KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s post-Dashain economic landscape reflects mixed financial performance, ongoing governance challenges, and emerging opportunities for development. The NEPSE index declined by 4.34 points to 2,629, ending a seven-session rally, while transaction turnover reached Rs 4 billion. Conversely, gold and silver prices rebounded, indicating renewed movement in the domestic precious metals market. Neoteric Nepal’s 40 percent turnover growth and Global IME Bank’s third consecutive international banking award demonstrate private-sector expansion and strengthening institutional recognition.
Governance and public administration remain significant concerns. The Nepal Oil Corporation’s renewed VAT billing directive highlights efforts to improve tax compliance, while substantial relief fund balances indicate considerable resources for disaster response. However, staff shortages in Bagmati’s cooperative management committee threaten timely recovery of depositors’ savings, despite government assurances of accelerated repayments. Sudurpashchim’s administrative expenditure also raises questions about balancing operational costs with development priorities.
Infrastructure and regional development initiatives offer opportunities for economic progress. Road expansion, proposed improvements to Karnali’s air connectivity, and agricultural commercialization could enhance mobility, employment, and rural incomes. Nevertheless, declining millet cultivation reveals weaknesses in traditional agricultural support systems. Women’s marigold farming in Tanahu demonstrates how collective entrepreneurship can strengthen local markets and financial independence.
Overall, Nepal’s economic outlook presents both resilience and structural vulnerabilities. Effective implementation, institutional accountability, agricultural support, and inclusive development policies will be essential for sustainable growth.
NEPSE drops 4.34 points after Dashain as turnover reaches Rs 4 billion
The Nepal Stock Exchange (NEPSE) index declined by 4.34 points to close at 2,629 on Monday, the first trading day after the Dashain holiday. The decline ended its seven-session upward trend. Share prices of 99 companies increased, while 171 declined and six remained unchanged. Total transaction turnover reached Rs 4 billion, down from Rs 4.88 billion in the previous trading session. The Manufacturing and Processing group rose by 1.03 percent, while the Trading group gained 1.11 percent. Higher share prices of cement companies supported the manufacturing sector, while a 1.41 percent increase in Bishal Bazar Company contributed to gains in the trading group. Newly listed Beni Hydropower posted the highest gain of the session, rising 15 percent. Chirkhwa Hydropower recorded the largest decline, with its share price falling 7.92 percent.
Gold rises to Rs 281,500 per tola, silver reaches Rs 3,995
The price of gold in Nepal’s domestic market increased by Rs 3,000 per tola on Monday, October 26, reaching Rs 281,500 after trading resumed following the Dashain festival. Gold had previously declined by Rs 11,700 per tola to Rs 278,500. Silver prices also increased, rising by Rs 40 per tola to Rs 3,995, according to the Federation of Nepal Gold and Silver Dealers’ Association. On the previous trading day, silver had fallen by Rs 195 to Rs 3,955 per tola. One tola is equivalent to approximately 11.66 grams.
NOC directs LPG industries to issue VAT bills on all sales
The Nepal Oil Corporation has instructed all liquefied petroleum gas (LPG) industries and bottling plants to issue value-added tax (VAT) bills for every sale, following reports of widespread non-compliance across regional distribution networks. In a formal circular signed by Director Engineer Binit Mani Upadhyay, the corporation reiterated its earlier directives issued on August 14, 2024, and January 23, 2025. The instructions require designated regional dealers and commercial distributors to provide official tax invoices for all retail transactions to promote transparency and ensure compliance with tax regulations in the energy sector.
Relief funds for prime minister collect more than Rs 18 billion
Contributions to the Prime Minister’s Disaster Relief Fund and the Prime Minister’s Relief Fund have continued following floods in the Bhote Koshi River in Rasuwa. According to the Office of the Prime Minister and Council of Ministers, the combined balance of the funds stood at Rs 18.09 billion as of 9 am on the day of the report. Of the total, Rs 13.48 billion is held in various accounts at nine commercial banks under the Prime Minister’s Disaster Relief Fund. The funds also hold USD 3.04 million in accounts at Himalayan Bank and Laxmi Sunrise Bank. The government has been collecting financial contributions through these funds to support rescue and relief operations in flood-affected areas.
Officials discuss challenges facing air services in Karnali Province
Government representatives and private airline operators held discussions on Monday about difficulties affecting air services in Karnali Province and potential measures to improve connectivity. The meeting was attended by Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel, also known as Ganesh; the Karnali Province Minister for Industry, Tourism, Forest and Environment; officials from the provincial ministry; the director general of the Civil Aviation Authority of Nepal (CAAN); and private airline operators serving the province’s mountainous districts. Participants discussed operational difficulties associated with providing flights across Karnali’s challenging terrain and explored ways to improve air services in the region. However, the official statement did not specify the particular challenges raised or detail the measures proposed during the discussions.
Minister Rawal discusses cooperative victims’ concerns during Chitwan visit
Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal met victims of troubled cooperatives in Chitwan on Monday to hear their concerns and provide updates on government efforts to address their problems. Speaking to journalists at Bharatpur Airport, Rawal said resolving the difficulties faced by landless citizens and cooperative victims remained a government priority. She stated that the process of returning savings to depositors affected by distressed cooperatives had begun and would be accelerated. According to Rawal, the government has introduced policy changes to address legal barriers to refunding cooperative deposits and issuing landownership certificates to people who have occupied land for an extended period. She also sought to reassure people concerned about possible eviction, saying the government was working to settle outstanding issues. Rawal added that ministers should visit communities to listen to people’s concerns and explain government initiatives rather than expect citizens to approach them.
Staff shortages hamper Bagmati’s troubled cooperative management committee
The Problematic Cooperative Management Committee, established by the Bagmati Provincial Government in fiscal year 2023/24 to oversee distressed financial institutions, is facing operational delays because of a shortage of personnel. The committee has only 12 staff members against an approved quota of 24 positions. It has also operated without a chartered accountant for three consecutive years. The committee oversees five troubled savings and credit cooperatives: Civil, Sumeru, Lalitpur-based Lali Gurans, Darshan and National Namobuddha. Partial refunds have been distributed to small depositors at two of the cooperatives. Depositors with savings of less than Rs 100,000 at National Namobuddha and those with less than Rs 50,000 at Sumeru have received partial repayments.
Sudurpashchim allocates more than Rs 3.04 billion for salaries and administrative expenses
The Sudurpashchim Provincial Government has allocated more than Rs 3.04 billion in its approved budget for fiscal year 2026/27 to cover salaries, allowances, uniforms, food, medical expenses and awards for elected representatives and government employees. The allocation includes Rs 2.85 billion from provincial internal revenue and Rs 198.5 million from federal grants. An additional Rs 4.9 million has been earmarked for staff social security. The provincial government has also set aside Rs 31.9 million for fuel, vehicle maintenance, insurance and equipment servicing. Of this amount, Rs 11.9 million is specifically allocated for fuel expenses at government offices across the province.
Millet cultivation declines in Jumla despite flour selling at Rs 200 per kg
Millet cultivation is declining in Jumla despite growing market demand for finger millet flour, which sells for Rs 200 per kilogram. Farmers are increasingly moving away from traditional crops because of limited commercial production opportunities and inadequate promotional support. According to the Agriculture Development Office, Jumla produced 3,850 metric tons of millet across 2,740 hectares in the previous fiscal year. The crop was cultivated across all eight local government units in the district. Traditional crops are losing ground as younger generations increasingly turn to vegetable farming and other cash crops. Agricultural experts say institutional support for production, processing and marketing could help preserve indigenous crops while improving farmers’ incomes.
Road expansion project identifies 219 structures encroaching on right-of-way
The Department of Roads under the Ministry of Infrastructure Development has finalized a revised resettlement action plan for the Kamaladi-Dhalkebar-Bagmati section of the Asian Highway-2, which is being expanded with support from the World Bank. The 77-kilometre road section passes through Dhanusha, Mahottari and Sarlahi districts. The project aims to upgrade the existing two-lane road to at least four lanes, with expansion to six lanes in urban commercial areas. The project is targeted for completion by mid-2027. Field inspections conducted between January and October 2025 identified 219 structures encroaching on the road corridor. According to the revised plan, all the structures lie within the designated 50-metre right-of-way established through a gazette notification in 1977. As a result, the project does not require the acquisition of additional private land.
Women in Aandhimul target Rs 1 million in marigold sales during Tihar
A group of 45 women engaged in commercial flower farming in Aandhimul, Aabukhaireni Rural Municipality-1, Tanahu, aims to generate Rs 1 million from marigold sales during the upcoming Tihar festival. The group has expanded its cultivation area to 45 ropanis after earning Rs 900,000 from flower sales last year. Harvesting, storage and distribution preparations are underway, with harvested marigolds being kept in cold storage to maintain their freshness before reaching the market. The flowers are expected to sell for up to Rs 400 per kilogram. Gift shop operators in Damauli have already purchased an initial shipment of 50 kilograms. The initiative has increased local flower production, reduced dependence on supplies from outside the region and created additional income opportunities for women involved in the farming group.
London-based Nepalis donate Rs 10 million and DNA testing kits to government
Two non-resident Nepalis based in London have contributed Rs 10 million and DNA testing kits to the government to strengthen its research and DNA testing capabilities. Foreign Minister Shisir Khanal received a cheque worth Rs 10 million from Uttam Nepal and DNA testing kits from Kul Acharya during an event at the Ministry of Foreign Affairs on Monday. Khanal expressed gratitude to both donors, saying their contributions would help enhance the government’s capacity for research and DNA testing. The event was attended by House of Representatives member Vidushi Rana, representatives of the Non-Resident Nepali Association (NRNA) and senior officials from the ministry.
Neoteric Nepal posts record annual turnover of nearly Rs 4.87 billion
Neoteric Nepal, a company under the Golchha Group, recorded a turnover of Rs 4.869 billion in the last fiscal year, marking a 40 percent increase from the previous year. The company reported turnover of Rs 3.491 billion in 2025 and Rs 3.66 billion in 2024. Strong demand for Dell computing equipment, Haier home appliances and Nokia telecommunications products contributed to its growth. Neoteric Nepal recorded a net profit margin of 1.68 percent, while its gross cash accrual rose to Rs 99 million. The company represents more than 30 international technology brands through five showrooms across the country. It also secured credit facilities carrying a combined rating of Rs 3.794 billion, comprising Rs 619.7 million in long-term facilities and Rs 3.175 billion in short-term credit lines to support its technology import business.
Global IME Bank receives Global Finance’s Best Bank Award for third consecutive year
Global IME Bank Limited has received the Best Bank Award 2026 from international financial publication Global Finance, marking the third consecutive year it has earned the recognition following awards in 2024 and 2025. The award was presented at a ceremony in Bangkok, Thailand. The recognition highlights the bank’s ability to mobilize financial resources, institutional credibility, expansion of digital services and geographical reach, strategic partnerships, customer-focused innovation, use of artificial intelligence, sustainable lending and risk management practices. Global IME Bank is the first commercial bank in Nepal to receive the award. Its nationwide network comprises 341 branches, 366 ATMs, 147 branchless banking units, 69 extension counters and three foreign representative offices, with operations covering all 77 districts.
Agriculture Development Bank restores digital banking services after security upgrades
Agriculture Development Bank has announced the resumption of its core digital banking services following temporary precautionary suspensions introduced in response to global cybersecurity concerns involving web-based PSP2 shell security protocols. Bank representatives said online infrastructure running on upgraded PHP software versions was not affected by the potential vulnerabilities. They added that technical security audits had been completed across all database servers. Internet banking, mobile banking and other transaction services are now fully operational. However, online account-opening services remain temporarily unavailable as the bank upgrades the relevant software. The service is expected to return in an improved format in the near future.
Vision Lumbini Energy schedules AGM to approve 3.6842 percent cash dividend
Vision Lumbini Energy Company has scheduled its annual general meeting (AGM) for Thursday, November 19, at Diyalo Foodland in Kalinagar, Butwal. The meeting is set to begin at 9 am. Shareholders will discuss the company’s annual performance and financial statements, appoint statutory auditors and consider approval of a cash dividend of 3.6842 percent of the paid-up capital, inclusive of applicable taxes. The company has also announced a book-closure date of December 2 to determine shareholders eligible for voting and dividend benefits. According to the notice, shareholders recorded on the Nepal Stock Exchange through Mangsir 13 will be eligible to participate in the meeting.
Pakistani players’ participation in NPL remains uncertain over reported PCB fee demand
The participation of Pakistani cricketers in the upcoming Nepal Premier League (NPL) remains uncertain after tournament stakeholders were reportedly instructed to temporarily halt players’ travel until the required no-objection certificates (NOCs) are issued. According to reports, the Pakistan Cricket Board (PCB) has allegedly sought around USD 25,000 for each player’s NOC. However, the reported fee demand has not been formally confirmed in writing. The uncertainty has prompted the affected players to adjust their travel plans. The tournament, featuring eight franchises, is scheduled to run from Monday through November 21. The Pakistani players expected to participate include Sahibzada Farhan, Haider Ali, Hunain Shah, Hussain Talat, Iftikhar Ahmed, Hasan Ali and Usama Mir. None of the listed players is currently part of an active Pakistan Test or One-Day International squad.
Comment