KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Amid festive closures and economic shifts, Nepal’s financial and infrastructure landscape is witnessing both progress and strain. The stock market is on a week-long hiatus during Dashain, while gold prices have surged to record highs, reflecting inflationary pressures or investor caution. Despite festive demand, airlines are under scrutiny over fare hikes.
Meanwhile, infrastructure development continues with NEA’s approval of 355 MW in solar projects and the MCC transmission line contract, signaling progress in the energy sector. However, fallout from the Gen Z protests has been severe—affecting Rs 120 billion in loans and triggering over Rs 23 billion in insurance claims—prompting government-led tax relief and loan restructuring.
At the same time, public debt has escalated to Rs 2.743 trillion (44.92% of GDP), while budget cuts are hampering highway maintenance. External challenges persist as Nepalis abroad face worsening visa and consular service issues. Despite these pressures, corporate actions such as dividend declarations and IPO allotments show ongoing investor engagement and market resilience.
Stock market closed for a week during Dashain
The Nepal Stock Exchange (NEPSE) will remain closed for a full week due to the Dashain holidays. The market will reopen on Sunday, following the festival. In the final trading session before the holiday break, the NEPSE index rose by 11.51 points, closing at 2,663.51. The day’s total trading turnover stood at Rs 2.93 billion. Out of the market sectors, ten saw gains, while three declined, with the Trading group seeing the largest drop of 1.28%.
Gold price hits record high of Rs 223,200 per tola
Gold prices reached an all-time high of Rs 223,200 per tola on Sunday, according to the Federation of Nepal Gold and Silver Dealers Association. Hallmark gold was priced at Rs 191,360 per 10 grams. On Friday, the last trading day of the week, gold stood at Rs 222,500 per tola.
NEA approves 355 MW of solar projects
The Nepal Electricity Authority has approved Power Purchase Agreements (PPAs) for 24 solar energy projects with a combined capacity of 355 megawatts. The final approvals were granted by newly appointed Executive Director Manoj Silwal, continuing a process initiated under former director Kulman Ghising.
Gen Z protests impact Rs 120 billion in bank loans
Protests and vandalism linked to the Gen Z movement on September 8–9 affected approximately Rs 120 billion worth of loans. Data compiled by Nepal Rastra Bank and banking associations shows that more than 95% of these affected loans were held by commercial banks.
Nepal’s public debt reaches Rs 2.743 trillion
As of September 16, 2025, Nepal’s total public debt had reached Rs 2.743 trillion, equivalent to 44.92% of the country’s GDP. This includes Rs 1.282 trillion in domestic debt (20.99% of GDP) and Rs 1.461 trillion in external debt (23.93% of GDP), according to the Public Debt Management Office. Just two months prior, the total stood at Rs 2.674 trillion.
Insurance claims from Gen Z unrest top Rs 23.39 billion
Insurance claims related to damage from the September Gen Z protests have reached Rs 23.39 billion, according to the Nepal Insurance Authority. So far, there have been 594 property claims, 2,209 for motor insurance, 144 for engineering and contract risks, 11 for transport, and 30 in other categories.
Highway repairs suffer due to budget cuts
Budget reductions have impacted even the maintenance of national highways, making landslide clearance and upkeep difficult. Experts say funds are being diverted to small, lawmaker-driven projects rather than prioritizing critical infrastructure. Constitutionally, highways fall under the exclusive jurisdiction of the federal government.
NRB seeks rented residence for central bank governor
Nepal Rastra Bank has issued a notice seeking a rented residence for Governor Dr. Biswo Nath Poudel. The house must be located between Bakhundol and Bhaisepati in Lalitpur, be built on 16 to 24 aanas of land, have a 10,000 sq. ft. RCC structure, four bedrooms, and parking for at least six vehicles.
NEA sets payment deadline for old electricity dues
The Nepal Electricity Authority has given consumers until November 3 to settle unpaid electricity bills related to dedicated feeders and trunk lines from January 2016 to May 2018. NEA has also allowed payments to be made in up to 28 monthly installments.
Tax relief announced for Gen Z-affected businesses
To assist businesses affected by the recent protests, the Ministry of Finance has introduced a tax relief package. It includes a 50% customs duty exemption on imports of buildings, furniture, machinery, and equipment. However, the final list of eligible items has yet to be published, causing confusion among private-sector players.
Nepalis abroad face growing visa and service issues
Nepali citizens abroad are encountering increasing difficulties due to visa restrictions, fraud involving fake passports, and growing unrest in destination countries. Rescue operations during crises have been hampered, and budget cuts at Nepali embassies are making matters worse for citizens needing consular services.
Loan restructuring support for Gen Z-affected businesses
Nepal Rastra Bank has instructed financial institutions to offer loan restructuring and rescheduling to businesses impacted by the September 8–9 Gen Z protests. This facility will be available until January 13, 2026, and applies to affected enterprises, borrowers, and entrepreneurs.
MCC transmission line contract awarded to Nepali-Indian joint venture
A contract has been signed for the construction of the 117-km, 400 kV Lapsiphedi–Ratmate–New Hetauda transmission line under the Millennium Challenge Corporation (MCC) grant and Nepal’s investment. On Friday, September 26, Millennium Challenge Account Nepal (MCA-Nepal) awarded the contract to Ashish–Bozlar Joint Venture, a partnership between Nepali firm Ashish and Indian firm Bozlar. This marks the second MCC project awarded to a company involving a Nepali partner.
Airlines pledge to keep Dashain airfares below maximum limit
Amid annual complaints of expensive airfares during Dashain, especially for urgent travel, airlines have committed to keeping fares below the ceiling set by the Civil Aviation Authority of Nepal. The Airlines Operators Association urged member airlines to issue tickets below the maximum fare. However, they acknowledged that one-way passenger flow during Dashain leads to comparatively higher prices.
Nepal Airlines launches direct Kathmandu–Guangzhou flights
Nepal Airlines has officially launched direct flights between Kathmandu and Guangzhou, China. The national carrier began the regular service on Saturday, September 27. Initially planned for Thursday, September 25, the launch was delayed due to technical issues, and the inaugural flight was completed on Saturday afternoon.
Route to Mt. Dhaulagiri summit fixed
The climbing route to Mt. Dhaulagiri (8,167 meters), the world’s seventh-highest mountain, has been fixed for the current autumn season. A team of four Sherpas successfully reached the summit through the newly established route. Mt. Dhaulagiri is located in Dhaulagiri Rural Municipality-4, Myagdi.
Kakarbhitta border sees Rs 3 billion in exports over two months
Exports through the Kakarbhitta border point reached Rs 3.06 billion in the first two months of FY 2025/26, down from Rs 3.86 billion during the same period last year — a 21% decline. According to the Mechi Customs Office, large cardamom remains the top export item from this border.
Birauta bus park in Bhirkot remains unused seven years after construction
A bus park built seven years ago in Sisaughari, Bhirkot Municipality-1, has remained unused. The municipality had leased 15 ropanis of land from locals and developed the bus park to manage urban growth. Despite agreements for rent payments and usage conditions, the project has not moved beyond paperwork.
Himalayan Securities to distribute 8% cash dividend
Himalayan Securities Limited will distribute an 8% cash dividend, including tax, from its paid-up capital. The decision was approved at the company’s 5th Annual General Meeting (AGM) held on Thursday, September 25. The AGM also endorsed the company’s financial reports for FY 2024/25.
Muktinath Capital approves 9% cash dividend
Muktinath Capital Limited has approved a 9% cash dividend following its 16th AGM on Friday, September 26. The meeting endorsed financial reports for FY 2024/25 and appointed NBSM & Associates as the external auditor for FY 2025/26.
Sagar Distillery IPO allotment completed
The IPO allotment for Sagar Distillery has been finalized. Out of over 2.19 million applicants, 119,160 individuals received shares, with each allottee getting 10 units. The total demand had reached over 23.8 million shares.
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