KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and social landscape reflects both resilience and volatility as the country navigates through post-protest recovery and festive season demands. Share trading has resumed after a politically driven suspension, while banks reported Rs 9.37 billion in profits despite a slight dip in deposits and marginal growth in share-pledged loans.
The Gen-Z protests caused estimated damages of Rs 36 billion, triggering tightened Nepal–India border security and scrutiny of insurance ratings. Meanwhile, government spending has reached only 9.17% of the annual budget by mid-September, suggesting a slow fiscal rollout.
On the trade front, the opening of the Korala border has created new commercial prospects amid disruptions at traditional crossings, and Ncell’s 20-year milestone highlights telecom sector growth. Socially, rising passenger flow at Gongabu buspark and appeals from domestic banana producers signal early festive momentum, while tourism spots like Bhojpur gain popularity.
The drop in gold prices, launch of SY Panel’s IPO, and Anand Industries’ strong trade performance underscore the ongoing economic churn amid both uncertainty and opportunity.
Share trading to resume today
Share trading, which was suspended due to the Gen-Z protests, will restart today (September 18). The Securities Board of Nepal had initially halted trading amid unrest. Although the situation had calmed, the continued market closure drew public criticism. On Tuesday, the Board directed that normal operations of the secondary market resume.
Gold price drops by Rs 1,000 per tola
The price of gold in Nepal fell by Rs 1,000 per tola, settling at Rs 216,100 on Wednesday. This marks a drop compared to Tuesday’s rate. According to the Federation of Nepal Gold and Silver Dealers Association, silver prices also saw a decline on the same day. Gold had been hitting record highs in the weeks prior.
Govt spending reaches 9.17% of annual budget by mid-September
By September 16, the government had used 9.17% of its annual budget for the current fiscal year. According to the Office of the Auditor General, 9.67% of recurrent, 1.56% of capital, and 15.89% of financial management budgets were spent in the first two months. Of the total Rs 1,964.11 billion budget, Rs 180.17 billion was expended, including Rs 114.18 billion out of the Rs 1,180.98 billion allocated for recurrent expenses.
Bank deposits dip slightly to Rs 7.208 trillion
Total deposits in banks and financial institutions declined by Rs 55.79 billion (0.8%) to Rs 7,208.09 billion in the first month of fiscal year 2025/26. A year earlier, deposits had also dropped by Rs 43.45 billion (0.7%) during the same period. However, on an annual basis, total deposits saw a 12.5% increase.
Share-pledged loans total Rs 3.83 billion in first month of current fiscal year
In just the first month of the current fiscal year, banks and financial institutions issued Rs 3.83 billion in loans backed by shares. Data from Nepal Rastra Bank shows the total value of such loans reached Rs 144.53 billion by the end of that month, up from Rs 140.70 billion at the end of the previous fiscal year. Loans exceeding Rs 10 million now stand at Rs 118.80 billion.
Gen-Z protests cause estimated Rs 36 billion in damages
Initial estimates indicate that industries affiliated with the Confederation of Nepalese Industries (CNI) sustained damages worth approximately Rs 36 billion due to the arson and vandalism linked to the Gen-Z protests. The assessment is still ongoing, and losses could rise further. Around 15,500 direct jobs were reportedly impacted nationwide.
Banks post Rs 9.37 billion profit in first month of fiscal year
Banks and financial institutions earned Rs 9.37 billion in profits during the first month of fiscal year 2025/26, according to data from Nepal Rastra Bank and the Financial Institutions Regulation Department. In comparison, profits for the entire 2024/25 fiscal year stood at Rs 78.80 billion, with Rs 10.16 billion earned in its final month. Although both interest income and expenses declined, improved liquidity and intensified competition narrowed the interest rate spread.
Share-pledged loans rise 2.7% from previous month
Margin-based loans backed by shares increased by Rs 3.83 billion in the first month of the fiscal year, representing a 2.7% rise from the last month of the previous year. Nepal Rastra Bank data confirms that total share-pledged loans stood at Rs 144.53 billion by mid-August.
Insurance sector ratings under scrutiny after protests
In the wake of the Gen-Z protests, ratings for around a dozen companies are under observation. ICRA Nepal has placed six insurance companies, five property insurers, and two tourism-related firms on “Watch with Negative Implication.” The agency noted increased risk exposure across the general insurance sector, with reinsurance firms likely to bear a significant portion of the losses.
Nepal–India border security strengthened
Security along the Nepal–India border has been reinforced following the Gen-Z protests. Citizens of both countries are now required to show valid ID when crossing the border. Authorities implemented this measure to prevent political figures from fleeing via land routes. Similar controls were temporarily introduced even during the monarchy. Coordination between the two countries’ security forces is ongoing to enforce this rule.
Passenger rush begins at Gongabu new buspark
The New Buspark in Gongabu, Kathmandu, is experiencing a surge in passengers ahead of the major Nepali festivals, Vijaya Dashami and Tihar. The rush has intensified following the closure of Tribhuvan University and its affiliated campuses after the Gen Z protests on September 8–9. Students are now returning to their home districts. Pankaj Malla, HR head at Lotsa Multipurpose Pvt. Ltd., which manages the buspark, confirmed the growing congestion.
Ncell marks 20 years: from 6% to full mobile coverage
When Ncell, previously known as Mero Mobile, launched its services, only 6% of Nepal’s population used mobile phones. Today, mobile service coverage has exceeded 100%. The company reports that it serves more than 14 million users. Established with private sector investment, Ncell’s entry as a multinational telecom provider brought competition that spurred reforms in government-run telecom services, enhancing their efficiency and responsiveness.
Call for lasting solution to Kodari Eco issues on Araniko Highway
Concerns are growing over persistent problems along the Kodari Eco section of the Araniko Highway in Sindhupalchok’s Bhote Koshi Rural Municipality-2. Stakeholders have urged Transport Minister Kulman Ghising to find a long-term fix. Traders and passengers face annual disruptions—especially during Dashain—due to poor road conditions, which also hinder trade with China via the Tatopani border.
Banana growers request halt on imports during festival season
Local banana producers are urging buyers not to import bananas, stating that domestic production is sufficient to meet demand during the Dashain, Tihar, and Chhath festivals. Bishnuhari Panta, chair of the Nepal Banana Producers Federation, said domestic output is strong and capable of supplying the market. The federation has formally requested all national fruit and vegetable wholesale associations to refrain from importing bananas during the festive period.
New trade route via Korala boosts opportunities in Gandaki and Lumbini
Commercial trade through the Korala border in Mustang has opened up new economic possibilities in the Gandaki and Lumbini provinces. With the Tatopani and Rasuwa trade routes to China disrupted, Nepali traders have turned to Korala for importing goods. Trade is now flowing from Mustang and Myagdi to Kathmandu. Originally opened for local residents in November 2023, the border has now become a hub for broader commercial activity.
Tourist interest grows in Suntale–Baghkhore area of Bhojpur
The Suntale–Baghkhore region in Bhojpur is gaining popularity among domestic tourists. Located near the district headquarters, the area offers mountain views, local cuisine, and cultural diversity. Hotelier Ganesh Tamang noted a steady increase in daily visitors, drawn by both the natural beauty and the unique local experiences.
SY Panel IPO to launch on September 23
SY Panel will open its initial public offering (IPO) on September 23. Initially planned for September 14, the IPO was postponed due to unforeseen circumstances, according to issue manager Prabhu Capital. The company will issue 52,32,548 shares, equivalent to 40% of its total capital, with a total value of Rs 1.3 billion. Priority will be given to industrially affected areas and Nepali citizens working abroad.
Anand Industries posts Rs 1.08 billion in trade for FY 2024/25
Anand Industries recorded Rs 1.08 billion in trade volume in fiscal year 2024/25. This marks a 19% increase from Rs 913 million in 2024 and Rs 760 million in 2023. The company markets processed rice under the brand name Revolution. The rise in trade is attributed to both increased rice prices and higher sales volumes.
Comment