KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy reflected mixed but largely positive momentum this week, with the Nepal Stock Exchange (NEPSE) gaining 30 points amid broad-based share price increases and exports surging by nearly 90% in the first fiscal quarter, driven by strong demand for soybean oil. The Nepal Rastra Bank intensified liquidity management through long-term deposit tools and announced a Rs 2.6 billion provident fund investment, while also beginning on-site supervision of 10 commercial banks to assess asset quality.
Fiscal challenges persisted, however, as mid-year cuts in government grants slowed budget execution. In governance and infrastructure, the government advanced e-governance policies, called for international bids to operate the Nagdhunga Tunnel, and began printing over a million pending driver’s licenses.
Meanwhile, the Social Security Fund expanded its reach with Rs 94 billion in collections, and new initiatives such as reduced startup loan limits, digital health insurance through eSewa and Shikhar Insurance, and Daraz’s last-mile delivery service highlighted growing digital and entrepreneurial engagement.
Complementing these developments, Nepal continued promoting tourism abroad and emphasized sustainable urban development and stronger financial federalism domestically.
NEPSE rises by 30 points as share prices of 205 companies increase
The Nepal Stock Exchange (NEPSE) began the trading week on a positive note on Sunday, with the majority of listed companies posting gains. The NEPSE index climbed by 30.75 points to close at 2,631.14. A total of Rs 9.20 billion worth of shares were traded during the session. Out of all traded companies, 205 recorded gains, 42 declined, and 3 remained unchanged.
Gold price rises slightly in local market
Gold prices saw a minor increase in the local market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold rose by Rs 700 per tola compared to Friday, reaching Rs 239,700 per tola, while silver fell by Rs 5 per tola to Rs 3,055.
Exports jump nearly 90% in first quarter of current fiscal year
Exports rose by nearly 90 percent in the first three months of the ongoing fiscal year, according to data from the Department of Customs. Soybean oil accounted for the largest share, followed by carpets and sunflower oil. Nepal exported soybean oil worth Rs 30.7 billion (14,855,541 kg) to India, carpets worth Rs 2.57 billion (93,438 sq. meters), and sunflower oil worth Rs 2.13 billion (3,906,336 liters).
NRB expands use of long-term liquidity tools
Nepal Rastra Bank (NRB) has been increasing the use of long-term liquidity instruments as liquidity management in the financial system grows more complex. On Sunday, the central bank issued a 175-day deposit collection instrument worth Rs 40 billion — the second such issuance within a week. According to NRB, the financial system had about Rs 68 billion in liquidity as of Saturday.
Social Security Fund collects Rs 94 billion
The Social Security Fund (SSF) has so far collected Rs 94.09 billion, with Rs 17.29 billion already disbursed to contributors. The fund currently has 2,592,141 registered contributors and 22,125 registered employers nationwide.
Government promotes e-governance in public enterprises
The government has introduced a policy to deliver services and manage financial transactions electronically across state-owned enterprises. The new Public Institution Management and Good Governance Policy 2025 aims to integrate public services digitally and enhance transparency in administration.
NRB to invest Rs 2.6 billion from provident and pension fund
Nepal Rastra Bank will invest Rs 2.6 billion from its provident and pension fund into term deposits at banks and financial institutions. The central bank issued a notice on Sunday inviting interest rate proposals for a 366-day term. Of the total investment, Rs 2.08 billion will go to Class A commercial banks.
On-site supervision begins for 10 commercial banks
The on-site supervision process for the asset quality review of 10 commercial banks has officially begun. A team from Howladar Yunus & Company, along with two auditors from Nepal Rastra Bank, started visits and discussions with bank management on Sunday. The Bangladeshi audit firm had requested necessary data before Dashain and has now commenced field supervision at all 10 banks.
Mid-year grant cuts slow budget implementation
The federal, provincial, and local governments have reduced various grant allocations mid-fiscal year, disrupting budget execution. The National Natural Resources and Fiscal Commission’s seventh annual report, submitted to the President on October 16, stated that not only were the recommended grants not fully released, but some allocations were only partially transferred to lower levels.
International tender announced for Nagdhunga Tunnel operation
An international tender has been opened to select a company for the operation and maintenance of the Sisnekhola Tunnel under the Nagdhunga Tunnel Construction Project. The tender was announced on Sunday, and submissions will be accepted until December 17, 2025. Although the tunnel is structurally complete, it remains non-operational due to a lack of skilled personnel and security arrangements.
Printing of 1.2 million driver’s licenses begins
Printing has begun for 1.2 million of the 2.5 million pending driver’s licenses. The Department of Transport Management and the Security Printing Center signed a memorandum of understanding on Thursday, under which the center will deliver 1.2 million licenses within six months. Department Director Rajiv Pokhrel and Security Printing Center Executive Director Devaraj Dhungana signed the agreement. The first batch will be printed within the current budget allocation and distributed to service users.
Startup loan limit reduced to Rs 2 million
The government has lowered the maximum loan amount for startup enterprises to Rs 2 million. The amendment to the Startup Enterprise Loan Program Operational Procedures 2025 reduced the previous Rs 2.5 million limit. Entrepreneurs can now access loans at a 3% interest rate without collateral, under the Ministry of Industry, Commerce, and Supplies.
National conference on smart urban planning begins in Kathmandu
A two-day national conference on smart urban planning and development kicked off in Kathmandu. Organized by the Nepal PHD Association with support from various government and non-government bodies, the event focuses on policy reforms and international best practices for sustainable urbanization. Tribhuvan University Vice-Chancellor Dr. Bindunath Lohani stressed the importance of prioritizing infrastructure, transport, the environment, and pollution control in developing smart cities.
Nepal promotes tourism at Bangladesh travel fair
Nepal showcased its tourism attractions at the 13th Bangladesh Travel and Tourism Fair (BTTF) in Dhaka. Acting Director of the Nepal Tourism Board, Sunil Sharma, highlighted Nepal’s diverse destinations and “lifelong memorable experiences.” Nepali Ambassador to Bangladesh Ghanshyam Bhandari emphasized the deep cultural and historical ties between the two countries and called for stronger tourism exchanges.
Two industries file petitions with energy regulator over power cut dispute
Panchakanya Steel Industries and Panchakanya Plastic Industries have lodged complaints with the Electricity Regulatory Commission after their power lines were cut off over unpaid dues. The Panchakanya Group–owned companies reportedly owe Rs 5.2 million and Rs 2.5 million respectively. Their electricity supply, along with that of 23 other industries, was disconnected on October 24 for non-payment.
Provincial finance ministers commit to strengthening financial federalism
Finance and planning ministers from all seven provinces have pledged to enhance and ensure transparency in financial federalism. During a conference in Hetauda, Bagmati Province, the ministers jointly issued the “Hetauda Declaration,” vowing to address existing weaknesses in implementation and make fiscal federalism more effective and accountable.
Muktinath Development Bank to upgrade to commercial bank
Muktinath Development Bank is preparing to transition into a commercial bank. The bank’s 19th Annual General Meeting, held in Pokhara and chaired by Khim Prakash Malla, approved the proposal to increase its paid-up capital to Rs 9.03 billion as part of the upgrade process.
Daraz launches ‘last-mile delivery solution’ through Daraz Express
E-commerce platform Daraz has introduced its “Last-Mile Delivery Solution” via Daraz Express (DEX), its in-house logistics wing. The service enables brands and sellers—including those not listed on Daraz—to deliver products quickly and securely. Daraz aims to build a nationwide, tech-driven delivery network to help businesses expand while focusing on their core operations.
eSewa and Shikhar Insurance launch “Sahara Health Insurance”
Digital payment platform eSewa and Shikhar Insurance Company have jointly launched “Sahara Health Insurance,” a new digital health insurance product for Nepali citizens aged 5 to 65. The plan aims to provide accessible, reliable, and technology-driven health coverage across the country.
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