KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The developments highlight a Nepalese economy facing simultaneous disaster-related risks, infrastructure bottlenecks, weak private-sector confidence and efforts to modernise economic systems. The Bhote Koshi disaster has created the most immediate financial pressure, exposing around Rs 5 billion in microfinance loans to repayment risks and disrupting trade routes. Its wider effects are visible in cargo congestion at Bhairahawa and the urgent repair of Tatopani, underscoring Nepal’s vulnerability to disruptions along critical China-linked corridors.
At the same time, the government is pursuing measures to strengthen economic resilience. Finance Minister Swarnim Wagle’s US visit seeks international financing for reconstruction, economic reforms and infrastructure, while the long-delayed Hetauda-Dhalkebar 400kV line could significantly improve electricity transmission, industrial supply and export capacity.
However, underlying structural weaknesses remain. Udayapur’s sharp decline in new industry registrations and calls from Lumbini businesses for predictable policies indicate subdued investment sentiment. New regulations on electricity wheeling charges also reveal tensions between expanding private-sector participation and ensuring commercially viable infrastructure use.
Consumer and market indicators present a mixed picture. Gold and cardamom prices have declined, while Dashain is expected to generate major transport and trading activity. Meanwhile, digital payments, new utility applications and women-focused marketplaces point to gradual technological and entrepreneurial diversification.
Overall, Nepal’s economic outlook is shaped by disaster recovery, infrastructure investment and trade resilience, but sustained growth will depend on policy predictability, stronger institutions and improved private-sector confidence.
Bhote Koshi disaster puts around Rs 5 billion in microfinance loans at risk
The impact of the Bhote Koshi disaster has spread to Nepal’s microfinance sector, with lenders estimating that loans worth around Rs 5 billion are at significant risk of default. Around 30,000 borrowers were directly affected by the disaster, while 38 branches of 14 microfinance institutions were located in areas affected by the August 26 disaster stretching from Rasuwa toward Dhading. Microfinance institutions are still assessing the status of borrowers, as some have died or gone missing while others have lost homes, businesses and land. Around 30 percent of the affected loan portfolio, estimated at more than Rs 1.5 billion, could involve households that no longer have sufficient assets or family members to repay their loans. The destruction has also disrupted routine loan collection and field monitoring. Although the affected loans are covered by insurance arrangements, lenders are facing difficulties documenting the extent of their losses. The sector has also raised concerns over compensation provisions, saying differences between Nepal Rastra Bank and the Deposit and Credit Guarantee Fund could force institutions to bear full provisioning costs before becoming eligible for insurance claims.
Nepal Rastra Bank invites bids for 400 million Re 1 coins
Nepal Rastra Bank (NRB) has invited bids for the design, minting, supply and delivery of 400 million Re 1 circulation coins, along with related services. The Currency Management Department published the tender notice on October 4, inviting only pre-qualified security minting companies to participate. The procurement will follow an International Competitive Bidding–Single Stage Two Envelope procedure, requiring technical and financial proposals to be submitted simultaneously in separate sealed envelopes. Eligible companies can purchase the bidding documents until November 2, 2026, from the NRB Currency Management Department in Thapathali or its Mint Division in Babarmahal by paying a non-refundable fee of Rs 20,000, USD 131 or EUR 115. Companies blacklisted under the Public Procurement Act are not eligible to participate. A pre-bid meeting is scheduled for noon on October 15, 2026, at the Currency Management Department in Thapathali.
Gold price falls Rs 2,900, silver drops Rs 60 in Nepal
Precious metal prices declined in Nepal on October 4, with fine gold falling by Rs 2,900 per tola and silver by Rs 60. According to the Nepal Gold and Silver Dealers Association, fine gold is now priced at Rs 291,900 per tola, down from Rs 294,800 on the previous Friday. Silver is being traded at Rs 4,390 per tola, compared with Rs 4,450 previously. The latest rates represent declines in both major precious metals traded in the domestic market, with gold recording the larger drop in rupee terms.
Dashain travel could require up to 65,361 public vehicle trips from Kathmandu
Transport authorities are preparing for a major exodus from Kathmandu during Dashain, with a government study estimating that between one million and 1.5 million passengers could leave the Valley by public transport. The projected movement could require between 43,574 and 65,361 vehicle trips, putting significant pressure on highways, transport operators and traffic management agencies. The largest movement is expected between Ghatasthapana and Navami, although departures are likely to begin earlier. A committee led by Infrastructure Development Committee Chair Ashish Gajurel submitted the assessment to Prime Minister Balendra Shah and Infrastructure Development Minister Sunil Lamsal on Wednesday. The study identified road damage, accidents, vehicle overloading, driver fatigue, traffic congestion and inadequate transport services as major risks during the festival travel period. Ticketing practices have also emerged as a concern. Even before official advance bookings opened, some transport operators and ticket counters at major departure points in Kathmandu were reportedly claiming that long-distance seats had already sold out. Authorities are concerned that such practices could later be used to charge passengers fares above approved rates as demand peaks.
Finance Minister Wagle to discuss economic reforms and reconstruction in Washington
Finance Minister Swarnim Wagle is visiting the United States to seek greater international support for Nepal’s infrastructure development and post-disaster reconstruction efforts. Wagle arrived in the US leading a two-member delegation and is scheduled to meet US Treasury Secretary Scott Bessent and World Bank Group President Ajay Banga on Monday. The discussions will cover Nepal’s economic partnership with the US and international development institutions, macroeconomic reforms and efforts to secure Nepal’s exit from the Financial Action Task Force grey list. Reconstruction following the Bhote Koshi disaster is also expected to feature prominently, with Nepal seeking additional assistance for damaged physical and economic infrastructure. Wagle is also expected to meet senior officials of the US International Development Finance Corporation and representatives of the private sector.
Hetauda-Dhalkebar 400kV transmission line set to operate after 12 years
The Hetauda-Dhalkebar 400kV transmission line is nearing operation after more than a decade of delays, with the Nepal Electricity Authority (NEA) expecting to complete the remaining work within days and charge the system shortly after Dashain. Only two of the project’s 16 towers remain to be completed. Both are multicircuit towers and are nearing completion, while the remaining 14 double-circuit towers have already been erected. NEA Managing Director Dirghayukumar Shrestha said the outstanding work could be completed within 10 to 15 days. Energy Minister Biraj Bhakta Shrestha recently inspected the substation and unfinished towers and directed the authority to prevent further delays. The transmission link is considered crucial to the national electricity grid, as it will strengthen the capacity to transfer power between eastern and western Nepal. The additional transmission capacity is also expected to support industrial electricity demand, reduce the wastage of surplus wet-season generation and increase the country’s capacity to export electricity to India and other neighbouring markets. The project had remained stalled for several years before gaining renewed momentum.
Bhairahawa border sees cargo buildup as northern trade routes remain disrupted
A growing backlog of cargo vehicles around Bhairahawa is highlighting the disruption to Nepal’s international trade routes, with goods that would normally enter through China increasingly being routed through India. The Rasuwagadhi, Tatopani and Korala crossings have all faced disruptions, while flood and landslide damage to roads inside Nepal has further slowed the movement of cargo entering through the southern border. Bhairahawa customs authorities have extended operating hours until 1 am, three hours beyond the usual 10 pm closing time, to process waiting vehicles and prevent the backlog from worsening during the festival import season. Hundreds of trucks have reportedly been stranded from the customs area along the Bhairahawa-Butwal road toward Sunauli. Customs officials have also coordinated with their Indian counterparts to facilitate cargo movement. The congestion has added to the logistical challenges facing traders seeking to bring goods into Nepal ahead of the festival season.
Private power sector questions new method for calculating grid wheeling charges
Nepal’s new system for calculating charges on private electricity traders using the national transmission network has raised concerns among hydropower developers over the cost-sharing mechanism. The Electricity Regulatory Commission has introduced standards for calculating transmission charges, addressing a gap that had prevented Nepal’s open-access electricity trading system from becoming fully operational. Under the new arrangement, private electricity traders can use the Nepal Electricity Authority’s transmission network. However, developers argue that the methodology could place a disproportionate cost burden on electricity actually transmitted through the system. The main concern relates to unused transmission capacity. For instance, if a transmission system can carry 10,000MW but only 5,500MW is available, the cost associated with the unused 4,500MW could effectively increase the charge on the electricity being transmitted. The commission has said the methodology is an initial framework that can be revised. It also said the NEA had not provided sufficient detailed data to calculate charges based on transmission distance and capacity. For now, the same transmission charge applies regardless of where electricity enters or exits the network.
51 food quality cases filed in Birgunj-Pathlaiya industrial corridor
Authorities have filed 51 cases against businesses over food quality violations in the Birgunj-Pathlaiya industrial corridor after inspections during fiscal year 2025/26 uncovered issues including contamination, inadequate labelling and missing permits. Oil and ghee products accounted for the largest number of cases, with 22, followed by honey with 18. Three cases involved grains and pulses, while dairy products and spices accounted for two each. Salt, fruit, confectionery and animal feed were each involved in one case. Dabur Nepal was among the companies facing legal action after its honey was found to be contaminated. The case was filed at the Bara District Court by 11 food inspectors. Other oil and ghee producers facing cases include Nandan Ghee, Shree Shivashakti, Narayani Oil Refinery, Shree Krishna, Sushil Vegetable and Annapurna Vegetable. Authorities also filed cases against several businesses in Parsa over contaminated or substandard products. However, the slow progress of judicial proceedings has raised concerns that legal action may not result in timely consequences for businesses found violating food safety standards.
Tatopani repairs target container traffic before Dashain
Repairs on the Tatopani route in Sindhupalchok have been expedited as traders seek to restore the key China-Nepal trade corridor ahead of the Dashain import season. A damaged section at Ghattikhola has sunk and narrowed, making it difficult for large containers to pass. The Road Division Office, Charikot, is rebuilding and widening the road to accommodate containers of up to 40 feet. Nepali and Chinese officials inspected the site on Tuesday as traders called for the route to be reopened as soon as possible. The Himalaya Trans-border Commerce Association said Tatopani is particularly important during the festival season because alternative routes cannot handle the same volume or size of vehicles. Chinese businesses have already prepared shipments of fruits, clothing, shoes, dry fruits, garlic and festival lights. Traders estimate that around 500 containers could pass through the crossing within 10 days if the road is reopened. Meanwhile, 70 containers are stranded on the Nepali side of Korala and another 50 on the Chinese side. Fruits worth more than Rs 400 million are reportedly at risk of spoiling.
Cardamom prices fall as new crop enters market
The price of large cardamom in Nepal has declined to around Rs 85,000 per maund, down from approximately Rs 98,000 a month ago and Rs 95,000 during the same period last year. Traders in Hile, Dhankuta, said the Indian market remains the major factor influencing domestic prices. Prices had previously risen as rainfall disrupted the movement of cardamom and tightened supplies. However, traders are now anticipating increased supplies from India’s Sikkim and Assam, which could put further downward pressure on prices. Nepal’s main harvesting and trading season is also underway, with farmers bringing larger quantities of cardamom to market ahead of Dashain and traders building their stocks. Producers are closely monitoring both domestic supply and demand in India before deciding when to sell. The recent decline has already reduced the returns farmers can expect compared with the season’s earlier peak.
Zhang’s Korala visit raises expectations for wider Nepal-China border trade
The visit of Chinese Ambassador to Nepal Zhang Maoming through the Korala border point has raised expectations that the northern trade crossing could move toward expanded operations. Zhang travelled to Lomanthang via Korala on Saturday with a seven-member delegation and inspected temporary immigration facilities at the border. The delegation included five Chinese officials and two embassy staff. Local authorities described the visit as the first by a Chinese ambassador through the Nepal-China northern border at Korala, giving the trip significance beyond a routine inspection. The visit comes as Nepal’s other major northern trade routes face disruptions. The Rasuwagadhi-Kerung crossing has been affected by the Bhote Koshi disaster, while Tatopani remains closed following damage to its access road. Traders and local officials therefore view the Korala inspection as a possible indication of preparations for increased cross-border movement. The timing is particularly significant for importers seeking alternative routes to bring festival goods into Nepal as Dashain approaches.
Lumbini private sector calls for predictable policies to revive investment
Businesses in Lumbini Province have urged the government to focus on creating a predictable and investment-friendly environment rather than relying on subsidies to revive an economy weakened by sluggish demand and declining business confidence. The call was made during a business dialogue in Butwal organised by the Nepal Chamber of Commerce, Lumbini Province, in coordination with the national chamber. Participants pointed to weak credit demand, cash-flow shortages and a prolonged slowdown in construction as major challenges facing businesses. They also attributed weak private investment to uncertainty over government policies and low capital expenditure. The private sector called for easier access to loans from banks and financial institutions, lower borrowing costs, greater investment security and faster government services. Nepal Chamber President Kamlesh Kumar Agrawal, Senior Vice President Dipak Kumar Malhotra and Lumbini Province Chamber President Tank Prasad Pokhrel participated in the discussions, along with representatives of district and city chambers, customs agents and other stakeholders. Business representatives said policy stability, transparency and restored investor confidence were more important for sustainable economic recovery than temporary financial assistance.
Udayapur sees sharp decline in new industry registrations
New business activity in Udayapur has declined sharply over the past five fiscal years, with the number of newly registered industries falling from 458 in FY 2021/22 to 166 in FY 2025/26. Data from the Domestic and Small Industries Office in Gaighat shows that registrations declined to 294 in FY 2022/23, 247 in FY 2023/24 and 184 in FY 2024/25 before reaching the latest figure. The number of new entrepreneurs has fallen even more dramatically. Udayapur recorded 1,663 new entrepreneurs in FY 2021/22, but the figure dropped to 320 the following year and then declined to 270, 193 and 174 in the subsequent three fiscal years. This represents an 89.5 percent decline in the number of new entrepreneurs over the five-year period. The office said the number of people willing to establish new businesses has continued to decline, pointing to a prolonged slowdown in new enterprise formation in a district where small and domestic industries are an important part of the local economy.
Government considers Nepali Army role in LPG business
The government is exploring the possibility of involving the Nepali Army in the LPG business as part of efforts to strengthen domestic gas supply, although the Army says it has not received any formal proposal. Minister for Industry Deepak Sah has initiated discussions on the plan, with the ministry and the Army holding two informal rounds of talks since Sah assumed office. Under the proposed model, the Army Welfare Fund, which already operates petrol stations, could establish an LPG business with production and storage facilities at selected locations. The government believes existing LPG infrastructure does not provide sufficient capacity to intervene effectively during supply disruptions. Salt Trading Corporation operates an LPG plant in Dhading and supplies gas to Dhading and the Kathmandu Valley, but its coverage remains limited. The government is also considering the construction of larger storage facilities. Nepal currently has 58 LPG industries with a combined storage capacity of around 10,100 tonnes, mainly used for refilling cylinders. Oil-sector officials estimate that even if a new government-backed facility receives approval quickly, construction and necessary inspections would take at least six months.
Chamber Bazaar opens in Kathmandu to promote women-led businesses
Chamber Bazaar has begun operations in central Kathmandu, providing women entrepreneurs with a dedicated marketplace to promote and sell their products. The initiative, launched by the Nepal Women Chamber at the Nepal Chamber of Commerce building in Jamal on Saturday, offers a range of products including food, clothing, handicrafts and other locally produced goods. Products from Salt Trading Corporation are also available at the marketplace. Organisers said the facility is intended to create a direct link between women entrepreneurs and consumers, allowing businesses to reach customers without relying entirely on conventional sales channels. Nepal Chamber of Commerce Vice President Urmila Shrestha said the platform could help women expand their businesses while giving consumers access to affordable food and other daily necessities. Roshan Bhayodyo, chair of the chamber’s Infrastructure and Land Reform Committee, called for similar fairs and marketplaces to be expanded to make products produced by women and other domestic entrepreneurs more accessible to consumers.
NIC Asia enables Apple Pay and Google Pay for online merchants
International customers can now use Apple Pay and Google Pay to purchase goods and services from merchants connected to NIC Asia Bank’s e-commerce payment gateway. The bank said the service is available through its CyberSource gateway for businesses accepting Visa and Mastercard payments. Customers can authenticate transactions through their mobile wallets without using physical cards. The system uses tokenisation to securely process payments through devices enabled with Apple Pay and Google Pay. NIC Asia said the service is being introduced in Nepal for the first time and could particularly benefit businesses that rely on international customers. Hotels, airlines, travel agencies, handicraft businesses, e-commerce platforms and IT companies are among the sectors expected to benefit from the new payment facility. The bank said easier access to payment methods commonly used by international consumers could help Nepali businesses simplify cross-border transactions and receive more foreign-currency payments. The facility is available to existing CyberSource merchants as well as businesses planning to join the gateway.
Nepa app expands with payment, document, health and utility tools
A new version of the Nepa app has expanded its range of digital services, adding more than 10 features covering document management, calculations, health tracking and everyday utilities. Users can now scan documents and convert them into PDF files, scan QR codes and check internet speeds without using separate applications. The update also includes a menstrual cycle tracker that allows users to record dates and receive predictions and reminders. Other features include a unit converter, calculator, loan calculator and tax calculator, as well as a location-finding tool. The app’s notes and reminders feature supports both text and voice entries. The expanded functions are intended to help users handle routine tasks related to documents, finances, measurements, connectivity and personal organisation from a single application. The latest release broadens Nepa’s functionality and positions it as a general-purpose utility platform for smartphone users.
Manakamana Hardware revenue surges to Rs 4.967 billion
Manakamana Hardware recorded a sharp increase in revenue in 2026, with sales reaching Rs 4.967 billion compared with Rs 2.669 billion a year earlier. The company’s revenue increased by 86 percent, following sales of Rs 1.179 billion in 2024, Rs 1.557 billion in 2023 and Rs 1.072 billion in 2020. Established in Banepa in 2016, the company distributes cement, steel rods, zinc sheets, pipes and other hardware products through six distribution branches serving areas including Kathmandu, Bardibas and Sindhuli. The expansion of its distribution network has helped the company increase its market reach. However, the rise in turnover has not been matched by a similar increase in profitability. Operating profit accounted for around 2 percent of sales in 2026, while net profit margin stood at 0.25 percent, down from 0.43 percent in 2025. The company’s debt exposure also increased, with gearing rising from 2.44 times to 2.86 times.
Future Motors revenue falls to Rs 1.599 billion as EV van sales slow
Future Motors recorded lower revenue in 2026 despite its longer-term expansion in the electric vehicle distribution business. The company’s revenue fell 18 percent to Rs 1.599 billion from Rs 1.965 billion in 2025. Sales had reached Rs 1.302 billion in 2024 after rising sharply from Rs 219 million in 2023. Established in 2022, Future Motors specialises in electric passenger vans, including 11-, 14- and 16-seat models, along with other vehicles. The company’s longer-term growth has been supported by its dealership of CG Motors vehicles and rising demand for electric passenger transportation. Its borrowing remains relatively moderate, with debt gearing at 0.69 times. External liabilities relative to tangible net worth have also declined substantially, from 10.97 times in 2023 to 3.98 times. Interest coverage stood at 8.7 times, while debt service coverage was 4.27 times.
Max Tiger offers 37 vehicles in Dashain promotion
Max Tiger Energy Drink has launched a nationwide Dashain promotion offering consumers a chance to win 36 Yamaha two-wheelers and a Proton car. The “Dashain Dhamaka 2026” campaign includes 18 Yamaha FZ-FI motorcycles and 18 Yamaha RayZR scooters, along with a Proton car as the bumper prize. The company has distributed specially marked cans across Nepal, with customers purchasing winning cans entitled to the prizes indicated under the promotion. The campaign was launched at The Plaza in Pulchowk, Lalitpur, ahead of the main festival shopping period. Max Tiger said the promotion is aimed at strengthening consumer engagement during Dashain through its nationwide distribution network. Unlike conventional prize draws that require customers to register and wait for a later selection, the campaign links prizes directly to specially marked cans distributed in the market. The company expects the promotion to boost consumer engagement and sales during the festival season.
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