KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest developments in Nepal’s economy and governance reflect a dynamic yet challenging landscape. The NEPSE index closed the week with a significant decline, hinting at market uncertainty despite initial gains, possibly influenced by regulatory changes concerning microfinance dividends.
Meanwhile, Nepal Rastra Bank’s move to audit major commercial banks and revive concessional loans demonstrates a push for greater financial transparency and economic stimulation. The Ministry of Finance is advancing plans to assess long-defunct public enterprises, signaling potential privatization or restructuring. In the socio-economic sphere, gold prices hit a record high amid currency concerns, airfares soared ahead of Dashain, and sanitation workers in Hetauda were brought under social protection.
Agriculture and tourism are showing localized progress, as seen in Tanahun’s potato yields and the growing popularity of Kopre waterfall. Politically, PM Oli’s upcoming China visit is expected to strengthen regional ties, while lawmakers continue to press for better subsidy policies and infrastructure development.
Koshi Province’s launch of the ‘Udaya’ project adds a promising initiative aimed at job creation and SME growth, offering a holistic view of the country’s shifting economic and social priorities.
NEPSE index declines by 38 points at week’s end
After posting gains earlier in the week, the Nepal Stock Exchange (NEPSE) index fell by 38.10 points (1.35%) on Thursday, closing at 2,781. While only 24 companies saw an increase in share prices, 227 companies posted losses. The weekly decline followed Nepal Rastra Bank’s announcement of relaxed dividend distribution guidelines for microfinance institutions.
Ten major commercial banks to undergo international-standard audit
Nepal Rastra Bank has selected Bangladeshi firm Howladar Yunus & Company to conduct a comprehensive asset quality audit of 10 major commercial banks. This move aims to assess the banks’ financial health and credit portfolios. The list includes top institutions such as Nabil Bank, Global IME Bank, Rastriya Banijya Bank, NIC Asia, and others.
Finance ministry to tender valuation of long-sick public industries
The Ministry of Finance is set to call for tenders to evaluate the assets and liabilities of four government-owned enterprises that have remained inactive for years. Consultants have already been selected for Butwal Spinning Mills, Janakpur Cigarette Factory, and two other state-run industries. The valuations will guide future restructuring or privatization plans.
Gold price sets new record at Rs 200,600 per tola
The price of gold in the domestic market surged to an all-time high of Rs 200,600 per tola on Friday, with a single-day increase of Rs 1,200. Silver also saw a modest rise of Rs 5, reaching Rs 2,360 per tola. Dealers cite global market trends and a weaker Nepali currency as key drivers behind the price hike.
Concessional loan program resumes after long suspension
Nepal Rastra Bank has revived concessional loan facilities after several years by introducing a new procedure on interest subsidies. Under the new policy, individuals and businesses can access loans ranging from Rs 500,000 to Rs 50 million with subsidized interest rates. The move is expected to boost entrepreneurship and small-scale industries across the country.
Domestic airfares skyrocket ahead of Dashain travel rush
With the Dashain festival approaching, demand for domestic flights has surged, causing ticket prices to nearly double. Bookings for remote destinations such as Lukla, Tumlingtar, and Simikot are almost full, with limited availability even at high fares. Airlines report that about 40 percent of tickets have already been booked in advance.
Hetauda sanitation workers brought under social security scheme
Sanitation workers employed under Hetauda Sub-Metropolitan City’s waste management program have been enrolled in the Social Security Fund. The initiative, benefiting 53 workers—21 of them women—aims to enhance their safety, health coverage, and job dignity. The program is being implemented in partnership with Green and Clean City Service.
Prime Minister Oli briefs House on upcoming China visit
Prime Minister KP Sharma Oli addressed the House of Representatives on Friday to share details of his planned five-day visit to China. He emphasized that Nepal’s participation in the Shanghai Cooperation Organization (SCO) would bring strategic advantages. During the visit, PM Oli is expected to meet Chinese President Xi Jinping and Vice Premier Han Zheng.
Tanahun produces 863 metric tons of potatoes under promotion program
Farmers in Tanahun have harvested over 860 metric tons of potatoes through a government-supported Potato Promotion Project. Thirteen farmer groups cultivated the crop across 1,000 ropanis of land. The program provided 80 quintals of seed potatoes and agricultural tools to each group at a 75% subsidy.
Kopre waterfall in Myagdi gains popularity as summer retreat
Kopre waterfall in Beni Municipality-2 has become a favorite destination for locals seeking a peaceful escape from the summer heat. Located just two kilometers from Beni Bazaar along the Myagdi River, the waterfall now attracts increasing foot traffic, especially on holidays. Visitors say it offers a calm and scenic break from urban life.
National Assembly members raise concerns over subsidies, borders, and justice
In Friday’s National Assembly session, lawmakers voiced demands to increase subsidies for sugarcane farmers and accelerate the reopening of Tatopani and Rasuwagadhi border points. They also called for operationalizing the Korala crossing and sought updates on the implementation of laws related to disappeared persons, passed a year ago.
Koshi Province launches ‘Udaya’ project to promote entrepreneurship and create jobs
The Koshi Province Government has launched the ‘Udaya’ project with support from the Swiss government to foster small and medium enterprises. The initiative aims to create 3,000 jobs within four years, supported by a Rs 600 million credit guarantee fund and Rs 280 million Challenge Fund. Loans of Rs 3–30 million will be provided without collateral through selected banks.
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