KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy is showing mixed signals as the festive season approaches, with modest financial-market gains alongside persistent infrastructure, supply-chain and institutional challenges. The NEPSE’s 2.31-point rise and nearly Rs 4 billion turnover suggest continued investor activity, while gold’s rise to Rs 292,800 per tola reflects ongoing demand for safe-haven assets. At the household level, government and private-sector measures—including reduced domestic airfares, cross-brand LPG exchanges and wider digital electricity payments—aim to ease seasonal costs and improve service access.
However, transport disruptions, particularly along northern trade routes and the Beni-Jomsom corridor, continue to threaten supply chains, raise freight costs and contribute to potential price pressures. In the energy sector, declining power losses in Madhesh indicate operational improvements, while new regulatory measures and Japan’s Rs 2.767 billion airport grant point to longer-term infrastructure and investment support. Major public institutions, however, face financial and implementation challenges, illustrated by Tribhuvan University’s projected Rs 6.31 billion shortfall and the delayed Fast Track project, now targeted for completion in 2030.
Tourism remains a key source of optimism, with 788 climbers generating substantial royalty revenue and new cultural initiatives supporting domestic tourism. Overall, the developments highlight economic activity alongside structural bottlenecks requiring sustained policy and infrastructure reforms.
NEPSE gains 2.31 points as turnover nears Rs 4 billion
The Nepal Stock Exchange (NEPSE) index rose 2.31 points on Thursday to close at 2,574.65, reflecting a marginal improvement in the stock market. Total turnover stood at Rs 3.936 billion, with more than 11.2 million shares changing hands through 43,812 transactions involving 354 stocks. Among the 278 companies traded, share prices of 140 companies increased, while 127 declined and 11 remained unchanged. Ghalemdi Hydro Power recorded the highest turnover, with shares worth more than Rs 256.5 million traded. Himal Dolakha Hydropower, Peoples Hydropower, Sonapur Minerals and Himalayan Power Partner were also among the five companies with the highest turnover. Kutheli Bukhari Small Hydropower recorded the largest gain, rising 15 percent, while RBB Mutual Fund suffered the steepest decline, falling 8.07 percent.
Gold rises to Rs 292,800 per tola; silver falls to Rs 4,390
The price of gold increased while silver became cheaper in the domestic market on Thursday, October 8. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was priced at Rs 292,800 per tola (11.66 grams), up Rs 500 from Wednesday’s rate of Rs 292,300. Meanwhile, silver declined by Rs 35 per tola. It fell from Rs 4,425 on Wednesday to Rs 4,390 on Thursday.
Domestic airlines agree to offer festival-season tickets below approved fares
Domestic airlines have agreed to offer air tickets at fares below the approved rates during the upcoming festival season amid complaints over rising domestic airfares. The agreement was reached during a discussion held Thursday between the Civil Aviation Authority of Nepal (CAAN) and representatives of domestic airlines at the initiative of Prime Minister Balendra Shah and Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel. According to the Office of the Prime Minister and Council of Ministers, the airlines agreed to make tickets available at reduced fares and publish the applicable rates on their respective ticketing platforms. The Prime Minister’s Office said the discussion was aimed at ensuring effective implementation of the decision taken on December 13, 2015, which set minimum and maximum fares for domestic air services. The move comes in response to recurring complaints about fare hikes during major festivals.
Department directs employers to provide festival expenses to workers
The Department of Labor and Occupational Safety has instructed all employers and establishments to provide workers with festival expenses as required by law. In a statement issued Thursday, Deputy Director General Bipin Rajbhandari said Section 37 of the Labor Act, 2017, requires every worker to receive an amount equivalent to one month’s basic remuneration annually as festival expenses. The provision covers festivals observed in accordance with prevailing religious, cultural and traditional practices. The department said workers who are denied the legally mandated benefit can file a complaint or application with the Labor and Employment Office or the Department of Labor and Occupational Safety with jurisdiction over their workplace. It urged all employers and establishments to ensure that workers receive the festival allowance in accordance with the Labor Act.
LPG consumers to get cross-brand cylinder exchange facility
Consumers of liquefied petroleum gas (LPG) in the Kathmandu Valley will soon be able to exchange empty cylinders of one brand for filled cylinders of another brand without paying an additional fee during the festive season. The arrangement is being coordinated by Nepal Oil Corporation (NOC), LPG industries, dealers and security agencies to prevent shortages, particularly for consumers who have only one cylinder. An NOC executive director said the corporation had instructed LPG industries to introduce the facility to provide relief to consumers. He said customers would not have to pay the additional fee of up to Rs 300 previously reported for cross-brand cylinder exchanges. The locations where the exchange service will be available have yet to be finalized.
Energy minister urges wider use of digital electricity bill payments
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has urged electricity consumers to increasingly use digital platforms to pay their utility bills. Citing official data, Minister Shrestha said around 73 percent of consumers still pay their electricity bills at physical counters. Maintaining 655 collection counters across 129 distribution branches costs about Rs 597.9 million annually, he said. He emphasized that greater use of electronic payment systems would help optimize institutional resources, improve financial transparency and reduce the inconvenience of traveling to payment counters. The minister also urged community leaders and literate citizens to help elderly family members and others who may have difficulty using digital payment applications.
Electricity Regulatory Commission submits annual performance report
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha received the Electricity Regulatory Commission’s annual performance report for fiscal year 2025/26 from the commission’s chairperson. During the briefing, Minister Shrestha stressed the need for regulatory frameworks that strengthen investor confidence, safeguard consumer interests and enhance energy security in the face of climate-related disruptions. The commission’s report highlights the development of key regulatory instruments, including dispute resolution bylaws, open-access transmission directives, guidelines for reservoir-based power purchase agreements and regulations governing consumer tariff determination. For the coming fiscal year, the commission has prioritized institutional strengthening, expansion of regulatory mechanisms and support for structural reforms in power generation, transmission and distribution.
Japan provides Rs 2.767 billion grant to upgrade Tribhuvan International Airport
The Government of Japan has provided a grant of JPY 2.853 billion, equivalent to around Rs 2.767 billion, to upgrade air traffic control facilities at Tribhuvan International Airport. Japanese Ambassador to Nepal Maeda Toru and Finance Ministry Secretary Ghanshyam Upadhyaya signed the exchange of notes on October 8, 2026, coinciding with the 70th anniversary of diplomatic relations between Nepal and Japan. The project will modernize the airport’s aging control tower, uninterrupted power supply systems, heating and cooling facilities and fire protection infrastructure. Communication, navigation and surveillance equipment will also be upgraded to meet International Civil Aviation Organization standards. The improvements are expected to strengthen aviation safety, disaster resilience and long-term connectivity supporting tourism and international trade.
Power distribution losses decline in Madhesh Province
Electricity distribution losses in Madhesh Province have declined by 1.61 percentage points during the first two months of fiscal year 2026/27 compared with the corresponding period of the previous fiscal year. According to data from the provincial office of the Nepal Electricity Authority, overall distribution losses fell from 22.56 percent between mid-July and mid-September of the previous fiscal year to 20.95 percent during the same period this year. The decline has been attributed to measures such as removing unauthorized electricity connections, reconciling billing records and replacing faulty or outdated meters. Among the distribution centers, Simara in Bara recorded the lowest loss rate at 2.94 percent, while Maulapur in Rautahat continued to report a relatively high level of losses. Meanwhile, the regional office collected Rs 200.9 million in outstanding electricity dues after disconnecting power supplies to 8,782 delinquent accounts.
Fast Track construction reaches 50 percent after a decade
Physical progress on the national pride project Kathmandu-Terai/Madhesh Expressway, commonly known as the Fast Track, has reached around 50 percent after more than a decade of construction, according to the Nepal Army. The Army, which is overseeing the project, said more than Rs 94 billion has been spent on the expressway so far. As the project is unlikely to meet its existing deadline, the government has extended the completion date for a third time by three years, pushing the target to March-April 2030. Construction of major tunnels and bridges has advanced significantly, with domestic and international contractors working under 12 packages. However, uncertainty remains over the project’s Zero Point, particularly the Khokana-Bungmati section. The government has said it is preparing to resolve the issue and establish Khokana as the project’s Zero Point.
Tourism Board unveils Rs 1.70 billion budget for 2026/27
The Nepal Tourism Board has allocated a budget of Rs 1.70 billion for fiscal year 2026/27, with the third month of the fiscal year already underway. The board had allocated Rs 1.59 billion in fiscal year 2025/26 but spent only Rs 894.7 million, or 56 percent of the budget. Its expenditure stood at Rs 1.16 billion in fiscal year 2024/25. The board currently has no chief executive officer after the government scrapped political appointments. The absence of a permanent CEO has affected the implementation of strategically important programs, leaving the institution largely focused on routine activities. For the current fiscal year, the board expects to generate its largest source of income, Rs 1.17 billion, from tourism service fees. Revenue from the Trekkers’ Information Management System (TIMS) is projected at Rs 46.6 million. The board has allocated Rs 156.3 million for employee expenses and Rs 102.1 million for office-related expenses.
Tourism Board allocates Rs 1.5 million for 100 Linge Ping swings for Dashain
The Nepal Tourism Board has allocated Rs 1.5 million to support the construction of 100 traditional bamboo swings, known as Linge Ping, at various locations across the country for the Dashain festival. The allocation has been included in the board’s budget for the current fiscal year as part of efforts to promote Nepal’s cultural and tourism heritage. Under its tourism heritage development program, the board has also allocated Rs 12 million for establishing, managing and operating Namaste Centers and other tourist information centers at various border points with India. The board has allocated funds to develop a safe trekking trail linking the base camp and high camp along the Shivadhara trekking route in Sankhuwasabha. It has also planned to establish and operate a tourist house in Khaptad and a tourist shelter in Badimalika. In addition, Rs 3 million has been allocated to develop an alternative route to the Mount Everest summit.
Autumn mountaineering season grants permits to 788 climbers on 31 peaks
The Department of Tourism has issued climbing permits to 788 mountaineers from 91 expedition teams for the 2026 autumn mountaineering season. Department Information Officer Suraj Ghimire said the permitted climbers include 582 men and 206 women attempting to scale 31 peaks. The government has collected Rs 247.2 million in royalties from the permits, equivalent to US$1,627,659. Mount Manaslu, at 8,163 meters, has attracted the highest number of climbers, with 500 mountaineers from 43 teams receiving permits. The mountain has generated Rs 225.8 million in royalty revenue. The climbers represent 70 countries, with China sending the largest contingent of 118 climbers, followed by mountaineers from Russia, France, the United States and the United Kingdom
Joint LPG sales counters planned at key locations in Kathmandu Valley
LPG companies are preparing to operate joint sales counters at around 15 to 20 major locations in the Kathmandu Valley during the festive season, allowing consumers to obtain gas regardless of their cylinder brand. A former president of the Nepal LPG Industry Association said LPG companies had reached an internal agreement to exchange cylinders among themselves for a limited period so that consumers would not have to return without gas because of brand differences. Discussions are underway to establish the counters in coordination with LPG industries, Nepal Oil Corporation, the Dealers’ Federation and security agencies. Proposed locations include the Nepal Army Headquarters, Chhauni and Sitapaila. The cylinders collected through the exchange system will later be sorted and managed by the respective LPG companies.
Tribhuvan University proposes budget of more than Rs 30 billion
Tribhuvan University has proposed a budget of Rs 30.87 billion for the upcoming fiscal year, an increase of 9.77 percent from its allocation for the current fiscal year. The university plans to raise Rs 15.24 billion, or 49.37 percent of the proposed budget, from internal sources, while Rs 15.62 billion, or 50.62 percent, is expected to come from government grants. According to the budget document, 66.14 percent of the total allocation will go toward recurrent expenditure, while 13.56 percent has been earmarked for capital expenditure. The university said rising financial liabilities, particularly those resulting from salary increases and a 100 percent rise in allowances for teaching and administrative staff, have placed additional pressure on its finances. It estimates a potential budget shortfall of Rs 6.31 billion amid declining government support. The expected government grant of Rs 7.31 billion is about Rs 4.5 million lower than the amount allocated in the previous fiscal year.
Border closures disrupt Nepal-China trade and push up prices ahead of festivals
Overland trade between Nepal and China remains severely disrupted due to prolonged closures and road problems along key northern transit routes. The Rasuwagadhi customs point was closed after flooding in the Bhote Koshi River in August, while operations at the Tatopani border were subsequently suspended following landslide warnings. Traders were forced to divert cargo through the Korala border point in Mustang. However, road blockages along the Beni-Jomsom highway have stranded around 200 container trucks and electric vehicles carrying goods intended for the Dashain and Tihar festivals. President of Ekata Trade Association Nepal said the diversions had pushed transportation costs from around Rs 75,000 to as much as Rs 500,000. The disruption has raised concerns about shortages and price increases for imported clothing and other consumer goods ahead of the winter trading season.
Passenger traffic rises on Pokhara-Jomsom route after road blockage
Passenger traffic on the Pokhara-Jomsom air route has increased sharply after flooding blocked the road connecting Mustang with Beni in Myagdi. Jomsom Airport chief Bishwanath Sharma said the limited number of flights has made it difficult to meet the growing demand. Tara Air and Summit Air have increased their Twin Otter services from five to seven flights a day. The ongoing tourist season, along with the Sohra Shraddha rituals in Kagbeni, has further increased passenger numbers, including travelers from Nepal and India. Pokhara International Airport information officer Binod Singh Rawat said most flights are operated in the morning because strong winds at Jomsom Airport in the afternoon restrict flight operations.
Sirsiya dry port resumes normal cargo operations
Cargo handling at the Sirsiya dry port has returned to normal after a protest that had blocked access to the main terminal was called off. Intermodal Transport Development Committee Office chief Kamal Gyawali said customs clearance had resumed, allowing stranded freight trains, container trucks and other cargo carriers to move toward their destinations. The protest was organized by local landowners seeking settlement of compensation claims related to 62 bighas of land acquired for the logistics complex. The dispute was resolved following an agreement reached at a subcommittee meeting chaired by the assistant chief district officer. The meeting decided to forward inquiries concerning structural depreciation assessments to the Ministry of Finance in line with the provisions applicable to fiscal year 2025/26.
Imported dragon fruit stranded in Jomsom distributed locally
A consignment of dragon fruit imported from China and worth around Rs 2.7 million has been distributed free of charge to residents in Jomsom after road blockages prevented the cargo from reaching Kathmandu. The container was carrying 924 crates of perishable fruit and had been stranded for more than 15 days after heavy monsoon rainfall from September 24 to 27 triggered landslides along the Beni-Jomsom highway. Transport representatives said prolonged delays and fluctuating temperatures had put the fruit at risk of complete spoilage. With no clear prospect of the road reopening soon, the cargo was distributed locally to prevent further losses.
Kutheli Bukhari Hydropower proposes 18 percent bonus shares
Kutheli Bukhari Small Hydropower Company has proposed distributing dividends to shareholders following a meeting of its board of directors on Thursday, October 8. The board has proposed 18 percent bonus shares and a 0.9474 percent cash dividend to cover applicable tax liabilities. The proposed dividend remains subject to approval from the Electricity Regulatory Commission and endorsement by the company’s upcoming annual general meeting.
Kumari Bank invites applications for 100,000 founder shares
Kumari Bank has opened a public offering for 100,000 founder shares after existing institutional shareholders failed to purchase the shares during the statutory priority period. In line with Nepal Rastra Bank regulations, the unclaimed founder shares have been made available for public bidding after eligible institutional investors did not submit applications within the prescribed period. Interested applicants have 15 days to submit their applications to Kumari Capital, the bank’s share registrar, in Naxal, Kathmandu, or at Kumari Bank’s central office in Tangal, Kathmandu.
American Chamber of Commerce in Nepal holds seminar on intellectual property
The American Chamber of Commerce in Nepal, in collaboration with the US Embassy, organized a seminar on intellectual property and commercial trust featuring senior officials from the United States Patent and Trademark Office. Held in October 2025, the program brought together more than 30 legal professionals and corporate representatives from member companies to discuss trademark protection, brand security and technology-related intellectual property. United States Patent and Trademark Office representatives Shailendra Bhumeralkar and Shilpi Jha interacted with Nepali business leaders on issues including counterfeiting, brand protection, software copyright and regulatory compliance. Participants stressed the need for predictable enforcement and timely legal remedies to strengthen the investment environment. Chamber officials said effective intellectual property protection is essential for integrating Nepali businesses with international markets and supporting domestic entrepreneurship.
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