KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today.

Finance Minister Orders Cut in Fragmented Projects
Finance Minister Rameshwar Khanal decided to cut fragmented and unprepared projects from the current fiscal year’s budget. A three-member committee, chaired by Budget and Program Division Chief Suman Dahal, was formed to recommend cuts. Members include Revenue Division Chief Uttarkumar Khatri and Foreign Aid Coordination Division Chief Dhaniram Sharma.

Banks Announce New Interest Rate
Banks and financial institutions have released their new interest rate schedules for mid-September to mid-October. This time, nine commercial banks made minor adjustments to interest rates, while the remaining banks maintained their existing rates. Among 20 commercial banks, interest rates for ordinary fixed deposits range from a minimum of 2.75% to a maximum of 2.80%. Savings accounts must maintain less than a 2% difference among types, and remittance accounts can add an additional 1% interest.

Remittances Boost Foreign Currency Reserves
Foreign currency reserves in the country continue to reach record levels due to increasing remittances. In the first month of fiscal year 2025/26, foreign reserves reached Rs 2.80 trillion. In US dollars, this is also a historic high at $20.03 billion. The steady increase in remittances has contributed to these reserves, with over Rs 100 billion entering monthly for the past 30 months.

Expenditure on Overseas Education Slightly Declines
Spending on foreign education has increased, but slightly less than last year. In a month alone, Rs 14.31 billion was spent for studies abroad. According to Nepal Rastra Bank, this is slightly lower than Rs 14.96 billion spent in the same month last year. Travel expenditures under the service account fell by 2.8% to Rs 21.70 billion, compared to Rs 22.32 billion in the same month last year.

Insurance Claims for Protest Damage Begin
Following protests on September 8-9, insurance claims for physical damage have started arriving. As of Monday, approximately Rs 25 billion in claims have been processed by non-life insurance companies. The initial claims tend to be large, but not all will be fully paid. Around 1,000 claims have been received so far, and more are expected.

Government Structures Uninsured, Facing Billions in Losses
The government did not insure its own structures and infrastructure, leading to potential losses of billions of rupees after the Gen Z protests. While private sector properties received insurance payouts, public structures, including Singh Durbar, the Prime Minister’s residence, President’s House, Parliament, ministerial residences, police offices, and local government offices, remain uninsured and are ineligible for insurance claims.

Tourism Sector Discusses Post-Protest Revival
On Monday, the Ministry of Culture, Tourism, and Civil Aviation, Nepal Tourism Board, and private sector tourism entrepreneurs held discussions on reviving the tourism sector. Reviewing the impact of the Gen-Z protests on tourism infrastructure, participants committed to rapidly restoring Nepal’s tourism industry. Hari Prasad Mainali, Secretary of the Ministry and Chairman of the Tourism Board, stated that policy obstacles would be removed to advance the reform process.

BP Highway to Operate 24 Hours from September 17
With the onset of this year’s monsoon and associated risks, nighttime vehicle operations on BP Highway had been restricted. From September 17, the highway will operate 24 hours. The security committee meeting at the Kavrepalanchok District Administration Office decided this to ensure smooth operations and to accommodate festival traffic, including Dashain and Tihar. The committee emphasized maintaining road safety in accordance with approved safety plans.

New Arrival Hall Opens at Gautam Buddha Airport
A new arrival hall has been inaugurated at Gautam Buddha Airport, Bhairahawa, targeting passenger convenience. The airport’s internal terminal, built 50 years ago, was cramped and lacked facilities. The cargo building has been transformed into the new arrival hall, operational from Monday. The old terminal had inadequate baggage handling and no waiting area, forcing passengers to stand outdoors during heat, rain, or storms.

Bhotekoshi Hydropower Shuts Down Amid Protest Pressure
The 44 MW Bhotekoshi Hydropower Company halted electricity production, citing pressure from Gen Z protests demanding shares. After protesters pressured the company for 10% local shares, staff left the plant for safety, and the army secured the facility. The company had agreed in 2014 to provide 6% local shares, but has not yet done so, prompting locals to demand the remaining shares, including an additional 4%.

Over 1,000 Vehicles Destroyed in Protests
More than 1,000 vehicles were destroyed in the Singh Durbar area and nearby government offices during the Gen-Z protests. Preliminary data shows 441 four-wheelers and 601 two-wheelers were destroyed. This figure does not cover all agencies and excludes damaged but not destroyed vehicles. Calculating the total economic loss will take more time.

Cathay Pacific Suspends Flights to Nepal
Hong Kong-based Cathay Pacific Airways has suspended flights to Nepal. Ticketing agents were informed that flights from September 15 until October 14 are canceled. Travel agencies estimate the suspension is due to reduced tourist activity following the Gen Z protests. While flights resumed immediately after the protests initially, the airline has now halted regular operations.

Commercial Banana Farming Expands in Dang
The number of farmers engaged in commercial banana cultivation in Dang has been increasing. According to Nabaraj Bhandari, chief of the Agriculture Knowledge Center, in fiscal year 2024/25, commercial banana farming covered 730 hectares, producing 9,973 metric tons of bananas, as reported in the center’s annual report. The previous year, banana cultivation covered 670 hectares, meaning an increase of 150 hectares.

Apple Prices Rise Ahead of Festivals
With festivals approaching, apple prices have increased in local markets. Data from the Kalimati Fruit and Vegetable Market Development Committee shows a rise in apple prices on Tuesday. Fuji apples increased by Rs 34 per kilo in wholesale compared to Monday when the average wholesale price was Rs 276 per kilo. On Tuesday, the wholesale price of Fuji apples was Rs 310 per kilo.

Mawlakali Cable Car to Resume Service Soon
The Mawlakali Cable Car in Nawalparasi, damaged during Gen Z protests, will soon resume service. The company announced its reopening, emphasizing it was built with the collective investment and hard work of thousands of local shareholders. The company stated that the protests caused significant damage, including fire and vandalism to the public service cable car.

Small Industries in Dhankuta Face Closure
Over the past five years, 178 small and domestic industries registered in Dhankuta have been closed. Unable to compete with imported industries, these businesses were deregistered. In fiscal year 2021/22, 366 industries were registered, with 10 requesting closure. In fiscal year 2022/23, 516 industries were registered, and 26 were closed.

Subsidized Shops Open in Jumla Ahead of Festivals
Ahead of Dashain, Tihar, and Chhath, subsidized shops have been opened in Jumla. From Monday, the branch of the Food Management and Trade Company will sell 1,100 quintals of rice at subsidized prices. Gaurinand Acharya, Chief of the District Coordination Committee and head of the District Food Management Committee, inaugurated the shops.

Gold Prices Hit Record High in Domestic Market
Gold prices in the Nepali market reached a new record on Tuesday, with the price hitting Rs 217,100 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, this is the highest price recorded so far and represents an increase of Rs 1,900 compared to the previous day. On Monday, gold was priced at Rs 215,200 per tola. Similarly, the price of silver also rose on Tuesday.