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 business developments present a mixed picture of financial resilience, infrastructure vulnerability and institutional adjustment. Gold prices eased to Rs 303,900 per tola after a two-day surge, highlighting continued volatility in the domestic precious-metals market, while silver moved higher. Financial-market operations faced a more direct challenge as a data-center failure forced NEPSE to suspend trading, prompting SEBON to order an investigation and recommend safeguards against recurrence.
Disaster-related pressures remain substantial. Floods, landslides and highway closures are disrupting transport and commerce, while reconstruction needs following the Bhote Koshi disaster have been estimated at Rs 100 billion. Nearly Rs 15 billion has been accumulated in government disaster-relief funds, indicating significant financial mobilization but also the scale of resources required for recovery.
Infrastructure and public-service systems face broader capacity challenges. Delayed projects in Sudurpashchim, LP gas supply vulnerabilities and planned electricity interruptions in Kathmandu underscore weaknesses in implementation, distribution and system resilience. At the same time, the proposed withdrawal of VAT on electricity signals an effort to encourage energy consumption and reduce consumer costs.
Agriculture, customs and livestock services show areas of ongoing economic activity, with Birgunj Customs collecting over Rs 23 billion in its first month and Lumbini expanding production programs. Meanwhile, SEBON’s proposed IPO eligibility framework points toward more rules-based capital-market regulation. Globally, IMF concerns over inflation, debt and AI investment add external risks to Nepal’s economic environment.
Gold price declines in Nepali market
Gold prices in Nepal declined on Monday after recording gains for two consecutive trading days. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold fell by Rs 1,300 per tola, bringing it to Rs 303,900 per tola. One tola is equivalent to approximately 11.66 grams. Gold had gained Rs 3,600 per tola on Friday and another Rs 2,100 on Sunday, for a combined increase of Rs 5,700 over the two days. The rise followed a Rs 2,300 decline on Thursday. Silver prices moved in the opposite direction on Monday, increasing by Rs 10 per tola to Rs 4,805.
NEPSE suspends regular trading over data center glitch
The Nepal Stock Exchange (NEPSE) on Monday suspended the regular securities trading session for September 21 following a technical problem at the Data Hub data center, where the servers of 72 trading member companies are hosted. In a notice issued on Monday, NEPSE said the technical problem began on the morning of September 20 and remained unresolved despite efforts by technical teams to restore the system. The exchange warned that continuing to operate the trading platform under the existing conditions could potentially damage its core infrastructure. The Stock Brokers Association of Nepal had also formally requested NEPSE to suspend the day’s trading session. Following the request, NEPSE decided to halt trading on September 21 under Rule 21 (1) of the Securities Listing and Trading Regulations, 2018. The exchange said the suspension was intended to minimize the risk of further system damage while efforts continue to resolve the data center problem.
SEBON orders probe into technical issue that halted share trading
The Securities Board of Nepal (SEBON) instructed the Nepal Stock Exchange (NEPSE) to investigate the technical problem that disrupted share trading and submit a report within a week. According to the SEBON spokesperson, NEPSE has been asked to examine the technical failure at the Data Hub data center, which hosts the servers of 72 securities broker companies operating through NEPSE’s Trading Management System (TMS). The problem emerged on Sunday morning and could not be resolved, prompting the suspension of trading. SEBON said it deployed a five-member inspection team led by a deputy executive director after being notified of the disruption. NEPSE has been directed to submit its findings by September 28, along with recommendations and necessary improvements to prevent similar incidents in the future.
Disaster relief funds approach Rs 15 billion
Government disaster relief funds have received nearly Rs 15 billion in contributions following the floods that struck the Bhote Koshi-Trishuli river system on August 26. The combined balance of the Prime Minister Natural Disaster Rescue Fund and the Prime Minister Relief Fund currently stands at Rs 14.889 billion, according to the Office of the Prime Minister and Council of Ministers. The government has already allocated Rs 1 billion from the funds to assist people affected by the floods. Of the total amount, Rs 11.142 billion has been deposited in accounts at nine commercial banks. The government also holds USD 24.474 million in dollar-denominated accounts at Himalayan Bank and Laxmi Sunrise Bank.
Sunil Lamsal estimates Rs 100 billion needed for Bhote Koshi reconstruction
Minister for Infrastructure Development Sunil Lamsal has estimated that around Rs 100 billion will be required for reconstruction and infrastructure management following the Bhote Koshi disaster. Speaking at a meeting of the Infrastructure Development Committee at Singha Durbar on Monday, Lamsal said the initial estimate prepared by the disaster authority stood at Rs 90 billion. The estimate covers damaged roads and bridges, two alternative routes and measures to reduce disaster-related risks. He said emergency procurement processes had been initiated in phases on September 27, October 1 and October 2 to restore connectivity. Reconstruction work is also progressing in challenging areas such as Krishnabhir with the support of geotechnical experts. Lamsal said the government is coordinating with the Ministry of Finance to ensure that reconstruction work is not delayed because of funding shortages. He added that restoring drinking water infrastructure would also be a priority, including plans to treat and distribute river water as the dry season approaches.
Rainfall, floods and landslides disrupt transport and business activity
Continued rainfall, flooding and landslides have disrupted transportation and economic activity in several parts of Nepal, with major highways either blocked or operating with restrictions. The disruptions have been particularly severe in Rasuwa, Nuwakot, Dhading and Sankhuwasabha, affecting the movement of passengers and cargo. All major highways in Rasuwa remain closed following floods in the Bhotekoshi River on August 26. The Pasang Lhamu Highway in Nuwakot remains closed, while vehicle movement on the Tokha-Chhahare road has been restricted during nighttime. Traffic is operating in one-way sections of the Prithvi Highway, while separate operating schedules are in place for passenger and cargo vehicles on the BP Highway. Meanwhile, a landslide has blocked the Koshi Highway in Sankhuwasabha, further disrupting the movement of people and goods.
Industry minister outlines technical approach to tackling LP gas shortages
Minister for Industry, Commerce and Supplies Deepak Kumar Sah has outlined the government’s approach to addressing recurring shortages of liquefied petroleum gas (LP gas). Speaking in Parliament during an ordinary session in Kathmandu on Monday, September 21, Sah said the ministry is using a range of analytical tools to identify and address weaknesses throughout the LP gas supply chain. He said the ministry has adopted the “fishbone diagram” as a technical tool to identify the underlying causes of supply disruptions rather than focusing only on individual operational failures. Sah cited several structural challenges, including heavy dependence on imports, fluctuations in international prices, uneven distribution networks between bottling plants and dealers, delays in returning empty cylinders and a lack of digital tracking systems. He said the government has developed short-, medium- and long-term measures covering transportation times, pricing safeguards and greater traceability across the supply chain.
Sudurpashchim identifies 30 stalled infrastructure projects
The Ministry of Physical Infrastructure Development in Sudurpashchim Province has identified 30 multi-year infrastructure projects as critically delayed amid persistent problems with contractors. The projects are part of 193 public works projects classified as lagging across the province. According to the provincial white paper covering fiscal years 2017/18 to 2025/26, the 30 critically delayed contracts include 24 road projects and six bridge projects. Physical progress on the projects ranges from 20 to 90 percent, while financial progress stands between 19 and 89 percent. Several contractors have been associated with multiple stalled projects, including Thegim Construction of Dhangadhi and CAB Construction of Lalitpur. Minister for Physical Infrastructure Om Bikram Bhat said the provincial government plans to take legal action against contractors responsible for prolonged delays, including possible blacklisting and contract termination. He said stalled projects would be restarted through new procurement processes where necessary.
Lumbini expands agricultural production and livestock services
The Lumbini Province government has expanded programs aimed at increasing agricultural production, improving irrigation and distributing quality seeds while supporting household incomes during fiscal years 2024/25 and 2025/26. Provincial data show that commercial crop promotion programs expanded cultivation across 1,759.23 hectares and benefited 3,978 farming households. Newly developed irrigation infrastructure covered an additional 2,324.7 hectares. Quality seed multiplication programs produced 4,470.6 metric tons of seeds across 1,730.8 hectares, while livelihood-focused programs provided support to 6,750 families. Livestock services were also expanded during the period. Veterinary agencies vaccinated 2,675,828 animals, provided treatment to 1,033,191 livestock and carried out artificial insemination on 95,834 cattle. The department generated Rs 18.7 million in internal revenue during fiscal year 2025/26.
Birgunj Customs collects more than Rs 23 billion in first month of fiscal year
The Birgunj Customs Office collected more than Rs 23.46 billion in revenue during the first month of the fiscal year, ending September 16. According to the office’s chief customs administrator, monthly revenue totaled Rs 23.461 billion, equivalent to 99.75 percent of the monthly target and 14.52 percent of the annual revenue target. Soft drink concentrates were among the leading sources of customs revenue, generating Rs 61.5 million. Imports of commercial buses, trucks and chassis contributed Rs 56.1 million, while private vehicles and jeeps generated Rs 42.9 million. Imports of raw sunflower oil contributed another Rs 27.4 million. Officials expect increased commercial activity during the festive season to further boost cross-border trade through customs points along Nepal’s southern border.
Government moves to withdraw VAT on electricity bills
The government is preparing to remove the value-added tax (VAT) currently levied on electricity bills. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha proposed scrapping the tax, a proposal that Finance Minister Dr. Swarnim Wagle has agreed to, according to sources. The two ministers discussed the issue on Sunday evening, following which Wagle agreed to take the proposal to the upcoming Cabinet meeting. Under the fiscal year 2026/27 budget, the government introduced VAT rates ranging from 5 percent to 13 percent on electricity consumption. Household consumers were subject to a 5 percent rate, while industrial users were charged 13 percent. The tax drew criticism amid concerns that it could discourage electricity consumption at a time when the government is seeking to increase domestic energy use. The Ministry of Energy has maintained that expanding electricity consumption is a key policy priority and that the tax placed an additional financial burden on consumers. Wagle has previously removed an additional 3 percent equity fee that had been imposed on the education and health sectors.
Kathmandu to face intermittent nighttime power cuts for 11 days
Electricity supply in several parts of Kathmandu will be disrupted intermittently for 11 days as the Nepal Electricity Authority (NEA) carries out technical upgrades and distribution-line reinforcement work at the Teku substation. The Lapsiphedi and Changunarayan Substation Construction Project will replace aging relays and install an automated substation system as part of the maintenance work. Project chief Nitish Paudel said the scheduled outages will last up to three hours each night, either from 11 pm to 2 am or from 2 am to 5 am, beginning September 21. Areas served by feeders under the Ratnapark, Pulchowk and Kuleshwor distribution centers will be affected. These include Sundhara, Thapathali, Kalimati, Pulchowk, Bhaisepati and Kirtipur. The NEA said the temporary interruptions are necessary to facilitate the modernization and reinforcement work.
Restoration of fire-damaged Singha Durbar estimated at Rs 1.5 billion
The government estimates that restoring the main Singha Durbar building will cost around Rs 1.5 billion, excluding interior decoration and the restoration of damaged artifacts and furniture. The estimate covers structural construction and contingency expenses associated with the planned retrofitting project. The work will involve completely replacing the building’s old internal iron I-beam structures. Structural components will also be reconstructed from the roof downward in accordance with the approved retrofitting design. Additional costs will arise from interior restoration, including the repair or replacement of archaeological artifacts and furniture damaged or destroyed in the arson on September 9, 2025. The government plans to award the restoration work under a multi-year contract once the required design receives approval.
Bamboo craft training creates income opportunities for families of persons with disabilities in Bardiya
A month-long bamboo craft training program has provided families of persons with disabilities in Bardiya with a potential home-based source of income. The Disability Rehabilitation Center organized the program for 20 participants and family members from Gulariya, Bansgadhi, Barbardiya and Badhaiyatal. The initiative received support from RRN, DGM Nepal and the ABLIS Foundation. Participants, including Sita Chaudhary and Deviram Tharu, have begun producing items such as stools, prayer baskets and hangers while continuing to manage their caregiving responsibilities. Center chairman Netra Sapkota said Bardiya is home to around 17,000 persons with disabilities, including approximately 5,000 with total disabilities. He said the center would assist with marketing the products and obtain bamboo and other raw materials from local community forests. The initiative, he added, is intended to strengthen economic self-reliance among participating families.
Authorities destroy rotten fish seized during festive market inspections in Bhojpur
Authorities in Bhojpur have intensified food safety inspections ahead of the festive season, carrying out surprise checks at 10 meat and fish shops. A joint inspection team seized 17.445 kilograms of rotten and foul-smelling fish from Dajubhai Machha Pasal and destroyed the stock at the site after finding serious hygiene violations. Pushpa Raj Dahal, head of the Veterinary Hospital and Livestock Service Expert Center, said the inspections are aimed at reducing food-related health risks during the festive period. The inspection team included Ministry of Industry, Agriculture and Cooperatives technical expert Dr. Dev Kumar Darlami, along with representatives from the District Administration Office and District Police Office. Officials also instructed businesses that failed to meet required standards to comply with registration and sanitation requirements.
China provides Rs 11 million for children affected by Bhote Koshi floods
The Chinese government has provided Rs 11 million to support children affected by the Bhote Koshi floods. Chinese Ambassador to Nepal Zhang Maoming handed over a cheque for the amount to Minister for Education and Sports Sasmit Pokharel at the Ministry of Education and Sports on Monday. Pokharel thanked the Chinese government for its assistance following the disaster and expressed confidence that cooperation and coordination between Nepal and China would continue. Ambassador Zhang said the financial assistance was specifically intended to provide direct support to children affected by the Bhote Koshi floods.
SEBON proposes eligibility rules for companies seeking IPO approval
The Securities Board of Nepal (SEBON) has proposed new eligibility requirements for companies seeking to issue initial public offerings (IPOs) under its draft General Eligibility Guidelines for Public Issuance, 2026. The guidelines are currently in draft form and will come into force following formal implementation. Once adopted, companies that meet the specified requirements would be able to apply for IPO approval at any time, replacing the previous system in which approvals were subject to the discretion of the board leadership. Under the proposed framework, companies would need to demonstrate sound corporate governance, financial strength, operational readiness, adequate investor information and the capacity to use IPO proceeds appropriately. SEBON also plans to introduce a risk-based regulatory framework. Additional requirements could be imposed depending on a company’s sector, business risks and potential impact on the capital market.
Beni Hydropower Project IPO allotted through open lottery
NMB Capital, the share registrar and issue manager, completed the allotment of ordinary shares under the initial public offering (IPO) of Beni Hydropower Project on September 21. The shares were distributed through an open lottery after demand significantly exceeded the number of shares available during the subscription period from September 7 to September 11. The company had offered 863,200 shares worth Rs 86.32 million at a face value of Rs 100 per share. Of the 2,351,560 applications submitted for 26,290,910 shares, 2,305,233 applications were verified as eligible. A total of 86,320 applicants were selected through the lottery and received 10 shares each.
Machhapuchhre Bank calls AGM with dividend proposals
Machhapuchhre Bank has scheduled its annual general meeting (AGM) for October 14. The meeting will consider a proposal to distribute 3 percent bonus shares and a 3 percent cash dividend, including taxes, based on the bank’s existing paid-up capital. Shareholders will also consider an 8.25 percent cash dividend, inclusive of taxes, for perpetual non-cumulative preference shareholders through mid-July. The AGM will further discuss granting necessary authority to the board of directors and formally approving the appointment of Arjun Kumar Gautam as an independent director for a four-year term. The bank has scheduled a one-day book closure for September 28.
IMF chief warns of inflation, debt and AI investment risks
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has cautioned that persistent inflation, higher debt-servicing costs and rapid investment in artificial intelligence could pose risks to the global economy. Speaking at a special Qatar Economic Forum event in New York on Sunday, Georgieva said inflation has been slower to decline than anticipated in many countries. She added that some central banks could face pressure to maintain or further tighten monetary policy. Georgieva also warned that large-scale AI investment financed through debt could create broader financial vulnerabilities if anticipated returns fail to materialize. She said increasingly interconnected financial transactions could amplify such risks. Although many of the financial risks are currently concentrated in the United States, Georgieva noted that economies in Europe and Asia could also be affected through international supply chains. Despite the risks, she said the global economy has continued to grow at around 3 percent. The IMF is scheduled to publish its latest global economic projections in October.
“Pension Patta” movie earns Rs 37.9 million in opening week
Nepali film Pension Patta generated Rs 37.9 million during its first week of release, according to the official box office figures published by the Film Development Board through 11:59 pm on September 20. The film attracted 129,118 viewers during its opening week. Directed by Maotse Gurung, Pension Patta stars Dayahang Rai, Gaumaya Gurung, Wilson Bikram Rai, Buddhi Tamang and other actors. Meanwhile, Behuli, which opened alongside Pension Patta, recorded first-week earnings of Rs 26.8 million, with 94,885 people watching the film. Directed by Sashan Kandel, Behuli is a romantic family drama featuring Paras Bam Thakuri, Divya Rayamajhi, Sushant Karki, Sarita Giri, Bishal Pahari, Karma Lama and Dipak Gauli, among others.
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