KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy is showing signs of increased activity, but the latest developments also reveal significant structural weaknesses and policy challenges. Government revenue growth has accelerated, largely driven by higher imports, consumption, festival demand and reconstruction-related spending, while private-sector businesses in manufacturing, hydropower and agriculture are also recording pockets of growth.
At the same time, the decline in the Nepal Stock Exchange reflects cautious investor sentiment amid regulatory changes and broader market uncertainty. The government and Nepal Rastra Bank have introduced several measures to facilitate investment, foreign-exchange transactions and economic activity, including higher foreign-exchange limits for medical treatment, online service exports and satellite services.
Infrastructure development remains a major priority, particularly after floods and landslides caused extensive damage and exposed weaknesses in existing designs. The proposed large-scale reconstruction programme and plans for climate-resilient infrastructure indicate a shift toward more sustainable development. However, delays in hydropower projects, tighter food supplies, rising service costs and concerns over migrant-worker recruitment demonstrate continuing pressures on businesses and households.
Overall, the developments suggest that Nepal is experiencing a gradual expansion in economic activity, but sustained growth will depend on reducing import dependence, strengthening domestic production and employment, improving infrastructure resilience, and ensuring that policy reforms translate into broader and more inclusive economic opportunities.
NEPSE falls 20.48 points as turnover drops to Rs 3.27 billion
The Nepal Stock Exchange (NEPSE) index fell 20.48 points to close at 2,566.76 on Monday, extending its decline from the previous session. Trading turnover also declined to Rs 3.27 billion from Rs 3.89 billion on Friday. A total of 90 million shares were traded through 44,777 transactions involving 359 companies. Of them, 32 companies gained, 242 declined and four remained unchanged. Most sectoral indices ended lower, with manufacturing, life insurance, hotels and hydropower recording some of the steepest declines. Market sentiment remained under pressure following a Securities Board decision requiring founders holding more than 5 percent of a company to make prior disclosures before selling their shares.
Gold price falls Rs 400 per tola, while silver rises Rs 40
The price of gold declined by Rs 400 per tola in Nepal on Monday, with fine gold trading at Rs 291,500 per tola (11.66 grams), down from Rs 291,900 on Sunday. The price of 10 grams of gold fell to Rs 249,915 from Rs 250,260. Silver, however, moved in the opposite direction, rising to Rs 4,430 per tola from Rs 4,390 a day earlier. The price of 10 grams of silver also increased to Rs 3,798 from Rs 3,764. The latest figures reflect a modest decline in domestic gold prices alongside an increase in silver prices, according to the Federation of Nepal Gold and Silver Dealers’ Associations.
Govt introduces special price adjustment for public construction projects
The government has introduced a special price adjustment mechanism for public construction contracts affected by exceptional increases in construction material costs resulting from international conflicts and supply-chain disruptions. The measure covers materials including petroleum products, bitumen, HDPE pipes, cement and steel. Eligible contracts that remain under implementation after March 29, 2026, can receive adjustments based on actual and verified consumption. Contracts without regular price-adjustment provisions may also qualify if they meet the government’s criteria. Where existing adjustment mechanisms apply, the special adjustment will be calculated after deducting amounts already payable under those provisions. The government says the measure is intended to prevent project disruptions, sustain construction activity and support timely completion of projects.
Government plans climate-resilient infrastructure after Rs 21.5 billion flood damage
The government plans to revise Nepal’s infrastructure design standards after floods and landslides caused an estimated Rs 21.5 billion in damage to roads and bridges. Future infrastructure projects are expected to prioritize climate resilience, stronger structures and designs suited to local geographical conditions. Authorities are considering longer and higher bridges with fewer or no piers in river channels to reduce vulnerability to extreme flooding. Bridge freeboard requirements and flood-return assumptions are also being reviewed. The recent disasters have exposed weaknesses in conventional engineering practices and renewed attention to climate-resilient designs previously recommended by international development institutions. The revised standards are expected to guide both reconstruction and new infrastructure projects and improve resilience against increasingly severe disasters.
Nepal Rastra Bank doubles foreign exchange limits for online service exporters
Nepal Rastra Bank has doubled the annual foreign exchange spending and card-balance limits for Nepali individuals and institutions earning foreign currency by exporting services online. Under the revised foreign exchange directive, the annual limit for payments and balances related to software, digital content and other services exported abroad has been raised from USD 5,000 to USD 10,000. Amounts exceeding the USD 10,000 threshold must be deposited into a bank account. The central bank has also increased the investment limit for banks and financial institutions in highly liquid foreign government securities from 40 percent to up to 50 percent for countries rated A-/A3 or higher, subject to specified conditions.
Nepal Electricity Authority extends deadlines for 27 hydropower projects
The Nepal Electricity Authority (NEA) has extended the required commercial operation dates for 27 hydropower projects with a combined capacity of 540.47 MW after reviewing their progress and contractual obligations. The projects had entered into power purchase agreements but failed to meet their original deadlines. The NEA has classified 218 projects into four categories based on physical progress, revised commercial operation date status and developers’ obligations. The first phase covers projects in categories A and B that have submitted the required documents and supporting evidence. Category B includes projects delayed by transmission infrastructure, uncontrollable circumstances or those that have achieved at least 25 percent physical progress. Around 8,292 MW of hydropower capacity is currently under construction across 320 projects.
Nepal Rastra Bank raises foreign exchange limits for medical treatment and services
Nepal Rastra Bank has increased several foreign exchange limits to facilitate overseas medical treatment, satellite services and imports of services. Nepali citizens can now obtain up to USD 30,000 annually for medical treatment abroad, medicines and treatment equipment, up from the previous limit of USD 15,000. Nepali telecommunications companies can directly pay up to USD 500,000 annually for satellite services leased from foreign providers, compared with the previous ceiling of USD 100,000. Banks may also provide up to USD 30,000 per transaction for imports of services based on recommendations from the relevant regulatory authority. Payments exceeding that amount require approval from the central bank. Existing requirements will continue to apply where no regulatory authority is involved and for certain advance foreign payments.
Korala road section to remain closed for another week after flood damage
The Beni-Jomsom road linking Nepal with the open Korala border point with China is expected to remain closed for about another week as reconstruction continues along heavily damaged sections. Two-way traffic has resumed along the Ghasa-Korala section, while repair work has restored movement through the Tatopani area. Work is still underway at the approach to the Pokharebagar bridge. Road sections at Ratopani and near Bhirkate have suffered severe damage, while around 100 metres of road near Begkhola has completely subsided. A major landslide has also blocked the road at Baiseri. One-way traffic has resumed between Rahughat and Sirubari, while track opening and backfilling work continues at several other damaged locations. Authorities expect the main section to reopen after further repairs.
Nepal Rastra Bank invites bids to mint 300 million Rs 2 coins
Nepal Rastra Bank has invited international bids for the design, minting, supply and delivery of 300 million two-rupee coins. Eligible security-printing and coin-minting companies previously shortlisted by the central bank can participate in the international competitive bidding process. Qualified companies include firms from China, the United Kingdom, Germany, Russia, France and Poland. Technical and financial proposals must be submitted separately in two sealed envelopes. A pre-bid meeting is scheduled for October 16 at the Currency Management Department in Thapathali. Bids must be submitted by noon on November 4 and will be opened at 1 p.m. the same day. A bid security of USD 132,000 is required, while bids must remain valid for 120 days.
Revenue growth accelerates to 19 percent as imports rise
Government revenue growth accelerated to 19 percent by October 5, up from 16 percent at the end of September, with collections reaching Rs 226 billion compared with Rs 189 billion a year earlier. Value-added tax (VAT) revenue rose 29 percent to Rs 66.97 billion, while excise duty increased 10 percent to Rs 30.57 billion and customs revenue grew 7 percent to Rs 30.37 billion. Goods imports surged 31 percent to Rs 402 billion. Higher consumption, festival demand and reconstruction needs following floods contributed to the increase in imports. Green taxes and infrastructure-related charges also supported revenue growth. Income tax, however, rose by only 1 percent to Rs 32.16 billion. Increased imports of fuel and reconstruction materials also contributed to customs revenue growth.
Govt seeks Rs 559.18 billion for flood reconstruction and rehabilitation
The government has proposed mobilizing Rs 559.18 billion for reconstruction and rehabilitation in areas affected by the Bhote Koshi and other monsoon-related disasters. A meeting of the National Disaster Risk Reduction and Management Council recommended that the Ministry of Finance arrange resources for 504 plans and programmes submitted by various ministries and agencies. Projects lacking clear cost estimates or prioritization will be reviewed separately before additional budget recommendations are made. Reconstruction efforts will be carried out through coordination among the federal, provincial and local governments. The council also directed relevant agencies to accelerate search, recovery, reconstruction and rehabilitation efforts in the affected areas. The recommendations cover the extensive recovery needs arising from recent floods and landslides.
Nepali Congress proposes three-pillar economic policy for a prosperous Nepal
The Nepali Congress has proposed a three-pillar economic framework based on a liberal, production-oriented and socially just economy. The policy presented at the party’s 15th General Convention seeks to make the private sector a key driver of economic growth while positioning the state as a transparent and effective regulator. The second pillar focuses on achieving high, sustainable and inclusive growth through domestic production, innovation and entrepreneurship, with particular emphasis on young people. The third pillar promotes social justice by expanding opportunities for low-income and marginalized communities to participate in production and asset ownership. The party says economic success should ultimately be measured by employment, opportunities, domestic production and improved living standards rather than by gross domestic product growth alone.
Labour agencies oppose proposed Malaysia recruitment syndicate
Nepal’s foreign employment agencies have opposed a proposed arrangement under which only a limited number of manpower companies would be allowed to recruit Nepali workers for Malaysia. While supporting Malaysia’s continued status as a major destination for Nepali workers, industry representatives have rejected restrictions that could create an exclusive recruitment network. Under Malaysia’s Foreign Worker Centralized Management System, 25 Nepali manpower companies have reportedly been designated as primary institutions and 250 as supporting agencies. The agencies argue that such an arrangement could undermine businesses legally licensed under Nepali law and eventually increase costs and risks for migrant workers. They maintain that reopening Malaysia for recruitment and creating a recruitment monopoly are separate issues and have called for Nepal’s regulatory authority to be respected.
Internet providers discontinue packages below 50 Mbps
Internet service providers have stopped offering packages below 50 Mbps from Monday, resulting in higher prices for customers taking new connections or renewing lower-speed packages. Existing customers who subscribed to lower-speed plans by Sunday can continue using them until their current subscriptions expire. The change applies mainly to new connections and renewals, while packages offering speeds above 50 Mbps remain unchanged. The Internet Service Providers Association of Nepal said the move is aimed at improving service quality and discouraging unhealthy price competition. Some providers have already revised their tariffs, with Vianet pricing its 50 Mbps package at Rs 951 and Subisu at Rs 905. Most major providers already offer packages above the new minimum speed.
Annapurna Rathi Cable Industries posts 17 percent sales growth
Annapurna Rathi Cable Industries, a subsidiary of Rathi Group, recorded 17 percent business growth in 2026, with revenue rising to Rs 3.82 billion from Rs 3.26 billion in 2025 and Rs 2.49 billion in 2024. The company manufactures and sells household wiring cables, power cables, ABC/ACSR cables and concentric cables. Its operating profit margin improved to 10.26 percent from 8.21 percent in 2025, while its net profit margin increased to 5.29 percent from 4.22 percent. Gross cash accrual rose to Rs 260 million from Rs 174 million. The company had paid-up capital of Rs 600 million at the end of the latest fiscal year, while advance funds received toward equity stood at Rs 405 million.
Large cardamom price rises Rs 8,000 per maund in one week
The price of large cardamom has increased by Rs 8,000 per maund, equivalent to 40 kg, within a week in Taplejung. The commodity was traded at Rs 80,000 per maund last week before rising to Rs 88,000 on Sunday. The price increase has encouraged farmers, although harvesting remains their immediate priority during the peak season. Farmers across Taplejung are spending long hours harvesting, transporting, processing and drying cardamom in their orchards. The crop is cultivated in 60 of the district’s 61 wards, covering around 4,578 hectares and producing approximately 2,291 metric tonnes annually. Cardamom farming also provides seasonal employment to local workers, who earn around Rs 500 to Rs 800 a day for harvesting and processing.
Syarpu Hydropower begins trial generation from 3.3 MW project
The 3.3 MW Syarpu Hydropower Project in Bamfikot Rural Municipality-3, Rukum West, has begun trial electricity generation following the completion of construction. Developed by Syarpu Power Company through joint investment by local governments, the project has connected its generated electricity to the national transmission system. If the trial operation is successful, commercial generation is expected to begin within about 15 days following approval from the Nepal Electricity Authority. The project uses water from the Tilcha Khola flowing through the Syarpu Lake area and cost around Rs 620 million. Six local governments hold a combined 54 percent stake in the company, while the federal government owns 1 percent. The remaining 45 percent is planned to be issued as public shares.
Road safety works planned for Kalanki-Basundhara section
The Ring Road Improvement Project has selected two companies to carry out road safety infrastructure works along the Kalanki-Basundhara section. Concept Architect and Design Pvt. Ltd. has been selected to install steel railings and traffic signs at a proposed cost of Rs 14.28 million, excluding VAT and contingency. Ocean Construction Pvt. Ltd. has been selected for road-marking works, including lane markings, zebra crossings and other safety signs, with a bid of Rs 6.23 million, excluding VAT and contingency. The project office evaluated bids submitted through an online tender process and selected proposals deemed substantially responsive and within the approved cost estimate under the Public Procurement Act. The works are intended to improve road safety infrastructure along the busy section.
Resunga completes final tests of zipline and sky cycling facilities
Resunga Municipality has completed the final testing of newly constructed adventure tourism facilities at Garjura in Gulmi, paving the way for regular operations. The project includes a 568-metre zipline and a 110-metre sky cycling facility, with around 40 people participating in the trial runs. The zipline ride takes approximately 58 seconds. The municipality plans to begin regular operations within a week and will initially manage both facilities. The fee has been set at Rs 600 for a zipline ride and Rs 400 for sky cycling. Located at an elevation of around 2,300 metres above sea level, Resunga offers views of mountain ranges including Machhapuchhre and Dhaulagiri, along with several religious and historical sites. The project cost Rs 12.5 million and was constructed under a contract with Khalani Infra Pvt. Ltd.
Food safety inspections uncover expired and substandard products
Food safety inspections across the Kathmandu Valley have uncovered expired and substandard food products ahead of the festival season. Recent inspections of dairy businesses, food industries, sweet shops, biscuit manufacturers and tea processors found expired products and potentially unsafe ingredients. An inspection of BB Food Industry in Kageshwari found expired snacks, an unrenewed operating licence and rotten potatoes being used to make chips. Expired green peas and black soybeans were also found and destroyed at Siddhivinayak Food Store in Chandragiri. At a sweets and snacks outlet in Dhungedadda, inspectors found products whose labels claimed to contain several nutritious ingredients, although the inspection reportedly found only sugar. Authorities have continued inspections to prevent unsafe food products from reaching consumers during the festive season.
Ghee supplies tighten as milk production declines during festivals
Ghee and butter supplies have tightened in Nepal as milk production declines during the festival season, when demand traditionally increases. The Dairy Development Corporation has around 50 tonnes of butter in stock, while private dairy companies reportedly have no significant ghee reserves. The corporation’s annual butter production, normally around 800,000 kg, has fallen by roughly two-thirds. Retail ghee prices have reached around Rs 1,300 per kg, while ghee made from butter costs about Rs 900 per kg. The Dairy Development Corporation sells ghee at Rs 1,250 per kg. Nationwide milk collection has declined to around 3.2 million litres a day, directly affecting ghee production. Demand generally rises during Teej, Shraadh and the Dashain-Tihar festival period.
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