KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is showing mixed signals, with the stock market gaining strong momentum—NEPSE rising 50.44 points on high turnover—even as gold prices fall and banks struggle with excess liquidity that has pushed institutional deposit rates to historic lows.
Government revenue performance is uneven: Birgunj and Nepalgunj customs offices reported rising trade volumes but missed revenue targets due to Gen Z protests and festival-related disruptions, while exports surged by over 77 percent—driven mainly by soybean oil—yet the trade deficit still widened. Public funds such as the Social Security Fund and the Reconstruction Fund expanded through higher contributions and donations, whereas local governments like Ghorahi showed slow capital spending.
Sectoral activities remained varied: sugarcane farmers demanded higher minimum prices amid overdue subsidies; Karnali cooperatives remained stable unlike those in other provinces; the energy ministry defended profitable cross-border power deals; and tourism received a boost from rising air arrivals even as programs like Koshi Tourism Year stalled.
Meanwhile, regulatory tightening led to fines for substandard industries, and legal disputes emerged in the casino sector, reflecting broader governance and market stresses across the economy.
NEPSE index climbs 50.44 points; turnover hits Rs 7 billion
The Nepal Stock Exchange (NEPSE) index rose by 50.44 points on Monday, closing at 2,650.66. Market turnover also saw a notable jump, reaching Rs 7.3 billion compared to Sunday’s Rs 6.28 billion. Prices increased for 215 listed companies, while 37 saw declines. The life insurance subgroup posted the strongest gain at 4.94 percent. Shares of five companies—including Jhapa Energy and Sagar Distillery—hit the 10 percent upper circuit.
Gold price drops by Rs 1,900 in Nepal on Monday
Gold prices in Nepal fell sharply on Monday, with the Federation of Nepal Gold and Silver Dealers’ Association reporting a decline of Rs 1,900 per tola. Gold was traded at Rs 242,700 per tola, down from Sunday’s rate of Rs 244,600. Silver prices also dipped, decreasing by Rs 20 per tola to Rs 3,115.
Banks turn away institutional deposits amid surplus liquidity
Due to continued excess liquidity—exceeding Rs 1.12 trillion in loanable funds—banks have begun effectively refusing institutional deposits, offering interest rates as low as 2.75 percent. Large institutions such as the Social Security Fund (SSF) and the Citizens’ Investment Trust are finding it difficult to place their funds, often receiving only half the bids they seek. This situation worsened after the September 8 and 9 protests halted loan expansion.
Social Security Fund collections approach Rs 100 billion
Contributions to the Social Security Fund (SSF) have risen to Rs 95.441 billion, nearing the Rs 100 billion mark. The fund currently lists 22,309 employers and 2.6 million contributors. Claim payments have totaled Rs 17.648 billion so far, with the old-age (retirement) scheme accounting for Rs 14.617 billion—the highest among all schemes.
Imports up 18.71 percent as exports soar 77.51 percent
Data from the Customs Department shows that imports grew by 18.71 percent and exports expanded by 77.51 percent during the first four months of the current fiscal year compared to the same period last year. Total trade reached Rs 702.947 billion. Despite strong export growth, the trade deficit widened to Rs 515.95 billion. Soybean oil remained the top export at Rs 38.43 billion, while diesel was the largest import at Rs 31.891 billion.
Soybean oil boosts exports by 77.51 percent in four months
Nepal’s exports jumped by 77.51 percent in the first four months of fiscal year 2025/26, reaching Rs 93.49 billion, according to the Customs Department. Soybean oil led the export list at Rs 38.43 billion. Imports increased by 18.71 percent to Rs 609.451 billion, bringing total trade to Rs 715.95 billion. Despite rising exports, the trade deficit climbed by 11.99 percent to Rs 515.96 billion. Nepal posted a deficit of Rs 261.42 billion with India and Rs 132.28 billion with China.
Reconstruction fund reaches Rs 93 million after new donations
The Physical Infrastructure Reconstruction Fund has grown to Rs 93 million following new contributions. Life Insurance Corporation (Nepal) Limited donated Rs 10.1 million, while employees from the F1 Soft Group—including eSewa Limited and PhonePe Payment Service Limited—contributed Rs 7.5 million. Finance Minister Rameshore Prasad Khanal received the donations from LIC CEO Pranay Kumar and F1 Soft Group Chairman Siddhanta Thakuri.
Sugarcane farmers push for Rs 750 minimum support price
Sugarcane growers have called on the government to set a minimum support price of Rs 750 per quintal for the new season, arguing that production costs have risen sharply. At a discussion on Sunday, Umesh Chandra Yadav, spokesperson for the Federation of Sugarcane Producers Association, demanded timely payments—within 15 days of sale. Farmers are also still awaiting Rs 750 million in unpaid subsidies from last year. They expect the government to announce a fair support price by December 1.
Minister Ghising says power deal generated Rs 1.2 billion profit
Energy Minister Kulman Ghising told the National Assembly on Monday that the government earned a profit of Rs 1.2 billion from the electricity purchase agreement with India’s PTC. He dismissed claims of losses, stating that buying power at Indian Rs 6.95 per unit was more beneficial than the earlier proposed rate of Rs 8.10. Ghising added that an immediate agreement was crucial to avert nationwide load-shedding.
Karnali cooperatives remain stable, safeguarding Rs 8 billion in savings
Cooperatives in Karnali Province are reported to be free from crisis, securing more than Rs 8.194 billion in member savings. Senior Section Officer Bhim Bahadur Karki from the Cooperative Registrar’s Office said that none of the province’s 311 cooperatives have been flagged as troubled, nor have any operators absconded—unlike in other provinces. Total loan investments stand at Rs 11.51 billion. The office emphasized maintaining good governance and financial discipline to uphold public confidence.
Birgunj Customs collects Rs 75.58 billion, falls short of target
Birgunj Customs Office collected Rs 75.58 billion in the first four months of the current fiscal year—85 percent of its Rs 89.24 billion target. Revenue dropped sharply in the most recent month, with only Rs 17.33 billion collected against the monthly target of Rs 23.63 billion. Chief Customs Officer Bishnu Prasad Gyawali cited disruptions from the Gen Z protest, Chhath festival, and floods as the main reasons for the shortfall.
Koshi Tourism Year 2025 stalls despite Rs 100 million budget
Koshi Province’s Tourism Year 2025 has made no progress in the four months since its launch on April 12 in Tinjure-Milke, Tehrathum. Although the program was allocated Rs 100 million, no activities have taken place. Krishna Kumar Neupane, Under Secretary at the Ministry of Tourism, Forests, and Environment, attributed the delay to procedural complications requiring multiple internal committee approvals. Co-coordinator Bhavesh Kumar Shrestha added that the September Gen Z protest further disrupted planning. A revised working procedure has now been submitted to the Chief Minister’s Office for approval.
Ghorahi sub-metropolitan spends 14.24 percent of annual budget
Ghorahi Sub-metropolitan City utilized 14.24 percent of its Rs 2.292 billion budget during the first quarter of fiscal year 2025/26, spending a total of Rs 326.4 million. Current expenditure reached 19.93 percent, while capital expenditure lagged significantly at just 6.83 percent (Rs 68 million). The city collected Rs 118.7 million in internal revenue, achieving 24.71 percent of its target.
Nepalgunj trade totals Rs 24.57 billion in four months
Trade through the Nepalgunj Customs checkpoint topped Rs 24.57 billion during the first four months of fiscal year 2025/26—an increase of over Rs 2 billion from the same period last year. According to Chief Officer Janardan Paudel, imports amounted to Rs 23.80 billion, while exports reached Rs 772.8 million. Despite the rise in trade volume, revenue collection dropped by Rs 50 million to Rs 6.01 billion, partly due to disruptions caused by the September Gen Z protest.
Rupandehi industries fined Rs 205,000 each for substandard production
The Department of Commerce, Supply, and Consumer Protection imposed fines of Rs 205,000 each on Arghakhanchi Cement Company and Trirupati Food Processing Industries in Rupandehi after inspections revealed they were producing items that failed to meet government standards, violating the Consumer Protection Act, 2018, and its rules. Meanwhile, the department has intensified inspections of water-processing companies in the Kathmandu Valley amid quality concerns. Tripura Beverage and Badi Khel Drinking Water Industries in Lalitpur have been asked to submit documents within three days for operating without renewing their registrations.
Thai AirAsia flight arrives in Bhairahawa with 161 passengers
A Thai AirAsia aircraft from Bangkok landed at Gautam Buddha International Airport on Sunday carrying 161 passengers. Airport spokesperson Binod Singh Rawat reported that the flight was nearly full, with the majority of travelers being Buddhist pilgrims. The surge in arrivals is considered a positive sign for boosting tourism in the Lumbini region. The airline, which began regular service on October 26, also recorded 145 passengers departing for Bangkok the same day.
Feasibility study starts for lake project in Kalanjar–Jaljala area
A feasibility study and Detailed Project Report (DPR) have commenced for the development of a lake in the Kalanjar Hampal Jaljala area—a natural and religious site situated at an altitude of 3,200 meters. The Irrigation and Water Resource Management Project Office in Pokhara is leading the initiative and has allocated Rs 4 million for the study this fiscal year. Vice Chair Deepak Acharya said the aim is to transform the region—bordering Myagdi, Parbat, and Kaski—into a major tourist attraction.
Nepal secures USD 407.1 million in climate funding, far below requirement
Nepal has received USD 407.1 million from various international climate funds for 49 ongoing projects aimed at climate mitigation and adaptation. The total includes USD 148.3 million from the Green Climate Fund and USD 153 million from the Climate Investment Fund. However, according to the Finance Ministry, Nepal needs USD 121.12 billion to address climate change impacts—meaning current funding amounts to less than one percent of the estimated requirement.
‘Paran’ becomes highest-grossing Nepali film of 2025 with Rs 141.6 million
The film Paran, featuring veteran actor Neer Shah, has become the top-grossing Nepali movie of 2025, earning Rs 141.6 million nationwide as of last Saturday. The movie has sold 499,168 tickets across the country, showcasing strong audience response. Directed by Deepak Acharya Kaku and released on October 31, the film’s impressive performance highlights both Neer Shah’s enduring popularity and the growing market potential for Nepali cinema.
Investor seeks return of Rs 34 million in casino ownership dispute
Deepak Pandey of Siddharthanagar-10 is demanding repayment of Rs 34 million invested in the upcoming Winstar Casino in Rupandehi. Pandey alleges that operator Prapti Pokharel promised him a 25 percent share but failed to deliver and is now trying to secure a new license. He filed a case at Patan High Court on October 26. Meanwhile, Hotel Bodhi Redson has issued a seven-day notice to the casino for failing to pay rent and deposits.
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