KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s recent economic and development developments reflect progress in energy exports, climate resilience, financial inclusion and tourism recovery, alongside challenges in market regulation and infrastructure management. Electricity exports generated Rs 5.925 billion in one month, while the resumption of 40 MW exports to Bangladesh and approval for additional export capacity highlight Nepal’s growing potential as a regional energy supplier. However, sustaining this growth requires reliable hydropower infrastructure and stronger cross-border cooperation.
The government’s planned $49.9 million investment in flood forecasting and glacial lake risk reduction signals greater recognition of climate-related threats. Automated weather stations, improved forecasting and early warning systems could reduce disaster losses, provided the plans receive adequate funding and are implemented effectively. Similarly, reopening trekking routes and constructing a Bailey bridge demonstrate efforts to restore connectivity and support disaster-affected communities.
Economic indicators reveal mixed trends. Nepal’s $45.59 billion GDP places it 103rd globally, while vehicle registrations have more than doubled over the past decade, reflecting expanding mobility but raising concerns about congestion and environmental sustainability. Agricultural insurance subsidies offer farmers greater protection, although dairy producers continue to face pressure from rising costs and low farmgate prices.
Financial market reforms, including NEPSE’s proposed tradable-share index, could improve market transparency. Increased NPL prize money also reflects growing investment in domestic sports. Meanwhile, falling gold and chicken prices illustrate changing market conditions.
Overall, Nepal’s progress depends on translating economic opportunities and policy initiatives into resilient infrastructure, fairer markets, sustainable growth and tangible benefits for citizens.
Electricity exports to India earn Rs 5.925 billion as Bangladesh supply resumes
The Nepal Electricity Authority (NEA) earned Rs 5.925 billion from electricity exports to India during a month-long period from August 17 to September 17 in fiscal year 2026/27. Exports of 40 megawatts to Bangladesh also resumed on Friday evening through India’s transmission network. According to the NEA’s Load Dispatch Center, Nepal exported more than 633.9 million units of electricity to India during the period. Export earnings increased by Rs 962 million compared with the corresponding month last year and by Rs 832.5 million compared with Bhadra of the current fiscal year. Total electricity export revenue for the first three months reached Rs 16.151 billion. Electricity was supplied to the Indian states of Haryana and Bihar under bilateral agreements, while the remaining surplus was sold through the Indian Energy Exchange. Exports to Bangladesh had been suspended after flooding damaged the Trishuli and Chilime hydropower plants. The supply resumed after India’s Central Electricity Authority approved electricity from the Solu, Kabeli-1 and Lower Modi hydropower projects as alternative sources. The NEA and the Bangladesh Power Development Board signed a five-year agreement on October 3, 2024, for daily exports of 40 megawatts from June 15 to November 15 each year. India has also approved an additional 31 megawatts of export capacity, taking Nepal’s total approved capacity to approximately 1,179 megawatts.
Gold falls to Rs 278,500 per tola, while silver drops to Rs 3,955
Gold prices fell by Rs 11,700 per tola when the domestic market reopened after the Dashain holidays on Sunday, October 25, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold was priced at Rs 278,500 per tola, compared with Rs 290,100 recorded on October 11 before the holiday closure. Silver prices also declined, dropping by Rs 195 per tola to Rs 3,955 from the previous rate of Rs 4,150. One tola is equivalent to approximately 11.66 grams.
Nepal ranks 103rd globally with a GDP of $45.59 billion
Nepal ranks 103rd among the world’s economies, with a gross domestic product (GDP) of $45.59 billion, according to the International Monetary Fund’s (IMF) October 2026 World Economic Outlook. The IMF projects the global economy to surpass $128 trillion by the end of 2026, with the United States and China accounting for more than 42 percent of global GDP. The United States leads the ranking with a GDP of $32.64 trillion, followed by China at $21.55 trillion. Germany, Japan and the United Kingdom occupy the third, fourth and fifth positions, respectively, while India ranks sixth with $4.06 trillion. The report highlights artificial intelligence investment as a driver of US economic growth, while high-tech manufacturing and exports remain important to China’s economy. However, China continues to face challenges from its property-sector downturn and sluggish retail sales.
Govt plans $49.9 million investment in flood forecasting and glacial lake risk reduction
The government plans to invest $49.9 million between 2026 and 2033 to strengthen hydrological and meteorological services, expand flood early warning systems across six major river basins and reduce risks from four high-risk glacial lakes. The plans were outlined in two separate white papers issued on Sunday by the Center for Hydrology and Water Resources Research and the Department of Hydrology and Meteorology. The proposed initiatives build on previous risk-reduction efforts at Tsho Rolpa and Imja glacial lakes. The center is allocating $7.54 million to flood forecasting under the Priority River Basins Flood Risk Management Project. It plans to provide 24-hour forecasts from May 15 to October 17 and develop new forecasting models for the Karnali and Narayani river basins. Meanwhile, the department plans to introduce artificial intelligence (AI) and machine learning to improve forecasting, automate 503 manual weather stations, repair radars in Surkhet, Palpa and Udayapur, and install an X-band radar in the Kathmandu Valley.
Department plans automated weather stations and paid commercial forecasting services
The Department of Hydrology and Meteorology plans to gradually replace traditional weather stations with automated systems and establish six additional radiosonde stations to improve the quality and continuity of weather data. According to the department’s draft white paper, the radiosonde stations will collect information about atmospheric conditions at higher altitudes. The department also intends to introduce fees for specialised weather and climate information provided for commercial purposes. The services are expected to benefit sectors including agriculture, tourism, water resources, road construction, aviation and energy. Under the proposed cost-recovery system, commercial users requesting specialised data and forecasting services will be required to pay. However, the department has stated that public safety information and essential early warning services will remain freely accessible.
Agricultural and livestock insurance subsidies exceed Rs 1.24 billion
Participation in agricultural and livestock insurance has increased across Nepal following the integration of premium subsidy payments into an online system managed by the Department of Livestock Services. Over the past six months, 95,309 insurance policies were issued, with the government providing Rs 1.242 billion in premium subsidies. The coverage included 76,240 policies for cattle and buffaloes, 12,450 for goats, 2,650 for poultry, 2,468 for pigs and 1,501 for fisheries. Of the total subsidy, Rs 1.191 billion was allocated to livestock and fisheries insurance, while Rs 51.4 million was provided for crop insurance, according to figures settled through mid-March via the Nepal Insurance Authority.
Registered motor vehicles more than double in a decade, reaching 6.25 million
The number of registered motor vehicles in Nepal more than doubled over the past decade, rising from 2,783,428 in fiscal year 2016/17 to 6,249,742 by the end of the latest fiscal year. Motorcycles and scooters dominate the market, accounting for approximately 81 percent of registered vehicles. Their combined number reached 5,064,364, up from around 2.19 million. Registrations of private cars and utility vehicles also increased, rising from 213,320 to more than 400,000. Electric vehicles accounted for over 60 percent of passenger vehicle sales, although annual sales in the segment declined from approximately 30,000 to 17,000 units. Commercial transport also recorded growth, with 88,790 electric rickshaws and 198,181 tractors and power tillers registered.
NPL champions to receive record Rs 15 million in prize money
The winners of the third edition of the Nepal Premier League (NPL) will receive Rs 15 million, the Cricket Association of Nepal (CAN) has announced. The prize represents an increase of Rs 4 million from the previous edition and is intended to enhance the tournament’s competitiveness and commercial appeal. CAN Treasurer Padam Bahadur Khadka said the total prize money allocated to the top four teams would amount to Rs 30 million. The runners-up will receive Rs 8 million, while the teams finishing third and fourth will get Rs 4 million and Rs 3 million, respectively. In the previous edition, champions Lumbini Lions received Rs 11 million. CAN said the increased rewards were intended to recognise players’ efforts, improve the tournament’s standard and strengthen the professional development of Nepali cricket. Individual awards will also include cash prizes and items such as cars and motorcycles. Eight franchise teams will compete in the tournament.
NEPSE proposes new benchmark index based on tradable shares
The Nepal Stock Exchange (NEPSE) has proposed introducing a new market indicator, the NEPSE Benchmark Index, while retaining the existing index under the name NEPSE All Equity Index. The current index, which has operated since 1994 with a base value of 100, calculates total market capitalisation, including founder shares that are not traded, locked-in shares and government holdings. These components can distort the picture of shares available for public trading. For example, the government owns 91.53 percent of Nepal Telecom. The proposed benchmark would exclude non-traded founder, strategic and locked-in shares to focus on publicly tradable stocks. NEPSE also maintains the Sensitive Index, introduced on January 1, 2007, and the Float Index, launched on September 15, 2008. The exchange covers 12 sector groupings.
Manaslu Circuit and Tsum Valley trekking routes reopen after repairs
Trekking has resumed along the Manaslu Circuit via Larke Pass and in the Tsum Valley following repairs to trails, bridges, access roads and teahouses damaged by the October 11, 2026, Budhi Gandaki flood. The Trekking Agencies’ Association of Nepal (TAAN) issued a safety advisory on Sunday, October 25, confirming that the routes had partially reopened. Trekkers can now travel by vehicle as far as Machhakhola before beginning their journeys. A 10-minute alternative trail has also been established at Yaru Bagar to bypass a difficult section. The Department of Immigration and the Manaslu Conservation Area Project have confirmed that the necessary permits are available. On the Manaslu Circuit, trekkers have crossed repaired sections through Khorlabesi, Jagat, Philim and Nyakphedi, reaching Samagaon and Dharmashala. In the Tsum Valley, community-led repairs, including the installation of four wooden bridges and restoration of trails around Sardi Khola, have reopened access to Chhekampar and Mu Gomba.
Syabrubesi Bailey bridge construction accelerates ahead of Tihar
Construction of a Bailey bridge at Syabrubesi is progressing around the clock, with authorities aiming to complete the project before Tihar. The temporary motorable bridge is being built after the permanent highway bridge was destroyed by the Bhote Koshi floods on August 26. The chief district officer and the executive director of the National Disaster Risk Reduction and Management Authority inspected reconstruction sites in the area on Saturday. The local administration and the disaster management authority are coordinating the work to restore road connectivity. Steel cables have also been provided for a footbridge linking Syabrubesi and Bridhim to improve pedestrian access.
Britain-Nepal Charitable Trust awards first grants to flood survivors
The Britain-Nepal Charitable Trust has distributed its first three grants from a fundraising campaign supporting people affected by the August 26 Bhote Koshi-Rasuwa floods. The assistance is intended for vulnerable survivors, including children, women and people requiring medical care. British Ambassador to Nepal Rob Fenn presented the grants to three organisations at his residence in Kathmandu on October 23, according to the Britain-Nepal Society. The recipients are Sano Paila, which supports schools and children who have lost parents, relatives or homes; Aama Surakshya, which assists women and children, including pregnant women needing maternal healthcare; and International Nepal Fellowship UK, which organises health camps and provides other essential supplies. The trust thanked donors for contributing to the appeal, which aims to help flood-affected communities recover from their losses and trauma.
Chicken prices fall in Kathmandu after Dashain demand eases
Chicken prices in Kathmandu have declined following the Dashain festival as market demand has weakened. The National Chicken Sellers Association announced that the price of live chicken would fall by Rs 10 per kilogram, from Rs 290 to Rs 280, effective Monday. The price of dressed chicken has been reduced by Rs 15 per kilogram, from Rs 400 to Rs 385. Industry representatives said demand for poultry typically falls during Dashain, when consumers tend to prefer goat meat. Many residents have also yet to return to Kathmandu after travelling to their hometowns for the holidays, further reducing consumption and prompting price adjustments.
Low farmgate prices squeeze dairy farmers in Dang
Dairy farmers in Dang district are facing financial difficulties as the prices they receive for milk remain low relative to rising production costs, including animal feed, fodder, medicines and veterinary care. Farmers receive up to Rs 75 per litre for buffalo milk and Rs 65 for cow milk, while dairy businesses sell milk to consumers for as much as Rs 100 per litre. Dairy committees also raised retail prices effective October 1, setting curd at Rs 140 per litre, paneer at Rs 900 per kilogram and ghee at Rs 1,450 per kilogram. Farmers have called for greater transparency in pricing, scientific calculations of production costs and direct representation in decisions on milk prices.
Comment