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 encouraging signs in financial markets and structural reforms alongside significant fiscal, infrastructure and disaster-related challenges. The NEPSE index’s 11.96-point rise to 2,578.73, supported by gains in 11 of 13 subgroups and trading worth Rs 3.138 billion, indicates renewed investor activity. At the same time, new securities rules allowing Non-Resident Nepalis to participate directly in primary share offerings could broaden the domestic capital base.
Monetary and regulatory reforms are also aimed at facilitating investment and business activity. Nepal Rastra Bank’s expanded foreign exchange facilities, particularly the higher aircraft maintenance payment ceiling, should ease operational constraints for businesses. Similarly, the introduction of electricity wheeling charges and a new private-sector committee for energy projects could encourage greater investment in transmission and power trade.
However, the World Bank’s projection of 3.7 percent economic growth highlights persistent vulnerabilities, particularly after flood damage to critical infrastructure. The government’s efforts to mobilize reconstruction financing and pursue macroeconomic reforms will therefore be crucial.
Meanwhile, provincial fiscal management remains challenging, as illustrated by Lumbini’s 67 percent expenditure rate and unmet revenue targets. Tourism is showing recovery with the reopening of the Annapurna Circuit and improved access to Ghandruk. Overall, Nepal is pursuing structural reforms and investment facilitation while simultaneously confronting disaster recovery, budget execution and infrastructure resilience challenges.
NEPSE index rises 11.96 points to 2,578.73
The Nepal Stock Exchange (NEPSE) index gained 11.96 points to close at 2,578.73 on Tuesday, extending the recent upward trend in the stock market. The Sensitive Index, which tracks large-cap companies, rose two points to 461.86, while the Float Index increased 0.82 points to 177.71. The Sensitive Float Index also gained 0.75 points to reach 155.84. A total of 8,955,230 shares were traded in transactions worth Rs 3.138 billion. Of the 13 trading subgroups, 11 posted gains while two declined. Share prices of 169 companies increased, 95 declined and 15 remained unchanged. Trishuli Jalavidhyut Company, Salpa Bikas Bank and Hathaway Investment Nepal were among the gainers, while Sarbottam Steels, NIBL Growth Fund and Chirkhwa Hydropower were among the decliners.
Gold holds at Rs 291,500 while silver falls to Rs 4,415
The price of gold remained unchanged at Rs 291,500 per tola in the domestic market on Tuesday, while silver fell by Rs 15 to Rs 4,415 per tola. According to the Nepal Gold and Silver Dealers’ Association, fine gold was traded at Rs 291,500 per tola, equivalent to 11.66 grams, for the second consecutive day. Silver, meanwhile, declined from Rs 4,430 per tola on Monday to Rs 4,415 on Tuesday. The Nepal Gold and Silver Dealers’ Association publishes daily reference prices for gold and silver in the domestic market.
NRB expands foreign exchange facilities for IT, energy and aviation sectors
Nepal Rastra Bank (NRB) has amended its unified foreign exchange directives, raising outward remittance and payment limits for information technology companies, energy developers, tourism businesses and other cross-border service providers. The changes are intended to simplify corporate foreign exchange transactions and reduce the need for institutional approvals for routine commercial payments. Under the revised provisions, domestic airlines can make advance payments of up to USD 500,000 to send aircraft engines and essential spare parts abroad for mandatory maintenance. The limit is five times higher than the previous USD 100,000 ceiling. Such payments require a recommendation from the Civil Aviation Authority of Nepal but do not require a foreign bank guarantee.
World Bank projects Nepal’s economic growth to slow to 3.7 percent
The World Bank has projected that Nepal’s economic growth will slow to 3.7 percent this year following the devastating floods in Rasuwa on August 26, which caused extensive damage to hydropower projects, solar facilities, transmission lines and transport infrastructure. The projection was published in a report titled Rebuilding Differently for the Future. The report noted significant disruptions to industrial and service-sector activities but projected economic growth to recover to 5.2 percent in fiscal year 2027/28. World Bank Division Director for Maldives, Nepal and Sri Lanka David Sislen called for reconstruction efforts to incorporate multi-hazard risk assessments, resilient infrastructure designs and improved early warning systems. The report also noted that all border points between India and China are currently closed.
Advance bus ticket booking for Dashain to begin Friday
Advance booking of bus tickets for passengers traveling home for Dashain will begin across the country on Friday, October 9. The decision was taken at a stakeholder meeting held at the Department of Transport Management. The department’s director general said coordination with traffic authorities and transport operators was underway to ensure safe and orderly travel for passengers leaving urban centers for the festival. Route permit restrictions on national highways will be temporarily relaxed from October 11 to 25, 2026. However, heavy freight vehicles will remain barred from the Narayangadh-Kathmandu route during the peak festival period.
Finance Minister meets World Bank Group president in Washington, DC
Finance Minister Swarnim Wagle, who is visiting the United States at the invitation of the World Bank president, held a high-level meeting with World Bank Group President Ajay Banga in Washington, DC, on Monday. The discussions focused on the reconstruction of physical and economic infrastructure damaged by the Bhotekoshi-Trishuli floods, the need for urgent macroeconomic reforms and the mobilization of around USD 1 billion for insurance and social protection programmes. Banga expressed sorrow over the loss of lives and extensive damage caused by the disaster in Nepal and pledged significant financial support for the country’s reconstruction efforts. All border points between India and China are currently closed.
Nepal introduces wheeling charges to expand private sector role in power transmission and trade
Nepal has introduced its first electricity transmission fee, known as a wheeling charge, paving the way for greater private sector participation beyond power generation and into electricity transmission and cross-border trade. The Electricity Regulatory Commission introduced the open-access framework through the National Electricity Transmission Grid Transmission Fee Calculation Standards, 2026, which sets tariffs for fiscal year 2026/27. Under the framework, medium- and long-term open access will cost approximately Rs 413,000 per megawatt per month, while short-term open access will cost Rs 0.57 per kilowatt-hour. The system allows eligible power producers, licensed electricity traders and large industrial consumers to use the national transmission grid by paying the prescribed charges. Energy, Water Resources and Irrigation Minister Biraj Bhakt Shrestha said the initial charges may appear modest but represent an important first step toward developing a competitive, market-oriented electricity sector.
Sudurpashchim to present budget for fiscal year 2026/27 tomorrow
The Sudurpashchim provincial government will present its budget for fiscal year 2026/27 at a meeting of the provincial assembly on Wednesday, October 7. The schedule was finalized at a meeting of the Business Advisory Committee on Tuesday, October 6. Industry, Tourism, Forest and Environment Minister Prakash Bahadur Rawal presented the proposed schedule at the meeting. Speaker Bhim Bahadur Bhandari has called the provincial assembly meeting for 5 pm Wednesday at the request of the provincial cabinet. The size of the new budget has not yet been officially disclosed. The previous fiscal year’s budget, presented by then-Economic Affairs Minister Bikram Singh Dhami, amounted to Rs 37.7 billion. The previous budget triggered political disagreements and contributed to a reshuffling of the coalition between the CPN (UML) and the Nepali Communist Party, ultimately resulting in the budget failing to pass. The upcoming budget will be presented under Chief Minister Khagaraj Bhatta and will be the final budget of the current provincial assembly’s term.
Energy ministry forms high-level committee with private sector to address implementation issues
The Ministry of Energy, Water Resources and Irrigation has formed a high-level committee with private sector representation to address policy and legal challenges affecting energy projects. The committee, coordinated by Joint Secretary Sunil Paudel, includes officials from the Department of Electricity Development and the Nepal Electricity Authority, as well as representatives of the Independent Power Producers’ Association, Nepal—Narendra Ballabh Panta, Abhigya Malla, Anup Acharya and engineer Shirich Pandey. Senior Divisional Engineer Shalikram Bhandari has been appointed as the member secretary. The committee will recommend measures to facilitate the implementation of energy projects.
Government amends securities regulations to facilitate primary investment by NRNs
The Government of Nepal has introduced the eighth amendment to the Securities Registration and Issue Regulations, 2026, creating formal provisions for Non-Resident Nepalis (NRNs) to invest directly in Nepal’s primary share market. The amendment establishes a mechanism through which NRNs can participate in primary share offerings. Under the revised provisions, eligible companies may allocate between 10 and 85 percent of their issued capital to NRN investors, provided the shares are offered at face value without a premium. Shares issued under the arrangement must be purchased in a minimum lot of 1,000 shares. The chief executive officer of the Non-Resident Nepali Association Development Fund said the new provision creates an important institutional mechanism for channeling diaspora capital into Nepal’s financial markets.
Government reclaims 112 ropanis of public land in Kathmandu
The Ministry of Land Management, Cooperatives and Poverty Alleviation has transferred 112 ropanis of public land in Kathmandu Metropolitan City-4 to government ownership. The Dillibazar Land Administration Office carried out the process based on recommendations made by the High-Level Committee on Investigation and Protection of Government and Public Lands, commonly known as the Rawal Commission, in fiscal year 1952/53. An implementation committee led by Chief Survey Officer Ramesh Gyawali has begun reviewing land records to remove encroached areas and restore public ownership. The committee includes senior officials from the Ministry of Home Affairs, Ministry of Physical Infrastructure and Transport, Department of Land Management and Archives, and Department of Survey. Officials said investigations would continue into properties identified in the original 1952 report.
Lumbini highlights two years of governance and infrastructure progress amid budget execution challenges
The Lumbini provincial government has released a progress report covering institutional reforms, infrastructure development and administrative improvements made over the past two years. The report highlights the completion of permanent provincial administrative infrastructure in Deukhuri, adoption of anti-corruption measures, introduction of a digital Chief Minister’s Dashboard and implementation of a formal project bank system. However, overall budget expenditure stood at 67 percent, while revenue collection targets were not met, pointing to continued challenges in budget implementation. During the period, the provincial government also scrapped allowances for former high-ranking officials, introduced a code of conduct for ministers and integrated decentralized civil service records.
Annapurna Circuit reopens after snow clearance as Ghandruk tourism picks up
The Annapurna Circuit trekking route connecting Manang and Mustang through the Annapurna Conservation Area has reopened after a 20-member team cleared heavy snow from Thorong-La Pass on Monday. The snow-clearing initiative was led by the Muktinath Hotel Association. Association President Suraj Gurung said the route is now accessible to international tourists during the peak autumn trekking season. Meanwhile, tourism activity in Ghandruk is gradually recovering after the Birethanti-Ghandruk road was reopened following disruptions caused by monsoon floods and landslides. Local tourism businesses have begun welcoming visitors ahead of the festival season.
Chitwan business community urges action to protect Narayangadh from Narayani erosion
Industrialists and business leaders from Chitwan have called for urgent measures to protect Narayangadh from erosion caused by the Narayani River. A delegation led by Chitwan Chamber of Commerce and Industry President Chiranjivi Subedi met Rastriya Swatantra Party President and House of Representatives member Rabi Lamichhane on Monday and urged the government to address the growing erosion risk. The delegation called for immediate technical studies and the mobilization of state agencies to construct effective embankments. Lamichhane assured the business community that he would coordinate with relevant government ministries to expedite protective infrastructure works. All border points between India and China are reportedly closed due to adverse weather conditions.
Gurans Microfinance to hold 11th annual general meeting
Gurans Laghubitta Bittiya Sanstha will hold its 11th annual general meeting on Tuesday at Hile Kanzirowa Makalu Hotel in Dhankuta from 9 am. The meeting will consider a proposal to distribute dividends from the company’s profits for fiscal year 2025/26. The proposed distribution consists of 9.5 percent bonus shares and a 0.5 percent cash dividend to cover taxes on the bonus shares. The company has fixed October 14, 2026, as its book closure date. Shareholders holding the company’s shares on the Nepal Stock Exchange through October 13 will be eligible to participate in the meeting and receive the approved dividend.
Rastriya Banijya Bank announces Rs 3 billion debenture
Rastriya Banijya Bank has announced the issuance of a seven-year corporate debenture worth Rs 3 billion, offering an annual interest rate of 6 percent. The instrument, named the 6 Percent RBBL Debenture 2089 (2032/33), has a face value of Rs 1,000 per unit, with three million units to be issued. Of the total issue, Rs 1.8 billion, or 60 percent, will be allocated through private placement, while Rs 1.2 billion will be offered to the general public. Five percent of the public issue has been reserved for mutual funds. Investors must apply for at least 25 units. Kumari Capital is managing the issue, which has received an AA- rating from Care Ratings Nepal.
Sikles Hydropower proposes 13.375 percent dividend
The board of directors of Sikles Hydropower Company has proposed a total dividend of 13.375 percent from its profits for fiscal year 2025/26. The proposal, approved at a board meeting on October 5, 2026, includes 12.706 percent bonus shares and 0.669 percent cash dividend to cover applicable taxes on the bonus shares. The proposed distribution is subject to approval from the Electricity Regulatory Commission and endorsement by shareholders at the company’s upcoming annual general meeting.
Durga Prasai released on Rs 200,000 bail
The Kathmandu District Court has ordered the release of medical entrepreneur Durga Prasai on Rs 200,000 bail in an electronic transaction case. A bench led by District Judge Umesh Prasad Luintel issued the order on Tuesday. The Cyber Bureau had arrested Prasai on June 26 following a complaint filed by Rastriya Swatantra Party lawmaker Rachana Khatiwada. Police had registered a case against Prasai under the Electronic Transactions Act over comments he allegedly made on YouTube concerning the lawmaker.
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