KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and infrastructure landscape showed mixed developments this week, reflecting both momentum and challenges across sectors. The stock market weakened as the NEPSE index dropped by 11.29 points amid Rs 5.42 billion in trading, even as gold and silver prices rose slightly.
Infrastructure progress continued with the completion of the DPR for the 220 kV Chamelia–Jouljibi cross-border transmission line, though projects like the Simkot Airport expansion remain stalled awaiting approvals. The Asian Development Bank’s Rs 28.39 billion municipal loan was suspended due to political gridlock, while ADB, the World Bank, and SDC pledged joint support for climate resilience.
In business, the government introduced new procedures to promote meat exports, banks announced profits and dividends, and new investments emerged in solar energy and telecom innovation. Meanwhile, trade imbalances and logistical bottlenecks persisted, with Nepal–China and Nepal–Bangladesh trade groups calling for stronger cooperation to ease border and trade constraints.
NEPSE drops by 11.29 points with Rs 5.42 billion turnover
The Nepal Stock Exchange (NEPSE) declined by 11.29 points on Thursday, with total share transactions reaching around Rs 5.42 billion. Out of the traded companies, share prices of 165 fell, 77 rose, and 9 remained unchanged. Among the day’s traders, sellers of Darmakhola Hydro Energy made the highest gains, while sellers of Sampada Laghubitta Financial Institution suffered the largest losses.
Gold and silver prices rise on Thursday
Gold and silver prices increased on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 600 to Rs 237,800 per tola, up from Rs 237,200 per tola the previous day. On October 17, gold had reached a record high of Rs 258,000 per tola. Meanwhile, silver prices increased by Rs 20 per tola.
DPR completed for 220 kV Chamelia–Jouljibi cross-border transmission line
The detailed project report (DPR) for the 220 kV Chamelia–Jouljibi cross-border transmission line has been finalized. During the 12th Joint Director-Level Committee meeting held in New Delhi on February 12, 2025, Nepal and India agreed to advance the project’s construction. Following this decision, both nations prepared the DPRs for their respective sections. The reports were presented during the Nepal–India Joint Technical Team meeting in Pokhara, where both sides decided to prepare a joint DPR within the next month.
ADB’s Rs 28.39 billion loan for municipal development fund put on hold
The Asian Development Bank’s (ADB) proposed loan assistance for the Municipal Development Fund has been halted following the dissolution of the House of Representatives after the Gen Z movement. Although the Ministry of Urban Development had completed the necessary policy arrangements to secure the loan, the lack of a functioning legislature has left the proposal in limbo, as it cannot be legally endorsed. The ADB had pledged $200 million (approximately Rs 28.39 billion) under a policy-based loan program designed to support Nepal’s post-COVID-19 economic recovery.
NTA sets up valuation committee for Smart Telecom assets
Nearly two and a half years after taking over Smart Telecom, the Nepal Telecommunications Authority (NTA) has established a five-member valuation committee led by Chartered Accountant Rajesh Parajuli. Formed under the Telecommunications Service Provider Asset Management Regulations, 2022, the committee will assess the value of assets belonging to telecom operators whose licenses have not been renewed.
Simkot Airport expansion delayed due to pending DPR approval
Expansion and land acquisition work for Simkot Airport have been delayed despite the allocation of funds for this fiscal year and the completion of a detailed project report (DPR). According to Tek Kumar Regmi, Chief District Officer and Chair of the Land Acquisition Committee, the Civil Aviation Authority of Nepal (CAAN) has prepared the DPR, but the project cannot move forward until it receives official approval.
ADB, World Bank, and SDC to help Nepal strengthen climate resilience
The Asian Development Bank (ADB), the International Development Association (IDA) under the World Bank Group, and the Swiss Development Cooperation (SDC) have agreed to jointly support Nepal in climate adaptation, disaster risk reduction, and resilient infrastructure development. According to the World Bank office in Kathmandu, the three organizations signed a memorandum of understanding on Wednesday outlining collaboration over the next three years. The partnership will prioritize climate risk assessments, data system strengthening, and climate risk management initiatives.
Thirteen industries still without electricity over unpaid premium fees
Thirteen industries remain disconnected from the power supply due to unpaid premium charges for using dedicated and trunk lines. The Nepal Electricity Authority (NEA) had cut electricity to 23 industries on October 21 and 24, of which 13 are still without power. Out of 25 industries required to settle outstanding dues, two have already shut down. According to the NEA, power was restored to Gharana Foods and Goyanka Foods during Tihar after they paid the first installment of their arrears.
Chamber president calls for cooperation to reduce Nepal–Bangladesh trade gap
President of the Nepal Chamber of Commerce, Kamlesh Kumar Agrawal, has emphasized the need for mutual cooperation and a favorable trade environment to address the large trade imbalance between Nepal and Bangladesh. Speaking during a meeting with Bangladesh’s Ambassador to Nepal, Mohammad Shafiq Rahman, at the Chamber’s office on Thursday, Agrawal noted that Nepal imports goods worth around USD 30.88 million annually from Bangladesh but exports only about USD 3.33 million—highlighting a significant trade deficit.
Chandragiri Cable Car to restart operations from November 8
Chandragiri Hills Pvt. Ltd. has announced that the Chandragiri Cable Car will resume operations from Saturday, November 8, after the completion of repair and maintenance work. The service had been suspended following damage sustained during the Gen Z protest on September 9, which disrupted wiring between the lower station and the transformer connected to the cable car system.
Government introduces new procedure to promote meat export
The government has introduced a new procedure to facilitate meat exports. The Ministry of Agriculture and Livestock Development has enforced the Buffalo Promotion Program Operation Procedure 2025 to boost the country’s meat exports. The procedure was approved and implemented by Minister Dr. Madan Prasad Pariyar on October 29. Previously, the absence of such guidelines had created obstacles for Nepal in commercially exporting meat to other countries.
Lukla Airport handles over 160 flights daily amid tourist influx
Tenzing-Hillary Airport in Lukla, Solukhumbu, is experiencing a sharp increase in air traffic, handling more than 160 flights daily, including both airplanes and helicopters. The surge is attributed to the growing number of tourists arriving to view Mt. Everest and other Himalayan peaks. After earlier disruptions caused by poor weather during the main climbing season, improved conditions in upper Solukhumbu have once again brought a heavy flow of visitors.
Nepal-China trade group urges China to open Tatopani route
The Nepal Himalayan Cross-Border Trade Association has requested the Chinese Embassy to release containers stranded at the Tatopani checkpoint and expedite the construction of the Miteri Bridge at Rasuwagadhi. A delegation led by the association’s president, Ramhari Karki, made the request during a meeting with officials from the Embassy’s Economic and Commercial Council. The association said it had presented the challenges at the Tatopani and Rasuwagadhi checkpoints both in writing and verbally to the council’s second secretary.
Agricultural Development Bank declares 13% dividend
Agricultural Development Bank has announced a 13 percent dividend for its shareholders. The bank’s board meeting held on Wednesday decided to distribute 9.75 percent cash dividend (including tax) and 3.25 percent bonus shares.
Additionally, the bank will provide a 6 percent cash dividend on the government’s capital investment. Currently, the bank’s share price stands at Rs 315 per share.
Ncell and MetLife launch first-ever ‘Data with Life Insurance’ plan in Nepal
Ncell and MetLife Nepal have jointly launched a first-of-its-kind plan in Nepal titled Data with Life Insurance. Under this scheme, Ncell customers can obtain term life and critical illness insurance coverage by purchasing specific mobile data packs. The first option, priced at Rs 99 (including tax), offers 100 MB of data valid for three days along with Rs 200,000 coverage each for term life and critical illness insurance.
National Life Insurance acquires Himalayan Bank shares from Habib Bank
National Life Insurance Company Limited has completed the purchase of Himalayan Bank shares previously owned by Habib Bank Limited. The company acquired 28,012,447.45 units of shares worth Rs 3.33 billion. As a promoter shareholder, the company had obtained approval from the relevant regulatory authorities for this acquisition.
Nabil Bank earns Rs 1.75 billion profit in first quarter
Nabil Bank Limited has reported a profit of Rs 1.75 billion for the first quarter of the current fiscal year 2025/26. According to its published financial report, the profit represents a 14.57 percent decline compared to the same period last fiscal year, when the bank earned Rs 2.05 billion. The decline has been attributed to reduced interest income and higher impairment charges, which affected the bank’s net profit.
Solar Farm Pvt. building 90 MW solar projects worth Rs 4.5 billion
Solar Farm Pvt. Ltd. is developing two solar projects with a combined investment of Rs 4.5 billion. The projects—Solar Farm Lumbini (50 MW) and Solar Farm Buddhbhumi (40 MW)—will have a total capacity of 90 MW. The company plans to finance 40 percent of the investment through equity and 60 percent through loans from banks and financial institutions. Established in 2016, Solar Farm Pvt. recorded transactions worth Rs 55 million in the last fiscal year, Rs 52 million in 2024, and Rs 53 million in 2023.
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