Economic Digest: Nepal’s Business News in a Snap

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

Nepal’s economic and governance landscape is showing mixed signals, with financial reforms and infrastructure initiatives gaining momentum while persistent challenges in project execution and natural disaster recovery persist. The NEPSE index’s volatile performance, alongside soaring gold prices and loosening of margin loan caps by the central bank, highlights both investor enthusiasm and fragility in the capital market.

Concurrently, the government’s new public financial management strategy aims to enhance transparency and fiscal accountability through digital integration. However, structural weaknesses remain evident, as key national pride projects like Nalgad Hydropower languish in neglect, and roads suffer repeated damage from monsoon-related disasters—prompting calls for Rs 12.38 billion in reconstruction funds.

Meanwhile, employee unrest at SEBON and fraud warnings from Rastriya Banijya Bank point to growing public sector and cybersecurity concerns. On the positive side, provincial governments are promoting entrepreneurship, employment, and governance reforms, while the private sector, exemplified by CG Group and Multi Care Surgical, is taking steps to contribute socially and economically.

Overall, the economy reflects a dynamic but strained environment, balancing progress with pressure points that demand sustained policy attention.

NEPSE gains narrow to 22 points after early rally

The stock market opened strongly but tapered off by the end of the day. Within the first three minutes of trading, the NEPSE index jumped 102 points—or 4 percent—from the previous close, reaching 2,675. A circuit breaker was triggered, pausing trading for 20 minutes. Once trading resumed, the momentum faded, and by market close, NEPSE had netted only a 22.59point gain, ending the day at 2,582. Total trading volume for the day reached Rs 5.27 billion.

Gold prices approach Rs 240,000 per tola in Nepali market

Gold prices in Nepal continued their upward trend, with the rate nearing Rs 240,000 per tola on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of hallmark gold increased from Rs 238,000 on Wednesday to Rs 239,200 per tola. Meanwhile, the price of silver rose to Rs 3,035 per tola.

NRB removes limit on sharebacked loans

Nepal Rastra Bank has eliminated the cap on margintype loans secured by shares. Until now, a single client could obtain up to Rs 2.5 billion in such loans across one or more banks or financial institutions. The central bank’s directive follows recommendations from the Capital Market Reform Task Force established under former Finance Minister Rameshwor Khanal.

Govt unveils third public financial management reform strategy

The government has introduced the Third National Strategy for Public Financial Management Reform (2025–2030), aiming to substantially improve how public finances are managed over the next five years. The strategy is designed to make government revenue, expenditure, and overall financial systems more transparent, accountable, and effective, thereby strengthening public trust in financial governance.

Govt preparing to make all taxspending details fully viewable online

Under the new strategy from the Ministry of Finance, all stages of government finance—from budgeting and spending to borrowing and reporting—will be incorporated into a unified digital system. This is intended to let taxpayers see exactly how and where their money is used, through a fully online platform.

Shortage of gold in the market amid soaring prices

As gold prices continue to escalate daily, market supply is running short. The shortage has surfaced amid expectations of further price hikes. Both gold and silver are in short supply, as rising demand collides with restrictive import quotas. Currently, traders are permitted to bring in only 20 kilograms of gold per day, which falls far short of market demand.

Monsoon causes further damage to roads across the country

Before reconstruction of last year’s flooddamaged roads could be finished, this season’s monsoon has inflicted fresh harm nationwide. Heavy rainfall in early October, coupled with flooding and landslides, has damaged key routes including the BP and Mechi Highways. The most severe damage has struck the Mechi Highway, which is vital for the far eastern region.

Rastriya Banijya Bank warns customers against fraudulent calls and messages

Rastriya Banijya Bank (RBB) has issued a warning after reports emerged that unauthorized individuals are contacting customers in the bank’s name to carry out scams. These actors reportedly seek personal information, promote bogus schemes, and lure victims with promises of financial gain. Pawan Regmi, the bank’s Deputy Executive Officer, urged customers not to trust unsolicited calls, emails, or social media messages claiming to be from the bank.

Insurance claims from September 8–9 protests reach Rs 23.22 billion

By October 9, a total of Rs 23.22 billion in insurance claims had been filed for damages incurred during the protests of September 8 and 9. 3,099 claims were lodged across 14 non-life insurers and 4 micro non-life companies. Of that amount, Rs 1.29 billion has already been disbursed, including advance payments.

National pride road projects achieve 58 percent physical progress

Five major road projects under the national pride initiative have recorded an average physical progress of 57.97 percent as of the end of fiscal year 2024/25, according to the Department of Roads. Financial progress stood at 54.6 percent. The projects include the Mid-Hill Highway, Postal Highway, Kaligandaki Corridor (Beni–Korola and Gaindakot–Maldhunga sections), Karnali Corridor (Hilsa–Simikot and Khulalu–Sallisalla sections), and the Koshi Corridor.

NRB revokes licenses of two money changers

Nepal Rastra Bank has canceled the licenses of two foreign exchange firms. According to the central bank’s Foreign Exchange Management Department, the licenses of Union Currency Exchange in Mitranagar, Kathmandu, and KTM Om Money Exchange in Thamel were revoked because they failed to renew within the prescribed period.

Home Minister directs immediate resumption of Upper Bhotekoshi Hydropower Project

Home Minister Om Prakash Aryal has ordered the immediate restart of the Upper Bhotekoshi Hydropower Project, which was shut down following demands for free shares in the name of Gen Z youths. On Wednesday, a delegation led by Ganesh Karki, president of the Independent Power Producers’ Association, Nepal (IPPAN), along with representatives of affected projects, briefed the minister on the issue.

National pride Nalgad hydropower project remains stalled

The Nalgad Hydropower Project, listed as a national pride project, has been left in limbo despite the approval of its detailed project report (DPR) two years ago. Initiated seven years earlier, the project has seen no significant progress due to lack of government follow-through.
According to the DPR, the dam is to be built in Andherikhola of Barekot Rural Municipality, while the underground powerhouse is planned for Dalli, Nalgad Municipality in Jajarkot. Despite its status, the project is not currently a government priority.

Government estimates Rs 12.38 billion needed to rebuild flood-damaged roads

The government has estimated that Rs 12.38 billion will be required to reconstruct roads and bridges damaged by recent floods and landslides. The Ministry of Physical Infrastructure and Transport stated that Rs 10.68 billion is needed to restore major highways, alternative routes, and bridges affected by monsoon-related disasters.
Reopening obstructed roads has been given top priority, with all relevant agencies currently focused on restoring access.

SEBON employees continue protest for 17th consecutive day

Employees at the Securities Board of Nepal (SEBON) have continued their protest for 17 days, following the Ministry of Finance’s decision to cut their allowances and benefits. The protest includes one-hour sit-ins each morning and a full-day pen-down strike. Staff are demanding the reinstatement of their previous compensation structure.

Bagmati Province promotes good governance and fiscal discipline

The Bagmati Province government has taken notable steps toward strengthening good governance, financial transparency, and budget efficiency. Within two months of assuming office, the new administration has reviewed the Rs 67.47 billion budget, emphasizing administrative reform, controlled spending, and development-focused implementation.

CG Group offers jobs to families of Gen Z movement martyrs

The Chaudhary Group (CG) has pledged employment to the families of those killed in the Gen Z movement. Managing Director Nirvana Chaudhary announced on social media that one member from each martyr’s family would be offered a job within the CG Group as a gesture of solidarity and support.

Multi Care Surgical reports Rs 260 million in annual trade

Multi Care Surgical Pvt. Ltd. recorded Rs 263 million in trade during the last fiscal year. Having launched commercial operations in 2022, the company has seen steady growth, posting Rs 110 million in revenue in 2024 and Rs 23 million in 2023. The firm reported a net profit margin of 9.34 percent in 2025.

Lumbini Province adds over 4,000 new entrepreneurs in FY 2024/25

In fiscal year 2024/25, 4,094 new entrepreneurs were registered in Lumbini Province, including 1,490 women and 2,600 men across 12 districts. According to the Ministry of Industry, Tourism, and Transport, 14,040 jobs were generated through the expansion of industrial activity. So far, 4,903 women and 9,137 men have secured employment through these enterprises.