KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments reflect a mixed but revealing picture of Nepal’s economic governance—marked by stronger regulatory intent but persistent structural weaknesses. On one hand, the government is tightening oversight through measures such as capping foreign employment fees, exposing fraud cases, and warning non-compliant cooperatives, signaling a push toward accountability and consumer protection.
On the other, underlying inefficiencies remain evident in weak credit growth despite ample liquidity, continued financial burdens on migrant workers, and gaps in transparency across institutions. Sectoral trends show resilience in areas like horticulture, while infrastructure and service delivery improvements—such as power maintenance and health reforms—are progressing gradually.
Overall, the policy direction suggests increasing state intervention to formalize and regulate the economy, but its effectiveness will depend on consistent enforcement and restoring private sector confidence.
Govt enforces Rs 10,000 cap on foreign employment service fees
The Ministry of Labour, Employment, and Social Security has begun strict implementation of a Rs 10,000 ceiling on service fees charged to migrant workers. Minister Deepak Kumar Shah warned that recruitment agencies exceeding this limit will face legal consequences. Although the rule applies to key destinations such as Saudi Arabia, Qatar, and Malaysia, industry representatives argue that the cap does not reflect actual costs. Data shows only 7% of employers cover all migration expenses, leaving most workers to bear the burden. Authorities have also started questioning outgoing workers at Tribhuvan International Airport to verify fee payments.
DoFE records 352 foreign employment fraud complaints in a month
The Department of Foreign Employment (DoFE) has made public a list of individuals accused of cheating people seeking jobs abroad. The data includes complaints filed at its Investigation and Litigation Branch between March 1 and March 31. During this period, 352 complaints were registered. The department noted that while the number of cases is significant, some complaints involve a large number of defendants—reaching up to 810 in a single case. The disclosure is part of ongoing efforts to curb fraudulent practices in the foreign employment sector.
KMC warns of action against non-compliant cooperatives
Kathmandu Metropolitan City (KMC) has warned that cooperatives failing to submit required reports will face legal action and possible deregistration. Out of around 1,900 cooperatives in the city, only 723 have regularly submitted annual reports. Authorities say that more than half of the institutions lack proper financial transparency, raising concerns about mismanagement and illegal activities. The city has stressed that protecting depositors’ savings will be prioritized before taking closure decisions and has urged the public to verify compliance before investing.
Interest rates decline but credit growth remains weak
Recent data from Nepal Rastra Bank shows that while interest rates have fallen, lending to the private sector has grown modestly by just 4.4%. Total credit reached Rs 5.74 trillion, while deposits increased by 6.6% to Rs 7.74 trillion. The average lending rate for commercial banks dropped to 6.90% from 8.40% a year ago. Despite ample liquidity, private sector confidence remains subdued due to global price pressures and past economic instability. While consumption and construction sectors saw growth, agricultural lending declined.
Nursery sector investment reaches Rs 11.83 billion
Nepal’s nursery and horticulture sector has attracted investment totaling Rs 11.83 billion, according to the Nursery Association Nepal. The country has over 3,900 nursery entrepreneurs generating an annual turnover of Rs 6.43 billion. The floriculture industry alone contributes Rs 2.30 billion, while fruit and herbal nurseries add Rs 1.65 billion and Rs 1.60 billion respectively. Despite this growth, Nepal continues to import floral products worth Rs 3.50 billion each year. The sector currently supports around 120,000 jobs.
Power supply disrupted in Kathmandu for maintenance work
The Nepal Electricity Authority (NEA) carried out a scheduled four-hour power cut in parts of Kathmandu on Saturday. The outage, from 11:00 am to 3:00 pm, affected areas under the Imadol feeder of the Baneshwor Distribution Center. The disruption was necessary to replace aging 11 kV poles in Narephat, near CCRC College, and along Suryakot Marg. The NEA said the work was aimed at improving safety and reliability of the power system and apologized for the inconvenience.
Rolpa to face six-hour daily power cuts for 15 days
The NEA’s Rolpa Distribution Center has announced daily power outages for six hours over a 15-day period starting Sunday. Electricity will be cut from 9:00 am to 3:00 pm until April 19 to facilitate pole relocation along the Madan Bhandari Highway. The outage will mainly affect Madi, Parivartan, and Thabang rural municipalities. Officials said power supply will resume earlier if the construction work is completed ahead of schedule.
Health Ministry reports progress in governance reforms
The Ministry of Health and Population has shared initial progress on its health sector reform agenda. It reported that 32 hospitals—19 private and 13 public—are now providing free treatment on 10% of their beds. Monitoring visits have been conducted at Bir Hospital, Shahid Gangalal National Heart Center, and Kanti Children’s Hospital to improve service delivery. The ministry has also drafted a Hospital Service Improvement Guideline and initiated the establishment of burn treatment facilities in Tikapur, Mahakali, Seti, and Kalaiya hospitals.
Pokhara begins demolition drive to remove Phewa Lake encroachments
Pokhara Metropolitan City has launched a demolition campaign to clear illegal structures around Phewa Lake. The operation began early Saturday morning, removing more than two dozen temporary huts and buildings within the restricted 65-meter zone. The drive, supported by security forces, follows a Supreme Court directive to eliminate encroachments. Authorities also extended action to commercial properties, including the Waterfront Resort, as part of efforts to protect the lake’s ecosystem.
Police detain five middlemen in Rautahat for fraud
Police in Rautahat have arrested five individuals accused of cheating service seekers at government offices. According to Superintendent of Police Sitaram Rijal, the suspects were detained from the Bus Park, District Court, and Land Revenue Office in Gaur for taking money in exchange for facilitating official work. In a separate case, three individuals were also arrested for attempting to cheat during the Secondary Education Examination (SEE) using online methods. Investigations are ongoing.
Free health camp serves 168 visitors at Muktinath
A one-day free health camp organized by the army’s Indrabaksh Battalion in Jomsom provided medical services to 168 pilgrims and tourists at the Muktinath temple. Located at an altitude of 3,800 meters, the site often poses health risks to visitors. The beneficiaries included 122 Nepalis, 40 Indians, and six foreign tourists. A medical team treated conditions such as altitude sickness, respiratory problems, and hypertension, with one patient requiring oxygen support for severe symptoms.
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