KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal is currently grappling with a multifaceted national crisis triggered by the Gen Z–led protests, which have spiraled into widespread unrest affecting nearly every sector. The imposition of curfews in Kathmandu and beyond has brought key institutions to a standstill—stock trading was suspended, banks and financial institutions remained closed, and flights at Tribhuvan International Airport were severely disrupted, with some rerouted due to smoke and safety concerns.
The protests have taken a violent turn, as seen in the arson of the Bhatbhateni Superstore and Chaudhary Group’s factory, while the Independent Power Producers’ Association (IPPAN) and the FNCCI have publicly condemned the deaths of 19 youth protesters and urged the government to address the concerns of the young generation.
Meanwhile, economic uncertainty persists as gold prices soar and businesses face penalties for regulatory violations. The ban on 26 major social media platforms has driven a surge in VPN app usage, reflecting rising digital resistance. At the same time, a shift in labor migration trends toward Europe underscores changing aspirations among Nepali youth for safer and more prosperous futures. Overall, the situation reveals deep systemic discontent and institutional fragility, calling for immediate national dialogue, accountability, and reform.
Stock market closed after prohibitory order in Kathmandu Valley
With a curfew in place across the Kathmandu Valley on Tuesday, stock market activity remained suspended. The Nepal Stock Exchange (NEPSE) announced that trading for the day was halted in response to requests from investors and trading members who cited the prohibitory order that restricts movement within the Valley.
Gold price nears Rs 215,000 per tola
Gold prices surged on Tuesday, with hallmarked gold nearing Rs 215,000 per tola. The Federation of Nepal Gold and Silver Dealers Association reported an increase of Rs 3,100 from Monday, pushing the price to Rs 214,700 per tola. On Monday, the rate stood at Rs 211,600 per tola. Meanwhile, silver prices also rose.
Banks and financial institutions remain closed amid nationwide unrest
As Gen Z–led protests continue to escalate, banks and financial institutions shut their doors for the day (Tuesday). In response to public outrage over state repression, alongside imposed curfews in Kathmandu’s Ring Road area and across multiple cities, the Nepal Bankers’ Association decided to keep bank branches closed for Tuesday.
FNCCI expresses condolences over losses during Gen Z protests
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) issued condolences to the families affected by the Gen Z youth-led protests. Urging politicians and the government to listen to youth concerns—from dignified employment to responsible tax use—the FNCCI extended healing wishes to the injured.
Commercial banks offering home loans at single digit interest rates
Lower interest rates on home loans have become more common recently, driven by limited investment options. Rastriya Banijya Bank, in particular, offers loans at 5.05% interest—but only to those affected by earthquakes and under specific conditions.
Transport federation announces indefinite nationwide shutdown of public and freight services
The National Federation of Nepal Transport Entrepreneurs has indefinitely suspended all public and freight transport services. Expressing profound sorrow for the 19 students killed and the imposition of curfews following the Gen Z protest crackdown on September 8, the federation said services will not resume until peace and security are guaranteed.
Himalaya Airlines flight from Lhasa diverted to Pokhara
A Himalaya Airlines flight en route from Lhasa to Kathmandu was diverted to Pokhara International Airport due to heavy smoke and safety concerns near Tribhuvan International Airport. Officials cited smoke and visibility issues around the capital’s airspace as key reasons for the diversion.
Flights severely affected at Tribhuvan International Airport
Tribhuvan International Airport operations remained severely disrupted. All domestic flights for Tuesday were canceled, and multiple international flights were currently in holding patterns. Airport spokesperson Rinzin Sherpa confirmed cancellations, while aircraft have been observed circling over Simara.
Protesters loot and set fire to Bhatbhateni superstore in Naxal
Protesters looted and then set the first Bhatbhateni supermarket in Naxal ablaze. An employee confirmed the fire followed looting, with the extent of damage still under assessment. The entire store is believed to have been engulfed in flames.
Nepali youth shift foreign employment focus from Gulf to Europe
In the fiscal year 2024/25, more than 76,000 Nepali youths obtained labor permits to work in Europe, reflecting a growing trend toward European migration. Out of the total 839,266 labor permits issued, a significant number were for Europe. Data over the past three years show a steady increase in European-bound youth workers, signaling a diversification of migration paths beyond traditional Gulf destinations — reflecting broader aspirations for safer, more equitable employment environments
IPPAN strongly condemns killing of 19 youths during peaceful protest
The Independent Power Producers’ Association of Nepal (IPPAN) has issued a forceful condemnation of the tragedy that unfolded on September 8, when 19 young protesters lost their lives during a peaceful Gen Z demonstration. In a press release, IPPAN decried the brutal suppression, stating, “It is very unfortunate that a democratic government carried out mass arrests resulting in the death of 19 individuals in a single day during a Gen Z protest.”
Commerce department fines 126 business firms up to Rs 300,000
The Department of Commerce, Supplies, and Consumer Protection has issued fines to 126 firms, ranging between Rs 5,000 and Rs 300,000. Out of 650 monitored businesses between Shrawan 1 and Bhadra 20, 304 were asked to address irregularities, while 220 were instructed to report to the department with documentation related to business registration renewals, clarifications, or statements.
Social media ban leads to surge in VPN app usage in Nepal
In response to the government’s shutdown of platforms like Facebook, YouTube, and WhatsApp—notably, 26 platforms were deactivated last Thursday for failing to register in Nepal—users are now turning to VPN (Virtual Private Network) apps to access blocked sites. On Nepal’s Google Play Store, 29 of the top 100 most-downloaded apps are VPNs, and 19 of these appear within the top 50 downloads.
Protesters set fire to Chaudhary Group’s factory in Satungal
Protesters attacked the Chaudhary Group (CG) factory in Satungal—known for producing household appliances like TVs, refrigerators, and microwaves under the CG Electronics (LG distributor) brand. Reports indicate that items were removed from inside the factory and then burned outside as part of the unrest.
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