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 present a mixed picture of financial optimism, infrastructure vulnerability, and ongoing institutional reform. The Nepal Stock Exchange (NEPSE) recorded a strong 1.87 percent gain, with turnover rising to Rs 8.291 billion, suggesting improved investor confidence following the government’s capital market revival measures. At the same time, declining gold and silver prices indicate short-term movement in traditional safe-haven assets.
The real estate sector also showed signs of recovery, with transaction activity rising 4.74 percent and government revenue increasing substantially, pointing to improving property-market activity. Meanwhile, Nepal Rastra Bank’s five-year fintech strategy and expanded concessional lending demonstrate efforts to deepen digital finance, financial inclusion, and targeted economic support.
However, severe flooding has exposed major infrastructure and disaster-management weaknesses. Damage to hydropower facilities reduced national generation capacity by 431.1 MW, although continued electricity exports to India and an approved 18-hour import window provide important grid support. New hydropower safety requirements, including insurance and emergency preparedness, reflect a shift toward greater resilience.
The government is also addressing administrative inefficiencies through civil-service reforms, decentralized land services, and budget restructuring in Sudurpaschim. Overall, the developments suggest economic recovery is progressing, but sustaining it will depend on stronger infrastructure resilience, effective governance, and coordinated financial and energy policies.
Gold falls to Rs 300,100 while silver drops to Rs 4,600
Gold and silver prices declined in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold decreased by Rs 900 per tola, or 11.66 grams, to Rs 300,100. The price of silver also fell by Rs 20 per tola to Rs 4,600. On Monday, fine gold was traded at Rs 301,000 per tola, while silver was priced at Rs 4,620 per tola.
NEPSE rises 48.57 points as turnover reaches Rs 8.291 billion
The Nepal Stock Exchange (NEPSE) index climbed 48.57 points, or 1.87 percent, to close at 2,633.62 points on Tuesday, the second trading day of the week. Investor sentiment remained strong following the introduction of the Capital Market Strengthening and Revival Action Plan, 2026, by Finance Minister Swarnim Wagle, with the policy measures appearing to boost confidence in the market. Market turnover also increased significantly. Shares worth Rs 8.291 billion were traded on Tuesday, with 20,387,413 shares of 347 companies changing hands through 78,869 transactions. This was a notable increase from Monday’s turnover of Rs 4.68 billion. Buying pressure dominated the session as the government’s new action plan encouraged investors. Share prices of 265 companies increased, while 12 declined and one remained unchanged. All 13 sub-indices recorded gains. The non-life insurance sub-index posted the largest increase at 2.82 percent. Finance, investment, life insurance, and other sub-indices rose by more than 2 percent, while banking, development bank, hotel and tourism, hydropower, and microfinance sub-indices gained more than 1 percent.
National records show 4.74 percent growth in real estate transactions
Nepal’s real estate sector recorded a notable recovery during fiscal year 2025/26, with overall transaction volume increasing by 4.74 percent after contracting by 1.84 percent in the previous fiscal year. According to economic trend reports released by Nepal Rastra Bank, the total value of real estate transactions reached Rs 720.86 billion. The traded land area increased by 15.41 percent, while government revenue generated from real estate transactions surged by 48.26 percent. Analysts observed particularly strong activity during the final quarter, with formal deed registrations and property ownership transfers rising sharply across major urban administrative districts.
Balance in Prime Minister’s Disaster Relief Fund reaches Rs 14 billion
The Prime Minister’s Disaster Relief Fund has received a total of Rs 14 billion 27 million 329 thousand 777 in deposits. According to the Office of the Prime Minister and Council of Ministers, data updated at 9:00 AM today shows that Rs 10 billion 409 million 943 thousand 516 has been deposited in nine different banks. An additional USD 23 million 706 thousand 575 has been deposited in dollar-denominated accounts maintained at two other banks. A few days earlier, Rs 1 billion was released from the fund through the National Disaster Risk Reduction and Management Authority to support victims affected by flooding in the Bhote Koshi River area of Rasuwa.
NRB unveils five-year fintech strategy for digital transformation
Nepal Rastra Bank’s (NRB) Payment Systems Department has formally introduced the Fintech Strategy for Digital Financial Services (2026/27 to 2030/31), aimed at developing a secure, reliable, innovative, and inclusive digital financial ecosystem. The strategy will be implemented over five fiscal years beginning in 2026/27 and is built around three key pillars: digital infrastructure development, technology-friendly regulation, and the advancement of the financial ecosystem. The strategy seeks to improve transaction efficiency, reduce service costs, and enhance consumer protection. NRB also aims to accelerate financial inclusion among women, youth, small and medium enterprises, rural communities, and gig economy workers. In addition, the central bank plans to automate supervisory processes, expand financial literacy initiatives, and promote a level playing field for fintech service providers to support sustainable economic growth.
NRB expands concessional lending for Gen Z protest victims
Nepal Rastra Bank has amended the concessional loan interest subsidy guidelines for fiscal year 2025/26 to provide targeted financial assistance to families of martyrs and officially verified individuals injured during the recent Gen Z protests. Under the revised provisions, eligible households can obtain subsidized enterprise loans of up to Rs 1.5 million for businesses in agriculture, tourism, and information technology. Banking officials said the special lending facility is intended to promote sustainable self-employment and strengthen the economic independence of households affected by the protests.
Tourism Department reports 607 foreign tourists missing in Bhote Koshi floods
Tourism Department information officer Suraj Ghimire said 607 foreign nationals from 34 countries remain missing following severe flooding along the Bhote Koshi River corridor. The missing foreign nationals include 189 citizens of India, 65 of the United States, and 55 of Malaysia. In addition, 188 Nepali citizens have been reported missing. Rescue teams have so far evacuated 310 foreign tourists while continuing efforts to identify and assist survivors in affected areas. Security personnel and rescue teams are conducting extensive search operations across debris-covered valleys and other flood-affected locations in an effort to locate those still missing.
Ministry of Land Management to register new Guthi bill in Parliament
Minister for Land Management, Cooperatives and Poverty Alleviation Pratibha Rawal has announced that the government will register a new Guthi bill in Parliament after completing consultations with stakeholders and reviewing recommendations from experts. Speaking at a meeting of the House of Representatives, Rawal said the legislation would be introduced after the previous bill was withdrawn from the National Assembly. She emphasized that Guthi lands are closely associated with religious traditions, cultural heritage, festivals, and community welfare. The minister also assured tenant farmers that their existing rights would remain protected under the Guthi Corporation Act, 1976. These protections include tenancy rights, the ability to transfer relevant rights, and authorization to construct residential buildings subject to official approval and payment of applicable fees.
Nepal continues exporting up to 800 MW of electricity to India despite flood damage
Nepal continues to export surplus electricity to India despite flood damage to 13 hydropower projects in the Bhote Koshi area, according to the Nepal Electricity Authority (NEA). NEA Acting Executive Director Dirghayu Shrestha said Nepal is currently exporting between 500 MW and 800 MW of electricity to India each day after meeting domestic demand. The exports are expected to continue through December 31, depending on bidding at the Indian Energy Exchange and the condition of transmission lines. Shrestha said the damage caused by the floods has not interrupted electricity exports. Nepal exported as much as 800 MW to India on Tuesday morning, although the volume generally decreases during the afternoon. The NEA reported that flood damage has removed 431.1 MW of generation capacity from the national grid. However, high river flows during the current monsoon season have enabled other hydropower plants to operate at full capacity.
India approves 18-hour electricity import window for Nepal
The Indian Ministry of Power has approved an arrangement allowing Nepal to import up to 654 MW of electricity per day for an 18-hour period, from midnight to 6 PM, through December 31, 2026. The measure is intended to help address electricity shortages resulting from extensive damage to hydropower infrastructure caused by recent floods. Electricity will be transmitted through the Muzaffarpur-Dhalkebar and Tanakpur-Mahendranagar transmission corridors. Energy sector representatives welcomed the arrangement, saying increased cross-border electricity cooperation would help stabilize Nepal’s national grid during the recovery period.
Ministry orders offices to release transferred civil servants within deadline
The Ministry of Land Management, Cooperatives and Federal Affairs and General Administration has instructed all ministries, commissions, secretariats, provincial governments, and local governments to issue release orders for transferred civil servants within the legally prescribed timeframe. The directive follows findings that some transferred employees were being retained at their former offices on various grounds while continuing to receive salaries and allowances. Under the Civil Service Regulations, salary and allowance payments made after the prescribed release deadline will be recovered from the concerned office chief and accounts chief. The ministry warned that failure to comply with the directive could lead to legal action. The Office of the Auditor General will also treat salary payments made to civil servants who have not been formally released as unresolved audit irregularities. The ministry said the measure is intended to address staffing shortages and improve administrative efficiency and stability.
Finance Ministry unveils capital market action plan to revive investor confidence
The Ministry of Finance has introduced the Capital Market Strengthening and Revival Action Plan, 2026, with the aim of revitalizing domestic share trading and encouraging greater private sector participation. The plan includes changes to capital gains taxation, reducing the applicable rate to 3.75 percent for investments held for more than 365 days and setting the rate at 5 percent for shorter holding periods. It also proposes shorter investment periods for banks and financial institutions and establishes a stronger legal foundation for introducing modern derivatives and short-selling mechanisms. Market stakeholders have welcomed the policy measures, saying they could improve liquidity, strengthen market stability, and restore investor confidence.
Energy Ministry establishes mandatory insurance and safety framework for hydropower projects
The Ministry of Energy, Water Resources and Irrigation has introduced a six-point safety framework for hydropower projects in response to the extensive physical damage and operational risks caused by recent floods along the Bhote Koshi River. Energy Minister Biraj Bhakta Shrestha and ministry spokesperson Mohan Kumar Shakya announced the new guidelines, which require all hydropower projects to obtain comprehensive hull and structural insurance and appoint a dedicated safety officer at each project site. The framework also requires projects to conduct regular emergency rescue training and maintain detailed contingency plans. Powerhouse facilities must maintain reserves of essential food and emergency supplies sufficient for at least 30 days. Meanwhile, engineering teams are working on structural improvements to underground water tunnels to strengthen hydropower infrastructure against future climate-related risks.
Sudurpaschim government revises budget and restores capital projects
The Sudurpaschim Province government has begun a comprehensive revision of its budget to resolve a two-month-long fiscal deadlock and address planning deficiencies inherited from the previous administration. The government is removing incorrectly listed capital projects from the Project and Logistic Information Management System (PLIMBS) database while also inviting citizens to submit proposals for infrastructure projects through a newly introduced digital platform. Physical Infrastructure Development Minister Om Bikram Bhatta and government spokesperson Prakash Bahadur Rawal are overseeing the initiative. Officials said future project allocations will focus more closely on local needs while eliminating administrative duplication to accelerate development activities.
Flood damage unlikely to cause winter load-shedding, NEA says
The Nepal Electricity Authority (NEA) has said Nepal is unlikely to face load-shedding during the upcoming winter despite flood damage that has removed 431.1 MW of electricity generation from the national grid. According to the NEA, total electricity generation, which had recently reached around 4,120 MW, has declined to approximately 3,500 MW following damage to hydropower plants, solar facilities, and transmission infrastructure. Former Energy Minister and former NEA Executive Director Kulman Ghising said Nepal could manage any potential winter power shortage through electricity imports from India. He noted that peak domestic electricity demand stands at around 2,500 MW, while the country’s installed generation capacity has surpassed 4,500 MW. During fiscal year 2025/26, an additional 529 MW of generation capacity was connected to the national grid. The expansion of transmission infrastructure has also helped strengthen the country’s power system.
Krishnabhir track opening completed, two-way traffic to resume Thursday
Track-opening work at Krishnabhir along the Nagdhunga-Mugling section of the Prithvi Highway has been completed, with two-way traffic expected to resume from Thursday, September 17. Prime Minister Balendra Shah had previously told Parliament that the road, which was blocked after floods on August 26 and August 30, would be reopened by mid-September. The Ministry of Physical Infrastructure and Transport, with support from the Department of Roads and the Nepal Geotechnical Society, conducted rapid assessments and hillside cutting to create a new 250-meter track. Following successful trial operations on September 13, workers are completing final gravelling and drainage works to facilitate safe and smooth vehicular movement.
Flood-affected Bidur Municipality proposes eight reconstruction sites and dry port development
Bidur Municipality has presented Prime Minister Balendra Shah with a comprehensive plan for disaster rehabilitation and regional recovery. Municipality Mayor Rajan Shrestha proposed eight designated areas for temporary and permanent relocation, including smart city-style housing models and land-swap arrangements. The municipality has also proposed strategic infrastructure projects, including the development of a dry port, an industrial zone, and a specialized disaster management research center. Municipal officials said proactive relocation and planned settlement development are essential to reduce the risks posed by recurring geological hazards.
Rupandehi Police seize tankers and arrest assistant driver over fuel theft
A team from the Lumbini Province Police Office, Dang, has seized two fuel tankers after discovering petroleum products being illegally siphoned at Saraf Oil Center in Bhairahawa. The tankers had been dispatched from the Bhalwari Depot. Following the incident, authorities in Rupandehi arrested an assistant driver and launched further investigations into fuel distribution practices, security seals, and measurement procedures. Officials have raised concerns about possible collusion between transport operators and petrol station employees, which has previously been identified as a risk to the integrity of petroleum supply chains across the province.
Casino operators demand five-year license renewal
Casino operators have called for casino operating licenses to be renewed every five years instead of annually, arguing that longer license periods would make it easier to obtain bank financing and invest in infrastructure. During discussions on the Tourism Bill, 2025, before the Parliamentary Committee on International Relations and Tourism, casino representatives Amulya Rana, Amit Gupta, Girdhar Tandan, and Balram Sapkota presented a series of proposed reforms. They also urged the government to establish clear legal provisions preventing multiple casino branches from operating within a single hotel, introduce regular inspections every three to five months, and allow permanent residents and green card holders to enter casinos. The operators further called for standardized classification criteria distinguishing between mini and large casinos.
CAN leadership dispute escalates as acting president files cyber complaint
A leadership dispute within the Computer Association of Nepal (CAN) Federation has intensified after Acting President Chiranjibi Adhikari filed a complaint with the Nepal Police Cyber Bureau against General Secretary Chandra Bilas Bhurtel. The complaint followed an allegedly ignored 24-hour disciplinary notice concerning claims of corporate email lockouts, unauthorized administrative closures, and violations of institutional procedures. Members of the governing board have expressed concern over the continuing internal dispute, warning that the leadership crisis could affect the organization’s activities aimed at promoting information technology nationwide.
Local unit launches land services to reduce travel burden
Bhanu Municipality has launched local land administration services to reduce the need for residents to travel to the district headquarters in Dumrawali for government documentation. The service was introduced after receiving approval from the Ministry of Land Management, Cooperatives and Poverty Alleviation. Gandaki Province Chief Minister Surendra Raj Pandey officially inaugurated the service through a digital launch. Bhanu Municipality Mayor Anandaraj Tripathi said a dedicated land management branch has been established with specialized service desks. Officials said decentralizing land-related services will reduce travel costs, administrative delays, and other difficulties faced by residents seeking property registration and formal land titles.
Jhapa grocery fined Rs 200,000 for selling expired animal feed
Das Kirana Pasal in Mechinagar Municipality-9, Jhapa, has been fined Rs 200,000 for selling expired cattle feed that reportedly caused illness in a local farmer’s cow. The penalty was imposed under Section 39(j) of the Food Safety Act following a market inspection and subsequent investigation by Subash Chandra Osti, a food research officer at the Food Technology Office in Bhadrapur. The inspection team seized 14 sacks, weighing a total of 490 kilograms, of expired Shakti Brand B-Series animal feed manufactured by Pro-Biotech Industries Limited in Birgunj Sub-metropolitan City-21. Officials said the expired products had been offered for sale to consumers without adequate quality and safety checks.
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