KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mixed but cautious outlook, where weak market sentiment contrasts with an active policy push for structural reform and growth. The continued decline of NEPSE alongside falling gold prices signals investor uncertainty and possible liquidity or confidence constraints, despite high trading volumes.
At the same time, the government is aggressively advancing reforms through its 100-point governance agenda, focusing on energy expansion, investment facilitation, administrative reshuffling, and digital governance, indicating a strong intent to stimulate long-term economic transformation.
Measures such as targeting large-scale power purchase agreements, improving revenue systems, and introducing farmer protections suggest a shift toward productivity and stability. Parallel efforts in infrastructure, agriculture, social services, and labour migration reforms highlight a broader attempt to balance economic modernization with social welfare.
Overall, while short-term indicators point to market fragility, policy direction suggests a reform-driven approach aimed at restoring confidence and sustaining growth.
NEPSE extends losses as all sectors decline
The Nepal Stock Exchange (NEPSE) continued its downward trend on Monday, marking its second consecutive loss this week. The index dropped by 47.71 points (1.65%) to close at 2,831.39, following a steeper fall a day earlier. The Sensitive Index also slipped by 7.90 points (1.61%) to 481.58, while the Float and Sensitive Float indices declined by 1.62% and 2.55%, respectively. Trading activity remained robust, with about 31.6 million shares of 341 companies exchanged, generating a turnover of Rs 12.97 billion. Market breadth remained weak, as only 26 companies posted gains, while 237 declined and five remained unchanged. All 13 sectoral indices ended in negative territory, led by losses in commercial banks, finance, hydropower, and trading.
Gold prices fall by Rs 2,500 per tola
Gold prices declined in the domestic market on Monday, dropping by Rs 2,500 per tola to Rs 285,600. The previous day, gold was priced at Rs 288,500 per tola. Silver prices also saw a slight decrease, falling by Rs 20 per tola to Rs 4,700.
NPC wraps up budget talks with four ministries
The National Planning Commission (NPC) on Monday concluded discussions with four ministries regarding their proposed programmes for the fiscal year 2026/27 budget. In coordination with the Ministry of Finance, the NPC reviewed plans submitted by the Ministry of Home Affairs, the Ministry of Land Management, Cooperatives and Poverty Alleviation, the Ministry of Youth and Sports, and the Ministry of Women, Children and Senior Citizens. These discussions follow a deadline set by Finance Minister Dr. Swornim Wagle for ministries to enter their data into the Line Ministry Budget Information System (LMBIS).
Finance Ministry reshuffles 30 Under Secretaries
In a major administrative move, the Ministry of Finance transferred 30 undersecretaries on Monday to key positions in the Department of Customs, Inland Revenue Department, and provincial economic affairs offices. This marks the first large-scale transfer under Finance Minister Dr. Swornim Wagle and is viewed as an effort to improve revenue collection and strengthen financial governance across different levels of government.
Govt targets 13,000 MW PPAs within 180 days
The government led by Prime Minister Balendra Shah has announced plans to sign Power Purchase Agreements (PPAs) for 13,000 megawatts of electricity within 180 days as part of its governance roadmap. The initiative aims to address longstanding bottlenecks in energy generation, transmission, and export. The Independent Power Producers’ Association, Nepal (IPPAN) welcomed the plan, noting that private sector investment in energy has already surpassed Rs 1.31 trillion. The government also intends to finalize an energy export strategy within a month, focusing on high-value markets.
Govt unveils good governance blueprint 2026
The government has introduced the ‘Good Governance Blueprint, 2026’, aiming to shift from a regulatory to a facilitative approach to attract private investment. The plan proposes amendments to key laws such as the Industrial Enterprises Act and the Technology Transfer Act to create a more stable investment climate. It also includes strengthening the Investment Board Nepal and decentralizing projects below Rs 6 billion to provincial governments, while committing to policy stability for at least a decade.
Govt prioritizes energy and reform for growth
The government’s 100-point reform agenda places the energy sector at the center of economic transformation. Plans include setting up a Prime Minister’s Performance Unit to monitor investment and productivity, simplifying industrial registration processes, and launching a unified ‘One-Door Business Platform’ within 45 days. The Investment Board Nepal is also expected to implement a streamlined approval system to facilitate both domestic and foreign investment.
Govt begins digital land records and anti-encroachment drive
The government has launched a campaign to digitize records of public land and curb illegal encroachment. Under the new plan, authorities will soon begin removing unauthorized structures and reclaiming occupied land. A separate investigation into alleged misuse of land belonging to the Nepal Children’s Organization will also be initiated within 15 days, based on recommendations from the Haribabu Commission. The initiative emphasizes the use of GIS-based systems to ensure transparency in land management.
Cabinet to fix minimum support price for crops
The Council of Ministers has decided to set the Minimum Support Price (MSP) for major crops within 30 days. The move aims to protect farmers from price volatility. The government also plans to ensure payments to farmers within 25 days of purchase, with penalties for delays. Additional measures include establishing at least one cold storage facility per municipality and conducting feasibility studies for district-level storage under public-private partnerships.
DoFE introduces queue-free labour permit system
The Department of Foreign Employment (DoFE) has introduced a ‘queue-free’ system for re-entry labour permits, allowing migrant workers to apply on any day. If required documents are properly submitted, permits will be issued on the same day. The reform is expected to reduce delays and improve service delivery for Nepalis working abroad.
Gandaki assembly passes road act amendment
The Gandaki Provincial Assembly has unanimously approved the amendment to the Gandaki Province Road Act, 2025. Minister for Physical Infrastructure Development and Transport Prakash Bahadur KC said the revision was necessary to address practical challenges in road expansion. He also noted that over 86 kilometres of roads have been blacktopped this fiscal year, while repairs of damaged government buildings are ongoing.
Karnali allocates Rs 34 million for innovation fund
The Karnali Province government has selected seven local units to receive a total of Rs 34 million under the Innovation Partnership Fund. The grants will support projects in digital technology, education, and healthcare. Key allocations include funding for a community hospital in Mugum Karmarong and digital classroom initiatives in Chaurjahari, among others.
Janakpur branch distributes fertilizer worth Rs 433.8 million
The Janakpurdham branch of the Agricultural Inputs Company has distributed chemical fertilizers worth Rs 433.8 million during the first eight months of the fiscal year. This includes thousands of metric tons of urea, DAP, and potash supplied through more than 200 authorized dealers across Dhanusha and Mahottari districts, supporting agricultural production in the region.
KMC launches free cancer screening at Bir Hospital
Acting Mayor Sunita Dangol on Monday inaugurated a free screening programme for breast, uterine, and cervical cancers at Bir Hospital. Supported by Kathmandu Metropolitan City, the initiative screened 136 women on its first day. The campaign aims to promote early detection and reduce fatalities from cancers often diagnosed late due to low awareness and social stigma. The service will continue until May 3, with registration available through local ward health promotion centres.
NEA offers jobs to families of Gen z protest victims
The Nepal Electricity Authority has invited families of 27 individuals who died during the Gen Z protests to apply for employment opportunities. The move follows a directive from the Ministry of Energy, Water Resources and Irrigation and is being implemented under relief guidelines for victims. A 35-day period has been provided to address any claims or objections before finalising the recruitment process.
Nepal Airlines resumes Surkhet–Simkot flights
Nepal Airlines Corporation has restarted flights between Surkhet and Simkot after a suspension of more than a month due to aircraft shortages and adverse weather. The service resumed on Monday, carrying passengers in both directions. Regular flights from Nepalgunj to Simkot have also recommenced, easing travel challenges in the remote Humla district.
Bluehill tourism project added to baglung pride list
Baglung Municipality has included the Bluehill tourism project in Tityang under its ‘Municipality Pride Project’ category, allocating Rs 25 million for the current fiscal year. Situated at 2,000 metres, the site offers views of the Dhaulagiri range and will feature a large Shiva statue, picnic areas, and homestay facilities. Authorities have already invested in initial infrastructure, and a four-kilometre trekking trail is under construction to improve access.
Karnali funds agricultural research and student training
The Karnali Province government has allocated Rs 500,000 to support agricultural research and develop technical manpower. The funds have been provided to the Mid-West University Agricultural Campus in Surkhet for the current fiscal year. The programme is designed to strengthen student capacity and address the shortage of skilled professionals in agriculture. Five students from different districts have been selected for specialised study under the initiative.
Comment