fueling major projects like Budhigandaki. Meanwhile, private sector involvement is on the rise, with 33 firms applying to launch private equity and venture capital operations.
Sectors like tourism and hydropower are seeing strong momentum: spring mountaineering brought in over Rs 770 million in royalties, and several banks have committed billions to finance major hydropower projects.
At the same time, land value depreciation and falling industrial demand—evident in a 37% sales decline for Shubhashree Agni Cement—highlight ongoing economic headwinds. Nevertheless, new hospitality ventures like IME Group’s Ila Resort and recognition of Nepal’s community homestays by Time Magazine reflect confidence in long-term tourism growth.
Finance Minister Bishnu Prasad Poudel’s emphasis on private sector support underscores the government’s acknowledgment that internal economic strengthening is key to sustaining the overall positive trajectory.
NRB says external economy remains stable while domestic indicators show gradual progress
Nepal Rastra Bank (NRB) has reported that Nepal’s external economic health remains stable, while domestic sectors are slowly improving. According to its review of the first nine months of the fiscal year 2081/82 (July–March), foreign exchange reserves and remittance inflows have grown notably.
Share mortgage loans and import-related credit have also risen, suggesting improved investor confidence. Remittance inflows alone rose by 10%, reaching NPR 1.19 trillion. Meanwhile, the current account recorded a surplus of NPR 210.22 billion, up from NPR 179.83 billion during the same period last year.
Gold and silver prices fall in Nepali market
The price of gold dropped by NPR 3,700 per tola on Monday, with hallmark gold priced at NPR 186,800. Silver prices also declined slightly to NPR 1,960 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Nepal’s foreign reserves hit new highs for 31 months in a row
Nepal’s foreign exchange reserves have been rising consistently for 31 months, now totaling over NPR 2.426 trillion as of March. This increase is fueled by strong remittance inflows, higher trade activity, and a rebound in tourism.
According to the NRB’s report, the reserves increased by NPR 385.74 billion in the first nine months of the current fiscal year—a growth of 18.9% since mid-July 2081. In US dollars, reserves rose from USD 15.27 billion to USD 17.63 billion, marking a 15.4% increase.
Govt to regulate import of low-quality electric vehicles
Following complaints from consumers, the government plans to tighten controls on the import of poor-quality electric vehicles (EVs). Authorities found that many importers sell a limited number of vehicles and shut down operations, leaving buyers without support or spare parts. Currently, EV imports are not subject to quality checks, leading to market abuse.
Govt collects over rs 153 billion from petroleum infrastructure tax in 10 years
Over the past decade, the government has raised Rs 153.15 billion through infrastructure tax on petroleum imports, collected since fiscal year 2072/73. This tax is charged at customs and mainly allocated to projects like the Budhigandaki Hydroelectric Project. Though intended for development, the tax has placed additional costs on consumers.
Spring climbing season brings in over rs 770 million in royalties
This year’s spring mountaineering season has generated more than Rs 770 million in royalties, with Mount Everest alone contributing Rs 670 million. A total of 1,127 climbers from 119 groups received permits for 26 peaks. Among them were 240 women and 887 men. Everest saw the highest interest, followed by peaks like Ama Dablam, Lhotse, and Annapurna.
Private sector issues are our main concern, says Finance Minister Poudel
Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has declared that resolving problems faced by the private sector is the government’s top priority.
During a discussion with the Nepal Chamber of Commerce about the upcoming fiscal year 2082/83 budget, he assured close collaboration with private businesses. He stressed that the government will continue taking reform steps to strengthen the economy, adding that there is no room for complacency regarding current progress.
Loan growth remains weak despite falling interest rates
Despite interest rates dropping steadily, the growth in loan disbursement has been modest. According to NRB, lending to the private sector increased by only 7.1% in the first nine months of this fiscal year—NPR 361.03 billion more than last Ashar (mid-July). Total loans rose from NPR 5.167 trillion to NPR 5.534 trillion by mid-April.
33 firms seek approval for private equity and venture capital operations
Thirty-three companies have applied to the Securities Board of Nepal (SEBON) for licenses to run Private Equity and Venture Capital (PEVC) funds under the Specialized Investment Fund Regulations. SEBON, which has previously licensed 12 firms, is in the final stages of processing these new applications, according to Chairman Santosh Narayan Shrestha.
Supreme court orders government to form cooperative regulatory body
The Supreme Court has ordered the government to establish a National Cooperative Regulatory Authority within six weeks, as per amendments in the Cooperative Act. This follows rising concerns over misuse and fraud in cooperatives. The court stressed that a recommendation committee must be formed promptly.
Liana Trade Concern posts rs 2.2 billion in yearly trade volume
Pharmaceutical and consumer goods importer Liana Trade Concern recorded a trade volume of Rs 2.2 billion in 2024. The company has maintained steady growth for the past four years, with annual sales increasing by around 11%. It supplies over 250 types of medicines across Nepal.
Sharp decline in land prices raises risk for property valuers
Land values have fallen by an average of 30% across various regions in Nepal, with some Terai areas and land near Gautam Buddha Airport seeing drops of up to 66%. This decline increases the risk of blacklisting for property valuers under NRB regulations if revaluations fall significantly below original estimates.
Shubhashree Agni Cement sees 37% fall in sales due to economic slowdown
Shubhashree Agni Cement’s sales dropped by 37% in 2024 amid weak demand and stalled development projects. Revenue fell from Rs 2.55 billion in 2023 to Rs 1.59 billion. Cement sales brought in Rs 880 million, while clinker sales dropped sharply from over 1,081 metric tons to 57,307 metric tons.
Four banks to fund Lapche Tamakoshi Hydropower Project
Four banks, led by NMB Bank, have agreed to finance the 42 MW Lapche Tamakoshi Hydropower Project in Dolakha. Nabil Bank, Nepal Infrastructure Bank, and Everest Bank are part of the consortium, which will invest NPR 5.25 billion in the NPR 7 billion project. NMB Bank will also fund the 2 MW Chepe Khola Cascade project with a loan of NPR 340 million.
Nepal’s community homestay named among time magazine’s best destinations
Time Magazine has listed Nepal’s Community Homestay as one of the best travel experiences for 2025. The program, which began in Panauti in 2012, now includes 200+ homestays across 18 communities. It connects travelers with local life and supports cultural preservation and sustainable tourism.
NMB and Agricultural Development Bank to fund Bajramadi Hydropower Project
NMB Bank and Agricultural Development Bank will jointly invest nearly NPR 3.75 billion in the 24.8 MW Bajramadi Hydropower Project in Kaski district. The total project cost is estimated at NPR 5.35 billion. NMB Bank CEO Govinda Ghimire said the investment aligns with the bank’s focus on sustainable infrastructure.
IME Group to open Ila Hotel and Resort in Maula Kalika
IME Group is launching the Ila Hotel and Resort in Maula Kalika, Nawalpur. The facility will feature 65 rooms, a banquet hall for 1,000 people, and recreational amenities. Located near the Maula Kalika Cable Car station, the hotel aims to boost tourism in nearby spiritual and natural destinations.
Resunga Airport to increase flights to three days a week
Resunga Airport in Gulmi will operate flights on Sundays, Tuesdays, and Thursdays due to higher passenger demand. Nepal Airlines has resumed services after its Twin Otter aircraft underwent maintenance. Fares from Resunga to Kathmandu are set at NPR 7,080 one-way, and NPR 7,280 for the return trip.
NLG Insurance to provide 2.63% dividend to shareholders
NLG Insurance has decided to distribute a total dividend of 2.63%—including a 2.50% bonus share and 0.13% cash dividend for tax purposes—from last year’s profit. The decision will be implemented after approval from the Insurance Board and the company’s upcoming General Assembly.
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