KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The collection of reports highlights a Nepal facing simultaneous challenges and opportunities across disaster management, economic activity, infrastructure, diplomacy and social development. The most prominent concern is the continuing impact of the Bhote Koshi floods. Government housing assistance, health-facility reconstruction, Bailey bridge support from India, community donations and travel restrictions demonstrate a broad but resource-intensive recovery effort. The scale of infrastructure damage also underscores Nepal’s vulnerability to monsoon-related disasters and the need for stronger resilience planning.
Economic developments present a mixed picture. Rising gold and silver prices indicate continued volatility in the domestic precious-metals market, while Mustang’s surge in customs revenue and new industrial registrations in Banke point to increased trade and local economic activity. However, restrictions on land plotting in Humla show how administrative delays can constrain property transactions and access to credit.
Nepal’s external relations remain strategically important. The rejection of Malaysia’s proposed migrant-worker recruitment model reflects Kathmandu’s insistence on protecting legal and bilateral frameworks, while Baburam Bhattarai’s call to capitalize on improving India-China relations emphasizes the importance of balanced diplomacy. India’s provision of Bailey bridges further illustrates practical bilateral cooperation.
Infrastructure and public services are also receiving attention through highway rehabilitation, irrigation and river-control projects, expanded electricity transmission, and free burn treatment in Kathmandu. Together, these developments suggest that Nepal’s immediate priorities are disaster recovery and infrastructure resilience, while longer-term progress will depend on effective governance, strategic diplomacy, economic diversification and timely implementation.
Gold, silver prices rise in domestic market
Gold prices increased by Rs 1,200 per tola in the domestic market on Sunday, reaching Rs 302,200 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold was traded at Rs 301,000 per tola on Friday. The latest increase follows recent fluctuations in the domestic precious metals market. The price of silver also went up by Rs 60 per tola to Rs 4,660. Silver was priced at Rs 4,600 per tola on Friday. The latest changes reflect the daily price adjustment in Nepal’s precious metals market.
Govt announces monthly housing allowance for Bhote Koshi flood-affected families
The government has prioritized relief, rehabilitation and reconstruction for families displaced by the devastating Bhote Koshi floods. According to Communication Minister Bikram Timalsina, the Cabinet has decided to provide monthly financial assistance for housing and living expenses to families affected by the disaster until permanent homes are rebuilt. Under the decision, families of up to four members will receive Rs 15,000 per month, while an additional Rs 2,000 will be provided for each extra family member. Families that do not wish to receive the cash assistance will have the option of receiving temporary shelter instead. Local governments have already begun collecting details of eligible beneficiaries, while a Detailed Needs Assessment is being conducted to determine the extent of the damage and the requirements for recovery. The government has said reconstruction, safe relocation and the restoration of livelihoods will be expedited once the necessary resources are secured. The assistance is aimed at providing immediate support to displaced families while longer-term reconstruction efforts are being prepared.
Nepal rejects Malaysia’s proposal to limit migrant worker recruitment
Nepal has rejected Malaysia’s proposal to restrict the recruitment of Nepali migrant workers to a selected group of manpower agencies, saying such an arrangement would violate Nepal’s Constitution, labour laws and bilateral labour agreements. The Ministry of Youth, Labour and Employment has conveyed Nepal’s position to Malaysia through a diplomatic note sent via the Ministry of Foreign Affairs. Nepal has made it clear that it will not accept a recruitment system that grants exclusive rights to a limited number of agencies. Malaysia has proposed a framework involving 25 primary agencies and 250 supporting agencies. Nepal has started investigating the 25 Nepali agencies included on the proposed list, while the Department of Foreign Employment has suspended prior labour approvals for those agencies. The government has maintained that recruitment of Nepali workers should be conducted in accordance with existing laws and bilateral agreements rather than through an exclusive agency-based system.
Nepal should capitalize on India-China rapprochement at BRICS, says Bhattarai
Former Prime Minister Baburam Bhattarai has urged Nepal to take advantage of improving relations between India and China following their engagement at the BRICS Summit to advance the country’s national interests. Bhattarai said Nepal should maintain balanced and constructive relations with both neighbouring countries while pursuing an independent foreign policy. He stressed the importance of closely monitoring regional developments and identifying opportunities that could strengthen Nepal’s economic, diplomatic and strategic interests. According to Bhattarai, Nepal should avoid unnecessarily aligning itself with either India or China. Instead, the country should use the changing regional environment to expand cooperation with both neighbours and strengthen its position in the region. He said the evolving relationship between the two major powers could create opportunities for Nepal if the country adopts a pragmatic and balanced diplomatic approach.
India provides three Bailey bridges to flood-affected areas
The Indian government has provided Nepal with three Bailey bridges to help restore transportation links in areas affected by the recent floods. The bridge components were handed over to Nepal’s Road Division Office in Makwanpur and subsequently dispatched to Rasuwa. Each bridge is 70 metres long, single-lane and capable of carrying vehicles weighing up to 20 tonnes. The assistance comes after devastating floods in the Bhote Koshi and Trishuli rivers destroyed 35 bridges, severely disrupting transportation, relief operations and the supply of essential goods to affected communities. Nepal and India are also discussing the possible provision of at least 15 additional Bailey bridges to support recovery and reconstruction efforts. Nepali officials have welcomed India’s assistance, saying the bridges will help restore vital connectivity, facilitate the transportation of relief materials and reconnect communities affected by the disaster.
KMC to provide free burn treatment of up to Rs 200,000
Kathmandu Metropolitan City (KMC) has launched a programme to provide free burn treatment of up to Rs 200,000 to economically disadvantaged residents. KMC has allocated Rs 10 million to Kirtipur Hospital, also known as the Nepal Cleft and Burn Centre, to operate the programme for one year. Deputy Mayor Sunita Dangol handed over the grant to hospital officials. Under the initiative, eligible permanent residents of Kathmandu Metropolitan City will be entitled to treatment worth up to Rs 200,000 per person. The metropolitan city said the programme is intended to ensure that financial hardship does not prevent burn victims from receiving timely emergency and life-saving treatment. The initiative is expected to provide financial relief to low-income families facing the high cost of burn treatment and help ensure that patients receive medical care without having to delay treatment because of financial constraints.
Monsoon disrupts major highways nationwide
Nepal Police has issued a nationwide travel advisory as heavy monsoon rainfall, floods, landslides and road collapses continue to disrupt major highways across the country. The Prithvi Highway, Araniko Highway and Phidim–Phalot road remain blocked, while traffic along the BP Highway and several routes in Makwanpur is operating under restrictions, including weight limits on vulnerable sections. Flood damage has also destroyed parts of the Pasang Lhamu Highway, forcing vehicles travelling towards the Rasuwagadhi border point to use an alternative rural route. Night-time travel restrictions and temporary closures have also been imposed on several other routes. These include sections around Tokha, Mugling, Besisahar and Manang, where road maintenance, construction and slope-management works are underway. Nepal Police has urged the public to postpone non-essential travel, follow traffic management instructions and exercise caution while travelling on roads that remain operational. Authorities have also called on drivers and passengers to remain alert to changing weather and road conditions, particularly in areas vulnerable to landslides, flooding and road cave-ins.
Flood damages seven health facilities in Rasuwa
The Bhotekoshi River flood of August 26 damaged seven health institutions in Rasuwa, according to a Rapid Damage and Needs Assessment conducted by the National Planning Commission and the National Disaster Risk Reduction and Management Authority. The assessment found that four health posts were completely destroyed, while two primary healthcare centres and one hospital sustained partial damage. The total damage to the seven health facilities has been estimated at Rs 236.6 million. Of the total loss, Rs 195 million accounts for damage to physical infrastructure, while medical equipment and supplies worth Rs 41.6 million were destroyed. The report estimates that Rs 780 million will be required to restore and rebuild the affected health institutions. Of this amount, Rs 125 million has been estimated for immediate rehabilitation over a six-month period, while Rs 655 million will be required for long-term reconstruction. The assessment highlights the scale of damage to health infrastructure in the flood-affected areas and the need for both immediate restoration of essential services and longer-term reconstruction.
Around 200,000 devotees visit Swayambhunath during Gunla fair
Around 200,000 devotees visited Swayambhunath during the month-long Gunla fair, which concluded on Saturday night following the completion of religious rituals. The fair was organized by the Swayambhu Management and Conservation General Committee and attracted Buddhist devotees from the Theravada, Mahayana and Vajrayana traditions from Nepal and abroad. During the festival, devotees offered prayers at the Swayambhunath Stupa, a UNESCO World Heritage Site, and visited other religious sites in the surrounding area, including Shobha Bhagawati and Bijeshwari. The organizing committee made arrangements for crowd management, street lighting and other facilities throughout the month-long festival. Religious recitations based on the life and teachings of Buddha were also conducted during the period. Gunla is regarded as a sacred period among Buddhists, when devotees engage in religious activities, prayers and other practices aimed at accumulating spiritual merit.
Birgunj main road expansion set for completion by Monday
The expansion of Birgunj’s main road has entered its final stage, with the Road Division Office preparing to remove the remaining structures and complete the work by Monday. Officials said disputes involving structures near the Nepal Telecom building and Maisthan have been addressed. Demolition work is continuing on structures located behind Siddhartha Bank, the Pompom Building and the Hanuman Temple. During the first phase of the road expansion campaign, parts of around 1,200 houses and other buildings located within the 25-metre road boundary were removed in April. The authorities had asked property owners to voluntarily remove structures falling within the road boundary. After some owners failed to clear the structures within the stipulated period, the Road Division Office resumed the demolition campaign on July 4. Officials said the removal of the remaining structures would pave the way for completion of the road expansion project, which is aimed at improving traffic flow and easing congestion along Birgunj’s main road.
Rs 150 million allocated for irrigation and river control in Tanahun
The Bhanu Irrigation and Water Resources Management Project has allocated Rs 150 million for irrigation development, river control and landslide mitigation programmes in Tanahun for fiscal year 2026/27. Of the total allocation, Rs 80 million has been earmarked for river control along the Marsyangdi River, while Rs 30 million each has been allocated for the Madi and Seti rivers. Another Rs 30 million will be used for landslide control in the Galeshwardham–Devghatdham area. The project has also allocated Rs 37.5 million for irrigation programmes in the Daraudi and Marsyangdi river basins. In addition, Rs 50 million has been set aside for integrated irrigation development across several river basins. The allocation is aimed at improving irrigation infrastructure, reducing the risks posed by river erosion and landslides, and strengthening water-resource management in vulnerable areas of Tanahun.
MCC completes 18-km transmission line in nine months
Millennium Challenge Account Nepal (MCA-Nepal) has completed construction of an 18-kilometre transmission line linking the New Butwal Substation in Sunwal Municipality-13, Nawalparasi, with the Nepal-India border within nine months. The transmission line represents Nepal’s section of the Butwal-Gorakhpur cross-border electricity transmission project and marks the completion of Nepal’s second cross-border electricity transmission link. The foundation stone for the project was laid on November 26, 2025, while the construction contract, valued at $12.38 million, was awarded to India-based Transrail Lighting Limited. The transmission line is being developed under the MCC Nepal Compact, which includes the construction of approximately 315 kilometres of 400-kV transmission lines across Nepal. The completion of the 18-kilometre section is expected to strengthen Nepal’s cross-border electricity transmission infrastructure and support the country’s expanding power trade with India.
2,861 new jobs created in Banke through new industries and firms
A total of 2,861 new employment opportunities were created in Banke during fiscal year 2025/26 through the registration of new industries and commercial firms. According to the Cottage and Small Industries Office, 627 industries and 626 commercial firms were registered in the district during the fiscal year. These newly registered businesses generated employment for 1,688 men and 1,173 women. The registrations also resulted in the emergence of 673 new entrepreneurs. With the addition of 627 newly registered industries, the total number of registered industries in Banke has reached 15,807. Similarly, the number of registered commercial firms has risen to 21,980. The office collected Rs 16.31 million in revenue from industry and firm registration and related services during the fiscal year. The amount was lower than the Rs 19.73 million collected in the previous fiscal year.
Mustang Customs collects Rs 1.78 billion in 15 days
Mustang Customs Office has collected Rs 1.7844 billion in revenue in just 15 days as imports through the Korala border point increased following the closure of the Rasuwagadhi-Kerung and Tatopani border crossings. The customs office collected Rs 271.1 million in revenue on Friday alone. Officials said daily revenue collection has averaged around Rs 300 million since August 28. Between August 26 and September 10, a total of 434 containers and 641 electric vehicles cleared customs through the Korala border point. Revenue collected through Korala has reached Rs 2.3144 billion in the current fiscal year. Meanwhile, Mustang Customs Office collected Rs 6.92 billion in revenue from trade through the border point during fiscal year 2025/26.
Women donate Teej expenses to flood relief fund
Female Community Health Volunteers from Wards 3, 4, 5 and 6 of Panchkhal Municipality have donated Rs 15,545 to the Prime Minister’s Disaster Relief Fund by redirecting money originally set aside for their annual Teej gathering. The volunteers decided to contribute the funds to support people affected by the Bhote Koshi floods instead of organizing their regular Teej celebration. Similarly, women from Namobuddha Municipality donated Rs 91,345 to the relief effort after deciding not to organize special Teej celebrations this year. Meanwhile, 37 residents of Kavrepalanchok who were in flood-affected areas remain out of contact. Of the 47 people previously reported missing, eight have since established contact with their families, while two bodies have been recovered. According to the National Disaster Risk Reduction and Management Authority, the disaster has so far left 1,385 people dead, 5,130 missing, 13,676 rescued and 7,655 injured. The donations from women’s groups and community members have added to relief efforts for families affected by the disaster.
Land plotting halt leaves service seekers in hardship
Residents in four rural municipalities of Humla are facing difficulties in conducting land transactions after land plotting was halted because of delays in completing mandatory land classification. Local governments have yet to classify land into agricultural and non-agricultural categories within the timeframe prescribed by government land-use regulations. The delay has prevented residents and property owners from dividing or selling land parcels. The situation has also created difficulties for people seeking to use land as collateral to obtain loans from banks and financial institutions. Although the government has introduced deadlines and guidelines for land classification to promote planned and sustainable land use, delays at the local level have disrupted land transactions and created prolonged administrative difficulties for residents.
NIST family donates Rs 2.25 million to disaster relief fund
The NIST family has contributed Rs 2.25 million to the Prime Minister’s Disaster Relief Fund to support relief and rehabilitation efforts for victims of the Bhotekoshi floods. The total contribution of Rs 2,250,605 was raised by the National School of Sciences in Lainchaur, Banepa NIST, Bhaktapur NIST, Lalitpur NIST, NIST Higher Education and the NIST Foundation. The foundation’s chairman and founding principal of the National School of Sciences also made a personal contribution. The institution expressed condolences to families who lost their loved ones in the disaster and called for coordinated efforts among the government, organizations and the general public to strengthen search, rescue, relief and rehabilitation operations. The NIST family said the contribution was intended to support communities affected by the disaster during the ongoing recovery process.
Prabhu Bank board, staff donate Rs 4.08 million for flood relief
The board of directors and employees of Prabhu Bank have contributed Rs 4.08 million to the Prime Minister’s Disaster Relief Fund to support victims of the recent floods along the Bhotekoshi and Trishuli rivers. Prabhu Bank Chief Executive Officer Suman Sharma handed over the contribution cheque to the Finance Minister at the Ministry of Finance. The bank had previously contributed an additional Rs 21.11 million to the relief fund under its corporate social responsibility programme. The earlier contribution was intended to support search operations, emergency relief and rehabilitation of flood-affected communities. The bank has also provided 100 tents and 100 sleeping bags to families affected by the floods through the District Administration Office in Nuwakot. The bank said its contributions were aimed at supporting immediate relief efforts and helping affected families cope with the aftermath of the disaster.
Man arrested for Rs 13.9 million fraud using fake gold
Police have arrested a man on suspicion of defrauding a person of Rs 13.9 million by using fake gold. According to police, the suspect allegedly convinced the victim that the material involved in the transaction was genuine gold and collected Rs 13.9 million from the victim. Police have launched a further investigation into the case and are examining the circumstances surrounding the alleged fraud, including the material used in the transaction and the suspect’s involvement.
Akbare chili farming brings higher returns to Syangja farmers
Farmers in Tarukhola, Waling-13, have turned to commercial cultivation of Akbare chili, replacing parts of their land previously used to grow paddy and maize. More than 70,000 Akbare chili seedlings have been planted across approximately 30,500 square metres of farmland. Farmers harvest around 300 kilograms of ripe chilies every two to three days and sell the produce at around Rs 220 per kilogram. Sales from the crop have so far reached approximately Rs 700,000. Farmers say Akbare chili cultivation provides better returns than traditional food crops and is also relatively less affected by damage caused by monkeys. The produce is being sold in local markets as well as in Butwal and to Yashoda Foods Pvt. Ltd. The shift towards commercial chili farming has provided farmers with an alternative source of income while making productive use of land previously dedicated mainly to subsistence crops.
Comment