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 on Monday reflected a mix of market optimism, external pressures and the mounting costs of natural disasters. The Nepal Stock Exchange (NEPSE) gained 25.55 points to 2,585.04, extending double-digit gains for a second consecutive session. Investors appear encouraged by Finance Minister Swarnim Wagle’s proposed capital-market reforms, although questions remain over implementation timelines and whether policy assurances alone can sustain the rally.
Meanwhile, falling domestic gold and silver prices contrasted with a sharp rise in global oil prices. Brent crude surpassed $107 per barrel amid supply concerns, potentially increasing inflationary pressure on Nepal through higher import costs.
Consumer demand remained strong around Teej, with Nepal importing Rs 2.542 billion worth of cosmetics, garments and related products in one month. NRB’s directive to make Rs 100 notes available through ATMs is also aimed at easing cash access during the festival season.
The most significant economic concern, however, is the Bhotekoshi flood. Damage and losses have reached Rs 482.81 billion, equivalent to 6.69 percent of projected GDP, while recovery and reconstruction could require Rs 723.32 billion. Transport infrastructure alone needs Rs 73.34 billion for reconstruction, alongside substantial agricultural and livestock losses. Government task forces and proposed relocation measures indicate a shift from immediate relief toward longer-term reconstruction and disaster resilience.
NEPSE rises 25.55 points, turnover reaches Rs 4.688 billion
The Nepal Stock Exchange (NEPSE) index gained 25.55 points on Monday, the first trading day of the week, to close at 2,585.04 points. The market remained firmly in positive territory as all group sub-indices posted gains. A total of 11,595,654 shares of 336 companies changed hands, generating a turnover of Rs 4.688 billion. Share prices of 226 companies increased, while those of 47 companies declined. The market has recorded double-digit gains for two consecutive trading sessions, with investors attributing the latest rise partly to assurances made by Finance Minister Swarnim Wagle regarding reforms in the capital market.
Gold falls to Rs 301,000 per tola, silver to Rs 4,620
Gold and silver prices declined in the Nepali market on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of hallmark gold fell by Rs 1,200 per tola (11.66 grams) to Rs 301,000. It was traded at Rs 302,200 per tola on Sunday. The price of 10 grams of hallmark gold has been fixed at Rs 258,060. Silver also declined by Rs 40 per tola to Rs 4,620, down from Rs 4,660 on Sunday. The price of 10 grams of silver has been fixed at Rs 3,961.
Nepal imports over Rs 2.5 billion worth of Teej-related goods
Nepal imported cosmetics and other festive goods worth Rs 2.542 billion between mid-July and mid-August this fiscal year amid increased consumer demand ahead of the Teej festival. According to trade statistics from the Department of Customs, imports during the period included sarees and other textile garments worth Rs 1.104 billion, glass bangles and beads worth Rs 92.8 million, and personal care and beauty products worth Rs 1.224 billion. Teej, a major festival celebrated by Nepali Hindu women, is being observed across the country today.
Global oil prices surge 3% past $107
International crude oil prices rose sharply on Monday amid growing concerns over global supply following the temporary shutdown of Saudi Arabia’s key East-West oil pipeline after a drone strike. Brent crude futures increased by $2.93, or 2.8 percent, to settle at $107.54 per barrel, while West Texas Intermediate (WTI) futures climbed $2.88, or 2.9 percent, to $102.93 per barrel. The price surge added to global inflationary pressures after Oman postponed diplomatic talks between Iran and Gulf Arab countries that had been scheduled for Monday.
PM Shah commits resources for Bhotekoshi flood rehabilitation
Prime Minister Balendra Shah has pledged that there will be no shortage of resources for rehabilitation following the Bhotekoshi floods in Rasuwa. During a discussion with representatives from flood-affected areas at the Office of the Prime Minister and Council of Ministers on Monday, Shah said the government would mobilize domestic resources as well as support from donor agencies. He said flood-affected settlements in vulnerable riverbank areas could not be rebuilt in their existing locations and that preparations were underway to relocate displaced communities to safer areas nearby. The Prime Minister stressed that the relocation plan should address the affected communities’ needs for employment, education, health and other essential services. He also emphasized the protection of cultivable land and the need for scientifically planned settlements. Restoring road connectivity remains a government priority, Shah said, urging local representatives to identify and recommend suitable land for permanent settlements.
NRB directs banks to dispense Rs 100 notes through ATMs
Nepal Rastra Bank (NRB) has directed banks and financial institutions to make Rs 100 notes available through their automated teller machines (ATMs). The central bank said the measure is intended to make cash withdrawals more convenient and reduce congestion at bank branches during the upcoming festival season. The Currency Management Department issued the directive to the Nepal Bankers Association, asking member banks to make the necessary arrangements. Most ATMs in Nepal currently dispense only Rs 500 and Rs 1,000 notes, forcing customers seeking smaller denominations to visit bank counters. This often results in long queues during major festivals such as Dashain. NRB said it had consulted several banks about the technical requirements and found that ATMs could be configured to dispense Rs 100 notes.
Finance Minister Wagle’s reform plans boost share market
Finance Minister Swarnim Wagle’s announcement of a 10- to 12-point reform package for the capital market appears to have contributed to recent gains in the share market. Wagle announced last week that the government would introduce measures aimed at addressing weaknesses in the capital market and supporting its development and expansion. The impact of his announcement was reflected in Friday’s trading and continued on Monday, when the NEPSE index gained 25.55 points. Some investors have attributed the market’s double-digit gains over two consecutive sessions to the proposed reform package. However, others have questioned whether the government should make assurances aimed at supporting the market without a clear timeline for implementing the proposed measures.
Bhotekoshi floods cause Rs 482.81 billion in damage and losses
The August 26 flash floods along the Bhotekoshi and Trishuli river corridors caused physical damage and economic losses estimated at Rs 482.809 billion, equivalent to about $2.69 billion. The losses amount to 6.69 percent of Nepal’s projected gross domestic product (GDP) of Rs 6.107 trillion for fiscal year 2025/26, according to preliminary findings of the National Disaster Risk Reduction and Management Authority. The assessment estimates that Rs 723.315 billion ($4.77 billion) will be required for sustainable recovery and reconstruction, equivalent to 11.84 percent of annual GDP. The floods, reportedly triggered by massive rockfalls and glacier breaches in the upper Lhende Khola watershed, affected 15 local administrative units. Search and rescue operations remain underway, with 5,130 people still reported missing and 1,377 bodies recovered. The disaster also damaged 7,570 residential houses. Rs 73.34 billion needed to rebuild flood-damaged roads and bridges The reconstruction of roads and bridges damaged by the Rasuwa-Bhotekoshi floods is estimated to require Rs 73.34 billion. According to Rapid Damage and Needs Assessment (RDNA) data, the floods caused physical damage and economic losses of more than Rs 34.77 billion to transport infrastructure. The disaster completely destroyed 55 kilometers of the strategic highway leading toward the Chinese border, along with 33 motorable bridges and 68 trail-bridge spans. The road sector suffered direct structural damage estimated at Rs 22.07 billion along the Galchhi–Trishuli–Rasuwagadhi corridor. Bridge damage across four districts was estimated at Rs 11.35 billion, with Nuwakot recording the highest losses. The assessment estimates that Rs 55.18 billion will be required to restore roads and Rs 18.16 billion to rebuild bridges.
Livestock sector suffers Rs 1.11 billion loss after Bhotekoshi floods
The livestock and poultry sector suffered an estimated Rs 1.11 billion in losses following the August 26 flash floods in the Bhotekoshi-Trishuli river system. The RDNA report prepared by the National Planning Commission and NDRRMA shows that 252,445 animals and birds were affected. Poultry accounted for the largest number of affected animals, with 214,827 birds impacted. However, despite representing 85.1 percent of the total number of affected animals and birds, poultry accounted for only 4.8 percent of the total financial losses. The loss of 4,572 buffaloes was estimated at Rs 457.2 million, while losses involving goats and mountain goats stood at Rs 391.3 million. Losses involving cows and oxen were estimated at Rs 179.2 million. Together, these three livestock categories accounted for 92.3 percent of total losses in the livestock sector.
Bhotekoshi floods cause Rs 1.09 billion in agricultural losses
The agricultural sector suffered an estimated Rs 1.09 billion in losses after flash floods struck the Bhotekoshi-Trishuli river system on August 26. According to the Rapid Damage and Needs Assessment (RDNA) report prepared by the National Planning Commission and National Disaster Risk Reduction and Management Authority (NDRRMA), the floods damaged 1,669 hectares of paddy fields, resulting in an estimated production loss of 5,843 tonnes of paddy. Vegetable farming was also affected, with 137 hectares of farmland damaged and an estimated 1,843 tonnes of produce lost. Bidur in Nuwakot was among the worst-affected areas, with 700 hectares of paddy fields and 98 hectares of vegetable farms damaged. Likhu and Belkotgadhi in Nuwakot, several local levels in Dhading, and areas of Rasuwa and Gorkha were also affected.
Govt mobilizes eight task forces for flood recovery
The government has mobilized eight specialized task forces to accelerate reconstruction and recovery following the recent floods.The decision was announced during a high-level coordination meeting held on Monday at the Office of the Prime Minister and Council of Ministers involving Prime Minister Balendra Shah, Minister for Physical Infrastructure and Transport Sunil Lamsal and regional parliamentarians. The task forces will focus on restoring damaged roads, suspension bridges and footbridges while avoiding duplication and delays in the reconstruction process. The government aims to restore washed-out transport infrastructure by mid-October and rehabilitate damaged drinking water systems by November-December 2026.
Bagmati prepares proposal to insure government buildings
The Bagmati Province government is preparing a proposal to bring all provincial government buildings under insurance coverage to reduce the financial burden caused by natural disasters and structural damage. Minister for Physical Infrastructure Development and government spokesperson Bharat Bahadur K.C. said the proposal would be presented at the upcoming provincial cabinet meeting. Although no separate budget has been allocated for insurance premiums in the current fiscal year, the government plans to cover the costs through disaster management funds. The provincial government is also working to improve the renewal system for insurance coverage of official government vehicles, which has reportedly been inconsistent.
Contractor fined Rs 1.991 billion over 14-year delay in Kankai bridge
The Postal Highway Directorate’s project office in Itahari has ordered contractor Papu Mahadev Khimti JV to deposit Rs 1.991 billion in state revenue over the prolonged delay in constructing the Kankai bridge. The office issued a 35-day public notice under public procurement regulations, warning that the amount would be recovered from the contractor’s assets if it is not paid within the stipulated period. The contract for the 723-meter bridge connecting Jhapa Rural Municipality-2 and Gauriganj Rural Municipality-1 was terminated last year after construction remained incomplete for 14 years. Progress had reached only 56 percent despite five contract extensions. The initial contract, worth Rs 340.9 million, was signed in June 2011.
Makwanpur traffic police collects Rs 17.2 million in fines
The District Traffic Police Office, Makwanpur collected Rs 17.2 million in fines from 18,192 traffic rule violators during fiscal year 2025/26. Despite intensified enforcement, the district recorded 414 road accidents during the year, resulting in 64 deaths, 114 serious injuries and 711 minor injuries. Office chief Ramesh Bista said imposing fines alone would not be enough to reduce traffic violations and accidents, stressing the need to improve road safety awareness among drivers and the general public.
Krishnabhir section of Prithvi Highway to reopen for two-way traffic
Following successful technical trial runs on Monday, the Department of Roads has announced plans to reopen the landslide-prone Krishnabhir section of the Prithvi Highway to two-way traffic from September 17. Deputy Director General of the Planning and Monitoring Division Shubharaj Nyaupane said the initial clearance would allow stranded gas bullets and emergency vehicles to pass through the section. However, stabilization works, including gravel compaction, subsurface drainage, French drains and horizontal drilling, will continue under the technical guidance of the Nepal Geotechnical Society.
MCC Nepal Compact completes 400kV cross-border transmission line
The Nepal section of the 400-kilovolt (kV) cross-border transmission line under the MCC Nepal Compact has been completed within nine months of its groundbreaking. The line stretches from the New Butwal substation in Nawalparasi (Bardaghat Susta West) to the Nepal-India border. It was formally inaugurated in November 2025 by then-Finance Minister Rameshwar Khanal. Indian contractor Transrail Lighting Limited carried out the work under a contract worth $1.238 million, equivalent to approximately Rs 1.89 billion, managed by MCA-Nepal.
365 Dhanusha families receive landownership certificates after 11 years
A total of 365 families in Hansapur Municipality-5 of Dhanusha, formerly Suga Nikas Village Development Committee, have received landownership certificates nearly 11 years after their land was surveyed and measured. The Survey Office, Dhanusha, distributed the certificates to long-term occupants after completing the required legal and administrative procedures. Survey and measurement work in the area was completed in fiscal year 2015/16, but the certificates could not be issued because the necessary legal and administrative processes remained incomplete. The formal recognition of land ownership will enable residents to access legal and financial benefits, including obtaining bank loans by using their land as collateral. It is also expected to help resolve land-related disputes. Previously, landownership certificates had been distributed to 3,601 families in Dhanusha.
Bhojpur farmers turn to turmeric to tackle monkey menace
Farmers in Bhojpur are increasingly turning to turmeric cultivation after monkeys repeatedly damaged traditional crops such as maize, millet, rice and various fruits. According to local farmer Nawaraj Phuyal of Bokhim, Bhojpur Municipality-5, turmeric cultivation is expanding rapidly in lower areas and along forest edges because monkeys generally do not disturb the underground tubers. Farmer Maiyanani Neupane said turmeric has a ready market, with turmeric flour currently selling for Rs 100 to Rs 120 per kuruwa. Bhim Prasad Neupane said low investment costs, limited labour requirements, medicinal value and the crop’s long storage life have encouraged farmers to cultivate land that was increasingly being left barren because of persistent wildlife damage.
Flood-damaged Jahare substation resumes full operations
The Jahare substation in Jaharekhet, Dhading, has resumed full commercial operations after being buried under around 10 feet of debris and silt during the August 26 Bhotekoshi floods. The substation resumed operations at 2 pm on September 13 following round-the-clock efforts by engineering teams and the deployment of heavy equipment by the Nepal Electricity Authority. The restoration has re-established stable electricity supplies to Gajuri Bazar, Adamghat, Pirachowk and Milantar.
NIMB executives retain positions despite fraud charges
Nepal Investment Mega Bank (NIMB) Chairman Prithvi Bahadur Pande and Chief Executive Officer Jyoti Prakash Pandey continue to hold their positions despite facing charges related to fraud, organized crime and banking offences in connection with the Smart Telecom auction case. Following an investigation by the Central Investigation Bureau, the District Government Attorney’s Office filed a case at the Kathmandu District Court on August 12, seeking Rs 4.27 billion in damages. CEO Pandey was released on Rs 8 million bail on August 20, while Chairman Pande was granted bail of Rs 4 million on September 7. Unlike the case involving former Prabhu Bank CEO Ashok Sherchan, in which Nepal Rastra Bank took regulatory action, authorities have not suspended the NIMB executives. The situation has raised questions about corporate governance and regulatory oversight.
Nepal Lube Oil proposes 21.02% dividend and rights shares
Nepal Lube Oil has proposed a total dividend of 21.02 percent from its previous fiscal year’s profits, comprising 15 percent bonus shares and 6.05 percent cash dividend, including tax. The company has scheduled its 35th annual general meeting for October 5, 2026. The meeting will also consider the issuance of more than 1.4 units of rights shares. The company has set September 21 to October 5 as its book closure period.
Shine Resunga Development Bank proposes 16% dividend
Shine Resunga Development Bank has proposed a 16 percent dividend from its profits for the previous fiscal year. At a board meeting held on Sunday, September 13, the bank decided to distribute Rs 301.3 million in bonus shares and Rs 502.1 million in cash dividends. The proposal is subject to approval from Nepal Rastra Bank and endorsement by the bank’s upcoming annual general meeting.
Valley Hydropower Development proposes 5.263% dividend
Valley Hydropower Development Company has proposed a total dividend of 5.263 percent from its earnings for the previous fiscal year. The proposed distribution comprises a 5 percent bonus share and 0.263 percent cash dividend for tax purposes. The company has scheduled its annual general meeting for October 13, 2026, with September 29 set as the book closure date.
Film ‘Parvati’ crosses Rs 20 million at domestic box office
Nepali film Parvati, released on August 28, has crossed the Rs 20 million mark at the domestic box office despite disruptions caused by floods in Rasuwa. According to the Film Development Board, the film earned more than Rs 15 million in its first 10 days and generated an additional Rs 4.6 million in the following week. The board’s data released on Monday shows that the film had grossed Rs 20.5 million as of Sunday, September 13, with 73,223 tickets sold. Parvati is the fourth Nepali film released this year to cross the Rs 20 million mark, following Paral Ko Aago, Lalibazar and Gauthali. The film is currently in its third week of screening. Meanwhile, Cannes-winning film Elephants in the Fog, released on September 4, earned Rs 8.5 million in its first 10 days, with 24,483 tickets sold. It has recorded the second-highest earnings among Nepali films released in August. Gauthali, released on July 16, has grossed Rs 259.3 million in 59 days.
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