KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s latest economic and policy developments reflect a mixed picture shaped by market weakness, abundant liquidity, disaster recovery needs and persistent supply disruptions. The Nepal Stock Exchange (NEPSE) fell 15.43 points despite turnover rising to Rs 4.2 billion, with all sectoral indices declining, indicating broad-based investor caution. Gold and silver prices also declined, suggesting softer precious-metal demand or changing external market conditions.
Meanwhile, Nepal Rastra Bank (NRB) absorbed Rs 55 billion through a 56-day deposit instrument, highlighting substantial excess liquidity in the banking system and the central bank’s efforts to maintain monetary and interest-rate stability.
The devastating Bhote Koshi floods remain a major economic and humanitarian concern. The government is coordinating with more than 20 development partners on damage assessment, recovery and resource mobilisation. India and Sri Lanka have expanded humanitarian assistance, while Nepal Airlines has waived international cargo fees for relief supplies. Health authorities have also eased insurance procedures in affected districts.
Domestic supply disruptions remain evident, particularly in LPG. The government has introduced cross-brand cylinder exchanges in Kathmandu Valley, while lawmakers have criticised shortages and urged faster action. The closure of northern border routes has redirected trade through Korala, sharply increasing Mustang Customs revenue.
At the provincial level, Madhesh has sought earlier budget implementation, while measures on sugar prices, land ownership and tourism resilience show broader efforts to address consumer, social and economic challenges.
NEPSE falls 15.43 points as turnover rises to Rs 4.2 billion
The Nepal Stock Exchange (NEPSE) index declined 15.43 points on Wednesday to close at 2,545.40 points, even as daily turnover increased. Total turnover reached Rs 4.198 billion, compared with Rs 3.83 billion on the previous trading day. A total of 10,965,542 shares of 352 securities changed hands. Market sentiment remained negative, with 192 companies recording losses, while 74 gained and 11 remained unchanged. All 13 sectoral indices ended lower. The Development Bank index posted the biggest decline, falling 2.37 percent, while the Finance, Hotel and Tourism, Non-Life Insurance and Trading indices each dropped by more than 1 percent. Upper Lohore Khola Hydropower gained the most among individual companies, rising 15 percent to Rs 299 per share. Shubham Power advanced 6.40 percent to Rs 655.
Gold falls Rs 3,000 to Rs 302,400 per tola
Gold prices fell by Rs 3,000 per tola in the domestic market on Wednesday, while silver declined by Rs 40. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 302,400 per tola, down from Rs 305,400 on Tuesday. One tola is equivalent to 11.66 grams. The price of silver dropped to Rs 4,750 per tola from Rs 4,790 on the previous trading day.
Finance Minister meets development partners over post-disaster recovery
Finance Minister Swarnim Wagle is holding discussions with more than 20 heads of missions and country directors of major development and donor agencies on post-disaster recovery, damage assessment and assistance following the recent Rasuwa flood. The meeting at Subarna Hall of the Ministry of Finance in Singha Durbar is bringing together senior government officials and representatives of development partners. Discussions are focused on search, rescue and initial recovery efforts, as well as the extent of damage and the resources required for reconstruction and rehabilitation. Participants are also reviewing the Rapid Disaster Needs Assessment and other damage assessments to identify priorities for recovery and reconstruction. The meeting is expected to strengthen coordination between the government and development partners and facilitate the mobilisation of resources for affected communities.
NRB collects Rs 55 billion through 56-day deposit instrument
Nepal Rastra Bank (NRB) collected Rs 55 billion through a 56-day deposit collection instrument on Wednesday as part of efforts to absorb excess liquidity and maintain stability in the banking system. The central bank conducted the collection through its online bidding system, with Class A, B and C financial institutions allowed to participate. Institutions were required to submit bids starting at Rs 100 million, in multiples of Rs 50 million. The interest rate was determined through competitive bidding. The principal and interest are scheduled to be repaid on November 4, 2026. The move is aimed at managing the substantial liquidity currently available in the financial system and supporting monetary and interest-rate stability.
India sends eighth relief flight with 35 tonnes of flood aid to Kathmandu
India has sent its eighth relief flight carrying 35 tonnes of technical equipment and emergency supplies to support response efforts following the devastating Bhote Koshi floods in Nepal. Indian Ministry of External Affairs spokesperson Randhir Jaiswal said on X that the Indian Air Force cargo aircraft had departed for Kathmandu with equipment to support humanitarian operations. The shipment includes specialised equipment for National Disaster Response Force personnel, search-and-rescue gear, forensic materials and field supplies for Indian Army teams assisting authorities on the ground. India has continued providing medical, technical and logistical assistance in coordination with Nepal.
Nepal Airlines waives international cargo fees for flood relief supplies
Nepal Airlines Corporation has decided to waive cargo and transportation charges for one month on humanitarian relief supplies transported from its international stations. The waiver, introduced under the corporation’s corporate social responsibility programme, will cover food, medicines, clothing and other essential emergency supplies being sent to flood-affected communities. The national flag carrier will coordinate with diplomatic missions and use official embassy documentation to facilitate the transportation of relief materials and ensure that international assistance reaches affected areas as quickly as possible.
Minister orders easier LPG supply and cylinder exchange system
Minister for Industry, Commerce and Supplies Gauri Kumari Yadav has directed officials of Nepal Oil Corporation and LPG gas industries to ensure smooth and convenient supply of cooking gas to consumers. She also instructed authorities to introduce a system in the Kathmandu Valley allowing consumers to exchange cylinders from one company for those of another at the same price when their regular brand is unavailable. The arrangement is intended to ease supply disruptions caused by recent floods and ensure consumers can obtain LPG without having to wait for their usual brand. Minister Yadav warned that action would be taken under prevailing laws against those found creating artificial shortages, causing unnecessary hardship to consumers or violating prescribed rules.
Sri Lanka contributes $1 million to Bhote Koshi flood relief
Sri Lanka has provided $1 million to support humanitarian and relief operations following the devastating floods in Nepal. Sri Lankan Ambassador to Nepal Ruwanthi Delpitiya handed over the contribution to Foreign Minister Shisir Khanal during a meeting at the Ministry of Foreign Affairs on Wednesday. Ambassador Delpitiya conveyed the condolences and solidarity of the Sri Lankan government and people to Nepal over the loss of lives and destruction caused by the disaster. Minister Khanal thanked Sri Lanka for its support, describing the contribution as a reflection of the longstanding friendship and cooperation between the two countries.
Health Insurance Board waives documents and copayments in flood-hit districts
The Health Insurance Board has eased health insurance procedures for people affected by the August 26 floods in Rasuwa, Nuwakot and Dhading. Hospitals in the three districts, which have been designated as crisis-affected areas for three months, have been instructed to provide services without requiring physical insurance documents. Beneficiaries can instead be verified through the IMIS user software system. The board has also waived copayments and maximum coverage limits for the duration of the emergency declaration. Hospitals have been directed to prioritise treatment and avoid administrative delays so that displaced and vulnerable people can access essential medical care and medicines.
Madhesh govt moves to implement budget from start of fiscal year
The Madhesh Province government has introduced measures to ensure that development projects and budget programmes begin from the start of the fiscal year rather than being rushed toward the end. The Ministry of Finance has issued implementation guidelines and published the appropriation act, red book and annual development programmes on its website. The move is intended to allow ministries to begin project preparations, cost estimates and tendering procedures immediately. The government has also removed projects costing less than Rs 10 million from its Rs 41.138 billion budget to reduce fragmented, committee-driven schemes and focus resources on higher-impact infrastructure projects. Experts, however, have stressed that faster spending alone will not guarantee successful implementation and that effective technical monitoring, transparent contractor management and strong execution remain essential.
Lawmaker Chaulagai voices frustration over severe LPG shortage
Ruling coalition lawmaker Madhu Chaulagai has expressed strong dissatisfaction with the government over the severe shortage of liquefied petroleum gas (LPG) in the market. Speaking in Parliament, Chaulagai said disruptions to transportation along flood-damaged highways had forced consumers to endure long queues for cooking gas. He questioned the government’s response to the supply crisis and warned that representatives were finding it increasingly difficult to face the public amid growing hardship. He urged the government to take immediate administrative measures to restore supply chains and ensure regular distribution of essential cooking fuel before public frustration escalates further.
Government allows cross-brand LPG cylinder exchange in Kathmandu Valley
The government has introduced a temporary arrangement allowing consumers in the Kathmandu Valley to exchange LPG cylinders between different brands amid supply disruptions caused by recent floods. Minister for Industry, Commerce and Supplies Gauri Kumari Yadav has directed the Nepal Oil Corporation (NOC) and gas bottling companies to allow consumers whose regular brand is unavailable to obtain a filled cylinder from another company at the prevailing market price. The measure is intended to provide immediate relief to households affected by disruptions along flood-damaged transport routes. Minister Yadav has also warned that companies or traders found creating artificial shortages, manipulating the market or violating the arrangement will face legal action.
Mustang Customs collects over Rs 560 million after northern trade routes close
Mustang Customs Office collected more than Rs 560 million in revenue between August 26 and September 8 after the closure of the Rasuwagadhi-Kerung and Tatopani border points redirected trade through the Korala checkpoint. According to customs officials, 88 cargo containers and 130 electric vehicles (EVs) were cleared through Korala during the period. The office’s cumulative revenue has now reached Rs 1.08 billion. The customs office had collected Rs 6.92 billion in the previous fiscal year. The sharp increase in activity following the closure of other northern border points has highlighted Korala’s growing importance as an alternative trade route.
Parliamentary committee questions sugar price hikes amid market shortage
A parliamentary committee has raised concerns over sharp increases in sugar prices despite sufficient domestic stocks. Lawmakers noted that the retail price of sugar has risen from Rs 96 per kilogram, including value-added tax on a base price of Rs 85, to between Rs 105 and Rs 130. The committee criticised the authorities for inadequate market monitoring and called for greater transparency over delays in imports. Lawmakers also urged the government to expedite legislation and strengthen measures against black marketing, cartelisation and unjustified price increases. They stressed that effective market intervention and strict monitoring are necessary to prevent artificial shortages, protect consumers and ensure fair pricing.
Landownership certificates distributed to six landless families in Makwanpur
The District Land Problem Resolution Committee, Makwanpur, has distributed landownership certificates to six landless families in Ward No. 3 of Makwanpurgadhi Rural Municipality. The families, who had been living without legal ownership of the land they occupied, have now received formal land titles. The government has prioritised resolving land-related problems faced by landless Dalits, landless settlers and unmanaged squatters. The distribution is part of the government’s broader effort to provide legal land ownership and address longstanding land-related issues.
Upper Mustang tourism continues despite 5.3-magnitude earthquake
Tourism activities in Upper Mustang and Lo Manthang have continued normally following a 5.3-magnitude earthquake that struck Lo Manthang at 9:33 pm on Tuesday. The National Earthquake Monitoring and Research Centre and local authorities reported minor damage to a few monasteries, but key tourism infrastructure remains operational. Roads, trekking trails, communication services, hotels and lodges have not been disrupted. Authorities have advised tourists to remain cautious following the earthquake and subsequent aftershocks but said there is no need for panic. Upper Mustang and Lo Manthang remain open to visitors.
Bhat-Bhateni reopens ninth rebuilt branch after Gen Z unrest
Bhat-Bhateni Superstore has resumed operations at its Dharan branch following reconstruction after the September 8-9, 2025 protests, bringing the number of rebuilt branches that have reopened to nine. The unrest destroyed 12 branches and damaged nine others across the country. The company’s network previously recorded average daily transactions of around Rs 105 million and employed nearly 10,000 people. Company officials said the reconstruction demonstrates their commitment to restoring local business activity and employment. The rebuilt Dharan outlet features updated architectural standards, modern customer facilities and enhanced safety systems. Branches in Baluwatar, Damak and Hetauda are still awaiting reconstruction.
Wednesday last day to qualify for 12% dividend from two Prabhu funds
Wednesday was the final day for investors to qualify for the 12 percent cash dividend announced by Prabhu Select Fund and Prabhu Smart Fund under Prabhu Mutual Fund. Both funds have announced cash dividends equivalent to 12 percent, including applicable taxes. Their book closure is scheduled for Thursday, meaning investors must have held the units through Wednesday’s trading session to be eligible for the dividend. The distributions come as the funds prepare to return profits to unitholders following their financial performance during the fiscal year.
Parsa Police seize 17 illegally imported electric scooters
Police in Parsa have seized 17 electric scooters that were allegedly imported without customs clearance from different locations in Birgunj Metropolitan City. The scooters, seized during an operation on Tuesday afternoon, have an estimated combined value of more than Rs 1.3 million. Police have initiated procedures to hand them over to the Birgunj Customs Office for further legal action. Authorities said they are intensifying border surveillance and targeted operations to curb illegal imports and tax evasion, noting that unauthorised vehicle imports undermine legitimate businesses and deprive the government of customs revenue.
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