KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy reflected mixed signals on Sunday, with the stock market, trade, and fiscal sectors showing divergent trends. The Nepal Stock Exchange (NEPSE) dropped by 30.02 points amid declining investor confidence, while Nepal Rastra Bank absorbed Rs 30 billion in deposits to manage excess liquidity following the festive season.
In the real sector, the Ministry of Agriculture sought Rs 10 billion in additional funding to avert a fertilizer shortage, and farmers in Lumbini faced losses by selling paddy below the support price due to weak market enforcement. Meanwhile, Biratnagar Customs reported a 40 percent plunge in revenue after the “Gen Z Movement” disrupted trade flows.
In contrast, corporate announcements brought modest optimism — several financial institutions, including ICFC Finance and Shine Resunga Development Bank, declared dividends, and Mountain Energy Nepal announced a 20 percent bonus share.
Infrastructure progress resumed with work restarting on the long-delayed Bathnaha–Kathari railway station, while the NEA secured a new power purchase agreement to stabilize winter electricity supply. Gold prices continued to rise, reflecting shifting investor preferences amid uncertainty.
NEPSE declines by 30.02 points
The Nepal Stock Exchange (NEPSE) fell by 30.02 points on Sunday, with a total transaction value of Rs 4.90 billion. The index closed at 2,566.09 points, while overall market capitalization dropped by 1.15 percent.
Out of all listed companies, share prices of 222 declined, 28 rose, and one remained unchanged during the day’s trading.
NRB absorbs Rs 30 billion in deposits amid excess liquidity
Nepal Rastra Bank absorbed Rs 30 billion in deposits on Sunday to manage high liquidity levels that persisted even after the Dashain and Tihar festivals. Total deposits in the banking system have surpassed Rs 7.4 trillion. The central bank has been relying on deposit collection tools and standing deposit facilities to control liquidity and stabilize interest rates. Only banks and financial institutions under Classes “A,” “B,” and “C” were eligible to participate in the auction.
Gold price rises again
The price of gold continued its upward trend today. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold increased by Rs 400 per tola to reach Rs 238,600 per tola. This follows consecutive Rs 600 increases on both Thursday and Friday.
Deposit and credit protection fund to invest Rs 4.66 billion
The Deposit and Credit Protection Fund is preparing to invest Rs 4.66 billion currently held across different banks. Licensed Class “A” banks under Nepal Rastra Bank (NRB) will be eligible to access the investment amount by November 10. To qualify, a bank must have operated for at least five years and maintained continuous profitability for the last five fiscal years.
Agriculture ministry seeks additional Rs 10 billion for fertilizer purchase
The Ministry of Agriculture and Livestock Development has requested an additional Rs 10 billion from the Ministry of Finance to meet its fertilizer procurement target. Although the government planned to buy 600,000 metric tons of fertilizer in the FY 2025/26 budget, the Rs 28.82 billion already allocated covers only 471,000 tons. The ministry says extra funding is essential to meet national demand and ensure timely fertilizer supply to farmers.
NEA awards power purchase to lowest-bid company
The Nepal Electricity Authority (NEA) has signed a competitive power purchase agreement with an Indian company offering the lowest rate, aiming to ensure reliable electricity supply during the winter season.
In a statement on Saturday, NEA said it selected the company from among two bidders. The authority continues to import electricity through India’s Energy Exchange Market (IEX) via Day-Ahead and Real-Time markets, along with other bilateral mechanisms.
Yak herders in Mustang move to lower pastures after heavy snowfall
Following heavy snowfall and freezing temperatures last week, yak herders in Mustang have moved their herds to lower pastures. The snowfall completely covered grazing areas and froze water sources, forcing locals to relocate their animals to warmer, safer regions.
Mountain Energy Nepal announces 20 percent bonus shares
Mountain Energy Nepal Limited has declared a 20 percent bonus share distribution for its shareholders. The decision was made at the company’s board meeting on November 6, which also approved a 1.0526 percent cash dividend for tax purposes. The proposal will require approval from the Electricity Regulatory Commission and endorsement by the company’s annual general meeting.
Shine Resunga Development Bank declares dividend
Shine Resunga Development Bank has announced a dividend for its shareholders based on distributable profits. The decision was made at the board meeting held on November 7. As of fiscal year 2024/25, the bank’s accumulated profit stands at Rs 668.5 million.
ICFC Finance announces 15.79 percent cash dividend
ICFC Finance has proposed a 15.7895 percent cash dividend on its paid-up capital from the profits earned in fiscal year 2024/25. The decision was made at the company’s board meeting on November 9.
Construction resumes on final station of Bathnaha–Kathari railway
Work on the final station of the Bathnaha–Kathari railway has resumed after years of delay caused by land compensation disputes. Although the track up to the Hulaki Highway had been completed earlier, construction of the remaining 1,100 meters had stalled. With the dispute resolved, the Indian government-owned IRCON International Ltd. has fenced 66 bighas of land spanning 1,100 meters, investing INR 7 million to advance construction.
Biratnagar Customs revenue drops 40 percent
Revenue collection at the Biratnagar Customs Office has plunged by about 40 percent. While the daily revenue target stands at Rs 130 million, average daily collections now hover between Rs 60 million and Rs 70 million — down from the usual Rs 100–110 million. According to the office, the sharp decline is due to reduced import and export activities through the Jogbani border following the recent “Gen Z Movement.”
Lumbini farmers forced to sell rice below support price
Farmers in Lumbini Province have been compelled to sell their paddy below the government’s minimum support price despite timely rate announcements this year.Producers in Banke, Dang, Bardiya, Kapilvastu, and West Nawalparasi blamed delayed procurement by the Food Management and Trading Company and weak market regulation. For fiscal year 2025/26, the government set the minimum support price at Rs 3,463.81 per quintal for coarse rice and Rs 3,628.33 per quintal for medium rice.
Application period for SY Panel Nepal IPO closes
The public offering of SY Panel Nepal concluded on Sunday, marking the final day for investors to apply. The IPO, which opened on November 5, followed allotments to residents of industry-affected areas and Nepalis working abroad. SY Panel Nepal has been authorized to issue 40 percent of its paid-up capital — equivalent to 5,232,548 shares worth Rs 523.25 million — out of its total capital of Rs 1.3089 billion.
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