KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s recent economic and administrative developments present a mixed picture, combining signs of institutional progress with persistent structural weaknesses. The distribution of land ownership certificates to 110 Dhanusha families after 11 years highlights the slow pace of administrative processes and the long-term insecurity faced by self-settled landholders. Similarly, Syangja’s higher number of business closures than new registrations points to economic stagnation, youth migration and the vulnerability of subsidy-dependent enterprises.
The crisis facing beekeepers in Banke and Bardiya further demonstrates the exposure of rural businesses to agricultural pests and the need for stronger institutional and technical support. At the same time, discussions involving the automobile and technology sectors underline Nepal’s considerable potential for industrial growth, provided regulatory barriers are reduced, skills development is strengthened and domestic production capacity expands.
Financial indicators remain relatively positive. NMB Capital’s dividend announcements reflect continued activity in the investment sector, while foreign exchange rates show the ongoing importance of external trade and currency movements. The rise in gold and silver prices, meanwhile, reflects broader market pressures and continued demand for precious metals.
Overall, the developments reveal an economy with significant opportunities but constrained by administrative delays, weak industrial resilience, migration, limited domestic production and inadequate institutional support. Addressing these structural issues will be essential for sustainable growth and employment.
NEPSE falls 2.25 points to close at 2,641.58
The Nepal Stock Exchange (NEPSE) index declined 2.25 points on Monday to close at 2,641.58. Total turnover stood at Rs 5.525 billion, with 11,932,035 shares of 350 companies traded through 56,818 transactions. Share prices of 201 companies fell, while 72 gained and five remained unchanged. Sarbottam Paints and Mount Everest Hydropower recorded the highest gains, with their prices rising by nearly 15 percent. Reliance Spinning Mills gained 11.17 percent, while Sagarmatha Jalvidhyut Company rose 11.06 percent. Forward Microfinance posted the steepest decline, falling 6.63 percent. Among sectoral indices, Finance dropped 1.14 percent, the biggest decline, while Manufacturing advanced 1.30 percent. All other sectoral indices moved by less than 1 percent.
Gold rises Rs 1,600 to Rs 306,800 per tola
The price of gold increased by Rs 1,600 per tola in the domestic market on Monday, reaching Rs 306,800 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 305,200 per tola on the previous day. The price of silver also rose by Rs 60 per tola to Rs 4,770. Silver had been trading at Rs 4,710 per tola on the previous day.
Nepal approves Rs 3.77 billion in foreign investment commitments
Nepal approved foreign direct investment commitments worth Rs 3.77 billion for 191 projects during the first month of fiscal year 2026/27, from mid-July to mid-August 2026. According to the Department of Industry, 187 projects worth Rs 3.47 billion were processed through the automatic approval system, while four projects involving Rs 299.4 million went through the standard approval process. Small enterprises accounted for 188 projects, followed by two medium-sized and one large enterprise. Tourism attracted the largest investment, with Rs 1.63 billion committed to 33 projects, representing 43 percent of the total. The IT sector recorded the highest number of projects, with 128 ventures receiving commitments worth Rs 569.8 million. The proposed projects are expected to create 1,773 jobs. Authorities also approved three share purchase agreements worth Rs 254 million and eight technology transfer agreements, issued business visas to 134 individuals and processed outward royalty payments of Rs 242.2 million.
Taxpayer incentive scheme announces 17 cash prize winners
The Taxpayer Incentive Prize Program 2026 has announced 16 winners of Rs 100,000 each and one bumper prize winner of Rs 1 million. The bumper prize was won by a consumer who purchased goods worth Rs 350 from Ganesh Electronics and Mobile Center. The Inland Revenue Department announced the winners at a ceremony held at the Ministry of Finance on Monday in the presence of Finance Minister Swarnim Wagle and Finance Secretary Ghanashyam Upadhyay. Consumer participation in the scheme has increased significantly, with 357,149 cash bills uploaded between August 1 and 16.
NOC resumes regular LPG distribution through authorized dealers
Nepal Oil Corporation (NOC) resumed regular distribution of cooking LPG through authorized dealers after temporarily operating a centralized distribution system to ease supply shortages. Following special distribution arrangements at five locations on Saturday and seven additional locations on Sunday, the corporation has instructed residential consumers to purchase LPG directly from authorized dealers appointed by the respective gas industries. The bottling companies and authorized distributors have also been directed to submit detailed records of their operations and sales to help streamline distribution, prevent artificial shortages and maintain stability in the domestic energy market.
Govt revises agricultural and herbal insurance subsidy guidelines
The Ministry of Agriculture, Forestry and Environment has implemented the Agricultural, Livestock and Herbal Insurance Premium Subsidy Operational Guidelines, 2026, effective Monday. Approved by Minister Gita Chaudhary, the new framework provides for a nine-member steering committee led by the ministry secretary, along with provincial coordination committees to oversee insurance coverage for various agricultural, herbal and livestock products, including ginger, cardamom, rice and tea. Under the revised guidelines, the government will provide an 80 percent premium subsidy for insurance coverage of up to Rs 10 million and a 50 percent subsidy for coverage exceeding Rs 10 million.
Nepal collects 5.84 percent of annual revenue target in first month
The government collected Rs 92.22 billion in revenue during the first month of fiscal year 2026/27, equivalent to 5.84 percent of its annual target of Rs 1.58 trillion. According to the Financial Comptroller General Office, tax revenue amounted to Rs 85.19 billion, while non-tax revenue stood at Rs 7.03 billion by August 16. Meanwhile, the government spent Rs 41.88 billion during the review period, representing 1.97 percent of the total annual budget of Rs 2.12 trillion.
IRD records sharp rise in digital bill and QR transactions
The Inland Revenue Department has reported a substantial increase in consumer participation in its prize scheme, with 357,149 cash transaction bills uploaded between August 1 and 16, compared with 7,077 during the first 15 days of the month. QR-based participation also increased from 25,608,094 to 32,086,380 transactions, taking the combined total to 32,443,229. The department said 17 daily winners selected during the latter half of the month will receive Rs 133,334 each, equivalent to Rs 100,000 after tax deductions. One bumper prize winner will receive Rs 1 million, subject to a 25 percent tax deduction. Cash prizes for winners from the first half of the month have also been distributed.
NEA pre-tax profit falls Rs 3.87 billion amid rising forex liabilities
The Nepal Electricity Authority’s pre-tax net profit dropped by Rs 3.87 billion in fiscal year 2025/26 to Rs 5.04 billion, down from Rs 8.91 billion in 2024/25 and Rs 13.31 billion in 2023/24. The authority attributed the decline mainly to a 272.86 percent increase in foreign exchange liabilities, which reached Rs 11.51 billion due to currency fluctuations. Higher interest and depreciation costs also contributed to the decline. Despite the fall in net profit, the authority’s core business performance improved. Total revenue reached Rs 166 billion, while electricity sales increased 18.20 percent to Rs 148.62 billion. Gross profit rose 13.17 percent to Rs 31.23 billion and operating profit increased 7.28 percent to Rs 24.81 billion. NEA’s total assets grew 8.9 percent to Rs 779.19 billion, including Rs 206.26 billion invested in ongoing capital projects. Online tariff collections reached Rs 40.99 billion, average customer consumption stood at 2,088 units, and 217.3 million units of free electricity were supplied to nearly 2.59 million low-income households.
RSP lawmaker calls for higher minimum support price for paddy
Rastriya Swatantra Party (RSP) lawmaker Purushottam Yadav has urged the government to increase the minimum support price for paddy to better protect farmers from financial hardship. Speaking at a meeting of the House of Representatives on Monday, Yadav said farmers were facing serious difficulties due to shortages of fertilizers, seeds and irrigation facilities. He called for the minimum support price to be fixed at Rs 10,000 per quintal for Basmati paddy and at least Rs 5,000 per quintal for Bagaliya paddy produced in the Terai. He stressed that fair prices, easier access to agricultural inputs and effective crop insurance are essential to reducing farmers’ debt burden and improving their livelihoods.
Nepal reaches stage of exporting nearly Rs 30 billion worth of electricity
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said Nepal has reached a stage where it can export electricity worth nearly Rs 30 billion. Speaking at the 41st anniversary of the Nepal Electricity Authority, Shrestha said the expansion of power generation, transmission and distribution infrastructure, along with electricity access to millions of households, has enabled Nepal to enter the electricity export phase. He highlighted the contribution of private-sector power producers and other stakeholders and said future priorities should include increasing domestic electricity consumption, strengthening transmission and distribution networks and expanding international electricity markets.
Government forms task force to study revival of Birgunj Sugar Mill
The Ministry of Industry, Commerce and Supplies has formed a task force to examine the possibility of reviving the long-defunct Birgunj Sugar Mill. Minister Gauri Kumari Yadav initiated the process by forming a committee tasked with assessing the mill’s operational feasibility, financial requirements, legal status and physical infrastructure. The committee, coordinated by Shri Kant Yadav and comprising representatives from the ministry and Department of Industry, has been given 15 days to submit its report. It will assess the condition of machinery and buildings, land assets and recommendations made by previous committees to determine whether the existing infrastructure can be reused or upgraded with modern technology.
Foreign employment agencies suspend protests after agreement with government
The Nepal Association of Foreign Employment Agencies (NAFEA) has suspended its protest programs after reaching an agreement with the Ministry of Youth, Labor and Employment on Monday. The agreement focuses on expediting amendments to the Foreign Employment Act and Regulations. The understanding was reached during discussions held in the presence of Minister for Youth, Labor and Employment Ramjee Yadav. NAFEA had launched a 15-point protest on August 7 and announced plans to halt the dispatch of Nepali workers to destination countries from Monday. NAFEA President Dik Bahadur Khatri said the protest had been suspended temporarily as several of the association’s demands require policy and legal reforms.
Finance companies post 145 percent rise in combined profit
Finance companies in Nepal recorded a significant improvement in profitability during fiscal year 2025/26, posting a combined net profit of Rs 1.64 billion. The figure represents a 145 percent increase from the Rs 670.4 million recorded in fiscal year 2024/25. Most finance companies reported higher profits, led by Manjushree Finance. However, Reliance Finance, Progressive Finance, Shree Investment Finance and ICFC Finance recorded declines in profit, while Nepal Finance reported a negative net result during the review period.
440 MW Tila-1 hydropower project secures Rs 44 billion financing
The 440 MW Tila-1 hydropower project has achieved financial closure after a consortium led by NMB Bank committed Rs 44 billion to the project. The investment agreement is scheduled to be signed on Tuesday at the Radisson Hotel in Kathmandu, making the project the largest private-sector energy venture in Nepal. The Nepal Electricity Authority has signed a power purchase agreement covering 298 MW at a cost of Rs 58 billion. The remaining 142 MW is planned for export to India after the project secures the necessary private electricity trading licence. Project promoters will contribute Rs 14 billion in equity, marking a major investment in Nepal’s hydropower sector.
Syangja records more industrial closures than new registrations
Syangja recorded 334 industrial liquidations against 290 new business registrations in fiscal year 2025/26, resulting in a net decline of 44 commercial entities. According to the Integrated Services Office, liquidated businesses represented capital worth Rs 418.5 million, compared with Rs 364 million in investment generated by newly registered enterprises. Officials attributed the closures to youth migration, economic slowdown and the shutdown of businesses dependent on subsidies. Newly registered businesses are estimated to have created around 600 jobs. Meanwhile, 1,997 firms renewed their registrations, generating Rs 6 million in revenue. The businesses covered by the office represent investments of around Rs 2.50 billion and support approximately 4,000 jobs.
110 Dhanusha families receive land ownership certificates after 11 years
The Survey Office in Dhanusha has distributed land ownership certificates to 110 families in Ward No. 4 of Mithila Municipality, nearly 11 years after their land was surveyed. The survey of village block, or self-settled, land in the former Kajararamaul Village Development Committee was completed in fiscal year 2014/15. However, the distribution of ownership certificates was delayed due to inadequate public participation in the land registration process. After completing the necessary procedures for the surveyed and mapped plots, the Survey Office issued the certificates, formally recognizing the land ownership of 110 families who had been residing on the plots as self-settled occupants for years.
Beekeepers in Banke, Bardiya face heavy losses from pest infestation
Commercial beekeepers in Banke and Bardiya have suffered significant losses after beetle and scale insect infestations severely damaged bee larvae, food reserves and honey production. Farmers reported extensive and unusual hive losses among colonies taken to Dang for seasonal foraging. The infestation has raised concerns over commercial honey production and expected yields this season. Beekeepers have called for immediate institutional support, specialized veterinary assistance and effective treatment measures, warning that failure to address the problem could cause serious financial losses and threaten apiculture businesses in the region.
NMB Capital announces cash dividends for three mutual fund schemes
NMB Capital has announced cash dividends for unit holders of three mutual fund schemes following a meeting of its board of directors on August 14. The company has declared a 3.15 percent cash dividend for NMB Fifty, a 10 percent dividend for NMB Sulabh Investment Fund-2 and a 4.5 percent cash dividend, including taxes, for NMB Hybrid Fund L-2. The book closure date has been set for August 24. Unit holders who retain ownership through August 21, before the market closes on the Nepal Stock Exchange, will be eligible for the respective dividends.
Automobile, IT sectors seen as key drivers of Nepal’s economic growth
The Nepal Automobiles Importers and Manufacturers Association (NAIMA) organized a high-level discussion on the challenges and opportunities facing Nepal’s economy, with a particular focus on education, technical skills and industrial development. Industry leaders highlighted the automobile, information technology and tourism sectors as areas with significant potential for economic growth and job creation. They called for business registration, licensing and tax compliance procedures to be simplified through a centralized single-window system to encourage domestic employment and help reduce youth migration. They also stressed the need for investment in domestic vehicle manufacturing, including supply chains and local spare-parts production, while calling for academic curricula to be updated in line with changing industry requirements.
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