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 reflects a combination of positive market performance, expanding investment opportunities and continuing challenges in infrastructure, supply management and financial stability. The Nepal Stock Exchange (NEPSE) gained 17.15 points to close at 2,591.80, with turnover reaching Rs 4.84 billion and all 13 sub-indices recording gains, indicating broad-based investor optimism. However, rising gold prices, which reached Rs 295,700 per tola, suggest continued interest in precious metals as an alternative store of value.
Nepal Rastra Bank’s plan to absorb Rs 70 billion in surplus liquidity highlights efforts to maintain monetary stability, while new regulations protecting bank employees during branch consolidation demonstrate increased attention to employment security and consumer rights.
Infrastructure investment remains a major priority. The approval of Rs 21.17 billion for two hydropower projects and the registration of renewable energy legislation signal continued commitment to expanding domestic energy capacity and promoting sustainable development. Proposed subsidies for teachers’ vehicle financing and grants for sugarcane farmers also reflect the government’s use of financial incentives to support specific sectors.
Meanwhile, festival-related transport pressures, cooking gas distribution difficulties and weather-related disruptions to fruit imports expose weaknesses in logistics and supply chains. Overall, Nepal’s economic outlook combines investment potential and policy initiatives with persistent operational challenges. Sustained growth will depend on effective implementation, stronger infrastructure, market oversight and resilient supply networks.
NEPSE Gains 17.15 Points as Turnover Reaches Rs 4.84 Billion
The Nepal Stock Exchange (NEPSE) index rose by 17.15 points to close at 2,591.80 on Friday, with share prices increasing for most listed companies. The Sensitive Index, which tracks the performance of large companies, gained 3.80 points to reach 465.85. Similarly, the Float Index advanced 1.42 points to 179.10, while the Sensitive Float Index increased by 1.50 points to 157.46. A total of 12,905,942 shares were traded during the session, generating a turnover of approximately Rs 4.84 billion. All 13 sub-indices closed higher. Share prices of 180 companies advanced, while 89 declined and 10 remained unchanged. According to NEPSE, investors in Kutheli Bukhari Small Hydropower, Sindhu Bikas Bank and Solu Hydropower recorded gains. Meanwhile, Ridge Line Energy Company, ICFC Finance Debenture and Prime Debenture were among the securities that posted losses.
Gold Rises Rs 2,900 to Rs 295,700 per Tola
Gold and silver prices increased in the domestic market on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 2,900 per tola (11.66 grams) to Rs 295,700, up from Rs 292,800 on Thursday. Similarly, silver gained Rs 15 per tola to reach Rs 4,405, compared with Rs 4,390 a day earlier. The latest figures show that both precious metals recorded gains in the domestic market.
NRB to Absorb Rs 70 Billion Through Two-Month Deposit Collection
Nepal Rastra Bank (NRB) has announced plans to absorb Rs 70 billion from the financial system through a two-month deposit collection instrument to manage excess liquidity in the banking sector. The central bank has invited bids from licensed Class A, B and C financial institutions for the open-market operation. Eligible institutions can submit competitive interest rate bids, with a minimum bid amount of Rs 100 million, subject to the prescribed conditions and increments. The principal and interest on the deposits will mature on December 9. The deposit collection instrument is among the central bank’s monetary management tools used to absorb surplus liquidity from the banking system and help maintain stability in short-term interest rates.
LP Gas Association arranges cylinder exchange at six locations
The Nepal LP Gas Industry Association has introduced a special arrangement for the exchange and distribution of cooking gas cylinders at six locations across the Kathmandu Valley to ease supply difficulties during the festive season. The service will operate daily from 9:30 am to 4:30 pm from Sunday, October 11, through Saturday, October 17. Under the arrangement, Everest and Sugam gas cylinders can be exchanged at Sifalchaur, while Sagar Gas will be available at Pepsicola. The designated point outside the Balaju Industrial Estate gate will serve consumers using Nepal, HP, Geeta, Rajdhani and Triveni gas brands. Additional exchange points have been established at Sukedhara, Kalanki and Harisiddhi in Lalitpur for other designated brands. The association said the initiative aims to address difficulties faced by consumers trying to exchange cylinders across brands during the festive period. Association President Diwan Chand stated that gas imports from Indian refineries remain steady, with 4,213,661 cylinders distributed during Bhadra alone.
Investment Board Approves Rs 21.17 Billion for Two Hydropower Projects
The Investment Board Nepal has approved investments totalling Rs 21.17 billion for two semi-reservoir hydropower projects aimed at expanding the country’s electricity generation capacity. A board meeting chaired by Prime Minister Balendra Shah approved Rs 10.75 billion for the 58.9-megawatt Nar Khola Hydropower Project and Rs 10.42 billion for the 46.72-megawatt Sani Bheri-3 Hydropower Project. The meeting also reviewed progress on the 900-megawatt Arun-3 Hydropower Project, whose commercial operation is scheduled for February 2028. The board directed the concerned agencies to expedite preparations for the Upper Karnali Hydropower Project in line with the provisions of its project development agreement. The approvals are expected to support hydropower development and strengthen Nepal’s electricity generation capacity.
NRB Bars Staff Layoffs During Bank Branch Consolidation
Nepal Rastra Bank (NRB) has revised its integrated regulatory directives to prohibit banks and financial institutions from laying off employees during branch consolidation and integration. Under the revised provisions, institutions restructuring their branch networks must not terminate employees assigned to branches being merged or closed. Instead, they are required to reassign the affected staff to nearby branches or other offices, based on operational requirements and mutual agreement. The central bank has also directed financial institutions to publish notices about planned branch consolidation at least 90 days in advance through national daily newspapers, their websites and branch notice boards. Customers served by branches undergoing consolidation will retain the right to repay loans or discontinue financial services without additional fees or penalties, according to the revised provisions. The measures aim to protect employees’ jobs and safeguard customers’ interests during changes to banking networks.
Advance Bus Ticket Booking Opens Ahead of Festival Season
Advance ticket booking for long- and medium-distance buses has opened ahead of the upcoming festival season, with large numbers of passengers gathering at ticket counters in Kathmandu. The arrangements were coordinated by the Department of Transport Management, the Federation of Nepalese National Transport Entrepreneurs and security agencies to facilitate travel during the festive period. According to Lhotse Multipurpose’s general manager, ticket counters at the New Bus Park in Gongabu began experiencing heavy passenger turnout from late Thursday evening. Authorities have established passenger assistance booths at major transit points in the capital to help travellers and maintain orderly services. Transport officials are also monitoring vehicle conditions and enforcing government-approved fares to prevent overcharging and improve passenger safety during the seasonal travel rush.
Education Regulations Propose Subsidised Vehicle Loans for Teachers
The Ministry of Education, Science and Technology has forwarded the proposed Eleventh Amendment to the Education Regulations, 2026, to the Ministry of Finance for approval, including provisions for interest subsidies on vehicle purchases by teachers. Under the proposal, first-class secondary-level teachers would be eligible to purchase vehicles worth up to Rs 5 million, while second-class teachers could purchase vehicles valued at up to Rs 4 million. Teachers in third-class secondary, lower secondary and primary-level positions would be eligible to purchase two-wheeled vehicles worth up to Rs 400,000. According to the proposed provisions, the government would cover up to 80 percent of the interest payable on vehicle financing obtained through banks, subject to the scheme’s conditions. The proposal is awaiting approval from the Ministry of Finance before the amended regulations can be implemented.
Transport Federation Warns Operators Against Festival Fare Hikes
The Federation of Nepalese National Transport Entrepreneurs has warned transport operators against charging passengers fares above government-approved rates during the upcoming festival season, saying violators will face action. Federation General Secretary Teknath Gautam said coordination meetings involving the Department of Transport Management and traffic police had finalised measures to ensure safe and orderly passenger movement during the festive rush. As part of traffic management arrangements, heavy trailer trucks will be restricted from operating along the Narayangadh–Kathmandu highway corridor from Ghatasthapana until the end of the festival period. Vehicles carrying essential goods, including food and medical supplies, will be exempt from the restriction. The federation also said permits for long- and medium-distance passenger transport would remain open under the existing arrangements. Technical inspection teams have been deployed at the Gongabu bus terminal to check vehicle fitness and ensure compliance with safety standards. The measures aim to reduce traffic congestion, improve passenger safety and prevent transport operators from exploiting travellers during the festive season.
Renewable Energy and Energy Efficiency Bill Registered in Parliament
The government has registered the Renewable Energy and Energy Efficiency Bill, 2026, in the House of Representatives, seeking to establish a comprehensive legal framework for clean energy development and energy conservation. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha submitted the bill to Parliament, highlighting the need to expand access to reliable, affordable and sustainable energy. The proposed legislation aims to promote renewable energy technologies, including solar, micro-hydropower, biomass and wind power, while supporting energy efficiency and environmental protection. It also seeks to advance constitutional commitments to accessible energy and strengthen existing policies on rural energy development and energy conservation. If enacted, the bill is expected to encourage investment in clean energy infrastructure, reduce dependence on fossil fuels and support sustainable economic development across the country.
Government Revises Inter-Provincial Fares for Electric Public Vehicles
The Department of Transport Management has revised fares for electric public vehicles operating on inter-provincial routes, setting rates according to distance and road conditions. For long-distance travel exceeding 250 kilometres in the Terai, the fare has been fixed at Rs 2.93 per kilometre per passenger. Routes ranging from 25 to 250 kilometres will charge Rs 3 per kilometre, while fares on the Kathmandu–Pokhara and Pokhara–Narayanghat routes have been set at Rs 3.24 per kilometre. Vehicles offering deluxe services may charge up to 20 percent more than standard fares. Super deluxe services may impose an additional 20 percent surcharge over deluxe rates. The department has directed transport operators to provide fare discounts to students, senior citizens and persons with disabilities upon presentation of valid identification. Long-distance night buses must also operate with two drivers to improve passenger safety. The government has separately announced the closure of all border points between India and China.
Government Registers Two Civil Aviation Bills in Parliament
The government has registered two bills in the House of Representatives to restructure Nepal’s civil aviation sector by separating airport operations from regulatory oversight. The proposed legislation comprises the Nepal Air Services Authority Bill, 2026, and the Nepal Civil Aviation Authority Bill, 2026. Under the proposed framework, the Nepal Air Services Authority would oversee airport infrastructure, air navigation and technical operational services. The Nepal Civil Aviation Authority would be responsible for licensing, safety certification, regulatory compliance and international aviation oversight. The proposed separation is intended to address potential conflicts of interest between aviation operations and regulation while strengthening flight safety and accountability. The reforms also aim to align Nepal’s aviation administration with international standards and improve the safety and reliability of air transport services.
Govt Allocates Rs 1.5 Billion in Grants for Sugarcane Farmers
The government is preparing to distribute more than Rs 1.5 billion in incentive grants to sugarcane farmers under a support programme aimed at promoting domestic production and improving farmers’ incomes. Minister for Agriculture, Forest and Environment Geeta Chaudhary has approved the procedures governing the distribution of the grants for the 2026/27 fiscal year. According to the ministry, the assistance will be distributed to eligible sugarcane farmers in Bardiya, Rautahat, Kailali and Kanchanpur. Under the existing programme, the government provides farmers with an incentive of Rs 70 per quintal of sugarcane produced. The scheme aims to support growers, encourage domestic sugarcane cultivation and strengthen the country’s sugar industry.
Nepalgunj Fair-Price Outlet Sees Increased Demand for Rice
The fair-price outlet operated by the Food Management and Trading Company Limited in Nepalgunj has witnessed increased customer turnout following restrictions on rice imports through the nearby Rupaidhia border in India. To provide relief to consumers during the festive season, the company has offered a discount of Rs 500 per quintal on rice sold through the outlet. According to the branch’s information officer, the outlet had set a target of selling 100 quintals of rice during the festival period, with more than 75 quintals already sold. The outlet offers different varieties of rice, including coarse, medium-grain and aromatic varieties, at subsidised prices. Officials said supplies would be replenished in coordination with the company’s central office in Kathmandu in response to demand.
Wild Rice Populations Decline Sharply in Banke
Wild rice populations in Banke have declined sharply amid changing environmental conditions, raising concerns among agricultural experts about the conservation of valuable genetic resources. Field assessments indicate that natural wild rice stocks have fallen to around 40 percent of their historical levels, prompting calls for further research and conservation measures. Wild rice species, including Oryza nivara and Oryza rufipogon, are important genetic resources for developing and improving cultivated rice varieties. Purmal Basnet, a local farmer and coordinator of the Gabar Valley Gene Bank, said unseasonal heavy rainfall and climate-related changes had disrupted seed production this season. He said the area supporting wild rice had shrunk from four bighas to just seven katthas. Researchers are expected to investigate the causes of the decline and identify ways to protect the remaining populations. A research delegation from Sri Lanka is also scheduled to visit the area to conduct DNA analysis in coordination with the Nepal Agricultural Research Council.
China Sends 543 Tons of Fruit Through Korala Border in 11 Days
A total of 543 tonnes of fruit have entered Nepal from China through the Korala border crossing over the past 11 days, according to the quarantine office in Nhechung, Lomanthang-4. Bandana Ghartimagar, a technical assistant at the office, said the imported consignments included 87.3 tonnes of apples, 16.1 tonnes of mangoes and 8.316 tonnes of dragon fruit. However, the Beni–Jomsom–Korala road has remained blocked since September 27 because of adverse weather, disrupting the transportation of the imported goods to their destinations. The prolonged delay has raised concerns about spoilage, as the fruit remains inside containers. On Thursday, some dragon fruit was distributed to local residents in Jomsom to prevent it from going to waste. Subas Sunuwar, a company representative, said the fruit distributed was worth approximately Rs 2.4 million. He also estimated that the transportation disruption had caused losses of around Rs 3 million.
LG Introduces Water Purifiers With Stainless-Steel Tanks in Nepal
LG Electronics, through its authorised Nepalese distributor CG Electronics, has introduced a new range of water purifiers featuring multi-stage filtration and stainless-steel storage tanks. The appliances feature an eight-litre tank made of 304-grade stainless steel, in-tank ultraviolet light-emitting diode technology and airtight protective covers designed to maintain water hygiene. The filters have a stated lifespan of up to 6,000 litres. The company is also offering a first-year maintenance package that includes two scheduled service visits and replacement filters. Additional promotional offers include zero-interest instalment financing and festive discounts at authorised outlets, including CG Digital. The new range is intended to provide consumers with convenient drinking-water purification options. The company also stated that all border points between India and China are closed.
Three Organisations Donate Rs 3.55 Million for Rasuwa Flood Victims
Three organisations have jointly provided Rs 3.55 million in financial assistance to support relief and rehabilitation efforts for people affected by floods in the Bhotekoshi River area of Rasuwa. Finance Minister Swarnim Wagle received the contributions from the Japan Nepal Society (JNS), the JICA Alumni Association of Nepal (JAAN) and the Institute for Suitable Actions for Prosperity (ISAP). The total contribution of Rs 3,547,536 comprises Rs 2,226,560 from JNS, Rs 1,011,705 from JAAN and Rs 309,271 from ISAP. The funds were voluntarily collected from members of the three organisations and are intended for deposit in the Prime Minister’s Disaster Relief Fund. The delegation was led by Ram Chandra Bhusal, president of JAAN and team leader of the Agriculture Promotion Project in Nepal (APPIN), which is supported by JNS. Wagle expressed gratitude to the organisations and their members for supporting the government during the disaster response. The organisations said their contribution reflects their continuing commitment to Nepal–Japan friendship, disaster relief and community development.
Mahottari: 250 Families Receive Land Ownership Certificates After 14 Years
A total of 250 families in Ekdara Rural Municipality-1, Mahottari, have received land ownership certificates after waiting for 14 years. The distribution follows the completion of land surveys and mapping in the area during the 2012/13 fiscal year. However, administrative delays and unresolved legal verification procedures had prevented the certificates, commonly known as Lalpurja, from being issued. Land revenue authorities recently expedited the remaining procedures, enabling the distribution of ownership documents to the families. The certificates provide residents with legal recognition of their land ownership and allow them to use their property as collateral for loans from financial institutions. The development is also expected to help resolve longstanding land ownership and boundary disputes.
Border Closure and Snowfall Leave Nepalis Stranded in Hilsa
The closure of the Hilsa border crossing with China and heavy snowfall along mountain routes have disrupted transportation and supplies, leaving Nepali travellers and security personnel facing shortages of essential goods. Fresh vegetables, daily necessities and medical supplies have become increasingly difficult to obtain in the border area. Security personnel have been providing basic first aid, but medical facilities remain limited. Chinese authorities recently allowed 144 Nepali citizens to cross back into Nepal on foot along snow-covered mountain trails. However, heavy snow around the Nara mountain pass has continued to prevent regular vehicular movement. Road-clearing operations are progressing slowly, with machinery reportedly clearing only one to two kilometres of road a day. More than 100 people remain stranded in the area, with some beginning difficult journeys on foot in an effort to return home before the festivals.
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