KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Overall, the developments point to a mixed but gradually stabilizing economic landscape in Nepal, marked by short-term market volatility alongside structural and policy-driven activity. The stock market’s decline and continued correction in gold prices suggest cautious investor sentiment, likely influenced by liquidity management measures such as Nepal Rastra Bank’s planned Rs 25 billion debenture issuance.
At the same time, strong oversubscription of bank IPOs and plans for right share issuances indicate sustained investor interest in the financial sector. Trade activity has shown renewed momentum with the full resumption of imports through the Rasuwagadhi transit, boosting customs revenue and supply chains, while ongoing investments in energy infrastructure—ranging from solar power generation in Jhapa to a major 400 kV transmission line—signal long-term confidence in Nepal’s power sector.
Parallel to these economic movements, the government’s move to form a special task force on foreign employment fraud reflects growing institutional attention to governance and labor protection, while initiatives such as banking-sector CSR in healthcare and returnee migrants succeeding in domestic enterprises highlight emerging social and grassroots economic resilience.
NEPSE index drops 10 points on Sunday trading
The Nepal Stock Exchange (NEPSE) index experienced a double-digit fall on the first trading day of the week on Sunday, dropping 10.29 points to close at 2,610.63. A total of 12.74 million shares from 323 companies were traded 79,702 times, generating a turnover of Rs 5.1 billion. Among the sectoral indices, the Hotel and Tourism group rose 0.62%, Production and Processing increased 1.04%, and the Trade group gained 0.34%. All other sub-indices recorded losses: Banking fell 0.14%, Development Bank 0.80%, Finance 0.13%, Hydropower 0.49%, Investment 0.32%, Life Insurance 0.88%, Microfinance 0.32%, Mutual Fund 0.29%, Non-Life Insurance 0.86%, and Other groups declined 1.69%. Win Nepal Microfinance Financial Institution Limited and Srinagar Agritech Industries Limited entered positive circuits today, while Nyadi Hydropower Limited saw its share price fall by 4.32%.
Gold price down by Rs 2,100 on Sunday
The price of gold, which dropped by Rs 11,000 over four days last week, continued its downward trend on Sunday. According to the Federation of Nepal Gold and Silver Dealers, the price of gold fell by Rs 2,100 per tola today (Sunday) to Rs 260,400. Gold prices had declined sharply from Monday to Thursday last week before rebounding by Rs 2,900 per tola on Friday, when the price reached Rs 262,500 per tola. However, the price has declined again on Sunday. On Thursday, gold prices had fallen by Rs 1,400 per tola to Rs 259,600. Earlier, the price dropped by Rs 7,900 per tola on Monday and by Rs 600 per tola on Tuesday. Meanwhile, the price of silver also declined by Rs 25 per tola today to Rs 4,500.
NRB to issue Rs 25 billion in debentures
Nepal Rastra Bank has announced plans to issue debentures worth Rs 25 billion under the name “Nepal Rastra Bank Debenture 2083 ‘C’.” Commercial banks, development banks, and finance companies classified as Class A, B, and C institutions will be eligible to participate. The one-year debenture will be issued through an online bidding process, with interest rates determined competitively. The bidding will remain open until 2:00 pm. The principal will mature on Poush 20, 2083, while interest payments will be made twice a year. Bids will be allocated starting from the lowest interest rates up to the approved amount. The cut-off interest rate will apply uniformly to all successful bidders. The central bank has warned that institutions failing to maintain sufficient balance on the issuance date will face bid cancellation, a penalty of 2.5 percent of the approved amount, and a six-month ban from participating in open market operations.
Imports resume in full swing from Rasuwagadhi transit
With the resumption of operations at the Rasuwagadhi border checkpoint, the import of goods from neighbouring China has picked up. According to the Border Security Post, Rasuwagadhi, 18 electric vehicles (EV microbuses) entered Nepal through the checkpoint on Saturday. These vehicles were imported for the first time in the current fiscal year and are currently parked at Timure. The Customs Office stated that the importers are in the process of paying the due revenue. Similarly, on Saturday alone, 39 cargo containers carrying apples, ready-made garments, garlic, vehicle spare parts, walnuts, batteries, and medical supplies entered Nepal. Customs Office Spokesperson Thakur Gautam said that since the reopening of the Rasuwagadhi border crossing last Thursday, 96 containers of goods have entered Nepal as of Saturday. He added that the inspection and clearance process for ready-made goods will begin today, with perishable items such as apples and walnuts being prioritised for inspection and clearance. Meanwhile, the office collected Rs 90.87 million in revenue within two days after the border crossing resumed regular operations.
Govt plans special task force to probe foreign employment fraud
The government has initiated steps to establish a special task force to investigate fraud cases linked to foreign employment. The Ministry of Labour, Employment and Social Security has begun the formal process of setting up the mechanism. The proposed task force will include representatives from the Department of Foreign Employment, the Office of the Attorney General, and security agencies under the Ministry of Home Affairs. Currently, more than 35,000 fraud-related cases are under investigation at the department, with hundreds of new complaints being registered daily. Each year, over 5,000 cases are filed, in addition to a large number of unresolved cases from previous years. The task force aims to speed up investigations and improve the resolution of both new and backlog cases.
Solar energy worth Rs 47.1 million sold in five months in Jhapa
Jhapa Energy, a solar power producer, has sold electricity worth Rs 47.1 million to the Nepal Electricity Authority (NEA) over the past five months. From mid-July to December, the company produced 6.52 million units of electricity from its 10-megawatt solar project in Buluchowk, Ward No. 4, Shivasatakshi Municipality, according to Lal Bahadur Sanwa Limbu, chair of the company’s board of directors. The NEA purchases power from Jhapa Energy at a rate of Rs 7.30 per unit. The company has been generating electricity commercially for the past two years. Jhapa Energy’s project covers 22 bigaha of land in Buluchowk, where 21,600 solar panels have been installed. The electricity generated is transmitted to the NEA’s Buluchowk substation, less than a kilometer away, and fed into the national grid.
Jyoti Bikash Bank supplies baby warmers to remote health facilities in Koshi
As part of its corporate social responsibility program, Jyoti Bikash Bank has provided baby warmer machines to health posts in remote districts of Koshi Province to help protect newborns from hypothermia. The equipment has been installed at Sisuwakhola Health Post and Num Primary Health Center in Sankhuwasabha, Pujansewa Municipal Hospital in Khotang, and Ektin Health Post in Panchthar. The bank said the initiative aims to support safe maternity services even in areas where it does not operate branch offices. Health workers at the respective facilities were also given specialized training on operating the machines.
NIC Asia Bank plans 50 percent right share issuance
NIC Asia Bank has announced plans to issue right shares equivalent to 50 percent of its existing paid-up capital at a ratio of 2:1. The decision was made at a board meeting held on Poush 20, and the bank has sought approval from Nepal Rastra Bank. With its current paid-up capital standing at Rs 14.91 billion, the bank plans to issue 74,587,835 right shares worth Rs 7.45 billion. The issuance will proceed after regulatory approval and endorsement from the bank’s upcoming annual general meeting.
Salpa Bikas Bank IPO oversubscribed nearly 19.4 times
The initial public offering (IPO) of Salpa Bikas Bank has been oversubscribed by 19.37 times. While the bank issued 1,439,179 shares, applications were submitted for more than 27.88 million shares by 2.38 million applicants. Under the allotment rule of 10 shares per applicant, only 143,917 investors will receive shares, leaving over 2.26 million applicants without allotment. The bank stated that Rs 30 million from the IPO proceeds will be used for branch expansion, Rs 128.9 million for investment activities, and Rs 13.49 million for other purposes. Established in 2069 BS, Salpa Bikas Bank began operations after receiving approval from Nepal Rastra Bank on Ashar 1 of the same year. Its head office is in Diktel Bazaar, Khotang, and it currently operates six branches.
Returnee migrant succeeds in commercial poultry farming in Tanahun
Arjun Bahadur Basnet of Vyas Municipality–1, Ratauli, has built a successful poultry business after returning home from foreign employment. After spending 17 years working in Dubai, Basnet returned to Nepal and is now earning more than he did abroad. He currently earns around Rs 100,000 per month from egg sales. Basnet returned home nine months after losing his father during the COVID-19 period and started the business five years ago. His farm, Basnet Broiler Poultry and Egg Farm, houses 2,000 layer chickens. With an initial investment of Rs 3 million, Basnet built two modern sheds on six ropanis of land. The farm produces about 1,800 eggs daily and records a monthly turnover of over Rs 500,000. After covering expenses, he saves more than Rs 100,000 each month.
NEA to build new Butwal–Lamahi 400 kV transmission line
The Nepal Electricity Authority has announced plans to construct a 400 kV transmission line connecting Butwal and Lamahi. The 161-kilometer line will facilitate the transfer of electricity generated in eastern Nepal to the western region and help evacuate power from hydropower projects along the Gandaki Corridor. The project will pass through Nawalparasi, Rupandehi, Palpa, Kapilvastu, Arghakhanchi, and Dang districts of Lumbini Province. NEA has issued a public notice inviting feedback for the preparation of an Initial Environmental Examination report. A right-of-way of 46 meters—23 meters on each side of the centerline—has been designated for the transmission line, which will include 405 towers. A 400/220, 132/33/11 kV substation will also be constructed at Rihar in Lamahi Municipality, Dang.
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