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 remains mixed, with financial markets showing caution even as liquidity remains abundant and the government pursues regulatory and development initiatives. The NEPSE index fell 6.38 points despite turnover rising to Rs 3.75 billion, with 12 of 13 sub-indices declining, suggesting broad-based selling pressure. At the same time, gold and silver prices increased, reflecting continued demand for traditional safe-haven assets ahead of major festivals.
Nepal Rastra Bank’s Rs 30 billion liquidity-absorption auction highlights the banking sector’s substantial excess liquidity. Deposits of Rs 8.458 trillion against credit of Rs 6.61 trillion indicate that weak credit demand remains a challenge. The NRB’s decision to facilitate access to new Rs 100 notes through ATMs also reflects efforts to modernize currency distribution during Dashain.
Beyond finance, policy activity is focused on strengthening domestic production, infrastructure and regulation. Proposed seasonal import restrictions aim to protect farmers from price pressure, while reforms in the energy sector seek to expand generation and transmission capacity. However, regulatory delays in corporate acquisitions and uncertainty over the Sudurpashchim budget point to institutional bottlenecks.
Meanwhile, the Lete-Korala transport disruption illustrates how weather-related infrastructure problems can affect trade and festival-season supply chains. Overall, the developments suggest an economy with strong liquidity and investment potential but constrained by weak demand, regulatory uncertainty, infrastructure vulnerabilities and administrative delays.
NEPSE falls 6.38 points as turnover rises to Rs 3.75 billion
The Nepal Stock Exchange (NEPSE) index fell 6.38 points on Wednesday to close at 2,572.34 points, despite an increase in daily trading turnover. The Sensitive Index, which tracks larger companies, declined by 0.63 points. The Float Index fell 0.26 points, while the Sensitive Float Index dropped 0.19 points. Market turnover, however, increased to Rs 3.748 billion from Rs 3.13 billion on Tuesday. Of the 13 sub-indices traded during the session, only one posted a gain while 12 declined, indicating broad-based selling pressure. Ghalemdi Hydro recorded the largest gain, with its share price rising 6.25 percent. The company also topped the turnover chart, with shares worth Rs 322.1 million changing hands.
Gold rises to Rs 292,300 per tola, silver to Rs 4,425
Gold and silver prices increased in the domestic market on Wednesday, with gold rising by Rs 800 per tola and silver by Rs 10 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 292,300 per tola, up from Rs 291,500 on Tuesday. Similarly, the price of silver increased to Rs 4,425 per tola from Rs 4,415 on Tuesday. The latest rise has pushed both precious metals to higher prices compared with the previous trading day.
NRB absorbs Rs 30 billion through 28-day deposit collection auction
Nepal Rastra Bank has conducted a deposit collection auction worth Rs 30 billion to absorb excess liquidity from the banking system. Commercial banks, development banks and finance companies participated in the competitive multi-price auction by submitting interest-rate bids. The banking system currently holds deposits of around Rs 8.458 trillion against credit of Rs 6.61 trillion, leaving significant lendable funds amid relatively weak credit demand. The deposits collected through the auction will mature after 28 days, with repayment of principal and interest scheduled for November 4, 2026.
NRB directs banks to dispense new Rs 100 banknotes through ATMs for Dashain
Nepal Rastra Bank (NRB) has instructed banks and financial institutions to make new Rs 100 banknotes available through ATMs during Dashain and other upcoming festivals. Some banks have already begun dispensing the notes through newly configured ATMs. The NRB has been distributing clean and fresh banknotes through its Thapathali office, provincial offices and commercial banks since September 17. Several banks and financial institutions have also started providing new Rs 100 notes through ATMs. Over the past four to five years, the central bank has gradually moved away from introducing new banknotes specifically for festivals, instead treating the exchange of currency as a regular banking service. The decision not to issue a separate public notice for Dashain was also influenced by the Bhotekoshi flood, which caused significant loss of life and property shortly before the festival season. Currency in circulation stood at Rs 794 billion as of September 16. The NRB estimates that the amount could rise by around 8 to 10 percent during Dashain.
Regulatory amendments on corporate acquisitions face delay
The Securities Board of Nepal has delayed proposed regulatory amendments concerning mergers and acquisitions involving unlisted private companies and listed public companies. The issue came under review following a corporate initiative involving the acquisition of a private company by a publicly listed pharmaceutical firm. A specialized study committee subsequently prepared recommendations on compliance with existing corporate and securities laws. Although the committee has submitted its review report, implementation of proposed amendments to the Securities Registration and Issue Regulation and related acquisition guidelines has been delayed. The delay has prompted discussion among financial-market stakeholders about regulatory oversight and corporate governance standards.
Agriculture minister calls for seasonal import restrictions to protect domestic producers
Forest and Environment Minister Gita Chaudhary has stressed the need to restrict agricultural imports during peak domestic harvesting periods to ensure fair prices for local producers. During a ministerial consultation, proposals were discussed to establish minimum support prices for major crops, including paddy, wheat, maize and millet, and to suspend import permits until domestic production has been adequately absorbed by the market. Chaudhary proposed a temporary four-month moratorium on agricultural imports during major harvest seasons. She also suggested using state trading mechanisms, with additional funding if necessary, when private-sector procurement is insufficient. The discussions also covered regulations governing honey and dairy imports, promotion of tea exports through bilateral recognition agreements, geographical indication legislation and monitoring of agricultural commodity prices.
Energy Ministry advances reforms in power generation, transmission and trade
The Ministry of Energy, Water Resources and Irrigation is advancing measures aimed at increasing investment and supporting economic growth under Minister Biraj Bhakta Shrestha. The Nepal Electricity Authority has extended the required commercial operation dates for 27 projects with a combined capacity of 540.47 megawatts under four progress-based categories. Meanwhile, 320 projects with a combined capacity of 8,292 megawatts are under construction. A subcommittee has also submitted recommendations concerning new power purchase agreements. Work on the 400-kilovolt West Seti transmission line is progressing under a public-private partnership model, with an estimated cost of around Rs 20 billion. Wheeling charges for fiscal year 2026/27 have been fixed at Rs 413,000 per megawatt per month. The ministry also reported that all border points between Nepal and India and Nepal and China are currently closed.
Cabinet approves compensation for 153 victims recommended by NHRC
The Cabinet on Wednesday approved compensation for 153 victims recommended by the National Human Rights Commission (NHRC). The decision was taken at a meeting held at the Office of the Prime Minister and Council of Ministers in Singha Durbar, according to government spokesperson and Minister for Education and Sports Sasmit Pokharel. The compensation forms part of the government’s response to recommendations made by the constitutional human rights body for victims eligible for relief under prevailing laws. The Cabinet also approved the government’s consent for Portugal to establish a Consulate General in Kathmandu.
Ministry proposes slaughterhouse regulation changes to improve hygiene and business standards
The Ministry of Agriculture, Forest and Environment has published a draft amendment to the regulations governing slaughterhouses and meat inspection, aiming to modernize processing standards and strengthen regulatory oversight. The proposed rules require retail meat shops to be completely separated from animal slaughter areas. They also require covered shelters where livestock can rest for at least 12 hours before slaughter. The draft makes health inspections, hygienic washing facilities and dedicated chillers or freezers in meat sales areas mandatory. Meat inspectors would have greater authority to inspect facilities, condemn unfit meat and certify products through official grading stamps. Operators would also be required to maintain traceability records through a unified digital system aimed at improving food safety and public health.
Land Ministry transfers 44 Gazetted Second-Class officers
The Ministry of Land Management, Cooperatives and Poverty Alleviation, in coordination with the Ministry of Federal Affairs and General Administration, has transferred 44 Gazetted Second-Class officers. The transfers involve officials from the education, general administration and engineering services. According to official administrative records, the transfers were completed on Tuesday as part of routine civil service management aimed at improving institutional efficiency across government offices and regional administrations.
Money laundering investigation team raids residences linked to former Chief Justice Rana
The Department of Money Laundering Investigation conducted coordinated searches at several residences linked to former Chief Justice Cholendra Shumsher Rana and four other individuals as part of an ongoing financial investigation. According to departmental sources, investigation teams searched the residences of Rana, his brother Prabhu Shumsher Rana, Nawaraj Thapaliya, Dipak Timalsina and another associate. Investigators reportedly seized financial records, digital storage devices, property documents and other evidence during the searches.The operation follows preliminary findings indicating possible unexplained accumulation of assets, undisclosed commercial interests and suspicious financial transfers. Officials said the seized materials will undergo forensic examination to determine whether any offences were committed under prevailing anti-money laundering and asset-declaration laws.
Supreme Court order creates uncertainty over Sudurpashchim budget
A Supreme Court interim order has created uncertainty over the Sudurpashchim Province government’s plan to introduce a revised budget for fiscal year 2026/27. The order was issued in response to a writ petition filed by advocate Maniram Upadhyaya. A single bench of Justice Mahesh Sharma Poudel directed the Office of the Chief Minister and Council of Ministers to halt the budget revision process and appear before the court for legal proceedings. The court also ordered that the original budget presented before the provincial assembly on June 15 remain in effect until the dispute is resolved. The petitioner’s lawyers argued that replacing a budget already tabled before the assembly with a new framework would violate established procedures. Despite the court’s interim order, provincial authorities had scheduled a cabinet meeting to approve revised estimates prepared by the Ministry of Economic Affairs for presentation to the provincial assembly. The dispute could prolong the province’s budgetary uncertainty, affecting development spending and routine fiscal administration. The previous provincial government had proposed an initial expenditure framework of Rs 37.7 billion.
Jaleshwar traders protest Madhesh minister’s market monitoring after fines
Businesspeople in Jaleshwar have protested the market-monitoring activities of Madhesh Province Minister for Home Affairs, Communications and Law Fakira Mahato, accusing him of intimidating traders and failing to follow proper procedures. Mahato conducted market inspections in Jaleshwar on Wednesday with officials from the Food Technology and Quality Control Office in Janakpur. Two shops were fined Rs 50,000 each, while sweets found to contain insects were ordered destroyed. Following the inspection, businesspeople closed their shops and submitted a memorandum to the District Administration Office. They demanded that food products be subjected to laboratory tests before punitive action is taken and objected to what they described as arbitrary fines, threats of arrest and destruction of goods. They also accused the minister of conducting high-profile monitoring and roadside clearance campaigns for publicity without ensuring follow-up action. The dispute follows earlier controversies over Mahato’s market-monitoring activities in Bardibas and Janakpurdham. Mahato defended the inspections, saying strict action would be taken against businesses that put public health at risk.
Around 500 containers stranded along Lete-Korala road after rain and landslides
Around 500 container trucks remain stranded along the road between Lete and the Korala border point following heavy rainfall, landslides and snowfall. Repair work is underway on damaged sections in Myagdi, while technicians involved in the road project estimate that it could take another week to fully restore vehicular movement. Despite the disruption, some cargo trucks have reached Jomsom after the northern section of the road was partially restored. Around 300 containers carrying goods for the Dashain and Tihar festivals, along with more than 200 electric vehicles, remain stranded and are awaiting customs clearance. Damage to power transmission lines and internet infrastructure has also disrupted services, affecting the regular operation of the Upper Mustang Customs Office.
Demand for traditional Marsi rice boosts cultivation and support programmes
Growing demand for traditional Marsi rice, also known as Himalayan red rice, has encouraged farmers to expand cultivation, with provincial and federal programmes providing financial support for its promotion and conservation. The provincial agriculture ministry has allocated Rs 850,000 for organic farming promotion and conservation of indigenous crops. An additional Rs 800,000 has been secured through the Prime Minister Agriculture Modernization Project to establish dedicated rice production blocks. According to local agricultural authorities, Marsi rice is currently cultivated on 1,068 hectares, accounting for 37 percent of the district’s total paddy cultivation area of 2,888 hectares. During the previous harvest season, around 175 metric tonnes of Marsi rice were sold commercially, generating approximately Rs 35 million in income for local farming households.
Local governments criticized for borrowing Rs 338.7 million without federal approval
Seventeen local governments borrowed a total of Rs 338.7 million from the Town Development Fund during fiscal year 2025/26 without obtaining the required approval from the federal government or making provisions for the loans in their budgets. According to the eighth annual report of the National Natural Resources and Fiscal Commission submitted to the federal parliament, none of the local governments involved had sought prior federal approval as required under intergovernmental fiscal management legislation. Seven municipalities did not include loan estimates in their annual budgets, while some local governments exceeded recommended borrowing limits. The commission stressed that internal borrowing should be used only for productive capital investment, infrastructure development and projects capable of generating long-term economic returns within established fiscal limits.
Dhangadhi’s Saturday market provides business opportunities for 150 women
Dhangadhi Sub-Metropolitan City has been using its Saturday Market to help women entrepreneurs promote their products and generate income by providing them with free access to customers. According to Deputy Mayor Kandakala Rana, the weekly market, launched in 2024, has created self-employment opportunities for around 150 women. The market features traditional foods prepared by Rana Tharu, Dangaura Tharu, Newar and hill communities, along with handmade bags, handicrafts, handwoven products, leaf plates and home-decor items. Women who previously found it difficult to market products made at home say the weekly market has helped them reach customers more easily and increase their earnings. The sub-metropolitan city also uses the market to identify women’s training needs and encourage them to turn their skills into businesses. The 2026 edition of the market is scheduled to resume on October 10 following a break during the summer and rainy seasons. Cultural programmes and activities for children and senior citizens are also held at the market.
NRB to host fourth international conference on economics and finance
Nepal Rastra Bank (NRB) will organize its fourth international conference on economics and finance in Kathmandu on April 3 and 4, 2027. The conference will bring together policymakers, financial-sector professionals and academic researchers from Nepal and abroad. Its theme is “Economic Growth and Macro-Financial Stability: Risks and Challenges.” The conference will focus on economic growth, international trade, financial stability and monetary policy, with research topics also including central bank digital currencies, artificial intelligence, financial technology and green finance. Researchers wishing to participate must submit original completed papers by January 31, 2027. The selected papers will be announced by February 20. NRB said there will be no registration fee for participants. Accepted papers will be published digitally in the conference proceedings following the completion of administrative procedures by March 3, 2027.
Rajarshi Janak University estimates Rs 511.7 million budget for fiscal year 2026/27
Rajarshi Janak University has proposed an estimated annual budget of Rs 511.7 million for fiscal year 2026/27. The budget was presented at the university senate meeting and allocates Rs 210.8 million for capital expenditure and Rs 300.8 million for recurrent expenditure. The university currently has 5,927 students enrolled across its constituent and affiliated campuses and offers more than 20 academic programmes. Newly introduced programmes include BIT, MCA, BA LLB and LLM. University authorities aim to enroll at least 5,000 new students in the upcoming academic session while developing infrastructure on 9 bighas and 14 katthas of land acquired in Nagarain, Dhanusha.
Weather forecasts help farmers plan harvests in Kanchanpur
Weather forecasts have become an increasingly important tool for farmers in Kanchanpur, helping them plan harvesting and protect crops from unexpected rainfall and flooding. Farmers in Krishnapur and Bedkot municipalities, who once relied mainly on observing clouds and weather conditions, are now using mobile alerts and the 1155 weather information hotline to make farming decisions. Farmers said advance warnings have helped them avoid crop losses caused by unexpected rain and reduce damage to harvested paddy. However, they have also expressed concern about the reliability of weather information shared on social media, where it can be difficult to distinguish verified forecasts from inaccurate information. According to local agricultural authorities, 56,363 hectares of the district’s total 161,624 hectares are cultivable.
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