KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal witnessed mixed economic, financial, and governance developments, with the NEPSE index posting a marginal 1.53-point gain on moderate turnover, while gold and silver prices fell sharply. Authorities arrested three customs officials at Tribhuvan International Airport on bribery charges, and the Health Insurance Board capped annual OPD coverage at Rs 25,000 to rein in rising deficits.
Commercial banks reported a 3.72 percent rise in net interest income to Rs 96.51 billion, alongside an improvement in the financial inclusion index to 0.53, signaling broader access to banking services. Insurers settled Rs 6 billion in claims related to protest-related damages, while real estate capital gains tax revenue rose by Rs 830 million despite fewer transactions.
Local governments recorded increased revenue from heli-tourism and social welfare initiatives, even as infrastructure projects faced implementation challenges. Progress continued on major energy projects, including the Tanahu hydropower project and Karnali’s first 132 KV transmission line, while market regulators fined firms for violations, development banks announced dividends, and small contractors in Banke reported rising exits due to delayed payments.
NEPSE inches up by 1.53 points with turnover reaching Rs 8.22 billion
The Nepal Stock Exchange (NEPSE) posted a marginal gain of 1.53 points, or 0.05 percent, on Monday to close at 2,695.73, recovering slightly from Sunday’s sharp 19.85-point decline. The Sensitive Index, however, slipped by 0.75 points to settle at 459.16. A total of 17.5 million shares of 330 listed companies were traded through 91,061 transactions, generating a turnover of Rs 8.223 billion. Among the 13 sector indices, five ended in positive territory while eight declined. Hotel and Tourism led the gainers with a rise of 1.77 percent, followed by Manufacturing and Processing at 1.45 percent. Finance (-0.89 percent) and Commercial Banks (-0.09 percent) were among the losers. Share prices of 114 companies advanced, 135 declined, and 13 remained unchanged.
Gold and silver prices decline sharply
Gold and silver prices fell significantly in the domestic market today, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold dropped by Rs 13,400 per tola to trade at Rs 286,600, down from Rs 300,000 on Sunday. Silver also declined by Rs 300 per tola and is currently being traded at Rs 5,200.
Three customs officials arrested at TIA with bribe money
The Commission for the Investigation of Abuse of Authority (CIAA) has arrested three officials from the Foreign Postal Customs Branch at Tribhuvan International Airport for allegedly accepting bribes. Those detained include Customs Officer Indra Neupane, office assistant Ganesh Prasad Pudasaini, and first-class non-gazetted officer Chhabi Prasad Rijal. During the operation, investigators seized Rs 268,288 in cash and 23 mobile phones. The arrests followed complaints that officials were harassing and extorting individuals sending parcels abroad. CIAA spokesperson Suresh Neupane said Rs 146,420 was recovered from Pudasaini’s office alone, including Rs 10,000 identified as bribe money.
Health Insurance Board limits OPD coverage to Rs 25,000
The Health Insurance Board has capped annual outpatient department (OPD) service coverage at Rs 25,000 per insured household. Information Officer Bikesh Malla said the new provision will come into effect from February 13. Previously, OPD services were covered without a specific sub-limit under the total insurance ceiling. The board said the decision was taken to manage financial strain, as OPD claims account for 71 percent of total insurance claims. While the board’s annual income stands at around Rs 14 billion, expenditures have exceeded Rs 24 billion, causing delays in payments. Currently, a premium of Rs 3,500 covers a family of five for treatment expenses of up to Rs 100,000.
Commercial banks record Rs 96.51 billion in net interest income
Nepal’s 20 commercial banks earned a combined net interest income of Rs 96.51 billion by mid-January, marking a 3.72 percent increase compared to the same period last year. Nabil Bank topped the list with Rs 8.8 billion in net interest income, followed by Global IME Bank at Rs 8.2 billion. While 14 banks reported growth, six banks—including NIC Asia and Standard Chartered—saw a decline. Rastriya Banijya Bank registered the highest growth rate at 38.49 percent.
Financial inclusion index climbs to 0.53 in FY 2025/26
Nepal Rastra Bank has reported a rise in the Financial Inclusion Index from 0.47 to 0.53 in the current fiscal year. The improvement has been attributed to broader access to banking services, increased digital transactions, and better service quality. According to the NRB’s Financial Inclusion and Consumer Protection Division, the access index reached 0.53, while usage and quality indices stood at 0.54 and 0.50, respectively. Officials said improved financial literacy and consumer protection measures have encouraged greater participation in formal banking. Future priorities include enhancing digital infrastructure and strengthening transparency.
Insurers settle Rs 6 billion in claims from ‘Gen Z protest’ damages
Insurance companies have paid Rs 6 billion in claims related to physical damage caused during protests held on September 8 and 9, 2025. As of January 19, total claims had reached Rs 23.772 billion—the highest damage claim figure recorded so far, surpassing losses from the 2015 earthquake. The Nepal Insurance Authority reported that motor vehicles accounted for 70.54 percent of claims, with Rs 1.702 billion already paid for vehicle-related damage. Bagmati Province recorded the highest number of claims at 1,828, representing 54 percent of the total.
Real estate capital gains tax rises by Rs 830 million
Capital gains tax collected from real estate transactions increased by Rs 830 million in the first six months of the current fiscal year, reaching Rs 8.28 billion. According to the Department of Land Management and Archive, although the number of registered land transactions dropped by 7,000 to 702,000, total revenue rose to Rs 21.95 billion. The government levies a 5 percent tax on properties sold within five years of purchase and 2.5 percent on those held longer. Monthly capital gains tax collection averaged Rs 1.38 billion during the period.
Annapurna rural municipality collects Rs 8.2 million from heli-tourism
Annapurna Rural Municipality in Kaski has generated Rs 8.2 million in revenue from helicopter flights to Annapurna Base Camp over the past 10 months. Chairman Bishnu Bahadur KC said registered operators are charged Rs 10,000 per flight, while unregistered operators pay Rs 20,000. Air Dynasty Heli Services contributed the highest amount at Rs 3.7 million, followed by Simrik Air at Rs 2.5 million. The funds will be used for infrastructure development, including helipads, alongside six planned hydropower projects.
Dang water supply office spends nearly half of its budget
The Water Supply and Sanitation Office in Dang has utilized 48.57 percent of its allocated budget, amounting to Rs 8.33 billion, during the first half of the fiscal year. After budget revisions, the total allocation stood at Rs 171.6 million. Office Chief Tilak Neupane said the Terai-Madhesh Water Improvement Program achieved full expenditure of its Rs 1.25 billion budget. However, only 97 of the 208 planned provincial projects have been implemented, with challenges including drying water sources, coordination gaps, and delays in receiving smart meters.
Local unit offers Rs 3,000 incentive for birth of girl child
Beldandi Rural Municipality in Kanchanpur has introduced a Rs 3,000 incentive for mothers who give birth to daughters, aiming to curb gender discrimination and sex-selective abortions. Under the ‘Vice-Chairperson’s Gift’ program launched in FY 2022/23, 353 mothers have benefited so far, including 40 in the current fiscal year. Vice-Chairperson Shanti Nath said applicants must submit marriage and birth registration documents. The municipality also provides free ambulance services for pregnant women and a monthly allowance of Rs 2,500 for unmarried women above 35.
NEA chief reviews progress of 140 MW Tanahu hydropower project
Nepal Electricity Authority Executive Director Hitendra Dev Shakya has inspected the 140 MW Tanahu Hydropower Project and instructed officials to complete construction within the scheduled timeframe. Project Chief Shyamji Bhandari reported that dam construction has reached 47 percent completion, with concrete work underway on the 140-meter-high structure. The powerhouse section is 72.5 percent complete, while transmission line construction has progressed to 74.5 percent. The USD 505 million project is funded by ADB, JICA, and the European Investment Bank.
Three firms fined during market monitoring drive
The Department of Commerce, Supplies, and Consumer Protection has fined three firms for violating the Consumer Protection Act 2018 during routine market inspections. Pokhrel Traders was fined Rs 15,000, Sulabh Kirana and Food Suppliers Rs 10,000, and Shital Food Store Rs 5,000. Another firm, Chiya Katero Pvt Ltd, has been ordered to appear before the department with valid documents. Ten other businesses were issued corrective instructions to ensure compliance.
Karnali Province activates its first 132 KV transmission line
The Nepal Electricity Authority has energized the first 132 KV transmission line in Karnali Province, connecting Kohalpur and Surkhet over a 52-kilometer stretch. The new line is expected to resolve persistent low-voltage problems and frequent outages previously caused by reliance on a 33 KV system. NEA Executive Director Hitendra Dev Shakya said the project will support industrial growth and economic development. Work on the Surkhet–Dailekh extension will now be accelerated.
International Dairy Expo to host over 100 stalls in Bharatpur
The International Dairy Expo will be held from February 8 to 12 at the Chitwan Exhibition Center in Bharatpur. Organized by the Chitwan District Milk Producers Cooperative Association and the Chitwan Association of Industry, the expo will feature more than 100 stalls from Nepal and India showcasing dairy machinery, veterinary products, and processed milk items. Organizers expect around 50,000 visitors.
Eight development banks announce dividends up to 18.20 percent
Eight development banks listed on NEPSE have declared dividends from last year’s profits. Muktinath Bikas Bank announced the highest dividend at 18.20 percent, followed by Kamana Sewa at 15.78 percent. Shine Resunga and Garima Bikas Bank declared dividends of 13 percent and 10.53 percent, respectively. Green Development Bank announced the lowest at 8.46 percent. Several banks are yet to hold their AGMs despite the six-month legal deadline.
Small contractors in Banke exit industry amid payment delays
About 10 percent of small construction contractors in Banke leave the profession each year due to delayed payments, according to the local contractors’ association. Out of 653 registered members, many are struggling to service bank loans and face the risk of blacklisting. Although development projects worth Rs 8–10 billion are underway, delayed fund disbursement by government agencies has pushed the sector into crisis.
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