KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and industrial landscape is currently characterized by a mix of growth momentum, systemic inefficiencies, and policy shifts. On the positive side, the capital market saw a significant surge in hydropower stock trading, and domestic revenue rose by over 9%, indicating investor and fiscal optimism.
New initiatives such as Nepal Rastra Bank’s greenlight for IT firms to invest abroad and the launch of Nepal’s first French fries factory exporting to India show efforts toward economic diversification and global integration.
However, structural issues persist: rising public debt exacerbated by currency depreciation, unaddressed regulatory lapses like the failure to enforce social media registration, and sector-specific grievances, including unannounced power cuts impacting major industrial corridors and IPPAN’s opposition to power purchase policies.
Additionally, regional disparities are evident in financial literacy in Karnali and agricultural struggles in Chitwan and Kailali, while subsidy cuts have triggered concern in Tarai.
The juxtaposition of encouraging developments with persistent economic and governance challenges underscores the need for cohesive policy implementation and infrastructure reform to sustain inclusive growth.
Hydropower firms lead surge in market activity this week
Sanima Mai Hydropower topped the market in trading value this week with transactions totaling NPR 3.73 billion. It was followed by Ngadi Group, Butwal Power, Radhi Bidyut, Singati Hydro Energy, Universal Power, Chilime Hydropower, Synergy Power, Soaltee Hotel, and Union Hydropower. In terms of transaction count, Peoples Power ranked first, trailed by Pure Energy, Ngadi Group, Singati Hydro Energy, Sanima Mai Hydropower, Butwal Power, Union Hydropower, Arun Kabeli Power, Synergy Power, and Universal Power.
Gold price drops by Rs 800 per tola in domestic market
The price of gold in Nepal decreased by Rs 800 per tola on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Hallmark gold was sold at Rs 194,700 per tola, while silver was priced at Rs 2,150 per tola.
New NRB rule permits IT firms to invest abroad
Nepal Rastra Bank has amended the “Foreign Investment and Foreign Loan Management Regulations, 2021,” allowing IT companies to invest overseas. Under the new rule, companies can invest up to 50% of their average foreign earnings over the past three years or up to $1 million—whichever is lower. This aligns with the policy change published in the Nepal Gazette on March 31, 2025.
Labour minister calls for skills training aligned with job market needs
Sharatsingh Bhandari, Minister for Labour, Employment and Social Security, highlighted the importance of training Nepal’s workforce to meet labor market demands. Speaking at an event organized by the National Vocational Training Institute in Kathmandu, he stressed aligning vocational programs with global employment trends.
Nepal pays Rs 62.94 billion in interest on debt so far this fiscal year
By mid-June of the current fiscal year, the government paid Rs 62.94 billion in interest on public debt. Data from the Public Debt Management Office shows Nepal’s total debt has climbed to Rs 2.654 trillion.
Urea fertilizer begins arriving in Nepal via Birgunj for paddy season
Ahead of the paddy planting season, shipments of urea fertilizer have started entering Nepal through Birgunj. The supply, imported by Salt Trading Corporation and Agriculture Inputs Company via global tenders, is being handled by supplier Sun International. A shipment for Salt Trading reached Sirsiya Dry Port this Tuesday.
Rising US dollar drives up Nepal’s public debt burden
Nepal’s public debt continues to grow as the US dollar strengthens against the Nepali rupee. According to the latest report from the Public Debt Management Office, the government’s foreign debt servicing costs are increasing monthly due to currency fluctuations.
Social media firms defy registration rules as government awaits new law
Major social media platforms continue operating in Nepal without registering with the government, despite official directives. The Ministry of Communication is awaiting the passage of the ‘Social Media Bill’ to enforce regulation. A directive issued on December 1, 2023, has so far gone unheeded by the platforms.
IPPAN protests finance minister’s refusal to remove ‘take and pay’ clause
The Independent Power Producers’ Association Nepal (IPPAN) is protesting after Finance Minister Bishnu Paudel declined to eliminate the ‘Take and Pay’ provision from power purchase agreements. IPPAN warns that this clause discourages investment, with over 350 planned projects—worth 17,000 MW—now at risk of losing Rs 66 billion in financing, especially as private producers account for over 80% of the nation’s 3,600 MW capacity.
Domestic revenue up 9.33% in first 11 months of fiscal year
Nepal’s domestic revenue rose to Rs 498.29 billion by June 14 in the current fiscal year, reflecting a 9.33% year-on-year increase. Last year during the same period, the collection was Rs 455.75 billion, according to the Inland Revenue Department.
National Life Insurance declares 10% cash dividend and 5% bonus shares
At its 37th Annual General Meeting in Kathmandu, National Life Insurance Company announced a 10% cash dividend and 5% bonus shares for shareholders, citing strong business performance during the current fiscal year.
Government reduces sugarcane subsidy, alarming Tarai farmers
The decision to slash subsidies for sugarcane farmers in the 2025/26 budget has raised serious concerns among farmers in Nepal’s Tarai region. Many fear the move could threaten the viability of sugarcane farming, which heavily relies on government support.
Industries in Birgunj-Pathlaiya corridor disrupted by power outages
Businesses along the Birgunj-Pathlaiya industrial corridor are facing major setbacks due to unannounced power cuts. Hari Gautam, president of the Birgunj Chamber of Commerce and Industry, reported that industries are experiencing over eight hours of daily load shedding, significantly impacting productivity.
Karnali province continues to lag in financial access and literacy
A workshop organized by the Karnali Foundation highlighted the low levels of financial literacy and access in Karnali Province. Despite having 507 financial institutions, including commercial banks, many residents still lack access to basic financial services such as bank accounts, savings, and mobile banking.
Sunsari-Morang industries face frequent power tripping despite surplus
Industrialists in the Sunsari-Morang corridor are grappling with frequent power tripping, even though electricity supply is reportedly sufficient. The Morang Industry Association expressed concern that while Nepal exports electricity to neighboring countries, domestic industries are still facing inconsistent supply due to technical issues.
Kailali farmers start paddy planting using borewells amid water shortage
Farmers in Kailali district have begun irrigating their paddy fields using borewells as rainfall remains scarce. Although the monsoon entered Nepal earlier than usual this year, it has yet to reach Sudurpaschim Province. Sporadic rain has been reported, influenced by both western and local wind systems.
Nepal’s first French fries factory begins exports to India
Nepal has established its first French fries manufacturing facility, First Choice Foods Pvt. Ltd., located in Ward No. 4 of Shuddhodhan Rural Municipality, Rupandehi. The company has already started exporting its products to India, marking a milestone in Nepal’s food processing industry.
Dang farmers receive Rs 50 million in production-based subsidies
Farmers in Dang district have been awarded subsidies totaling Rs 50 million based on production levels. Distributed by the Veterinary Hospital and Livestock Services Expert Center in Ghorahi, the funds were allocated across five local governments to support dairy and meat producers.
Four new companies set to launch in Bhairahawa SEZ
Four new industries—three Nepali and one Indian—are preparing to begin operations in the Bhairahawa Special Economic Zone. According to SEZ Office Chief Sabut Dumre, the incoming firms include Swastik Industries, Data World, Imitation Metal Craft, and Spot Electric.
Taplejung entrepreneurs briefed on taxation through awareness drive
A tax education campaign was conducted in Taplejung to inform local entrepreneurs about tax laws and the latest finance bill. Hosted by the Taxpayer Office in Phungling in partnership with the Chamber of Commerce and Industry, the session featured guidance from Office Chief Badri Prasad Bhetwal on business registration and tax filing procedures.
Chitwan onion farmers struggle as local produce remains unsold
Onion farmers in Chitwan are facing major losses due to low market demand for locally grown onions. Buyers prefer imported onions, which are larger and more visually appealing. As a result, many farmers, like Baburam Dhamala from Bharatpur-21, have been forced to store unsold produce without any returns.
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