KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The overall picture from these developments is one of moderate market optimism alongside significant economic and institutional pressures. Nepal’s stock market showed resilience, with the NEPSE Index gaining 7.06 points and turnover reaching Rs 7.05 billion. However, the nearly balanced number of advancing and declining stocks suggests that the rise was not broad-based. At the same time, gold and silver prices declined, indicating some movement in domestic commodity markets.
Regulatory tightening is another prominent theme. SEBON’s proposed IPO requirements for hydropower and infrastructure companies indicate an effort to strengthen financial discipline, technical due diligence, project oversight, and investor protection. Similar emphasis on institutional standards is visible in the National Cooperative Regulatory Authority’s new fit-and-proper criteria.
The Bhote Koshi floods remain a major economic and humanitarian concern. Relief funds have exceeded Rs 15 billion, while more than 166 hectares of land have been identified for displaced families. Yet the tourism sector alone faces preliminary losses of Rs 52.67 billion, highlighting the wider economic consequences of the disaster.
Meanwhile, infrastructure and connectivity projects continue to advance, including the Sarlahi transmission line and new Nepal Telecom sites. Tourism is attempting to recover through promotional measures in Pokhara, although adverse weather has disrupted Manaslu expeditions.
Overall, the developments point to financial-market resilience, stronger regulatory oversight, substantial disaster-related losses, and continued investment in infrastructure and economic recovery.
NEPSE Rises 7 Points as Turnover Reaches Rs 7.05 Billion
The Nepal Stock Exchange (NEPSE) Index climbed 7.06 points to close at 2,654.28 points on Tuesday, the final trading day of the week. The market recorded a turnover of Rs 7.053 billion, with 21,589,761 shares changing hands during the session. Share prices of 137 companies rose, while 131 declined and 11 remained unchanged. Mid Solu Hydropower posted the highest gain, advancing 14.99 percent, while Snow Rivers recorded the steepest decline at 8.23 percent. Among sectoral subgroups, the Others subgroup gained 1.36 percent, while the remaining subgroups recorded mixed movements, with none fluctuating by more than 1 percent. Hathway Investment Nepal recorded the highest turnover, followed by Himalayan Distillery and Ghalemdi Hydro.
Gold Falls to Rs 302,200 per Tola, Silver to Rs 4,775
Gold and silver prices declined in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 1,700 per tola (11.66 grams) to Rs 302,200. Gold had traded at Rs 303,900 per tola on Monday. Silver prices also decreased, falling Rs 30 per tola to Rs 4,775. The precious metal was priced at Rs 4,805 per tola on Monday.
SEBON Proposes Stricter IPO Requirements for Hydropower and Infrastructure Firms
The Securities Board of Nepal (SEBON) has drafted the General Qualifications for Public Issuance Guidelines, 2026, proposing stricter technical, financial, and operational requirements for hydropower and infrastructure companies planning to issue initial public offerings (IPOs). Under the proposed rules, hydropower companies would be required to maintain a net worth per share at least equal to the share’s par value. They would also need to obtain independent technical inspection reports and due diligence certificates from independent engineers before issuing shares. In addition, companies would be required to establish project monitoring committees under their boards. The draft guidelines prohibit companies from using IPO proceeds for administrative expenses and require separate bank accounts for mobilized capital. Projects affected by operational disruptions, negative auditor continuity remarks, or promoter blacklisting would also be barred from issuing IPOs.
Relief Funds for Bhote Koshi Flood Victims Surpass Rs 15 Billion
Financial contributions for victims of the Bhote Koshi River floods in Rasuwa continue to accumulate, with the combined balance in the Prime Minister’s Disaster Relief Fund and Prime Minister’s Relief Fund exceeding Rs 15 billion. According to the Office of the Prime Minister and Council of Ministers, nine commercial bank accounts under the Prime Minister’s Disaster Relief Fund hold Rs 11.27 billion. Dollar-denominated accounts at Himalayan Bank and Laxmi Sunrise Bank contain USD 24.80 million. The combined balance across all accounts stands at Rs 15.06 billion. The government has already released Rs 1 billion from the funds to support areas affected by the floods.
Wagle Assigned Acting Prime Minister Duties During Shah’s US Visit
Finance Minister Swarnim Wagle has been assigned the duties of Acting Prime Minister during Prime Minister Balendra (Balen) Shah’s visit to the United States to attend the 81st United Nations General Assembly. Prime Minister Shah recommended Wagle for the responsibility during his absence, and President Ram Chandra Paudel approved the recommendation. Shah is scheduled to leave for New York at 7:00 p.m. Tuesday. He is scheduled to address the UN General Assembly on September 24 and return to Nepal on September 26.
Committee Identifies 277 Land Plots for Bhote Koshi Flood-Displaced Families
A central committee formed by the Ministry of Land Management, Cooperatives and Poverty Alleviation and the Ministry of Federal Affairs and General Administration has identified 277 land plots covering more than 166 hectares for the resettlement of families displaced by the Bhote Koshi River floods in Rasuwa, Nuwakot, and Dhading. The identified plots include 177 in Rasuwa, 94 in Nuwakot, and six in Dhading. The land comprises government, public, and forest areas. The committee, led by Department of Survey Director General Prakash Joshi, was formed following a ministerial decision on September 7, 2026. It has recommended incorporating basic infrastructure, including roads, drinking water, and electricity, into an integrated settlement plan.
House Finance Committee Meeting Postponed
The meeting of the Finance Committee under the House of Representatives of the Federal Parliament, scheduled for 10:00 a.m. Tuesday at the committee hall in Singha Durbar, has been postponed due to special circumstances. The committee secretariat issued a notice confirming the postponement. The meeting was scheduled to hold theoretical discussions on the Bill to Amend and Repeal Some Nepal Acts Relating to Finance, discuss amendment proposals registered by lawmakers, and consider other agenda items.
National Cooperative Regulatory Authority Sets Fit-and-Proper Criteria
The National Cooperative Regulatory Authority has introduced mandatory academic and professional qualification requirements for directors, office bearers, and chief executive officers of cooperative institutions. Under the new framework, cooperatives with total assets or liabilities of up to Rs 50 million must have chairpersons, secretaries, and treasurers with at least a Grade 10 education and one year of committee experience. Cooperatives with assets or liabilities exceeding Rs 50 million must require Grade 12 education and two years of experience for these positions. Similarly, managers and chief executives of institutions with assets of up to Rs 250 million must hold at least a Plus Two qualification in management, commerce, or finance. Institutions with assets exceeding Rs 250 million must have managers and chief executives with bachelor’s degrees and at least two years of experience in the financial sector. The guidelines also require applicants to submit self-declarations, police clearance certificates, and credit information records through the authority’s digital portal during annual renewal.
Sudurpashchim Ministries Begin Budget Preparation Following Guidelines
Thematic ministries and government offices in Sudurpashchim Province have begun preparing their budgets, policies, and projects following the distribution of budget formulation guidelines by the Ministry of Economic Affairs. Chief Minister Khagaraj Bhatta said the provincial budget would be presented to the Provincial Assembly during the final week of September 2026, with arrangements being made to ensure government employees receive their salaries before the Dashain festival. Addressing a parliamentary party meeting of the Nepali Communist Party, Bhatta also discussed 17 demands raised by nine dissatisfied lawmakers. The discussions included allocations for directly elected and proportional representatives from an internal revenue pool of Rs 13.13 billion. The province has been facing a budget deficit for two months, affecting administrative operations and the supply of medicines.
Parliament Canteen Closed After Lawmakers Raise Questions Over Food Prices
The temporary canteen operating in the new Parliament building was closed on Tuesday, a day after a lawmaker questioned the prices of food and beverages being sold there. During Monday’s House of Representatives meeting, Rastriya Swatantra Party lawmaker Khagendra Sunar raised concerns over the canteen’s pricing, citing Rs 100 for black tea, Rs 200 for milk tea, Rs 300 for momo, Rs 400 for chow mein, and Rs 500 for bread. Sunar questioned the basis for the prices and criticized the operation of what he described as a “five-star hotel” on the balcony of the Parliament building. He also called for the facility to be removed. The temporary canteen was subsequently closed after the issue was raised in Parliament. However, the canteen inside Singha Durbar remains operational.
Tanahun Forest Office Records Rs 172.3 Million in Economic Activity
The Division Forest Office, Tanahun recorded economic activity worth Rs 172.3 million during fiscal year 2082/83 through forest product utilization and community forestry programs. The office manages 122 community forests and generated direct employment for 87,849 people through activities including forest management, thinning, fire control, and afforestation. Afforestation was carried out across 18 hectares during the year. The office also established a three-hectare Rudraksha pocket area and eight model community forests aimed at promoting sustainable resource use and increasing local income opportunities.
Lawmakers Call for Narrowing Gap Between Investment Approvals and Project Implementation
Lawmakers have called for measures to bridge the gap between investment approvals and actual project implementation, saying the discrepancy is hindering national development objectives. Speaking at a meeting of the National Assembly Committee on Development, Economic Affairs and Good Governance in Singha Durbar on Tuesday, Nepali Communist Party lawmaker Ghanashyam Rijal said investment approvals worth approximately Rs 4 billion by the Investment Board Nepal had yet to translate into actual implementation. Rijal attributed the delay partly to practices involving speculative licensing and trading and said the country requires around Rs 1.5 trillion in investment annually. Srijana Devkota said investors had become more cautious following recent socio-political developments and the Bhote Koshi floods. Committee Chairman and Nepali Congress lawmaker Krishna Prasad Paudel said industrial challenges continued to affect investor confidence despite the country’s established political framework.
Tourism Sector Suffers Rs 52.67 Billion in Losses from Floods
Flooding along the Bhote Koshi and Trishuli rivers has caused preliminary economic losses of Rs 52.674 billion to Nepal’s tourism sector, according to a report submitted to the Ministry of Culture, Tourism and Civil Aviation. The assessment was conducted by a Nepal Tourism Board Rapid Response Team led by Executive Committee member Sahadev Dhamala. The report estimates damage to hotel infrastructure at Rs 19.564 billion, losses in foreign tourism earnings at Rs 14.602 billion, and workforce-related losses at Rs 12.268 billion. The floods also affected heritage sites, transportation services, restaurants, rafting destinations, and trekking routes in Rasuwa, Nuwakot, Dhading, and Gorkha. The disaster has affected 1,117 domestic and international citizens, according to the preliminary assessment.
Bad Weather Forces Manaslu Climbers to End Expeditions Early
Persistent rainfall and heavy snowfall have forced climbers attempting Mount Manaslu to shorten their expeditions and descend from the mountain’s base camps. According to Karma Chewang Lama, chairman of Chumnubri Rural Municipality-1 in Samagaon, continuous precipitation over the past two weeks has deposited up to three feet of snow at base camp and seven to eight feet at higher camps. Around 10 percent of the approximately 500 climbers who received permits have already left the area, Lama said. Local tourism entrepreneurs described the weather conditions as unusual compared with previous years, disrupting this year’s climbing season. Last year, the government collected Rs 224.8 million in royalties from 493 climbers—366 men and 127 women—from 67 countries.
Finance Ministry Denies Consensus on Reversing Electricity VAT Exemption
The secretariat of Finance Minister Swarnim Wagle has denied reports that an agreement was reached to withdraw the Value Added Tax (VAT) exemption on electricity tariffs. In a statement issued Friday, the secretariat described reports linking Wagle to discussions on the issue over the weekend as baseless, saying no such meetings took place. The ministry said measures concerning VAT provisions on electricity and possible relief for consumers are still being reviewed through the relevant agencies. It added that the minister has previously clarified the government’s position on the matter before both the House of Representatives and the National Assembly.
Sarlahi’s 132 kV Double-Circuit Transmission Line and Substation Begin Operations
The Lalbandi-Salempur 132 kV double-circuit transmission line and a newly constructed 132-33-11 kV substation in Chainpur, Sarlahi, have come into operation. The transmission line connects the Nawalpur Substation in Lalbandi Municipality-1 with Chainpur in Chakraghatta Rural Municipality-7. The substation is equipped with two 132-33 kV, 30 MVA power transformers and one 33-11 kV, 24 MVA transformer, giving it a combined capacity of 84 MVA. It also has five 33 kV feeders and six 11 kV feeders. The infrastructure is expected to improve electricity supply in Malangawa, Haripur, Haripurwa, Dumariya, and Barahathwa while reducing technical losses and voltage fluctuations. The project was financed by the government and Nepal Electricity Authority (NEA) under a contract worth Rs 1.125 billion signed in 2023.
Nepal Telecom Adds 2G and 4G Sites in 11 Districts
Nepal Telecom has brought new 2G and 4G mobile sites into operation at 13 locations across 11 districts during August to expand coverage and improve service quality. According to company spokesperson Kamal Lamichhane, new sites were established in Lalitpur Metropolitan City-3 and Chaundanda in Bagmati Province. In Gandaki Province, new infrastructure was installed in Mohanpur of Chitwan, Pokharidanda of Nawalpur, and Madhyanepal of Lamjung. Similarly, sites were added in Dharmapani of Kapilvastu, as well as Rampur and Hongsi in Palpa, under Lumbini Province. In Karnali Province, Nepal Telecom added towers in Kanakasundari of Jumla and along the Surkhet-Jumla road. In Sudurpashchim Province, new sites were established in Badimalika of Bajura, Gankhet of Dadeldhura, and Rithachaupata of Darchula.
Ayurveda Council Orders Action Against Unregistered Medicines and Misleading Ads
The Ayurveda Medical Council Nepal has directed concerned parties to stop selling unregistered medicines and publishing misleading advertisements related to the treatment of various diseases. The council expressed concern over advertisements claiming guaranteed cures for serious conditions such as cancer and piles, including offers promising customers their money back if treatments fail. It has instructed those operating without the required regulatory approval to stop such activities within 15 days. Failure to comply will result in legal action, the council said.
Siddhartha Bank Sets AGM for October 14, Proposes 20 Percent Dividend
Siddhartha Bank has scheduled its annual general meeting (AGM) for Wednesday, October 14, at the Army Officers’ Club in Bhadrakali, Kathmandu. The AGM will consider a proposal to distribute 10 percent bonus shares and a 10 percent cash dividend, including tax. It will also consider an 8.25 percent cash dividend for non-cumulative preference shareholders. Other agenda items include amendments to the bank’s memorandum and articles of association and the appointment of external auditors. The bank has set October 2 as the book closure date, meaning shareholders registered by October 1 will be eligible to participate in the AGM and receive the proposed dividend.
NADA Coordinates Relief for Flood-Affected Automobile Businesses
The NADA Automobiles Association of Nepal (NADA) has begun coordinating with government agencies and other stakeholders to support automobile businesses affected by floods and inundation in various parts of the country. NADA said imported vehicles, warehouses, offices, and equipment located near customs points have suffered significant damage. The association has asked member companies to submit details of damaged or missing assets, insurance coverage, and outstanding loan obligations. NADA President Surendra Kumar Upreti said the association plans to form a coordination committee to assist businesses with insurance claims, customs-related procedures, and debt restructuring through financial institutions.
Prabhu Bank Launches Home Loan Scheme for Nepalis Abroad
Prabhu Bank Limited has introduced the Prabhu Diaspora Prosperity Home Loan Scheme 2026/27 for non-resident Nepalis and Nepali citizens working abroad who wish to purchase or construct residential property. The scheme provides loans of up to Rs 30 million with repayment periods of up to 25 years. It carries a service charge of 0.50 percent and an interest rate of the base rate plus 0.50 percentage points per year and is available through the bank’s 300 branches. The scheme also offers educational loans for up to two children at the base rate plus 1 percentage point, a 50 percent discount on administrative charges, and a one-year waiver of debit card and mobile banking fees.
Mid Solu Hydropower Proposes 15.789 Percent Dividend
The Board of Directors of Mid Solu Hydropower Company has proposed distributing a 15.789 percent dividend from the company’s earnings for the previous fiscal year. The proposed dividend consists of a 15 percent bonus share and a 0.789 percent cash dividend to cover tax liabilities. The proposal is subject to approval from the Electricity Regulatory Commission and subsequent endorsement at the company’s upcoming annual general meeting.
Pokhara Hotels and Restaurants Offer Discounts to Flydubai Passengers
Hotels and restaurants in Pokhara have announced promotional discounts for travelers arriving on Flydubai’s direct Dubai-Pokhara-Dubai flights. Hotel Association Pokhara President Laxman Subedi said around 50 tourist-standard and star-rated hotels have agreed to provide a 25 percent discount to Flydubai passengers during the first three months of the service. Hotels will also provide complimentary accommodation and breakfast to passengers arriving on the inaugural flight scheduled for Wednesday evening. Similarly, the Restaurant and Bar Association Nepal (REBAN), Pokhara, has announced discounts of 15 to 20 percent for passengers who present their boarding passes. Tourism organizations in the region are also working on an integrated digital platform to provide information on available discounts.
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