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 reflect a combination of economic adjustments, infrastructure expansion and policy reforms aimed at strengthening national development. The sharp decline in gold and silver prices indicates changing trends in the domestic precious metals market, while the government’s free online AI training programme signals growing recognition of digital skills as essential for youth employment and productivity.
Infrastructure development remains a major priority, with national pride irrigation projects expanding agricultural coverage and Pokhara advancing a Rs 1.52 billion cycling trail to promote sustainable tourism. The completion of pedestrian bridges in Dhanusha and the introduction of toll charges at the Nagdhunga Tunnel also highlight efforts to improve transport infrastructure and manage public investment. However, the cancellation of three stalled infrastructure contracts in Rautahat underscores persistent challenges in project implementation and contractor accountability.
Trade and revenue trends reveal Nepal’s growing dependence on major customs corridors. Birgunj continues to dominate imports, while Mustang’s increased customs revenue demonstrates how alternative trade routes can help maintain economic activity during border disruptions. Meanwhile, the floriculture sector’s growth presents opportunities for domestic production, although rising flower imports expose supply gaps.
Policy initiatives, including proposed LPG categorisation, improved provincial revenue management and stricter arrears recovery, reflect efforts to strengthen financial governance. Calls for increased education spending and support for startups further highlight the need to invest in human capital and entrepreneurship.
Overall, sustainable growth will depend on effective policy implementation, stronger domestic production, infrastructure efficiency and improved institutional accountability.
Gold falls Rs 8,300 to Rs 272,000 per tola; silver drops to Rs 3,650
Gold and silver prices declined in the domestic market on Sunday, the first trading day of the week. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 8,300 per tola to Rs 272,000. Gold had been traded at Rs 280,300 per tola on Friday before the latest price adjustment. Silver prices also recorded a significant decline. The price dropped by Rs 175 per tola from Friday’s rate of Rs 3,825 to Rs 3,650 on Sunday.
Govt announces free online AI and prompt-writing training for youth
The National Vocational Training Establishment under the Ministry of Youth, Labour and Employment is set to organise a free online training programme on the effective use of artificial intelligence (AI) and prompt writing on November 4 and 5, 2026. The programme aims to equip young people with practical AI skills, including prompt engineering, digital content creation, email drafting and the responsible use of AI applications. Participants will receive training on tools such as ChatGPT and Claude. The training will be conducted in four sessions each day, with 500 participants accommodated in each batch. A total of 2,000 participants will be able to take part in the programme. Ministry officials said the initiative marks the establishment’s first direct online training programme of this kind. It is intended to make emerging technological knowledge more accessible and strengthen digital skills among young people across the country.
National pride irrigation projects expand water supply to new farmland
National pride irrigation projects have extended irrigation services to additional farmland in several districts. By mid-September, the Sikta Irrigation Project in Banke had expanded its coverage by 100 hectares, while the Babai Irrigation Project in Bardiya had brought an additional 50 hectares under irrigation. According to the Department of Water Resources and Irrigation, the Sikta project had invited four tenders worth Rs 540.3 million by the reporting period. It plans to invite 17 additional tenders worth Rs 2.483 billion to extend irrigation facilities to another 300 hectares by mid-January. The Babai project has also set a target of bringing 300 hectares of additional land under irrigation within the same period. Meanwhile, the irrigation project in Kailali had invited six tenders worth Rs 1.3335 billion and plans to invite 12 more tenders worth Rs 2.3 billion. It aims to construct 1.5 kilometres of embankments and reclaim 160 hectares of land by mid-January. The Bheri-Babai Diversion Multipurpose Project has planned four tenders worth Rs 610 million. Similarly, the Sunkoshi-Marin Diversion Project has set targets of providing lift irrigation to 97 hectares of land and constructing 6.18 kilometres of embankments.
Task force proposes LPG cylinders of up to 450 kg for industrial use
A government-formed task force has recommended introducing different categories of liquefied petroleum gas (LPG) cylinders to distinguish household consumption from commercial and industrial use. The task force, led by Joint Secretary Jitendra Basnet, submitted its report to ministry secretary Rudra Singh Tamang with recommendations on managing LPG distribution and targeting government subsidies more effectively. The report proposes retaining the standard 14.2 kg cylinder exclusively for household use while introducing 19.2 kg cylinders for hotels, restaurants and banquet halls. It has also recommended 47–50 kg cylinders for large commercial establishments and cylinders with a capacity of up to 450 kg for heavy industries. The proposed classification is intended to ensure that government subsidies are directed primarily towards household consumers, while commercial and industrial users pay according to their consumption requirements.
Govt office hours change to 9 am–4 pm from Monday
Government offices across the country will operate from 9 am to 4 pm starting Monday, November 2, under the winter working-hour schedule. The revised timetable was announced through a notice published in the Nepal Gazette by the Ministry of Home Affairs. The new working hours will remain in effect until January 29, 2027. Government offices have been operating from 9 am to 5 pm under the previous schedule. However, the revised timing will not apply to educational institutions and public corporations.
Stakeholders seek 20 percent budget allocation for education
Lawmakers, policymakers, education experts and rights activists have called for the proposed School Education Bill to guarantee free and quality public education as a fundamental responsibility of the state. Speaking at a discussion organised by the National Campaign for Education (NCE) Nepal on Sunday during its 17th annual general assembly, participants stressed the need for clearly defined responsibilities among federal, provincial and local governments. They also demanded that at least 20 percent of the national budget be allocated to the education sector. National Human Rights Commission Chair Tap Bahadur Magar emphasised the importance of inclusive, child-friendly education and safe school infrastructure. NCE Nepal Chair Lab Raj Oli said the organisation, which represents a network of 46 districts and 550 members, would incorporate concerns raised by stakeholders into its recommendations and submit them to the government.
Birgunj Customs handles 48.3 percent of Nepal’s imports
The Birgunj Customs Office accounted for 48.30 percent of Nepal’s total imports during the first quarter of fiscal year 2026/27, reinforcing its position as the country’s leading international trade gateway. According to Department of Customs data covering the period from July 17 to September 17, Nepal imported goods worth Rs 646 billion during the review period. Of this amount, goods worth Rs 312.40 billion entered the country through the Birgunj Customs Office, with petroleum products and industrial goods accounting for a significant share. The country’s total exports stood at Rs 114 billion during the same period, of which Birgunj accounted for Rs 47.92 billion. Following disruptions caused by floods at northern border crossings, Bhairahawa and Biratnagar have also emerged as important alternative trade routes.
Mustang Customs collects Rs 11.45 billion in revenue in three and a half months
The Mustang Customs Office at the Korala border point along the Nepal-China frontier collected Rs 11.45 billion in revenue during the first three and a half months of fiscal year 2026/27, exceeding its annual collection target of Rs 9 billion. The significant revenue collection has been attributed to the diversion of cross-border trade to Korala following the closure of other northern border points due to flood-related disruptions at Rasuwagadhi and Tatopani. According to customs officials, imports through the Korala checkpoint reached Rs 26.012 billion during the period, while exports amounted to Rs 286.3 million. The office also reported clearing 6,501 electric vehicles through the checkpoint, alongside essential industrial raw materials, consumer goods and merchandise for the festive season. The Korala crossing has increasingly served as an alternative trade route amid disruptions at other northern border points.
Sudurpaschim CM Bhatta pledges policy support for local startups
Sudurpaschim Province Chief Minister Khagraj Bhatta has pledged to introduce supportive policies and regulations to encourage innovation, entrepreneurship and investment in the province. Speaking at the Sudurpashchim Startup Entrepreneurs Conference held at Kailali Multiple Campus in Dhangadhi, Bhatta urged entrepreneurs to invest in the province, assuring them of a favourable policy environment. Organised by the Sudurpashchim University Incubation Centre under the theme “From Local Potential to Investable Enterprise”, the conference began on Friday and concluded on Saturday. Kailali Multiple Campus Chief Dr Lok Bahadur Bista said the event aimed to identify local business opportunities, strengthen practical skills, promote the commercial use of local resources and explore market potential. He added that the initiative sought to help transform innovative ideas into sustainable businesses across the province.
Madhesh Province introduces procedure to settle audit arrears and recover public dues
The Madhesh Province Cabinet has approved the Madhesh Province Arrears Settlement Procedure, 2026, to address outstanding audit arrears, recover government dues and strengthen financial accountability across provincial public institutions. The procedure, introduced under the Administrative Procedure Act, 2018, classifies government offices into four categories—A, B, C and D—based on the volume of their annual arrears. It also establishes specific settlement targets for each category and provides performance incentives of up to Rs 25,000 for offices that clear outstanding amounts within the stipulated deadlines. Under the new provisions, advances remaining unsettled for more than five years may face legal recovery measures through the Provincial Financial Comptroller Office. These measures include freezing bank accounts and assets and auctioning property. Overdue advances will also attract annual interest of 10 percent. Madhesh Province Finance Minister Yubaraj Bhattarai has directed officials responsible for financial transactions to implement the procedure and meet the prescribed deadlines, emphasising the need for greater financial discipline and accountability.
Gandaki establishes revenue management office to boost internal collections
The Gandaki Province Government has established a Revenue Management Office under the Ministry of Economic Affairs to strengthen internal revenue collection, improve administrative efficiency and enhance coordination among government agencies. Ministry spokesperson and Deputy Secretary Guma Devi Sharma said the new office would begin providing services from the ministry’s premises on Monday. The office will oversee revenue sources including land registration fees, vehicle taxes, entertainment and advertisement taxes, tourism-related revenue and agricultural income taxes. Its responsibilities will also include maintaining taxpayer records, identifying potential revenue sources, preventing revenue leakages and coordinating with local governments. Economic Affairs Minister Jit Bahadur Sherchan said the office would focus on enforcing the Economic Act and expanding the tax base, particularly in response to shortfalls in previous revenue collection targets. The new office will operate with existing personnel from the Revenue Management Division and the Provincial Comptroller Office, without requiring additional financial resources from the provincial government.
Nagdhunga Tunnel introduces toll charges for vehicles from today
Vehicles using the Nagdhunga Tunnel will be required to pay toll charges starting November 1, following the introduction of a new fee structure by the Development Assistance Implementation Division under the Ministry of Physical Infrastructure and Transport. The toll rates have been determined in accordance with decisions of the Road Board Nepal’s Executive Committee and notices published in the Nepal Gazette. Charges vary according to vehicle categories and the direction of travel. Under the new rates, cars, vans, pickups, tractors, microbuses and other light vehicles will be charged Rs 65 when entering Kathmandu and Rs 60 when exiting. Similarly, mini-buses, mini-tippers and trucks will have to pay Rs 115 when entering Kathmandu and Rs 80 when leaving. Buses and trucks with a single rear axle will be charged Rs 260 and Rs 200, respectively. Multi-axle trucks, other heavy vehicles and heavy equipment will face a toll of up to Rs 600 when entering Kathmandu and Rs 250 when exiting.
Pokhara plans Rs 1.52 billion cycling trail linking nine lakes
Pokhara Metropolitan City has moved ahead with a Rs 1.52 billion project to develop an integrated cycling trail and road network connecting all nine lakes in the city. The project aims to promote sustainable tourism by linking scenic lakes, rural settlements and lesser-known recreational destinations through dedicated cycling routes. City officials expect the initiative to encourage visitors to extend their stay in Pokhara by at least two days beyond visits centred primarily on Phewa Lake. The metropolitan city has said the project is part of its broader urban development programme, which includes ongoing projects worth more than Rs 33 billion. The initiative is expected to strengthen Pokhara’s position as a major tourism destination by combining natural conservation, cultural heritage and adventure tourism.
Two pedestrian overpasses completed in Dhanusha at Rs 105 million
Construction of two overhead pedestrian bridges at Mahendranagar Bazaar along the Janakpurdham-Dhalkebar six-lane commercial highway in Dhanusha has been completed, with painting and beautification work underway before they are opened to the public. The project includes three pedestrian overpasses: two at Mahila Bikash Chowk and Sakhuwa Chowk in Kshireshwarnath Municipality and another in Laxminiya Rural Municipality. The total estimated cost of the project is Rs 105 million. The bridges have been constructed to provide safer and more convenient road crossings for pedestrians along the busy highway, particularly students, elderly people and local residents. According to project engineers, each bridge measures 5.6 metres in height, 29.4 metres in length and three metres in width. The structures are expected to reduce the risks faced by pedestrians crossing the highway.
Registration opens for Swiss-Nepal business networking event in Zurich
Registration has opened for a Swiss-Nepal business networking event scheduled to take place in Zurich on November 19, 2026, bringing together Swiss and Nepali businesses working in the digital economy and sustainable tourism sectors. Titled “Swiss-Nepal Business Connect: Scaling 70 Years of Partnership”, the event will be jointly organised by Switzerland Global Enterprise and the Swiss Nepal Chamber of Commerce in collaboration with the Permanent Mission of Nepal to the United Nations. The programme aims to strengthen commercial relations by connecting Swiss business representatives with Nepali companies and industry leaders. It will feature discussions on business and investment opportunities in Nepal’s digital and sustainable tourism sectors, business introductions and a networking reception. The event will run from 4 pm to 8 pm at Switzerland Global Enterprise, Stampfenbachstrasse 85, Zurich. Interested participants must register by November 12 at 6 pm.
Floriculture industry expects Rs 645 million business during Tihar
Nepal’s floriculture industry is expected to generate business worth Rs 645 million during the five-day Tihar festival, with demand for flower garlands projected to reach around 5.1 million units. According to Floriculture Association Nepal (FAN) President Rajesh Bhakta Shrestha, the sector recorded an annual turnover of Rs 3.27 billion in fiscal year 2025/26, a 12 percent increase from Rs 2.94 billion in the previous fiscal year. Commercial flower farming currently covers approximately 250 hectares across 54 districts, involving more than 1,145 entrepreneurs and providing around 50,000 direct and indirect jobs. Nepal has achieved self-sufficiency in globe amaranth production and is expected to export around 200,000 garlands to international markets during the festival. However, the country is likely to import approximately 500,000 marigold garlands to meet domestic demand following crop damage caused by floods between September 25 and 27. Meanwhile, flower imports increased by 40.86 percent, reaching Rs 282.3 million, while exports stood at just Rs 1.5 million.
Rautahat cancels contracts for three stalled infrastructure projects
The Ministry of Infrastructure Development has cancelled construction contracts for three long-delayed infrastructure projects in Rautahat district after contractors failed to make progress on the works. According to notices issued by the Road Division Office in Chandranigahpur, contracts awarded to Papu/Shivashankar JV for the construction of bridges over the Lamaha Khola and Laukaha Khola along the Chandranigahpur-Gaur highway have been terminated. The two bridge projects were initiated in 2017, with their deadlines extended several times until 2023. However, the contracts were cancelled after no physical progress was recorded. The contract for upgrading the Dhansar-Bagmati section of the Mahendra Highway has also been terminated. Authorities have initiated a fresh procurement process to complete the remaining work and address longstanding public concerns over the delayed projects.
Content creators from seven countries arrive for Nepal tourism campaign
Travel content creators, videographers and photographers from seven countries have arrived in Nepal to take part in an international tourism promotion campaign organised in collaboration with the Nepal Tourism Board and TikTok. The participants represent France, Portugal, Tunisia, South Korea, the United Arab Emirates, Bangladesh and Sri Lanka. They will produce digital content showcasing Nepal’s natural beauty, cultural heritage and adventure tourism opportunities. The campaign will cover major tourist destinations, including Pokhara, Chitwan and Bardiya, with the aim of highlighting both established attractions and emerging tourism destinations. The initiative builds on a partnership established in August 2025, followed by digital content creator workshops. Organisers expect the campaign to expand Nepal’s international visibility through social media, promote authentic travel experiences and encourage more foreign visitors.
11th Nepal International Trade Fair to be held from November 18
The 11th edition of the Nepal International Trade Fair will be held in Kathmandu from November 18 to 22, with the participation of domestic and international businesses. Organised by the private sector in cooperation with the government, the event aims to promote international trade, expand export opportunities and strengthen commercial ties. More than 200 stalls will be set up to showcase a range of products and services, including export-oriented goods identified under the Nepal Trade Integration Strategy. These include cardamom, tea, ginger, medicinal and aromatic herbs, handicrafts and pashmina. Dedicated exhibition spaces will also feature electric vehicles and domestic manufacturing products. Organisers expect more than 100,000 visitors, including international buyers from SAARC countries, China, South Korea and Japan. The fair is expected to help attract foreign investment and technology, promote Nepali products in international markets and improve the country’s export competitiveness.
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