KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy is showing mixed signals, with the stock market slipping below 2,800 points despite a rise in daily turnover, while gold prices are nearing record highs amid broader inflation concerns. On the energy front, the country is exporting a record 1,130 MW of electricity due to robust monsoon-driven hydropower generation, and the Nepal Electricity Authority is prioritizing pumped storage to meet growing demand.
At the policy level, Finance Minister Paudel has pledged to address the informal economy and has strengthened regional ties with both India and China through trade and infrastructure discussions. Meanwhile, inflation in Kathmandu Valley stands at 3.77%, and food price pressures are expected to intensify during the upcoming Dashain and Tihar festivals due to supply disruptions.
Positive signs emerge from development banks posting increased profits, a surge in infrastructure plans including green hydrogen and smart waste systems, and resumed international flights signaling a slow revival in tourism.
NEPSE slips below 2,800 as daily turnover rises to Rs 8.09 billion
Nepal’s stock market saw a notable decline on Thursday, closing at 2,781 points—a drop of 38.10 points from the previous day’s 2,819. The index remained above 2,800 until around 1:30 PM but trended downward later in the day. Despite the dip in the index, market activity increased, with total turnover rising to Rs 8.09 billion from Wednesday’s Rs 7.68 billion. Of the listed companies, 24 recorded gains, while 227 saw their stock prices fall.
Gold price climbs to near-record high in local market
Gold prices in Nepal rose by Rs 400 per tola on Thursday, reaching Rs 199,400 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price was Rs 199,000 per tola on Wednesday, marking a continued upward trend.
Nepal exports 1,130 MW of electricity daily amid rainy season surge
Nepal has reached a new milestone in power exports, supplying 1,130 megawatts of electricity daily to India and Bangladesh. The increase is driven by higher hydropower production during the monsoon season, supported by government incentives to attract private sector investment. Energy Minister Deepak Khadka confirmed the figures, underscoring the growing regional energy cooperation.
Finance minister Paudel pledges firm action to formalize informal economy
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel announced the government’s commitment to formally integrate the informal economy. Speaking at a program in Kathmandu on Thursday, he said the government will initiate a comprehensive study on this issue. “The question of how to formalize the informal economy is deeply important and has long concerned us,” he remarked.
Pokhara airport prepares for Australia-bound flights via Sichuan Airlines
Pokhara International Airport is set to launch flights to Australia via China’s Sichuan Airlines. The airline has requested flight permissions from Nepal’s Civil Aviation Authority to operate the route through Chengdu. According to CAAN spokesperson Gyanendra Bhul, informal discussions have taken place and preparations are underway to grant formal approval.
Dashain and Tihar expected to bring price hikes for Nepali consumers
Consumers in Nepal are likely to face rising prices during this year’s Dashain and Tihar festivals due to monsoon-related disruptions. Floods and landslides have severely blocked two key trade routes in the north, hindering the supply of goods. The shortfall is expected to push up prices as demand increases during the festive season.
Finance minister meets Chinese customs official to discuss trade, infrastructure
Finance Minister Bishnu Prasad Paudel held a courtesy meeting with Wang Lingjun, Vice Minister of China’s Customs Administration. The two discussed improving customs point management, reconstructing flood-damaged infrastructure at the Rasuwa checkpoint, advancing past road upgrade agreements, and enhancing Nepal-China trade cooperation.
NEA prioritizes pumped storage projects to meet rising energy demand
To address growing electricity demand and ensure long-term energy security, the Nepal Electricity Authority is prioritizing pumped storage hydropower projects. Feasibility studies for three key projects—Kulekhani–Sisneri (100 MW), Syarpudaha (334 MW), and Hulingtar (495 MW)—are nearing completion, with construction set to follow.
Underground power cable work in Pokhara and Bharatpur faces delays
The Nepal Electricity Authority’s efforts to install underground power lines in urban areas of Bharatpur and Pokhara are progressing slower than expected. In Bharatpur, 80 percent of the work has been completed, while only half of the project is done in Pokhara’s Kundahar and Lakeside areas.
Jazeera Airways and Thai AirAsia to resume flights from Bhairahawa
Jazeera Airways and Thai AirAsia are preparing to restart services from Gautam Buddha International Airport in Bhairahawa. Both airlines had previously suspended operations. Thai AirAsia plans to resume flights from October 26, operating twice a week as part of its winter schedule. Jazeera Airways is also planning seasonal operations. Nepal Airlines, meanwhile, has not resumed its previously regular flights from the airport.
Nepal signs deal with South Korea to study green hydrogen project
Nepal Investment Board has signed a memorandum of understanding (MoU) with South Korea’s G-Philos Company Ltd to conduct a feasibility study for setting up a green hydrogen and fuel cell plant in Nepal. The agreement was signed by Board CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. The study will be completed within ten months. G-Philos had submitted its proposal on April 28 to develop the plant under a public-private partnership model.
Development banks post Rs 7.97 billion profit in fiscal year 2024/25
Eight national-level development banks in Nepal posted a combined net profit of Rs 7.97 billion in FY 2024/25—an increase of 22.01 percent compared to the previous year’s Rs 5.74 billion. The rise is credited to higher net interest income, increased fee-based earnings, and reduced loan loss provisions.
Government waives customs duties on Indian Army aid to Nepal Army
The Government of Nepal has approved full customs exemptions on aid materials provided by the Indian Army to the Nepal Army. The exemption, issued under Section 18(2) of the Economic Act, 2024, applies to medical equipment, drones, and other supplies valued at Rs 103.78 million. The entire consignment will enter Nepal duty-free.
Kathmandu Valley records 3.77 percent inflation rate in FY 2024/25
Kathmandu Valley recorded an average consumer inflation rate of 3.77 percent in fiscal year 2081/82. In comparison, inflation stood at 4.14 percent in the Terai, 3.86 percent in the hills, and 4.89 percent in the Himalayan region. Urban areas saw an average inflation of 3.94 percent, while rural areas experienced 4.40 percent.
Tanahun promotes maize seed production on over 4,000 ropani
The Agriculture Knowledge Center in Tanahun has implemented a maize seed production initiative across 4,085 ropani of farmland during FY 2024/25. The project involved 20 farmer groups. According to the Center’s chief, Gopal Sharma Lamichhane, the program is a priority of the Province’s Ministry of Agriculture, and each participating group is required to cultivate a minimum of 100 ropani.
Nepal Tech Market unveils AI-based smart waste management system
Nepal Tech Market has launched an advanced smart waste management system using artificial intelligence to modernize garbage collection and disposal. The system aims to improve efficiency, transparency, and public convenience, contributing to a cleaner urban environment.
Prabhu Cable Car signs credit rating deal ahead of IPO
Prabhu Cable Car & Tourism Limited has signed a credit rating agreement with Care Ratings Nepal as part of preparations for its initial public offering (IPO). The company is backed by investments from Prabhu Urja Krishi Tourism Development, Prabhu Holdings & Hydro, and other firms under the Prabhu Group.
Kathmandu Marketing and Trading House logs Rs 45.38 billion in 9 months
Kathmandu Marketing and Trading House reported a business turnover of Rs 45.38 billion during the first nine months of the last fiscal year. Annual revenues in recent years were Rs 58.67 billion (2024), Rs 53.74 billion (2023), Rs 42.22 billion (2022), Rs 28.93 billion (2021), and Rs 26.42 billion (2020).
Tiger Palace by Soaltee nearly doubles revenue in one year
Tiger Palace, operated by Tiger One Pvt. Ltd. under Soaltee, generated Rs 420 million in revenue in FY 2024/25—up from Rs 238 million in 2024. The company has shown steady growth, with prior earnings of Rs 129 million in 2023, Rs 76 million in 2022, and Rs 16 million in 2021.
Himal Star Urja shares listed on NEPSE following IPO
Shares of Himal Star Urja Company Limited have been listed on NEPSE following the company’s IPO issuance. A total of 3.73 million shares, including 1.119 million issued to the public, are now available for trading. NEPSE has set the opening price range between Rs 99.17 and Rs 297.51.
Swastik Microfinance IPO allotted to over 19,000 applicants
Swastik Laghubitta Bittiya Sanstha has completed its IPO allotment process, with 19,519 applicants receiving 10 shares each. The IPO received applications from over 2.44 million individuals for a total of 20.74 million shares. The allotment was managed by Nabil Investment Banking.
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