KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The reports present a mixed picture of Nepal’s economic and development landscape, highlighting contrasting trends in financial markets, public administration, infrastructure and productive sectors. The decline in the NEPSE index and trading turnover indicates continued weakness in the share market, while rising gold and silver prices reflect volatility in the domestic precious metals market. Meanwhile, banks are shifting lending towards share-backed, vehicle and high-value housing loans amid slower real estate lending, suggesting changing credit preferences.
The government’s initiatives to regulate LPG distribution, consolidate gas industries, strengthen festive market monitoring and introduce tax incentives reflect efforts to improve market management, consumer protection and economic accountability. However, uncertainty surrounding Nepal Airlines’ Saudi Arabia operations highlights institutional and administrative challenges. In the productive sectors, expanding irrigation facilities and agricultural subsidies demonstrate efforts to strengthen farming and rural livelihoods. Nevertheless, the failure of the Biosed 301 paddy variety raises concerns about seed quality control and agricultural risk management.
Tourism remains encouraging, with international arrivals increasing by 3.4 percent in October. However, delayed infrastructure projects in Karnali and abandoned bridges underline persistent implementation challenges. Meanwhile, railway recruitment and improved border security indicate continued investment in public services and institutional capacity.
Overall, Nepal’s economic outlook reflects emerging opportunities alongside structural weaknesses, emphasizing the need for stronger governance, effective policy implementation, market stability and sustainable development.
NEPSE drops 32.65 points as market turnover declines to Rs 7.18 billion
The Nepal Stock Exchange (NEPSE) index lost 32.65 points on Monday, closing at 2,657 points on the first trading day of the week. The market remained in negative territory throughout the trading session. Total turnover also declined to Rs 7.18 billion, down from Rs 8.89 billion recorded in the previous session. Of the companies traded, share prices of 252 declined, while 21 registered gains and six remained unchanged. All sectoral indices ended the session lower, with the development bank sub-index suffering the largest loss of 1.88 percent. Among individual companies, Beni Hydropower emerged as the top gainer, with its share price climbing 15 percent. Makar Jitumaya Suri Hydropower rose by 8.77 percent, while Mandakini Hydropower gained 5.47 percent.
Gold rises by Rs 2,300 to Rs 274,300 per tola; silver reaches Rs 3,720
Gold and silver prices increased in the domestic market on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 2,300 per tola (11.66 grams) to reach Rs 274,300. On Sunday, gold had declined by Rs 8,300 to Rs 272,000 per tola. The latest increase follows a rise of Rs 5,000 over the preceding four days, after gold prices plunged by Rs 11,700 on October 25. Silver prices also increased by Rs 70 per tola to Rs 3,720. The metal had dropped by Rs 175 to Rs 3,650 per tola on Sunday. According to the association, the highest gold price ever recorded in the Nepali market was Rs 339,300 per tola on January 29, 2024, following a single-day increase of Rs 20,500. Similarly, silver reached its record high of Rs 7,505 per tola on the same date. Its largest single-day decline was recorded on February 1, 2024, when the price dropped by Rs 1,565 per tola.
NOC proposes mandatory 30 percent commercial quota for LPG industries
Nepal Oil Corporation (NOC) has proposed requiring liquefied petroleum gas (LPG) bottling industries to purchase 30 percent of their monthly import quotas at commercial rates. The proposal was discussed during a coordination meeting between NOC officials and representatives of the Nepal LP Gas Industry Association as part of efforts to regulate LPG distribution and introduce a separate commercial supply system. Under the proposed arrangement, LPG bottling plants would be required to collect a designated portion of their monthly quotas at commercial prices until separate cylinder sizes for commercial use are introduced in the domestic market. The framework also calls for maintaining clear brand segregation when distributing LPG for non-household purposes. Industry representatives have agreed to discuss the proposal internally and submit their formal feedback to the concerned authorities within a week.
NOC moves to merge LPG industries to streamline distribution
Nepal Oil Corporation (NOC) has initiated a process to consolidate liquefied petroleum gas (LPG) industries operating under different company names and brands. According to NOC Director Binit Mani Upadhyay, the proposed merger initiative aims to make LPG distribution more systematic, improve operational efficiency and protect consumer interests. The initiative is included in Point 32 of the corporation’s approved policy and programme for the fiscal year 2026/27. As part of the process, NOC has sent formal letters to all operating LPG industries, asking them to prepare merger action plans and take necessary steps towards consolidation. The corporation believes that bringing the country’s 58 LPG brands under a more organized structure will simplify the distribution and sales system while making services more convenient for consumers and strengthening consumer protection.
Consumers win Rs 1 million in tax incentive draw after spending just Rs 450
A consumer who purchased goods worth just Rs 450 has won the grand prize of Rs 1 million under the government’s Taxpayer Incentive Prize Scheme. The winners for the first 15 days of the Nepali month, covering October 18 to November 1, were selected through a lottery draw held at the Ministry of Finance on Monday. Cricketers announced the winning coupon numbers during the event. Under the scheme, one consumer was awarded the top prize of Rs 1 million, while 15 other consumers received Rs 100,000 each. The additional winners were selected through daily draws, with one consumer receiving a prize for each of the 15 days covered by the scheme.
Govt intensifies festive market monitoring, vows action against black marketing
The government has decided to strengthen market monitoring during the festive season and instruct concerned ministries to take stringent action against black marketing and other irregularities. The decisions were made during a regular meeting of government secretaries chaired by Chief Secretary Govinda Bahadur Karki at the Office of the Prime Minister and Council of Ministers on Monday. The meeting also decided to assess the effectiveness and efficiency of public service delivery and ensure that government agencies provide services in a timely manner. The monthly meeting, generally held on Mondays under the leadership of the chief secretary, took place this week following the Dashain holidays. According to a government secretary, participants also discussed various contemporary issues.
Government offices switch to winter schedule from Monday
Government offices across the country have adopted their winter operating schedule from Monday, November 2, with working hours reduced by one hour. Under the revised schedule, government offices will operate from 9 am to 4 pm until January 29, 2027, replacing the previous schedule of 9 am to 5 pm. The seasonal adjustment has been introduced in view of shorter daylight hours during winter. The revised working hours will apply to government ministries, public administrative offices, regional secretariats and other civil service institutions across the country. Government offices will continue to operate five days a week under the existing administrative arrangement.
Nepal Railway Board opens applications for locomotive pilot positions
The Nepal Railway Board has invited applications from qualified Nepali citizens for locomotive pilot (train driver) positions. The vacancy announcement was published on Monday, November 2, with interested candidates required to submit their applications and supporting documents within 35 days of publication. Applicants must provide their citizenship certificates, academic qualification documents, valid train driving licences and relevant professional training certificates. The recruitment drive is aimed at developing domestic technical manpower and expanding the pool of qualified railway operators to support the country’s growing railway services. The board has emphasized the importance of meeting the required technical and professional standards to ensure safe and reliable railway operations.
Banks shift lending focus towards share-backed and vehicle loans amid real estate slowdown
Lending by banks and financial institutions to the real estate sector has declined, while credit extended against shares and for vehicle purchases has continued to increase, according to Nepal Rastra Bank (NRB) data. By the end of Bhadra, outstanding loans to the real estate sector stood at Rs 270.72 billion, down Rs 770 million from Rs 271.50 billion recorded during the corresponding period last year. President of the Nepal Land and Housing Developers’ Federation Bishnu Prasad Ghimire attributed the slowdown to low property valuations and the policy requirement limiting loans to 50 percent of the property’s value. In contrast, margin lending against shares increased by Rs 22 billion to reach Rs 167.85 billion, while hire-purchase loans rose by Rs 13.5 billion to Rs 142.91 billion. Personal housing loans exceeding Rs 30 million also recorded significant growth, increasing by Rs 54 billion to Rs 481.68 billion from Rs 427.33 billion. Commercial banks accounted for a substantial share of lending in these categories, providing Rs 144.46 billion in share-backed loans, Rs 128.67 billion in hire-purchase loans and Rs 375.73 billion in high-value housing loans.
Major irrigation systems operate at full capacity during paddy season
Major irrigation systems across the country are operating to ensure a regular supply of water to farmers during the paddy cultivation season, according to the Department of Water Resources and Irrigation. The Sunsari-Morang Irrigation Project is currently providing irrigation facilities to 68,000 hectares of farmland, including 55,000 hectares through surface irrigation. Similarly, the Rajapur Irrigation Management Office is serving 14,138 hectares. Irrigation canals under the Kamala Irrigation System, Bheri Corridor and Large Dang Valley Irrigation Project are also operating continuously to meet farmers’ water requirements. Department Director General Dinesh Rajauria said construction and maintenance work had been scheduled for after the harvest to avoid disrupting irrigation during the cultivation season. He emphasized that ensuring a reliable water supply to farmers remained the department’s primary concern during the paddy season. Meanwhile, additional irrigation facilities have been extended to 35 hectares in Pokhara, 10 hectares in the Bheri Corridor and three hectares in Biratnagar. Including the Sikta and Babai irrigation projects, approximately 200 hectares of additional land had been brought under irrigation by mid-September, according to the department.
Nepal Airlines’ Saudi Arabia operations face uncertainty as GSA contract expires
Nepal Airlines’ flight operations in Saudi Arabia face uncertainty after the contract of its general sales agent (GSA) expired without renewal, while the process of appointing a new agent has yet to make progress. Al Faisaliah Modern Aviation Company has been providing sales and other ground-handling services to Nepal’s national flag carrier in Saudi Arabia. Its five-year agreement expired on July 31. However, Nepal Airlines has neither renewed the existing contract nor moved forward with selecting a new service provider. The company has informed the national flag carrier through email that it will continue providing services until the end of November but will discontinue them from December 1. A GSA is responsible for local ticket sales, marketing, legal formalities, coordination with regulatory authorities and assistance with staff visa arrangements. Saudi Arabia is a major destination for Nepali migrant workers, with an estimated 500,000 Nepalis currently employed there. Nepal Airlines operates one flight per week to the country.
Nepal welcomes 132,814 international visitors in October
Nepal received 132,814 international visitors in October 2026, marking a 3.4 percent increase compared to the 128,443 arrivals recorded in the same month last year, according to the Nepal Tourism Board (NTB). The United States topped the list of source markets with 17,437 visitors, followed by India with 12,097, China with 11,695, the United Kingdom with 9,385 and Australia with 9,352. In terms of regional arrivals, Europe accounted for the largest share, with 39,877 visitors, representing 30 percent of total arrivals. Asia (Other) ranked second with 27,040 visitors (20.4 percent), followed by South Asia (SAARC) with 24,053 (18.1 percent) and the Americas with 21,270 (16 percent). Compared to October 2025, arrivals from Europe increased by 163.2 percent, while Oceania recorded growth of 48.9 percent. Visitor numbers from the Americas and Asia (Other) also rose by 29.6 percent and 16.9 percent, respectively. However, arrivals from South Asia declined by 17.2 percent, while the Middle East recorded a 34.2 percent drop. Visitor numbers from Africa fell by five percent, while arrivals from other markets decreased by 9.1 percent.
Minister Pratibha Rawal visits Jhapa to discuss land and cooperative issues
Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal arrived in Jhapa on Monday to discuss land management and cooperative-related issues with district authorities and local representatives. Rawal was welcomed at Chandragadhi Airport by local representatives, the chief district officer, security officials and other government representatives. During her visit, she held discussions with officials from the District Land Problem Resolution Committee, Survey Office and Land Revenue Office, as well as chief administrative officers of local government units. She is also scheduled to meet people affected by cooperative-related problems and discuss the concerns of landless people and informal settlers. The discussions will cover grievances raised by cooperative victims and other outstanding issues related to land management. The visit is intended to gather feedback from local stakeholders and review the ministry’s ongoing initiatives, plans and measures to address land and cooperative-related challenges.
APF seizes illegal goods worth Rs 1.332 billion in seven months
The Armed Police Force (APF) seized illegal goods and materials worth more than Rs 1.332 billion from various border areas across the country between March 27 and October 29, 2026, according to information released by the Prime Minister’s Office. During the seven-month period, the APF recovered 17 illegal firearms and arrested eight people in connection with illegal arms-related activities. The force also arrested 421 people allegedly involved in drug trafficking and seized various narcotic substances, including marijuana, hashish, opium, brown heroin, tablets and injectable drugs. Similarly, 167 people at risk of human trafficking were rescued, including 118 children, while 91 individuals allegedly involved in trafficking-related activities were arrested. As part of efforts to prevent encroachment along the international border, the APF removed 237 structures from 35 locations along the no-man’s-land. The force also cleared agricultural activities from 50,442.52 square metres of land at 17 locations and cleaned 94.588 kilometres of border areas across 204 locations. In addition, the APF conducted 2,806 public awareness programmes. Its 141 help desks provided services to 349,908 people, while 13 tourist assistance desks served 10,654 visitors.
Karnali identifies 19 infrastructure projects as problematic due to delays
The Karnali Province Ministry of Physical Infrastructure and Urban Development has identified 19 major infrastructure projects across nine districts as problematic due to prolonged construction delays and inadequate progress. The projects, spread across districts including Jajarkot, Kalikot, Surkhet, Dailekh, Dolpa, Humla and Mugu, have faced setbacks attributed to contractor negligence and administrative delays. The list includes projects ranging from vehicle driving trial centres initiated in fiscal year 2015/16 to regional road corridors awarded under contracts as recently as 2023. The projects involve substantial public investment, with individual contract values ranging from approximately Rs 130 million to Rs 490 million. The provincial authorities have announced plans to terminate contracts with non-performing contractors and initiate fresh procurement processes to complete the stalled infrastructure projects.
Sudurpashchim allocates millions in agricultural and livestock subsidies
The Sudurpashchim Province government has allocated substantial funds for agricultural and livestock subsidies under its budget for the fiscal year 2026/27, aiming to boost farm productivity and promote commercial agriculture. The Ministry of Land Management, Agriculture and Cooperatives has earmarked Rs 60 million for buffalo value chain development and Rs 65 million for commercial sheep farming in Bajura, Bajhang and Darchula. The provincial budget, approved on October 14, also includes allocations for chemical fertilizer subsidies, livestock insurance premiums and agricultural disaster relief. Funding has additionally been set aside to support cooperative-led food processing and marketing infrastructure. The programmes are intended to strengthen agricultural production, encourage livestock farming and expand income-generating opportunities in rural communities.
Chitwan administration orders destruction of illegally farmed catfish
The District Administration Office in Chitwan has directed fish farm operators to immediately destroy prohibited catfish species following inspections that uncovered illegal farming and unhygienic feeding practices. Monitoring teams led by district administrative officials found prohibited fish being raised and sold commercially at several fish farms in Bharatpur Metropolitan City. The inspections also revealed that some operators were using rotten meat and spoiled eggs as fish feed, raising concerns about hygiene and public health. Authorities have warned that the release of prohibited exotic fish into natural water bodies could threaten native aquatic biodiversity and the survival of local fish species. The administration has instructed concerned operators to comply with the destruction order and warned that legal action will be taken against those involved in illegal farming, breeding or commercial distribution of prohibited species.
Jhapa administration orders crackdown on imported and plastic flowers
The District Administration Office in Jhapa has directed security agencies to seize illegally imported flowers and prohibited plastic floral decorations as part of efforts to protect domestic flower producers during the festive season. The administration has instructed security personnel to monitor the sale and distribution of imported natural flowers entering the district through the open border, as well as the use and sale of prohibited artificial plastic flowers. Domestic flower production, particularly marigold and globe amaranth, has expanded across Mechinagar, Birtamod, Damak, Shivasatakshi, Kankai and Buddhashanti. Authorities said the influx of unauthorized flowers from neighbouring areas had affected local growers by increasing competition in the domestic market. The administration has warned that legal action will be taken against traders found storing or selling prohibited plastic flowers and unauthorized imported floral products. The move is aimed at promoting locally grown flowers and supporting domestic farmers during festival celebrations.
Himalayan Laghubitta proposes 5 percent dividend for shareholders
Himalayan Laghubitta Financial Institution has proposed distributing a 5 percent dividend to its shareholders from the earnings of the previous fiscal year. Under the proposal, the microfinance institution plans to distribute 4.75 percent in bonus shares and 0.25 percent in cash to cover applicable tax liabilities. The dividend proposal has been submitted to Nepal Rastra Bank (NRB) for regulatory approval. Following clearance from the central bank, the proposal will be presented at the institution’s upcoming annual general meeting (AGM) for final endorsement. The dividend will be distributed to eligible shareholders after completion of the required approval procedures.
Unilever Nepal, RSDC Laghubitta and Makar Jitumaya Suri propose dividends
Three companies listed on the Nepal Stock Exchange (NEPSE) have announced dividend proposals from their earnings for the previous fiscal year. Unilever Nepal has proposed a cash dividend of Rs 1,540 per share. The company has announced a book closure period from November 25 to December 9, meaning shareholders must hold the company’s shares by November 24 to qualify for the dividend. The company’s shares are currently trading at Rs 49,150 per share, compared to Rs 1,842 recorded last year. Similarly, RSDC Laghubitta has proposed a 9.40 percent cash dividend, subject to approval from Nepal Rastra Bank (NRB) and endorsement by its upcoming annual general meeting (AGM). Meanwhile, Makar Jitumaya Suri Hydropower has proposed distributing a 13 percent bonus share dividend along with a 0.684 percent cash dividend to cover applicable tax liabilities. This marks the company’s first dividend proposal since its listing on the stock exchange in 2023.
Madi farmers face heavy losses as Biosed 301 paddy variety fails
Farmers in Madi Municipality of Chitwan have suffered significant losses after the newly introduced Biosed 301 paddy variety failed to produce viable grain during the harvest season. The variety was cultivated on approximately 100 hectares of farmland after distributors reportedly sold around 3,000 kilograms of its seeds. However, farmers said their crops were severely affected by blast disease, while many plants developed white, sterile panicles and empty grains. The crop failure persisted despite farmers applying pesticides and following recommended farming practices. According to agricultural extension officials, farmers in several wards harvested virtually no marketable grain or straw fodder from the affected fields. Following complaints from farmers, concerned agricultural authorities have begun field inspections and damage assessments. Investigations have also been directed towards provincial seed quality control authorities to determine whether the failure was linked to seed quality.
Contracts for two abandoned bridges over Budhiganga and Thulisanghu cancelled
Construction contracts for two long-delayed bridges over the Budhiganga River and Thulisanghu Stream have been cancelled following years of stalled work and contractor failure to meet project deadlines. The two bridges were originally awarded to Bikoi Builders under a single package agreement in early 2021, with a combined contract value of Rs 162.1 million and a completion deadline of three years. However, construction remained largely stalled, prompting authorities to initiate action against the contractor, including recommendations for blacklisting. The disputes were subsequently addressed through legal proceedings in 2026, paving the way for the cancellation of the contracts and the initiation of a new construction process through alternative implementing agencies. Authorities have emphasized the need to expedite the projects to restore essential connectivity and reduce transportation difficulties and safety risks faced by local residents.
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