KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic and developmental landscape presents a mixed picture of resilience, stagnation, and sector-specific momentum. Despite ongoing liquidity constraints and reduced interest income, the banking and financial sector posted over Rs 9 billion in profits during the first month of the fiscal year, indicating underlying stability in core financial institutions.
This financial resilience contrasts with the government’s continued struggle to initiate new development projects under fiscal federalism, where infrastructure investments remain largely limited to legacy projects and administrative buildings, with key sectors like roads, health, and water systems seeing minimal advancement.
However, targeted public investment—such as the Rs 12.5 billion hospital expansion plan—signals efforts to address critical service gaps. On the private sector front, companies like TG Auto Group are driving economic activity, with Royal Enfield’s official distributor reporting Rs 3.74 billion in turnover and significant profitability within just one year of operation.
Meanwhile, other developments offer both relief and concern: a drop in Himalayan goat prices is easing the festive burden for consumers, but the medical licensing exam’s poor results raise questions about educational quality amid the rapid expansion of private colleges. Additionally, while foreign tourist arrivals in Mustang have slightly improved, recent Gen-Z protests and adverse weather conditions have dampened the peak travel season.
Hotel damages and job losses from the protests, along with the NEA’s attempts to recover industrial dues, further underscore the country’s complex balancing act between short-term crisis response and long-term development planning.
Nepali banks report over Rs 9 billion profit in first month despite liquidity challenges
Nepal’s banking and financial sector posted over Rs 9 billion in profits during the first month of the new fiscal year, according to data from Nepal Rastra Bank (NRB). Although this figure marks a decline compared to the same period last year, the sector remained profitable despite ongoing liquidity pressures, reduced interest income, and rising operational costs. Commercial banks earned Rs 838 million, development banks Rs 82 million, and finance companies Rs 18 million. Total non-banking assets surpassed Rs 5 billion. Top earners included Global IME Bank with Rs 78.45 million in profit, Nabil Bank with Rs 71.64 million, and Nepal Investment Mega Bank with Rs 63.42 million.
Govt to invest over Rs 12.5 billion to expand three key hospitals
The government plans to inject more than Rs 12.5 billion into expanding three major hospitals: Patan Hospital in Lalitpur, BP Koirala Memorial Cancer Hospital in Chitwan, and Binaytara Cancer Hospital in Janakpur. Environmental Impact Assessment (EIA) reports shared for public feedback detail that Patan Hospital will double its bed capacity to 1,200 with an estimated cost of Rs 10.7 billion. Binaytara Cancer Hospital will grow from 25 to 200 beds at a cost of Rs 1.45 billion. Meanwhile, BP Koirala Cancer Hospital will see Rs 3.2 billion in upgrades, including the addition of PET-CT, Cyclotron, and bone marrow transplant facilities.
Nepal struggles to initiate new development projects under fiscal federalism
Since adopting fiscal federalism, Nepal’s central government has struggled to kick off new large-scale development projects. Infrastructure efforts largely stalled during the COVID-19 pandemic, and for the past eight years, authorities have mostly continued older initiatives from the post-conflict and post-2008 periods. While investments in administrative buildings increased notably after 2017, key sectors like roads, healthcare, and water infrastructure have seen limited progress. Officials point to rising public debt, declining revenues, and heavy reliance on foreign aid—such as the MCC-funded power line—as major obstacles. Without launching new flagship projects, Nepal’s overall development momentum risks slowing down significantly in the long term.
Banks to keep select branches open during Dashain for essential services
Despite the closure of all government offices during the Dashain holidays, several banks will keep designated branches open to ensure continued access to essential financial services. Customers will be able to deposit and withdraw funds, open new accounts, and use remittance services. Global IME Bank and Kumari Bank will each open 50 branches, Laxmi Sunrise will operate 52, Sanima 63, and Prime Bank 48. Other banks such as Himalayan, Nabil, Prabhu, NIC Asia, and NMB will also open between 18 and 29 branches. State-run banks like Rastriya Banijya, Nepal Bank, and Agricultural Development Bank will also offer limited services. Operating hours will vary, generally between 10 a.m. and 3 p.m.
Medical licensing exam reveals poor pass rates amid private college expansion
Nepal’s most recent medical licensing examination has exposed alarmingly low pass rates, despite the government’s decision to expand student quotas in private medical institutions. Of the 1,077 MBBS and BDS candidates who sat for the exam, only 421 passed—just 39.09%. The Bachelor in Dental Surgery (BDS) field saw the poorest results, with over 81% of examinees failing—only 35 out of 183 passed. Among MBBS candidates, the pass rate stood at 42%, with 386 out of 894 clearing the test. Critics blame poor academic standards in many private colleges. The results have reignited calls, led by activist Dr. Govinda KC, to impose stricter limits on new colleges and admissions.
Nepal Rastra Bank raises digital wallet deposit limits for festive period
To accommodate increased digital transactions during upcoming festivals like Dashain, Tihar, and Chhath, Nepal Rastra Bank (NRB) has temporarily raised the limit on how frequently users can deposit money into digital wallets. The daily deposit frequency has increased from 10 to 40 times. The adjustment will be effective from October 13 to 21 and again from October 20 to 27 (Ashoj 13–21 and Kartik 3–10 in the Nepali calendar). NRB has also directed payment service providers to report transaction volumes and amounts during this period.
Autumn climbing season begins on Mt. Dhaulagiri, world’s seventh-highest mountain
Climbers have officially kicked off the autumn climbing season on Mt. Dhaulagiri (8,167 meters), the world’s seventh-highest peak, situated in Myagdi district’s Dhaulagiri Rural Municipality-4. On Sunday, a team from Spain, China, and France, accompanied by three Nepali Sherpas, successfully reached the summit, according to Seven Summit Treks. The route had been fixed by a rope team two days earlier. Nepal’s Department of Tourism reports that 24 climbers—17 men and 7 women from three expeditions—have obtained climbing permits for the season, generating Rs 5.07 million in fees. Dhaulagiri is renowned for its harsh weather and high-risk conditions; it was first summited by an Austrian team on May 13, 1960.
Gen-Z movement leads to hotel damage and thousands of job losses
Recent actions linked to the Gen-Z movement have resulted in damage to approximately 30 hotels across Nepal, leading to job losses for an estimated 2,200 to 2,500 people, according to a preliminary assessment by the Nepal Tourism Board (NTB). Hotels in Kathmandu and other areas suffered varying degrees of damage, with luxury properties like Hilton, Hyatt Regency, and Babar Mahal’s Barnabas being among the worst affected. NTB CEO Deepak Raj Joshi said the board is working with private sector partners to evaluate total losses and repair Nepal’s tourism reputation. The Hilton faces additional financial risk, as it reportedly owes over Rs 5 billion in bank loans.
NEA extends payment deadline for dedicated and trunk line dues to October 19
The Nepal Electricity Authority (NEA) has extended the deadline for businesses to pay outstanding dues on dedicated and trunk power lines to October 19. The previous deadline, incorrectly listed as November 3, was revised following a recent board meeting chaired by Energy Minister Kulman Ghising. The NEA has introduced a 28-installment payment plan to help industries clear Rs 8.25 billion in dues while reducing financial pressure. The extension aims to ensure better compliance and provide businesses with greater clarity and flexibility.
Mustang records 5% increase in foreign tourists, but protests and weather impact peak season
Foreign tourist arrivals in Mustang rose by 5.32% in 2025, with 108,686 visitors recorded between January and September 28, up from 102,894 during the same period in 2024, according to the Annapurna Conservation Area Project (ACAP). However, to match last year’s total of 135,719, the region still needs over 27,000 more arrivals. ACAP’s Jomsom office head, Rajesh Gupta, attributed the slowdown in peak-season tourism to unfavorable weather and the effects of recent Gen Z protests. Mustang remains a key destination known for its dramatic landscapes and cultural attractions such as Lo Manthang Palace, Muktinath Temple, Dhumba Lake, Chhoser Cave, and ancient monasteries.
Himalayan goat prices drop before Dashain, offering relief to consumers
The cost of Himalayan goats (bheda-chyangra), a Dashain staple sourced from regions like Mustang, has declined this year, making the festive season more affordable for many Nepali families. Traders report that live goats are selling for around Rs 35,000, compared to Rs 40,000 last year, while per-kilogram prices have decreased by Rs 50 to Rs 100. Over 14,600 goats—worth more than Rs 3.5 billion—have been sold after passing health inspections. Major markets include Kathmandu, Pokhara, Chitwan, and Butwal. Despite ongoing challenges such as fodder shortages and snow leopard attacks, goat farming remains a vital source of income for highland communities in Mustang and neighboring districts.
Royal Enfield distributor TG Auto nears Rs 4 billion in annual turnover in Nepal
TG Auto Group, the authorized manufacturer and distributor of Royal Enfield motorcycles in Nepal, recorded an impressive annual turnover of Rs 3.74 billion in fiscal year 2024/25. A subsidiary of Triveni Group, TG Auto was established in 2022 and launched operations in May 2023. The company has rapidly grown its footprint, supported by a production plant in Bara spanning 100,000 square feet, with an annual capacity of 20,000 motorcycles. In the past year, TG Auto sold 11,883 units, earning Rs 1.72 billion in net profit and Rs 1.97 billion in cash profit. Royal Enfield continues to dominate Nepal’s premium motorcycle segment.
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