KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape presents a mixed picture, combining modest financial-market stability with significant infrastructure, regulatory, and external trade challenges. The NEPSE index edged up only 0.26 points despite Rs 4.89 billion in turnover, while stable gold and silver prices indicate limited short-term movement in domestic commodity markets. The upgrade of Kamana Sewa Development Bank’s credit rating points to improving financial resilience, supported by stronger capital, liquidity, and loan management.
However, regulatory and institutional pressures remain prominent. The Securities Board has been urged to tighten IPO oversight, while the telecommunications regulator seeks Rs 8.05 billion in dues from UTL and prepares additional spectrum for 5G expansion. New electricity transmission charges and ADB-backed PPP initiatives could support longer-term investment in energy infrastructure, although flood damage to 19 hydropower projects highlights the sector’s vulnerability to climate-related disruptions.
External trade and employment prospects face uncertainty, particularly from India’s new jute tariffs and Malaysia’s restrictive recruitment system. In contrast, tourism is showing positive momentum, with September arrivals rising 12.12 percent year-on-year.
The broader outlook therefore remains mixed: infrastructure investment, tourism growth, agricultural innovation, and financial-sector improvements offer opportunities, while regulatory weaknesses, climate risks, trade barriers, and transport constraints could continue to weigh on economic activity.
NEPSE rises marginally by 0.26 points to 2,599.15
Trading activity today generated a total turnover of Rs 4.89 billion, with 102.65 million shares of 353 companies changing hands. The Nepal Stock Exchange (NEPSE) index edged up 0.01 percent, gaining 0.26 points to close at 2,599.15. Sectoral performance was mixed. The banking sector advanced 0.39 percent, followed by development banks at 0.22 percent, finance at 0.20 percent, and hydropower at 0.03 percent. Non-life insurance declined 0.50 percent, while the others and mutual funds sub-indices dropped 0.32 percent and 0.26 percent, respectively. The investment index remained unchanged.
Gold and silver prices remain unchanged in domestic market
Gold and silver prices remained unchanged in the Nepali market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold is being traded at Rs 293,300 per tola, equivalent to 11.66 grams. The price was unchanged from Wednesday. The price of 10 grams of gold has been set at Rs 251,460. Silver prices also remained steady at Rs 4,425 per tola, the same rate recorded on Wednesday.
Telecom regulator to recover Rs 8.05 billion in dues from UTL
The Nepal Telecommunications Authority (NTA) has decided to recover Rs 8.052 billion in outstanding dues from United Telecom Limited (UTL) following the automatic cancellation of the company’s basic telephone service licence on September 5, 2026, under prevailing telecommunications laws. At a press conference on Thursday, NTA spokesperson Min Prasad Aryal said the outstanding amount would be recovered as government arrears. The dues include unpaid frequency charges, royalties, and contributions to the Rural Telecommunications Development Fund, among other obligations owed to the government and the regulator.
Parliamentary committee asks Securities Board to tighten capital market oversight
The Federal Parliament’s Finance Committee on Wednesday issued five directives to the Securities Board of Nepal (SEBON), seeking stronger safeguards against investors being exposed to financially vulnerable companies after applying for initial public offerings (IPOs). The committee called on SEBON to strengthen corporate governance and financial requirements and prevent companies that fail to meet prescribed standards from issuing public shares. Its other directives cover stronger market supervision, greater transparency in IPOs, measures to curb market manipulation, and efforts to prevent recurring disruptions in the Nepal Stock Exchange’s trading system. The committee also asked SEBON to review the existing provision requiring promoters of listed companies to maintain a minimum shareholding percentage.
Energy minister calls for regular monitoring of licensed hydropower projects
Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has directed relevant government agencies to establish an effective monitoring and follow-up system for licensed hydropower projects. Speaking at a ministry review meeting on Wednesday, Shrestha said the current system places excessive emphasis on granting licences while giving insufficient attention to compliance after licensing. This includes obligations related to corporate social responsibility and initiatives benefiting local communities. He stressed that licensing agencies should continue monitoring projects and enforcing their responsibilities well beyond the initial approval stage.
Government forms task force to examine fertiliser purchase guarantee
Agriculture, Forest and Environment Minister Gita Chaudhary has formed a multi-agency task force to examine the possibility of providing a government purchase guarantee for a proposed domestic chemical fertiliser plant. The task force was established through a ministerial decision on Thursday and includes representatives and experts from the agriculture, finance, industry, and energy ministries, as well as the Public Procurement Monitoring Office. The panel will study the legal provisions, potential market-assurance mechanisms, and institutional arrangements needed to facilitate government procurement of fertiliser produced domestically.
ADB and Nepal sign PPP advisory agreements for transmission and battery storage
The Asian Development Bank (ADB) and Nepal have signed two public-private partnership (PPP) transaction advisory agreements aimed at attracting more than $200 million in private investment in electricity transmission and utility-scale battery energy storage systems. ADB Nepal Resident Mission Director Arnaud Cauchois and Nepal Electricity Authority Executive Director Dighayu Kumar Shrestha signed the agreements. According to the arrangement, ADB will provide transaction advisory services for PPP projects involving electricity transmission and large-scale battery storage. It marks the first time the development bank has provided such advisory services in a member country for both electricity transmission and utility-scale battery energy storage system PPPs. The initiative is intended to strengthen Nepal’s electricity transmission infrastructure and expand its energy storage capacity.
Electricity regulator introduces new charges for access to national transmission grid
The Electricity Regulatory Commission has introduced new fees for accessing the national electricity transmission grid under the National Electricity Transmission Grid Transmission Charge Calculation Standard 2026, formulated in accordance with the 2025 open-access directive. The standard seeks to ensure non-discriminatory and cost-based access for electricity generation, transmission, and distribution and covers areas including scheduling, system operation, metering, and deviation management. The monthly charge for long-term and medium-term open access has been set at Rs 412,755 per MW, while short-term access will cost Rs 0.57 per kWh.
Nineteen hydropower projects with 620 MW capacity unlikely to resume operations soon after floods
Flooding and heavy rainfall have disrupted power generation capacity totaling 1,292 MW, according to the Nepal Electricity Authority (NEA). The disruptions were caused by the Bhote Koshi flood on August 26 and heavy rainfall between September 24 and 27. Of the affected facilities, 19 hydropower projects with a combined capacity of 620 MW are not expected to resume generation in the immediate future. The August 26 flood alone disrupted 12 power plants with a combined capacity of 430.8 MW. The affected facilities include Rasuwagadhi (111 MW), Sanjen (78 MW), Upper Trishuli 3A (60 MW), Lower Sanjen (42.5 MW), Trishuli (24 MW), and the NEA Solar project (25 MW).
Kathmandu Valley begins operation of underground power distribution network
The Nepal Electricity Authority is set to begin operating its underground electricity distribution network in parts of Kirtipur, Jorpati, Baneshwor, and Kuleshwor from Thursday. The transition to underground lines, along with technical maintenance ahead of increased winter electricity demand, will require scheduled power outages from 10 am to 3 pm through October 12. According to the schedule, outages will affect Satungal-Bauthali on October 1; Machhegaun-Dobhan Chowk and Khusichok on October 2; Mulpani on October 3 and 6; and Garjudhara on October 4.
Nepal prepares to release additional spectrum for 5G expansion
The Nepal Telecommunications Authority (NTA) is preparing to allocate additional spectrum to support the expansion of 5G services, although operators can already provide 5G using existing frequencies under the technology-neutral framework. Speaking at a press briefing on Thursday, NTA spokesperson Min Prasad Aryal said the regulator has completed the necessary preparations despite delays in the rollout of the technology. He said service providers should choose technologies based on their operational needs, market requirements, and international industry standards.
Selection of 25 manpower firms for Malaysia raises concerns in recruitment sector
Malaysia has selected only 25 Nepali manpower companies under its Foreign Worker Centralised Management System from more than 1,200 registered agencies, while designating another 250 firms as secondary agencies. The decision has faced strong opposition from the Government of Nepal and the Nepal Association of Foreign Employment Agencies, which have raised concerns about potential market concentration, limited competition, and the exploitation of workers by intermediaries. Both have described the selection process as discriminatory and warned that it could adversely affect employment opportunities for Nepali workers seeking jobs in Malaysia.
New Indian tax measures likely to impact Nepal’s jute exports
Nepali jute processors, already facing an anti-dumping duty increase of as much as 56 times, are now confronting additional trade barriers after India imposed a countervailing duty. Prakash Mundada, vice-president of the Jute Industries Association and director of Baba Jute Mills, said India introduced the new measures a year before the scheduled December 2027 review. Industry representatives have expressed concern that the tariffs could significantly affect the processing of domestically produced raw jute as well as exports made using raw materials imported from India and Bangladesh.
Nepal records 88,248 foreign tourist arrivals in September
Nepal received 88,248 foreign tourists in September 2026, with arrivals from Asian countries rising as the autumn tourist season began. According to data from the Department of Immigration and the Nepal Tourism Board, arrivals increased by 12.12 percent year-on-year, or by 9,537 visitors, compared with the 78,711 tourists recorded in September 2025. India remained Nepal’s largest source market, accounting for 17,425 arrivals, or 19.75 percent of the total visitors during the month.
Around 65,000 vehicles needed for Dashain travel amid lack of new public transport
Authorities are expected to mobilize around 65,000 existing public vehicles to accommodate more than 1.5 million people projected to leave the Kathmandu Valley during Dashain. The shortage of additional vehicles is linked to a four-to-five-month suspension of vehicle registrations at the Department of Transport Management, which prevented transport operators from adding new vehicles ahead of the festival season. The House of Representatives’ Infrastructure Development Committee, in a report submitted to Infrastructure Development Minister Sunil Lamsal, determined that the existing fleet would need to be fully mobilized to meet the anticipated travel demand.
Food company drops livestock sales for Dashain this year
The Food Management and Trading Company has decided not to sell sheep, goats, and mountain goats during Dashain this year, breaking from its previous practice of supplying livestock to help contain seasonal price increases. Information officer Madhav Mishra said the decision was driven by concerns over financial losses and the possibility of livestock dying or losing weight during transportation amid anticipated road disruptions. As a result, livestock sales have not been included in the company’s budget for the current fiscal year. Meanwhile, the company continues to sell subsidized sugar through its outlets at prices up to Rs 16 per kg below prevailing market rates. From Thursday, the purchase limit has been increased to 25 kg per customer.
New high-yield rice varieties targeted at reducing imports
The KOPIA Nepal Center, supported by the Government of South Korea, has partnered with the Nepal Agricultural Research Council (NARC) in Khumaltar, Lalitpur, to develop higher-yielding rice varieties and increase domestic production. The multi-stage initiative, unveiled on Wednesday, will initially focus on developing high-yield spring rice and early-maturing varieties suitable for the monsoon season. The main phase of the project is scheduled to run from 2028 to 2030 and aims to enhance agricultural productivity while reducing Nepal’s dependence on imported rice.
Kamana Sewa Development Bank upgraded to triple-B-minus rating
Care Ratings Nepal Limited has raised Kamana Sewa Development Bank Limited’s issuer rating from CARE-NP BB Plus to CARE-NP BBB Minus. The new rating reflects moderate credit risk and a moderate level of safety in meeting financial obligations on time. The bank attributed the upgrade to stronger capital reserves, improved management of non-performing loans, adequate liquidity, business expansion, experienced leadership, and a strengthened deposit base.
Standard Chartered Nepal donates $100,000 to disaster relief fund
Standard Chartered Bank Nepal has contributed $100,000, equivalent to more than Rs 15 million, to the Prime Minister’s Disaster Relief Fund to support recovery following the severe Bhote Koshi floods of August 26. Bank CEO Gorakh Rana said the flooding caused extensive loss of life and livelihoods across several districts. The contribution will support immediate relief, rehabilitation, and longer-term reconstruction of affected communities.
Nepali livestock health initiative receives FAO recognition
Heifer International Nepal’s municipal-level animal health initiative has received international recognition at the Food and Agriculture Organization (FAO) Global Conference on Methodologies for Agrifood Systems, held in Rome from September 21 to 23. Fabrice Carbone, senior director of business and development at Heifer International, accepted the award on behalf of the organization. The United Nations agency recognized the initiative for applying the One Health approach to strengthen community resilience and promote sustainable transformation of the livestock sector.
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