KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic indicators present a mixed picture, with strong external reserves and improving financial balances alongside rising inflation, disaster-related losses and uneven market performance. The NEPSE index edged up 4.67 points to 2,625.93, supported by gains in most sectors, although trading activity remained mixed. Gold and silver prices declined, reflecting short-term movements in the domestic precious metals market.
The country’s external position appears relatively strong. Foreign exchange reserves reached Rs 4.065 trillion, sufficient to cover 17.8 months of goods and services imports, while the current account surplus rose to Rs 169.04 billion in the first two months of fiscal year 2026/27. However, annual consumer inflation accelerated to 6.34 percent, driven largely by higher food, edible oil, fruit and transportation prices, increasing pressure on household purchasing power.
Recent floods have highlighted Nepal’s vulnerability to climate-related disasters. Insurance claims exceeding Rs 20.9 billion underscore the potential economic burden, while discussions with the World Bank, IMF and Asian Development Bank indicate efforts to mobilize recovery financing and strengthen disaster resilience.
Meanwhile, government initiatives in education infrastructure, green urea production, rural agriculture, electricity distribution and capital-market reform signal opportunities for long-term development. Overall, Nepal’s priority should be to convert external financial stability into productive investment, contain inflation, improve implementation capacity and strengthen climate resilience.
NEPSE gains 4.67 points as turnover reaches Rs 4.71 billion
The Nepal Stock Exchange (NEPSE) index rose by 4.67 points to close at 2,625.93 points on Thursday, with total turnover reaching Rs 4.71 billion. According to NEPSE, approximately 13.6 million shares were traded during the session. Share prices of 172 companies increased, while 90 declined and 15 remained unchanged. Beni Hydropower Project recorded the highest gain, rising by 14.98 percent. Other advancing companies posted gains of up to 6.35 percent, while the maximum decline among falling stocks was 3 percent. Kumari Bank led turnover with transactions worth Rs 230 million, closing at Rs 238 per share. Api Power followed with turnover of Rs 220 million, while Ghalemdi Hydro recorded transactions worth Rs 180 million. Sector-wise, commercial banks, manufacturing and processing, trading, and the others group registered losses. The remaining sectoral indices ended the day higher.
Gold falls to Rs 288,400 per tola, silver to Rs 4,035
Gold and silver prices declined in Nepal’s domestic market on Thursday, October 15, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold fell by Rs 1,100 per tola to Rs 288,400. It had traded at Rs 289,500 per tola on Wednesday. Silver prices also dropped, declining by Rs 220 per tola to Rs 4,035. A tola is equivalent to approximately 11.66 grams.
Nepal’s foreign exchange reserves climb to Rs 4.065 trillion
Nepal’s gross foreign exchange reserves increased by 4.3 percent to Rs 4.065 trillion by mid-September 2026, compared with Rs 3.897 trillion at the end of fiscal year 2025/26, according to Nepal Rastra Bank’s latest macroeconomic report. Reserves held by the central bank rose by 4 percent to Rs 3.610 trillion, while those maintained by banks and financial institutions increased by 7.2 percent to Rs 455.01 billion. Indian currency accounted for 21.3 percent of total reserves. In US dollar terms, the country’s reserves grew by 4.6 percent, from USD 25.31 billion to USD 26.48 billion. Based on merchandise and service trade during the first two months of fiscal year 2026/27, the reserves were sufficient to cover 20.9 months of merchandise imports and 17.8 months of imports of both goods and services.
Govt and World Bank assess catastrophe bond for disaster financing
The Government of Nepal and the World Bank have signed an agreement to assess the feasibility of issuing a catastrophe bond to secure rapid financing following a major earthquake or other disaster. The agreement, signed on Thursday, brings together the government and the World Bank Group Treasury to explore how international capital markets could help Nepal manage disaster-related financial risks and complement its existing disaster response mechanisms. The signing ceremony was attended by Finance Minister Swarnim Wagle, Finance Secretary Ghanashyam Upadhyaya, World Bank Vice President for Treasury Jorge Familiar, and David Sislen, divisional director for Maldives, Nepal and Sri Lanka. A catastrophe bond transfers disaster-related risks to investors and provides funding when predefined conditions are met. If found feasible, the proposed instrument could provide an additional source of financing for emergency response and post-disaster recovery. The agreement marks the beginning of a feasibility assessment. No catastrophe bond has been issued under the initiative.
IMF chief expresses support for Nepal following devastating floods
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has expressed solidarity with Nepal following the recent devastating floods, saying the fund’s support, including emergency financing, is expected soon. In a post on X on Thursday, Georgieva said she had held a productive meeting with Finance Minister Swarnim Wagle and Nepal Rastra Bank (NRB) Governor Biswo Nath Poudel on the sidelines of the annual meetings of the IMF and the World Bank Group in Bangkok, Thailand. Georgieva said the discussions included the IMF’s potential assistance to Nepal, particularly emergency financing to help address the consequences of the floods. However, she did not disclose the proposed funding amount or specify when the assistance would be released. The meeting took place as Nepal continues efforts to respond to flood damage and support recovery in affected communities.
Annual consumer inflation rises to 6.34 percent
Nepal’s year-on-year consumer price inflation accelerated to 6.34 percent in the month from August 17 to September 16, 2026, compared with 1.87 percent during the corresponding period a year earlier, according to Nepal Rastra Bank. Food and beverage prices increased by 7.54 percent. The largest rises were recorded in ghee and edible oil, at 16.68 percent; fruits, at 15.99 percent; sugar and confectionery, at 12.14 percent; fish and meat, at 7.34 percent; and fresh vegetables, at 7.07 percent. Inflation in non-food goods and services stood at 5.69 percent. Within this category, transportation prices rose by 12.77 percent, alcoholic beverages by 8.83 percent, and apparel and footwear by 7.06 percent. Regional figures showed inflation at 6.78 percent in rural areas and 6.19 percent in urban areas. Madhesh Province recorded the highest provincial inflation rate at 7.48 percent, while Sudurpashchim Province had the lowest at 5.16 percent. Annual wholesale inflation also climbed to 8.08 percent. Meanwhile, India’s consumer inflation stood at 4.82 percent in August 2026, according to the reported figures.
Insurance claims for Bhote Koshi floods exceed Rs 20.9 billion
Insurance companies in Nepal have received preliminary claims exceeding Rs 20.9 billion following the devastating flash floods in the Bhote Koshi River basin, according to the Nepal Insurance Authority. By October 14, a total of 2,427 initial claims had been registered with 18 non-life insurance companies. Insurers had paid out a combined Rs 235.2 million in settlements. Himalayan Everest Insurance recorded the highest estimated claim amount among individual insurers, reporting Rs 66.1 million across 161 claimants. Shikhar Insurance led in settlements, paying out Rs 198.9 million. Property insurance accounted for the largest share of reported claims, with 572 cases involving estimated liabilities of Rs 957.2 million. Other affected categories included engineering and contractors’ all-risk insurance, with claims of Rs 43.97 million; motor insurance, at Rs 28.50 million; and marine transit insurance, at Rs 23.41 million. The figures represent preliminary claims and payments recorded by the reporting date.
Nepal imports playing cards worth Rs 63 million in two months
Nepal imported 2,355,801 packs of playing cards worth Rs 63 million during the first two months of fiscal year 2026/27, generating Rs 38.4 million in customs revenue, according to the Department of Customs. The figures highlight the scale of commercial playing-card imports during the festive season, when card games are a popular pastime. Commercial imports are permitted under customs regulations, although unauthorized gambling remains subject to legal restrictions. Department Information Officer Kishore Bartoula said Nepal imported 1,992,265 packs worth Rs 51.8 million in July. China accounted for the largest share, supplying approximately 1.4 million packs valued at Rs 46.7 million. India supplied around 524,000 packs worth Rs 5 million, while smaller quantities came from Japan and the United States. Imports increased further in August, when Nepal brought in 363,536 additional packs valued at Rs 11.1 million.
Finance Minister urges ADB to support Nepal’s flood recovery
Finance Minister Swarnim Wagle has called on the Asian Development Bank (ADB) to mobilize resources for Nepal’s disaster recovery, climate-resilient reconstruction and long-term economic development. Wagle made the request during a meeting with ADB President Masato Kanda in Bangkok, Thailand, on Thursday. He is visiting the Thai capital to attend the annual meetings of the World Bank and the International Monetary Fund (IMF). During the meeting, Wagle thanked the ADB for promptly approving an emergency grant to support rescue operations following the devastating floods. He also expressed appreciation for the bank’s solidarity with Nepal and sought continued assistance to rebuild affected areas and strengthen their resilience to future climate-related disasters. Kanda said supporting Nepal’s development remained a high priority for the ADB. Finance Secretary Ghanashyam Upadhyaya and Amrit Lamsal, a joint secretary at the Ministry of Finance, also attended the meeting as part of the Nepali delegation.
Taxpayers must submit purchase bills by October 17
The Inland Revenue Department has set October 17 as the deadline for consumers to submit purchase bill details under its taxpayer incentive programme. The department has urged consumers to obtain bills when purchasing goods and services and enter the required information on the programme’s official website to qualify for incentive coupons. According to the department, winners among purchases registered between October 2 and October 17 will be announced on October 18. Consumers who paid in cash can participate by entering their purchase bill details on the designated website before the deadline. The department has stressed that original purchase bills must be retained to claim any prizes. It has also instructed businesses to issue proper sales bills or invoices for all transactions.
Govt allocates Rs 6.54 billion to upgrade 109 community schools
The Ministry of Education and Sports has allocated Rs 6.54 billion to improve the physical infrastructure of 109 community schools across Nepal, each enrolling more than 2,000 students. Education and Sports Minister Sasmit Pokharel said on Thursday that Rs 5.34 billion had already been released in the first phase, covering 89 schools. The programme aims to construct modern three-storey buildings at an estimated cost of Rs 60 million per school. Each building will have 12 classrooms, laboratories and a well-equipped library. Madhesh Province received the largest allocation, with 33 schools selected for upgrades. Lumbini Province followed with 21 schools, while Koshi Province had 18. Gandaki and Sudurpashchim provinces were allocated six schools each, while Karnali Province received three and Bagmati Province two. The initiative is intended to strengthen school infrastructure and improve learning facilities for students in community schools nationwide.
Ministry invites proposals for green urea plant with 500,000-tonne capacity
The Ministry of Agriculture, Forestry and Environment has invited proposals from interested companies and investors for establishing a commercial green urea manufacturing plant in Nepal. According to the ministry, the government aims to develop a facility with an annual production capacity of approximately 500,000 metric tonnes, with the possibility of expanding production in the future to meet domestic demand. Eligible companies, joint ventures and international consortia have been asked to submit detailed proposals outlining their proposed technology, investment structure, operational plans, financial viability and strategies for managing technical risks. The submissions are expected to help the government assess the feasibility of the project and identify the support and concessions required for its implementation. Interested parties must submit their proposals in hard copy or by email by 5 pm on November 29. Application guidelines are available on the ministry’s official website.
Nepal Tourism Board reopens applications for World Travel Market London 2026
The Nepal Tourism Board has invited tourism companies to apply for participation in World Travel Market London 2026, scheduled for November 3–5. The participation fee has been set at Rs 275,000. According to the board’s notice, the online application portal will open at 10 am on Friday, October 16, 2026. Applications will be accepted on a first-come, first-served basis, provided all required documents are submitted. The deadline for applications is also October 16. Eligible companies must have been operating for at least three years and hold a valid UK visa. Applicants must register through the Nepal Tourism Board’s online portal and submit the required documents, including company registration certificates, VAT or PAN registration, tax clearance certificates for fiscal year 2024/25, and foreign currency exchange permits issued by Nepal Rastra Bank. Shortlisted applicants will be notified electronically about the payment process and deadlines.
Chobhar substation set to become operational after Dashain
The 132/11 kV Chobhar substation, which is expected to improve the reliability of electricity supply in the Kathmandu Valley, is nearing completion and is scheduled to become operational immediately after the Dashain festival. A team led by Nepal Electricity Authority (NEA) Executive Director Dirghayu Kumar Shrestha inspected the substation in Kirtipur Municipality-6 on Thursday and instructed officials to complete the remaining work promptly. The NEA said the facility would help meet the valley’s growing electricity demand, particularly during the upcoming winter season. The substation is equipped with two 45 MVA power transformers. One circuit of the Matatirtha–Chobhar section of the Thankot–Chapagaun–Bhaktapur 132 kV double-circuit transmission line has already been charged. Nine 11 kV feeder lines have also been installed to distribute electricity locally, including six serving Kirtipur and three supplying the Pulchowk area of Lalitpur.
Four more local units in Gulmi and Palpa approved for land banks
The Ministry of Land Management, Cooperatives and Poverty Alleviation has approved the establishment of land banks in four additional local government units in Gulmi and Palpa districts, bringing the total number of approved units to nine. The newly approved units are Satyawati, Madane and Dhurkot rural municipalities in Gulmi, and Ribdikot Rural Municipality in Palpa. The land bank initiative aims to bring barren and unused private land into agricultural production through systematic identification, documentation and management, while allowing existing landowners to retain ownership under contractual arrangements. The programme prioritizes landless people, smallholder farmers, Dalits, marginalized communities and economically disadvantaged households. The land will be made available for cultivating food grains, vegetables, cash crops and fruits, as well as for fish farming and livestock rearing. The ministry had previously approved land banks in five other local units: Vyasanagar, Pancheswar, Phikkal, Rupa and Badimalika. The initiative is expected to increase agricultural productivity, generate local employment and strengthen rural economies.
RERAS project boosts agricultural income and women’s entrepreneurship in Jumla
The Renewable Energy for Resilient Agri-Food Systems (RERAS) project has highlighted improvements in agricultural productivity and women’s entrepreneurship in Jumla on the occasion of the International Day of Rural Women, observed on October 15. The USD 12.54 million initiative is jointly funded by the Royal Norwegian Embassy, the Embassy of Finland and the United Nations Development Programme (UNDP). It supports rural livelihoods in a district where women account for approximately 80 percent of the agricultural workforce. In Patarasi Rural Municipality-4, farmer Channarupa Budha increased her apple production from five quintals to 12 quintals from 35 trees. Her annual income rose from Rs 150,000 to Rs 350,000. She also harvested six quintals of potatoes and supplied locally grown produce to six schools, earning Rs 200,000. The project has also helped women develop alternative sources of income. With technological support, Samjhana Budha now earns Rs 25,000 a month from tailoring, while Pabitra Koirala Neupane has increased her earnings from apples to Rs 270,000. The initiative aims to strengthen rural livelihoods by improving agricultural production, expanding access to appropriate technologies and creating economic opportunities for women.
Advertisement Board prioritises digital ad regulation and transparency
The Advertisement Board has prioritised regulating digital advertising, introducing a one-door system for government advertisements, ensuring the fair distribution of public welfare advertisements and reforming advertising-related laws to make the market more transparent, accountable and consumer-friendly. These priorities are outlined in the Board’s annual report, which Chairperson Santosh Shrestha presented to Minister for Information and Communications Dr Bikram Timilsina. The report sets out plans to strengthen the advertising sector, curb misleading advertisements, establish an Advertising Academy and fully digitise service delivery. It also highlights the implementation of the National Advertisement Policy, 2083, as a key priority.
Nepal records Rs 169 billion current account surplus in first two months of fiscal year
Nepal recorded a current account surplus of Rs 169.04 billion during the first two months of fiscal year 2026/27, up from Rs 130.97 billion in the same period of the previous fiscal year. According to Nepal Rastra Bank, the surplus increased in US dollar terms from USD 936.7 million to USD 1.11 billion during the review period. Net capital transfers amounted to Rs 1.53 billion, while foreign direct investment inflows, consisting entirely of equity investments, reached Rs 2.98 billion. The data covers the period from August 17 to September 16. The country’s overall balance of payments also remained in surplus, reaching Rs 187.68 billion, equivalent to USD 1.23 billion. This compares with a surplus of Rs 153.68 billion during the corresponding period of the previous fiscal year. The figures indicate a stronger external position during the first two months of the current fiscal year.
SEBON seeks feedback on draft policy to expand institutional investment
The Securities Board of Nepal (SEBON) has published the draft Institutional Investor Policy, 2026, inviting feedback and recommendations from stakeholders to encourage greater institutional participation in the country’s capital market. The proposed policy has been prepared in line with the Capital Market Development Roadmap 2026, the board’s annual policy directives and the 21-point capital market reform and revitalization action plan announced by the Ministry of Finance on September 14. It aims to establish clear, transparent and standardized procedures for institutional investors participating in both primary and secondary markets. The draft outlines provisions covering investor classification, portfolio diversification, investment instruments, concentration limits, corporate governance, risk management, market conduct, information disclosure and regulatory compliance. SEBON expects the policy to help deepen the capital market, improve liquidity and transparency, and strengthen long-term financial stability. It also seeks to broaden participation in a market traditionally dominated by individual retail investors.
233 landless families in Dhanusha receive ownership certificates after 11 years
A total of 233 landless families in Dhanouji Rural Municipality-3, Dhanusha, have received land ownership certificates nearly 11 years after the completion of a land survey in the area. The Survey Office in Dhanouji distributed the certificates to families from the former Jhojhi Kataiya Village Development Committee, covering wards 1 to 9, after completing the required legal and administrative procedures. Although the land survey was completed in fiscal year 2015/16, the families had been unable to obtain ownership documents for years because the necessary formalities remained unfinished. The distribution of the certificates has now formally established the families’ ownership rights over their land. With legal documentation in place, they will be better positioned to access financial services, including loans from banks and financial institutions using their land as collateral. The certificates are also expected to help reduce disputes over land ownership.
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