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 contrasting developments, reflecting both progress and persistent challenges. The stock market experienced a significant downturn, hitting a two-month low, while gold prices surged to record highs, signaling investor caution amid market volatility.
Meanwhile, major reforms are underway, with the government pushing digital transformation in labor services and payment systems to modernize the economy. Social media giants like X and WeChat are exploring entry into Nepal following recent regulatory crackdowns.
On the development front, progress continues in areas like the Lumbini capital project and sustainable farming in Ilam, though setbacks such as stalled airport operations and unfulfilled relocation plans for industries in Kathmandu highlight gaps in implementation.
Tourism prospects are improving, especially in Shuklaphanta National Park, and the cooperative, garment, and banking sectors are showing signs of resilience. However, environmental concerns, like forest degradation from abandoned infrastructure projects, underscore the need for better planning and execution in Nepal’s development efforts.
Share market drops 62 points, reaches two-month low
The stock market declined by 62 points (2.22%) this week, ending at 2,719 points compared to last week’s 2,781. This is the lowest level in nearly two months. After hitting a high of 3,002 points on July 29, the market has seen a steady decline. This week’s daily changes were mixed: a 31.18-point drop on Sunday, a 12.03-point gain on Monday, followed by losses of 19.89, 15.64, and 6.55 points on Tuesday, Wednesday, and Thursday respectively.
Gold price hits new record in Nepal
Gold prices reached an all-time high on Friday, increasing by Rs 2,500 to Rs 210,400 per tola. The previous day, gold traded at Rs 207,900. Silver also saw a Rs 10 rise, moving from Rs 2,480 to Rs 2,490 per tola.
X and WeChat show interest in Nepal registration
Following the government’s ban on 26 social media platforms, services like X (formerly Twitter) and WeChat have expressed interest in registering in Nepal. The Ministry of Communication, Information, and Technology issued the directive, leading to a halt in several platforms’ services from Friday. Although representatives of X and WeChat have shown interest, they have yet to formally apply.
Government proposes amendment to payment and settlement law
To enhance the safety and transparency of digital payments, the government has drafted the Payment and Settlement (First Amendment) Act, 2025, updating the original 2021 legislation. The Ministry of Finance is inviting feedback from stakeholders and the public. The amendment aims to strengthen Nepal’s digital economy and modernize payment infrastructure.
Labor ministry moves toward digital service integration
Labor-related services in Nepal have long been complex and paper-based. To address this, the Ministry of Labor, Employment, and Social Security has started digitizing these services under the theme “a system that runs, not people.” The initiative involves developing a decentralized online platform to bring all labor services under one system.
Government disburses Rs 750 million subsidy to sugarcane farmers
The government has provided Rs 750 million in subsidies to sugarcane farmers across 13 districts. These farmers supplied 21.6 million quintals of sugarcane to mills. Under the pricing structure, mills pay Rs 585 per quintal, and the government contributes an additional Rs 35 as a subsidy. Beneficiaries include farmers in Sunsari, Siraha, Sarlahi, Mahottari, Rautahat, Bara, and Nawalparasi.
Call for proper implementation of cooperative law
Experts and stakeholders have stressed the importance of enforcing the Cooperative Act to bring transparency and reform to the sector. At the 15th anniversary of the Cooperative Journalists’ Society Nepal (CJN), Minister for Land Management, Cooperatives, and Poverty Alleviation Balram Adhikari emphasized the gradual implementation of the act, its regulations, and directives.
Insurance board makes Forex recommendation mandatory
Insurance companies in Nepal must now obtain a recommendation from the Nepal Insurance Authority before applying for foreign currency exchange. Previously, this was handled under directives from Nepal Rastra Bank. Under the new “Foreign Currency Recommendation Guidelines, 2025,” companies must first receive approval from the Insurance Board.
Readymade garment industry sees revival
Nepal’s readymade garment sector, which had collapsed about 20 years ago, is making a comeback. Annual exports have risen from Rs 1 billion to Rs 10 billion, according to the Nepal Garment Industry Association. A new reciprocal tariff system in the U.S. is offering new opportunities and challenges. Nepal benefits from lower tariffs than countries like India, China, and Bangladesh, though there are concerns about third-country goods entering Nepal’s market.
Kathmandu Valley industry relocation plan remains unfulfilled
Nearly ten years after the government announced plans to move industries out of the Kathmandu Valley, the initiative remains unexecuted. Although the plan has been repeated in annual budget speeches, no working procedures have been developed. This year’s budget included incentives like free land leases and customs duty exemptions. However, three months into the fiscal year, no actions have been taken.
GIS-based sustainable farming launched in Ilam
Nepal has introduced a Geographic Identification, Environment, and Sustainability (GIES) farming system for the first time in Rong Rural Municipality, Ilam. With over Rs 1.8 million in funding from the UN’s Food and Agriculture Organization (FAO), an advanced machine was installed at a cardamom farm in Rong-4, Bhalujhoda. The facility has been named “Rong Himalayan Cardamom GIES Station Nepal.”
Belahiya check post to reopen from September 17
The Integrated Check Post (ICP) at Belahiya on the Nepal–India border is set to reopen on September 17. Closed for some time, the checkpoint was originally set up to improve tourist safety and convenience. Coordination between local authorities, the tourism ministry, and security agencies helped make the reopening possible. Police and transport personnel will be stationed to manage operations.
Phalgunanda Sukilumba Airport remains idle
Despite 33 flights operating last year, Ilam’s Phalgunanda Sukilumba Airport has been inactive since last May. The airport began with a test flight by Tara Air in 2018, followed by limited flights under agreements with Ilam Municipality. Nepal Airlines later joined in with similar arrangements. Since those agreements ended, no flights have taken place.
Shuklaphanta National Park gaining popularity among tourists
Shuklaphanta National Park, known for its large barasingha (swamp deer) population, is emerging as a major tourist destination. The park’s 54 sq. km grassland is home to over 2,300 barasingha. It also has 43 adult tigers, 23 rhinos, and 306 blackbucks. Additionally, 461 species of birds have been recorded.
Hanumandhoka Durbar revenue grows by Rs 20 million
Revenue from the Hanumandhoka Durbar conservation project rose by nearly Rs 20 million in FY 2024/25. Program chief Chandra Gopal Pradhan said earnings increased from Rs 176.9 million the previous year to Rs 194.6 million.
Nepal Airlines cuts Gulmi flights to once a week
Nepal Airlines has reduced its flights to Resunga Airport in Gulmi from four days a week to just Thursdays. The decision comes after two of the airline’s Twin Otter planes were grounded, leaving only one operational. Station head Suman Thapa confirmed the changes.
Lumbini Province capital construction near completion
Construction of administrative buildings for Lumbini Province’s capital in Lamahi, Deukhuri, has reached about 85% completion. The complex, including the Chief Minister’s office and ten other structures, is being built in a mandala layout. Project head engineer Pradeep Bhattarai said work is progressing under a master plan funded by the provincial government.
NIFRA announces 6.32% cash dividend
Nepal Infrastructure Bank (NIFRA) has proposed a 6.3158% cash dividend, including taxes, from last fiscal year’s profit. The bank’s current paid-up capital stands at Rs 21.60 billion. The proposal is pending approval from Nepal Rastra Bank.
Sagarmatha Airport project causes forest degradation
More than 105 hectares of forest have been cleared for the proposed Sagarmatha Airport in Jogidaha, Udayapur, but the land remains unused. The deforestation affected the Shivalaya Religious Forest, Kang Community Forest, and Motihayi Community Forest. According to the Gai Ghat Division Forest Office, airport construction never proceeded beyond feasibility studies, and the land has since turned into grazing areas.
Machhapuchhre Bank to hold AGM on September 26
Machhapuchhre Bank has scheduled its annual general meeting for September 26. The bank will close its shareholders’ register on September 12. Shareholders listed by Bhadra 27 will be eligible to receive the previously announced 8% dividend, including 4% in bonus shares.
Everest Bank proposes 20% dividend
Everest Bank has proposed a 20% dividend for shareholders. The plan includes a 14% bonus share and a 6% cash dividend (tax included) based on its Rs 12.94 billion paid-up capital.
Siddhivinayak Oil records Rs 5.09 billion in trade
Siddhivinayak Oil Pvt. Ltd., the maker of Samriddhi brand edible oils, reported trade worth Rs 5.097 billion in the last fiscal year, up slightly from Rs 5 billion the previous year. The company had sales of Rs 1.425 billion in 2024 and Rs 1.886 billion in 2023. Established in 2021, the firm imports crude oil for processing.
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