KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is reeling from the aftermath of the Gen-Z protests, with damages across key sectors—ranging from banking and hospitality to retail and logistics—totaling billions of rupees.
While some operations like banking, customs, and public transport are gradually resuming under heavy security, the destruction of revenue offices, supermarkets, and factories has crippled essential services and disrupted supply chains, including critical shortages of food and fuel.
Gold prices have hit historic highs, reflecting broader economic uncertainty. Major business houses like Chaudhary Group and Bhat-Bhateni have pledged to rebuild, but widespread vandalism, arson, and logistical paralysis have exposed deep vulnerabilities in infrastructure, governance, and crisis preparedness.
The government faces mounting pressure from both the private sector and the public to restore stability, ensure accountability, and prevent long-term economic deterioration.
Gold prices reach all-time high in Nepal
Gold prices hit a record high in Nepal on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold reached Rs 215,800 per tola, and Rs 185,015 per 10 grams, up from Rs 214,700 per tola the previous day. Silver prices have also risen.
Banks reopen partially under strict security
Banks have started operating selected branches under heightened security. While digital services had continued, physical branches partially reopened from Thursday. For instance, Nabil Bank opened seven branches in the Kathmandu Valley, including three in Kathmandu and two each in Bhaktapur.
Customs clearance resumes at Nepal–India border
Freight truck clearance has resumed at the Nepal–India border after being disrupted for several days due to staffing shortages and security concerns at Nepal’s customs offices. While Indian authorities had continued truck movement and urged facilitation, hundreds of vehicles remained stuck due to delays on the Nepali side. The resumption has eased the supply of essential goods into Nepal.
Hotels report Rs 25 billion in damages during protests
Hotel Association Nepal revealed that nearly two dozen hotels were severely damaged during the September 7–8 protests, with preliminary losses estimated at Rs 25 billion. Affected properties include both domestic and international brand hotels in cities like Kathmandu, Pokhara, Bhairahawa, Butwal, and others.
FNCCI calls on government to ensure security and business continuity
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to restore security and create a favorable environment for business operations. It warned that ongoing unrest has already cost the private sector billions, and delays in resuming economic activity could further damage the national economy.
NRB begins survey of damage to banking sector
Following significant damage to banks and financial institutions during the Gen-Z protests, Nepal Rastra Bank (NRB) has begun assessing the losses. NRB Governor Biswo Nath Poudel—whose home was set on fire during the protests—has initiated steps to collect damage reports and ensure the smooth functioning of financial institutions.
Bhat-Bhateni pledges to rebuild after major losses
Bhat-Bhateni Supermarket, which suffered heavy damage during the protests, announced via Facebook its commitment to rebuild. The company expressed gratitude for the public’s support, stating: “Though our store is destroyed today, your support gives us strength to rise again.”
FMCG companies monitor Nepal’s political developments closely
FMCG companies operating in Nepal, including PepsiCo’s bottler Varun Beverages, Dabur, ITC, Marico, and HUL, are closely observing the country’s political developments. Some companies, such as Reliance Consumer Products, only recently entered the market and are cautious amid the current instability.
Shops begin reopening as curfew eases
Shops that were closed during the height of the Gen-Z protests have begun to reopen in the Kathmandu Valley. The Nepali Army, which imposed curfews and prohibitory orders, has started easing restrictions, allowing residents to go out for essential goods during fixed hours.
Gen-Z protests destroy 14 revenue offices, 5 customs offices
The Ministry of Finance reported that 14 Inland Revenue Offices and five Customs Offices were destroyed during the protests. An additional four revenue offices and four customs offices sustained partial damage. While physical revenue collection has not resumed, customs clearance for essential goods has restarted, and online revenue collection continues.
Sunsari–Morang industries shut down for three days
Factories in the Sunsari–Morang Industrial Corridor have been closed for the past three days due to the unrest. With the festive season approaching, the shutdown has raised concerns among manufacturers. According to CNI President Pawan Sharada, the government’s failure to properly address the Gen-Z movement has paralyzed industrial operations.
Vegetable supply disrupted in Kathmandu Valley amid restrictions
Fresh vegetable supply to Kathmandu Valley has been severely disrupted due to three days of prohibitory orders. At Kalimati, the country’s largest vegetable market, daily intake has plummeted from 700–800 metric tons to just around 100. The Kalimati Fruits and Vegetable Market Development Committee confirmed that the halt in deliveries from outside the Valley has led to a shortage of fresh produce in the capital.
Chaudhary Group suffers major losses from arson and vandalism
Chaudhary Group (CG) has incurred significant damage as a result of arson, looting, and vandalism during the recent protests. Managing Director Nirvana Chaudhary described the events as the most devastating in the company’s history, saying a movement meant for change was hijacked by external and criminal elements. The group’s factories, showrooms, and offices were damaged, their family home was set ablaze, and the company chairman was directly targeted.
Shekhar Golchha remains resolute despite protest attacks
Former FNCCI President Shekhar Golchha has said he remains unshaken, even though his business and personal residence were attacked. In a Facebook post, he shared that neither he nor his family lost hope, and he expressed optimism that the youth-led vision of a new Nepal would bring meaningful change.
Insurance companies return to office after temporary closure
After operating remotely amid the unrest, insurance companies have resumed physical office operations from Friday. While the Insurance Authority had earlier allowed remote service delivery, it has now instructed companies to operate in person, except in unavoidable cases. The authority itself had returned to office on Thursday.
Bhairahawa customs resumes partial operations after damage
The Belhiya customs office in Bhairahawa, which had been shut due to damage during protests, has restarted partial operations. According to chief Shiva Lal Neupane, imports of LPG, vegetables, and fruits from India resumed Friday morning. As the situation stabilizes, more trade activities are expected. The office is currently operating on paper-based systems due to the destruction of computers and documents.
Fire damages transport office and license equipment in Minbhawan
A fire at the Department of Transport Management in Minbhawan destroyed the embossed number plate plant and license printing equipment. The building was severely damaged and has been declared unusable until repairs are made. About 20,000 ready-to-distribute driving licenses were stored in the building, and some were taken by protesters during the arson.
Renewed calls for insurance of government infrastructure
Following widespread destruction of public property during the protests, calls have resurfaced to insure government buildings and heritage sites. Although similar demands were raised after the 2015 earthquake, the government did not implement such measures. With the latest destruction, authorities face another wave of reconstruction costs even before post-earthquake rebuilding has been completed.
Visa extension offered to stranded tourists at no charge
The Department of Immigration will provide free visa extensions at Tribhuvan International Airport for tourists whose visas expired after September 8. Director Tikaram Dhakal announced that foreigners affected by the curfews and unable to extend their visas on time will not be penalized and may regularize their stay before departure at the airport.
Buses resume operations from Gongabu Bus Park
Passenger buses have started operating again from the New Bus Park in Gongabu, which had been closed during the protest-related curfew. From Friday morning, dozens of buses departed Kathmandu between 7 a.m. and 10 a.m., according to Lhotse Multipurpose Pvt. Ltd. Public transport had earlier been suspended following instructions from the Federation of Nepalese National Transport Entrepreneurs during the crisis.
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