KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic and policy developments reveal a mixed outlook shaped by market weakness, disaster-related disruption, and efforts to strengthen economic resilience. The NEPSE’s 13.85-point decline, following another fall the previous day, alongside lower turnover and broad-based losses, indicates weak investor sentiment. In contrast, rising gold and silver prices suggest stronger demand for traditional safe-haven assets amid uncertainty.
The Bhote Koshi floods represent the most significant economic challenge, with reconstruction estimated at Rs 723.31 billion. Damage to energy infrastructure alone is projected at more than Rs 390 billion, while transport, social, productive, and disaster-risk sectors face substantial recovery costs. The disruption has also affected LPG distribution, although coordinated supply measures and the dispatch of more than 53,000 cylinders have prevented a major shortage in Kathmandu. Calls for action against hoarding and black marketeering underline the risks of supply-chain disruptions.
Political developments, including the resignation of Industry Minister Gauri Kumari Yadav and the appointment of Deepak Kumar Sah, highlight tensions between the government and private-sector stakeholders. Meanwhile, cooperative restrictions and demands to restore the e-GP system point to efforts to improve financial governance and procurement transparency.
At the same time, infrastructure progress at the Upper Myagdi-1 project, expansion of the Korala border, and the NPL’s growing commercial value indicate continued investment and economic activity despite broader uncertainties.
NEPSE falls 13.85 points as turnover reaches Rs 4 billion
All major indicators of the stock market declined on Thursday, with the benchmark Nepal Stock Exchange (NEPSE) index dropping 13.85 points to close at 2,531. The index had fallen by 15.43 points in the previous session on Wednesday. Daily turnover also decreased to Rs 4 billion from Rs 4.198 billion a day earlier. Share prices of 69 companies rose, while 201 declined and eight remained unchanged. The Manufacturing and Processing group suffered the steepest decline, dropping 1.14 percent. The Banking group fell 0.47 percent, followed by Development Bank at 0.34 percent, Finance at 0.66 percent, Hotel and Tourism at 0.50 percent, Hydropower at 0.55 percent, Investment at 0.41 percent, Life Insurance at 0.17 percent, Microfinance at 0.56 percent, Non-Life Insurance at 0.78 percent, Others at 0.64 percent, and Trading at 0.27 percent.
Gold traded at Rs 305,800 and silver at Rs 4,855 today
Gold and silver prices increased in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold rose by Rs 3,400 per tola (11.66 grams) to reach Rs 305,800. Gold was traded at Rs 302,400 per tola on Wednesday. The price of silver also increased by Rs 105 per tola to Rs 4,855. Silver had traded at Rs 4,750 per tola on Wednesday.
Rs 723.31 billion estimated for Bhote Koshi flood reconstruction
The government has estimated that Rs 723.31 billion will be needed to rebuild areas affected by the Bhote Koshi River flood on August 26, according to a Rapid Damage and Needs Assessment (RDNA) report. Of the total, Rs 473.57 billion has been allocated for infrastructure recovery, including Rs 390.62 billion to restore the energy system. The floods affected 13 hydropower projects with a combined capacity of 759 MW and five solar plants totaling 24 MW. Transport infrastructure reconstruction is estimated to cost Rs 73.34 billion following damage to 69 km of roads and 33 motorable bridges. Recovery of the social and productive sectors is expected to require Rs 103.55 billion and Rs 50.77 billion, respectively. The report has estimated an additional Rs 94.75 billion for disaster risk reduction and river management. Immediate recovery efforts over the first six months are projected to cost Rs 8.74 billion, while long-term reconstruction is expected to require Rs 714.58 billion.
RDNA report reveals Bhote Koshi floods damaged hydro plants worth Rs 390 billion
A Rapid Damage and Needs Assessment (RDNA) report jointly prepared by the National Planning Commission and the National Disaster Risk Reduction and Management Authority has found that the catastrophic glacier floods that struck the Bhote Koshi and Trishuli rivers on August 26, 2026, severely damaged 13 hydropower projects and five solar plants with a combined capacity of 783 MW in Rasuwa and Nuwakot. Among the major affected facilities are the 216 MW Upper Trishuli-1, 111 MW Rasuwagadhi, and 60 MW Upper Trishuli-3‘A’ projects. The report estimates that Rs 390.623 billion will be required to fully restore the energy grid. Meanwhile, rescue teams continue searching for 917 workers and employees who remain unaccounted for nearly two weeks after the disaster.
Deepak Kumar Sah sworn in as industry minister
Newly appointed Minister for Industry, Commerce, and Supplies Deepak Kumar Sah took the oath of office and secrecy on Thursday after President Ram Chandra Paudel appointed him to the position on the recommendation of Prime Minister Balendra Shah. Sah took the oath before President Paudel at the President’s Office, Shital Niwas. He was appointed to fill the vacancy created by the resignation of Gauri Kumari Yadav earlier that day. Sah, a Rastriya Swatantra Party (RSP) lawmaker, was elected to the House of Representatives from Sunsari Constituency No. 4.
Industry Minister Gauri Kumari Yadav resigns
Minister for Industry, Commerce, and Supplies Gauri Kumari Yadav submitted her resignation to Prime Minister Balendra Shah on Thursday. Her decision came amid strong criticism over remarks she made during a parliamentary committee meeting on Wednesday, when she threatened to tie the hands of gas businessmen behind their backs. Business representatives subsequently filed a formal complaint against her with the Prime Minister, intensifying pressure that ultimately led to her resignation.
More than 53,000 LPG cylinders dispatched to Kathmandu
A total of 53,469 LPG cylinders were filled and sent to Kathmandu from plants in various districts on Wednesday to prevent a potential shortage in the capital after a landslide at Krishnabhir disrupted the movement of gas bullets. Supplies were mobilized from several facilities, including Nepal Gas (Narayani), Nobel Gas (Dhanusha), Gas One, Jagadamba, Leo, and Ambar Gas (Bara); Super and Manoj Gas (Parsa); Sahara Gas (Makwanpur); Nepal Gas Gandaki and Saibaba Gas (Chitwan); and Janaki Gas and Chandeshwari Gas (Nawalpur). Shipments under brands such as Everest, Sugam, HP, Nepal Gas, Sagar, and Saibaba were also cleared in significant quantities, helping maintain LPG distribution in the Kathmandu Valley while the movement of gas bullets remains disrupted.
LP Gas Industry Association assures uninterrupted supply
The Nepal LP Gas Industry Association has said that the supply and distribution of liquefied petroleum gas (LPG) remain uninterrupted despite recent natural disasters, including the August 26 flooding of the Bhote Koshi River and a road blockage at Krishnabhir on the Prithvi Highway caused by the Trishuli River on August 30. With daily demand in the Kathmandu Valley estimated at around 40,000 cylinders, the association has coordinated with the Nepal Oil Corporation to redirect refills from plants in Bara, Parsa, Chitwan, Dhanusha, and Nawalparasi to facilities in Kathmandu, Kavre, and Dhading. The association has also urged consumers not to hoard fuel and assured them that cylinder supplies will continue.
LP Gas Industry Association leaders meet PM’s secretariat
Following controversial remarks by Industry Minister Gauri Kumari Yadav during a parliamentary committee meeting about potentially revoking licenses amid widespread cooking gas shortages caused by road disruptions along the Bhote Koshi corridor, representatives of the Nepal LP Gas Industry Association met with the Prime Minister’s secretariat on Wednesday evening. The delegation included immediate past president Shiva Ghimire and other industry representatives. Discussions focused on speeding up debris clearance at Krishnabhir and increasing immediate fuel imports to restore normal domestic distribution.
House committee directs strict action against artificial shortages and black marketeering
Rahbar Ansari, chairperson of the House of Representatives Industry and Commerce and Labor and Consumer Welfare Committee, has directed the government to take strict action against those exploiting disaster-related supply disruptions to create artificial shortages or raise prices. Ansari noted that floods and landslides, including road obstructions at Krishnabhir, have significantly disrupted the delivery of essential goods and cooking gas. He warned that black marketeering would not be tolerated. The Department of Commerce has been instructed to strengthen market monitoring and deploy additional resources where necessary. While agencies such as the Nepal Oil Corporation work to restore supply chains, Ansari stressed that the government must immediately take action against those contributing to public hardship.
Nepal-China Korala border pass expands international trade after four-year closure
The Korala border checkpoint, which was previously limited to residents of Lo Manthang and Lo-Ghekar Damodarkunda rural municipalities during seasonal summer trade fairs, was closed for four consecutive years because of the COVID-19 pandemic. It was officially reopened on November 13, 2023, following a visit by then Prime Minister Pushpa Kamal Dahal. Since then, access has gradually expanded to residents of lower Mustang through border passes, transforming the remote trading route. Historically, the route generated around Rs 100 million to Rs 150 million in annual customs revenue for the Mustang Customs Office.
Department bans new savings and credit transactions for cooperative associations
The Department of Cooperatives has prohibited district, provincial, and apex cooperative associations from accepting new deposits or issuing new loans in accordance with Section 50, Sub-section 9 of the Cooperative Act, 2017. The provision was amended and approved by the House of Representatives two months ago following a government ordinance introduced shortly after the formation of the new government. The department has instructed the associations to settle existing accounts and outstanding liabilities, submit transition plans for either establishing a cooperative bank or merging within three months, and complete mandatory audits by mid-January. They have also been directed to coordinate with the National Cooperative Regulatory Authority and their respective parent federations to strengthen financial governance and ensure regulatory compliance.
Upper Myagdi-1 hydropower project achieves tunnel breakthrough
The 35.5 MW Upper Myagdi-1 Hydropower Project has achieved a tunnel breakthrough, connecting the audit site to the dam. Developed by Myagdi Hydropower Limited, the project connected the tunnel from the audit site in Chhahari, Dhaulagiri Rural Municipality-4, to the under-construction powerhouse in Bharwang, Malika Rural Municipality-7, on Wednesday. Project chief Jyoti Kumar KC said a 2,506.39-meter section of the tunnel between the audit site and the dam has been excavated. Of the total 3,283.32-meter tunnel from Chhahari to the dam in Dhaulagiri Rural Municipality-4, 1,973 meters have been completed so far. KC said work is progressing with the aim of finishing the remaining section within the next few months. Overall project progress has reached 56 percent, and the project is expected to be completed within a year.
Lumbini government to provide transport services through cottage and small industry offices
The Lumbini provincial government plans to use cottage and small industry offices as branch offices for transport-related services in districts where such facilities are currently unavailable. The initiative aims to make these services more accessible to residents. Speaking at the annual review program for fiscal year 2025/26 in Rapti Valley (Deukhuri) on Thursday, Chief Minister Chetnarayan Acharya said existing transport offices would continue operating while vehicle permit services would be introduced in all 12 districts from mid-September. He added that preparations were underway to delegate driver’s license renewal authority to the remaining six districts. Emphasizing transparency in revenue collection, Acharya instructed officials to eliminate unnecessary delays, complete tasks scheduled for each hour within that hour, and strictly follow legal requirements.
NEA approves Rs 1.9 million compensation for injured employee
The Nepal Electricity Authority (NEA) Board of Directors decided on Wednesday to provide more than Rs 1.9 million in medical reimbursement and statutory injury compensation to 25-year-old Sandesh Magar, also known as Sher Bahadur Magar, from Khotang. Magar sustained serious electrical shock injuries on March 25, 2026, while replacing a 15 kV disc pin on a transmission line in Ambote, Melamchi Municipality-10. The compensation will cover medical expenses incurred at Sushma Koirala Memorial Hospital. The board also approved a separate relief package for young Rashmi Jaisi following a related grid incident.
NPL emerges as Nepal’s largest commercial sports tournament with Rs 15 billion valuation
The Nepal Premier League (NPL) is emerging as Nepal’s largest commercial sports tournament, with its economic value estimated at around USD 100 million, equivalent to nearly Rs 15 billion, ahead of its third edition. Growing competition for broadcasting, over-the-top (OTT), ticketing, and sponsorship rights has significantly increased the league’s commercial value. Himalayan Television acquired television rights for Rs 146.4 million, while NETTV secured digital rights for Rs 180 million and eSewa obtained ticketing rights for Rs 8.5 million. These three agreements have generated Rs 335.8 million for the Cricket Association of Nepal (CAN). Investments by business groups in the eight franchise teams have further strengthened the NPL’s position as a major commercial sports platform.
Jumla Food Corporation distributes 27,100 kg of subsidized rice
During the previous fiscal year, the Food Management and Trading Company Limited office in Jumla distributed 271 quintals of subsidized rice worth more than Rs 1.9 million to beneficiaries across eight local units. The distribution was made in connection with the birth registrations of 558 infants and the death registrations of 346 individuals. The office also distributed Rs 428,000 in transportation allowances, ranging from Rs 500 to Rs 1,000 depending on the municipality. The welfare scheme was introduced in 2016 by then Prime Minister Pushpa Kamal Dahal ‘Prachanda’. The office currently maintains a reserve of 1,900 quintals of food grains for eligible residents who submit birth or death registrations within 35 days.
FNCCI criticizes Gauri Yadav’s remarks as minister resigns
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has criticized remarks attributed to Gauri Kumari Yadav, who resigned as Minister of Industry, Commerce, and Supplies on Thursday, describing comments directed at industrialists and businesses as irresponsible and objectionable. The FNCCI said the minister’s remarks concerning LPG supplies were regrettable, particularly as private businesses have been working to maintain essential supplies despite flood-related landslides along the Prithvi Highway. It said public accusations could undermine trust between the government and private sector and rejected suggestions that certain gas industries should be shut down. The federation urged the government to prioritize administrative and policy reforms, safeguard investment, and create a more competitive business environment. It also reiterated its demand for a two-tier customs duty structure and emphasized that the government and private sector should work together as partners in economic development.
Hamro Patro users contribute Rs 12.5 million to PM’s Disaster Relief Fund
Users of Hamro Patro have collectively donated Rs 12.5 million to the Prime Minister’s Disaster Relief Fund to support relief, recovery, and reconstruction efforts for communities affected by recent disasters in Nepal. The contribution was formally handed over to Finance Minister Swarnim Wagle on behalf of the Hamro Patro community. The names of all donors were also submitted to the government for official recordkeeping. Hamro Patro facilitated the campaign, particularly to help Nepalis living abroad contribute to the relief effort, without charging service fees on donations. Shankar Uprety, founder and chief executive officer of Hamro Patro, said the amount represented the collective contribution of users and expressed gratitude to all donors. The Hamro Patro app has been downloaded more than 20 million times worldwide.
Kalinchowk Darshan proposes 8.94 percent dividend from previous fiscal year profits
Kalinchowk Darshan Company has proposed a total dividend of 8.94 percent from its net profit for the previous fiscal year. The proposed distribution consists of 8.5 percent bonus shares and 0.44 percent cash dividends allocated for tax purposes. The proposal will require formal approval from the company’s upcoming annual general meeting before the dividend can be distributed to shareholders.
Prabhu Mahalaxmi Life Insurance offers more than 31,000 founder shares through sealed bids
Prabhu Mahalaxmi Life Insurance has put 31,588 founder shares up for sale through a sealed-bid tender process at a minimum price of Rs 225 per share. Interested investors must apply for at least 5,000 shares and submit their bids to NIC Asia Capital in Thapathali by the close of business on September 18, 2026. The offering follows the completion of a mandatory 35-day priority period for existing founder shareholders.
FCAN demands immediate restoration of suspended e-GP system
The Federation of Contractors’ Association of Nepal (FCAN) has called on the Public Procurement Monitoring Office to immediately resolve technical and security issues and restore the e-government procurement (e-GP) system. FCAN said the prolonged suspension has stalled development projects and disrupted public procurement carried out under the Public Procurement Act, 2006, and Public Procurement Regulations, 2007. FCAN spokesperson Mangal Bahadur Shahi said returning to manual, hard-copy procedures is not a viable solution. In a five-point demand, the federation called for an independent cybersecurity audit, stronger data protection measures, and the prompt resumption of the e-GP system to ensure transparency and continuity of development projects.
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