KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The overall picture points to a mixed economic environment in Nepal, where a modest recovery in financial markets is occurring alongside significant disruption from floods and infrastructure failures. The NEPSE gained 9.24 points to 2,522.66, with 12 of 13 sub-groups advancing, indicating relatively broad investor confidence despite turnover falling to Rs 2.906 billion. Gold and silver prices, however, declined marginally, suggesting limited movement in domestic precious-metal markets.
The more significant economic concerns stem from the Bhote Koshi and Trishuli floods. Insurance claims have reached Rs 25.87 billion, while more than 6,000 private houses and numerous banking facilities, vehicles, and cargo containers have been damaged or destroyed. The suspension of China’s Zhangmu Port and the collapse of the Krishnabhir road have compounded supply-chain problems, disrupting freight movement, LPG distribution, and trade between the Bara-Parsa industrial corridor and Kathmandu.
Government and private-sector responses are increasingly focused on relief and resilience. Gandaki Province pledged Rs 4 billion to the disaster fund, while IPPAN contributed Rs 130 million. Meanwhile, authorities are implementing alternative transport routes and shifting LPG bottling operations outside Kathmandu. At the same time, Karnali’s extremely low budget execution and declining industrial activity in Myagdi highlight persistent structural weaknesses. Overall, disaster-related disruptions are intensifying economic vulnerabilities even as financial markets remain comparatively resilient.
NEPSE gains 9.24 points to 2,522.66 on Rs 2.906 billion turnover
The NEPSE index increased by 9.24 points to close at 2,522.66 points on Tuesday, the second trading day of the week, despite a drop in overall market turnover. Transactions worth Rs 2.906 billion were recorded during Tuesday’s trading session, compared with Rs 3.648 billion on Monday. Of the 13 sub-groups traded, 12 ended the session in positive territory, while one recorded a decline. Upper Mailun Khola Hydropower Company posted the strongest gain, with its share price rising 7.15 percent. MBL Equity Fund advanced by around 6 percent, while Emerging Nepal gained approximately 5 percent. Upakar Laghubitta Bittiya Sanstha, which began trading on Tuesday, registered the sharpest fall, declining 8.48 percent. Solu Hydropower topped the turnover rankings with shares worth Rs 138.2 million traded, followed by Shivam Cements, which recorded turnover of more than Rs 135 million.
Gold traded at Rs 306,100 and silver at Rs 4,765 today
Gold and silver prices declined in Nepal’s domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold decreased by Rs 500 per tola, with one tola equivalent to 11.66 grams. Gold was traded at Rs 306,100 per tola, down from Rs 306,600 recorded on the previous day. Silver prices also fell during the day. The federation said silver declined by Rs 15 per tola to Rs 4,765. Silver had been trading at Rs 4,780 per tola on the previous day.
Tatopani trade stalls as China suspends Zhangmu Port operations
China has indefinitely suspended operations at Zhangmu Port across the Tatopani border as a disaster-prevention measure following severe flooding along the Bhote Koshi. Chinese authorities halted customs operations, evacuated personnel to higher ground, and stopped cargo movement, bringing Nepal-bound trade through the crossing to a complete standstill. The sudden closure has left only limited trade routes available ahead of major festivals such as Dashain and Tihar. Trade and transportation in the region had already faced disruption for more than a month after a major landslide blocked a key highway, with only minor repairs recently allowing limited movement. The latest port closure has left dozens of containers stranded on the Chinese side, including preserved fruits estimated to be worth Rs 400 million in Nyalam and Tingri. Continued delays and rising parking charges are expected to put considerable financial pressure on local importers.
Bhote Koshi flood insurance claims reach Rs 25.87 billion
Insurance claims related to the August 26 Bhote Koshi flood had reached Rs 25.87 billion across 15 non-life insurance companies by August 31, according to the Nepal Insurance Authority. Oriental Insurance reported the largest volume of claims, with eight policyholders submitting preliminary estimates totaling Rs 13 billion. Other substantial claims were reported by United Ajod at Rs 4.97 billion, Sanima GIC at Rs 2.10 billion, Siddharth Premier at Rs 1.88 billion, and Shikhar Insurance at Rs 1.87 billion. Engineering and construction-related insurance policies accounted for the largest portion of the losses, with claims exceeding Rs 20 billion. Property insurance claims amounted to Rs 2.34 billion from 113 reported cases.
Govt estimates over 6,000 private houses destroyed in Bhote Koshi and Trishuli floods
The Department of Urban Development and Building Construction has estimated that more than 6,000 private houses were swept away by the devastating floods that struck the Bhote Koshi and Trishuli rivers on August 26. During a press briefing organized by departments under the Ministry of Infrastructure Development, officials estimated that damage to private homes would amount to approximately Rs 12 billion, in addition to damage to 45 government and public buildings. The department also estimated that around Rs 900 million would be immediately required to construct temporary shelters for families displaced by the floods. The estimates are provisional and may be revised as field assessments and damage evaluations continue.
Banking sector suffers Rs 600 million in direct damage from Rasuwa floods
Commercial bank branches located in the Bhote Koshi flood-affected areas of Rasuwa suffered direct physical damage estimated at Rs 600 million, according to the Nepal Bankers Association. Of the 16 branch offices operated by 12 banks in the disaster-affected area, 15 were completely destroyed, while one sustained severe structural damage. The affected branches had been serving 78,204 depositors with total deposits of Rs 4.50 billion. They had also extended Rs 2.43 million in non-hydropower credit to 2,125 borrowers. Cash held in vaults, counters, and ATMs is covered by insurance, including Rs 172.4 million kept in vaults, Rs 11.7 million at counters, and Rs 11.6 million distributed across nine ATMs. However, substantial losses involving loan collateral and damage to safety deposit lockers have not been compensated, with significant losses reported particularly at Agricultural Development Bank.
Nepal-India Border Coordination Committee concludes meeting in Pithoragarh
The Nepal-India Border Coordination Committee has concluded a meeting in Pithoragarh, India, with discussions centered on border security, crime prevention, and disaster management. The Nepali delegation was led by Baitadi Chief District Officer Mina Aryal and included government officials and security representatives from Baitadi and Darchula districts. The delegation held discussions with local officials and security representatives from Pithoragarh. Both sides agreed to address shared concerns through regular communication and to establish a joint mechanism for exchanging information on disasters to help reduce the risks posed by floods and landslides. Security agencies from both countries also agreed to strengthen routine information sharing to combat illegal smuggling, drug trafficking, and human trafficking. They further emphasized facilitating smoother cross-border movement and reinforcing friendly people-to-people relations between the two countries.
Rasuwa floods damage around 500 freight trucks and cargo containers
The floods and landslides near the Rasuwagadhi international trade border have damaged or swept away approximately 500 cargo trucks and freight containers, according to preliminary estimates from the Nepal Truck Transport Entrepreneurs Federation. Federation General Secretary Badri Chaulagain said affiliated organizations, including the Narayani Transport Entrepreneurs Association in Hetauda, the Balkhu Transport Association in Kathmandu, and the Nepal Truck Container Transport Service, had confirmed that 240 freight containers were either swept away or remained missing. Another 170 containers were reported to be safe across the border in Kerung, China. The disaster also destroyed hundreds of open trucks and lorries used for domestic transportation along the trade corridor. A detailed assessment of the damage is continuing among the federation’s 29 affiliated transport organizations across the country.
Madhesh announces Rs 100,000 relief for each deceased Bhote Koshi flood victim
The Madhesh Province Council of Ministers has decided to provide Rs 100,000 to the legal heirs of every provincial citizen who died in the Bhote Koshi and Trishuli floods to help meet immediate expenses. The provincial government has also announced free medical treatment for injured residents at provincial health institutions, with arrangements to coordinate treatment at specialized facilities when necessary. To support flood-affected residents in Nuwakot and Rasuwa, the provincial government approved Rs 19.6 million worth of relief supplies, including 7,000 blankets and 700 temporary tents. The decision was taken during a provincial disaster management committee meeting chaired by Home Minister Fakira Mahato and attended by Chief Minister Krishna Prasad Yadav. The latest shipment represents the second round of relief supplies, following an initial contribution worth Rs 5.5 million. Minister Fakira Mahato will hand over the relief materials in coordination with local representatives. Meanwhile, Finance Minister Yubaraj Bhattarai confirmed that the government would consult the Provincial Public Service Commission and also approved the Local Level Employee Transfer Criteria.
Freight transport from Bara-Parsa industrial corridor halts after road collapse
The transportation of food grains, industrial raw materials, and everyday consumer goods from the Bara-Parsa industrial corridor toward Kathmandu came to a complete halt on Monday after a section of the road at Krishnabhir collapsed along the main highway route. Santosh Karki, a central member of the transport federation, said hundreds of cargo trucks traveling toward Kathmandu were stranded along the narrow Naubise-Hetauda section of the Tribhuvan Rajpath. The disruption has effectively interrupted the supply chain from the Birgunj customs point to Kathmandu. Light four-wheel pickup vehicles are still carrying essential commodities through alternative routes, but the movement of heavy cargo vehicles remains severely restricted. Administration officials have urged transport operators to check road conditions before attempting to travel through alternative highway routes.
Department begins field studies to determine minimum support price for wheat
The Department of Agriculture has deployed specialized field teams to different districts to analyze wheat production costs and help determine the crop’s minimum support price. The studies are being conducted in Sunsari and Udayapur in Koshi Province; Siraha and Rautahat in Madhesh Province; Kavrepalanchowk and Dhading in Bagmati Province; Gorkha and Tanahun in Gandaki Province; Nawalparasi, Kapilvastu, and Rupandehi in Lumbini Province; Surkhet in Karnali Province; and Kailali and Kanchanpur in Sudurpashchim Province. The technical teams will assess various factors, including production expenses, seed and fertilizer costs, labor expenses, inflation, and prevailing market prices. Based on the findings, the teams will prepare pricing proposals for the Ministry of Agriculture, Land Management, and Cooperatives. The recommendations will precede government procurement through the Food Management and Trading Company. Last year’s benchmark for wheat procurement was Rs 3,940 per quintal.
Gandaki allocates Rs 4 billion for flood relief and compensation
The Gandaki Province cabinet decided on Monday to contribute Rs 4 billion to the Prime Minister Disaster Relief Fund and announced financial assistance for families affected by the Rasuwa floods. During a press conference, the provincial government said it would provide Rs 100,000 to each family of a Gandaki Province citizen who died or remains missing in the disaster. Injured individuals will receive Rs 50,000, while Rs 25,000 will be provided to cover funeral expenses. Economic Affairs Minister and government spokesperson Jit Sherchan said the provincial government would also arrange transportation to take injured and sick citizens back to their respective home villages after they arrive in Pokhara. However, the government is still verifying the exact number of people from Gandaki Province who were killed, injured, or went missing in the disaster.
Karnali Province records negligible budget expenditure
Karnali Province spent just 0.106 percent of its total budget during the first month of the 2025/26 fiscal year, reflecting a very slow pace of budget implementation. According to the Provincial Comptroller General Office, the provincial government spent Rs 37.6 million between July 17 and August 16 against a total annual budget of Rs 35.398 billion. Capital expenditure was particularly limited, with only Rs 33.4 million spent from the Rs 20.746 billion allocated for capital projects. Recurrent expenditure amounted to Rs 4.2 million out of the Rs 14.151 billion allocated for that purpose. Officials said delays in forming the provincial government and expanding the cabinet were among the main reasons behind the slow start to budget implementation.
IPPAN contributes Rs 130 million to disaster fund
Energy entrepreneurs affiliated with the Independent Power Producers’ Association, Nepal (IPPAN) have contributed Rs 130 million to support rescue, relief, and reconstruction activities in communities affected by the Bhote Koshi floods. IPPAN President Mohan Kumar Dangi handed over the contribution cheque to Energy, Water Resources, and Irrigation Minister Biraj Bhakt Shrestha at an official program held at Singha Durbar. Dangi said the disaster had severely affected 13 hydropower projects. Minister Shrestha expressed appreciation for the support provided by energy producers during the national crisis and highlighted the need for infrastructure capable of withstanding climate-related risks. He stressed that developing climate-resilient infrastructure would be essential to reduce the country’s vulnerability to future geographical and hydrological disasters.
LPG bottling operations shift outside Kathmandu following highway disruption
Liquefied petroleum gas (LPG) bottling companies in Kathmandu and surrounding districts have moved their filling operations outside the valley after the road collapse at Krishnabhir disrupted the movement of LPG bullet trucks. Nepal LP Gas Industry Association President Dewan Chand said Nepal Oil Corporation had authorized LPG industries to coordinate with bottling plants in Bara, Parsa, Chitwan, Makwanpur, and Nawalpur to ensure a continuous supply to Kathmandu Valley. The valley accounts for more than 40 percent of the country’s total LPG consumption. Industry representatives said bottling operations have already started at facilities outside the valley. Shree Gas is using the Baba plant, Shree Krishna is operating through Saibaba, Shree Ram through Janaki, and Nepal Gas through the Nepal Gandaki, Everest, and Sugam plants. The bottled gas is being transported through the Tribhuvan Rajpath in an effort to prevent shortages and discourage panic buying.
Local administration introduces alternative traffic routes on Hetauda-Kathmandu highway
The local administration has changed traffic arrangements along the Hetauda-Kathmandu highway corridor from today in response to growing congestion caused by the collapse of the road at Krishnabhir on the Prithvi Highway. According to new directives issued by the Makwanpur District Administration Office, passenger vehicles with fewer than 14 seats traveling toward Kathmandu must use the Bhimfedi-Kulekhani-Sisneri-Dakshinkali route. Vehicles traveling from Kathmandu toward Hetauda have been directed to take the Pharping-Fakhel-Kulekhani-Bhimfedi route. Administrative officer Santosh Subedi said cargo trucks and large passenger buses heading toward Kathmandu must use the Tribhuvan Rajpath and return through the Kanti Highway. The revised arrangements are intended to reduce major traffic congestion and minimize lengthy delays along the affected routes.
Myagdi records decline in industry registrations amid economic slowdown
Myagdi district registered 70 industries and 95 commercial firms during the 2025/26 fiscal year, while 41 industries and 41 businesses were closed or deregistered, according to the Integrated Services Office. Official data show that 561 industries and 483 businesses renewed their licenses during the year. With the new registrations and renewals, the total number of registered industries in the district has reached 3,490, while the number of registered firms stands at 3,055. Revenue collection, however, fell to Rs 1.9 million from Rs 325,774 recorded in the previous year. Myagdi Chamber of Commerce and Industry President Subin Shrestha said the increase in closures and stagnant business registrations reflected the prolonged economic slowdown following the pandemic. He also cited migration, increasing foreign employment, and the decentralization of business registration as contributing factors. According to Shrestha, businesses can now obtain permanent account numbers directly through local municipalities without having to renew their registration at the provincial level.
Rasuwa floods damage two development bank branches and affect employees
The devastating floods that struck Rasuwa on August 26 have severely damaged two development bank branches and disrupted banking services in the area, according to Nepal Development Bankers Association CEO Manjila Dangol. Jyoti Development Bank’s Trishuli branch was completely destroyed, while the Devghat and Kalika branches of Lumbini Development Bank suffered structural damage. The disaster also left several bank employees affected after they traveled from Kathmandu to visit Gosainkunda. One employee of Muktinath Development Bank was found dead, while another employee from the same bank remains missing. An employee of Lumbini Development Bank has also been reported missing. Authorities and representatives from the financial sector are working together to coordinate search and rescue efforts for those who remain unaccounted for.
Prabhu Mutual Fund sets September 10 book-close date for 12 percent cash dividend
Prabhu Capital has announced that Prabhu Select Fund and Prabhu Smart Fund will close their books on September 10 for the distribution of cash dividends. The decision follows a resolution passed by the board of directors of the scheme manager on August 21. Under the decision, both mutual fund schemes will distribute a 12 percent cash dividend to their unitholders, including applicable taxes. Investors who hold units through transactions completed on the Nepal Stock Exchange (NEPSE) by September 9, the day immediately before the book-closure date, will be eligible to receive the declared dividend.
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