KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is undergoing rapid economic and technological transformation, led by a sharp increase in digital payments, with mobile banking and QR code transactions surpassing traditional card use; however, this shift has exposed serious cybersecurity weaknesses, prompting the government to propose legal reforms and public awareness initiatives.
At the same time, political unrest driven by Gen-Z protests has slashed tourist arrivals by 45% ahead of Dashain, severely affecting the hospitality sector despite promotional campaigns. Online shopping continues to rise, though physical stores remain dominant during festivals due to consumer preferences for quality checks and discounts.
The Civil Aviation Authority has imposed revised domestic airfare ceilings to protect consumers from overpricing. Infrastructure developments also present mixed outcomes—while the long-delayed Rahughat hydropower project nears completion, road obstructions in Mustang have stranded trucks, revealing persistent logistical issues.
Additionally, heavy rainfall has triggered landslide threats along key highways, prompting emergency responses. On the healthcare front, Norvic International Hospital’s expansion cost has surged due to design changes and equipment upgrades. Meanwhile, Bhojpur’s herb farmers are demanding fair pricing and better market access to escape dependence on middlemen, reflecting broader rural economic grievances.
Together, these developments highlight a nation in flux—advancing technologically while contending with systemic governance, climate, and market access challenges.
Digital payments surge in Nepal, but cyber threats raise alarms
Nepal has seen a dramatic increase in digital transactions since the COVID-19 pandemic, with widespread adoption of mobile banking, QR code payments, e-wallets, and debit/credit card use. According to Nepal Rastra Bank, in Asar 2082 alone, mobile banking handled Rs 5.3 trillion, QR payments reached Rs 1.13 trillion, and e-commerce transactions totaled Rs 1.46 billion. Digital wallets and internet banking accounted for Rs 48.44 billion and Rs 25.33 billion respectively. QR payments now average Rs 3 billion daily, surpassing card usage. However, experts warn of rising cyber vulnerabilities, as digital fraud has led to losses exceeding Rs 800 million. In response, authorities are planning public awareness initiatives, and a new IT and Cybersecurity Bill is being drafted to enhance digital security regulations.
Tourist arrivals fall 45% ahead of Dashain
The Gen-Z protests impacted Nepal’s tourism sector, causing a steep decline in foreign visitors during the peak season. According to the Nepal Tourism Board (NTB), international tourist arrivals in September dropped by 45% compared to last year—from 3,300 to around 1,600. Tour operators report major destinations are unusually empty during what is typically a busy period. NTB CEO Deepak Raj Joshi acknowledged the setback but remained hopeful that online promotion and the “Nepal Now” campaign could drive recovery. While some trips have been postponed rather than canceled, businesses in the hospitality sector are preparing for significant financial losses during Dashain.
Online shopping gains ground, but festival crowds favor physical stores
E-commerce continues to grow in Nepal, with consumers increasingly shopping via platforms like Facebook, Instagram, TikTok, and WhatsApp for items such as clothing, electronics, and groceries. Many retailers now operate both online and in-store to meet demand. While online shopping is favored for its convenience, traditional brick-and-mortar stores remain the top choice during major festivals like Dashain and Tihar. Shoppers still prefer to visit malls and stores to benefit from in-person discounts and check product quality firsthand. Analysts note that while non-essential items are increasingly bought online, essentials are still mostly purchased offline due to trust and quality concerns.
CAAN revises domestic airfare caps to prevent overpricing
The Civil Aviation Authority of Nepal (CAAN) has updated maximum fare limits for domestic flights to curb excessive pricing. The highest ceiling is for the Kathmandu–Dhangadhi route at Rs 17,579, followed by Kathmandu–Nepalgunj at Rs 13,103, and Kathmandu–Bhadrapur at Rs 12,112. Other routes include Kathmandu–Biratnagar (Rs 9,785), Kathmandu–Pokhara (Rs 6,635), Kathmandu–Bharatpur (Rs 4,643), and Kathmandu–Simara (Rs 3,978). CAAN has directed airlines and travel agents to strictly adhere to these fare ceilings.
Rahughat hydropower project enters final phase after multiple delays
The 40 MW Rahughat Hydropower Project, led by Raghuganga Hydropower under Nepal Electricity Authority, is nearing completion with 90% of construction work done. Indian contractor Jayprakash Associates is handling the Rs 8 billion civil works, which have faced repeated delays due to the pandemic, natural disasters, and logistical setbacks. The current completion target is November 27, 2025. Project Manager Raj Bista confirmed that tunnels and the powerhouse are nearly finished, while equipment installation is ongoing. Over 500 workers are active at the site, including during Dashain. Electromechanical work by contractor BHEL is expected to finish by December 31.
Eighteen Sino Hydro trucks stranded at Mustang customs post
Eighteen heavy trucks belonging to Sino Hydro Power Company are stuck at Nechung Customs Office in Mustang due to an incomplete road diversion at Ghami Khola on the Jomsom–Korala route. Although medium trucks are using a temporary bridge, it is unsuitable for 10-wheelers. Chief District Officer Bishnu Prasad Bhusal said a permanent solution will be sought after Dashain. The 40-meter bridge, contracted in 2018 for Rs 6.8 crore, remains just 75% complete, delayed by construction challenges.
Heavy rain threatens highways, authorities activate emergency teams
Following heavy rainfall, the Department of Roads has deployed emergency response teams to key highway sections prone to landslides and blockages. Acting on alerts from the Department of Hydrology and Meteorology and the National Disaster Risk Reduction and Management Authority, road offices have been instructed to prepare contingency plans. Critical highways under monitoring include Nagdhunga–Mugling, Mugling–Narayangadh, BP Highway, Kantipath, Tribhuvan Highway, and Daunne. Authorities are using heavy machinery to clear debris within three hours of detection and have advised the public to avoid nighttime travel due to safety concerns.
Norvic hospital expansion budget rises to Rs 36.7 billion
Norvic International Hospital and Medical College is expanding its planned capacity from 200 to 300 beds, increasing total project costs to Rs 36.74 billion—up from the earlier estimate of Rs 23.75 billion. The cost hike is attributed to updated designs and the addition of advanced medical technologies. As of July 2025, Rs 9.14 billion has already been spent. The project, majority-owned by Chaudhary Group through BLC Holdings, is expected to become operational by September 2026. In 2024, Norvic recorded Rs 2.03 billion in revenue with an 8% profit margin.
Bhojpur herb farmers demand fair prices and better market access
Herb cultivators in Bhojpur district are calling for government action to ensure fair prices and stable markets for their medicinal crops, including chiraito, satuwa, and cardamom. Farmers say the absence of official price controls and reliable market data forces them to rely on middlemen, who often pay below-market rates. Nima Sherpa, a local grower, noted that traders exploit farmers’ lack of awareness, while Pasang Sherpa said prices are often based on hearsay. The farmers are urging the government to set minimum support prices and expand access to broader markets to make herbal farming sustainable and profitable.
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