KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape on Tuesday reflected a mix of cautious optimism and structural strain. The NEPSE index continued its downward trajectory with falling turnover, mirroring weaker investor sentiment, while gold prices also declined amid global market adjustments. Despite market sluggishness, liquidity in the banking system remained strong, with deposits reaching Rs 74.75 trillion, supported by steady credit expansion.
The government’s renewed success in securing over €50 million and $175 million in aid after the Gen Z movement signaled improving donor confidence, even as political uncertainty persisted. Meanwhile, disaster-related insurance claims neared Rs 4 billion, underscoring the mounting economic toll of recent floods and landslides. In the energy and infrastructure front, Minister Kulman Ghising emphasized nationwide electrification, hydropower projects advanced in Myagdi, and a compromise resolved the trunk line dispute, restoring power to key industries.
However, manufacturing sectors such as jute faced production cuts due to import disruptions. Collectively, the day’s developments highlight Nepal’s ongoing struggle to balance financial stability, industrial recovery, and infrastructure modernization amid evolving domestic and external pressures.
NEPSE index falls 27.64 points as turnover declines
The Nepali share market extended its losing streak on Tuesday, with the NEPSE index dropping by 27.64 points to close at 2,595.24. This followed Monday’s fall of 8.24 points. The Sensitive Index fell by 3.93 points, the Float Index by 1.91 points, and the Sensitive Float Index by 1.30 points. A total of 322 companies were traded, with around 10.34 million shares exchanged, amounting to Rs 5.16 billion — down from Rs 6.05 billion the previous day.
Gold price drops by Rs 1,400 per tola
The price of gold fell by Rs 1,400 per tola on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The new price is Rs 238,300 per tola, down from Rs 239,700 per tola the previous day. Gold prices have been steadily declining since mid-October, while silver prices also fell by Rs 45 per tola.
Government secures €50 million and $175 million in aid after Gen Z movement
In the six weeks following the Gen Z movement, Nepal’s government has secured €50 million and $175 million in assistance from bilateral and multilateral donors. According to the Finance Ministry, most of the funds are reactivated pledges, while some are new commitments. Finance Minister Rameshwor Khanal held discussions with key partners, including the World Bank, ADB, EU, USA, and Germany, to revive delayed aid amid ongoing political uncertainty.
Bank deposits reach Rs 74.75 trillion
Total deposits in banks and financial institutions have reached Rs 74 trillion 75 billion, according to Nepal Rastra Bank (NRB). The central bank said deposits have been rising steadily in recent weeks. As of the first week of November, commercial banks alone accounted for Rs 67 trillion 17 billion in deposits, while loans extended by all banks and financial institutions totaled Rs 56 trillion 35 billion. Commercial banks provided Rs 50 trillion 12 billion of this credit.
Rs 4 billion insurance claims filed after floods and landslides
Floods and landslides since October 4 have triggered nearly Rs 4 billion in insurance claims. According to the Insurance Board, about Rs 4.78 billion worth of claims were submitted for flood-related damages. In total, 734 claims were lodged with 13 general insurance companies and two micro-insurance firms, with estimated damages valued at around Rs 3.78 billion.
NRB reshuffles responsibilities of 11 executive directors
Nepal Rastra Bank (NRB) has reassigned departmental responsibilities among 11 executive directors. Rewati Prasad Nepal, formerly head of the Foreign Management Department, now leads the Asset and Service Management Department. Ramu Paudel has been transferred from the Currency Management Department to the Bank and Financial Institution Regulation Department. Similarly, Bishrut Thapa will head the Financial Institution Supervision Department, and Dayaram Sharma has been assigned to the Governor’s Office.
Minister Ghising pledges commitment to electrifying transport and kitchens
Minister for Energy, Water Resources, and Irrigation Kulman Ghising reaffirmed the government’s commitment to promoting nationwide electrification in transport and household kitchens. Speaking at the 29th anniversary of the Alternative Energy Promotion Centre (AEPC) today, Minister Ghising said that while progress has been made, more work remains. He emphasized the growing adoption of electric vehicles and the need to replace gas with induction or other electric alternatives in kitchens, calling for greater efforts to expand clean energy technologies.
Midway agreement reached in dedicated and trunk line dispute
A high-level meeting between Prime Minister Sushila Karki, Finance Minister Rameshwor Khanal, Energy Minister Kulman Ghising, Industry Minister Anil Sinha, Chief Secretary Ek Narayan Aryal, and FNCCI President Chandra Prasad Dhakal reached a compromise to resolve the dedicated and trunk line dispute. The meeting agreed that one installment equivalent to the disputed amount would be treated as a security deposit — not as payment — allowing industries to have their power reconnected immediately. Companies can later pursue reviews or legal solutions if necessary.
Four industries pay first installment of premium charges
Four industries have paid the first installment of their outstanding premium charges related to the dedicated and trunk line issue. In the Bhairahawa industrial area, Panchakanya Plastic Industries, Panchakanya Steel Industries, Siddhartha Pet Plant, and Shyam Plastic made their payments on Monday. Following the payments, the Nepal Electricity Authority (NEA) reconnected their previously disconnected power lines.
Malaysia seeks manpower agencies meeting 10 new standards
The Ministry of Labour, Employment, and Social Security has sought feedback from manpower agencies on 10 new recruitment criteria introduced by the Malaysian government. The ministry sent a letter to the Nepal Association of Foreign Employment Agencies requesting its official opinion. Malaysia has informed that only recruitment companies meeting the uniform standards — applicable to source countries such as Nepal, Bangladesh, India, and Pakistan — will be allowed to send workers.
Dailekh methane gas production recommended for Nepal Oil Corporation
A government study team has recommended that the production and distribution of natural methane gas discovered in Jaljale, Dailekh, be handed over to the Nepal Oil Corporation (NOC). The team, led by NOC Director Binit Mani Upadhyay, submitted a report suggesting that the corporation oversee the project. The China Geological Survey had earlier discovered an estimated 112 billion cubic meters of methane gas reserves in Bhairavi Rural Municipality, Dailekh, in June 2024.
Ninth JCC meeting between NRB and RBI concludes
The ninth meeting of the Joint Coordination Committee (JCC) between Nepal Rastra Bank (NRB) and the Reserve Bank of India (RBI) concluded on Monday. Governor Biswo Nath Poudel said the committee has played an important role in strengthening cross-border cooperation on monetary and financial matters. RBI Executive Director Arnav Kumar Chaudhary noted that since its inception, the JCC has contributed significantly to improving currency management, trade payments, and financial inclusion between the two countries.
Five hydropower projects completed in single ward of Myagdi
Five hydropower projects with a combined capacity of 162 megawatts have been completed in Annapurna Rural Municipality-4 of Myagdi district. Ward Chair Lok Bahadur Pun said one additional 63.3-megawatt project is under construction, while two others totaling 173.14 megawatts are in the development phase. Completed projects include Ghalemdi Khola (5 MW), Mristi Khola (42 MW), Nilgiri-I (38 MW), Nilgiri-II (71 MW), and Rele Khola (6 MW).
Daunne road section to operate one-way for two months
The Daunne section of the East–West Highway in Nawalparasi will remain one-way for the next two months to facilitate culvert construction along the Narayanghat–Butwal road expansion project. According to the Nawalpur District Police Office, the Department of Roads issued a notice on Monday stating that one-way traffic will continue until the work is completed.
Jute industry hit by shortage of raw materials
Nepali jute industries are struggling due to the suspension of raw jute imports from India and Bangladesh. Factories have cut production by up to 20% because of the shortage. Bangladesh imposed an informal export ban about six weeks ago, citing domestic supply constraints, while India’s reduced production and higher prices have further driven up costs, affecting Nepali exports.
Lighting installation begins at Bancharedanda landfill site
The Nepal Electricity Authority’s Nuwakot Distribution Centre has started installing lighting poles at the Bancharedanda landfill site to enable night-time waste management. The installation began on Monday, and lights will be fitted once the poles are in place. Minister for Energy, Physical Infrastructure, and Urban Development Kulman Ghising had pledged to begin lighting work during his inspection visit on Sunday.
Hulas Finserv income up by nearly 79%
Hulas Finserv Hire Purchase Limited, which plans to issue an IPO through book building, reported a 78.75% increase in income in 2025 compared to 2024. Its earnings rose from Rs 532 million in 2024 to Rs 951 million in 2025. The company had earned Rs 488 million in 2023, Rs 521 million in 2022, and Rs 613 million in 2021.
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