KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic developments reflect a complex balancing act between crisis management and institutional reform. In response to the economic fallout from the Gen Z Movement, the Nepal Rastra Bank has introduced relief measures for affected businesses and temporarily eased mobile wallet transaction limits to support festive spending.
Meanwhile, the government is advancing administrative reforms—launching a digital office management system, replacing the outdated customs pricing model, and reassessing capital market regulations. However, infrastructure challenges persist, with major industrial zones facing power shortages, Kulekhani Reservoir struggling to fill, and domestic air travel surging due to landslide-induced road disruptions.
Despite festival-season concerns over inflation and service delivery, private sector resilience is evident through stable dividend announcements, corporate job assurances, and strong trade performance from firms like SY Panel Nepal.
Yet, governance disruptions, such as the SEBON shutdown and large-scale project cancellations, underscore the fragile post-crisis recovery and the need for sustained policy coherence.
NRB announces relief for businesses hit by Gen Z movement
The Nepal Rastra Bank (NRB) introduced a package of relief measures on Friday for businesses affected by the recent Gen Z Movement. In alignment with government directives, the central bank will offer extended loan repayment deadlines, financing for vehicles up to 80 percent, and loans at a nominal 0.5 percent premium. These measures will be formalized through amendments to a unified banking directive. The extensions apply to industries, trade, and businesses directly impacted by the unrest.
NRB raises daily mobile wallet transaction limit for festivals
To support increased digital transactions during the Dashain festival, Nepal Rastra Bank has temporarily raised the daily transaction frequency limit for mobile wallet users. The cap has been increased from 10 to 40 transactions per day. This change will be effective from Fulpati (the seventh day of Dashain) until Kojagrat Purnima (the festival’s full moon day). The central bank said the decision aims to facilitate digital “Dakshina” payments during the festive season.
Gold and silver prices climb in local market
The domestic price of gold rose on Friday, with hallmark gold increasing by Rs. 1,200 to reach Rs. 222,500 per tola, up from Rs. 221,300 on Thursday. Silver prices also went up, reaching Rs. 2,740 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Finance Ministry rolls out integrated office management system
The Ministry of Finance has officially launched the Integrated Office Management System in an effort to streamline government operations. Finance Minister Rameshore Khanal inaugurated the system on Friday by digitally approving official documents. He stated that the system is part of a broader initiative to make public administration more efficient, transparent, cost-effective, paperless, and centralized under a single IT platform. The system has been made mandatory within the ministry.
Customs reference pricing system replaced by valuation database
The government has scrapped the long-criticized reference price list used for customs valuation, replacing it with a valuation database system. The Department of Customs, under the Ministry of Finance, has started piloting the new system at the Biratnagar Customs Office as of Wednesday. This move is expected to promote transparency, consistency, and fairness in customs operations, support legitimate trade, and curb revenue leakage.
Janak Raj Sharma sworn in as chair of insurance authority
Janak Raj Sharma took the oath of office as Chairman of the Nepal Insurance Authority on Friday. The ceremony was administered by Finance Minister Rameshore Khanal. Sharma was appointed to the role during a cabinet meeting held on September 25 and officially assumed office the same day.
Nepal Airlines cancels inaugural Guangzhou flight last minute
Nepal Airlines Corporation abruptly canceled its first-ever commercial flight to Guangzhou, China, just hours before departure on Thursday night. The flight, scheduled for 10 PM, was called off due to a lack of flight plan approval from the Civil Aviation Administration of China. Such approvals are typically granted three to four hours prior to takeoff, but no clearance was given, leading to the last-minute cancellation.
Capital market reform taskforce submits recommendations
A taskforce formed to address falling investor confidence has submitted its report to the Ministry of Finance. The report offers short-, medium-, and long-term proposals to improve transparency, efficiency, and stability in the capital market. Among the key recommendations is the removal of the Rs. 250 million single-borrower limit on margin lending, aimed at boosting market liquidity and providing immediate relief to investors.
FNCCI calls for protection of private property
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to take concrete steps to protect private and commercial properties. During a meeting with Industry Minister Anil Kumar Sinha on Thursday, FNCCI President Chandra Prasad Dhakal emphasized that businesses, offices, and homes of entrepreneurs were targeted during the Gen Z Movement. The organization warned that such incidents have severely damaged business confidence and public morale.
Gen Z movement causes property damage worth Rs. 100 billion
The Gen Z Movement has resulted in public property damage estimated at Rs. 100 billion. Acts of vandalism and arson targeted key government buildings, including Singha Durbar, the Supreme Court, and various police and administrative offices. On September 21, the Cabinet formed a Physical Infrastructure Reconstruction Committee led by the Finance Minister to assess the damage and oversee reconstruction efforts.
SEBON operations halted amid internal protest
Since Tuesday, the activities of the Securities Board of Nepal (SEBON) have come to a standstill due to internal protests. The vehicles of the board’s Chairman, Executive Director, and Deputy Director were seized by the employees’ union, which has also padlocked the SEBON office. The protest follows opposition to a Ministry of Finance decision made on September 18 concerning revenue matters. As a result, all operations — including IPO approvals, rights issues, and bonus share registrations — have been suspended indefinitely.
Government cuts over 1,300 projects from current budget
The government has canceled more than 1,300 projects from the current fiscal year’s budget. The interim government formed after the Gen Z Movement reviewed public spending and redirected funds toward election and reconstruction needs. A taskforce led by Suman Dahal, Chief of the Budget Division at the Finance Ministry, was responsible for selecting which projects to cancel based on relevance, cost, and impact.
Air travel surges after landslides disrupt major highways
Domestic air passenger traffic has significantly increased following repeated landslides along the Narayangadh–Muglin road and the Prithvi Highway. Bharatpur Airport, which typically handles seven daily flights, is now operating 10 flights to accommodate demand. Buddha Air, which flies between Kathmandu–Bharatpur and Bharatpur–Pokhara, has deployed additional aircraft, reporting over 100 extra passengers daily.
Airlines say Dashain fares remain below government ceiling
In response to public concerns over rising airfare during the upcoming Dashain festival, the Airlines Operators Association of Nepal has claimed that ticket prices remain below the government-set maximum fare. In a statement, Association President Manoj Karki said that despite increased festival-season demand, airlines are offering fares under the cap, with future bookings also expected to stay within limits.
Parsa-Bara industrial corridor faces severe power shortage
The Parsa-Bara Industrial Corridor, Nepal’s largest industrial zone, is experiencing a critical electricity shortage ahead of major festivals. The disruption follows a fire at the Bhulahi substation in Parwanipur two weeks ago. Industries in the region report unreliable and poor-quality power supply at a time when demand for goods traditionally rises, severely hampering production and logistics.
Low water levels threaten full replenishment of Kulekhani reservoir
With the monsoon season ending, the Kulekhani Reservoir is unlikely to reach full capacity this year. Although water levels have risen, they remain significantly below the required mark. The level dropped to 1,485 meters during the dry season and had only reached 1,503.82 meters by Thursday, still about 27 meters short of full capacity.
Butwal Power to acquire shares in Himal Power
Butwal Power Company has announced plans to acquire shares in Himal Power. It will purchase 16.81 million shares from Statkraft Holding Singapore and an additional 4.59 million shares from Eviny AS Norway. This strategic move is expected to enhance Butwal Power’s stake and influence in the energy sector.
Citizens Bank announces 5 percent bonus shares
Citizens Bank International has declared a dividend package consisting of 5 percent bonus shares and a 0.263 percent cash dividend. The decision was made during the board meeting held on Friday and awaits approval from Nepal Rastra Bank and the bank’s upcoming annual general meeting. Last year, the bank had distributed a total dividend of 4.21 percent.
Chaudhary Group assures no layoffs despite Gen Z movement losses
Despite sustaining damages worth Rs. 50 billion during the Gen Z Movement, the Chaudhary Group has pledged not to cut jobs or reduce employee benefits. On September 9, protesters vandalized and set fire to CG’s industrial facilities, including its electronics factory and warehouse in Satungal. The company confirmed that buildings, stock, machinery, and vehicles were destroyed.
SY Panel Nepal reports record Rs. 790 million in annual trade
SY Panel Nepal achieved its highest-ever trade volume last fiscal year, reaching Rs. 790 million. This marks a steady increase over the past few years, with Rs. 630 million recorded in 2024, Rs. 522 million in 2023, Rs. 416 million in 2022, and Rs. 455 million in 2021. The company has credited its consistent growth to strong market demand and improved operations.
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