Economic Digest: Nepal’s Business News in a Nutshell

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

Nepal’s current economic landscape presents a complex interplay of progress and persistent vulnerabilities. While macroeconomic indicators such as a Rs 491.44 billion balance of payments surplus, a record-high monthly remittance of Rs 176 billion, and a decline in inflation to 2.72% point to improving financial stability and consumer relief, the marginal NEPSE index dip and weather-induced setbacks in hydropower and agriculture highlight ongoing structural and environmental challenges.

Investment momentum continues in key sectors like hydropower and banking, with projects like the Kalika Gandaki Hydropower securing major funding and IPOs actively progressing. However, issues such as incomplete infrastructure in tourist zones, stalled industries like the Shree Ram Sugar Mill, and devastating hail damage in Jumla underline gaps in execution, disaster preparedness, and rural economic resilience.

Overall, Nepal is showing cautious economic optimism, but sustained growth will depend on bridging policy implementation gaps and addressing climate and governance risks.

NEPSE slips 0.14 points today

The Nepal Stock Exchange index dipped slightly, falling 0.14 points to close at 2,683.86. A total of 15 million shares from 304 companies were traded across 56,276 transactions, generating a turnover of NPR 5.57 billion. Although the market was broadly down, several sectors posted gains: Development Banks (+0.41%), Finance (+1.25%), Hydropower (+0.59%), Investment (+0.08%), Manufacturing & Processing (+0.37%), Microfinance (+0.07%), and Trading (+0.38%); the rest declined.

Nepal posts Rs 491.44 billion surplus in balance of payments

Nepal has recorded a balance of payments surplus of Rs 491.44 billion in the first 11 months of the current fiscal year, according to Nepal Rastra Bank. This is up from Rs 424.70 billion in the same period last year and Rs 438.52 billion recorded last month—a monthly increase of around Rs 53 billion.

Floods hobble major hydropower projects in Rasuwa, 200 MW offline

Heavy flooding from the Kerung and Lende rivers in China has severely impacted hydropower infrastructure in Rasuwa. CEO Baburaja Maharjan of Chilime Hydropower confirmed that as much as 200 MW of capacity has been halted. The 111 MW Rasuwagadhi, 60 MW Trishuli 3A, 21 MW Trishuli I, and 15 MW Devighat projects are all offline, with Rasuwagadhi and Trishuli 3A sustaining significant damage and no immediate plan for restoration.

Remittance inflow sets new monthly record

Remittance inflows reached a record Rs 176 billion in Jestha, surpassing the previous high of Rs 165 billion in Baisakh. Total remittance for the first 11 months of the fiscal year has hit Rs 1.532 trillion, marking a 15.5% increase yearonyear.

Inflation eases to 2.72%

Consumer inflation has declined to 2.72% yearonyear as of endJestha, down from 4.17% the previous year, per data from Nepal Rastra Bank. Food and beverages inflation stood at 0.54%, while nonfood and services inflation was 3.94%, compared to 5.85% and 3.10% respectively last year.

Economy to grow 4.8% in Q3

Nepal’s economy is projected to grow by 4.8% in the third quarter (Magh–Chaitra) of FY 2081/82 (2024/25), compared to the same quarter last year, per the National Statistics Office. All sectors, particularly construction, are expected to contribute positively.

Supreme Court declines interim halt on Poudel’s appointment as NRB governor

The Supreme Court has refused to issue an interim order halting Dr. Biswo Poudel’s appointment as Governor of Nepal Rastra Bank. A bench led by Justices Kumar Regmi and Mahesh Sharma dismissed the petition to annul the appointment but has assigned priority to the three pending writs—filed by Advocates Bishal Thapa, Prativa Upreti, and Anantaraj Luintel on May 27—which allege the appointment was unlawful.

Capital expenditure in Asar triples monthly average

Capital spending has surged this fiscal year in Asar. After an 11month average of Rs 7.49 billion per month, Rs 24.65 billion was spent in the first 20 days of Asar—more than three times the average. By Shrawan 20 (August 4, 2024), only Rs 1.2 billion had been spent in the first month of the fiscal year (Baisakh).

Flood at Rasuwagadhi inflicts billions in damages, traders say

Traders report billions of rupees in losses at Rasuwagadhi border point after floods washed away containers and electric vehicles awaiting customs clearance. Former Rasuwa Chamber president Kaesang Nurpu Tamang said a sudden flood submerged the yard, destroying parked vehicles.

148 rice varieties registered; renewed interest in local types

The Seed Quality Control Center has registered 148 rice varieties in Nepal—94 domestically produced (including two hybrids) and 54 imported (48 hybrids). Though farmers historically preferred highyield hybrids, there’s growing interest in local varieties; more than a dozen native rice seeds are now registered, and others remain in traditional use.

Remittance fuels economy, but laborers feel overlooked, says Kulman Ghising

At a felicitation event in Doha, Qatar, Kulman Ghising remarked that remittances from Nepalis working abroad uphold the national economy, yet the state fails to adequately recognize these laborers’ contributions. He said the ‘Ujyalo Abhiyan’ (Light Campaign) aims to foster hope and belief in change within Nepal.

National taxi standards introduced with three categories

Effective Baisakh 30 (May 13), the Ministry of Physical Infrastructure and Transport has implemented the “National Standard for Vehicles Used as Taxis 2081”, classifying taxis into Ordinary, Deluxe, and Luxury categories under revised national standards.

Tourist road project abandoned in Thakurdwara, Bardiya

A road construction project in the tourist hub of Thakurdwara, located in Ward No. 9 of Thakurbaba Municipality, Bardiya, has been left incomplete. The contractor halted work midway, leaving the area in disarray. Piles of gravel remain unattended, disrupting the movement of pedestrians and vehicles in one of the busiest tourist zones of the municipality.

Funding secured for 47.7 MW Kalika Gandaki hydropower project

The 47.7 MW Kalika Gandaki Hydropower Project, promoted by Maulakali Hydropower Company, has secured the necessary financing. Agricultural Development Bank is leading the investment, with support from Citizens Bank, Prabhu Bank, Laxmi Sunrise Bank, Shangrila Development Bank, and HIDCL. The project, estimated at Rs 10.15 billion, will be 75% bank-financed, with the remaining 25% covered by the project’s promoters.

Farmers optimistic about revival of Shree Ram Sugar Mill

Sugarcane farmers in Garuda Municipality–5, Rautahat, are hopeful about the potential reopening of Shree Ram Sugar Mill, which has been shut since Shrawan 10, 2077 BS (July 25, 2020). Owned by the Golchha Group, the mill closed due to heavy losses. However, following political pressure and protests, the management stated the mill may resume operations if outstanding dues to banks, employees, and suppliers are cleared.

Hailstorm destroys over 500,000 apple trees in Jumla

Severe hailstorms in Baisakh and Jestha have damaged apple orchards across eight municipalities in Jumla, affecting 7,192 farmers. The Agriculture Development Office reports that 508,426 apple saplings were destroyed, including 175,205 expected to bear fruit this year. The storm ruined orchards spanning 29,021 ropani (around 1,475 hectares) of the district’s 4,250-hectare apple farming area.

Himalayan Bank to launch Rs 1.45 billion FPO on July 16

Himalayan Bank will begin issuing its Further Public Offering (FPO) on Asar 32 (July 16). A total of 9,250,469 shares will be offered at Rs 157 each (including a Rs 57 premium), amounting to Rs 1.452 billion. The issuance aims to raise public shareholding to 30%.

RBB Merchant appointed to manage IPO for Rawakhola hydropower

The 4 MW Lower Mid Rawakhola Hydropower Project in Khotang has designated RBB Merchant Banking as the issue manager for its IPO. The agreement involves the issuance of 1 million ordinary shares at a face value of Rs 100, totaling Rs 100 million. The deal was signed by project Executive Chairperson Shambhu Prasad Ghimire and RBB Merchant CEO Badri Prasad Pyakurel.

Him Star Energy opens IPO worth Rs 77.3 million

Him Star Energy Company’s IPO is now open for subscription starting Tuesday. Approved by the Securities Board of Nepal, the offering includes 773,975 shares at Rs 100 each, totaling Rs 77.397 million. Applications will be accepted until Asar 27 (July 11), with a possible extension to Shrawan 6 (July 22) if not fully subscribed.

Kailash Helicopter earns Rs 535 million in nine months

Kailash Helicopter Services has reported a revenue of Rs 535 million over the first nine months of the current fiscal year. In comparison, the company earned Rs 794 million in 2024, Rs 702 million in 2023, Rs 404 million in 2022, and Rs 321 million in 2021. The firm transitioned to a public company in 2023 and remains a key player in Nepal’s helicopter services industry.