KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape is currently marked by both optimism and underlying structural concerns. The NEPSE index’s notable rise reflects investor confidence, primarily driven by gains in the banking sector, while falling gold and silver prices may indicate reduced demand or market correction.
Meanwhile, Nepal Rastra Bank’s Rs 30 billion liquidity withdrawal highlights active monetary intervention amid surplus funds. Efforts to reduce prices in cement and steel signal easing inflationary pressure, though rising rice seed imports and high rice dependency expose vulnerabilities in domestic agriculture.
Regulatory actions—ranging from penalties on insurance firms to final warnings for cooperative defaulters—show increased oversight. At the policy level, steps to legalize ride-sharing and promote worker health at the WHO represent progressive governance, while initiatives in digital banking and luxury tourism signal diversification.
However, continued reliance on food imports, gaps in fertilizer supply perception, and partial enforcement of migrant labor policies underscore the need for deeper structural reform to align economic progress with sustainable development.
NEPSE climbs by 26.53 points
The Nepal Stock Exchange (NEPSE) index rose by 26.53 points, or 1.02 percent, on Sunday, marking the first trading session of the week. With this increase, the index reached 2,622. Out of all listed companies, 185 recorded price gains, while 63 saw declines. Total trading volume reached NPR 712 million. The banking sector led the upward movement with a 2.00 percent rise, playing a significant role in lifting the overall index.
Gold and silver prices fall again
Gold and silver prices continued to decline on Sunday. According to the Federation of Nepal Gold and Silver Dealers Association, gold dropped by an additional Rs 1,000 per tola (11.66 grams), following a Rs 2,900 dip last Friday. The current gold price stands at Rs 188,400 per tola, down from Rs 189,400. Silver prices also fell by Rs 25, now trading at Rs 2,140 per tola.
Nepal Rastra Bank pulls Rs 30 billion from market
Nepal Rastra Bank (NRB) withdrew Rs 30 billion in excess liquidity through a deposit collection auction held on Sunday. The move was aimed at addressing surplus funds in the banking system. Conducted via NRB’s online platform at 3 PM, the auction used competitive bidding to set interest rates. Both principal and interest payments were settled the same day.
Cement and steel prices see reductions
Industries have lowered prices for cement and steel bars. The Department of Commerce, Supply and Consumer Protection reported that cement prices have fallen by Rs 50 to Rs 100 per sack, while steel bar prices have dropped by as much as Rs 5 per kilogram. Director General Kumar Prasad Dahal attributed the price cuts to reduced demand and improved electricity availability, which helped bring down production costs.
Rice seed imports up by 31 percent
Nepal’s rice seed imports rose by nearly 31 percent over the past year. According to the Department of Customs, the country imported seeds worth Rs 1.16 billion during the first 11 months of fiscal year 2024/25, compared to Rs 886.5 million during the same period last year. Experts link this surge to increasing farmer preference for hybrid varieties, which has raised dependency on foreign seed sources.
Over 25 insurance firms penalized for violations
More than two dozen insurance companies have been sanctioned by the Nepal Insurance Authority for breaching regulations, providing incorrect data, and ignoring official directives. According to the Insurance Act 2079, penalties range from warnings to the revocation of licenses.
Ride-sharing to be regulated under new transport law
The government plans to legalize ride-sharing through the upcoming Transport and Vehicle Act. Keshav Kumar Sharma, Secretary at the Ministry of Physical Infrastructure and Transport, confirmed that the federal legislation will enable provinces to enforce ride-sharing regulations based on their own legal frameworks.
Agricultural lending on the rise, but challenges persist
Commercial banks have provided Rs 643.84 billion in concessional agricultural loans over the past ten years. While such lending is crucial, experts point to contradictions—such as soaring agricultural imports and low productivity—as signs that systemic inefficiencies are undermining intended benefits.
Nepal promotes worker health agenda at WHO
Health Minister Pradeep Paudel is advocating for Nepal’s labor health agenda at the World Health Organization (WHO). Speaking during a UN regional gathering in Bangkok, he discussed the proposal with WHO Southeast Asia Regional Director Dr. Saima Wazed. The initiative aims to establish global consensus ahead of the next World Health Assembly.
Free visa and ticket policy sees partial enforcement in Gulf
Nepal’s long-standing policy of providing free visas and tickets for migrant workers continues to face inconsistent implementation. Although workers headed to Gulf countries officially pay only NPR 10,000 as a service fee, the zero-cost hiring model is fully followed mainly by select large employers, such as five-star hotels and major Malaysian manufacturers. Countries like the UAE and Malaysia support this model, but full compliance remains limited.
Rice makes up 80 percent of staple food consumption
Rice constitutes about 80 percent of Nepal’s staple crop intake. Despite measures to increase domestic production, imports of rice and paddy totaled nearly Rs 39 billion over the first 11 months of the current fiscal year. The country continues to face an annual shortfall of around 1 million metric tons, necessitating imports between 1.2 and 1.5 million metric tons.
Gold and silver trade suspended amid ongoing protests
Jewelry shops across Kathmandu Valley, including in major commercial areas like New Road, are closed due to continuing protests. The Federation of Nepal Gold and Silver Dealers Association has also delayed daily pricing. Federation President Arjun Rasaili confirmed that businesses will remain shut until their demands are addressed.
Court defers hearing on NRB governor’s writ again
The Supreme Court has once again postponed the hearing of a writ petition against NRB Governor Dr. Biswo Nath Poudel. The case, scheduled under Justices Sapana Pradhan Malla and Til Prasad Shrestha, could not proceed after Justice Shrestha recused himself. The matter had previously been delayed on Jestha 20 (June 3) due to time constraints.
No fertilizer shortage for paddy, says agriculture ministry
Despite concerns, the Ministry of Agriculture has assured that there is no fertilizer shortage for paddy cultivation. Currently, over 60,000 tons of chemical fertilizer are in stock, with an additional 86,000 tons of urea and 30,000 tons of DAP on the way. This stockpile is expected to meet seasonal farming needs.
Final notice issued to loan defaulters from 19 cooperatives
The Problematic Cooperatives Management Committee has released a final warning to loan defaulters affiliated with 19 cooperatives. Suspended board members, managers, and borrowers have until Asar 32 (July 16) to repay their debts. If payments are not made by then, the committee will initiate recovery procedures—including principal, interest, and penalties—from Shrawan 1 (July 17).
Luxury tourism gaining momentum in Meghauli
High-end tourism is on the rise in Meghauli, Chitwan. Siddhartha Hospitality has unveiled its premium wildlife resort, ‘Siddhartha Wildlife Retreat,’ previously known as Sarang Wildlife Sanctuary. CEO Krishna Neupane noted that the project reflects increasing demand from upscale travelers seeking luxury experiences in nature.
Bharatpur mayor seeks Chinese aid for waste management
Bharatpur Mayor Renu Dahal has proposed collaboration with China and its sister city, Shigatse, to improve waste management. During a meeting with Shigatse’s mayoral delegation, she emphasized China’s consistent role in supporting Nepal’s development and infrastructure.
SDG Global Imports posts Rs 1.53 billion turnover in 2024
SDG Global Imports, active since 2017, reported a trade volume of Rs 1.53 billion for 2024. The company deals in the import and distribution of staple food items such as oil, rice, sugar, pulses, and spices. In the current fiscal year alone, it has already reached Rs 1.48 billion in trade over 10 months.
IME Group ventures into manufacturing
IME Group, widely known for its presence in remittance, banking, and hospitality, has entered the manufacturing sector. The group has commenced operations at Nepal Pulp and Paper Industry in Mahottari, investing Rs 2 billion in the new venture.
Mabilung Energy IPO to open on July 6
Mabilung Energy is set to launch its initial public offering (IPO) on Asar 22 (July 6), initially available to migrant workers and local residents. The company will issue 1.89 million shares at a face value of Rs 100 each, representing 48.99 percent of its Rs 385.8 million capital base.
Mahalaxmi Bikas Bank introduces virtual credit card
Mahalaxmi Bikas Bank, in collaboration with Fonepay, has launched a fully digital virtual credit card. Accessible through the “Mahalaxmi Smart Sathi” mobile app, the card allows users to make QR-based payments at Fonepay merchants and shop online. It includes all standard benefits, such as a 45-day interest-free period and flexible installment options.
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