KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The broader picture that emerges is one of ambition constrained by structural weaknesses and short-term pressures. While the government is setting aggressive targets—such as achieving 7% growth, raising per capita income to $3,000, and massively expanding energy capacity—the current economic fundamentals tell a more cautious story, with growth slowing to 3.5%, rising unemployment driving migration, and increasing reliance on foreign loans over grants.
Positive signals like stock market gains, digital reforms, and infrastructure expansion are offset by deeper inefficiencies, including stalled construction due to rising costs, distorted agricultural markets, and widening trade imbalances.
This suggests a disconnect between long-term policy vision and immediate execution capacity, where external shocks, governance gaps, and weak institutional coordination continue to limit the pace and inclusiveness of economic transformation.
Finance Minister targets $3,000 per capita income within seven years
Finance Minister Dr. Swarnim Wagle has outlined a roadmap aiming for 7% annual economic growth and a per capita income exceeding USD 3,000 within five to seven years. The plan envisions expanding Nepal’s economy to USD 100 billion and transitioning it into a middle-income country. It also includes increasing electricity capacity to 15,000 MW within five years and completing all national pride projects within two years to boost investment and employment.
Finance Ministry forecasts modest 3.5% economic growth
The Ministry of Finance has projected Nepal’s economic growth at 3.5% for the current fiscal year 2025/26, indicating a slowdown compared to neighboring countries. Over the past decade, average growth has stood at 4.2%, ranging from a contraction of 2.4% to a peak of 9%. The economy had expanded by 4.61% in the previous fiscal year, suggesting a recent deceleration in economic activity.
NEPSE rises 7.73 points as turnover reaches Rs 4.74 billion
The Nepal Stock Exchange (NEPSE) index increased by 7.73 points on Monday, closing at 2,796.43—up 0.27 percent. The Sensitive Index also gained 1.64 points to reach 469.72. A total of 10.92 million shares of 351 companies were traded through 81,006 transactions, generating a turnover of Rs 4.748 billion. Market sentiment remained positive, with 157 companies advancing, 102 declining, and 10 unchanged. Eight sector indices recorded gains, led by development banks and manufacturing, while five sectors declined. Three companies hit the 15 percent positive circuit breaker.
Govt signs $40 million digital transformation loan with ADB
The government has signed a concessional loan agreement worth USD 40 million with the Asian Development Bank (ADB) for the Nepal Digital Transformation Project. This marks the first initiative in South Asia to adopt a co-financing model between ADB and the World Bank, which has already committed USD 50 million. The project aims to strengthen cybersecurity systems and modernize digital public services. Finance Secretary Dr. Ghanshyam Upadhyay and ADB Country Director Arnaud Cauchois signed the agreement, aligning it with the government’s 100-day governance agenda and the 16th five-year plan.
Foreign loans dominate external aid at 81.1%
Foreign loans now make up 81.1% of Nepal’s external assistance, reflecting a significant shift from grants over the past decade, according to the Ministry of Finance. Grants have dropped to 18.9%, compared to 42.6% in 2014/15. Overall foreign aid is also declining, now accounting for 14.6% of the current budget, down from an average of 21.5% over the past 10 years.
Government collects Rs 1.319 billion in first month
The Rastriya Swatantra Party-led government has collected Rs 1.319 billion in revenue within its first month after taking office on March 27. This marks an increase of Rs 23.21 billion compared to the same period last year. However, economists caution against viewing this as a sign of reform, noting that the rise is partly due to a stronger US dollar and higher imports. The government has also enforced mandatory customs duties on goods valued above Rs 100 to reduce revenue leakage.
Gold and silver prices rise
Gold prices increased by Rs 1,300 per tola on Monday, reaching Rs 300,500, up from Rs 299,200 the previous day. Silver prices also rose by Rs 50 to Rs 5,045 per tola. In the international market, gold is trading at USD 4,724.31 per ounce, while silver stands at USD 76.44 per ounce.
Ministry launches revolving fund to repay cooperative savers
The Ministry of Land Management, Cooperatives, and Poverty Alleviation has introduced a revolving fund to refund savings to victims of troubled cooperatives. The scheme prioritizes deposits up to Rs 500,000, along with senior citizens, single women, and people with disabilities. The fund will be financed through government support, asset sales, and recoveries from responsible officials. Claimants must submit required documents, after which payments will be transferred directly to their bank accounts.
Unemployment reaches 12.6% amid rising migration
Nepal’s unemployment rate has climbed to 12.6%, according to the Fourth Nepal Living Standards Survey, contributing to increased dependence on foreign employment. Over the past decade, labor permit issuance has grown by an average of 28.6% annually. In 2024/25, 839,000 workers received permits, while 557,000 have already done so in the current fiscal year up to March 26. While remittances support short-term stability, concerns remain over long-term impacts such as brain drain and labor shortages.
Government unveils plan to generate 24,500 MW by 2036
The government has released the Energy Consumption Growth and Export Strategy, 2026, setting an ambitious target to produce 24,500 megawatts of electricity by the fiscal year 2035/36 through joint investments from the public, private, and government sectors. The strategy prioritizes the completion of the 1,200 MW Budhigandaki Storage Project by 2024/25 and the 670 MW Dudhkoshi Storage Project by 2034/35. It also includes plans to develop 1,000 MW of solar energy by 2028/29 and construct 14 domestic and 10 cross-border transmission lines to boost regional energy trade.
Investment Board launches one-stop digital service portal
Investment Board Nepal has launched a digital one-stop service portal (ossc.ibn.gov.np) to simplify investment procedures. The platform integrates 14 government agencies, enabling services such as company registration, tax processing, and labor permits online. It also facilitates land acquisition, environmental approvals, and visa processing, reducing the need for physical visits and improving the investment climate.
Dhanusha tops labor migration with 28,582 permits issued
Dhanusha district recorded the highest number of migrant workers, with 28,582 labor permits issued in the first nine months of the current fiscal year, according to the Department of Foreign Employment. Jhapa ranked second, followed by Morang and Mahottari with 23,354 and 20,172 permits respectively. Siraha and Sarlahi also reported high numbers, indicating a strong migration trend from Madhesh and Koshi provinces.
Rasuwagadhi border handles Rs 31.3 billion in imports
Goods worth Rs 31.3 billion were imported through the Rasuwagadhi border point during the first nine months of fiscal year 2025/26. The Raswa Customs Office collected Rs 6.42 billion in revenue from imports, mainly electric vehicles, garments, and construction materials. Exports to China stood at around Rs 650 million. Operations had been disrupted after floods destroyed the Miteri Bridge in July 2025 but fully resumed on January 1, 2026.
Smartphone imports hit record Rs 33.82 billion
Nepal recorded smartphone imports worth Rs 33.82 billion in the first nine months of fiscal year 2025/26, marking a decade-high. An additional Rs 722.2 million was spent on feature phones. Officials attribute the surge to stricter enforcement of mobile device regulations and growing demand for digital content creation. China remained the largest supplier, followed by India.
Contractors demand price revision amid soaring material costs
Construction entrepreneurs have called for a “construction holiday” and immediate price adjustments, citing a sharp rise in raw material costs ranging from 40% to 120%. In districts like Kailali and Dadeldhura, the price of bricks has increased from Rs 11 in mid-February to Rs 14.5 by mid-April. Cement and iron rod prices have risen by 20% to 25%, while materials such as plastic and copper have surged by up to 80%. Transport costs have also more than doubled, with the cost of delivering a truckload of cement rising from Rs 20,000 to Rs 45,000.
Dodhara Chandani dry port construction gains momentum
Construction of the Dodhara Chandani Dry Port in Kanchanpur is progressing steadily, with physical progress exceeding 8%. The project, being executed by Indian contractor Compt Construction under a Rs 2.4 billion agreement funded by the Government of India, includes administrative buildings, warehouses, and quarantine facilities across 25.3 hectares. It is expected to be completed within 24 months. Supporting infrastructure includes an 8-kilometer, six-lane access road from Gaddachauki to the Malaria stream.
Construction begins on 65 MW Myagdi Khola hydropower project
Work has started on the 65 MW Myagdi Khola Hydropower Project in Bagara, Dhaulagiri Rural Municipality-4. Developed by Hydro Village at an estimated cost of Rs 13 billion, the project aims to begin power generation by mid-April 2028. Key infrastructure includes a 3,600-meter tunnel and an underground powerhouse. An Army base camp is being set up in Bhaisikharka to facilitate controlled use of explosives, and a 132 kV transmission line will connect the project to the national grid at Dandakhet.
E-pension service launched in Jumla
The federal government has introduced an e-pension service in Jumla for the first time, benefiting permanent civil servants. Initiated by the Ministry of Finance, the system enables retirees to receive pension-related services, including authorization letters and payments, within the district. The first beneficiary was a retired agriculture officer from Chandannath Municipality. The service eliminates the need to travel to Kathmandu, saving time and costs for retirees in remote areas.
Pokhara City Hall to be rebuilt at a cost of Rs 290 million
Pokhara Metropolitan City, in collaboration with the Town Development Fund, has signed an agreement to reconstruct the 42-year-old City Hall with an investment of Rs 290 million. The project includes an underground parking facility, an exhibition hall, a new canteen, and a smaller assembly hall. Modern upgrades such as digital LED screens and improved seating and kitchen facilities are also planned. The city aims to recover costs through revenue generated from hall usage.
Lemon prices soar to Rs 450 per kg at Kalimati
Lemon prices have surged sharply at the Kalimati Fruit and Vegetable Market due to supply shortages. The average wholesale price reached Rs 375 per kg on Monday, with some traders reporting prices as high as Rs 450. This marks a significant increase from Rs 230 just a month ago. With domestic production meeting only 10% of demand, the market remains heavily reliant on imports from India, where rising prices have driven the spike.
Chitwan farmers forced to sell vegetables at throwaway prices
Farmers in Chitwan are facing heavy losses as vegetable prices have dropped to as low as Rs 5 per kg. In areas like Bharatpur Metropolitan City-25, producers are leaving crops unharvested due to unviable market rates. While farmers receive minimal returns, consumers are paying Rs 70–80 per kg, highlighting a wide gap driven by intermediaries. Farmers have formed a committee to protest against market distortions.
Snow Rivers Limited to open IPO on May 12
Snow Rivers Limited is set to issue its IPO to the general public from May 12. The offering includes 778,125 shares priced at Rs 100 each, amounting to Rs 77.8 million. This follows earlier allocations to project-affected locals and Nepalis working abroad. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares until May 15.
Over 100 suspension bridges fall into disuse in Baglung
More than 100 suspension bridges in Baglung have become redundant due to road expansion and the construction of motorable bridges. In Kathekhola Rural Municipality, a Rs 36.2 million motorable bridge at Dudiyaghat has replaced a nearby suspension bridge built just seven years ago. Similarly, a Rs 33.1 million bridge in Lama Bagar has rendered an adjacent pedestrian bridge obsolete. Local authorities are now considering relocating these structures to remote areas where they are still needed, as many unused bridges along the Mid-Hill Highway are deteriorating.
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