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.

Stock Market Recovers Losses After Two Days of High Gains

After two days of strong gains, the stock market has recovered losses from the negative circuit. On the second trading day of the week, Tuesday, the NEPSE index rose by 58.63 points to reach 2,682.25 points. On Sunday, the stock market had gained 111.70 points, while last Thursday, the market fell by 160.33 points due to a negative circuit. Despite the rise in NEPSE, trading volume decreased. While more than Rs 9 billion worth of shares were traded on Sunday, today’s trading amounted to Rs 5.29 billion.

Financial System Deposits Reach Historic High

Deposits in the financial system have reached a record high, equivalent to 120 percent of Nepal’s GDP. This increase is attributed to recent economic slowdown and decreased overall demand. According to Nepal Rastra Bank, total deposits in banks and financial institutions reached Rs 7.323 trillion. The National Statistics Office reported that Nepal’s GDP at consumer prices at the end of the last fiscal year was Rs 6.107 trillion, making the financial system deposits 120 percent of GDP.

Foreign Investment Approval Jumps in Early Fiscal Year

In the first two months of the current fiscal year 2025/26, foreign investment approvals have shown significant improvement. According to the Department of Industry, foreign investment of Rs 33.09 billion was approved in first two months of current fiscal year, nearly three times higher than Rs 12 billion approved during the same period last year. Of this, Rs 1.36 billion came through automatic route and Rs 31.7238 billion through regular procedures.

Small Insurance Claims to Be Paid by Tihar

Birendra Baidwar, president of the Nepal Insurers Association, stated that small insurance claims will be settled by Tihar. Speaking at a discussion organized by NAFIJ on economic recovery needs, he said that the Jenji protests caused nearly Rs 80 billion in private sector losses, and small claim requests totaling Rs 22.25 billion received until September 22 will be paid by Tihar.

Gen Z Protests Weaken Investor Confidence

Birendra Raj Pandey, president of the Confederation of Nepalese Industries (CNI), said that investor morale has been weakened due to the Gen Z protests. During the unrest, both private and public structures were damaged. Speaking at NAFIJ’s discussion on economic recovery, he estimated a 5 percent loss in GDP and emphasized the need for government measures to ensure investment security and financial and monetary support to help industries recover quickly.

Tourist Bookings Drop Sharply Amid Security Concerns

Cancellations of tourist bookings have increased. Normally, around 100,000 tourists visit Nepal monthly in September and October. Until September 8, about 3,000 tourists were arriving daily, but now that number has fallen to 1,000. Tourism entrepreneurs attribute the cancellations mainly to widespread misinformation and security concerns. Cultural tours, mile-long trips, and groups of 20–25 tourists have largely been canceled, while adventure tourism has been relatively less affected.

Nepali Jute Industry Faces Crisis Due to Bangladesh Export Ban

Nepali industries exporting processed jute products to India are facing challenges after Bangladesh unofficially restricted raw jute exports. Although Bangladesh has not officially announced the export halt, Nepali industries report difficulties importing raw jute. Nepal exports over Rs 8 billion worth of jute products annually to India and relies on raw jute from India and Bangladesh for production.

Government and Private Sector Collaborate on Economic Recovery

Ministry of Finance spokesperson Tanka Prasad Pandey stated that the government and private sector are working together. Speaking at the “Next Steps for Economic Recovery” program organized by the Nepal Economic Journalists Association, Pandey said the government, in coordination with the private sector, is focusing on relief and stimulus packages, security, and good governance. “Economic recovery programs are a top priority. We must convey that investment in Nepal is safe,” he added.

Private Sector Urged to Improve After Protests

Sagar Pandey, president of the Trekking Agencies’ Association of Nepal (TAAN), emphasized that the private sector also needs to reform. Speaking at the same “Next Steps for Economic Recovery” program organized by NAFIJ, he noted that the recent Jenji protest targeted the private sector as well, signaling a need for improvement. He stressed that tourism recovery should start by increasing tourist activities and recommended that the government prepare a recovery plan.

Buddha Air to Resume Flights to Kolkata

Buddha Air will resume flights to Kolkata, India. Previously, the airline had started direct flights from Kathmandu six years ago but halted operations within six months. Addressing past shortcomings, Buddha Air will operate three weekly flights from Kathmandu to Kolkata starting Kartik. The two-way flights will operate every Sunday, Tuesday, and Thursday, and ticket bookings have already begun for the 1.5-hour flight.

Nepali Goat Farmers Bring Livestock to Valley Ahead of Dashain

Targeting the Dashain market, the Nepal Commercial Goat Farmers’ Association has started bringing goats to the Kathmandu Valley. Around 60,000 goats worth at least Rs 1.05 billion are being brought from different districts. The government-owned Food Corporation decided not to sell goats this year due to blocked roads and political instability. Despite road damage from landslides and floods, the livestock is being brought in with some delay.

Petroleum Imports Through Birgunj Increase

Petroleum imports via the Birgunj border totaled Rs 26.33 billion in the first two months of the current fiscal year 2025/26. During this period, diesel, petrol, LPG, aviation turbine fuel, and furnace oil were imported. Compared to the same period last year, imports increased by Rs 1.76 billion, generating an additional Rs 1.29 billion in revenue, according to Bishnu Prasad Gyawali, chief customs officer of Birgunj Customs Office.

24 Climbers Obtain Dhaulagiri Permit for Autumn 2025

For the current 2025 autumn season, 24 individuals have obtained permits to climb Dhaulagiri in Myagdi. The world’s seventh-highest mountain (8,167 meters) lies in Dhaulagiri Rural Municipality–4. The Tourism Department reported that Rs 5.071 million was collected as permit fees. Foreign climbers seeking to ascend eight-thousanders other than Everest must pay a fee of USD 900 per climber.

Tourist Flow Returns to Ilam After Gen Z Protests

Tourist activity has resumed at Ilam’s destinations after the Gen Z protests on September 8-9 left the area deserted. Domestic and foreign tourists are returning to sites such as Kanyam, which had become empty during the unrest. Thousands of tourists visit these areas daily, and hotel, cottage, and homestay occupancy has picked up again, according to Rudra Ghimire, president of Antu Tourism Business Association.

Kodari Highway Reopens Connecting Trade With China

The Kodari Highway, linking the main trade border with China at Tatopani, reopened on Monday afternoon. With road access restored, hundreds of containers carrying goods for the upcoming Dashain festival are being processed. Rajendra Chudal, chief of Tatopani Customs Office, said trucks carrying cargo previously held at the Nepal side are moving across the border, and they will start loading containers on the Chinese side from tomorrow.

Kulekhani Hydropower Units Shut Down for Automation Installation

Operations at Kulekhani Hydropower Units 1 and 2 were halted from Saturday to install automation systems. Since electricity production is not required during the monsoon, the shutdown allows for installation and maintenance. Project chief Taradatt Bhatta said, “The first and second units, built about 43 years ago, are old models. After automation installation, production and shutdown will be computer-controlled instead of manual.”

Chitwan Business Complex Opens Hotel and Shopping Center

The 11-story Chitwan Business Complex (CBC) has opened a hotel and shopping center. CBC operates hotel chains in the US, India, and Nepal and, in partnership with Lads Hospitality, launched a 58-room hotel. The same building houses the 38th branch of Salesberry in Nepal. The building covers 107,000 sq. ft., including two underground floors used for parking.

SY Panel Nepal Ltd Issues IPO for Locals and NRNs

SY Panel Nepal Ltd has issued an IPO for locals and Nepalis abroad from today. The company has allocated 261,627 shares for locals and 497,092 shares for Nepalis abroad. Of the company’s total issued capital of Rs 130 million, 40 percent, equivalent to 523,2548 shares, is planned to be offered to the public.

Gold Price Rises in Local Market

On Tuesday, the price of gold rose in the local market. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold increased by Rs 3,900 per tola compared to the previous trading day. Gold traded at Rs 217,800 on Monday and rose to Rs 221,700 on Tuesday. Silver prices also increased by Rs 30 per tola on the same day.