KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The events of the week present a mixed picture of crisis management, economic resilience, infrastructure recovery and emerging development opportunities in Nepal. The continuing fallout from the Bhote Koshi flood remains the dominant theme, with its effects extending well beyond the immediate disaster zone.
Nepal’s response has increasingly shifted from emergency relief toward restoring essential services and connectivity. The rerouting of fuel and LPG through alternative highways, delivery of more than 87,000 cylinders to Kathmandu, construction of temporary Acrow bridges and ongoing repairs at Krishnabhir demonstrate the importance of maintaining critical supply chains during infrastructure disruptions. Damage to 55 drinking-water projects, however, highlights how natural disasters can undermine basic services and create prolonged humanitarian challenges.
The disaster is also affecting tourism. Damage to the Manaslu trekking routes and concerns among Pokhara’s business community show that even areas untouched by flooding can suffer from negative perceptions. This underlines the need for accurate international communication alongside stronger disaster preparedness. International solidarity remains another important feature. South Korea’s financial and search assistance, together with domestic donations, reflects broad support for Nepal’s recovery. At the same time, government measures in Karnali indicate a move toward institutionalizing disaster preparedness and reconstruction.
Beyond the immediate crisis, the proposed Gidikhola hydropower project and improved herbal-oil storage facility point to longer-term economic possibilities. Meanwhile, the casino arrest raises concerns about public-resource accountability. Overall, the week demonstrates Nepal’s resilience but also exposes persistent vulnerabilities in infrastructure, disaster preparedness, governance and economic connectivity.
Gold and silver prices decline in domestic market
Gold and silver prices decreased in Nepal’s domestic market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 3,100 per tola to Rs 304,300, down from Rs 307,400 on Friday. Silver also recorded a decline of Rs 40 per tola, falling to Rs 4,725 from Rs 4,765. One tola of precious metal is equivalent to approximately 11.66 grams.
South Korea strengthens search efforts and pledges $1 million for Nepal
South Korea has announced additional support for Nepal’s flood recovery while intensifying efforts to find nine South Korean nationals who remain missing following the August 26 Bhote Koshi flood. During discussions in Kathmandu, South Korean Foreign Minister Cho Hyun reiterated Seoul’s commitment to Nepal’s long-term recovery and said search operations at the Upper Trishuli-1 hydropower project in Rasuwa would be accelerated. South Korea is also set to provide relief materials worth around KRW 130 million and $1 million in humanitarian assistance through the IFRC. Discussions between the two countries also covered climate-related loss and damage, trade, investment, technology and labor cooperation.
More than 87,000 LPG cylinders reach Kathmandu through alternate routes
More than 87,000 LPG cylinders have been brought into Kathmandu through alternative transport routes after a section of the Prithvi Highway at Krishnabhir in Dhading was blocked by a road collapse. Nepal Oil Corporation reported that 18 gas companies transported a combined 87,877 cylinders from bottling plants located in seven districts. Of the total, 24,494 cylinders entered the Valley on September 3, followed by 34,134 on September 4 and another 29,249 on September 5. NOC has asked gas companies to maintain refilling and transportation services even on public holidays to ensure consumers continue to receive uninterrupted supplies.
NOC redirects fuel supplies to Kathmandu after highway collapse
Nepal Oil Corporation has shifted the transportation of petroleum products and LP gas to the Tribhuvan Highway after the Krishnabhir section of the Prithvi Highway collapsed on August 30. In a two-day period, NOC moved more than 58,000 LP gas cylinders into Kathmandu Valley and directed bottling companies to continue operations without interruption, including during public holidays, to prevent shortages. In the aftermath of the August 26 Bhote Koshi floods, the corporation had also supplied 120,000 liters of aviation fuel for rescue helicopters through the Nepali Army’s Nuwakot barracks. It additionally provided 575 LP gas cylinders for temporary shelters in Rasuwa and Nuwakot.
Prithvi Highway reconstruction progresses after Krishnabhir collapse
Repair work on the Prithvi Highway has moved forward following the collapse at Krishnabhir, with authorities widening a newly opened four-meter track above the damaged section. The temporary route is intended to allow construction supplies, fuel and heavy machinery to reach the main worksite. The 350-meter track, located roughly 20 meters above the highway, is currently being used only for construction purposes. Engineers are engaged in cutting slopes and cliffs, clearing debris, widening the road, grading and laying gravel. Seven excavators, a JCB, a loader and two bulldozers have been deployed. Officials are aiming to restore public transportation by mid-September, although significant work remains before the highway can safely reopen.
Bhote Koshi flood damages 55 drinking water schemes
The Bhote Koshi River flood has caused damage to 55 drinking water projects in Rasuwa, Nuwakot, Dhading and Gorkha, resulting in estimated losses of around Rs 640 million. Nuwakot recorded the largest number of damaged schemes, with 22 projects affected and losses estimated at Rs 41 million. Authorities are using generators, pumps, water tankers and technical personnel to restore water distribution. The Bidur Water Supply Project is supplying approximately five lakh liters of water each day, while seven pumps have been installed to provide water to around 500 households in Battar. Officials say comprehensive restoration measures will be formulated after a detailed assessment of the damaged facilities.
Rescue operation launched for six people feared trapped at Chilime
A search and rescue operation is continuing at the 22 MW Chilime Hydropower Project in Rasuwa following reports that six people may have been trapped inside a project tunnel after the August 26 Bhote Koshi River flood caused extensive damage. A team headed by Chilime Hydropower CEO Babu Raja Maharjan has been deployed to the site to assess the situation and coordinate rescue efforts. Rastriya Swatantra Party lawmaker Shri Ram Neupane also said he was travelling to the project to evaluate conditions and support the operation. The flood has inflicted considerable damage on the hydropower facility and nearby infrastructure.
Borrowers can report abusive loan recovery practices to DAOs
People subjected to physical or verbal abuse, threats, seizure of household belongings or other unlawful behavior during loan collection can now lodge complaints with their District Administration Office. The Ministry of Home Affairs has instructed DAOs to take legal action under prevailing laws against individuals involved in such practices. The directive follows a decision taken by the Office of the Prime Minister and Council of Ministers on August 31. According to the ministry, loan recovery personnel who threaten, insult, defame or repeatedly harass borrowers at their homes over unpaid installments may face legal proceedings if complaints are filed.
Tourism activity picks up again at Sarlahi’s Nadhiman Lake
Tourism around Nadhiman Lake in Sarlahi is showing signs of revival after years of limited attention, bringing renewed business opportunities for local entrepreneurs and attracting domestic visitors as well as tourists from Bihar, India. The 352,192-square-meter lake has regained significant water coverage, while infrastructure development is underway, including the construction and improvement of parks, roads and other visitor facilities. Despite this progress, poor management, commercial fish farming, inconsistent motorboat services, waste accumulation and deteriorating park infrastructure continue to limit the lake’s tourism potential. A Rs 78 million infrastructure project is currently being implemented around the lake. Local residents and businesses have called on authorities to place greater emphasis on conservation, cleanliness and sustainable tourism development.
Donations increase for Bhote Koshi flood victims
Relief contributions for people affected by the Bhote Koshi-Trishuli floods continue to arrive from businesses, educational institutions, philanthropists and other organizations. Birgunj-based goldsmith and philanthropist Neeraj Saraf donated Rs 251,000 to the Prime Minister’s Disaster Relief Fund, while South Zone Secondary School provided Rs 155,553. Students of Nepal Police School in Shantipur contributed Rs 95,783 from money saved from their daily snack allowances. Meanwhile, India’s Lovely Professional University has begun collecting relief contributions and providing financial assistance to Nepali students and their families affected by the disaster.
Local official’s casino arrest raises questions over public resources
Sakhuwaprasauni Rural Municipality Chairperson Jaswant Yadav and seven other Nepali nationals were arrested during a late-night police raid on a casino in Birgunj. Yadav was reportedly found at the casino with his official government vehicle, which was also taken into police custody. Nepal’s law prohibits Nepali citizens from gambling in casinos. The incident has consequently raised concerns about whether public property and official vehicles were used for personal purposes. The Parsa District Police Office has begun investigating the incident and said further legal action would be taken in accordance with the findings.
Nepali Army accelerates Acrow bridge construction in Nuwakot
The Nepali Army has stepped up efforts to build a 57.5-meter Acrow bridge over the Tadi River at Devighat to restore road connectivity between Nuwakot and Dhading after floods destroyed or damaged two concrete bridges. A 55-member Army team is working continuously with the goal of completing the structure within five days. The bridge is 5.5 meters wide and has a load-bearing capacity of up to 70 tons. The Army also plans to construct another Acrow bridge at Betrawati to reconnect Nuwakot with Rasuwa. In addition, three bridges stored in Gajuri, Dhading, are scheduled for deployment in flood-affected locations to help re-establish vital transportation links.
Flood fallout sparks concerns over Pokhara’s tourism and economy
The private sector has expressed concern that the economic repercussions of the August 26 Bhote Koshi flood are beginning to reach Pokhara’s tourism industry and wider business sector. Tourism entrepreneurs and business representatives have called on the authorities to clearly communicate to the international community that tourist destinations outside the disaster-affected areas remain safe and open. Business leaders warned that continued negative international coverage of the disaster could discourage tourists from visiting Nepal and further weaken economic activity in Pokhara, one of the country’s major tourism centers. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Kumar Shrestha said the federation had contacted 70 international chambers of commerce seeking support for Nepal’s flood recovery. Participants also emphasized the need to strengthen long-term disaster preparedness and create a more favorable environment for investment.
Flash flood cuts off Manaslu trekking route and disrupts tourism
A flash flood in Chumanuwri Rural Municipality of Gorkha swept away four houses and an important suspension bridge along the Manaslu Circuit Trek on Sunday, disrupting transportation and threatening businesses and livelihoods dependent on tourism. The incident occurred along the Therang Stream after accumulated debris temporarily blocked the water before the obstruction suddenly broke, sending floodwater downstream. No deaths or injuries were reported, as local residents managed to move toward safer and higher areas. Residents have begun constructing temporary crossings to restore access for trekkers and local communities. Meanwhile, authorities have placed settlements downstream along the Budhigandaki River on high alert because of the possibility of additional flooding.
Modern herbal oil storage facility established in Banke
A modern storage facility for essential oils has been constructed in Banke to help maintain product quality and enable farmers growing aromatic plants to obtain better returns. The Division Forest Office built the Rs 1.2 million facility in Jayadurga Bhawani Community Forest in Raptisonari Rural Municipality-2. More than 70 households in the area cultivate crops such as mentha, lemongrass and chamomile. Farmers have previously suffered financial losses because of inadequate storage conditions, including exposure to sunlight, temperature fluctuations and leakage. Officials and representatives of the herbal industry expect the new facility to minimize deterioration in quality and encourage the expansion of commercial herb cultivation in the buffer zone of Banke National Park.
Manaslu and Larke Pass trekking routes suspended after flash flood
The Gorkha District Administration Office has temporarily halted trekking activities on the Manaslu Circuit and Larke Pass routes following a major flash flood in Chumnubri Rural Municipality-4 on Sunday. The flood destroyed an iron bridge connecting Wards 4 and 2 and also swept away a suspension bridge over the Budhigandaki River that provided access between Gap and the Namrung forest. Authorities have directed trekkers, guides and trekking agencies to suspend both ongoing and planned trips until further notice. No casualties were reported because residents noticed the rising water and moved to safer locations before the flood intensified.
Landslide blocks highway linking Dang, Rolpa and Rukum
Continuous rainfall has triggered landslides along the Rolpa highway, bringing traffic to a halt at several points. Police said the Ghorahi-Thawang road has been completely blocked since Monday morning after a landslide occurred at Kholawang in Paribartan Rural Municipality-1. The obstruction has stopped transportation between Dang, Rolpa and Rukum, leaving travelers and vehicles stranded until the road can be cleared.
50 MW Gidikhola hydropower project proposed in Jumla
A 50 MW reservoir-based hydropower project has been proposed in Gidikhola of Tatopani Rural Municipality-4, Jumla, with an estimated investment requirement of Rs 7.51 billion. Initial studies suggest the project could generate approximately 50 MW of electricity, although its capacity could be revised following more detailed technical and feasibility assessments. The generated power is planned to be connected to the Jumla Bazaar substation through a 132 kV transmission line. The proposed project is expected to generate employment and create new business opportunities for local communities. Residents could also benefit through royalty payments, share ownership and community-oriented development programs. However, stakeholders have called for comprehensive assessments to determine how many households, forests and agricultural lands could be affected by the project.
Landslides disrupt Sanfe-Martadi road in Bajura
Persistent rainfall has caused landslides at several locations along the Sanfe-Martadi road, disrupting the main transportation route to Bajura’s district headquarters. The road has become impassable at Jelmode, Suwakandh and other locations in Badimalika Municipality-9. Landslides have also affected sections around Rapka and Jadanga. A five-member police team, supported by JCB machinery provided by Badimalika Municipality and the Roads Department, is working to remove the debris. However, continued rainfall has increased the possibility of additional landslides. The unstable conditions have left vehicles stranded and severely affected movement along the important road corridor.
Nuwakot native in US contributes Rs 1 million to flood relief
Kapil Bhandari, originally from Kakani in Nuwakot and currently residing in Aledo, USA, has donated Rs 1 million to the Prime Minister’s Disaster Relief Fund. Bhandari said he made the contribution as a personal effort to support people affected by the August 26 floods. He expressed hope that the donation would help ease the difficulties faced by families affected by the disaster and contribute to ongoing rescue and relief operations.
Karnali prioritizes rebuilding disaster-damaged infrastructure
The Karnali Provincial Government has decided to give priority to reconstructing infrastructure damaged by natural disasters while accelerating assistance to affected communities. Under the decision, reconstruction of completely destroyed houses will be expedited, while the Provincial Emergency Operation Center will be strengthened and additional rescue equipment will be made available in coordination with security agencies. The provincial government will also cover funeral and body transportation expenses for Karnali residents who died in the Bhote Koshi flood. Verified survivors returning to their home districts will receive travel allowances. In addition, Rs 1.5 million will be allocated to each district disaster management fund to strengthen emergency response and disaster-management efforts.
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