KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic indicators showed mixed trends this week, with the stock market rebounding modestly after a sharp drop, and trading volume reaching Rs 9.18 billion. The Nepal Stock Exchange suspended its final 15-minute average method, while investors pushed key reforms to boost market stability.
Nepal Rastra Bank intervened by withdrawing Rs 70 billion to manage excess liquidity and released guidelines for exchanging damaged notes. In fiscal policy, the government allocated Rs 9.80 billion for subsidized loan interest and permitted companies to reserve shares for affected locals.
Tourism promotion resumed with Nepal’s active participation in the Dhaka fair, signaling a return to normalcy post-Gen-Z protests. Infrastructure progress included road and tunnel projects, though investment initiatives in Sudurpaschim remain uncertain.
Meanwhile, provinces like Bagmati and Birgunj revised budgets to prioritize reconstruction, and new industrial activities were reported in Hetauda. On the commodities front, gold and silver prices rose slightly, while traditional transport methods like mule caravans in Humla declined amid expanding road networks.
NEPSE shows modest rebound; trading hits Rs 9.18 billion
NEPSE climbed by 3 points on Sunday, recovering slightly after a sharp drop of 160.33 points last Thursday. The index closed at 111.70. Sunday’s trading volume was Rs 9.18 billion, boosting market capitalization by about 4.44%. Among the 252 companies traded, 224 saw gains while 28 saw their share prices fall. Nine companies hit the circuit limit with their stocks rising 10% each.
NEPSE suspends final 15 minute average method
The Nepal Stock Exchange (NEPSE) has suspended the “final 15 minute average” method of calculating the closing price starting today. The decision was made by the Securities Board of Nepal (SEBON), which instructed NEPSE to implement the change.
Rs 9.80 billion released for subsidised loan interest grants
The government has disbursed roughly Rs 9.80 billion under the 2025 concessional loan interest grant scheme. The Ministry of Finance said this covers loans issued in the current fiscal year, and the subsidies will also reimburse interest for the past seven quarters.
Gold and silver prices see moderate rise in market
Today, gold and silver prices in the market showed a modest increase. According to the Federation of Nepal Gold and Silver Dealers Association, gold reached Rs 217,100 per tola and Rs 186,130 per 10 grams. Silver also rose to Rs 2,620 per tola and Rs 2,246 per 10 grams.
NRB withdraws Rs 70 billion to curb excess liquidity
On Sunday, Nepal Rastra Bank withdrew Rs 70 billion through bids to reduce excess liquidity in the banking system. Deposits with the central bank are now over Rs 7.2 trillion. The NRB used deposit collection tools and standing deposit facilities, with only banks and financial institutions licensed as ‘A’, ‘B’, or ‘C’ participating.
NRB to exchange mutilated notes under conditions
Nepal Rastra Bank (NRB) and other financial institutions will exchange notes that are torn, soiled, partially burned, or dirtied. However, notes damaged during protests require verification, which must be provided by the police or relevant government agency. For routine damage, minor amounts can be exchanged without such formal recommendations.
Nepal claims readiness to welcome tourists again, says NTB
At the 12th Asian Tourism Fair in Dhaka (18 20 September), the Nepal Tourism Board (NTB) presented Nepal as fully prepared to host visitors again, following disruptions from the Gen Z protests. Nepali tourism companies participated actively, conveying to regional partners that travel and safety have returned to normal.
Investors push six reforms to improve stock market
A group of investors presented six proposals to NRB Governor Dr. Biswo Nath Poudel aimed at enhancing market performance. These include loosening restrictions on bank investments, altering limits tied to primary capital, removing ceilings on share backed personal loans, lifting dividend caps on microfinance institutions, and allowing more operational flexibility for such institutions.
Nepal Airlines to launch direct Kathmandu–Guangzhou route
Starting 25 September, Nepal Airlines will begin direct flights between Kathmandu and Guangzhou, China, according to Executive Chairman Yubaraj Adhikari. All technical preparations are done, and the airline has secured required permissions. There will be three flights per week on this route.
Public vehicles to use Nagdhunga tunnel during Dashain
Public transport leaving Kathmandu Valley for Dashain will use the Nagdhunga tunnel in an effort to ease congestion, as directed by Minister Kulman Ghising. Although two tunnels exist (one for exit, one for entry), only one will be operational immediately.
Companies may reserve up to 10% shares for locals affected by company operations
New securities regulations allow companies to set aside up to 10% of their issued shares for locals affected by their activities. If these reserved shares go unsold, they will be added to public offerings. Locals must visit designated collection centers with citizenship proof to claim their shares.
Contracts pending for paving 2,272 km of national road network
Contracts are still pending to pave 2,272 kilometers of key roads, including those under high profile projects like the Karnali Corridor, North–South Kaligandaki Corridor, transformational projects, and the East West Highway. Additional unfinished contracts include 109.5 km of tracks, 554 km of gravel roads, and 299 bridges.
Three new apple varieties recommended
The Rajikot Horticulture Research Center has recommended three new apple varieties after 12 years of research in Jumla. Senior scientist Rajkumar Giri stated the new ‘spur varieties’ are Star Crimson Delicious, Bright N Early, and Stark Spur Golden. These varieties start bearing fruit within two to three years, produce annual yields, have short trees, and can be planted at less than six-meter spacing.
Investment conference in Sudurpaschim in doubt
The investment and development conference planned to boost development in Far-West Province is uncertain. Preparations for investor commitments, legal amendments, new laws, and coordination with development partners were near completion. However, the Gen Z movement’s violent activities, which damaged provincial government infrastructure, have caused uncertainty about when the conference will occur.
Bagmati Province to review budget
Bagmati Province has decided to review the current fiscal year budget following significant damage to government structures during the Gen-Z protests on September 8-9. The provincial cabinet also decided to provide free medical treatment to those injured in the protests and express condolences to families of the deceased, according to government spokesperson and Minister for Finance and Planning Prabhat Tamang.
Industrial expansion underway in Hetauda, Makwanpur
The Hetauda Industrial Area in Makwanpur is witnessing an increase in industrial activity, with two new factories preparing to commence operations: Himalaya ACP Boards Pvt. Ltd. (aluminum boards) and Tika Industries Pvt. Ltd. (chocolate). Industrial Area Management Office official Rameshraj Nepal said that after canceling contracts for two long-closed factories, agreements were made for the new industries, which are expected to start production within one to two weeks.
Birgunj Metropolitan revises budget
Birgunj Metropolitan has revised the FY 2025/26 budget to prioritize reconstruction after the Gen-Z protests onSeptember 8-9, during which the municipal office and all structures were destroyed by fire, vandalism, and looting. Mayor Rajeshman Singh stated that the revised budget aims to restore municipal services promptly and focus on reconstruction.
Mules disappearing from Humla as national road network expands
Traditional mule transport in Humla is gradually disappearing. As the district became connected to the national road network, mules previously used for transporting salt, rice, oil, food grains, and daily essentials to remote areas like Simkot are now largely unused. Previously, mules were integral to the local economy, culture, and lifestyle.
Syafrubensi–Rasuwagadhi road repaired after flood damage
The Syafrubensi–Rasuwa Gadhi road, damaged by floods on July 8 and July 30 in the Lhendekhola area, has been repaired. The Department of Roads managed reconstruction from Timure’s Tatopani Danda to Rasuwa Gadhi, with support from the Rasuwa Gadhi Hydropower Project. Due to incomplete slope cutting above Timure, traffic is open near the Bhote Koshi River and will remain operational during winter until water flow increases.
Sanima Bank proposes 7.3685% cash dividend
Sanima Bank Limited has proposed distributing a 7.3685% cash dividend (including tax) from accumulated profits of FY 2024/25. The proposal was approved at the board meeting on Friday. The bank’s paid-up capital currently stands at Rs 13.5815 billion, and the cash dividend, including tax, will total approximately Rs 1.017 billion.
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