KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is facing a convergence of challenges as continuous monsoon rains disrupt key sectors, from hydropower and agriculture to tourism and transportation. Flooding and landslides have damaged infrastructure, halted 13 hydropower plants, and suppressed travel during the Dashain season, especially in tourist hubs like Pokhara and Sauraha.
In response, authorities have resumed domestic flights, maintained fuel supply, and issued advisories to farmers and industries to mitigate risks. Meanwhile, gold prices hit a record high, signaling economic uncertainty, and Nepali entrepreneurs gained new financial access through RBI’s loan policy. Despite resilience efforts, revenue drops in companies like Mahabir Agro highlight ongoing pressure on the private sector.
Gold hits all-time high in Nepali market
Gold prices in Nepal reached a record high today. According to the Federation of Nepal Gold and Silver Dealers Association, the price of hallmark gold surged by Rs 7,400 per tola to reach Rs 230,600. This surpasses the previous high of Rs 223,200 recorded on September 28. Silver prices also rose to a new record, increasing by Rs 120 per tola from last week’s Rs 2,810.
Nepali entrepreneurs now eligible for loans from Indian banks
In a new policy shift, the Reserve Bank of India (RBI) has permitted authorized dealer banks and their overseas branches to provide loans in Indian rupees to citizens of Nepal, Bhutan, and Sri Lanka. The decision was announced following a meeting of the RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra. The move aims to ease cross-border financial transactions and encourage regional trade by gradually easing restrictions under the Foreign Exchange Management Act.
Finance Ministry urges public to use official fund for donations
The Ministry of Finance has urged individuals and organizations to contribute only to the official Reconstruction Fund, following reports of fraudulent accounts being created to collect donations. The ministry expressed serious concern over fake campaigns reportedly initiated by various non-governmental groups—both domestic and international—claiming to collect relief for the victims and families affected by the Gen Z movement of September 8–9.
NOC assures uninterrupted fuel supply during public holidays
Nepal Oil Corporation (NOC) has confirmed that petroleum supply will continue without interruption, even on public holidays. Executive Director Chandika Prasad Bhatta stated that as petroleum falls under essential services, operations will remain active on both Sunday and Monday. “Our services will continue regardless of the holiday,” he said, noting that all NOC offices will remain open. Since the fuel is delivered via pipeline, the recent floods and landslides have not disrupted transportation.
Domestic flights resume at Tribhuvan airport after weather improves
Domestic air travel has resumed at Tribhuvan International Airport following a break in adverse weather conditions. Airport spokesperson Rinji Sherpa said aircraft stranded at various airports have begun flying back to Kathmandu with passengers. He added that if the weather remains stable, regular flight schedules will be maintained. Domestic flights had been grounded since Saturday morning due to persistent rain.
Additional domestic flights allowed to handle holiday rush
The Civil Aviation Authority of Nepal (CAAN) approved extra domestic flights on Sunday to manage increased passenger demand after weather-related cancellations disrupted travel plans on Saturday. A total of 280 two-way flights were scheduled from Tribhuvan International Airport, with approvals granted based on demand and carrier capacity, according to CAAN officials.
Heavy rain shuts down 13 hydropower plants in Ilam
Prolonged rainfall has led to the closure of 13 hydropower projects in Ilam district, with a total installed capacity of 105 megawatts. The Independent Power Producers’ Association of Nepal (IPPAN) reported that most of these plants were damaged by floods and landslides following continuous downpours over the past three days. Ilam remains among the worst-hit regions during this period.
Industries advised to stay alert as rainfall disrupts business and supply chains
Continuous rainfall over the past two days has impacted daily life and disrupted supply chains, prompting the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to urge businesses to remain vigilant. With the Department of Hydrology and Meteorology forecasting continued rain, FNCCI has called on entrepreneurs to operate with caution, maintain steady supply in the market, avoid hoarding, and prevent shortages despite ongoing challenges.
NEA on high alert to protect electricity infrastructure
The Nepal Electricity Authority (NEA) has intensified its preparedness to protect the national grid amid ongoing heavy rainfall. Officials say preemptive assessments have been made across substations, power plants, and transmission lines. Emergency teams are on standby to immediately repair damaged infrastructure and restore power in affected areas.
Insurance firms instructed to channel CSR funds into reconstruction
The Nepal Insurance Authority has directed all insurance companies to contribute their Corporate Social Responsibility (CSR) budgets to the government’s Public Infrastructure Reconstruction Fund. Existing regulations require insurance companies to allocate at least one percent of their annual profit to CSR activities. The Authority has recommended that this year’s funds be used to support national reconstruction efforts.
Farmers receive agro-met advisory amid heavy rainfall
In response to the rising risks to agriculture caused by ongoing rain, the Nepal Agricultural Research Council (NARC), in collaboration with the National Agricultural Environment Research Center and the Department of Hydrology and Meteorology, has issued an advisory for farmers. Key recommendations include ensuring proper drainage in vegetable plots, orchards, and ripening paddy fields, halting pesticide use, and protecting stored goods and structures near rivers from flood damage.
Pokhara tourism dampened by bad weather and post-protest cancellations
Pokhara, usually buzzing with activity during the Dashain holiday, is facing a dramatic drop in tourist numbers this year. Popular activities like boating on Fewa Lake and paragliding have seen minimal participation. Following the Gen Z protests in early September, many travel plans were scrapped. Hotel bookings from both domestic and foreign tourists dropped sharply, with adverse weather conditions further discouraging travel.
Dashain season sees near-empty hotels in Sauraha as tourism slumps
Sauraha, a key tourist hub during Dashain, is experiencing a rare downturn. Continuous rainfall and flood threats have kept visitors away, leaving local hotels with occupancy rates below 10 percent. Hotel owners report that such a quiet Dashain season is unprecedented. While the tourism sector had begun recovering from the Gen Z movement’s disruptions, the current monsoon weather has brought a fresh setback.
Trekking agencies recommend alternate route for Namche–Jorsalle trail
The Namche–Jorsalle trekking trail in the Everest region has been completely blocked by a landslide. The Trekking Agencies’ Association of Nepal (TAAN) has issued a circular recommending trekkers and guides use an upper alternate route for safety. TAAN has urged all agencies and tourists in the region to strictly follow this advisory.
Tanahun hydropower project resumes work after delays
Construction work on Package-3 of the 140 MW Tanahun Hydropower Project has resumed after long-standing delays. A joint team of project officials and contractors has begun addressing issues related to land acquisition and forest clearance. Coordination with authorities is underway to secure permissions for forest land use and tree removal, which had previously halted transmission line construction.
Flooded substation disrupts power supply in Simraungadh, Bara
Electricity service in Simraungadh, Bara, has been disrupted after floodwaters entered the Kalaiya Substation of the Nepal Electricity Authority. Although fire engines and pumps have removed most of the water, some remains in the control room, delaying full restoration. Local NEA officials say power will resume once the substation is fully functional.
Mahabir Agro Products sees 50% revenue drop in 2025
Mahabir Agro Products, promoted by the Kedia Organization, has reported a 50% drop in revenue in 2025 compared to the previous year. In 2024, the company posted earnings of Rs 3.16 billion, which have declined to Rs 1.517 billion this year.
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