KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest developments point to a mixed economic environment in Nepal, with financial markets showing moderate strength while structural and external risks remain significant. The NEPSE index rose 0.44 percent to 2,629.81 points, supported by broad-based gains and Rs 5.447 billion in turnover. Regulatory initiatives such as SEBON’s proposed intraday trading framework could further influence market liquidity and trading activity, while NRB’s Rs 20 billion deposit collection instrument indicates continued efforts to manage excess liquidity.
The broader economy, however, faces competing pressures. Smartphone and electric vehicle imports remained substantial, generating significant customs revenue and reflecting strong consumer demand, but India’s reduction of edible oil tariffs could weaken one of Nepal’s major export industries. Similarly, potential increases in internet tariffs could raise costs for households and businesses.
Infrastructure and climate-related risks remain another major concern. Highway restrictions following rainfall forecasts, recent Bhote Koshi flooding, and calls for greater disaster-risk integration in banking highlight the economic costs of natural hazards. Government efforts to strengthen disaster early-warning systems and fuel infrastructure indicate attempts to improve resilience.
Meanwhile, monetary and administrative measures—including new banknotes, fertilizer procurement, and relief reserves—show continued public-sector intervention. Overall, the developments suggest an economy balancing market activity and expanding imports with liquidity-management challenges, trade vulnerabilities, infrastructure constraints, and growing climate-related risks.
NEPSE gains 11.77 points as turnover reaches Rs 5.4 billion
The Nepal Stock Exchange (NEPSE) index climbed 11.77 points, or 0.44 percent, to close at 2,629.81 points on Thursday compared with Wednesday’s session. Among the traded companies, 176 posted gains, 95 declined and seven remained unchanged. All subgroups except non-life insurance recorded gains. The non-life insurance subgroup dropped 32.19 points, while manufacturing and processing advanced 195.29 points, life insurance rose 83.68 points, trading gained 31.50 points and microfinance increased 28.07 points. The market recorded 51,716 transactions, with shares worth Rs 5.447 billion traded. A total of 17,270,449 shares changed hands. Nepal Lube Oil registered the largest gain at 12.47 percent, followed by Sonapur Minerals and Oil at 7.65 percent, Kumari Sabal Yojna at 7.56 percent, Ghorahi Cement Industries at 7.07 percent and CYC Nepal Laghubitta Bittiya Sanstha at 6.47 percent. In terms of turnover, Shivam Cements topped the list with Rs 358.1 million, followed by Himalayan Distillery with Rs 351.6 million, Sanima Middle Tamor Hydropower with Rs 243.5 million, Reliance Spinning Mills with Rs 221.4 million and Sonapur Minerals and Oil with Rs 183.6 million.
Gold falls to Rs 299,100 per tola; silver drops to Rs 4,650
Gold and silver prices declined in the Nepali market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 3,200 per tola, equivalent to 11.66 grams, to Rs 299,100 per tola. Gold had traded at Rs 302,300 per tola on Wednesday. Silver also declined by Rs 165 per tola, falling to Rs 4,650. The precious metal was priced at Rs 4,815 per tola in the previous session.
NRB puts new Rs 1,000 banknotes from the 2025 series into circulation
Nepal Rastra Bank (NRB) has put its newly designed 2025-series Rs 1,000 banknote into public circulation from today, September 24. The note features a light green color scheme with a purple border and carries serial numbers beginning with 92000001. The obverse features Mount Everest along with a detailed Rhododendron watermark, while the reverse depicts twin elephant calves, Ram and Laxman, born to Devakali at the state elephant breeding center in Chitwan. The note bears the signature of Governor Prof. Biswo Nath Poudel and carries 2025 as the official series year.
NRB issues Rs 20 billion deposit collection instrument
Nepal Rastra Bank (NRB) has issued a Rs 20 billion deposit collection instrument through a competitive open market bidding process, with a fixed 32-day maturity period. Interested commercial banks and licensed financial institutions were required to submit their bids through the digital Online Bidding System Software by 3:00 PM today. Final settlement and fund transfers are scheduled for October 26 as part of the central bank’s ongoing monetary policy operations to manage excess liquidity in the domestic banking system.
SEBON outlines intraday trading framework and bans unlawful practices
The Securities Board of Nepal (SEBON) has released a conceptual framework proposing the phased introduction of intraday trading in the domestic stock market, initially through a buy-first, sell-later model. The framework is intended to modernize secondary market operations, improve liquidity and bring Nepal’s regulatory practices closer to international standards. The proposed system emphasizes strong risk management, real-time technological monitoring and enhanced investor protection. SEBON plans to develop the framework in coordination with the Nepal Stock Exchange (NEPSE), CDS and Clearing, and the Stock Brokers Association of Nepal before expanding it to include covered short-selling infrastructure.
Nighttime highway restrictions expected to disrupt transport and business
Restrictions on nighttime vehicle movement along several major highways, introduced amid forecasts of heavy rainfall from September 25 to 27, are expected to affect transportation, trade and other economic activities. Nepal Police has imposed the restrictions on several routes to reduce the risks associated with weather-related incidents. On the Prithvi Highway, vehicle movement will be prohibited from 8 PM to 5 AM. The measure is expected to affect the movement of passengers and goods along the major route connecting Kathmandu with key commercial centers. On the Siddhicharan Highway, nighttime movement of vehicles and pedestrians, except for essential services, has been prohibited from 6 PM to 6 AM through September 28. Traffic will also be restricted on the Kanti Highway and the Bhaisephedi-Bhimphedi-Deurali-Kulekhani-Kathmandu route from 7 PM, while the BP Highway will remain closed from 5 PM to 5 AM and the Narayanghat-Muglin road section from 8 PM to 5 AM.
Smartphone imports reach Rs 9.74 billion in first two months
Nepal imported 425,040 smartphones worth Rs 9.743 billion from 48 countries during the first two months of the current fiscal year through September 16. The imports generated Rs 1.817 billion in government revenue, according to trade data from the Department of Customs. China accounted for the largest share, with 365,545 units valued at Rs 7.099 billion, while India supplied 57,441 units worth Rs 2.419 billion. The import trend has been attributed to growing domestic demand associated with increasing foreign employment departures, international education enrollment and the rapid expansion of digital financial transactions.
Supreme Court ruling could drive internet tariffs higher
Internet service providers have warned that fixed broadband subscription prices could rise by at least 50 percent following a Supreme Court joint bench ruling issued on September 6 (Ashwin 6). The ruling, delivered by Justices Abdul Aziz Musalman and Nripa Dhwoj Niroula, dismissed writ petitions challenging earlier tax assessments by the Large Taxpayers Office. The ruling determined that telecommunication service charges should also apply to maintenance and support fees that had previously been excluded from standard billing calculations. Internet operators say the resulting retrospective tax and penalty liabilities could substantially increase their costs, which they expect would ultimately affect residential and commercial subscribers across the country.
Relief reserves surpass Rs 15.5 billion after Bhote Koshi floods
The combined balances held in designated accounts of the Prime Minister’s Disaster Relief Fund and the general Prime Minister’s Relief Fund have exceeded Rs 15.532 billion. The amount includes Rs 11.638 billion deposited in nine commercial banks and USD 25.447 million held in designated foreign-currency accounts at Himalayan Bank and Laxmi Sunrise Bank. A further Rs 207.2 million was added to the funds over the past 24 hours. The government had previously released Rs 1 billion for emergency relief and immediate humanitarian assistance to communities affected by flooding along the Bhote Koshi River in Rasuwa, according to the Office of the Prime Minister and Council of Ministers in Kathmandu.
Electric vehicle imports total Rs 7.3 billion in first two months
Nepal imported 6,648 electric vehicles worth Rs 7.307 billion during the first two months of the current fiscal year, generating Rs 4.502 billion in customs revenue, according to official statistics from the Department of Customs. China accounted for the majority of imports, supplying 4,769 vehicles valued at Rs 4.613 billion. Additional vehicles were imported from India, Thailand and the United States. The imports took place despite significant transportation disruptions and highway blockages caused by floods along the Bhote Koshi River in Rasuwa on August 26.
Government uses scientific tools to manage fuel supply
Minister for Industry, Commerce, and Supplies Deepak Kumar Sah told the National Assembly that the government is using scientific management tools, including Fishbone Diagrams and Critical Path Methodologies, to analyze and address vulnerabilities and pricing pressures in the domestic petroleum supply chain. He said retail prices of essential food commodities have already fallen by 10 percent following discussions with commercial distributors. The government is also prioritizing long-term infrastructure projects, including petroleum pipelines linking Amlekhgunj with Chitwan and Siliguri with Charali, with the aim of reducing the country’s dependence on imports.
Parliament registers 167 amendment proposals on child labor bill
Lawmakers have registered 167 amendment proposals under 20 separate legislative groups concerning the Child Labor Prohibition and Regulation Bill, 2026. The proposals follow general discussions held in the House of Representatives on August 19 regarding provisions that would allow minors aged 13 and above to perform light work while maintaining a legal ban on employing children below 15 in general industrial sectors. The bill will now proceed to clause-by-clause deliberations before potential enactment by both chambers of the federal Parliament.
Agriculture Inputs Company invites bids for urea imports
The Agriculture Inputs Company has issued an international competitive bidding notice to procure 30,000 metric tons of Urea 46-0-0 fertilizer. Qualified international suppliers from eligible countries have been asked to submit their technical and financial proposals at the company’s central office in Kuleshwar by 1:00 PM on October 26, 2026. A pre-bid meeting is scheduled for October 15. The fertilizer is intended for timely seasonal distribution through regional warehouses in Biratnagar, Birgunj and Bhairahawa, with shipments to be routed through Kolkata or Haldia ports on a delivered-duty-paid basis.
Himalaya Airlines resumes direct Kathmandu-Shanghai flights
Himalaya Airlines is set to resume regular direct flights between Tribhuvan International Airport in Kathmandu and Shanghai Pudong International Airport from next Monday. The airline will initially operate two flights per week, departing Kathmandu on Mondays and Fridays and returning from Shanghai on Tuesdays and Saturdays. According to Vice President Bijay Shrestha, the airline will operate the service using its fleet of three Airbus A320-214 aircraft and one Airbus A319-115 aircraft. The resumed connection is expected to support tourism, bilateral trade and people-to-people links between Nepal and China.
India-based HELPaid donates supercomputer to Nepal for disaster early warnings
India-based humanitarian organization HELPaid has provided Nepal with a supercomputer to assist with satellite-image analysis and improve early warning systems for floods, heavy rainfall and other natural disasters. Officials from the National Disaster Risk Reduction and Management Authority (NDRRMA) received the equipment under an assistance program launched following recent disasters in Nepal. HELPaid said the computer will analyze satellite imagery and other data to identify potential risks and provide authorities with information for early response and evacuation efforts. The funds for the equipment were raised by Catherine Educational Institutions. Students, teachers and support staff contributed INR 140,000, while the institution’s management contributed another INR 160,000, bringing the total to INR 300,000. The funds were provided to HELPaid, which arranged the purchase and donation of the equipment. The organization said it would consult government agencies and local communities to assess additional needs before determining whether further assistance is required.
CBFIN points to weak demand and rising disaster risks in banking
Acting President Rajesh Upadhyaya of the Confederation of Banks and Financial Institutions, Nepal (CBFIN) said domestic credit growth remains subdued despite low interest rates, citing weaker consumer demand and continuing policy uncertainty. Speaking at a high-level interaction program, he also called for climate change and natural disaster risks to be incorporated into commercial banks’ investment decisions, particularly following the severe flooding along the Bhote Koshi River in Rasuwa. Upadhyaya also stressed the need for legal and regulatory reforms and a shift toward modern, performance-based management practices to support economic growth.
Sanima Middle Tamor Hydropower proposes 5.26 percent dividend
Sanima Middle Tamor Hydropower Company has proposed a 5.263 percent cash dividend following approval by its board of directors on September 23. The company has also scheduled its annual general meeting for October 16. The share register will close on October 5. Shareholders must therefore maintain their holdings through October 2 to qualify to participate in the annual general meeting and receive the proposed dividend.
India’s edible oil tariff reduction puts pressure on Nepal’s export industry
India’s decision to sharply reduce import duties on edible oils is expected to create challenges for Nepal’s edible oil industry, which depends heavily on exports to the Indian market. Nepali producers import crude soybean, palm and sunflower oils from third countries, refine them domestically and export the finished products to India under zero-tariff provisions of the SAFTA agreement. India’s reduction of duties on crude oils to between zero and 5 percent allows Indian producers to import raw materials directly at lower costs, potentially reducing the competitiveness of Nepali products. Industries operating in the Morang-Sunsari, Parsa and Rupandehi corridors could be affected, with possible implications for employment. During the first two months of the current fiscal year, soybean oil was Nepal’s largest export product at Rs 36.04 billion, followed by sunflower oil at Rs 2.08 billion and palm oil at Rs 1.93 billion.
CBFIN and NBI to hold national youth entrepreneurship conference
The Confederation of Banks and Financial Institutions, Nepal (CBFIN) and the Nepal Business Institute (NBI) signed a memorandum of understanding on Monday to jointly organize the Nepal Youth Entrepreneurship Conference 2026 in Kathmandu on October 9. The conference will focus on artificial intelligence, youth entrepreneurship and future employment opportunities. Around 400 young entrepreneurs, senior government officials and industry representatives are expected to participate. The organizers aim to promote financial literacy, expand digital banking adoption and encourage investment in productive and sustainable sectors.
Sita Air aircraft loses wheel during landing in Dolpa
All 13 people aboard a Sita Air aircraft were safe after its rear-right wheel detached during landing at Juphal Airport in Dolpa at 8:25 AM today. The passengers and crew included seven foreign nationals and six Nepali citizens, comprising 11 males and two females. According to the District Police Office, Dolpa, the aircraft had arrived from Nepalgunj on a scheduled flight. Aviation authorities and technical teams have begun inspecting the aircraft and runway to assess safety conditions and determine the cause of the incident.
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