KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent economic landscape in Nepal reflects a mix of structural vulnerabilities and sectoral resilience. The Gen Z protests in early September triggered widespread damage, leading to over Rs 20.70 billion in insurance claims, significant disruptions in tourism, halted share trading due to a sharp market decline, and reduced tax revenue.
The unrest also delayed infrastructure rollouts like the embossed number plate system and forced the extension of social security deadlines. Meanwhile, the Nepal Rastra Bank responded to excess liquidity by withdrawing Rs 90 billion, although FDI remains underperforming, with only 31.9% of commitments materializing.
Despite these setbacks, some sectors showed positive trends: customs revenue at Birgunj and Mustang remained robust, mountain climbing fees boosted tourism revenue, and companies like Arun Valley Hydropower and Janata Cable Industries reported stable growth and returns. This juxtaposition highlights the country’s struggle to balance economic stability amid political unrest and policy implementation gaps.
Insurance claims exceed Rs 20.70 billion from Gen Z unrest
Insurers have received Rs 20.70 billion in claims related to looting, vandalism, and arson during the Gen Z movement. As of September 16, 1,984 claims were lodged with the Nepal Insurance Authority. The Oriental Insurance Company alone received Rs 5.14 billion in claims across 40 incidents, including damage to Hilton Hotel. Siddharth Premier and Shikhar Insurance reported the second and third highest claims.
Share market suspended after three negative circuit breaks
Trading was halted on Thursday after the NEPSE index triggered three successive negative circuit breakers, following its reopening after the turmoil of September 8–9. The index fell 4% within two minutes of market opening and ended the day down 6%. The trading group saw the largest drop at 9.34%, followed by general (7.48%), hotels and tourism (7.24%), and investment (7.18%).
Gold price drops in domestic market
Gold prices declined in Nepal on Thursday. The price of hallmark gold fell from Rs 216,100 per tola on Wednesday to Rs 215,200. Silver prices also dropped from Rs 2,550 to Rs 2,520 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
NRB withdraws Rs 90 billion in excess liquidity
Nepal Rastra Bank pulled Rs 90 billion from the banking system on Thursday using a deposit collection instrument. As of Wednesday, total system liquidity stood at Rs 204 billion. The 10-day tool was used to absorb part of the surplus liquidity amid concerns of excess money supply.
Less than one-third of FDI commitments materialize
Only 31.9% of committed foreign direct investment (FDI) in Nepal turns into actual inflow, according to Nepal Rastra Bank. The Economic Research Department reported that between 1995/96 and 2023/24, more than two-thirds of pledged FDI never entered the country, despite formal approvals.
Finance ministry orders Sharad Ojha to stop reporting for duty
The Ministry of Finance has directed Sharad Ojha, Chairman of the Nepal Insurance Authority, not to report to the office. Ojha was previously dismissed by Cabinet for lacking required qualifications. Despite a court order, he resumed duties on September 16. The ministry reaffirmed that he is not authorized to act in any capacity at the authority, according to Joint Secretary Tanka Prasad Pandey.
Embossed number plate rollout postponed indefinitely
The government’s plan to make embossed number plates mandatory from September 17 has been suspended indefinitely. The Gen Z protests on September 8–9 caused significant damage to the Department of Transport Management, forcing delays in implementing the previously announced directive.
Revenue collection hit by Gen Z protests
The Gen Z movement that began on September 8 disrupted tax collection, with tax offices closed and filing deadlines delayed. This affected government revenue for the month. Damage to private-sector structures through vandalism and arson also contributed to the shortfall.
Gen Z protests disrupt tourism sector
Tourism has taken a hit from the Gen Z protests, with many foreign tourists cancelling trips. According to NATTA President Kumar Mani Thapaliya, visitors postponed travel, canceled bookings, and delayed package purchases due to the unrest. Some tourists with confirmed hotel and flight reservations were stopped from traveling.
Social Security Fund extends contribution deadline
The Social Security Fund has extended the deadline for submitting contributions for the first month of the current fiscal year to September 21, 2025. The decision follows widespread disruption during the Gen Z protests, which caused damage to various private-sector facilities, said Executive Director Kabiraj Adhikar.
Mountain climbing revenue doubles after fee hike
The Department of Tourism reported that mountain climbing permit revenue has doubled within 15 days of implementing new fee structures, including those for Everest. Director Himal Gautam noted that although seasonal variation affects pricing, this autumn’s increased fees significantly boosted overall revenue.
Nepal Telecom offers special Constitution Day package
Nepal Telecom has introduced a special offer to mark Constitution Day and 10 years since the promulgation of the Constitution. The “Constitution Day Offer 2025” will run from September 18 to 20, 2082 BS, and includes 1 Mbps unlimited data for one day and 100 minutes of on-net voice calls.
Over 3,000 vehicles burned during Gen Z protest
Surveys following the September 9 Gen Z protests show that more than 3,000 vehicles were set on fire across seven provinces. Initial figures include 1,026 four-wheelers and 1,983 motorcycles or scooters, along with cars, jeeps, vans, three-wheelers, and heavy equipment.
Mustang customs collects Rs 97 million in three days
The Mustang Customs Office at Nhechung collected Rs 97.06 million in revenue over three days from goods imported via the Korala border with China. Since operations began 11 days ago, 161 electric vehicles and 85 medium cargo containers have passed through customs inspections.
Kaligandaki corridor 80% physically complete
The Kaligandaki Corridor, a national pride project, has reached 80% physical progress in the Gaindakot–Ramdi–Maldhunga section. Over 16 years, 234 km of the 293 km stretch has been paved and 36 bridges constructed, with six more nearing completion. The project spans Baglung, Gulmi, Palpa, Nawalpur, and includes the Kaligandaki highway section (Mirmi–Setibeni–Falebas–Armadi–Kushma) across Syangja and Parbat. Financial progress stands at 70%.
Birgunj Customs collects Rs 39.15 billion in two months
Birgunj Customs Office collected Rs 39.15 billion in revenue during the first two months of FY 2025/26, achieving 90.99% of its Rs 40.30 billion target. Chief Bishnu Prasad Gyawali said the September figures were strong despite recent challenges.
Tourist hotels in Sauraha face mass booking cancellations
Hotels in the Sauraha tourism hub are facing widespread booking cancellations. Following the September 8–9 Gen Z protests, tourists called off reservations even during peak season. Om Pandey, Chairman of the Sauraha Regional Hotel Association, said all September bookings were canceled, with cancellations continuing into future months due to negative international publicity.
Bunglal Hydropower IPO allotment completed
Bunglal Hydropower has completed the allotment of its IPO. Out of over 2.14 million applicants, 170,150 general investors received 10 shares each. A total of 23.34 million shares were requested during the public offering.
Arun Valley Hydropower declares 8.421% dividend
Arun Valley Hydropower has announced an 8.421% dividend for shareholders—8% as bonus shares and 0.421% in cash to cover tax liabilities. The distribution is subject to approval by the Electricity Regulatory Commission and the company’s general assembly. The company’s paid-up capital is Rs 3.84 billion, and its stock is currently trading at Rs 277 per share.
Janata Cable Industries reports Rs 1.49 billion in annual trade
Janata Cable Industries recorded Rs 1.49 billion in trade over the past fiscal year. This includes Rs 921 million in 2024, up from Rs 725 million in 2023. Trade grew by 62% year-on-year and 25% over five years (2020–2025), reflecting consistent growth and increased market reach.
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