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 and business developments present a mixed picture of price pressures, disaster-related disruption, institutional adjustments and signs of resilience across key sectors. Gold and silver prices have climbed sharply, while egg prices have also increased amid higher production, feed and transportation costs, indicating continued pressure on household budgets. The government’s decision to cut customs duty on 25,000 tonnes of sugar imports to 1 percent, alongside commitments from domestic producers, reflects an attempt to contain festive-season inflation through increased supply.
The Bhotekoshi floods remain a major economic concern, particularly for energy and trade. Damage to hydropower infrastructure has disrupted electricity exports to Bangladesh and reduced supplies to India, highlighting the vulnerability of Nepal’s growing energy-export ambitions to climate-related disasters. The government’s decision to facilitate Mustang cargo through Chobhar Dry Port similarly reflects efforts to maintain trade connectivity amid damaged transport routes.
Despite these challenges, several indicators point to continued economic activity. Non-life insurers recorded 23.39 percent year-on-year premium growth, while autumn mountaineering permits and Buddha Air’s fleet expansion signal sustained tourism and aviation activity. A 15 percent return announced by Himalayan 80-20 also reflects continued investor activity in the financial sector.
Meanwhile, institutional changes at Ncell and Nepal Airlines indicate ongoing corporate and administrative restructuring. Disaster relief has also received significant domestic and international backing, including a Rs 1.5 billion contribution from NVIDIA CEO Jensen Huang. Overall, Nepal’s economy is navigating immediate inflationary and disaster-related pressures while maintaining momentum in insurance, tourism, aviation and financial services.
Gold rises to Rs 307,400 per tola, silver reaches Rs 4,765
The price of hallmark gold increased by Rs 2,500 per tola to reach Rs 307,400 on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 307,400 per tola in the domestic market. The price of silver also increased by Rs 40 to Rs 4,765 per tola. The precious metals market has continued to see fluctuations amid movements in international markets, currency exchange rates and other global economic factors.
Government approves 1 percent customs duty on 25,000 tonnes of sugar imports
The government has reduced the customs duty on the emergency import of 25,000 tonnes of sugar to 1 percent to help stabilise market prices ahead of the festive season. The Cabinet meeting held on Thursday approved the concession for imports by the Food Management and Trading Company and Salt Trading Corporation. The move lowers the previous 15 percent customs duty and is aimed at increasing supplies and controlling rising prices. The government has also sought commitments from domestic sugar mills to supply 20,000 tonnes of sugar. Sugar is currently being sold for around Rs 135 to Rs 150 per kilogram in the open market, while state-owned entities are selling subsidised sugar at Rs 109 per kilogram.
Department permits clearance of Mustang-imported goods at Chobhar Dry Port
The Department of Customs has authorised cargo entering through the Mustang Customs Office to be inspected and cleared at the Chobhar Dry Port Customs Office in Kathmandu under designated internal transit routes and prescribed regulatory conditions. Cargo vehicles entering Nepal through the Korala border point will follow a designated route through Netichung, Chhusang, Kagbeni, Jomsom, Beni, Kusma, Pokhara, Damauli, Mugling, Kurintatar, Naubise and Kalanki before reaching the dry port. An alternative route has also been designated through Mugling, Narayanghat, Hetauda, Bhaise, Naubise and Kalanki for heavy vehicles and newly purchased vehicles being driven into the country. The arrangement is expected to provide an alternative trade route as northern transit corridors recover from disruptions caused by the recent floods.
Floods disrupt electricity exports to Bangladesh and reduce supply to India
The recent flash floods in the Bhote Koshi River have severely damaged hydropower generation and transmission infrastructure in Rasuwa and Nuwakot, disrupting Nepal’s electricity exports to Bangladesh and reducing supplies to India. Nepal had been exporting 40 megawatts of electricity to Bangladesh out of an approved 60-megawatt quota through the Trishuli and Chilime hydropower projects. However, damage to eight operational hydropower projects with a combined capacity of 281 megawatts and four projects under construction with a combined capacity of 388 megawatts has affected 431.1 megawatts of Nepal’s generation capacity. The damage has significantly reduced the country’s ability to supply electricity to neighbouring markets.
Non-life insurers collect over Rs 5.3 billion in gross premiums
Fourteen non-life insurance companies operating in Nepal collected a combined Rs 5.328 billion in gross premiums during the first month of the current fiscal year, from July 17 to August 16, 2026. According to the latest figures, the companies issued 229,599 active insurance policies during the period, representing a 23.39 percent increase in business compared to the Rs 4.318 billion collected during the corresponding period last year. Himalayan Everest Insurance Company recorded the highest premium collection at Rs 562.5 million, followed by Siddhartha Premier Insurance and Nepal Lumbini Insurance. All operating non-life insurers reported year-on-year growth in premium collections.
Lumbini chief minister directs focus on viable development projects
Lumbini Province Chief Minister Chetnarayan Acharya has directed government agencies to discontinue unviable and low-impact development projects and prioritise programmes that provide tangible benefits to citizens. Addressing an annual progress review and budget implementation meeting at the Office of the Chief Minister and Council of Ministers in Rapti Valley (Deukhuri), Acharya stressed the need to strengthen the province’s internal revenue generation. He called for improved management of the transport sector, stricter regulation of foreign vehicles entering through border points and the inclusion of all operating casinos in the tax system. The province has projected total income of Rs 37.384 billion for the current fiscal year.
Salt Trading Corporation contributes Rs 6 million to disaster relief fund
Salt Trading Corporation Limited has contributed Rs 6 million to the Prime Minister Disaster Relief Fund to support rescue, relief and rehabilitation efforts for people affected by the recent floods and landslides in Rasuwa, Nuwakot and Dhading. Corporation Chief Executive Officer Urmila Shrestha said Rs 5 million was contributed from the corporation’s corporate social responsibility fund, while another Rs 1 million was raised through voluntary salary contributions from employees. The corporation said it is also continuing to supply essential food and other basic commodities to disaster-affected areas to support displaced families.
Land measurement begins in Jaljala, Parbat
The Land Problem Resolution Committee in Parbat has begun measuring land in Jaljala Rural Municipality-3, Parbat Beni, as part of efforts to provide land ownership certificates to landless Dalits, landless squatters and unmanaged settlers. Technical teams equipped with total station technology have started field measurements based on verified applications submitted by local residents. The process involves identifying and verifying land, surveying and parceling plots, and eventually distributing legal ownership certificates through the established federal and local government procedures. The initiative is expected to provide long-term land security and formal property rights to families who have been living in the area for decades without legal ownership.
Ncell CEO Michael Foley resigns
Ncell Chief Executive Officer Michael Foley has resigned from his position after less than 10 months in office. His resignation was approved on August 25, 2026, with the company citing personal reasons for his departure. His resignation comes amid ongoing regulatory and legal issues surrounding the telecommunications sector, including matters related to licence renewal and government policies. Following Foley’s departure, Ncell’s Corporate and Regulatory Affairs Officer Dilli Ram Shrestha has been given full executive authority to oversee the company’s operations until a permanent CEO is appointed.
29 countries and international organisations provide flood relief assistance
The Ministry of Foreign Affairs has said 29 countries and major international organisations have provided humanitarian assistance and emergency relief supplies to Nepal following the devastating Bhote Koshi floods. The European Union, Asian Development Bank, World Bank and United Nations are among the international organisations that have extended support. Forensic teams from India, China, Singapore and South Korea have also arrived in Nepal to assist security agencies in collecting DNA samples and identifying victims of the disaster. The ministry said the international assistance reflects continued solidarity with Nepal as the country responds to the loss of life, widespread destruction and humanitarian challenges caused by the floods.
367 climbers secure autumn mountaineering permits, Manaslu most popular
The Department of Tourism has issued autumn mountaineering permits to 367 climbers representing 32 expedition teams. Manaslu remains the most sought-after peak, with 348 climbers from 29 teams receiving permits. Makalu and Danga Peak were among the other mountains chosen by expedition teams. Climbers from China, Russia, the United States, France and the United Kingdom account for a significant share of the permit holders. The number of permits indicates continued interest in Nepal’s mountain tourism sector during the autumn climbing season.
Janak Raj Kalakheti appointed acting general manager of Nepal Airlines
The Ministry of Culture, Tourism and Civil Aviation has appointed Deputy General Manager Janak Raj Kalakheti as the acting general manager of Nepal Airlines Corporation. Kalakheti has been granted full administrative and financial authority in accordance with Regulation 34 of the corporation’s institutional service bylaws. This is Kalakheti’s second stint overseeing the state-owned national flag carrier. He has assumed the position amid ongoing administrative and legal developments at the corporation. The appointment follows the Supreme Court’s annulment of the appointment of Maheshwar Bhakta Shrestha as executive chairman on grounds related to the statutory age limit for leadership positions in public utility institutions.
Egg prices rise by Rs 15 per crate
The Nepal Layer Chicken Farmers Association has increased farm-gate egg prices by Rs 15 per crate, effective Friday, citing rising production, feed and transportation costs. Under the new rates, extra-large eggs cost Rs 605 per crate, large eggs Rs 590 and medium eggs Rs 550. Retail prices have also risen, with medium eggs selling at around Rs 25 each or Rs 45 for two.
NVIDIA CEO Jensen Huang donates Rs 1.5 billion for flood relief
NVIDIA founder and Chief Executive Officer Jensen Huang has donated USD 10 million, equivalent to around Rs 1.51 billion, to the Prime Minister’s Disaster Relief Fund to support rescue, relief, rehabilitation and reconstruction efforts following the devastating Bhote Koshi floods of August 26. Finance Minister Swarnim Wagle expressed gratitude to Huang for the contribution, describing it as an exceptional gesture of support for Nepal’s disaster response. The contribution will be channelled through the Prime Minister’s Disaster Relief Fund for affected communities and reconstruction efforts, particularly in Rasuwa, Nuwakot and Dhading. According to Wagle, the contribution has brought the total amount collected in the disaster relief fund to around Rs 10 billion.
Himalayan 80-20 fund announces 15 percent return to unit holders
Himalayan 80-20, an open-ended mutual fund managed under Himalayan Mutual Fund, has announced a 15 percent return, inclusive of applicable taxes, for its unit holders for the previous fiscal year. The decision was taken at a board meeting of Himalayan Capital, the scheme manager, held on September 2. The fund said the distribution reflects its performance during the previous fiscal year and is intended to provide returns to its investors.
Buddha Air begins commercial flights with new ATR 72-600
Buddha Air has started commercial operations with its newly acquired ATR 72-600 aircraft. The aircraft made its first commercial flight from Kathmandu to Nepalgunj at 8:06 am on Friday under the call sign 9N-AOS, carrying 66 passengers. The aircraft arrived in Nepal from Toulouse, France, on July 25 and underwent technical inspections, regulatory clearances and painting before entering commercial service. The new aircraft is equipped with a glass cockpit, digital flight management and RNP-AR navigation systems. It is also designed to improve fuel efficiency, reduce cabin noise and support operations in low-visibility conditions. With the addition, Buddha Air operates more than 140 domestic flights a day as well as regional international services. The airline plans to add another aircraft of the same series to its fleet.
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