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 growth momentum and structural challenges. While remittance inflows surged by over 33% and share-backed lending rose significantly, signaling strong external support and investor activity, the NEPSE index declined due to falling share prices in the majority of companies, and liquidity absorption by Nepal Rastra Bank suggests ongoing monetary tightening.
Government inefficiencies are evident, with over Rs 255 billion sitting idle in the treasury, despite infrastructure needs such as key road projects discussed with JICA. Social unrest from the Gen Z protests continues to affect both provincial budgets and hydropower projects, while CSR policy changes and energy efficiency grants point to evolving financial governance.
Meanwhile, increased taxpayer registration and steady agricultural output in Mustang highlight positive administrative and sectoral developments amid a complex economic recovery phase.
NEPSE declines by 22.58 points as shares of 206 companies fall
The Nepal Stock Exchange (NEPSE) fell by 22.58 points on Wednesday, closing at 2,505.58. Shares of 206 companies declined, while 40 recorded gains and 5 remained unchanged. Trading volume dropped from the previous day, with total turnover amounting to Rs 3.10 billion.
Gold price rises by Rs 400 per tola, silver drops
The price of gold increased by Rs 400 per tola on Wednesday, reaching Rs 248,900, according to the Federation of Nepal Gold and Silver Dealers Association. Silver prices fell by Rs 85 per tola during the same trading session.
Share-backed loans rise by Rs 4.9 billion in two months
Loans secured against shares rose by Rs 4.9 billion in the first two months of the current fiscal year. Nepal Rastra Bank (NRB) data shows such loans totaled Rs 145.6 billion by mid-September, up from Rs 140.7 billion in mid-July—an annual growth of 45.9 percent.
NRB withdraws Rs 35 billion to manage excess liquidity
Nepal Rastra Bank has absorbed Rs 35 billion from the banking system to manage surplus liquidity. The central bank had invited bids from financial institutions, with offers required between Rs 100 million and Rs 500 million.
Finance Minister engages in high-level meetings in Washington DC
Finance Minister Rameshwor Prasad Khanal, in Washington DC for the annual World Bank and IMF meetings, met with various donor agencies and senior U.S. officials. He discussed strengthening Nepal–U.S. trade relations and requested an extension of the Nepal Trade Preference Program. He also held talks with U.S. State Department officials on enhancing bilateral cooperation.
Remittance inflow tops Rs 350 billion in two months
Nepal received Rs 352.08 billion in remittances during the first two months of FY 2025/26, marking a 33.1 percent increase year-on-year. This compares to a 15.8 percent rise in the same period last year, according to NRB data.
Over Rs 255 billion idle in government treasury
Due to slow government spending, Rs 255.61 billion remains unutilized in the state treasury. NRB’s latest report shows that despite available resources, the government has failed to mobilize funds, with the closing balance of the last fiscal year already at Rs 130.73 billion.
Finance Minister discusses key road projects with JICA
Finance Minister Khanal discussed three major infrastructure projects with the Japan International Cooperation Agency (JICA): the BP Highway rehabilitation, Nagdhunga tunnel completion, and Koteshwor underpass construction. He urged JICA to increase support in Nepal’s infrastructure and human development.
Nearly 7 million taxpayers registered for PAN
The number of taxpayers with a Permanent Account Number (PAN) has reached 6.99 million, up from 6.26 million at the end of FY 2023/24. As of the end of FY 2024/25, 351,000 taxpayers were registered for VAT and 125,000 for excise duty, according to the Ministry of Finance.
CSR funds allowed for Gen Z protest victims
Nepal Rastra Bank has revised its CSR guidelines to permit banks and financial institutions to use CSR funds for the treatment of those injured and support of families of those who died during the Gen Z protests.
Rastriya Banijya Bank issues energy efficiency grants
Under the second phase of the “Renewable Energy and Energy Efficiency Program,” Rastriya Banijya Bank has provided grants to industries that adopted energy-saving practices. The Re-Green Project, co-funded by the EU and the German government, supports initiatives with high energy efficiency impact.
Chinese firm to print 420 million new Rs 50 notes
Nepal Rastra Bank has awarded a contract to China Banknote Printing and Minting Corporation to print 420 million pieces of Rs 50 banknotes. The contract, worth Rs 1.47 billion, includes design and printing costs.
Koshi Province slashes 25% of budget for reconstruction efforts
The Koshi Province government has decided to reduce its current fiscal year’s budget by 25%. Internal Affairs and Law Minister Rewati Raman Bhandari said the reallocation is aimed at funding reconstruction following the Gen Z protests and damage caused by heavy rainfall and floods from October 3 to 5.
Bhote Koshi denies agreement to distribute free shares
Bhote Koshi Power Company Pvt. Ltd. has denied reports of an agreement to provide free shares to Bhote Koshi Gen Z Public Investment Ltd. In a statement, the company clarified no such arrangement exists.
Locals halt 10 hydropower projects demanding free shares
Construction work at 10 hydropower projects has been disrupted as locals demand 10% free shares. According to the Independent Power Producers’ Association of Nepal (IPPAN), projects in Jugal Rural Municipality, Sindhupalchok, and several other areas have faced obstructions. In some cases, locals are also protesting delays in receiving previously promised shares.
Apple production climbs in Mustang district
Apple output in Mustang has reached 7,636 metric tons this year, an increase from 7,238 metric tons last year, according to the Agriculture Knowledge Centre. The market value of the harvest has grown to approximately Rs 1.1 billion, up from Rs 918.6 million the previous year.
Two microfinance institutions to begin joint operations from October 19
Grameen Bikas Laghubitta (Butwal) and Samaj Laghubitta (Malangwa, Sarlahi) will start integrated operations on October 19. The merger follows final approvals from Nepal Rastra Bank on October 9 and the Office of the Company Registrar on October 12.
Motorboat service restarts between Kopche and Barahkshhetra
Motorboat services between Kopche and Barahkshhetra have resumed after being suspended since Ashad due to high river levels. With the water flow now lower, locals say the boat service has eased travel difficulties in areas lacking bridges over the Arun and Dudh Koshi rivers.
Hathway Investment Nepal shareholders propose capital boost to Rs 5 billion
During the company’s 17th Annual General Meeting, which had been postponed due to the Gen Z protests, shareholders of Hathway Investment Nepal Ltd. proposed raising the company’s capital to at least Rs 5 billion. The suggestion was presented by Director Damru Ballab Ghimire.
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