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 governance developments reflect a mixed picture of cautious financial stability, tighter regulation, and persistent structural challenges. The stock market remained largely flat, with NEPSE posting only a marginal gain despite weaker turnover, signaling subdued investor confidence. Precious metal prices also declined, indicating softer demand or external price adjustments.
Regulatory activity was more pronounced. Nepal Rastra Bank introduced stricter rules for hire purchase financing companies, emphasizing transparency, capital discipline, and consumer protection. At the same time, the Rs 10 billion NRNA Nepal Development Fund moved closer to an IPO, potentially opening a new channel for mobilizing diaspora investment.
Insurance data showed rising claim settlements but also a sharp increase in outstanding liabilities, suggesting growing pressure on insurers’ balance sheets. The Fiscal Commission’s criticism of federal grant practices highlighted continuing tensions in Nepal’s fiscal federalism and concerns over local financial autonomy.
Supply-side management dominated government action, with online gas tracking, fair-price shops, and stricter anti-black-market enforcement aimed at easing shortages and protecting consumers. Infrastructure monitoring was strengthened for national pride projects, while provincial road expansion and transmission line progress showed gradual implementation gains despite delays. Agriculture and fertilizer shortages, however, underscored ongoing vulnerabilities in rural production and input supply systems.
NEPSE edges up as turnover falls to Rs 3.53 billion
The Nepal Stock Exchange (NEPSE) gained 0.55 points on Wednesday to close at 2,642.40, while daily turnover declined from the previous session. A total of 8,701,944 shares of 348 companies changed hands through 43,990 transactions, generating turnover of Rs 3.532 billion. The sensitive index rose 1.39 points to 463.61. Share prices of 102 companies advanced, 165 declined and nine remained unchanged. NRN Infrastructure and Development recorded the highest turnover at Rs 316 million, while Kumari Bank led in trading volume.
Gold falls to Rs 306,700 and silver to Rs 4,745
Gold prices declined in the domestic market on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 1,200 per tola to Rs 306,700, compared with Rs 307,900 on Tuesday. Silver prices also fell, declining by Rs 35 per tola to Rs 4,745 from the previous day’s Rs 4,780.
NRB updates guidelines for hire purchase financing companies
Nepal Rastra Bank (NRB), through its Bank and Financial Institution Regulation Department, introduced revised operational guidelines for hire purchase financing companies on Wednesday, replacing earlier provisions with stricter regulatory measures. The new policy requires licenses to be renewed every 10 fiscal years with a fee of Rs 200,000. Companies must include the term “Hire Purchase” in their official names, while promoters will face suitability assessments and chief executive officers must meet prescribed educational qualifications. The framework also replaces fixed spread limits with a cost-of-fund-based interest rate mechanism. Service charges are capped at 1 percent and penalty interest at 2 percent. In addition, companies must allocate at least 20 percent of annual net profits to reserve funds until reserves reach twice the paid-up capital, and they are expressly barred from collecting public deposits.
Rs 10 billion NRNA fund moves closer to IPO
The NRNA Nepal Development Fund, operated under the Non-Resident Nepali Association (NRNA), is preparing to move into implementation after the government completed the required legal and procedural approvals for its proposed Rs 10 billion investment project. The approvals granted on Tuesday allow the fund to proceed with an Initial Public Offering (IPO), with 85 percent of shares reserved for Nepalis living abroad. Earlier, the government had approved an IPO allocation of up to 51 percent. Under the fund’s rules, 5 percent of investment will come from the Government of Nepal, 10 percent from promoters and the remaining 85 percent from non-resident Nepalis worldwide. Individual investments may range from Rs 100,000 to Rs 100 million.
Insurance claims rise across life and non-life sectors
The Nepal Insurance Authority reported growth in both settled claims and outstanding liabilities in the life and non-life insurance sectors during fiscal year 2025/26 compared with the previous year. Life insurers settled 419,136 claims worth Rs 69.642 billion, up 7.16 percent in number and 5.83 percent in value. Outstanding life insurance claims jumped 61.99 percent to 144,144 cases totaling Rs 11.047 billion. Non-life insurers settled 164,101 claims amounting to Rs 31.719 billion, representing an 8.94 percent increase in claim numbers and a 25.57 percent rise in payouts. Pending non-life liabilities, however, climbed 63.61 percent to Rs 41.032 billion.
Fiscal commission questions federal grant allocation practices
The National Natural Resources and Fiscal Commission told the parliamentary Finance Committee on Wednesday that federal financial equalization grants to provincial and local governments have not expanded as intended, while conditional grants continue to increase. Commission Secretary Dinesh Kumar Ghimire criticized the federal government for repeatedly reducing recommended equalization allocations near the end of fiscal years and for not fully following legal provisions that require block grants based on regional targets. The commission said conditional grants are still being distributed as small project-specific allocations rather than broader sectoral performance grants, weakening local fiscal autonomy. It also noted that delays in publishing natural resource royalty-sharing frameworks in the Nepal Gazette are hindering regional revenue collection.
Transport federation seeks changes to overloaded vehicle fines
The Federation of Truck Transport Entrepreneurs, Nepal, has asked the government to revise proposed provisions that would impose fines of up to Rs 500,000 on cargo vehicles carrying loads beyond legal limits, calling the penalty excessive and financially damaging. Federation President Rajendra Bikram Bania said efforts to improve highway safety, control overloading and protect road infrastructure are justified, but placing the entire burden on truck owners is unfair because loading decisions are largely determined by goods owners, manufacturers and customs dispatch points. The federation, which represents around 45,000 commercial freight vehicles, proposed introducing weight verification systems at industrial loading points before vehicles begin their journeys instead of relying mainly on punitive enforcement.
Online gas tracking system under development, says minister
Minister for Industry, Commerce and Supplies Gauri Kumari Yadav said an online tracking system is being developed to make gas supply, transportation and distribution more transparent and efficient. Speaking at a discussion on food supply organized by the Industry, Commerce, Labor and Consumer Interest Protection Committee, Yadav said gas distribution details are currently being collected through Google Forms. She also announced that food items will be sold through food stalls in Singha Durbar from August 13. Nepal Oil Corporation Managing Director Nagendra Sah said smooth gas supply is expected to be restored within a week. According to him, 134 gas bullets entered Nepal on Tuesday alone, and 3.4 million gas cylinders had been imported by August 11.
Committee orders strict action against petroleum black marketing
The Committee on Industry and Commerce and Labor and Consumers Welfare held a discussion at Singha Durbar on the management of essential commodity supplies, where Committee Chair Rahabar Ansari instructed regulators to impose the strongest legal penalties on those involved in petroleum black market activities. The directive includes possible cancellation of operating licenses for petrol pumps, fuel transport tankers and gas dealers found violating the law. The committee also asked the Ministry of Industry, Commerce and Supplies to advance legislation related to petroleum products and anti-black-marketing measures, while addressing reports of palm oil adulteration in commercial restaurants. Ansari said the committee would maintain close oversight to ensure fair distribution of essential goods and protect consumer rights across the country.
Home Ministry raises sanctioned posts to 4,611
The Ministry of Home Affairs has increased its total approved positions by 129 to 4,611 under a new Organization and Management (O&M) survey, while reducing the number of joint secretary posts. Although the approved report has not yet been enforced, the ministry’s Administration Division said implementation will begin soon. Joint secretary positions have been reduced by nine, from 75 to 66. Undersecretary posts have increased by six to 161, section officer positions have risen by 53 to 644, and non-gazetted first-class officer posts have increased by 51 to 1,421.
Department launches monitoring system for national pride projects
The Department of Water Resources and Irrigation on Wednesday introduced a dedicated monitoring mechanism to track the physical and financial progress of national pride projects and other key developments in the sector. The system is intended to address persistent delays, missed deadlines and unresolved construction obstacles. It will monitor on-site progress, implementation schedules and administrative bottlenecks through direct coordination between the Ministry of Energy, Water Resources and Irrigation and the concerned project directorates. Minister for Energy Biraj Bhakta Shrestha called for a detailed review meeting with project chiefs and emphasized priority attention to major projects, including the Mahakali (Third) Irrigation Project, Rani Jamara Kulariya Irrigation Project, Babai Irrigation Project, Bheri-Babai Diversion Multipurpose Project, Sikta Irrigation Project and Sunakoshi-Marin Diversion Multipurpose Project, with the goal of completing them on time and within approved cost and quality standards.
Tourism office orders use of licensed guides only
The Provincial Tourism Office in Babarmahal, Kathmandu, has instructed tourism businesses and service providers to employ only legally licensed guides for tours, trekking, hiking, rafting and other tourism activities. In a notice issued on Wednesday, the office said it had received complaints that unlicensed individuals and foreign nationals were providing guiding services to tourists. Businesses have been directed to verify the guide’s license, validity and qualifications before assigning work and to maintain proper records. The office warned that strict legal action will be taken against violators and said any legal or professional liability arising from the use of unlicensed personnel will rest with the concerned individual or business.
FMTC to operate fair-price shops at 193 locations
The Food Management and Trading Company (FMTC) will open a sales outlet inside the Singha Durbar premises on Thursday to improve public access to affordable essential goods. Minister for Industry, Commerce and Supplies Gauri Kumari Yadav is scheduled to inaugurate the outlet during the company’s seventh anniversary celebrations. According to FMTC, the outlet will sell all company products at affordable prices. These include rice, lentils, cooking oil, sugar and salt, as well as locally produced crops such as proso millet, foxtail millet, buckwheat and beans. FMTC will also operate fair-price shops at 193 locations in 44 districts beginning Thursday. Consumers will receive a discount of Rs 5 per kilogram or liter on daily essential goods sold through these outlets. The company said it is continuing efforts to ensure a smooth and affordable supply of essential food commodities.
Government panel advises rejecting Ncell share sale deal
A high-level government investigation panel led by former Auditor General Tanka Mani Sharma Dangal has concluded that the controversial Ncell share sale agreement should be rejected because of unauthorized transactions, lack of financial transparency and regulatory violations. The panel found that Malaysia’s Axiata Group Berhad and Spectrlite UK carried out the deal without the required regulatory approval and that Spectrlite UK had not demonstrated adequate technical or financial capacity. The report recommended that anti-corruption and tax authorities investigate possible past revenue leakages, non-bank offshore settlements and concealed foreign control over Ncell’s mandatory 20 percent domestic ownership. It also called for measures to protect state ownership interests before future license renewals.
Lumbini blacktops 1,430 km roads in eight years
The Transport Infrastructure Directorate in Butwal said Lumbini Province has constructed and blacktopped 1,430 kilometers of roads across its 12 districts during the eight fiscal years from 2018/19 to 2025/26. Senior Engineer and Information Officer Arun Gupta said annual blacktopped road construction varied over the period, reaching a high of 231 kilometers in 2022/23 before falling to 124 kilometers in 2025/26. Over the same period, the province also built 1,835 kilometers of gravel roads, 2,817 kilometers of earthen roads and 217 motorable bridges. Officials said the expansion has improved connectivity between municipal centers and rural settlements, although annual construction levels fluctuated because of changing administrative priorities and resource allocations.
Dadakhet-Rahughat transmission line reaches 89 percent progress
The Dadakhet-Rahughat Transmission Line Project has achieved 89 percent physical progress as its third extended deadline approaches on August 17. The project began under an agreement signed on December 31, 2021, with Larsen and Toubro Limited at a contract value of Rs 35.7 million. The 25-kilometer double-circuit line will connect the Dadakhet substation in Malika Rural Municipality-7 with the Ambang substation in Raghuganga Rural Municipality-3 of Myagdi District. Delays were caused by complications in obtaining forest land clearance, weak geological conditions at substation sites and local disputes. Despite these setbacks, the import of major electrical equipment, construction of foundations for 80 of the 82 towers, stringing of 12.1 kilometers of transmission lines and substation testing have made substantial progress.
Ilam transport office collects Rs 146.3 million revenue
The Transport Management Service Office in Ilam collected Rs 146.3 million in public revenue during fiscal year 2025/26, recording a 5.6 percent increase from the previous fiscal year. Revenue rose by Rs 8.1 million from the earlier total of Rs 138.2 million, mainly due to vehicle tax collections of Rs 109.3 million. Other sources of income included driving license fees, vehicle registration charges, transport service fees, income tax, administrative fines and border checkpoint fees collected at Pashupatinagar. The office serves transport users from Ilam, Panchthar, Taplejung and Jhapa districts.
Tanahun administration coordinates with federal agencies to ease LPG shortage
The District Administration Office (DAO) in Tanahun worked with federal authorities and commercial gas bottling plants on Wednesday to increase liquefied petroleum gas (LPG) supplies after reports of distribution problems in the district. District officials contacted bottling facilities in Chitwan and consulted senior ministry officials to secure additional allocations for Devghat and Damauli following complaints from dealers and consumers about limited stock. Authorities said cooking gas is an essential household commodity and stressed that local distribution networks are being closely monitored to prevent artificial shortages, hoarding and illegal black-market trading.
Dhangadhi reports fertilizer sales and continuing shortages
The Agricultural Materials Company Limited in Dhangadhi distributed 1,287.7 metric tons of urea, 295.7 metric tons of diammonium phosphate (DAP) and 33.25 metric tons of potash between July 1 and July 27. The fertilizer was supplied through cooperatives and local distribution centers to meet peak demand for paddy cultivation. Remaining stocks stood at 110.25 metric tons of urea, 31 metric tons of DAP and 93.65 metric tons of potash. Available supplies meet about 72 percent of the annual urea quota but only 17 percent of the DAP allocation, leaving shortages of 549.755 metric tons of urea and 1,589.115 metric tons of DAP.
NEF to host discussion on Nepal-China relations
The Nepal Economic Forum (NEF) will hold a report dissemination program on August 17 focusing on Nepal-China relations from the perspectives of business, energy and tourism. The event will mark the release of the forum’s Nepal-China 101 report, prepared over the past two years. Dr Brian Wong, Assistant Professor at the University of Hong Kong and Director of the HKU Global AI Governance Hub, will deliver the keynote speech titled Towards a More Pragmatic and Balanced Nepal-China Relationship. The program will take place from 2:00 pm to 5:00 pm at the Bagmati Ballroom of the Kathmandu Marriott Hotel. Organizers said participation is limited and interested individuals must apply through the designated link, with selected applicants to be notified by email.
Mount Everest Power lists 8.6 million shares on NEPSE
Mount Everest Power Development listed 8.6 million shares on the Nepal Stock Exchange (NEPSE) on Wednesday, allowing the company’s shares to begin regular trading. The listing includes more than 2.5 million shares issued to the public and over 6 million founder shares. For the start of trading, NEPSE fixed an opening price range of Rs 100 to Rs 300, enabling transactions under standard market regulations and increasing the representation of hydropower companies in the domestic stock market.
Myagdi potato output falls 5.37 percent despite larger cultivated area
Potato production in Myagdi District declined by 5.37 percent this agricultural season, dropping from 35,000 metric tons to 33,120 metric tons even though the cultivated area expanded to 1,840 hectares. Agriculture officials said an additional 20 hectares were brought under cultivation, but severe hailstorms during the early monsoon damaged sprouting crops and reduced productivity from 19.5 metric tons per hectare last year to 18 metric tons per hectare. Potato is one of the district’s main cash crops and generates around Rs 100 million annually through sales to markets such as Pokhara and Kathmandu. Farmers in Annapurna and Raghuganga rural municipalities suffered significant losses, affecting overall commercial supply.
Mahila Srijanshil Kendra to organize 23rd Teej festival and entrepreneur fair
Mahila Srijanshil Kendra will organize the 23rd Teej Festival and Creative Entrepreneur Fair 2026 from August 20 to 23 at Amrapali Banquet in Baluwatar. Event management will be handled by Rising Nepal (Event Sansar). The fair aims to promote women’s entrepreneurship and showcase locally produced goods. More than 80 stalls will display handicrafts, cottage industry products and traditional festival foods. The event will also include free mehndi art sessions and health camps. Organizers said more than five stalls will be provided free of charge to underprivileged, marginalized and differently abled women entrepreneurs. The opening ceremony will be chaired by Kathmandu Metropolitan City Acting Mayor Sunita Dangol.
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