KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic indicators reflect a mixed outlook, marked by a dip in capital market performance and rising commodity prices alongside institutional and structural shifts. The NEPSE index fell by 19.43 points, signaling weakening investor confidence amid falling trading volumes, while gold prices surged to a historic high of Rs 248,500 per tola—suggesting increased demand for safe-haven assets amid uncertainty.
In contrast, positive developments such as Rs 88.66 billion earned from tourism, resumed operations of the Bhote Koshi Hydropower Plant, and growing farmer registration hint at sectoral resilience. Key policy decisions, including the discontinuation of the export cash subsidy and NEA’s threat to cut power to industrial defaulters, indicate a tightening fiscal stance.
Institutional reforms—such as the planned split of Nepal Airlines, NRB’s Rs 3.3 billion investment, and ongoing bank loan audits—suggest an effort to enhance efficiency and accountability. Meanwhile, high-level talks by Finance Minister Khanal with global financial bodies underscore Nepal’s bid for greater international support amid ongoing political and economic transitions.
NEPSE slips by 19.43 points to close at 2528
The Nepal Stock Exchange (NEPSE) index declined by 19.43 points on Tuesday, settling at 2528 by the close of trading. While the market opened on a positive note, it began to drop within the first 30 minutes. Daily trading turnover fell to Rs 3.36 billion—significantly lower than Monday’s Rs 4.97 billion. Out of the listed companies, 214 experienced price drops, 33 gained, and 5 remained unchanged. Among the sectors, the Trading group saw the highest gain at 1.48%, whereas Hydropower recorded the steepest decline of 1.71%.
Gold price surges by Rs 8,100 per tola to reach record high
Gold prices in Nepal jumped by Rs 8,100 per tola on Tuesday, reaching an all-time high of Rs 248,500. The previous day’s price was Rs 240,400 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also increased from Rs 3,220 to Rs 3,325 per tola in a day.
Remittance inflow reaches Rs. 352.08 billion in two months
Nepal received remittance inflows worth Rs 352.08 billion in the first two months of the current fiscal year, marking a 33.1 percent increase compared to the same period last year, according to the Nepal Rastra Bank (NRB). In its report on the current economic and financial situation released on Tuesday, NRB noted that remittance income has continued to grow after a 15.8 percent rise during the same period last fiscal year. During mid-August to mid-September (Bhadau month), remittance inflows stood at Rs. 174.67 billion, up from Rs 127.99 billion a year earlier.
Foreign exchange reserves near Rs 2.9 trillion
Nepal’s foreign exchange reserves have approached Rs 2.9 trillion, according to the latest report from the Nepal Rastra Bank (NRB). Releasing the country’s current economic and financial situation on Tuesday, the NRB said the total reserves increased by 7.6 percent, reaching Rs 2.88 trillion in mid-September 2025, up from Rs 2.68 trillion in mid-July 2025. The central bank’s own reserves stood at Rs 2.58 trillion, up 6.9 percent from Rs 2.41 trillion three months earlier. Similarly, reserves held by other banks and financial institutions increased by 13.7 percent, reaching Rs 298.97 billion.
NRB will not sell gold coins for Dhanteras this year
The Nepal Rastra Bank (NRB) has announced that it will not sell gold coins to the public this year due to the absence of new minting. This marks a departure from past years when gold coins were available for purchase on Dhanteras. However, silver coins will still be sold, and customers can buy them ahead of Dhanteras without restriction.
Finance Minister Khanal holds key talks at World Bank-IMF meetings
Finance Minister Rameshore Khanal, currently in Washington D.C. for the World Bank and IMF Annual Meetings, held separate discussions on Tuesday with Anna Bjerde, Managing Director of the World Bank Group, and Bo Li, Deputy Managing Director of the IMF. During his meeting with Bjerde, Khanal emphasized that Nepal’s newly formed government—emerging from the recent Gen Z protests—is focused on ensuring timely elections and strengthening governance and accountability.
Govt discontinues long-running export cash subsidy scheme
The government has officially moved to discontinue its long-standing cash incentive program for exporters. The Department of Industry recently issued a notice stating it will not accept any new subsidy applications in the 2025/26 fiscal year that could add to existing liabilities. Since subsidies for exports are typically paid a year later, uncertainty remains over payments for the previous fiscal year and older unsettled claims.
Bangladeshi firm starts review of major banks’ loan portfolios
Howlader Yunus & Co., a Bangladeshi auditing firm selected to assess the loan portfolios of 10 major commercial banks, has begun field inspections across all banks. Offsite analysis had already started before Dashain, and joint teams—comprising Nepal Rastra Bank officials and Nepali chartered accountants—began onsite reviews from Sunday. These teams are collecting internal policies and data prior to Tihar, with full inspections and monitoring set to follow after Chhath.
NEA to cut electricity to industries defaulting on premium charges
The Nepal Electricity Authority (NEA) has warned industries that have not paid premium charges for trunk lines and dedicated feeders that their electricity supply will be cut off if payments are not made by October 19. The NEA Board has already approved a plan to recover overdue amounts and has issued a public notice stating that power lines will be disconnected if the deadline is missed.
NRB to invest Rs 3.30 billion from pension and subsidy fund
The Nepal Rastra Bank will invest Rs 3.30 billion from its subsidy and pension fund into commercial and development banks, as well as finance companies. The investment will be made for a 366-day term and is open to Class A, B, and C financial institutions, according to a public notice.
Nepal Airlines to be split into three separate entities
Nepal Airlines Corporation (NAC) will be restructured into three distinct entities, following recommendations made by the Civil Aviation Sector Reform Committee. The committee had submitted its final report to then-interim Prime Minister Sushila Karki on September 28. The cabinet has since agreed to forward the plan to the appropriate ministry for implementation. The new structure will include: Nepal Airlines Corporation, Nepal Airlines Company, and Nepal Aviation Service Provider Company.
Nepal Airlines cancels October 19 flight to Guangzhou
Nepal Airlines Corporation (NAC) has canceled its scheduled Kathmandu–Guangzhou flight on October 19, citing internal reasons. According to spokesperson Subas Dangol, all affected passengers have been accommodated through alternative arrangements. For reference, 68 passengers had booked the October 16 outbound flight, while 41 had reserved seats for the return flight on October 17.
Over 600 government vehicles damaged during protests to be auctioned
A total of 607 government-owned vehicles damaged during the Gen Z-led protests around Singha Durbar will be auctioned off as scrap. The Ministry of Urban Development has collected 552 of these vehicles and parked them near Parliament, while the Ministry of Physical Infrastructure has added another 55. The Ministry of Finance has instructed that all the vehicles be sold through public auction.
FNCCI urges government to reinstate export subsidy
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called on the government to restore the export cash subsidy program. FNCCI warned that the suspension of the scheme could harm investment, reduce export competitiveness, and increase unemployment. The program, introduced in FY 2011/12, aimed to boost exports of domestically value-added goods at a time when Nepal’s export contribution to foreign trade continues to shrink and the trade deficit widens.
Nepal earns Rs 88.66 billion from tourism in FY 2024/25
Nepal generated Rs 88.66 billion in foreign currency from tourism over the past fiscal year, according to the Nepal Rastra Bank. A total of 1.146 million international tourists visited the country during FY 2024/25, contributing significantly to the national economy through foreign exchange earnings.
Bhote Koshi hydropower plant resumes operations after agreement with locals
The 45 MW Bhote Koshi Hydropower Project has resumed power generation after a prolonged shutdown caused by local obstructions during the Gen Z protests. Operations restarted after the project’s developer, Bhote Koshi Power Company Pvt. Ltd., agreed to allocate 10% of its shares to Gen Z Public Investment Ltd., which represents directly affected locals.
Nepal Airlines begins pilot training at Gautam Buddha Airport
Nepal Airlines Corporation has started base training for new Airbus A320 pilots at Gautam Buddha International Airport in Bhairahawa. Due to Kathmandu’s busy and geographically challenging airspace, training flights were moved to Bhairahawa. Instructor Dipuraj Juarchan led the sessions, flying an empty aircraft from Kathmandu.
Rastriya Banijya Bank awards energy grants to 13 industries
Rastriya Banijya Bank has distributed over Rs 40 million in grants to 13 industries under the second phase of the Renewable Energy and Energy Efficiency Programme–Nepal (REEEP). The support aims to promote energy-efficient practices and sustainable industrial development.
Over 2.3 million farmers registered under national database program
The government has registered 2.38 million farmers in its National Farmer Registration Program. Farmers are being categorized into subsistence, small, medium, and large groups based on income. This classification will be used to provide targeted subsidies and services through an electronic platform, along with issuing ID cards.
Jumla farmers sell apples worth over Rs 330 million
Farmers in Jumla have sold apples worth Rs 330.75 million so far this fiscal year. Popular varieties such as Gala, King Red, and Fuji contributed to a total export of approximately 4,725 metric tons to other districts within the first three months of FY 2025/26.
Tihar flora expo kicks off at Bhrikuti Mandap
The third edition of the Tihar Flora Expo has opened at Bhrikuti Mandap, Kathmandu. Organized by the Nursery Entrepreneurs Association Nepal, the event features 70 stalls showcasing flowers, ornamental plants, and saplings from various nurseries. The fair is supported by the Floriculture Development Centre and the Department of Plant Resources.
Garima Development Bank announces 10.53% dividend
Garima Development Bank has declared a 10.53% dividend for its shareholders. This includes a 6% bonus share and a 4.53% cash dividend (inclusive of tax), as approved by the board from last fiscal year’s profits.
NRB approves merger of Pokhara Finance and Samriddhi Finance
Nepal Rastra Bank has granted merger approval to Pokhara Finance Ltd. and Samriddhi Finance Ltd. The companies had signed a Letter of Intent and must now complete regulatory procedures and obtain general assembly approval within three months.
Himalayan Life Insurance appoints Kapil Kumar Dahal as CEO
Kapil Kumar Dahal has been appointed CEO of Himalayan Life Insurance. Previously serving as Deputy CEO and acting chief following the resignation of Manoj Kumar Lal Karna, Dahal’s appointment was confirmed by the board on October 13.
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