KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape presents a mixed picture, with declining stock market activity contrasting with rising precious metal prices and continued growth in business registrations. NEPSE’s 12.95-point decline and sharp fall in turnover to Rs 4.72 billion indicate weakening investor confidence and subdued market participation. Meanwhile, surging gold and silver prices reflect growing demand for traditional safe-haven assets and heightened market uncertainty.
On the development front, infrastructure investment and public spending remain central government priorities. Irrigation projects recorded encouraging first-quarter progress, while tenders worth Rs 17.15 billion for 92 drinking water projects signal renewed efforts to expand essential services. However, the need to extend the Kathmandu-Terai Fast Track deadline highlights persistent project implementation challenges.
The government’s plan to amend 59 laws and attract alternative financing reflects recognition that regulatory barriers and declining access to concessional loans could constrain infrastructure development. Nepal-US trade discussions and growing company registrations offer opportunities to strengthen private investment and economic diversification.
Meanwhile, agricultural initiatives, recovering egg production and increased mountaineering royalties demonstrate potential in productive sectors. However, persistent LPG shortages and unresolved land ownership issues expose weaknesses in market distribution and governance.
Overall, Nepal needs to translate policy reforms, rising investment interest and development spending into efficient implementation, employment generation and sustainable economic growth.
NEPSE sheds 12.95 points as turnover drops to Rs 4.72 billion
The Nepal Stock Exchange (NEPSE) index declined by 12.95 points to close at 2,652.58 on Thursday, while daily turnover dropped to Rs 4.72 billion from Rs 7.43 billion recorded on Wednesday. Of the 13 trading subgroups, only microfinance registered a marginal gain, while the remaining 12 ended in negative territory. Share prices of 211 companies declined, while 56 advanced and 12 remained unchanged. None of the advancing stocks recorded gains exceeding 3 percent. The 10.25 percent KBL Debenture-2026 posted the steepest loss, falling 5.09 percent. Chir Khwa Hydropower followed with a decline of around 4.5 percent. Ankhu Khola Hydropower Company led the turnover chart, with shares worth Rs 181.9 million traded. Nepal Reinsurance Company ranked second, recording transactions worth more than Rs 145 million.
Gold price jumps Rs 13,300 per tola, silver rises Rs 265
Gold and silver prices recorded sharp increases in the domestic market on Thursday, with gold rising by Rs 13,300 and silver by Rs 265 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold has been fixed at Rs 288,900 per tola, while silver is being traded at Rs 3,920 per tola. On Wednesday, hallmark gold was priced at Rs 275,600 per tola and silver at Rs 3,655. One tola is equivalent to approximately 11.66 grams.
NRB begins Tihar sale of gold coins and silver medallions
The Mint Division of Nepal Rastra Bank (NRB) began selling gold asarfis and silver medallions to the public on Thursday as part of its annual Tihar promotion. The sale will continue until Friday, the final day of the festive campaign. According to the NRB’s Currency Management Department, a 2.5-gram gold coin is priced at Rs 65,400, while a 10-gram silver medallion costs Rs 3,800. The central bank has introduced the seasonal sale to enable people to purchase gold and silver items for the festival, during which precious metals are traditionally bought and exchanged as gifts.
Irrigation projects spend Rs 2.39 billion in first quarter
Irrigation projects operating under the Department of Water Resources and Irrigation spent Rs 2.39 billion during the first quarter of fiscal year 2026/27, with capital expenditure, mainly on construction activities, accounting for 88 percent of the total. Department Director General Dinesh Rajauria said the Mahakali Irrigation Project in Kanchanpur achieved 97.2 percent of its quarterly physical progress target, spending Rs 437 million, more than two and a half times its allocated quarterly budget. The Babai, Sikta and Rani Jamara Kulariya irrigation projects achieved 81.8 percent, 80.2 percent and 71 percent of their respective physical targets. Together, the four major projects, including Mahakali, spent Rs 1.39 billion, accounting for 58 percent of the department’s total expenditure. Meanwhile, the Praganna-Badkapath Project in Dang recorded 88.2 percent physical progress, while the Deep Tubewell Irrigation Project and the Irrigation Institutional Development Program achieved their full quarterly targets.
Govt extends company compliance deadline, registrations continue to rise
The government has extended the deadline for companies to update their records and qualify for fines and penalties exemptions by two months, moving it from mid-November to mid-January. The extension is intended to provide companies with additional time to complete their compliance requirements and avoid penalties related to fiscal year 2025/26. The Registrar of the Office of Company Registrar has emphasized the need for companies to comply with the Companies Act, 2006. Company registrations have continued to increase, rising from 20,736 in fiscal year 2024/25 to 26,291 in fiscal year 2025/26. A further 10,480 companies had been registered by October of the current fiscal year, partly attributed to returning Nepali nationals investing in the domestic economy. The total number of registered companies has reached 388,690, while 14,970 companies have been deregistered. The Office of Company Registrar is responsible for overseeing company registration, regulatory compliance and liquidation procedures.
PM’s relief funds receive Rs 18.37 billion, including $31.42 million in foreign currency
Contributions to the Prime Minister’s Disaster Relief Fund and the Prime Minister’s Relief Fund have continued following the floods in Rasuwa and along the Bhote Koshi River, taking their combined deposits to Rs 18.37 billion as of 9 am on Thursday. According to the Office of the Prime Minister and Council of Ministers, Rs 13.62 billion has been deposited in nine accounts maintained at different commercial banks. The funds also hold USD 31.42 million in foreign currency accounts at Himalayan Bank and Laxmi Sunrise Bank.
Three ministers outline legal reforms and preparations for Nepal Infrastructure Summit 2026
Law Minister Sobita Gautam, Finance Minister Swarnim Wagle and Infrastructure Development Minister Sunil Lamsal have outlined preparations for the upcoming Nepal Infrastructure Summit 2026, highlighting plans to amend 59 laws covering 494 provisions to improve the investment climate. Speaking on Thursday, Gautam said more than 54 bills had already advanced through the Cabinet as part of the government’s legal reform agenda. Finance Minister Wagle said the summit would focus on presenting economic and legal reforms already implemented rather than simply announcing investment commitments. He also stressed the importance of involving the private sector in major infrastructure development projects. Infrastructure Development Minister Lamsal said the proposed legislative changes would address issues related to investment, taxation and land management. He also highlighted plans to promote the use of domestic raw materials in both public and private sector projects to reduce implementation delays and support local industries.
Foreign Ministry discusses Nepal-US trade and investment promotion
The Ministry of Foreign Affairs organized an interactive discussion on Wednesday focusing on the promotion of Nepal-US trade and investment, as well as exchanges of visits between the private sectors of the two countries. Addressing the programme, Foreign Minister Shisir Khanal stressed the importance of promoting Nepal as an emerging economy and an attractive destination for foreign investment. He called for coordinated efforts to increase exports, attract more foreign tourists and support economic growth while ensuring good governance. During the programme, the American Chamber of Commerce in Nepal and the Nepal-USA Chamber of Commerce and Industry (NUSACCI) presented papers highlighting investment opportunities, trade prospects and challenges in Nepal-US economic relations. Representatives from major business organizations, including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce, Federation of Export Entrepreneurs Nepal (FEEN) and Independent Power Producers’ Association, Nepal (IPPAN), also participated. Representatives of various startups were among those attending the discussion.
Govt invites bids for 92 drinking water projects worth Rs 17.15 billion
The government has invited tenders for 92 drinking water projects worth a combined Rs 17.15 billion during the first three months of fiscal year 2026/27. The projects aim to extend safe drinking water services to more than 1.3 million people across various districts within the next 30 months. According to information released by the Secretariat of the Ministry of Infrastructure Development, the tenders were published through the Department of Water Supply and Sewerage Management. The government plans to initiate procurement processes for drinking water projects worth up to Rs 44 billion during the current fiscal year. No contracts for such projects were awarded in the previous fiscal year due to the absence of agreements concerning water sources. The government has set a target of ensuring access to safe drinking water for all citizens at their doorsteps by fiscal year 2030/31.
Defence Ministry spends 26.87 percent of annual budget in first quarter
The Ministry of Defence has reported progress in its development projects, spending 26.87 percent of its total annual budget by Wednesday, November 4, during the first quarter of fiscal year 2026/27. According to the ministry, recurrent expenditure reached 104.09 percent of the first-quarter target against an annual allocation of Rs 60.3 billion. Capital expenditure stood at 43.24 percent of its first-quarter target against an annual allocation of Rs 6.28 billion. The Kathmandu-Terai/Madhesh Fast Track, a national pride project, recorded 50.54 percent overall physical progress, while its financial progress reached 52 percent. The project’s completion deadline has been extended to mid-March 2030 to address initial challenges related to the alignment of the road section in Kathmandu.
Nepal needs alternative financing as concessional loans become limited: Wagle
Finance Minister Swarnim Wagle has said Nepal must explore alternative financing options for large infrastructure projects as access to highly concessional loans from the World Bank and the Asian Development Bank (ADB) is expected to become increasingly limited. Speaking at a press conference on the Nepal Infrastructure Summit 2026 on Thursday, Wagle said Nepal had traditionally relied on highly concessional financing from the two multilateral development institutions, although the availability of such loans had increasingly become a matter of debate. He noted that loans offering repayment periods of 35 to 40 years and interest rates of around 1 to 1.5 percent in US dollars had provided an important financing option for major infrastructure projects. However, as access to such funding becomes more constrained, Nepal needs to identify and pursue alternative sources of investment, he said. Wagle also said the upcoming infrastructure summit would focus on showcasing reforms already introduced by the government rather than making fresh promises about future initiatives. He added that the government was pursuing economic and legal reforms, including amendments to 59 laws, compared with 65 laws enacted over the preceding three and a half years.
Gandaki signs Rs 14.3 million agreement with Paiyun for agricultural project
The Gandaki Province government and Paiyun Rural Municipality in Parbat district signed an agreement on Wednesday, November 4, to implement a women-led high-tech tunnel farming and smart agricultural market management project. The initiative, being implemented under the Chief Minister Innovation Partnership Program, has an estimated total cost of Rs 14.3 million. Under the cost-sharing arrangement, the Gandaki Province government will contribute Rs 10.6 million, while Paiyun Rural Municipality will provide the remaining Rs 3.7 million. The project aims to expand off-season vegetable production through the construction of high-tech agricultural tunnels, establishment of collection centres and introduction of web- and mobile-based software for market management. It will also focus on creating commercial opportunities for local women farmers and strengthening agricultural marketing systems in the area.
Foreign climbers generate Rs 323.7 million in royalties during autumn season
Foreign mountaineering expeditions generated more than USD 2.1 million, equivalent to Rs 323.7 million, in royalty revenue for Nepal during the 2026 autumn climbing season as of October 29. According to the Department of Tourism, 1,493 climbers, including 1,137 men and 356 women, from 171 international expedition teams representing 76 countries obtained climbing permits. Mount Manaslu remained the most popular destination, attracting 500 climbers, including 373 men and 127 women, across 43 expedition teams. The mountain generated more than USD 1.4 million, equivalent to Rs 225.8 million, in royalties. Mount Ama Dablam was another major attraction, generating USD 404,000, or approximately Rs 61.6 million, in royalties from 412 permitted climbers.
FAO and NSO launch joint study on youth participation in agriculture
The Food and Agriculture Organization of the United Nations (FAO) in Nepal and the National Statistics Office (NSO) have launched a joint initiative to assess young people’s participation in the country’s agriculture and agrifood sectors. The two institutions will jointly prepare a statistical report titled Status of Youth Engagement in Nepal’s Agriculture and Agrifood Systems. An inception meeting was held to initiate the process of consolidating national data on youth participation in the sector. The study aims to provide a comprehensive picture of young people’s involvement, opportunities and challenges across agriculture and agrifood systems. According to the initiative, its findings will provide an evidence base for formulating policies, programmes and investments that better address the needs and participation of young people. The initiative is also expected to support the development of more inclusive and sustainable agrifood systems in Nepal. This marks the first joint statistical assessment of youth engagement in the sector undertaken by FAO Nepal and the NSO.
Janak-Sarakar campaign seeks improvements in Janakpurdham railway services
The Janak-Sarakar Campaign has submitted a memorandum to Nepal Railway Company, calling for improved management and passenger-friendly facilities across the Janakpurdham railway network. The campaign delegation highlighted Janakpurdham’s cultural, religious and historical importance and urged the railway authorities to ensure better safety, cleanliness and passenger convenience. The memorandum includes demands for regular maintenance of platforms, proper operation of electrical equipment, clean public toilets and reliable drinking water facilities. It has also called for developing unused railway land into public parks and organized marketplaces. Similarly, the campaign has urged authorities to introduce safety measures at railway crossings to prevent accidents and bring freight transportation services into operation to promote regional trade. The delegation stressed the need to improve railway services since their resumption on April 2, 2022.
Chhimek Laghubitta and Api Power announce proposed dividends
Two companies listed on the Nepal Stock Exchange (NEPSE) have announced proposed dividend distributions to shareholders for the previous fiscal year. Chhimek Laghubitta Bittiya Sanstha Limited has proposed a total dividend of 25 percent, comprising 11.96 percent bonus shares and 13.03 percent cash dividends. The proposed distribution is subject to approval from Nepal Rastra Bank and endorsement at the company’s upcoming annual general meeting. Similarly, Api Power Company has proposed a total dividend of 5.0263 percent, consisting of 5 percent bonus shares and 0.263 percent cash dividends to cover applicable taxes. The proposed dividend distribution by Api Power is subject to approval from the Electricity Regulatory Commission and endorsement by the company’s annual general meeting.
Bhaktapur households struggle with persistent LP gas shortages
Residents across Bhaktapur district continue to face difficulties obtaining liquefied petroleum (LP) gas cylinders despite official claims that market supplies have returned to normal. Although the District Administration Office had announced that distribution had stabilized following Dashain, consumers say they are still struggling to obtain filled cylinders from retailers and distributors. Several households have reportedly been waiting for up to three months to exchange their empty cylinders, forcing some to approach multiple retailers or seek alternative cooking fuels. Before major festivals, the administration had published distribution schedules on social media to facilitate supplies. However, the absence of clear delivery schedules and transparent cylinder exchange arrangements among different gas companies has further complicated the situation. The continuing shortage has caused growing frustration among consumers, who have called for more effective monitoring and reliable distribution arrangements.
Egg production in Dang recovers to over 2,500 cartons daily
Daily egg production in Dang district has recovered to more than 2,500 cartons following efforts by poultry farmers to stabilize the market and improve the prices they receive. Each carton contains 210 eggs. Production had previously fallen from between 5,000 and 6,000 cartons to around 1,000 cartons a day due to weak demand and inadequate market prices. According to the Nepal Layers Poultry Farmers Association, Dang, improved coordination among more than 150 affiliated farmers, who collectively operate around 900,000 layer chickens, has helped reduce financial losses. Association Secretary Rabindra Bikram KC said more than 45 new entrepreneurs enter the poultry business in the district every year. Around 20 percent of the daily production, equivalent to approximately 500 cartons, is consumed locally, while the remaining 80 percent is supplied to outside markets. A depot established in Tulsipur in collaboration with Nepal Egg Trading has introduced a centralized sales system. The price of an individual egg has been fixed at Rs 19.12. Association Central President Binod Pokharel said the system was introduced to prevent farmers from being forced to sell eggs below production costs.
Arun-III targets commercial power generation by February 2028
The 900-megawatt Arun-III Hydroelectric Project is targeting commercial electricity generation by February 2028 (Falgun 2084 BS), as efforts continue to resolve longstanding implementation challenges. The Investment Board Nepal advanced administrative procedures to address the project’s outstanding issues during its 68th board meeting held on October 9. Being constructed in Sankhuwasabha by SJVN Arun-III Power Development Company, the project has achieved 77.5 percent physical progress in its power generation facilities. Meanwhile, construction of the 253-kilometre, 400 kV cross-border transmission line connecting the project to Sitamarhi in India has reached 60 percent completion. The project has an estimated total cost of Rs 144 billion. Under the project agreement, Nepal will receive 21.9 percent of the electricity generated free of cost, equivalent to 197 megawatts at full capacity. The agreement also provides for royalty payments to Nepal over the project’s 25-year operational period.
Land settlement commission receives over 60,000 applications in Jhapa
The Land Problem Settlement Commission in Jhapa has received applications from 60,570 families seeking land ownership certificates. According to the commission, the applicants include 2,896 landless Dalit families, 15,783 landless families and 41,851 families classified as unorganized settlers. The commission has also received 5,296 applications carried forward from the previous commission. Commission Chair and Chief District Officer said revised land revenue rates have been fixed at 12 percent for residential land and 7 percent for agricultural land. During visits to various municipalities on Monday and Tuesday, Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal discussed priorities for distributing land ownership certificates with commission officials and chief administrative officers of local governments. Rawal reaffirmed the government’s commitment to finding a lasting solution to land-related problems in the district.
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