KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

Wagle Urges NRNs to Invest in Nepal’s Economic Growth

Finance Minister Swarnim Wagle has called on non-resident Nepalis (NRNs) to invest in Nepal, assuring them that the government is committed to fostering a business-friendly environment. Addressing young Nepali entrepreneurs in Australia via a virtual interaction on Saturday, Wagle reaffirmed the principle of “once a Nepali, always a Nepali” and described the diaspora as goodwill ambassadors of the country. He highlighted tax and revenue reforms introduced through the national budget to encourage private investment and economic recovery. Wagle also assured investors that profits can be repatriated without difficulty and said the government has introduced NRN bonds, offshore bonds, and alternative financing mechanisms to facilitate greater diaspora investment.

Minister Says Dhanusha Plays Key Role in Nepal’s Tourism

Federal Minister for Agriculture, Forest and Environment Geeta Chaudhary has described Dhanusha’s contribution to Nepal’s tourism sector as exemplary. During a visit to Dhanushadham on Sunday, she said religious and natural heritage sites, including Janakpurdham and Dhanushadham, are vital to promoting tourism. Chaudhary said the government will explore linking these sites with national and international tourism and announced that an expert team will study the feasibility of establishing a zoological park in Dhanushadham. She said the proposal aligns with the government’s plan to establish one zoological park in each of Nepal’s seven provinces.

Import Boom Fails to Fill Government Coffers

Nepal’s imports rose by 16.2 percent in the last fiscal year, but customs revenue increased by only 6.5 percent, exposing a widening gap in government revenue collection. Despite imports reaching Rs 2.10 trillion, customs revenue totaled just Rs 515.57 billion, missing the government’s target by more than Rs 72 billion. Officials attributed the weak performance to rising imports of low- and zero-tariff goods and extensive customs duty exemptions. Revenue collections remained below target throughout the fiscal year, highlighting persistent challenges in mobilizing tax revenue despite stronger import growth.

Foreign Grants to Nepal Fall Short Again as Aid Commitments Decline

Nepal received only Rs 31.26 billion in foreign grants in fiscal year 2025/26, achieving just 58.5 percent of its Rs 53.45 billion target. Over the past five years, the country has met less than half of its annual grant targets on average, reflecting weak project implementation, shifting global aid priorities, and unrealistic budget projections. Foreign grant commitments also dropped sharply to Rs 40.88 billion, contributing to a 39.3 percent decline in overall foreign assistance. Despite the continued shortfall, the government has raised its foreign grant target to Rs 61.75 billion for the current fiscal year.

Demat Accounts Top 8 Million, Nearly 2.9 Million Remain Inactive

The number of Demat accounts in Nepal has surpassed 8 million, reaching 8,009,623, according to CDS and Clearing. However, with individuals allowed to hold up to two accounts, only 5.15 million Mero Share users are active, leaving an estimated 2.9 million accounts inactive. The data also shows that 18.60 billion shares have been dematerialized out of 19.28 billion listed shares. Around 673.5 million shares have yet to be converted into electronic form, suggesting many remain in physical certificates or have been lost or destroyed over time.

NEA Seeks Tax Clarification on VAT for Mid-June to Mid-July Power Use

The Nepal Electricity Authority (NEA) has sought clarification from the Inland Revenue Department on whether Value Added Tax (VAT) applies to electricity consumed between June 15 and July 16 under the Financial Act, 2026. Acting Executive Director Dirghayu Kumar Shrestha requested guidance on whether VAT should be charged when billing for that period is issued after July 17, as the Authority follows monthly meter readings. Energy Minister Biraj Bhakta Shrestha directed the NEA to resolve legal and practical uncertainties, stressing that consumers should not face unfair financial burdens and calling for an immediate solution to the confusion.

Nagdhunga–Sisne Khola Tunnel to Open on Monday

The Nagdhunga–Sisne Khola tunnel linking Kathmandu and Dhading will be inaugurated on Monday, nearly seven years after construction began. Built at a cost of about Rs 29 billion, the 2.68-kilometer tunnel was delayed by the COVID-19 pandemic and land compensation disputes. Initially, only emergency vehicles will be allowed to use the tunnel, with access gradually extended to other vehicles. Pedestrians, motorcycles, and vehicles carrying flammable materials will be prohibited. The tunnel will operate as a toll road, with charges ranging from Rs 60 for cars exiting Kathmandu to Rs 600 for heavy trucks entering the capital.

Foreign Employment Department Digitizes Decades-Old Case Files

The Department of Foreign Employment has accelerated the digitization of case files dating back to 2000 as part of a broader effort to modernize services and resolve long-pending complaints. The department is scanning surviving files, including those damaged during the Gen Z protest, while new complaints are now being registered through an online system that automatically generates legal documents. Officials said the initiative will help organize decades-old records, improve investigations, and speed up justice for victims. The digitization drive is part of the government’s broader plan to make Nepal’s foreign employment sector fully digital.

Indian Envoy Highlights IIT Roorkee’s Legacy in Nepal’s Development

Indian Ambassador to Nepal Naveen Srivastava has praised IIT Roorkee’s longstanding contribution to Nepal’s infrastructure and development during the annual gathering of the IIT Roorkee Alumni Association in Nepal. He highlighted the role of early Nepali engineers educated at the institute in building landmarks such as Singha Durbar and the Hetauda–Kathmandu ropeway. Srivastava also noted the more than century-old ties between Nepal and IIT Roorkee, recalling that a clock gifted to the institute by former Prime Minister Bir Shumsher Jung Bahadur Rana in 1896 still remains on display at the university’s main campus.

Nepal’s Large Cardamom Exports Hit Record Rs 12.63 Billion

Nepal exported a record 6.39 million kilograms of large cardamom worth Rs 12.63 billion in the last fiscal year, the highest volume and value ever recorded, according to the Kakarbhitta Customs Office. Export earnings increased by nearly Rs 5 billion from the previous year, driven by higher prices and stronger demand. Industry officials said stable market prices allowed most of the revenue to reach farmers directly. Large cardamom, cultivated in 54 districts, remains one of Nepal’s leading cash crops, with most exports destined for India. The record earnings have also encouraged farmers to expand cultivation.

Kakarbhitta–Laukahi Highway Expansion Nears Midpoint

The expansion of the 95-kilometer Kakarbhitta–Laukahi section of the East-West Highway has gained momentum, with construction progressing across all three project packages. Backed by a Rs 46 billion Asian Development Bank loan, the eastern section has reached 47 percent completion, while the second and third packages have achieved 42 percent and 19 percent progress, respectively. Contractors have completed the first phase of blacktopping on 16.5 kilometers and aim to pave another 15 kilometers by October, weather permitting. The project, which began in January 2024, is scheduled for completion by February 1, 2027.

Streetlight Drive Brightens Janakpurdham, Boosts Safety

Janakpurdham is undergoing a visible transformation as the sub-metropolitan city expands its “Bright Janakpurdham” campaign with high-mast and sensor-equipped streetlights. Residents say the improved lighting has made roads safer, reduced incidents of theft and mugging, and encouraged nighttime movement. The project has illuminated major routes, including the railway station–airport corridor, Janaki Temple–Ramanand Chowk, and the Parikrama Route, with installation continuing in other areas. City officials say the initiative is part of broader efforts to improve urban infrastructure, sanitation, and the overall appearance of Janakpurdham.

Doorstep Passport Delivery Service Gains Popularity in Sindhuli

The government’s doorstep passport delivery service is gaining traction in Sindhuli, with 182 residents receiving their passports at home within two months of its launch. Introduced through a partnership between the District Administration Office and the District Post Office, the service aims to spare applicants the need 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 around 5,000 new passports were issued in the district during the last fiscal year.

Tourist Arrivals Rise in Chitwan Despite Monsoon

Chitwan’s tourism sector is witnessing a strong monsoon-season rebound, with hotel occupancy rising to around 50 percent from the usual 30 percent, driven by the two-day weekend policy and school holidays. Domestic tourist arrivals have increased by nearly 25 percent compared to last year, while Indian and Chinese visitors have also grown. Tourism entrepreneurs attribute the rise to favorable travel trends and Chitwan’s appeal as a wildlife destination. Despite poor road conditions affecting some travel plans, popular destinations such as Sauraha, Patihani, Jagatpur, and Meghauli continue to attract visitors for safaris, wildlife viewing, and nature-based activities.

Malika Rural Municipality Identifies 35 New Tourist Destinations

Malika Rural Municipality in Myagdi has officially declared 35 tourist destinations across its seven wards to promote local tourism and economic growth. The sites include lakes, caves, temples, traditional cultural attractions, mining sites, and popular trekking and picnic areas. The destinations were unveiled during a joint program organized by the rural municipality, the Myagdi Chamber of Commerce and Industry, and the Inland Revenue Office. Local officials said the identified sites will be actively promoted throughout the current fiscal year to attract more domestic and international visitors and strengthen the local economy.

Highway Hotel Fined for Serving Stale Food in Dang

A hotel along the East-West Highway in Dang has been fined Rs 25,000 for violating 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 inspectors found stale and unhygienic food stored in refrigerators, artificial food coloring, poor kitchen sanitation, the absence of a price list, and foul odors. Officials said the hotel had ignored repeated warnings to improve its standards. The inspection team also monitored seven other hotels in the Deukhuri area as part of its food safety campaign.

Banke Sees Surge in Online Stock Investors

Interest in Nepal’s stock market continues to grow in Banke, with around 45,000 investors now using the Trade Management System (TMS) for online trading. According to market officials, the rise has been driven by easier access to technology, expanding digital services, and growing awareness of share investing. The district has nearly 62,800 Demat accounts, although about 10 percent remain inactive. Many new investors are opening accounts primarily to apply for initial public offerings (IPOs). Nepalgunj has also emerged as a trading hub for investors from neighboring districts, including Bardiya, Dang, Kailali, Kalikot, and Jumla.

Majhgaun Airport Misses Deadline as Reconstruction Stalls

The reconstruction of Majhgaun Airport in Kanchanpur has missed its three-year completion target, with only about 75 percent of the project finished. Authorities have extended the deadline by another year after work slowed due to delays in budget contributions from provincial and local governments. Officials said Rs 50 million in federal funding lapsed 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, but locals say repeated political visits and promises have yet to translate into meaningful progress.

Baitadi Traffic Police Collect Rs 1.29 Million in Fines

The Baitadi District Traffic Police collected Rs 1.298 million in revenue from 1,508 traffic offenders during the last fiscal year. According to the District Traffic Police Office, most actions were taken against jeep, car, and van drivers, followed by motorcyclists, tempos, trucks, tractors, and buses. During the same period, the district recorded 62 road accidents, claiming 34 lives and injuring 176 people. Traffic police said enforcement efforts will continue to improve road safety and encourage compliance with traffic regulations.

Mahalaxmi Bikas Bank Wins International Banking Award

Mahalaxmi Bikas Bank has received the ‘Rising Star–Growth’ award at the 4th Emerging Asia Banking Conclave & Awards in New Delhi, organized by the Indian Chamber of Commerce. The bank said the recognition honors its achievements in digital banking, innovative financial products, business expansion, financial inclusion, and responsible banking. Banks from India, Nepal, Sri Lanka, Bangladesh, and Myanmar participated in the event. The bank said the award will strengthen its international profile and follows its earlier recognition for excellence in asset quality.

Kist Medical College Revenue Jumps 45% in 2025

Kist Medical College posted a 45% rise in revenue in 2025, with total earnings climbing to Rs 1.49 billion from Rs 1.03 billion a year earlier. The growth was fueled by a 33% increase in medical college income and a 56% surge in hospital revenue, following the expansion of its MBBS intake from 100 to 120 seats. Despite stronger revenue, the institution’s operating profit margin declined to 18%. The Tribhuvan University-affiliated college, which runs a 300-bed hospital in Lalitpur, has secured credit facilities totaling Rs 1.50 billion, including Rs 1.15 billion in long-term loans.

Gold, Silver Prices Rise in Domestic Market

Gold and silver prices increased in Nepal’s domestic market on Saturday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 1,600 per tola (11.66 grams) to Rs 287,100, up from Rs 285,500 on Friday. Silver also gained Rs 60 per tola, with the price reaching Rs 4,410, compared with Rs 4,350 the previous day. The latest increase continues recent fluctuations in precious metal prices in the domestic market.