KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape is showing mixed signals as market activity, government interventions, and social policies intersect. The Nepal Stock Exchange (NEPSE) surged 1.63% amid broad-based sectoral gains, reflecting investor optimism, while the Nepal Rastra Bank mopped up Rs 25 billion to manage excess liquidity, highlighting ongoing monetary stabilization efforts.
Commodity markets saw upward pressure with gold and silver prices rising, while SEBON tightened IPO regulations to protect investors from financially weak companies. The Nepal Oil Corporation’s losses are set to decline with reduced duties, but consumers may see no immediate relief.
Social and labor reforms are advancing, with mandatory minimum wages and social security coverage, while rising public transport fares underscore the impact of higher fuel costs. Infrastructural and digital initiatives, such as energy self-sufficiency projects and the Nepal Digital Transformation Project, signal long-term development focus.
At the provincial and local levels, challenges persist: Sudurpashchim Province reports a 10% rise in poverty, Chitwan faces irrigation gaps, wheat farmers struggle without support prices, and contractors in Lumbini seek overdue payments.
Meanwhile, proactive measures include expanded health insurance in Koshi, seed subsidies in Khairahani, new police infrastructure in Myagdi, market inspections by the Department of Commerce, and financial assistance for chronically ill residents in Vyas.
Collectively, these developments reveal a dynamic economic environment where policy interventions, market movements, and social welfare programs are tightly interlinked, balancing growth, stability, and citizen well-being.
NEPSE jumps 45.12 points as all sectors post gains
The Nepal Stock Exchange (NEPSE) climbed 45.12 points, or 1.63%, to close at 2,802.52 on Wednesday. The Sensitive Index rose 5.75 points to 476.88, with the float and sensitive float indices up 1.53% and 1.30%, respectively. A total of 18.8 million shares of 346 companies were traded across 98,162 transactions, generating Rs 8.318 billion in turnover. All 13 sector indices advanced, led by manufacturing and processing, hydropower, and hotel and tourism. Four companies’ shares hit the positive circuit breaker.
NRB mops up Rs 25 billion in excess liquidity
The Nepal Rastra Bank (NRB) mopped up Rs 25 billion from the banking system on Wednesday to manage rising liquidity. Using its deposit collection instrument, the NRB held a bidding session at 3:00 PM for Class ‘A,’ ‘B,’ and ‘C’ financial institutions, requiring a minimum bid of Rs 100 million. The 56-day deposit instrument is set for principal and interest repayment on June 3. This intervention aims to stabilize the financial market by controlling the volume of available funds in the banking sector.
Gold and silver prices rise today
The domestic prices of gold and silver have increased. The Federation of Nepal Gold and Silver Dealers’ Association reports that gold rose by Rs 7,200 per tola to Rs 299,000, up from Rs 291,800 on Tuesday. Silver is trading at Rs 5,025 per tola, up Rs 205 from Rs 4,820 on Tuesday. Last Monday, gold was Rs 291,400 per tola and silver Rs 4,780.
SEBON tightens IPO rules for loss-making firms
The Securities Board of Nepal (SEBON) has rolled out its strictest regulations yet for companies seeking Initial Public Offerings (IPOs). Effective April 14, the “Standards for Review of Financial Statements Submitted for IPOs, 2026” will place loss-making companies and those with weak net worth under mandatory “micro-monitoring.” SEBON’s move ensures greater transparency and robust financial health for firms entering the share market, offering stronger investor protection.
NOC losses set to drop by Rs 1.5 billion
The Council of Ministers has approved a 50% reduction in customs duties and infrastructure development taxes on petrol, diesel, and kerosene to reduce Nepal Oil Corporation’s (NOC) fortnightly losses. NOC Deputy Executive Director Nagendra Sah said this will cut losses by Rs 1.5 billion, down from the current Rs 11.71 billion. Consumers, however, will not see immediate price cuts at the pump. Since FY 2015/16, the government has collected Rs 172.21 billion in infrastructure taxes.
Minimum wage and social security now mandatory for all workers
The Ministry of Labor, Employment and Social Security has issued a circular mandating minimum wages and social security benefits for nurses, health workers, teachers, and other employees. The rule also applies to trainees, guaranteeing sick leave, gratuity, provident fund, and insurance under Section 18(3) of the Labor Act, 2017. Minister Deepak Kumar Shah warned employers failing to comply would face strict legal action, emphasizing the protection of workers’ rights and financial security.
Public transport fares rise amid fuel price hike
The Department of Transport Management has announced new fares for public and freight transport. Passenger fares increased by 16.71%, while freight rates rose 21.68% in hilly areas and 15.75% in the Terai. The Federation of Nepalese National Transport Entrepreneurs cited rising petroleum costs as the reason. Experts warn the hike will push up prices of essentials nationwide.
Fare hike excludes electric vehicles
Authorities clarified that the 16.71% increase in passenger fares does not apply to electric vehicles (EVs). The adjustment affects long-distance routes crossing at least two provinces; local and intra-province fares remain under provincial control. Freight fares rose 21.68% in hills and 15.75% in the Terai.
World Bank discusses digital transformation with minister
A World Bank delegation led by Country Director David Sislen met Minister for Communication and Information Technology Vikram Timilsina to discuss the Nepal Digital Transformation Project, data governance, and IT access expansion. Minister Timilsina highlighted the government’s focus on results-oriented digital infrastructure to improve public service delivery.
Ministry orders action against schools charging illegal fees
The Ministry of Education, Science and Technology has asked the Ministry of Home Affairs and local authorities to enforce legal action against private schools still collecting illegal fees despite an April 5 directive following a Supreme Court order. Section 166(6) of the Education Act, 1971 mandates immediate refunds. A help desk has been set up at the Education and Human Resource Development Center to handle complaints and coordinate enforcement.
Plastic bags thinner than 40 microns banned
The government has issued the “Plastic Bag (Regulation and Control) Directive, 2026,” prohibiting production, import, and sale of plastic bags thinner than 40 microns. Standard bags must be at least 7×14 inches, garbage bags 14×28 inches and black. All bags must display the company name, thickness, and recycle logo in at least 18-point font. The directive introduces Extended Producer Responsibility (EPR), requiring producers and importers to recover 10% of distributed plastic.
Energy minister directs fast-track implementation of priority projects
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has instructed subordinate agencies to prepare a checklist of projects that can be completed within the current fiscal year. Speaking at a meeting with leadership from the Nepal Electricity Authority (NEA) and the Alternative Energy Promotion Centre, Minister Shrestha emphasized policy stability and inter-agency coordination to boost domestic electricity consumption. He also suggested pilot projects for producing energy from waste in partnership with local governments and proposed the establishment of “energy startups.” Water Resources Secretary Sarita Dawadi and Energy Secretary Chiranjivi Chataut briefed the minister on ongoing challenges and strategies for achieving energy self-sufficiency.
Poverty in Sudurpashchim Province rises 10%
Sudurpashchim Province has reported a sharp 10% rise in poverty, from 24.6% in FY 2020/21 to 34.16%. Achham district recorded the highest rate at 49.58%. Dr. Hemraj Lamichhane of the Provincial Policy and Planning Commission said the second five-year plan will focus on job creation, skill development, and rural economic growth through agriculture and tourism to achieve a “Prosperous and Beautiful Sudurpashchim.”
Over 57% of Koshi residents enrolled in health insurance
Koshi Province has achieved a record 57.56% health insurance coverage, well above the national average of 26.54%. Data released on the 10th Health Insurance Day shows that 2,861,852 residents in the province are now insured, with a renewal rate exceeding 73%. The Health Insurance Board has so far disbursed Rs 12.725 billion to 119 registered health facilities for treatment services. The program currently provides free coverage for 278,000 senior citizens and 40,000 female health volunteers in the province.
Lumbini contractors demand unpaid dues of Rs 100 million
Construction companies and suppliers in Lumbini Province have submitted a memorandum to Chief Minister Chetan Narayan Acharya demanding the immediate settlement of long-overdue payments. Businesses, including Rapti Education Enterprises and Bishnu Construction Service, claim they have not been paid for projects completed in fiscal year 2024/25. In Dang alone, the Social Development Division Office owes Rs 27.5 million. Social Development Secretary Diwakar Bhandari confirmed that the total outstanding amount across the ministry is around Rs 100 million, attributing the delays to budget management issues at the Ministry of Economic Affairs.
Irrigation coverage missing in 38% of Chitwan’s farmland
Approximately 38.2% of Chitwan’s cultivated land remains without irrigation facilities, according to the Agriculture Development Office. Of the district’s 48,694 hectares of arable land, 42,550 hectares are under cultivation, with only 61.8% receiving irrigation. While total irrigated area increased to 26,308 hectares this year, coverage in the Narayani Lift and Khageri systems fell by 38%. Infrastructure development, including roads and parks over canal branches in Bharatpur Metropolitan City wards 10, 11, and 12, has significantly hindered the functionality of these irrigation networks.
Khairahani Municipality announces 50% subsidy on rice seeds
Khairahani Municipality has invited farmers to apply for a 50% subsidy on improved summer rice seeds under its food crop promotion program. Agriculture Officer Srijana Shrestha stated that Rs 1 million has been allocated to provide seeds such as Sabitri, Ramdhan, and Hardinath-6. Eligible farmers can receive up to 100 kilograms of seeds, with the application deadline set for April 20. The program aims to boost productivity and agricultural self-sufficiency. Similar subsidies were previously provided for spring rice covering 2,051 hectares in the region.
National economic census to mobilize 5,000 staff from April 15
The National Statistics Office (NSO) will launch the National Economic Census on April 15, deploying around 5,000 staff nationwide. Conducted under a public-private partnership model, the census aims to provide an accurate picture of sectoral contributions to Nepal’s GDP. Deputy Chief Statistician Dhundiraj Lamichhane confirmed agreements with the Confederation of Nepalese Industries (CNI) and the Nepal Bankers’ Association for data sharing and analysis. The NSO assured that data would remain confidential and would not be used for tax assessment purposes, focusing on comprehensive economic analysis instead.
Wheat prices drop as farmers struggle without support price
Farmers in Kailali are facing losses as wheat prices fall to around Rs 3,800 per quintal, down from Rs 4,000 last year. Despite a proposal from the Ministry of Agriculture to the Ministry of Industry, Commerce and Supplies, the government has not yet set an official support price. Farmers say high production costs and recent storm damage have worsened their situation. Traders are selling wheat to flour mills in Nepalgunj and Dhangadhi at approximately Rs 4,000 per quintal, leaving farmers with very low profit margins.
Rs 35 million police post building completed in Myagdi
A new earthquake-resistant building for the Singa Tatopani Police Post has been constructed in Rakse, Beni Municipality-4, at a cost of over Rs 35.1 million. The two-story facility, funded by the Gandaki Province government, includes administrative offices, separate detention cells, and a communication room. Previously operating from rented premises, the post now occupies permanent land provided by the Singa Tatopani Kunda Management Committee, which purchased the 1,017.47 square meter plot using visitor entrance fees.
Department of Commerce fines three firms for market violations
The Department of Commerce, Supplies and Consumer Protection fined three commercial establishments during inspections on April 8, 2026, under the Consumer Protection Act, 2018. Shankar Khadya Kirana Store and MDR Store in Kuleshwor were fined Rs 20,000 each, while Gupta Gudpak Bhandar in Gongabu was fined Rs 5,000. Out of 39 firms inspected, the remaining 36 were issued reformative directives. The inspections are conducted in coordination with consumer rights activists to ensure market transparency.
Local unit grants Rs 3.9 million to chronically ill citizens
Vyas Municipality, Tanahun, has distributed Rs 3.9 million in financial assistance to 266 residents with chronic illnesses. Each patient, including those with cancer, heart disease, and kidney failure, received Rs 5,000 this fiscal year. The municipality also provided free ambulance services to 4,715 individuals, including seniors and low-income patients. Additionally, 5,163 children received Vitamin A supplements, and 789 girls aged 10–14 were vaccinated against cervical cancer with the HPV vaccine.
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