KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape currently reflects a mix of market volatility, policy transition, and structural challenges. While the Nepal Stock Exchange experienced a sharp decline despite record trading volume, rising gold and silver prices indicate investors may be shifting toward safer assets amid uncertainty.
At the same time, the government’s plan to raise domestic debt and the vacancy of deputy governor posts at Nepal Rastra Bank highlight an ongoing financial and institutional transition. External factors—such as fluctuating global oil prices linked to tensions involving the United States, Israel, and Iran—are also influencing Nepal’s economic outlook.
Domestically, issues like LPG shortages, black marketing, stalled infrastructure projects, and delayed procurement contracts reveal persistent governance and supply-chain constraints, even as development initiatives—such as digital transformation funding from the Asian Development Bank and expanding agricultural and tourism activities—signal gradual progress in modernization and regional economic diversification.
NEPSE index declines 32 points despite heavy trading
The benchmark index of the Nepal Stock Exchange (NEPSE) dropped 32.08 points on Tuesday, closing at 2,843.35. Despite the fall, trading activity surged to an eight-month high, with total transactions reaching Rs 21.50 billion. Out of the traded companies, 78 recorded gains while 178 declined, with the banking and finance sectors falling by more than 1 percent and 2 percent respectively. Only the life insurance and non-life insurance sectors posted slight increases. Shares of companies such as Ngadi Group and Ankhu Khola Hydropower recorded the highest trading volume. The volatility follows Sunday’s session, which ended early after the market hit a 6 percent positive circuit breaker.
Gold and silver prices rise in domestic market
Prices of gold and silver increased in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold rose by Rs 3,800 per tola to Rs 317,000, while silver increased by Rs 310 to Rs 5,720 per tola. On Monday, gold was traded at Rs 313,200 per tola and silver at Rs 5,410.
Govt plans to mobilize Rs 6 billion through development bonds
The Government of Nepal is preparing to raise Rs 6 billion in domestic debt by issuing Development Bond 2087. According to the Public Debt Management Office under the Ministry of Finance Nepal, the bond has a five-year maturity period and aims to mobilize internal financial resources. The bidding process began yesterday, with formal issuance scheduled today. Banks, financial institutions, insurance companies, corporate entities and individual Nepali citizens can participate. The interest rate will be determined through a Dutch auction system, and the bonds can also be used as loan collateral.
Deputy Governor posts at NRB become vacant
Two Deputy Governor positions at Nepal Rastra Bank became vacant on Monday after the completion of the five-year terms of Neelam Dhungana Timsina and Bam Bahadur Mishra. As per the NRB Act, Governor Biswo Nath Poudel must recommend four candidates from among the 18 executive directors to the Cabinet for appointment. Although the current interim government is nearing the end of its tenure, sources say the selection could still be finalized in coordination with the incoming leadership of the Rastriya Swatantra Party. Analysts stress that appointing qualified officials will be crucial to maintain the central bank’s stability during the political transition.
ADB approves $40 million for Nepal’s digital transformation
The Asian Development Bank (ADB) has approved a USD 40 million concessional loan—about Rs 5.92 billion—to support Nepal’s Digital Transformation Project. The initiative, jointly funded with the World Bank, aims to improve cybersecurity, government data infrastructure and integrated citizen service portals. ADB’s Nepal Country Director Arnaud Cauchois said digitizing 11 key public services will reduce delays and enhance transparency. The project will be implemented by the Ministry of Communication and Information Technology Nepal and will create a national data exchange platform linking federal, provincial and local systems.
Over 57,000 Nepalis register amid West Asia tensions
More than 57,100 Nepali citizens have submitted their details through an online registration system launched by the Ministry of Foreign Affairs Nepal. The initiative, managed by the Department of Consular Services Nepal, aims to monitor the safety of migrant workers in Gulf countries as tensions escalate in West Asia due to the conflict involving the United States, Israel and Iran. Authorities say limited flights remain available from some locations and advised those wishing to return through Saudi Arabia to coordinate with Nepali diplomatic missions. Officials are reviewing the data to prepare potential evacuation or emergency support plans.
Finance Minister Khanal returns diplomatic passport
Finance Minister Rameshore Prasad Khanal has returned his diplomatic passport to the Ministry of Foreign Affairs Nepal. In a letter submitted through the ministry’s administrative division, Khanal stated that the document, issued for official duties during his ministerial tenure, was no longer required. A former finance secretary, Khanal joined the interim government after the Gen Z protests of September 2025. While he publicly confirmed the passport’s return, other departing ministers have yet to announce similar actions.
Global oil prices fall six percent
International oil prices dropped to around USD 93 per barrel on Tuesday after Donald Trump warned Iran against blocking the Strait of Hormuz, a key route for about 20 percent of global oil supply. Prices had climbed close to USD 120 on Monday due to rising tensions among the United States, Israel and Iran. However, markets eased following signals that the conflict might de-escalate. The Islamic Revolutionary Guard Corps (IRGC) has rejected negotiations, keeping the situation tense. Energy ministers from the Group of Seven are expected to meet soon to discuss supply stability.
NOC tells gas industries to prioritize households
Nepal Oil Corporation has directed gas producers to maintain transparent distribution records to address the ongoing LP gas shortage. Spokesperson Manoj Thakur said companies must submit daily reports indicating which dealers receive gas supplies. Dealers must also record consumer details, including contact numbers. The corporation stressed that household demand must be met before commercial distribution. Despite India’s 25-day refill restriction, Thakur said Nepal’s overall consumption remains manageable.
NOC bans sale of fuel in bottles and jerrycans
Nepal Oil Corporation (NOC) has ordered petrol pumps to stop selling petroleum products in bottles and jerrycans due to safety risks. In a directive signed by depot chief Ranjit Kapadi and sent to the Nepal Petroleum Dealers’ Association in Dhanusha and Mahottari, the corporation warned that such practices increase the risk of fires and explosions. Monitoring will be intensified, and any violations could lead to disciplinary action under NOC regulations.
Procurement watchdog seeks clarification from 12 suppliers
The Public Procurement Monitoring Office has given 12 construction firms and suppliers seven days to explain why they should not be blacklisted. The notice was issued after the companies failed to respond to earlier warnings within the initial 30-day period. Several public agencies had requested their blacklisting due to contract violations. If the firms fail to provide adequate explanations within a week, they will be barred from government procurement projects nationwide.
Nepal Airlines plans daily flights to Karnali’s remote districts
Nepal Airlines Corporation is preparing to operate daily flights to remote districts including Humla, Mugu, Jumla and Dolpa. The decision followed discussions between Gen-Z activist Anil Baniya and NAC executive director Amritman Shrestha. The airline plans to station one aircraft at Nepalgunj Airport while using Surkhet as a secondary hub.
Budget shortage stalls 70 projects in Sudurpashchim
Around 70 infrastructure projects in Sudurpashchim Province remain incomplete due to budget constraints and contractor delays. Since fiscal year 2020/21, contracts worth Rs 11.75 billion have been awarded for 16 bridges and 54 road projects, of which Rs 9.96 billion has already been spent. According to provincial ministry spokesperson Subik Shrestha, an additional Rs 1.169 billion is required to complete the works. Long delays—such as the six-year lag in the Gauriganga bridge project—have forced residents in districts like Bajura to transport goods through neighboring provinces.
LPG industry calls for action against overpricing
The Nepal LP Gas Industry Association has urged authorities to take strict legal action against retailers charging more than the official price for cooking gas. In a statement issued Tuesday, the association warned that creating artificial shortages or charging excessive prices during a crisis is a serious offense. District-level bodies have been asked to identify businesses involved in such activities and report them for legal action under consumer protection laws.
Market monitoring resumes after election break
The Department of Commerce, Supplies and Consumer Protection has resumed regular market inspections after suspending them during the House of Representatives elections. In a recent operation, officials inspected 17 companies. Sujal Traders was asked to appear before the department within three days with relevant documents after irregularities were detected, while 16 other businesses were issued corrective warnings. Authorities said inspections will continue with the involvement of local representatives and consumer groups.
Gas shortage sparks black marketing in Siraha
Residents in Siraha District say a shortage of cooking gas has led to sharp price hikes. Although the official price is Rs 1,910 per cylinder, some retailers are reportedly charging as much as Rs 4,500, according to consumers including Pintu Raut and Pramod Yadav. Assistant Chief District Officer Chet Raj Baral warned that authorities will take strict action against those creating artificial shortages.
Traditional footpath restored in Myagdi
A historic walking trail connecting Rahughat and Piple Bagaincha in Myagdi District has been reconstructed after being displaced by road expansion two decades ago. The project was supported by the Integrated Service Office with funding from the Gandaki Province Government. It includes 80 meters of concrete stairs and 137 meters of railings. Local consumer committee chair Lekhnath Sharma said the project received Rs 500,000 in provincial funding.
Sunflower farm boosts tourism in Bharatpur
A sunflower garden covering 16,931 square meters in Bharatpur has become a popular tourist attraction, drawing 400–500 visitors daily. Organic farmer Chandra Prasad Adhikari established the farm to promote agro-ecotourism and encourage youth engagement. Besides tourism, the farm produces organic sunflower oil sold at the Organic Mart in Kathmandu.
Farmers in Bhojpur turn to commercial fruit farming
Farmers in Bhojpur District are gradually shifting from subsistence farming to commercial fruit cultivation. With support from the local government, farmers like Sita Khadka have started growing oranges, avocados, lemons and junar. Ward chair Ramu Thapa Magar said programs such as “One House–One Tunnel” and irrigation ponds are helping expand production.
Unseasonal rain damages crops in Rupandehi
Heavy rainfall has damaged wheat and mustard crops in Rupandehi District, particularly in Siddhodhan Rural Municipality. Agriculture officials say wheat fields were flattened just before harvest, increasing the risk of rot. According to extension officer Bivek Panta, the rainfall benefited maize and vegetables but harmed ready-to-harvest crops.
Millet production rises in Udaypur
Millet output in Udaypur District has increased significantly this year due to favorable rainfall. According to the District Agriculture Knowledge Center, production reached 5,455 metric tons, up from 4,680 metric tons last year. Cultivation now spans 2,765 hectares, mainly in Tapli, Rautamai and Limchungbung.
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