KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The developments reflect Nepal’s ongoing efforts to strengthen economic governance, expand investment opportunities and improve its international economic standing, alongside persistent structural and administrative challenges. The extension of the country’s least developed country (LDC) graduation preparation period until 2029 offers additional time to address weaknesses in industrial capacity, export competitiveness and institutional performance. However, the country’s public debt exceeding Rs 3 trillion highlights growing fiscal pressure and the importance of ensuring that borrowed resources generate productive economic returns.
In the financial sector, NEPSE’s slight decline despite nearly Rs 8.9 billion in turnover indicates continued market activity amid mixed investor sentiment. Falling gold and silver prices also reflect fluctuations in the domestic precious metals market.
Governance and regulatory developments show increased institutional efforts to enforce accountability, including recovering 15.36 hectares of public land, blacklisting procurement violators, regulating manpower agencies and strengthening meat inspection. However, disputes over local government administration suggest continuing challenges in institutional coordination and compliance.
Meanwhile, tourism and trade initiatives offer opportunities for economic diversification. Promotional campaigns, proposed recognition of additional 8,000-metre peaks, improved access to Langtang and stronger business links with Thailand could support foreign investment and tourism receipts. Karnali’s medicinal herb exports also demonstrate the potential of natural resources to generate regional revenue.
Overall, Nepal’s economic progress will depend on translating policy reforms, regulatory enforcement and emerging commercial opportunities into sustainable growth, stronger institutions, higher productivity and employment generation.
NEPSE sheds 5.45 points as turnover reaches nearly Rs 8.9 billion
The Nepal Stock Exchange (NEPSE) closed lower on Friday, with its benchmark index declining by 5.45 points to settle at 2,690.15 points. According to NEPSE, total trading turnover reached Rs 8.89 billion, with approximately 22.8 million shares traded during the session. Share prices of 102 companies advanced, while 169 declined. Eight companies recorded no change in their share prices. Beni Hydro emerged as the top gainer, with its share price climbing 14.99 percent. Other companies registered gains of up to 12.11 percent, while the steepest decline stood at 4.08 percent. In terms of transaction value, Lumbini Bikas Bank recorded the highest turnover at Rs 320 million, followed by Shivam Cements with Rs 300 million. The development bank, mutual fund, non-life insurance, others and trading sectors ended in positive territory, while the remaining sectors recorded losses.
Gold price falls by Rs 3,200 to Rs 280,300 per tola
Gold and silver prices declined in Nepal’s domestic market on Friday, October 30, the final trading day of the week. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold fell by Rs 3,200 per tola (11.66 grams), while silver dropped by Rs 105 per tola. Following the latest adjustment, hallmark gold is being traded at Rs 280,300 per tola, while silver is priced at Rs 3,825 per tola. On Thursday, gold was traded at Rs 283,500 per tola, while silver stood at Rs 3,930. The latest figures reflect a decline in the domestic prices of both precious metals compared with the previous trading session.
UN extends LDC graduation preparation period for Nepal
The United Nations General Assembly has unanimously approved an extension of the preparatory period for Nepal and Bangladesh to graduate from the least developed country (LDC) category until November 24, 2029. The decision was taken during the UN General Assembly’s 81st session on Thursday, according to the Permanent Mission of Nepal to the United Nations in New York. The extension provides Nepal with additional time to undertake essential structural and institutional reforms before graduating from the LDC category. Nepal has pledged to utilize the extended period to enhance productive capacity, strengthen institutions and accelerate economic and social transformation. The additional time is expected to help the country achieve a smooth, sustainable and irreversible transition from the LDC category.
Ministry freezes bank accounts of three local governments over employee transfer dispute
The Ministry of Federal Affairs and General Administration has withdrawn the financial and administrative powers of chief administrative officers in three local government units and ordered the freezing of their bank accounts following a dispute over employee transfers. The affected local governments are Kanakasundari Rural Municipality in Jumla, Jirabhawani Rural Municipality in Parsa and Budhanilkantha Municipality in Kathmandu. According to the ministry, employees transferred from these local units failed to report to their newly assigned workplaces and instead continued working at their previous offices. Meanwhile, the local governments concerned did not allow the newly appointed chief administrative officers to assume their responsibilities. In response, the ministry revoked the authority of the existing officials and instructed the local governments to immediately facilitate the newly appointed chief administrative officers in taking charge with full administrative and financial powers. The ministry also notified the respective District Treasury Controller Offices and requested them to make the necessary arrangements to regulate transactions through the affected bank accounts.
Nepal’s public debt exceeds Rs 3 trillion amid increased first-quarter borrowing
Nepal’s outstanding public debt has surpassed Rs 3 trillion following a significant increase in borrowing during the first quarter of the fiscal year 2026/27. According to the latest monthly report of the Public Debt Management Office, covering the period up to mid-October, the country’s total outstanding public debt reached Rs 3,009.11 billion, equivalent to Rs 3.009 trillion. Foreign debt accounts for the larger portion of the total liability, amounting to Rs 1,598.80 billion or 53.13 percent. The remaining Rs 1,410.31 billion represents domestic borrowing. The country’s debt burden increased by Rs 123.32 billion during the first three months of the current fiscal year alone. To finance government expenditure and other obligations, the government raised Rs 100 billion through domestic borrowing and secured an additional Rs 23.32 billion in external loans during the review period. The government has set an annual borrowing target of Rs 658.28 billion for the current fiscal year.
Rawal Commission report leads to transfer of 15.36 hectares of Kathmandu land to government ownership
A total of 15.36 hectares, equivalent to 302 ropanis, of land spread across seven wards of Kathmandu Metropolitan City has been registered in the name of the Government of Nepal following the implementation of the Rawal Commission’s report on government and public land. The Land Administration Office in Dillibazar removed the areas identified as encroached upon in the commission’s fiscal year 1995/96 report from the respective land parcels and registered them under government ownership. The affected areas are located in wards 4, 5, 8, 9, 10, 12 and 29. A committee formed by the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has started implementing the commission’s recommendations by separating the encroached portions from individual land parcels and transferring them to the government’s name. The Rawal Commission was established to investigate the status of government and public land and recommend measures for its protection. Its report identified various plots that had been encroached upon or registered under private ownership and proposed steps to restore them to the state.
Karnali generates over Rs 41.7 million from medicinal herb exports
Karnali Province collected more than Rs 41.7 million in revenue from the export of medicinal herbs during the last fiscal year, according to the Ministry of Industry, Tourism, Forest and Environment. The revenue was generated through the collection and sale of 58 different species of medicinal herbs. Information Officer Mahesh Nepali said lichen, locally known as jhyau, contributed the largest share of the revenue. The province collected more than Rs 9.5 million from exporting 181,609 kilograms of lichen, with an applicable tax of Rs 50 per kilogram. Similarly, the export of 96,792 kilograms of jatamansi generated Rs 8.7 million at a tax rate of Rs 75 per kilogram. Yarsagumba contributed another Rs 7.5 million in revenue, with 251.656 kilograms exported at a rate of Rs 31,000 per kilogram. The sale of 34,445 kilograms of katusi generated Rs 2.3 million, while 41,732 kilograms of setak chini contributed Rs 2,046,575. Other significant revenue sources included timur, which generated Rs 1.9 million, shilajit with Rs 977,850, sugandhawal with Rs 950,580 and rittha with Rs 947,838. The ministry reported that a total of 2,158,582.945 kilograms of medicinal herbs were collected during the fiscal year, of which more than 1.9 million kilograms were exported outside the province.
Nepal Tourism Board invites content creators and photographers for international promotion campaign
The Nepal Tourism Board has called for applications from travel content creators, videographers and photographers to participate in a nationwide tourism promotion campaign targeting international audiences. The initiative aims to showcase Nepal’s natural landscapes, Himalayan geography, cultural heritage and diverse traditions through digital platforms and social media. The campaign will focus on promoting both well-known Himalayan destinations and lesser-explored tourist locations across the country by using visual storytelling and digital content. Interested creative professionals have been asked to submit their portfolios, contact information and social media profile links by November 5. Through the initiative, the board aims to engage emerging digital creators in promoting Nepal’s tourism identity, reaching wider international audiences and attracting more foreign visitors through engaging visual content.
Tourism minister seeks international recognition for six additional Nepali peaks above 8,000 metres
Minister for Culture, Tourism and Civil Aviation Khadga Raj Paudel has announced plans to secure international recognition for six additional Nepali mountain peaks exceeding 8,000 metres during the 2026 General Assembly of the International Climbing and Mountaineering Federation (UIAA), scheduled to take place in Kathmandu. The government intends to submit a formal proposal seeking separate international recognition for Yalung Kang (8,505 metres), Kangchenjunga South (8,476 metres), Kangchenjunga Central (8,473 metres), Lhotse Central (8,410 metres), Lhotse Shar (8,400 metres) and Yalung Kang West (8,077 metres). If the proposal receives approval, the number of internationally recognized 8,000-metre peaks will increase from 14 to 20, with Nepal accounting for 14 of them. The initiative is expected to strengthen Nepal’s position as a major global mountaineering destination while creating further opportunities for adventure tourism and Himalayan research.
Airport transport service serves over 1.3 million passengers annually
The Airport Air Passenger Transport Service Management has reported transporting more than 1.3 million domestic and international passengers every year through its services at Tribhuvan International Airport. The company operates round-the-clock transportation facilities to help arriving passengers and tourists reach their initial destinations conveniently. According to its chairman, the service caters to approximately 4,000 passengers daily and currently operates a fleet of 208 tourist vehicles. The chairman said the organized transport service has made travel more convenient and comfortable for visitors arriving in Nepal. He added that the company is continuously working to improve the safety, efficiency and management of its services in response to the growing number of tourists. However, he expressed concern over competition from private vehicles allegedly operating passenger transport services illegally for commercial purposes. Established in 2010, the company currently provides employment opportunities to more than 450 self-employed drivers and other staff members.
NRNA officials discuss citizenship rights and development fund with Foreign Ministry
Officials of the Non-Resident Nepali Association (NRNA) have held discussions with Pushpa Raj Bhattarai, joint secretary of the Labor Migration and Nepali Diaspora Coordination Division at the Ministry of Foreign Affairs, regarding issues affecting Nepalis living abroad. The meeting covered the association’s upcoming conferences scheduled for December and January, progress on the NRNA Development Fund, and the implementation status of non-resident Nepali citizenship. Participants placed particular emphasis on ensuring that constitutional rights granted through non-resident Nepali citizenship are effectively implemented. They also discussed the need to simplify the associated legal and administrative procedures. Both sides highlighted the importance of continued coordination, cooperation and necessary policy initiatives to address the rights, interests and concerns of the Nepali diaspora.
Public Procurement Office blacklists 120 firms for violating procurement rules
The Public Procurement Monitoring Office has blacklisted 120 firms and companies since March 27 for failing to follow public procurement laws and procedures or meet their contractual obligations. Operating under the Office of the Prime Minister and Council of Ministers, the office said the action forms part of broader efforts to improve transparency, promote competition and strengthen accountability in public procurement. As part of the reform process, the government has introduced the second amendment to the Public Procurement Act, 2007, along with the 15th and 16th amendments to the Public Procurement Rules, 2007. The office has also revised nine categories of standard bidding documents related to the procurement of goods and construction works to bring them into line with the amended provisions. Additionally, 712 employees involved in public procurement have received training. Of these, 556 participated in programmes conducted by the office itself, while the remaining 156 were trained in coordination with other public agencies. The government aims to strengthen procurement discipline, ensure fair competition and improve accountability through these measures.
Tourist arrivals increase in Langtang region following restoration of transport access
Tourist arrivals in the Langtang region have increased following the restoration of transportation access through the construction of a temporary Bailey bridge over the Phalakhola River in Betrawati. Local tourism entrepreneurs have welcomed the renewed flow of domestic and international visitors, who have resumed trekking activities in the mountainous region of Rasuwa district. Langtang can be reached through a trekking route beginning from Dhunche, the district headquarters, or Syabrubesi. The journey generally takes around two days and passes through Bharkhu, Brabal, Bamboo, Rimche and Lama Hotel. Local authorities and park officials said hotels, lodges and other tourism-related facilities in the region are fully prepared to accommodate visitors during the peak autumn trekking season in October and November. The restoration of transport connectivity is expected to further support tourism activities and benefit local businesses that depend on trekkers and visitors.
Pokhara and Thai entrepreneurs explore trade partnerships and investment opportunities
Business representatives from Pokhara and Thailand have discussed expanding commercial partnerships, promoting bilateral investments and exploring cooperation in tourism, information technology and trade. The discussions took place on Thursday between a Thai delegation led by Deependra Desar, an adviser to Thailand’s Ministry of Industry, and representatives of the Pokhara Chamber of Commerce and Industry. Desar, a Nepali-origin entrepreneur with long-standing involvement in Thailand’s technology and trade sectors, expressed his commitment to helping Nepali businesspeople explore opportunities in the Thai market. Meanwhile, Shobha Gautam, president of the Pokhara Chamber of Commerce and Industry, proposed promoting products manufactured by small and medium-sized enterprises in the domestic market while expanding Nepal’s export capacity. Both parties also agreed in principle to organize a joint business exhibition to encourage commercial cooperation and establish lasting economic partnerships between the two sides.
NEA schedules eight days of power cuts in Kathmandu for underground cable installation
The Nepal Electricity Authority (NEA) has announced scheduled power interruptions across several areas of Kathmandu for eight consecutive days, from October 29 to November 5, to facilitate the installation of underground electricity distribution cables. According to the authority, electricity supply will be disrupted daily for five and a half hours, from 10:30 am to 4:00 pm, in areas served by the Kuleshwor and Baneshwor distribution centres. The scheduled interruptions began on October 29 in the High Vision Colony area. On October 30, power cuts were planned along the Kalanki Ring Road to Syuchatar section, followed by the Kalanki Chowk to Dhungeadda area on October 31. The schedule also covers Bafal on November 1, the UN Park to Bijuli Bazar stretch on November 2, Dhaulagiri Housing on November 3, Hajma Bridge on November 4 and Satungal on November 5. The planned disruptions are intended to support infrastructure upgrades and facilitate the installation of underground electricity distribution lines.
Egg farmers raise wholesale support prices by up to Rs 200 per carton
The Nepal Layers Poultry Farmers Association has increased wholesale support prices for eggs in response to rising demand during the festive and winter seasons. According to the association’s chairperson, the revised rates were decided at a meeting held in Pokhara on Thursday, updating the prices previously fixed in Kathmandu on October 23. Under the new rates, the prices of XL, large and medium-sized eggs have increased by Rs 200 per carton, while small eggs have become Rs 100 more expensive per carton. The price of an XL-sized carton weighing between 14.5 and 14.8 kilograms has risen from Rs 3,700 to Rs 3,900. Similarly, large-sized cartons weighing 13.5 to 13.8 kilograms now cost Rs 3,800, up from Rs 3,600. Medium-sized cartons weighing 12.5 to 12.8 kilograms have increased from Rs 3,500 to Rs 3,700, while the price of small cartons weighing more than 11 kilograms has been revised from Rs 3,100 to Rs 3,200. Meanwhile, retail prices remain unchanged at Rs 25 for a single large egg and Rs 45 for two medium-sized eggs.
Manpower agencies linked to Malaysia’s FWCMS system evade investigation
Several Nepali recruitment agencies associated with Malaysia’s Foreign Workers Centralized Management System (FWCMS) have reportedly gone out of contact following investigations initiated by the Department of Foreign Employment. A total of 25 principal agencies and 250 associate agencies had previously been authorized to operate under the system. Authorities subsequently launched formal investigations and obtained arrest warrants from the Foreign Employment Tribunal against individuals connected to the agencies. One operator was arrested but later released following a writ petition filed at the Supreme Court. As investigating officials began summoning the remaining agency representatives to record their statements, several executives reportedly became unreachable. The department has warned that agencies and individuals who fail to appear before investigators within 35 days could face measures including the freezing of bank accounts, suspension of travel-related authorizations and further legal action. Authorities have indicated that enforcement measures will be applied to recruitment agencies that fail to comply with the investigation process.
Livestock department establishes 15 task forces in Bagmati to enforce meat inspection laws
The Department of Livestock Services has formed 15 task forces across Bagmati Province to strengthen enforcement of the Animal Slaughterhouse and Meat Inspection Act, 1999. Of the newly established teams, three will operate in the Kathmandu Valley, while the remaining 12 will work under the leadership of deputy secretaries across various districts, including Makwanpur, Sindhuli, Ramechhap, Dolakha, Sindhupalchok, Kavrepalanchowk, Dhading, Nuwakot, Rasuwa and Chitwan. Working in coordination with local governments, the task forces will conduct awareness and training programmes for meat traders and vendors on mandatory animal health examinations before and after slaughter, proper refrigeration, weight-based packaging, pricing standards and official government branding. The department has also emphasized that meat businesses must register their shops, maintain proper transaction records and slaughter animals only at government-designated facilities. The initiative aims to improve meat safety standards, protect public health and reduce the risk of diseases spreading through improperly handled meat products.
FNCCI welcomes UN extension of Nepal’s LDC graduation preparation period
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the United Nations General Assembly’s decision to extend Nepal’s preparation period for graduation from the least developed country (LDC) category until late November 2029. The federation said the additional three years would provide an important opportunity to strengthen the country’s economic, structural and institutional foundations before completing the transition. It also highlighted several challenges that need to be addressed during the extended preparation period, including high production costs, a weak industrial base and limited diversification of exports. The FNCCI has called on the government and private sector to work together to improve export competitiveness, lower production expenses, strengthen quarantine infrastructure and support the growth of small and medium-sized enterprises. The federation emphasized that coordinated efforts during the extended transition period would be important in preparing Nepal’s economy for sustainable LDC graduation.
SEBON forms seven-member committee to develop new financial instruments
The Securities Board of Nepal (SEBON) has established a seven-member committee to study, develop and facilitate the introduction of new financial instruments in the country’s capital market. The committee, coordinated by SEBON’s acting executive director, includes representatives from Nepal Rastra Bank, the Nepal Stock Exchange (NEPSE) and the Merchant Bankers Association of Nepal. Its primary responsibility is to examine the legal, technical and institutional requirements for introducing a wider range of investment instruments and reducing the capital market’s heavy dependence on conventional share trading. The proposed instruments include corporate bonds, government bonds, municipal bonds, green bonds, infrastructure bonds and exchange-traded funds (ETFs). The committee will also examine the feasibility of introducing real estate investment trusts (REITs), infrastructure investment trusts (InvITs) and derivative products, including commodity futures and currency derivatives. The initiative is aligned with the objectives outlined in the capital market development roadmap and is intended to diversify investment opportunities while broadening the country’s financial market.
Police arrest man over alleged illegal cryptocurrency transactions worth Rs 2.16 billion
Police have arrested a 28-year-old man from Dhanusha on suspicion of conducting illegal cryptocurrency transactions exceeding Rs 2.16 billion. According to the Central Police Newsroom, the suspect, Sunil Kumar Yadav of Sabaila Municipality-12, allegedly carried out cryptocurrency transactions worth Rs 2,160,120,821. A team from the Kathmandu Valley Crime Investigation Office arrested Yadav in coordination with Dhanusha Police after receiving information about large-scale cryptocurrency transactions and betting activities conducted through online platforms and mobile applications. Police said the investigation was initiated following reports that individuals were facilitating and participating in betting activities through various electronic platforms while also engaging in substantial cryptocurrency transactions. Further investigation into the alleged activities is underway.
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