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 and development indicators present a mixed but cautiously optimistic picture of a country pursuing modernization while confronting persistent structural challenges. Major infrastructure projects, including the opening of the Nagdhunga-Sisne Khola tunnel and steady progress on the Kakarbhitta-Laukahi highway, alongside the digitization of foreign employment services and expanding doorstep passport delivery, reflect a growing emphasis on improving public service delivery and connectivity.
Tourism is showing encouraging signs of recovery, with rising visitor numbers in Chitwan and renewed efforts to promote destinations in Dhanusha and Myagdi. Export performance also offers positive news, as record large cardamom exports demonstrate the potential of high-value agricultural products.
However, underlying fiscal concerns remain significant. Nepal once again fell short of its foreign grant target, customs revenue failed to keep pace with import growth, and regulatory uncertainties—such as the VAT dispute involving the Nepal Electricity Authority—highlight continuing governance challenges.
Meanwhile, rising gold prices, growing participation in the stock market, and the finance minister’s outreach to the Nepali diaspora suggest increasing investor interest, although translating that interest into productive long-term investment will require greater policy consistency and institutional confidence.
Overall, the week’s developments underscore a broader transition: Nepal is making visible progress in infrastructure, digital governance and economic outreach, but sustained growth will depend on stronger revenue mobilization, effective policy implementation and improved public sector efficiency.
Gold and silver prices edge higher
Gold and silver prices rose in Nepal’s domestic market on Sunday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold increased by Rs 1,600 per tola to Rs 287,100, up from Rs 285,500 on Sunday. Silver also gained Rs 60 per tola, reaching Rs 4,410 from Rs 4,350 a day earlier. The latest rise reflects the continuing fluctuations in precious metal prices in the domestic market.
Finance Minister encourages NRNs to invest in Nepal
Finance Minister Dr. Swarnim Wagle has urged non-resident Nepalis (NRNs) to invest in Nepal, saying the government is committed to creating a favorable investment climate. Speaking virtually with young Nepali entrepreneurs in Australia on Saturday, he reaffirmed the government’s “once a Nepali, always a Nepali” policy and described the diaspora as important ambassadors for the country. Wagle highlighted recent tax and revenue reforms designed to stimulate private investment and economic growth. He also assured investors that they would be able to repatriate returns smoothly and pointed to initiatives such as NRN bonds, offshore bonds and alternative financing instruments aimed at encouraging greater diaspora participation.
Nepal misses foreign grant target again
Nepal received Rs 31.26 billion in foreign grants during fiscal year 2025/26, achieving only 58.5 percent of its budget target of Rs 53.45 billion. Over the past five years, annual grant receipts have consistently fallen well below projections, reflecting implementation delays, changing donor priorities and overly ambitious budget estimates. Foreign grant commitments also declined sharply to Rs 40.88 billion, contributing to a 39.3 percent drop in total foreign assistance. Despite the trend, the government has set a higher foreign grant target of Rs 61.75 billion for the current fiscal year.
Import growth outpaces customs revenue
Nepal recorded a 16.2 percent rise in imports during the last fiscal year, but customs revenue grew by only 6.5 percent, highlighting weaknesses in revenue collection. Imports climbed to Rs 2.10 trillion, while customs earnings reached Rs 515.57 billion, falling more than Rs 72 billion short of the annual target. Officials attributed the shortfall to increased imports of goods subject to low or zero customs duties, as well as extensive duty exemptions. The figures underscore ongoing challenges in strengthening government revenue despite higher trade volumes.
Nagdhunga-Sisne Khola tunnel to open today
The Nagdhunga-Sisne Khola tunnel linking Kathmandu and Dhading is scheduled to open today (Monday), nearly seven years after construction began. The Rs 29 billion project, featuring a 2.68-kilometer main tunnel, faced delays caused by the COVID-19 pandemic and land acquisition disputes. Initially, only emergency vehicles will be permitted to use the tunnel, with access for other vehicles introduced gradually. Motorcycles, pedestrians and vehicles carrying flammable materials will be prohibited. The tunnel will operate as a toll road, with charges ranging from Rs 60 for cars leaving Kathmandu to Rs 600 for heavy trucks entering the capital.
Dhanusha’s tourism potential praised by minister
Minister for Agriculture, Forest and Environment Geeta Chaudhary has said Dhanusha plays a significant role in Nepal’s tourism industry. During a visit to Dhanushadham on Sunday, she emphasized the importance of religious and natural attractions, including Janakpurdham and Dhanushadham, in promoting tourism. She said the government would examine ways to integrate these destinations into broader domestic and international tourism circuits. Chaudhary also announced that a technical team would assess the feasibility of establishing a zoological park in Dhanushadham under the government’s plan to build one zoo in each of the country’s seven provinces.
Foreign employment records undergo digital transformation
The Department of Foreign Employment has accelerated the digitization of case files dating back to 2000 as part of efforts to modernize services and improve complaint handling. Existing files, including those damaged during the Gen Z protest, are being scanned, while new complaints are now processed through an online system that automatically generates legal documents. Officials believe the initiative will improve record management, strengthen investigations and speed up justice for affected migrant workers. The digitization drive forms part of the government’s broader plan to fully digitalize foreign employment services.
NEA seeks clarity on VAT for electricity billing
The Nepal Electricity Authority (NEA) has requested clarification from the Inland Revenue Department over the application of Value Added Tax (VAT) on electricity consumed between June 15 and July 16 under the Financial Act, 2026. Acting Executive Director Dirghayu Kumar Shrestha asked whether VAT should apply to electricity bills issued after July 17 for consumption during the earlier period, given the authority’s monthly meter-reading system. Energy Minister Biraj Bhakta Shrestha instructed the NEA to resolve the legal uncertainty quickly, stressing that consumers should not bear unnecessary financial burdens.
Kakarbhitta-Laukahi highway project gains pace
Construction of the 95-kilometer Kakarbhitta-Laukahi section of the East-West Highway is progressing steadily across all three contract packages. Financed through a Rs 46 billion loan from the Asian Development Bank, the eastern section has reached 47 percent completion, while the second and third sections have achieved 42 percent and 19 percent progress, respectively. Contractors have completed the initial phase of blacktopping over 16.5 kilometers and aim to pave another 15 kilometers by October, weather permitting. The project began in January 2024 and is expected to be completed by February 1, 2027.
Demat accounts surpass 8 million as inactive holdings rise
The number of Demat accounts in Nepal has crossed the 8 million mark, reaching 8,009,623, according to CDS and Clearing Limited. Since individuals are permitted to hold up to two accounts, the number of active Mero Share users stands at around 5.15 million, leaving nearly 2.9 million accounts inactive. The data further shows that 18.60 billion of the country’s 19.28 billion listed shares have been dematerialized, while approximately 673.5 million shares remain in physical form or are believed to have been lost or destroyed.
Indian envoy highlights IIT Roorkee’s contribution to Nepal
Indian Ambassador to Nepal Naveen Srivastava has praised the longstanding contribution of IIT Roorkee to Nepal’s development. Addressing the annual gathering of the IIT Roorkee Alumni Association in Nepal, he highlighted the role of Nepali graduates from the institute in building major infrastructure, including Singha Durbar and the Hetauda-Kathmandu ropeway. Srivastava also noted the institution’s more than century-long relationship with Nepal, recalling that a clock presented by former Prime Minister Bir Shumsher Jung Bahadur Rana in 1896 remains displayed on the university’s main campus.
Large cardamom exports reach record high
Nepal exported a record 6.39 million kilograms of large cardamom worth Rs 12.63 billion during the last fiscal year, according to the Kakarbhitta Customs Office. Both export volume and earnings reached their highest levels on record, with revenue increasing by nearly Rs 5 billion from the previous year due to stronger prices and demand. Industry representatives said stable prices enabled farmers to receive a larger share of export earnings. Large cardamom, cultivated in 54 districts, remains one of Nepal’s leading cash crops, with India serving as its primary export market.
Home passport delivery service proves popular in Sindhuli
The government’s doorstep passport delivery service is gaining popularity in Sindhuli, with 182 residents receiving their passports at home within two months of the program’s launch. Introduced through a partnership between the District Administration Office and the District Post Office, the service eliminates the need for applicants to travel to the district headquarters to collect their passports. Applicants pay a postal fee of Rs 55, and most receive their passports within about 15 days. Officials said Dudhauli Municipality has recorded the highest number of beneficiaries, while nearly 5,000 new passports were issued in the district during the last fiscal year.
Janakpurdham expands streetlight project to improve safety
Janakpurdham is undergoing a major transformation as the sub-metropolitan city expands its “Bright Janakpurdham” campaign by installing high-mast and sensor-based streetlights across key roads. Residents say the improved lighting has enhanced public safety, reduced incidents of theft and robbery, and encouraged greater nighttime movement. Major corridors, including the Railway Station–Airport Road, Janaki Temple–Ramanand Chowk, and the Parikrama Route, have already been illuminated, with installation continuing in other areas. City officials said the project forms part of broader efforts to improve urban infrastructure, sanitation, and the city’s overall appearance.
Chitwan records rise in tourists despite monsoon season
Chitwan’s tourism industry is experiencing a strong monsoon-season recovery, with hotel occupancy climbing to around 50 percent from the usual 30 percent. Tourism entrepreneurs attribute the increase to the government’s two-day weekend policy and ongoing school holidays. Domestic tourist arrivals have risen by nearly 25 percent compared to the same period last year, while the number of Indian and Chinese visitors has also grown. Despite poor road conditions affecting some travel plans, destinations such as Sauraha, Patihani, Jagatpur, and Meghauli continue to attract visitors for wildlife safaris, nature tourism, and outdoor activities.
Malika Rural Municipality identifies 35 new tourism sites
Malika Rural Municipality in Myagdi has officially identified 35 tourist destinations across its seven wards as part of efforts to promote tourism and stimulate the local economy. The newly listed attractions include lakes, caves, temples, cultural heritage sites, former mining areas, trekking routes, and picnic spots. The destinations were announced during a joint program organized by the rural municipality, the Myagdi Chamber of Commerce and Industry, and the Inland Revenue Office. Local authorities said the sites will be actively promoted throughout the current fiscal year to attract both domestic and international visitors.
Online stock trading gains momentum in Banke
Interest in Nepal’s stock market continues to grow in Banke, where around 45,000 investors are now using the Trade Management System (TMS) for online share trading. Market officials attributed the increase to improved access to technology, expanding digital services, and growing awareness of stock investment. The district has nearly 62,800 Demat accounts, although about 10 percent remain inactive. Many new investors have opened accounts primarily to apply for initial public offerings (IPOs). Nepalgunj has also emerged as a regional trading hub, serving investors from neighboring districts including Bardiya, Dang, Kailali, Kalikot, and Jumla.
Reconstruction of Majhgaun Airport misses deadline
The reconstruction of Majhgaun Airport in Kanchanpur has failed to meet its original three-year completion target, with about 75 percent of the work completed so far. Authorities have extended the deadline by another year after delays caused by late budget contributions from provincial and local governments. Officials said Rs 50 million in federal funding lapsed during the last fiscal year after the bidding process failed to move forward. Closed since 2001, the airport is expected to boost tourism and cross-border trade once operational, although locals say repeated political promises have yet to deliver tangible progress.
KIST Medical College posts 45 percent revenue growth
KIST Medical College recorded a 45 percent increase in revenue in 2025, with total earnings rising to Rs 1.49 billion from Rs 1.03 billion a year earlier. The growth was driven by a 33 percent increase in income from its medical college and a 56 percent rise in hospital revenue, following the expansion of MBBS intake from 100 to 120 students. Despite higher revenue, the institution’s operating profit margin declined to 18 percent. The Tribhuvan University-affiliated college, which operates a 300-bed hospital in Lalitpur, has secured total credit facilities of Rs 1.50 billion, including Rs 1.15 billion in long-term loans.
Baitadi traffic police collect Rs 1.29 million in fines
The Baitadi District Traffic Police collected Rs 1.298 million in fines from 1,508 traffic offenders during the last fiscal year. According to the District Traffic Police Office, most penalties were imposed on drivers of jeeps, cars, and vans, followed by motorcyclists, tempos, trucks, tractors, and buses. The district recorded 62 road accidents during the same period, resulting in 34 deaths and 176 injuries. Traffic police said enforcement efforts will continue to improve road safety and encourage compliance with traffic regulations.
Mahalaxmi Bikas Bank receives international banking award
Mahalaxmi Bikas Bank has been honored with the ‘Rising Star–Growth’ award at the fourth Emerging Asia Banking Conclave & Awards in New Delhi, organized by the Indian Chamber of Commerce. The bank said the award recognizes its achievements in digital banking, innovative financial products, business expansion, financial inclusion, and responsible banking. Financial institutions from India, Nepal, Sri Lanka, Bangladesh, and Myanmar participated in the event. The bank said the recognition strengthens its international profile and follows an earlier award for excellence in asset quality.
Highway hotel fined for food safety violations in Dang
A hotel along the East-West Highway in Dang has been fined Rs 25,000 after inspectors found multiple violations of food safety and business standards. The Food Technology and Quality Control Office took action against Purba Paschim Highway Hotel in Rapti Rural Municipality-3 after discovering stale and unhygienic food stored in refrigerators, the use of artificial food coloring, poor kitchen sanitation, the absence of a price list, and foul odors. Officials said the hotel had failed to comply despite repeated warnings. The inspection team also monitored seven other hotels in the Deukhuri area as part of an ongoing food safety campaign.
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