KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic indicators present a mixed but broadly positive picture, with improving investor confidence, strong tourism growth, rising property revenues, and continued infrastructure development offsetting concerns over liquidity management and import restrictions. The stock market extended its gains for a second consecutive session, while Nepal Rastra Bank’s absorption of Rs 30 billion in excess liquidity and tighter disclosure requirements for payment operators reflected efforts to strengthen financial stability and governance.
Growth in real estate transactions, a sharp surge in tourist arrivals to Mustang, expanding electric public transport, and progress on major projects such as the Tanahun Hydropower Project and Nagdhunga Tunnel point to increasing economic activity and investment momentum. At the same time, declining grain imports, the ban on Indian mango imports, and concerns raised by industry groups over implementation challenges underscore ongoing structural and supply-side issues.
Overall, the developments suggest an economy benefiting from stronger domestic demand, tourism recovery, and infrastructure investment, but one that remains dependent on effective policy execution and regulatory oversight to sustain its targeted growth trajectory.
NEPSE edges up 2.66 points; turnover reaches Rs 5.74 billion
The Nepal Stock Exchange (NEPSE) gained 2.66 points, or 0.09 percent, on Wednesday to close at 2,780.25 points. The Sensitive Index also increased by 1.93 points to 475.44. A total of 13.52 million shares of 347 companies were traded through 62,148 transactions, generating a turnover of Rs 5.738 billion, higher than in the previous two trading sessions. Among listed companies, 149 advanced, 116 declined, and six remained unchanged. Of the 13 sectoral indices, seven ended higher, led by gains in the life insurance and non-life insurance sectors, while commercial banking and finance indices posted losses.
Gold remains stable while silver prices decline
Gold prices remained unchanged in the domestic market on Wednesday, while silver prices declined. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold continued to trade at Rs 311,300 per tola, the same level recorded on Tuesday. Silver, however, fell by Rs 35 per tola to Rs 5,370. It had traded at Rs 5,405 per tola the previous day.
NRB introduces stricter disclosure requirements for payment operators
Nepal Rastra Bank (NRB) has issued a new directive under the Payment and Settlement Act, 2019, requiring greater transparency from payment system operators. The regulation mandates the disclosure of beneficial owners or shareholders holding more than 5 percent ownership or equity worth over Rs 5 million. Companies must also submit detailed information when appointing senior executives or when beneficial ownership exceeds 5 percent or Rs 2.5 million. Senior officials will be required to provide tax records, asset declarations, conflict-of-interest disclosures, and declarations regarding loan defaults and criminal records.
NRB mops up Rs 30 billion in excess liquidity
Nepal Rastra Bank (NRB) intervened in the domestic financial market on Wednesday, conducting a deposit collection auction to absorb Rs 30 billion in surplus liquidity from the banking system. Commercial banks and financial institutions submitted competitive bids through an automated platform. In line with open market operation guidelines, class ‘A’, ‘B’, and ‘C’ financial institutions were allowed to participate, with a minimum bid size of Rs 10 crore. The liquidity absorption instrument carries a maturity period of 56 days, with principal and interest settlement scheduled for July 29.
Finance ministry raises duty-free customs limit at border points
The Ministry of Finance has increased the duty-free customs threshold for personal goods brought through land border checkpoints from Rs 100 to Rs 500. According to a gazette notification, customs officials may now waive duties on personal goods valued within the revised limit. The decision follows protests from local traders against the earlier Rs 100 threshold. Existing customs provisions for Nepali students studying in India remain unchanged, allowing them to import one laptop or tablet without customs duty.
Japan provides additional ¥5.7 billion loan for Nagdhunga tunnel
Japan has extended an additional loan of JPY 5.7 billion (approximately Rs 5.5 billion) for the Nagdhunga Tunnel Construction Project, raising total Japanese assistance to JPY 22.336 billion. The Exchange of Notes was signed by Japanese Ambassador Maeda Toru and Finance Secretary Ghanshyam Upadhyaya. The additional financing is intended to address cost overruns resulting from rising construction expenses. Japan originally committed JPY 16.636 billion to the project in 2016. Construction of Nepal’s first road tunnel, which began in 2019, has encountered geological challenges, including flooding and tunnel collapses. The project is expected to improve transport connectivity, support economic activity, and enhance technology transfer between Nepal and Japan while commemorating 70 years of diplomatic relations.
Grain imports through Birgunj fall by 15 percent
The Birgunj Customs Office reported food grain imports worth Rs 20.79 billion during the first 10 months of the current fiscal year, representing a 15 percent decline from the Rs 24.66 billion recorded during the same period last year. The decrease amounts to Rs 3.87 billion in import value. Major imports included paddy worth Rs 10.94 billion, maize valued at Rs 5.31 billion, and processed rice worth Rs 2.85 billion. Customs records also showed imports of malt worth Rs 590 million and buckwheat and millet worth Rs 330 million.
NRB strengthens ownership transparency in payment systems
Nepal Rastra Bank has introduced new regulations aimed at improving transparency in the payment system sector. Under the directive issued pursuant to the Payment and Settlement Act, 2019, payment service operators must disclose details of beneficial owners holding more than 5 percent ownership or shares valued above Rs 5 million. Additional reporting requirements apply to executive appointments and ownership changes exceeding specified thresholds. Senior executives must also submit tax information, asset disclosures, conflict-of-interest declarations, and records relating to credit status and legal history.
Government bans Indian mango imports over pesticide concerns
The Ministry of Agriculture and Livestock Development has imposed a ban on mango imports from India after inspectors detected excessive levels of chemical pesticides in imported consignments. The Bhithamod Quarantine Office said restrictions have been in place since April–May in line with government efforts to promote domestic fruit production. Before the ban, the checkpoint had imported 15.8 metric tonnes of mangoes worth around Rs 1 million. Authorities estimate that Madhesh Province will produce around 400,000 metric tonnes of fruit worth Rs 40.4 billion across 30,800 hectares during the current season.
Cooperative committee seeks information on concealed assets
The Problematic Cooperative Management Committee has published the names of directors associated with 23 troubled cooperatives and called on the public to provide information about assets allegedly held under the names of relatives, family members, or associates. The committee urged directors to repay liabilities, recover outstanding loans, and cooperate with efforts to refund depositors. It warned that legal action would be taken against those failing to comply. Individuals affected by any inaccuracies in the published information have been asked to contact the committee.
Tanahun Hydropower Project dam reaches 50 percent completion
Construction of the main dam under the Tanahun Hydropower Project has reached 50 percent completion, according to project officials. The 140-metre-high dam, located in Rishing Rural Municipality of Tanahun, has used 424,120 cubic metres of concrete out of the required 850,000 cubic metres since work began on March 20, 2025. Project Chief Shyamji Bhandari said overall physical progress under Package 1, being implemented by the Song Da–Kalika Joint Venture, has reached 59 percent. Tunnel construction and related infrastructure have been completed, while the Seti River has already been diverted to facilitate dam construction. Temporary upstream and downstream cofferdams have also been completed, marking steady progress on one of Nepal’s major hydropower projects.
Property transaction revenue rises 15 percent
The Department of Land Management and Archive reported a 15 percent increase in revenue from real estate transactions during the first 10 months of the current fiscal year. Revenue collections rose by Rs 5.77 billion to Rs 43.53 billion, compared with Rs 37.76 billion during the same period last year. The number of property transactions increased from 1.2 million to 1.3 million. Analysts attributed the growth largely to a 10–15 percent upward revision in land valuations across various zones of the Kathmandu Valley.
Mustang records sharp rise in tourist arrivals over first five months of 2026
The Annapurna Conservation Area Project office in Jomsom reported a significant increase in tourist arrivals to Mustang during the first five months of 2026. A total of 142,739 foreign visitors entered the district between January and May, including 129,341 tourists from SAARC countries and 13,398 from other parts of the world. The figure marks a substantial increase from the 55,753 visitors recorded during the same period last year. In May alone, Mustang welcomed 65,994 tourists, with Indian pilgrims accounting for 91 percent of arrivals. More than 80 percent of these visitors traveled to the Muktinath Temple.
CNI says budget could transform economy if implemented effectively
The Confederation of Nepalese Industries (CNI) has said the fiscal year 2026/27 budget could provide a new direction for Nepal’s economy if implemented successfully. In a statement, the organization highlighted measures such as customs duty reductions on 273 items, the removal of excise duties on 360 products, VAT refund provisions, tax dispute settlement mechanisms, and revisions to income tax thresholds as positive steps. CNI also welcomed reforms related to energy tariffs, industrial zones, green financing, and project approvals, stating that these measures could enhance industrial competitiveness and investor confidence. However, it stressed that effective implementation would be essential to achieve the government’s 7 percent economic growth target.
Flydubai conducts technical assessment at Pokhara International Airport
A technical team from Flydubai, led by the airline’s Vice President for Risk Management, carried out a detailed inspection of Pokhara International Airport as part of preparations for potential international operations. During the six-hour visit, the delegation reviewed runway facilities, navigation systems, airport security arrangements, and baggage handling infrastructure. Following the assessment, Flydubai officials reportedly expressed strong interest in launching direct daily flights between Pokhara and Dubai. The move could connect Pokhara to a wider international aviation network through Flydubai and its partner airline, Emirates.
Mahanagar Yatayat expands electric fleet with 16 new buses
Mahanagar Yatayat has added 16 new electric buses to its public transport fleet in Kathmandu. The buses, supplied by Shashila Motors and imported from China, each have a seating capacity of 33 passengers and are equipped with 144-kilowatt CATL batteries capable of traveling up to 200 kilometers on a full charge. Company officials said electric vehicles will play a key role in the future expansion of urban public transport. With the latest addition, Mahanagar Yatayat’s electric fleet has grown to 52 vehicles, including 28 buses and 24 microbuses.
Handicraft sector welcomes customs and tax reforms in new budget
The Federation of Handicraft Associations of Nepal has welcomed several provisions in the fiscal year 2026/27 budget, saying the measures will support small and medium-sized handicraft enterprises. The federation praised the reduction of customs duties on 273 categories of industrial raw materials and the removal of excise duties on 360 products. It also noted that lowering the maximum personal income tax rate from 39 percent to 29 percent could help reduce operating costs for small businesses. However, the federation expressed concern that the national trade policy still does not formally recognize 36 handicraft categories and 83 product lines.
Valley traffic police fine 1,299 drivers and collect Rs 2.3 million
The Kathmandu Valley Traffic Police Office reported that enforcement operations conducted over the past 24 hours resulted in penalties against 1,299 motorists, generating Rs 2.3 million in revenue for the state treasury. According to traffic records, 119 drivers were fined for driving under the influence, 160 for unauthorized ride-sharing operations, 134 for traffic signal violations, and 118 for speeding. Other offences included 114 lane discipline violations, 94 cases of unnecessary horn use, 120 incidents of footpath parking, and 144 one-way traffic violations.
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