KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic outlook presents a mixed picture, combining positive financial market performance and infrastructure investment with mounting external trade pressures and climate-related challenges. The Nepal Stock Exchange (NEPSE) rose by 33.29 points to 2,664.06, supported by broad-based gains, while gold and silver prices also increased, reflecting changing domestic market conditions.
However, the external sector remains under pressure. The trade deficit widened by 34.71 percent to Rs 532.49 billion in the first three months of the fiscal year, as imports grew substantially despite faster export growth. Heavy dependence on China and India for electric vehicles and smartphones further highlights Nepal’s limited diversification of import sources. Although Birgunj Customs exceeded its monthly revenue target, its cumulative collection remained below target, underscoring the importance of sustained trade activity for public finances.
Climate vulnerability presents another major concern. Recent disasters reportedly caused USD 2.7 billion in losses, while reconstruction needs reached USD 4.8 billion. Proposed damage assessments and international climate financing could support recovery, but effective implementation remains crucial.
Meanwhile, underground power infrastructure, industrial capacity utilization and tourism promotion indicate opportunities for longer-term growth. Nevertheless, budgetary priorities, including the disparity between medicine procurement and tourism-related religious infrastructure, raise questions about resource allocation. Overall, Nepal needs stronger export competitiveness, diversified trade, resilient infrastructure and balanced public spending to achieve sustainable economic growth.
NEPSE gains 33 points as turnover reaches Rs 7.47 billion
The Nepal Stock Exchange (NEPSE) index rose by 33.29 points, or 1.26 percent, to close at 2,664.06 on Wednesday, with total turnover reaching Rs 7.468 billion. Share prices of 241 companies advanced, while 35 declined and three remained unchanged. Of the 13 sectoral indices, only the trading subindex ended in negative territory, while the remaining sectors recorded gains. A total of 19.40 million shares were traded through 63,744 transactions during the session. Beni Hydropower posted the highest gain, rising by 15 percent, while Prime Debenture recorded the steepest decline at 2.96 percent. Liberty Energy led turnover, with shares worth Rs 325 million traded at Rs 250 per share.
Gold rises to Rs 283,200 per tola, silver reaches Rs 3,980
Gold and silver prices increased in Nepal’s domestic market on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 900 per tola, from Rs 282,300 on Tuesday to Rs 283,200 on Wednesday. One tola is equivalent to approximately 11.66 grams. Silver prices also edged up, gaining Rs 10 per tola to reach Rs 3,980 from Rs 3,970 a day earlier. The latest rates reflect an increase in the prices of both precious metals in the domestic market.
Foreign trade deficit rises to Rs 532.49 billion amid import surge
Nepal’s foreign trade deficit increased by 34.71 percent during the first three months of the current fiscal year, reaching Rs 532.494 billion, compared with the figure reported for the same period last year, according to the Department of Customs. Merchandise imports climbed by 38.18 percent to Rs 646.7 billion from Rs 468 billion in the corresponding period of the previous fiscal year. Meanwhile, exports grew by 57.03 percent to Rs 114.2 billion, up from Rs 72.78 billion. The country’s total foreign trade turnover increased by 40.71 percent to Rs 761 billion during the review period, reflecting substantial growth in both imports and exports.
Nepal reports USD 2.7 billion in disaster losses, calls for greater space-data sharing
Nepal has urged regional cooperation in using satellite observations and ground-based measurements to monitor climate-related hazards in the Himalayas, while highlighting the severe human and economic toll of recent disasters. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha made the remarks while addressing the Fifth Ministerial Conference on Space Applications for Sustainable Development in Asia and the Pacific in Bangkok, Thailand, on Wednesday. Shrestha said recent disasters had claimed more than 1,400 lives and left over 5,000 people missing. According to the Rapid Damage and Need Assessment, the total impact of the disasters amounted to USD 2.7 billion, while USD 4.8 billion would be required for recovery and reconstruction. He stressed the importance of combining satellite data with ground measurements to monitor glacier-related hazards and improve disaster preparedness. He cited the August 26 debris flow from Langtang Lirung into the Bhote Koshi and Trishuli rivers, as well as the October 11 landslide in the Budhi Gandaki area. Nepal is scheduled to co-host a regional dialogue on Thursday, October 29, to further discuss these issues.
Gas dealers welcome VAT billing directive, urge consumers to collect receipts
The Gas Dealers Federation of Nepal has welcomed Nepal Oil Corporation’s (NOC) directive requiring sellers to issue value-added tax (VAT) bills for liquefied petroleum gas (LPG) sales, describing the move as an important step toward improving transparency and accountability in the sector. In a press statement issued on Wednesday, the federation said the directive would help make LPG transactions more systematic and transparent. The NOC’s LP Gas and Aviation Department issued the instruction to gas industries on October 25, requiring them to ensure that sellers provide bills to customers. The directive followed a growing number of complaints about sellers failing to issue bills or invoices after selling LPG. Federation President Gyaneshwar Aryal urged gas entrepreneurs to comply fully with the requirement. He also encouraged consumers to request and collect bills whenever purchasing LPG, saying regular billing would promote accountability and strengthen business practices.
Parliamentary panel seeks detailed flood damage assessment as Nepal eyes USD 20 million fund
A special committee of the National Assembly has directed the Ministry of Agriculture, Forests and Environment to submit detailed, ward-level assessments of flood damage across 49 affected wards. At a meeting on Wednesday, committee Chair Krishna Prasad Poudel said field inspections would be conducted after the ministry submits comprehensive reports on losses to agriculture, livestock, aquatic life, farmland and biodiversity. Ministry Secretary Rajendra Prasad Mishra said assessments were underway, with damage being calculated using cultivation records and prevailing market prices. Ministry spokesperson Maheshwar Dhakal said Nepal had an opportunity to submit a proposal worth USD 20 million to the international Loss and Damage Fund. He also emphasized the need to advance climate justice and strengthen regional cooperation. The committee plans to conduct field visits to Rasuwa, Nuwakot and Dhading, following consultations with the ministry. The dates for the proposed visits should be confirmed, as the October 3–7 schedule provided in the original report appears inconsistent with the stated timeline.
Electric vehicle imports reach Rs 16.07 billion in three months
Nepal imported electric vehicles worth Rs 16.069 billion during the first three months of the current fiscal year, despite disruptions to northern trade routes caused by monsoon-related flood damage in Rasuwa and Mustang districts. According to customs records, the government collected Rs 9.414 billion in revenue from electric vehicle imports during the review period. China remained the largest source of imported electric vehicles, supplying 9,552 units worth Rs 11.657 billion. India ranked second, exporting 3,162 units valued at Rs 3.282 billion. Additional electric vehicles were imported from Thailand, the United States and other countries.
Smartphone imports worth Rs 18.81 billion, with China leading supply
Nepal imported 811,267 smartphones worth more than Rs 18.81 billion during the three-month review period, according to official customs data. China was the largest supplier, accounting for 701,244 units valued at over Rs 14.56 billion. India followed with 105,829 smartphones worth more than Rs 3.84 billion. Combined, the two neighbouring countries supplied 807,073 smartphones, representing the overwhelming majority of Nepal’s total imports in the category. Other suppliers included the United States, with 933 units; Japan, with 922; Australia, with 629; Malaysia, with 556; the United Arab Emirates, with 321; South Korea, with 181; Great Britain, with 162; Canada, with 105; and Qatar, with 74. The figures underscore Nepal’s heavy reliance on China and India for smartphone supplies.
Birgunj Customs exceeds monthly revenue target
The Birgunj Customs Office collected Rs 26.73 billion in revenue between September 17 and October 17, exceeding its monthly target of Rs 26.46 billion by 1.02 percent, according to the office’s chief customs administrator. Fuel imports were the largest revenue contributor, generating Rs 2.29 billion. Liquefied petroleum gas (LPG) imports followed with Rs 1.8 billion, while bitumen imports generated Rs 1.4 billion. Imports of apples and pears contributed Rs 500 million. Despite surpassing its monthly target, the office fell short of its cumulative revenue goal for the first three months of the fiscal year. By the end of the review period, it had collected Rs 69.13 billion against a target of Rs 70.56 billion. The office attributed its monthly performance partly to increased economic activity during the festive season.
Pokhara underground power lines extend to 165.7 kilometres
The Nepal Electricity Authority has installed 165.7 kilometres of underground power lines in Pokhara under a project aimed at modernizing and strengthening the city’s electricity distribution system. Electricity is currently being supplied through 55.2 kilometres of the underground network. The work is being carried out under the Pokhara-Bharatpur Distribution System Reinforcement Project, which aims to install underground power lines across 223 kilometres in Pokhara. According to the project’s chief engineer, physical progress in the city has reached 82 percent, with completion targeted for mid-May. Around 6,000 households are expected to receive electricity through the underground network. More than 400 households along sections of the Prithvi Highway and several major roads are already receiving power through the system. The project also includes the installation of optical fibre infrastructure for telephone, cable television and internet services, alongside the removal of overhead wires and old utility poles. Funded through concessional loans from the Asian Development Bank, the Pokhara component has a budget of Rs 1.70 billion. However, extending underground power lines throughout the Pokhara Valley would require an estimated investment of more than Rs 5 billion, according to Subedi.
Sudurpashchim allocates Rs 50.1 million for medicines and Rs 1.15 billion for tourism
The Sudurpashchim Provincial Government has allocated Rs 50.1 million for procuring essential medicines for health facilities and hospitals in its fiscal year 2026/27 budget, while setting aside Rs 1.15 billion for tourism infrastructure development. The tourism allocation is intended to support the development of more than 600 local temples and religious shrines across the province. Of the funding for medicines, Rs 29.2 million will be managed by the Provincial Health Logistics Management Centre. An additional Rs 1 million has been allocated to district health offices in Bajura, Bajhang, Baitadi, Doti, Dadeldhura and Achham for the distribution of free medicines. The budget priorities have drawn criticism in provincial political circles and on social media, particularly over the disparity between spending on religious infrastructure and essential healthcare. The tourism allocation is nearly 23 times the amount earmarked for medicines, despite continuing shortages of routine treatments for chronic conditions such as hypertension and diabetes in rural health facilities.
Nuwakot officials receive training on flood relief grants
An orientation programme on the implementation of the Bhote Koshi Flood Victims Housing and Livelihood Grant Distribution Process, 2026, and the effective use of the Resource Management Information System (RMIS) was held in Nuwakot on Wednesday. The programme was chaired by Nuwakot Chief District Officer Shambhu Prasad Regmi and attended by officials from local governments and wards affected by the floods. Participants were briefed on procedures for distributing housing and livelihood grants to flood victims, as well as the effective use of RMIS to manage relevant information and resources. The initiative aims to support the transparent and efficient implementation of assistance programmes for affected households. The National Disaster Risk Reduction and Management Authority organized the programme in coordination with the District Administration Office, Nuwakot. CRS Nepal and the Nuwakot District Chapter of the Nepal Red Cross Society provided technical support.
Tourism Board invites companies to participate in China International Travel Mart
The Nepal Tourism Board (NTB) has invited tourism companies to apply for participation in the China International Travel Mart (CITM), scheduled to take place from December 12 to 14, 2026. The participation fee has been set at Rs 125,000 per company. The board will select up to seven companies through a lucky draw scheduled for November 4 at 10 a.m. at its office. Online applications will open at 10 a.m. on October 29, with the deadline set for November 3. Interested companies must submit their applications and supporting documents through the NTB’s online portal. Required documents include company registration certificates, VAT/PAN registration, tax clearance for fiscal year 2024/25, a valid operating licence and a foreign currency exchange certificate issued by Nepal Rastra Bank. Selected companies must complete their payments online within the deadline specified by the board. Participating companies will be responsible for their own travel, accommodation and visa expenses.
Industrial capacity utilization in Koshi rises to 43.1 percent
The average capacity utilization of industrial enterprises in Koshi Province increased to 43.1 percent in fiscal year 2025/26, up from 41.8 percent in the previous fiscal year, according to a study published by Nepal Rastra Bank. Soybean oil manufacturing recorded the highest capacity utilization rate at 118 percent, while vegetable ghee production posted the lowest at 6.5 percent. Industrial output also increased across several sectors. Production of soybean oil rose by 45.3 percent, mustard oil by 11.9 percent, processed rice by 28.1 percent, animal feed by 15 percent, sugar by 13.6 percent, noodles by 12.6 percent, and plastic goods by 14.5 percent. Output of domestic metal products recorded a particularly sharp increase of 287.8 percent. Outstanding industrial credit extended by banks and financial institutions reached Rs 173 billion by the end of the previous fiscal year, accounting for 27.2 percent of total lending. Koshi Province’s gross domestic product growth was provisionally estimated at 3.13 percent. The province had 1,836 bank branches, with total deposits reported at Rs 6.419 billion and total lending at Rs 6.393 billion.
Teacher Service Commission speeds up review of promotion appeals filed by 6,000 teachers
The Teacher Service Commission has expedited the publication of revised promotion results following appeals filed by nearly 6,000 teachers whose rankings were determined through performance evaluations. Commission spokesperson Parshuram Tiwari said the commission was publishing revised rankings for promotions based on the 75 percent performance evaluation criterion after decisions were made by the secretariats of promotion recommendation committees. Under Chapter 15 of the Teacher Service Commission Operating Procedures, 2022, as amended, the commission is examining submitted documents and supporting evidence before finalizing promotion results for teachers at the relevant levels and in their respective districts. The review process had remained stalled for six months because the commission lacked officeholders. The government appointed Hari Prasad Lamsal as chairperson, along with other officials, on September 10, filling the vacant positions and allowing the process to move forward.
Nepal and France discuss cooperation in aviation and scientific research
Foreign Minister Shisir Khanal and newly appointed French Ambassador to Nepal Françoise Puig-Inza discussed ways to strengthen bilateral cooperation in aviation, climate action, scientific research and multilateral affairs during a meeting at the Ministry of Foreign Affairs on Wednesday. According to the ministry, Khanal congratulated Puig-Inza on her appointment and wished her a successful tenure in Nepal. The meeting also covered areas of mutual interest, with both sides exploring opportunities to expand cooperation and deepen relations between Nepal and France.
NATHM delegation explores tourism cooperation with Bahrain
A delegation from the Nepal Academy of Tourism and Hotel Management (NATHM) visited Bahrain from October 25 to 27 to explore academic and professional cooperation with Vatel Bahrain Tourism and Business School and strengthen bilateral engagement in tourism-related sectors. The delegation was led by NATHM Executive Director and Principal Dibya Raj Pokhrel. Other members included Bipin Nepal, director of the Mountaineering Studies Division, and Damber Raj Bhatta, research and incubation officer. On October 26, the delegation met Mohamed Rashed Alsowaidi, chief of Asian and Pacific Affairs at Bahrain’s Ministry of Foreign Affairs, and Sara Ahmed Buhiji, CEO of the Bahrain Tourism and Exhibitions Authority. Nepali Ambassador to Bahrain Tirtha Raj Wagle and embassy Second Secretary Keshav Raj Panthi also participated in the meetings. Discussions focused on potential cooperation in education, adventure tourism, hospitality, mountaineering, yoga and wellness. The delegation also visited the Embassy of Nepal in Manama for an interactive briefing as part of its efforts to strengthen institutional and professional ties between the two countries.
Autumn climbing permits generate Rs 318 million in royalties from 44 Himalayan peaks
Nepal collected Rs 318 million in government royalties from mountaineering permits issued to 1,410 climbers from 76 countries during the autumn climbing season. The climbers were part of 161 expedition teams preparing to scale 44 Himalayan peaks. According to a branch officer at the Department of Tourism, the permits were issued to 1,069 male and 341 female climbers, generating more than USD 2 million in revenue. Manaslu, standing at 8,163 metres, attracted the largest number of climbers, with 500 mountaineers in 43 expedition teams. Permits for the peak generated Rs 225.8 million in royalties. Other major royalty contributions included Rs 8.4 million from Dhaulagiri I, Rs 688,050 from Makalu, Rs 7.4 million from Himlung Himal and Rs 57.6 million from Ama Dablam. Permits were also issued for expeditions to Puma Hiunchuli, Baruntse and Thorang Peak. Among the permitted climbers, 141 were from China, 130 from France, 119 from the United States, 108 from Russia and 96 from Great Britain. Italy and Switzerland each accounted for 47 climbers, followed by Poland with 41, India with 40, Japan with 35 and Nepal with 33.
Keroun substation completed in Morang to strengthen power supply in eastern Nepal
Construction of the 132 kV Keroun substation in Kanepokhari Rural Municipality-2, Morang, has been completed to improve electricity reliability, voltage stability and power distribution in the district and surrounding areas of eastern Nepal. The substation is scheduled to be charged on October 31 and November 1. The process requires looping-in and looping-out operations on the Duhabi-Damak 132 kV transmission line. Temporary power interruptions are expected from 4 a.m. to noon during the system integration work, affecting Jhapa, Ilam, Panchthar, Taplejung and parts of Morang, including Urlabari and Pathari. The facility houses two 132/33 kV transformers, each with a capacity of 63 MVA, and one 33/11 kV transformer with a capacity of 22.5 MVA, providing a combined installed capacity of 148.5 MVA. The project was completed at an estimated cost of Rs 1 billion through joint investment by the Government of Nepal and the Nepal Electricity Authority, supplemented by concessional loans from the Asian Development Bank.
Industrial area authority restricts non-manufacturing activities on leased land
Industrial Area Management Limited has introduced stricter rules to prevent non-manufacturing businesses from operating on land allocated to industrial enterprises in state-established industrial zones. Under the revised provisions, businesses such as vehicle service centres, workshops and commercial showrooms operating on industrial plots will be required to convert their operations into approved manufacturing industries within a five-year grace period. Enterprises that fail to meet the requirement will face cancellation of their lease agreements, according to the authority’s general manager. The policy aims to ensure that limited industrial land is used primarily for productive manufacturing, supply-chain development, value addition and import substitution. The reform also seeks to address concerns over the use of publicly supported industrial infrastructure for commercial activities unrelated to manufacturing.
Lumbini Cable Car sees 24 percent rise in Indian visitors
The number of Indian visitors using the Lumbini Cable Car increased by 24 percent in fiscal year 2025/26 compared with the previous fiscal year, according to figures presented at the company’s 23rd annual general meeting. Company Chairman said Indian nationals accounted for 29 percent of total passengers, with visitors arriving from Uttar Pradesh, Delhi, Jharkhand, Bihar, Kerala and Andhra Pradesh. Many visitors travel to Basantapur Hill in Palpa to visit the Kamaksha Temple and the historic Durga Temple. To attract more Indian tourists, the company has strengthened coordination with drivers operating across the border and expanded digital promotional campaigns involving regional vloggers. Meanwhile, plans for a five-star hotel and casino complex at the cable car’s upper station have advanced to the design approval stage. Additional attractions, including roller coasters and zero-gravity rides, are also planned. The company has established promotional partnerships with more than 70 hotels, 40 institutions and 45 educational organisations in Butwal and Bhairahawa to further expand its reach.
Banke farmers expand Kalanamak rice cultivation as prices reach Rs 12,000 per quintal
Farmers in Banke district are expanding the cultivation of Kalanamak rice, a fragrant and flavourful traditional variety that commands a premium price in the market. One farmer, who initially cultivated the variety on 677.26 square metres of land, has expanded the area to 3,386.29 square metres to take advantage of growing demand. While hybrid rice varieties generally sell for Rs 3,000 to Rs 3,200 per quintal, Kalanamak fetches around Rs 12,000 per quintal. The crop produces soft, aromatic grains and takes approximately 140 days to mature after transplantation. Farmers generally plant it in Ashad and harvest it in late Kartik. A farmer reportedly expects to harvest 15 quintals from 20 kilograms of seed, although the production estimate should be verified. Commercial cultivation is also underway across 20,317.88 square metres in Gurwa village of Janaki Rural Municipality-5. The chief of the Agriculture Knowledge Centre in Nepalgunj said programmes promoting indigenous crop varieties were helping farmers expand production. Cultivation is particularly concentrated in Kohalpur Municipality and Baijanath Rural Municipality.
‘Kabaddi 5’ crosses Rs 70 million at domestic box office
The Nepali film Kabaddi 5, written and directed by Ram Babu Gurung, has grossed more than Rs 70 million at the domestic box office, according to its producer. Producer Maniram Pokharel said the film had earned more than Rs 50 million by Sunday and continued to perform strongly through Tuesday. The movie has received encouraging responses from audiences and critics, with more than 60 screenings reportedly sold out by Tuesday morning. Its box-office earnings are expected to rise further, as cinemas across the country are offering discounted tickets on Wednesday and Thursday. The film features Dayahang Rai, Bijay Baral, Buddhi Tamang, Srijana Gurung and Bipin Karki, among others. It is presented by Bansuri Films and produced by Ram Babu Gurung, Maniram Pokharel, Madhu Mijar and Bishal Gurung.
Him Parbat Hydropower opens IPO for project-affected residents and migrant workers
Him Parbat Hydropower Company has opened its initial public offering (IPO) for residents of project-affected areas and Nepali citizens working abroad. The company, which has an issued capital of Rs 1.69 billion, is offering 5,915,000 ordinary shares worth Rs 591.5 million at a face value of Rs 100 per share as part of its planned public issuance. Of the total offering, 1,690,000 shares worth Rs 169 million have been allocated to residents of project-affected areas. This includes 1,014,000 shares for permanent residents of severely affected areas in Bigu Rural Municipality wards 5, 6, 7 and 8, and Kalinchowk Rural Municipality wards 2, 3 and 4 in Dolakha district. Another 676,000 shares have been reserved for residents of other designated wards. An additional 422,500 shares, worth Rs 42.25 million, have been set aside for Nepali citizens employed abroad who hold valid foreign employment permits. Applications from local residents will remain open until November 11, while eligible migrant workers must apply by November 2. Citizens Capital is managing the issue, with applications accepted through designated banking partners, including Citizens Bank, Prabhu Bank, Sindhu Development Bank and Laxmi Sunrise Bank.
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