KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments across Nepal’s financial, legislative, and infrastructure sectors reflect a dynamic period of policy reform, crisis response, and economic activity. Nepal Rastra Bank’s move to allow short-term interbank transactions in convertible foreign currencies signals increasing confidence in the country’s macroeconomic stability, underpinned by a significant rise in foreign reserves.
Meanwhile, the near-billion-rupee insurance claims from the Rasuwa floods underscore the growing impact of climate-related disasters and the corresponding role of the insurance sector in recovery efforts. On the legislative front, delays in passing the revised Land Management Bill point to the complexities of land reform, while the Koshi Province’s passage of a contributory pension fund bill illustrates momentum in regional governance.
In other areas, high public engagement with the Naima Mobility Expo, the strategic opening of Visa’s Nepal office, and ADBL’s record profits suggest rising economic activity. Simultaneously, government efforts to incentivize international flights to underused airports, along with expanded digital security initiatives by Ncell and Fonepay, highlight attempts to modernize infrastructure and services amid persistent challenges.
NRB permits interbank deals in convertible foreign currencies
For the first time, Nepal Rastra Bank (NRB) has authorized commercial banks, national-level development banks, and infrastructure development banks to engage in interbank transactions using convertible foreign currencies. Until now, such transactions were restricted to the Nepalese rupee. However, a recent amendment to the Unified Directives 2024 allows foreign currency lending and borrowing between banks for up to seven days. This policy shift comes in the wake of a notable surge in foreign exchange reserves. As per NRB data, Nepal’s forex reserves rose by 25.9%, from Rs 2,041 billion in mid-July 2024 to Rs 2,569 billion by mid-June 2025.
Insurance claims from Rasuwa flood near Rs 1 billion
The devastating floods and landslides triggered by continuous rainfall in Rasuwa on July 8 have resulted in insurance claims totaling Rs 985.98 million, according to the Nepal Insurance Authority. By August 6, 78 claims had been filed, spanning property (6), marine (9), engineering and contractor risk (5), private motor (16), and public motor (42) categories. Among insurers, Himalayan Everest Insurance received the highest claim amount of Rs 550 million, followed by Shikhar Insurance (Rs 169.63 million), Nepal Insurance (Rs 87.3 million), and Sanima GIC (Rs 68.48 million). Other companies such as Neco, Sagarmatha Lumbini, United Ajod, IGI Prudential, NLG, Siddhartha Premier, and Prabhu Insurance also reported varying claim amounts.
Lawmakers get extension to review revised land bill
Members of Parliament have been granted two more days to examine the updated draft of the Land Management Bill due to ambiguity in some of its provisions. During the latest meeting of the Agriculture, Cooperatives and Natural Resources Committee under the House of Representatives, lawmakers requested more time to analyze specific revisions. Committee Chairperson Kusum Devi Thapa confirmed the next meeting is scheduled for August 13. In a prior session, the committee had tasked the Ministries of Land Management and Law, Justice and Parliamentary Affairs with revising Clause 12(g) of the bill.
Koshi Assembly approves contributory pension fund bill
The Koshi Provincial Assembly has endorsed a bill to establish and operate a Contributory Pension Fund. Minister for Economic Affairs and Planning Ram Bahadur Magar presented the bill, which passed unanimously after being put to a vote by Speaker Ambar Bahadur Bista.
Additionally, the assembly tabled a separate bill concerning the official language policy of Koshi Province.
Naima mobility expo extended due to high turnout
The Naima Nepal Mobility Expo 2025, organized by the Nepal Automobile Importers and Manufacturers Association (Naima), has been extended by one day due to overwhelming visitor numbers.
Originally set for five days, the event now concludes on Monday. Despite heavy rainfall, the expo continued as planned on Saturday, drawing large crowds—particularly from those unable to attend on weekdays. The exhibition features vehicle displays, inquiries, bookings, and sales.
Everest climbing fee to rise, but access to ‘hidden peaks’ made free
Starting September 1, the cost of climbing Mount Everest will increase from $11,000 to $15,000 per person. Fees for other peaks will also be adjusted based on height, location, and climbing season. However, 97 lesser-known Himalayan peaks will be exempt from government royalties for two years. According to cabinet minutes released on August 3, climbers can scale peaks ranging from 5,870 to 7,132 meters without fees from July 17, 2025. Of these, 77 peaks are located in Karnali Province and 20 in Sudurpaschim.
Ncell teams up with WithSecure to offer cybersecurity services
Ncell has partnered with global cybersecurity firm WithSecure to offer advanced digital protection to its enterprise clients. Through this collaboration, Ncell Business will provide services such as endpoint security, threat detection and response (EDR/XDR), cloud and email protection, vulnerability scanning, and threat intelligence. The initiative aims to help Nepali businesses guard against evolving cyber threats in the digital age.
Fonepay becomes first PSO in Nepal to earn PCI DSS certification
Fonepay has announced it has received the Payment Card Industry Data Security Standard (PCI DSS) v4.0.1 Level 1 certification—making it the first payment system operator (PSO) in Nepal to achieve this level of security compliance. This global certification underscores Fonepay’s commitment to safeguarding cardholder data and enhancing infrastructure resilience. COO Paras Kunwar emphasized that data security is a continuous effort and highlighted the company’s investment in next-generation security systems.
Visa opens new office in Kathmandu
Global payments giant Visa has officially opened its Nepal office in Kathmandu, demonstrating its long-term commitment to supporting the country’s transition to a cashless economy. The move is intended to expand access to digital financial services and enhance security for both consumers and merchants. Visa also named Manoj Thapa as the Head of Nepal operations.
Government offers incentives to attract airlines to GBIA and PIA
In a renewed effort to attract international airlines to Nepal’s underused airports—Gautam Buddha International Airport (GBIA) in Bhairahawa and Pokhara International Airport (PIA)—the government has introduced a series of incentives. Under the new “Overall Improvement Plan” for the civil aviation sector, international flights from these airports will be exempt from passenger service charges, tourism fees, and other costs until mid-September 2026. Despite significant investment and inauguration ceremonies, both airports have struggled to bring in regular international flights—blamed on weak planning, poor marketing, and bureaucratic hurdles.
Life insurance grows 16%, non-life segment posts modest gain
Nepal’s life insurance sector grew by 16.05% in the last fiscal year, with Nepal Life Insurance leading the pack by collecting Rs 48.03 billion in premiums—up 17.59% from Rs 40.85 billion a year earlier. Meanwhile, the non-life insurance sector recorded a more modest increase of 6.77%.
ADBL posts record Rs 4.15 billion profit in FY 2024/25
Agriculture Development Bank Limited (ADBL) has reported a record net profit of Rs 4.15 billion for FY 2024/25—marking a 42% jump from the previous year’s Rs 2.89 billion. Its operating profit rose to Rs 11.89 billion from Rs 9.76 billion, while net interest income reached Rs 9.82 billion, according to the bank’s unaudited financial report.
Rasuwa border bridge to reopen by mid-September
The Miteri Bridge at the Rasuwa border, destroyed by flash floods in early July, is on track to be rebuilt by mid-September, officials said.
Construction is progressing quickly on the Chinese side, while damage to roads and infrastructure on both sides of the border is also being addressed. The closure halted cross-border trade, which last fiscal year accounted for imports worth Rs 82 billion and exports worth Rs 2 billion—nearly 4% of Nepal’s total import volume.
NRB allows interbank transactions in convertible foreign currencies
Nepal Rastra Bank (NRB) has for the first time authorized commercial banks, national-level development banks, and infrastructure development banks to conduct interbank transactions in convertible foreign currencies. Previously, interbank transactions were permitted only in Nepalese currency. With the latest amendment to the Unified Directives 2024, NRB now allows foreign currency interbank lending and borrowing for up to seven days. The decision follows a significant rise in foreign exchange reserves and transactions. According to NRB, total foreign exchange reserves stood at Rs 2041 billion by mid-July, 2024, which increased by 25.9 percent to Rs 2569 billion by mid-June 2025.
Rasuwa Flood: Insurance Claims Reach Rs 985.9 Million
The initial insurance claims resulting from the floods and landslides triggered by incessant rainfall in Rasuwa district on July 8 have reached Rs 985.98 million, according to the Nepal Insurance Authority. As of August 6, a total of 78 claims had been filed. These include property insurance (6), marine insurance (9), engineering and contractor risk (5), private motor insurance (16), and public motor insurance (42). By company, Himalayan Everest Insurance accounted for the highest claims at Rs 550 million, followed by Shikhar Insurance at Rs 169.63 million, Nepal Insurance at Rs 87.3 million, and Sanima GIC at Rs 68.48 million. Neco Insurance reported claims worth Rs 56.7 million, Sagarmatha Lumbini Insurance Rs 26.5 million, United Ajod Insurance Rs 9.1 million, IGI Prudential Insurance Rs 7.67 million, NLG Insurance Rs 4.7 million, Siddhartha Premier Rs 3.1 million, and Prabhu Insurance Rs 2.8 million.
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