KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflected a mix of volatility, structural strain, and cautious optimism, as capital markets weakened—with NEPSE posting broad losses despite higher trading turnover—while gold prices surged amid global uncertainty, underscoring risk-averse investor behavior. At the same time, foreign direct investment commitments nearly doubled, signaling external confidence even as domestic regulatory bottlenecks, such as SEBON’s IPO approval backlog and excess liquidity in the banking system, pointed to persistent institutional inefficiencies.
Policy pressures intensified with the Nepal Rastra Bank preparing its monetary review to revive a slowing economy, while the government faced scrutiny over health-test fee hikes for migrant workers. Parallel developments showed efforts to modernize key sectors—through AI-driven tourism training, a push for a faceless tax system, and progress on major hydropower and infrastructure projects—contrasted by governance challenges, including a Supreme Court contempt case and the disappearance of government scientists abroad.
Meanwhile, diaspora engagement strengthened with the unification of NRNA factions, and corporate resilience was illustrated by Bhaktabhateni’s recovery after protest-related destruction, collectively revealing an economy in transition, grappling with structural weaknesses but buoyed by pockets of reform and investment momentum.
NEPSE declines 26.51 points on Monday
The Nepal Stock Exchange saw a significant decline on the first trading day of the week, with the index falling 26.51 points to close at 2,649.52. Despite the drop, trading activity increased: 342 companies traded 15.73 million shares worth Rs 7.08 billion, up from 333 companies trading shares worth Rs 6.66 billion on Thursday. Nearly all sectors recorded losses except production, processing, and mutual funds. Major declines were observed in Investment (-1.48%), Hydropower (-1.31%), Microfinance (-1.30%), Life Insurance (-1.20%), Development Banks (-1.09%), Banking (-1.08%), and Others (-1.04%). Five companies hit their upper circuit limits, including Sagar Distillery (+10%), Nifra Green Energy Debenture (+6%), and Swastik Laghubitta, Jhapa Energy, and Shreenagar Agritech (+9.99%).
Gold surges to Rs 252,200 per tola in Nepal as global prices rise
Gold prices in Nepal continued to climb, following increasing global market rates and strong investor demand. The Federation of Nepal Gold and Silver Dealers’ Association set the domestic price at Rs 252,200 per tola (11.66g), up from Rs 250,600 on Friday. Silver prices also rose, reaching Rs 3,490 per tola compared to Rs 3,345 previously. On the international market, gold is trading at USD 4,175 per ounce, while silver stands at USD 54 per ounce. The upward trend reflects global economic uncertainty and heightened interest in safe-haven assets.
Nepal’s FDI commitments nearly double
Nepal attracted foreign direct investment commitments totaling Rs 36.68 billion for 382 projects between mid-July and mid-November of fiscal year 2025/26—almost double the Rs 18.65 billion pledged during the same period last year. Cumulative FDI commitments since the 1980s have now climbed to Rs 686.05 billion. This year, Rs 34.31 billion was pledged through the approval route, while Rs 2.36 billion came via the automatic route. Small-scale industries made up the majority of new registrations, with the ICT sector leading by number of projects, and agriculture drawing the largest investment at Rs 21.88 billion. Foreign investors also committed to creating 33,814 jobs. Meanwhile, profit repatriation saw a steep rise, reaching Rs 2.90 billion, compared to just Rs 67 million last year.
NRNA factions reunify through landmark agreement, pledging stronger global Nepali engagement
The two rival groups within the Non-Resident Nepali Association (NRNA) formally reconciled today, uniting the faction led by Dr Badri KC—elected during the 11th General Convention—and the faction led by Mahesh Shrestha—elected during the Unity General Convention. The agreement was signed at the Office of the Prime Minister and Council of Ministers in the presence of Prime Minister Sushila Karki and the minister for communications. The two sides endorsed a 10-point pact, including a commitment to hold the 12th General Convention within four months. Leaders emphasized that unity would prevent future organizational divisions and strengthen the NRNA’s role in Nepal’s economic development. The unification is expected to enhance engagement with Nepal’s global diaspora of more than eight million NRNs.
Himalayan Reinsurance leads trading as NEPSE posts broad decline
Nepal’s stock market opened the week on a downward trend, with the NEPSE index sliding 26.51 points and share prices falling for 221 listed companies. Several firms, however, recorded substantial trading volumes. Himalayan Reinsurance topped the list with transactions worth Rs 22.56 crore, followed by Joshi Hydropower at Rs 21.82 crore, Green Venture at Rs 21.36 crore, NRN Infrastructure & Development at Rs 21.24 crore, and Nepal Life Insurance at Rs 18.05 crore. Other actively traded companies included Nyadi Group Power, Himalayan Distillery, Sanima Mai Hydropower, Mountain Energy Nepal, and Reliable Nepal Life Insurance—indicating sustained investor interest in select high-value stocks despite the overall market dip.
NRB prepares monetary policy review amid slowing economy and excess liquidity
Nepal Rastra Bank is gearing up to release its first-quarter monetary policy review at a time of subdued economic activity, weak credit uptake, and surplus liquidity across the banking sector. Despite historically low lending rates, over Rs 11 trillion in loanable funds remain unused, and banks continue to struggle to expand their loan portfolios. Declines in production, consumption, and employment have raised expectations for policy measures that could energize the economy. Stakeholders have urged the central bank to introduce provisions that mobilize idle liquidity, stimulate lending to productive sectors, support businesses affected by recent protests, and ease access to loans for agriculture, tourism, and small enterprises. Economists emphasize the need for a balanced interest rate strategy to revive investment and growth.
Pokhara hosts second Daai Festival to promote traditional farming and tourism
The second Daai Festival took place on Saturday in Puranchaur, Pokhara, with the goal of encouraging youth participation in traditional agriculture and promoting tourism. Organized by the Pokhara Tourism Council, the event was inaugurated by Mayor Dhanraj Acharya, who highlighted the festival’s role in protecting traditional farming practices and uplifting farmers. Events included paddy threshing with five pairs of bullocks, traditional contests, and the honoring of farmers who harvested up to 500 muri of paddy. Visitors—both locals and tourists—enjoyed cultural demonstrations, traditional snacks, and panoramic Himalayan views. The festival, supported by Pokhara Metropolitan City, is expected to continue as a platform for agricultural promotion and off-season tourism.
SEBON’s leadership vacuum and staff protests delay IPO approvals, 82 companies on hold
The Securities Board of Nepal (SEBON) is struggling to clear IPO applications amid leadership disruptions, administrative delays, and internal staff protests. A total of 82 companies are awaiting approval to issue ordinary shares, amounting to Rs 54.8 billion in planned public offerings. Hydropower companies alone account for Rs 17.65 billion of this figure. Despite the appointment of new chairman Santosh Narayan Shrestha, procedural hurdles, manpower shortages, regulatory complexities, parliamentary pressures, and political interference have slowed progress. Analysts warn that continued delays could disrupt project financing and hinder the development of Nepal’s capital market, which currently lists 276 companies.
Supreme Court orders contempt proceedings over government obstruction of insurance authority chief Sharad Ojha
The Supreme Court has directed the registration of a contempt of court case after the government barred Nepal Insurance Authority Chairperson Sharad Ojha from entering his office despite a court order. Ojha had challenged his removal through a writ petition, after which the court issued an interim order on Bhadra 23 allowing him to remain in the role until Asoj 26. Due to the court arson incident, he received the certified order late and resumed duty; however, the Finance Ministry instructed him not to attend office and recommended appointing Joint Secretary Janak Sharma as acting chair—a move approved by Prime Minister Sushila Karki. In response, Ojha filed a contempt petition, prompting the court to initiate proceedings.
Eleven agricultural scientists missing abroad after study leave, NARC issues notice
Eleven agricultural scientists affiliated with the Nepal Agricultural Research Council (NARC) have failed to return to their posts after going abroad on study leave—some absent for as long as nine years. NARC published a seven-day public notice on Sunday seeking clarification from the researchers, who hold permanent positions but did not report back even after completing their academic programs abroad. Those missing include employees from key research institutions such as the National Horticulture Research Centre, National Food Research Centre, and multiple regional research directorates. NARC warned that continued absence without explanation could lead to termination of employment.
Nepal launches AI-driven tourism training to modernize trekking and promote digital skills
A four-day training program on technology-integrated tourism and artificial intelligence kicked off today, with participation from several trekking companies. The training aims to enhance tourism promotion, destination development, capacity building, and safety through AI-driven tools. Nepal Tourism Board CEO Deepak Raj Joshi highlighted the growing role of technology in transforming Nepal’s tourism industry. TAAN President Sagar Pandey said integrating AI would modernize the sector and strengthen its appeal to younger generations. Senior Vice President Karma Sherpa underscored AI’s importance in today’s digital landscape, while CEO Ramchandra Sedai emphasized its role in upgrading professional competency. The program is jointly organized by TAAN, NTB, and the UNDP Sustainable Tourism Project.
Finance Minister pushes for faceless tax system to curb discretion and corruption
Finance Minister Rameshwar Khanal is advancing sweeping tax reforms aimed at reducing face-to-face interactions between taxpayers and officials to eliminate discretionary decision-making and entrenched corrupt practices. As part of the effort, reference price books used in customs offices are being phased out to prevent unnecessary human interference; the reform has already been implemented in two offices and is expanding nationwide. Salaried taxpayers can now obtain tax clearance certificates online, ending the need for in-person visits. The ministry is also integrating all tax-related software systems to reduce repeated contact during investigations. Although the reforms aim to create a predictable, automated, and transparent tax environment, concerns remain about resistance within the bureaucracy.
Bhatbhateni begins recovery after Gen Z protest damage
Bhatbhateni Supermarket, Nepal’s largest retail chain, is slowly restoring its operations after the Gen Z protest on September 24 destroyed 12 stores and the main warehouse, causing an estimated NPR 12 billion in losses. CEO Min Bahadur Gurung announced that the Baluwatar warehouse will reopen on Mangsir 18, while the Koteshwor and Maharajgunj outlets are expected to resume operations by Falgun. Despite extensive damage, the company has retained more than 5,000 employees, continued providing bonuses, and maintained full engagement in social initiatives. Founded in 1984 as a small grocery store, Bhaktabhateni now runs 28 branches nationwide and generates annual revenues exceeding NPR 25 billion.
NRNs and overseas workers to receive Rs 12.95 billion in shares of Upper Arun hydropower project
The 1,063 MW Upper Arun Hydropower Project in Sankhuwasabha will allocate Rs 12.95 billion worth of shares to Non-Resident Nepalis (NRNs) and Nepalis working abroad. The Nepal Electricity Authority–led project, estimated at Rs 239.79 billion including interest, will be financed through 30% equity and 70% debt over a seven-year construction timeline. Out of the 49% public equity, 18% is earmarked for NRNs and overseas workers, 10% for local residents, and 18% for the general public. Preparatory works—including a 21-km access road and a 70-meter steel arch bridge—are progressing. Once completed, the project is expected to generate 453 million units of electricity annually.
Nepal Airlines’ A320 fleet unaffected by global Airbus grounding
Nepal Airlines’ Airbus A320 aircraft remain fully operational despite a worldwide grounding order affecting more than 6,000 A320-series jets due to a flight-control software fault. The airline confirmed that its A320s do not use the problematic software and therefore do not require grounding or immediate technical intervention. The global alert followed an October 30 incident in which a JetBlue A320 experienced a sudden altitude loss while descending from Cancun to New Jersey, injuring several passengers. Airbus has instructed affected airlines to conduct technical inspections and apply software updates, but Nepal Airlines’ fleet remains unaffected and safe for continued flights.
NRN Infrastructure leads investor preference as Nepse records over Rs 5 trillion in Kartik trades
A detailed review of NEPSE’s trading activity for Kartik shows that NRN Infrastructure & Development attracted the highest investment value, with over Rs 3.61 billion in traded shares, even though it did not top the charts in volume or transaction count. Union Hydropower ranked second with Rs 3.37 billion in trades, followed by Radhi Hydropower. Meanwhile, Himalayan Bank’s founder shares recorded Rs 3.33 billion in dealings after Pakistan’s Habib Bank sold its stake in National Life Insurance. Other highly traded companies included Nepal Reinsurance, Shivam Cement, Himalayan Distillery, Butwal Power Company, and Himalayan Reinsurance. The top 10 traded stocks made up more than 5% of the month’s total Rs 5.27 trillion turnover, although overall trading was 39% lower compared to last year.
Nepal pledges $200,000 to support Sri Lanka’s flood recovery
The Government of Nepal has committed $200,000 in financial aid to assist Sri Lanka in responding to severe flooding and supporting rehabilitation efforts. The Ministry of Foreign Affairs announced the contribution on Sunday, expressing solidarity with the Sri Lankan people and confidence in their resilience during the crisis. Heavy rainfall over the past week has caused widespread flooding across Sri Lanka, leading to at least 193 deaths, more than 200 missing individuals, and the destruction of over 20,000 homes. Around 108,000 residents have been relocated to temporary government shelters, and nearly one-third of the country is grappling with electricity outages and drinking water shortages.
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