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 showing mixed signals, with stock market volatility, infrastructure investments, and strong revenue collection shaping the month’s outlook. The NEPSE index posted back-to-back losses despite high trading volumes, while the government collected Rs. 2.15 billion in capital gains tax, signaling active investor participation.
Major institutional developments include NEPSE’s plan to build a data center to enhance trading infrastructure and Nepal Oil Corporation’s Rs. 5.75 billion initiative to relocate its Bhairahawa depot, improving fuel storage in Lumbini Province.
On the trade front, Birgunj Customs posted robust revenue of Rs. 18.39 billion following office integration, meeting nearly 88% of its monthly target. Meanwhile, Madhes Province emerged as a national leader in brick production, and Tarakhola in Baglung is positioning itself as a hydropower hub with six projects on a single river.
Meanwhile, the Department of Tourism is also pushing digital and institutional reforms to boost sectoral efficiency. Collectively, these developments reflect Nepal’s ongoing efforts to modernize its economy while navigating structural and fiscal challenges.
NEPSE index falls by 9.22 points, closes at 2,757.97
The Nepal Stock Exchange (NEPSE) on Thursday ended the day with a decline of 9.22 points, or 0.33%, closing at 2,757.97. This drop comes after a 9.70-point loss in the previous trading session. The index began the day at 2,767.52, reaching an intraday high of 2,775.34 and a low of 2,756.85. The total trading volume stood at Rs. 5.02 billion, with 16,855,906 shares changing hands through 56,824 transactions across 319 listed companies. The overall market capitalization was Rs. 4.60 trillion, while the float market capitalization reached Rs. 1.56 trillion.
NEPSE to build data center
The Nepal Stock Exchange (NEPSE) has announced plans to construct a new data center and has invited tenders for the procurement of servers, firewalls, and network switches. According to a notice, interested bidders must submit a security deposit of Rs 400,000 along with their applications. The deadline for tender submission is September 21. NEPSE has also stated that both technical and financial proposals must be submitted simultaneously. Applications will be reviewed on September 21. The data center is expected to enhance NEPSE’s technological infrastructure and improve the efficiency and security of its trading operations.
Gold and silver prices rise on Thursday
The price of precious metals increased on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold was fixed at Rs 194,800 per tola, marking an increase of Rs 1,300 from Wednesday’s rate of Rs 193,500 per tola. Similarly, the price of silver climbed by Rs 35 to Rs 2,290 per tola, up from Rs 2,255.
Govt collects Rs. 2.15 billion in capital gains tax from stock trading in Shrawan
In Shrawan (mid-July to mid-August) of fiscal year 2025/26, the government collected Rs. 2.15 billion in capital gains tax from stock market activities—the highest monthly collection in the past year. According to data from CDS & Clearing, the surge was fueled by high trading volumes and large-value transactions during the month. However, this year’s Shrawan figure was slightly lower than the Rs. 2.57 billion collected during the same period last year. Although the number reflects growing investor activity, it still lags behind the all-time monthly high of Rs. 4.24 billion recorded in Ashad. In the previous fiscal year (2024/25), capital gains tax from share transactions totaled Rs. 16.54 billion. Currently, investors pay a 7.5% tax on profits from shares sold within one year and 5% on long-term holdings.
Birgunj Customs collects Rs. 18.39 billion in first month of FY 2025/26
In the first month of the fiscal year 2025/26, Birgunj Customs Office collected Rs. 18.3967 billion in revenue. This follows the merger of the Birgunj Customs Office and the Dry Port Customs Office, which began functioning as a unified entity from mid-July. During the month of Shrawan (mid-July to mid-August), the office achieved 87.68% of its monthly revenue target. The Department of Customs had set a goal of Rs. 20.9821 billion for the period. For comparison, the revenue collected in the same month last year stood at Rs. 15.92 billion, according to Chief Customs Administrator Deepak Lamichhane. The office is now expected to generate Rs. 273.3948 billion over the entire fiscal year.
NOC to shift Bhairahawa fuel depot to Rohini and Omsatiya with Rs. 5.75 billion DPR
Nepal Oil Corporation (NOC) has finalized plans to move its fuel depot from Bhalwari, Bhairahawa in Rupandehi district, due to safety concerns and limited capacity at the current location. A Detailed Project Report (DPR), prepared by the Consultancy Services Department of Kathmandu University, estimates the project cost at Rs. 5.793 billion (excluding taxes). The report was officially handed over to Pradeep Yadav, Chief of NOC’s Fuel Storage Capacity Enhancement Project, on Wednesday. The new depot, to be built across Rohini and Omsatiya rural municipalities, will be a fully automated, modern facility. It will include land development, access roads, boundary walls, petroleum flow systems, and an advanced fire-fighting setup. Storage capacity will be greatly increased, featuring three vertical diesel tanks with a combined capacity of 13,500 kiloliters, three petrol tanks totaling 4,960 kiloliters, and two kerosene tanks of 76 kiloliters each. The depot is designed to meet one month’s fuel demand for Lumbini Province.
Over 1,000 containers stranded in Tatopani
More than 1,000 containers have been stranded in the Eco area of Bhotekoshi Rural Municipality-2, Sindhupalchowk, after a landslide blocked the road on July 18. The route has yet to be reopened, causing a major disruption in cross-border trade. As a result, goods imported in preparation for the upcoming Dashain and Tihar festivals have not been able to reach Kathmandu. Rajendra Prasad Chudal, Chief of the Tatopani Customs Office, said the containers are stuck on the Chinese side of the Tatopani border, adding that the situation remains critical despite ongoing efforts to clear the road.
‘Madhes Province leads nation in brick production’
Madhes Province Chief Minister Satish Kumar Singh has said that Madhes is the country’s leader in brick production. Speaking at the inauguration of the second convention and third general assembly of the Nepal Brick Industry Federation (Madhes Province) in anakpurdham, Singh highlighted the province’s key role in producing not only bricks but also sugarcane, mangoes, fish, and rice. He noted that out of approximately 1,300 brick industries across Nepal, about 700 are located in Madhes Province, with over 320 currently in operation. Singh urged brick manufacturers to comply with the minimum standards set by the provincial government.
Six hydropower projects on one river in Galkot
Tarakhola Rural Municipality in Baglung has rapidly emerged as a hub for hydropower development, with six hydropower projects either completed, under construction, or in the planning phase— all harnessing the steep and powerful Tarakhola River. Two hydropower projects have already been completed, while two are under construction and two more are in the development pipeline. Sayapatri Hydro Company has successfully completed the construction of the 2.5 MW Daram Khola ‘A’ Hydropower Project in Wards 2 and 3 of Tarakhola, and power generation is already underway.
Tourism department to prioritize tech-friendly reforms
The Department of Tourism has announced plans to make its services more organized and technology-driven, with a focus on institutionalization, process simplification, systemic reforms, and digital regulation. According to its recently published annual report, the department aims to create a tourism administration that is business-friendly, investment-friendly, and technology-friendly in order to enhance the sector’s overall appeal. It has placed priority on aligning international best practices with national systems, as well as on developing and expanding tourism-related activities.
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