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 public affairs developments reflect a combination of market fluctuations, climate-related vulnerabilities, institutional reforms and efforts to improve public services. Rising gold and silver prices indicate continued movement in the domestic precious metals market, while 25 mutual fund schemes announcing dividends highlight varied returns across investment products.
Climate change and extreme weather remain significant concerns. Heavy rainfall caused Rs. 20.17 million in paddy losses, with Lumbini Province bearing the largest share of the damage. These losses underscore the vulnerability of agricultural production and the need for stronger disaster preparedness, climate-resilient farming and effective compensation mechanisms.
Meanwhile, the government is advancing plans to restructure the Nepal Electricity Authority into three entities focused on generation, transmission and trading. Successful implementation will depend on clear legal provisions, effective asset management and appropriate staff arrangements. Regional cooperation is also gaining momentum through a proposed Himalayan yak farmers’ network addressing climate change, declining livestock populations and livelihood challenges.
Public service initiatives demonstrate efforts to address practical needs. Free transportation services for bereaved migrant workers’ families and temporary bus services during Dashain provide social support, while Nepal Telecom’s discounted internet package seeks to improve broadband affordability. Women entrepreneurs in Palpa are also creating income opportunities through sustainable alternatives to plastic products.
Additionally, Birgunj Customs exceeded its monthly revenue target, and the Nepali Army restored connectivity through a Bailey bridge after flood damage. Overall, these developments highlight Nepal’s need to balance economic growth, institutional reform, environmental resilience and inclusive development.
Gold rises to Rs. 290,200 per tola, silver reaches Rs. 4,185
Gold and silver prices increased in Nepal’s domestic market on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold climbed by Rs. 500 per tola (approximately 11.66 grams), reaching Rs. 290,200 from Rs. 289,700 on Sunday. Silver prices also rose, gaining Rs. 85 per tola to reach Rs. 4,185, up from Rs. 4,100 on the previous day.
Heavy rainfall causes over Rs. 20 million in paddy losses
Heavy rainfall from September 24 to 27 damaged paddy crops across the country, resulting in estimated losses of Rs. 20.17 million, according to the Ministry of Agriculture, Forestry and Environment. The ministry reported that 229.33 hectares of paddy fields were affected, reducing production by approximately 438 metric tons. Paddy accounted for 57.17 percent of total agricultural losses recorded during the period. Lumbini Province suffered the heaviest damage, particularly in Banke and Dang districts. Crops covering 205.07 hectares were affected, resulting in a production loss of 359.80 metric tons and financial losses of Rs. 15.46 million. In Gandaki Province, Gorkha, Tanahun, Baglung and Syangja districts recorded damage to 16.78 hectares of paddy fields, with losses estimated at Rs. 4.39 million. Koshi Province reported losses of Rs. 320,000 across 2.14 hectares. Other crops were also affected. According to ministry data, maize accounted for 19.60 percent of crop losses, followed by vegetables at 10.40 percent, fruits at 7.85 percent, cardamom at 4.59 percent, millet at 0.26 percent and flowers at 0.13 percent.
Ministry prepares plan to split Nepal Electricity Authority into three entities
The Ministry of Energy, Water Resources and Irrigation is finalizing a roadmap to restructure the Nepal Electricity Authority (NEA) into three separate entities responsible for electricity generation, transmission and trading. The reform initiative is being developed under provisions in the current fiscal year’s budget. A ministry committee has advanced discussions on separating the authority’s commercial functions, drawing on international models. The government began exploring the restructuring process in 2014 by establishing subsidiary companies for generation, transmission and trading. However, energy experts have stressed the need for clear legal provisions, asset management arrangements and comprehensive staff adjustment plans before the separation is implemented.
Foreign Employment Board ensures round-the-clock body transportation during festivals
The Foreign Employment Board Secretariat has arranged 24-hour coordination services to provide free transportation of deceased Nepali migrant workers’ bodies from Tribhuvan International Airport to their home addresses throughout the Dashain, Tihar and Chhath holidays. The service will operate under Rule 28(A) of the Foreign Employment Regulations, 2007. The board has designated official spokespersons and authorized logistics providers, including Seti Ganesh Suppliers, RD Transport Service and Buddhadhwaj Transport Service, to ensure uninterrupted arrangements during the festive period. Families requiring assistance can call the board’s toll-free hotline at 1141 or contact the designated administrative personnel for support.
APF operates free bus service in Kathmandu Valley for three days
The Armed Police Force (APF) has introduced a free bus service in the Kathmandu Valley for three consecutive days during the Dashain festival to help passengers travel when fewer public vehicles are operating. APF spokesperson Netra Bahadur Karki said the service would run daily from 8 am to 6 pm, starting Monday. Two buses have been deployed for the initiative. The route begins at APF headquarters and passes through Balaju, New Bus Park, Koteshwor, Satdobato and Balkhu.
Himalayan yak farmers’ network to connect Nepal, Bhutan and India
A regional network representing yak and chauri farmers in Nepal, Bhutan and India will be launched during Bhutan’s ninth Royal Highland Festival to address common challenges facing mountain livestock communities. The International Centre for Integrated Mountain Development (ICIMOD) said the Himalayan Yak Farmers’ Network would be the first regional platform dedicated exclusively to yak-herding communities. Based in Bhutan, the network will promote knowledge sharing, joint advocacy, capacity building and cross-border cooperation. Yak herders across the three countries face declining livestock populations, shrinking pastures, climate change, loss of genetic diversity, wildlife-related livestock damage and limited market access. The migration of young people has also threatened traditional herding practices. The initiative follows the establishment of national yak farmers’ federations in Bhutan in 2022, Nepal in 2023 and India in 2025. According to available figures, Nepal had 53,195 yaks, nak and chauri in fiscal year 2021/22, while Bhutan recorded 29,432 yaks in 2024. India counted approximately 58,000 yaks in 2019.
Birgunj Customs exceeds monthly revenue target with Rs. 26.73 billion collection
The Birgunj Customs Office collected Rs. 26.725 billion in revenue between September 17 and October 17, exceeding its target of Rs. 26.46 billion for the period. The collection represented 101 percent of the target. Officials attributed the performance to increased imports driven by demand during the Dashain, Tihar and Chhath festivals, along with improvements in customs clearance procedures. For the current fiscal year, the government has set a national revenue collection target of Rs. 628 billion. Birgunj Customs has been assigned an annual target of Rs. 294 billion, equivalent to 46.82 percent of the national goal.
Nepal Telecom sees increased demand for discounted FTTH internet packages
Nepal Telecom has reported a rise in customer inquiries through its 198 hotline about discounted Fiber to the Home (FTTH) internet packages. To manage the growing demand for new broadband connections, the telecommunications provider has introduced an online registration system through which customers can request installations and submit service-related feedback. The company recently launched a budget-friendly internet package priced at Rs. 4,999, offering download speeds of 30 megabits per second. The package is intended to provide an affordable broadband option for households comparing prices, speeds and service quality among internet providers.
Women entrepreneurs in Tansen turn sal leaves into a source of income
Seven women entrepreneurs in Tansen Municipality-2, Palpa, have established a business producing environmentally friendly plates and bowls from sal leaves, creating local employment and additional household income. The enterprise began with an investment of Rs. 400,000 and now produces around 1,000 items daily, generating monthly revenue of Rs. 25,000 to Rs. 30,000. The entrepreneurs said machine-made products are more durable than traditionally stitched alternatives and offer a substitute for plastic tableware used at festivals and banquets. Prices range from Rs. 2 for small leaf bowls to Rs. 7 for four-cornered plates. Wholesale rates are Rs. 190 per 100 bowls and Rs. 6 per plate. Demand has expanded beyond local markets into neighbouring districts, although seasonal difficulties in collecting leaves during the monsoon remain a challenge.
Twenty-five mutual fund schemes announce dividends for fiscal year 2025/26
A total of 25 mutual fund schemes have completed their financial audits for fiscal year 2025/26 and announced cash dividends for their unit holders. Himalayan 80-20 declared the highest dividend at 15 percent, while Nabil Balanced Fund-3 announced the lowest at 2.5 percent. Global IME Balanced Fund-1, Prabhu Select Fund and Prabhu Smart Fund each declared dividends of 12 percent. Other schemes announced payouts ranging from 2.2 percent to 10 percent, reflecting varying performances across the domestic capital market during the fiscal year.
Bandipur Cable Car suspends services for two days during Dashain
Bandipur Cable Car has announced a two-day suspension of services during the Dashain festival. According to a notice issued by the company, all services, including cable car operations, will remain closed on October 21 and 22. On October 20, services will operate only from 5 am to 2 pm. The decision was confirmed in a notice issued by the company’s chief executive officer. Normal operations are scheduled to resume on October 23. The company has apologized to passengers, tourists and the general public for any inconvenience caused by the temporary closure.
Army installs Bailey bridge over Budhigandaki in two days
The Nepali Army (NA) has completed the installation of a Bailey bridge over the Budhigandaki River at Aarughat, connecting Dhading and Gorkha districts, in just two days. According to the NA Directorate of Public Relations and Information, the bridge was handed over to the Gorkha Road Project on Monday following the completion of installation work. The concrete bridge over the river was damaged by flooding on October 11, when a section on the Gorkha side was washed away. The army’s swift completion of the Bailey bridge installation has been appreciated by local residents. Measuring approximately 27.43 metres in length and 4.2 metres in width, the new bridge is expected to ease transportation for residents of areas surrounding Dhading and Gorkha. The Nepali Army said the bridge would also facilitate the transportation of essential relief supplies and other emergency materials to flood-affected areas.
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