KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest developments highlight a mix of economic ambitions, institutional reforms and persistent structural challenges. Prime Minister Balendra Shah’s plan to reform policies and regulations to help domestic IT and gaming companies expand globally signals growing recognition of the digital economy as a potential driver of growth and employment. However, translating this ambition into globally competitive businesses will require sustained investment, skilled human resources and a supportive regulatory environment.
At the institutional level, the Election Commission’s initiative to integrate National Identity Card and civil registration data into voter roll management could improve administrative efficiency and data accuracy, provided privacy and data security are ensured. Meanwhile, Karnali Province’s projected 2.94 percent economic growth exposes the limitations of an economy heavily dependent on services, with relatively low industrial activity and agricultural financing.
Basic service delivery remains another major concern. With fewer than half of Nepal’s population accessing safely managed drinking water and sanitation, the figures underline significant inequalities in public infrastructure. Similarly, Dang farmers selling paddy below government support prices demonstrate persistent weaknesses in agricultural procurement, storage and market access.
Proposals to connect Lumbini with Goa offer opportunities for cross-border tourism, while the Sunkoshi-Marin tender cancellation raises questions about infrastructure project management and procurement transparency. The DDC fraud investigation and extended Sumeru cooperative auction deadline further highlight the need for stronger financial accountability. Meanwhile, Cyclone Arnab’s disruption of Mustang’s transport routes underscores the vulnerability of remote infrastructure to extreme weather.
Overall, Nepal’s challenge is to turn policy commitments and economic opportunities into tangible improvements in people’s livelihoods, institutional accountability and essential public services.
Policy reforms planned to help Nepali IT firms become global unicorns: PM Shah
Prime Minister (PM) Balendra Shah has said the government will introduce necessary policy and regulatory reforms to promote Nepal’s game development and information technology (IT) sectors, creating an environment for domestic companies to expand internationally and emerge as global unicorns. In a social media post on Friday, Prime Minister Shah said the government would review existing regulations and requirements to facilitate the growth of the sectors. He highlighted the international success of gaming applications developed by Nepali companies, citing Ludo, which has recorded approximately 200 million downloads worldwide, and Callbreak, with more than 150 million downloads. The Prime Minister also noted growing interest among young Nepalis in game development.
Voter roll to be updated using National ID and civil registration data
The Election Commission (EC) is preparing to update and verify the voter roll using data from the National Identity Card and Civil Registration Departments. Under an agreement reached between the Election Commission and the two departments, the voter registration and updating process will utilize information from the Personal Event Registration and Social Security Management Information System. According to EC spokesperson Narayan Prasad Bhattarai, the departments will securely transmit civil registration data to the Commission through appropriate technical channels, as stipulated in the agreement. A memorandum of understanding (MoU) was signed between the parties on October 29 to make the voter roll updating process more convenient, systematic and effective.
Karnali Province’s economy projected to grow by 2.94 percent in 2025/26
Karnali Province is expected to record economic growth of 2.94 percent in fiscal year 2025/26, according to the annual regional economic activity report published by Nepal Bank’s Surkhet office. The service sector continues to dominate the provincial economy and is projected to account for 58.41 percent of gross domestic product (GDP). Agriculture is expected to contribute 31.52 percent, while the industrial sector will make up the remaining 10.07 percent. Bank lending is also heavily concentrated in services, which account for 85.21 percent of total commercial bank financing. Agriculture receives 7.27 percent of loans, while industry accounts for 7.24 percent. The number of commercial bank branches in the province reached 481 by mid-July. Meanwhile, a total of 30,490 people from Karnali obtained labour approvals for foreign employment during the reporting period.
Only 47.5 percent of Nepal’s population has access to safely managed drinking water
Only 47.5 percent of Nepal’s population has access to safely managed drinking water services, while access to safely managed sanitation stands at just 39.9 percent, according to a report released by the National Statistics Office in collaboration with UN-Habitat. The report, titled Status of Water Supply and Sanitation in Nepal, covers all 753 local government units and highlights considerable inequalities in access to basic water and sanitation services. It identifies 57 local units facing significant gaps in both sectors. Water quality is another major concern, with E. coli detected in 61.2 percent of household drinking water samples, the report states. It also introduces a WASH Equity Index to identify underserved and vulnerable areas, helping policymakers prioritise investments and design targeted interventions.
Proposal to connect Lumbini and Goa through an integrated tourism circuit
A proposal to develop an integrated tourism circuit linking Lumbini, the birthplace of Gautam Buddha, with India’s popular coastal destination Goa was presented during the Vibrant Goa Global Business Summit 2026 on Saturday, October 31. A delegation from the Nepal Chamber of Commerce’s Lumbini Province chapter proposed establishing direct air connectivity between Bhairahawa and Goa. It also suggested developing combined spiritual and coastal tourism packages to attract international visitors to both destinations. The proposal was presented during high-level discussions aimed at expanding tourism and commercial cooperation between Nepal and India. Government representatives expressed interest in exploring bilateral tourism and business partnerships. The proposed use of routes through Gautam Buddha International Airport is expected to improve regional connectivity, encourage cross-border tourism and promote economic exchanges between the two countries.
Dang farmers sell paddy below government support prices
Farmers in Dang district have been selling their newly harvested paddy at prices considerably lower than the government’s minimum support rates, citing a lack of storage facilities and the need for immediate cash to meet household expenses ahead of the Tihar festival. The Food Management and Trading Company has fixed the minimum support price at Rs 3,660 per quintal for coarse paddy and Rs 3,860 for medium-grade paddy. However, farmers say they have been forced to sell their harvest directly from their fields for between Rs 3,000 and Rs 3,100 per quintal. Local agricultural authorities said procurement quotas for institutional purchases had yet to be allocated by the central authorities, leaving farmers dependent on private traders. The situation has been further complicated by unfavourable weather conditions associated with Cyclone Arnab, which has raised concerns about possible damage to harvested crops.
Sunkoshi-Marin project scraps international construction tender
The Sunkoshi-Marin Diversion Multipurpose Project has cancelled its ongoing international tender for construction works following recent administrative developments and interventions at higher levels. The project administration, operating through its field office in Sindhuli, announced the cancellation on Friday, October 30, invoking Section 3(1) of the Public Procurement Act, 2007. The tender had originally been published on June 8 for the construction of civil and hydro-mechanical structures. Three international bidders had reportedly qualified during the technical evaluation process: China International Water and Electric Corporation, Anneng-RCC Joint Venture and Sinohydro Corporation. However, the project authority decided to terminate the procurement process without providing detailed reasons for the cancellation.
Eight arrested in Rs 121 million fraud case involving Dairy Development Corporation
Nepal Police’s Central Investigation Bureau (CIB) has arrested eight people, including a former general manager of the Dairy Development Corporation (DDC), in connection with alleged financial irregularities amounting to Rs 121 million. According to the CIB, preliminary investigations indicate that the former general manager, senior officials, cold storage centre chiefs and other employees allegedly worked together in an organised network to misappropriate funds for personal benefit. Those arrested include Sanjibi Jha, the corporation’s former general manager, who was serving as chief of its administration and management department. Other suspects include former cold storage centre chiefs Bijay Kumar Yadav, Manhari Sharma and Ram Kewal Raya, along with employees Jitendra Kumar Yadav, Nabin Raya Yadav, Shivanandan Raya and Bikha Bahadur Bhandari. CIB Deputy Spokesperson and Information Officer Yogendra Kumar Khadka said the suspects were arrested from different locations on October 30, 2026, after obtaining permission from the Kathmandu District Court. Legal proceedings have been initiated against them under the criminal breach of trust provisions of the Criminal Code, 2017, and the Prevention of Organised Crime Act, 2014.
Bagmati committee extends Sumeru property auction deadline by 15 days
The Problematic Cooperative Management Committee of Bagmati Province has extended the deadline for bidding on properties belonging to the troubled Sumeru Savings and Credit Cooperative by another 15 days, citing technical adjustments. The original 35-day auction notice was published on October 3. Under the revised arrangement, interested bidders will have 50 days from the initial publication date to submit their sealed bids. The assets listed for auction include land and buildings belonging to Sumeru City Hospital in Lalitpur, biomedical equipment, the hospital’s operating licences, the licence of Shankharapur College and movable assets associated with educational programmes. The auction is intended to recover outstanding liabilities owed to banks and facilitate the repayment of deposits to affected cooperative members. The extension is expected to provide prospective bidders with additional time to review the listed assets and submit their offers.
Cyclone Arnab brings heavy snowfall, blocks Korala border route
Heavy snowfall in Upper Mustang and persistent rainfall in lower areas disrupted normal life on Saturday, October 31, following the impact of Cyclone Arnab. Snow accumulation of between two and three feet blocked the Korala border crossing, disrupting trade and transportation. Landslides along sections of the Jomsom-Korala road also obstructed vehicular movement. Heavy snowfall covered Lomanthang and Loghekar Damodarkunda rural municipalities, while continuous rainfall affected areas south of Baragung Muktichhetra Rural Municipality. Border security personnel restricted movement in affected areas, leaving some tourists and freight containers stranded. Authorities have urged travellers and transport operators to follow safety advisories until weather conditions improve and access through the high-altitude mountain routes becomes safer.
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