KATHMANDU: Nepal News brings you a daily roundup of economic activities in Nepal. This summary provides concise updates across key sectors, keeping you informed on the latest market trends, policy changes, and financial developments. Here are today’s top economic highlights.

Heavy Rain Disrupts Nine Major Highways Across Nepal:
Continuous rainfall has caused landslides and floods, blocking nine major highways across Nepal, the Nepal Police reported. Complete closures include the Koshi Highway at Bhotkhola (Sankhuwasabha), the Nepal-China bridge in Rasuwa, Pasang Lhamu Highway (Rasuwa), and Arniko Highway (Sindhupalchowk). Other affected routes include Kaligandaki Corridor (Baglung), Beni-Darbang road (Myagdi), Jajarkot road (Rukum Paschim), Bheri Corridor (Dolpa), and Gokuleshwor-Darchula road (Darchula). Some roads, including sections of the Mid-Hill, Prithivi, and Kaligandaki corridors, are open for one-way traffic. Authorities continue monitoring the situation as monsoon-related disruptions affect travel and transport throughout the country.

NEPSE Rebounds: Index Gains 23 Points as Market Sentiment Improves:
The Nepal Stock Exchange (NEPSE) rose by 23.03 points last week, ending a bearish streak that wiped out over Rs 378 billion in the past month. The index opened at 2,757.97 on Sunday and closed at 2,781 on Thursday, hitting a weekly high of 2,824.85 and a low of 2,730.74. Ten of the 13 market groups saw gains, led by ‘Others’ with a 4.57% rise. Bikash Hydropower soared 60.98%, while Narayani Development Bank fell 44.46%. Total turnover increased 8.38% to Rs 32.26 billion, and market capitalization grew to Rs 4.647 trillion, generating Rs 39 billion in investor gains.

Nepal Advances Plan to Exit FATF Grey List, Showcases Progress in Tokyo:
Nepal has formally initiated steps to exit the Financial Action Task Force (FATF) grey list, following its inclusion in February for failing to meet international anti-money laundering and counter-terrorist financing standards. At the plenary session of the Asia-Pacific Group (APG) in Tokyo, Nepal presented progress on its quarterly action plan. Led by PM Office Secretary Phanindra Gautam, the Nepali delegation, including Nepal Rastra Bank Deputy Governor Dr. Neelam Dhungana Timilsina, highlighted legal reforms, strengthened monitoring of high-risk sectors like casinos, real estate, and precious metals, and established coordination mechanisms. The government remains committed to transparent, timely implementation to secure removal.

NRB Tightens Rules on Bank CSR Funds: Transparent, Targeted Spending Now Mandatory:
The Nepal Rastra Bank has issued new guidelines to prevent misuse of corporate social responsibility (CSR) funds by banks and financial institutions. Banks must allocate a fixed percentage of net profit to CSR funds, spend at least 60% within the same fiscal year, prepare annual action plans, and submit semi-annual activity reports. Funds can support education, health, humanitarian relief, environmental protection, financial literacy, and skill-building programs to benefit targeted communities.

Sugarcane Farmers Threaten Indefinite Highway Blockade from September 10:
Sugarcane farmers from across Nepal, who have been staging protests in the capital since August 24 demanding subsidies and government support, have warned of an indefinite blockade along the national highway in Hariwan, Sarlahi, starting September 10 if their demands remain unmet. The announcement was made at a Maitighar press conference on Saturday. Protest coordinator Shyam Babu Ray said farmers had endured rain and illness during the sit-in, yet the government has ignored their calls. Organized by the Sugarcane Producers Federation of Nepal, the protest opposes subsidy cuts and seeks farmers’ representation in price determination.

Nepal Explores Private Sector Entry into Electricity Trading to Boost Competition:
Following the release of the government task force report, debate is heating up on opening Nepal’s electricity trading to the private sector. Currently dominated by the Nepal Electricity Authority (NEA), the report recommends allowing private players to ensure competitive pricing and market expansion. Using provisions in the Electricity Act 2049, private producers could sell power domestically or internationally, with mechanisms like NepEx or direct market entry. Experts say private participation could accelerate thousands of projects, ensure PPA-backed development, and improve consumer access to affordable, quality electricity. Regulatory oversight would remain with the Electricity Regulatory Commission.

Nepalis Abroad Send Rs 4.72 Billion Daily, Driving Record Remittance Inflows:
Nepalis working overseas sent home Rs 1.72 trillion in the last fiscal year, averaging Rs 4.72 billion daily, according to Nepal Rastra Bank. This marks a 19% year-on-year rise and nearly matches the government’s annual budget. Record inflows are driven by rising outmigration, stronger US dollar and other foreign currencies, and a shift from informal to formal transfer channels. Over 839,000 workers left or renewed permits last year, with many moving to Western countries. While remittances uplift households through education and daily expenses, low investment and consumption highlight Nepal’s deep dependence on foreign earnings amid a sluggish domestic economy.

Nepal Social Media Listing Standoff: Companies Resist Due to Content Control Rules:
Nepal’s communication minister, Prithvi Subba Gurung, has publicly criticized popular social media platforms for refusing to register under the country’s 2080 BS social media directive. While companies like Meta, Alphabet, and Microsoft are registered for tax purposes and pay VAT and digital service taxes, they resist government listing due to concerns over strict content controls. The directive mandates content removal within 24 hours upon complaints, raising fears of overreach. Industry groups, including the Asia Internet Coalition, have highlighted these issues, citing challenges to fair content review. The government recently issued a seven-day ultimatum for compliance.

Life Insurers collect Rs. 3.27B in first premiums, shrawan 2082/83:
Nepal’s life insurance sector saw strong growth in Shrawan 2082/83, with companies collectively collecting over NPR 3.27 billion in first premiums. Nepal Life Insurance led the sector with NPR 103 crore, followed by National Life (NPR 42.37 crore) and Citizen Life (NPR 25.01 crore). Other top performers included Himalayan Life (NPR 23.8 crore), SuryaJyoti Life (NPR 22.78 crore), LIC Nepal (NPR 21.35 crore), and IME Life (NPR 15.27 crore), reflecting robust investor interest and sectoral expansion.

Nepal Seeks Chinese Flexibility to Boost Agricultural Exports:
Nepal has urged China to adopt flexibility in customs administration to ease exports of buffalo meat, dairy products, vegetables, fruits, and herbs. The proposal was made during a bilateral meeting in Kathmandu between Agriculture Minister Ramnath Adhikari and Chinese Customs Deputy Minister Wang Lingjun. Nepal is pushing for exports of thermally processed buffalo meat, ghee, butter, buttermilk, silage, and animal feed, while also seeking concessions on citrus fruit standards. China acknowledged Nepal’s priority status as a neighbor, agreeing to create a joint mechanism to facilitate trade. Currently, 34 Nepali companies export 34 agricultural products to China.

IBN Approves License Draft for 669 MW Lower Arun Hydropower Project:
The 66th meeting of Investment Board Nepal (IBN), chaired by Prime Minister KP Sharma Oli, has approved the draft license for the 669 MW Lower Arun Hydropower Project and authorized the IBN Chief Executive Officer to issue the license. IBN spokesperson Pradyumna Prasad Upadhyay said the board also endorsed the draft for direct investment in the Arun-3 Hydropower Project in Sankhuwasabha, with a recommendation to forward it to the cabinet. The board further decided to authorize its CEO to issue a survey license for the proposed unsolicited ‘Auto Service Eco-Industrial Park’ project.

Karnali’s Bridge Projects Face Funding Shortfall, Pushed to Multi-Year Plan:
The Karnali provincial government’s allocation of Rs. 105 million for seven motorable bridges in Rukum West has fallen short, forcing officials to propose their inclusion in a multi-year plan. The Infrastructure Development Office in Chaurjahari has submitted the file to the Ministry of Physical Infrastructure and Urban Development, warning that without the plan, the bridges risk being left incomplete. Provincial Assembly Member Mahendra K.C. said the absence of bridges in key locations like Chhinkhet, Puma, and Gharikhola continues to disrupt travel, schooling, and livelihoods, especially during the rainy season, stressing the urgency of timely approval and implementation.

KMC Fines Distillery After Fly Found in Sealed Mustang Gold Bottle:
Kathmandu Metropolitan City (KMC) has fined Dhanusha Distillery Pvt. Ltd. Rs 200,000 after a sealed bottle of its Mustang Gold alcoholic beverage was found to contain a fly. The inspection, led by KMC’s Agriculture and Livestock Department, followed consumer complaints. Department head Nurnidhi Nyaupane confirmed the presence of the inedible object after lab tests and said the fine was imposed under the Market Management and Monitoring Act, 2018.
KMC teams also inspected wards 23 and 24, including Basantapur and Indra Chowk, where inedible oil was destroyed in four restaurants and one sweet shop. While KMC pledges routine inspections, critics argue enforcement remains inconsistent, with actions often seen as publicity-driven rather than systemic consumer protection.

Gold Smashes Rs 200,000 Mark in Nepal as Prices Soar:
Gold prices skyrocketed last week, crossing Rs 200,000 per tola for the first time, rising Rs 3,100 amid global market moves. FENEGOSIDA reported weekly fluctuations from Rs 197,200 to Rs 200,600 per tola, driven by US interest rate cuts, a weaker Indian rupee, and heavy gold buying by China, India, and Turkey. Silver edged up slightly by Rs 10, closing at Rs 2,360 per tola. Analysts say gold continues to shine as a safe haven in a low-interest, volatile market.