KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Taken together, the developments point to a cautiously positive but uneven economic trajectory, where strong revenue performance and steady infrastructure expansion are offset by structural frictions and implementation risks.
Customs data from Mechi and Birgunj suggest resilient government income streams driven largely by high-value imports like fuel, even amid policy disputes such as the MRP-triggered boycott, highlighting both fiscal stability and dependence on import-based revenue.
Simultaneously, progress in major road and hydropower projects, along with new transmission and rural connectivity infrastructure, signals sustained public investment aimed at long-term productivity gains and energy security.
However, delays in western sections, reliance on external financing, and localized protests underline execution challenges. Meanwhile, initiatives like maternal nutrition grants and traditional economic activities such as honey hunting reflect ongoing efforts to balance growth with social welfare and local livelihoods.
The upcoming regional trade fair further indicates a push toward external engagement and export promotion, while stricter traffic enforcement in Kathmandu points to governance tightening at the urban level—collectively illustrating a state striving to modernize, but still navigating institutional, economic, and social complexities.
Mechi customs surpasses monthly revenue target by 94%
The Mechi Customs Office collected Rs 13.144 billion in revenue by mid-April in the current fiscal year 2025/26, achieving 69.83 percent of its annual target of Rs 18.877 billion. In the month of Chaitra alone, it mobilized Rs 1.606 billion, reaching 94.69 percent of its monthly goal. Data shows the highest monthly collections were recorded in Falgun at Rs 1.65 billion and Poush at Rs 1.58 billion. Revenue collection has remained steady across all nine months, with the lowest intake of Rs 1.26 billion recorded in the first month of the fiscal year.
Rs 17 billion Narayangadh-Butwal road eastern section connected with paving
The Narayangadh-Butwal Road Extension Project has marked a key achievement with the completion of one-way concrete paving in the Daunne section, a 4-kilometer stretch previously prone to traffic congestion during rainfall. With this progress, the entire 65-kilometer eastern segment is now linked through either blacktopped or concrete roads. Construction began in the fiscal year 2019/20 under a contract with China State Construction Engineering Corporation, supported by a loan from the Asian Development Bank (ADB). The total cost of the 113-kilometer project, covering both eastern and western sections, is estimated at Rs 17 billion. While the eastern section is expected to be fully operational for smooth travel within two weeks, work on the western section is still underway.
Birgunj customs collects Rs 3.15 billion despite importer boycott
The Birgunj Customs Office generated Rs 3.15 billion in revenue even as importers and exporters staged a three-day boycott against the mandatory implementation of maximum retail price (MRP) rules. The bulk of the revenue came from the clearance of petroleum products, industrial inputs, and perishable items such as fruits and vegetables. Daily figures show collections of Rs 350 million on April 28, rising sharply to Rs 1.90 billion on April 29 and Rs 900 million on April 30. Although general traders halted participation in customs clearance from April 28 in protest of the policy, high-value fuel imports helped sustain government revenue during the disruption.
Honey hunting season begins in Myagdi’s high-altitude cliffs
The seasonal harvesting of wild honey has begun along the steep cliffs of Dhaulagiri, Annapurna and Raghuganga rural municipalities in Myagdi. On the opening day, a 15-member team collected around 70 liters of honey from cliffside hives near Khoriya. The traditional practice involves hunters descending on rope ladders, locally known as “Parang,” to reach the honeycombs. This rare cliff honey is valued for both its medicinal properties and religious importance, with prices ranging from Rs 3,000 to Rs 3,500 per liter. The harvesting cycle starts in lower regions during spring and gradually shifts to higher elevations by June. Despite its high demand, the process is extremely risky, as hunters must first use smoke to drive away wild bees before cutting the combs with specialized tools.
Tanahu hydropower project reaches 75% completion
The 140 MW Tanahu Hydropower Project, located in Rishing Rural Municipality, has achieved 75 percent overall physical progress. The project is divided into three components: headworks, powerhouse, and transmission line. The first package, which includes the 140-meter-high dam, is 57 percent complete, with concrete works ongoing. The second package, covering the underground powerhouse and tunnels, has reached 76 percent completion. Meanwhile, the third package—a 33-kilometer 220 kV transmission line connecting to Bharatpur—is 77 percent complete, with 78 out of 94 towers already स्थापित (founded). The total project cost is estimated at USD 505 million, financed by ADB (USD 150 million), JICA (USD 184 million), EIB (USD 85 million), and the Government of Nepal (USD 86 million).
Construction begins on Rs 426 million Myagdi corridor transmission line
Construction has started on the 132 kV Myagdi Corridor Transmission Line, a 16.48-kilometer project aimed at connecting three hydropower plants to the national grid. The line will link Jeltung in Dhaulagiri Rural Municipality to the Dandakhet substation in Malika Rural Municipality. With an estimated investment of Rs 426.2 million, the project will transmit 164.75 MW of electricity generated by the Myagdikhola, Upper Myagdi, and Upper Myagdi Hydropower projects. The infrastructure includes 57 towers and will use 30.39 hectares of land. To address environmental and social concerns, Rs 4.1 million has been allocated for environmental protection and Rs 2.1 million for community support. The project is expected to be completed within eight months.
Three concrete bridges completed in Kathekhola for Rs 120 million
Kathekhola Rural Municipality in Baglung has achieved year-round connectivity across all wards after completing three concrete bridges worth Rs 120 million. The latest project, the Dudiaghat Bridge connecting Bhimapokhara and Tagram, was built at a cost of Rs 36.2 million. The 20-meter bridge ensures uninterrupted access to Tarakhola even during the monsoon season. Earlier, the Gandaki Province Government constructed a 30-meter bridge at Lamabagar for Rs 33.1 million and a 25-meter bridge at Eklekhet for Rs 50 million. These developments mark a transition from basic connectivity to road upgrading, as key river crossings have now been secured.
Local unit distributes nutrition grants to 76 new mothers
Hupsekot Rural Municipality in Nawalparasi (Bardaghat Susta Purba) has distributed nutrition support funds to 76 new mothers in the current fiscal year. Through the Postpartum Care Nutrition Expense Program, each beneficiary received Rs 5,000 to support maternal health and newborn nutrition. Eligibility requires proof of four antenatal checkups, institutional delivery, and timely birth registration. The initiative is designed to lower maternal and infant mortality rates while promoting the use of formal healthcare services. Officials stated that the program not only offers immediate financial assistance but also contributes to long-term child welfare through early registration and consistent medical follow-up.
Preparations completed for South Asia trade fair 2026
Final arrangements have been completed for the ‘South Asia Trade Fair 2026,’ which will be held at the Bhrikutimandap Exhibition Hall from May 7 to 11. Organized by Introduction Trade Shows Nepal in partnership with Bangladesh’s Ministry of Industries, the event will include participation from all SAARC member countries. The fair is expected to help stimulate the local economy and enhance regional trade cooperation, with more than 150 exhibitors showcasing products such as electronics, garments, handicrafts and agricultural goods. Organizers anticipate around 100,000 domestic visitors and 5,000 international delegates. Backed by multiple chambers of commerce and the governments of Bhutan and Bangladesh, the event will also feature buyer-seller meetings, food festivals and market research activities aimed at promoting regional exports.
1,720 drivers fined; Rs 858,000 collected in 24 hours
Traffic police fined 1,720 drivers for various violations across the Kathmandu Valley within the past 24 hours, collecting Rs 858,000 in revenue. According to the Kathmandu Valley Traffic Police Office, penalties included 136 cases of drunk driving, 124 instances of unauthorized ride-sharing, and 175 speeding violations. Additionally, 206 drivers were penalized for lane discipline breaches, 92 for parking on sidewalks, and 28 for using horns in restricted areas. Authorities also recorded 20 violations related to improper passenger pick-up and drop-off, along with 1,810 other general traffic offenses. The intensified monitoring is part of ongoing efforts to enhance road safety and enforce discipline on busy urban roads.
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