KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The provided text presents a broad overview of Nepal’s economic, financial, disaster-response and agricultural situation. Financial markets showed moderate improvement, with the NEPSE index rising 4.66 points and turnover increasing to Rs 3.465 billion, while gold and silver prices recorded substantial gains. Foreign direct investment stock also increased by 2.1 percent to approximately Rs 340 billion, although infrastructure, regulatory and land-acquisition challenges continue to constrain wider investment.
Monetary authorities are actively managing liquidity, with Nepal Rastra Bank absorbing Rs 18 billion through a 90-day instrument. At the same time, proposed amendments to the Citizen Investment Trust Act indicate efforts to expand institutional investment into infrastructure, private equity and venture capital.
The most significant theme, however, is the continuing impact of the Bhote Koshi floods. Government agencies, businesses and international partners are mobilizing substantial resources for rescue, relief and reconstruction. Insurance claims have already reached Rs 25.873 billion and could exceed Rs 50 billion, highlighting the disaster’s enormous economic cost. Infrastructure, particularly hydropower, roads and electricity networks, has suffered serious damage.
Meanwhile, alternative LPG distribution arrangements have prevented immediate shortages, while Nepal-India power trade cooperation signals longer-term economic potential. However, fertilizer shortages in Banke threaten rice productivity, demonstrating persistent challenges in agricultural supply chains. Overall, Nepal’s economy shows signs of resilience, but disaster-related losses and structural constraints remain major concerns.
NEPSE gains 4.66 points as turnover reaches Rs 3.465 billion
The Nepal Stock Exchange (NEPSE) index climbed 4.66 points on Thursday to close at 2,542.77, extending its recent modest upward movement. The Sensitive Index, which tracks large-cap companies, increased by 0.31 points to 449.50. The Float Index gained 0.15 points to reach 174.35, while the Sensitive Float Index rose 0.12 points to 151.73. A total of 12,163,763 shares changed hands for Rs 3.465 billion. This compares with a turnover of Rs 2.942 billion recorded on Wednesday. Nine of the 13 sub-indices closed higher, while four declined. Share prices of 145 companies increased, 123 declined and 10 remained unchanged. Win Nepal Laghubitta Bittiya Sanstha, Chirkhwa Hydropower Company and Asha Laghubitta Company were among the gainers, while Pure Energy, Aatmanirbhar Laghubitta Company and Central Finance Company were among the decliners.
Gold climbs Rs 7,600 to Rs 304,900 per tola
Gold and silver prices rose sharply in the domestic market on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold increased by Rs 7,600 per tola, equivalent to 11.66 grams, to reach Rs 304,900. Gold had traded at Rs 297,300 per tola on Wednesday. Silver also recorded a significant increase, rising Rs 145 per tola to Rs 4,725. It was priced at Rs 4,580 per tola in the previous trading session.
Foreign investment stock reaches Rs 340 billion in 2024/25
Nepal’s stock of foreign direct investment (FDI) stood at around Rs 340 billion at the end of fiscal year 2024/25, registering a 2.1 percent increase from the previous fiscal year, according to Nepal Rastra Bank. During the year, gross FDI inflows amounted to Rs 12 billion, while Rs 4.7 billion was repatriated, resulting in a net inflow of Rs 7.5 billion. Reinvested earnings and fresh equity investments contributed to the growth, with paid-up capital accounting for the largest portion of the overall FDI stock. The industrial sector continued to receive the largest share of foreign investment, particularly in manufacturing, electricity and energy. Within the services sector, financial and insurance activities attracted the highest investment. Bagmati Province accounted for the largest share of FDI, while India remained the biggest source of foreign investment, followed by China, Ireland, Australia and Singapore. Despite the increase in investment, inadequate infrastructure, regulatory delays and difficulties in acquiring land continue to pose challenges to expanding foreign investment in other parts of the country.
NRB absorbs Rs 18 billion in excess liquidity through 90-day instrument
Nepal Rastra Bank (NRB) has absorbed Rs 18 billion from the financial system through a 90-day deposit collection instrument as part of its efforts to manage excess liquidity. The central bank conducted the transaction through its Online Bidding System Software following a notice issued on Thursday. Licensed Class A, B and C financial institutions participated in the auction, submitting bids ranging from Rs 100 million up to the total amount sought by the NRB. Individual bids were required to be in multiples of Rs 50 million. The interest rate was determined through the bidding process. The principal amount, along with the interest earned, will be repaid on December 2, 2026.
Government pledges logistical support to ease LPG supply for hospitality sector
Minister for Industry Gauri Yadav has assured hotel entrepreneurs that the government will facilitate independent imports and distribution of liquefied petroleum gas (LPG) to address supply difficulties in Bagmati Province. During a meeting with representatives of Hotel Association Nepal, Minister Yadav and Nepal Oil Corporation General Manager Nagendra Shah said household consumers would remain the government’s first priority amid continued transportation disruptions along the Krishnabhir section of the highway. The meeting also discussed increasing the use of 19-kilogram commercial LPG cylinders and encouraging hotels and other businesses to adopt electric cooking equipment. Hotel Association Nepal President Binayak Shah, meanwhile, raised concerns over alleged black-market pricing of LPG and called for hospitality businesses to be provided with electricity at industrial tariff rates.
Cabinet approves USD 5 million ADB grant and relief measures for flood-hit businesses
The Cabinet has approved seven decisions, including a USD 5 million grant from the Asian Development Bank (ADB) to support emergency search, rescue and relief operations following the Bhote Koshi flood. The government has also decided to provide relief, tax and customs concessions and other facilities under a business recovery plan aimed at helping flood-affected individuals, industries and businesses in Rasuwa resume operations. The Cabinet approved the import of 25,000 metric tons of sugar through Salt Trading Corporation Limited and Food Management and Trading Company Limited at a customs duty of 1 percent. Security personnel and civil servants involved in post-flood response operations will receive risk allowances, snacks and free medical treatment. Families of personnel who die while carrying out such duties will be provided Rs 1 million. The Cabinet has also declared September 8 a public holiday and September 7 a national day of mourning.
Bhote Koshi flood insurance claims expected to surpass Rs 50 billion
Insurance claims related to the devastating floods along the Bhote Koshi and Trishuli rivers had reached Rs 25.873 billion, according to the latest figures from the Nepal Insurance Authority. The claims largely relate to damage reported by businesses and infrastructure operators in urban areas. However, insurance industry representatives expect the total liability to exceed Rs 50 billion as search operations continue and detailed assessments are conducted in remote locations. The energy sector alone is estimated to account for claims of between Rs 25 billion and Rs 30 billion. Mohan Kumar Dangi, president of the Independent Power Producers’ Association, Nepal (IPPAN), said around 650 megawatts of operational and under-construction hydropower projects had been seriously affected by the disaster. He said the overall financial impact could not yet be determined because rescue and assessment teams continue to face logistical challenges.
LPG bottling shifted outside Kathmandu after Prithvi Highway subsidence
LPG companies have begun bottling cooking gas at plants outside Kathmandu and transporting the cylinders into the Valley by cargo trucks following road subsidence at Krishnabhir along the Prithvi Highway. Bimal Kalakheti, a member of the Nepal LP Gas Industry Association, said 16 bottling companies from Kathmandu Valley and neighboring districts had coordinated with plants in Bara, Parsa, Chitwan, Makwanpur and Nawalparasi to maintain supplies. Among the arrangements, Baba Gas in Chitwan has bottled 1,500 cylinders of Shree Gas, while Nepal Gas Gandaki has filled 1,200 cylinders for Nepal Gas. Association President Dewan Chand said the Nepal Oil Corporation had authorized the alternative arrangement. Kalakheti said there was no immediate risk of an LPG shortage, noting that imports reached a record 60,200 metric tons last month. Kathmandu consumes nearly 40 percent of the country’s total LPG supply.
Nepal-India long-term power trade agreement tabled in Parliament
The long-term power trade agreement between Nepal and India was presented to the House of Representatives on Thursday. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha tabled the agreement in Parliament. The pact was signed on January 4, 2024, and subsequently published in the Nepal Gazette on July 29, 2024. The agreement is intended to expand bilateral electricity trade for the mutual benefit of both countries. It also seeks to strengthen cross-border power trading by utilizing existing and planned transmission lines and encouraging investment in renewable energy. The framework supports Nepal’s target of exporting 10,000 megawatts of electricity to India over a period of 10 years.
Bhairahawa Customs collects more than Rs 8 billion in revenue
Imports through the Belahiya border point in Rupandehi amounted to Rs 33.748 billion during the first month of fiscal year 2026/27, from July 17 to August 16. Exports during the same period totaled Rs 3.596 billion. Compared with the corresponding period of the previous fiscal year, imports increased by Rs 4.94 billion and exports by Rs 1.24 billion. The Bhairahawa Customs Office collected Rs 8.723 billion in revenue, exceeding its target of Rs 8.54 billion by 2.14 percent. However, the collection was 2.2 percent lower than the Rs 8.928 billion collected during the same period last year. Vehicle imports were a major source of customs revenue. A total of 20,695 motorcycles worth Rs 2.329 billion were imported, generating Rs 2.269 billion in customs revenue. Similarly, 235 jeeps, cars and vans worth Rs 320.2 million generated Rs 732.8 million in revenue, while 130 double-cab pickup vehicles valued at Rs 158.4 million contributed Rs 289.6 million.
Madhesh Province allocates Rs 19.6 million for flood relief
The Madhesh Province government has allocated Rs 19.6 million worth of emergency relief materials for flood-hit areas of Nuwakot and Rasuwa. The relief package consists of 7,000 blankets and 700 tents and will be sent under the coordination of Minister for Home, Communication and Law Fakhira Mahato. A provincial Cabinet meeting chaired by the chief minister on Tuesday, September 1, also decided to provide Rs 100,000 to the families of each deceased flood victim from Madhesh Province. Injured residents will receive free treatment at provincial hospitals. Provincial Minister for Finance Yubaraj Bhattarai ‘Samir’ said 30 of the 162 people from Madhesh Province who had been reported missing following the August 26 disaster have since established contact with security personnel and their families. Search efforts remain underway for the remaining missing people from Saptari, Parsa, Bara, Sarlahi, Rautahat, Mahottari, Siraha and Dhanusha.
HAN mobilizes relief and shelter support for flood victims
Hotel Association Nepal (HAN) has expressed condolences over the loss of lives in the devastating Bhote Koshi floods and said its member hotels have mobilized financial and material assistance for the Prime Minister Disaster Relief Fund. Hotel Kingsbury led the contributions with Rs 11.1 million, followed by Chandragiri Hills with Rs 5.2 million, Hotel Mechi Crown with Rs 2.6 million and The Everest Hotel with Rs 2 million. Other hotels and their employees have also contributed to the relief effort. HAN said its members have provided food, clothing and medical supplies while coordinating free accommodation and meals for affected people. Through its regional chapters and in coordination with the Nepal Tourism Board, the association is also assisting with family support and efforts to locate missing people and provide shelter to displaced tourists.
EU announces additional Rs 8.9 million in humanitarian assistance
The European Union (EU) has announced an additional Rs 8.9 million in humanitarian assistance for communities affected by the devastating floods of August 26, 2026. The latest allocation takes the EU’s total emergency funding for the disaster to more than Rs 445 million. The new assistance will be provided through the International Federation of Red Cross and Red Crescent Societies (IFRC) Disaster Response Emergency Fund (DREF) to support a Nepal Red Cross Society-led response in Bagmati Province. The operation is expected to reach around 4,000 households, or up to 20,000 people. Support will include emergency and transitional shelter, multipurpose cash assistance, drinking water and sanitation, healthcare, mental health and psychosocial support, and protection services. The response is also being supported by satellite mapping through the EU’s Copernicus emergency management service.
HoR committee calls for immediate rescue and repair of flood-damaged infrastructure
The House of Representatives (HoR) Infrastructure Development Committee has directed the government to give immediate priority to search, rescue and safe relocation efforts following the devastating Bhote Koshi flood. At a meeting chaired by Committee Chairperson Aashish Gajurel, the committee called for the urgent rescue of people believed to be trapped inside hydropower project tunnels and other locations. It also instructed the authorities to clear obstructed roads, repair damaged roads and bridges and establish temporary bridges or alternative routes where permanent reconstruction would take considerable time. The committee further called for the rapid restoration of damaged electricity transmission and distribution lines and urged the government to secure financial and technical assistance from international partners and the private sector for resilient infrastructure reconstruction. It also recommended upgrading local early warning systems, developing an integrated database of disaster-affected families and ensuring the immediate distribution of essential relief materials.
UK to channel up to £3 million through UN agencies for Nepal flood response
United Kingdom Minister for the Indo-Pacific Baroness Winterton met United Nations Resident Coordinator in Nepal Lila Pieters Yahia and representatives of UN agencies involved in the flood response at the UN House in Kathmandu. The UK government said it is working with trusted UN partners to assist communities affected by the disaster. Up to £3 million from the UK’s overall £5 million support package for Nepal will be provided through UN agencies for emergency relief and early recovery activities. The UK said the assistance reflects the importance of international partnerships in responding to the crisis and is intended to support people and communities affected by the floods.
US provides solar trailers to APF as part of flood relief support
The United States has handed over three solar-powered charging trailers to the Armed Police Force (APF) to help provide electricity to remote communities affected by the Bhote Koshi flood. US Embassy Acting Deputy Chief of Mission Wil Vaughn formally handed over the equipment on September 2. The APF will deploy the trailers in flood-affected areas where access to reliable electricity remains limited. The equipment was supplied through the US Department of State’s Bureau of International Narcotics and Law Enforcement Affairs in cooperation with the US Department of Justice. The support is part of broader US assistance to Nepal, which includes USD 3.6 million in disaster relief and humanitarian aid. The US Embassy said it is continuing to coordinate with the Government of Nepal and other partners to respond to identified needs.
Chamber health committee provides Rs 5 million in medical supplies
The health and social committee of the Nepal Chamber of Commerce has donated essential medicines and first-aid materials worth around Rs 5 million to the Nepal Chamber of Commerce Disaster Management Council. The consignment includes medicines for fever, common cold and diarrhea, as well as oral rehydration salts, povidone-iodine solutions, surgical supplies and sanitary napkins. The materials will be distributed to vulnerable and disaster-affected communities in coordination with relevant government agencies to help ensure timely access to basic healthcare.
CIT bill expands investment powers to infrastructure and private funds
The Ministry of Finance has moved forward with amendments to the Citizen Investment Trust (CIT) Act, 1991, aimed at broadening the investment options available to the state-owned financial institution. The Cabinet approved the proposed amendments on August 19, 2026, and the bill was formally registered in the House of Representatives on Thursday. Under the proposed changes, CIT would be allowed to place fixed-term deposits of more than five years, with a minimum investment of Rs 50 million, in infrastructure development banks. The bill would also permit the trust to invest directly in private equity and venture capital funds. The proposed legislation seeks to raise CIT’s paid-up capital from Rs 3 billion to Rs 6.8 billion and its authorized capital from Rs 8 billion to Rs 10 billion. It would also provide greater flexibility in adjusting the shareholding structure among the government, which holds 23.34 percent; Rastriya Beema Sansthan, 31.55 percent; Nepal Stock Exchange, 10 percent; financial institutions, 15.11 percent; and the general public, 20 percent.
Consortium banks move to auction Pokhara hotel property
Nepal Investment Mega Bank and Himalayan Bank have begun the process of auctioning property pledged as collateral by Heritage Hotel and Suits Private Limited in Pokhara after repeated notices to recover the outstanding debt went unheeded. The two banks issued a seven-day urgent public notice on Thursday, asking the borrower and personal guarantors Rabichandra Hamal Thakuri and Sangita Hamal Thakuri to clear the dues. Failure to do so could also result in blacklisting through the Credit Information Bureau. The properties up for auction consist of two plots of land with a combined area of 2,213.25 square metres in Pokhara Metropolitan City-6. Interested bidders can obtain the bid documents from Himalayan Bank’s New Road branch for Rs 1,000 until September 9, 2026. The bids are scheduled to be opened on September 11.
NMB Equity Partners to invest Rs 100 million in Nepali animated film
NMB Equity Partners, managed by NIMB S Capital, a subsidiary of Nepal Investment Mega Bank, has agreed to invest up to Rs 100 million in the Nepali animated feature film Lost in Mandala. The investment agreement was signed with Incessant Rain Studios for the fantasy-adventure project, which is being developed in collaboration with Last in Mandala LLC. The film is written and directed by Kiran Bhakta Joshi and produced by Dipa Chipalu Joshi. Its screenplay has been written by Hollywood writer Stentz, who has worked on productions including Thor, X-Men: First Class and Jurassic World: Camp Cretaceous. NIMB S Capital Chief Executive Officer Shivanta Bahadur Pandey said the investment is intended to help Nepali animation reach international audiences while promoting indigenous art, intellectual property and spiritual traditions rooted in the Himalayas.
Fertilizer shortage threatens rice production in Banke
Farmers in Banke are facing a serious shortage of chemical fertilizers at a critical stage of rice cultivation, raising concerns over declining crop productivity. The district has achieved 99.8 percent rice transplantation across 33,503 hectares, exceeding the area covered last year. However, farmers say they have struggled to obtain adequate supplies of urea, DAP and potash, while purchases from across the border at Rupaidhia have also been halted. The Agriculture Knowledge Center, Banke, warned that insufficient nutrients during the tillering and panicle-emergence stages could reduce rice yields by 30 to 50 percent. The shortage has been compounded by limited fertilizer supplies from Krishi Samagri Company. As of August 31, 2026, the company had distributed 1,017 metric tons of urea, 299 metric tons of DAP and 27 metric tons of potash in the district.
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