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.

Share Market Drops 62 Points This Week, Hits Two-Month Low

This week, the stock market fell by 62 points, or 2.22 percent, closing at 2,719 points compared to last week’s close of 2,781 points. This marks the lowest level in nearly two months. The market had peaked at 3,002 points on July 29 and has been on a declining trend since, reaching this week’s minimum. During the week, the market’s daily performance varied: it fell by 31.18 points on Sunday, rose by 12.03 points on Monday, dropped 19.89 points on Tuesday, fell 15.64 points on Wednesday, and declined 6.55 points on Thursday.

Government Drafts Amendment to Payment and Settlement Act

The government has drafted the Payment and Settlement (First Amendment) Act, 2025, to make the digital payment system more secure and transparent. The amendment revises the 2021 Act, with the Ministry of Finance seeking suggestions from stakeholders and the public. The government expects the amendment to strengthen the legal foundation for Nepal’s digital economy and modernize payment systems.

Labor Ministry Begins Digital Integration of Services

Services related to Nepal’s labor market remain complicated and paper-based, forcing citizens to visit multiple offices for work permits, employment information, or social security registration.
However, the Ministry of Labor, Employment, and Social Security has begun integrating these services digitally under the concept of “a system that runs, not people.” A decentralized online service platform is being developed to bring all labor-related services under one system.

X and WeChat Show Interest in Registration in Nepal

After Nepal’s government banned 26 social media platforms on Thursday, services such as X (formerly Twitter) and WeChat have shown interest in registering in Nepal. Following the directive from the Ministry of Communication, Information, and Technology, several platforms stopped functioning from Friday morning. According to ministry officials, representatives of X and WeChat expressed interest but have not formally submitted an application yet.

Stakeholders Stress Implementation of Cooperative Act

Stakeholders have emphasized the need to implement the Cooperative Act for transparency and reform in the cooperative sector.
Speaking at the 15th anniversary program of the Cooperative Journalists’ Society Nepal (CJN) on Thursday in Kathmandu, Minister for Land Management, Cooperatives, and Poverty Alleviation Balram Adhikari said provisions in the act, regulations, and directives must be gradually enforced.

Government Releases Rs 750 Million Subsidy for Sugarcane Farmers

The government has released around Rs 750 million in subsidies for sugarcane farmers. Farmers from 13 districts across Nepal, who supplied about 21.6 million quintals of sugarcane to sugar mills, will receive the subsidy. According to the scheme, mills pay Rs 585 per quintal while the government provides an additional Rs 35 subsidy. Farmers in districts like Sunsari, Siraha, Sarlahi, Mahottari, Rautahat, Bara, and Nawalparasi benefit.

Insurance Board Makes Recommendation Mandatory for Forex

The Nepal Insurance Authority has directed that insurance companies must now obtain its recommendation for foreign currency exchange facilities. Previously, recommendations were provided under Nepal Rastra Bank’s directive. With the new “Foreign Currency Recommendation Guidelines, 2025,” companies must first receive approval from the Insurance Board before applying to the central bank.

Nepal’s Readymade Garment Industry Reviving

Two decades after collapsing, Nepal’s readymade garment industry is reviving. Annual exports, which had fallen to Rs 1 billion, have now reached Rs 10 billion, according to the Nepal Garment Industry Association. The U.S.’s new reciprocal tariff system has brought both opportunities and challenges. Lower tariffs compared to competitors like India, Bangladesh, and China provide Nepal an advantage, though the risk of third-country goods being dumped in Nepal remains.

Relocation of Kathmandu Valley Industries Still Unimplemented

Nearly a decade has passed since the government announced plans to relocate industries out of the Kathmandu Valley, but implementation remains stalled. Though repeated in budget speeches, no working procedures have been created. In this year’s budget, Finance Minister Bishnu Paudel announced incentives, including free land lease and customs duty exemptions, to encourage relocation. However, three months into the fiscal year, no working procedures or official correspondence have been initiated.

GIS-Based Sustainable Farming System Introduced in Ilam

For the first time in Nepal, a Geographic Identification, Environment, and Sustainability (GIES) system has been implemented in Rong Rural Municipality, Ilam. With over Rs 1.8 million in financial support from the UN’s Food and Agriculture Organization (FAO), an advanced machine was installed. The machine has been set up at the cardamom farm in Rong-4, Bhalujhoda. The station has been named “Rong Himalayan Cardamom GIES Station Nepal.”

Ilam’s Phalgunanda Sukilumba Airport Stalled

Phalgunanda Sukilumba Airport in Ilam, directly tied to local tourism and the economy, has remained idle since last May despite 33 flights operating last year. Tara Air conducted the first test flight in June 2018 followed by limited commercial flights under agreements with Ilam Municipality. Later, Nepal Airlines also began operations under a similar agreement. However, with the end of these arrangements, no flights have been conducted since.

Belahiya Integrated Check Post to Resume from September 17

The Integrated Check Post (ICP) at Belahiya on the Nepal–India border will resume operations from September 17. The checkpoint, established two years ago for tourist convenience and security, had remained closed. Efforts by the District Administration, Provincial Tourism Ministry, security agencies, and Siddharthanagar Municipality made this possible. Police, traffic, Armed Police, and transport staff will be deployed. Chief District Officer Tokraj Pandey said discussions were held to resolve challenges and ensure smooth operations for tourists.

Shuklaphanta National Park: A New Destination for Tourists

Shuklaphanta National Park is widely recognized for its barasingha (swamp deer). The park’s 54 sq. km grassland is home to over 2,300 barasingha. Covering 305 sq. km, Shuklaphanta is also notable for its high density of tigers, with 43 adults recorded this year. The rhino population stands at 23, while blackbuck has grown to 306. The park is also home to 461 bird species.

Lumbini Province Capital Nears Completion

Construction of physical infrastructure for Lumbini Province’s capital at Lamahi, Deukhuri, has reached its final phase. Progress on the Chief Minister’s office and 10 other buildings has reached 85%.
According to project head engineer Pradeep Bhattarai, the administrative complex is being built in a mandala design under the master plan with provincial funds.

Nepal Airlines Cuts Gulmi Flights to Once a Week

Nepal Airlines has reduced its flights to Resunga Airport, Gulmi. The corporation previously operated four weekly flights (Sunday, Tuesday, Thursday, Saturday) but will now fly only once a week, on Thursdays.
Station head Suman Thapa said the reduction was necessary as two Twin Otter aircraft are grounded and only one is operational.

Hanumandhoka Durbar Revenue Rises by Rs 20 Million

Revenue from the Hanumandhoka Durbar conservation program rose by nearly Rs 20 million in the last fiscal year. Program chief Chandra Gopal Pradhan said revenue increased from Rs 176.9 million in FY 2023/24 to Rs 194.6 million in FY 2024/25.

Sagarmatha Airport Project Leaves Forest Land Degraded

Massive deforestation for the proposed Sagarmatha Airport in Jogidaha, Udayapur, has left 105 hectares of forest barren and now converted into grazing fields. The area covered Shivalaya Religious Forest, Kang Community Forest, and Motihayi Community Forest. According to Gai Ghat Division Forest Office, lack of conservation has left the cleared forest unused after feasibility studies failed to translate into actual airport construction.

Machhapuchhre Bank Calls Annual General Meeting

Machhapuchhre Bank has called its annual general meeting. A board meeting held on Thursday decided to convene the AGM on September 26. For the purpose of the AGM, the bank has decided to close the shareholders’ register (book closure) on September 12. Earlier, the bank had announced an 8% dividend, including a 4% bonus share. Shareholders recorded by Bhadra 27 will be eligible to receive the dividend.

NIFRA Declares 6.3158% Cash Dividend

Nepal Infrastructure Bank (NIFRA) has announced a dividend for its shareholders. A board meeting decided to distribute 6.3158% cash dividend, including tax, from the profit of the last fiscal year.
The bank’s current paid-up capital is Rs 21.60 billion. The proposal has been submitted to Nepal Rastra Bank for approval.

Everest Bank Proposes 20% Dividend

Everest Bank has proposed a 20% dividend for shareholders from last fiscal year’s profit. The board decided to distribute a 14% bonus share and 6% cash dividend (including tax) on its paid-up capital of Rs 12.94 billion.

Siddhivinayak Oil Reports Rs 5.09 Billion Trade

Siddhivinayak Oil Pvt. Ltd., seller of Samriddhi brand edible oils, recorded business worth Rs 5.097 billion in the last fiscal year, compared to Rs 5 billion a year earlier. The company reported sales of Rs 1.425 billion in 2024 and Rs 1.886 billion in 2023. Established in 2021, the company imports crude oil from various countries for processing.

Gold Price Hits New Record High in Nepal

The continuously rising price of gold set another record on Friday. Compared to the previous day, the price increased by Rs 2,500, reaching Rs 210,400 per tola. This is the highest price recorded so far. On the previous day, gold was traded at Rs 207,900 per tola. Meanwhile, the price of silver increased by Rs 10 per tola. Silver, which was traded at Rs 2,480 per tola yesterday, is now being traded at Rs 2,490 per tola.