KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape presents a mixed picture, combining market weakness and rising consumer prices with several policy initiatives aimed at strengthening economic resilience and modernising key sectors. The 11.90-point decline in the NEPSE, alongside broad-based losses across sectors, indicates cautious investor sentiment, while rising gold and silver prices point to continued demand for traditional safe-haven assets. Meanwhile, currency in circulation has fallen below Rs 800 billion even as Nepal Rastra Bank’s balance sheet has expanded, reflecting shifts in liquidity and foreign-asset holdings.
The government is pursuing structural reforms through 27 proposed new laws and the review of 166 existing laws, signalling an effort to improve the legal environment for investment and economic activity. Greater private-sector access to the national electricity transmission grid could further support competition and investment in the power market.
At the same time, recent floods have exposed vulnerabilities in Nepal’s transport, supply and insurance systems. Extended customs hours, proposed emergency LPG distribution and insurance relief measures represent short-term responses to these disruptions. Concerns over procurement-system cybersecurity also highlight the need for stronger digital infrastructure.
Labour migration remains strategically important, with Nepal seeking changes to Malaysia’s recruitment system. Broader initiatives involving digital payments, employee training, tourism connectivity and infrastructure-related legal reforms indicate an ongoing push toward institutional modernisation, private-sector participation and greater economic resilience.
NEPSE drops 11.90 points as majority of stocks decline
The Nepal Stock Exchange (NEPSE) index fell 11.90 points on Friday to close at 2,587.25 as selling pressure prevailed on the final trading day of the week. The market remained predominantly negative, with 207 companies posting losses, while 61 advanced and 11 remained unchanged. A total of 356 securities changed hands through 43,685 transactions. Investors traded 11.91 million shares worth Rs 4.29 billion. Most sectoral indices ended lower, with the manufacturing and processing group recording the largest decline. Life insurance, development banks and hydropower companies also faced considerable selling pressure. NMB Bank and Siddhartha Bank posted the highest gains, while Sindhu Development Bank recorded the steepest decline, losing 8.55 percent.
Gold and silver prices rise in domestic market
Gold and silver prices increased in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 1,500 per tola (11.66 grams) to reach Rs 294,800 per tola. Gold was traded at Rs 293,300 per tola on Thursday. Silver prices also increased by Rs 25 per tola, reaching Rs 4,450 per tola, compared with Rs 4,425 per tola on Thursday, according to the federation.
Nepal Rastra Bank issues new Rs 1,000 note with enhanced security features
Nepal Rastra Bank has introduced a redesigned Rs 1,000 banknote incorporating updated visual and security features while maintaining the denomination’s existing dimensions. The Series 2025 note features light green as its dominant colour, enclosed by a purple border. The front displays Mount Everest along with a watermark featuring the rhododendron and the numeral 1000. It also includes the Roman letter M and horizontal lines to enable visually impaired people to identify the denomination by touch. The note features an image of Bhagwati that appears golden when viewed directly and turns green when tilted, along with a colour-changing security thread. The signature of Nepal Rastra Bank Governor Biswo Nath Poudel is also printed on the note. The reverse side features twin elephants, Ram and Laxman, born to Devkali at the government elephant breeding centre in Chitwan. It also depicts seven rhododendron flowers symbolising Nepal’s seven provinces and the historic pillar at Lhochok in Hanuman Dhoka.
Government plans 27 new laws to advance economic reforms
The government is preparing to introduce 27 new laws during the current fiscal year as part of its broader economic reform programme. The proposed legislation is aimed at strengthening the budgetary framework and establishing legal foundations for economic reforms, while a number of existing laws are also being reviewed for amendment or repeal. The government has already initiated the repeal of 15 outdated laws and is preparing additional legislation through the relevant ministries. Legal changes proposed by the private sector are also being incorporated into the reform process. The initiative covers laws governing investment and economic activities, with the government reviewing proposals previously submitted by business organisations. In total, 166 laws have reportedly been identified for possible amendment, while 54 have already received Cabinet approval. The reform drive comes as the government seeks to modernise the legal framework governing investment, business operations and infrastructure development.
Currency in circulation falls below Rs 800 billion
Currency in circulation in Nepal has dropped to Rs 794.02 billion at the end of the latest two-month period, falling below the Rs 800 billion threshold. Currency in circulation stood at Rs 801.62 billion at the close of the previous fiscal year, representing a decline of around Rs 7.62 billion over the two-month period. Meanwhile, Nepal Rastra Bank’s balance sheet expanded substantially, with total assets and liabilities surpassing Rs 4 trillion. They increased from Rs 3.875 trillion to Rs 4.044 trillion, a rise of Rs 169.09 billion. The expansion was mainly driven by increases in foreign assets and deposits held in government accounts. Foreign currency assets rose from Rs 3.73 trillion to Rs 3.90 trillion, including Rs 2.743 trillion invested in foreign securities, Rs 639.74 billion in fixed deposits with foreign banks and Rs 253.97 billion in gold certificates.
Private sector to access national transmission grid under new tariff
Private-sector electricity consumers and other third parties will be permitted to use Nepal’s national transmission grid under tariffs set by the Electricity Regulatory Commission. The commission has fixed transmission charges for short-, medium- and long-term access to the national grid as part of its open-access policy. For use ranging from 24 hours to one year, the charge has been set at 57 paisa per kilowatt-hour. For periods exceeding one year, a wheeling charge of Rs 412,755 per megawatt per month will apply. The tariffs were determined on the basis of the audited financial statements of the Nepal Electricity Authority. The arrangement establishes a framework for private-sector entities and other third parties to access the national transmission network under an open-access system. It also provides a defined pricing mechanism for transmission infrastructure and is intended to facilitate broader participation in Nepal’s electricity market.
Insurance regulator provides six-month interest-free relief to flood-affected policyholders
The Nepal Insurance Authority has announced relief measures for policyholders affected by severe flooding, allowing those unable to make regular premium or policy-loan instalment payments to receive an extension of up to six months without interest. The provision applies to life insurance policyholders experiencing payment difficulties because of flood-related circumstances. Insurance companies have also been directed to simplify documentation and procedures for death claims, surrender payments, policy loans and maturity payments in view of the challenges facing affected policyholders and beneficiaries. For death claims, applicants will need to provide basic details such as the insured person’s name, date and cause of death, policy number and relationship with the claimant. They must also submit documents proving their relationship with the insured and a government-issued identification document. The measures are intended to ease the financial and procedural burden on disaster-affected people and facilitate their access to insurance benefits.
Public procurement system faces cybersecurity and technical challenges
The Nepal Construction Business Federation has expressed concerns over technical difficulties, cybersecurity risks and problems encountered by contractors while submitting bids through the public procurement system. Discussions with the Public Procurement Monitoring Office focused on challenges related to both physical bid submissions and the electronic government procurement system, including issues surrounding its upgrade and operation. Construction businesses have called for stronger data and system security and measures to ensure that technical problems do not prevent eligible bidders from participating in procurement processes. They have also sought alternative arrangements when electronic system failures disrupt procurement activities. Among the proposals is allowing both hardcopy and electronic submissions until the upgraded system becomes fully operational. The federation has also suggested temporarily refraining from issuing new tenders except those deemed essential. It has further requested extensions for tenders already published when technical problems prevent contractors from submitting bids before the stipulated deadlines.
Nepal seeks removal of manpower firms from Malaysia’s foreign worker system
Nepal has requested Malaysia to remove Nepali manpower companies registered under its Foreign Worker Centralised Management System (FWCMS), objecting to the recruitment structure established for Nepali workers. Malaysia had initially designated 25 Nepali manpower companies as principal recruitment agencies and placed another 250 companies under them as supporting agencies. Nepal has opposed the arrangement, arguing that its foreign employment laws recognise all licensed manpower companies on an equal footing and that the Nepal-Malaysia labour agreement does not provide for separate principal and supporting recruitment agencies. The 25 companies designated as principal agencies have also requested their removal from the Malaysian system. Following their request, Nepal’s Ministry of Youth and Labour and Employment has raised the issue with Malaysia through the Ministry of Foreign Affairs. Malaysia, meanwhile, has instructed employers to recruit foreign workers only through agencies registered under the FWCMS. With around 1,200 licensed manpower companies in Nepal, the issue has implications for the country’s labour migration system and the recruitment of Nepali workers for employment in Malaysia.
Bhairahawa Customs extends operating hours to ease truck congestion after floods
The Bhairahawa Customs Office has extended its operating hours until 1 a.m. to clear the growing backlog of cargo trucks stranded at the Nepal-India border following floods, landslides and inundation that disrupted roads in various parts of Nepal. Trucks carrying imported goods from different parts of India were held up for extended periods after road connections within Nepal were damaged. Long queues of vehicles formed inside the Bhairahawa customs premises, along the six-lane Bhairahawa-Butwal trade corridor and on the Indian side of the border, about 14 kilometres from the customs point. The extended hours have been introduced in coordination with Indian customs authorities in Sunauli to facilitate a faster flow of vehicles into Nepal and reduce congestion on both sides of the border. The measure is also intended to minimise the impact of prolonged transportation disruptions on the supply of essential goods during the festival season. As damaged roads gradually reopen, authorities expect the longer customs operating hours to speed up the clearance and movement of cargo.
Security agencies may distribute LPG amid supply concerns
The government is considering allowing security agencies to distribute liquefied petroleum gas (LPG) through their existing outlets as part of contingency measures against possible supply disruptions. The proposed system would build on the existing practice under which the Nepali Army, Nepal Police and Armed Police Force operate outlets selling petroleum products. Authorities are considering adding LPG distribution at selected outlets operated by these agencies to create alternative supply channels if the regular distribution system encounters difficulties. The government is also considering ensuring that security agency outlets already selling petrol have at least one or two facilities capable of handling LPG. The proposal comes amid concerns over possible cooking gas shortages and the need to maintain an emergency distribution mechanism. Such an arrangement would provide an additional channel for supplying households with LPG during disruptions while enabling security agencies to assist the government in managing supply emergencies.
Passenger help desk opens at Gongabu Bus Park ahead of Dashain
A passenger assistance desk has been set up at Gongabu’s New Bus Park ahead of Dashain to help travellers deal with ticketing problems, overcharging, black marketing and other transport-related complaints during the festival period. Authorities are also preparing to establish similar desks at 14 locations across the Kathmandu Valley, including Kalanki, Nagdhunga, Balkhu, Chapagaun, Koteshwar, Sankhu and Chabahil. Police and transport officials will be stationed at the desks to receive complaints and take necessary action. The initiative comes as preparations intensify for the annual festival travel rush. However, advance ticket sales for Dashain travel have not yet begun, as the Department of Transport Management is still discussing the arrangements. With the festival approaching, the assistance desks are expected to provide passengers with a direct channel for reporting excessive fares, ticketing irregularities and other problems encountered during their journeys.
National Life Insurance completes four-day employee skills workshop
National Life Insurance Company has concluded a four-day employee skills enhancement workshop in Nepalgunj, focusing on strengthening staff capacity, professional expertise and workplace efficiency. More than 300 participants, including members of the management team, department heads and administrative staff, attended the programme held at Hotel Siddhartha. The workshop focused on enhancing employees’ capabilities in response to changing business needs, with particular attention to technology, artificial intelligence and digital connectivity. The company said it plans to give greater emphasis to technology-oriented training and employee development as part of efforts to strengthen professional competence. The programme also highlighted the connection between employee capacity and business growth, with improved skills expected to contribute to better service delivery and business expansion. Employees from different parts of the organisation participated in the four-day programme, providing a common platform for professional development and capacity building.
Himalayan Bank joins SmartPay network for interbank fund transfers
Himalayan Bank has signed an agreement with Smart Choice Technologies to operate SmartPay IBFT, an interbank fund transfer service that connects the bank to SCT’s digital payment network. Under the arrangement, Himalayan Bank customers will be able to transfer funds between accounts at participating banks and financial institutions through SmartPay IBFT. The service is intended to make interbank transactions more convenient, secure and efficient while strengthening connections among financial service providers. Developed and operated by Smart Choice Technologies, SmartPay IBFT supports digital fund transfers among participating banks and financial institutions, as well as wallets and remittance companies. The system is designed to improve interoperability across Nepal’s digital payment ecosystem and expand access to electronic financial services. Himalayan Bank’s entry into the network adds another banking institution to the system and gives its customers an additional option for transferring funds digitally between accounts.
Global IME Bank approves 10 percent dividend for shareholders
Global IME Bank has approved a total dividend equivalent to 10 percent of its paid-up capital from the profit of the previous fiscal year at its 20th annual general meeting held in Kathmandu. The approved dividend comprises a 4 percent bonus share and a 6 percent cash dividend, including the amount allocated for tax purposes. The annual general meeting also endorsed the annual report and consolidated financial statements presented by the board. The bank recorded a net profit of Rs 6.04 billion during the review period, an increase of 15.90 percent compared with the previous fiscal year. Its operating profit stood at Rs 9.60 billion. Following the issuance of bonus shares, the bank’s paid-up capital will rise to Rs 39.686 billion. The bank also reaffirmed its commitment to expanding its operations in a secure and balanced manner while adhering to policies and directives issued by the Government of Nepal and Nepal Rastra Bank.
Herb Production Company workers demand labour benefits and social security
Workers at the Herb Production and Processing Company have launched a protest demanding labour benefits and social security provisions guaranteed under Nepal’s labour laws. The workers, who say they have been employed by the company for a long period on low wages, began a full sit-in at the company’s production section after management and the board failed to implement a labour court ruling issued in their favour. They have been demanding implementation of the court decision as well as benefits provided under existing labour legislation. With the festival season approaching, the workers are also seeking minimum festival expenses, gratuity and other benefits stipulated by law. The dispute centres on the benefits sought by long-serving employees and the arrangements currently provided by the company. The workers have continued their sit-in at the production section, putting pressure on the management and board to implement the court ruling and address their demands concerning wages, social security and other employment-related benefits.
Lumbini tourism sector plans Buddhist circuit linking northeastern India
Lumbini is being positioned as a central hub for a broader Buddhist and cultural tourism circuit connecting Nepal with India’s eight northeastern states. Under a new agreement between the Lumbini Hotel Association Nepal and the North East India Tourism Federation, efforts will be made to strengthen direct tourism links between Lumbini and Assam, Meghalaya, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura and Sikkim. The initiative seeks to develop Lumbini not only as a tourism destination but also as a central transit and distribution point for regional travel. Buddhist pilgrims and tourists from northeastern India would be encouraged to visit Lumbini, while visitors arriving in Lumbini could be connected with nearby historical sites associated with the life of Buddha, including Ramgram, Tilaurakot and Devdaha. The initiative is part of broader efforts to promote religious and spiritual tourism through improved infrastructure, marketing and cross-border cooperation. The participating tourism organisations expect the proposed network to increase tourist movement and encourage visitors to extend their stays in the region.
Nepal Chamber calls for legal reforms to strengthen infrastructure and investment
The Nepal Chamber of Commerce has called for legal and policy reforms aimed at strengthening infrastructure development, enhancing Nepal’s competitiveness and supporting broader economic growth. The chamber has stressed the need to simplify and clarify procedures related to infrastructure development and make them more transparent as investment, technology, production, trade, tourism, employment and other economic activities continue to evolve. The proposed reforms extend beyond conventional physical infrastructure such as roads and bridges to include digital infrastructure, information technology, cybersecurity, energy, communications, smart infrastructure and emerging technologies. The private sector has maintained that reliable and modern infrastructure is essential for improving the investment climate and expanding economic activity amid rapid changes in the global economy. The call was made during a workshop organised by the Ministry of Physical Infrastructure and Transport on legal reforms related to investment and development. The chamber has sought a regulatory framework that can adapt to changing economic and technological needs while reducing unnecessary procedural obstacles.
Parsa consumer wins Rs 1 million under taxpayer reward scheme
A consumer from Parsa has won the Rs 1 million bumper prize under the taxpayer incentive reward programme for purchases made during the first half of the month. Lalbabu Sah Kanu was selected as the winner through a transaction involving the purchase of lubricating oil worth Rs 21,000. The transaction was among millions of purchases eligible for the reward draw. A total of 31.82 million transactions involving consumers who obtained bills through cash, online and card payments qualified for the draw during the period. Of these, 247,979 transactions involved cash payments with bills, while 31.57 million transactions were made through online or card-based payments. The winner was announced at a programme held at the Ministry of Finance. The taxpayer incentive scheme aims to encourage consumers to request bills when making purchases, thereby promoting formal transactions and improving tax compliance.
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