KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflected mixed signals of reform, strain, and resilience. The NEPSE index dipped slightly by 5.17 points despite gains in the hydropower, hotel, and trade sectors, while gold prices fell amid global fluctuations. The Finance Ministry unveiled a sweeping reform roadmap to boost efficiency in public enterprises, complemented by the Cabinet’s decision to convert all state-owned institutions into limited liability companies under a unified legal framework.
Meanwhile, Nepal Rastra Bank absorbed Rs 40 billion in liquidity to manage monetary pressure. Infrastructure bottlenecks persisted as the government moved to terminate 209 stalled construction contracts, while industrial disputes over Rs 5.64 billion in trunkline dues deepened.
The insurance sector paid nearly Rs 3 billion for damages from the Gen Z protests, highlighting fiscal strain from recent unrest. Operational disruptions continued at key departments, with foreign employment services halted by technical glitches and transport license printing still delayed after fire damage.
On the external front, imports via Birgunj rose sharply to Rs 218 billion, and cardamom exports surged 36 percent, signaling trade vitality. In markets, egg prices climbed again, while Soaltee Hotel announced a 31.57 percent dividend and completed IPO allotment for Srinagar Agritech. Early snowfall revived hopes in agriculture and tourism, even as investors planned protests demanding stock market reforms — a sign of simmering pressure for deeper economic transformation.
NEPSE dips 5.17 points; hydropower stocks edge higher
The Nepal Stock Exchange (NEPSE) index declined by 5.17 points today, closing at 2,566.16. According to NEPSE, a total of 321 companies traded 11,528,284 shares in 50,487 transactions, with a total turnover of Rs 5.45 billion. Among sectoral indices, Hotel and Tourism gained 2.15%, Hydropower rose 0.01%, Microfinance increased 0.13%, and Trade advanced 2%. Other sectors, however, ended lower: Banking (-0.34%), Development Banks (-0.91%), Finance (-0.77%), Investment (-0.17%), Life Insurance (-0.64%), Manufacturing and Processing (-0.28%), Mutual Funds (-0.08%), Non-Life Insurance (-0.19%), and Others (-1.20%).
Gold price drops by Rs 700 per tola
Gold prices fell by Rs 700 per tola on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Associations. Gold was traded at Rs 236,300 per tola, down from Rs 237,000 the previous day. Earlier, on October 17, the price had reached a record high of Rs 258,000 per tola. In the international market, gold was trading at US$3,958 per ounce, while silver prices increased slightly.
Finance Ministry unveils roadmap for public institution reforms
The Ministry of Finance has released a roadmap identifying key challenges in improving the competitiveness, efficiency, and effectiveness of public institutions. The Management and Governance Policy for Public Institutions, 2025, emphasizes fiscal discipline, returns on government investment, structural reforms, cost reductions, stronger boards of directors, and the creation of professional management systems.
Govt to convert all public institutions into companies
The government has endorsed a plan to convert all public institutions into limited liability companies governed under a unified legal framework. The Public Institutions Management and Governance Policy, 2025, approved by the Cabinet on October 13, outlines a strategy to gradually bring state-owned enterprises under one company law, providing the legal foundation for this reform.
Central bank absorbs Rs 40 billion in deposits
Nepal Rastra Bank has mopped up Rs 40 billion through a 175-day deposit auction. The auction, conducted online until 3 p.m., will determine interest rates via competitive bidding. The principal and interest will be repaid on April 22 next year, the central bank said.
209 stalled construction contracts face termination
The government has initiated the process to cancel 209 construction contracts related to roads, irrigation, and bridges due to poor progress despite repeated deadline extensions. Authorities have begun issuing 15-day public notices asking contractors to justify why their contracts should not be terminated. Two contracts have already been canceled. The Kathmandu Road Division is ending 57 contracts, followed by Janakpur (21), Tumlingtar (17), Doti (15), and Ilam (12).
Industries owe Rs 5.64 billion in trunkline dues
Industries using dedicated trunklines owe Rs 5.64 billion, according to the Nepal Electricity Authority (NEA). The amount includes penalties and unpaid “premium-only” bills issued in March 2019. Industrialists argue they were already paying regular tariffs and have refused to pay the additional amount without proper clarification from the NEA.
Insurers pay nearly Rs 3 billion for Gen Z protest damages
Insurance companies have disbursed about Rs 2.79 billion in advance compensation for damages from the Gen Z movement. Following government instructions, the Insurance Board had directed companies to release up to 50 percent of total claims as advance payment. The protests on September 8–9 caused widespread arson and vandalism, prompting the government to order quick payouts after loss assessments.
Technical glitch halts foreign employment services
Services at the Department of Foreign Employment have been disrupted due to technical issues in its website and the Foreign Employment Management Information System (FEMIS). The department said the problem arose from a surge in online applications following the Dashain holidays. A technical team has been working since Tuesday morning to restore services.
Transport office services to resume by Sunday, license printing delayed
The Department of Transport Management plans to resume operations by Sunday after being forced to close due to a fire during the Gen Z movement. However, the printing of driver’s licenses — awaited by around 2.5 million applicants — remains uncertain. The September 9 fire destroyed servers and halted all services at the department.
Investors plan protest demanding stock market reforms
Stock market investors are preparing to demonstrate outside the Securities Board of Nepal to demand reforms, expansion, and modernization of the capital market. The campaign, titled “Hind Kathmandu Struggle Campaign,” is being coordinated by investor Dipendra Agrawal. Under the movement, investors have drafted a 28-point memorandum to be submitted to the board on October 31.
Fair-price shops extended until November 16
The Food Management and Trading Company Limited has extended its festive fair-price shop program until November 16. Initially set from September 15 to October 27, the program was extended by 18 days as about one-third (Rs 6.6 million) of the government subsidy remains unpaid.
Early snowfall brings optimism for farmers and tourism sector
Early snowfall in the Himalayan region has raised hopes among farmers and tourism entrepreneurs. The snow is expected to draw adventure tourists and revitalize tourism activities, while farmers anticipate that softened soil in high-altitude areas will boost crop yields. In Mustang, which had not experienced significant snowfall for the past three years, timely snow is expected to positively impact agriculture, tourism, and biodiversity, experts said.
Nepal Airlines nominates Dahal to Soaltee Hotel board
Nepal Airlines Corporation, an institutional shareholder of Soaltee Hotel Limited, has appointed Tankanidhi Dahal as its representative on the hotel’s board of directors, effective October 28. Dahal, who serves as Director of the Marketing Department, replaces Executive Chairman Yuvraj Adhikari, whose term has expired.
Imports worth Rs 218 billion enter Nepal via Birgunj in three months
Goods worth Rs 218.10 billion were imported through the Birgunj Customs Office in the first three months of the current fiscal year — up Rs 34.23 billion compared to the same period last year. Chief Customs Administrator Bishnu Prasad Gyawali said the checkpoint generated Rs 58.23 billion in customs revenue during the period. Last year, imports valued at Rs 183.87 billion were recorded over the same timeframe.
Egg prices increase again
The price of eggs has risen once more, with the Nepal Layers Poultry Association raising rates effective Monday. Prices have gone up by Rs 50 per crate compared to the previous day, setting the new rate at Rs 500 per crate for large eggs and Rs 450 for medium-sized eggs, based on Chitwan market rates.
Lumbini chief minister urges federal mediation in trunkline dispute
The Lumbini provincial government has urged the federal government to help mediate the ongoing dispute over dedicated trunklines. Chief Minister Chet Narayan Acharya called on the center to facilitate dialogue between the Nepal Electricity Authority (NEA) and industrialists to find a long-term solution. Meanwhile, Federal Minister and former NEA Managing Director Kulman Ghising has been accused of eroding industrial confidence by cutting power lines instead of resolving the issue.
Cardamom exports rise by 36 percent
Cardamom exports surged 36 percent in the first quarter of fiscal year 2025/26 (mid-July to mid-October), reaching Rs 1.67 billion in value. According to the Department of Customs, Nepal exported 1,072.20 metric tons of cardamom during the period, mainly to India. In the same period last year, exports totaled 783.75 metric tons worth Rs 1.26 billion.
Soaltee Hotel declares 31.57 percent dividend
Soaltee Hotel Limited has announced a 31.5789 percent dividend for shareholders from its accumulated profits up to the last fiscal year. Of this, 16.5789 percent will be distributed as cash dividend (including tax), while 15 percent will be issued as bonus shares. Dividends will be distributed based on a share face value of Rs 10.
IPO allotment completed for Srinagar Agritech Company
The initial public offering (IPO) of Srinagar Agritech Company has been completed. The allotment took place Wednesday morning at an official event organized by the issue manager, Nabil Investment Banking. The company had issued 2,510,493 shares for public subscription between October 12 and 15, which have now been allotted on a proportional basis.
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