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 modest financial market gains, infrastructure investment progress and persistent structural challenges affecting businesses and consumers. The NEPSE index edged up 2.64 points to 2,655.22, supported by positive market breadth and Rs 3.46 billion in turnover, while the proposed 7.18 percent dividend from Mahalaxmi Development Bank and a 342.6 percent rise in Reliance Spinning Mills’ quarterly profit indicate encouraging corporate performance. However, declining gold and silver prices reflect a softer domestic precious metals market.
Infrastructure development remains a major priority, with progress on the Arun-III and Upper Karnali hydropower projects and renewed preparations for the Janakpurdham-Ayodhya railway link offering prospects for energy production, tourism and cross-border economic activity. Nepal’s engagement with the European Union also highlights the importance of export diversification as the country approaches graduation from least developed country status.
Nevertheless, persistent structural weaknesses remain evident. Poor road connectivity has pushed essential commodity prices in remote Gorkha settlements to several times their official rates, while smuggled Indian marigolds threaten domestic floriculture. Meanwhile, loan recovery measures, trekking permit enforcement and improved airport services underscore growing attention to financial discipline, regulatory compliance and service delivery.
Overall, sustainable economic growth will depend on translating investment commitments into completed infrastructure, strengthening domestic production, improving market access and addressing regional disparities in economic opportunity.
NEPSE gains 2.64 points as turnover reaches Rs 3.46 billion
The Nepal Stock Exchange (NEPSE) index edged up 2.64 points to close at 2,655.22 on Friday, recording a modest gain amid fluctuations throughout the trading session. The benchmark index reached an intraday high of 2,662 points before settling in positive territory at the close. A total of 10.7 million shares of 336 companies were traded through 33,215 transactions, generating a turnover of Rs 3.46 billion. Market breadth remained positive, with share prices of 158 companies advancing, while 107 declined. The prices of 14 companies remained unchanged. Most sectoral indices closed higher, although the ‘Others’ group recorded a marginal decline. Crest Micro Life Insurance emerged as the top gainer, with its share price climbing 14.08 percent to Rs 1,192 per share. Meanwhile, Ghorahi Cement recorded the highest transaction value, with shares worth more than Rs 216.3 million traded during the session.
Gold price falls Rs 5,900 per tola, silver drops to Rs 3,810
Gold and silver prices declined in the domestic market on Friday, with hallmark gold losing Rs 5,900 per tola and silver falling by Rs 110 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold is being traded at Rs 283,000 per tola (11.66 grams), down from Rs 288,900 on Thursday. Similarly, the price of silver has decreased to Rs 3,810 per tola from Rs 3,920 a day earlier, marking a decline of Rs 110. The latest adjustment reflects a downward movement in the domestic precious metals market.
NOC depots to remain open during Tihar holidays
Nepal Oil Corporation (NOC) has decided to keep its depots and provincial offices operational during the Tihar holidays, including public holidays, to ensure an uninterrupted supply of petroleum products. The decision has been taken in view of consumer demand and to facilitate the smooth distribution of petroleum products during the festive period. According to NOC spokesperson Manoj Kumar Thakur, depots and provincial offices in Biratnagar, Amlekhgunj, Thankot, Pokhara, Bhairahawa, Surkhet, Dhangadhi, Nepalgunj, Dang, Janakpur, Charali, Birgunj and Dipayal will remain open as required based on local demand. The Corporation said the arrangement would help ensure the availability of petroleum products and minimise inconvenience to consumers during the festival holidays.
Investment Board reports progress in major hydropower and infrastructure projects
Investment Board Nepal (IBN) has reported significant progress in the physical construction and financial management of several major hydropower and infrastructure projects following its periodic review of ongoing developments. Physical construction of the 900-megawatt Arun-III Hydroelectric Project has crossed 77 percent, while progress on its transmission line construction has exceeded 60 percent. The project is targeting commercial electricity generation by mid-March 2027. Similarly, financial management documents worth Rs 163 billion have been secured for the 900-megawatt Upper Karnali Hydropower Project, with construction expected to begin within four years. Investment approvals have also been finalised for the Nar Khola and Sani Bheri-3 hydropower projects, valued at Rs 10.75 billion and Rs 10.42 billion, respectively. The board has also expanded its single-window service facilities to simplify administrative procedures and improve services for investors.
Immigration Department fines travel agency and four Mexican nationals for unauthorised trekking
The Department of Immigration has fined a registered travel agency and four Mexican nationals for undertaking unauthorised trekking activities in the restricted area of Lower Dolpa in violation of Nepal’s immigration and tourism regulations. Acting on investigation reports submitted by the District Administration Office, Dolpa, the department imposed a fine of Rs 50,000 on Mount Rose Tours and Travels Private Limited under Section 10(4) of the Immigration Act, 1992. Each of the four foreign nationals was also fined Rs 10,000 and required to pay an additional restricted-area permit fee of USD 20. The department has reiterated the need for strict compliance with permit requirements and regulations governing travel and trekking in restricted areas.
Salt prices reach Rs 200 per packet in remote Chumnubri due to poor road access
Residents of remote settlements in Chumnubri Rural Municipality, Gorkha, are being forced to pay as much as Rs 200 for a packet of iodised salt due to the lack of road connectivity and high transportation costs. Although the Salt Trading Corporation has fixed the base price at Rs 26 per packet, transportation difficulties and reliance on mules to carry essential supplies have pushed retail prices sharply higher. The cost of transporting goods between Pangsing and Samdo alone reaches Rs 100 per kilogram. Residents of Samdo and Samagaun are paying Rs 200 per packet, while those in Lho and Chhule are paying between Rs 150 and Rs 200. Although government subsidies cover transportation costs up to Sirdibas in Ward No. 3, settlements in the upper mountainous areas remain outside the subsidy arrangement. The prolonged delay in completing the Benighat-Arughat-Larke road project has further compounded transportation difficulties, leaving residents across six remote wards struggling with high prices of essential commodities.
Industry minister highlights EU support for expanding Nepali exports
Minister for Industry, Commerce and Supplies Deepak Kumar Shah has highlighted the importance of continued cooperation with the European Union (EU) in expanding market access and diversifying exports of Nepali manufactured products. Speaking at an event in Kathmandu marking the 25th anniversary of the EU’s Everything But Arms (EBA) trade preference initiative, Shah reaffirmed the government’s commitment to addressing practical trade barriers and strengthening the country’s export capacity. EU Ambassador to Nepal Charles Whiteley praised the craftsmanship and distinctive products of Nepali enterprises, emphasising their potential in international markets. The Federation of Export Entrepreneurs Nepal also stressed the need for continued dialogue and cooperation between Nepal and the EU, particularly as the country prepares to graduate from its least developed country (LDC) status.
Smuggled Indian marigolds worth Rs 5.9 million seized in Morang and Jhapa
The illegal import of marigold flowers from India has raised concerns among domestic floriculturists ahead of Tihar, with authorities seizing smuggled flowers worth Rs 5.9 million from cold storage facilities in Morang and Jhapa. Local flower producers say the influx of cheaper Indian flowers is threatening domestic production and undermining their investment in floriculture. Ramkumar Rajbanshi, a floriculturist from Naya Bazar, Katahari-4, Morang, said he had invested approximately Rs 1.2 million in cultivating marigolds on around 2.709 hectares of land, employing 20 to 25 workers daily. Rajbanshi, who supplies flowers to Biratnagar, Morang, Sunsari, Jhapa and Kathmandu, said he had already suffered losses after approximately 1,000 kilograms of flowers were damaged by rainfall. He called on the authorities to strengthen border monitoring to control illegal imports. Similarly, a group led by Kavita Basnet in Shivasatakshi Municipality-10, Jhapa, has invested in cultivating marigolds, targeting an income of Rs 300,000 from 10,000 plants grown on 2,031.77 square metres of land. The group has also expressed concern over competition from smuggled flowers. The Armed Police Force Nepal’s No. 3 Battalion Headquarters, Kankalini, Morang, led by Superintendent of Police Gehendra Bahadur Bhandari, seized the smuggled flowers from cold storage facilities in the two districts. Despite domestic production meeting an estimated 80 to 85 percent of demand during Tihar, illegal imports continue to pose challenges for local producers.
Tribhuvan International Airport introduces live video feeds of baggage handling
Tribhuvan International Airport has introduced a live video monitoring system in its international arrival baggage claim area, allowing passengers to watch the handling of their luggage in real time. The facility enables arriving passengers to view live footage of baggage handling, from the aircraft’s cargo hold to the conveyor belts in the arrival terminal. The initiative has been introduced following ministerial directives, with the objective of improving transparency, enhancing passenger convenience and reducing uncertainty over baggage handling. Airport authorities expect the system to help passengers monitor the movement of their luggage while strengthening accountability and improving the quality of ground-handling services. The initiative is also part of broader efforts to modernise airport services and improve the passenger experience in line with international aviation standards.
Janakpurdham-Ayodhya railway link advances with technical inspection
Preparations for a proposed railway connection between Janakpurdham in Nepal and Ayodhya in India have moved forward following a technical inspection involving a 17-coach train at Kurtha Railway Station in Dhanusha. The train, accompanied by Indian Railway officials and operating under locomotive number WDP-4D 40370, arrived from Ayodhya on Thursday for preliminary technical assessments. The inspection focused on railway infrastructure, track capacity, operational safety and technical readiness for the proposed cross-border service. Nepal Railway Company said preliminary tests and inspections had been conducted as part of preparations for the service. However, formal bilateral agreements covering the commencement date, security arrangements and administrative procedures are yet to be finalised. Business leaders in Janakpurdham expect the proposed railway connection to boost religious tourism, hospitality businesses and cross-border trade by facilitating travel between the two important religious destinations. They have also called for streamlined immigration procedures and improved customs facilities to ensure the service operates smoothly and delivers economic benefits to the region.
Mahalaxmi Development Bank proposes 7.18 percent dividend for FY 2025/26
Mahalaxmi Development Bank Limited has proposed a total dividend of 7.18 percent from its profits for the fiscal year 2025/26. A meeting of the bank’s board of directors, the 657th of its kind, decided to recommend a dividend comprising 3.40 percent bonus shares and 3.78 percent cash dividends, including applicable taxes. Based on the bank’s paid-up capital of Rs 4.511 billion, the proposed distribution includes bonus shares worth Rs 156.9 million and cash dividends amounting to Rs 170.5 million. The proposed dividend distribution is subject to approval from the relevant regulatory authorities.
Rastriya Banijya Bank gives loan defaulters 35 days to clear dues
Rastriya Banijya Bank has issued a 35-day notice to hundreds of women entrepreneurs who have defaulted on unsecured concessional loans provided under government-supported poverty alleviation programmes. In public notices issued on Friday, the state-owned bank directed the borrowers to clear their outstanding principal, interest and penalty charges within the stipulated period. The bank warned that failure to settle the dues could result in legal action, including blacklisting through the Credit Information Bureau, requests for passport cancellation, restrictions on foreign travel and the initiation of legal proceedings for asset recovery. The defaulted loans involve borrowers from various branches across the country and cover a range of small-scale enterprises, including agricultural businesses, tailoring shops, beauty salons and retail ventures established under concessional lending schemes.
Reliance Spinning Mills posts 342.6 percent profit growth in first quarter
Reliance Spinning Mills Limited has reported a sharp increase in net profit, with earnings rising 342.6 percent to Rs 304.8 million in the first quarter of fiscal year 2026/27. According to the company’s unaudited financial statements, net profit stood at Rs 68.8 million during the corresponding period of the previous fiscal year. The company’s operating revenue also increased by 28.8 percent to Rs 3.20 billion during the review period, reflecting improved business performance. Meanwhile, financial expenses declined to Rs 43.8 million, providing further support to the company’s profitability. With a paid-up capital of Rs 1.90 billion, the company reported annualised earnings per share (EPS) of Rs 63.97.
Women entrepreneurs receive leadership training in Kathmandu
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Associated Women Entrepreneurs of Nepal jointly organised a leadership development workshop in Kathmandu on Friday to strengthen the managerial and professional capabilities of women entrepreneurs. The workshop, titled Self Leadership: Purpose, Power and Personal Identity, focused on developing self-awareness, improving decision-making skills and building confidence and professional resilience among women business founders. The training was facilitated by Kunduz Kachieva, an international management expert from Germany. Organisers highlighted the importance of strengthening women’s leadership, communication and management skills to support sustainable business growth and promote a more inclusive entrepreneurial environment.
Foreign Minister Khanal to lead Nepali delegation to COP31 in Türkiye
Minister for Foreign Affairs Shisir Khanal is set to leave for Antalya, Türkiye, on November 7 to lead the Nepali delegation to the 31st Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change (UNFCCC).The global climate conference is scheduled to take place from November 9 to 20. According to the Ministry of Foreign Affairs, Minister Khanal will address the opening plenary of COP31 on November 9. He will also participate in the Leaders’ Summit scheduled for November 11 and 12. During the conference, Khanal is scheduled to attend several high-level events, including Advancing the Mountain Agenda: Glaciers, Cryosphere and Resilience under Overshoot, Shared Responsibility and Sustainable Financing. The event is being jointly hosted by Nepal, Tajikistan, the Kyrgyz Republic, Bhutan and Pakistan.
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