KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEPSE extends losing streak
The Nepal Stock Exchange (NEPSE) continued its downward trend on Thursday, the last trading day of the week. The NEPSE index dropped by 18.40 points to settle at 2,487.17, while the Sensitive Index, which tracks Class “A” companies, declined by 1.73 points to 435.29. A total of 311 companies were traded across 36,531 transactions, with 7,643,635 shares exchanged, totaling a turnover of Rs 327.5 million. Among the listed companies, 197 saw a drop in share prices, 45 gained, and 9 remained unchanged.
Gold price hits all-time high in Nepali market
Gold prices surged to a record high in Nepal on Thursday, reaching Rs 250,900 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price for 10 grams of gold stood at Rs 215,105. On Wednesday, hallmark gold was priced at Rs 248,900 per tola. Silver prices also rose in line with gold.
Income tax contribution drops in total revenue collection
The share of income tax in Nepal’s overall revenue has decreased, while reliance on indirect taxes has risen slightly. Data from the Ministry of Finance shows that in fiscal year 2024/25, income tax made up 25.3% of total revenue, a decline from 26.8% the previous year. Conversely, the share of indirect taxes increased from 13.8% to 14.9%. Only 76.22% of the income tax target was achieved last fiscal year, while indirect tax collection reached 89.85% of the target.
Banks build up surplus loanable funds
As the first quarter of the fiscal year comes to a close, banks and financial institutions have accumulated an excess of nearly Rs 1.15 trillion in funds available for lending. While the beginning of the fiscal year saw an increase in available credit due to an expansive budget and monetary policy, expectations of increased loan demand remain only partially fulfilled—though early signs of a pickup in credit flow have emerged.
Finance Minister Khanal, ADB President discuss political climate
Finance Minister Rameshwor Prasad Khanal met with Asian Development Bank (ADB) President Masato Kanda in Washington, D.C., on Thursday. During the meeting, Kanda raised concerns about Nepal’s political changes and governance issues. In response, Minister Khanal assured that the current government is focused on fostering an investment-friendly environment. He also acknowledged ADB’s continued support, particularly in infrastructure development.
Central bank governor cites political instability as economic challenge
Nepal Rastra Bank Governor Prof. Dr. Bishwo Nath Poudel has stated that recent political shifts are creating added hurdles to maintaining economic stability and growth. Speaking at the SAARC Finance Governors’ Meeting during the World Bank and IMF annual sessions in Washington, he noted that while inflation and external indicators remain stable, policy reforms are underway to boost economic recovery amid political uncertainty.
Govt introduces new social security allowance guidelines
To enhance transparency and efficiency, the government has introduced the ‘Social Security Allowance Distribution Procedure, 2025.’ The new system, implemented by the Ministry of Home Affairs under Section 30 of the Social Security Act, 2018, mandates that beneficiaries receive payments via bank accounts to reduce duplication and prevent irregularities.
Seventeen construction firms blacklisted for non-compliance
The Public Procurement Monitoring Office has blacklisted 17 construction companies for periods ranging from one to two years. A notice issued Thursday stated the companies were penalized for breaching contract terms under Section 63(1) of the Public Procurement Act, 2006.
Irrigation project contracts cancelled over failure to deliver
The government has begun terminating contracts for irrigation projects that have remained incomplete for years. On Thursday, the Babai Irrigation Project cancelled a contract with Aman Construction Company, Gulariya-5, which had been signed six years ago during fiscal year 2020/21. The contract involved work related to canal repair, command area protection, and maintenance.
Hotel sector remains resilient and hopeful
Nepal’s hotel industry, which directly employs around 100,000 people and spends over Rs 2.06 billion annually on salaries and benefits, continues to show resilience. According to a report by the Central Bureau of Statistics, despite past challenges such as power shortages, blockades, earthquakes, and the COVID-19 pandemic, recent issues like the Gen Z movement and monsoon disruptions had minimal impact on operations. Industry representatives recently discussed ongoing issues with Nepal Rastra Bank officials.
Insurance authority proposes updates to agricultural coverage
The Insurance Authority has drafted revisions to its 2022 guidelines on agriculture, livestock, and medicinal plant insurance. It has also prepared a new directive focused on damage assessors. On Wednesday, the Authority held a discussion with insurers to gather feedback on both the amendment and the newly introduced framework for damage assessment.
Dried dates widely sold despite ongoing import ban
Although the import of dried dates has been banned for the past four years, they are still commonly found in markets, selling for between Rs 450 and Rs 800 per kilogram. Fresh chickpeas are also priced high, reaching up to Rs 1,900 per kilogram. Customs data confirms that banned dried dates are still entering the country through official points, while regulatory bodies remain inactive.
Most Tihar goods sourced from international markets
Nepal continues to rely heavily on imports for Tihar festival essentials. Customs data reveals that cashews used for Bhai Tika are imported from countries including India, Qatar, Kuwait, and Vietnam via Saudi Arabia. In the first two months of the fiscal year 2025/26 alone, cashew imports reached Rs 178 million. Coconuts, another key item, are primarily imported from India, totaling Rs 76.62 million in the same period.
Nepalis spend more abroad than country earns from tourism
Nepali outbound spending is significantly higher than the earnings from foreign tourists. In the first two months of fiscal year 2025/26, foreign visitors spent Rs 11.58 billion in Nepal, while Nepalis traveling abroad spent Rs 47.31 billion, government data shows.
Flower production up in Lumbini ahead of Tihar
Flower production has risen in Lumbini Province ahead of the Tihar festival, particularly marigold and velvet flowers. According to the Lumbini Province Agriculture Directorate in Butwal, marigold production reached 323,925 kilograms this year, up from 308,500 kilograms last year.
Adequate sugar supply ensured for Tihar
Nepali consumers will not face a sugar shortage during the Tihar festival, according to the Ministry of Industry, Commerce, and Supplies. While monthly sugar consumption typically ranges from 18,000 to 20,000 metric tons, it rises to 25,000–30,000 metric tons during festive seasons like Dashain, Tihar, and Chhath. In previous years, delays in duty-free sugar imports led to artificial shortages and price hikes. This year, no such issues have been reported.
New terminal completed at Nepalgunj airport
Construction of the new state-of-the-art terminal building at Nepalgunj Airport is complete. Although the project was scheduled for completion by the end of Poush, Sharma & Company finished it three months ahead of deadline. The terminal will be handed over soon, according to project chief Nalbikram Thapa. The airport is the busiest in western Nepal.
Bagmati Province trims budget by Rs 3.47 billion
The Bagmati provincial government has reduced its current fiscal year budget by Rs 3.47 billion. Finance and Planning Minister Prabhat Tamang said the move is aimed at promoting financial discipline, minimizing unproductive expenses, and maintaining budgetary balance.
Global IME Bank schedules AGM for November 12
Global IME Bank will hold its 19th annual general meeting on November 12 at Nepal Pragya Pratisthan, Kamaladi, Kathmandu. The meeting will approve an 8% cash dividend (for tax purposes) from last fiscal year’s profits, based on the bank’s current paid-up capital.
Mansarovar-Kailash pilgrimage via Humla concludes for the season
The annual Mansarovar-Kailash pilgrimage through Humla district has ended for the year. Considered a relatively short and safe route, the journey involves flying to Simkot and then traveling overland through the Hilsa border point. This year’s pilgrimage saw participation from Indian pilgrims. With winter approaching and snow beginning to fall, the route has now closed for the season.
Kaligandaki bridge construction sees delays
Progress on the Kaligandaki River bridge at Ramnadi Dham, which connects Gandaki and Lumbini provinces via the Siddhartha Highway, has been slow. Launched as a three-year project in June 2022 with a Rs 270.71 million contract awarded to Himal Sagarmatha Pvt Ltd, only 75% of the work is completed. While the arch, foundation, and pillars are done, installation of hangers is still underway.
Miteri Development Bank announces 10% cash dividend
Miteri Development Bank has declared a 10% cash dividend for its shareholders, drawn from accumulated profits up to the previous fiscal year. The dividend, worth Rs 121.7 million, will be distributed following approval from Nepal Rastra Bank and the bank’s upcoming general assembly.
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