KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economic landscape presents a mixed picture, combining signs of financial-market recovery with significant disruption from the Bhote Koshi floods and related infrastructure failures. The 18.07-point rise in the NEPSE index to 2,560.84, supported by broad-based sectoral gains and Rs 3.831 billion in turnover, indicates renewed investor confidence. However, falling gold and silver prices and Nepal Rastra Bank’s Rs 35 billion liquidity-management operation suggest continuing efforts to stabilize financial conditions.
The government has simultaneously introduced extensive relief measures, including tax exemptions, deferred filing deadlines, VAT concessions, customs-duty adjustments, accelerated insurance settlements, and concessional lending. These interventions could provide immediate liquidity and reduce the financial burden on flood-affected businesses, although their effectiveness will depend on timely implementation and accessibility.
Infrastructure disruptions remain a major constraint. Highway blockages have disrupted industrial supply chains, reduced manufacturing activity, and increased transportation costs, while the suspension of key routes has sharply affected tourism. Hotel occupancy in Chitwan and cancellations in Pokhara and Lumbini demonstrate how negative perceptions can amplify the economic impact beyond directly affected areas. Increased air services are partially compensating for road disruptions.
Overall, Nepal’s recovery requires coordinated fiscal, monetary, infrastructure, and tourism measures. Restoring transport connectivity and investor and tourist confidence will be critical to sustaining economic activity and preventing temporary disruptions from becoming longer-term economic setbacks.
NEPSE gains 18.07 points to close at 2,560.84
The Nepal Stock Exchange (NEPSE) index climbed 18.07 points to close at 2,560.84 on Monday, the first trading day of the week, as the market posted a broad-based recovery. A total of 9,298,094 shares of 352 companies were traded through 50,844 transactions, generating turnover of Rs 3.831 billion. Share prices of 195 companies increased, while 79 declined and four remained unchanged. Pure Energy recorded the strongest gain, with its share price rising 15 percent, while most other advancing stocks posted single-digit gains. All sectoral indices except Finance and Trading ended higher. The Non-Life Insurance sub-index recorded the largest increase, gaining 2.05 percent, while the Banking and Manufacturing sectors also contributed to the market’s recovery.
Gold traded at Rs 301,900 and silver at Rs 4,690 today
Gold and silver prices declined in Nepal’s domestic market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 2,400 per tola to Rs 301,900. Gold had traded at Rs 304,300 per tola on Sunday. Silver prices also declined, dropping Rs 35 per tola to Rs 4,690. The latest price movement reflects a decline in both major precious metals in the domestic market compared with the previous trading day.
NRB injects Rs 35 billion into market to manage liquidity
To manage excess liquidity in the financial system and keep interest rates under control, Nepal Rastra Bank (NRB) has invited bids to collect Rs 35 billion in deposits through a 60-day deposit collection instrument. Licensed Class ‘A’, ‘B’, and ‘C’ financial institutions can participate through the online bidding system, with allocations given priority based on the lowest interest rates offered. The principal and interest will be repaid on November 6, 2026. Each transaction must be worth at least Rs 100 million. Financial institutions will also be able to use the collected deposits as collateral for various banking activities. The measure is intended to support monetary stability amid fluctuations in liquidity across the economy.
Government simplifies VAT claims for flood-damaged business assets
The government has eased procedures for businesses seeking to claim and adjust Value Added Tax (VAT) on assets damaged by the Bhote Koshi floods. Businesses will also be permitted to fully write off the value of commercial assets that were completely destroyed as a one-time expense deduction. For partially damaged assets, the restriction under Section 16(2) of the Income Tax Act will not apply to repair expenses. As a result, affected businesses can claim tax-deductible expenses related to repairing and restoring damaged buildings, machinery, and equipment. The provision forms part of the government’s first-phase business recovery package for entrepreneurs affected by the floods.
Flood-affected individuals to receive income tax exemption
The government has announced a full income tax exemption for individuals affected by the floods for the 2025/2026 income year, subject to the submission of the required documents. The provision is part of a broader business revival package introduced following losses caused by the Bhote Koshi floods. The Federal Government will also ask provincial and local governments to provide concessions on local taxes and administrative fees for affected businesses. The concessions are intended to ease the financial pressure on individuals and businesses as they work to restore operations disrupted by the disaster.
Flood-affected businesses receive tax filing deadline extension
The government has extended the deadline for flood-affected taxpayers to file tax returns and settle outstanding tax liabilities until November 10. The extension is designed to assist businesses whose offices, physical records, accounting systems, and regular operations were disrupted by the Bhote Koshi floods. According to the Ministry of Finance, the additional time will allow affected business owners to complete their tax compliance requirements while recovering from the disaster. The measure is included in the government’s broader business revival package aimed at helping restart industries, trade, and other economic activities disrupted by the floods.
Companies allowed to direct CSR funds to flood relief
The government has permitted companies to channel their corporate social responsibility (CSR) funds for fiscal year 2026/2027 to the Prime Minister’s Disaster Relief Fund. Companies maintaining CSR funds can use their mandated contributions for the relief fund, and such payments will be recognized as eligible CSR expenditure. The government will amend the relevant regulations and directives to implement the provision. The measure is part of the first-phase business revival package introduced after the Bhote Koshi floods. The government said the arrangement would help mobilize greater private-sector support for disaster relief while enabling companies to meet their CSR obligations through contributions to flood-response efforts.
Flood-affected businesses to receive faster insurance settlements
The Nepal Insurance Authority will introduce special procedures to accelerate insurance claim settlements for businesses affected by the Bhote Koshi floods. Under the new system, insurance surveyors will be deployed through simplified procedures to assess flood-related damage. Policyholders will also be eligible for advance payments of up to 50 percent of the estimated claim amount based on preliminary assessments. The Nepal Insurance Authority will establish a fast-track claims process to minimize delays for businesses that suffered significant losses. The initiative is part of the government’s first-phase business recovery package, which seeks to help affected businesses resume operations as quickly as possible.
Flood-affected businesses to receive loan restructuring and concessional dredit
The government has announced loan restructuring and concessional lending facilities for businesses affected by the Bhote Koshi floods. Financial institutions will be permitted to restructure or reschedule principal and interest payments once for eligible borrowers. The provision particularly targets businesses whose loans are associated with goods imported through the Rasuwa customs checkpoint. Nepal Rastra Bank will also introduce concessional lending arrangements to help businesses replace destroyed vehicles, transportation equipment, and industrial machinery while protecting employment. Interest rates on these loans will be capped at a maximum of 0.5 percentage points above the applicable base rate for one year.
Customs duty adjustment offered for goods destroyed in floods
The government has allowed importers to adjust customs duties already paid on goods destroyed by the Bhote Koshi floods before reaching their final destination. Importers who had paid customs duties but lost their consignments in the August 26 floods can offset the previously paid duties against replacement imports of similar goods. To qualify for the facility, affected importers must bring the replacement goods through any customs office within six months. The provision is intended to reduce the financial burden on businesses whose imported consignments were destroyed in transit during the disaster.
Customs duty exemptions announced for flood-damaged vehicles and machinery
The government has announced full customs duty exemptions for businesses replacing vehicles and industrial machinery that were destroyed or damaged beyond repair by the Bhote Koshi floods. Owners of commercial and transport vehicles that were swept away or damaged beyond repair can import replacement vehicles of the same category without paying customs duty, provided they first cancel the registration of the damaged vehicle. Similarly, affected entrepreneurs and companies can import replacement plants, machinery, instruments, and equipment without customs duties if the replacement items match the specifications of those destroyed. However, the quantity of replacement goods cannot exceed the quantity of the items that were destroyed.
Authorities Urge Trekkers to Suspend Manaslu and Larke Pass Plans
The Nepal Police has urged trekkers planning to travel along the Manaslu and Larke Pass routes to suspend their plans until further notice after floods swept away two bridges in Namrung, Gorkha, early Sunday. According to the Nepal Police, a flood in the Therang Khola at around 3:30 AM on September 6, 2026, destroyed an iron bridge connecting Chumanuwri Wards 2 and 4, as well as a suspension bridge over the Budhi Gandaki River. Trekkers and other travelers affected by the disruption have been advised to contact the relevant emergency control centers for assistance, coordination, and updates. The District Police Office, Gorkha, can be contacted at +977 986055555 and +977 9856061190. The District Administration Office, Gorkha, is available at +977 9856057777, +977 9856057778, and +977 9856057780. For emergencies, travelers can contact Nepal Police at 100, Traffic Police at 103, Tourist Police at 1144, and the District Emergency Operations Center (DEOC), Gorkha, at 1234, 9748430200, and 9867173694.
Pokhara Tourism Hit by Road Disruptions and Booking Cancellations
Tourism activity in Pokhara has been affected by the Bhote Koshi flood and the Krishnabhir landslide, which damaged the Prithvi Highway and disrupted road travel between Pokhara and Kathmandu. Hotels have reported booking cancellations of as much as 30 percent. The suspension of tourist bus services has further complicated travel and increased dependence on air transportation. Around 150 tourist buses operating on the Pokhara-Kathmandu route have been halted, directly affecting nearly 1,000 tourism entrepreneurs and workers. Air passenger traffic has risen sharply following the road disruption, with more than 3,500 passengers traveling between Pokhara and Kathmandu on a recent Friday. Authorities and tourism stakeholders are also exploring alternative routes to maintain transportation services for tourists.
Bhote Koshi Flood Fallout Leaves Tourist Hotels Largely Empty
The impact of the Bhote Koshi flood is spreading to major tourist destinations, with hotels in Pokhara, Chitwan, and Lumbini reporting widespread booking cancellations during what is normally a peak tourism period. Reports of the disaster and growing concerns about safety in Nepal have prompted domestic and international tourists to cancel hotel reservations. Difficult road conditions have further discouraged domestic travelers from making plans. In Sauraha, Chitwan, hotel occupancy has dropped below 5 percent, with some properties reporting occupancy of less than 1 percent. Several hotels had launched special offers for the Teej festival, but bookings have nevertheless been canceled. Reservations for conferences, seminars, and organizational meetings have also been affected. The cancellations have left hotels in major tourist destinations struggling to attract visitors during a season that would normally see strong demand.
Lumbini Sees Tourist Bookings Canceled Despite Remaining Safe and Accessible
Hotels in Lumbini have begun experiencing booking cancellations as negative reports about the Bhote Koshi flood create the perception that the entire country has been affected. Bookings for the main October-November tourism season have been canceled, including reservations totaling 100 room nights at one hotel over a two-month period. However, Lumbini and other major destinations in the surrounding region, including Kapilvastu, Devdaha, and Ramgram, remain safe and accessible to visitors. Tourism services and major cultural and religious sites continue to operate normally. Foreign tourists entering through India or booking through Indian travel agencies have largely retained their hotel reservations. However, misinformation about conditions in other parts of Nepal continues to affect tourist arrivals nationwide.
Passenger surge triples Bharatpur-Kathmandu air traffic amid highway disruption
Buddha Air has more than doubled its daily flight frequency between Bharatpur and Kathmandu following severe road disruptions caused by highway subsidence at Krishnabhir. The airline has increased its operations from the usual five flights to 11 daily rotations, using ATR 72 aircraft with seating capacities of 50 to 70 passengers. The additional flights are intended to accommodate the sharp rise in passenger demand and maintain connectivity for travelers from Chitwan, Nawalparasi, Gorkha, Tanahun, Lamjung, and Makwanpur. Airline officials said runway length restrictions prevent the aircraft from operating at their maximum passenger capacity on the route. Nevertheless, the increased frequency has helped ease transportation difficulties caused by ongoing highway maintenance and infrastructure-related disruptions.
Chitwan Hotels Face Sharp Drop in Bookings Amid Flood Concerns
Hotels in Chitwan are experiencing a significant decline in occupancy following the Bhote Koshi flood, despite the district itself not sustaining major damage from the disaster. In Sauraha, which typically attracts large numbers of tourists during this period, hotel occupancy has fallen below 5 percent, with some properties reporting occupancy of less than 1 percent. At a major hotel in Patihani, occupancy has declined to 5 percent, while approximately 40 percent of bookings have been canceled, including reservations extending into November. The decline is largely attributed to negative reports about conditions in Nepal rather than direct flood damage in Chitwan. Alternative road routes remain available, while flights between Kathmandu and Bharatpur continue to provide another travel option for visitors.
Kathmandu night transport plan proposes higher fares and stronger safety measures
A task force examining nighttime public transportation in Kathmandu Valley has proposed increasing fares by Rs 12 and introducing additional safety measures to make the service more financially sustainable and dependable. The proposal covers eight municipalities participating in the nighttime transport network. Under a viability gap funding model, the municipalities would share the service’s financial deficit based on factors including municipal size, population density, and operating distance. The task force has also recommended installing CCTV cameras and GPS tracking systems and establishing dedicated bus stops. These measures are intended to improve safety for women, senior citizens, and tourists. It has further proposed providing real-time information on bus locations and schedules to make nighttime public transportation safer, more predictable, and convenient for passengers.
Birgunj corridor industries cut production as highway closures disrupt logistics
Extended disruptions along the Prithvi Highway, Tribhuvan Rajpath, and Kanti Lokpath have severely disrupted the supply chain serving the Bara-Parsa industrial corridor and Birgunj Customs. Manufacturing plants producing cement, steel, and essential goods have been forced to reduce production and cut shifts as transport operators remain reluctant to send heavily loaded 12- and 14-wheeler trucks along slow alternative routes. The alternative routes have extended transportation times from roughly two days to nearly a week, resulting in warehouses becoming increasingly congested with inventories while raising concerns about shortages and price increases ahead of the Dashain and Tihar festivals. Industry representatives have called for immediate government action to reopen and restore the main transportation routes, warning that prolonged supply chain disruptions could cause lasting financial damage to manufacturing businesses in the region.
Industry closures fall in Dhankuta as 148 new businesses are registered
The number of industries shutting down in Dhankuta district fell significantly in fiscal year 2025/26, with 151 closures recorded compared with 336 in the previous fiscal year. At the same time, 148 new industries were registered in fiscal year 2026/27, up from 134 during the preceding year. Madhav Baskota, head of the Cottage and Small Industries Office, attributed the increase in new registrations to growing interest among young people and improved access to subsidies distributed through formal procedures. He noted that some business owners are forced to close their operations after failing to secure government grants. Information Officer Arjun Giri said the newly registered businesses include 37 commercial enterprises and 111 industrial enterprises. Among the latter are 52 agriculture- and forestry-based businesses, 22 service-oriented enterprises, 17 tourism businesses, 15 manufacturing companies, and five information technology ventures. In addition, 764 industry licenses were renewed, bringing the total number of registered industries in the district to 4,293. Capital investment increased by more than Rs 10 million, while the government collected more than Rs 3 million in taxes.
Apple harvesting begins in Mustang with strong yield projections
Apple harvesting has begun in Mustang, with farmers sending high-density and indigenous varieties, including Red, Royal, Golden, and Richa Red Delicious, to markets in Myagdi, Baglung, Parbat, and Kaski through the Jomsom-Beni road section. The Agriculture and Livestock Development Office in Mustang said the harvest has coincided with the festive season, prompting traders to purchase entire orchards from farmers. Apples are cultivated in several rural municipalities, including Thasang and Gharapjhong. Officials have projected production of 6,078 metric tonnes of indigenous apples from 830 hectares and 8,496 metric tonnes from 65 hectares under high-density cultivation. Farmers are following harvesting schedules set by the District Coordination Committee. They expect the increased domestic supply to reduce Nepal’s dependence on apples imported from India and China, following imports worth more than Rs 1.1 billion last year.
Gauthali leads domestic box office with more than Rs 25.8 million in earnings
The film Gauthali has become the highest-grossing domestic movie currently screening in Nepal, earning more than Rs 25.8 million at the box office, according to the latest data released by the Film Development Board. As of 11:59 PM on Sunday, September 6, 2026, Gauthali had sold 930,744 tickets and generated more than Rs 25.8 million in box office revenue. The film has maintained a substantial lead over the other domestic productions listed in the latest report. Parvati ranked second, selling 54,735 tickets and generating Rs 15.8 million in revenue. Masterni sold 12,197 tickets and earned Rs 4 million, while Halee sold 8,525 tickets and collected Rs 2.3 million. The Film Development Board publishes domestic box office figures weekly. The data are compiled through the board’s official box office system and provide an overview of the commercial performance of domestic films being screened across Nepal.
Blind Youth Association conducts financial literacy program on share markets
The Blind Youth Association Nepal Valley Branch has completed a two-day training program on the share market, with 21 visually impaired participants receiving basic knowledge about primary and secondary financial markets, investment risks, and financial discipline. The training included interactive discussions facilitated by Shiva Agrawal and Kushal Neupane under the leadership of central President Shankar Upadhyaya and branch Secretary Madan Rokay. Organizers said improving financial literacy and encouraging disciplined investment practices among visually impaired young people are important for strengthening their long-term economic independence. They also expressed plans to conduct additional empowerment programs and specialized training sessions based on the needs of the community.
FNCCI president seeks support from more than 70 global organizations for disaster relief
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Shrestha has said the organization has formally appealed to more than 70 international trade bodies and global associations for financial and humanitarian assistance to support post-disaster rescue and rehabilitation efforts. Speaking at the 36th general convention and 72nd annual general meeting of the Pokhara Chamber of Commerce and Industry on Saturday, Shrestha said more than Rs 500 billion could be required for ongoing recovery and rehabilitation efforts. He also stressed the need for long-term infrastructure planning, greater tourism promotion around Korala, and stronger cooperation among different levels of government. According to Shrestha, coordinated efforts will be essential to revive economic sectors affected by the disaster and rebuild investor confidence across the country.
Birat Trade Fair 2026 preparations advance to boost regional commerce in Biratnagar
Preparations for Birat Trade Fair 2083 are progressing, with the event scheduled to take place from October 8 to 16 at Jain Bhavan in Biratnagar-9. The exhibition will feature more than 100 stalls representing businesses from Nepal, India, Bangladesh, and Pakistan. Birat Trade Fair is organizing the event under the leadership of President Pramod Jindal, following discussions with Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Koshi Province President Rajendra Raut. The organizers expect the trade fair to encourage consumer spending, promote local businesses, and help curb the trend of consumers traveling across the border for shopping ahead of the festive season. They said the exhibition will provide a platform for regional producers to connect directly with consumers and help revitalize local commercial activity following recent economic disruptions.
Nabil Mutual Fund announces cash dividends for balanced fund schemes
Nabil Investment Banking Limited has announced cash dividends for unitholders of two of its mutual fund schemes based on profits from the previous fiscal year. At a board meeting held on September 3, the company decided to distribute a 3.5 percent cash dividend to unitholders of Nabil Balanced Fund 2 and a 2.5 percent cash dividend to unitholders of Nabil Balanced Fund 3. The book closure date has been set for Wednesday, September 23. Investors must purchase the respective units by September 22 to qualify for the dividend. Meanwhile, other schemes managed by the institution, including Nabil Flexi Cap Fund and NI 31, have decided not to distribute dividends for the current period based on evaluations of their respective portfolio performances.
Beni Hydropower opens IPO for general public
Beni Hydropower Company has opened its initial public offering (IPO) for the general public, offering 863,200 ordinary shares at a face value of Rs 100 per share. The offering represents the remaining portion of the company’s public share allocation from its Rs 1.04 billion issued capital, following earlier allocations to local residents of Solukhumbu, Nepali citizens working abroad, and mutual funds. Applications can be submitted through NMB Capital until September 21. Individual investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The IPO marks another step toward increasing public participation in Nepal’s renewable energy and hydropower development sector.
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