KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent economic developments in Nepal reflect a mixed but generally positive outlook across various sectors. The Nepal Stock Exchange saw a moderate rise with more companies gaining share prices, while gold and silver prices hit record highs, indicating rising investor interest and inflationary pressures.
The sharp increase in share-backed loans suggests growing financial sector activity but also potential risks. Encouraging bank profits point to improved dividend prospects for investors, supported by external audits aimed at strengthening banking sector transparency.
Meanwhile, government initiatives such as labor agreements with Saudi Arabia and protective funds for migrant workers highlight efforts to safeguard labor interests. However, challenges remain, including a surge in banking-related crimes, export declines due to Indian certification requirements, and infrastructure delays impacting tourism and industry.
Agricultural exports show steady performance, but protests over unpaid milk payments underscore rural economic distress. New financial products and corporate accolades reflect innovation and recognition in banking and capital markets, while institutional upgrades like NADA’s transition to a federation indicate evolving organizational maturity. Overall, Nepal’s economic landscape presents cautious optimism tempered by structural and regulatory challenges.
143 companies gain as NEPSE closes higher
The Nepal Stock Exchange (NEPSE) rose by 12.91 points (0.46 percent) on Monday, closing at 2,763.74. Despite the rise, overall trading remained moderate. Throughout the day, a total of 114,408,844 shares worth Rs 5.10 billion were traded. By the market close, share prices of 143 companies had increased, 106 had decreased, and two remained unchanged. Trading involved 326 companies with 68,775 transactions recorded.
Gold price hits new high
Gold prices climbed further on Monday, rising Rs 2,500 per tola from the previous day. The Federation of Nepal Gold and Silver Dealers’ Association reported gold at Rs 203,600 per tola on Sunday, increasing to Rs 205,300 on Monday—the highest so far. Silver prices also rose to Rs 2,470 per tola.
Share-backed loans rise to Rs 140.7 billion
According to Nepal Rastra Bank, banks and financial institutions—including commercial banks, development banks, and finance companies—had invested Rs 9.009 billion in margin-based share-backed loans by the end of fiscal year 2023/24. By the end of fiscal year 2024/25, this amount surged 56.17% to Rs 140.7 billion. Commercial banks increased their share-backed loans by 66.05%, from Rs 7.03 billion last year to Rs 116.8 billion. Development banks raised their loans by 25.31%, from Rs 1.559 billion to Rs 1.954 billion over the same period.
Positive signals for bank dividend seekers
Investors waiting for dividends in the capital market have received encouraging signs from commercial banks’ financial results this year. The banks’ significant profits in fiscal year 2024/25 have improved their capacity to distribute dividends. While dividend rates had been declining in recent years, last year’s financial results show notable improvement. Banks that were unable to pay dividends last year now have the capacity to distribute up to 20%.
Bangladeshi firm to audit top 10 Nepali commercial banks
A Bangladeshi company has been assigned to audit the loan quality of Nepal’s top 10 commercial banks, with a deadline of five months to complete the task. Nepal Rastra Bank appointed Howlader Yunus & Company of Bangladesh for this purpose, giving them until the end of January 2026. The central bank approved the company’s proposal of USD 271,670 to assess the asset quality of these banks. The audit will cover banks involved in mergers and acquisitions, including Global IME Bank, Nabil Bank, Nepal Investment Mega Bank, Kumari Bank, Laxmi Sunrise Bank, Himalayan Bank, Prabhu Bank, NIC Asia, NMB, and Rastriya Banijya Bank.
Nepal to sign labor agreement with Saudi Arabia
The government has authorized the Ministry of Labor, Employment, and Social Security to sign a labor agreement with Saudi Arabia. The Council of Ministers approved the agreement on Friday. The ministry prepared the draft through phased negotiations and submitted it for cabinet approval. Once approved, signing the labor agreement will proceed. The deal will cover skilled and unskilled workers, excluding domestic workers.
Banking offenses lead registered crimes in first month of FY 2025/26
In the first month of fiscal year 2025/26, banking offenses were the most frequently registered crimes nationwide. Nepal Police data show that 1,603 banking crime cases were recorded, representing 28.25% of all crimes. A total of 5,740 crime cases were registered that month. Other major crime categories included 875 cases (15.21%) related to public interest, health, safety, convenience, and ethics; 554 (9.76%) suicides; 460 (8.09%) drug-related cases; 379 (6.60%) theft; and 262 (4.56%) fraud cases.
Government to set up fund to protect Nepali workers in India
The government has adopted a policy to create a dedicated fund to protect the rights of Nepali workers in India. A model similar to the Foreign Employment Welfare Fund will be developed and gradually implemented. The National Labor Migration Policy 2025 aims for organized management of workers going to India. Approved by the Council of Ministers, the policy seeks to ensure labor migration is safe, organized, dignified, and sustainable.
India’s BIS requirement reduces Nepali iron and steel exports
Due to India’s mandatory Bureau of Indian Standards (BIS) certification, Nepal’s iron and steel exports to India have declined. Until last year, iron and steel products were Nepal’s top export items, but exports dropped sharply this year. In the first month of fiscal year 2025/26, only Rs 355.9 million worth of iron and steel items were exported to India, compared to Rs 1.2461 billion in the same month last year.
Egg farmers start receiving cost price
Poultry farmers producing eggs have begun receiving the cost price. Many farmers had left the profession as egg prices were below cost. Binod Pokharel, president of the Nepal Layers Poultry Farmers’ Association, said farmers began getting the cost price from July 22. The association set the price for large eggs at Rs 525 per crate on that date. Currently, the market price per egg is Rs 23, while farmers receive Rs 18 per egg.
Dividend season begins for listed companies
The dividend season has kicked off for listed companies, with firms across various sectors starting to declare dividends from profits earned in fiscal year 2024/25 and accumulated earnings. Some banks, financial institutions, and hydropower companies have already announced dividends. Most mutual funds listed on the market have also declared their dividends for this year, with 37 mutual funds announcing payouts based on transactions in fiscal year 2024/25.
Nepal, Qatar discuss economic cooperation
Chamber of Commerce President Chandra Prasad Dhakal met with Sheikh Khalifa bin Jassim bin Mohammed Al Thani, chairman of the Qatar Chamber, in Qatar to discuss enhancing economic and business ties. Both parties agreed to hold the next Nepal–Qatar Joint Business Council (JBC) meeting soon in Kathmandu. Dhakal emphasized the importance of finalizing the member list to strengthen the JBC as a key platform for boosting trade and investment.
Farmers protest over unpaid milk payments
Farmers have started road protests after failing to receive nearly Rs 3.5 billion for milk sales. Delays in payments from the government-owned Dairy Development Corporation (DDC) and private dairies have left farmers struggling to feed livestock, pay bank interest, and manage household expenses. Rs 1 billion is due from DDC and Rs 2.5 billion from private dairies, prompting the demonstrations.
Industrial village project delayed despite budget
The industrial village project in Melouli Municipality, Baitadi district, has not progressed despite budget allocation and detailed studies. Although the federal government allocated Rs 9.2 million, work has not begun due to incomplete environmental study reports. The Auditor General’s Office stated that after four years of inactivity, the project must move forward, or the budget should be returned to the federal consolidated fund. The office recommended refunding the Rs 9.2 million allocated in FY 2020/21 after audits revealed no progress.
Agricultural exports total Rs 123.54 million
The Plant Quarantine and Pesticide Management Center at Kakarbhitta reported agricultural exports worth Rs 123.54 million in the first month of FY 2025/26. Major exports included cardamom, tea, plywood and veneer, ginger, and amlisho. Tea exports accounted for Rs 37.99 million, cardamom Rs 32.43 million, plywood and veneer Rs 26.87 million, and amlisho Rs 8.87 million.
Poor road to Dhorpatan wildlife reserve frustrates tourists
Tourists face challenges due to poor roads leading to Dhorpatan Wildlife Reserve, Nepal’s only hunting reserve. Despite being a national priority, the Saljhandi–Dhorpatan road has not been upgraded even after 10 years. While the road from Burtibang to Bobang is passable, conditions beyond that are difficult, with narrow, pothole-ridden and muddy roads making travel hard, especially for motorcycles and jeeps. Rain worsens road conditions with mud and loose stones.
Bungal Hydro IPO opens for public applications
Applications for the initial public offering (IPO) of Bungal Hydro Limited opened to the general public on Monday. Previously, shares were reserved for project-affected locals and Nepalese working abroad. Now, 1,701,500 shares are available to the public. The company is offering 35% of its total Rs 830 million capital at a par value of Rs 100 per share. Applications can be submitted until September 4.
NIC Asia Bank launches ‘Sathi home loan’ scheme
NIC Asia Bank introduced the ‘NIC Asia Sathi Home Loan’ scheme, offering loans up to Rs 30 million. The loans come with attractive interest rates and benefits under the slogan ‘Your Dream, Our Support’. The scheme covers buying, constructing, reconstructing homes and apartments, or purchasing land, with loan amounts ranging from Rs 5 million to Rs 30 million.
Garima Development Bank wins Indian Chamber of Commerce award
Garima Development Bank Limited was honored by the Indian Chamber of Commerce with awards at the Emerging Asia Banking Conclave and Awards. On August 29 in New Delhi, the bank won awards for Best Bank and Best AI/AML Implementation, and was runner-up for Best MSME Acceleration.
NADA to become a federation
The Nepal Automobile Dealers’ Association (NADA) is set to upgrade to a federation after over a decade of waiting. The 21st Central Committee meeting decided on the change, which will be presented at a special general assembly on September 9 for approval. This transformation will formalize NADA’s status as a federation.
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