KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic and sectoral developments present a mixed picture of growth, reform, and persistent challenges. The NEPSE index and sectoral indicators posted gains, reflecting improved investor sentiment, even as trading volume declined. Meanwhile, record-high gold prices signal investor caution or inflationary pressures.
Financial institutions have built substantial loanable funds, supported by rising government expenditure, a revamped digital payment strategy by Nepal Rastra Bank, and SEBON’s commitment to capital market reforms. Tourism is reviving, notably in Rara and Mansarovar, supported by new digital insights from the Tourism Board and upcoming flight resumptions.
Infrastructure issues remain, with damage to land offices and uncertain progress on major hydropower projects like Upper Arun. Additionally, consumer protection, equitable service access, and data system reforms—from airport lounges to foreign employment—highlight ongoing shifts toward transparency and inclusivity.
NEPSE index and all sector indicators climb on Monday
The stock market saw broad gains on Monday, with the NEPSE index rising by 44.25 points to close at 2,547. After a volatile start, the market picked up momentum post-12:30 PM. Despite the uptick, total trading volume dropped from Rs 6.70 billion the previous day to Rs 4.97 billion. Out of 200 listed companies, 44 saw price declines, 8 remained unchanged, and the rest posted gains.
Gold price hits record high, crosses Rs 240,000 per tola
The price of gold surged to an all-time high of Rs 240,400 per tola on Monday, up by Rs 2,400 from the previous day. The Federation of Nepal Gold and Silver Traders’ Association confirmed the increase, noting that the previous rate stood at Rs 238,000 per tola.
Banks build up over Rs 1.15 trillion in loanable funds
With five days remaining in the fiscal quarter, banks and financial institutions have amassed around NPR 1.15 trillion in loanable funds. The start of the fiscal year brought a notable increase in such funds, attributed to the new budget and monetary policy. Early signs suggest growing demand for loans, signaling a shift in credit flow.
Government spending rises in Q1 despite smaller budget
Despite a relatively smaller overall budget, government expenditure in the first quarter has shown improvement. Data from the past five years indicates that while first-quarter spending was typically low, recent trends show a steady increase. The Finance Ministry’s bulletin for FY 2024/25 confirms this upward movement.
Nepal Rastra Bank outlines national payment switch strategy
To enhance transparency, integration, and efficiency in digital transactions, Nepal Rastra Bank has introduced a comprehensive framework for a National Payment Switch and Ecosystem. This system will unify banks, digital wallets, and payment service providers under a single switch, allowing for seamless and secure transactions across platforms, including cross-border payments.
Foreign job seekers now linked to national ID system
Workers going abroad for employment are now required to be linked to the National Identification System (NIDMIS). This change ensures that the actual individuals attend mandatory orientation sessions, preventing fraudulent biometric submissions. The Foreign Employment Information Management System (FEIMS) is now integrated with the national ID database to curb irregularities.
SEBON makes 9-point pledge to investor delegation
The Securities Board of Nepal (SEBON) has committed to a nine-point action plan following a meeting with investors. The group was advocating for the implementation of reforms proposed by the Capital Market Reform Task Force led by Rameshore Khanal, now Finance Minister. One key commitment includes enabling margin trading through brokers by mid-November.
Market monitoring to intensify during festival season
The Department of Commerce, Supplies, and Consumer Protection will step up surveillance of market activities during the Tihar and Chhath festivals. The move aims to ensure cleanliness, pricing transparency, and consumer protection during the high-demand season.
Bhotekoshi hydropower plant back in operation after deal
Operations have resumed at the 45 MW Bhotekoshi Hydropower Project following a settlement between Bhotekoshi Gen Z Public Investment Ltd. and Bhotekoshi Power Company. The agreement includes provisions for 10% free share allocation to affected communities and a yearly Rs 25 million contribution to Bhotekoshi Rural Municipality as part of corporate social responsibility.
Future of Upper Arun hydropower project still unclear
Despite a feasibility study conducted in 1991 and a $600,000 World Bank loan, the 1,061 MW Upper Arun Hydropower Project remains in limbo. Although a preliminary investment deal was signed in June 2024, India’s competing claim has stalled financial closure efforts for over a year.
Bhairahwa and Pokhara flights set to resume for winter
International flights to Bhairahwa and Pokhara are set to return this winter. Thai Air Asia will operate direct flights from Bangkok to Gautam Buddha International Airport twice weekly, on Sundays and Wednesdays, using an Airbus A320 with 180 seats. Arrivals are scheduled for 12:15 PM with departures at 1:15 PM the same day.
Chinese imports halted at major customs checkpoint
A key customs point on the China-Nepal border, which previously saw up to 100 daily container entries including apples and electric vehicles, has halted operations. Currently, Mustang’s Korala point is being used as an alternative route. The Rasuwa Customs Office has set a revenue target of Rs 40.16 billion for this fiscal year.
Nepal Tourism Board launches monthly ‘Tourism Insights’ digital report
The Nepal Tourism Board has introduced a new monthly digital publication called Tourism Insights. The report offers key statistics, trends, and international perspectives on the tourism industry. Launched during a ‘Meet and Greet’ event in Kathmandu, the board said the platform aims to support informed decision-making by policymakers, entrepreneurs, and researchers.
VIP lounge at Tmulingtar airport shut down after Gen Z protest
In response to pressure from the Gen Z movement, Tmulingtar Airport has closed its VIP lounge to promote equal access for all travelers. Previously, the lounge was often crowded with political figures and their supporters, creating security and logistical issues. The Civil Aviation Office confirmed the closure, noting that Buddha Air operates daily 72-seat flights between Kathmandu and Tmulingtar.
Protests damage land offices, disrupt records
Widespread protests on September 9 led to damage at 36 land administration offices nationwide—22 Land Reform and Survey Offices and 14 cadastral offices. Ten land revenue offices suffered total loss of critical documents, including land ownership records and mortgage restrictions. The Land Management Department has ordered a reconstruction of lost records.
Baglung records potato production worth Rs 1.946 billion
Farmers in Baglung district have produced potatoes valued at Rs 1.946 billion this year. Potatoes are cultivated in two seasons—monsoon and winter—with higher yields typically in the monsoon. Thanks to the region’s high-altitude terrain, potato farming continues to generate significant income. The Agricultural Knowledge Center noted increasing farmer participation due to strong returns on investment.
Tourist influx rises in Rara and Mansarovar during festival season
Tourist numbers are climbing in key destinations like Rara Lake (Mugu) and Mansarovar (Humla) amid the Dashain and Tihar festivals. Despite tough road access and limited lodging, Karnali Province is seeing growth in both domestic and Indian visitors. Rara National Park reported a rise in local tourism during the festive season, while Mansarovar visitors mostly arrive by air.
Global IME Bank announces 8% cash dividend
Global IME Bank Limited has proposed distributing an 8% cash dividend (including tax) from its fiscal year 2024/25 profits. The dividend will be calculated based on the current paid-up capital. After getting approval from Nepal Rastra Bank, it will be presented at the bank’s upcoming general meeting for final approval.
NIC Asia urges customers to update email information
NIC Asia Bank has requested account holders to update their registered email addresses. Customers can do this through the ‘My Profile’ section on the bank’s mobile app or video KYC platform under the ‘Change Email’ option. Alternatively, they can visit any branch to submit an update request.
Habib Bank gets green light to sell shares in Himalayan Bank
Habib Bank of Pakistan has received final approval from Nepal Rastra Bank to sell its stake in Himalayan Bank to National Life Insurance. The regulatory clearance was confirmed by Guru Prasad Paudel, head of the Banking and Financial Institutions Regulation Department at the central bank.
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