KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Amid a challenging economic landscape shaped by the destructive Gen-Z protests, Nepal’s private sector faces an estimated Rs 80 billion in losses, with insurance claims already exceeding Rs 22.25 billion. In response, the government is rolling out relief packages, planning reconstruction funds, and relocating damaged ministries, while also taking steps to control spending by halting politically influenced small projects.
Despite this unrest, certain sectors are showing resilience: tourist inflows are rising at Annapurna Base Camp, cross-border trade through Birgunj has surged by 20%, and the newly operational Korala border is processing large volumes of EVs and cargo.
At the same time, gold prices have reached a record high, reflecting global uncertainty, while high Dashain demand is inflating domestic airfare. Meanwhile, regulatory reforms like direct bribery reporting channels and ongoing digital services such as RTGS during holidays suggest the state’s intent to maintain functionality amid crisis.
Gold price hits all time high in Nepal
Gold prices in Nepal reached a record high of Rs 217,800 per tola, up Rs 700 on Monday from the previous day. Silver was traded at Rs 2,650 per tola. Internationally, gold is around USD 3,691 per ounce.
Private sector estimates Rs 80 billion loss from Gen Z movement
The Gen-Z movement has caused widespread damage—vandalism, arson, and looting—leading to estimated losses of around Rs 80 billion in Nepal’s private sector. In response, the government has unveiled an immediate relief package. On Sunday, a private-sector delegation led by Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), met with Prime Minister Sushila Karki to outline the scale of the damage.
Finance Ministry introduces direct email channel to report bribery or misconduct
Regulatory employees under the Finance Ministry can now report misconduct or bribery directly to the Finance Minister via email at [email protected] or [email protected]. Complaints may include failure to perform duties, abuse of authority, or unethical behavior.
Insurance claims from Gen-Z protest damages reach Rs 22.25 billion
Insurance claims for non-life damage caused during the Gen-Z protests have now reached Rs 22.25 billion. Data published by the Nepal Insurance Authority up to September 21 show 2,478 claims filed. Claims had been at Rs 20.70 billion by September 15, rising to the current figure.
RTGS payment system operated on Ghatasthapana holiday
Although Ghatasthapana is a public holiday, Nepal Rastra Bank kept the Real Time Gross Settlement (RTGS) system open from 10 a.m. to 4 p.m. for high value electronic transactions. The central bank had earlier announced it would maintain operations on this festive day.
Airlines sell tickets at maximum fares during Dashain rush
Nepalese airlines are charging top rates allowed by the Civil Aviation Authority during the Dashain festival, citing heavy one way demand out of Kathmandu starting Ghatasthapana. Return flights remain underbooked until after the festival holiday.
Automobile market dulls during peak festive season due to Gen Z movement
This festival season, car dealerships across Nepal have seen traffic drop sharply. The Gen-Z movement has cast a shadow over what is usually a busy time for sales, leaving many showrooms empty and dealers struggling.
Nearly 190,000 people leave Kathmandu Valley in five days
Between 17 and 21 September, 189,218 passengers departed Kathmandu Valley via 29,360 public vehicles. Many of these are traveling home for Dashain after spending time in the city for work, study, or trade, according to traffic police.
Route permits for public transport opened from Monday
Starting Monday, route permits have been opened for passenger public transport to ensure smoother movement during the festivals. According to Bijay Bahadur Swar, president of the National Federation of Nepal Transport Entrepreneurs, this will allow vehicles to go directly to their destinations without detours.
Government to launch relief programs for businesses affected by Gen Z movement
The Cabinet has approved relief measures to help businesses hit by disruptions during the Gen Z movement. Government, Nepal Rastra Bank, and insurance companies will roll out support programs, including exemptions or concessions on customs duties for materials needed to rebuild damaged structures.
Nepal Telecom announces festive offers
Nepal Telecom has launched its “Dashain-Tihar-Chhath Offer 2025/26,” featuring discounted voice and data packages. Customers installing new FTTH (fiber-to-the-home) service between 22 September and 17 October will also have installation fees (Rs 500) waived.
Government offices relocated after Gen Z protest damage at Singha Durbar
Several ministries and departments in the central secretariat of Singha Durbar, including the Prime Minister and Council of Ministers’ Office, the Ministry of Home Affairs, and the Ministry of Education, Science and Technology, were gutted by arson and vandalism during the Gen Z protests on September 8-9. Due to extensive damage, these offices have now been shifted to new premises. Instead of buying all new furnishings, the relocated offices are being equipped with reused materials to save costs and for practical reasons.
Separate fund to be established for reconstruction of damaged structures
A distinct fund is being set up to rebuild public structures damaged during the September 8 9 protests. Urban Development Minister Kulman Ghising made creating this fund one of his first priorities after assuming office, initiating a plan for “crowd-funding” for reconstruction. Meanwhile, the Finance Ministry is drafting guidelines to present to the Cabinet. According to spokesperson Tanka Prasad Pandey, these guidelines will cover reconstruction efforts, economic revival, and relief for those affected.
Money found in homes of Deuba and Khadka under investigation
The Department of Money Laundering Investigation has launched a probe into large amounts of money reportedly found in the homes of Congress President Sher Bahadur Deuba and former Energy Minister Deepak Khadka. Videos circulated after their residences were damaged during the protests appear to show cash found among the debris.
Damaged vehicles and machinery from Gen-Z protests to be auctioned as scrap
Vehicles and machinery damaged during the Gen-Z protests will be removed from government records and sold as scrap. Finance Minister Rameshore Khanal announced this decision at a recent Cabinet meeting. The Ministry of Urban Development will handle central government assets, while district‐level committees led by Chief District Officers will manage local items. A committee will also assess the full scope of the damage.
Small projects under Rs 30 million halted to cut expenditure
Projects with budgets under Rs 30 million have been stopped, especially those not in the project bank or initiated under political influence. According to Finance Minister Khanal, this measure could save around Rs 120 billion in current expenditures.
Rs 146.64 billion worth of imports via Birgunj in two months
Imports through the Birgunj border checkpoint have surged. In the first two months of fiscal year 2025/26, goods worth Rs 146.64 billion entered the country via Birgunj, up 20% from Rs 122.32 billion during the same period last year.
Tourist flow rises at Annapurna Base Camp in autumn
With autumn’s arrival, trekking traffic has increased at Annapurna Base Camp in Annapurna Rural Municipality-4, Myagdi. Using the Maurice Herzog Trail, tourists are visiting the base camp in steady numbers; ward member Shyam Purja says 15-40 trekkers arrive daily, a number expected to grow during Dashain and Tihar.
Large scale electric vehicles and cargo cross Korala border for the first time
Since its full opening on September 15, the Korala border post has cleared 209 electric vehicles and 107 cargo trucks in the first five days. Mustang Customs Office collected Rs 344.75 million in revenue from these operations.
Comment