KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape on Thursday reflected a mix of resilience and strain. The Nepal Stock Exchange surged by over 34 points with robust trading volume, signaling renewed investor confidence despite broader structural challenges. In contrast, the banking sector showed weak loan expansion even amid record deposit growth, underscoring limited credit demand and economic uncertainty following protests and natural disasters.
The Nepal Electricity Authority faced multiple fronts — advancing regional cooperation through new Nepal-India 400 kV transmission projects and export renewals, but also grappling with industrial shutdowns and power wastage due to tariff disputes. Meanwhile, the government moved to tighten financial discipline, penalizing errant banks and introducing new licensing rules for large property transactions, though fiscal recovery from recent unrest remained sluggish with minimal reconstruction funds raised.
On the governance side, prolonged paralysis at the Securities Board and logistical bottlenecks at the Nepal-China border further highlighted administrative inefficiencies. Yet, initiatives like Nepal Telecom’s free airport Wi-Fi and the Security Printing Center’s license printing drive hinted at incremental progress in public service delivery.
NEPSE rises by 34 points as trading exceeds Rs 7.5 billion
On the final trading day of the week, the Nepal Stock Exchange (NEPSE) index posted a gain of 34.22 points, closing at 2,600.38. Total turnover on Thursday reached Rs 7.51 billion. Out of all listed companies, share prices of 216 firms increased, while 28 declined and 5 remained unchanged. Market capitalization rose by 1.33 percent, reflecting broad-based buying momentum across the market.
Gold stable, silver prices edge higher
Gold prices remained stable on Thursday while silver prices rose slightly. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 236,300 per tola — the same as the previous day. Silver, however, increased by Rs 15 per tola.
Nepal and India sign joint venture deals for new 400 kV transmission lines
Nepal Electricity Authority (NEA) and India’s Power Grid Corporation Limited (PGCIL) signed joint venture agreements on Wednesday for two new cross-border 400 kV transmission lines — Inaruwa (Nepal)–New Purnea (India) and Dododhara (Nepal)–Bareilly (India). The agreements were signed in the presence of India’s Power Minister Manohar Lal Khattar and Nepal’s Energy Minister Kulman Ghising. These projects, along with the under-construction Gorakhpur–New Butwal line, are expected to increase the cross-border transmission capacity by about 6,000 MW.
Loan investment remains sluggish in first quarter despite strong deposit growth
Bank lending remained weak during the first quarter of the current fiscal year, even as deposits saw the highest growth in a decade. Loan expansion, however, was the second lowest in ten years. Although economic activity had been gradually recovering after a prolonged slowdown, the Gen Z protests on September 8–9 and subsequent floods and landslides in early October negatively affected the banking sector’s performance, making the quarter one of the weakest in recent years.
NRB penalizes two development banks for breaching regulations
Nepal Rastra Bank has taken disciplinary action against two development banks — Lumbini Development Bank and Saptakoshi Development Bank — for violating regulatory provisions in the first quarter of fiscal year 2025/26. The central bank stated that Lumbini Development Bank breached the NRB Act by unlawfully increasing its CEO’s benefits package.
Nearly 200 MW of electricity wasted after NEA cuts power to large industries
Energy producers have reported that nearly 200 megawatts of electricity are going to waste after the Nepal Electricity Authority (NEA) disconnected power supply to major industries amid disputes over dedicated and trunk line fees. Before the disconnections, between 400 and 500 MW were already being wasted for various reasons. The latest cuts affecting around two dozen high-consumption industries have added to the unused power capacity.
NEA receives approval to renew 283 MW of electricity exports
The Nepal Electricity Authority (NEA) has received renewed approval from India’s Central Electricity Authority to continue exporting 283 MW of electricity generated by eight hydropower projects in Nepal. The NEA sells surplus electricity both through the Indian Energy Exchange’s day-ahead and real-time markets and via medium-term bilateral agreements with Indian states such as Haryana and Bihar. Electricity is also being exported to Bangladesh using India’s transmission infrastructure.
Two dozen industries shut down amid dispute over dedicated and trunk line charges
Around 25 industries have suspended operations after the Nepal Electricity Authority disconnected their power supply over unpaid dues related to dedicated and trunk line usage fees. The NEA said it acted under its revenue collection rules after repeated notices went unanswered. Earlier, on September 28, the authority had issued a public notice allowing industries to clear dues in 28 installments, but several companies failed to comply.
Security Printing Center to print 1.2 million driving licenses
The Security Printing Center will soon begin printing driving licenses under a new agreement with the Department of Transport Management (DoTM). The memorandum of understanding was signed on Wednesday between DoTM Director General Rajeev Pokharel and Center Executive Director Devaraj Dhungana. Out of the backlog of 2.5 million pending licenses, 1.2 million will be printed and distributed within three to six months.
Securities Board operations paralyzed for over a month due to employee strike
The Securities Board of Nepal (SEBON), the country’s capital market regulator, has remained non-operational for more than a month as employees continue their strike demanding internal reforms. The protest, ongoing for 38 days since September 23, has brought to a halt all key functions including IPO processing, rights and bonus share registration, and approval of new financial instruments. The government has yet to take any initiative to resolve the dispute.
Nepal Telecom to provide free Wi-Fi at all airports
Nepal Telecom has begun offering free Wi-Fi services at all domestic and international airports across the country under its Corporate Social Responsibility (CSR) initiative. The service was launched on Tuesday at the international terminal of Tribhuvan International Airport. The company said the facility is available in the arrival, departure, VIP lounges, and waiting areas, and will gradually expand to other airports nationwide.
Millions worth of goods stuck at Nepal-China border
Goods worth millions of rupees purchased by Nepali traders remain stranded on the road after Chinese authorities in Nyalam, Tibet, tightened container movement. With the Rasuwa border closed since last Ashar, shipments halted in China have yet to enter Nepal. Only a limited number of transport vehicles are being allowed through the Tatopani border, restricting imports. As a result, even goods ordered for the Dashain–Tihar season could not reach Nepal on time.
Only Rs 62.4 million collected for reconstruction of damaged infrastructure
As of Wednesday, the government has collected only Rs 62.4 million in its fund established to rebuild public infrastructure damaged during the protests of September 8–9. The “Physical Infrastructure Reconstruction Fund,” opened at Rastriya Banijya Bank on September 24, sought voluntary contributions from individuals and institutions. So far, around Rs 62.5 million has been deposited.
Firms must obtain license for real estate deals above Rs 30 million
The government has made it mandatory for companies, firms, and institutions conducting real estate transactions exceeding Rs 30 million to obtain a license. On Thursday, the Department of Land Management and Records invited applications for such licenses following a notice published in the Nepal Gazette on October 13. The department has designated metropolitan and sub-metropolitan cities as the working areas for this provision.
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