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 public affairs developments reveal a mixed picture of modest financial market gains, persistent infrastructure vulnerabilities, uneven economic activity and continuing challenges in public administration. The Nepal Stock Exchange rose slightly to 2,599.93 points, with turnover increasing to Rs 4.73 billion. However, declining share prices outnumbered advances, suggesting that the market’s overall performance remained mixed. Gold and silver prices also eased, reflecting short-term movements in domestic and international markets.
Economic activity remains sensitive to seasonal demand and logistical constraints. Dashain migration has reduced commercial activity in Kathmandu, while road disruptions have delayed Mustang apple shipments, threatening farmers’ earnings despite increased production. Resunga Airport’s reopening and progress on Bharatpur’s underground electrification project demonstrate the importance of reliable infrastructure for regional connectivity and economic growth.
Public administration presents both progress and persistent weaknesses. Direct bank transfers for sugarcane subsidies could improve transparency, while penalties against internet service providers signal stronger regulatory enforcement. Nevertheless, Karnali Province’s concentration of development expenditure toward fiscal year-end highlights recurring weaknesses in budget execution.
Credit growth remains concentrated in services and Kathmandu, raising concerns about regional disparities and productive investment. Meanwhile, Nepal’s strong iron and steel export growth offers opportunities for industrial expansion, although sustained competitiveness depends on energy costs and manufacturing efficiency.
Overall, Nepal needs better infrastructure resilience, timely public spending, balanced credit distribution and effective regulation to convert short-term economic gains into inclusive and sustainable growth.
NEPSE rises 4.12 points as daily turnover reaches Rs 4.73 billion
The Nepal Stock Exchange (NEPSE) index gained 4.12 points to close at 2,599.93 points on Tuesday. Daily turnover increased to Rs 4.73 billion from Rs 4.46 billion on Monday. Share prices of 104 companies increased, while 167 declined and seven remained unchanged. Ghalemdi Hydro recorded the highest turnover, followed by Mountain Energy Nepal, Kumari Bank, Reliance Spinning Mills, Laxmi Sunrise Bank Limited, Sanima Bank and City Hotel. Among sectoral indices, Life Insurance posted the largest gain, rising 1.77 percent. Banking advanced 0.69 percent, Non-Life Insurance gained 0.53 percent, Investment increased 0.13 percent and Development Bank rose 0.05 percent. Snow Rivers recorded the steepest decline, with its share price falling 15 percent. Dhaulagiri Laghubitta Bittiya Sanstha dropped 12.87 percent, Kutheli Bukhari Small Hydropower declined 4.65 percent and City Hotel fell 3.65 percent.
Gold falls Rs 2,200 to Rs 292,200 per tola; silver declines Rs 60
Gold and silver prices declined in Nepal’s domestic market on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold fell by Rs 2,200 per tola to Rs 292,200, while silver dropped by Rs 60 to Rs 4,355 per tola. One tola is equivalent to approximately 11.66 grams. On Monday, gold was traded at Rs 294,400 per tola and silver at Rs 4,415. In the international market, gold was trading at USD 4,199 per ounce on Tuesday.
LP Gas industry association to end joint cylinder exchange scheme Wednesday
The Nepal LP Gas Industry Association announced that its temporary arrangement allowing consumers to exchange empty cooking gas cylinders of any brand at designated hubs will end on Wednesday, October 14. Regular dealer-based distribution will resume on Thursday. The initiative began on Sunday at six locations before expanding to 11 centers. However, growing crowds and long queues prompted the association to restore the usual distribution system to meet logistical requirements ahead of the festive season. Association representatives said LPG supplies remain stable nationwide, supported by regular imports coordinated by the Nepal Oil Corporation. Consumers have been advised to purchase cooking gas directly from authorized local dealers.
Telecommunications authority fines 14 internet service providers Rs 50,000 each
The Nepal Telecommunications Authority has imposed fines of Rs 50,000 each on 14 internet service providers for breaching licensing conditions and introducing unauthorized service packages. The action was taken under Section 47(1) of the Telecommunications Act, 1997, following inspections that found providers had overcharged customers, offered unapproved tariffs and failed to submit proposed rates at least three months before implementation. Authority spokesperson Min Prasad Aryal said the penalties aim to discourage unethical business practices. The penalized companies include WorldLink Communications, Vianet Communications, Classic Tech, Subisu Cablenet, Dish Media Network, C.G Communication, Websurfer Nepal Communication System, Broadlink Network and Communication, Fiberworld Communication, Aeronet, Wifi Nepal, Firstlink Communication, Pokhara Internet and Techminds Network. The authority has directed the providers to immediately discontinue unauthorized tariffs and compensate affected customers.
Energy ministry restores electricity across flood-hit areas of northern Gorkha
The Ministry of Energy, Water Resources and Irrigation has accelerated repair work to restore electricity infrastructure damaged by flash floods along the Budhigandaki and Syar Khola river corridors in northern Gorkha. Minister Biraj Bhakta Shrestha said power supply had been restored across all affected areas except Dharche Rural Municipality. Difficult mountainous terrain and the lack of road access beyond Khorlabensi have delayed the deployment of heavy equipment there. Technical teams operating under the Nepal Electricity Authority’s Arughat distribution center restored electricity to wards 2, 3 and 4 of Bhimsen Thapa Rural Municipality within 10 hours of the disaster. Supply has also been restored across Arughat bazaar and the Dandagaon and Arupokhari branches. Authorities are targeting full restoration in the remaining flood-affected settlements within a week. The floods damaged more than 70 high-voltage poles and other local infrastructure.
Govt directs direct bank transfers for sugarcane production subsidies
The government has introduced a new framework requiring annual sugarcane production incentives to be deposited directly into the bank accounts of registered farmers, with the aim of improving transparency and accountability in subsidy distribution. The Sugarcane Producers Incentive Grant Directive, 2026, issued under the Economic Procedure and Financial Responsibility Act, 2019, requires interested farmers, agricultural firms, groups and cooperatives to submit registration applications to their respective local governments between mid-July and mid-October. Local authorities must verify applicant records by mid-November and forward certified beneficiary details to district payment offices. District committees led by assistant chief district officers will then coordinate with treasury controllers to transfer funds directly to eligible recipients based on reports of sugarcane crushing at operational mills.
Karnali Province spends 55.74 percent of capital budget in FY 2025/26
The Karnali Province government spent Rs 11.139 billion, or 55.74 percent, of its Rs 19.982 billion capital budget during fiscal year 2025/26. Total budget allocations for the fiscal year stood at Rs 32.996 billion. Records from the Provincial Accountant General’s Office indicate that development spending continues to accelerate toward the end of the fiscal year. In the final month of the previous fiscal year, the province spent Rs 5.603 billion, equivalent to 50.30 percent of its total annual development expenditure. Historical figures show that year-end capital spending accounted for 42.09 percent in fiscal year 2021/22, at least 42.42 percent in 2022/23, at least 35.59 percent in 2023/24 and 37.76 percent in 2024/25. The figures highlight a recurring pattern of delayed budget execution, with a substantial share of development funds being spent near the end of each fiscal year.
Finance minister heads to Bangkok for World Bank and IMF annual meetings
Finance Minister Swarnim Wagle left for Bangkok, Thailand, on Tuesday to lead Nepal’s delegation to the annual meetings of the World Bank Group and the International Monetary Fund (IMF). Wagle departed from Tribhuvan International Airport on a Thai Airways flight at 1:30 pm. During the visit, he is scheduled to participate in more than 16 high-level bilateral and multilateral discussions covering macroeconomic stability, national development priorities and international financial cooperation. The delegation includes Finance Secretary Ghanshyam Upadhyaya, International Economic Cooperation Division Chief and Joint Secretary Amrit Lamsal, Private Officer Madhav Bhandari and Ministry Officer Gajendra Bhattarai. The official visit is scheduled to conclude with Wagle’s return to Nepal on October 21.
Service-sector lending rises 9.01 percent across the province
Bank and financial institutions operating in the province increased lending to the service sector by 9.01 percent, taking outstanding credit to Rs 2.169 trillion by the end of fiscal year 2025/26. The growth was slower than the 10.55 percent recorded in the previous fiscal year. Service-sector lending accounted for 59.86 percent of the region’s total credit portfolio. Consumer financing recorded the strongest growth at 18.37 percent, followed by finance, insurance and real estate at 15.44 percent. Lending to tourism rose 10.29 percent, health and social services increased 6.44 percent, education grew 6 percent, and wholesale and retail trade expanded 3.08 percent. However, credit declined by 1.15 percent in real estate transactions and 5.15 percent in transport, warehousing and communications. Kathmandu district accounted for 76.02 percent of total regional credit, while Rasuwa received just 0.10 percent.
NATTA warns of suspending Thailand tour packages over visa delays
The Nepal Association of Tour and Travel Agents (NATTA) has urged the government to address ongoing problems with Thailand’s tourist visa process, warning that it could suspend the promotion and sale of new tour packages if the situation continues. The association said prolonged processing times, unpredictable decisions and requirements for advance flight and hotel bookings are exposing travelers and travel agencies to financial risks. Applicants may lose money on non-refundable air tickets and hotel reservations when visas are rejected or decisions arrive after scheduled departure dates. NATTA also questioned the demand for additional hotel confirmations despite bookings made through established online platforms and business reservation systems. The association has called for urgent diplomatic intervention and a high-level meeting with the Royal Thai Embassy. It warned that Thailand could be placed on a blacklist of destinations for Nepali outbound tourism unless the visa process improves.
NEA provides Rs 500,000 relief to families of six employees missing in Bhote Koshi flood
The Nepal Electricity Authority (NEA) has begun providing financial assistance to families of employees who went missing in the Bhote Koshi flood on August 26. So far, the families of six employees have received Rs 500,000 each. The assistance was announced on Tuesday through the secretariat of Biraj Bhakta Shrestha, Minister for Energy, Water Resources and Irrigation. A total of 47 NEA employees went missing in the disaster. The NEA Board of Directors had decided to provide Rs 500,000 to the dependent family of each missing employee, along with half of the employee’s basic starting salary for the respective position for six months. According to the authority, the legal heirs of the six employees who submitted applications with the required supporting documents have received the payments. Other eligible family members have been asked to submit applications along with the necessary documentation.
Dashain departures slow Kathmandu businesses and ease traffic congestion
As Dashain approaches, thousands of people are leaving Kathmandu Valley for their hometowns, slowing commercial activity and reducing traffic in the capital. According to Rabindra Khanal, deputy superintendent of police at the Kathmandu Valley Traffic Police Office, 56,809 people left the valley through various checkpoints over the past 24 hours. Many residents who live in Kathmandu for work and education return to their ancestral homes for Dashain, Nepal’s biggest Hindu festival and a major occasion for family reunions. However, damaged roads and disruptions along the Prithvi Highway have made it difficult for transport operators to move passengers efficiently.
Pokhara, Bharatpur and Lumbini join forces to develop Silver Triangle tourism
Pokhara, Bharatpur and Lumbini have partnered to promote a proposed Silver Triangle tourism initiative aimed at attracting more visitors and boosting local economies. The collaboration brings together Pokhara Metropolitan City in Kaski, Bharatpur Metropolitan City in Chitwan and Lumbini Cultural Municipality in Rupandehi. The three local governments plan to promote their distinctive attractions, share best practices and strengthen cooperation. At an interaction in Bharatpur on Monday, participants highlighted the importance of tourism infrastructure, environmental protection, digital marketing and stronger partnerships between government agencies and the private sector. The initiative positions Pokhara as a destination for adventure tourism, Bharatpur for nature-based experiences and Lumbini for cultural and religious heritage. The local governments also emphasized better connectivity, increased private investment and the sustainable operation of Pokhara International Airport and Gautam Buddha International Airport. A Silver Triangle tourism fair is planned following a memorandum of understanding signed by the three local governments in May.
Resunga Airport resumes flights after nearly four-month suspension
Air services at Resunga Airport in Gulmi resumed on Tuesday after nearly four months of disruption caused by adverse weather, dense fog and strong winds beginning in the first week of June. Airport station chief Suman Thapa said a Nepal Airlines Corporation Twin Otter aircraft with 18 seats arrived from Kathmandu carrying 13 passengers before returning with two passengers. With weather conditions improving, the national carrier has revised its schedule to operate flights three times a week, on Sundays, Tuesdays and Fridays. Flights will depart Kathmandu at 7:15 am on Sundays and Tuesdays and at 6:20 am on Fridays. The fare from Kathmandu to Gulmi has been set at Rs 10,710, while the return fare is Rs 10,510.
Road disruptions leave 70 percent of Mustang apples awaiting market access
Only 30 percent of Mustang’s apple production has reached markets outside the district this year after heavy rainfall triggered landslides and river erosion, blocking the Beni-Jomsom road for two weeks from September 27. Although the road has reopened, difficult travel conditions are forcing farmers and traders to accelerate shipments as the apple-selling season progresses. The head of Mustang’s Agriculture and Livestock Development Branch said around 70 percent of the harvest should already have reached the market. Approximately 10 percent of total production is consumed locally. The head of the National Agriculture Modernization Program in Mustang estimated this year’s output at 10,000 metric tons, up from 7,000 metric tons last year, with sales expected to approach Rs 2 billion. The manager of Chimle Orchard Agriculture Farm in Gharpajhong-5 said the farm dispatched six truckloads of apples to Kathmandu within two days of the road reopening. Apples from all five local units of Mustang have now begun moving to markets.
Stricter border rules reduce Nepali shopping in India’s Rupaidiya market
The number of Nepali shoppers visiting Rupaidiya, an Indian border market, has declined following stricter enforcement of import regulations at the Jamunaha checkpoint in Nepalgunj. Under rules implemented from mid-April, imported goods worth more than Rs 100 are subject to customs duties. A former Nepalgunj Chamber of Commerce chairman said stricter inspections and additional costs have discouraged cross-border shopping during major festivals such as Dashain, Tihar and Chhath. Local residents have also reported long queues and inconvenience at the checkpoint. As fewer consumers shop across the border, domestic markets and shopping centers in Nepalgunj are seeing increased activity. Nepalgunj Chamber of Commerce chairman Chiranjivi Oli also confirmed a decline in cross-border smuggling.
Chaudandigadhi Municipality provides Dashain assistance to 228 Musahar families
Chaudandigadhi Municipality in Udaypur district has announced financial assistance for marginalized families from the Sada (Musahar) community to help cover Dashain expenses. Under the initiative, 228 families are receiving Rs 3,000 each through the municipality’s social support programs. Chief administrative officer Roshni Devi Karki said assistance had been distributed to 100 families in Ward No. 5, 44 in Ward No. 9 and 23 in Ward No. 10. The municipality plans to provide support to another 61 families in Ward No. 2. Mayor Kaluman Lama said the program is intended to ease the financial burden on economically disadvantaged households during the festival. Beneficiaries, including Shyam Kumari Sada and Sarita Sada, expressed appreciation for the municipal assistance.
FMTC Taplejung sells more than 78 quintals of subsidized food in one day
The Taplejung branch of the Food Management and Trading Company (FMTC) sold 78 quintals and 33 kilograms of subsidized food products worth Rs 767,500 to 298 customers on Monday, October 12. Branch chief Prakash Timsina said the day’s sales included 572 kilograms of pulses worth Rs 82,940 at Rs 145 per kilogram and 2,086 kilograms of sugar worth Rs 229,460 at Rs 110 per kilogram. Rice sales totaled Rs 455,100, covering 179 sacks of Jira Masino rice and 28 sacks of Sona Mansuli rice. The branch has distributed more than 200 quintals of sugar since October 1. With demand rising and queues lengthening, it has requested additional staff to help its four employees serve customers more efficiently.
Habitat for Humanity study highlights housing affordability and safety concerns in Nepal
A study by Habitat for Humanity Nepal has found that 70 percent of Nepali respondents frequently struggle to afford housing, while 72 percent feel unsafe in their homes because of extreme weather. The findings are included in the report Home at What Cost?, published on October 5. The survey was conducted between April 10 and June 30, 2026, across 22 countries and included 1,400 participants from Nepal. Recent disasters have intensified housing insecurity and displacement. The August 26 floods along the Bhote Koshi and Trishuli rivers damaged 7,570 homes, causing losses estimated at Rs 63.884 billion. Heavy rainfall in late September completely destroyed another 234 homes. Housing experts Eliza Sthapit and Lumanti Joshi emphasized the need for disaster-resilient construction, regulated land prices and supportive housing policies to improve residential security.
APF Women’s Association provides financial assistance to Bhote Koshi flood victims
The Armed Police Force (APF) Women’s Association has distributed financial assistance to serving personnel, retired officers and dependent families affected by devastating floods along the Bhote Koshi river basin. Association president Sabitra Kumari Poudel distributed the assistance at APF headquarters. Families of missing serving and retired personnel, including Assistant Head Constable Krishna Kumar Karki, Ashish Paudel, Constable Sajan Kunwar and retired Assistant Sub-Inspector Bal Bahadur Ghartimagar, received Rs 25,000 each. The association also provided Rs 10,000 each to injured retired officers and families of missing female personnel. In addition, Poudel contributed Rs 50,555 to the institutional disaster relief fund. Additional Inspector General Anjani Kumar Pokharel received the contribution, according to APF assistant spokesperson Shailendra Thapa.
Public procurement office blacklists five construction firms and suppliers
The Public Procurement Monitoring Office has blacklisted five construction companies and commercial suppliers for failing to comply with regulations and contractual obligations. The action was taken under subsection (1) of Section 63 of the Public Procurement Act, 2006, following recommendations from various government procurement agencies. The blacklisting prevents the affected businesses from participating in public procurement processes and government tenders at all levels during their respective debarment periods.
Garima Development Bank approves 20 percent dividend at 20th AGM
Garima Development Bank has approved a 20 percent dividend comprising 10 percent bonus shares and 10 percent cash dividends, including the amount allocated for tax purposes, at its 20th annual general meeting. The meeting also endorsed the bank’s financial statements, auditor reports and statutory balance sheets for fiscal year 2025/26, and appointed external auditors for the next fiscal year. The issuance of bonus shares will increase the bank’s paid-up capital from Rs 6.021 billion to Rs 6.623 billion. Garima Development Bank operates a nationwide network of 126 branch offices and 51 automated teller machines.
Nepal’s iron and steel exports surge nearly sixfold in first two months of fiscal year
Nepal’s iron and steel exports increased sharply during the first two months of the current fiscal year, reversing a three-year decline and strengthening the country’s export performance. According to the Trade and Export Promotion Center, export earnings from iron and steel products rose by 590.37 percent to Rs 3.37 billion in July and August, compared with Rs 48.94 million during the same period of the previous fiscal year. Galvanized corrugated sheets, GI pipes and kitchen utensils accounted for the main export products, with India and Sri Lanka serving as the principal destinations. Iron and steel products contributed 4.41 percent of Nepal’s total export trade during the period. Industry representatives, however, said sustained growth would depend on controlling electricity costs, improving manufacturing efficiency and maintaining demand in regional markets.
Mountain Energy Nepal proposes 21.0526 percent dividend for shareholders
Mountain Energy Nepal has proposed a dividend distribution of 21.0526 percent from its earnings for the previous fiscal year, subject to shareholder approval. At a board meeting held on October 12, the company recommended issuing 20 percent bonus shares and distributing a 1.0526 percent cash dividend to cover tax obligations. The proposals will be presented at the company’s 13th annual general meeting on Friday, November 6, at 10:30 am at Amrapali Banquet, Catering and Events in Bhatbhateni, Kathmandu. The company has scheduled its book closure for October 27, meaning shareholders eligible under the applicable record-date arrangements will be considered for the proposed distribution.
Thirteen hydropower companies announce dividends as seven complete book closures
Thirteen publicly listed hydropower companies have announced dividend proposals for shareholders, with bonus shares ranging from 5 percent to 24 percent forming a major part of the distributions. Investors seeking to qualify for the dividends must hold the relevant shares before each company’s book closure date. Seven of the 13 companies have already completed this process, meaning investors purchasing their shares afterward will not qualify for the current fiscal year’s distributions. According to company disclosures, cash dividends will be deposited into shareholders’ bank accounts after approval at the respective annual general meetings. Bonus shares, meanwhile, must complete regulatory registration and listing procedures before they can be traded on the Nepal Stock Exchange.
Bharatpur underground electrification project reaches 95 percent completion
Bharatpur Metropolitan City has connected 460 customers to its underground electricity distribution network, with the overall project reaching 95 percent completion. Ananda Subedi, chief engineer of the Nepal Electricity Authority’s Pokhara-Bharatpur Distribution System Project, said connections remain to be completed on three of the project’s 18 feeders. The initiative aims to connect 1,240 households in areas including Sahid Chowk, Pulchowk, the bypass road and the vicinity of Chitwan Medical College. Supported by the Asian Development Bank, the project has a contract value of Rs 140 million and was awarded to India’s Tata Projects in 2021. Its original completion deadline was January 20, 2024, but the deadline has been extended several times.
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