KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic picture presents a mixed and increasingly interconnected set of pressures. The sharp 36.25-point fall in the Nepal Stock Exchange (NEPSE), after a gain of more than 130 points the previous week, indicates that investor sentiment remains fragile despite recent government measures to revive the capital market. At the same time, gold and silver prices edged higher, suggesting continued demand for traditional stores of value amid uncertainty.
Fiscal pressures are also evident. Public debt has reached Rs 2.9 trillion, equivalent to 45.07 percent of GDP, exceeding the government’s 43 percent target. Currency depreciation is adding to external debt obligations, while weak revenue collection and mandatory spending are increasing borrowing pressures.
The financial sector faces additional vulnerabilities. Nepal Rastra Bank’s action against six microfinance institutions and the sector’s 9.78 percent non-performing loan ratio point to persistent credit-quality concerns. However, substantial loan-loss provisioning and efforts to recover cooperative deposits indicate attempts to contain financial risks.
External trade remains structurally imbalanced despite strong export growth, with the trade deficit widening to Rs 324.93 billion. Flood damage to hydropower infrastructure further compounds economic challenges, while the start of test production at Rahughat offers a positive development for future energy supply. Overall, Nepal’s economy is experiencing simultaneous financial, fiscal, trade, and climate-related pressures, making effective implementation of recovery and resilience measures increasingly important.
NEPSE falls 36 points as selling pressure returns
The Nepal Stock Exchange (NEPSE) dropped 36.25 points to close at 2,618.03 on Wednesday as widespread selling pressure pushed share prices lower. A total of 253 companies recorded declines, while 23 gained and two remained unchanged. Dhaulagiri Laghubitta was the only stock to reach a positive circuit, rising 15 percent, while First Microfinance posted the steepest decline, falling 8 percent. Shares of 352 companies changed hands, with 21.6 million shares traded through 57,947 transactions for a total turnover of Rs 6.35 billion. Shivam Cements recorded the highest turnover at Rs 330 million. The life insurance sub-group suffered the largest decline among sectoral indices, falling 2.4 percent. Nine sub-groups, including banking, declined by more than 1 percent. The market had gained more than 130 points over the previous week following the Ministry of Finance’s Capital Market Strengthening and Revival Action Plan announced on September 14. The plan included a decision to reduce the capital gains tax introduced through the budget.
Gold traded at Rs 302,300 and silver at Rs 4,815
Gold and silver prices increased slightly in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 100 per tola (11.66 grams) to Rs 302,300. Gold had traded at Rs 302,200 per tola on Tuesday. The price of silver also increased by Rs 40 per tola to Rs 4,815. Silver was traded at Rs 4,775 per tola on Tuesday.
Public debt reaches Rs 2.9 trillion
Nepal’s total outstanding public debt stood at Rs 2.9 trillion as of September 16, according to the Public Debt Management Office. The figure reflects a temporary reduction compared with the Rs 2.681 trillion recorded in mid-July, as government debt repayments of Rs 85 billion exceeded resource mobilization of Rs 61 billion over the preceding two months. Public debt currently accounts for 45.07 percent of gross domestic product, compared with the government’s target of 43 percent for the current fiscal year. External debt makes up 54.19 percent of total public debt, while domestic debt accounts for the remaining 45.81 percent. External debt liabilities have also increased due to the continued depreciation of the Nepalese rupee against major foreign currencies. Exchange rate fluctuations added Rs 436.3 million to the debt burden during the previous fiscal year. Financing pressures remain under the Rs 2.124 trillion national budget, amid mandatory expenditures, social security obligations, and weak revenue collection that have required additional borrowing.
NRB penalizes microfinance institutions
The Nepal Rastra Bank (NRB) Microfinance Institution Supervision Department has taken regulatory action against six Class D microfinance institutions and their executive officers for failing to comply with minimum capital adequacy and statutory liquidity requirements during the fourth quarter of fiscal year 2025/26, according to a public notice issued Wednesday. Microfinance Bittiya Sanstha, Dhaulagiri Microfinance Bittiya Sanstha, Matribhumi Microfinance Bittiya Sanstha, and NIC Asia Microfinance Bittiya Sanstha were subjected to prompt corrective action after failing to meet the prescribed minimum capital fund ratios at the end of the previous fiscal year. Meanwhile, Wean Nepal Microfinance Bittiya Sanstha and Sanjivani Microfinance Bittiya Sanstha were fined for failing to maintain the required cash reserve ratios.
Finance minister pledges transparent and productive investments for Citizen Investment Trust
Finance Minister Swarnim Wagle said in the House of Representatives on Wednesday that investments made by the Citizen Investment Trust (CIT) will be transparent and focused on generating returns. Responding to discussions on the Citizen Investment Trust (Third Amendment) Bill, 2026, Wagle said the trust’s funds should be mobilized safely to help bridge the gap between national income and expenditure while maintaining strict risk management. Lawmakers, including Sushil Khadka, Pukar Bam, and Ambika Devi Sangroula, discussed the need to update the fund, noting that the CIT currently manages savings worth Rs 337 billion. The parliamentary committee will continue clause-by-clause discussions on the bill after considering amendments proposed by lawmakers.
Bhote Koshi flash floods cause Rs 390.62 billion in energy sector damage
The flash floods in the Bhote Koshi and Trishuli rivers have caused preliminary damage estimated at Rs 390.62 billion to Nepal’s energy sector, according to Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha. Speaking in the House of Representatives, Shrestha said more than 800 people remained missing across several hydropower project sites. Those unaccounted for include 47 employees of the Nepal Electricity Authority and project workers. The floods also forced the shutdown of 11 power plants, resulting in the removal of 410 megawatts of electricity from the national grid. Meanwhile, ruling Rastriya Swatantra Party (RSP) lawmakers Madhu Kumar Chaulagain, Yagya Mani Neupane, and Ramesh Prasai called for structural reforms in the judiciary. In response, opposition Nepali Communist Party (NCP) lawmakers Balawati Sharma and Parbati BK called for the remarks to be expunged under Article 105 of the Constitution.
Rahughat hydropower project begins test production
The 40-megawatt Rahughat Hydropower Project has begun test production after completing the installation of its physical infrastructure and electrical equipment in Raghuganga Rural Municipality, Myagdi. According to project chief Raj Bahadur Bista, the project is being developed by Raghuganga Hydropower, a subsidiary of the government-owned Nepal Electricity Authority (NEA). Construction was undertaken under an engineering, procurement, and construction contract awarded to Indian civil contractor Jaypee Associates in 2017 at a cost of Rs 6 billion. The project was financed through concessional funding from the Export-Import Bank of India, along with investments from the Government of Nepal and the NEA. The project includes a 6.270-kilometer main tunnel and is expected to generate 240.5 million units of electricity annually.
Microfinance institutions set aside Rs 37 billion for loan loss provisions
Microfinance institutions have allocated Rs 37.19 billion for loan loss provisions as of July 16, 2026, equivalent to 6.96 percent of their total outstanding loans and 71.20 percent of total non-performing loans, according to Nepal Rastra Bank data. The sector’s total non-performing loans stood at 9.78 percent, while required loan loss provisions amounted to 5.79 percent of the aggregate loan portfolio. Under regulatory guidelines, microfinance institutions are required to maintain provisions of 25 percent, 50 percent, and 100 percent for substandard, doubtful, and bad loans, respectively. Separate provisioning requirements also apply to restructured and rescheduled loans.
Troubled Cooperative Management Committee refunds savings to 105 depositors
The Problematic Cooperative Management Committee has returned savings to 105 depositors of four troubled cooperatives using funds recovered through debt collection and asset management. According to the committee, refunds were made to 35 small depositors of Shiva Shikhar Cooperative, two depositors of Oriental Cooperative, 13 depositors of Tulsi Cooperative, and 55 depositors of Kantipur Cooperative. The government said the refunded funds were recovered through efforts to collect outstanding loans and manage the assets of troubled cooperatives. The committee said the first phase of the refund process prioritized depositors with relatively small savings balances. Subsequent refunds will be made in phases based on the classification of depositors according to the amount of their savings. The committee said the process would continue in accordance with prevailing laws and regulations, using funds generated through debt recovery and asset management.
Trade deficit reaches Rs 324.93 billion as imports and exports surge
Merchandise imports rose 31.58 percent to Rs 401.518 billion during the first two months of the current fiscal year, while exports increased 61.86 percent to Rs 76.587 billion, according to the Department of Customs. Despite the stronger growth in exports, the trade deficit widened 26.02 percent to Rs 324.931 billion during the period. The deficit had stood at Rs 257.837 billion during the corresponding period of the previous fiscal year. Imports during the first two months of the previous fiscal year amounted to Rs 305.155 billion, while exports totaled Rs 47.317 billion. Although exports grew at a faster rate, the increase was insufficient to reduce the trade gap because imports continued to account for a significantly larger share of total merchandise trade.
Customs revenue collection crosses Rs 100 billion in first months of FY 2026/27
The Department of Customs has collected Rs 102 billion in revenue as of September 22 against its annual target of Rs 628 billion for fiscal year 2026/27. The department now needs to collect an additional Rs 527 billion to meet the annual target. The collection has crossed Rs 100 billion despite disruptions at two major customs points. The Tatopani Customs Office has remained non-operational for some time, while the Rasuwa Customs Office was completely damaged and rendered inoperable by the Bhote Koshi floods. The Department of Customs said the revenue target achieved so far reflects continued efforts by the customs administration despite the challenging circumstances. The department has identified the collection of the remaining Rs 527 billion as its main priority for the rest of fiscal year 2026/27.
Flydubai begins regular flights on Dubai-Pokhara-Dubai route
Emirati airline Flydubai has begun regular flights on the Dubai-Pokhara-Dubai route from Pokhara International Airport, bringing renewed optimism to tourism entrepreneurs and businesspeople following the airport’s inauguration on January 1, 2023. Airport General Manager Jagannath Niraula said immigration, customs, and passenger facilities are fully prepared. The arriving aircraft is scheduled to land at 6:15 pm and depart for Dubai at 7:15 pm, with a water-cannon welcome planned for the service. Former Pokhara Tourism Council Chairperson Pom Narayan Shrestha said the new service would improve connectivity through Dubai, which provides access to more than 120 destinations. He also noted that the route would make travel easier for Nepali workers and students. The District Security Committee has also finalized security arrangements for the flights.
Mustang Customs Office collects Rs 2.5 billion in revenue
The Mustang Customs Office collected Rs 2.549 billion in revenue within 20 days after the Rasuwagadhi-Kerung trade route was completely shut down by devastating floods in the Bhote Koshi River in Rasuwa, according to office chief Bidur Chudal. Since August 26, the office has cleared 564 containers and 1,090 electric vehicles through the Korala border point. The Korala route through Lomanthang-4 Nhechung has become the only alternative transit route for imports from China after major northern trading points, including Rasuwagadhi and Tatopani, became non-operational. The office collected a total of Rs 3.07 billion in revenue between July 17 and September 16, exceeding collections recorded during previous periods of operation.
Nepalgunj Land Administration Office collects Rs 740 million in revenue
The Land Administration Office in Nepalgunj, Banke, collected Rs 740 million in revenue during fiscal year 2026/27 while operating from rented premises on Bidyut Road following a fire that destroyed its main office building and records during demonstrations on September 9, 2025. According to the office chief, total revenue collection amounted to Rs 748.6 million, including Rs 374 million in capital gains tax and Rs 369 million in registration fees and administrative service charges. The office also reconstructed land ownership records for 31,189 parcels that were affected by the fire.
Makwanpur bans night travel on Bhaise-Bhimfedi-Deurali-Kulekhani road section
The District Administration Office, Makwanpur, has prohibited vehicle movement at night along the Kanti Highway and the Bhaise-Bhimfedi-Deurali-Kulekhani road section amid increased risks of floods and landslides caused by heavy rainfall. Administrative Officer Santosh Subedi said the restrictions were imposed after the Department of Hydrology and Meteorology issued a special weather bulletin forecasting heavy to very heavy rainfall and strong winds from September 25 to September 27. Starting September 25, vehicles traveling toward Kathmandu from Chaughada along the Kanti Highway will be permitted to operate only between 5:00 am and 5:00 pm until further notice. On the Bhaise-Bhimfedi-Deurali-Kulekhani section, vehicles heading toward Kathmandu from Chaukitol in Hetauda and toward Hetauda from Humane in Fakhel and Ram Chandra Bhanjyang in Sisneri will also be permitted to operate only between 5:00 am and 5:00 pm. Vehicle movement along both routes will be completely suspended after 7:00 pm. The administration has urged travelers to use the roads only during the designated hours due to the risk of floods and landslides.
Japan provides $1 million grant for IOM flood relief in Rasuwa, Nuwakot, and Dhading
The Government of Japan has provided an emergency grant of USD 1 million to the International Organization for Migration (IOM) to strengthen government-led humanitarian assistance following the August 2026 flash floods and debris flows in Rasuwa, Nuwakot, and Dhading. Japanese Ambassador to Nepal Maeda Toru said the funding would help vulnerable households meet their immediate needs through shelter assistance and essential non-food items. IOM Chief of Mission in Nepal Helene Fors said the support would assist families who lost their homes and belongings. She added that IOM teams are coordinating with national and local authorities, establishing feedback mechanisms, and working with partners to ensure transparent delivery of assistance.
US envoy Bouldin highlights $36 million in aid for Nepal’s flood recovery
US Chargé d’Affaires Megan Bouldin met with Acting Prime Minister and Finance Minister Swarnim Wagle on Wednesday to discuss Nepal’s flood recovery and long-term reconstruction efforts. During the meeting, Bouldin reiterated the United States’ commitment to continuing efforts to locate missing American citizens and supporting Nepali communities affected by the disaster. According to the US Embassy in Nepal, the United States has provided more than USD 36 million in assistance to Nepal to date. The support includes new funding for permanent bridges, drinking water and sanitation facilities, shelter, livelihoods, winter assistance, and disaster-response equipment. Bouldin also thanked Minister Wagle for the government’s efforts to improve the business environment for US companies operating in Nepal. The two sides discussed ways to further strengthen conditions for American businesses in the country.
WWF provides Rs 15 million for Bhote Koshi flood rescue and relief
The World Wildlife Fund (WWF) Nepal has provided Rs 15 million to support rescue, relief, and rehabilitation efforts for people affected by the Bhote Koshi floods in Rasuwa. WWF Nepal Country Representative Dr. Ghanashyam Gurung handed over the assistance to Minister for Agriculture, Forests and Environment Gita Chaudhary. Gurung said WWF Nepal remains committed to its mission and noted that some flood-affected people remain out of contact because extensive damage to roads and communication networks has disrupted access. He said the assistance would support the government’s immediate efforts to restore access and reconnect affected communities.
Tourism Department urges caution amid forecast of heavy rain nationwide
The Department of Tourism has urged mountaineers, trekkers, and support staff to exercise caution as heavy rainfall is forecast across the country from September 25 to September 27, potentially affecting trekking and mountaineering activities. According to the Nepal Weather Bulletin, heavy rainfall accompanied by thunderstorms, lightning, and strong winds is expected nationwide from Friday through Sunday. The weather could trigger soil erosion, floods, and landslides, while snowfall is also forecast in the Himalayan region. The department has advised people already in mountainous areas and those planning to travel there during the autumn season to remain alert, plan their journeys according to weather forecasts, and avoid unnecessary travel during the period. Those who need to travel have been urged to exercise caution. The department has also asked health institutions in major trekking and mountaineering destinations, including Sama Gaun in Gorkha, the Khumbu region, and Manang, to ensure uninterrupted services.
Bodies of German climber and Nepali guide recovered from Mount Manaslu and flown to Kathmandu
The bodies of a German national and a Nepali guide who died at Camp III on Mount Manaslu in Chumnuwri Rural Municipality-1, Gorkha, have been recovered by helicopter and transported to Kathmandu. Official documentation related to the deaths was completed at around 8:00 pm on Tuesday. Following the formalities, the bodies were temporarily kept at the Ward No. 1 office in Sama Gaun under the protection of a three-member police team. According to the District Police Office, Gorkha, the rescue helicopter remained overnight at the Sama Gaun helipad because of adverse weather conditions that have recently disrupted climbing and rescue operations in the Manaslu region. After the remaining formalities were completed, the helicopter departed Sama Gaun at 6:52 am on Wednesday and flew both bodies to Tribhuvan University Teaching Hospital in Kathmandu for further procedures.
Egg prices rise again as XL and large grades get higher support prices
The Nepal Layers Poultry Farmers Association has increased the support prices for XL and large eggs, effective Wednesday. Under the revised rates, the support price for XL eggs has increased from Rs 600 to Rs 615 per crate, while the price of large eggs has risen from Rs 590 to Rs 600 per crate. The previous rates had been fixed on September 4. The association said the new prices were determined during a physical and virtual meeting of egg producers’ associations held in Kathmandu. Support prices for medium and small eggs, as well as retail consumer prices, remain unchanged. Medium eggs continue to cost Rs 550 per crate, while the support price for small eggs remains Rs 3,200 per carton. The retail price remains Rs 25 per egg and Rs 45 for two eggs.
Mid Solu Hydropower proposes dividend distribution
Mid Solu Hydropower Company has proposed a 15.789 percent dividend from its net profit for the previous fiscal year following a meeting of its board of directors on Monday. The proposed distribution is subject to approval from the Electricity Regulatory Commission and endorsement by the company’s upcoming annual general meeting. The proposal consists of a 15 percent bonus share dividend and a 0.789 percent cash dividend for tax purposes. The distribution will proceed after the required regulatory and shareholder approvals are obtained.
Kumari Bank calls annual general meeting
Kumari Bank has called its 26th Annual General Meeting for October 14 at Silver Oak Banquet and Events on Suvarna Shamsher Road in Kathmandu at 11:00 am. According to a bank notice, the meeting will consider dividend distribution and the financial statements for the previous fiscal year. The bank has proposed distributing a 2.0156 percent cash dividend, including applicable taxes, based on its current paid-up capital. The book closure date for the annual general meeting and dividend distribution has been set for October 5. Share transactions completed through October 2 on the stock market will qualify shareholders for participation and dividend benefits.
Salt Trading Corporation operates fair-price shops in Pokhara
The Gandaki Province office of Salt Trading Corporation began operating a fair-price shop at its Prithvi Chowk premises in Pokhara on September 2, offering essential daily commodities at subsidized prices through the end of the festive season in mid-November. According to office chief Sagar Sherchan, essential items such as sugar are being sold at Rs 100 per kilogram, compared with the prevailing market price of Rs 140. Each consumer can purchase up to six kilograms of sugar. Provincial distribution centers in Pokhara and Baglung also continue to supply subsidized food items annually to support households during major festivals, including Dashain, Tihar, and Chhath.
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