KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic developments reflect a mix of fiscal tightening, structural shifts, and ongoing economic resilience. The Nepal Rastra Bank’s decision to raise the daily gold import limit signals a loosening of import restrictions, while a concurrent drop in gold prices indicates market sensitivity to these policy shifts.
Meanwhile, remittances remain a critical source of liquidity for banks amidst sluggish domestic credit demand, even as non-banking assets continue to rise due to a stagnant real estate market. The government is moving towards fiscal discipline—cutting budgets for fragmented projects, drafting new vehicle facility guidelines, and phasing out export subsidies—though these subsidy cuts have drawn criticism from industrialists.
Infrastructure and energy sectors saw key progress, such as the financial closure of the Tamor–Mewa hydropower project and approval of Rs 20 billion in energy bonds. Additionally, post-disaster recovery needs have emerged, with over 600,000 embossed number plates destroyed during protests and calls for relief to flood-hit hydropower projects.
On the social side, reforms in social security distribution aim for greater efficiency, while nearly 4,000 youths leaving for foreign jobs during Dashain underscores ongoing employment challenges. The tourism sector continues to show potential, as seen in Poon Hill’s transformation and business growth at Nagarkot Resort.
Nepal Rastra Bank increases daily gold import limit
Nepal Rastra Bank has raised the allowable daily quota for gold imports. On Friday, the central bank updated its integrated circular, increasing the daily limit from 20 kilograms to 25 kilograms. At the same time, changes were made to the payment ceiling for remittances sent from abroad. According to a new circular issued by the Foreign Exchange Management Department, these new rules take effect immediately.
Gold price drops by Rs 4,200 in Nepali market
The price of hallmark gold fell sharply by Rs 4,200 on Friday, reaching Rs 235,000 per tola, down from Rs 239,200 on Thursday, according to the Federation of Nepal Gold and Silver Dealers Association. Meanwhile, the price of silver saw a slight increase.
Government approves Rs 20 billion energy bond issuance
The government has authorized the Nepal Electricity Authority (NEA) to issue energy bonds worth Rs 20 billion. The Cabinet decision made on October 9 allows the bonds to be issued in phases to support the financing of hydropower projects.
Finance Ministry begins work on new guidelines for vehicle facilities
The Finance Ministry has initiated drafting new rules governing vehicle allowances for government officials. It has begun gathering data on officials and employees who are currently assigned official vehicles across all ministries and agencies. This initiative follows a Cabinet decision made on September 21.
Remittance becomes main source of liquidity in Nepali banks
Remittances have emerged as the primary source of liquidity for Nepal’s banking sector. As remittance inflows rise and demand for new loans remains weak, banks are accumulating more investable funds. This surplus liquidity has led banks to lower deposit interest rates, and interbank lending rates have also stayed low.
Thai AirAsia to resume flights from GBIA
After six months without international service, Gautam Buddha International Airport in Bhairahawa will see Thai AirAsia resume flights beginning October 26. The airline has secured permission for two weekly routes from Bhairahawa. Other carriers, such as Jazeera Airways, are also in the planning stages, with coordination ongoing between the airline’s country director and airport authorities.
Government implements new procedure for social security allowance distribution
The government has rolled out the Social Security Allowance Distribution Procedure, 2025 to make the disbursement of benefits more transparent, technology-driven, and systematized. This new procedure replaces the earlier 2020 version. It covers eight types of allowances, including those for senior citizens, persons with disabilities, residents in remote areas, and protected communities.
IPPAN urges government to provide relief to flood-affected hydropower projects
The Independent Power Producers’ Association, Nepal (IPPAN), has called on the government to offer relief packages to hydropower projects damaged by floods. In a meeting with Energy Minister Kulman Ghising, IPPAN’s representatives demanded the announcement of support measures for reconstruction.
Finance Ministry to continue essential projects despite budget cuts
Despite recent budget cuts, the Ministry of Finance will proceed with key ongoing and essential development projects. Finance Minister Rameshore Khanal has introduced a policy to curb expenditures by discontinuing smaller and fragmented initiatives. The ministry has already circulated notices to all ministries informing them of the revised budget priorities.
Over 600,000 embossed number plates destroyed in fire
By the end of July, the Department of Transport had produced 819,059 embossed number plates. About 200,000 had already been distributed to provinces, but roughly 619,000 were destroyed in a fire during the Gen-Z protests, while still in transit to dispatch. The Department estimates the bulk of the loss occurred in that incident.
Govt earns Rs 31.5 million in revenue from land and housing in one month
In the second month of fiscal year 2025/26, the government collected Rs 31.5 million from land and housing transactions, per the Department of Land Management and Archives. In the first month, it had collected Rs 32.8 million. As of now, land plotting has been suspended in 500 local units pending completion of cadastral details, which stakeholders say has suppressed real estate activity.
Nepali banks’ non-banking assets exceed Rs 50 billion
The non-banking assets of banks and financial institutions in Nepal have crossed Rs 50 billion, primarily due to the stagnation in real estate transactions over the past three fiscal years. Properties taken as collateral could not be sold at auction, leading to an accumulation of such assets. As of the first month of the current fiscal year, Nepal Rastra Bank reports these assets have reached Rs 50.56 billion.
Government to end export subsidy for industries
The interim government led by Prime Minister Sushila Karki is preparing to phase out export subsidies that industries and exporters have long relied on. Previously, Nepali exporters received subsidies ranging from 5% to 8% for goods exported to India and third countries. The policy shift marks a significant change in the government’s trade incentive strategy.
Nearly 4,000 youths leave Nepal for foreign jobs during Dashain
While most families return home during Dashain, nearly 4,000 young Nepalis departed the country for employment abroad over the holiday. According to the Department of Foreign Employment, 3,850 youths obtained labor permits and left Nepal during the six days starting from Fulpati. The trend highlights the ongoing lack of domestic employment opportunities.
Industrialists protest suspension of export subsidy
Export-oriented industrialists have expressed strong opposition to the government’s decision to suspend subsidies. The Morang Chamber of Industry and Commerce issued a statement criticizing the interim administration’s move. Entrepreneurs argue that instead of discontinuing subsidies, the government should have expanded the list of eligible export products.
Tamor–Mewa hydropower project secures financial closure
The 128-megawatt Tamor–Mewa Hydropower Project in Taplejung, Koshi Province, has successfully secured financial closure. The deal was signed on Thursday at Siddhartha Bank’s central office in Kathmandu. The project is being developed by Spark Hydroelectric Company Limited.
Poon Hill transforms from pastureland to global tourist hotspot
Poon Hill, located in Annapurna Rural Municipality–6 of Myagdi, has evolved from a local grazing field once called Lungtung Hill into a world-renowned tourist destination. Standing at 3,210 meters, it now draws international trekkers and significantly boosts the local economy and municipal revenue.
Muktinath Capital to manage IPO of Dudhpokhari Chepe Hydropower
Muktinath Capital Limited has been appointed as the issue and sales manager for the upcoming public offering of Dudhpokhari Chepe Hydropower Company. The agreement was signed by Muktinath Capital CEO Kabindra Dhwaj Joshi and the hydropower company’s chairman, Sabin Pradhananga.
Nagarkot Resort records Rs 50 million in turnover
Nagarkot Resort Limited posted a business turnover of Rs 49 million in the last fiscal year, up from Rs 20 million the year before. Established in 2017 and converted into a public company in 2023, the resort is now preparing to launch its initial public offering (IPO).
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