KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape this week reflects a mix of financial strain, recovery efforts, and regulatory tightening across multiple sectors. While gold and silver prices rebounded, signaling renewed investor confidence, rising government debt — now at Rs 2.72 trillion — highlights growing fiscal pressure.
The Nepal Rastra Bank’s foreign investments have crossed Rs 1.8 trillion, strengthening reserves, yet the economy faces stress from Rs 16 billion in reinsurance claims following the Gen Z unrest. At the provincial level, Bagmati has cut over Rs 6 billion from its capital budget to prioritize reconstruction, while Koshi and Lumbini protested power cuts disrupting industries and cement production.
Meanwhile, rising imports through Biratnagar Customs indicate trade revival, and regulatory reforms — including CAAN’s new helicopter safety rules and Nepal Airlines’ open competition for managing director — point to governance improvements.
However, challenges persist, with manpower agencies opposing Malaysia’s labor standards and passengers in remote Humla relying on lotteries for air tickets, underscoring the country’s uneven recovery and infrastructural gaps.
Gold prices climb again in Nepali market
Gold prices rose again in Nepal on Friday after several days of decline. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased by Rs 2,700 per tola from Thursday’s rate of Rs 236,300 to Rs 239,000. The price of silver also recorded an increase.
NRB’s foreign investments exceed Rs 1.8 trillion
The Nepal Rastra Bank’s (NRB) investment in foreign securities has surpassed Rs 1.8 trillion. As of mid-October, the central bank’s foreign investments stood at Rs 1.81 trillion, compared to Rs 1.50 trillion at the end of the previous fiscal year. These investments — primarily in foreign bonds — are the NRB’s main source of income, financed through remittance inflows and foreign currency reserves.
Nepal Re faces Rs 16 billion in reinsurance claims
Nepal Reinsurance Company (Nepal Re), the state-owned reinsurer handling riot and terrorism coverage, has received claims totaling Rs 16.51 billion following the Gen Z protests in early September. The Insurance Board reported that non-life insurance companies filed 3,187 claims amounting to Rs 23.24 billion, of which 2,868 claims worth Rs 16 billion were submitted to Nepal Re for reinsurance settlement.
Government debt reaches Rs 2.72 trillion
The government’s total debt has climbed to Rs 2.724 trillion as of mid-October 2025, up from Rs 2.674 trillion at the end of the last fiscal year in mid-July. Public debt now represents 44.61 percent of Nepal’s Gross Domestic Product (GDP). Of the total, foreign loans account for 53.09 percent (Rs 1.446 trillion), while domestic borrowing makes up 46.91 percent (Rs 1.278 trillion). For the current fiscal year, the government aims to raise Rs 595 billion in loans.
Contractors urge Finance Minister to address contract cancellation crisis
Amid a wave of contract terminations, representatives of the Federation of Contractors Associations of Nepal met Finance Minister Rameshore Prasad Khanal to raise concerns over the challenges facing the construction sector. The delegation urged the government to revise impractical laws and regulations hindering contract implementation. Minister Khanal assured the federation that he had already directed relevant bodies to initiate necessary legal amendments.
Nepal Airlines to select new managing director through open competition
Nepal Airlines Corporation (NAC) will appoint its next managing director via open competition. A selection committee, led by Tourism Secretary Hariprasad Mainali, has been formed to recommend qualified candidates. Prime Minister Sushila Karki, who also oversees the tourism ministry, approved the committee’s formation. Captain Kul Bahadur Limbu has been named the expert member, while the ministry’s joint secretary and head of planning and administration will serve as the member-secretary.
CAAN issues new safety rules for helicopter operators
Following the crash of Altitude Air’s helicopter (9N–AMS) in Lobuche, Solukhumbu, the Civil Aviation Authority of Nepal (CAAN) has issued updated safety directives for all helicopter companies. Operators such as Air Dynasty, Fishtail Air, Manang Air, Heli Everest, and others have been instructed to take extra precautions during operations in foggy or snowy weather conditions.
Manpower agencies oppose Malaysia’s new recruitment standards
Nepali manpower agencies have objected to Malaysia’s new 10-point standards for recruitment firms. The Nepal Association of Foreign Employment Agencies accused a few business intermediaries of colluding with Malaysian officials to set discriminatory conditions against Nepali agencies. The association has urged the government not to implement the standards, citing serious concerns over Malaysia’s letter to Nepal’s Ministry of Foreign Affairs sent via the embassy in Kuala Lumpur.
Bagmati province cuts over Rs 6 billion from capital budget
The Bagmati provincial government has slashed more than Rs 6 billion from its capital expenditure for the current fiscal year to fund reconstruction and rehabilitation of structures damaged during the Gen Z movement and recent disasters.
The move, aimed at tightening financial discipline and curbing unnecessary spending, will see budget reductions across multiple ongoing capital projects. Earlier, the provincial government had already announced 30–50 percent cuts in allocations under 43 headings — including training, meetings, travel allowances, incentives, and awards.
Buddha Air to restart Kathmandu–Kolkata flights from November 15
Buddha Air will resume direct flights between Kathmandu and Kolkata starting November 15, operating four times a week — on Sundays, Tuesdays, Thursdays, and Saturdays. The airline, which had initially planned three weekly flights, increased frequency due to strong demand. This marks the resumption of Buddha Air’s Kathmandu–Kolkata route after a gap of six years.
Koshi and Lumbini provinces raise concern over power cuts to industries
The governments of Koshi and Lumbini provinces have voiced serious concern over the Nepal Electricity Authority’s (NEA) decision to cut electricity supply to industrial establishments.
Koshi Chief Minister Hikmat Kumar Karki and Lumbini Chief Minister Chet Narayan Acharya, through separate press releases, said it was alarming that private industries — which play a vital role in economic growth and job creation — were being forced to shut down due to the NEA’s move.
Power cuts force cement factories to halt operations
Cement factories have been forced to close after the Nepal Electricity Authority (NEA) disconnected power supply over unpaid dues, leaving hundreds of workers in uncertainty.
Ghorahi Cement and Sonapur Cement had their electricity cut on October 21 and 24 respectively. According to the NEA, Ghorahi Cement owes Rs 508.5 million, while Sonapur Cement owes Rs 243 million in outstanding payments.
Imports surge after new valuation system at Biratnagar customs
Imports through Biratnagar Customs have surged sharply following the implementation of a new valuation system.
In the first quarter of the current fiscal year, total national imports reached Rs 468 billion, with Biratnagar Customs alone accounting for Rs 58.76 billion. Officials attribute the rise to simplified customs procedures and faster import clearance.
Passengers in Upper Humla depend on lottery for air tickets
With limited flight frequency in Upper Humla, passengers have resorted to a lottery system to obtain air tickets.
Sita Air introduced the lottery on Wednesday evening as flights returning to Kathmandu became irregular due to weather and logistical issues. The airline operated three flights to Simkot on Thursday under the new system.
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