KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflects a mix of growth momentum and structural challenges. The NEPSE index surged 62.29 points to 2571 amid strong investor confidence and rising turnover, while gold prices dipped sharply by Rs 2,900 per tola, indicating shifting investment sentiment.
On the external front, Nepal exported 1,140 MW of electricity to India, marking progress toward its regional energy ambitions, and secured Rs 35 billion in FDI commitments, signaling continued investor interest. However, domestic constraints persist — non-performing loans stand at 4.62%, key provinces like Lumbini have spent barely 7% of capital budgets, and power supply disputes have halted major cement and industrial operations, affecting thousands of workers.
Meanwhile, rising imports of electric vehicles and consumer goods, alongside new IPOs and dividend announcements, highlight ongoing market activity despite fiscal inefficiencies and infrastructural bottlenecks.
NEPSE climbs 62.29 points to 2571
The Nepal Stock Exchange (NEPSE) index closed Tuesday with a notable rise of 62.29 points, reaching 2571. Although the market dipped briefly at opening, it remained positive throughout the session. Trading activity surged sharply, with total turnover increasing to Rs 4.57 billion from Sunday’s Rs 2.79 billion. Out of all listed companies, 236 recorded gains while only 12 saw a decline.
Gold price drops by Rs 2,900 in Nepali market
The price of gold in Nepal fell by Rs 2,900 per tola on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price declined from Rs 239,900 per tola on Monday to Rs 237,000 per tola on Tuesday. Likewise, the price of 10 grams of gold was fixed at Rs 203,190. The association also reported a drop in silver prices on the same day.
Nepal exports 1,140 MW of electricity to India
The Nepal Electricity Authority (NEA) is exporting 1,140 megawatts of electricity to India daily, including 200 megawatts diverted from industrial supply. India has permitted Nepal to export up to 1,165 megawatts, of which almost the entire quota is being utilized. The government’s energy roadmap aims to generate 28,500 megawatts by 2035, with 13,500 megawatts for domestic consumption and 15,000 megawatts earmarked for export to India and Bangladesh.
Banking sector’s non-performing loans reach 4.62 percent
Data from Nepal Rastra Bank shows that by the end of the last fiscal year, banks and financial institutions reported a non-performing loan (NPL) ratio of 4.62 percent—equivalent to Rs 258 billion out of total loans worth Rs 5.594 trillion. Unpaid interest amounted to Rs 56.08 billion, slightly up from Rs 56.03 billion in mid-April. This marginal improvement in recovery toward the fiscal year’s end has raised optimism for improved liquidity in the current year.
Rs 6.25 billion worth of electric vehicles imported in first quarter
During the first quarter of the current fiscal year, Nepal imported electric cars, jeeps, and vans valued at Rs 6.25 billion. The Department of Customs reported imports of 2,620 electric vehicles, compared to 2,516 units in the same period last year—an increase of 104 vehicles. Last year’s import value stood at Rs 6.10 billion.
Rs 35 billion in FDI commitments recorded in three months
In the first quarter of the current fiscal year 2025/26 (mid-July to mid-October), Nepal received Rs 35.13 billion in foreign direct investment (FDI) pledges. According to the Department of Industry, 311 projects were approved during this period. Between mid-September and mid-October alone, Rs 4.94 billion was committed for 54 new projects. The commitments include seven large-scale, four medium-scale, and 300 small-scale industries.
Food Management and Trading Company begins paddy procurement
The Food Management and Trading Company has started procuring paddy from farmers beginning Tuesday for the ongoing fiscal year. The company aims to purchase 190,000 quintals of paddy, with a total budget allocation of Rs 700 million. It has established 13 procurement centers in key paddy-producing areas including Mahendranagar, Dhangadhi, Rajapur, Nepalgunj, Jumla, Tulsipur, Bhairahawa, Pokhara, Birgunj, Lahan, Janakpur, Biratnagar, and Birtamod.
No foreign trade from Pokhara and Bhairahawa airports in first quarter
Pokhara and Bhairahawa international airports have yet to commence foreign trade in the first quarter of fiscal year 2025/26. Due to the lack of regular international flights, both airports remain limited to domestic operations. According to the Department of Customs, only 28 customs offices facilitated international trade during this period, with the majority of airport-based trade handled through Kathmandu. Tribhuvan International Airport Customs Office alone processed imports and exports worth Rs 63 billion by mid-October.
Banks deposit nearly Rs 800 billion in NRB in a single day
On Monday, banks deposited nearly Rs 800 billion in the Nepal Rastra Bank (NRB). Under the fixed deposit facility, 39 banks and financial institutions placed Rs 730 billion for three days at a 3% interest rate. Additionally, through the deposit collection instrument, 18 banks and financial institutions deposited Rs 90 billion for 42 days at an average interest rate of 2.72%.
Investment Board office relocated to Anamnagar
The Investment Board office, previously situated in the Parliament Building complex at New Baneshwor, has been moved to the Kathmandu Valley Development Authority building in Anamnagar. The relocation followed the complete destruction of its previous office during the protests on September 8 and 9. The Board stated that regular operations have now resumed smoothly from the new premises.
Government moves to cancel 48 road division contracts
The government has initiated the process of terminating 48 contracts under the Kathmandu Road Division. On Tuesday, the office issued a 15-day notice requiring construction companies to justify why their contracts should not be canceled. Firms must appear in person within the given period to provide clarification. Failure to respond will result in contract termination under the terms of the Public Procurement Act. The contracts cover projects related to road construction, maintenance, traffic signal repairs, and road painting.
Nepali Embassy in Japan starts certifying demand letters for skilled workers
The Nepali Embassy in Japan has begun certifying demand letters for specified skilled workers (SSW) from October 13. The embassy said the certification process adheres to existing laws, regulations, and guidelines concerning the deployment of skilled workers. Applicants can download the necessary documents from the embassy’s website and submit their applications accordingly.
Rs 210 million spent on import of packaged snacks in three months
Nepal imported over Rs 210 million worth of packaged snacks — including Kurkure, Kurmure, Lays, and Cheese Balls — in the first quarter of the current fiscal year 2025/26. According to the Department of Customs, imports of these items totaled Rs 213.45 million between mid-July and mid-October. During this period, 413,378 kilograms of Kurkure, Kurmure, and Lays were brought into the country, generating Rs 133.57 million in customs revenue.
Lumbini Province spends only 7.23 percent of capital budget in first quarter
The Lumbini Province government utilized just 7.23 percent of its capital expenditure allocation in the first three months of the fiscal year. One ministry has not spent any amount at all, while four others, including that one, spent less than 1 percent. According to the Lumbini Provincial Accounts Control Office, the Ministry of Health led in capital expenditure, using Rs 604.65 million by mid-October.
Ghorahi and Sonapur cement industries shut after NEA cuts power supply
Ghorahi and Sonapur Cement Industries in Dang have halted production after the Nepal Electricity Authority (NEA) disconnected their power supply. NEA cut electricity to Ghorahi Cement on October 21 and to Sonapur Cement on October 24. Ghorahi Cement had been producing 3,000 metric tons of clinker daily and up to 85,000 bags of cement based on market demand. The shutdown has rendered around 600 employees jobless.
Power cut halts 10 industries in Butwal–Bhairahawa corridor, 24,000 workers affected
Ten industries in the Butwal–Bhairahawa Industrial Corridor have ceased operations following NEA’s decision to cut power on Friday evening due to unpaid premium fees for dedicated and trunk lines. Around 24,000 workers have reportedly lost their jobs as a result. The dispute between NEA and 21 industries in Rupandehi over premium charges has persisted since 2020, with the industries refusing to pay, claiming there is no proof they used such power lines.
Local residents demand shares in Khimti-I hydropower project
Residents of the Khimti-I Hydropower Project area — Nepal’s first private hydropower project operating for 26 years — have demanded ownership shares. A delegation comprising Tamakoshi Rural Municipality Chair Pronpratap KC, Executive Member Suman Mijar, and Gokulganga Rural Municipality Chair Kajibahadur Khadka met with Energy and Water Resources Minister Kulman Ghising at Singha Durbar after Tihar to press their demand.
SY Panel IPO to open for general public from November 5
SY Panel’s initial public offering (IPO) will be open to the general public starting November 5. Previously, shares were distributed to Nepalis working abroad and local residents affected by the project. Prabhu Capital serves as the issue and sales manager. The company plans to issue 40 percent of its total capital — 5,232,548 shares — to the public. The firm’s total issued capital amounts to 130,813,701 shares.
ICRA Nepal calls annual general meeting
Credit rating agency ICRA Nepal has announced its 13th annual general meeting, along with a dividend proposal. The meeting is scheduled for November 3 at Hotel Aloft in Thamel, Kathmandu. The company plans to propose a cash dividend of Rs 34.06 million, equivalent to 47.311 percent of its paid-up capital.
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