KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest economic and institutional developments show that the Bhote Koshi floods have evolved from a humanitarian emergency into a broad economic disruption, putting pressure on Nepal’s financial system, infrastructure, energy sector and supply chains. The government has mobilized substantial resources, with Rs 7.08 billion deposited in the disaster relief fund, while additional contributions from public institutions, banks, energy companies and employees demonstrate growing institutional participation in relief efforts.
The insurance sector is facing a potentially significant financial burden, with preliminary claims exceeding Rs 25.87 billion from 583 policies. This indicates that the disaster’s economic costs could rise substantially as assessments progress, particularly given the extensive damage to hydropower projects, bridges and telecommunications infrastructure.
Financial authorities have responded by prioritizing continuity of essential services. Nepal Rastra Bank’s decision to relax documentation requirements and allow affected microfinance institutions to relocate or merge branches should help maintain financial access in disaster-hit communities.
Supply disruptions remain another major concern. Highway damage has constrained LPG distribution, prompting authorities to prioritize household consumers and introduce alternative transport arrangements. The deployment of 200 trucks daily reflects an attempt to prevent shortages and contain market distortions.
Meanwhile, NEPSE’s 15.44-point rise suggests that investor sentiment has remained relatively resilient despite the disaster. However, the broader economic picture remains uncertain, with infrastructure losses, insurance liabilities, disrupted trade routes and reconstruction costs likely to weigh on economic activity in the coming months.
NEPSE gains 15.44 points as turnover reaches Rs 2.942 billion
The Nepal Stock Exchange (NEPSE) index rose 15.44 points to 2,538.11 on Wednesday, while daily turnover also increased slightly from the previous session. Shares worth Rs 2.942 billion changed hands, compared with Rs 2.906 billion on Tuesday. Upakar Laghubitta Bittiya Sanstha recorded the largest gain, with its share price rising 11.87 percent. Upper Mailung Khola Hydropower and Aatmanirbhar Laghubitta Bittiya Sanstha also gained more than 10 percent each. Sanima Middle Tamor Hydropower recorded the highest turnover at Rs 141.7 million. NRN Infrastructure and Development recorded turnover of more than Rs 125 million, while Solu Hydropower saw transactions exceeding Rs 120 million. Of the 13 sub-indices traded, 11 advanced and two declined. The hydropower sub-index recorded the highest gain, rising 0.95 percent.
Gold traded at Rs 297,300 and silver at Rs 4,580
Gold and silver prices fell sharply in the local market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold fell by Rs 8,800 per tola (11.66 grams) to Rs 297,300 per tola. The price of silver declined by Rs 185 per tola to Rs 4,580. On Tuesday, hallmark gold was traded at Rs 306,100 per tola, while silver was priced at Rs 4,765 per tola.
Govt allocates funds to 15 local units affected by Bhote Koshi floods
The government has disbursed funds to 15 local government units in five districts affected by the Bhote Koshi floods, according to the Office of the Prime Minister and Council of Ministers. Following the initial release of Rs 10 million each to Rasuwa and Nuwakot and Rs 5 million to Dhading, the National Disaster Risk Reduction and Management Authority distributed an additional Rs 135 million in two installments on August 28 and September 1. In Rasuwa, Uttargaya received Rs 15 million, Gosainkunda Rs 20 million, Kalika Rs 6 million and Aama Chhodhingmo Rs 4 million. In Nuwakot, Bidur received Rs 30 million, Belkotgadhi Rs 15 million, Kispang Rs 5 million and Tarkeshwar Rs 10 million. In Dhading, Galchhi received Rs 6 million, Siddhalek Rs 4 million, Gajuri Rs 4 million and Benighat Rorang Rs 4 million. Gandaki Rural Municipality in Gorkha received Rs 4 million, while Devghat and Aabukhaireni in Tanahun received Rs 4 million each.
Insurance Authority records over Rs 25 billion in preliminary flood claims
Preliminary insurance claims filed with various insurance companies following the devastating floods along the Bhote Koshi and Trishuli rivers had reached Rs 25.873 billion as of Monday, according to the Nepal Insurance Authority. The claims, covering 583 insurance policies filed through August 31, are led by The Oriental Insurance Company, which reported claims worth Rs 13.042 billion from eight policies. United Ajod Insurance followed with Rs 4.974 billion, while Sanima GIC Insurance reported Rs 2.102 billion. Siddharth Premier Insurance and Shikhar Insurance each reported claims exceeding Rs 1.8 billion, with additional claims filed under microinsurance and health insurance schemes.
PM Shah outlines flood response as Rs 7.08 billion deposited in relief fund
Prime Minister Balendra Shah has defended the government’s response to the Bhote Koshi floods, telling the Federal Parliament on Wednesday that 11,993 people have been rescued, 1,114 bodies recovered and efforts are continuing to locate 3,916 missing people. Briefing Parliament on the disaster that began in Rasuwa on August 26, Shah said 13,295 security personnel and 69 flights had been mobilized for rescue operations. He said Rs 7.08 billion had been deposited in the disaster relief fund, of which Rs 1 billion was released to the National Disaster Risk Reduction and Management Authority. Another Rs 67.5 million was distributed among 15 local governments, while USD 6.1 million was received in contributions. The government also released Rs 10 million each for Rasuwa and Nuwakot and Rs 5 million for Dhading. According to Shah, the disaster affected eight operational and four under-construction hydropower projects, disrupting 431.1 megawatts of generation capacity. He said 95 percent of telecommunications services had been affected and 30 satellite phones were deployed to maintain communication. The floods also damaged 48 suspension bridges and swept away 31 motorable bridges. Shah said Nepal had received support from India, Pakistan, Sri Lanka, Bangladesh, China, the United States and other countries.
NRB directs financial institutions to ease services for flood victims
The Nepal Rastra Bank (NRB) has instructed banks and financial institutions to relax documentation requirements for customers who lost essential financial documents and devices in the floods in Rasuwa and surrounding districts. The directive covers customers who lost items such as cheque books, debit and credit cards, mobile phones and identification documents. To ensure uninterrupted access to banking services, institutions have been instructed to verify customers through alternative records, including internal databases, specimen signatures and archived photographs, instead of requiring the lost physical documents.
NRB revises rules on relocation of microfinance branches
The Nepal Rastra Bank (NRB) has revised its regulations to allow licensed microfinance institutions affected by the August 26 floods to relocate or merge damaged branches without obtaining prior approval from the central bank. Under the revised provisions, microfinance institutions operating in disaster-affected areas can move branches to alternative locations or neighboring offices to maintain financial services. However, they must notify NRB within seven days of completing the relocation.
Transport operators to deploy 200 trucks daily for LPG supply to Valley
Transport operators will deploy 200 trucks daily from Thursday, September 3, to transport LPG cylinders to the Kathmandu Valley through alternative routes. The arrangement was reached among the Nepal LP Gas Industry Association, Nepal Oil Corporation and transport entrepreneurs to address shortages caused by the closure of the Naubise-Mugling road. Road inspections found that heavy LPG bullet tankers could not safely use the narrow Kanti Lokpath and Tribhuvan Rajpath routes. Under the alternative arrangement, empty cylinders will be transported to industrial centres in Hetauda, Chitwan, Nawalparasi and Birgunj for refilling before being returned to the Valley using medium-duty trucks. A fixed two-way freight charge has been established, ranging from Rs 80,000 from Hetauda to Rs 98,000 from Nawalpur, to discourage black marketing.
NOC prioritizes household LPG supply amid road disruptions
The Nepal Oil Corporation has prioritized the distribution of liquefied petroleum gas (LPG) to households amid supply disruptions caused by landslides along major highways. The corporation has directed commercial consumers, including hotels and restaurants, to arrange their own transportation from regional LPG bottling plants. Highway disruptions along the Naubise-Mugling corridor have prevented LPG bullet tankers from reaching 18 of the 22 bottling plants supplying the Kathmandu Valley. Authorities said commercial sales have not been banned but will remain secondary to meeting household cooking gas demand until transportation routes return to normal.
Household consumers will receive priority, while commercial users will be responsible for arranging transportation from bottling plants.
New alternative routes announced for Kathmandu-Hetauda traffic
Authorities have introduced alternative routes and traffic schedules for vehicles traveling between Kathmandu and Hetauda after erosion caused by the Trishuli River disrupted traffic along the Prithvi Highway. The routes were determined in coordination with the Kathmandu Valley Traffic Police Office and the District Administration Office, Makwanpur, taking into account monsoon conditions and the current state of the roads. According to Kathmandu Valley Traffic Police Office spokesperson and Superintendent of Police (SP) Naresh Raj Subedi, small vehicles traveling from Kathmandu to Hetauda will use the Pharping-Phakhel-Kulekhani-Bhimphedi route. Those traveling from Hetauda to Kathmandu will use the Bhimphedi-Kulekhani-Sisneri-Dakshinkali route. Large and freight vehicles traveling from Kathmandu to Hetauda will use the Chapagaun-Bhattedanda-Thingan route and must cross the Thingan checkpost by 6 p.m. Large and freight vehicles traveling from Hetauda to Kathmandu will use the Bhainse-Palung-Tistung-Naubise route.
Ministry of Finance staff contribute over Rs 1.8 million to disaster fund
The Ministry of Finance has expressed condolences to the families of domestic and foreign nationals who lost their lives in the devastating floods in Rasuwagadhi, the Bhote Koshi River and downstream areas on August 26, 2026. The ministry also wished a speedy recovery to those injured in the disaster. Following a secretarial decision made on August 27, ministry employees contributed Rs 1.8 million to support search, rescue and relief operations. The amount was deposited directly into the Prime Minister’s Disaster Relief Fund.
Energy sector agencies contribute additional Rs 21.2 million to disaster relief fund
Energy sector agencies have contributed an additional Rs 21.2 million to the Prime Minister’s Disaster Relief Fund for disaster rescue, relief and rehabilitation. The funds were handed over to Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha on Wednesday. The contribution includes Rs 10 million from the Electricity Regulatory Commission, Rs 10.1 million from the Hydroelectricity Investment and Development Company and Rs 1.1 million from Green Ventures Limited. The contribution follows Rs 130 million provided a day earlier by member companies of the Independent Power Producers’ Association, Nepal. Minister Shrestha commended the energy sector for demonstrating social responsibility and solidarity despite the sector itself being affected by the disaster. He said cooperation between the government and private sector would strengthen ongoing rescue and relief efforts.
EPF provides Rs 25 million for Bhote Koshi flood relief and rescue
The Employees Provident Fund (EPF) has contributed Rs 25 million to the Prime Minister’s Disaster Relief Fund to support the rescue and relief of people affected by the devastating floods in the Bhote Koshi and Trishuli rivers in Rasuwa on August 26. The contribution was made under the EPF’s corporate social responsibility initiative. EPF Chairman Bhupal Baral, Administrator Bijay Kumar Shrestha and senior officials handed over a cheque for Rs 25 million to Finance Minister Swarnim Wagle at the Ministry of Finance. Minister Wagle expressed gratitude to the EPF for its financial support during the disaster. Baral said the EPF has been providing assistance during national crises, including natural disasters, earthquakes and epidemics, as part of its social responsibility. Shrestha said coordinated support from all sectors was essential for the rescue, relief and rehabilitation of affected people and pledged continued assistance during disasters and other national emergencies.
Chamber of Commerce establishes facilitation desk for disaster supply chains
The Nepal Chamber of Commerce has established a facilitation desk at its secretariat in Jamal to address logistical disruptions and assist businesses facing difficulties in transporting essential goods due to highway closures. The desk will focus on disruptions along the Prithvi Highway and other major road networks. It will coordinate with government authorities, local administrations, security agencies, businesses and transport operators to resolve transit problems and facilitate the movement of relief supplies and essential cargo.
Over 40 tons of emergency relief supplies arrive from Samaritan’s Purse
More than 40 metric tons of emergency humanitarian supplies provided by US-based organization Samaritan’s Purse have arrived in Kathmandu to support communities affected by the Bhote Koshi floods. The shipment includes water filtration systems, tarpaulins, blankets, hygiene kits and solar lamps. The supplies are expected to reach 2,600 vulnerable households through local partner organizations. The US Embassy said it is coordinating with the Government of Nepal and humanitarian partners to provide life-saving assistance to communities affected by the disaster.
Prabhu Bank contributes Rs 21.1 million to disaster relief fund
Prabhu Bank has provided Rs 21.1 million to support search, rescue, relief and rehabilitation efforts for people affected by the catastrophic Bhote Koshi floods in Rasuwa. The contribution was deposited into the Prime Minister’s Disaster Relief Fund to support communities affected by the August 26 flash floods along the Bhote Koshi and Trishuli river corridors. Prabhu Bank Chief Executive Officer Suman Sharma handed over the contribution to Finance Minister Swarnim Wagle at a program held at the Ministry of Finance on September 1. Bank Chairman Kishor Jung Karki, directors Raju Paudel and Ambika Sharma Lamichhane and other officials attended the ceremony. The bank said the contribution was made under its corporate social responsibility initiative. It also expressed condolences to the families of those who lost their lives in the disaster and wished for the speedy recovery of those injured and missing.
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