KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is experiencing a dynamic and diverse socio-economic landscape this Dashain season, marked by both progress and persistent challenges. While the Kathmandu Valley sees a massive exodus of over half a million people celebrating the country’s largest festival, many marginalized communities, like Banara’s landless squatters, remain excluded from its joys.
Economic activity is booming in certain sectors—local livestock markets in Saptari thrive, and domestic films capitalize on the holiday with early releases—yet other areas reveal signs of strain. EV imports have dropped sharply, signaling potential policy or economic headwinds, and NEA’s aggressive push for unpaid dues has sparked industrial unrest in Rupandehi. At the same time, Nepal’s resilience is visible in the growing importance of insurance amid repeated crises and in the global traction of its emerging startups.
On the cultural and adventure front, a record-breaking climbing season on Manaslu showcases both national pride and international interest in Nepal’s mountains. Together, these stories paint a picture of a country in transition—navigating tradition, inequality, innovation, and resilience all at once.
EV imports tumble nearly 70% in early FY 2025/26
Electric vehicle (EV) imports into Nepal have plunged by nearly 70% in the first two months of the current fiscal year. Just 486 four-wheeled EVs — including cars, jeeps, and vans — entered the country, compared to 1,600 units in the same period last year. The import value dropped to Rs. 1.27 billion, down from Rs. 3.81 billion. Additionally, 1,108 three-wheeled EVs worth Rs. 125 million were imported. China and India remain the primary sources. Last year, Nepal saw record EV imports of 13,569 units valued at Rs. 31.75 billion.
Insurance becomes a financial lifeline amid Nepal’s economic crises
Amid Nepal’s recurring economic shocks — from natural disasters to political unrest and pandemics — insurance is proving to be a vital buffer. Recent civil disturbances caused billions in damages, but insured companies successfully claimed compensation. As of mid-September, 18 insurers had reported NPR 23.39 billion in claims, mostly from Bagmati Province. In response to heavy losses, the government has begun insuring public infrastructure, which had previously lacked coverage. Experts stress that broadening insurance access is crucial for resilience, especially as 53% of the population remains uninsured.
Kathmandu exodus: Over half a million depart valley as Dashain begins
As the Dashain festival kicks off, more than 550,000 people have left the Kathmandu Valley in one of Nepal’s largest seasonal migrations. According to Kathmandu Valley Traffic Police, 553,261 individuals exited the capital between Ghatasthapana and Monday morning, while about 252,755 re-entered. A surge was observed between September 27 and 28, when 111,639 people traveled in 18,613 vehicles. To manage this high volume, extra traffic officers were stationed at key exit points and parking areas, said SSP Navaraj Adhikari. The numbers reflect the scale and cultural importance of Dashain, as well as the logistical complexity of facilitating the movement of hundreds of thousands of travelers.
NEA’s demand for trunkline dues triggers industrial dispute in Rupandehi
The Nepal Electricity Authority (NEA) has reignited tensions with Rupandehi-based industries by issuing a 21-day deadline to pay disputed charges for “dedicated” and “trunkline” electricity services. Industrial representatives argue they never received such supply and accuse NEA of unfairly demanding back payments despite regular bill settlements. The issue escalated after Energy Minister Kulman Ghising prioritized collection of these dues. Twenty-one factories, collectively employing over 7,000 workers, warn of possible shutdowns if forced to comply. Businesses also claim NEA did not provide essential “Time-of-Day” meter data and plan to legally challenge the charges, labeling them politically driven.
Dashain remains out of reach for Banara’s landless squatters
While most Nepalis enjoy Dashain festivities, 28 landless families living in Banara Camp, Kanchanpur, continue to struggle with poverty and hunger. Residing in makeshift tarpaulin shelters along the Banara riverbank, these families cannot afford basic meals. With the younger members away in India for work, the elderly, women, and children face dire conditions — illness, hunger, and sleepless nights under bridges. Despite repeated pleas, local authorities and the Land Problems Settlement Commission have failed to resolve their decades-long housing demands. For these families, Dashain is a time of hardship, not celebration.
New wave of Nepali entrepreneurs reaches global stage
Nepal’s startup ecosystem is experiencing significant growth, with local businesses gaining international recognition and investment. Notable examples include Adex International’s $2.4 million acquisition by a US firm, VEDA’s Rs 60 million investment from Shark Tank Nepal, and the global success of Nepal Tea Collective. While fintech leaders like eSewa and Khalti paved the way, emerging startups such as climate-tech company VaayuDrishti and edtech innovator VEDA are addressing local issues with global ambitions. Though the pandemic challenged the sector, programs like Shark Tank Nepal have revitalized entrepreneurial momentum, proving Nepali youth are building ventures that extend far beyond national borders.
Record-breaking season on Manaslu as climbers flood Nepal’s autumn peaks
Nepal’s autumn mountaineering season has set new records, with 374 climbers from 31 expedition groups receiving permits to climb Mount Manaslu (8,163m). Several have already reached the summit. In total, 667 climbers from 67 nations have obtained permits to scale 36 peaks, bringing in over Rs. 182 million in royalties—the highest revenue for an autumn season so far, with Rs. 150 million from Manaslu alone. Historic achievements include 16-year-old Nima Chhiring Sherpa becoming the youngest to summit Manaslu, and an 86-year-old climber from Spain also reaching the top, marking remarkable milestones in Nepal’s mountaineering history.
Local goats boost Dashain livestock market in Saptari
As Dashain nears, Saptari district’s goat market has seen a sharp rise in activity, especially in Rajbiraj, where daily trade has replaced the usual twice-weekly schedule. Local farmers are bringing goats raised at home, as demand surges for ritual offerings at major temples like Chhinnamasta, Rajdevi, Bhagwati, and Kankalini. Buyers overwhelmingly favor locally reared animals over imported ones. Many farmers are earning substantial incomes—Asha Devi Yadav of Rajbiraj, for instance, sold seven goats this season, making nearly Rs. 90,000. Others expect Dashain earnings between Rs. 80,000 and Rs. 100,000, highlighting the festival’s economic impact on rural households.
Three Nepali films hit theaters on Phulpati, breaking Friday release tradition
In a rare move, three Nepali films—Balidan, Maitighar, and Hari Bahadurko Jutta—premiered on Phulpati Monday, deviating from the traditional Friday release. The Dashain holiday inspired the early launch. Maitighar, directed by Milan Tamang and produced by Rohit Adhikari, and Dipendra K. Khanal’s Hari Bahadurko Jutta received universal ratings, making them suitable for all age groups. In contrast, Balidan, produced by Santosh Sen, was rated PG. The films feature popular stars such as Haribansha Acharya, Saugat Malla, Reecha Sharma, and Upasana Singh Thakuri. Screenings ran from morning until midnight, with Balidan securing the most showtimes. Cast members also visited cinemas to interact with fans.
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