KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and policy landscape this week reflected cautious financial tightening, moderate market optimism, and expanding international engagement. The Nepal Stock Exchange (NEPSE) gained 12.17 points amid steady trading, while the Nepal Rastra Bank continued to withdraw excess liquidity, with commercial bank deposits at the central bank surpassing Rs 800 billion—a sign of high liquidity retention and limited private sector credit flow.
Commodity markets softened as gold and silver prices declined. On the policy front, Nepal and India signed a seven-point power exchange deal, and the government advanced domestic initiatives such as the Trail Standards Directive–2025, startup loan calls, and stricter oversight of construction firms.
In industry and trade, Nepal achieved its first frozen French fries export to the U.S., Reliance Spinning Mills reported Rs 10.23 billion in annual turnover, and hydropower and infrastructure leadership transitions continued.
However, challenges persisted with delays in Rasuwagadhi border reopening, significant crop losses from monsoon-induced flooding, and the rejection of Malaysia’s labor standards proposal, reflecting a mix of progress and pressure across Nepal’s economic sectors.
NEPSE gains 12.17 points
Rhe Nepal Stock Exchange (NEPSE) on Wednesday rose by 12.17 points, bringing the index to 2,607.42. The total trading volume for the day reached Rs 4.68 billion. Out of all listed companies, share prices of 149 increased, 90 declined, and 12 remained unchanged. Mabilung Energy Limited’s investors earned the highest gains, while those holding shares of First Microfinance Laghubitta faced the biggest losses.
Gold and silver prices decline in domestic market
Gold and silver prices both declined in the Nepali market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold fell by Rs 1,100 per tola to Rs 237,200. On Monday, gold had been priced at Rs 238,300 per tola. Silver prices also dropped slightly compared to the previous day.
NRB continues to absorb excess liquidity from banks
The Nepal Rastra Bank has continued its efforts to withdraw surplus liquidity from banks and financial institutions. The central bank conducts these withdrawals twice a week—on Sundays and Wednesdays. On Sunday alone, Rs 90 billion was withdrawn, followed by Rs 50 billion on Wednesday. These operations are carried out using deposit collection instruments. The total deposits across the banking system have now surpassed Rs 7.4 trillion.
Bank deposits at NRB surpass Rs 800 billion milestone
For the first time, the total deposits of commercial banks at the Nepal Rastra Bank (NRB) have exceeded Rs 800 billion, reaching Rs 809 billion by Tuesday. Of this, Rs 170 billion has been deposited through deposit collection instruments, while Rs 639 billion is held under the permanent deposit facility. The deposits collected through these instruments carry an average interest rate of 2.73%.
Nepal and India reach seven-point deal on power exchange
Nepal and India have signed a seven-point agreement to enhance electricity trade, strengthen transmission networks, and construct new cross-border power lines. The deal was finalized during the 17th meeting of the Nepal-India Joint Technical Team at the secretary level, held on November 3–4 in Pokhara. The session was co-chaired by Sandeep Kumar Dev, Secretary of Nepal’s Ministry of Energy, Water Resources and Irrigation, and Bhavan Sahay Bairava, Chief Engineer of India’s Central Electricity Authority (CEA).
Minister Ghising calls for immediate finalization of Budhigandaki hydropower investment model
Energy, Water Resources and Irrigation Minister Kulman Ghising has emphasized the need to promptly finalize the investment modality for the 1,200 MW Budhigandaki reservoir-based hydropower project, a national pride initiative. During a meeting with Energy Secretary Chiranjeevi Chataut and representatives of Budhigandaki Company Limited, Minister Ghising stressed that the project should not remain stalled and that an investment decision must be made without delay.
Government invites startup business proposals
The government has opened a call for startup project proposals. The Industrial Enterprise Development Institute issued a notice on Wednesday inviting eligible entrepreneurs to apply under the ‘Startup Enterprise Loan Operational Procedure.’ The initiative was launched on the recommendation of Industry Minister Anil Kumar Sinha. Interested applicants have 21 days to submit their proposals.
Commission recommends permanent body for air accident investigations
A high-level government commission has proposed establishing a permanent mechanism to investigate air accidents. Despite repeated recommendations from international organizations and various committees, the government has yet to implement such a system. Currently, separate commissions are formed after each accident, raising doubts about consistency and credibility. The Ministry of Culture, Tourism, and Civil Aviation has made public the commission’s report on improving the civil aviation sector.
Minister Sinha encourages UK private sector to invest in Nepal
Minister for Industry, Commerce, and Supplies Anil Kumar Sinha has urged British investors to explore opportunities in Nepal. During a meeting with UK Ambassador to Nepal Rob Fenn, both discussed the improving investment climate in Nepal due to greater political stability and policy reforms. Minister Sinha highlighted Nepal’s priorities in industrial growth, trade expansion, and private sector development, calling for continued UK cooperation to support sustainable progress.
Nepal rejects Malaysia’s proposed 10-point labor standards
Nepal has officially declined Malaysia’s proposal for a 10-point set of labor standards. The Ministry of Labor, Employment and Social Security, through the Ministry of Foreign Affairs, communicated that the proposed conditions are unacceptable in their current form. “Malaysia sent the 10 points as they were, but Nepal cannot accept or implement them in their present version,” said an official.
Ministry issues ‘Trail Standards Directive–2025’
The Ministry of Culture, Tourism, and Civil Aviation has introduced the Trail Standards Directive–2025, focusing on safety, uniformity, and sustainability in trail development. According to the ministry, the directive aims to strengthen coordination among federal, provincial, and local governments for the construction, management, and maintenance of trekking routes across Nepal, ensuring safer and more appealing trails for tourists.
Fourteen construction firms face blacklisting
The Public Procurement Monitoring Office under the Prime Minister’s Office is preparing to blacklist 14 construction companies from different districts. A notice issued today stated that the office has sought written clarification from the companies following recommendations from various agencies. If the companies fail to provide satisfactory explanations within seven days, they will be officially blacklisted.
Resumption of Rasuwagadhi border operations faces further delay
The reopening of the Rasuwagadhi border point, closed for the past four months, will be delayed further. Construction of a Bailey bridge over the Lhende River is still underway with Chinese financial and technical assistance. Repeated flooding and technical challenges have slowed progress. The permanent bridge connecting the border was washed away by a flood on June 24, suspending border operations.
Nepal exports frozen French fries to USA for the first time
Nepal has exported frozen French fries to the United States for the first time, marking a milestone in the country’s food export sector. Through Bhairahawa Customs Office, Fit Choice Foods Pvt. Ltd. of Rupandehi shipped two containers—43,520 kilograms in total—worth Rs 5.48 million to Gent LLC in the USA. According to customs officials, this marks the entry of Nepali processed food into a highly competitive international market.
Three industries pay first installment of premium electricity dues
According to the Nepal Electricity Authority (NEA), three industries—Bhalwari Automatic Factory, SR Foods, and SR Steel—have paid the first installment of their outstanding premium electricity charges. These dues stem from the use of dedicated and trunk lines between January 2016 and April 2018. Following payment, NEA has restored power connections to the industries.
Reliance Spinning Mills posts Rs 10.23 billion annual turnover
Reliance Spinning Mills achieved a turnover of Rs 10.23 billion in the last fiscal year, up slightly from the previous year’s figure of around Rs 10 billion. The company’s turnover stood at Rs 9.20 billion in 2024, Rs 10.6 billion in 2023, and Rs 10.10 billion in 2022.
Monsoon cyclone inflicts Rs 2.05 billion crop loss in Koshi Province
The Montha cyclone, which brought heavy rainfall from October 28 to 31, caused crop losses worth over Rs 2.05 billion in Koshi Province. Preliminary data from the Provincial Agriculture Development Directorate show that 12,632 hectares of farmland were affected, resulting in the destruction of 58,267 metric tons of rice and vegetables.
Niranjan Phuyal appointed CEO of NRNA Infrastructure
The board of NRNA Infrastructure has appointed Niranjan Phuyal as its Chief Executive Officer (CEO) for a four-year term, effective immediately. Phuyal, a resident of Kathmandu and former senior manager at NEPSE, was appointed during a board meeting held on Wednesday morning.
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