KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape shows a mix of volatility and cautious recovery, with the NEPSE index plunging sharply by 78.83 points despite increased trading activity, signaling investor uncertainty. While financial institutions face liquidity surpluses—prompting Nepal Rastra Bank to absorb Rs 50 billion—consumer inflationary pressures are evident in rising gold and silver prices.
The government is pushing for long-term growth with initiatives like low-interest startup loans, but has suspended cash incentives for exporters, reflecting fiscal tightening. Insurance payouts linked to Gen Z protests highlight broader socio-political impacts on economic stability, even as tourism and trade—such as in Pokhara and Humla—begin to rebound.
Meanwhile, the IPO pipeline remains robust, with 75 companies awaiting SEBON approval, and corporate actions such as dividend announcements and IPO openings suggest sustained interest in capital markets despite short-term market dips.
NEPSE plunges by 78.83 points on Sunday to close at 2,503.35
Nepal’s stock market began the week with a significant decline as the NEPSE index dropped by 78.83 points, settling at 2,503.35 on Sunday. Trading volume reached Rs 6.70 billion, surpassing the Rs 5.27 billion recorded on the previous trading day, Thursday. A total of 324 companies were traded, with 67,202 transactions involving over 1.43 million shares.
Gold and silver prices rise sharply
The price of gold has increased by Rs 3,000 per tola, reaching Rs 238,000 from Rs 235,000 last Friday. Silver has also risen by Rs 40 per tola, now priced at Rs 3,125, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Nepal Rastra Bank to absorb Rs 50 billion in excess liquidity
In response to a surplus of liquidity in the banking sector, Nepal Rastra Bank (NRB) has announced plans to withdraw Rs 50 billion from the market for a duration of seven days. The central bank will use its deposit collection tool for this operation and has invited banks and financial institutions to submit online bids by 3 PM today.
Government rolls out startup loan scheme with 3% interest rate
The government has launched the “Startup Loan Operation Procedure 2025” to support tech-driven and innovative business ideas. As per the guidelines issued by the Ministry of Industry, Commerce and Supplies, eligible startups can access collateral-free loans ranging from Rs 500,000 to Rs 2 million at a subsidized annual interest rate of just 3 percent.
75 companies in line for IPO approval at SEBON
The Securities Board of Nepal (SEBON) currently has 75 companies awaiting approval to issue IPOs. Collectively, these firms plan to offer 375.4 million shares valued at approximately Rs 54.15 billion. A majority of the companies seeking IPO clearance are from the hydropower sector.
Over Rs 1.58 billion paid for damages from Gen Z protests
Insurance payouts related to the Gen Z protests across Nepal have exceeded Rs 1.58 billion. The protests, which caused significant losses through vandalism, looting, and arson, resulted in 3,099 claims worth Rs 24.81 billion. So far, Rs 1.58 billion has been settled, with Rs 23.22 billion still pending across 14 non-life and four microinsurance companies.
Cash incentives for exporters suspended for current fiscal year
The government has paused the cash subsidy scheme for exporters for the ongoing fiscal year. Previously, exporters were eligible for up to 5% in subsidies under the Export Cash Subsidy Procedure, 2018. The Department of Industry, following instructions from the Ministry of Industry, Commerce and Supplies, has issued a notice suspending the program until further notice.
Casinos now required to get license for foreign exchange dealings
Nepal Rastra Bank has issued a directive requiring casinos and similar entities to obtain a license before conducting any foreign exchange transactions. The central bank clarified that, under Section 3 of the Foreign Exchange Regulation Act, 2019, only authorized institutions can legally carry out such transactions. The new regulation also includes the use of Indian currency.
Non-life insurance firms pay out Rs 1.58 billion in claims
Non-life insurers have disbursed a total of Rs 1.58 billion in claims, according to data from the Insurance Authority. The compensation covered 3,099 claims: 2,206 for motor insurance, 653 for property, 190 for engineering and contract risks, 12 for transport, and 38 in other categories. Swift settlements, including advance payments, were credited to the authority’s proactive approach.
NRB circulates Rs 56 billion in new notes for Dashain
During this year’s Dashain festival, Nepal Rastra Bank released approximately Rs 56 billion in new and clean banknotes. Distribution took place from September 14 to 26. Of the total, Rs 1.5 billion was exchanged directly with the public through NRB offices, while banks and financial institutions exchanged around Rs 4.5 billion.
Kumari Bank and GIZ sign deal to promote electric public transport
Kumari Bank Limited and GIZ Nepal have partnered under the “Set Offer Nepal” project to encourage the adoption of sustainable electric public transport. The agreement aims to offer affordable financing options for public transport operators looking to purchase electric micro and minibuses. Special loan schemes and down-payment support will be provided through the initiative.
Pokhara tourism shows signs of recovery after protests and bad weather
Tourism in Pokhara is gradually bouncing back following disruptions caused by the Gen Z movement and unfavorable weather. Local businesses reported a surge in visitor numbers starting Saturday, aligning with the peak tourist season in September–October. Phewa Lake, a major attraction, saw large crowds of both domestic and international tourists, according to Balaram Giri, chairperson of the Phewa Boat Entrepreneurs’ Association.
Kalanki Land Revenue Office resumes limited services after arson
Following damages caused by the Gen Z protests, the Kalanki Land Revenue Office has resumed only essential services, such as property holds and releases, from Sunday. The office is now operating from its upper floors, as the ground and first floors remain unsafe. Fire damage led to the loss of records for 2.5 land plots, including ownership documents.
Petroleum imports bring in over Rs 11 billion for Birgunj Customs
In the first two months of the current fiscal year, Birgunj Customs Office collected Rs 11.18 billion in revenue from petroleum imports alone. The total import value of five petroleum products was Rs 26.33 billion, accounting for 28.56% of revenue from the top 20 imported items.
Kulekhani reservoir water level remains low due to poor rainfall
The Kulekhani Hydropower Reservoir in Indrasarowar Rural Municipality has not reached its full capacity due to insufficient rainfall. Project chief Tara Datta Bhatta said the water level stood at 1,051.07 meters on Thursday — 18 meters below the reservoir’s maximum level. Kulekhani is Nepal’s only reservoir-based hydropower project.
Over 6,400 foreign tourists visited Humla this season
Since the reopening of the Hilsa border on Baisakh 18, Humla welcomed 6,407 foreign tourists, including nearly 6,000 Indian pilgrims traveling to Kailash Mansarovar via Nepalgunj. Deputy Superintendent of Police Shankar Pokharel confirmed the flow has ended for this year, with an additional 450 tourists from other countries also visiting the district.
Muktinath Krishi Company announces dividends and rights issue
Muktinath Krishi Company has declared an 8% bonus share and a 0.42% cash dividend for tax purposes. With a current paid-up capital of Rs 700 million, the company will also issue 60% rights shares based on the adjusted capital post-bonus. Its annual general meeting is scheduled for November 7.
Srinagar Agritech opens IPO for public subscription
Srinagar Agritech Company has opened its Initial Public Offering (IPO) to the general public starting Sunday. After completing allotments for affected locals and migrant workers, the shares are now available to other investors. Applications are open for a minimum of 10 and a maximum of 10,000 shares, according to Nabil Investment Banking.
Cardamom production rises, but market prices decline
While production of large cardamom has increased this year, prices have dropped significantly. The Federation of Large Cardamom Entrepreneurs of Nepal reported a fall in the price per man (40 kg) to Rs 81,000–85,000, compared to Rs 110,000 last year.
Global IME Bank declares 8 percent cash dividend
Global IME Bank has proposed an 8% cash dividend, including tax, from last fiscal year’s profits. The board’s decision excludes bonus shares and is subject to approval from Nepal Rastra Bank and the upcoming annual general meeting. Dates for the AGM and book closure are yet to be announced.
Brijeshwari Overseas records Rs 1.46 billion in annual sales
Brijeshwari Overseas, distributor of brands like Happydent, Center Fruit, and Alpenliebe, recorded Rs 1.46 billion in trade last fiscal year — averaging over Rs 4 million in daily sales. In comparison, the company traded Rs 123 million in 2024, Rs 259 million in 2023, and Rs 289 million in 2022.
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