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 reflects a mix of cautious optimism, regulatory intervention and persistent structural challenges. The Nepal Stock Exchange (NEPSE) recorded a modest gain of 8.23 points, with turnover rising to Rs 4.88 billion and most listed companies posting gains. However, rising gold and silver prices indicate continued demand for precious metals amid potential economic uncertainty.
Nepal Rastra Bank’s planned Rs 24.83 billion term-deposit investment and temporary relaxation of digital wallet transaction limits demonstrate efforts to support financial-sector liquidity and facilitate festive-season spending. Meanwhile, discussions on capital market restructuring signal growing attention to governance, transparency and technological modernization.
Government measures also focus on economic stability and public welfare. Subsidized essential commodities, unchanged petroleum prices and the proposed housing assistance scheme aim to ease household financial pressures. The Cabinet’s decision to fix wheat’s minimum support price at Rs 4,107 per quintal could provide farmers with greater income predictability.
In infrastructure and energy, private-sector participation in cross-border electricity trading and the trial operation of the Khanikhola hydropower project represent opportunities for investment and energy development. However, the closure of 777 businesses in Rupandehi highlights continuing economic difficulties, despite new enterprise registrations.
Overall, Nepal’s economy demonstrates promising developments in financial services, energy and infrastructure, but sustained growth will depend on stronger business conditions, effective governance, consumer protection and resilient recovery policies.
NEPSE index gains 8.23 points as turnover reaches Rs 4.88 billion
The Nepal Stock Exchange (NEPSE) index rose by 8.23 points to close at 2,634.17 points on Friday, October 16, 2026, as daily turnover increased to Rs 4.88 billion from Rs 4.70 billion on Thursday. Share prices of 174 companies advanced, while 91 declined and 12 remained unchanged. Ghalemdi Hydropower, Nepal Investment Mega Bank and Green Ventures recorded the highest trading volumes. The banking sector led sectoral gains, rising 0.72 percent, followed by microfinance at 0.53 percent and hydropower at 0.52 percent. Chirakhwa Hydropower was the top gainer, climbing 14.82 percent, while Himalayan Everest Insurance recorded the steepest decline, falling 4.98 percent.
Gold rises Rs 1,700 per tola, silver gains Rs 115
Gold and silver prices increased in the domestic market on Friday, October 16, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 1,700 per tola to Rs 290,100, compared with Rs 288,400 on Thursday. Silver prices also increased by Rs 115 per tola, reaching Rs 4,150 from Rs 4,035 on the previous trading day. The latest gains pushed gold closer to the Rs 300,000-per-tola mark, while silver continued trading above Rs 4,000 per tola.
NRB to invest nearly Rs 25 billion in term deposits
The Nepal Rastra Bank (NRB) has invited commercial banks, development banks and finance companies to submit interest rate proposals for term deposits totaling Rs 24.83 billion. The central bank has allocated Rs 19.86 billion to Class A commercial banks, Rs 3.72 billion to Class B development banks and Rs 1.24 billion to Class C national-level finance companies. The deposits will be held for 366 days, from November 2, 2026, to November 2, 2027. Interested institutions must submit their proposed interest rates by October 27, 2026. To qualify, institutions must meet the prescribed minimum capital requirements, have been in operation for at least two years, maintain a non-performing loan (NPL) ratio below 8 percent and a net NPL ratio below 3 percent, and comply with the regulator’s minimum net liquid asset requirements.
NRB raises digital wallet transaction limits during festive season
Nepal Rastra Bank (NRB) has temporarily increased the daily transaction frequency limit for digital payment services, including eSewa and Khalti, to facilitate financial transactions and online shopping during the festive season. Under a circular issued by the central bank’s Payment Systems Department, users can make up to 50 deposit transactions per day, up from the previous limit of 10. The temporary arrangement will apply during two festive periods: October 17–25 for Dashain and November 7–15 for Tihar and Chhath. Digital payment service providers must submit detailed reports on transaction volumes and monetary turnover to the central bank after each authorized period.
SEBON and NEPSE discuss capital market reforms
Senior officials from the Securities Board of Nepal (SEBON) and the Nepal Stock Exchange (NEPSE) have held a consultative meeting to discuss implementing recommendations made by the NEPSE Restructuring Suggestion Committee in 2025. The discussions focused on institutional ownership, corporate governance, technological infrastructure and the diversification of secondary market services. SEBON Chairman Gopal Prasad Bhatta stressed the importance of modernizing capital structures, strengthening workforce capabilities and upgrading digital infrastructure to improve the stock exchange’s effectiveness. Narayan Prasad Risal, joint secretary at the Ministry of Finance and chairman of the NEPSE board, reaffirmed the institutions’ commitment to implementing immediate structural reforms. NEPSE Deputy Executive Director Ambika Ojha Gupta presented regulatory measures aimed at expanding investment instruments and improving transparency in the securities market.
Prime Minister’s Disaster Relief Fund receives Rs 17.943 billion
The Prime Minister’s Disaster Relief Fund has received Rs 17.943 billion, according to the Office of the Prime Minister and Council of Ministers. The office said that Rs 1 billion was transferred to the Disaster Management Fund under the National Disaster Risk Reduction and Management Authority following a decision by the Fund Operation Committee on September 1. The fund supports disaster relief and recovery efforts, while the transferred amount was allocated to the authority’s Disaster Management Fund. However, the briefing did not clarify whether the reported Rs 17.943 billion represents the fund’s remaining balance after the transfer or the cumulative amount deposited before the disbursement.
Vigilance Centre deploys teams to monitor festive markets
The National Vigilance Centre has deployed four teams to monitor markets and curb black marketing, unjustified price hikes and unfair trade practices during the festive season. The teams were deployed on October 15. Separately, the centre monitored 43 offices in Kathmandu Valley and Madhesh Province from October 7 to 15 to assess compliance with workplace rules. The monitoring identified 714 employees who had violated workplace requirements. Of them, 689 failed to maintain punctuality, while 25 did not wear the prescribed uniforms. The centre directed the concerned agencies to take action in accordance with existing regulations. However, the briefing did not specify any market violations identified by the newly deployed teams or disclose whether penalties had been imposed on businesses.
Govt registers Building (Second Amendment) Bill, 2026
The government has registered the Building (Second Amendment) Bill, 2026, in the House of Representatives, aiming to strengthen housing safety and protect citizens’ constitutional right to housing. According to the information provided, Prime Minister Balendra Shah announced that the Ministry of Infrastructure Development registered the bill on October 2. The proposed legislation follows severe flood damage reported on August 26 and October 11, which affected 7,570 private homes across Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan, with reported losses of Rs 63.884 billion. A further 72 houses were reported damaged in Gorkha. The bill proposes model house designs incorporating indigenous construction skills and safety assessments after 50 and 65 years. It also envisages federal grants of Rs 50,000 and provincial grants of Rs 25,000 for eligible low-income families, along with concessional loans for middle-income households constructing homes valued between Rs 2 million and Rs 7.5 million. The proposed loan advances range from Rs 500,000 to Rs 2.5 million, with monthly instalments of Rs 11,000 to Rs 35,000 over a 15-year repayment period.
Cabinet sets wheat support price at Rs 4,107 per quintal
The government has fixed the minimum support price of wheat at Rs 4,107 per quintal for fiscal year 2026/27 and approved emergency grant assistance worth 298 million Japanese yen from Japan and 20 million euros from Germany. The Council of Ministers made the decisions at its meeting on Friday. The assistance from Japan will be provided in the form of commodities and services. The Cabinet also approved temporary housing and livelihood assistance for families whose homes were damaged by floods and landslides in Gorkha, Dhading and Baglung districts. Eligible families with up to four members will receive Rs 15,000 per month for a maximum of six months, while families with more than four members will receive an additional Rs 2,000 per month for each additional member. Other decisions included in-principle approval to draft the Budhi Gandaki Development Authority Bill and the National Employment Bill, approval of several regulatory amendments, and endorsement of bills to amend the Animal Slaughterhouse and Meat Inspection Act and the Rights of Persons with Disabilities Act. The Cabinet also decided to bring three provisions of the Criminal Offences (Sentencing and Execution) Act, 2017, into effect from November 1, 2026.
Govt allows private sector to prepare for cross-border electricity trading
The Ministry of Energy, Water Resources and Irrigation has decided to issue letters of intent (LoIs) granting private companies in-principle approval to undertake preparatory work for cross-border electricity trading. Energy Minister Biraj Bhakta Shrestha made the decision on Friday, October 16. The move expands the private sector’s potential role beyond electricity generation to include assessing the feasibility of power trading and identifying prospective buyers and sellers in domestic and international markets. Companies receiving LoIs will be permitted to conduct technical, financial and commercial feasibility studies, identify potential trading partners, hold discussions and prepare draft power purchase and sale agreements in accordance with prevailing laws. However, the LoIs will not authorize immediate electricity transactions. Companies must complete the required licensing procedures, obtain necessary approvals, finalize power purchase agreements and secure transmission access before trading can begin.
NEA directs offices to ensure uninterrupted power supply during Dashain
The Nepal Electricity Authority (NEA) has directed its distribution centres and regional offices across the country to ensure an uninterrupted and reliable electricity supply throughout the Dashain festival. During a virtual coordination meeting on Friday, authority officials Dirghayu Kumar Shrestha and Rajan Dhakal instructed office heads to inspect transmission and distribution networks, identify potential weaknesses and address technical problems promptly. They also directed offices to strengthen emergency response arrangements, including customer service desks responsible for handling power outage complaints. The authority urged consumers to inspect household wiring, avoid substandard electrical appliances and use qualified technicians for repairs to reduce the risk of electrical accidents during the holidays.
Food department introduces mandatory product disclosure rules for confectionery businesses
The Department of Food Technology and Quality Control has directed confectionery shops, hotels and food storage facilities to display detailed information about their products from October 28. The directive requires businesses to prominently display product names, principal ingredients, the type of cooking oil or ghee used, expiry dates and retail prices per kilogram at display cases and customer counters. The measure is intended to improve food safety and help consumers make informed purchasing decisions. Businesses that fail to comply with the requirements by the deadline may face legal action under the Food Hygiene and Quality Act, 2024. They are also required to display the official food hygiene certification logo.
Salt Trading offers essential goods at subsidized prices
The Salt Trading Corporation is operating fair-price outlets in major urban centres to provide essential commodities at subsidized rates during the festive season. The outlets offer goods including pulses, edible oil, rice, sugar, salt and cooking gas. The government-authorized programme runs from September 17 to November 16. The corporation operates 13 dedicated sales counters across Kathmandu, Lalitpur, Bhaktapur, Banepa and Dhulikhel, alongside regional distribution centres elsewhere in the country. Under the scheme, sugar is available at Rs 100 per kilogram, compared with the prevailing market price of Rs 105, while iodized salt is being sold at Rs 24 per kilogram, down from Rs 26. Prices of other commodities, including pulses, rice, spices and tea, have also been reduced by Rs 5 to Rs 30, depending on the product. The corporation is also working to improve access to cooking gas through direct distribution.
Eighteen flood-damaged suspension bridges restored to operation
Eighteen suspension bridges along the Trishuli corridor that were damaged by the Bhote Koshi–Trishuli River floods have been repaired and reopened at a cost of approximately Rs 55 million. Shanker Budhathoki, planning chief secretary at the Suspension Bridge Division Office under the Department of Local Infrastructure Development, said all 18 bridges had been restored to operation. The repaired bridges connect communities across Nuwakot, Dhading, Gorkha and Chitwan districts. Major repair works were carried out on the Pimaltar Jagarama, Foresetar, Jiling, Keureni Gehate, Maheshdobhan Mastar, Sheetal Bazar Keurenitar and Kolpu Kallerighat bridges. Other restored structures include the Bihani Pump, Malekhu, Belkhu Bhutiya, Kurintar (Lewatar), Mahadevsthan and Fishling suspension footbridges. Their reopening has restored important transport links for residents and communities in the affected areas.
Chitwan National Park launches online ticketing system
Chitwan National Park has introduced an electronic ticketing system in Sauraha, allowing tourists to purchase entry tickets online and obtain QR codes for access to the park. The system was inaugurated on Thursday by Hari Dhakal, a member of the House of Representatives from Chitwan Constituency No. 1, and Senior Conservation Officer Dil Bahadur Purja Pun. The initial rollout covers the Sauraha entry area, which accounts for an estimated 70 to 75 percent of the park’s revenue and visitor traffic. Authorities plan to extend the service to other entry points depending on the results of the initial phase. Under the existing fee structure, Nepali visitors pay Rs 150 per person per day, visitors from SAARC countries pay Rs 1,000, and other foreign tourists pay Rs 2,000. Tourist jeeps entering the park are charged Rs 5,000. In the last fiscal year, 272,923 tourists visited Chitwan National Park and its intermediate community forest, generating approximately Rs 276.6 million in tourism revenue.
Fifty-seven landless families receive land ownership certificates
A total of 57 landless, Dalit and unmanaged settler families in Chitwan, Jhapa and Rupandehi districts have received land ownership certificates, enabling them to establish legal ownership of the land they occupy. In Chitwan, 32 landless squatter families and one landless Dalit family in Ward No. 7 of Ichchhakamana Rural Municipality received certificates. In Jhapa, seven unmanaged settler families in Ward No. 11 of Arjundhara Municipality were issued land ownership certificates. Similarly, in Rupandehi, 14 landless Dalit families and two landless squatter families in wards 8 and 9 of Gaidahawa Rural Municipality received the documents. Minister for Land Management Pratibha Rawal said the government would accelerate efforts to resolve land ownership issues affecting landless Dalits, landless settlers and unmanaged settlers. She added that no legal obstacles prevented the process from moving forward.
Rupandehi records closure of 777 businesses in fiscal year 2025/26
A total of 777 industrial and commercial enterprises were deregistered in Rupandehi district during fiscal year 2025/26, according to the Office of Cottage and Small Industries in Bhairahawa. The closures included 322 manufacturing industries and 455 commercial firms, reflecting continuing difficulties for local businesses. The trend continued into the current fiscal year, with another 208 enterprises deregistered in July and August 2026. These comprised 81 industries and 127 commercial firms. Meanwhile, 235 industries and 404 commercial enterprises were newly registered during the same two-month period. Business owners attributed the closures to declining sales, inadequate returns, unfavourable economic conditions and the relocation of businesses abroad. Despite the closures, the office collected Rs 26 million in registration revenue and launched 15 vocational training programmes aimed at promoting entrepreneurship and developing local skills.
Jumla farmers expand commercial production of indigenous crops
Farmers in Jumla are expanding commercial cultivation of indigenous crops with support from the Renewable Energy for Resilient Agri-Food Systems project, funded by Norway, Finland and the United Nations Development Programme (UNDP). In Syalbada, Chandannath Municipality-8, farmers have developed a three-hectare commercial block for chino, or proso millet. On September 23, 2026, farmer Rajkanya Rokaya harvested chino alongside red Marsi rice, another traditional crop that contributes to household income. Local cooperatives purchase the produce directly from farmers, with chino fetching Rs 150 per kilogram in the reported arrangement. In Tatopani Rural Municipality, the 149-member Dhauligad Agriculture Cooperative Ltd purchased chino and kaguno from farmer Batuli Sarki during fiscal year 2025/26 at Rs 90 per kilogram. The sales earned her Rs 6,300 and Rs 6,750, respectively. The cooperative has increased its purchase rate to Rs 100 per kilogram this year. The project is also supporting local food processing. In Khalanga, Abinash Budthapa, 29, manager of Black Stone Bakery, is using a project grant of Rs 495,000 towards the purchase of an electric oven costing Rs 1 million. The initiative aims to strengthen local food systems, improve farmers’ incomes and promote the commercial use of indigenous crops.
Khanikhola hydropower project begins trial generation in Dolakha
The 30-megawatt Khanikhola Hydropower Project in Dolakha district has begun trial electricity generation, transmitting power to the national grid. Located across wards 6 and 7 of Gaurishankar Rural Municipality, the run-of-river project began trial operations on October 4 after successfully completing mechanical vibration tests on its generating units. Commercial generation is scheduled to begin on October 19, following the completion of the required 15-day testing period. Construction had faced delays after flooding damaged the project’s headworks site on July 9, 2024. Once commercial operations begin, the project is expected to contribute 30 megawatts of electricity to the national grid, increasing the supply of renewable energy.
Nepal Oil Corporation keeps fuel prices unchanged
Nepal Oil Corporation (NOC) has decided to maintain existing retail prices for petroleum products despite fluctuations in international oil prices. The decision followed revised purchase prices received from the Indian Oil Corporation on Thursday, October 15. Petrol, diesel, kerosene, aviation turbine fuel and liquefied petroleum gas (LPG) will continue to be sold at their current rates. Under the existing pricing structure, petrol and diesel are priced at Rs 197.50 per litre, domestic aviation fuel at Rs 249 per litre and LPG at Rs 2,060 per cylinder. The state-owned corporation is expected to incur a fortnightly financial deficit of approximately Rs 3.458 billion by maintaining the current prices, according to the information provided. The decision is intended to shield consumers from immediate price increases amid fluctuations in the international petroleum market.
Telecommunications authority fines six internet service providers
The Nepal Telecommunications Authority (NTA) has fined six internet service providers Rs 50,000 each for offering broadband packages and tariff plans without regulatory approval. The action was taken under Section 47(1) of the Telecommunications Act, 1997, according to the authority’s notice. The companies penalized are Nepal Telecom, IZONE, Chitwan Unique Net, Sky Broadband, Sajilo Net and Connect Nepal Network. The authority has directed the providers to discontinue unauthorized packages immediately, compensate affected customers for any financial losses and obtain formal approval before introducing new tariffs or service packages. The action is intended to ensure compliance with licensing requirements and strengthen consumer protection in the telecommunications sector.
Five firms blacklisted over public procurement
Five firms and companies have been blacklisted following recommendations from public entities, according to the Public Procurement Monitoring Office. The office also monitored procurement activities at four public institutions: the Road Division Office in Damak, Birtamode Municipality Office, Infrastructure Development Office in Jhapa and Damak Municipality Office. The monitoring focused on compliance with public procurement rules and procedures. The announcement was made during a media briefing on Friday by Hemraj Aryal, spokesperson for the Office of the Prime Minister and Council of Ministers. However, the briefing did not identify the blacklisted firms, explain the grounds for their blacklisting or disclose specific findings from the procurement inspections.
Nepal Telecom offers fiber internet for Rs 4,999 annually
Nepal Telecom has introduced a new annual fiber internet package offering speeds of 30 Mbps for Rs 4,999. The government-owned telecommunications provider said the package is available under its Fiber to the Home (FTTH) service for NT Fiber users with Wi-Fi 6 equipment. According to Nepal Telecom spokesperson Dr. Kamal Lamichhane, the annual package costs Rs 11,499 for 100 Mbps and Rs 12,999 for 150 Mbps when internet and telephone services are subscribed to together. A 200 Mbps package is available for Rs 16,499 annually. Customers subscribing to the annual packages will also receive between 800 MB and 1,000 MB of mobile data per day at no additional charge. The company said customers would not have to pay the usual Rs 500 connection fee. The new offers took effect on October 16.
More than 348,000 passengers leave Kathmandu Valley for Dashain
More than 348,000 passengers left the Kathmandu Valley to celebrate Bada Dashain between Ghatasthapana on October 11 and the morning of October 16, according to the Kathmandu Valley Traffic Police Office. Deputy Superintendent of Police Rabindra Khanal said 348,314 people had left the valley during the period. Daily departures increased from 52,827 on October 11 to 85,561 on October 15 as people travelled to their hometowns to celebrate the festival with family members. Rajendra Acharya, treasurer of the Federation of Nepal Transport Entrepreneurs, said road disruptions had created difficulties for transport operators. Traffic along the Prithvi Highway was affected after a section at Galaudi in Dhading collapsed on October 9. Meanwhile, traffic police recorded 153,732 advance bus ticket bookings by October 15. Authorities have urged passengers to purchase tickets through authorized channels, pay the prescribed fares and check vehicle safety before travelling.
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