KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic and social landscape reflects a complex interplay of growth, disruption, and systemic challenges. While customs revenue at Korala has surged and gold prices hit historic highs, these gains contrast sharply with deeper structural issues—such as a shrinking airline industry, halted industrial projects, and agricultural distress, with apples in Bajura going unsold and paddy crops in Bardiya damaged by unseasonal rains.
Insurance claims from recent Gen Z protests—largely vehicle-related—point to widespread civil unrest, even as firms like Everest Insurance respond swiftly. Relief efforts for disaster victims are underway, and businesses like Himalaya Airlines and Pokhara hotels are stepping in to support weather-stranded travelers.
At the same time, reforms such as a WTO-aligned customs valuation system are being piloted, indicating a push toward modernization despite persistent governance gaps, as evidenced by NEPSE’s failure to resume operations post-holiday.
Gold price increases again, hits record high
Gold prices continued their upward trend on Monday. The Federation of Nepal Gold and Silver Dealers’ Association reported that hallmark gold climbed to Rs 230,600 per tola, a fresh record high. Silver also saw gains, echoing the bullish trend in precious metals.
Nearly 74% of protest damage claims linked to vehicles
Of all insurance claims filed for damage during the September 8–9 protests, 73.92% were for motor vehicle insurance. By Dashain, insurers had received 2,988 claims totaling Rs 23.39 billion. Among these, 2,209 claims—worth Rs 3.65 billion—were for vehicle damage. Damage assessments suggest that more vehicles were harmed than the number of claims submitted. Nepal News
Govt orders immediate relief for flood and landslide victims
The National Disaster Risk Reduction and Management Authority has directed that families of those who lost their lives in floods and landslides be given Rs 200,000 immediately. District administration offices are instructed to coordinate with local governments for this relief and ensure free medical treatment for the injured.
NEPSE remains closed despite holiday withdrawal
The stock market stayed shut on Monday even though the Ministry of Home Affairs rescinded the public holiday for Monday. “Once the holiday was announced, all staff had already left. Even though the office reopened, the market could not open on Monday,” said a NEPSE official. The Nepal Stock Exchange index has been suspended since last Monday due to the Dashain holidays.
Nepal’s airline sector shrinks to nine active carriers
Once home to about 50 registered airlines, Nepal now has only nine operating regularly. Saurya Airlines and Guna Airlines have halted their operations. Meanwhile, Nepal Airlines is down to just two Twin Otters for domestic flights and often struggles to maintain schedules due to recurring technical issues.
Everest Insurance speeds up compensation for protest damage
Himalayan Everest Insurance Limited announced that it has fast tracked settlement of claims for losses during the Gen Z protests. Out of 287 claims filed, 245 have already been settled, with total payouts reaching Rs 217,445,831. The company says the remaining claims are being processed as a priority.
Himalaya Airlines waives date change fees for weather affected passengers
Himalaya Airlines has said it will not charge date change fees for passengers impacted by current weather disruptions. The airline announced that travelers unable to reach Kathmandu due to blocked roads will be eligible for special waiver policies to ensure convenience and safety.
Korala customs collects Rs 2.96 billion in two weeks
The Nhechung Customs Office at the Nepal–China Korala border collected Rs 2.96 billion in revenue over two weeks. Operating fully since September 16, the office said this is the largest sum it has ever amassed in such a short span, with an average daily collection exceeding Rs 136.6 million.
NRN CP Khetan invests Rs 310 million in Swedish pharma firm
Non Resident Nepali entrepreneur CP Khetan has invested nearly Rs 310 million in Swedish pharmaceutical company ASCELIA Pharma AB. The investment, via his Singapore based Lotus One Investment Pvt. Ltd., amounts to SEK 21 million (USD 2.2 million).
Apples in Bajura turned into cattle feed due to lack of market
Apple producers in Khaptad Chhededaha Rural Municipality 1, Kanda, Bajura are forced to feed their harvest to livestock. Despite investing heavily in apple cultivation and producing near tourist areas, farmers say the absence of adequate roads and markets has left them with no option but to use apples as cattle feed.
Pokhara hotels to provide free food and shelter to stranded tourists
With floods, landslides, and blocked roads stranding tourists in Pokhara, local hotels have decided to offer free food and lodging. The Pokhara Hotel Association also announced a 25% discount on regular hotel rates for tourists already in town or still arriving amid the disruptions.
Korala border emerging as tourist destination
In recent years, the Korala border has been developing into a tourist hotspot. As the Beni–Jomsom–Korala road under the National Pride Project improves, increasing numbers of domestic tourists are visiting Korala each year. At 4,610 meters above sea level, boundary pillar No. 24—known as Jange Pillar—serves as the main entry point to the Nepal–China border at Korala. Thousands of Nepalis travel there annually to witness this landmark.
Post Dashain rains damage paddy in Bardiya
Farmers in Bardiya who were preparing to harvest rice after receiving tika during Bijaya Dashami have suffered heavy losses due to rainfall last Tuesday morning. The storm and heavy rain severely damaged their paddy. Other affected areas include Gulariya, Madhuwan, Badhaiyatal, Rajapur, Barbardiya, Thakurbaba, Basgadhi, and Geruwa.
Valuation database successfully piloted at Biratnagar Customs
The government has piloted a valuation database at Biratnagar Customs, replacing the traditional reference book. The system now complies with the WTO’s GATT agreement and international practices. FNCCI President Chandra Prasad Dhakal encouraged entrepreneurs to use the new valuation method, which is currently being tested in Biratnagar.
Karnali province transport offices collect over Rs 40 million in two months
In August and September, transport offices in Karnali Province collected more than Rs 40 million through vehicle registrations, renewals, and related services. The Birendranagar Transport Management Office alone collected Rs 40.8 million, while Jumla and Chaurjahari offices contributed Rs 3.02 million and Rs 4.27 million respectively. Surkhet collected the highest amount overall.
Jorayal industrial village stalled despite national priority listing
Even though the Jorayal Industrial Village was designated a national priority project, it remains stalled. Work began in fiscal year 2019/20 and initial steps like fencing, road access, a detailed project report (DPR), and environmental impact assessment were completed, but no significant progress has been made since.
Humla distributes apple cartons for safer transport
To help farmers transport apples safely to markets, cartons have been distributed in Humla. The Agriculture Development Office and the Agriculture Modernization Program Implementation Unit arranged for cartons from outside the district, aiming to reduce damage to fruit during transport.
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