KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy and social sectors are showing mixed trends in the current fiscal year 2025/26, reflecting both opportunities and challenges. Newly appointed Finance Minister Dr. Swarnim Wagle has launched reforms targeting bureaucratic inefficiencies, including dissolving the Revenue Investigation Department and amending restrictive laws, signaling a strong focus on systemic economic improvements.
Meanwhile, financial institutions and social security programs reported positive outcomes, with the Employees Provident Fund depositing Rs 5.30 billion in profits and the Social Security Fund disbursing Rs 19.45 billion to contributors, while the Foreign Employment Board provided Rs 730 million in assistance to migrant families.
On the revenue and trade front, Jumla’s Inland Revenue Office fell short of its target due to protests and seasonal slowdowns, whereas Birgunj customs recorded an 11 percent rise in imports. Hydropower production at Marsyangdi has declined to 42 MW due to seasonal water shortages, although the Tanahu Hydropower Project’s transmission line construction has reached 76 percent completion.
Local development projects in Beni and Rolpa show progress in infrastructure and forest-based income generation, while the Chaudhary Group’s $100 million Ritz-Carlton project reflects private sector confidence. Conversely, agricultural sectors are facing setbacks, with a bird flu outbreak causing losses of Rs 26.2 million in Koshi Province. Overall, the data indicate that Nepal is navigating short-term challenges such as seasonal slowdowns, health crises, and energy constraints, while long-term reforms and private investments aim to strengthen economic resilience and social welfare.
EPF deposits Rs 5.30 billion profit into contributors’ accounts
The Employees Provident Fund (EPF) has credited Rs 5.30 billion to contributors’ accounts from profits earned in fiscal year 2024/25. Following a board meeting on Friday, Rs 5.19 billion was allocated to regular provident fund members and Rs 105.5 million to Social Security-based pension contributors. Savers received a 1 percent profit bonus on their initial balances, bringing the total annual return to 5.25 percent. The EPF currently serves 578,000 regular members and 96,000 pension contributors, offering a range of credit and social security benefits.
Gold prices drop in Nepali market
Domestic gold and silver prices fell in Friday’s trading. Gold declined by Rs 4,600 per tola (11.66 grams) and silver by Rs 150 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is now being traded at Rs 281,000 per tola, while silver is at Rs 4,670 per tola. On Thursday, gold was priced at Rs 285,600 per tola and silver at Rs 4,820 per tola.
Finance Minister Wagle assumes office with reform mandate
Newly appointed Finance Minister Dr. Swarnim Wagle officially took office on Friday after being sworn in by President Ram Chandra Paudel. Ranked second in the cabinet of Prime Minister Balendra Shah, Dr. Wagle immediately began implementing recommendations from the High-Level Economic Reform Suggestion Commission 2024. His first actions included dissolving the Revenue Investigation Department and repealing or amending 15 restrictive laws, including the Export-Import (Control) Act 1956 and the Foreign Investment Prohibition Act 1964. An economist with experience at the World Bank and UNDP, Dr. Wagle won his parliamentary seat from Tanahu-1 with 38,040 votes. He pledged to publish a comprehensive “Economic Status Paper” within five days and introduce a 100-day action plan to transition the ministry toward paperless and cashless systems.
Foreign Employment Board provides Rs 730 million in assistance
The Foreign Employment Board has provided Rs 730 million in financial support to the families of 983 deceased migrant workers in the first eight months of fiscal year 2025/26. Executive Director Dr. Dwarika Upreti stated that the increase in compensation to Rs 1 million per family has raised the financial burden on the board. During this period, the board also facilitated the rescue of 601 injured workers and managed 685 deceased cases. Records show that 12,000 young Nepalis have died abroad over the past 12 years, including a record 1,492 deaths in the last fiscal year.
SSF disburses Rs 19.45 billion in claims
The Social Security Fund (SSF) has disbursed Rs 19.45 billion to 277,461 contributors across four major schemes since July 17, 2019. The Old Age Protection Scheme recorded the highest payout of Rs 15.906 billion. Medical and maternity benefits accounted for Rs 2.958 billion, while accidental and dependent family schemes received Rs 589.8 million. Total contributions collected by the SSF have reached Rs 105.26 billion. Currently, 2,873,033 individuals and 23,334 employers are registered with the fund.
Bird flu outbreak destroys poultry worth Rs 26.2 million in Koshi
Koshi Province’s poultry industry is under pressure after bird flu infections were confirmed in 13 farms across Jhapa, Morang, and Sunsari. At least 53,990 layers and 550 broilers were culled, along with 109,421 eggs and 17,350 kilograms of feed, causing estimated losses of Rs 26.2 million. Urlabari and Damak were the hardest hit. Local authorities are monitoring illegal transport to prevent the virus from spreading to hilly districts.
Jumla revenue office collects Rs 217.1 million in eight months
The Inland Revenue Office in Jumla collected Rs 217.1 million in the first eight months of the current fiscal year, falling short of its Rs 264.7 million target for the period from July 17, 2025, to March 14, 2026. The Rs 50 million shortfall is attributed to the Gen Z protest, recent elections, and seasonal economic slowdowns in the Karnali region. With an annual target of Rs 640 million, the office still needs to collect over Rs 430 million in the remaining four months. Efforts are ongoing to improve tax awareness among the region’s 19,042 taxpayers.
Birgunj customs imports surge by Rs 58.91 billion in seven months
Imports through the Birgunj border point reached Rs 595.46 billion in the first seven months of the current fiscal year, an increase of 11 percent or Rs 58.91 billion compared to Rs 536.55 billion in the same period last year, according to the Birgunj Customs Office. Petroleum products and iron dominate imports, with five types of petroleum worth Rs 123.67 billion and iron products worth Rs 52.75 billion. Other major imports include machinery parts valued at Rs 42.48 billion, crude soybean oil at Rs 41.2 billion, and chemical fertilizers worth Rs 28.59 billion.
Marsyangdi Hydropower production drops to 42 megawatts
Electricity generation at the 69-megawatt Marsyangdi Hydropower Center in Tanahu has fallen to 42 megawatts due to the dry season. Reduced snowmelt and lack of rainfall have lowered water levels in the Marsyangdi River. The center, which operates three 23-megawatt turbines, is conserving water during the day to meet peak demand in mornings and evenings. Built in fiscal year 1989/90, the project supplies power to the national grid via substations in Bharatpur and Syuchatar. Production is expected to recover by mid-June with rising temperatures and the onset of monsoon.
Transmission line construction for Tanahu Hydropower reaches 76%
Tree marking has begun in Chitwan to clear the way for the Damauli-Bharatpur 220 kV transmission line under the Tanahu Hydropower Project. An agreement with the Department of Forests and Soil Conservation allows for the removal of 9,127 trees across 92.7 hectares. KEC International Limited, India, has completed 69 out of 94 towers, bringing the progress of package three to 76 percent. Overall, package one, covering dam construction, is 54 percent complete, while package two, including the powerhouse, has reached 73 percent completion, with Sinohydro Corporation, China, finishing most civil works for the underground powerhouse.
Beni Municipality executes ten pride projects worth Rs 62.2 million
Beni Municipality has implemented 10 pride projects this fiscal year 2025/26, focusing on roads, tourism, health, and sports infrastructure. The Beni-Pulachaur-Todke road, with an Rs 18 million allocation, has achieved 20 percent physical progress, while the Beni-Maharanithan-Dandakhet road upgrade, with a budget of Rs 16.5 million, is 40 percent complete. The Galeshwar market beautification project has reached 45 percent completion.
Chaudhary Group to launch $100 million Ritz-Carlton in Kathmandu
The Chaudhary Group (CG) has partnered with Marriott International to bring the luxury brand ‘The Ritz-Carlton’ to Nepal. The ground-breaking ceremony for the project was held in Thamel on Friday. The hotel will be developed on 4,578.60 square meters of land with an estimated investment of USD 100 million. It will feature 150 rooms, branded residences, and a casino. CG Hospitality Global CEO Rahul Chaudhary stated that the project, expected to be completed by mid-2029, reflects private sector confidence in the government led by Prime Minister Balendra Shah. Room rates are expected to exceed USD 1,000 per night, positioning Nepal as a high-end tourism destination.
Rolpa farmers earn Rs 108.9 million from forest products
Farmers in Rolpa have generated approximately Rs 108.9 million from forest resources during the first eight months of fiscal year 2025/26. Resin collection from 135 community forests contributed Rs 22.3 million, while private cultivation of herbs such as Timur and Chiraito brought in Rs 93.5 million. This activity created more than 73,000 local employment days, providing Rs 13.4 million in wages. The local forestry office has achieved 31 percent of its financial target, spending Rs 26.9 million of its annual budget.
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