KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The latest economic indicators present a mixed but broadly active picture of Nepal’s economy, combining stronger investment, trade, tourism, infrastructure and consumer activity with several external and logistical constraints. Foreign direct investment commitments exceeded Rs 11.12 billion in the first two months of FY 2026/27, led by ICT in project numbers and tourism in capital commitments, while Birgunj Customs collected Rs 23.46 billion in a month, indicating sustained import and trade activity.
Mustang Customs also recorded a sharp revenue increase, although this was partly linked to the disruption at Rasuwagadhi and the resulting shift in cross-border trade through Korala. Electricity exports remain an important source of foreign earnings, with Nepal earning Rs 5.09 billion from power sales, but the stalled 40 MW export to Bangladesh highlights Nepal’s dependence on Indian transmission approvals.
Similarly, demands to remove non-tariff barriers in India and concerns over Malaysia’s recruitment system show continuing challenges in market access and labour mobility. Tourism faces localized difficulties, particularly in Mustang, where flood-related road disruptions contributed to a 47.78 percent decline in arrivals. At the same time, new air connectivity, expanded electric-bus services, rising mountain tourism revenue and growing apple exports indicate opportunities for diversification. Rising gold and silver prices and stronger festive-season commercial activity further point to continued consumer and investment demand. Overall, the data reflects economic expansion alongside infrastructure, trade and external-market vulnerabilities.
Gold and silver prices rise in domestic market
The prices of gold and silver increased in Nepal on Sunday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold rose by Rs 2,100 per tola (11.66 grams) to reach Rs 305,200 per tola. Gold had traded at Rs 303,100 per tola on Friday, the previous trading day. Silver also recorded an increase, with its price rising by Rs 20 per tola to Rs 4,795. Silver was traded at Rs 4,775 per tola on Friday.
Nepal asks India to remove non-tariff barriers affecting exports
Nepal has called on India to address non-tariff barriers that have been affecting Nepali exports at various times. The request was made during a meeting of the Inter-Governmental Subcommittee on Trade and Transit between Nepal and India, held in New Delhi on Thursday. According to the Ministry of Industry, Commerce and Supplies, Nepal specifically raised difficulties faced by exporters of jute and steel products seeking access to the Indian market. Nepal also urged India to include Nepali agricultural products in its Plant Quarantine Order, in line with an understanding reached between the two countries. The Indian side, meanwhile, proposed measures aimed at improving market access for agricultural, pharmaceutical and dairy products. Discussions also covered customs facilitation and industrial property rights, according to the ministry.
Nepal secures over Rs 11.12 billion in FDI commitments in first two months of FY 2026/27
Nepal received foreign direct investment (FDI) commitments worth more than Rs 11.12 billion for 328 projects during the first two months of fiscal year 2026/27, according to the Department of Industry under the Ministry of Industry, Commerce and Supplies. The department’s latest monthly report shows that 136 FDI projects were approved between mid-August and mid-September, involving capital commitments of Rs 6.35 billion. These projects are expected to create 983 jobs, taking the total projected employment from FDI-approved projects during the two-month period to 3,447. In terms of the number of projects, the Information and Communication Technology (ICT) sector led with 212 projects and investment commitments of Rs 816.92 million. Tourism, however, attracted the largest amount of capital, with Rs 3.74 billion committed across 70 projects. The service sector followed with Rs 3.30 billion from 26 projects, while energy secured Rs 2 billion through a single project. Manufacturing accounted for 18 projects with investment commitments of Rs 1.24 billion.
Government incentives pave way for Flydubai’s daily Pokhara flights
Flydubai is set to become the first international airline to operate daily scheduled flights from Pokhara International Airport, with the service scheduled to begin Wednesday. The government has introduced a package of financial incentives intended to make Pokhara and Bhairahawa airports more commercially viable alternatives to Kathmandu’s airport. Under the scheme, airlines operating from the two airports will receive full waivers on landing, parking, navigation, passenger service and tourism fees until mid-September 2028. Ground-handling charges have also been reduced by 50%. Flydubai will additionally benefit from subsidised aviation fuel, with the price in Pokhara set at USD 1,275 per kilolitre, compared with USD 1,697 per kilolitre in Kathmandu. The incentives are expected to reduce the airline’s operating costs by more than Rs 700,000 per flight, according to the figures provided. The daily Dubai–Pokhara–Dubai service will restore regular international air connectivity to the region following a year-long gap after earlier charter operations ended.
India yet to approve alternative hydropower plants for Bangladesh power exports
Nepal’s planned export of 40 MW of electricity to Bangladesh remains on hold as India has not yet approved alternative Nepali hydropower projects proposed after floods damaged the designated Trishuli and Chilime plants on August 26. The Nepal Electricity Authority (NEA) has proposed the Kabeli B-1 and Solu Khola projects as replacements. Both projects have previously received approval for electricity exports to India. Although Nepal has sufficient electricity available for export, India’s transmission system requires specific project approvals before power can be routed through its network. The delay could affect Nepal’s seasonal electricity export earnings through November, although force majeure provisions shield the NEA from contractual penalties. Meanwhile, Nepal earned Rs 5.09 billion by exporting 565.6 million units of electricity to India and Bangladesh over the past month. Electricity supplies to Bangladesh are expected to resume once India approves the replacement projects.
Mustang records sharp drop in tourist arrivals after Bhote Koshi floods
Tourist arrivals in Mustang have declined significantly following the floods that affected the Bhote Koshi–Trishuli river system on August 26. According to the District Police Office, Mustang recorded a substantial fall in both domestic and international tourist arrivals between August 17 and September 16 compared with the same period last year. The district received 29,274 fewer tourists during the period than in the corresponding period last year, representing a 47.78 percent decline. Flooding and river erosion have also blocked sections of roads along the Kaligandaki Corridor, further disrupting travel to the district and putting additional pressure on the local tourism industry. Between mid-July and mid-August, Mustang received 61,263 tourists, including 30,655 domestic visitors, 31,575 visitors from SAARC countries and 193 visitors from other countries. The latest decline has raised concerns among tourism businesses already affected by disruptions to road connectivity.
Postal dispatch begins as EDLVRS streamlines driving licence printing
The Department of Transport Management under the Ministry of Physical Infrastructure and Transport has begun printing driving licences through the newly introduced Electronic Driving Licence and Vehicle Registration System (EDLVRS) in an effort to reduce backlogs and speed up distribution. Introduced at the beginning of the current fiscal year, the system enables applicants’ data to be transferred electronically from the EDLVRS to the Department of Printing, reducing the need for traditional administrative processing. After printing, the licence cards are handed over to the postal service, which dispatches them directly to the relevant provincial Transport Management Service Offices. The new process is intended to make licence issuance and renewal faster and more convenient. During the initial phase, 3,081 driving licences from Madhesh Province were printed and dispatched through the postal service.
Nepal seeks JWC meeting over Malaysia’s recruitment agency system
Nepal has sought an early meeting of the Joint Working Committee (JWC) with Malaysia to raise concerns over Kuala Lumpur’s decision to limit the number of manpower agencies authorised to recruit Nepali workers. The Ministry of Youth and Labour sent a diplomatic letter through the Ministry of Foreign Affairs requesting that the JWC meeting be convened as soon as possible. Nepal objected after Malaysia designated 25 Nepali manpower companies as “principal agencies” and another 250 as “support agencies” under its Foreign Worker Centralised Management System (FWCMS). The Nepali government has maintained that the arrangement does not comply with Nepal’s laws or the labour agreements between the two countries. It has called for equal access and a competitive recruitment environment for all licensed manpower companies.
579 climbers from 67 countries receive permits for autumn mountaineering
A total of 579 climbers from 67 countries have obtained permits to climb 11 mountains during Nepal’s autumn 2026 mountaineering season, according to the Department of Tourism. As of Saturday, permits had been issued to 432 male and 147 female climbers representing 55 teams. Climbers from 67 countries, including Nepal, have received permits for this season, with Chinese nationals making up the largest group. Mount Manaslu has attracted the highest number of climbers. A total of 493 climbers from 41 teams, comprising 366 men and 127 women, have received permits to climb the mountain. The government has collected Rs 235.18 million in mountaineering royalties from permits issued so far, including Rs 224.81 million from Manaslu alone. Other mountains have also generated revenue, with the government collecting Rs 7.78 million from Dhaulagiri I, Rs 688,050 from Makalu I and Rs 76,528 from Danga Himal.
Birgunj Customs Office collects Rs 23.46 billion in revenue in August
The Birgunj Customs Office collected Rs 23.46 billion in revenue during the second month of fiscal year 2026/27, covering the period from mid-August to mid-September. The office collected Rs 23.4615 billion, achieving 99.75 percent of its monthly revenue target. The latest collection has brought its cumulative achievement to 14.52 percent of the annual revenue target. According to the customs office, major imported goods in terms of value and revenue contribution included biscuits, pulses, textiles and garments, industrial raw materials and food products.
Sajha Yatayat starts 28 electric buses on six night routes
Sajha Yatayat has expanded its nighttime public transport service in the Kathmandu Valley, putting 28 electric buses into operation across six routes from Saturday. The expansion, introduced on the occasion of Constitution Day, increases the organisation’s existing night service fourfold. Sajha Yatayat launched nighttime operations on April 14, 2026, initially deploying seven buses on two routes. The service currently operates between Nagdhunga and the airport and between Lagankhel and Budhanilkantha. The latest expansion adds four more routes to the nighttime network.
Mustang Customs collects over Rs 3 billion in first two months
The Mustang Customs Office at Nechung, located in Lo Manthang Rural Municipality-4 of Upper Mustang, collected more than Rs 3 billion in revenue during the first two months of fiscal year 2026/27. Revenue collected through the Liji–Nechung (Korala) border point surged after the August 26 flash flood destroyed the Rasuwagadhi Customs Office in Timure, Rasuwa. The Mustang office collected Rs 263.9 million from mid-July to mid-August, but the figure jumped to Rs 2.81 billion between mid-August and mid-September. The increase was largely driven by imports of goods for the festive season, including electric vehicles, household goods, cosmetics, electronics, clothing and footwear. Imports of electric vehicles from China increased sharply, rising from 100 units in mid-July to mid-August to 1,223 units in mid-August to mid-September.
Sheep and mountain goats enter Nepal through Korala border for first time
Sheep and mountain goats have entered Nepal through the Nepal-China Korala border point in Mustang for the first time, according to the quarantine checkpoint at Nhechung in Lomanthang-4. The checkpoint said 419 sheep and mountain goats entered Nepal in four consignments over three consecutive days from the Tibet Autonomous Region. The animals entered Nepal after the Korala border point began full operations on September 16, 2025, with livestock imports taking place under existing legal and quarantine procedures. A total of 155 mountain goats entered on September 16, followed by 118 mountain goats and 46 sheep on September 17. Another 100 mountain goats entered Nepal on September 18.
Humla exports apples worth over Rs 21.6 million
Humla has exported apples worth more than Rs 21.6 million so far this season, according to the Agriculture Development Office. Traders are currently purchasing apples directly from farmers at around Rs 60 per kilogram. Apples produced in the southern parts of the district, including Tanjakot, Adanchuli, Chankheli and Sarkegad rural municipalities, are being transported to markets in other districts. According to local officials, some farmers with established apple orchards have earned as much as Rs 1 million from their produce. In previous years, limited road connectivity meant that large quantities of locally produced apples either spoiled or were used as livestock feed. Apple exports from Humla to other districts began last year.
Samsung Nepal launches festive ‘Smart Upgrade, Lucky Surprise’ campaign
Samsung Nepal has launched its festive “Smart Upgrade Gharma, Lucky Surprise Chaadma” campaign for the Dashain and Tihar shopping season. The campaign runs from September 20 to November 16, 2026, offering customers opportunities to receive cashback, assured gifts and prizes through daily and weekly lucky draws. Customers purchasing Samsung televisions, refrigerators, washing machines or air conditioners can register their purchases to participate in the campaign. The company will select 31 daily winners. Customers purchasing TVs will have a chance to win a 9-kg front-load washing machine, while buyers of washing machines, refrigerators and air conditioners can win a 55-inch UHD television. In addition, eight weekly winners will each receive a 1-ton air conditioner.
Bhat-Bhateni Tangal store to reopen today
Bhat-Bhateni Super Store’s Tangal outlet in Kathmandu is set to resume operations on Monday following the completion of reconstruction work. The company said it remains committed to providing modern facilities and quality services while prioritising customer convenience. Bhat-Bhateni also expressed gratitude to its customers, well-wishers and other stakeholders for their continued support, cooperation and trust, and said it looks forward to their continued support following the reopening.
Vikas Food Products records Rs 2.2 billion revenue in nine months
Vikas Food Products, a subsidiary of the KL Dugar Group, recorded revenue of Rs 2.20 billion during the first nine months of fiscal year 2025/26, according to the company’s latest financial data. The company’s sales performance showed a recovery during the nine-month period following modest declines in previous years. Vikas Food Products generated Rs 2.72 billion in revenue in 2025, down 0.89 percent from Rs 2.74 billion in 2024. Its revenue stood at Rs 2.80 billion in 2023 and Rs 2.25 billion in 2022. Although sales improved during the latest nine-month period, the company’s net profit margin declined slightly. Its profit margin stood at 4.73 percent, compared with 5.10 percent in 2025.
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