KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mix of cautious optimism and structural challenges. The NEPSE index made a mild recovery after three days of losses, though trading volume declined, indicating subdued investor confidence, while surging gold and silver prices pointed to rising demand for safe-haven assets.
On the policy front, Nepal secured $14.4 million in international grants for climate resilience, and the government designated 16 water and energy projects as national priorities to strengthen infrastructure and energy security. The central bank remained active—investing Rs 3.7 billion from its pension fund, mandating licenses for casino currency exchanges, and supporting startups through concessional loans.
Meanwhile, issues such as project delays, land administration inefficiencies, and disputes over electricity tariffs underscored persistent governance and regulatory hurdles. Corporate and sectoral developments, including Sahas Urja’s dividend announcement and Nepal Airlines’ expanded domestic flights, reflected gradual progress
in industry and services, even as agriculture suffered weather-related setbacks and cooperative inefficiency highlighted deeper institutional weaknesses.
NEPSE index edges up after three days of decline
The Nepal Stock Exchange (NEPSE) index recorded a modest gain on Tuesday, rising by 3.21 points to close at 2,565.16, halting a three-day losing streak. Despite the uptick, overall market turnover fell to Rs 3.62 billion from Rs 4.51 billion the previous day. Out of all listed companies, 142 saw their share prices increase while 102 declined. All sector indices posted changes below 1%. Four newly listed firms — Bandipur Cable Car, Mabilung Energy, Sagar Distillery, and Bungel Hydropower — saw their stock prices jump by 10%, while City Hotel reported the largest drop at 4.96%.
Gold and silver prices soar in domestic market
Gold prices in the domestic market surged by Rs 4,900 per tola (11.66 grams) on Tuesday, reaching Rs 246,400 per tola, up from Rs 241,500 on Monday, according to the Federation of Nepal Gold and Silver Dealers Association. Silver prices also rose by Rs 105 per tola, hitting Rs 3,170 compared to Rs 3,065 the previous day.
Nepal receives $14.4 million in climate resilience grants
Nepal has obtained USD 14.4 million in total grant funding for projects focused on environmental protection and climate-resilient livelihoods. Of this amount, USD 8.7 million will come from the Global Environment Facility (GEF) through an agreement with the Food and Agriculture Organization (FAO) to promote climate-resilient paddy farming in central Nepal. In addition, USD 2.2 million has been allocated for restoring forest and mountain ecosystems in Sudurpashchim Province, while another USD 4.2 million will fund local-level livelihood programs designed to help communities adapt to floods, droughts, and other climate-related risks.
NRB to invest Rs 3.7 billion from pension fund
Nepal Rastra Bank (NRB) has announced plans to invest Rs 3.7 billion from its Gratuity and Pension Fund into domestic banks and financial institutions for a one-year term. The allocation includes Rs 2.96 billion for ‘A’ class commercial banks, Rs 555 million for national-level ‘B’ class development banks, and Rs 185 million for national-level finance companies. Institutions applying for the investment must meet specific financial standards, such as maintaining adequate capital, keeping non-performing loans (NPLs) below 8%, and having reported profits in the previous fiscal year.
Sunkoshi Marin project initiates contractor termination process
The Sunkoshi Marin Diversion Multipurpose Project—a key National Pride Project—has started proceedings to terminate its contract with Patel-Raman JV. A public notice issued Tuesday asked the contractor to justify why its Rs 14.08 billion contract should not be cancelled. The decision follows extremely slow progress, with only 10% of work completed despite 61% of the contract period having elapsed. The project also plans to seize the contractor’s bank guarantees worth Rs 3.6 billion, including Rs 2.4 billion in performance bonds and Rs 1.2 billion in advance payment guarantees.
Nepal explores transition to developing nation status
The National Planning Commission (NPC) has begun high-level discussions on Nepal’s graduation from a Least Developed Country (LDC) to a Developing Nation. The talks focus on progress, remaining preparations, and strategies to achieve the transition by mid-December 2026. Chaired by Finance Minister Rameshore Khanal, the meeting included former finance ministers and private sector representatives. However, FNCCI President Chandra Prasad Dhakal urged the government to request a three-year extension, citing concerns about potential negative impacts on businesses, production, and employment amid current economic volatility.
Shivam Cement clears first installment of electricity dues
Shivam Cement has paid the first installment of its outstanding premium tariff arrears owed to the Nepal Electricity Authority (NEA) for dedicated and trunk power lines. The NEA had cut power to the company’s Hetauda plant on October 21, 2025, after a payment default following a notice issued on October 18. The total arrears, covering January 2016 to April 2018, amount to Rs 668.9 million. The company has now paid Rs 23.8 million—the first of 28 scheduled installments—prompting NEA to restore power to the plant.
Government designates 16 water and energy projects as national priority
The government has classified 16 water and energy initiatives as National Priority Projects. The Ministry of Energy, Water Resources, and Irrigation released the list, which includes both government and private sector-led ventures across production, transmission, and distribution. Among them are major National Pride Projects such as Babai Irrigation, Bheri Babai Diversion, Sunkoshi Marin Diversion, and Sikta Irrigation. The long-debated Kali Gandaki–Tinau Multipurpose Project has also been added. The designation ensures budget prioritization and streamlined government support during implementation. Energy Secretary Sarita Dawadi stated that the move will enhance agricultural growth, energy security, and rural employment.
Kailali district sees decline in monsoon paddy output
Kailali district has reported a 5.26% fall in monsoon paddy production compared to last year, resulting in a shortfall of 17,135 metric tons. The district harvested 308,434 metric tons of paddy from the same 68,541 hectares of farmland. The drop is attributed to erratic weather conditions, including water shortages during critical growth phases and excessive rainfall during flowering. Average productivity has decreased from 4.75 metric tons per hectare last year to 4.5 metric tons this year.
Everest’s new Mt. Nuptse route to open by April 2026
A new, safer route for climbing Mount Everest—bypassing the perilous Khumbu Icefall—is set to open by mid-April 2026. This alternative route along Mount Nuptse follows the path first used by Tenzing Norgay Sherpa and Sir Edmund Hillary in 1953. According to the Department of Tourism (DoT), about 80% of the construction work is already complete. The route’s re-establishment is being led by mountaineers Kaji Sherpa and Marc Bataille, with funding primarily from French donors and associations. The $400,000 project is expected to significantly enhance climbing safety.
41% of cooperatives in Syangja remain inactive
In Syangja district, 41% of the total 574 registered cooperatives—equivalent to 232—are inactive. The inactivity is largely due to weak oversight by local and provincial governments. Many cooperatives were formed mainly to access government subsidies and became dormant once funds were secured. Waling Municipality has the highest number of inactive cooperatives, with 61 out of 101 inactive. Public concerns are growing over possible misuse of funds, prompting some municipalities to begin canceling registrations of non-functioning cooperatives. Stronger regulatory enforcement has been called for.
Sahas urja declares 22.1053% dividend
Sahas Urja Limited has announced a total dividend of 22.1053% for shareholders based on profits from fiscal year 2081/82. The company’s Board of Directors approved the proposal, which includes a 21% bonus share and a 1.1053% cash dividend to cover tax obligations. The proposal awaits endorsement at the upcoming Annual General Meeting. In addition, the company has revised its rights issue plan—its 1:1 rights share will now be issued after the bonus shares are distributed. Following the bonus share adjustment, Sahas Urja’s paid-up capital is expected to reach Rs 4.5738 billion.
Government temporarily reopens land plot division
The government has decided to reopen land plot division by approving the third amendment to the Land Use Regulations, 1964. The decision, made at Monday’s Cabinet meeting, will remain in effect until the next fiscal year and will come into force upon publication in the Gazette. This move follows three years of restrictions that required land classification—such as agricultural or residential—before division, a requirement that over half of Nepal’s 753 local governments failed to implement. Authorities expect the temporary reopening to stimulate the stagnant real estate market and help revive the slowing national economy.
Lamjung land revenue office halts services after chief’s suspension
Operations at the Lamjung Land Revenue Office have come to a standstill following the suspension of its chief, Ram Chandra Adhikari. Adhikari was suspended on October 8, 2025, after being implicated in a corruption case linked to a land transfer in Pokhara. The Commission for the Investigation of Abuse of Authority (CIAA) has filed charges at the Special Court, seeking Rs 5.3 million in restitution and naming two former federal ministers as co-defendants. With Adhikari suspended and the only remaining officer on leave, all services requiring an authorized signature—particularly land transfer and case documentation—are currently on hold, leaving locals unable to access essential services.
NRB requires casinos to obtain licenses for foreign currency exchange
Nepal Rastra Bank (NRB) has issued a new directive requiring casinos and similar establishments to obtain licenses before engaging in foreign currency exchange. The provision aligns with Section 3 of the Foreign Exchange (Regulation) Act, 1962, which mandates authorization for foreign exchange activities. Casinos must now secure approval to trade in foreign currencies, including Indian rupees. Additionally, NRB released an integrated payment system directive, setting transaction limits: debit card transactions are capped at Rs 50,000 per day, prepaid card transactions at Rs 20,000 daily and Rs 200,000 monthly, and specific controls are applied to credit cards.
Dispute arises over dedicated line tariff agreement
A dispute has surfaced regarding the implementation of an agreement between the government, the prime minister, and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on dedicated and trunk line electricity tariffs. The agreement stipulated three measures: paying a certain amount as collateral or installment, restoring power to disconnected industries, and conducting a review. However, NEA Executive Director Manoj Silwal clarified that the payments received are considered revenue—not collateral—and will only be refunded by court or regulatory order. He also ruled out any administrative review, contradicting the industry’s interpretation. As a result, eight factories remain without electricity nine days after the deal was signed.
Over 600 applications submitted for startup enterprise loan
The Industrial Enterprise Development Institute (IEDI), under the Ministry of Industry, Commerce, and Supplies, has received 610 applications for the Startup Enterprise Loan program as of Monday. According to Executive Director Umesh Gupta, 592 applications were filed online and 18 in person. The submission deadline is December 9, 2025. The government has earmarked Rs 730 million for the program this fiscal year, targeting around 400 startups. Under the Startup Enterprise Loan Operation Procedure 2024, entrepreneurs can access loans of up to Rs 2.5 million at a 3% annual interest rate.
Nepal Airlines increases Taplejung-Kathmandu flight frequency
Nepal Airlines Corporation (NAC) has expanded its flight schedule to Suketar Airport in Taplejung by adding a second weekly flight on Mondays for the Taplejung–Kathmandu–Taplejung route. The airline previously operated only on Fridays. Station In-charge Narayan Kumar Karki stated that the additional flight became possible after previously grounded aircraft were repaired and returned to service. NAC now operates the route twice weekly using its two Twin Otter aircraft, with a proposal under consideration to add a third flight on Wednesdays. This week’s regular Monday flight was shifted to Tuesday due to a technical issue.
Construction banned along 400 kV transmission line corridor
The government has prohibited construction and tree planting along the right-of-way corridor of the 400 kV transmission line being built by MCA-Nepal. The decision, announced by government spokesperson and Minister for Communication and Information Technology Jagadish Kharel after Monday’s Cabinet meeting, affects approximately 1,381 hectares of land—spanning 23 meters on either side of the center line—across Nawalparasi, Palpa, Tanahun, Chitwan, Dhading, Sindhupalchok, Kathmandu, Nuwakot, and Makwanpur districts. The Cabinet also authorized a pre-sanction for an organizational and management review of the Ministry of Energy and its subordinate bodies.
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