KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic and policy developments reveal a mixed picture of market optimism, investment opportunities and persistent structural challenges. The Nepal Stock Exchange (NEPSE) gained 31.54 points to close at 2,695.60, with turnover rising to Rs 8.57 billion, indicating stronger trading activity. However, the contrasting movements in gold and silver prices highlight continued uncertainty in commodity markets.
Financial authorities are managing substantial excess liquidity, while the Securities Board of Nepal (SEBON) continues reviewing 117 companies seeking IPO approvals worth Rs 71.422 billion. These developments suggest considerable financial resources and potential investment opportunities, although weak credit demand and incomplete IPO documentation indicate that effective capital mobilisation remains a challenge.
Foreign direct investment commitments reached Rs 16.23 billion across 422 projects in the first quarter of fiscal year 2026/27, significantly below the Rs 35 billion recorded during the corresponding period last year. Although information technology and tourism attracted investment, the decline underscores the need to strengthen investor confidence and improve the business environment. Meanwhile, the Koshi Province government’s 9.74 percent budget implementation rate raises concerns about administrative efficiency and delayed development spending.
Climate change and disaster recovery remain major national priorities. With reported disaster damage reaching USD 4.8 billion, Nepal is seeking greater international climate finance ahead of COP31. The anticipated USD 65 million in climate funding offers opportunities to strengthen resilience, but transparent resource management and effective implementation will be essential.
Infrastructure disruptions, including flood-damaged hydropower facilities and terminated road contracts, further expose Nepal’s vulnerability to natural hazards and weak project execution. Conversely, opening cross-border electricity trading to private companies could support energy exports and economic growth.
Overall, Nepal needs stronger governance, accelerated capital expenditure, resilient infrastructure and effective investment policies to translate financial resources and international commitments into sustainable economic development.
NEPSE gains 31.54 points as turnover reaches Rs 8.57 billion
The Nepal Stock Exchange (NEPSE) index climbed 31.54 points, or 1.18 percent, to close at 2,695.60 points on Thursday, extending the gains recorded in the previous session. Share prices of 181 companies advanced, while 91 declined and six remained unchanged. All 13 trading subgroups ended in positive territory. A total of 23.26 million shares were traded through 69,619 transactions, generating a turnover of Rs 8.57 billion, up from Rs 7.46 billion on Wednesday. Beni Hydropower recorded the highest gain, with its share price rising 15 percent. In contrast, NRN Infrastructure and Development suffered the steepest decline, falling 3.65 percent. Ghalemdi Hydropower led turnover, with shares worth Rs 356.17 million traded at Rs 335 per share.
Gold price rises by Rs 300 per tola, while silver falls by Rs 50
The price of gold increased slightly in the domestic market on Thursday, while silver became cheaper, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of hallmark gold rose by Rs 300 per tola to Rs 283,500. The precious metal was traded at Rs 283,200 per tola on Wednesday. In contrast, the price of silver declined by Rs 50 per tola to Rs 3,930. Silver had been priced at Rs 3,980 per tola in the previous trading session. The contrasting movements in the prices of the two precious metals reflected different market trends during Thursday’s trading.
Parliamentary panel seeks transparency as disaster relief funds total Rs 18.28 billion
A special committee of the National Assembly monitoring the Bhote Koshi and Kali Gandaki corridors has called for full disclosure of funds collected and spent on flood relief and recovery. During a meeting on Thursday, officials reported that the Prime Minister’s Natural Disaster Relief Fund and the Prime Minister’s Relief Fund together held Rs 18.28 billion. Finance Secretary Ghanshyam Upadhyaya said Rs 242 million had been distributed to affected local governments through the National Disaster Risk Reduction and Management Authority (NDRRMA), while Rs 2.54 billion had been allocated for security agencies. The National Planning Commission (NPC) estimated the total losses from the disasters at Rs 408.29 billion and the overall reconstruction cost at Rs 723.31 billion. The Disaster Council has approved initial projects worth Rs 225.77 billion. The committee stressed the importance of transparency and accountability in the management and use of disaster relief resources.
NRB absorbs Rs 150 billion in excess liquidity
The Nepal Rastra Bank (NRB) has moved to absorb Rs 150 billion in excess liquidity from the financial system for an eight-day period amid rising surplus funds driven by seasonal remittance inflows and increased economic activity during the festive season. According to official data, excess funds deposited with the central bank have reached Rs 1.386 billion, reflecting continued deposit growth, weak credit demand and foreign financial assistance related to flood relief in Rasuwa. Although short-term interbank interest rates remain low, the NRB is using deposit collection instruments, treasury bills and the permanent deposit facility to manage excess liquidity. The standing deposit facility rate remains at 2.75 percent, while the bank rate stands at 5.75 percent.
SEBON divides 117 IPO applicants into six review stages
The Securities Board of Nepal (SEBON) has classified 117 companies seeking approval to issue 510,981,946 initial public offering (IPO) shares worth Rs 71.422 billion into six stages of regulatory review. Official records show that 76 companies remain at the initial stage because of incomplete documentation. Six companies have advanced to the second stage, four to the third, 19 to the fourth and 10 to the fifth. The remaining two companies are in the final review stage. The companies awaiting final approval are Ashutosh Energy and Kantipur Pharmaceuticals Lab. Ashutosh Energy has proposed issuing 1.2 million shares worth Rs 120 million, with NMB Capital as its issue manager. Kantipur Pharmaceuticals Lab plans to issue 1.7 million shares worth Rs 170 million, managed by Muktinath Capital.
Foreign minister highlights $4.8 billion in disaster damage ahead of COP31
Foreign Minister Shisir Khanal has called for stronger international support for mountain conservation and improved access to climate finance as Nepal prepares for the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye. Speaking at the National Climate Summit 2026 in Kathmandu on Thursday, Khanal cited the recent Bhote Koshi disaster, which reportedly caused USD 4.8 billion in damage, to underscore the vulnerability of Himalayan ecosystems and communities. He welcomed a provisional allocation of USD 21.6 million for Nepal from the Fund for Responding to Loss and Damage and called for climate assistance to be provided through grants. Ahead of COP31, Khanal outlined four key priorities for Nepal: establishing a dedicated mountain agenda, operationalizing loss and damage support, securing greater climate finance and advancing climate justice through the Sagarmatha to the Sea vision.
Nepal approves Rs 16.23 billion in FDI commitments across 422 projects
Nepal approved foreign direct investment (FDI) commitments worth Rs 16.231 billion across 422 new industrial registrations and projects during the first quarter of fiscal year 2026/27, from July 17 to October 17, 2026, according to the Department of Industry. Of the approved projects, 410 industries registered through the automated route accounted for Rs 14.586 billion, while 12 industries approved through other procedures accounted for Rs 1.645 billion. The total commitments marked a significant decline from the Rs 35 billion recorded during the corresponding period of the previous fiscal year. Information technology attracted the largest number of projects, with 252 registrations, while tourism also drew substantial investment. The approved projects are expected to generate employment for 5,129 people.
Govt places aviation agencies on high alert over Cyclone Arnab
The government has placed its subordinate agencies on high alert to minimize potential risks and maintain essential services as Cyclone Arnab threatens to affect Nepal. Although the weather system is expected to weaken after affecting Andhra Pradesh and Visakhapatnam in India, it could still bring rainfall, snowfall and strong winds to parts of Nepal. Security agencies have begun issuing public announcements, while tourism authorities have urged mountaineers and trekkers to consult official weather forecasts before setting out. The Civil Aviation Authority of Nepal (CAAN) has instructed airports and aviation units to prepare for possible operational disruptions. Measures include ensuring readiness in air traffic management, inspecting runways, preparing alternative flight plans and checking communication networks and power systems. Local administrations have also urged the public to follow official weather advisories and avoid unnecessary panic.
Nepal secures $65 million in climate funding as COP31 preparations advance
Agriculture, Forests and Environment Minister Gita Chaudhary and House of Representatives Speaker DP Aryal have discussed preparations for Nepal’s participation in the United Nations Climate Change Conference (COP31), scheduled to take place in Antalya, Türkiye, from November 9 to 20. The discussions focused on mobilizing climate finance, including USD 20 million expected from the Fund for Responding to Loss and Damage to address the impacts of the Bhote Koshi floods and USD 45 million approved for three projects under the Adaptation Fund. Officials have also established criteria for parliamentary participation in the conference, requiring lawmakers to submit funding documentation to obtain official accreditation. Nepal plans to organize a national climate summit ahead of COP31, launch the Living Everest mountain strategy and publish its official position paper. The country is also preparing to host 44 side events at its conference pavilion.
Koshi Province spends just 9.74 percent of its annual budget in first three months
The Koshi Provincial Government has recorded slow budget implementation, spending just 9.74 percent of its total allocation during the first three months of the current fiscal year, through October 17. According to expenditure and revenue statements released by the Provincial Comptroller General Office, the province disbursed Rs 3.94 billion from its total budget of Rs 40.449 billion. Recurrent expenditure stood at Rs 2.981 billion, equivalent to 15.26 percent of the allocated recurrent budget. Capital expenditure was significantly lower, reaching just Rs 958.5 million, or 4.61 percent of the development budget. Low spending by the Ministry of Physical Infrastructure Development and the Ministry of Water Supply, Irrigation and Energy contributed to the sluggish pace of capital expenditure, raising concerns about the timely implementation of development projects.
Govt issues letters of intent to private firms for cross-border electricity trading
The government has taken steps to open cross-border electricity trading to the private sector by issuing letters of intent (LOIs) to an initial group of five companies following ministerial decisions on October 16. The Ministry of Energy, Water Resources and Irrigation received formal applications from 16 private companies seeking electricity trading licences. The first batch of approvals is intended to pave the way for greater private-sector participation in cross-border power trade, with permissions for the remaining applicants expected to be issued in phases. The applicant companies include Green Energy Power Trading, Trans Asian Power Trading, Nepal Power Trading and Management, Nepal Power Exchange, Power Trading and Eco Energy, Power Trading and Energy Exchange, NIFRA Trading and Energy Exchange, Himalayan Power Trading, Everest Power Trading, Cross Border Energy, West Seti Transmission and Urja Trade International. The initiative is expected to broaden participation in electricity trading and support Nepal’s efforts to expand cross-border power transactions.
US provides additional $1 million in DNA-testing supplies to Nepal
The United States has provided additional DNA-testing supplies worth part of a USD 1 million assistance package to help Nepal Police identify American citizens and other victims of the devastating floods of August 26. Riley Palmertree, an assistant law enforcement attaché at the Federal Bureau of Investigation (FBI), received two shipments of the supplies this week. Manufactured by US-based Thermo Fisher Scientific, the materials will support Nepal’s Rapid DNA systems and strengthen the country’s capacity to identify disaster victims. The assistance is also intended to help families obtain information about relatives who remain missing following the floods. The United States said it had provided more than USD 36 million in life-saving assistance and other disaster recovery support to Nepal following the disaster.
Iwa Khola hydropower project remains shut five months after flood damage
The 9.9-megawatt Iwa Khola Hydropower Project, operated by Ridi Hydropower along the border of Taplejung and Panchthar districts, has remained out of operation for five months following severe flood damage on May 22, 2026. The flood damaged several critical components of the project, including the headworks and dam site, sand-settling basins, water conveyance pipelines and powerhouse. Reconstruction work has yet to begin because of high river levels during the monsoon, seasonal labour shortages and successive major festivals, including Dashain and Tihar. Project developers expect substantial investment will be required to repair the damaged infrastructure before electricity generation can resume safely. They anticipate that construction work will become more feasible once the festive period ends and labour availability improves.
Govt terminates contract for 9.5-km Mechi Corridor road section
The government has terminated the construction contract for the 9.5-kilometre Belase-Golakharka Bhanjyang section of the Mechi Corridor (Kechana-Kanchenjunga) road, which connects Ilam, Panchthar and Taplejung districts. According to the Ministry of Infrastructure Development, the contract was awarded in the third quarter of 2021 for Rs 272.2 million, including value-added tax (VAT), with completion scheduled for mid-January 2024. Despite several deadline extensions, the project achieved only 45.28 percent financial progress and approximately 47 percent physical progress over 63 months. Minister Sunil Lamsal said the government would arrange the necessary resources and multi-year contract approval to resume construction. A new procurement process will be initiated promptly to complete the unfinished section. He added that contracts involving projects stalled for years would be terminated and the remaining work advanced through fresh bidding procedures.
Tourism Board switches China travel mart applications to email after cybersecurity issue
The Nepal Tourism Board (NTB) has instructed tourism companies to submit applications by email for participation in the China International Travel Mart (CITM) 2026 after a cybersecurity vulnerability disrupted its online application portal. Interested companies must submit their applications and supporting documents to [email protected] by 5 pm on November 4. The application form is available at trade.ntb.gov.np or can be requested by email. The board will select a maximum of seven companies through a lucky draw scheduled for 11:30 am on November 5 at its office. Only applications accompanied by all mandatory documents will be considered. Applicants must provide company registration documents, value-added tax (VAT) or Permanent Account Number (PAN) registration, tax clearance for fiscal year 2024/25, a valid licence and a foreign currency exchange certificate issued by Nepal Rastra Bank. Selected companies will receive further instructions by email regarding payment and additional documentation. The participation fee is Rs 125,000 per company, while participants must cover their own travel, accommodation and visa expenses. The fair is scheduled to take place from December 12 to 14, 2026.
NRB supervision team inspects 16 cooperatives in first phase of enhanced regulation
A technical supervision team from Nepal Rastra Bank (NRB), deployed to the National Cooperative Authority, has completed the first phase of regulatory inspections covering 16 cooperative institutions over three months. Led by Deputy Director Geja Pangeni, the 10-member team conducted four special investigations and 12 intensive audits as part of efforts to strengthen oversight of the cooperative sector. The inspected institutions included Panchatara Saccos Pepsi Cola, Milan Multipurpose Cooperative, Bhaktapur Tourism Saccos and Spiritual Saccos Lalitpur. The inspections identified several regulatory violations, including loans exceeding 15 percent of primary capital being extended to individual borrowers, unsecured lending, inadequate monitoring of credit utilisation, non-compliance with capital adequacy requirements and serious weaknesses in fund management. The team instructed the cooperatives to correct procedural violations and comply with applicable regulations. It has also initiated broader supervisory measures aimed at improving governance, strengthening financial discipline and restoring institutional stability in the cooperative sector.
Sanfebagar Road Division terminates Rs 399.9 million road contract in Achham
The Road Division Office in Sanfebagar has terminated a strategic road construction contract worth Rs 399.9 million in Achham after the project recorded only 19.83 percent physical progress. The contract, intended to connect Mangalsen with surrounding rural areas, was initially signed around mid-2022, with completion scheduled for April 2025. The deadline was subsequently extended to April 2026, but progress remained significantly below expectations. Following the termination, authorities have demanded the recovery of Rs 382.39 million through the required deposit process. The office has also terminated six other long-delayed contracts dating back to 2019. These include maintenance works on the Sanfe-Martadi and Chaukhutte roads, as well as construction projects in Bajura and Mangalsen. The action is part of efforts to address persistent delays in road infrastructure projects and ensure that stalled construction works move forward.
Dashain holidays draw more than 20,000 visitors to Chitwan National Park
Chitwan National Park welcomed 20,087 visitors during the Dashain festival period, following the resumption of jeep safaris inside the park on October 9. According to the park’s information officer, the visitors comprised 11,891 Nepalis, 7,365 international tourists and 831 tourists from South Asian Association for Regional Cooperation (SAARC) member countries. The park attracts visitors seeking to observe rare wildlife, including the one-horned rhinoceros, Bengal tiger, elephants, bears and crocodiles, along with a wide variety of bird species. The park generated approximately Rs 17.3 million in revenue from the visitors during the period. Although jeep safaris inside the national park are suspended during the monsoon season, jeep and elephant safaris continue to operate in the buffer zone and community forests. The recent sighting of a rare Bengal tiger has further heightened interest in wildlife safaris, adding to the park’s appeal among domestic and international tourists.
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