KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic developments reflect a mixed picture of progress and persistent challenges, with encouraging growth in energy and agricultural exports, moderate gains in the stock market, and continued government efforts to strengthen infrastructure, employment and public services. At the same time, administrative inefficiencies, policy implementation gaps and climate-related disruptions remain significant concerns.
The Nepal Stock Exchange (NEPSE) recorded a modest gain of 6.62 points to close at 2,664.13, supported by advances in several sectors, particularly hotels and tourism. However, the decline in daily turnover from Rs 7.18 billion to Rs 5.65 billion suggests that investor participation remained relatively subdued. Meanwhile, rising gold prices and falling silver prices indicate differing trends in the domestic precious metals market.
Export performance offered more encouraging signs. Nepal earned Rs 16.15 billion from electricity exports during the first quarter of fiscal year 2026/27, benefiting from increased sales to India and the resumption of electricity exports to Bangladesh. Similarly, fruit juice exports generated Rs 2.207 billion, highlighting opportunities for expanding value-added agricultural exports and diversifying foreign exchange earnings.
The government’s approval of a USD 305 million Asian Development Bank package for road improvements, alongside investments in infrastructure and policy reforms, demonstrates its focus on economic development. Progress on the Pokhara-Muglin highway and the allocation of funds for the Mustang-Dolpa road are expected to improve connectivity, tourism and regional trade. However, criticism of small-scale irrigation projects in Sudurpashchim highlights concerns about budget transparency, project selection and the effective use of public resources.
Institutional reforms are another important feature of recent developments. The introduction of a new electronic government procurement system, expansion of employment services in coordination with the International Labour Organization, and the introduction of National Identity Card requirements for health insurance reflect efforts to improve governance and service delivery. Nevertheless, disruptions to online company registration expose weaknesses in digital infrastructure and administrative reliability.
Tourism also presents considerable economic potential. The 77.62 percent increase in foreign arrivals in Mustang and Nepal’s participation in the World Travel Market 2026 indicate growing international interest. However, climate-related damage to flower crops in Chitwan and continuing disaster risks underline the vulnerability of local livelihoods and economic activities.
Overall, Nepal’s economic outlook reflects opportunities for growth alongside structural challenges. Sustained progress will depend on transparent public spending, reliable digital services, stronger infrastructure, export diversification and effective implementation of government policies.
NEPSE gains 6.62 points as turnover reaches Rs 5.65 billion
The Nepal Stock Exchange (NEPSE) index gained 6.62 points to close at 2,664.13 on Tuesday, while daily turnover declined to Rs 5.65 billion from Rs 7.18 billion recorded on Monday. Share prices of 143 companies advanced, while 122 declined and 14 remained unchanged. Global IME Bank, Butwal Power Company, Kumari Bank, Soltee Hotel, Sanima Middle Tamor, Laxmi Sunrise Bank and Ghalemdi Hydropower were among the companies recording the highest trading volumes. The hotels and tourism sub-index recorded the highest gain, rising by 1.07 percent. The banking sector increased by 0.52 percent, hydropower by 0.31 percent and life insurance by 0.09 percent. Development banks, microfinance, non-life insurance and trading sectors also posted gains. Among individual companies, Shikhar Power recorded the highest increase, with its share price rising by 5.94 percent, followed by River Falls Power, which gained 5.80 percent. On the losing side, Beni Hydropower declined by 5.04 percent, while Chirkhwa Hydropower recorded a sharp drop of 43.94 percent.
Gold rises to Rs 275,000 per tola, silver falls to Rs 3,675
The price of gold increased in the domestic market on Tuesday, while silver recorded a decline. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold rose by Rs 700 per tola to reach Rs 275,000. Gold was traded at Rs 274,300 per tola on Monday. In contrast, silver declined by Rs 45 per tola to settle at Rs 3,675 on Tuesday, down from Rs 3,720 on the previous trading day.
Nepal earns Rs 16.15 billion from electricity exports in first quarter
The Nepal Electricity Authority (NEA) generated Rs 16.15 billion in revenue from electricity exports during the first three months of fiscal year 2026/27, covering the period from July 17 to October 17. According to the Ministry of Energy, Water Resources and Irrigation, electricity exports to India increased during the period, with Nepal receiving approval to export an additional 31 megawatts. This brought the country’s total approved electricity export capacity to India to approximately 1,179 megawatts. The NEA exported 633.9 million units of electricity to India between September 17 and October 17, generating Rs 5.92 billion in revenue. Electricity exports to Bangladesh have also resumed after being suspended following floods. The ministry said the supply of 40 megawatts of electricity to Bangladesh had returned to operation.
Cabinet approves $305 million ADB package and key policy reforms
The Council of Ministers on Tuesday approved six major decisions, including accepting financial assistance worth USD 305 million from the Asian Development Bank (ADB) for road improvement projects. The assistance comprises a concessional loan of USD 285 million and a grant of USD 20 million. According to the secretariat of Government Spokesperson and Minister for Education and Sports Sasmit Pokharel, the Cabinet also approved additional investment in Nepal Reinsurance Company Limited through the purchase of rights shares. The meeting endorsed the Fertilizer Control Order, 2083, and decided to include nano-fertilizers, biostimulants and commercially produced organic fertilizers on the list of essential substances. Similarly, the Cabinet approved the participation of a high-level Nepali delegation in the 31st Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change (UNFCCC), scheduled to take place in Antalya, Türkiye, from November 9 to 20, 2026. The government also extended the deadline for landowners and tenants to apply for the subdivision of occupied land until November 2028. The deadline for completing the division process has been extended until July 15, 2029. In addition, the Cabinet decided to recommend two ordinances to the President. The proposed ordinances seek to amend the Press Council Act, 1992, and certain provisions of laws relating to culture, tourism and civil aviation.
Nepal exports fruit juice worth Rs 2.2 billion in three months
Nepal exported more than 22.6 million litres of fruit juice during the first three months of fiscal year 2026/27, generating foreign exchange earnings of Rs 2.207 billion. According to the Department of Customs, the exports covered the period from July 17 to October 17, with India accounting for the largest share of the market. Smaller quantities were also exported to China and Japan. Mixed fruit juice accounted for the largest portion of exports, with more than 15.7 million litres worth Rs 1.431 billion shipped abroad. Nepal also exported orange juice worth Rs 358.7 million and pineapple juice valued at Rs 221.3 million. Both products were exported exclusively to India.
Technical glitch disrupts online company registration services
Online company registration services at the Office of the Company Registrar have been disrupted for several days due to a technical problem that has prevented applicants from receiving the One-Time Password (OTP) required to complete the registration process. Officials said the problem was primarily linked to the server of the Department of Information Technology, which generates OTPs for company name reservations and registration procedures. According to an information officer at the Office of the Company Registrar, the service remained completely suspended for three consecutive days after the problem emerged late last week. Although the system briefly resumed operation on Monday, the disruption returned. The registration platform has since been functioning intermittently, possibly due to technical updates or software modifications. An information officer at the Department of Information Technology also confirmed that efforts were underway to resolve the problem and restore normal services.
Finance Ministry shortlists six candidates for development finance fund CEO
The Ministry of Finance has shortlisted six candidates for the position of Chief Executive Officer (CEO) of the Alternative Development Finance Fund. The shortlisted candidates have been invited to present their strategic business plans and attend formal interviews as part of the selection process. According to the ministry, seven applicants were disqualified during the document verification process for failing to meet the required documentation criteria. The six candidates selected for the next stage are Apar Neupane, Ashutosh Sharma, Chandan Kumar Ghosh, Ram Krishna Khatiwada, Subhash Thapa and Smriti Sharma. The candidates’ strategic presentations and formal interviews are scheduled for November 21 and 22 at the Public Service Commission office in Kathmandu. The selection process will determine the next chief executive of the fund.
Minister Yadav and ILO country director discuss expanding employment services
Minister for Youth, Labour and Employment Ramjee Yadav and International Labour Organization (ILO) Country Director Numan Özcan held discussions on expanding skills development, employment and entrepreneurship services across Nepal’s 753 local government units. The discussions took place during a meeting at the ministry on Tuesday, according to the minister’s secretariat. The two sides discussed strengthening skills development, employment and entrepreneurship centres at the local level, as well as expanding cooperation on policy and institutional reforms to promote decent work. They also exchanged views on ensuring the effective implementation of ongoing labour- and employment-related programmes in Nepal. The meeting emphasized stronger coordination between the government and the ILO to improve employment services and strengthen policies and institutions in the labour sector.
New e-GP system launched after security concerns force suspension of old platform
The Public Procurement Monitoring Office has introduced a new Electronic Government Procurement (e-GP) system more than two months after suspending the previous platform over security concerns. Office Secretary Bishwo Babu Pudasaini formally inaugurated the new system on Tuesday. Joint Secretary Ram Prasad Acharya said the upgraded platform was designed to provide greater security and reliability than the previous system. According to a notice issued by the office, the old platform was suspended on August 27 after security vulnerabilities were identified. The replacement system was developed by the Software Development and Operation Center and launched in its first phase on November 3. Under the new arrangement, public entities are required to publish national and international tenders for construction projects and the procurement of goods through the platform. However, bidders and suppliers can submit their proposals either online or in physical form to the concerned government offices within the specified deadlines.
Land Minister Rawal listens to concerns of landless residents in Jhapa
Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal held discussions with landless residents of a settlement in Ward No. 4 of Buddhashanti Municipality, Jhapa, on Tuesday. During the interaction, residents raised concerns about land ownership and other problems they have been facing. Minister Rawal listened to their grievances and briefed them on the ministry’s ongoing initiatives and planned measures to address their concerns. She pledged to work towards resolving their problems and expediting the distribution of land ownership certificates. Rawal arrived in Jhapa on Monday and held discussions with district officials and local representatives on land management and cooperative-related matters. During her visit, she met representatives of the District Land Problem Resolution Committee, the Survey Office and the Land Revenue Office, along with chief administrative officers of local government units.
National ID card to become mandatory for health insurance services from December 16
The government has decided to make the National Identity Card mandatory for citizens aged 16 and above seeking registration, renewal and other services under the national health insurance programme from December 16. The decision follows a Health Insurance Board meeting on September 28, 2026. The Ministry of Land Management, Cooperatives and Poverty Alleviation and the Ministry of Federal Affairs and General Administration issued a circular on Monday to implement the requirement. Under the existing health insurance scheme, a family of up to five members can receive medical treatment benefits worth up to Rs 100,000 annually by paying a contribution of Rs 3,500. An additional Rs 700 is charged for each extra family member. According to Health Insurance Board Chairman Dr Subash Pyakurel, more than 500 hospitals across the country are affiliated with the programme. The scheme also provides outpatient department (OPD) services worth up to Rs 25,000, alongside emergency treatment facilities. However, people aged above 90 and individuals with severe disabilities have been exempted from the National Identity Card requirement. The latest decision revises an earlier notice published in the Nepal Gazette by the Ministry of Home Affairs on July 17, 2025.
Province Economic Affairs Council issues 19-point commitment on fiscal federalism
The meeting of the Province Council of Economic Affairs has concluded with a 19-point commitment paper aimed at strengthening fiscal federalism and improving coordination among the three levels of government. The meeting, inaugurated by Chief Minister Mangal Bahadur Shahi, concluded on Monday with economic affairs and planning ministers from Koshi, Madhesh, Bagmati and Lumbini provinces signing the commitment document. The 19-point agenda emphasizes the need to uphold constitutional provisions on fiscal equalization grants, end federal interference in small-scale projects under provincial and local governments, eliminate overlapping government structures and review the distribution of revenue generated from natural resources. Other priorities include simplifying procedures for foreign assistance, reviewing the Natural Resources and Fiscal Commission’s SUTRA system, transferring authority over vehicle inspections and traffic fines, and strengthening internal revenue generation. During the meeting, Federalism and Localization Centre Chairman Khim Lal Devkota delivered a presentation on coordination among the three levels of government. Chief Minister Shahi stressed that strengthening provincial mechanisms and effectively implementing constitutional provisions were essential to meeting public expectations from the federal system.
Insurance Authority directs life insurers to ease claims for flood victims
The Nepal Insurance Authority has directed life and micro-life insurance companies to simplify claim settlement procedures and extend premium and loan repayment deadlines for policyholders affected by the August 26 floods in the Bhote Koshi, Trishuli and Narayani river basins. Through an eight-point circular, the authority has introduced simplified procedures for processing death claims, policy surrenders, insurance loans and maturity payments. Under the revised arrangements, claimants can submit applications containing the insured person’s name, date and cause of death, policy number and their relationship with the deceased. The claims must be verified through available government-issued documents, including citizenship certificates, National Identity Cards, driving licences, passports and land ownership certificates. Recommendations from local governments and declarations issued by courts can also be used for verification. The authority has instructed insurance companies to process claims using their existing records if original insurance documents have been lost in the floods. Insurers must also provide replacement policy documents free of charge upon request. Affected policyholders will receive a six-month extension for premium payments and repayment of insurance loans without interest or penalties. Similarly, claims involving missing persons will be settled on the basis of self-declarations submitted by their legal heirs.
Baglung revenue office collects Rs 273.48 million in first quarter
The Internal Revenue Office in Baglung collected Rs 273.48 million in revenue during the first quarter of fiscal year 2026/27, achieving 95.1 percent of its collection target. According to the office’s financial report, the revenue was collected between July 17 and October 17. Income tax collection reached Rs 157.4 million, exceeding the target by achieving 114.75 percent of the projected amount. Similarly, excise duty revenue stood at Rs 23.9 million, representing 112.44 percent of the target. However, value-added tax (VAT) collection remained below expectations. The office collected Rs 64.6 million under this heading, meeting only 72.07 percent of the targeted amount.
Tourism Board announces Rs 100,000 prize for Kukur Tihar video contest
The Nepal Tourism Board (NTB) has announced a social media video contest on the occasion of Kukur Tihar 2026, offering a cash prize of Rs 100,000 to the winner. Under the competition, participants are required to produce original short videos highlighting the festival and the special bond between humans and dogs. Contestants must upload their videos to their Instagram or Facebook accounts using the hashtags #NepalFestival and #KukurTihar. They are also required to tag the Tourism Board’s official social media pages. Participants must additionally email their entries, along with an accessible Google Drive link, to [email protected]. The videos must be submitted in English, either through English narration or subtitles. According to the NTB, the deadline for submitting entries is November 21, 2026. The board has also stated that it reserves the right to use submitted videos for promotional and marketing activities across its platforms and other media channels.
Parliamentary committee sets deadlines for relocating highway utility poles
The Parliamentary Infrastructure Development Committee has directed the Ministry of Energy, Water Resources and Irrigation and the Nepal Electricity Authority (NEA) to remove utility poles obstructing major highway construction projects within specified deadlines. At a meeting chaired by committee chairperson Ashish Gajurel on Tuesday, November 3, the committee instructed the concerned authorities to clear electricity poles along the Kamala-Dhalkebar-Bagmati and Butwal-Gorusinge road sections within two months. Similarly, the authorities have been given one month to remove obstructing poles along the Nagdhunga-Mugling highway section. The committee also directed the Department of Roads to provide the necessary site clearances without delay. Meanwhile, the Ministry of Forests and Environment was urged to expedite the approval of forest clearances required for the road projects. The directives aim to remove infrastructure-related obstacles and accelerate ongoing highway expansion and upgrading works.
Rs 6.21 billion Pokhara-Muglin road project enters final phase
The upgrading and expansion of the 81-kilometre Pokhara-Muglin road, a major transport corridor in Gandaki Province, has entered its final phase, with construction on one section completed and work on the other nearing completion. The 41.45-kilometre eastern section, extending from Jamune to Muglin, has been completed and handed over. China Communications Construction Company carried out the construction under a contract worth Rs 6.21 billion. The contractor is responsible for the initial one-year defect liability period, followed by five years of maintenance. Meanwhile, physical progress on the 38.88-kilometre western section, connecting Pokhara and Jamune, has reached 86 percent. Anhui Kaiyuan Highway and Bridge Construction is undertaking the work under a contract worth Rs 7.40 billion. The remaining blacktopping and road safety works are targeted for completion by mid-December 2026. Separate contracts are being implemented for the construction of major bridges over the Madi and Seti rivers. The project, supported by a concessional loan from the Asian Development Bank (ADB), is expected to improve transportation, reduce longstanding problems caused by dust and mud, and enhance road safety. The upgraded highway will also improve the appearance of major intersections in Pokhara, including Amar Singh Chowk, Buddha Chowk, Arghaun Chowk and Tal Chowk. Once completed, the expanded four- to six-lane road is expected to strengthen connectivity and stimulate economic and tourism activities across Gandaki Province.
Govts allocate Rs 110 million for Mustang-Dolpa road upgrading
The federal and provincial governments have allocated Rs 110 million for upgrading and improving the road connecting Mustang in Gandaki Province with Dolpa in Karnali Province. Although basic road connectivity has been established across the mountainous region, difficult terrain and inadequate infrastructure continue to obstruct transportation. Several sections remain undeveloped, while sharp bends and narrow mountain tracks make it difficult for even tractors to travel along the route. Under the current budget allocation, the Gandaki Province Infrastructure Development Office has earmarked Rs 10 million for multi-year construction work along the Chhuksamb-Bherol section. Similarly, the Baglung Road Division Office has allocated Rs 100 million for upgrading the 52-kilometre stretch between Pakling and Chhuksamb. The investment is expected to improve connectivity between the two districts, facilitate transportation and support economic activities in the remote mountain communities.
Sudurpashchim budget faces criticism over micro-irrigation schemes
The Sudurpashchim Province government has come under public criticism for including micro-irrigation and river embankment construction projects named after individuals and linked to specific private properties in its budget for fiscal year 2026/27, approved on October 14. The annual programme book lists several small-scale projects, allocating grants ranging from Rs 500,000 to Rs 1.5 million for residential compounds and private agricultural plots in Kailali, Kanchanpur, Achham and Bajura districts.The allocations have raised questions about the prioritization of public funds, administrative transparency and the potential misuse of government resources. The controversy has also drawn attention to existing provincial project selection guidelines, which reportedly prescribe minimum investment thresholds ranging from Rs 2.5 million to Rs 10 million for regional water resources projects. Critics have questioned why projects involving relatively small allocations and specific private properties were included despite these established criteria.
Tourism minister leads Nepali delegation to World Travel Market 2026 in London
Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel arrived in London on Monday with a Nepali delegation to participate in the World Travel Market (WTM) 2026. The international tourism exhibition is being held at Excel London from November 3 to 5. Senior diplomatic officials welcomed the minister at Heathrow Airport upon his arrival. A total of 32 Nepali tourism companies are participating in the event through a dedicated Nepal pavilion, showcasing the country’s cultural heritage, natural attractions and adventure tourism opportunities. WTM is regarded as one of the world’s leading international tourism exhibitions, following ITB Berlin in terms of its global significance. Nepal’s participation aims to promote sustainable tourism, expand international marketing networks and strengthen partnerships with tourism stakeholders from around the world. The event also provides opportunities for high-level meetings, business networking and discussions on expanding international tourism cooperation.
Foreign tourist arrivals in Mustang increase by 77.62 percent
The number of foreign tourists visiting Mustang increased by 77.62 percent during the first 10 months of 2026, with 285,616 international visitors recorded between January and October. According to data released by the Annapurna Conservation Area Project (ACAP) office in Jomsom, the number of visitors during the 10-month period has already surpassed the 161,141 tourists recorded throughout 2025. The increase reflects growing international interest in Mustang, particularly among visitors from South Asian Association for Regional Cooperation (SAARC) countries. Indian pilgrims visiting the sacred Muktinath Temple have contributed significantly to the rise in tourist arrivals. Although adverse weather, road disruptions caused by floods and flight cancellations affected travel during parts of the year, tourism activities across the Himalayan region recovered strongly. The substantial growth in visitor numbers is expected to provide further momentum to tourism-related businesses and local economic activities in Mustang.
KMC bans plastic artificial flowers and garlands ahead of Tihar
Kathmandu Metropolitan City (KMC) has imposed a complete ban on the commercial sale and distribution of plastic artificial flowers, decorative garlands and other synthetic festive materials within its jurisdiction ahead of Tihar. The metropolitan city has warned that municipal police will confiscate plastic decorative products found being sold or distributed in violation of the ban. It has also urged traders and consumers to prioritize locally produced natural flowers to support domestic farmers and promote environmentally friendly celebrations. To facilitate the organized sale and distribution of flowers during the festival, KMC has designated several locations for flower trading. The designated areas include New Baneshwor, Shankhamul, Bhatbhateni, Tripureshwor, Kalimati, Sifal Chowk and Bhrikutimandap, among other commercial locations. The metropolitan city has also offered assistance through its municipal security headquarters to facilitate the implementation of the arrangements. The initiative aims to discourage plastic waste, promote domestic flower production and encourage environmentally responsible festival celebrations.
Nearly Rs 1.7 million distributed to disaster-affected families in three districts
Nearly Rs 1.7 million has been distributed as financial assistance to disaster-affected families and local governments in Myagdi, Parbat and Baglung districts. The assistance was collected through collaboration between Pun Magar Society Nepal and its UK-based counterpart and handed over to the respective disaster management funds on Monday. According to Yog Kumar Fagami of Pun Magar Society, families that lost members in floods and landslides received financial support. In Myagdi, 11 families that lost members in disasters were provided Rs 25,000 each. Similarly, 13 bereaved families in Baglung received Rs 10,000 each, while affected families in Parbat were provided Rs 250,000 each, according to the supplied details. The contribution was also extended to local governments affected by the disasters to strengthen their disaster management funds. The assistance is intended to support bereaved families, affected communities and local authorities in their recovery efforts.
Civil Service Hospital successfully operates ECMO machine for first time
Civil Service Hospital in Minbhawan has successfully used an Extracorporeal Membrane Oxygenation (ECMO) machine for the first time, saving the life of a 43-year-old man suffering from severe acute respiratory distress syndrome caused by an influenza virus infection. The patient received 11 days of ECMO support and 14 days of mechanical ventilation before being discharged from the hospital on Tuesday. The advanced life-support machine is valued at approximately USD 150,000 to USD 265,000. Medical specialists described the treatment as a significant milestone for Nepal’s critical care services, noting that it marked the country’s first ECMO retrieval case. The successful operation is expected to strengthen the hospital’s capacity to treat patients suffering from severe respiratory and cardiac conditions requiring advanced life-support systems.
FMTC begins paddy procurement at government-fixed support prices
The Food Management and Trading Company (FMTC) has started purchasing paddy for fiscal year 2026/27 at government-fixed support prices. The Cabinet has approved a support price of Rs 3,606 per quintal for coarse paddy and Rs 3,860 per quintal for medium-grade paddy. Under the initial procurement arrangement, the company’s Rajapur branch in Bardiya has been authorized to purchase 30,000 quintals of paddy, including 25,000 quintals of coarse paddy and 5,000 quintals of medium-grade paddy. Similarly, the Mahendranagar branch has published its purchasing schedule and guidelines for distributing procurement coupons to farmers. To ensure that genuine farmers benefit directly from the government support programme and prevent intermediaries from taking advantage, the company has set a procurement limit of 30 quintals per farmer. Payments will be deposited directly into the verified bank accounts of the farmers. The programme is intended to ensure fair prices for paddy growers and facilitate the government’s food management and procurement system.
Unseasonal rainfall damages up to 70 percent of Chitwan’s flower crops
Unseasonal rainfall over four consecutive days has caused extensive damage to flower crops in Chitwan, affecting farmers ahead of the Tihar festival. Dipak Pakhrin of Bharatpur Metropolitan City-26 said approximately 70 percent of the marigold flowers cultivated on his farm had been damaged by the rainfall. Pakhrin had grown marigolds on 13,545.25 square metres of land, investing more than Rs 150,000 per bigha in cultivation. According to the Horticulture Development Officer at the District Agriculture Development Office, between 60 and 70 percent of the district’s flower crops had already bloomed, but more than half of the fully bloomed flowers were damaged. Commercial flower cultivation in Chitwan has expanded significantly this year. The area under cultivation has increased from 21.92 hectares last year to 44 hectares, with 555 varieties planted. Production is estimated at around 1,000 kilograms per hectare. However, agricultural officials have warned that the extensive damage caused by rainfall could reduce market supplies and push flower prices above last year’s levels during the Tihar festival.
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