KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape faced significant turbulence this week, marked by a sharp stock market plunge, continued fallout from the Gen Z protests, and the urgent need for institutional recovery. The NEPSE index dropped by 160 points, wiping out Rs 268 billion in value and prompting a government task force to investigate systemic market issues.
Parallel to financial instability, physical and institutional damage—including destruction of major retail outlets and public buildings—has prompted reconstruction efforts, with the government and private sector mobilizing resources. Amid these disruptions, the Finance Ministry reassured the public of fiscal self-reliance for upcoming elections, while also initiating budgetary reviews and canceling stalled development contracts.
Despite the turmoil, market indicators like rising gold and silver prices, corporate share issuances, and trade volume growth in sectors such as steel reflect ongoing economic activity. Overall, the situation underscores the government’s dual challenge of restoring public confidence while driving fiscal discipline and structural reforms.
Stock market reels from losses this week
The stock market suffered sharp losses and was forced to close early on Thursday following the Gen Z protests and a change in government. After falling 4% shortly after opening, the market was suspended for 20 minutes; another 1% drop led to a 40 minute suspension, and a further decline triggered a full day shutdown. The index fell 160 points to close at 2,511.91, wiping out approximately Rs 268 billion in asset value.
Gold and silver prices edge higher in domestic market
Gold and silver prices increased on Friday in the domestic market. As per the Federation of Nepal Gold and Silver Dealers’ Association, gold rose by Rs 800, trading at Rs 2,16,000 per tola, up from Rs 2,15,200 the previous day. Silver prices also saw a marginal rise.
Finance ministry forms task force after market crash
In response to Thursday’s NEPSE drop of 160 points to 2,511.91, the Ministry of Finance has established a task force to examine irregularities in the capital market. The panel has five days to report back and recommend both urgent reforms to restore investor confidence and longer term structural changes. Rupesh K.C., Acting Executive Director of the Securities Board of Nepal, has been named coordinator.
Twelve Bhatbhateni outlets remain shut after protest violence
Twelve Bhatbhateni Superstores remain closed after being looted and set ablaze during the protests on September 9. Despite the closures, the company assured that none of its 10,000 employees will lose their jobs or benefits. Out of the 28 stores nationwide, 12—including the head office—were severely damaged.
Nepal’s budget size doubles since constitution’s adoption
Since Nepal’s new constitution was adopted in 2015, the national budget has more than doubled. Back then the total was Rs 819.46 billion—with Rs 484 billion for recurrent expenditures and Rs 208 billion for capital spending—and revenue collection stood at Rs 475 billion. By the fiscal year 2024/25, the budget had grown to Rs 1.86 trillion, with Rs 1.14 trillion allocated for recurrent costs and Rs 352 billion for capital projects, while revenue collection reached about Rs 1.14 trillion—around 80% of target.
Separate fund to rebuild structures damaged in protests
The Ministry of Urban Development has decided to create a dedicated fund for reconstructing public infrastructure damaged during the September 8–9 protests. Minister Kulman Ghising made this his first decision after taking office; the Ministry of Finance is preparing a procedural framework to present at the next Cabinet meeting. The draft guidelines will cover reconstruction, economic recovery, and relief.
Contracts of stalled development projects to be terminated
The government has resolved to terminate contracts for long delayed and stalled development projects under the Ministries of Energy; Water Resources and Irrigation; Physical Infrastructure; and Urban Development. Minister Kulman Ghising has instructed secretaries and departmental heads to submit immediate lists of such defunct projects.
Supreme Court and other major buildings declared unusable after protests
A rapid damage assessment by the Nepal Engineers’ Association has found that four key government buildings—including the Supreme Court—are now unusable due to fire damage sustained during the Gen Z protests. Inspections also revealed serious damage at the Kathmandu District Court, Nepal Bar Association, and the Department of Quality and Measurement Standards.
Bagmati Province to review current budget amid challenges
Bagmati Province’s government has approved a study to review the fiscal year 2025/26 budget. During a Friday cabinet meeting in Hetauda, provincial leaders noted budgetary constraints due to prevailing disruptions and predicted extra financial demands related to administrative restructuring.
Nepal can fund elections without foreign aid, finance minister asserts
Finance Minister Rameshore Khanal says Nepal can finance upcoming federal parliamentary elections, slated for March 4, without relying on foreign aid. He noted that over Rs 120 billion could be mobilized from the 2025/26 budget. He also revealed that there are more than 1,300 unlisted projects with total allocations of Rs 110 billion, which could be re allocated toward the elections and reconstruction efforts.
Environmental assessment for West Seti hydropower begins
The long awaited Environmental Impact Assessment (EIA) for the 800 MW West Seti Hydropower Project is now underway. NHPC India Limited’s consultant, Jade Consult Pvt. Ltd., is inviting local residents in affected areas to participate. Social impact studies—including household surveys and land data collection—began from September 7, according to project supervisor Dinesh Chandra Joshi.
Support for affected families prioritized by government
Government’s immediate priorities include restoring public confidence, treating the injured, and compensating families of those killed during the protests. Damage assessment teams from the Urban Development Ministry, National Disaster Risk Reduction and Management Authority, and other agencies are already at work. Reconstruction of public structures will happen through budgeted allocations; if needed, additional funds will be sought via crowd funding.
Mountain goats reach markets ahead of Dashain
With Dashain approaching, farmers and traders have begun transporting Himalayan mountain goats (Bheda Chyangra) from Mustang via the Beni Jomsom route to large markets. The Nepal Livestock Trade Association reports that 1,300 goats have already been sent to Kathmandu by Thursday, with around 1,700 more on the way.
Contractors still unpaid for completed government projects
Contractors across Nepal are yet to receive payments for construction projects completed in the last fiscal year. Payments have been halted since June 30, affecting many contractors, particularly under provincial governments. In Dang district alone, about 50 contractors are owed nearly Rs 70 million, according to District Construction Entrepreneurs Association Chair Prabin Kumar Bhandari.
Surya Nepal denies power dues, says all payments made
Surya Nepal has refuted claims that it owes dues to the Nepal Electricity Authority. In a public statement, the company clarified it had already paid more than what was required under a Cabinet directive issued in May 2024, which applied retroactive surcharges from December 2015 to April 2018. The company criticized recent media reports for misrepresenting its record.
Himalayan Everest Insurance starts payouts for protest damages
Himalayan Everest Insurance has begun processing insurance claims related to damage from the recent Gen Z protests. The company announced a fast-track payment process, urging clients to file claims and submit necessary documentation at their nearest branch offices.
Real Steel sees higher trade volume but lower profits
Real Steel’s trading volume rose by 13.25 percent in 2025, increasing from Rs 1.24 billion in 2024 to Rs 1.40 billion. However, the company’s net profit dipped, falling from 10 percent last year to 9 percent this year despite the higher trade volume.
Laxmi Technoplast pledges support for infrastructure rebuilding
Laxmi Technoplast Limited has committed to supporting national reconstruction efforts following recent unrest. The company, operating under Om Shivam Pipes & Fittings and Marigold Furniture, will donate 1 percent of its total sales over the next three months to help rebuild damaged infrastructure. Managing Director Anjani Nandan Maru reaffirmed the company’s commitment to the recovery efforts under the slogan, “We build our structures ourselves.”
Norvic Hospital to issue 2.5 million ordinary shares
Norvic International Hospital has announced plans to issue 2.5 million ordinary shares to the public. Laxmi Sunrise Capital has been appointed as the issue and sales manager. Norvic, which started in 1993 with just 30 beds, now operates as a 200-bed multi-specialty hospital and is currently expanding to 300 beds.
Muktinath Bikas Bank proposes 18.2% dividend
Muktinath Bikas Bank has proposed an 18.2 percent dividend based on its profit from FY 2024/25. The proposal includes 13.53 percent in bonus shares and 4.67 percent in cash dividend (for tax purposes). Last year, the bank did not distribute dividends, but it had offered a combined 10.26 percent the year prior.
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