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 administrative developments reflect a mixed picture of market volatility, regulatory intervention, infrastructure disruption and efforts to strengthen institutional systems. The Nepal Stock Exchange fell 21.19 points to 2,612.42 despite Rs 5.389 billion in turnover, indicating broad-based selling pressure as 225 companies declined. In contrast, gold and silver prices rose, with gold reaching Rs 301,800 per tola and silver Rs 4,685, highlighting continued demand for precious metals.
Nepal Rastra Bank’s decision to collect Rs 60 billion through a 30-day deposit instrument signals efforts to absorb excess banking-system liquidity. Proposed amendments to the NRB Act also seek changes in central-bank governance, tenure arrangements and supervisory authority.
Flood-related disruptions remain a major concern. The government has introduced electricity concessions for Bhote Koshi flood victims, while landslides continue to affect road connectivity. The Krishnabhir alternative track has facilitated fuel and freight movement, but the wider transport network remains vulnerable.
Meanwhile, the e-GP disruption has affected thousands of government contracts, prompting authorities to permit postal tender submissions. Regulatory measures are also expanding in cooperatives and consumer markets, while initiatives on tourism performance, land ownership and TVET reform indicate broader institutional modernization. Overall, the developments show simultaneous economic adjustment, disaster recovery and administrative reform.
NEPSE falls 21.19 points as turnover reaches Rs 5.389 billion
The Nepal Stock Exchange (NEPSE) index declined 21.19 points on Wednesday to close at 2,612.42 points, with all sub-indices recording losses. The Sensitive Index, which tracks large-cap companies, fell 3.77 points to 463.68, while the Float Index dropped 1.50 points to 179.63. The Sensitive Float Index also declined 1.32 points to 156.58. A total of 15,101,555 shares were traded in 5.389 billion rupees through the day’s transactions. Share prices of 42 companies increased, while 225 declined and 12 remained unchanged. Narayani Development Bank, Himal Dolakha Hydropower, and Mount Everest Power Development were among the gainers. NMB Hybrid Fund, Ridge Line Energy, and Nepal Warehousing Company were among those recording losses.
Gold rises to Rs 301,800 while silver reaches Rs 4,685
Gold and silver prices increased in the domestic market today, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold rose by Rs 1,700 per tola (11.66 grams) to Rs 301,800. Gold was traded at Rs 301,000 per tola on Tuesday. Similarly, the price of silver increased by Rs 85 per tola to Rs 4,685. Silver had traded at Rs 4,600 per tola on the previous day.
NRB invites bids for Rs 60 billion deposit collection
Nepal Rastra Bank (NRB) has invited bids for a 30-day deposit collection instrument worth Rs 60 billion to manage excess liquidity in the banking system. Eligible commercial banks, development banks, and finance companies must submit their bids online through the central bank’s electronic bidding system by the specified afternoon deadline. Successful bids will be selected starting with the lowest proposed interest rate. The principal and accrued interest will be repaid on October 16. The funds collected through the instrument cannot be used for regular investment purposes but will qualify toward the statutory liquidity ratio requirements of participating institutions.
Govt. announces electricity concessions for Bhote Koshi flood victims
The government has decided to provide electricity-related relief to households, businesses, and industries affected by the Bhote Koshi floods in Rasuwa, Nuwakot, and Dhading. A meeting of the Nepal Electricity Authority (NEA) Board of Directors decided to waive minimum electricity charges for affected customers from August 17. Electricity meters at damaged properties will be deregistered, while customers applying for new connections will receive replacement meters free of charge. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said the measures were introduced to provide immediate financial relief to flood victims. The NEA management has also been instructed to study additional tariff concessions and submit a proposal within a week as electricity services are restored in 15 local units.
Finance Committee unanimously approves NRB Act amendment report
The Parliamentary Finance Committee has unanimously approved a report on proposed amendments to the Nepal Rastra Bank Act, 2002, aimed at strengthening central bank governance and regulatory oversight. The proposed changes would reduce the terms of the governor, deputy governors, and board directors from five years to three years, with the possibility of a single reappointment. The amendments also introduce mandatory cooling-off periods for former chief executive officers and bar individuals holding more than 0.5 percent of a bank or financial institution from serving on its board. The report also proposes mandatory female representation among independent directors and expanded supervisory authority for the central bank.
NNRFC submits annual revenue distribution report to president
The National Natural Resources and Fiscal Commission (NNRFC) has submitted its annual report to President Ram Chandra Paudel, stating that the federal government distributed Rs 71.122 million in revenue allocations to provincial and local governments during fiscal year 2025/26. The allocations were made from more than Rs 474 billion collected through value-added tax and excise duties and distributed based on demographic, geographic, and development-related indicators. The report also identified widespread non-compliance among provincial governments regarding timely vehicle tax collection and the mandatory transfer of local revenue.
More than 8,500 government contracts affected by e-GP disruption
The disruption of Nepal’s electronic government procurement (e-GP) system has affected a large number of government contracts, with more than 8,500 capital expenditure-related contracts normally processed through the system each year. Shivahari Ghimire, general secretary of the Federation of Contractors’ Associations of Nepal, said the disruption occurred during the peak period for contract awards. He said some government agencies were waiting for the electronic system to resume instead of immediately reverting to paper-based procedures. According to Ghimire, returning to manual procurement after the system had largely become paperless has created additional financial and logistical challenges for contractors. He also warned that physical tender submissions could bring back incidents of intimidation and obstruction at bidding venues that had been reported under the traditional system.
Tourism Ministry signs annual performance agreement for current FY
The Ministry of Culture, Tourism and Civil Aviation has signed an Annual Performance Agreement for fiscal year 2026/27 to strengthen the implementation of its policies, programs, and budget while making its performance more results-oriented and accountable. Minister for Culture, Tourism and Civil Aviation Khadga Raj Paudel ‘Ganesh’ and Ministry Secretary Mukunda Prasad Niraula signed the agreement on Tuesday. It outlines specific targets and expected outcomes and seeks to ensure their timely implementation and improve service delivery. Heads of divisions and departments under the ministry, along with executive heads of various affiliated agencies, also signed their respective annual performance agreements with Secretary Niraula. The ministry said the agreements are expected to improve coordination, accountability, and results-oriented performance while supporting the effective implementation of policies, programs, and targets.
Department intensifies market inspections amid black-market complaints
The Department of Commerce, Supplies and Consumer Protection has intensified market monitoring following complaints of artificial shortages and excessive pricing. Inspection teams conducted monitoring in markets across the Kathmandu Valley on Wednesday, focusing on traders accused of selling sugar at prices above permitted profit margins. Department officials said retail sugar prices have in some cases exceeded Rs 160 per kilogram without valid purchase invoices. The department is coordinating with the Salt Trading Corporation to stabilize supplies and has warned that traders engaging in unfair practices will face action under consumer protection laws.
Nepal Swiss Chamber honors Renold for advancing TVET reform
The Nepal Swiss Chamber of Commerce has honored Prof. Ursula Renold for her contribution to technical and vocational education and training (TVET) reform in Nepal and for promoting cooperation among educational institutions, government bodies, and the private sector. The chamber said Renold worked closely with Nepali organizations and institutions, including the Confederation of Nepalese Industries, the Federation of Nepalese Chambers of Commerce and Industry, the Ministry of Education, and the Council for Technical Education and Vocational Training. Her initiatives included leading model iLabs, launching the MTVET program at Kathmandu University, and promoting cooperation among different levels of government to enhance Nepal’s international profile in skills development.
Eastern markets face severe shortage of butter and ghee
Dairy markets in eastern Nepal are facing a shortage of pure butter and ghee amid increased demand ahead of major festivals. Retail prices have risen by as much as Rs 200 per kilogram, reaching Rs 950 to Rs 1,000. Industry representatives attributed the shortage to declining milk production among local farmers, increased domestic consumption, and restrictions on vegetable oil imports through the border. They said processing facilities, including Kamdhenu Dairy Cooperative and the Dairy Development Corporation, have reduced powdered milk and butter production after their cold-storage stocks were depleted.
Road Division Office to award new contract for abandoned bridge at Ghumawang Ghat
The Road Division Office, Damauli, has allocated Rs 15 million in the current fiscal year to initiate a new procurement process and conduct an engineering assessment for the stalled bridge project at Ghumawang Ghat along the Narayanghat-Mugling road corridor. The previous contract with Mrrit Sanjivani Construction Service of Makwanpur was terminated on April 12, 2026, after the original structural design was found inadequate to withstand river water levels. The incomplete bridge is intended to connect Bharatpur Metropolitan City-29 with Tanahun.
Govt assures smooth sugar supply across Valley markets at Rs 110 per kilogram
The Department of Commerce, Supplies and Consumer Protection has said sugar is being distributed across the Kathmandu Valley at Rs 110 per kilogram and that there is no shortage of the commodity. The department made the statement following a high-level meeting chaired by Minister for Industry, Commerce and Supplies Deepak Kumar Shah on October 1. Department spokesperson Anil Kiranti said sugar is readily available at more than 1,000 retail outlets, including Bhatbhateni, Big Mart, and Salesberry. The department has urged consumers not to engage in panic buying or unnecessary stockpiling amid recent transport disruptions caused by flood damage to major highways.
Landslide blocks road to Manang near Khotro Khola
A landslide near Khotro Khola along the Besisahar-Manang road has temporarily disrupted vehicular movement, according to the Trekking Agencies’ Association of Nepal (TAAN). TAAN said it contacted the Assistant Chief District Officer of Manang for an update on the situation. The district administration said efforts were already underway to clear the landslide debris from the road. According to TAAN, the road is expected to reopen within about one and a half hours. The association has urged travelers to plan their journeys accordingly and advised trekkers, tourists, and other visitors not to panic or cancel their trips solely because of the temporary obstruction. TAAN issued the route update on September 16 through its secretariat in Kathmandu. The photograph accompanying the update was sourced from social media.
Land ownership certificates distributed to 10 landless families in Tanahun
The District Land Problem Resolution Committee, Tanahun, has distributed land ownership certificates to 10 landless settlers and landless Dalit families in Ward No. 1 of Devghat Rural Municipality. The recipients had been living on land that was not legally registered in their names. With the distribution of the certificates, they have now secured legal ownership of the respective plots they have been occupying. The government has prioritized resolving land-related problems faced by landless Dalits, landless settlers, and unmanaged dwellers by providing secure and legally recognized ownership. The distribution is part of broader efforts to address landlessness and integrate eligible families into the formal land ownership system.
Police clear Krishnabhir alternative track for fuel and freight vehicles
Police have facilitated the movement of four LPG bullets, 25 trucks carrying packed cylinders, and 40 petroleum tankers through the temporary alternative track at Krishnabhir along the Prithvi Highway. The measure comes amid fuel shortages in the Kathmandu Valley following major landslides that blocked the highway on August 30. Chitwan District Police Office Chief Rameshwar Paudel said the commercial vehicles successfully crossed the difficult section under police escort. Meanwhile, the Department of Roads is preparing to resume regular two-way traffic along the damaged highway corridor from Thursday.
Govt allows postal submission of tender documents after e-GP shutdown
The government has permitted public agencies to receive and submit tender documents through postal services following the suspension of the electronic government procurement (e-GP) system over security concerns. A secretary-level meeting of the Public Procurement Monitoring Office (PPMO) held on Tuesday approved the alternative arrangement. Previously, bidders were required to collect and submit hard-copy tender documents in person at the concerned offices. Although the Public Procurement Regulations provide for submitting and receiving documents by post, the provision had not been implemented in practice. Construction companies had been calling for the postal facility. The government has been cancelling tenders issued through the e-GP system and switching to paper-based procedures for tenders, expressions of interest, and sealed quotations.
CIAA officials contribute more than Rs 6.1 million for Bhote Koshi flood victims
Officials and employees of the Commission for the Investigation of Abuse of Authority (CIAA) have contributed more than Rs 6.1 million to support victims of the Bhote Koshi floods. The floods that struck Rasuwa and surrounding areas on Wednesday, August 26, caused significant physical and economic damage. According to a CIAA press release, the contribution was raised through salary deductions equivalent to between two and 15 days of pay, depending on employees’ ranks. The collected amount has been deposited into the Prime Minister Disaster Relief Fund.
Kamana Sewa Development Bank approves 15.7% cash dividend
Kamana Sewa Development Bank has approved a 15.7 percent cash dividend, including applicable taxes, for its general shareholders for fiscal year 2025/26. The bank approved the dividend at its 20th annual general meeting held today. It also approved a nine percent dividend for preference shareholders for the same fiscal period. The meeting endorsed the independent auditor’s report, annual financial statements, balance sheet, and cash flow statement. Shareholders also appointed an external auditor for the upcoming fiscal year.
Cooperatives restricted to maximum 13% lending rate under new directives
The Office of the Registrar of Cooperatives has introduced new directives capping the maximum interest rate on cooperative loans at 13 percent from September 17. Issued under the Cooperative Act, 2017, and Cooperative Regulations, 2018, the directives limit the difference between interest rates on member loans and savings to no more than six percentage points. The new rules also prohibit capitalization of compound interest, restrict penalties on overdue interest to a maximum of five percent, and bar cooperatives from charging additional administrative or service fees. Cooperatives must also disclose loan pricing transparently and deposit approved loan amounts directly into individual members’ accounts.
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