KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments point to a mixed but revealing economic picture, with financial markets showing cautious stability amid broader structural pressures. The marginal rise in the NEPSE index alongside easing bank deposit rates reflects abundant liquidity and limited alternative investment opportunities, while record-high gold and silver prices suggest investors continue to seek safe havens.
Strong profitability at the Citizen Investment Trust highlights resilience in institutional savings and investment, even as falling agricultural prices—particularly for broom grass—underscore distress in rural livelihoods. At the same time, weak cross-border trade due to the irregular operation of the Tinker transit point, tighter regulatory enforcement on businesses, and concerns over digital market security point to governance and infrastructure gaps that constrain growth.
Ongoing urban infrastructure upgrades, such as underground cabling in Pokhara, and strengthened financial oversight by the FIU signal incremental progress, while China’s robust trade growth provides a contrasting global backdrop that may influence Nepal’s external economic outlook.
NEPSE inches up by 1.52 points as turnover hits Rs 6.20 billion
The benchmark Nepal Stock Exchange (NEPSE) index posted a modest gain of 1.52 points on Wednesday, rising 0.05 percent to close at 2,641.43 points. The market had advanced by 4.90 points on Tuesday after shedding 5.54 points on Monday. Trading remained closed on Sunday due to Prithvi Jayanti. Meanwhile, the Sensitive Index slipped by 0.13 points, or 0.02 percent, to settle at 454.73 points. A total of 12.5 million shares of 320 listed companies were traded through 72,671 transactions during the session, pushing total turnover to Rs 6.20 billion. This compares with a turnover of Rs 6.99 billion on Tuesday and Rs 6.47 billion on Monday. Out of the 13 sub-indices that traded, eight recorded gains while five declined. The commercial bank sub-index fell marginally by 0.08 percent.
Gold and silver prices hit record highs in domestic market
Gold prices surged to a record high in the domestic market on Wednesday. According to the Nepal Gold and Silver Dealers Federation, gold rose by Rs 1,500 to reach Rs 278,000 per tola, the highest level ever recorded. The metal had traded at Rs 276,500 per tola on Tuesday. Silver prices also climbed sharply, increasing by Rs 315 to settle at Rs 5,655 per tola, marking an all-time high. On Tuesday, silver was priced at Rs 5,340 per tola.
Banks cut fixed deposit rates amid excess liquidity
At least a dozen commercial banks have lowered their fixed deposit interest rates for the month of Magh (mid-January to mid-February) due to rising surplus liquidity in the banking system. The average interest rate on individual fixed deposits has fallen by 0.14 percentage points compared to Poush, when it stood at 4.8 percent. Banks that reduced their maximum rates include Agricultural Development Bank, Everest Bank, Siddhartha Bank, Sanima Bank, Laxmi Sunrise Bank, Himalayan Bank, Machhapuchchhre Bank, Citizens International Bank, Kumari Bank, Nepal SBI Bank, and Standard Chartered Bank. Himalayan Bank and Machhapuchchhre Bank recorded the sharpest cuts. For Magh, individual fixed deposit rates range from 4.36 percent to 5 percent across banks.
Citizen Investment Trust posts over Rs 1.25 billion net profit
The Citizen Investment Trust (CIT) recorded a net profit of more than Rs 1.25 billion after tax in the last fiscal year. Of this amount, Rs 251.2 million has been allocated to the general reserve fund, while the remaining profit will be distributed to members as bonuses. The information was shared during CIT’s 31st Annual General Meeting, which concluded on Wednesday. The AGM approved a five percent bonus share and an eight percent cash dividend from last year’s earnings. According to the Trust, net fund collection from various savings schemes stood at Rs 266.65 billion in the previous fiscal year, while the total savings mobilization balance reached Rs 296.89 billion by mid-October of the current fiscal year. The AGM also endorsed the annual report, financial statements, and cash flow details, and unanimously elected Narayan Prasad Ghimire as the representative of general shareholders.
Irregular operation of Tinker border point disrupts local trade
Trade, livelihoods, and cross-border movement in Darchula district have been severely affected due to the irregular operation of the Tinker transit point along the Nepal–China border. The crossing, which is vital for trade, cultural exchange, and pilgrimage, has remained largely inactive since the COVID-19 outbreak in 2020. Local residents and traders say the sporadic opening of the border has crippled business and employment opportunities, leaving them feeling neglected by the state. Yogesh Bohora, a trader from Byas Rural Municipality–1 and a member of the Nepal–China Himalayan Friendship Society, said the border point was opened for only 10 to 15 days during the current fiscal year, making the transportation of goods nearly impossible. He stressed that the Tinker border point, which also holds religious and cultural significance, should be operated regularly to support local livelihoods.
Two firms fined for violating consumer protection laws
The Department of Commerce, Supplies and Consumer Protection has imposed fines on two business firms for violating consumer protection regulations. BS Dhawalagiri Traders was fined Rs 10,000, while Sindhu Materials Pvt. Ltd. was penalized Rs 15,000 following market inspections. The Department said the firms were found operating against the provisions of the Consumer Protection Act, 2075 BS. Of the 14 firms monitored, two were fined, while the remaining 12 were issued corrective instructions. The Department has intensified inspections of businesses selling construction materials and said regular monitoring is being carried out in coordination with local authorities, consumer rights activists, and other stakeholders.
CAN Federation urges government to secure Nepal’s digital marketplace
The CAN Federation has called on the government to make Nepal’s digital marketplace secure, simple, and sovereign. Submitting policy recommendations on the proposed E-commerce Directives 2025, the federation emphasized that the growth of e-commerce depends on security, simplicity, and sovereignty. It recommended the introduction of a National Minimum Security Standard (NMSS) that goes beyond general data protection rules. The federation also proposed issuing a ‘Trust Seal’ to compliant platforms to boost consumer confidence. Senior Vice-President and cybersecurity expert Chiranjivi Adhikari presented the recommendations.
Underground cabling removes overhead wires in Pokhara
The six-lane road stretch from Pokhara International Airport to Prithvi Chowk is now free of electricity poles and overhead internet cables. The Nepal Electricity Authority (NEA) has completed underground electrification for households along this section of the Prithvi Highway. According to the Pokhara–Bharatpur Distribution System Strengthening Project, physical progress has reached 65 percent in Pokhara and 85 percent in Bharatpur. Project Chief Engineer Ananda Subedi said electricity through underground cables has already been supplied to around 600 households. He added that if the current pace continues, the project—scheduled to be completed by June 30—will finish within the current fiscal year.
Financial Information Unit releases annual report for FY 2024/25
The Financial Information Unit (FIU) of Nepal Rastra Bank has released its annual report for the fiscal year 2024/25, outlining efforts to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction. The report includes details of suspicious transaction reports received and analyzed, domestic and international coordination activities, and future strategic priorities. The FIU said it prepared new guidance on information security and confidentiality and updated the Go-AML Operation Guideline during the year. The unit also conducted capacity-building and awareness programs for reporting institutions, regulators, law enforcement agencies, and other stakeholders.
Falling prices raise concerns among broom grass farmers
Farmers growing amliso (broom grass) in northern Morang are increasingly worried as prices continue to fall. While broom grass fetched up to Rs 130 per kg four years ago, farmers are now forced to sell it for Rs 45–48 per kg directly from their fields. In Letang market, prices range between Rs 55 and Rs 60 per kg, which farmers say barely covers transportation and other costs. Adiman Limbu of Letang Municipality–7 said broom grass that sold for Rs 70 per kg last year is struggling to reach Rs 50 this season. Limbu, who cultivates amliso on 50 ropanis of land, said he earned Rs 230,000 last year but expects significant losses this year due to declining prices. Broom grass, along with cardamom and bay leaves, remains a major source of income in the area.
Robbers loot Nepal SBI Bank branch in Sindhuli, guard injured
A group of masked robbers looted a Nepal SBI Bank branch in Ghyanglekh Rural Municipality of Sindhuli district on Tuesday evening, seriously injuring a security guard, police said. According to the District Police Office, around six assailants entered the bank at about 7 p.m., attacked the on-duty guard with a sharp weapon, and forced their way inside. They restrained bank staff before fleeing with cash. The injured guard is receiving treatment at a local health facility. Police have launched an investigation and an intensified search operation, though the exact amount stolen has yet to be confirmed.
China’s foreign trade grows 3.8 percent in 2025, reaches new record
China’s foreign trade expanded by 3.8 percent year on year in 2025, reaching a record value of 45.47 trillion yuan, according to data released by the General Administration of Customs. Exports rose 6.1 percent to 26.99 trillion yuan, while imports increased 0.5 percent to a record 18.48 trillion yuan. This marked the ninth consecutive year of trade growth since 2017 and confirmed China’s position as the world’s second-largest import market for the 17th straight year. During the 14th Five-Year Plan period, China’s cumulative trade exceeded 200 trillion yuan, reflecting a 40 percent increase from the previous plan period.
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