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 cautious optimism and structural challenges. The NEPSE index began the week with moderate gains, supported by sector-wide improvements except for a few financial segments, while commercial banks posted a year-on-year decline in net profits. The government’s move to reallocate Rs 122 billion from the budget and the sharp fall in capital expenditure highlight persistent inefficiencies in public spending.
Simultaneously, regulatory tightening, such as the NTA’s directive to ISPs, signals growing consumer protection efforts. On the tourism and trade front, rising visitor numbers in Manang and Mustang, the UK export of Dhangadhi marigolds, and new adventure activities underscore a resilient post-monsoon recovery.
However, revenue declines in sectors like aviation, surging infrastructure costs, and gold price volatility reveal underlying market pressures. Together, these trends paint a picture of an economy striving for stability amid policy realignments and evolving consumer dynamics.
NEPSE gains 16.67 points to close at 2,503.85
The Nepal Stock Exchange (NEPSE) began the trading week with a positive performance, as the index rose by 16.67 points to end at 2,503.85. A total of 6,199,929 shares from 323 listed companies were traded across 28,737 transactions, generating a turnover of Rs 2.79 billion. Among sector indices, Development Bank declined by 0.21%, Mutual Funds by 0.13%, and Non-Life Insurance by 0.34%. All other sectors saw gains, with Banking up 0.87%, Finance 0.51%, Hotels & Tourism 0.72%, Hydropower 0.70%, Investment 0.75%, Life Insurance 0.33%, Manufacturing & Processing 0.90%, Microfinance 0.47%, Trading 0.90%, and Others 1.16%.
Gold price falls by Rs 4,800 in domestic market
The price of gold in Nepal dropped by Rs 4,800 per tola on Sunday, following a record high on Friday. According to the Federation of Nepal Gold and Silver Traders’ Association, hallmark gold fell to Rs 253,200 per tola from Rs 258,000. Similarly, silver prices declined from Rs 3,350 to Rs 3,275 per tola over the same period.
Commercial banks post Rs 16.59 billion profit in two months
Twenty commercial banks collectively reported a net profit of Rs 16.59 billion in the first two months of FY 2025/26—a 6.2% drop from Rs 17.69 billion in the same period last year. Nepal Rastra Bank noted that profits increased in 10 banks while falling in the other 10. Siddhartha Bank, NMB Bank, Nepal Bank, Machhapuchhre Bank, and Laxmi Sunrise Bank were among those with the highest profit growth.
Government reduces budget by Rs 122 billion for key priorities
The government has slashed over Rs 122 billion from this year’s budget to reallocate funds for five major priorities: the national elections scheduled for March 5, 2026; repair and reconstruction of public assets damaged during the Gen Z movement; rehabilitation of affected individuals; rebuilding flood-damaged infrastructure from the October 4–5 disaster; and ongoing key development projects.
Capital spending drops significantly in first quarter
Government capital expenditure has sharply decreased compared to the same period last fiscal year. Between mid-August and mid-October 2025/26, only Rs 19.18 billion was spent—just 4.7% of the annual target. In the previous year, Rs 29.44 billion (8.36%) had been spent during the same timeframe. As per the Office of the Financial Comptroller General, recurrent expenditure reached Rs 256.8 billion, or 21.75% of the total target.
ISPs ordered to publish approved rates before billing customers
The Nepal Telecommunications Authority (NTA) has directed all internet service providers to publish officially approved tariffs before offering services or billing customers. Issued on Sunday, the directive follows mounting complaints about ISPs charging unapproved and non-transparent fees. Providers are now only allowed to charge rates that have received NTA’s approval.
Road department moves to cancel 50 stalled construction contracts
The Department of Roads has started the process of terminating 50 road construction contracts that have remained incomplete for several years. Offices involved include the Pushpalal (Mid-Hill) Highway project and Federal Road Supervision and Monitoring Offices in Kathmandu, Itahari, Pokhara, Surkhet, Janakpur, and Damauli. The Janakpur division alone has issued termination notices for 21 contracts—the highest of any office.
Babai irrigation project cancels long-idle construction deals
The Babai Irrigation Project has initiated the cancellation of several outdated construction contracts signed with Raman Construction Company about six years ago. A public notice issued on Thursday confirmed the move. The contracts, signed in FY 2020/21, covered work such as canal maintenance and structure repair. Four contracts saw zero progress, while one achieved 30% completion and another 55%.
Reconstruction fund reaches Rs 61 million
The government’s Physical Infrastructure Reconstruction Fund has accumulated Rs 61 million to date. The fund was set up to rebuild public infrastructure damaged during the Gen Z protests, which involved widespread vandalism and arson. The Finance Ministry confirmed the figure as of this morning.
Govt to upgrade Pokhara–Bhairahawa highway as ‘game-changer’
In a bid to boost economic activity, the interim government is planning to upgrade the Pokhara–Bhairahawa Siddhartha Highway, branding it a “game-changer project.” According to the fiscal budget, the highway will be developed into a dedicated double-lane route. Cited in Clause 151, the project is expected to significantly support tourism and regional development.
Nepal-India petroleum pipeline completes six years
The cross-border petroleum pipeline from Motihari (India) to Amlekhgunj (Nepal) has completed six years in operation. According to the Nepal Oil Corporation’s Madhesh Regional Office, the pipeline has delivered a total of 6.35 billion liters of petroleum products—comprising 6.14 billion liters of diesel, 201.5 million liters of petrol, and 410,000 liters of kerosene.
Tourist arrivals in Mustang surge despite setbacks
Despite challenges posed by the Gen Z protests and monsoon-related disasters, tourism in Mustang has seen an unexpected rise. According to Mustang District Police, more than 334,726 visitors arrived in the first six months of the year. Mustang continues to attract both domestic and international tourists for its religious significance and natural beauty, accessible via the Beni–Jomsom–Korala road, Pokhara–Jomsom flights, and the famous Thorong La Pass on the Annapurna trail.
Fuel depots to stay open during Tihar holidays
Nepal Oil Corporation has announced that fuel depots and offices in all seven provinces will remain operational during Tihar holidays. The move is aimed at meeting the increased fuel demand typically seen during festivals. The corporation said depots will operate on a fixed schedule to ensure uninterrupted supply.
Over 7,400 tourists visit Manang in early autumn season
Tourist activity in Manang has picked up following the end of the monsoon, with clear skies welcoming the start of the peak travel season. According to the Annapurna Conservation Area Project (ACAP), more than 7,461 international tourists visited the region during the first 1.5 months of autumn. ACAP’s Bhupendra Gurung noted that the improved weather signals the beginning of a busy season for the Himalayan destination.
Marigold garlands from Dhangadhi exported to UK for Tihar
In a first, marigold garlands grown in Bangara, Dhangadhi Sub-Metropolitan City–9, have been exported to the United Kingdom. Floriculturist Roshan Saud shared that 300 garlands were shipped for Tihar celebrations at the request of the Nepali diaspora. Saud added that more orders have been placed this year, marking a milestone for his flower business.
Highline practice conducted above Kali Gandaki gorge
A highline practice session was recently held over the Kali Gandaki Gorge, connecting Kusma (Parbat) and Balewa (Baglung). The event was led by Shankar Koirala from Hile, Dhankuta—currently residing in Germany—as part of his “Dream Project.” With 15 years of highlining experience across Europe, Koirala performed the activity for the first time at “The Cliff,” Nepal’s popular adventure sports site.
Summit Air reports 13 percent drop in revenue for 2025
Summit Air’s annual revenue declined by 13% in 2025, falling from Rs 1.03 billion in 2024 to Rs 899 million. This continues a downward trend, as the company had earned Rs 1.11 billion in 2023 and Rs 793 million in 2022.
Golyan Group signs scholarship MoU with families of Gen Z martyrs
The Golyan Group signed a memorandum of understanding (MoU) with the families of individuals who lost their lives during the Gen Z movement, launching an educational scholarship initiative. Initially, the program will fund education up to Grade 12 for 11 children, along with support for talent development. The MoU follows the group’s October 10 announcement of education and healthcare support programs.
Global IME Bank receives Best Bank Award 2025
Global IME Bank has been awarded the Best Bank Award 2025 by Global Finance Magazine. The honor was presented during a ceremony in the United States to Bank Chairman Chandra Prasad Dhakal and CEO Surendra Raj Regmi. The award recognizes the bank’s achievements in financial credibility, resource mobilization, service delivery, customer engagement, and credit performance.
Yango Ride offers double bonuses for partner drivers during Tihar
Yango Ride has announced a special campaign offering double daily bonuses to its partner drivers during the Tihar festival. Car drivers can earn up to Rs 6,200 per day, while bike drivers can receive up to Rs 4,100, provided they meet their regular daily targets. The campaign runs for one week with no extra conditions.
Cost of Summit Hotel apartment project rises to nearly Rs 12 billion
The total estimated cost of the apartment and hotel project by Summit Hotel Pvt. Ltd. in Kupandol, Lalitpur has surged by nearly 68%, reaching Rs 11.68 billion. Originally projected at Rs 6.94 billion, the cost increase is attributed to rising expenses during the construction phase.
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