KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mix of financial volatility, policy tightening, and infrastructure-driven momentum. The stock market continued its downward trend even as trading volume rose, while gold and silver prices surged, signaling investor caution.
Major policy interventions by Nepal Rastra Bank, including stricter lending caps, relief measures for disaster-hit borrowers, and expanded microfinance ceilings, highlight efforts to stabilize credit conditions. Large-scale infrastructure projects such as the Kathmandu–Terai/Madhesh Expressway and the Nar Khola hydropower project advanced steadily, though land disputes and contractor inefficiencies continue to impede progress elsewhere.
Meanwhile, agriculture and trade indicators remained uneven: unseasonal rain caused significant crop losses, customs revenue fell short in some regions, and paddy procurement and orange sales offered pockets of rural resilience. Governance and accountability concerns resurfaced with the CIAA’s appeal in the widebody case, underscoring ongoing scrutiny over public spending and institutional performance.
NEPSE slips for fourth consecutive day
The stock market declined for the fourth straight session on Wednesday, with the Nepal Stock Exchange (NEPSE) index falling by 13.52 points to settle at 2,631. Despite the drop, trading volume rose sharply to Rs 5.23 billion from Rs 4.48 billion the previous day. A total of 74 listed companies saw gains, while 177 recorded losses. The finance subgroup posted the strongest growth at 1.59 percent, whereas life insurance registered the heaviest decline at 1.18 percent. Five companies—including Sagar Distillery and Mithila Laghubitta—hit the 10 percent positive circuit limit.
Gold rises by Rs 800; silver hits new record high
Gold prices increased by Rs 800 per tola on Wednesday, reaching Rs 254,100 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Although still below the all-time high of Rs 258,000 set on October 17, silver continued its upward surge, climbing by Rs 110 per tola to a new record of Rs 3,655. Silver has been setting new highs every day since Sunday.
Nepal and Japan sign Rs 31.76 billion loan deal for Koteshwor flyover
Nepal and Japan have signed a loan agreement for the Koteshwor Chowk Improvement (Flyover) Project. Japan will extend a concessional loan of JPY 34.59 billion (about Rs 31.76 billion). Finance Secretary Dr. Ghanshyam Upadhyay and Japanese Ambassador Maeda Toru signed the agreement, which includes a 10-year grace period, a 30-year repayment schedule, and an annual interest rate of 0.2 percent. The Department of Roads will oversee the construction of underpasses and flyovers in Koteshwor and Jadibuti to ease Kathmandu Valley’s growing traffic congestion.
NRB increases microfinance loan ceiling to Rs 1.5 million
Nepal Rastra Bank has revised regulations for ‘D’ class microfinance institutions, raising the maximum loan limit for low-income and disadvantaged borrowers. Individuals can now access up to Rs 1.5 million in microloans backed by acceptable collateral for agriculture, microenterprise, or business use—up from the earlier ceiling of Rs 700,000. Additionally, the interest rate on NRB-provided credit facilities to licensed institutions has been reduced to 5.75 percent from 6 percent.
NRB issues notice to enforce new monetary policy review rules
Nepal Rastra Bank has circulated directives to banks and financial institutions to implement the revisions announced in the first quarterly review of the current fiscal year’s Monetary Policy. The update allows loan restructuring for businesses hit by floods and landslides in districts such as Ilam until mid-March 2026, provided lenders recover at least 10 percent interest. The central bank has also capped non-purpose personal loans, including overdrafts, at Rs 10 million, and reduced the interest rate on refinance and similar credit facilities for licensed institutions from 6 percent to 5.75 percent.
Kathmandu–Terai/Madhesh Expressway reaches 43.66% physical progress
The Nepal Army reports that the Kathmandu–Terai/Madhesh Expressway has achieved 43.66 percent physical progress and 44.89 percent financial progress as of mid-October in fiscal year 2025/26. Work is ongoing on 85 of the 89 planned bridges, and breakthrough and finishing work on the Mahadeutar, Dhedre, and Len Danda tunnels is advancing quickly. However, progress on the first 6.5-kilometer segment in Khokana, Lalitpur, remains stalled due to unresolved disputes over Guthi and private land acquisition. The 70.977-km expressway has an estimated cost of Rs 211.93 billion.
Rs 12.84 billion financing secured for 61 MW Nar Khola hydropower project
Nar Khola Hydro Energy Pvt. Ltd. has finalized financial arrangements for the 61-MW Nar Khola Hydropower Project, with Singati Hydro Ltd. serving as the lead investor. Chairman Batu Lamichhane and Kumari Bank Chief Regional Loan Officer Arpan Pokhrel signed the financial management agreement on Monday. The project’s total cost is Rs 12.84 billion, with Rs 9.63 billion provided as consortium loans led by Kumari Bank. The Manang-based project aims to produce 366.48 GWh annually and is scheduled for completion within three years.
Repair work begins on damaged Muglin–Pokhara road section after four months
Repairs have resumed on a portion of the Muglin–Pokhara road in Tanahun that collapsed four months ago near Durga Mandir in Byas Municipality-3. The section, temporarily widened to four lanes, gave way in August due to heavy traffic pressure. About 100 meters of the road were damaged, reducing traffic flow to a single lane, according to Project Engineer Bishnu Prasad Pandey. The eastern 41.5-km stretch of the highway is being upgraded to four lanes at a cost of Rs 6.213 billion with Asian Development Bank financing.
Evaluation begins for terminated Sunkoshi–Marin project contracts
The Sunkoshi–Marin Diversion Multipurpose Project Office has begun evaluating the construction work completed under contracts that were terminated on Wednesday. The review will determine the progress made and the remaining tasks for the cancelled civil and mechanical works related to the dam and powerhouse. The Rs 14.8 billion contract with Patel-Raman JV was voided after 61 percent of the contract period elapsed with only about 10 percent physical progress achieved. The government has already seized Rs 3.6 billion in performance and advance payment guarantees. Tunnel construction—one of the project’s major components—is already completed.
CIAA challenges Special Court’s acquittal in widebody case
The Commission for the Investigation of Abuse of Authority has appealed to the Supreme Court against the Special Court’s decision to clear all defendants in the Nepal Airlines widebody aircraft procurement case. The CIAA argues that the Special Court’s December 5, 2024 ruling was incorrect and has requested its reversal. The corruption case, originally filed on April 4, 2025, named 32 individuals—among them former Tourism Minister Jeevan Bahadur Shahi—and sought to recover Rs 1.471 billion in losses.
Unseasonal rain estimated to cut crop yield by 127,000 metric tons
A report by the Ministry of Agriculture and Livestock Development estimates that out-of-season rainfall has reduced agricultural output by around 127,383 metric tons, affecting paddy, sugarcane, vegetables, and fruits. Damage across five provinces covered 15,499 hectares, with total losses valued at Rs 3.761 billion. Madhesh Province was hit hardest, accounting for Rs 3.355 billion in damage, followed by Koshi Province. Vegetables experienced the highest single-category loss at Rs 1.257 billion.
Handicraft exports exceed Rs 27 billion annually
Nepal exported Rs 27 billion worth of handicraft goods in fiscal year 2024/25, according to the Trade and Export Promotion Center. Domestic consumption is estimated at an additional Rs 10 billion, and the sector supports about 1.1 million jobs. To further promote the industry, the Federation of Handicraft Associations of Nepal and Lalitpur Metropolitan City launched a five-day exhibition on Wednesday at Patan Museum and Patan Durbar Square, featuring traditional arts and cultural performances.
FMTC buys over 7,500 quintals of paddy in Banke
The Food Management and Trading Company in Nepalgunj, Banke, has purchased more than 7,500 quintals of paddy from local farmers since beginning procurement on November 9. By November 30, total purchases reached 7,503 quintals worth Rs 26.8 million. The company has already met its 5,000-quintal quota for medium-grade paddy and continues to buy coarse varieties. Each farmer can sell up to 40 quintals, with payments deposited directly into their bank accounts.
SEBON approves IPO of Reliance Spinning Mills after court order
The Securities Board of Nepal has approved the IPO issuance of Reliance Spinning Mills following a mandamus order from the Patan High Court. The company, part of the Golyan Group with a capital base of Rs 1.70 billion, is a major exporter. Its net profit rose sharply by 845 percent in the last fiscal year to Rs 476.3 million. The approval clears the way for the company to list on the Nepal Stock Exchange.
Maintenance completed on Manaslu trekking route for safer travel
Rehabilitation work on the challenging high-altitude stretch of the Manaslu trekking route—from Larke Phedi to Larke Pass in Manang—has been completed. The Annapurna Conservation Area Project provided Rs 500,000 to improve the 450-meter section, which lies between 4,850 and 5,106 meters in elevation. The upgraded trail is expected to enhance safety, attract more trekkers, and contribute to local employment and regional development.
Koilabash Customs falls short of revenue target by Rs 1.8 million
The Koilabash Customs Office in Dang collected Rs 3.9 million in revenue in the first four months of fiscal year 2025/26—Rs 1.8 million below its target of Rs 5.7 million. The office achieved only 68.03 percent of its goal. Chief Lok Bahadur Bista attributed the shortfall to Gen Z protests and tighter checks by Indian security forces, which discouraged cross-border movement. The customs office mainly generates revenue from taxes on Indian vehicles entering Nepal for religious and tourism activities.
Tanahun farmers earn Rs 20 million from orange sales
Farmers in Benikot, Byas Municipality-13 of Tanahun, have sold oranges worth Rs 20 million this season. Farmer Phal Bahadur Thapa alone earned Rs 1.65 million. Despite the village’s proximity to Damauli, poor and steep road conditions continue to hinder daily transport of oranges to markets in Kathmandu, Chitwan, and Pokhara.
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